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Segment Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company reports financial performance based on its 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 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. 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 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 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):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenue
Banks$141,946 $114,051 $274,144 $209,968 
Merchants36,534 37,424 77,536 76,094 
Billers161,945 150,194 311,825 300,793 
Total revenue$340,425 $301,669 $663,505 $586,855 
Segment Adjusted EBITDA
Banks$70,160 $54,465 $134,874 $91,660 
Merchants7,749 13,041 22,462 27,766 
Billers28,324 34,603 54,681 68,624 
Depreciation and amortization(32,240)(33,403)(63,729)(66,986)
Stock-based compensation expense(6,800)(7,720)(14,758)(14,423)
Corporate and unallocated expenses(42,736)(45,562)(81,407)(87,527)
Interest, net(8,733)(8,395)(16,468)(17,016)
Other, net2,006 1,434 4,256 52 
Income before income taxes$17,730 $8,463 $39,911 $2,150 

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):
Three Months Ended June 30, 2022
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $161,945 $161,945 
Digital Business Banking12,097 — — 12,097 
Merchant Payments— 36,534 — 36,534 
Fraud Management7,552 — — 7,552 
Real-Time Payments24,212 — — 24,212 
Issuing and Acquiring98,085 — — 98,085 
Total$141,946 $36,534 $161,945 $340,425 
Three Months Ended June 30, 2021
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $150,194 $150,194 
Digital Business Banking15,700 — — 15,700 
Merchant Payments— 37,424 — 37,424 
Fraud Management10,457 — — 10,457 
Real-Time Payments17,711 — — 17,711 
Issuing and Acquiring70,183 — — 70,183 
Total$114,051 $37,424 $150,194 $301,669 
Six Months Ended June 30, 2022
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $311,825 $311,825 
Digital Business Banking25,585 — — 25,585 
Merchant Payments— 77,536 — 77,536 
Fraud Management15,329 — — 15,329 
Real-Time Payments46,139 — — 46,139 
Issuing and Acquiring187,091 — — 187,091 
Total$274,144 $77,536 $311,825 $663,505 
Six Months Ended June 30, 2021
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $300,793 $300,793 
Digital Business Banking30,792 — — 30,792 
Merchant Payments— 76,094 — 76,094 
Fraud Management16,681 — — 16,681 
Real-Time Payments30,896 — — 30,896 
Issuing and Acquiring131,599 — — 131,599 
Total$209,968 $76,094 $300,793 $586,855 
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Banks
Software as a service and platform as a service$13,985 $14,482 $27,937 $28,761 
License62,942 33,913 117,381 51,931 
Maintenance46,744 49,132 94,087 97,262 
Services18,275 16,524 34,739 32,014 
Total$141,946 $114,051 $274,144 $209,968 
Merchants
Software as a service and platform as a service$31,058 $31,732 $61,825 $62,775 
License1,372 814 7,218 3,904 
Maintenance3,808 3,943 7,846 8,095 
Services296 935 647 1,320 
Total$36,534 $37,424 $77,536 $76,094 
Billers
Software as a service and platform as a service$161,935 $150,114 $311,778 $300,538 
License— — — 94 
Maintenance10 80 47 161 
Services— — — — 
Total$161,945 $150,194 $311,825 $300,793 

The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenue
United States$209,459 $195,830 $408,774 $387,807 
Other130,966 105,839 254,731 199,048 
Total$340,425 $301,669 $663,505 $586,855 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
June 30, 2022December 31, 2021
Long-lived Assets
United States$1,382,374 $1,425,391 
Other736,607 745,138 
Total$2,118,981 $2,170,529 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and six months ended June 30, 2022 and 2021. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the six months ended June 30, 2022 and 2021.