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Segment Information | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company reports financial performance based on its segments, ACI On Demand and ACI On Premise, 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 Demand serves the needs of banks, merchants, and billers 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. ACI On Premise serves customers who manage their software on site or through a third-party public cloud environment. 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. 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 for the periods indicated (in thousands):
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Revenue |  |  |  |  |  |  |
ACI On Demand | $ | 180,573 |  |  | $ | 172,499 |  |  | $ | 373,523 |  |  | $ | 282,347 |
ACI On Premise | 119,337 |  |  | 125,119 |  |  | 217,872 |  |  | 221,126 |
Total revenue | $ | 299,910 |  |  | $ | 297,618 |  |  | $ | 591,395 |  |  | $ | 503,473 |
Segment Adjusted EBITDA |  |  |  |  |  |  |
ACI On Demand | $ | 33,071 |  |  | $ | 17,340 |  |  | $ | 56,192 |  |  | $ | 17,078 |
ACI On Premise | 59,093 |  |  | 57,069 |  |  | 90,002 |  |  | 85,337 |
Depreciation and amortization | (35,692) |  |  | (29,778) |  |  | (69,514) |  |  | (54,630) |
Stock-based compensation expense | (7,932) |  |  | (14,372) |  |  | (14,882) |  |  | (20,957) |
Corporate and unallocated expenses | (19,402) |  |  | (36,141) |  |  | (43,943) |  |  | (60,803) |
Interest, net | (11,188) |  |  | (12,326) |  |  | (25,459) |  |  | (20,907) |
Other, net | 2,041 |  |  | 1,402 |  |  | (7,717) |  |  | (510) |
Income (loss) before income taxes | $ | 19,991 |  |  | $ | (16,806) |  |  | $ | (15,321) |  |  | $ | (55,392) |
Depreciation and amortization |  |  |  |  |  |  |
ACI On Demand | $ | 10,852 |  |  | $ | 8,489 |  |  | $ | 20,184 |  |  | $ | 16,051 |
ACI On Premise | 3,431 |  |  | 3,019 |  |  | 6,537 |  |  | 6,049 |
Corporate | 21,409 |  |  | 18,270 |  |  | 42,793 |  |  | 32,530 |
Total depreciation and amortization | $ | 35,692 |  |  | $ | 29,778 |  |  | $ | 69,514 |  |  | $ | 54,630 |
Stock-based compensation expense |  |  |  |  |  |  |
ACI On Demand | $ | 2,273 |  |  | $ | 2,214 |  |  | $ | 4,299 |  |  | $ | 4,165 |
ACI On Premise | 2,279 |  |  | 2,051 |  |  | 4,309 |  |  | 4,007 |
Corporate | 3,380 |  |  | 10,107 |  |  | 6,274 |  |  | 12,785 |
Total stock-based compensation expense | $ | 7,932 |  |  | $ | 14,372 |  |  | $ | 14,882 |  |  | $ | 20,957 |
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):
| Three Months Ended June 30, 2020 |  |  |  |  |  | Three Months Ended June 30, 2019 |  |  |  |
| ACI On Demand |  | ACI On Premise |  | Total |  | ACI On Demand |  | ACI On Premise |  | Total
Primary Geographic Markets |  |  |  |  |  |  |  |  |  |  |
Americas - United States | $ | 158,720 |  |  | $ | 48,661 |  |  | $ | 207,381 |  |  | $ | 155,825 |  |  | $ | 35,696 |  |  | $ | 191,521 |
Americas - Other | 2,419 |  |  | 1,250 |  |  | 3,669 |  |  | 2,107 |  |  | 12,413 |  |  | 14,520 |
EMEA | 16,524 |  |  | 54,426 |  |  | 70,950 |  |  | 12,492 |  |  | 52,155 |  |  | 64,647 |
Asia Pacific | 2,910 |  |  | 15,000 |  |  | 17,910 |  |  | 2,075 |  |  | 24,855 |  |  | 26,930 |
Total | $ | 180,573 |  |  | $ | 119,337 |  |  | $ | 299,910 |  |  | $ | 172,499 |  |  | $ | 125,119 |  |  | $ | 297,618 |
Primary Solution Categories |  |  |  |  |  |  |  |  |  |  |
Bill Payments | $ | 137,122 |  |  | $ | — |  |  | $ | 137,122 |  |  | $ | 125,339 |  |  | $ | — |  |  | $ | 125,339 |
Digital Channels | 7,328 |  |  | 7,771 |  |  | 15,099 |  |  | 18,011 |  |  | 9,444 |  |  | 27,455 |
Merchant Payments | 21,413 |  |  | 5,596 |  |  | 27,009 |  |  | 17,942 |  |  | 7,637 |  |  | 25,579 |
Payments Intelligence | 11,852 |  |  | 3,942 |  |  | 15,794 |  |  | 8,874 |  |  | 6,504 |  |  | 15,378 |
Real-Time Payments | 1,004 |  |  | 24,952 |  |  | 25,956 |  |  | 907 |  |  | 21,809 |  |  | 22,716 |
Retail Payments | 1,854 |  |  | 77,076 |  |  | 78,930 |  |  | 1,426 |  |  | 79,725 |  |  | 81,151 |
Total | $ | 180,573 |  |  | $ | 119,337 |  |  | $ | 299,910 |  |  | $ | 172,499 |  |  | $ | 125,119 |  |  | $ | 297,618 |
| Six Months Ended June 30, 2020 |  |  |  |  |  | Six Months Ended June 30, 2019 |  |  |  |
| ACI On Demand |  | ACI On Premise |  | Total |  | ACI On Demand |  | ACI On Premise |  | Total
Primary Geographic Markets |  |  |  |  |  |  |  |  |  |  |
Americas - United States | $ | 334,374 |  |  | $ | 77,800 |  |  | $ | 412,174 |  |  | $ | 248,861 |  |  | $ | 62,118 |  |  | $ | 310,979 |
Americas - Other | 5,652 |  |  | 19,191 |  |  | 24,843 |  |  | 4,850 |  |  | 23,358 |  |  | 28,208 |
EMEA | 27,442 |  |  | 83,381 |  |  | 110,823 |  |  | 24,560 |  |  | 94,606 |  |  | 119,166 |
Asia Pacific | 6,055 |  |  | 37,500 |  |  | 43,555 |  |  | 4,076 |  |  | 41,044 |  |  | 45,120 |
Total | $ | 373,523 |  |  | $ | 217,872 |  |  | $ | 591,395 |  |  | $ | 282,347 |  |  | $ | 221,126 |  |  | $ | 503,473 |
Primary Solution Categories |  |  |  |  |  |  |  |  |  |  |
Bill Payments | $ | 290,808 |  |  | $ | — |  |  | $ | 290,808 |  |  | $ | 194,306 |  |  | $ | — |  |  | $ | 194,306 |
Digital Channels | 15,721 |  |  | 15,334 |  |  | 31,055 |  |  | 27,799 |  |  | 18,169 |  |  | 45,968 |
Merchant Payments | 40,427 |  |  | 9,702 |  |  | 50,129 |  |  | 37,281 |  |  | 12,659 |  |  | 49,940 |
Payments Intelligence | 20,865 |  |  | 8,055 |  |  | 28,920 |  |  | 17,855 |  |  | 13,541 |  |  | 31,396 |
Real-Time Payments | 2,001 |  |  | 42,251 |  |  | 44,252 |  |  | 1,525 |  |  | 36,524 |  |  | 38,049 |
Retail Payments | 3,701 |  |  | 142,530 |  |  | 146,231 |  |  | 3,581 |  |  | 140,233 |  |  | 143,814 |
Total | $ | 373,523 |  |  | $ | 217,872 |  |  | $ | 591,395 |  |  | $ | 282,347 |  |  | $ | 221,126 |  |  | $ | 503,473 |
The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
| June 30, 2020 |  | December 31, 2019
Long-lived Assets |  |  |
United States | $ | 1,494,545 |  |  | $ | 1,526,046 |
Other | 731,324 |  |  | 759,501 |
Total | $ | 2,225,869 |  |  | $ | 2,285,547 |
No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and six months ended June 30, 2020 and 2019. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three and six months ended June 30, 2020 and 2019.

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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