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Restatement of Previously Issued Consolidated Financial Statements (Tables)

12 Months Ended

Dec. 31, 2015

Accounting Changes and Error Corrections [Abstract]

Cumulative Restatement Adjustments Recorded on Accumulated Earnings

The table below summarizes the effects of the cumulative Restatement adjustments recorded to all periods prior to January 1, 2013 on previously reported accumulated earnings balance:

		December 31, 2012
		As previously reported				Restatement Adjustment				Other insignificant corrective adjustments				As Restated				Reference
		(in thousands)
Accumulated earnings		$	70,414			$	(17,503	)		$	(3,359	)		$	49,552				a, 1, 2, 5

Impact of Restatement Adjustments and Correcting Classification Adjustments on Consolidated Statements of Income (Loss)

The tables below summarize the impact of the restatement adjustments and correcting classification adjustments on the Consolidated Statements of Income (Loss) for the years ended December 31, 2014 and 2013:

		Year ended December 31, 2014
(in thousands)		As previously reported				Restatement Adjustment				Other insignificant corrective adjustments				As Restated				Reference
Revenues
Merchant Acquiring, net		$	79,136			$	—			$	—			$	79,136
Payment Processing			105,423				—				(710	)			104,713			11
Business Solutions			176,570				—				1,369				177,939			1, 11
Total revenues			361,129				—				659				361,788
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization shown below			156,517				—				1,020				157,537			3, 4, 5
Selling, general and administrative expenses			41,276				—				—				41,276
Depreciation and amortization			65,988				—				—				65,988
Total operating costs and expenses			263,781				—				1,020				264,801
Income from operations			97,348				—				(361	)			96,987
Non-operating income (expenses)
Interest income			328				—				—				328
Interest expense			(26,081	)			—				309				(25,772	)		2
Earnings of equity method investment			1,140				—				—				1,140
Other income			2,375				—				—				2,375
Total non-operating expenses			(22,238	)			—				309				(21,929	)
Income before income taxes			75,110				—				(52	)			75,058
Income tax expense			7,578				2,135				(812	)			8,901			a, 6
Net income			67,532				(2,135	)			760				66,157
Other comprehensive loss, net of tax
Foreign currency translation adjustments			(6,948	)			—				—				(6,948	)
Total comprehensive income		$	60,584			$	(2,135	)		$	760			$	59,209
Net income per common share—basic		$	0.86			$	(0.02	)		$	—			$	0.84
Net income per common share—diluted		$	0.86			$	(0.02	)		$	—			$	0.84

		Year ended December 31, 2013
(in thousands)		As previously reported				Restatement Adjustment				Other insignificant corrective adjustments				As Restated				Reference
Revenues
Merchant Acquiring, net		$	73,616			$	—			$	—			$	73,616
Payment Processing			100,104				—				—				100,104
Business Solutions			184,297				—				385				184,682			1
Total revenues			358,017				—				385				358,402
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization shown below			163,080				—				(100	)			162,980			4, 5
Selling, general and administrative expenses			38,810				—				—				38,810
Depreciation and amortization			70,366				—				—				70,366
Total operating costs and expenses			272,256				—				(100	)			272,156
Income from operations			85,761				—				485				86,246
Non-operating income (expenses)
Interest income			236				—				—				236
Interest expense			(37,861	)			—				444				(37,417	)		2
Earnings of equity method investment			935				—				—				935
Other expenses			(75,682	)			—				—				(75,682	)
Total non-operating expenses			(112,372	)			—				444				(111,928	)
Loss before income taxes			(26,611	)			—				929				(25,682	)
Income tax (benefit) expense			(1,990	)			3,425				—				1,435			a
Net loss			(24,621	)			(3,425	)			929				(27,117	)
Other comprehensive income, net of tax
Foreign currency translation adjustments			1,268				—				—				1,268
Total comprehensive loss		$	(23,353	)		$	(3,425	)		$	929			$	(25,849	)
Net loss per common share—basic		$	(0.31	)		$	(0.03	)		$	—			$	(0.34	)
Net loss per common share—diluted		$	(0.31	)		$	(0.03	)		$	—			$	(0.34	)

Impact of Restatement Adjustments and Correcting Classifications Adjustments on Consolidated Balance Sheet

The following tables summarize the impact of the restatement adjustments and correcting classifications adjustments on the Consolidated Balance Sheet for the year ended December 31, 2014:

		December 31, 2014
		As previously reported				Restatement Adjustment				Other insignificant corrective adjustments				As Restated				Reference
		(in thousands)
Assets
Current Assets:
Cash		$	32,114			$	—			$	—			$	32,114
Restricted cash			5,718				—				(500	)			5,218			8
Accounts receivable, net			75,810				—				(5,126	)			70,684			14
Deferred tax asset			399				755				(101	)			1,053			a, 6
Prepaid expenses and other assets			20,565				259				(746	)			20,078			a, 4
Total current assets			134,606				1,014				(6,473	)			129,147
Investment in equity investee			11,756				—				—				11,756
Property and equipment, net			29,535				—				—				29,535
Goodwill			368,837				—				—				368,837
Other intangible assets, net			334,584				—				44				334,628			3
Other long-term assets			10,917				—				501				11,418			8
Total assets		$	890,235			$	1,014			$	(5,928	)		$	885,321
Liabilities and stockholders’ equity
Current Liabilities:
Accrued liabilities		$	26,052			$	—			$	—			$	26,052
Accounts payable			22,879				—				(5,126	)			17,753			14
Unearned income			9,825				—				(6,529	)			3,296			1, 12
Income tax payable			1,956				—				—				1,956
Current portion of long-term debt			19,000				—				—				19,000
Short-term borrowings			23,000				—				—				23,000
Deferred tax liability			1,799				(886	)			(913	)			—			a, 6
Total current liabilities			104,511				(886	)			(12,568	)			91,057
Long-term debt			647,579				—				—				647,579
Long-term deferred tax liability, net			15,674				7,398				—				23,072			a
Unearned income—long-term			—				—				8,312				8,312			12
Other long-term liabilities			2,898				17,563				—				20,461			a
Total liabilities			770,662				24,075				(4,256	)			790,481
Commitments and contingencies
Stockholders’ equity
Preferred stock			—				—				—				—
Common Stock			779				—				—				779
Additional paid-in capital			59,740				—				—				59,740
Accumulated earnings			65,576				(23,061	)			(1,672	)			40,843
Accumulated other comprehensive loss, net of tax			(6,522	)			—				—				(6,522	)
Total stockholders’ equity			119,573				(23,061	)			(1,672	)			94,840
Total liabilities and stockholders’ equity		$	890,235			$	1,014			$	(5,928	)		$	885,321

Impact of Restatement Adjustments and Correcting Classification Adjustments on Consolidated Statement of Cash Flow

The table below summarizes the effects of the Restatement adjustments and correcting classification adjustments on the Consolidated Statement of Cash Flows for the years ended December 31, 2014 and 2013:

		Year ended December 31, 2014
		As previously reported				Restatement Adjustment				Other insignificant corrective adjustments				As Restated				Reference
Cash flows from operating activities
Net income		$	67,532			$	(2,135	)		$	760			$	66,157
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			65,988				—				—				65,988
Amortization of debt issue costs and accretion of discount			3,094				—				—				3,094
Provision for doubtful accounts and sundry losses			1,360				—				—				1,360
Deferred tax benefit			(1,713	)			(1,176	)			(812	)			(3,701	)		a, 6
Share-based compensation			4,587				—				—				4,587
Unrealized loss of indemnification assets			446				—				—				446
Loss on disposition of property and equipment and other intangibles			734				—				—				734
Earnings of equity method investment			(1,140	)			—				—				(1,140	)
Dividend received from equity method investment			326				—				—				326
(Increase) decrease in assets:
Accounts receivable, net			(6,608	)			—				1,021				(5,587	)		7, 9, 14
Prepaid expenses and other assets			(1,067	)			83				603				(381	)		a, 9
Other long-term assets			3,365				—				—				3,365
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities			(2,883	)			3,228				(1,042	)			(697	)		a, 2, 7, 9, 10, 14
Income tax payable			1,697				—				—				1,697
Unearned income			4,230				—				(659	)			3,571			1
Total adjustments			72,416				2,135				(889	)			73,662
Net cash provided by operating activities			139,948				—				(129	)			139,819
Cash flows from investing activities
Net increase in restricted cash			(285	)			—				—				(285	)
Additions to software			(15,046	)			—				339				(14,707	)		3, 10
Property and equipment acquired			(10,898	)			—				—				(10,898	)
Proceeds from sales of property and equipment			59				—				—				59
Net cash used in investing activities			(26,170	)			—				339				(25,831	)
Cash flows from financing activities
Net decrease in short-term borrowings			(27,000	)			—				—				(27,000	)
Repayments of borrowing for purchase of equipment			(1,200	)			—				—				(1,200	)
Dividends paid			(31,359	)			—				—				(31,359	)
Statutory minimum withholding taxes paid on share-based compensation			(2,001	)			—				—				(2,001	)
Tax windfall benefits on share-based compensation			3,669				—				—				3,669
Issuance of common stock			543				—				—				543
Repurchase of common stock			(26,197	)			—				—				(26,197	)
Settlement of stock options			(1,604	)			—				—				(1,604	)
Repayment and repurchase of long-term debt			(19,000	)			—				—				(19,000	)
Net cash used in financing activities			(104,149	)			—				—				(104,149	)
Net increase in cash			9,629				—				210				9,839
Cash at beginning of the period			22,485				—				(210	)			22,275
Cash at end of the period		$	32,114			$	—			$	—			$	32,114

		Year ended December 31, 2013
		As previously reported				Restatement Adjustment				Other insignificant corrective adjustments				As Restated				Reference
Cash flows from operating activities
Net loss		$	(24,621	)		$	(3,425	)		$	929			$	(27,117	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			70,366				—				—				70,366
Amortization of debt issue costs and accretion of discount			3,905				—				—				3,905
Write-off of debt issue costs, premium and discount accounted as loss on extinguishment of debt			16,555				—				—				16,555
Provision for doubtful accounts and sundry losses			673				—				—				673
Deferred tax benefit			(5,702	)			2,283				—				(3,419	)		a
Share-based compensation			6,179				—				—				6,179
Unrealized loss of indemnification assets			383				—				—				383
Loss on disposition of property and equipment and other intangibles			538				—				—				538
Earnings of equity method investment			(935	)			—				—				(935	)
Dividend received from equity method investment			984				—				—				984
(Increase) decrease in assets:							—				—
Accounts receivable, net			9,243				—				4,403				13,646			7, 9, 14
Prepaid expenses and other assets			1,685				(26	)			(1,212	)			447			a, 9
Other long-term assets			(1,381	)			—				—				(1,381	)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities			(16,734	)			1,168				(3,914	)			(19,480	)		a, 2, 7, 9, 14
Income tax payable			(2,700	)			—				—				(2,700	)
Unearned income			4,429				—				(463	)			3,966			1
Total adjustments			87,488				3,425				(1,186	)			89,727
Net cash provided by operating activities			62,867				—				(257	)			62,610
Cash flows from investing activities
Net increase in restricted cash			(494	)			—				—				(494	)
Additions to software and purchase of customer relationship			(16,980	)			—				253				(16,727	)		13
Property and equipment acquired			(11,486	)			—				(206	)			(11,692	)		13
Proceeds from sales of property and equipment			16				—				—				16
Net cash used in investing activities			(28,944	)			—				47				(28,897	)
Cash flows from financing activities
Proceeds from initial public offering, net of offering costs of $12,567			112,432				—				—				112,432
Proceeds from issuance of long-term debt			700,000				—				—				700,000
Debt issuance costs			(12,077	)			—				—				(12,077	)
Net increase in short-term borrowings			36,000				—				—				36,000
Proceeds from new short-term borrowing for purchase of equipment			1,800				—				—				1,800
Repayments of borrowing for purchase of equipment			(13,596	)			—				—				(13,596	)
Dividends paid			(16,390	)			—				—				(16,390	)
Statutory minimum withholding taxes paid on share-based compensation			(16,851	)			—				—				(16,851	)
Tax windfall benefits on share-based compensation			1,829				—				—				1,829
Issuance of common stock			29				—				—				29
Repurchase of common stock			(75,000	)			—				—				(75,000	)
Repayment and repurchase of long-term debt			(755,024	)			—				—				(755,024	)
Repayment of other financing agreement			(224	)			—				—				(224	)
Net cash used in financing activities			(37,072	)			—				—				(37,072	)
Net decrease in cash			(3,149	)			—				(210	)			(3,359	)
Cash at beginning of the period			25,634				—				—				25,634
Cash at end of the period		$	22,485			$	—			$	(210	)		$	22,275

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Tabular disclosure of the nature and effects of a restatement to correct an error in the reported results of operations of prior periods. When prior period adjustments are recorded, the resulting effects (both gross and net of applicable income tax) on the net income of prior periods are disclosed in the annual report for the year in which the adjustments are made, and amended filings of previously issued reports are typically issued.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22644-107794

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Tabular disclosure of the cumulative effect on retained earnings of adjustments, which includes changes in accounting principle, new accounting pronouncements, and correction of errors.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
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