XML 17 R19.htm IDEA: XBRL DOCUMENT
v3.19.3

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2019
Segment Reporting [Abstract] |
Segment Information | 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 (“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, 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 for SaaS offerings, or in a multi-tenant environment for 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. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude stock-based compensation, and net other income (expense). Corporate and unallocated expenses consist of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, and other costs that are not considered when management evaluates segment performance. The following is selected financial data for the Company’s reportable segments (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Revenue |  |  |  |  |  |  |
ACI On Premise | $ | 161,949 |  |  | $ | 141,006 |  |  | $ | 383,075 |  |  | $ | 367,431 |
ACI On Demand | 192,952 |  |  | 104,519 |  |  | 475,299 |  |  | 322,399 |
Total revenue | $ | 354,901 |  |  | $ | 245,525 |  |  | $ | 858,374 |  |  | $ | 689,830 |
Segment Adjusted EBITDA |  |  |  |  |  |  |
ACI On Premise | $ | 99,553 |  |  | $ | 77,819 |  |  | $ | 184,890 |  |  | $ | 171,477 |
ACI On Demand | 18,561 |  |  | 3,270 |  |  | 35,639 |  |  | (4,327 | )
Depreciation and amortization | (33,913 | ) |  | (23,545 | ) |  | (88,543 | ) |  | (72,889 | )
Stock-based compensation expense | (9,371 | ) |  | (6,575 | ) |  | (30,328 | ) |  | (20,642 | )
Corporate and unallocated expenses | (19,512 | ) |  | (22,610 | ) |  | (80,315 | ) |  | (64,122 | )
Interest, net | (15,999 | ) |  | (9,810 | ) |  | (36,906 | ) |  | (23,406 | )
Other, net | (2,369 | ) |  | (1,304 | ) |  | (2,879 | ) |  | (3,036 | )
Income (loss) before income taxes | $ | 36,950 |  |  | $ | 17,245 |  |  | $ | (18,442 | ) |  | $ | (16,945 | )
Depreciation and amortization |  |  |  |  |  |  |
ACI On Premise | $ | 2,963 |  |  | $ | 2,772 |  |  | $ | 9,012 |  |  | $ | 8,596 |
ACI On Demand | 9,059 |  |  | 7,906 |  |  | 25,110 |  |  | 23,468 |
Corporate | 21,891 |  |  | 12,867 |  |  | 54,421 |  |  | 40,825 |
Total depreciation and amortization | $ | 33,913 |  |  | $ | 23,545 |  |  | $ | 88,543 |  |  | $ | 72,889 |
Stock-based compensation expense |  |  |  |  |  |  |
ACI On Premise | $ | 2,227 |  |  | $ | 1,806 |  |  | $ | 6,234 |  |  | $ | 5,111 |
ACI On Demand | 2,389 |  |  | 1,802 |  |  | 6,554 |  |  | 5,099 |
Corporate | 4,755 |  |  | 2,967 |  |  | 17,540 |  |  | 10,432 |
Total stock-based compensation expense | $ | 9,371 |  |  | $ | 6,575 |  |  | $ | 30,328 |  |  | $ | 20,642 |
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 (in thousands):
| Three Months Ended September 30, 2019 |  | Three Months Ended September 30, 2018
| ACI On Premise |  | ACI On Demand |  | Total |  | ACI On Premise |  | ACI On Demand |  | Total
Primary Geographic Markets |  |  |  |  |  |  |  |  |  |  |
Americas - United States | $ | 53,986 |  |  | $ | 176,172 |  |  | $ | 230,158 |  |  | $ | 26,022 |  |  | $ | 88,401 |  |  | $ | 114,423 |
Americas - Other | 22,879 |  |  | 2,268 |  |  | 25,147 |  |  | 16,709 |  |  | 2,409 |  |  | 19,118 |
EMEA | 72,662 |  |  | 12,191 |  |  | 84,853 |  |  | 80,738 |  |  | 12,385 |  |  | 93,123 |
Asia Pacific | 12,422 |  |  | 2,321 |  |  | 14,743 |  |  | 17,537 |  |  | 1,324 |  |  | 18,861 |
Total | $ | 161,949 |  |  | $ | 192,952 |  |  | $ | 354,901 |  |  | $ | 141,006 |  |  | $ | 104,519 |  |  | $ | 245,525 |
Primary Solution Categories |  |  |  |  |  |  |  |  |  |  |
Bill Payments | $ | — |  |  | $ | 154,285 |  |  | $ | 154,285 |  |  | $ | — |  |  | $ | 64,134 |  |  | $ | 64,134 |
Digital Channels | 6,791 |  |  | 8,480 |  |  | 15,271 |  |  | 7,499 |  |  | 9,327 |  |  | 16,826 |
Merchant Payments | 4,739 |  |  | 18,534 |  |  | 23,273 |  |  | 6,272 |  |  | 19,481 |  |  | 25,753 |
Payments Intelligence | 13,623 |  |  | 8,759 |  |  | 22,382 |  |  | 7,203 |  |  | 9,639 |  |  | 16,842 |
Real-Time Payments | 19,191 |  |  | 1,032 |  |  | 20,223 |  |  | 23,704 |  |  | 540 |  |  | 24,244 |
Retail Payments | 117,605 |  |  | 1,862 |  |  | 119,467 |  |  | 96,328 |  |  | 1,398 |  |  | 97,726 |
Total | $ | 161,949 |  |  | $ | 192,952 |  |  | $ | 354,901 |  |  | $ | 141,006 |  |  | $ | 104,519 |  |  | $ | 245,525 |
| Nine Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2018
| ACI On Premise |  | ACI On Demand |  | Total |  | ACI On Premise |  | ACI On Demand |  | Total
Primary Geographic Markets |  |  |  |  |  |  |  |  |  |  |
Americas - United States | $ | 116,104 |  |  | $ | 425,033 |  |  | $ | 541,137 |  |  | $ | 82,280 |  |  | $ | 275,171 |  |  | $ | 357,451 |
Americas - Other | 46,237 |  |  | 7,118 |  |  | 53,355 |  |  | 45,269 |  |  | 7,077 |  |  | 52,346 |
EMEA | 167,268 |  |  | 36,751 |  |  | 204,019 |  |  | 181,913 |  |  | 36,819 |  |  | 218,732 |
Asia Pacific | 53,466 |  |  | 6,397 |  |  | 59,863 |  |  | 57,969 |  |  | 3,332 |  |  | 61,301 |
Total | $ | 383,075 |  |  | $ | 475,299 |  |  | $ | 858,374 |  |  | $ | 367,431 |  |  | $ | 322,399 |  |  | $ | 689,830 |
Primary Solution Categories |  |  |  |  |  |  |  |  |  |  |
Bill Payments | $ | — |  |  | $ | 348,592 |  |  | $ | 348,592 |  |  | $ | — |  |  | $ | 204,673 |  |  | $ | 204,673 |
Digital Channels | 24,960 |  |  | 36,280 |  |  | 61,240 |  |  | 27,779 |  |  | 30,281 |  |  | 58,060 |
Merchant Payments | 17,398 |  |  | 55,815 |  |  | 73,213 |  |  | 16,655 |  |  | 48,439 |  |  | 65,094 |
Payments Intelligence | 27,164 |  |  | 26,614 |  |  | 53,778 |  |  | 25,532 |  |  | 30,508 |  |  | 56,040 |
Real-Time Payments | 55,714 |  |  | 2,557 |  |  | 58,271 |  |  | 53,086 |  |  | 1,474 |  |  | 54,560 |
Retail Payments | 257,839 |  |  | 5,441 |  |  | 263,280 |  |  | 244,379 |  |  | 7,024 |  |  | 251,403 |
Total | $ | 383,075 |  |  | $ | 475,299 |  |  | $ | 858,374 |  |  | $ | 367,431 |  |  | $ | 322,399 |  |  | $ | 689,830 |
The following is the Company’s long-lived assets by geographic location (in thousands):
| September 30, 2019 |  | December 31, 2018
Long-lived Assets |  |  |
United States | $ | 1,527,747 |  |  | $ | 811,435 |
Other | 745,149 |  |  | 717,495 |
Total | $ | 2,272,896 |  |  | $ | 1,528,930 |
No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and nine months ended September 30, 2019 and 2018. Aggregate revenues attributable to our customers in Canada accounted for 11.8% of the Company's consolidated revenues during the three months ended September 30, 2018. No other country outside the United States and Canada accounted for more than 10% of the Company’s consolidated revenues during the three months ended September 30, 2019 and 2018. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the nine months ended September 30, 2019 and 2018.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration