XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2021
Segment Reporting [Abstract] |
Segment Information | Segment Information In January 2021, the Company made a change in organizational structure to align with its strategic direction. As a result of this change, the Company reassessed its segment reporting structure due to changes in how the Company's chief operating decision maker ("CODM") assesses the Company's performance and allocates resources. Beginning in the first quarter of 2021, the Company reports financial performance based on its new operating segments, Banks, Merchants, and Billers, and analyzes Segment Adjusted EBITDA as a measure of segment profitability. The Company’s Chief Executive Officer is also 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. No operating segments have been aggregated to form the reportable segments. Banks. ACI provides payment solutions to large and mid-size banks globally for retail banking, real time, digital, and other payment services. These solutions transform banks’ complex payment environments to speed time to market, reduce costs, and deliver a consistent experience to customers across channels while enabling them to prevent and rapidly react to fraudulent activity. In addition, they enable banks to meet the requirements of different real-time payments schemes and to quickly create differentiated products to meet consumer, business, and merchant demands. Merchants. ACI’s support of merchants globally includes Tier 1 and Tier 2 merchants, online-only merchants and the payment service providers, independent selling organizations, value-added resellers, and acquirers who service them. These customers operate in a variety of verticals, including general merchandise, grocery, hospitality, dining, transportation, and others. The Company's solutions provide merchants with a secure, omni-channel payments platform that gives them independence from third-party payment providers. They also offer secure solutions to online-only merchants that provide consumers with a convenient and seamless way to shop. Billers. Within the billers segment, ACI provides electronic bill presentment and payment (“EBPP”) services to companies operating in the consumer finance, insurance, healthcare, higher education, utility, government, and mortgage categories. The solutions enable these customers to support a wide range of payment options and provide a convenient consumer payments experience that drives consumer loyalty and increases revenue. Revenue is attributed to the reportable segments based upon 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 projects, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities. 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 net other income (expense). Corporate and unallocated expenses includes global facilities and information technology costs and long-term product roadmap expenses in addition to corporate overhead costs that are not allocated to reportable segments. The overhead costs relate to human resources, finance, legal, accounting, and merger and acquisition activity. These costs along with depreciation and amortization and stock-based compensation 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,
| 2021 |  | 2020 |  | 2019
Revenues |  |  |  |  |
Banks | $ | 625,125 |  |  | $ | 558,498 |  |  | $ | 590,961 |
Merchants | 152,988 |  |  | 149,342 |  |  | 156,452 |
Billers | 592,485 |  |  | 586,482 |  |  | 510,881 |
Total revenue | $ | 1,370,598 |  |  | $ | 1,294,322 |  |  | $ | 1,258,294 |
Segment Adjusted EBITDA |  |  |  |  |
Banks | $ | 372,949 |  |  | $ | 331,445 |  |  | $ | 343,844 |
Merchants | 54,266 |  |  | 53,383 |  |  | 60,820 |
Billers | 129,048 |  |  | 135,144 |  |  | 77,295 |
Depreciation and amortization | (133,393) |  |  | (140,316) |  |  | (122,569) |
Stock-based compensation expense | (27,242) |  |  | (29,602) |  |  | (36,763) |
Corporate and unallocated expenses | (185,731) |  |  | (205,310) |  |  | (198,871) |
Interest, net | (33,538) |  |  | (45,002) |  |  | (52,066) |
Other, net | (1,294) |  |  | (1,116) |  |  | 520 |
Income before income taxes | $ | 175,065 |  |  | $ | 98,626 |  |  | $ | 72,210 |
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 solution category for the Company’s reportable segments for the periods indicated (in thousands):
| Year Ended December 31, 2021
| Banks |  | Merchants |  | Billers |  | Total
Primary Solution Categories |  |  |  |  |  |  |
Bill Payments | $ | — |  |  | $ | — |  |  | $ | 592,485 |  |  | $ | 592,485 |
Digital Business Banking | 60,398 |  |  | — |  |  | — |  |  | 60,398 |
Merchant Payments | — |  |  | 152,988 |  |  | — |  |  | 152,988 |
Fraud Management | 43,704 |  |  | — |  |  | — |  |  | 43,704 |
Real-Time Payments | 77,922 |  |  | — |  |  | — |  |  | 77,922 |
Issuing and Acquiring | 443,101 |  |  | — |  |  | — |  |  | 443,101 |
Total | $ | 625,125 |  |  | $ | 152,988 |  |  | $ | 592,485 |  |  | $ | 1,370,598 |
| Year Ended December 31, 2020
| Banks |  | Merchants |  | Billers |  | Total
Primary Solution Categories |  |  |  |  |  |  |
Bill Payments | $ | — |  |  | $ | — |  |  | $ | 586,482 |  |  | $ | 586,482 |
Digital Business Banking | 75,475 |  |  | — |  |  | — |  |  | 75,475 |
Merchant Payments | — |  |  | 149,342 |  |  | — |  |  | 149,342 |
Fraud Management | 32,942 |  |  | — |  |  | — |  |  | 32,942 |
Real-Time Payments | 80,654 |  |  | — |  |  | — |  |  | 80,654 |
Issuing and Acquiring | 369,427 |  |  | — |  |  | — |  |  | 369,427 |
Total | $ | 558,498 |  |  | $ | 149,342 |  |  | $ | 586,482 |  |  | $ | 1,294,322 |
| Year Ended December 31, 2019
| Banks |  | Merchants |  | Billers |  | Total
Primary Solution Categories |  |  |  |  |  |  |
Bill Payments | $ | — |  |  | $ | — |  |  | $ | 510,881 |  |  | $ | 510,881 |
Digital Business Banking | 77,319 |  |  | — |  |  | — |  |  | 77,319 |
Merchant Payments | — |  |  | 156,452 |  |  | — |  |  | 156,452 |
Fraud Management | 42,010 |  |  | — |  |  | — |  |  | 42,010 |
Real-Time Payments | 100,599 |  |  | — |  |  | — |  |  | 100,599 |
Issuing and Acquiring | 371,033 |  |  | — |  |  | — |  |  | 371,033 |
Total | $ | 590,961 |  |  | $ | 156,452 |  |  | $ | 510,881 |  |  | $ | 1,258,294 |
The following is revenue by the Company's reportable segments for the periods indicated (in thousands):
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Banks |  |  |  |  |
Software as a service and platform as a service | $ | 57,339 |  |  | $ | 69,254 |  |  | $ | 65,703 |
License | 310,758 |  |  | 232,143 |  |  | 256,097 |
Maintenance | 193,332 |  |  | 194,400 |  |  | 194,128 |
Services | 63,696 |  |  | 62,701 |  |  | 75,033 |
Total | $ | 625,125 |  |  | $ | 558,498 |  |  | $ | 590,961 |
Merchants |  |  |  |  |
Software as a service and platform as a service | $ | 124,933 |  |  | $ | 113,854 |  |  | $ | 101,666 |
License | 9,015 |  |  | 14,659 |  |  | 31,936 |
Maintenance | 16,846 |  |  | 16,981 |  |  | 18,968 |
Services | 2,194 |  |  | 3,848 |  |  | 3,882 |
Total | $ | 152,988 |  |  | $ | 149,342 |  |  | $ | 156,452 |
Billers |  |  |  |  |
Software as a service and platform as a service | $ | 592,070 |  |  | $ | 586,072 |  |  | $ | 510,300 |
License | 94 |  |  | 94 |  |  | 228 |
Maintenance | 321 |  |  | 316 |  |  | 313 |
Services | — |  |  | — |  |  | 40 |
Total | $ | 592,485 |  |  | $ | 586,482 |  |  | $ | 510,881 |
The following is the Company's revenue by geographic location for the periods indicated (in thousands):
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Revenue |  |  |  |  |
United States | $ | 869,081 |  |  | $ | 830,511 |  |  | $ | 781,820 |
Other | 501,517 |  |  | 463,811 |  |  | 476,474 |
Total | $ | 1,370,598 |  |  | $ | 1,294,322 |  |  | $ | 1,258,294 |
The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
| December 31,
| 2021 |  | 2020
Long-lived Assets |  |  |
United States | $ | 1,425,391 |  |  | $ | 1,423,862 |
Other | 745,138 |  |  | 750,651 |
Total | $ | 2,170,529 |  |  | $ | 2,174,513 |
No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2021, 2020, and 2019. No other country outside the United States accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2021, 2020, and 2019.

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://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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration