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Segment Information
 12 Months Ended
Dec. 31, 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):
Years Ended December 31,
202020192018
Revenues
ACI On Demand
$769,180 $678,960 $433,025 
ACI On Premise
525,142 579,334 576,755 
Total revenue
$1,294,322 $1,258,294 $1,009,780 
Segment Adjusted EBITDA
ACI On Demand
$149,610 $66,501 $12,015 
ACI On Premise
290,310 321,305 323,902 
Depreciation and amortization
(140,316)(122,569)(97,350)
Stock-based compensation expense
(29,602)(36,763)(20,360)
Corporate and unallocated expenses
(125,258)(104,718)(92,296)
Interest, net
(45,002)(52,066)(30,388)
Other, net
(1,116)520 (3,724)
Income before income taxes$98,626 $72,210 $91,799 
Depreciation and amortization
ACI On Demand
$40,594 $34,395 $31,541 
ACI On Premise
13,207 11,992 11,634 
Corporate
86,515 76,182 54,175 
Total depreciation and amortization
$140,316 $122,569 $97,350 
Stock-based compensation expense
ACI On Demand
$8,852 $7,995 $4,338 
ACI On Premise
8,872 7,651 4,348 
Corporate
11,878 21,117 11,674 
Total stock-based compensation expense
$29,602 $36,763 $20,360 

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, 2020Year Ended December 31, 2019
ACI
On Demand
ACI
On Premise
Total
ACI
On Demand
ACI
On Premise
Total
Primary Geographic Markets
Americas - United States
$687,923 $142,588 $830,511 $609,160 $172,660 $781,820 
Americas - Other
11,561 61,533 73,094 9,350 68,020 77,370 
EMEA
58,857 234,369 293,226 50,629 251,035 301,664 
Asia Pacific
10,839 86,652 97,491 9,821 87,619 97,440 
Total
$769,180 $525,142 $1,294,322 $678,960 $579,334 $1,258,294 
Primary Solution Categories
Bill Payments
$586,047 $— $586,047 $510,300 $— $510,300 
Digital Channels
46,269 29,438 75,707 44,731 32,980 77,711 
Merchant Payments
84,997 23,730 108,727 77,204 25,693 102,897 
Payments Intelligence
40,495 21,570 62,065 36,019 33,790 69,809 
Real-Time Payments
3,902 77,158 81,060 3,456 97,153 100,609 
Issuing and Acquiring7,470 373,246 380,716 7,250 389,718 396,968 
Total
$769,180 $525,142 $1,294,322 $678,960 $579,334 $1,258,294 
Year Ended December 31, 2018
ACI
On Demand
ACI
On Premise
Total
Primary Geographic Markets
Americas - United States
$369,097 $131,382 $500,479 
Americas - Other
9,577 61,969 71,546 
EMEA
48,889 296,157 345,046 
Asia Pacific
5,462 87,247 92,709 
Total
$433,025 $576,755 $1,009,780 
Primary Solution Categories
Bill Payments
$275,526 $— $275,526 
Digital Channels
40,342 35,231 75,573 
Merchant Payments
64,956 30,447 95,403 
Payments Intelligence
41,330 42,353 83,683 
Real-Time Payments
2,193 92,068 94,261 
Issuing and Acquiring8,678 376,656 385,334 
Total
$433,025 $576,755 $1,009,780 
The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
December 31,
20202019
Long-lived Assets
United States
$1,423,862 $1,526,046 
Other
750,651 759,501 
Total
$2,174,513 $2,285,547 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2020, 2019, and 2018. No other country outside the United States accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2020, 2019, and 2018.