Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 29, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ACIW | ||
Entity Registrant Name | ACI WORLDWIDE, INC. | ||
Entity Central Index Key | 935,036 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 116,143,338 | ||
Entity Public Float | $ 2,181,473,639 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 148,502 | $ 69,710 |
Receivables, net of allowances of $3,912 and $4,799, respectively | 348,182 | 262,845 |
Recoverable income taxes | 6,686 | 7,921 |
Prepaid expenses | 23,277 | 23,219 |
Other current assets | 39,830 | 58,126 |
Total current assets | 566,477 | 421,821 |
Noncurrent assets | ||
Accrued receivables, net | 189,010 | |
Property and equipment, net | 72,729 | 80,228 |
Software, net | 137,228 | 155,386 |
Goodwill | 909,691 | 909,691 |
Intangible assets, net | 168,127 | 191,281 |
Deferred income taxes, net | 27,048 | 66,749 |
Other noncurrent assets | 52,145 | 36,483 |
TOTAL ASSETS | 2,122,455 | 1,861,639 |
Current liabilities | ||
Accounts payable | 39,602 | 34,718 |
Employee compensation | 38,115 | 48,933 |
Current portion of long-term debt | 20,767 | 17,786 |
Deferred revenue | 104,843 | 107,543 |
Income taxes payable | 5,239 | 9,898 |
Other current liabilities | 88,054 | 102,904 |
Total current liabilities | 296,620 | 321,782 |
Noncurrent liabilities | ||
Deferred revenue | 51,292 | 51,967 |
Long-term debt | 650,989 | 667,943 |
Deferred income taxes, net | 31,715 | 16,910 |
Other noncurrent liabilities | 43,608 | 38,440 |
Total liabilities | 1,074,224 | 1,097,042 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at December 31, 2018 and 2017 | ||
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at December 31, 2018 and 2017 | 702 | 702 |
Additional paid-in capital | 632,235 | 610,345 |
Retained earnings | 863,768 | 550,866 |
Treasury stock, at cost, 24,401,694 and 23,428,324 shares at December 31, 2018 and 2017, respectively | (355,857) | (319,960) |
Accumulated other comprehensive loss | (92,617) | (77,356) |
Total stockholders' equity | 1,048,231 | 764,597 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,122,455 | $ 1,861,639 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 3,912 | $ 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 | 24,401,694 | 23,428,324 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Revenues | |||||
Total revenues | $ 1,009,780 | $ 1,024,191 | $ 1,005,701 | ||
Operating expenses | |||||
Cost of revenue | [1] | 430,351 | 452,286 | 444,914 | |
Research and development | 143,630 | 136,921 | 169,900 | ||
Selling and marketing | 117,881 | 107,885 | 118,082 | ||
General and administrative | 107,422 | 153,032 | [2] | 113,617 | |
Gain on sale of CFS assets | (151,463) | ||||
Depreciation and amortization | 84,585 | 89,427 | 89,521 | ||
Total operating expenses | 883,869 | 939,551 | 784,571 | ||
Operating income (loss) | 125,911 | 84,640 | 221,130 | ||
Other income (expense) | |||||
Interest expense | (41,530) | (39,013) | (40,184) | ||
Interest income | 11,142 | 564 | 530 | ||
Other, net | (3,724) | (2,619) | 4,105 | ||
Total other income (expense) | (34,112) | (41,068) | (35,549) | ||
Income before income taxes | 91,799 | 43,572 | 185,581 | ||
Income tax expense | 22,878 | 38,437 | 56,046 | ||
Net income | $ 68,921 | $ 5,135 | $ 129,535 | ||
Earnings per common share | |||||
Basic | $ 0.59 | $ 0.04 | $ 1.10 | ||
Diluted | $ 0.59 | $ 0.04 | $ 1.09 | ||
Weighted average common shares outstanding | |||||
Basic | 116,057 | 118,059 | 117,533 | ||
Diluted | 117,632 | 119,444 | 118,847 | ||
Software as a service and platform as a service [Member] | |||||
Revenues | |||||
Total revenues | $ 433,025 | $ 425,572 | $ 411,289 | ||
License [Member] | |||||
Revenues | |||||
Total revenues | 280,556 | 293,124 | 273,466 | ||
Maintenance [Member] | |||||
Revenues | |||||
Total revenues | 219,145 | 222,071 | 233,476 | ||
Services [Member] | |||||
Revenues | |||||
Total revenues | $ 77,054 | $ 83,424 | $ 87,470 | ||
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. | ||||
[2] | General and administrative expenses in the second quarter includes the BHMI judgment. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 68,921 | $ 5,135 | $ 129,535 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of income taxes | (15,261) | 16,744 | (22,524) |
Total other comprehensive income (loss): | (15,261) | 16,744 | (22,524) |
Comprehensive income | $ 53,660 | $ 21,879 | $ 107,011 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2015 | $ 654,400 | $ 702 | $ 561,379 | $ 416,851 | $ (252,956) | $ (71,576) |
Net income | 129,535 | 129,535 | ||||
Other comprehensive income (loss) | (22,524) | (22,524) | ||||
Stock-based compensation | 43,613 | 43,613 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 13,056 | (5,204) | 18,260 | |||
Repurchase of common stock | (60,089) | (60,089) | ||||
Repurchase of restricted stock for tax withholdings | (2,975) | (2,975) | ||||
Cumulative effect of accounting change | (99) | 556 | (655) | |||
Ending balance at Dec. 31, 2016 | 754,917 | 702 | 600,344 | 545,731 | (297,760) | (94,100) |
Net income | 5,135 | 5,135 | ||||
Other comprehensive income (loss) | 16,744 | 16,744 | ||||
Stock-based compensation | 13,683 | 13,683 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 16,816 | (3,682) | 20,498 | |||
Repurchase of common stock | (37,387) | (37,387) | ||||
Repurchase of restricted stock for tax withholdings | (5,311) | (5,311) | ||||
Ending balance at Dec. 31, 2017 | 764,597 | 702 | 610,345 | 550,866 | (319,960) | (77,356) |
Net income | 68,921 | 68,921 | ||||
Other comprehensive income (loss) | (15,261) | (15,261) | ||||
Stock-based compensation | 20,360 | 20,360 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 22,748 | 1,530 | 21,218 | |||
Repurchase of common stock | (54,527) | (54,527) | ||||
Repurchase of restricted stock for tax withholdings | (2,588) | (2,588) | ||||
Cumulative effect of accounting change | 243,981 | 243,981 | ||||
Ending balance at Dec. 31, 2018 | $ 1,048,231 | $ 702 | $ 632,235 | $ 863,768 | $ (355,857) | $ (92,617) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | 76 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Repurchase of common stock, shares | 2,346,427 | 1,653,573 | 3,020,926 | 44,129,393 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 68,921 | $ 5,135 | $ 129,535 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation | 23,805 | 24,871 | 22,584 |
Amortization | 73,545 | 77,353 | 80,870 |
Amortization of deferred debt issuance costs | 4,637 | 4,286 | 5,567 |
Deferred income taxes | (5,734) | 21,660 | 17,702 |
Stock-based compensation expense | 20,360 | 13,683 | 43,613 |
Gain on sale of CFS assets | (151,463) | ||
Other | 2,007 | 435 | 806 |
Changes in operating assets and liabilities, net of impact of acquisitions: | |||
Receivables | (14,760) | (8,243) | (76,460) |
Accounts payable | 5,766 | (1,700) | (13,920) |
Accrued employee compensation | (9,684) | 94 | 18,060 |
Current income taxes | (5,115) | (4,227) | 14,510 |
Deferred revenue | 14,219 | 439 | 3,015 |
Other current and noncurrent assets and liabilities | 5,965 | 12,411 | 5,411 |
Net cash flows from operating activities | 183,932 | 146,197 | 99,830 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (18,265) | (25,717) | (40,812) |
Purchases of software and distribution rights | (25,628) | (28,697) | (22,268) |
Proceeds from sale of CFS assets | 199,481 | ||
Acquisition of businesses, net of cash acquired | 232 | ||
Other | (1,467) | (7,000) | |
Net cash flows from investing activities | (45,360) | (54,414) | 129,633 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 3,098 | 2,958 | 2,987 |
Proceeds from exercises of stock options | 19,674 | 13,872 | 9,325 |
Repurchase of restricted stock for tax withholdings | (2,588) | (5,311) | (2,975) |
Repurchases of common stock | (54,527) | (37,387) | (60,089) |
Proceeds from senior notes | 400,000 | ||
Redemption of senior notes | (300,000) | ||
Proceeds from revolving credit facility | 109,000 | 67,000 | 76,000 |
Repayments of revolving credit facility | (111,000) | (153,000) | (166,000) |
Proceeds from term portion of credit agreement | 415,000 | ||
Repayments of term portion of credit agreement | (109,289) | (386,040) | (95,293) |
Payment for debt issuance costs | (7,319) | (5,340) | (655) |
Payments on other debt and capital leases | (4,753) | (9,900) | (14,376) |
Net cash flows from financing activities | (57,704) | (98,148) | (251,076) |
Effect of exchange rate fluctuations on cash | (2,076) | 322 | (4,873) |
Net increase (decrease) in cash and cash equivalents | 78,792 | (6,043) | (26,486) |
Cash and cash equivalents, beginning of period | 69,710 | 75,753 | 102,239 |
Cash and cash equivalents, end of period | 148,502 | 69,710 | 75,753 |
Supplemental cash flow information | |||
Income taxes paid, net | 32,205 | 37,817 | 19,081 |
Interest paid | $ 35,300 | $ 34,976 | $ 35,053 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | 1. Nature of Business and Summary of Significant Accounting Policies Nature of Business ACI Worldwide, Inc., a Delaware corporation, and its subsidiaries (collectively referred to as “ACI” or the “Company”) develop, market, install, and support a broad line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, the Company distributes or acts as a sales agent for software developed by third parties. These products and services are used principally by banks, financial intermediaries, merchants and corporates, both in domestic and international markets. Consolidated Financial Statements The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Capital Stock The Company’s outstanding capital stock consists of a single class of common stock. Each share of common stock is entitled to one vote for each matter subject to a stockholder’s vote and to dividends, if and when declared by the board of directors (the “board”). Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash and cash equivalents includes holdings in checking, savings, money market, and overnight sweep accounts, all of which have daily maturities, as well as time deposits with maturities of three months or less at the date of purchase. The carrying amounts of cash and cash equivalents on the consolidated balance sheets approximate fair value. Other Current Assets and Other Current Liabilities December 31, (in thousands) 2018 2017 Settlement deposits $ 23,651 $ 22,282 Settlement receivables 8,605 30,063 Other 7,574 5,781 Total other current assets $ 39,830 $ 58,126 December 31, (in thousands) 2018 2017 Settlement payables $ 31,605 $ 48,953 Accrued interest 8,407 7,291 Vendor financed licenses 3,551 1,862 Royalties payable 11,318 9,264 Other 33,173 35,534 Total other current liabilities $ 88,054 $ 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 automated clearing house (“ACH”) payments. The Company creates a receivable for the amount due from the credit or debit card company and an offsetting payable to the client. Once confirmation is received that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may receive the funds into bank accounts controlled by and in the Company’s name that are not disbursed to its clients by the end of the day resulting in a settlement deposit on the Company’s books. Off Balance Sheet Settlement Accounts The Company also enters into agreements with certain clients to process payment funds on their behalf. When an 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 December 31, 2018 and 2017, were $256.5 million and $238.9 million, respectively. Property and Equipment Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2018 and 2017, net property and equipment consisted of the following (in thousands): Useful Lives 2018 2017 Computer and office equipment 3 - 5 years $ 129,359 $ 123,804 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 32,096 32,364 Furniture and fixtures 7 years 12,500 12,158 Building and improvements 7 - 30 years 14,381 12,651 Land Non depreciable 1,785 1,785 190,121 182,762 Less: accumulated depreciation (117,392 ) (102,534 ) Property and equipment, net $ 72,729 $ 80,228 Software Software may be for internal use or available for sale. Costs related to certain software, which is available for sale, are capitalized in accordance with Accounting Standards Codification (“ASC”) 985-20, Costs of Software to be Sold, Leased, or Marketed Internal Use Software Amortization of software costs to be sold or marketed externally is determined on a product-by-product basis and begins when the product is available for licensing to customers. The annual amortization shall be the greater of the amount computed using (a) the ratio of current gross revenues for a product to the total of current and anticipated future gross revenues for that product or (b) the straight-line method over the remaining estimated economic life of the product, including the period being reported on. Due to competitive pressures, it may be possible that the estimates of anticipated future gross revenue or remaining estimated economic life of the software product will be reduced significantly. As a result, the carrying amount of the software product may be reduced accordingly. Amortization of internal-use software is generally computed using the straight-line method over estimated useful lives of three to ten years. Business Combinations The Company applies the provisions of ASC 805, Business Combinations , in the accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, it records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships, covenants not to compete and acquired developed technologies, brand awareness and market position, as well as assumptions about the period of time the brand will continue to be used in our product portfolio, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. Fair Value ASC 820, Fair Value Measurements and Disclosures • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. • Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s 5.750% Senior Notes due 2026 (“2026 Notes”) was $395.0 million as of December 31, 2018. The fair value of the Company’s 6.375% Senior Notes due 2020 (“2020 Notes”) was $305.7 million as of 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 and Other Intangibles In accordance with ASC 350, Intangibles – Goodwill and Other , the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level using the discounted cash flow valuation model and allocates goodwill to these reporting units using a relative fair value approach. During this assessment, management relies on a number of factors, including operating results, business plans, and anticipated future cash flows. The Company has identified its reportable segments, ACI On Premise and ACI On Demand, as the reporting units. As of December 31, 2018 and 2017, the Company’s goodwill of $909.7 million was allocated to its two reporting units, with $725.9 allocated to ACI On Premise and $183.8 million allocated to ACI On Demand. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates, and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as company-specific risk factors. Operational management, considering industry and company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period, assuming a constant WACC and low, long-term growth rates. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value substantially exceeded the current carrying value for all reporting units for all periods. Other intangible assets, which include customer relationships and trademarks and trade names, are amortized using the straight-line method over periods ranging from three years to 20 years. The Company reviews its other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group may not be recoverable. An impairment loss is recorded if the sum of the future cash flows expected to result from the use of the asset (undiscounted and without interest charges) is less than the carrying amount of the asset. The amount of the impairment charge is measured based upon the fair value of the asset group. Treasury Stock The Company accounts for shares of its common stock that are repurchased without intent to retire as treasury stock. Such shares are recorded at cost and reflected separately on the consolidated balance sheets as a reduction of stockholders’ equity. The Company issues shares of treasury stock upon exercise of stock options, issuance of restricted share awards and restricted share units, payment of earned performance shares, and for issuances of common stock pursuant to the Company’s employee stock purchase plan. For purposes of determining the cost of the treasury shares re-issued, the Company uses the average cost method. Stock-Based Compensation Plans In accordance with ASC 718, Compensation – Stock Compensation , the Company recognizes stock-based compensation expense for awards that are probable of vesting on a straight-line basis over the requisite service period of the award, which is generally the vesting term. Stock-based compensation expense is recorded in operating expenses depending on where the respective individual’s compensation is recorded. The Company generally utilizes the Black–Scholes option–pricing model to determine the fair value of stock options on the date of grant. To determine the grant date fair value of the supplemental stock options and total shareholder return awards (“TSRs”), a Monte Carlo simulation model was used. The assumptions utilized in the Black-Scholes option-pricing and Monte Carlo simulation models, as well as the description of the plans the stock-based awards are granted under, are described in further detail in Note 11, Stock-Based Compensation Plans . Translation of Foreign Currencies The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company periodically assesses its tax exposures and establishes, or adjusts, estimated unrecognized tax benefits for probable assessments by taxing authorities, including the Internal Revenue Service (“IRS”), and various foreign and state authorities. Such unrecognized tax benefits represent the estimated provision for income taxes expected to ultimately be paid. New Accounting Standards Recently Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (codified as “ASC 606”) as well as other clarifications and technical guidance related to this new revenue standard, including ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers . ASC 606 superseded the revenue recognition requirements in ASC 605, Revenue Recognition , and most industry-specific guidance. The Company adopted ASC 606 and ASC 340-40 on January 1, 2018 (the effective date) using the modified retrospective transition method which required an adjustment to retained earnings for the cumulative effect of applying ASC 606 to active contracts as of the adoption date. For active contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating the transaction price in accordance with the practical expedient permitted under ASC 606. The cumulative effect of applying ASC 606 to active contracts as of the adoption date was an increase to retained earnings of $244.0 million. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments , an update that addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Among the cash flow matters addressed in the update are payments for costs related to debt prepayments or extinguishments, payments related to settlement of certain types of debt instruments, payments of contingent consideration made after a business combination, proceeds from insurance claims and corporate-owned life insurance policies, and distributions received from equity method investees, among others. The amendments are applied using a retrospective transition method to each period presented, unless impracticable for specific cash flow matters, in which case the amendments would be applied prospectively as of the earliest date practicable. The Company adopted ASU 2016-15 as of January 1, 2018. The adoption of ASU 2016-15 was not material to the consolidated statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory , to simplify the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Previously, U.S. GAAP prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This prohibition on recognition was an exception to the principle of comprehensive recognition of current and deferred income taxes in U.S. GAAP. The limited amount of authoritative guidance about the exception led to diversity in practice and is a source of complexity in financial reporting, particularly for an intra-entity transfer of intellectual property. Under the amendments of ASU 2016-16, an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, this amendment eliminates the exception for an intra-entity transfer of an asset other than inventory. The amendments to this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2016-16 as of January 1, 2018. The adoption of ASU 2016-16 had no impact on the consolidated balance sheet, results of operations, or statement of cash flows. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, Compensation – Stock Compensation, In August 2018, the FASB issued ASU 2018-05, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Software Recently Issued Accounting Standards Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases The Company 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. To determine ACI’s lease population, the team reviewed leases included in the current ASC 840 minimum lease payments disclosure as well as supplier contracts, including cloud computing, print, mail services and colocation agreements for potential embedded leases. The Company has determined that the adoption of ASC 842 primarily relates to its real estate leases for office and datacenter facilities. The Company expects the adoption of ASC 842 will have a material impact on its 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 December 31, 2018, the Company’s undiscounted minimum commitments under noncancelable operating leases was approximately $77.6 million. The Company does not expect the adoption of ASC 842 to have a material effect on its results of operations, stockholders’ equity, or statement of cash flows. Based on currently available information, the Company expects to recognize operating lease liabilities and ROU assets of $65 million – $75 million and $60 million – $70 million, respectively The expected operating lease liabilities were calculated based on the present value of the remaining minimum lease payments for existing operating leases as of December 31, 2018. The expected ROU assets will reflect adjustments for derecognition of deferred leasing incentives and prepaid rents 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 cash flows. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 2. Revenue Revenue Recognition In accordance with ASC 606, revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Contract Combination. The Company may execute more than one contract or agreement with a single customer. The separate contracts or agreements may be viewed as one combined arrangement or separate agreements for revenue recognition purposes. In order to reach appropriate conclusions regarding whether such agreements should be combined, the Company evaluates whether the agreements were negotiated as a package with a single commercial objective, whether the amount of consideration to be paid in one agreement depends on the price and/or performance of another agreement, or whether the product(s) or services promised in the agreements represent a single performance obligation. The conclusions reached can impact the allocation of the transaction price to each performance obligation and the timing of revenue recognition related to those arrangements. Software as a Service (“SaaS”) and Platform as a Service (“PaaS”) Arrangements. License Arrangements. The Company’s software license arrangements provide the customer with the right to use functional intellectual property (as it exists at the point in time at which the license is granted) for the duration of the contract term. Implementation, support, and other services are typically considered distinct performance obligations when sold with a software license unless these services are determined to significantly modify the software. 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 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 basis, which represents variable consideration that must be estimated using the most likely amount based on the range of hours expected to be incurred in providing the services. 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 , for further details, including disaggregation of revenue based on primary solution category and geographic location. 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 subsequent to invoicing. December 31, (in thousands) 2018 2017 Billed receivables $ 239,275 $ 240,137 Allowance for doubtful accounts (3,912 ) (4,799 ) Billed receivables, net $ 235,363 $ 235,338 Accrued receivables 336,858 27,507 Significant financing component (35,029 ) — Total accrued receivables, net 301,829 27,507 Less current accrued receivables 123,053 27,507 Less current significant financing component (10,234 ) — Total long-term accrued receivables, net $ 189,010 $ — Total receivables, net $ 537,192 $ 262,845 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2018 and 2017. The Company maintains a general allowance for doubtful accounts based on historical experience, along with additional customer -specific allowances. The Company regularly monitors credit risk exposures in consolidated receivables. In estimating the necessary level of our allowance for doubtful accounts, management considers the aging of accounts receivable, the creditworthiness of customers, economic conditions within the customer’s industry, and general economic conditions, among other factors. The following reflects activity in the Company’s allowance for doubtful accounts receivable for the periods indicated (in thousands): Years Ended December 31, 2018 2017 2016 Balance, beginning of period $ (4,799 ) $ (3,873 ) $ (5,045 ) Provision increase (1,505 ) (2,086 ) (1,595 ) Amounts written off, net of recoveries 2,269 1,305 2,551 Foreign currency translation adjustments and other 123 (145 ) 216 Balance, end of period $ (3,912 ) $ (4,799 ) $ (3,873 ) Provision increases recorded in general and administrative expense during the years ended December 31, 2018, 2017, and 2016, 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 (in thousands): Deferred Revenue Balance, January 1, 2018 $ 145,344 Deferral of revenue 215,188 Recognition of deferred revenue (200,061 ) Foreign currency translation (4,336 ) Balance, December 31, 2018 $ 156,135 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: • Revenue that will be recognized in future periods from capacity overages that are accounted for as a usage-based royalty. • SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient. • 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 $666.4 million as of December 31, 2018, of which the Company expects to recognize approximately 48% over the next 12 months and the remainder thereafter. During the year ended December 31, 2018, the revenue recognized by the Company from performance obligations satisfied in previous periods was $29.6 million. Costs to Obtain and Fulfill a Contract The Company accounts for costs to obtain and fulfill its contracts in accordance with ASC 340-40. 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 December 31, 2018, $1.3 million and $11.7 million of these costs are included in other current assets and other non-current assets, respectively, on the consolidated balance sheets. During the year ended December 31, 2018, the Company recognized $8.4 million of sales commission expense related to the amortization of these costs, which is included in selling and marketing expense. 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 December 31, 2018, $0.2 million and $12.6 million of these costs are included in other current assets and other non-current assets, respectively, on the consolidated balance sheets. The amounts capitalized primarily relate to direct costs that enhance resources under the Company’s SaaS and PaaS arrangements. During the year ended December 31, 2018, the Company recognized $4.7 million of expense related to the amortization of these costs, which is included in cost of revenue. 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 (in thousands): December 31, 2018 As Reported Without Application of ASC 606 Effect of Change Higher / (Lower) Assets Receivables, net of allowances $ 348,182 $ 272,409 $ 75,773 Recoverable income taxes 6,686 13,539 (6,853 ) Prepaid expenses 23,277 24,018 (741 ) Other current assets 39,830 38,717 1,113 Accrued receivables, net 189,010 — 189,010 Deferred income taxes, net 27,048 61,554 (34,506 ) Other noncurrent assets 52,145 41,590 10,555 Liabilities Deferred revenue 104,843 134,565 (29,722 ) Income taxes payable 5,239 5,472 (233 ) Other current liabilities 88,054 88,288 (234 ) Deferred income taxes, net 31,715 10,178 21,537 Stockholders’ equity Total stockholders’ equity 1,048,231 805,228 243,003 Year Ended December 31, 2018 As Reported Without Application of ASC 606 Effect of Change Higher / (Lower) Revenues Software as a service and platform as a service $ 433,025 $ 432,095 $ 930 License 280,556 281,355 (799 ) Maintenance 219,145 221,189 (2,044 ) Services 77,054 77,595 (541 ) Operating expenses Selling and marketing 117,881 110,417 7,464 Other income (expense) Interest income 11,142 831 10,311 Other, net (3,724 ) (3,274 ) (450 ) Income tax provision Income tax expense (benefit) 22,878 22,981 (103 ) 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 (ASC 605). Receivables, Deferred Revenue, License and Maintenance Revenue, and Interest Income The change in receivables, deferred revenue, license and maintenance 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. Under ASC 606, 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. |
Divestiture
Divestiture | 12 Months Ended |
Dec. 31, 2018 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Divestiture | 3. Divestiture Community Financial Services On March 3, 2016, the Company completed the sale of its Community Financial Services (“CFS”) related assets and liabilities to Fiserv, Inc. (“Fiserv”) for $200.0 million. The sale of CFS, which was not strategic to the Company’s long-term strategy, is part of the Company’s ongoing efforts to expand as a provider of software products, SaaS-based solutions, and PaaS-based solutions facilitating real-time electronic and eCommerce payments for large banks, financial intermediaries, and merchants and corporates worldwide. The sale included employee agreements and customer contracts, as well as technology assets and intellectual property. For the year ended December 31, 2016, the Company recognized a net after-tax gain of $93.4 million on the sale of assets to Fiserv. This gain includes final post-closing adjustments pursuant to the definitive transaction agreement of $0.5 million recognized during the year ended December 31, 2016. The Company and Fiserv also entered into a Transition Services Agreement (“TSA”), whereby the Company continues to perform certain functions on Fiserv’s behalf during a migration period. The TSA is meant to reimburse the Company for direct costs incurred to provide such functions, which are no longer generating revenue for the Company. |
Software and Other Intangible A
Software and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Software and Other Intangible Assets | 4. Software and Other Intangible Assets At December 31, 2018, software net book value totaled $137.2 million, net of $252.2 million of accumulated amortization. Included in this net book value amount is software for resale of $27.5 million and software acquired or developed for internal use of $109.7 million. At December 31, 2017, software net book value totaled $155.4 million, net of $230.7 million of accumulated amortization. Included in this net book value amount is software for resale of $40.9 million and software acquired or developed for internal use of $114.5 million. Amortization of software for resale is computed using the greater of (a) the ratio of current revenues to total current and future revenues expected to be derived from the software or (b) the straight-line method over an estimated useful life of generally three to ten years. Software for resale amortization expense totaled $12.8 million during both the years ended December 31, 2018 and 2017, and totaled $13.9 million for the year ended December 31, 2016. These software amortization expense amounts are reflected in cost of revenue in the consolidated statements of operations. Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally three to ten years. Software for internal use amortization expense recorded during the years ended December 31, 2018, 2017, and 2016, totaled $41.7 million, $45.2 million, and $45.7 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the consolidated statements of operations. The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands): December 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Customer relationships $ 297,991 $ (131,187 ) $ 166,804 $ 305,218 $ (116,677 ) $ 188,541 Trademarks and tradenames 16,348 (15,025 ) 1,323 16,646 (13,906 ) 2,740 $ 314,339 $ (146,212 ) $ 168,127 $ 321,864 $ (130,583 ) $ 191,281 Other intangible assets amortization expense recorded during the years ended December 31, 2018, 2017, and 2016, totaled $19.0 million, $19.4 million, and $21.2 million, respectively. Based on capitalized intangible assets at December 31, 2018, and assuming no impairment of these intangible assets, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Amortization Other Intangible Assets Amortization 2019 $ 49,229 $ 21,825 2020 39,014 20,944 2021 25,382 20,451 2022 12,228 20,303 2023 6,349 20,000 Thereafter 5,026 64,604 Total $ 137,228 $ 168,127 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt As of December 31, 2018, the Company had $285.0 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., as Administrative Agent, providing for revolving loans, swingline loans, letters of credit, and a term loan. The Credit Agreement consists of (a) a five-year $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”), which includes sublimits for (1) the issuance of standby letters of credit and (2) swingline loans, and (b) a five-year $415.0 million senior secured term loan facility (the “Term Credit Facility” and, together with the Revolving Credit Facility, the “Credit Facility”). The Credit Agreement also allows the Company to request optional incremental term loans and increases in the revolving commitment. The loans under the Credit Facility may be made to the Company, and the letters of credit under the Revolving Credit Facility may be issued on behalf of the Company. On February 24, 2017, the Company borrowed an aggregate principal amount of $12.0 million under the Revolving Credit Facility and borrowed $415.0 million under the Term Credit Facility. At the Company’s option, borrowings under the Credit Facility bear interest at an annual rate equal to either (a) a base rate determined by reference to the highest of (1) the annual interest rate publicly announced by the Administrative Agent as its Prime Rate, (2) the federal funds effective rate plus 1/2 of 1% or (3) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for a one-month interest period, adjusted for certain additional costs plus 1% or (b) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowings, adjusted for certain additional costs plus an applicable margin. Based on the calculation of the applicable consolidated total leverage ratio, the applicable margin for borrowings under the Credit Facility is, between 0.25 1.25 1.25 2.25 4.27 The Company is also required to pay (a) a commitment fee related to the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears, (b) 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 an annual basis, payable quarterly in arrears, and (c) 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. On October 9, 2018, the Company entered into the first amendment to the collateral agreement of the Credit Agreement. This amendment released the lien on certain assets of Official Payments Corporation (“OPAY”), our electronic bill presentment and payment affiliate, to allow OPAY to comply with certain eligible securities and unencumbered asset requirements related to money transmitter or transfer license rules and regulations. 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. Senior Notes On August 21, 2018, the Company completed a $400.0 million offering of 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 an annual rate of 5.750%, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2019. Interest accrued 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 December 31, 2018. The Company used the net proceeds of the offering described above to redeem, in full, the Company’s outstanding 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 December 31, 2018, are as follows (in thousands): Fiscal year ending December 31, 2019 $ 23,747 2020 23,747 2021 31,662 2022 205,803 2023 — Thereafter 400,000 Total $ 684,959 The Credit Agreement and 2026 Notes also contain certain customary mandatory prepayment provisions. As specified in the Credit Agreement and 2026 Notes agreement, if certain events 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 August 15, 2026 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. As specified in the Credit Agreement and 2026 Notes agreement, if an event of default shall occur and be continuing, the Company may be required to repay all amounts outstanding under the Credit Facility and 2026 Notes. As of December 31, 2018, and at all times during the period, the Company was in compliance with its financial debt covenants. Total debt is comprised of the following (in thousands): December 31, 2018 December 31, 2017 Term credit facility $ 284,959 $ 394,250 Revolving credit facility — 2,000 5.750 400,000 — 6.375 — 300,000 Debt issuance costs (13,203 ) (10,521 ) Total debt 671,756 685,729 Less current portion of term credit facility 23,747 20,750 Less current portion of debt issuance costs (2,980 ) (2,964 ) Total long-term debt $ 650,989 $ 667,943 Other During the year ended December 31, 2018, the Company financed certain multi-year license agreements for internally-used software for $11.9 million with annual payments through June 2023 |
Corporate Restructuring and Oth
Corporate Restructuring and Other Organizational Changes | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Corporate Restructuring and Other Organizational Changes | 6. Corporate Restructuring and Other Organizational Changes Lease Terminations During the year ended December 31, 2017, the Company ceased use of a portion of its leased facilities in Edison, NJ; Chantilly, VA; Charlotte, NC; Parsippany, NJ; and Waltham, MA. As a result, the Company recorded additional expense of $2.4 million, which was recorded in general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2017. During the year ended December 31, 2016, the Company ceased use of a portion of its leased facilities in Watford, U.K.; Providence, RI; Chantilly, VA; and West Hills, CA. As a result, the Company recorded additional expense of $5.0 million, which was recorded in general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2016. The components of corporate restructuring and other reorganization activities from the acquisitions are included in the following table (in thousands): Facility Closures Balance, December 31, 2016 $ 4,559 Restructuring charges (adjustments) incurred, net 2,447 Amounts paid during the period (1,285 ) Foreign currency translation adjustments 224 Balance, December 31, 2017 $ 5,945 Amounts paid during the period (1,732 ) Foreign currency translation adjustments (86 ) Balance, December 31, 2018 $ 4,127 Of the $4.1 million facility closure liability, $1.6 million and $2.5 million is recorded in other current liabilities and other noncurrent liabilities, respectively, in the consolidated balance sheet at December 31, 2018. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Common Stock and Treasury Stock | 7. Common Stock and Treasury Stock In 2005, the Company’s board approved a stock repurchase program authorizing the Company, as market and business conditions warrant, to acquire its common stock and periodically authorize additional funds for the program. In February 2018, the board approved the repurchase of up to $200.0 million of the Company’s common stock, in place of the remaining purchase amounts previously authorized. The Company repurchased 2,346,427 shares for $54.5 million under the program for the year ended December 31, 2018. Under the program to date, the Company has repurchased 44,129,393 shares for approximately $547.8 million. As of December 31, 2018, the maximum remaining amount authorized for purchase under the stock repurchase program was $176.6 million. During the year ended September 30, 2006, the Company began to issue shares of treasury stock upon exercise of stock options, payment of earned performance shares, issuance of restricted share awards (“RSAs”), vesting of restricted share units (“RSUs”), and for issuances of common stock pursuant to the Company’s employee stock purchase plan. Treasury shares issued during the year ended December 31, 2016, included 797,140; 148,322; and 470,029 shares issued pursuant to stock option exercises, RSA grants, and retention restricted share award (“retention RSA”) grants, respectively. Treasury shares issued during the year ended December 31, 2017, included 1,204,559 and 560,174 shares issued pursuant to stock option exercises and RSA grants, respectively. Treasury shares issued during the year ended December 31, 2018, included 1,379,704 and 10,000 shares issued pursuant to stock option exercises and RSUs vested, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. Earnings Per Share Basic earnings per share is computed in accordance with ASC 260, Earnings per Share, The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings per share (in thousands): Years Ended December 31, 2018 2017 2016 Weighted average shares outstanding: Basic weighted average shares outstanding 116,057 118,059 117,533 Add: Dilutive effect of stock options and RSUs 1,575 1,385 1,314 Diluted weighted average shares outstanding 117,632 119,444 118,847 The diluted earnings per share computation excludes 2.2 million, 3.9 million, and 6.1 million options to purchase shares and contingently issuable shares during the years ended December 31 , 2018 , 2017 , and 2016 , respectively, as their effect would be anti-dilutive. Common stock outstanding as of December 31 , 2018 and 2017 , was 116,123,361 and 117,096,731 , respectively. |
Other, Net
Other, Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other, Net | 9. Other, Net Other, net is comprised of foreign currency transaction losses of $3.7 million and $2.6 million for the years ended December 31, 2018 and 2017, respectively, and foreign currency transaction gains of $4.1 million for the year ended December 31, 2016. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information The Company reports financial performance based on its segments, ACI On Premise and ACI On Demand, and analyzes Segment Adjusted EBITDA as a measure of segment profitability. The Company’s Chief Executive Officer is also the chief operating decision maker, or CODM. The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from Corporate operations. ACI On Premise serves customers who manage their software on site. These on-premise customers use the Company’s software to develop sophisticated solutions, which are often part of a larger system located and managed at the customer specified site. These customers require a level of control and flexibility that ACI On Premise solutions can offer, and they have the resources and expertise to take a lead role in managing these solutions. ACI On Demand serves the needs of banks and merchants and corporates who use payments to facilitate their core business. These on-demand solutions are maintained and delivered through the cloud via our global data centers and are available in either a single-tenant environment, SaaS offerings, or in a multi-tenant environment, PaaS offerings. 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 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. For the year ended December 31, 2017, Corporate and unallocated expenses included $46.7 of $15.4 million and $151.7 million, respectively. The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands): Years Ended December 31 , 2018 2017 2016 Revenues ACI On Premise $ 576,755 $ 598,590 $ 591,252 ACI On Demand 433,025 425,601 399,033 Corporate and other — — 15,416 Total revenue $ 1,009,780 $ 1,024,191 $ 1,005,701 Segment Adjusted EBITDA ACI On Premise $ 323,902 $ 347,094 $ 312,188 ACI On Demand 12,015 (1,832 ) (2,624 ) Depreciation and amortization (97,350 ) (102,224 ) (103,454 ) Stock-based compensation expense (20,360 ) (13,683 ) (43,613 ) Corporate and unallocated expenses (92,296 ) (144,715 ) 58,633 Interest, net (30,388 ) (38,449 ) (39,654 ) Other, net (3,724 ) (2,619 ) 4,105 Income before income taxes $ 91,799 $ 43,572 $ 185,581 Depreciation and amortization ACI On Premise $ 11,634 $ 13,094 $ 14,581 ACI On Demand 31,541 34,171 29,385 Corporate 54,175 54,959 59,488 Total depreciation and amortization $ 97,350 $ 102,224 $ 103,454 Stock-based compensation expense ACI On Premise $ 4,348 $ 2,234 $ 6,894 ACI On Demand 4,338 2,230 6,876 Corporate 11,674 9,219 29,843 Total stock-based compensation expense $ 20,360 $ 13,683 $ 43,613 Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information. The following is revenue by primary geographic market and primary solution category for the Company’s reportable segments for the periods indicated (in thousands): Year Ended December 31, 2018 Year Ended December 31, 2017 ACI On Premise ACI On Demand Total ACI On Premise ACI On Demand Total Primary Geographic Markets Americas - United States $ 131,382 $ 369,097 $ 500,479 $ 175,682 $ 365,553 $ 541,235 Americas - Other 61,969 9,577 71,546 72,802 9,429 82,231 EMEA 296,157 48,889 345,046 270,388 47,872 318,260 Asia Pacific 87,247 5,462 92,709 79,718 2,747 82,465 Total $ 576,755 $ 433,025 $ 1,009,780 $ 598,590 $ 425,601 $ 1,024,191 Primary Solution Categories Bill Payments $ — $ 275,526 $ 275,526 $ — $ 271,421 $ 271,421 Digital Channels 35,231 40,342 75,573 47,973 46,063 94,036 Merchant Payments 30,153 59,789 89,942 26,430 50,523 76,953 Payments Intelligence 42,647 46,497 89,144 33,203 47,123 80,326 Real-Time Payments 92,068 2,193 94,261 70,087 2,785 72,872 Retail Payments 376,656 8,678 385,334 420,897 7,686 428,583 Total $ 576,755 $ 433,025 $ 1,009,780 $ 598,590 $ 425,601 $ 1,024,191 Year Ended December 31, 2016 ACI On Premise ACI On Demand Other Corporate Total Primary Geographic Markets Americas - United States $ 164,058 $ 347,957 $ 15,416 $ 527,431 Americas - Other 110,463 6,255 — 116,718 EMEA 217,576 43,584 — 261,160 Asia Pacific 99,155 1,237 — 100,392 Total $ 591,252 $ 399,033 $ 15,416 $ 1,005,701 Primary Solution Categories Bill Payments $ — $ 255,540 $ — $ 255,540 Digital Channels 49,617 59,597 15,416 124,630 Merchant Payments 29,311 35,315 — 64,626 Payments Intelligence 24,665 42,984 — 67,649 Real-Time Payments 70,289 705 — 70,994 Retail Payments 417,370 4,892 — 422,262 Total $ 591,252 $ 399,033 $ 15,416 $ 1,005,701 Digital Channels revenue includes $15.4 million from CFS-related assets for the year ended December 31, 2016. The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands): December 31 , 2018 2017 Long lived assets United States $ 811,435 $ 759,513 Other 717,495 613,556 $ 1,528,930 $ 1,373,069 No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2018, 2017, and 2016. No other country outside the United States accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2018, 2017, and 2016. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans Employee Stock Purchase Plan On April 6, 2017, the board 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 the Company’s common stock. The 1999 Employee Stock Purchase Plan terminated upon the August 1, 2017, effective date of the 2017 ESPP. Under the Company’s 2017 ESPP, a total of 3,000,000 shares of the Company’s common stock have been reserved for issuance to eligible employees. Participating employees are permitted to designate up to the lesser of $25,000 or 10% of their annual base compensation for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. The price for shares of common stock purchased under the ESPP is 85% of the stock’s fair market value on the last business day of the three-month participation period. Shares issued under the ESPP during the years ended December 31, 2018, 2017, and 2016, totaled 148,520; 158,194; and 188,453, respectively. Additionally, the discount offered pursuant to the Company’s ESPP discussed above is 15%, which exceeds the 5% non-compensatory guideline in ASC 718 and exceeds the Company’s estimated cost of raising capital. Consequently, the entire 15% discount to employees is deemed to be compensatory for purposes of calculating expense using a fair value method. Compensation expense related to the ESPP for each of the years ended December 31, 2018, 2017, and 2016, was approximately $0.5 million. Stock Incentive Plans – Active Plans 2016 Equity and Performance Incentive Plan On March 23, 2016, the board approved the 2016 Equity and Performance Incentive Plan (the “2016 Incentive Plan”). The 2016 Incentive Plan is intended to meet the Company’s objective of balancing stockholder concerns about dilution with the need to provide appropriate incentives to achieve Company performance objectives. The 2016 Incentive Plan was adopted by the stockholders on June 14, 2016. Following the adoption of the 2016 Incentive Plan, the 2005 Equity and Performance Incentive Plan, as amended (the “2005 Incentive Plan”) was terminated. Termination of the 2005 Incentive Plan did not affect any equity awards outstanding under the 2005 Incentive Plan. The 2016 Incentive Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted share and restricted share units, performance shares and performance units, and other awards (“awards”). Subject to adjustment in certain circumstances, the maximum number of shares of common stock that may be issued or transferred in connection with awards granted under the 2016 Incentive Plan will be the sum of (i) 8,000,000 shares of common stock and (ii) any shares of common stock that are represented by options previously granted under the 2005 Incentive Plan which are forfeited, expire, or are canceled without delivery of common stock or which result in the forfeiture or relinquishment of common stock back to the Company. To the extent awards granted under the 2016 Incentive Plan terminate, expire, are canceled without being exercised, are forfeited or lapse for any reason, the shares of common stock subject to such award will again become available for grants under the 2016 Incentive Plan. The 2016 Incentive Plan expressly prohibits re-pricing stock options and appreciation rights. The 2016 Incentive Plan also, subject to certain limited exceptions, expressly requires a one-year vesting period for all stock options and appreciation rights. No eligible person selected by the board to receive awards (“participant”) will receive stock options, stock appreciation rights, restricted share awards, restricted share units, and other awards under the 2016 Incentive Plan, during any calendar year, for more than 3,000,000 shares of common stock. In addition, no participant may receive performance shares or performance units having an aggregate value on the date of grant in excess of $9,000,000 during any calendar year. Each of the limits described above may be adjusted equitably to accommodate a change in the capital structure of the Company. 2005 Equity and Performance Incentive Plan The Company had a 2005 Incentive Plan, as amended, under which shares of the Company’s common stock were reserved for issuance to eligible employees or non-employee directors of the Company. The 2005 Incentive Plan provided for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, performance awards, and other awards. The maximum number of shares of the Company’s common stock that was issued or transferred in connection with awards granted under the 2005 Incentive Plan was the sum of (i) 23,250,000 shares and (ii) any shares represented by outstanding options that had been granted under designated terminated stock option plans that were subsequently forfeited, expired, or are canceled without delivery of the Company’s common stock. Stock Options Stock options granted pursuant to the 2016 Incentive Plan are granted at an exercise price not less than the market value per share of the Company’s common stock on the date of grant. Under the 2016 Incentive Plan, the term of the outstanding options may not exceed ten years nor be less than one year. Vesting of options is determined by the compensation committee of the board and the administrator of the 2016 Incentive Plan and can vary based upon the individual award agreements. In addition, outstanding options do not have dividend equivalent rights associated with them under the 2016 Incentive Plan. A summary of stock option activity under the various stock incentive plans previously described is as follows: Stock Options Number of Shares Weighted- Average Exercise Price ($) Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-the-Money Options ($) Outstanding, December 31, 2017 6,162,717 $ 16.83 Granted 170,455 23.36 Exercised (1,379,704 ) 14.26 Forfeited (88,632 ) 18.56 Outstanding, December 31, 2018 4,864,836 $ 17.76 6.09 $ 48,214,530 Exercisable, December 31, 2018 3,416,715 $ 17.04 5.43 $ 36,309,807 The weighted-average grant date fair value of stock options granted during the years ended December 31, 2018, 2017, and 2016, was $7.03, $6.24, and $5.59, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2018, 2017, and 2016, was $15.8 million, $13.4 million, and $6.8 million, respectively. The fair value of options granted in the respective fiscal years are estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, with the following weighted-average assumptions: Years Ended December 31, 2018 2017 2016 Expected life (years) 5.6 5.6 5.9 Risk-free interest rate 2.7 % 1.9 % 1.2 % Expected volatility 26.4 % 29.4 % 29.7 % Expected dividend yield — — — Expected volatilities are based on the Company’s historical common stock volatility, derived from historical stock price data for periods commensurate with the options’ expected life. The expected life of options granted represents the period of time options are expected to be outstanding, based primarily on historical employee option exercise behavior. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero coupon bonds issued with a term equal to the expected life at the date of grant of the options. The expected dividend yield is zero, as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future. During the year ended December 31, 2016, the Company granted supplemental stock options with three tranches at a grant date fair value of $7.46, $7.06, and $6.50, respectively, at 133% of the exercise price for at least 20 consecutive trading days, at 167% of the exercise price for at least 20 consecutive trading days, and at 200% of the exercise price for at least 20 consecutive trading days. The employees must remain employed with the Company as of the anniversary date for the supplemental stock options to vest. The exercise price of these options is the closing market price on the date the awards were granted. With respect to supplemental stock options granted that vest based on the achievement of certain market conditions, the grant date fair value was estimated using a Monte Carlo simulation model with the following weighted-average assumptions: Year Ended December 31, 2016 Expected life (years) 7.5 Risk-free interest rate 1.6 % Expected volatility 41.6 % Expected dividend yield — Long-term Incentive Program Performance Share Awards During the years ended December 31, 2017 and 2016, pursuant to the Company’s 2016 Incentive Plan and 2005 Incentive Plan, the Company granted long-term incentive program performance share awards (“LTIP performance shares”). These LTIP performance shares are earned, if at all, based upon the achievement, over a specified period that must not be less than one year and is typically a three-year performance period, of performance goals related to (i) the compound annual growth over the performance period in the sales for the Company as determined by the Company, and (ii) the cumulative operating income or EBITDA over the performance period as determined by the Company. Up to 200% of the LTIP performance shares may be earned upon achievement of performance goals equal to or exceeding the maximum target levels for the performance goals over the performance period. On a quarterly basis, management must evaluate the probability that the threshold performance goals will be achieved, if at all, and the anticipated level of attainment to determine the amount of compensation expense to record in the consolidated financial statements. During the fourth quarter of the year ended December 31, 2017, the Company revised the expected attainment rates for the awards granted in fiscal 2015 and 2016 from 100% to 0% and 65%, respectively, due to changes in actual and forecasted sales and operating income. The expected attainment rate for the 2017 grants remains at 100%. A summary of the nonvested LTIP performance shares are as follows: Nonvested LTIP Performance Shares Number of Shares at Expected Attainment Weighted- Average Grant Date Fair Value Nonvested at December 31, 2017 1,125,035 $ 18.94 Forfeited (93,147 ) 19.26 Change in expected attainment for 2016 grants (491,191 ) 17.91 Nonvested at December 31, 2018 540,697 $ 19.83 Restricted Share Awards During the years ended December 31, 2017 and 2016, pursuant to the Company’s 2016 Incentive Plan and 2005 Incentive Plan, the Company granted RSAs. The awards have requisite service periods of three years and vest in increments of 33% on the anniversary of the grant dates. Under each arrangement, shares are issued without direct cost to the employee. RSAs granted to our board vest one year from grant or as of the next annual shareholders meeting, whichever is earlier. The Company estimates the fair value of the RSAs based upon the market price of the Company’s stock at the date of grant. The RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period, and the participant has voting rights for each share of common stock. The Company recognizes compensation expense for RSAs on a straight-line basis over the requisite service period. A summary of nonvested RSAs are as follows: Nonvested Restricted Share Awards Number of Shares Weighted- Average Grant Date Fair Value Nonvested at December 31, 2017 503,237 $ 20.63 Vested (231,473 ) 21.20 Forfeited (58,427 ) 19.92 Nonvested at December 31, 2018 213,337 $ 20.21 During the year ended December 31, 2018, a total of 231,473 RSAs 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 During the year ended December 31, 2015, pursuant to the Company’s 2005 Incentive Plan, the Company granted performance-based restricted share awards (“PBRSAs”). The PBRSA grants provided for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period, and the participant had voting rights for each share of common stock. These PBRSAs were earned, if at all, based upon the achievement of performance goals over a performance period and completion of the service period. The PBRSAs granted on June 9, 2015, had a graded-vesting period of three years (33% vest each year) and were subject to performance targets based on the Company’s EBITDA. The first 33% of the PBRSAs issued vested subject to meeting the EBITDA target for the year ending December 31, 2015. The remaining 66% of the PBRSAs issued vested 33% at the end of year two and 33% at the end of year three, subject to meeting the EBITDA target for the year ending December 31, 2016. The PBRSAs granted on September 15, 2015, had a vesting period of 1.3 years and were subject to performance targets based on the Company’s EBITDA for the year ending December 31, 2016. In no event did any of the PBRSAs become earned if the Company’s EBITDA was below a predetermined minimum threshold level at the conclusion of the performance period. Assuming achievement of the predetermined EBITDA threshold level, up to 150% of the PBRSAs were earned upon achievement of performance goals equal to or exceeding the maximum target levels for the performance goals over the performance period. On a quarterly basis, management evaluated the probability that the threshold performance goals were achieved, if at all, and the anticipated level of attainment to determine the amount of compensation expense to record in the consolidated financial statements. During the year ended December 31, 2016, the first tranche of the June 9th grant vested at 90.4%. During the first quarter of the year ended December 31, 2017, the Company revised the attainment rate for the second and third tranches of the June 9th grant and the September 15th grant from 100% to 98% due to actual EBITDA achieved. The Company recognized compensation expense for PBRSAs on a straight-line basis over the requisite service periods. A summary of nonvested PBRSAs are as follows: Nonvested Performance-Based Restricted Share Awards Number of Shares Weighted- Average Grant Date Fair Value Nonvested as of December 31, 2017 173,636 $ 24.41 Vested (173,636 ) 24.41 Nonvested as of December 31, 2018 — $ — During the years ended December 31, 2018, a total of 173,636 PBRSAs 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 years ended December 31, 2018 and 2017, pursuant to the 2016 Incentive Plan, the Company granted total shareholder return awards (“TSRs”). 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%. To determine the grant date fair value of the TSRs, a Monte Carlo simulation model is used. The Company recognizes compensation expense for the TSRs over a three-year performance period based on the grant date fair value. The grant date fair value of the TSRs was estimated using the following weighted-average assumptions: Years Ended December 31, 2018 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 are as follows: Nonvested Total Shareholder Return Awards Number of Shares at Expected Attainment Weighted- Average Grant Date Fair Value Nonvested as of December 31, 2017 143,649 $ 24.37 Granted 541,214 31.31 Forfeited (42,855 ) 30.19 Change in attainment 76,923 24.37 Nonvested as of December 31, 2018 718,931 $ 29.25 Restricted Share Units During the year ended December 31, 2018, pursuant to the 2016 Incentive Plan, the Company granted restricted share unit awards (“RSUs”). RSUs generally have requisite service periods of three years and vest in increments of 33% on the anniversary of the grant dates. Under each arrangement, RSUs are 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 are as follows: Nonvested Restricted Share Units Number of Shares Weighted- Average Grant Date Fair Value Nonvested as of December 31, 2017 — $ — Granted 714,123 23.81 Vested (10,000 ) 25.72 Forfeited (53,078 ) 23.36 Nonvested as of December 31, 2018 651,045 $ 23.82 During the year ended December 31, 2018, a total of 10,000 RSUs vested. As of December 31, 2018, there was unrecognized compensation expense of $13.2 million related to TSRs, $10.8 million related to RSUs, $3.8 million related to LTIP performance shares, $1.9 million related to nonvested stock options, and $2.5 million related to nonvested RSAs, which the Company expects to recognize over weighted-average periods of 2.0 years, 2.1 years, 1.2 years, 0.9 years, and 1.2 years, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 during the years ended December 31, 2018, 2017, and 2016, of $20.4 million, $13.7 million, and $43.6 million, respectively, with corresponding tax benefits of $3.9 million, $1.7 million, and $14.3 million, respectively. The Company recognizes compensation expense for stock option awards that vest with only service conditions on a straight-line basis over the requisite service period. The Company recognizes compensation expense for stock option awards that vest with service and market-based conditions on a straight-line basis over the longer of the requisite service period or the estimated period to meet the defined market-based condition. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans ACI 401(k) Plan The ACI 401(k) Plan is a defined contribution plan covering all domestic employees of the Company. Participants may contribute up to 75% of their annual eligible compensation up to a maximum of $18,500 (for employees who are under the age of 50 on December 31, 2018) or a maximum of $24,500 (for employees aged 50 or older on December 31, 2018). After one year of service, the Company matches 100% of the first 4% of eligible participant contributions and 50% of the next 4% of eligible participant contributions, not to exceed $5,000 per employee annually. Company contributions charged to expense during the years ended December 31, 2018, 2017, and 2016, were $6.4 million, $5.3 million, and $5.5 million, respectively. ACI Worldwide EMEA Group Personal Pension Scheme The ACI Worldwide EMEA Group Personal Pension Scheme is a defined contribution plan covering substantially all ACI Worldwide (EMEA) Limited (“ACI-EMEA”) employees. For those ACI-EMEA employees who elect to participate in the plan, the Company contributes a minimum of 8.5% of eligible compensation to the plan for employees employed at December 1, 2000 (up to a maximum of 15.5% for employees aged over 55 years on December 1, 2000) or from 6% to 10% of eligible compensation for employees employed subsequent to December 1, 2000. ACI-EMEA contributions charged to expense were $1.6 million during both the years ended December 31, 2018 and 2017, and $1.7 million during the year ended December 31, 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into U.S. Law. 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 Deferred Tax Assets and Liabilities The Tax Act reduced the U.S. federal corporate income tax rate from 35% to 21%, effective January 1, 2018. During the year ended December 31, 2017, the Company remeasured certain deferred tax assets and liabilities and recorded a $15.0 million provisional tax charge. During the year ended December 31, 2018, the Company reduced the initial provisional tax charge by recording a $4.9 million benefit related to accelerated tax deductions claimed on the 2017 U.S. Federal Income Tax Return. One-Time The Tax Act required U.S. companies to pay a one-time Foreign Tax Credit Utilization The Tax Act changed taxation of foreign earnings. Generally, the Company will no longer be subject to U.S. federal income taxes upon the receipt of dividends from foreign subsidiaries, nor will the Company be permitted to utilize foreign tax credits related to such dividends. As a result of the aforementioned, as well as the U.S. federal corporate income tax rate reduction, the acceleration of tax deductions, and the reduction in the one-time Global Intangible Low-Taxed The Tax Act subjects a U.S. shareholder to tax on global intangible low-taxed Accounting for Global Intangible Low-Taxed Indefinite Reinvestment During the years ended December 31, 2017 and 2016, the Company considered all earnings in foreign subsidiaries to be indefinitely reinvested, and accordingly, recorded no deferred income taxes related to unremitted earnings. As of December 31, 2018, the Company considered only the earnings in its Indian subsidiaries to be indefinitely reinvested. The earnings of all other foreign subsidiaries are no longer considered indefinitely reinvested and the Company recorded a $1.1 million deferred tax charge associated with withholding and state taxes on the future repatriation of those earnings. The Company is also permanently reinvested for outside book/tax basis differences related to foreign subsidiaries. For financial reporting purposes, income before income taxes includes the following components (in thousands): Years Ended December 31, 2018 2017 2016 United States $ 16,312 $ (42,863 ) $ 134,740 Foreign 75,487 86,435 50,841 Total $ 91,799 $ 43,572 $ 185,581 The expense (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2018 2017 2016 Federal Current $ 6,545 $ 2,586 $ 14,108 Deferred (6,587 ) 19,212 19,034 Total (42 ) 21,798 33,142 State Current 4,441 (1,857 ) 12,565 Deferred (2,649 ) (1,324 ) (2,502 ) Total 1,792 (3,181 ) 10,063 Foreign Current 17,626 16,048 11,671 Deferred 3,502 3,772 1,170 Total 21,128 19,820 12,841 Total $ 22,878 $ 38,437 $ 56,046 Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands): Years Ended December 31, 2018 2017 2016 Tax expense at federal rate of 21% (35% pre-2018) $ 19,278 $ 15,250 $ 64,953 State income taxes, net of federal benefit 5,246 (2,238 ) 7,060 Change in valuation allowance 12,657 (1,884 ) (8,524 ) Foreign tax rate differential (4,796 ) (15,622 ) (11,830 ) Unrecognized tax benefit increase 1,262 3,007 1,045 Tax effect of foreign operations 8,546 5,532 5,988 Tax benefit of research & development (2,557 ) (1,904 ) (1,088 ) Transition tax (8,112 ) 20,867 — Revaluation of deferred tax balances (4,937 ) 14,953 — Performance-based compensation (4,541 ) 2,081 — Domestic production activities — (3,793 ) (700 ) Other 832 2,188 (858 ) Income tax provision $ 22,878 $ 38,437 $ 56,046 The countries having the greatest impact on the tax rate adjustment line shown in the above table as “Foreign tax rate differential” for the year ended December 31, 2018, are Ireland and Luxembourg. The countries having the greatest impact on the tax rate adjustment line shown in the above table as “Foreign tax rate differential” for the year ended December 31, 2017, are Ireland, Luxembourg, and the United Kingdom. The countries having the greatest impact on the tax rate adjustment line shown in the above table as “Foreign tax rate differential” for the year ended December 31, 2016, are Ireland, South Africa, and the United Kingdom. The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands): December 31, 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 25,745 $ 38,419 Tax credits 43,838 37,305 Compensation 15,934 18,124 Deferred revenue 27,587 22,248 Research and development expense deferral 12,631 — Other 5,393 9,055 Gross deferred income tax assets 131,128 125,151 Less: valuation allowance (20,415 ) (7,808 ) Net deferred income tax assets $ 110,713 $ 117,343 Deferred income tax liabilities: Depreciation and amortization $ (60,872 ) $ (67,504 ) Deferred revenue (54,508 ) — Total deferred income tax liabilities (115,380 ) (67,504 ) Net deferred income taxes $ (4,667 ) $ 49,839 Deferred income taxes / liabilities included in the balance sheet are: Deferred income tax asset – noncurrent $ 27,048 $ 66,749 Deferred income tax liability – noncurrent (31,715 ) (16,910 ) Net deferred income taxes $ (4,667 ) $ 49,839 In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers projected future taxable income, carryback opportunities, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, the Company believes it is more likely than not that it will realize the benefits of these deductible differences, net of the valuation allowances recorded. During the year ended December 31, 2018, the Company increased its valuation allowance by $12.7 million which relates to an increase in valuation allowance on U.S. foreign tax credits offset by a reduction in valuation allowance on U.S. state net operating losses. At December 31, 2018, the Company had domestic federal tax net operating losses (“NOLs”) of $72.4 million, which will begin to expire in 2019. The Company had deferred tax assets equal to $1.8 million related to domestic state tax NOLs which will begin to expire in 2019. The Company does not have any valuation allowance against the federal tax NOLs but has provided a $1.0 million valuation allowance against the deferred tax asset associated with the state NOLs. The Company had foreign tax NOLs of $32.5 million, of which $30.2 million may be utilized over an indefinite life, with the remainder expiring over the next 17 years. The Company has provided a $1.0 million valuation allowance against the deferred tax asset associated with the foreign NOLs. The Company had U.S. foreign tax credit carryforwards at December 31, 2018, of $34.6 million, for which an $15.5 million valuation allowance has been provided. The U.S. foreign tax credits will begin to expire in 2022. The Company had foreign tax credit carryforwards in other foreign jurisdictions at December 31, 2018, of $1.5 million, of which $1.1 million may be utilized over an indefinite life, with the remainder expiring over the next seven years. The Company has provided a $1.1 million valuation allowance against the tax benefit associated with these foreign credits. The Company also has domestic federal and state general business credit carryforwards at December 31, 2018, of $12.5 million and $0.7 million, respectively, which will begin to expire in 2019 and 2022, respectively. The unrecognized tax benefit at December 31, 2018 and 2017, was $28.4 million and $27.2 million, respectively, of which $22.6 million and $21.5 million, respectively, are included in other noncurrent liabilities in the consolidated balance sheets. Of the total unrecognized tax benefit amounts at December 31, 2018 and 2017, $27.5 million and $25.9 million, respectively, represent the net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in the respective years. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands): 2018 2017 2016 Balance of unrecognized tax benefits at beginning of year $ 27,237 $ 24,278 $ 21,079 Increases for tax positions of prior years 315 2,478 58 Decreases for tax positions of prior years (61 ) (114 ) (361 ) Increases for tax positions established for the current period 1,185 1,677 5,185 Decreases for settlements with taxing authorities — (154 ) (167 ) Reductions resulting from lapse of applicable statute of limitation (115 ) (1,155 ) (1,310 ) Adjustment resulting from foreign currency translation (155 ) 227 (206 ) Balance of unrecognized tax benefits at end of year $ 28,406 $ 27,237 $ 24,278 The Company files income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and many foreign jurisdictions. The United States, Canada, India, Ireland, Luxembourg, South Africa, and United Kingdom are the main taxing jurisdictions in which the Company operates. The years open for audit vary depending on the tax jurisdiction. In the United States, the Company’s tax returns for years following 2014 are open for audit. In the foreign jurisdictions, the tax returns open for audit generally vary by jurisdiction between 2003 and 2017. The Company’s Indian income tax returns covering fiscal years 2003, 2005, and 2010 through 2013 are under audit by the Indian tax authority. Other foreign subsidiaries could face challenges from various foreign tax authorities. It is not certain that the local authorities will accept the Company’s tax positions. The Company believes its tax positions comply with applicable tax law and intends to vigorously defend its positions. However, differing positions on certain issues could be upheld by tax authorities, which could adversely affect the Company’s financial condition and results of operations. The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $3.9 million due to the settlement of various audits and the expiration of statutes of limitations. The Company accrues interest related to uncertain tax positions in interest expense or interest income and recognizes penalties related to uncertain tax positions in other income or other expense. As of December 31, 2018 and 2017, $1.2 million is accrued for the payment of interest and penalties related to income tax liabilities. The aggregate amount of interest and penalties expense (benefit) recorded in the statements of operations for the years ended December 31, 2018, 2017, and 2016, is $0.0 million, $(0.8) million, and $(0.2) million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies In accordance with ASC 460, Guarantees , the Company recognizes the fair value for guarantee and indemnification arrangements it issues or modifies if these arrangements are within the scope of the interpretation. In addition, the Company must continue to monitor the conditions that are subject to the guarantees and indemnifications, as required under the previously existing generally accepted accounting principles, to identify if a loss has occurred. If the Company determines it is probable a loss has occurred, then any estimable loss would be recognized under those guarantees and indemnifications. Under its customer agreements, the Company may agree to indemnify, defend, and hold harmless its customers from and against certain losses, damages, and costs arising from claims alleging that the use of its software infringes the intellectual property of a third-party. Historically, the Company has not been required to pay material amounts in connection with claims asserted under these provisions, and accordingly, the Company has not recorded a liability relating to such provisions. Under its customer agreements, the Company also may represent and warrant to customers that its software will operate substantially in conformance with its documentation, and that the services the Company performs will be performed in a workmanlike manner by personnel reasonably qualified by experience and expertise to perform their assigned tasks. Historically, only minimal costs have been incurred relating to the satisfaction of warranty claims. In addition, from time to time, the Company may guarantee the performance of a contract on behalf of one or more of its subsidiaries, or a subsidiary may guarantee the performance of a contract on behalf of another subsidiary. Other guarantees include promises to indemnify, defend, and hold harmless the Company’s executive officers, directors, and certain other key officers. The Company’s certificate of incorporation provides that it will indemnify and advance expenses to its directors and officers to the maximum extent permitted by Delaware law. The indemnification covers any expenses and liabilities reasonably incurred by a person, by reason of the fact that such person is, was, or has agreed to be a director or officer, in connection with the investigation, defense, and settlement of any threatened, pending, or completed action, suit, proceeding, or claim. The Company’s certificate of incorporation authorizes the use of indemnification agreements, and the Company enters into such agreements with its directors and certain officers from time to time. These indemnification agreements typically provide for a broader scope of the Company’s obligation to indemnify the directors and officers than set forth in the certificate of incorporation. The Company’s contractual indemnification obligations under these agreements are in addition to the respective directors’ and officers’ rights under the certificate of incorporation or under Delaware law. Operating Leases The Company leases office space and equipment under operating leases that run through October 2028. The leases do not impose restrictions as to the Company’s ability to pay dividends or borrow funds, or otherwise restrict the Company’s ability to conduct business. On a limited basis, certain lease arrangements include escalation clauses, which provide for rent adjustments due to inflation changes with the expense recognized on a straight-line basis over the term of the lease. Lease payments subject to inflation adjustments do not represent a significant portion of the Company’s future minimum lease payments. Several leases provide renewal options, but in all cases, such renewal options are at the election of the Company. Certain lease agreements provide the Company with the option to purchase the leased equipment at its fair market value at the conclusion of the lease term. Total operating lease expense for the years ended December 31, 2018, 2017, and 2016 was $24.6 million, $24.1 million, and $25.3 million, respectively. Aggregate minimum operating lease payments under these agreements in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Operating Leases 2019 $ 16,925 2020 14,212 2021 10,538 2022 8,178 2023 6,529 Thereafter 21,196 Total minimum lease payments $ 77,578 Legal Proceedings On September 23, 2015, a jury verdict was returned against ACI Worldwide Corp. (“ACI Corp.”), a subsidiary of the Company, for $ 43.8 for $43.8 million for damages and $2.7 million for attorney fees and costs. ACI Corp. disagreed with the verdicts and judgment, and after the trial court denied ACI Corp.’s post-judgment motions ACI Corp. perfected an appeal of the dismissal of its claims against BHMI and the judgment in favor of BHMI. On June 9, 2017, the Nebraska Supreme Court affirmed the District Court judgment. The Company recorded expense of $48.1 million during the year ended December 31, 2017, of which $46.7 million is included in general and administrative expense and $1.4 million in interest expense in the accompanying consolidated statement of operations. The Company paid the judgment, including interest, during the year ended December 31, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 15. Accumulated Other Comprehensive Loss Activity within accumulated other comprehensive loss for the three years ended December 31, 2018, 2017, and 2016, which consists of foreign currency translation adjustments, was as follows (in thousands): Accumulated Other Comprehensive Loss Balance at December 31, 2015 $ (71,576 ) Other comprehensive loss (22,524 ) Balance at December 31, 2016 (94,100 ) Other comprehensive income 16,744 Balance at December 31, 2017 (77,356 ) Other comprehensive loss (15,261 ) Balance at December 31, 2018 $ (92,617 ) |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 16. Quarterly Financial Data (Unaudited) Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, (in thousands, except per share amounts) 2018 2018 2018 2018 2018 Revenues: Software as a service and platform as a service $ 104,280 $ 113,600 $ 104,519 $ 110,626 $ 433,025 License 28,046 45,555 68,964 137,991 280,556 Maintenance 56,659 55,048 54,373 53,065 219,145 Services 20,325 20,792 17,669 18,268 77,054 Total revenues 209,310 234,995 245,525 319,950 1,009,780 Operating expenses: Cost of revenue (1) 107,336 116,261 102,473 104,281 430,351 Research and development 36,791 37,862 36,008 32,969 143,630 Selling and marketing 31,893 33,160 28,252 24,576 117,881 General and administrative 28,649 28,837 29,537 20,399 107,422 Depreciation and amortization 21,345 21,033 20,896 21,311 84,585 Total operating expenses 226,014 237,153 217,166 203,536 883,869 Operating income (loss) (16,704 ) (2,158 ) 28,359 116,414 125,911 Other income (expense): Interest expense (9,365 ) (9,717 ) (12,573 ) (9,875 ) (41,530 ) Interest income 2,744 2,742 2,763 2,893 11,142 Other, net (55 ) (1,677 ) (1,304 ) (688 ) (3,724 ) Total other income (expense) (6,676 ) (8,652 ) (11,114 ) (7,670 ) (34,112 ) Income (loss) before income taxes (23,380 ) (10,810 ) 17,245 108,744 91,799 Income tax expense (benefit) (3,952 ) 3,764 2,012 21,054 22,878 Net income (loss) $ (19,428 ) $ (14,574 ) $ 15,233 $ 87,690 $ 68,921 Earnings (loss) per share Basic $ (0.17 ) $ (0.13 ) $ 0.13 $ 0.76 $ 0.59 Diluted $ (0.17 ) $ (0.13 ) $ 0.13 $ 0.74 $ 0.59 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, (in thousands, except per share amounts) 2017 2017 2017 2017 2017 Revenues: Software as a service and platform as a service $ 99,447 $ 113,469 $ 99,761 $ 112,895 $ 425,572 License 59,381 54,180 50,017 129,546 293,124 Maintenance 54,471 56,009 56,349 55,242 222,071 Services 18,163 16,941 19,608 28,712 83,424 Total revenues 231,462 240,599 225,735 326,395 1,024,191 Operating expenses: Cost of revenue (1) 108,543 120,357 107,393 115,993 452,286 Research and development 37,285 34,969 33,935 30,732 136,921 Selling and marketing 27,137 28,817 25,236 26,695 107,885 General and administrative (2) 32,503 72,527 25,302 22,700 153,032 Depreciation and amortization 22,371 22,372 22,446 22,238 89,427 Total operating expenses 227,839 279,042 214,312 218,358 939,551 Operating income (loss) 3,623 (38,443 ) 11,423 108,037 84,640 Other income (expense): Interest expense (10,160 ) (10,664 ) (9,374 ) (8,815 ) (39,013 ) Interest income 106 150 165 143 564 Other, net 649 (1,766 ) (1,059 ) (443 ) (2,619 ) Total other income (expense) (9,405 ) (12,280 ) (10,268 ) (9,115 ) (41,068 ) Income (loss) before income taxes (5,782 ) (50,723 ) 1,155 98,922 43,572 Income tax expense (benefit) (4,174 ) (20,914 ) (2,233 ) 65,758 38,437 Net income (loss) $ (1,608 ) $ (29,809 ) $ 3,388 $ 33,164 $ 5,135 Earnings (loss) per share Basic $ (0.01 ) $ (0.25 ) $ 0.03 $ 0.28 $ 0.04 Diluted $ (0.01 ) $ (0.25 ) $ 0.03 $ 0.28 $ 0.04 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. (2) General and administrative expenses in the second quarter includes the BHMI judgment. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 17. Subsequent Event Speedpay On February 28, 2019, the Company and The Western Union Company (“Western Union”) announced that they had entered into a definitive agreement for the Company to acquire Western Union’s Speedpay U.S. domestic bill pay business for approximately $750.0 million in cash. The Company has obtained commitments from Bank of America, N.A. to arrange, and Bank of America to provide, subject to certain conditions, a senior secured first-lien term loan of $500.0 million under a proposed amendment to the Credit Agreement. The Company will use the funds from the new term loan in addition to drawing on the existing available Revolving Credit Facility to fund the acquisition. The transaction is subject to satisfaction of customary closing conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business | ACI Worldwide, Inc., a Delaware corporation, and its subsidiaries (collectively referred to as “ACI” or the “Company”) develop, market, install, and support a broad line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, the Company distributes or acts as a sales agent for software developed by third parties. These products and services are used principally by banks, financial intermediaries, merchants and corporates, both in domestic and international markets. |
Consolidated Financial Statements | Consolidated Financial Statements The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Capital Stock | Capital Stock The Company’s outstanding capital stock consists of a single class of common stock. Each share of common stock is entitled to one vote for each matter subject to a stockholder’s vote and to dividends, if and when declared by the board of directors (the “board”). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash and cash equivalents includes holdings in checking, savings, money market, and overnight sweep accounts, all of which have daily maturities, as well as time deposits with maturities of three months or less at the date of purchase. The carrying amounts of cash and cash equivalents on the consolidated balance sheets approximate fair value. |
Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities December 31, (in thousands) 2018 2017 Settlement deposits $ 23,651 $ 22,282 Settlement receivables 8,605 30,063 Other 7,574 5,781 Total other current assets $ 39,830 $ 58,126 December 31, (in thousands) 2018 2017 Settlement payables $ 31,605 $ 48,953 Accrued interest 8,407 7,291 Vendor financed licenses 3,551 1,862 Royalties payable 11,318 9,264 Other 33,173 35,534 Total other current liabilities $ 88,054 $ 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 automated clearing house (“ACH”) payments. The Company creates a receivable for the amount due from the credit or debit card company and an offsetting payable to the client. Once confirmation is received that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may receive the funds into bank accounts controlled by and in the Company’s name that are not disbursed to its clients by the end of the day resulting in a settlement deposit on the Company’s books. |
Off Balance Sheet Settlement Accounts | Off Balance Sheet Settlement Accounts The Company also enters into agreements with certain clients to process payment funds on their behalf. When an 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 December 31, 2018 and 2017, were $256.5 million and $238.9 million, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2018 and 2017, net property and equipment consisted of the following (in thousands): Useful Lives 2018 2017 Computer and office equipment 3 - 5 years $ 129,359 $ 123,804 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 32,096 32,364 Furniture and fixtures 7 years 12,500 12,158 Building and improvements 7 - 30 years 14,381 12,651 Land Non depreciable 1,785 1,785 190,121 182,762 Less: accumulated depreciation (117,392 ) (102,534 ) Property and equipment, net $ 72,729 $ 80,228 |
Software | Software Software may be for internal use or available for sale. Costs related to certain software, which is available for sale, are capitalized in accordance with Accounting Standards Codification (“ASC”) 985-20, Costs of Software to be Sold, Leased, or Marketed Internal Use Software Amortization of software costs to be sold or marketed externally is determined on a product-by-product basis and begins when the product is available for licensing to customers. The annual amortization shall be the greater of the amount computed using (a) the ratio of current gross revenues for a product to the total of current and anticipated future gross revenues for that product or (b) the straight-line method over the remaining estimated economic life of the product, including the period being reported on. Due to competitive pressures, it may be possible that the estimates of anticipated future gross revenue or remaining estimated economic life of the software product will be reduced significantly. As a result, the carrying amount of the software product may be reduced accordingly. Amortization of internal-use software is generally computed using the straight-line method over estimated useful lives of three to ten years. |
Business Combinations | Business Combinations The Company applies the provisions of ASC 805, Business Combinations , in the accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, it records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships, covenants not to compete and acquired developed technologies, brand awareness and market position, as well as assumptions about the period of time the brand will continue to be used in our product portfolio, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. |
Fair Value | Fair Value ASC 820, Fair Value Measurements and Disclosures • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. • Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s 5.750% Senior Notes due 2026 (“2026 Notes”) was $395.0 million as of December 31, 2018. The fair value of the Company’s 6.375% Senior Notes due 2020 (“2020 Notes”) was $305.7 million as of 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 and Other Intangibles | Goodwill and Other Intangibles In accordance with ASC 350, Intangibles – Goodwill and Other , the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level using the discounted cash flow valuation model and allocates goodwill to these reporting units using a relative fair value approach. During this assessment, management relies on a number of factors, including operating results, business plans, and anticipated future cash flows. The Company has identified its reportable segments, ACI On Premise and ACI On Demand, as the reporting units. As of December 31, 2018 and 2017, the Company’s goodwill of $909.7 million was allocated to its two reporting units, with $725.9 allocated to ACI On Premise and $183.8 million allocated to ACI On Demand. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates, and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as company-specific risk factors. Operational management, considering industry and company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period, assuming a constant WACC and low, long-term growth rates. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value substantially exceeded the current carrying value for all reporting units for all periods. Other intangible assets, which include customer relationships and trademarks and trade names, are amortized using the straight-line method over periods ranging from three years to 20 years. The Company reviews its other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group may not be recoverable. An impairment loss is recorded if the sum of the future cash flows expected to result from the use of the asset (undiscounted and without interest charges) is less than the carrying amount of the asset. The amount of the impairment charge is measured based upon the fair value of the asset group. |
Treasury Stock | Treasury Stock The Company accounts for shares of its common stock that are repurchased without intent to retire as treasury stock. Such shares are recorded at cost and reflected separately on the consolidated balance sheets as a reduction of stockholders’ equity. The Company issues shares of treasury stock upon exercise of stock options, issuance of restricted share awards and restricted share units, payment of earned performance shares, and for issuances of common stock pursuant to the Company’s employee stock purchase plan. For purposes of determining the cost of the treasury shares re-issued, the Company uses the average cost method. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans In accordance with ASC 718, Compensation – Stock Compensation , the Company recognizes stock-based compensation expense for awards that are probable of vesting on a straight-line basis over the requisite service period of the award, which is generally the vesting term. Stock-based compensation expense is recorded in operating expenses depending on where the respective individual’s compensation is recorded. The Company generally utilizes the Black–Scholes option–pricing model to determine the fair value of stock options on the date of grant. To determine the grant date fair value of the supplemental stock options and total shareholder return awards (“TSRs”), a Monte Carlo simulation model was used. The assumptions utilized in the Black-Scholes option-pricing and Monte Carlo simulation models, as well as the description of the plans the stock-based awards are granted under, are described in further detail in Note 11, Stock-Based Compensation Plans . |
Translation of Foreign Currencies | Translation of Foreign Currencies The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). |
Income Taxes | Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company periodically assesses its tax exposures and establishes, or adjusts, estimated unrecognized tax benefits for probable assessments by taxing authorities, including the Internal Revenue Service (“IRS”), and various foreign and state authorities. Such unrecognized tax benefits represent the estimated provision for income taxes expected to ultimately be paid. |
New Accounting Standards Recently Adopted | New Accounting Standards Recently Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (codified as “ASC 606”) as well as other clarifications and technical guidance related to this new revenue standard, including ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers . ASC 606 superseded the revenue recognition requirements in ASC 605, Revenue Recognition , and most industry-specific guidance. The Company adopted ASC 606 and ASC 340-40 on January 1, 2018 (the effective date) using the modified retrospective transition method which required an adjustment to retained earnings for the cumulative effect of applying ASC 606 to active contracts as of the adoption date. For active contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating the transaction price in accordance with the practical expedient permitted under ASC 606. The cumulative effect of applying ASC 606 to active contracts as of the adoption date was an increase to retained earnings of $244.0 million. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments , an update that addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Among the cash flow matters addressed in the update are payments for costs related to debt prepayments or extinguishments, payments related to settlement of certain types of debt instruments, payments of contingent consideration made after a business combination, proceeds from insurance claims and corporate-owned life insurance policies, and distributions received from equity method investees, among others. The amendments are applied using a retrospective transition method to each period presented, unless impracticable for specific cash flow matters, in which case the amendments would be applied prospectively as of the earliest date practicable. The Company adopted ASU 2016-15 as of January 1, 2018. The adoption of ASU 2016-15 was not material to the consolidated statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory , to simplify the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Previously, U.S. GAAP prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This prohibition on recognition was an exception to the principle of comprehensive recognition of current and deferred income taxes in U.S. GAAP. The limited amount of authoritative guidance about the exception led to diversity in practice and is a source of complexity in financial reporting, particularly for an intra-entity transfer of intellectual property. Under the amendments of ASU 2016-16, an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, this amendment eliminates the exception for an intra-entity transfer of an asset other than inventory. The amendments to this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2016-16 as of January 1, 2018. The adoption of ASU 2016-16 had no impact on the consolidated balance sheet, results of operations, or statement of cash flows. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, Compensation – Stock Compensation, In August 2018, the FASB issued ASU 2018-05, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Software |
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 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. To determine ACI’s lease population, the team reviewed leases included in the current ASC 840 minimum lease payments disclosure as well as supplier contracts, including cloud computing, print, mail services and colocation agreements for potential embedded leases. The Company has determined that the adoption of ASC 842 primarily relates to its real estate leases for office and datacenter facilities. The Company expects the adoption of ASC 842 will have a material impact on its 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 December 31, 2018, the Company’s undiscounted minimum commitments under noncancelable operating leases was approximately $77.6 million. The Company does not expect the adoption of ASC 842 to have a material effect on its results of operations, stockholders’ equity, or statement of cash flows. Based on currently available information, the Company expects to recognize operating lease liabilities and ROU assets of $65 million – $75 million and $60 million – $70 million, respectively The expected operating lease liabilities were calculated based on the present value of the remaining minimum lease payments for existing operating leases as of December 31, 2018. The expected ROU assets will reflect adjustments for derecognition of deferred leasing incentives and prepaid rents 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 cash flows. |
Earnings per share | Basic earnings per share is computed in accordance with ASC 260, Earnings per Share, |
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 Executive Officer is also the chief operating decision maker, or CODM. The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from Corporate operations. ACI On Premise serves customers who manage their software on site. These on-premise customers use the Company’s software to develop sophisticated solutions, which are often part of a larger system located and managed at the customer specified site. These customers require a level of control and flexibility that ACI On Premise solutions can offer, and they have the resources and expertise to take a lead role in managing these solutions. ACI On Demand serves the needs of banks and merchants and corporates who use payments to facilitate their core business. These on-demand solutions are maintained and delivered through the cloud via our global data centers and are available in either a single-tenant environment, SaaS offerings, or in a multi-tenant environment, PaaS offerings. 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 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. For the year ended December 31, 2017, Corporate and unallocated expenses included $46.7 of $15.4 million and $151.7 million, respectively. |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities December 31, (in thousands) 2018 2017 Settlement deposits $ 23,651 $ 22,282 Settlement receivables 8,605 30,063 Other 7,574 5,781 Total other current assets $ 39,830 $ 58,126 December 31, (in thousands) 2018 2017 Settlement payables $ 31,605 $ 48,953 Accrued interest 8,407 7,291 Vendor financed licenses 3,551 1,862 Royalties payable 11,318 9,264 Other 33,173 35,534 Total other current liabilities $ 88,054 $ 102,904 |
Property and Equipment Estimated Useful Lives and Balances | As of December 31, 2018 and 2017, net property and equipment consisted of the following (in thousands): Useful Lives 2018 2017 Computer and office equipment 3 - 5 years $ 129,359 $ 123,804 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 32,096 32,364 Furniture and fixtures 7 years 12,500 12,158 Building and improvements 7 - 30 years 14,381 12,651 Land Non depreciable 1,785 1,785 190,121 182,762 Less: accumulated depreciation (117,392 ) (102,534 ) Property and equipment, net $ 72,729 $ 80,228 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Total Receivables | Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services and SaaS and PaaS revenues earned in the current period but billed in the following period and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment subsequent to invoicing. December 31, (in thousands) 2018 2017 Billed receivables $ 239,275 $ 240,137 Allowance for doubtful accounts (3,912 ) (4,799 ) Billed receivables, net $ 235,363 $ 235,338 Accrued receivables 336,858 27,507 Significant financing component (35,029 ) — Total accrued receivables, net 301,829 27,507 Less current accrued receivables 123,053 27,507 Less current significant financing component (10,234 ) — Total long-term accrued receivables, net $ 189,010 $ — Total receivables, net $ 537,192 $ 262,845 |
Activity in Allowance for Doubtful Accounts Receivable | The following reflects activity in the Company’s allowance for doubtful accounts receivable for the periods indicated (in thousands): Years Ended December 31, 2018 2017 2016 Balance, beginning of period $ (4,799 ) $ (3,873 ) $ (5,045 ) Provision increase (1,505 ) (2,086 ) (1,595 ) Amounts written off, net of recoveries 2,269 1,305 2,551 Foreign currency translation adjustments and other 123 (145 ) 216 Balance, end of period $ (3,912 ) $ (4,799 ) $ (3,873 ) |
Changes in Deferred Revenue | Changes in deferred revenue were as follows (in thousands): Deferred Revenue Balance, January 1, 2018 $ 145,344 Deferral of revenue 215,188 Recognition of deferred revenue (200,061 ) Foreign currency translation (4,336 ) Balance, December 31, 2018 $ 156,135 |
Financial Statement Effect of Applying ASC 606 | The financial statement line items affected by adoption of ASC 606 are as follows (in thousands): December 31, 2018 As Reported Without Application of ASC 606 Effect of Change Higher / (Lower) Assets Receivables, net of allowances $ 348,182 $ 272,409 $ 75,773 Recoverable income taxes 6,686 13,539 (6,853 ) Prepaid expenses 23,277 24,018 (741 ) Other current assets 39,830 38,717 1,113 Accrued receivables, net 189,010 — 189,010 Deferred income taxes, net 27,048 61,554 (34,506 ) Other noncurrent assets 52,145 41,590 10,555 Liabilities Deferred revenue 104,843 134,565 (29,722 ) Income taxes payable 5,239 5,472 (233 ) Other current liabilities 88,054 88,288 (234 ) Deferred income taxes, net 31,715 10,178 21,537 Stockholders’ equity Total stockholders’ equity 1,048,231 805,228 243,003 Year Ended December 31, 2018 As Reported Without Application of ASC 606 Effect of Change Higher / (Lower) Revenues Software as a service and platform as a service $ 433,025 $ 432,095 $ 930 License 280,556 281,355 (799 ) Maintenance 219,145 221,189 (2,044 ) Services 77,054 77,595 (541 ) Operating expenses Selling and marketing 117,881 110,417 7,464 Other income (expense) Interest income 11,142 831 10,311 Other, net (3,724 ) (3,274 ) (450 ) Income tax provision Income tax expense (benefit) 22,878 22,981 (103 ) |
Software and Other Intangible_2
Software and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount and Accumulated Amortization of Other Intangible Assets | The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands): December 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Customer relationships $ 297,991 $ (131,187 ) $ 166,804 $ 305,218 $ (116,677 ) $ 188,541 Trademarks and tradenames 16,348 (15,025 ) 1,323 16,646 (13,906 ) 2,740 $ 314,339 $ (146,212 ) $ 168,127 $ 321,864 $ (130,583 ) $ 191,281 |
Estimated Intangible Asset Amortization Expense in Future Fiscal Years | Based on capitalized intangible assets at December 31, 2018, and assuming no impairment of these intangible assets, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Amortization Other Intangible Assets Amortization 2019 $ 49,229 $ 21,825 2020 39,014 20,944 2021 25,382 20,451 2022 12,228 20,303 2023 6,349 20,000 Thereafter 5,026 64,604 Total $ 137,228 $ 168,127 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Maturities on Long-Term Debt Outstanding | Maturities on long-term debt outstanding at December 31, 2018, are as follows (in thousands): Fiscal year ending December 31, 2019 $ 23,747 2020 23,747 2021 31,662 2022 205,803 2023 — Thereafter 400,000 Total $ 684,959 |
Schedule of Total Debt | Total debt is comprised of the following (in thousands): December 31, 2018 December 31, 2017 Term credit facility $ 284,959 $ 394,250 Revolving credit facility — 2,000 5.750 400,000 — 6.375 — 300,000 Debt issuance costs (13,203 ) (10,521 ) Total debt 671,756 685,729 Less current portion of term credit facility 23,747 20,750 Less current portion of debt issuance costs (2,980 ) (2,964 ) Total long-term debt $ 650,989 $ 667,943 |
Corporate Restructuring and O_2
Corporate Restructuring and Other Organizational Changes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Components of Corporate Restructuring and Other Reorganization Activities from Acquisitions | The components of corporate restructuring and other reorganization activities from the acquisitions are included in the following table (in thousands): Facility Closures Balance, December 31, 2016 $ 4,559 Restructuring charges (adjustments) incurred, net 2,447 Amounts paid during the period (1,285 ) Foreign currency translation adjustments 224 Balance, December 31, 2017 $ 5,945 Amounts paid during the period (1,732 ) Foreign currency translation adjustments (86 ) Balance, December 31, 2018 $ 4,127 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted Average Share Amounts used to Compute Both Basic and Diluted Earnings Per Share | The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings per share (in thousands): Years Ended December 31, 2018 2017 2016 Weighted average shares outstanding: Basic weighted average shares outstanding 116,057 118,059 117,533 Add: Dilutive effect of stock options and RSUs 1,575 1,385 1,314 Diluted weighted average shares outstanding 117,632 119,444 118,847 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Data by Reportable Segment | The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands): Years Ended December 31 , 2018 2017 2016 Revenues ACI On Premise $ 576,755 $ 598,590 $ 591,252 ACI On Demand 433,025 425,601 399,033 Corporate and other — — 15,416 Total revenue $ 1,009,780 $ 1,024,191 $ 1,005,701 Segment Adjusted EBITDA ACI On Premise $ 323,902 $ 347,094 $ 312,188 ACI On Demand 12,015 (1,832 ) (2,624 ) Depreciation and amortization (97,350 ) (102,224 ) (103,454 ) Stock-based compensation expense (20,360 ) (13,683 ) (43,613 ) Corporate and unallocated expenses (92,296 ) (144,715 ) 58,633 Interest, net (30,388 ) (38,449 ) (39,654 ) Other, net (3,724 ) (2,619 ) 4,105 Income before income taxes $ 91,799 $ 43,572 $ 185,581 Depreciation and amortization ACI On Premise $ 11,634 $ 13,094 $ 14,581 ACI On Demand 31,541 34,171 29,385 Corporate 54,175 54,959 59,488 Total depreciation and amortization $ 97,350 $ 102,224 $ 103,454 Stock-based compensation expense ACI On Premise $ 4,348 $ 2,234 $ 6,894 ACI On Demand 4,338 2,230 6,876 Corporate 11,674 9,219 29,843 Total stock-based compensation expense $ 20,360 $ 13,683 $ 43,613 |
Schedule of Revenue by Primary Geographic Markets and Primary Solution Categories | The following is revenue by primary geographic market and primary solution category for the Company’s reportable segments for the periods indicated (in thousands): Year Ended December 31, 2018 Year Ended December 31, 2017 ACI On Premise ACI On Demand Total ACI On Premise ACI On Demand Total Primary Geographic Markets Americas - United States $ 131,382 $ 369,097 $ 500,479 $ 175,682 $ 365,553 $ 541,235 Americas - Other 61,969 9,577 71,546 72,802 9,429 82,231 EMEA 296,157 48,889 345,046 270,388 47,872 318,260 Asia Pacific 87,247 5,462 92,709 79,718 2,747 82,465 Total $ 576,755 $ 433,025 $ 1,009,780 $ 598,590 $ 425,601 $ 1,024,191 Primary Solution Categories Bill Payments $ — $ 275,526 $ 275,526 $ — $ 271,421 $ 271,421 Digital Channels 35,231 40,342 75,573 47,973 46,063 94,036 Merchant Payments 30,153 59,789 89,942 26,430 50,523 76,953 Payments Intelligence 42,647 46,497 89,144 33,203 47,123 80,326 Real-Time Payments 92,068 2,193 94,261 70,087 2,785 72,872 Retail Payments 376,656 8,678 385,334 420,897 7,686 428,583 Total $ 576,755 $ 433,025 $ 1,009,780 $ 598,590 $ 425,601 $ 1,024,191 Year Ended December 31, 2016 ACI On Premise ACI On Demand Other Corporate Total Primary Geographic Markets Americas - United States $ 164,058 $ 347,957 $ 15,416 $ 527,431 Americas - Other 110,463 6,255 — 116,718 EMEA 217,576 43,584 — 261,160 Asia Pacific 99,155 1,237 — 100,392 Total $ 591,252 $ 399,033 $ 15,416 $ 1,005,701 Primary Solution Categories Bill Payments $ — $ 255,540 $ — $ 255,540 Digital Channels 49,617 59,597 15,416 124,630 Merchant Payments 29,311 35,315 — 64,626 Payments Intelligence 24,665 42,984 — 67,649 Real-Time Payments 70,289 705 — 70,994 Retail Payments 417,370 4,892 — 422,262 Total $ 591,252 $ 399,033 $ 15,416 $ 1,005,701 |
Schedule of Long-lived Assets by Geographic Location | The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands): December 31 , 2018 2017 Long lived assets United States $ 811,435 $ 759,513 Other 717,495 613,556 $ 1,528,930 $ 1,373,069 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Stock Option Activity | A summary of stock option activity under the various stock incentive plans previously described is as follows: Stock Options Number of Shares Weighted- Average Exercise Price ($) Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-the-Money Options ($) Outstanding, December 31, 2017 6,162,717 $ 16.83 Granted 170,455 23.36 Exercised (1,379,704 ) 14.26 Forfeited (88,632 ) 18.56 Outstanding, December 31, 2018 4,864,836 $ 17.76 6.09 $ 48,214,530 Exercisable, December 31, 2018 3,416,715 $ 17.04 5.43 $ 36,309,807 |
Summary of Nonvested Restricted Share Awards | A summary of nonvested RSAs are as follows: Nonvested Restricted Share Awards Number of Shares Weighted- Average Grant Date Fair Value Nonvested at December 31, 2017 503,237 $ 20.63 Vested (231,473 ) 21.20 Forfeited (58,427 ) 19.92 Nonvested at December 31, 2018 213,337 $ 20.21 |
Black-Scholes Option-Pricing Model [Member] | |
Summary of Grant Date Fair Value Weighted-Average Assumptions, Options | The fair value of options granted in the respective fiscal years are estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, with the following weighted-average assumptions: Years Ended December 31, 2018 2017 2016 Expected life (years) 5.6 5.6 5.9 Risk-free interest rate 2.7 % 1.9 % 1.2 % Expected volatility 26.4 % 29.4 % 29.7 % Expected dividend yield — — — |
Monte Carlo Simulation Model [Member] | |
Summary of Grant Date Fair Value Weighted-Average Assumptions, Options | With respect to supplemental stock options granted that vest based on the achievement of certain market conditions, the grant date fair value was estimated using a Monte Carlo simulation model with the following weighted-average assumptions: Year Ended December 31, 2016 Expected life (years) 7.5 Risk-free interest rate 1.6 % Expected volatility 41.6 % Expected dividend yield — |
LTIP Performance Shares [Member] | |
Summary of Nonvested Performance Award Activity | A summary of the nonvested LTIP performance shares are as follows: Nonvested LTIP Performance Shares Number of Shares at Expected Attainment Weighted- Average Grant Date Fair Value Nonvested at December 31, 2017 1,125,035 $ 18.94 Forfeited (93,147 ) 19.26 Change in expected attainment for 2016 grants (491,191 ) 17.91 Nonvested at December 31, 2018 540,697 $ 19.83 |
Total Shareholder Return Awards (TSRs) [Member] | |
Summary of Nonvested Performance Award Activity | A summary of nonvested TSRs are as follows: Nonvested Total Shareholder Return Awards Number of Shares at Expected Attainment Weighted- Average Grant Date Fair Value Nonvested as of December 31, 2017 143,649 $ 24.37 Granted 541,214 31.31 Forfeited (42,855 ) 30.19 Change in attainment 76,923 24.37 Nonvested as of December 31, 2018 718,931 $ 29.25 |
Total Shareholder Return Awards (TSRs) [Member] | Monte Carlo Simulation Model [Member] | |
Summary of Nonvested Performance Award Activity | The grant date fair value of the TSRs was estimated using the following weighted-average assumptions: Years Ended December 31, 2018 2017 Expected life (years) 2.9 2.9 Interest rate 2.4 % 1.5 % Volatility 28.0 % 26.5 % Dividend Yield — — |
Performance-Based Restricted Share Awards (PBRSAs) [Member] | |
Summary of Nonvested Performance Award Activity | Nonvested Performance-Based Restricted Share Awards Number of Shares Weighted- Average Grant Date Fair Value Nonvested as of December 31, 2017 173,636 $ 24.41 Vested (173,636 ) 24.41 Nonvested as of December 31, 2018 — $ — |
Restricted Share Units (RSUs) [Member] | |
Summary of Nonvested Restricted Share Unit Activity | A summary of nonvested RSUs are as follows: Nonvested Restricted Share Units Number of Shares Weighted- Average Grant Date Fair Value Nonvested as of December 31, 2017 — $ — Granted 714,123 23.81 Vested (10,000 ) 25.72 Forfeited (53,078 ) 23.36 Nonvested as of December 31, 2018 651,045 $ 23.82 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes | For financial reporting purposes, income before income taxes includes the following components (in thousands): Years Ended December 31, 2018 2017 2016 United States $ 16,312 $ (42,863 ) $ 134,740 Foreign 75,487 86,435 50,841 Total $ 91,799 $ 43,572 $ 185,581 |
Income Tax Expense (Benefit) | The expense (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2018 2017 2016 Federal Current $ 6,545 $ 2,586 $ 14,108 Deferred (6,587 ) 19,212 19,034 Total (42 ) 21,798 33,142 State Current 4,441 (1,857 ) 12,565 Deferred (2,649 ) (1,324 ) (2,502 ) Total 1,792 (3,181 ) 10,063 Foreign Current 17,626 16,048 11,671 Deferred 3,502 3,772 1,170 Total 21,128 19,820 12,841 Total $ 22,878 $ 38,437 $ 56,046 |
Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations | Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands): Years Ended December 31, 2018 2017 2016 Tax expense at federal rate of 21% (35% pre-2018) $ 19,278 $ 15,250 $ 64,953 State income taxes, net of federal benefit 5,246 (2,238 ) 7,060 Change in valuation allowance 12,657 (1,884 ) (8,524 ) Foreign tax rate differential (4,796 ) (15,622 ) (11,830 ) Unrecognized tax benefit increase 1,262 3,007 1,045 Tax effect of foreign operations 8,546 5,532 5,988 Tax benefit of research & development (2,557 ) (1,904 ) (1,088 ) Transition tax (8,112 ) 20,867 — Revaluation of deferred tax balances (4,937 ) 14,953 — Performance-based compensation (4,541 ) 2,081 — Domestic production activities — (3,793 ) (700 ) Other 832 2,188 (858 ) Income tax provision $ 22,878 $ 38,437 $ 56,046 |
Summary of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands): December 31, 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 25,745 $ 38,419 Tax credits 43,838 37,305 Compensation 15,934 18,124 Deferred revenue 27,587 22,248 Research and development expense deferral 12,631 — Other 5,393 9,055 Gross deferred income tax assets 131,128 125,151 Less: valuation allowance (20,415 ) (7,808 ) Net deferred income tax assets $ 110,713 $ 117,343 Deferred income tax liabilities: Depreciation and amortization $ (60,872 ) $ (67,504 ) Deferred revenue (54,508 ) — Total deferred income tax liabilities (115,380 ) (67,504 ) Net deferred income taxes $ (4,667 ) $ 49,839 Deferred income taxes / liabilities included in the balance sheet are: Deferred income tax asset – noncurrent $ 27,048 $ 66,749 Deferred income tax liability – noncurrent (31,715 ) (16,910 ) Net deferred income taxes $ (4,667 ) $ 49,839 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands): 2018 2017 2016 Balance of unrecognized tax benefits at beginning of year $ 27,237 $ 24,278 $ 21,079 Increases for tax positions of prior years 315 2,478 58 Decreases for tax positions of prior years (61 ) (114 ) (361 ) Increases for tax positions established for the current period 1,185 1,677 5,185 Decreases for settlements with taxing authorities — (154 ) (167 ) Reductions resulting from lapse of applicable statute of limitation (115 ) (1,155 ) (1,310 ) Adjustment resulting from foreign currency translation (155 ) 227 (206 ) Balance of unrecognized tax benefits at end of year $ 28,406 $ 27,237 $ 24,278 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate Minimum Operating Lease Payments | Aggregate minimum operating lease payments under these agreements in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Operating Leases 2019 $ 16,925 2020 14,212 2021 10,538 2022 8,178 2023 6,529 Thereafter 21,196 Total minimum lease payments $ 77,578 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Activity within Accumulated Other Comprehensive Loss | Activity within accumulated other comprehensive loss for the three years ended December 31, 2018, 2017, and 2016, which consists of foreign currency translation adjustments, was as follows (in thousands): Accumulated Other Comprehensive Loss Balance at December 31, 2015 $ (71,576 ) Other comprehensive loss (22,524 ) Balance at December 31, 2016 (94,100 ) Other comprehensive income 16,744 Balance at December 31, 2017 (77,356 ) Other comprehensive loss (15,261 ) Balance at December 31, 2018 $ (92,617 ) |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, (in thousands, except per share amounts) 2018 2018 2018 2018 2018 Revenues: Software as a service and platform as a service $ 104,280 $ 113,600 $ 104,519 $ 110,626 $ 433,025 License 28,046 45,555 68,964 137,991 280,556 Maintenance 56,659 55,048 54,373 53,065 219,145 Services 20,325 20,792 17,669 18,268 77,054 Total revenues 209,310 234,995 245,525 319,950 1,009,780 Operating expenses: Cost of revenue (1) 107,336 116,261 102,473 104,281 430,351 Research and development 36,791 37,862 36,008 32,969 143,630 Selling and marketing 31,893 33,160 28,252 24,576 117,881 General and administrative 28,649 28,837 29,537 20,399 107,422 Depreciation and amortization 21,345 21,033 20,896 21,311 84,585 Total operating expenses 226,014 237,153 217,166 203,536 883,869 Operating income (loss) (16,704 ) (2,158 ) 28,359 116,414 125,911 Other income (expense): Interest expense (9,365 ) (9,717 ) (12,573 ) (9,875 ) (41,530 ) Interest income 2,744 2,742 2,763 2,893 11,142 Other, net (55 ) (1,677 ) (1,304 ) (688 ) (3,724 ) Total other income (expense) (6,676 ) (8,652 ) (11,114 ) (7,670 ) (34,112 ) Income (loss) before income taxes (23,380 ) (10,810 ) 17,245 108,744 91,799 Income tax expense (benefit) (3,952 ) 3,764 2,012 21,054 22,878 Net income (loss) $ (19,428 ) $ (14,574 ) $ 15,233 $ 87,690 $ 68,921 Earnings (loss) per share Basic $ (0.17 ) $ (0.13 ) $ 0.13 $ 0.76 $ 0.59 Diluted $ (0.17 ) $ (0.13 ) $ 0.13 $ 0.74 $ 0.59 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, (in thousands, except per share amounts) 2017 2017 2017 2017 2017 Revenues: Software as a service and platform as a service $ 99,447 $ 113,469 $ 99,761 $ 112,895 $ 425,572 License 59,381 54,180 50,017 129,546 293,124 Maintenance 54,471 56,009 56,349 55,242 222,071 Services 18,163 16,941 19,608 28,712 83,424 Total revenues 231,462 240,599 225,735 326,395 1,024,191 Operating expenses: Cost of revenue (1) 108,543 120,357 107,393 115,993 452,286 Research and development 37,285 34,969 33,935 30,732 136,921 Selling and marketing 27,137 28,817 25,236 26,695 107,885 General and administrative (2) 32,503 72,527 25,302 22,700 153,032 Depreciation and amortization 22,371 22,372 22,446 22,238 89,427 Total operating expenses 227,839 279,042 214,312 218,358 939,551 Operating income (loss) 3,623 (38,443 ) 11,423 108,037 84,640 Other income (expense): Interest expense (10,160 ) (10,664 ) (9,374 ) (8,815 ) (39,013 ) Interest income 106 150 165 143 564 Other, net 649 (1,766 ) (1,059 ) (443 ) (2,619 ) Total other income (expense) (9,405 ) (12,280 ) (10,268 ) (9,115 ) (41,068 ) Income (loss) before income taxes (5,782 ) (50,723 ) 1,155 98,922 43,572 Income tax expense (benefit) (4,174 ) (20,914 ) (2,233 ) 65,758 38,437 Net income (loss) $ (1,608 ) $ (29,809 ) $ 3,388 $ 33,164 $ 5,135 Earnings (loss) per share Basic $ (0.01 ) $ (0.25 ) $ 0.03 $ 0.28 $ 0.04 Diluted $ (0.01 ) $ (0.25 ) $ 0.03 $ 0.28 $ 0.04 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. (2) General and administrative expenses in the second quarter includes the BHMI judgment. |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Amount of off balance sheet settlement funds | $ 256,500,000 | $ 238,900,000 | |
Goodwill measurement period | 1 year | ||
Cumulative effect on retained earnings | $ 243,981,000 | $ (99,000) | |
Undiscounted minimum commitments under noncancelable operating leases | 77,578,000 | ||
Goodwill | 909,691,000 | $ 909,691,000 | |
ACI On Premise [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | 725,900,000 | ||
ACI On Demand [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | $ 183,800,000 | ||
Minimum [Member] | Internal-Use Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Maximum [Member] | Internal-Use Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 10 years | ||
Accounting Standards Update 2014-09 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative effect on retained earnings | $ 244,000,000 | ||
Accounting Standards Update 2016-02 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Undiscounted minimum commitments under noncancelable operating leases | $ 77,600,000 | ||
Expected operating lease liability and ROU asset ranges, description | Based on currently available information, the Company expects to recognize operating lease liabilities and ROU assets of $65 million – $75 million and $60 million – $70 million, respectively | ||
Accounting Standards Update 2016-02 [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Expected operating lease liability | $ 65,000,000 | ||
Expected right-of-use asset (ROU) | 60,000,000 | ||
Accounting Standards Update 2016-02 [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Expected operating lease liability | 75,000,000 | ||
Expected right-of-use asset (ROU) | $ 70,000,000 | ||
Other Intangible Assets [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Other Intangible Assets [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 20 years | ||
Level 2 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Stated interest rate of Senior Notes | 5.75% | 6.375% | |
Level 2 [Member] | Senior Notes [Member] | 5.750% Senior Notes due 2026 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Fair value of long-term debt | $ 395,000,000 | ||
Level 2 [Member] | Senior Notes [Member] | 6.375% Senior Note due 2020 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Fair value of long-term debt | $ 305,700,000 |
Nature of Business and Summar_5
Nature of Business and Summary of Significant Accounting Policies - Components of Other Current Assets and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Current Assets and Liabilities [Line Items] | ||
Other | $ 7,574 | $ 5,781 |
Total other current assets | 39,830 | 58,126 |
Settlement payables | 31,605 | 48,953 |
Accrued interest | 8,407 | 7,291 |
Vendor financed licenses | 3,551 | 1,862 |
Royalties payable | 11,318 | 9,264 |
Other | 33,173 | 35,534 |
Total other current liabilities | 88,054 | 102,904 |
Settlement deposits [Member] | ||
Other Current Assets and Liabilities [Line Items] | ||
Other assets settlement | 23,651 | 22,282 |
Settlement receivables [Member] | ||
Other Current Assets and Liabilities [Line Items] | ||
Other assets settlement | $ 8,605 | $ 30,063 |
Nature of Business and Summar_6
Nature of Business and Summary of Significant Accounting Policies - Net Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 190,121 | $ 182,762 |
Less: accumulated depreciation | (117,392) | (102,534) |
Property and equipment, net | 72,729 | 80,228 |
Computer and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 129,359 | 123,804 |
Computer and office equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Computer and office equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives, description | Lesser of useful life of improvement or remaining life of lease | |
Property and equipment, gross | $ 32,096 | 32,364 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Property and equipment, gross | $ 12,500 | 12,158 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,381 | 12,651 |
Building and improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Building and improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 30 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives, description | Non depreciable | |
Property and equipment, gross | $ 1,785 | $ 1,785 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue [Line Items] | |
Software licensing arrangements warranty, description | The Company's software license arrangements typically provide the customer with a standard 90-day assurance-type warranty. |
Software licensing arrangements warranty period | 90 days |
Initial post contract customer support period | 1 year |
Percentage of receivables as of December 31, 2018 or December 31, 2017 | No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2018 and 2017. |
Revenue allocated to remaining performance obligations | $ 666.4 |
Percentage of revenue allocated to remaining performance obligations to be recognized over the next 12 months | 48.00% |
Capitalized sales commissions minimum amortization period | 1 year |
Performance obligation satisfied in previous period | $ 29.6 |
Selling and Marketing [Member] | |
Revenue [Line Items] | |
Amortization of capitalized sales commissions | 8.4 |
Cost of Revenue [Member] | |
Revenue [Line Items] | |
Amortization of capitalized contract costs | 4.7 |
Other Current Assets [Member] | |
Revenue [Line Items] | |
Capitalized sales commissions | 1.3 |
Capitalized contract costs, current | 0.2 |
Other Noncurrent Assets [Member] | |
Revenue [Line Items] | |
Capitalized sales commissions | 11.7 |
Capitalized contract costs, noncurrent | $ 12.6 |
Revenue - Receivables and Conce
Revenue - Receivables and Concentration of Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | ||||
Billed receivables | $ 239,275 | $ 240,137 | ||
Allowance for doubtful accounts | (3,912) | (4,799) | $ (3,873) | $ (5,045) |
Billed receivables, net | 235,363 | 235,338 | ||
Accrued receivables | 336,858 | 27,507 | ||
Significant financing component | (35,029) | |||
Total accrued receivables, net | 301,829 | 27,507 | ||
Less current accrued receivables | 123,053 | 27,507 | ||
Less current significant financing component | (10,234) | |||
Total long-term accrued receivables, net | 189,010 | |||
Total receivables, net | $ 537,192 | $ 262,845 |
Revenue - Activity in Allowance
Revenue - Activity in Allowance for Doubtful Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||
Balance, beginning of period | $ (4,799) | $ (3,873) | $ (5,045) |
Provision increase | (1,505) | (2,086) | (1,595) |
Amounts written off, net of recoveries | 2,269 | 1,305 | 2,551 |
Foreign currency translation adjustments and other | 123 | (145) | 216 |
Balance, end of period | $ (3,912) | $ (4,799) | $ (3,873) |
Revenue - Changes in Deferred R
Revenue - Changes in Deferred Revenue (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Deferred Revenue Disclosure [Abstract] | |
Deferred revenue, beginning balance | $ 145,344 |
Deferral of revenue | 215,188 |
Recognition of deferred revenue | (200,061) |
Foreign currency translation | (4,336) |
Deferred revenue, ending balance | $ 156,135 |
Revenue - Financial Statement E
Revenue - Financial Statement Effect of Applying ASC 606 (Balance Sheet) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Receivables, net of allowances | $ 348,182 | $ 262,845 | ||
Recoverable income taxes | 6,686 | 7,921 | ||
Prepaid expenses | 23,277 | 23,219 | ||
Other current assets | 39,830 | 58,126 | ||
Accrued receivables, net | 189,010 | |||
Deferred income taxes, net | 27,048 | 66,749 | ||
Other noncurrent assets | 52,145 | 36,483 | ||
Liabilities | ||||
Deferred revenue | 104,843 | 107,543 | ||
Income taxes payable | 5,239 | 9,898 | ||
Other current liabilities | 88,054 | 102,904 | ||
Deferred income taxes, net | 31,715 | 16,910 | ||
Stockholders' equity | ||||
Total stockholders' equity | 1,048,231 | $ 764,597 | $ 754,917 | $ 654,400 |
Without Application of ASC 606 [Member] | ||||
Assets | ||||
Receivables, net of allowances | 272,409 | |||
Recoverable income taxes | 13,539 | |||
Prepaid expenses | 24,018 | |||
Other current assets | 38,717 | |||
Deferred income taxes, net | 61,554 | |||
Other noncurrent assets | 41,590 | |||
Liabilities | ||||
Deferred revenue | 134,565 | |||
Income taxes payable | 5,472 | |||
Other current liabilities | 88,288 | |||
Deferred income taxes, net | 10,178 | |||
Stockholders' equity | ||||
Total stockholders' equity | 805,228 | |||
Effect of Change - Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Assets | ||||
Receivables, net of allowances | 75,773 | |||
Recoverable income taxes | (6,853) | |||
Prepaid expenses | (741) | |||
Other current assets | 1,113 | |||
Accrued receivables, net | 189,010 | |||
Deferred income taxes, net | (34,506) | |||
Other noncurrent assets | 10,555 | |||
Liabilities | ||||
Deferred revenue | (29,722) | |||
Income taxes payable | (233) | |||
Other current liabilities | (234) | |||
Deferred income taxes, net | 21,537 | |||
Stockholders' equity | ||||
Total stockholders' equity | $ 243,003 |
Revenue - Financial Statement_2
Revenue - Financial Statement Effect of Applying ASC 606 (Income Statement) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||||||||
Total revenues | $ 319,950 | $ 245,525 | $ 234,995 | $ 209,310 | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 1,009,780 | $ 1,024,191 | $ 1,005,701 |
Operating expenses | |||||||||||
Selling and marketing | 24,576 | 28,252 | 33,160 | 31,893 | 26,695 | 25,236 | 28,817 | 27,137 | 117,881 | 107,885 | 118,082 |
Other income (expense) | |||||||||||
Interest income | 2,893 | 2,763 | 2,742 | 2,744 | 143 | 165 | 150 | 106 | 11,142 | 564 | 530 |
Other, net | (688) | (1,304) | (1,677) | (55) | (443) | (1,059) | (1,766) | 649 | (3,724) | (2,619) | 4,105 |
Income tax provision | |||||||||||
Income tax expense (benefit) | 21,054 | 2,012 | 3,764 | (3,952) | 65,758 | (2,233) | (20,914) | (4,174) | 22,878 | 38,437 | 56,046 |
Software as a service and platform as a service [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | 110,626 | 104,519 | 113,600 | 104,280 | 112,895 | 99,761 | 113,469 | 99,447 | 433,025 | 425,572 | 411,289 |
License [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | 137,991 | 68,964 | 45,555 | 28,046 | 129,546 | 50,017 | 54,180 | 59,381 | 280,556 | 293,124 | 273,466 |
Maintenance [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | $ 53,065 | $ 54,373 | $ 55,048 | $ 56,659 | $ 55,242 | $ 56,349 | $ 56,009 | $ 54,471 | 219,145 | $ 222,071 | $ 233,476 |
Services [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | 77,054 | ||||||||||
Without Application of ASC 606 [Member] | |||||||||||
Operating expenses | |||||||||||
Selling and marketing | 110,417 | ||||||||||
Other income (expense) | |||||||||||
Interest income | 831 | ||||||||||
Other, net | (3,274) | ||||||||||
Income tax provision | |||||||||||
Income tax expense (benefit) | 22,981 | ||||||||||
Without Application of ASC 606 [Member] | Software as a service and platform as a service [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | 432,095 | ||||||||||
Without Application of ASC 606 [Member] | License [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | 281,355 | ||||||||||
Without Application of ASC 606 [Member] | Maintenance [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | 221,189 | ||||||||||
Without Application of ASC 606 [Member] | Services [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | 77,595 | ||||||||||
Effect of Change - Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||
Operating expenses | |||||||||||
Selling and marketing | 7,464 | ||||||||||
Other income (expense) | |||||||||||
Interest income | 10,311 | ||||||||||
Other, net | (450) | ||||||||||
Income tax provision | |||||||||||
Income tax expense (benefit) | (103) | ||||||||||
Effect of Change - Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | Software as a service and platform as a service [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | 930 | ||||||||||
Effect of Change - Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | License [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | (799) | ||||||||||
Effect of Change - Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | Maintenance [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | (2,044) | ||||||||||
Effect of Change - Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | Services [Member] | |||||||||||
Revenues | |||||||||||
Total revenues | $ (541) |
Divestiture - Additional Inform
Divestiture - Additional Information (Detail) - Community Financial Services Products [Member] - Disposal Group, Not Discontinued Operations [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Mar. 03, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amount of consideration related to disposal | $ 200 | |
Net after-tax gain on the sale of assets | $ 93.4 | |
Adjustment to Gain Loss on Sale of Assets [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net after-tax gain on the sale of assets | $ 0.5 |
Software and Other Intangible_3
Software and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | $ 137,228 | $ 155,386 | |
Software, accumulated amortization | 252,200 | 230,700 | |
Other intangible assets amortization expense | 19,000 | 19,400 | $ 21,200 |
Software Marketed for Resale [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | 27,500 | 40,900 | |
Software, amortization expense | $ 12,800 | 12,800 | 13,900 |
Software Marketed for Resale [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Software Marketed for Resale [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 | $ 109,700 | 114,500 | |
Software, amortization expense | $ 41,700 | $ 45,200 | $ 45,700 |
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 | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 314,339 | $ 321,864 |
Accumulated Amortization | (146,212) | (130,583) |
Net Balance | 168,127 | 191,281 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 297,991 | 305,218 |
Accumulated Amortization | (131,187) | (116,677) |
Net Balance | 166,804 | 188,541 |
Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,348 | 16,646 |
Accumulated Amortization | (15,025) | (13,906) |
Net Balance | $ 1,323 | $ 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 | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Balance | $ 168,127 | $ 191,281 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | 49,229 | |
2,020 | 39,014 | |
2,021 | 25,382 | |
2,022 | 12,228 | |
2,023 | 6,349 | |
Thereafter | 5,026 | |
Net Balance | 137,228 | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | 21,825 | |
2,020 | 20,944 | |
2,021 | 20,451 | |
2,022 | 20,303 | |
2,023 | 20,000 | |
Thereafter | 64,604 | |
Net Balance | $ 168,127 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 21, 2018 | Feb. 24, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||
Proceeds from revolving credit facility | $ 109,000 | $ 67,000 | $ 76,000 | ||
Proceeds from term portion of credit agreement | 415,000 | ||||
Credit facility, interest rate description | Based on the calculation of the applicable consolidated total leverage ratio | ||||
Credit facility, interest rate margin above federal fund rate | 1.00% | ||||
Credit facility, interest rate margin above one-month LIBOR rate | 1.00% | ||||
Credit facility, borrowing rate | 4.27% | ||||
Debt Issuance cost | $ 13,203 | 10,521 | |||
Debt Issuance cost paid | $ 7,319 | $ 5,340 | $ 655 | ||
Credit Facility maturity date | Feb. 24, 2022 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused borrowings | $ 500,000 | ||||
Term Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Term Credit Facility amount outstanding | 285,000 | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes amount outstanding | 400,000 | ||||
Senior Notes 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes amount outstanding | $ 400,000 | ||||
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 | ||||
Debt Issuance cost paid | $ 7,300 | ||||
Maturity date of senior notes | Aug. 15, 2026 | ||||
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 | ||||
Credit facilities, maturity | 5 years | ||||
Proceeds from revolving credit facility | $ 12,000 | ||||
Credit Agreement [Member] | Term Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facilities, maximum borrowing capacity | $ 415,000 | ||||
Credit facilities, maturity | 5 years | ||||
Proceeds from term portion of credit agreement | $ 415,000 | ||||
Multi-year License Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Financed internally-used software | $ 11,900 | ||||
Annual payments due date | through June 2023 | ||||
Other current liabilities | $ 2,500 | ||||
Other non-current liabilities | 6,900 | ||||
Outstanding other Long-term Debt | $ 9,400 | ||||
Parent Company and Domestic Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of capital stock pledged as collateral | 100.00% | ||||
Foreign Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of capital stock pledged as collateral | 65.00% |
Debt - Maturities on Long-Term
Debt - Maturities on Long-Term Debt Outstanding (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 23,747 |
2,020 | 23,747 |
2,021 | 31,662 |
2,022 | 205,803 |
2,023 | 0 |
Thereafter | 400,000 |
Total | $ 684,959 |
Debt - Carrying Value of Debt (
Debt - Carrying Value of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (13,203) | $ (10,521) |
Total debt | 671,756 | 685,729 |
Current portion of long-term debt | 20,767 | 17,786 |
Less current portion of debt issuance costs | (2,980) | (2,964) |
Total long-term debt | 650,989 | 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 | 284,959 | 394,250 |
Current portion of long-term debt | $ 23,747 | 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) | 12 Months Ended |
Dec. 31, 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 |
Corporate Restructuring and O_3
Corporate Restructuring and Other Organizational Changes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Facility Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 5,945 | $ 4,559 | $ 4,127 |
Facility Closures [Member] | Other Current Liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,600 | ||
Facility Closures [Member] | Other Noncurrent Liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 2,500 | ||
General and Administrative Expense [Member] | Leased Facilities in Edison, NJ; Chantilly, VA; Charlotte, NC; Parsippany, NJ; and Waltham, MA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | $ 2,400 | ||
General and Administrative Expense [Member] | Leased Facilities in Watford, UK; Providence, RI; Chantilly, VA; and West Hills, CA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | $ 5,000 |
Corporate Restructuring and O_4
Corporate Restructuring and Other Organizational Changes - Components of Corporate Restructuring and Other Reorganization Activities from Recent Acquisitions (Detail) - Facility Closures [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ 5,945 | $ 4,559 |
Restructuring charges (adjustments) incurred, net | 2,447 | |
Amounts paid during the period | (1,732) | (1,285) |
Foreign currency translation adjustments | (86) | 224 |
Ending balance | $ 4,127 | $ 5,945 |
Common Stock and Treasury Sto_2
Common Stock and Treasury Stock - Additional Information (Detail) - USD ($) | 12 Months Ended | 76 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Feb. 28, 2018 | |
Stock authorized to purchase under stock repurchase program | $ 200,000,000 | ||||
Repurchase of common stock, shares | 2,346,427 | 1,653,573 | 3,020,926 | 44,129,393 | |
Repurchase of common stock, value | $ 54,527,000 | $ 37,387,000 | $ 60,089,000 | $ 547,800,000 | |
Number shares issued pursuant to stock option exercises | 1,379,704 | ||||
Stock Options [Member] | |||||
Number shares issued pursuant to stock option exercises | 1,379,704 | 1,204,559 | 797,140 | ||
Restricted Share Awards (RSAs) [Member] | |||||
Stock issued during the period restricted share awards | 560,174 | 148,322 | |||
Retention RSAs [Member] | |||||
Stock issued during the period restricted share awards | 470,029 | ||||
Restricted Share Units [Member] | |||||
Stock issued during the period restricted share awards | 10,000 | ||||
Maximum [Member] | |||||
Remaining value of shares authorized for purchase under the stock repurchase program | $ 176,600,000 | $ 176,600,000 | $ 176,600,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding | 116,057 | 118,059 | 117,533 |
Add: Dilutive effect of stock options and RSUs | 1,575 | 1,385 | 1,314 |
Diluted weighted average shares outstanding | 117,632 | 119,444 | 118,847 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Options to purchase shares and contingently issuable shares excluded from diluted earnings per share computation | 2,200,000 | 3,900,000 | 6,100,000 |
Common stock outstanding | 116,123,361 | 117,096,731 |
Other, Net - Additional Informa
Other, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Foreign currency transaction gains (losses) | $ (3.7) | $ (2.6) | $ 4.1 |
Segment Information Selected Se
Segment Information Selected Segment Financial Data, Revenues and Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,009,780 | $ 1,024,191 | $ 1,005,701 | ||||||||
Depreciation and amortization expense | 97,350 | 102,224 | 103,454 | ||||||||
Stock-based compensation expense | 20,360 | 13,683 | 43,613 | ||||||||
Corporate and unallocated expenses | (92,296) | (144,715) | 58,633 | ||||||||
Interest, net | (30,388) | (38,449) | (39,654) | ||||||||
Other, net | $ (688) | $ (1,304) | $ (1,677) | $ (55) | $ (443) | $ (1,059) | $ (1,766) | $ 649 | (3,724) | (2,619) | 4,105 |
Income before income taxes | $ 108,744 | $ 17,245 | $ (10,810) | $ (23,380) | $ 98,922 | $ 1,155 | $ (50,723) | $ (5,782) | 91,799 | 43,572 | 185,581 |
ACI On Premise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 576,755 | 598,590 | 591,252 | ||||||||
ACI On Demand [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 433,025 | 425,601 | 399,033 | ||||||||
Operating Segments [Member] | ACI On Premise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 576,755 | 598,590 | 591,252 | ||||||||
Segment Adjusted EBITDA | 323,902 | 347,094 | 312,188 | ||||||||
Depreciation and amortization expense | 11,634 | 13,094 | 14,581 | ||||||||
Stock-based compensation expense | 4,348 | 2,234 | 6,894 | ||||||||
Operating Segments [Member] | ACI On Demand [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 433,025 | 425,601 | 399,033 | ||||||||
Segment Adjusted EBITDA | 12,015 | (1,832) | (2,624) | ||||||||
Depreciation and amortization expense | 31,541 | 34,171 | 29,385 | ||||||||
Stock-based compensation expense | 4,338 | 2,230 | 6,876 | ||||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,416 | ||||||||||
Depreciation and amortization expense | 54,175 | 54,959 | 59,488 | ||||||||
Stock-based compensation expense | $ 11,674 | $ 9,219 | $ 29,843 |
Segment Information Selected _2
Segment Information Selected Segment Financial Data, Revenues and Long lived Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,009,780 | $ 1,024,191 | $ 1,005,701 |
Long lived assets | |||
Long lived assets | 1,528,930 | 1,373,069 | |
Bill Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 275,526 | 271,421 | 255,540 |
Digital Channels [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 75,573 | 94,036 | 124,630 |
Merchant Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 89,942 | 76,953 | 64,626 |
Payment Intelligence [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 89,144 | 80,326 | 67,649 |
Real Time Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 94,261 | 72,872 | 70,994 |
Retail Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 385,334 | 428,583 | 422,262 |
ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 576,755 | 598,590 | 591,252 |
ACI On Premise [Member] | Digital Channels [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 35,231 | 47,973 | 49,617 |
ACI On Premise [Member] | Merchant Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 30,153 | 26,430 | 29,311 |
ACI On Premise [Member] | Payment Intelligence [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 42,647 | 33,203 | 24,665 |
ACI On Premise [Member] | Real Time Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 92,068 | 70,087 | 70,289 |
ACI On Premise [Member] | Retail Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 376,656 | 420,897 | 417,370 |
ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 433,025 | 425,601 | 399,033 |
ACI On Demand [Member] | Bill Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 275,526 | 271,421 | 255,540 |
ACI On Demand [Member] | Digital Channels [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 40,342 | 46,063 | 59,597 |
ACI On Demand [Member] | Merchant Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 59,789 | 50,523 | 35,315 |
ACI On Demand [Member] | Payment Intelligence [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 46,497 | 47,123 | 42,984 |
ACI On Demand [Member] | Real Time Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,193 | 2,785 | 705 |
ACI On Demand [Member] | Retail Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 8,678 | 7,686 | 4,892 |
Corporate and Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 15,416 | ||
Corporate and Other [Member] | Digital Channels [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 15,416 | ||
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 500,479 | 541,235 | 527,431 |
Long lived assets | |||
Long lived assets | 811,435 | 759,513 | |
United States [Member] | ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 131,382 | 175,682 | 164,058 |
United States [Member] | ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 369,097 | 365,553 | 347,957 |
United States [Member] | Corporate and Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 15,416 | ||
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 71,546 | 82,231 | 116,718 |
Long lived assets | |||
Long lived assets | 717,495 | 613,556 | |
Other [Member] | ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 61,969 | 72,802 | 110,463 |
Other [Member] | ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 9,577 | 9,429 | 6,255 |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 345,046 | 318,260 | 261,160 |
EMEA [Member] | ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 296,157 | 270,388 | 217,576 |
EMEA [Member] | ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 48,889 | 47,872 | 43,584 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 92,709 | 82,465 | 100,392 |
Asia Pacific [Member] | ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 87,247 | 79,718 | 99,155 |
Asia Pacific [Member] | ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 5,462 | $ 2,747 | $ 1,237 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 319,950 | $ 245,525 | $ 234,995 | $ 209,310 | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 1,009,780 | $ 1,024,191 | $ 1,005,701 |
Operating income | $ 116,414 | $ 28,359 | $ (2,158) | $ (16,704) | $ 108,037 | $ 11,423 | $ (38,443) | $ 3,623 | $ 125,911 | 84,640 | 221,130 |
BHMI judgment and related fees | 48,100 | ||||||||||
General and Administrative Expense [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
BHMI judgment and related fees | $ 46,700 | ||||||||||
Community Financial Services Products [Member] | Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,400 | ||||||||||
Operating income | $ 151,700 | ||||||||||
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 years ended December 31, 2018, 2017, and 2016. | ||||||||||
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 accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2018, 2017, and 2016. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) | Sep. 15, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 14, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued under ESPP | 148,520 | 158,194 | 188,453 | ||||||
Stock-based compensation expense | $ 20,360,000 | $ 13,683,000 | $ 43,613,000 | ||||||
Awards granted requisite service period | 3 years | ||||||||
Incentive plan, weighted-average grant date fair value of stock options granted | $ 7.03 | $ 6.24 | $ 5.59 | ||||||
Incentive plan, total intrinsic value of stock options exercised | $ 15,800,000 | $ 13,400,000 | $ 6,800,000 | ||||||
Stock-based compensation expenses tax benefits | $ 0 | 1,700,000 | 14,300,000 | ||||||
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% | ||||||||
Discount offered pursuant to ESPP, percentage | 15.00% | ||||||||
Stock-based compensation expense | $ 500,000 | $ 500,000 | $ 500,000 | ||||||
Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation costs | $ 1,900,000 | $ 1,900,000 | |||||||
Unrecognized compensation costs, weighted-average recognition periods | 10 months 24 days | ||||||||
Tranche One [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation, trading price percentage | 133.00% | ||||||||
Consecutive trading days | 20 days | ||||||||
Share-based compensation, non-vested grant date fair value | $ 7.46 | ||||||||
Tranche Two [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation, trading price percentage | 167.00% | ||||||||
Consecutive trading days | 20 days | ||||||||
Share-based compensation, non-vested grant date fair value | $ 7.06 | ||||||||
Tranche Three [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation, trading price percentage | 200.00% | ||||||||
Consecutive trading days | 20 days | ||||||||
Share-based compensation, non-vested grant date fair value | $ 6.50 | ||||||||
Restricted Share Awards (RSAs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted requisite service period | 3 years | 3 years | |||||||
Award vesting period | 1 year | ||||||||
Number of shares vested | 231,473 | ||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 41,973 | ||||||||
Award vesting percentage for each year | 33.00% | 33.00% | 33.00% | ||||||
Unrecognized compensation costs | 2,500,000 | $ 2,500,000 | |||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 2 months 12 days | ||||||||
Performance-Based Restricted Share Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 1 year 3 months 18 days | ||||||||
Number of shares vested | 173,636 | ||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 64,699 | ||||||||
Threshold level percentage for share awards | 150.00% | 150.00% | |||||||
Performance-Based Restricted Share Awards [Member] | Tranche One [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 90.40% | ||||||||
Restricted share awards, vesting increments on anniversary dates of grants | 33.00% | ||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Two [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted share awards, vesting increments on anniversary dates of grants | 33.00% | ||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Two [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 98.00% | ||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Two [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 100.00% | ||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Three [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted share awards, vesting increments on anniversary dates of grants | 33.00% | ||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Three [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 98.00% | ||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Three [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 100.00% | ||||||||
Restricted Share Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares vested | 10,000 | ||||||||
Unrecognized compensation costs | $ 10,800,000 | $ 10,800,000 | |||||||
Unrecognized compensation costs, weighted-average recognition periods | 2 years 1 month 6 days | ||||||||
Restricted share awards, vesting increments on anniversary dates of grants | 33.00% | ||||||||
2015 Grant [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 0.00% | ||||||||
2015 Grant [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 100.00% | ||||||||
2016 Grant [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 65.00% | ||||||||
2016 Grant [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 0.00% | ||||||||
2016 Grant [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 65.00% | ||||||||
2017 Grant [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 100.00% | ||||||||
2016 Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares of common stock reserved for issuance | 8,000,000 | 8,000,000 | |||||||
2016 Incentive Plan [Member] | Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units and Other Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of shares of Common Stock a participant may receive | 3,000,000 | ||||||||
2016 Incentive Plan [Member] | Performance Shares or Performance Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum aggregate value on the date of grant | $ 9,000,000 | ||||||||
2005 Stock Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares of common stock reserved for issuance | 23,250,000 | ||||||||
LTIP Performance Shares [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation costs | $ 3,800,000 | $ 3,800,000 | |||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 2 months 12 days | ||||||||
Total Shareholder Return [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock based compensation awards, award payout range, maximum | 200.00% | 200.00% | 200.00% | 200.00% | 200.00% | ||||
Stock based compensation awards, award payout range, minimum | 0.00% | 0.00% | 0.00% | ||||||
Unrecognized compensation costs | $ 13,200,000 | $ 13,200,000 | |||||||
Unrecognized compensation costs, weighted-average recognition periods | 2 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, Beginning Balance | shares | 6,162,717 |
Granted | shares | 170,455 |
Exercised | shares | (1,379,704) |
Forfeited | shares | (88,632) |
Outstanding, Ending Balance | shares | 4,864,836 |
Number of Shares Exercisable, Ending Balance | shares | 3,416,715 |
Weighted-Average Exercise Price | |
Beginning Balance | $ / shares | $ 16.83 |
Granted | $ / shares | 23.36 |
Exercised | $ / shares | 14.26 |
Forfeited | $ / shares | 18.56 |
Ending Balance | $ / shares | 17.76 |
Weighted-Average Exercise Price Exercisable, Ending Balance | $ / shares | $ 17.04 |
Weighted-Average Remaining Contractual Term (Years) | |
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period | 6 years 1 month 2 days |
Weighted-Average Remaining Contractual Term (Years), Exercisable as of end of period | 5 years 5 months 5 days |
Aggregate Intrinsic Value of In-the-Money Options | |
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $ | $ 48,214,530 |
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $ | $ 36,309,807 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Grant Date Fair Value Weighted-Average Assumptions - Options (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Black-Scholes Option-Pricing Model [Member] | Stock Option [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 | 5 years 10 months 24 days |
Risk-free interest rate | 2.70% | 1.90% | 1.20% |
Expected volatility | 26.40% | 29.40% | 29.70% |
Monte Carlo Simulation Model [Member] | Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 7 years 6 months | ||
Risk-free interest rate | 1.60% | ||
Expected volatility | 41.60% |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Nonvested LTIP Performance Shares (Detail) - LTIP Performance Shares [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Shares at Expected Attainment | |
Beginning Balance | shares | 1,125,035 |
Forfeited | shares | (93,147) |
Change in expected attainment for 2016 grants | shares | (491,191) |
Ending Balance | shares | 540,697 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 18.94 |
Forfeited | $ / shares | 19.26 |
Change in expected attainment for 2016 grants | $ / shares | 17.91 |
Ending Balance | $ / shares | $ 19.83 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Summary of Nonvested RSAs (Detail) - Restricted Share Awards (RSAs) [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Shares | |
Beginning Balance | shares | 503,237 |
Vested | shares | (231,473) |
Forfeited | shares | (58,427) |
Ending Balance | shares | 213,337 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 20.63 |
Vested | $ / shares | 21.20 |
Forfeited | $ / shares | 19.92 |
Ending Balance | $ / shares | $ 20.21 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of Nonvested PBRSAs (Detail) - Performance-Based Restricted Share Awards [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Shares | |
Beginning Balance | shares | 173,636 |
Vested | shares | (173,636) |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 24.41 |
Vested | $ / shares | $ 24.41 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - TSR Grant Date Fair Value Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend Yield | 0.00% | ||
Total Shareholder Return [Member] | Monte Carlo Simulation Model [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 TSRs (Detail) - Total Shareholder Return [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Shares at Expected Attainment | |
Beginning Balance | shares | 143,649 |
Granted | shares | 541,214 |
Forfeited | shares | (42,855) |
Change in attainment | shares | 76,923 |
Ending Balance | shares | 718,931 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 24.37 |
Granted | $ / shares | 31.31 |
Forfeited | $ / shares | 30.19 |
Change in attainment | $ / shares | 24.37 |
Ending Balance | $ / shares | $ 29.25 |
Stock-Based Compensation Plan_9
Stock-Based Compensation Plans - Summary of Nonvested RSUs (Detail) - Restricted Share Units [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Shares | |
Beginning Balance | shares | 0 |
Granted | shares | 714,123 |
Vested | shares | (10,000) |
Forfeited | shares | (53,078) |
Ending Balance | shares | 651,045 |
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 | $ 23.82 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, percentage | 75.00% | ||
Defined contribution plan, contribution | $ 6,400,000 | $ 5,300,000 | $ 5,500,000 |
Employer 401(k) matching contribution to employee, maximum amount | $ 5,000 | ||
Defined contribution plan, employer matching percentage on every deferred dollar | 100.00% | ||
EMEA Group | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, contribution | $ 1,600,000 | $ 1,600,000 | $ 1,700,000 |
Maximum [Member] | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employer 401(k) matching contribution to employee percentage | 4.00% | ||
Employees under Age 50 | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, amount | $ 18,500 | ||
Employees Aged 50 or Older | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, amount | $ 24,500 | ||
Employed at December 1, 2000 | EMEA Group | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation minimum | 8.50% | ||
Employees aged over 55 years | EMEA Group | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation maximum | 15.50% | ||
Employed subsequent to December 1, 2000 | Maximum [Member] | EMEA Group | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation | 10.00% | ||
Employed subsequent to December 1, 2000 | Minimum [Member] | EMEA Group | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation | 6.00% | ||
Second Eligible Participant Contributions [Member] | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employer 401(k) matching contribution to employee percentage | 4.00% | ||
Defined contribution plan, employer matching percentage on every deferred dollar | 50.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||
Tax Cuts and Jobs Act of 2017, provisional tax charge | $ 15,000 | |||
Tax Cuts and Jobs Act of 2017, provisional tax charge, subsequent adjustment | $ 4,900 | |||
Increase in deferred tax assets valuation allowance | 12,700 | |||
Unrecognized tax benefit | 28,406 | 27,237 | $ 24,278 | $ 21,079 |
Net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate | 27,500 | 25,900 | ||
Decrease in unrecognized tax benefits due to the expiration of statutes of limitations and the settlement of various audits | 3,900 | |||
Accrued interest and penalties related to income tax liabilities | 1,200 | 1,200 | ||
Aggregate amount of interest and penalties expense (benefit) recorded in the statement of operations | $ 0 | (800) | $ (200) | |
Tax Cuts and Jobs Act of 2017, one-time transition tax on certain unremitted foreign earnings | $ 20,900 | |||
Effective income tax rate | 21.00% | 35.00% | ||
Deferred tax assets, valuation allowance | $ 20,415 | $ 7,808 | ||
Tax expense for current impact of GILTI provisions | 2,100 | |||
Tax Cuts and Jobs Act of 2017, one-time transition tax on certain unremitted foreign earnings, subsequent adjustment | 8,100 | |||
Other Noncurrent Liabilities [Member] | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefit | $ 22,600 | $ 21,500 | ||
Foreign Entities | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets operating loss carry forwards, expiration period | 17 years | |||
Deferred tax assets operating loss carry forwards subject to expiration | $ 34,600 | |||
Tax credits expiration year | 2,022 | |||
Deferred tax assets operating loss carry forwards subject to expiration | $ 32,500 | |||
Valuation allowance against the tax benefit associated with NOLs | 30,200 | |||
Valuation allowance against tax credit | $ 15,500 | |||
Foreign Entities | Earliest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Tax years open for audit | 2,003 | |||
Foreign Entities | Latest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Tax years open for audit | 2,017 | |||
Other Foreign Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets operating loss carry forwards, expiration period | 7 years | |||
Deferred tax assets operating loss carry forwards subject to expiration | $ 1,500 | |||
Valuation allowance against tax credit | 1,100 | |||
Tax credit carryforwards with indefinite life | $ 1,100 | |||
Domestic Federal | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets operating loss carry forwards expiration year | 2,019 | |||
Tax credits expiration year | 2,019 | |||
General business tax credit carryforwards | $ 12,500 | |||
Deferred tax assets operating loss carry forwards subject to expiration | 72,400 | |||
Valuation allowance against the tax benefit associated with NOLs | $ 1,000 | |||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets operating loss carry forwards expiration year | 2,019 | |||
Tax credits expiration year | 2,022 | |||
General business tax credit carryforwards | $ 700 | |||
Deferred tax assets, valuation allowance | 1,100 | |||
Deferred tax assets operating loss carry forwards subject to expiration | 1,800 | |||
Valuation allowance against the tax benefit associated with NOLs | $ 1,000 | |||
India Tax Authority | ||||
Income Taxes [Line Items] | ||||
Income tax examination description | The Company's Indian income tax returns covering fiscal years 2003, 2005, and 2010 through 2013 are under audit by the Indian tax authority. |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 16,312 | $ (42,863) | $ 134,740 | ||||||||
Foreign | 75,487 | 86,435 | 50,841 | ||||||||
Income before income taxes | $ 108,744 | $ 17,245 | $ (10,810) | $ (23,380) | $ 98,922 | $ 1,155 | $ (50,723) | $ (5,782) | $ 91,799 | $ 43,572 | $ 185,581 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal | |||||||||||
Current | $ 6,545 | $ 2,586 | $ 14,108 | ||||||||
Deferred | (6,587) | 19,212 | 19,034 | ||||||||
Total | (42) | 21,798 | 33,142 | ||||||||
State | |||||||||||
Current | 4,441 | (1,857) | 12,565 | ||||||||
Deferred | (2,649) | (1,324) | (2,502) | ||||||||
Total | 1,792 | (3,181) | 10,063 | ||||||||
Foreign | |||||||||||
Current | 17,626 | 16,048 | 11,671 | ||||||||
Deferred | 3,502 | 3,772 | 1,170 | ||||||||
Total | 21,128 | 19,820 | 12,841 | ||||||||
Income tax provision | $ 21,054 | $ 2,012 | $ 3,764 | $ (3,952) | $ 65,758 | $ (2,233) | $ (20,914) | $ (4,174) | $ 22,878 | $ 38,437 | $ 56,046 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Tax expense at federal rate of 21% (35% pre-2018) | $ 19,278 | $ 15,250 | $ 64,953 | ||||||||
State income taxes, net of federal benefit | 5,246 | (2,238) | 7,060 | ||||||||
Change in valuation allowance | 12,657 | (1,884) | (8,524) | ||||||||
Foreign tax rate differential | (4,796) | (15,622) | (11,830) | ||||||||
Unrecognized tax benefit increase | 1,262 | 3,007 | 1,045 | ||||||||
Tax effect of foreign operations | 8,546 | 5,532 | 5,988 | ||||||||
Tax benefit of research & development | (2,557) | (1,904) | (1,088) | ||||||||
Transition tax | (8,112) | 20,867 | |||||||||
Revaluation of deferred tax balances | (4,937) | 14,953 | |||||||||
Performance-based compensation | (4,541) | 2,081 | |||||||||
Domestic production activities | (3,793) | (700) | |||||||||
Other | 832 | 2,188 | (858) | ||||||||
Income tax provision | $ 21,054 | $ 2,012 | $ 3,764 | $ (3,952) | $ 65,758 | $ (2,233) | $ (20,914) | $ (4,174) | $ 22,878 | $ 38,437 | $ 56,046 |
Income Taxes - Summary of Dif_2
Income Taxes - Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 21.00% | 35.00% | 35.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities Result from Differences in Timing of Recognition of Certain Income and Expense Items for Tax and Financial Accounting Purposes (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 25,745 | $ 38,419 |
Tax credits | 43,838 | 37,305 |
Compensation | 15,934 | 18,124 |
Deferred revenue | 27,587 | 22,248 |
Research and development expense deferral | 12,631 | |
Other | 5,393 | 9,055 |
Gross deferred income tax assets | 131,128 | 125,151 |
Less: valuation allowance | (20,415) | (7,808) |
Net deferred income tax assets | 110,713 | 117,343 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (60,872) | (67,504) |
Deferred revenue | (54,508) | |
Total deferred income tax liabilities | (115,380) | (67,504) |
Net deferred income taxes | 49,839 | |
Net deferred income taxes | (4,667) | |
Deferred income taxes / liabilities included in the balance sheet are: | ||
Deferred income tax asset - noncurrent | 27,048 | 66,749 |
Deferred income tax liability - noncurrent | (31,715) | (16,910) |
Net deferred income taxes | $ 49,839 | |
Net deferred income taxes | $ (4,667) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Balance of unrecognized tax benefits at beginning of year | $ 27,237 | $ 24,278 | $ 21,079 |
Increases for tax positions of prior years | 315 | 2,478 | 58 |
Decreases for tax positions of prior years | (61) | (114) | (361) |
Increases for tax positions established for the current period | 1,185 | 1,677 | 5,185 |
Decreases for settlements with taxing authorities | (154) | (167) | |
Reductions resulting from lapse of applicable statute of limitation | (115) | (1,155) | (1,310) |
Adjustment resulting from foreign currency translation | (155) | 227 | (206) |
Balance of unrecognized tax benefits at end of year | $ 28,406 | $ 27,237 | $ 24,278 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 23, 2015 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments And Contingencies [Line Items] | |||||
Total operating lease expense | $ 24.6 | $ 24.1 | $ 25.3 | ||
Loss Contingency, name of plaintiff | Baldwin Hackett & Meeks, Inc. | ||||
Loss contingency, damages sought, value | $ 43.8 | ||||
Loss contingency, damages awarded, value | $ 43.8 | ||||
BHMI judgment and related fees | 48.1 | ||||
Litigation settlement | 2.7 | ||||
General and Administrative Expense [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
BHMI judgment and related fees | $ 46.7 | ||||
Interest Expense [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
BHMI judgment and related fees | $ 1.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Aggregate Minimum Operating Lease Payments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases | |
2,019 | $ 16,925 |
2,020 | 14,212 |
2,021 | 10,538 |
2,022 | 8,178 |
2,023 | 6,529 |
Thereafter | 21,196 |
Total minimum lease payments | $ 77,578 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Activity within Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 764,597 | $ 754,917 | $ 654,400 |
Other comprehensive income (loss) | (15,261) | 16,744 | (22,524) |
Ending balance | 1,048,231 | 764,597 | 754,917 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (77,356) | (94,100) | (71,576) |
Other comprehensive income (loss) | (15,261) | 16,744 | (22,524) |
Ending balance | $ (92,617) | $ (77,356) | $ (94,100) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||
Revenues: | |||||||||||||||||
Total revenues | $ 319,950 | $ 245,525 | $ 234,995 | $ 209,310 | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 1,009,780 | $ 1,024,191 | $ 1,005,701 | ||||||
Operating expenses: | |||||||||||||||||
Cost of revenue | [1] | 104,281 | 102,473 | 116,261 | 107,336 | 115,993 | 107,393 | 120,357 | 108,543 | 430,351 | 452,286 | 444,914 | |||||
Research and development | 32,969 | 36,008 | 37,862 | 36,791 | 30,732 | 33,935 | 34,969 | 37,285 | 143,630 | 136,921 | 169,900 | ||||||
Selling and marketing | 24,576 | 28,252 | 33,160 | 31,893 | 26,695 | 25,236 | 28,817 | 27,137 | 117,881 | 107,885 | 118,082 | ||||||
General and administrative | 20,399 | 29,537 | 28,837 | 28,649 | 22,700 | [2] | 25,302 | [2] | 72,527 | [2] | 32,503 | [2] | 107,422 | 153,032 | [2] | 113,617 | |
Depreciation and amortization | 21,311 | 20,896 | 21,033 | 21,345 | 22,238 | 22,446 | 22,372 | 22,371 | 84,585 | 89,427 | 89,521 | ||||||
Total operating expenses | 203,536 | 217,166 | 237,153 | 226,014 | 218,358 | 214,312 | 279,042 | 227,839 | 883,869 | 939,551 | |||||||
Operating income (loss) | 116,414 | 28,359 | (2,158) | (16,704) | 108,037 | 11,423 | (38,443) | 3,623 | 125,911 | 84,640 | 221,130 | ||||||
Other income (expense): | |||||||||||||||||
Interest expense | (9,875) | (12,573) | (9,717) | (9,365) | (8,815) | (9,374) | (10,664) | (10,160) | (41,530) | (39,013) | (40,184) | ||||||
Interest income | 2,893 | 2,763 | 2,742 | 2,744 | 143 | 165 | 150 | 106 | 11,142 | 564 | 530 | ||||||
Other, net | (688) | (1,304) | (1,677) | (55) | (443) | (1,059) | (1,766) | 649 | (3,724) | (2,619) | 4,105 | ||||||
Total other income (expense) | (7,670) | (11,114) | (8,652) | (6,676) | (9,115) | (10,268) | (12,280) | (9,405) | (34,112) | (41,068) | (35,549) | ||||||
Income (loss) before income taxes | 108,744 | 17,245 | (10,810) | (23,380) | 98,922 | 1,155 | (50,723) | (5,782) | 91,799 | 43,572 | 185,581 | ||||||
Income tax expense (benefit) | 21,054 | 2,012 | 3,764 | (3,952) | 65,758 | (2,233) | (20,914) | (4,174) | 22,878 | 38,437 | 56,046 | ||||||
Net income (loss) | $ 87,690 | $ 15,233 | $ (14,574) | $ (19,428) | $ 33,164 | $ 3,388 | $ (29,809) | $ (1,608) | $ 68,921 | $ 5,135 | $ 129,535 | ||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ 0.76 | $ 0.13 | $ (0.13) | $ (0.17) | $ 0.28 | $ 0.03 | $ (0.25) | $ (0.01) | $ 0.59 | $ 0.04 | $ 1.10 | ||||||
Diluted | $ 0.74 | $ 0.13 | $ (0.13) | $ (0.17) | $ 0.28 | $ 0.03 | $ (0.25) | $ (0.01) | $ 0.59 | $ 0.04 | $ 1.09 | ||||||
Software as a service and platform as a service [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Total revenues | $ 110,626 | $ 104,519 | $ 113,600 | $ 104,280 | $ 112,895 | $ 99,761 | $ 113,469 | $ 99,447 | $ 433,025 | $ 425,572 | $ 411,289 | ||||||
License [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Total revenues | 137,991 | 68,964 | 45,555 | 28,046 | 129,546 | 50,017 | 54,180 | 59,381 | 280,556 | 293,124 | 273,466 | ||||||
Maintenance [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Total revenues | 53,065 | 54,373 | 55,048 | 56,659 | 55,242 | 56,349 | 56,009 | 54,471 | 219,145 | 222,071 | 233,476 | ||||||
Services [Member] | |||||||||||||||||
Revenues: | |||||||||||||||||
Total revenues | $ 18,268 | $ 17,669 | $ 20,792 | $ 20,325 | $ 28,712 | $ 19,608 | $ 16,941 | $ 18,163 | $ 77,054 | $ 83,424 | $ 87,470 | ||||||
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. | ||||||||||||||||
[2] | General and administrative expenses in the second quarter includes the BHMI judgment. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Feb. 28, 2019USD ($) | |
Bank of America [Member] | |
Subsequent Event [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 500 |
SpeedPay [Member] | |
Subsequent Event [Line Items] | |
Acquisition purchase price | $ 750 |