QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||
, | , | |||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | |||||
Emerging growth company |
Page | |
Item 1. | Condensed Consolidated Financial Statements (Unaudited) |
June 30, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Trade receivables, net | |||||||
Prepaid expenses and other current assets | |||||||
Receivables from related parties | |||||||
Total current assets | |||||||
Property and equipment, net | |||||||
Computer software, net | |||||||
Other intangible assets, net | |||||||
Goodwill | |||||||
Investments in unconsolidated affiliates | |||||||
Deferred contract costs, net | |||||||
Other non-current assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable and other accrued liabilities | $ | $ | |||||
Accrued compensation and benefits | |||||||
Current portion of long-term debt | |||||||
Deferred revenues | |||||||
Total current liabilities | |||||||
Deferred revenues | |||||||
Deferred income taxes | |||||||
Long-term debt, net of current portion | |||||||
Other non-current liabilities | |||||||
Total liabilities | |||||||
Commitments and contingencies (Note 9) | |||||||
Equity: | |||||||
Common stock; $0.0001 par value; 550,000,000 shares authorized; 153,085,116 shares issued and 149,674,814 shares outstanding as of June 30, 2019, and 153,241,851 shares issued and 149,358,973 shares outstanding as of December 31, 2018 | |||||||
Preferred stock; $0.0001 par value; 25,000,000 shares authorized; issued and outstanding, none as of June 30, 2019 and December 31, 2018 | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive (loss) earnings | ( | ) | |||||
Treasury stock, at cost, 3,410,302 shares as of June 30, 2019 and 3,882,878 shares as of December 31, 2018 | ( | ) | ( | ) | |||
Total equity | |||||||
Total liabilities and equity | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||
Expenses: | |||||||||||||||
Operating expenses | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Transition and integration costs | |||||||||||||||
Total expenses | |||||||||||||||
Operating income | |||||||||||||||
Other income and expense: | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Earnings before income taxes and equity in losses of unconsolidated affiliates | |||||||||||||||
Income tax expense | |||||||||||||||
Earnings before equity in losses of unconsolidated affiliates | |||||||||||||||
Equity in losses of unconsolidated affiliates, net of tax | ( | ) | ( | ) | |||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||
Other comprehensive (loss) earnings: | |||||||||||||||
Unrealized holding (losses) gains, net of tax(1) | ( | ) | ( | ) | |||||||||||
Reclassification adjustments for gains included in net earnings, net of tax(2) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total unrealized (losses) gains on interest rate swaps, net of tax | ( | ) | ( | ) | |||||||||||
Foreign currency translation adjustment(3) | ( | ) | ( | ) | |||||||||||
Unrealized loss on investments in unconsolidated affiliates | ( | ) | ( | ) | |||||||||||
Other comprehensive (loss) earnings | ( | ) | ( | ) | |||||||||||
Comprehensive earnings | $ | $ | $ | $ | |||||||||||
Net earnings per share: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
Weighted average shares of common stock outstanding (Note 3): | |||||||||||||||
Basic | |||||||||||||||
Diluted |
(1) | Net of income tax benefit of $ |
(2) | Amounts reclassified to net earnings relate to gains on interest rate swaps and are included in Interest expense, net above. Amounts are net of income tax expense of $ |
(3) | Net of income tax benefit of $ |
Three months ended June 30, 2019 | |||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | |||||||||||||||||||||||||
Shares | $ | Shares | $ | Total equity | |||||||||||||||||||||||||
Balance, March 31, 2019 | $ | — | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||
Grant of restricted shares of common stock | — | — | ( | ) | — | — | — | — | |||||||||||||||||||||
Forfeitures of restricted shares of common stock | — | — | — | — | — | ( | ) | — | |||||||||||||||||||||
Tax withholding payments for restricted share vesting | — | — | ( | ) | — | — | — | — | ( | ) | |||||||||||||||||||
Vesting of restricted shares granted from treasury stock | — | — | — | — | — | ( | ) | — | |||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||
Unrealized losses on interest rate swaps, net | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Other comprehensive loss on investments in unconsolidated affiliates | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Balance, June 30, 2019 | $ | — | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Three months ended June 30, 2018 | |||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings | Treasury stock | |||||||||||||||||||||||||
Shares | $ | Shares | $ | Total equity | |||||||||||||||||||||||||
Balance March 31, 2018 | $ | — | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
Grant of restricted shares of common stock | — | — | ( | ) | — | — | ( | ) | — | ||||||||||||||||||||
Forfeitures of restricted shares of common stock | — | — | — | — | — | ( | ) | — | |||||||||||||||||||||
Tax withholding payments for restricted share vesting | — | — | ( | ) | — | — | — | — | ( | ) | |||||||||||||||||||
Equity-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Unrealized gains on interest rate swaps, net | — | — | — | — | — | — | |||||||||||||||||||||||
Balance, June 30, 2018 | $ | — | $ | $ | $ | $ | ( | ) | $ |
Six months ended June 30, 2019 | |||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings (loss) | Treasury stock | |||||||||||||||||||||||||
Shares | $ | Shares | $ | Total equity | |||||||||||||||||||||||||
Balance, December 31, 2018 | $ | — | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
Effect of ASU 2018-02 adoption (Note 1) | — | — | — | ( | ) | — | — | ||||||||||||||||||||||
Adjusted balance at January 1, 2019 | — | ( | ) | ||||||||||||||||||||||||||
Grant of restricted shares of common stock | — | — | ( | ) | — | — | ( | ) | — | ||||||||||||||||||||
Forfeitures of restricted shares of common stock | — | — | — | — | — | ( | ) | — | |||||||||||||||||||||
Tax withholding payments for restricted share vesting | ( | ) | — | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||
Vesting of restricted shares granted from treasury stock | — | — | — | — | ( | ) | — | ||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||
Unrealized losses on interest rate swaps, net | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Other comprehensive loss on investments in unconsolidated affiliates | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Balance, June 30, 2019 | $ | — | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Six months ended June 30, 2018 | |||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings | Treasury stock | |||||||||||||||||||||||||
Shares | $ | Shares | $ | Total equity | |||||||||||||||||||||||||
Balance, December 31, 2017 | $ | — | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
Cumulative effect of ASC 606 adoption | — | — | — | — | — | — | |||||||||||||||||||||||
Adjusted balance at January 1, 2018 | — | ( | ) | ||||||||||||||||||||||||||
Grant of restricted shares of common stock | — | — | ( | ) | — | — | ( | ) | — | ||||||||||||||||||||
Forfeitures of restricted shares of common stock | — | — | — | — | — | ( | ) | — | |||||||||||||||||||||
Tax withholding payments for restricted share vesting | ( | ) | — | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Unrealized gains on interest rate swaps, net | — | — | — | — | — | — | |||||||||||||||||||||||
Balance, June 30, 2018 | $ | — | $ | $ | $ | $ | ( | ) | $ |
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | $ | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Amortization of debt issuance costs and original issue discount | |||||||
Loss on extinguishment of debt, net | |||||||
Deferred income taxes, net | |||||||
Equity in losses of unconsolidated affiliates, net of tax | |||||||
Equity-based compensation | |||||||
Changes in assets and liabilities, net of acquired assets and liabilities: | |||||||
Trade and other receivables, including receivables from related parties | |||||||
Prepaid expenses and other assets | ( | ) | ( | ) | |||
Deferred contract costs | ( | ) | ( | ) | |||
Deferred revenues | ( | ) | ( | ) | |||
Trade accounts payable and other liabilities | ( | ) | |||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | ( | ) | ( | ) | |||
Additions to computer software | ( | ) | ( | ) | |||
Business acquisition, net of cash acquired | ( | ) | |||||
Investment in unconsolidated affiliate | ( | ) | |||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Revolver borrowings | |||||||
Revolver payments | ( | ) | ( | ) | |||
Term loan borrowings | |||||||
Term loan payments | ( | ) | ( | ) | |||
Purchases of treasury stock | ( | ) | ( | ) | |||
Tax withholding payments for restricted share vesting | ( | ) | ( | ) | |||
Debt issuance costs | ( | ) | |||||
Net cash provided by (used in) financing activities | ( | ) | |||||
Net decrease in cash and cash equivalents | ( | ) | ( | ) | |||
Cash and cash equivalents, beginning of period | |||||||
Cash and cash equivalents, end of period | $ | $ | |||||
Supplemental cash flow information: | |||||||
Interest paid, net | $ | ( | ) | $ | ( | ) | |
Income taxes paid, net | $ | ( | ) | $ | ( | ) |
(1) | Basis of Presentation |
Total number of shares repurchased | Aggregate purchase price | Average price paid per share | Shares remaining under repurchase authorization as of June 30, 2019 | |||||||||
$ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Cash | $ | $ | |||||
Cash equivalents | |||||||
Cash and cash equivalents | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Trade receivables — billed | $ | $ | |||||
Trade receivables — unbilled | |||||||
Trade receivables | |||||||
Allowance for doubtful accounts | ( | ) | ( | ) | |||
Trade receivables, net | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Prepaid expenses | $ | $ | |||||
Contract assets | |||||||
Other current assets | |||||||
Prepaid expenses and other current assets | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Computer software | $ | $ | |||||||||||||
Other intangible assets | |||||||||||||||
Deferred contract costs | |||||||||||||||
Property and equipment | |||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2019 | |||||||
Total assets | Maximum exposure(1) | ||||||
Investment in Star Parent | $ | $ |
March 31, 2019 | ||||
Current assets | $ | |||
Non-current assets | ||||
Total assets | $ | |||
Current liabilities, including short-term debt | $ | |||
Non-current liabilities | ||||
Total liabilities | ||||
Cumulative preferred series A stock | ||||
Total capital | ||||
Total liabilities and partners' capital | $ |
For the period February 8 to March 31, 2019 | ||||
Revenues | $ | |||
Loss before provision for income taxes and equity in net income of affiliates | ( | ) | ||
Net loss | ( | ) | ||
Net loss attributable to Star Parent | ( | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Basic: | |||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||
Shares used for basic net earnings per share: | |||||||||||||||
Weighted average shares of common stock outstanding | |||||||||||||||
Basic net earnings per share | $ | $ | $ | $ | |||||||||||
Diluted: | |||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||
Shares used for diluted net earnings per share: | |||||||||||||||
Weighted average shares of common stock outstanding | |||||||||||||||
Dilutive effect of unvested restricted shares of common stock | |||||||||||||||
Weighted average shares of common stock, diluted | |||||||||||||||
Diluted net earnings per share | $ | $ | $ | $ |
May 11, 2018 | March 15, 2018 | February 15, 2018 | ||||||
Number of shares sold by affiliates of THL | ||||||||
Number of shares repurchased from the underwriter | ||||||||
Shares owned by affiliates of THL immediately after each offering |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||
Operating expenses |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Software services | $ | $ | $ | $ | |||||||||||
Data and analytics services | $ | ||||||||||||||
Total related party revenues | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Data entry, indexing services and other operating expenses | $ | $ | $ | $ | |||||||||||
Corporate services | |||||||||||||||
Technology and corporate services | ( | ) | ( | ) | |||||||||||
Total related party expenses, net | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Property records database | $ | $ | |||||
Right-of-use assets | |||||||
Contract assets | |||||||
Deferred compensation plan related assets | |||||||
Prepaid expenses | |||||||
Unbilled receivables | |||||||
Unrealized gains on interest rate swaps | |||||||
Other | |||||||
Other non-current assets | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
Principal | Debt issuance costs | Discount | Total | Principal | Debt issuance costs | Discount | Total | ||||||||||||||||||||||||
Term A Loan | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Revolving Credit Facility | ( | ) | ( | ) | |||||||||||||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||||||||||||
Total long-term debt | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Less: Current portion of long-term debt | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Long-term debt, net of current portion | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
2019 (remaining) | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Total | $ |
Effective dates | Notional amount | Fixed rates | ||||
March 31, 2017 through March 31, 2022 | $ | |||||
September 29, 2017 through September 30, 2021 | $ | |||||
April 30, 2018 through April 30, 2023 | $ | |||||
January 31, 2019 through January 31, 2023 | $ |
Effective dates | Notional amount | Fixed rates | ||||
February 1, 2016 through January 31, 2019 | $ | |||||
February 1, 2016 through January 31, 2019 | $ |
Balance sheet accounts | June 30, 2019 | December 31, 2018 | ||||||
Prepaid expenses and other current assets | $ | $ | ||||||
Other non-current assets | $ | $ | ||||||
Other non-current liabilities | $ | $ |
Three months ended June 30, 2019 | Three months ended June 30, 2018 | ||||||||||||||
Amount of loss recognized in OCE | Amount of gain reclassified from Accumulated OCE into Net earnings | Amount of gain recognized in OCE | Amount of gain reclassified from Accumulated OCE into Net earnings | ||||||||||||
Swap agreements | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
Six months ended June 30, 2019 | Six months ended June 30, 2018 | ||||||||||||||
Amount of loss recognized in OCE | Amount of gain reclassified from Accumulated OCE into Net earnings | Amount of gain recognized in OCE | Amount of gain reclassified from Accumulated OCE into Net earnings | ||||||||||||
Swap agreements | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
(7) | Fair Value Measurements |
• | Level 1 inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that we have the ability to access. |
• | Level 2 inputs to the valuation methodology include: |
◦ | quoted prices for similar assets or liabilities in active markets; |
◦ | quoted prices for identical or similar assets or liabilities in inactive markets; |
◦ | inputs other than quoted prices that are observable for the asset or liability; and |
◦ | inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
Carrying amount | Fair value | Carrying amount | Fair value | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Cash and cash equivalents (Note 1) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Interest rate swaps (Note 6) | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Interest rate swaps (Note 6) |
June 30, 2019 | |||
Trade accounts payable and other accrued liabilities | $ | ||
Other non-current liabilities | |||
Total lease liabilities | $ |
2019 (remaining) | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | |||
Less imputed interest | ( | ) | |
Total | $ |
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
Three months ended June 30, 2019 | Six months ended June 30, 2019 | |||||||
Operating lease cost (1) | $ | $ | ||||||
Operating cash flows for amounts included in the measurement of lease liabilities | ||||||||
Right-of-use assets obtained in exchange for lease liabilities | ||||||||
June 30, 2019 | ||||||||
Weighted average remaining lease term (in years) | ||||||||
Weighted average discount rate | % |
Three months ended June 30, 2019 | |||||||||||||||||||||||
Servicing Software | Origination Software | Software Solutions | Data and Analytics | Corporate and Other | Total | ||||||||||||||||||
Software and hosting solutions | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Professional services | ( | ) | (1) | ||||||||||||||||||||
Data solutions | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | ( | ) | $ |
(1) | Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. |
Three months ended June 30, 2018 | |||||||||||||||||||||||
Servicing Software | Origination Software | Software Solutions | Data and Analytics | Corporate and Other | Total | ||||||||||||||||||
Software and hosting solutions | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Professional services | ( | ) | (1) | ||||||||||||||||||||
Data solutions | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | ( | ) | $ |
(1) | Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. |
Six months ended June 30, 2019 | |||||||||||||||||||||||
Servicing Software | Origination Software | Software Solutions | Data and Analytics | Corporate and Other | Total | ||||||||||||||||||
Software and hosting solutions | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Professional services | ( | ) | (1) | ||||||||||||||||||||
Data solutions | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | ( | ) | $ |
(1) | Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. |
Six months ended June 30, 2018 | |||||||||||||||||||||||
Servicing Software | Origination Software | Software Solutions | Data and Analytics | Corporate and Other | Total | ||||||||||||||||||
Software and hosting solutions | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Professional services | ( | ) | (1) | ||||||||||||||||||||
Data solutions | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | ( | ) | $ |
(1) | Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. |
• | Volume-based fees in excess of contractual minimums and other usage-based fees to the extent they are part of a single performance obligation and meet certain variable allocation criteria; |
• | Performance obligations that are part of a contract with an original expected duration of one year or less; and |
• | Transactional fees based on a fixed fee per transaction when we have the right to invoice once we have completed the performance obligation. |
Date | Number of shares granted | Grant date fair value per share | Vesting period (in years) | Vesting criteria | |||||||
February 15, 2019 | $ | Service and performance | |||||||||
February 28, 2019 | $ | Service | |||||||||
April 8, 2019 | $ | Service and performance |
Shares | Weighted average grant date fair value | |||||
Balance, December 31, 2018 | $ | |||||
Granted | $ | |||||
Forfeited | ( | ) | $ | |||
Vested | ( | ) | $ | |||
Balance, June 30, 2019 | $ |
Three months ended June 30, 2019 | |||||||||||||||
Software Solutions | Data and Analytics | Corporate and Other | Total | ||||||||||||
Revenues | $ | $ | $ | ( | ) | (1) | $ | ||||||||
Expenses: | |||||||||||||||
Operating expenses | (2) | ||||||||||||||
Transition and integration costs | (3) | ||||||||||||||
EBITDA | ( | ) | |||||||||||||
Depreciation and amortization | (4) | ||||||||||||||
Operating income (loss) | ( | ) | |||||||||||||
Interest expense, net | ( | ) | |||||||||||||
Other expense, net | ( | ) | |||||||||||||
Earnings before income taxes and equity in losses of unconsolidated affiliates | |||||||||||||||
Income tax expense | |||||||||||||||
Earnings before equity in losses of unconsolidated affiliates | |||||||||||||||
Equity in losses of unconsolidated affiliates, net of tax | ( | ) | |||||||||||||
Net earnings | $ |
Three months ended June 30, 2018 | |||||||||||||||
Software Solutions | Data and Analytics | Corporate and Other | Total | ||||||||||||
Revenues | $ | $ | $ | ( | ) | (1) | $ | ||||||||
Expenses: | |||||||||||||||
Operating expenses | (2) | ||||||||||||||
Transition and integration costs | (3) | ||||||||||||||
EBITDA | ( | ) | |||||||||||||
Depreciation and amortization | (4) | ||||||||||||||
Operating income (loss) | ( | ) | |||||||||||||
Interest expense, net | ( | ) | |||||||||||||
Other expense, net | ( | ) | |||||||||||||
Earnings before income taxes | |||||||||||||||
Income tax expense | |||||||||||||||
Net earnings | $ |
(1) | Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. |
(4) | Depreciation and amortization for Corporate and Other primarily represents net incremental depreciation and amortization adjustments associated with the application of purchase accounting recorded in accordance with GAAP. |
Six months ended June 30, 2019 | |||||||||||||||
Software Solutions | Data and Analytics | Corporate and Other | Total | ||||||||||||
Revenues | $ | $ | $ | ( | ) | (1) | $ | ||||||||
Expenses: | |||||||||||||||
Operating expenses | (2) | ||||||||||||||
Transition and integration costs | (3) | ||||||||||||||
EBITDA | ( | ) | |||||||||||||
Depreciation and amortization | (4) | ||||||||||||||
Operating income (loss) | ( | ) | |||||||||||||
Interest expense, net | ( | ) | |||||||||||||
Other expense, net | ( | ) | |||||||||||||
Earnings before income taxes and equity in losses of unconsolidated affiliates | |||||||||||||||
Income tax expense | |||||||||||||||
Earnings before equity in losses of unconsolidated affiliates | |||||||||||||||
Equity in losses of unconsolidated affiliates, net of tax | ( | ) | |||||||||||||
Net earnings | $ | ||||||||||||||
Balance sheet data: | |||||||||||||||
Total assets | $ | $ | $ | (5) | $ | ||||||||||
Goodwill | $ | $ | $ | $ |
(1) | Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. |
(4) | Depreciation and amortization for Corporate and Other primarily represents net incremental depreciation and amortization adjustments associated with the application of purchase accounting recorded in accordance with GAAP. |
(5) | Receivables from related parties are included in Corporate and Other. |
Six months ended June 30, 2018 | |||||||||||||||
Software Solutions | Data and Analytics | Corporate and Other | Total | ||||||||||||
Revenues | $ | $ | $ | ( | ) | (1) | $ | ||||||||
Expenses: | |||||||||||||||
Operating expenses | (2) | ||||||||||||||
Transition and integration costs | (3) | ||||||||||||||
EBITDA | ( | ) | |||||||||||||
Depreciation and amortization | (4) | ||||||||||||||
Operating income (loss) | ( | ) | |||||||||||||
Interest expense, net | ( | ) | |||||||||||||
Other expense, net | ( | ) | |||||||||||||
Earnings before income taxes | |||||||||||||||
Income tax expense | |||||||||||||||
Net earnings | $ | ||||||||||||||
Balance sheet data: | |||||||||||||||
Total assets | $ | $ | $ | (5) | $ | ||||||||||
Goodwill | $ | $ | $ | $ |
(1) | Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. |
(2) | Operating expenses for Corporate and Other includes $ |
(4) | Depreciation and amortization for Corporate and Other primarily represents net incremental depreciation and amortization adjustments associated with the application of purchase accounting recorded in accordance with GAAP. |
(5) | Receivables from related parties are included in Corporate and Other. |
• | security breaches against our information systems; |
• | our ability to maintain and grow our relationships with our customers; |
• | changes to the laws, rules and regulations that affect our and our customers' businesses; |
• | our ability to adapt our services to changes in technology or the marketplace; |
• | the effect of any potential defects, development delays, installation difficulties or system failures on our business and reputation; |
• | changes in general economic, business, regulatory and political conditions, particularly as they affect the mortgage industry; |
• | risks associated with the availability of data; |
• | the effects of our existing leverage on our ability to make acquisitions and invest in our business; |
• | our ability to successfully integrate strategic acquisitions; |
• | risks associated with our investment in Star Parent, L.P. ("Star Parent") and the operation of its indirect subsidiary The Dun & Bradstreet Corporation ("D&B"); |
• | risks associated with our spin-off from Fidelity National Financial, Inc. ("FNF"), including limitations on our strategic and operating flexibility as a result of the tax-free nature of the spin-off; and |
• | other risks and uncertainties detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of our Annual Report on Form 10-K for the year ended December 31, 2018 and other filings with the Securities and Exchange Commission ("SEC"). |
First lien mortgages | Second lien mortgages | Total first and second lien mortgages | |||||||||||||||
as of June 30, | as of June 30, | as of June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Active loans | 33.0 | 31.9 | 2.6 | 2.6 | 35.6 | 34.5 | |||||||||||
Market size | 52.3 | (1 | ) | 51.3 | (1 | ) | 13.3 | (2 | ) | 14.5 | (2 | ) | 65.6 | 65.8 | |||
Market share | 63% | 62% | 19% | 18% | 54% | 52% |
(1) | According to the Black Knight Mortgage Monitor Report as of June 30, 2019 and May 31, 2018 for U.S. first lien mortgages. |
(2) | According to the June 2019 and May 2018 Equifax National Consumer Credit Trends Report as of March 31, 2019 and 2018, respectively, for U.S. second lien mortgages. |
• | Software Solutions - offers software and hosting solutions that support loan servicing, loan origination and settlement services. |
• | Data and Analytics - offers data and analytics solutions to the mortgage, real estate and capital markets verticals. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, behavioral models, a multiple listing service software solution and other data solutions. |
Consolidated Results of Operations | |||||||||||||||
The following table presents certain financial data for the periods indicated (in millions, except per share data): | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | 294.9 | $ | 276.6 | $ | 578.0 | $ | 546.9 | |||||||
Expenses: | |||||||||||||||
Operating expenses | 159.4 | 155.4 | 319.4 | 304.8 | |||||||||||
Depreciation and amortization | 57.5 | 53.6 | 114.4 | 105.0 | |||||||||||
Transition and integration costs | 1.0 | 1.2 | 1.9 | 2.5 | |||||||||||
Total expenses | 217.9 | 210.2 | 435.7 | 412.3 | |||||||||||
Operating income | 77.0 | 66.4 | 142.3 | 134.6 | |||||||||||
Operating margin | 26.1 | % | 24.0 | % | 24.6 | % | 24.6 | % | |||||||
Interest expense, net | (16.7 | ) | (13.1 | ) | (31.7 | ) | (25.9 | ) | |||||||
Other expense, net | (0.5 | ) | (6.2 | ) | (0.8 | ) | (6.4 | ) | |||||||
Earnings before income taxes and equity in losses of unconsolidated affiliates | 59.8 | 47.1 | 109.8 | 102.3 | |||||||||||
Income tax expense | 14.5 | 7.1 | 25.2 | 19.6 | |||||||||||
Earnings before equity in losses of unconsolidated affiliates | 45.3 | 40.0 | 84.6 | 82.7 | |||||||||||
Equity in losses of unconsolidated affiliates, net of tax | (13.4 | ) | — | (13.4 | ) | — | |||||||||
Net earnings | $ | 31.9 | $ | 40.0 | $ | 71.2 | $ | 82.7 | |||||||
Net earnings per share: | |||||||||||||||
Diluted | $ | 0.21 | $ | 0.27 | $ | 0.48 | $ | 0.56 | |||||||
Weighted average shares of common stock outstanding: | |||||||||||||||
Diluted | 148.5 | 147.7 | 148.4 | 148.4 |
Three months ended June 30, | Variance | Six months ended June 30, | Variance | ||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Software Solutions | $ | 255.4 | $ | 238.7 | $ | 16.7 | 7 | % | $ | 498.9 | $ | 472.3 | $ | 26.6 | 6 | % | |||||||||||||
Data and Analytics | 39.7 | 38.7 | 1.0 | 3 | % | 79.4 | 76.3 | 3.1 | 4 | % | |||||||||||||||||||
Corporate and Other(1) | (0.2 | ) | (0.8 | ) | 0.6 | 75 | % | (0.3 | ) | (1.7 | ) | 1.4 | 82 | % | |||||||||||||||
Total | $ | 294.9 | $ | 276.6 | $ | 18.3 | 7 | % | $ | 578.0 | $ | 546.9 | $ | 31.1 | 6 | % |
(1) | Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. |
Three months ended June 30, | Variance | Six months ended June 30, | Variance | ||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Software Solutions | $ | 101.5 | $ | 96.9 | $ | 4.6 | 5 | % | $ | 204.3 | $ | 193.7 | $ | 10.6 | 5 | % | |||||||||||||
Data and Analytics | 30.3 | 28.9 | 1.4 | 5 | % | 60.1 | 57.9 | 2.2 | 4 | % | |||||||||||||||||||
Corporate and Other | 27.6 | 29.6 | (2.0 | ) | (7 | )% | 55.0 | 53.2 | 1.8 | 3 | % | ||||||||||||||||||
Total | $ | 159.4 | $ | 155.4 | $ | 4.0 | 3 | % | $ | 319.4 | $ | 304.8 | $ | 14.6 | 5 | % |
(1) | Operating expenses for Corporate and Other include $12.2 million of equity-based compensation, including related payroll taxes, for the three months ended June 30, 2019 and 2018, respectively, and $26.1 million and $20.3 million for the six months ended June 30, 2019 and 2018, respectively. |
Three months ended June 30, | Variance | Six months ended June 30, | Variance | ||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Software Solutions | $ | 30.1 | $ | 28.4 | $ | 1.7 | 6 | % | $ | 60.0 | $ | 55.1 | $ | 4.9 | 9 | % | |||||||||||||
Data and Analytics | 3.9 | 3.5 | 0.4 | 11 | % | 7.7 | 6.7 | 1.0 | 15 | % | |||||||||||||||||||
Corporate and Other(1) | 23.5 | 21.7 | 1.8 | 8 | % | 46.7 | 43.2 | 3.5 | 8 | % | |||||||||||||||||||
Total | $ | 57.5 | $ | 53.6 | $ | 3.9 | 7 | % | $ | 114.4 | $ | 105.0 | $ | 9.4 | 9 | % |
(1) | Depreciation and amortization for Corporate and Other primarily represents net incremental depreciation and amortization adjustments associated with the application of purchase accounting recorded in accordance with GAAP. |
Three months ended June 30, | Variance | Six months ended June 30, | Variance | ||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Software Solutions | $ | 123.8 | $ | 113.4 | $ | 10.4 | 9 | % | $ | 234.6 | $ | 223.5 | $ | 11.1 | 5 | % | |||||||||||||
Data and Analytics | 5.5 | 6.3 | (0.8 | ) | (13 | )% | 11.6 | 11.7 | (0.1 | ) | (1 | )% | |||||||||||||||||
Corporate and Other | (52.3 | ) | (53.3 | ) | 1.0 | 2 | % | (103.9 | ) | (100.6 | ) | (3.3 | ) | (3 | )% | ||||||||||||||
Total | $ | 77.0 | $ | 66.4 | $ | 10.6 | 16 | % | $ | 142.3 | $ | 134.6 | $ | 7.7 | 6 | % |
Three months ended June 30, | Variance | Six months ended June 30, | Variance | ||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Software Solutions | $ | 153.9 | $ | 141.8 | $ | 12.1 | 9 | % | $ | 294.6 | $ | 278.6 | $ | 16.0 | 6 | % | |||||||||||||
Data and Analytics | 9.4 | 9.8 | (0.4 | ) | (4 | )% | 19.3 | 18.4 | 0.9 | 5 | % |
Three months ended June 30, | Variance | Six months ended June 30, | Variance | ||||||||||||||
2019 | 2018 | Basis points | 2019 | 2018 | Basis points | ||||||||||||
Software Solutions | 60.3 | % | 59.4 | % | 90 | 59.0 | % | 59.0 | % | — | |||||||
Data and Analytics | 23.7 | % | 25.3 | % | (160 | ) | 24.3 | % | 24.1 | % | 20 |
Six months ended June 30, | ||||||||||||
2019 | 2018 | Variance | ||||||||||
Cash flows provided by operating activities | $ | 128.1 | $ | 210.0 | $ | (81.9 | ) | |||||
Cash flows used in investing activities | (420.4 | ) | (58.0 | ) | (362.4 | ) | ||||||
Cash flows provided by (used in) financing activities | 281.3 | (156.8 | ) | 438.1 | ||||||||
Net decrease in cash and cash equivalents | $ | (11.0 | ) | $ | (4.8 | ) | $ | (6.2 | ) |
Total number of shares repurchased | Aggregate purchase price | Average price paid per share | Shares remaining under repurchase authorization as of June 30, 2019 | |||||||||
0.2 | $ | 11.9 | $ | 57.94 | 3.6 |
Effective dates | Notional amount | Fixed rates | ||||
March 31, 2017 through March 31, 2022 | $ | 200.0 | 2.08% | |||
September 29, 2017 through September 30, 2021 | $ | 200.0 | 1.69% | |||
April 30, 2018 through April 30, 2023 | $ | 250.0 | 2.61% | |||
January 31, 2019 through January 31, 2023 | $ | 300.0 | 2.65% |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program(1) | Maximum Number of Shares That May Yet Be Purchased Under the Program(2) | |||||||||
April | — | $ | — | — | 3,809,879 | ||||||||
May | 105,000 | 55.77 | 105,000 | 3,704,879 | |||||||||
June | 100,000 | 60.21 | 100,000 | 3,604,879 | |||||||||
Total | 205,000 | $ | 57.94 | 205,000 |
(1) | On January 31, 2017, our board of directors authorized a three-year share repurchase program, effective February 3, 2017, under which we may repurchase up to 10 million shares of Black Knight Financial Services, Inc. ("BKFS") Class A common stock through February 2, 2020, through open market purchases, negotiated transactions or other means, in accordance with applicable securities laws and other restrictions. In connection with our spin-off from FNF, our board of directors approved a share repurchase program authorizing the repurchase of shares of Black Knight, Inc. common stock consistent with the previous BKFS share repurchase program. |
(2) | As of the last day of the applicable month. |
Exhibit | ||
No. | Description | |
3.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | XBRL Instance Document* | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
BLACK KNIGHT, INC. (registrant) | ||||
Date: | August 6, 2019 | By: | /s/ Kirk T. Larsen | |
Kirk T. Larsen | ||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||
Date: | August 6, 2019 | By: | /s/ Michele M. Meyers | |
Michele M. Meyers | ||||
Chief Accounting Officer and Treasurer (Principal Accounting Officer) |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Anthony M. Jabbour | |
Anthony M. Jabbour Chief Executive Officer |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Kirk T. Larsen | |
Kirk T. Larsen Executive Vice President and Chief Financial Officer |
1. | The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934. |
2. | The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ Anthony M. Jabbour | |
Anthony M. Jabbour | ||
Chief Executive Officer |
1. | The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934. |
2. | The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ Kirk T. Larsen | |
Kirk T. Larsen | ||
Executive Vice President and Chief Financial Officer |
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 550,000,000 | 550,000,000 |
Common stock, share issued | 153,085,116 | 153,241,851 |
Common stock, shares outstanding | 149,674,814 | 149,358,973 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock | 3,410,302 | 3,882,878 |
Condensed Consolidated Statements of Earnings and Comprehensive Earnings - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|||||||||
Income Statement [Abstract] | ||||||||||||
Revenues | $ 294.9 | $ 276.6 | $ 578.0 | $ 546.9 | ||||||||
Expenses: | ||||||||||||
Operating expenses | 159.4 | 155.4 | 319.4 | 304.8 | ||||||||
Depreciation and amortization | 57.5 | 53.6 | 114.4 | 105.0 | ||||||||
Transition and integration costs | 1.0 | 1.2 | 1.9 | 2.5 | ||||||||
Total expenses | 217.9 | 210.2 | 435.7 | 412.3 | ||||||||
Operating income (loss) | 77.0 | 66.4 | 142.3 | 134.6 | ||||||||
Other income and expense: | ||||||||||||
Interest expense | (16.7) | (13.1) | (31.7) | (25.9) | ||||||||
Other expense, net | (0.5) | (6.2) | (0.8) | (6.4) | ||||||||
Total other expense, net | (17.2) | (19.3) | (32.5) | (32.3) | ||||||||
Earnings before income taxes and equity in losses of unconsolidated affiliates | 59.8 | 47.1 | 109.8 | 102.3 | ||||||||
Income tax expense | 14.5 | 7.1 | 25.2 | 19.6 | ||||||||
Earnings before equity in losses of unconsolidated affiliates | 45.3 | 40.0 | 84.6 | 82.7 | ||||||||
Equity in losses of unconsolidated affiliates, net of tax | (13.4) | 0.0 | (13.4) | 0.0 | ||||||||
Net earnings | 31.9 | 40.0 | 71.2 | 82.7 | ||||||||
Unrealized holding gains, net of tax | (11.8) | [1] | 3.4 | [1] | (18.0) | 8.1 | ||||||
Reclassification adjustments for losses included in net earnings, net of tax | (0.3) | [2] | (0.5) | [2] | (1.0) | [1] | (0.8) | [1] | ||||
Total unrealized (losses) gains on interest rate swaps, net of tax | (12.1) | 2.9 | (19.0) | [2] | 7.3 | [2] | ||||||
Foreign currency translation adjustment | 0.0 | (0.3) | 0.0 | (0.3) | ||||||||
Unrealized loss on investments in unconsolidated affiliates | (0.2) | 0.0 | (0.2) | 0.0 | ||||||||
Other comprehensive (loss) earnings | (12.3) | 2.6 | (19.2) | 7.0 | ||||||||
Comprehensive earnings | $ 19.6 | $ 42.6 | $ 52.0 | $ 89.7 | ||||||||
Net earnings per share: | ||||||||||||
Basic (in dollars per share) | $ 0.22 | $ 0.27 | $ 0.48 | $ 0.56 | ||||||||
Diluted (in dollars per share) | $ 0.21 | $ 0.27 | $ 0.48 | $ 0.56 | ||||||||
Weighted average shares of common stock outstanding (Note 3): | ||||||||||||
Basic (in shares) | 147.7 | 147.1 | 147.6 | 148.0 | ||||||||
Diluted (in shares) | 148.5 | 147.7 | 148.4 | 148.4 | ||||||||
Derivatives qualifying as hedges, tax | $ (4.1) | $ 1.0 | $ (6.3) | $ 2.6 | ||||||||
Reclassification adjustment from AOCI on derivatives, tax | $ 0.1 | 0.2 | $ 0.4 | 0.3 | ||||||||
Foreign currency translation adjustment, tax benefit | $ 0.1 | $ 0.1 | ||||||||||
|
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Cash flows from operating activities: | ||
Net earnings | $ 71.2 | $ 82.7 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 114.4 | 105.0 |
Amortization of debt issuance costs and original issue discount | 1.4 | 1.6 |
Loss on extinguishment of debt, net | 0.0 | (5.8) |
Deferred income taxes, net | 1.0 | 3.6 |
Equity in losses of unconsolidated affiliates, net of tax | 13.4 | 0.0 |
Equity-based compensation | 25.4 | 19.9 |
Changes in assets and liabilities, net of acquired assets and liabilities: | ||
Trade and other receivables, including receivables from related parties | 0.7 | 44.3 |
Prepaid expenses and other assets | (10.5) | (44.9) |
Deferred contract costs | (20.9) | (23.5) |
Deferred revenues | (11.3) | (1.5) |
Trade accounts payable and other liabilities | (56.7) | 17.0 |
Net cash provided by operating activities | 128.1 | 210.0 |
Cash flows from investing activities: | ||
Additions to property and equipment | (4.8) | (14.5) |
Additions to computer software | (40.6) | (37.5) |
Business acquisition, net of cash acquired | 0.0 | (6.0) |
Investment in unconsolidated affiliate | (375.0) | 0.0 |
Net cash used in investing activities | (420.4) | (58.0) |
Cash flows from financing activities: | ||
Revolver borrowings | 611.8 | 481.5 |
Revolver payments | (290.8) | (340.0) |
Term loan borrowings | 0.0 | 258.6 |
Term loan payments | (15.6) | (402.9) |
Purchases of treasury stock | (11.9) | (141.5) |
Tax withholding payments for restricted share vesting | (12.2) | (6.7) |
Debt issuance costs | 0.0 | (5.8) |
Net cash provided by (used in) financing activities | 281.3 | (156.8) |
Net decrease in cash and cash equivalents | (11.0) | (4.8) |
Cash and cash equivalents, beginning of period | 20.3 | 16.2 |
Cash and cash equivalents, end of period | 9.3 | 11.4 |
Supplemental cash flow information: | ||
Interest paid, net | (29.4) | (24.5) |
Income taxes paid, net | $ (27.7) | $ (10.0) |
Basis of Presentation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements (Unaudited) of Black Knight, Inc. and its subsidiaries ("Black Knight," the "Company," "we," "us" or "our") were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), and all adjustments considered necessary for a fair presentation have been included. All significant intercompany accounts and transactions have been eliminated. The preparation of these Condensed Consolidated Financial Statements (Unaudited) in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements (Unaudited), as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission ("SEC") on February 22, 2019 and other filings with the SEC. Description of Business We are a leading provider of integrated software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals. Our solutions facilitate and automate many of the mission-critical business processes across the homeownership lifecycle. We believe we differentiate ourselves by the breadth and depth of our comprehensive, integrated solutions and the insight we provide to our clients. Reporting Segments We conduct our operations through two reporting segments: (1) Software Solutions and (2) Data and Analytics. See further discussion in Note 12 — Segment Information. Share Repurchase Program For the six months ended June 30, 2019, a summary of share repurchases under our share repurchase program is as follows (in millions, except per share amounts):
Reclassifications Certain reclassifications have been made to the prior year amounts to conform to the classifications used in 2019. Investments in unconsolidated affiliates and Deferred contract costs, net were previously included in Other non-current assets in our Condensed Consolidated Balance Sheets (Unaudited). Revolver payments and Term loan payments were previously combined in Debt repayments in our Condensed Consolidated Statements of Cash Flows (Unaudited). Revolver borrowings and Term loan borrowings were previously combined in Borrowings in our Condensed Consolidated Statements of Cash Flows (Unaudited). Cash and Cash Equivalents Cash and cash equivalents include the following (in millions):
As of June 30, 2019 and December 31, 2018, we did not have any restricted cash and cash equivalents. Trade Receivables, Net A summary of Trade receivables, net of allowance for doubtful accounts is as follows (in millions):
In addition to the amounts above, we have unbilled receivables that we do not expect to collect within the next year included in Other non-current assets in our Condensed Consolidated Balance Sheets (Unaudited). Billings for these receivables are based on contractual terms. Refer to Note 5 — Other Non-Current Assets. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consists of the following (in millions):
Contract Assets Our short-term contract assets, including related party contract assets, are included in Prepaid expenses and other current assets in our Condensed Consolidated Balance Sheets (Unaudited). Refer to Note 4 — Related Party Transactions. Our long-term contract assets are included in Other non-current assets in our Condensed Consolidated Balance Sheets (Unaudited). Refer to Note 5 — Other Non-Current Assets. There were no impairment charges related to contract assets for the three and six months ended June 30, 2019 and 2018. Investments in Unconsolidated Affiliates We account for our investments in unconsolidated affiliates using the equity method of accounting. We have elected to record our share of equity in earnings (losses) of unconsolidated affiliates on a one-quarter lag based on the most recently available financial statements. Refer to Note 2— Investments in Unconsolidated Affiliates. Deferred Revenues Deferred revenues represent our obligation to transfer products or services to our client for which we have received consideration, or an amount of consideration is due, from the client. During the six months ended June 30, 2019 and 2018, revenues recognized related to the amount included in the Deferred revenues balance at the beginning of each period were $32.6 million and $28.8 million, respectively. Depreciation and Amortization Depreciation and amortization includes the following (in millions):
Computer software amortization for the three months ended June 30, 2018 includes accelerated amortization of $1.0 million related to certain internally developed software. Deferred contract costs amortization for the three months ended June 30, 2019 and 2018 includes accelerated amortization of $1.9 million and $1.0 million, respectively. Deferred contract costs amortization for the six months ended June 30, 2019 and 2018 includes accelerated amortization of $3.6 million and $2.5 million, respectively. Transition and Integration Costs Transition and integration costs during the three and six months ended June 30, 2019 primarily consisted of acquisition-related costs. Transition and integration costs during the three months and six ended June 30, 2018 primarily consisted of transition-related costs as we transferred certain corporate functions from Fidelity National Financial, Inc. ("FNF"), legal and professional fees related to secondary offerings by certain affiliates of Thomas H. Lee Partners, L.P. ("THL") and acquisition-related costs. Recent Accounting Pronouncements Leases (ASC Topic 842, Leases ("ASC 842")) In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) as well as several other related updates, which were codified as ASC 842. On January 1, 2019, we adopted this update using the effective date transition method. The reported results for the three and six months ended June 30, 2019 reflect the application of ASC 842, while the comparative information has not been restated and continues to be reported under the related lease accounting standards in effect for those periods. The adoption of this update represents a change in accounting principle and resulted in the recognition of right-of-use assets and lease liabilities of $28.9 million on January 1, 2019. We elected the package of practical expedients, which permits us to leverage our prior conclusions about lease identification, lease classification and initial direct costs incurred. We also elected the practical expedient to combine lease and non-lease components when determining the value of right-of-use assets and lease liabilities, as well as the practical expedient to exclude leases with an initial term of 12 months or less. The primary effect of adopting this update relates to the recognition of our operating leases on our Condensed Consolidated Balance Sheets (Unaudited) and providing additional disclosures about our leasing activities. As of January 1, 2019 and June 30, 2019, we did not have any finance leases. Refer to Note 5 — Other Non-Current Assets and Note 9 — Commitments and Contingencies for additional disclosures related to our leasing activities. Other Accounting Pronouncements In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815). This update expands the permissible benchmark interest rates to include the Secured Overnight Financing Rate and the Overnight Index Swap Rate as benchmark interest rates for hedge accounting purposes. For entities that have not already adopted ASU 2017-12, the guidance in this update is required to be adopted concurrently with ASU 2017-12. This update is required to be applied prospectively to qualifying new or redesignated hedging relationships entered into on and after the date of adoption. We continue to monitor developments related to the London Interbank Offered Rate ("LIBOR") transition date and effects it may have on our strategy, systems and processes. Interest rates related to our credit agreement are based on the Eurodollar rate, which is based on LIBOR. The terms of our interest rate swap agreements are also based on LIBOR. We do not expect the adoption of this update to have a material effect on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This update more closely aligns the accounting treatment of implementation costs for cloud solutions to the treatment of costs to develop or obtain internal-use software. Costs incurred during the planning and post-implementation stages are typically expensed, while costs incurred during the development stage are typically capitalized. The capitalized implementation costs are to be expensed over the term of the hosting arrangement including renewal options to the extent those options are expected to be utilized. This update also requires the capitalized implementation costs to be presented in the consolidated financial statements consistent with the presentation of the ongoing fees and payments associated with the cloud arrangement. We adopted this update on January 1, 2019 and applied its amendments prospectively. This update did not have a material effect on our Condensed Consolidated Financial Statements (Unaudited) and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update allows for a reclassification from accumulated other comprehensive earnings to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform Act"). We adopted this update on January 1, 2019 and reclassified $1.0 million from Accumulated other comprehensive (loss) earnings to Retained earnings.
|
Investments In Unconsolidated Affiliates (Notes) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates On August 8, 2018, an investment consortium (the “Consortium”) including Cannae Holdings, Inc. (“Cannae”), CC Capital Partners LLC, Bilcar, LLC and funds associated with THL along with other investors entered into equity commitments in connection with the acquisition of The Dun & Bradstreet Corporation, a Delaware corporation ("Dun & Bradstreet" or "D&B"). Contemporaneously, Dun & Bradstreet entered into an Agreement and Plan of Merger (the "Merger Agreement") by and among Dun & Bradstreet, Star Parent, L.P., a Delaware limited partnership ("Star Parent"), and Star Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Star Parent ("Merger Sub"), pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub would merge with and into Dun & Bradstreet (the "Merger"), with Dun & Bradstreet surviving the Merger as a wholly-owned subsidiary of Star Parent (the "D&B Acquisition"). On January 24, 2019, we entered into an Assignment and Investment Agreement with QIA FIG Holding LLC, Cannae, and Star Parent in connection with our $375.0 million investment as part of the Consortium. On February 8, 2019, the Consortium completed the previously announced D&B Acquisition for $145.00 in cash for each share of D&B common stock then outstanding, which included our $375.0 million investment in Star Parent (the "D&B Investment") funded through a borrowing on our revolving credit facility. In connection with the closing, we were issued certain limited partner interests in Star Parent, representing approximately 18.1% of the outstanding common equity of Star Parent. On July 1, 2019, we invested an additional $17.6 million in Star Parent in exchange for our pro-rata share of additional limited partner interests issued by Star Parent related to D&B's acquisition of Lattice Engines, Inc. D&B is a global leader in commercial data and analytics that provides various services helping companies improve their operational performance. Variable Interest Entities Variable interest entities ("VIEs") are legal entities in which the equity investors as a group lack any of the characteristics of a controlling interest. The primary beneficiary of a VIE is generally the entity with the power to direct the activities that most significantly affect the VIE's economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. We have variable interests in Star Parent, but we are not the primary beneficiary of Star Parent. We are a limited partner and do not have the power to direct the activities that most significantly affect Star Parent's economic performance. We do not provide any implicit or explicit liquidity guarantees or principal value guarantees to Star Parent. Our maximum exposure related to our variable interests in Star Parent is limited to our investment and commitments we may enter into from time to time to maintain our pro-rata share of limited partner interests. The table below summarizes the carrying amount of our D&B Investment and our maximum exposure related to our variable interests in Star Parent (in millions):
_______________________________________________________ (1) Our maximum exposure includes our commitment entered into on June 26, 2019 for an additional investment of $17.6 million made on July 1, 2019. We do not consolidate Star Parent because we are not the primary beneficiary. We account for our D&B Investment as an equity method investment, which results in our initial investment being recorded within Investments in unconsolidated affiliates on our Condensed Consolidated Balance Sheets (Unaudited). We record our equity in earnings (losses) of Star Parent on a one-quarter lag, based on the most recently available consolidated financial statements of Star Parent. Accordingly, our Net earnings for the three and six months ended June 30, 2019 in our Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) include our equity in losses of Star Parent for the period from February 8, 2019 through March 31, 2019. Summarized consolidated financial information for Star Parent is presented below for the period subsequent to our D&B Investment (in millions):
The summarized consolidated financial information for Star Parent was derived from the unaudited consolidated financial information of Star Parent as of March 31, 2019 and for the period February 8, 2019 to March 31, 2019. During the three and six months ended June 30, 2019, we recorded equity in losses related to our D&B Investment of $13.3 million, net of income tax benefit of $4.7 million.
|
Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Diluted net earnings per share includes the effect of unvested restricted stock awards. The following table sets forth the computation of basic and diluted net earnings per share (in millions, except per share amounts):
|
Related Party Transactions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions We are party to certain related party agreements, including certain agreements with FNF and D&B. FNF no longer has an ownership interest in us; however, FNF is still considered a related party primarily due to the combination of certain shared board members, members of senior management and various agreements. On February 8, 2019, we completed our D&B Investment. Refer to Note 2—Investments in Unconsolidated Affiliates. Concurrent with the closing of the D&B Acquisition, our Chief Executive Officer ("CEO") began serving as CEO of D&B. As of February 8, 2019, D&B is considered a related party primarily due to the D&B Investment and the combination of certain shared board members and our CEO. On July 1, 2019, we invested an additional $17.6 million in Star Parent related to D&B's acquisition of Lattice Engines, Inc. We were party to certain related party agreements with THL until May 11, 2018, the date of an underwritten secondary offering of shares of our common stock by affiliates of THL. As a result of this offering, affiliates of THL no longer have an ownership interest in us and are no longer considered related parties. A summary of underwritten secondary offerings of shares of our common stock by affiliates of THL is as follows (in millions):
We did not sell any shares and did not receive any proceeds in these underwritten secondary offerings. Transactions with FNF are described below. FNF We have various agreements with FNF to provide software, data and analytics services, as well as corporate shared services and information technology. We are also a party to certain other agreements under which we incur other expenses or receive revenues from FNF. A detail of the revenues and expenses, net from FNF is set forth in the table below (in millions):
Condensed Consolidated Statements of Earnings and Comprehensive Earnings A detail of related party items included in Revenues is as follows (in millions):
A detail of related party items included in Operating expenses (net of expense reimbursements) is as follows (in millions):
Condensed Consolidated Balance Sheets As of June 30, 2019 and December 31, 2018, related party contract assets were $5.1 million and $4.8 million, respectively, and are included in Prepaid expenses and other current assets in our Condensed Consolidated Balance Sheets (Unaudited). As of June 30, 2019 and December 31, 2018, related party deferred revenues were $2.2 million and $0.1 million, respectively, and are included in Deferred revenues (current) in our Condensed Consolidated Balance Sheets (Unaudited). We believe the amounts earned from or charged by us under each of the foregoing arrangements are fair and reasonable. We believe our service arrangements are priced within the range of prices we offer to third parties, except for certain corporate services provided to FNF and certain corporate services provided by FNF, which are at cost. However, the amounts we earned or that were charged under certain arrangements were not negotiated at arm's length, and may not represent the terms that we might have obtained from an unrelated third party.
|
Other Non-Current Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Current Assets | Other Non-Current Assets Other non-current assets consists of the following (in millions):
|
Long-Term Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in millions):
As of June 30, 2019, principal maturities are as follows (in millions):
2018 Credit Agreement On April 30, 2018, our indirect subsidiary, Black Knight InfoServ, LLC ("BKIS") entered into an amended and restated credit and guaranty agreement (the “2018 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent, the guarantors party thereto, the other agents party thereto and the lenders party thereto. The 2018 Credit Agreement provides for (i) a $1,250.0 million term loan A facility (the “2018 Term A Loan”) and (ii) a $750.0 million revolving credit facility (the “2018 Revolving Credit Facility” and, together with the 2018 Term A Loan, collectively, the “2018 Facilities”), the proceeds of which were used to repay in full the previous term loan A facility, term loan B facility and revolving credit facility. For the six months ended June 30, 2018, the amount included in Other expense, net on our Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) related to the April 30, 2018 refinancing was $5.8 million. As of June 30, 2019, the interest rates on the 2018 Term A Loan and the 2018 Revolving Credit Facility were based on the Eurodollar rate plus a margin of 150 basis points and were approximately 3.90% and 3.92%, respectively. As of June 30, 2019, we had $346.5 million capacity on the 2018 Revolving Credit Facility and paid an unused commitment fee of 20 basis points. The 2018 Facilities are guaranteed by all of BKIS’s wholly-owned domestic restricted subsidiaries and Black Knight Financial Services, LLC, a Delaware limited liability company and the direct parent company of BKIS, and are secured by associated collateral agreements that pledge a lien on substantially all of BKIS’s assets, including fixed assets and intangibles, and the assets of the guarantors, in each case, subject to customary exceptions. Other Debt On April 1, 2018, we entered into a financing agreement for $32.9 million, with a stated interest rate of 0% and an imputed interest rate of 3.44%, primarily related to certain data processing and maintenance services. Quarterly payments commenced on January 1, 2019 and continue through April 1, 2020. Fair Value of Long-Term Debt The fair value of our 2018 Facilities approximates their carrying value at June 30, 2019. The fair value of our 2018 Facilities is based upon established market prices for the securities using level 2 inputs. Interest Rate Swaps We enter into interest rate swap agreements to hedge forecasted monthly interest rate payments on our floating rate debt. As of June 30, 2019, we had the following interest rate swap agreements (collectively, the "Swap Agreements") (in millions):
Under the terms of the Swap Agreements, we receive payments based on the 1-month LIBOR rate (approximately 2.40% as of June 30, 2019). During the six months ended June 30, 2019, the following interest rate swap agreements expired (in millions):
We entered into the Swap Agreements to convert a portion of the interest rate exposure on our floating rate debt from variable to fixed. We designated these Swap Agreements as cash flow hedges. A portion of the amount included in Accumulated other comprehensive (loss) earnings is reclassified into Interest expense, net as a yield adjustment as interest payments are made on the hedged debt. The fair value of our Swap Agreements is based upon level 2 inputs. We have considered our own credit risk and the credit risk of the counterparties when determining the fair value of our Swap Agreements. It is our policy to execute such instruments with creditworthy banks and not to enter into derivative financial instruments for speculative purposes. We believe our interest rate swap counterparties will be able to fulfill their obligations under our agreements, and we believe we will have debt outstanding through the various expiration dates of the swaps such that the occurrence of future cash flow hedges remains probable. The estimated fair values of our Swap Agreements are as follows (in millions):
A cumulative loss of $23.5 million ($17.4 million net of tax) and cumulative gain of $2.2 million ($1.6 million net of tax) is reflected in Accumulated other comprehensive (loss) earnings as of June 30, 2019 and December 31, 2018, respectively. Below is a summary of the effect of derivative instruments on amounts recognized in Other comprehensive (loss) earnings ("OCE") on the accompanying Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) (in millions):
Approximately $4.5 million ($3.3 million net of tax) of the balance in Accumulated other comprehensive (loss) earnings as of June 30, 2019 is expected to be reclassified into Interest expense, net over the next 12 months.
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair Value of Financial Assets and Liabilities Fair value represents the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of financial assets and liabilities are determined using the following fair value hierarchy:
Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. We believe our valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in millions):
|
Income Taxes |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the three months ended June 30, 2019 and 2018 was 24.2% and 15.1%, respectively, and 23.0% and 19.2% for the six months ended June 30, 2019 and 2018, respectively. Our effective tax rate for the three and six months ended June 30, 2019 differs from our statutory rate of 26% primarily due to the effect of tax benefits related to the vesting of restricted shares of our common stock and research and development tax credits. Our effective tax rate for the three and six months ended June 30, 2018 differs from our statutory rate primarily due to the effect of a deferred tax revaluation adjustment as a result of a reduction in our blended state tax rate and higher than expected tax credits. Our effective tax rate for six months ended June 30, 2018 also includes the effect of tax benefits related to the vesting of restricted shares of our common stock.
|
Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Legal and Regulatory Matters In the ordinary course of business, we are involved in various pending and threatened litigation and regulatory matters related to our operations, some of which include claims for punitive or exemplary damages. Our ordinary course litigation may include class action lawsuits, which make allegations related to various aspects of our business. From time to time, we also receive requests for information from various state and federal regulatory authorities, some of which take the form of civil investigative demands or subpoenas. Some of these regulatory inquiries may result in the assessment of fines for violations of regulations or settlements with such authorities requiring a variety of remedies. We believe that none of these actions depart from customary litigation or regulatory inquiries incidental to our business. We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings where it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate has been recorded. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending cases is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period if an unfavorable outcome results, at present we do not believe the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. Indemnifications and Warranties We often agree to indemnify our clients against damages and costs resulting from claims of patent, copyright, trademark infringement or breaches of confidentiality associated with use of our software through software licensing agreements. Historically, we have not made any payments under such indemnifications, but continue to monitor the conditions that are subject to the indemnifications to identify whether a loss has occurred that is both probable and estimable that would require recognition. In addition, we warrant to clients that our software operates substantially in accordance with the software specifications. Historically, no costs have been incurred related to software warranties and none are expected in the future, and as such, no accruals for warranty costs have been made. Indemnification Agreement We are party to a cross-indemnity agreement dated December 22, 2014 with ServiceLink Holdings, LLC ("ServiceLink"). Pursuant to this agreement, ServiceLink indemnifies us from liabilities relating to, arising out of or resulting from the conduct of ServiceLink's business or any action, suit or proceeding in which we or any of our subsidiaries are named by reason of being a successor to the business of Lender Processing Services, Inc. and the cause of such action, suit or proceeding relates to the business of ServiceLink. In return, we indemnify ServiceLink for liabilities relating to, arising out of or resulting from the conduct of our business. Operating Leases We have operating leases for corporate offices, data centers and certain equipment. Our leases have remaining lease terms of up to six years, some of which include escalation clauses, renewal options for up to five years or termination options within one year. We determine if an arrangement is a lease at contract inception. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments according to the arrangement. Operating lease right-of-use assets and lease liabilities are recognized as of the commencement date based on the present value of the lease payments over the lease term. We use the implicit rate when it is readily determinable. Otherwise, we use our incremental borrowing rate based on the information available as of the commencement date in determining the present value of lease payments. The lease term we use for the valuation of our right-of-use assets and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense is recognized on a straight-line basis over the expected lease term. Right-of-use assets and lease liabilities are recognized for our leases. Right-of-use assets are included in Other non-current assets in the Condensed Consolidated Balance Sheets (Unaudited). Refer to Note 5 — Other Non-Current Assets. Lease liabilities are included in the Condensed Consolidated Balance Sheets (Unaudited) as follows (in millions):
As of June 30, 2019, maturities of lease liabilities were as follows (in millions):
As of December 31, 2018, minimum operating lease payments for leases with initial or remaining terms greater than one year were as follows:
As of June 30, 2019, we have operating leases that have not yet commenced with minimum operating lease payments totaling $4.4 million. These operating leases commence during 2019 and have lease terms ranging from two years to five years. Supplemental information related to leases is as follows (in millions, except lease term and discount rate):
_______________________________________________________ (1) Includes short-term and variable lease costs.
|
Revenues |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues Disaggregation of Revenues The following tables summarize revenues from contracts with clients (in millions):
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
Our Software Solutions segment offers leading software and hosting solutions that facilitate and automate many of the mission- critical business processes across the homeownership lifecycle. These solutions primarily consist of processing and workflow management software applications. Our servicing software solutions primarily include our core servicing software solution that automates loan servicing, including loan setup and ongoing processing, customer service, accounting, reporting to the secondary mortgage market and investors and web-based workflow information systems. Our origination software solutions primarily include our solutions that automate and facilitate the origination of mortgage loans and provide an interconnected network allowing the various parties and systems associated with lending transactions to exchange data quickly and efficiently. Professional services consists of pre-implementation and post-implementation support and services and are primarily billed on a time and materials basis. Professional services may also include dedicated teams provided as part of agreements with software and hosting solutions clients. Our Data and Analytics segment offers data and analytics solutions to the mortgage, real estate and capital markets verticals. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, behavioral models, a multiple listing service software solution and other data solutions. Transaction Price Allocated to Future Performance Obligation Our disclosure of transaction price allocated to these future performance obligations excludes the following:
As of June 30, 2019, the aggregate amount of the transaction price that is allocated to our future performance obligations was approximately $1.9 billion and is expected to be recognized as follows: 13% by December 31, 2019, 56% by December 31, 2021, 85% by December 31, 2023 and the rest thereafter.
|
Equity-Based Compensation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-Based Compensation | Equity-Based Compensation A summary of restricted shares granted in 2019 is as follows:
Restricted stock transactions in 2019 are as follows:
Equity-based compensation expense was $12.1 million and $12.2 million for the three months ended June 30, 2019 and 2018, respectively. Equity-based compensation was $25.4 million and $19.9 million for the six months ended June 30, 2019 and 2018, respectively. Equity-based compensation includes accelerated recognition of $1.9 million for the six months ended June 30, 2019. These expenses are included in Operating expenses in the Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited). Total unrecognized compensation cost was $55.7 million as of June 30, 2019 and is expected to be recognized over a weighted average period of approximately 1.5 years. In July 2019, we accelerated recognition of $1.0 million of equity-based compensation expense.
|
Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information ASC Topic 280, Segment Reporting ("ASC 280") establishes standards for reporting information about segments and requires that a public business enterprise reports financial and descriptive information about its segments. Segments are components of an enterprise for which separate financial information is available and are evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our chief executive officer is identified as the CODM as defined by ASC 280. To align with the internal management of our business operations based on service offerings, our business is organized into two segments. Refer to Note 10 — Revenues for a description of our Software Solutions and Data and Analytics segments. Separate discrete financial information is available for these two segments, and the operating results of each segment are regularly evaluated by the CODM in order to assess performance and allocate resources. We use EBITDA as the primary profitability measure for making decisions regarding ongoing operations. EBITDA is earnings before Interest expense, net, Income tax expense and Depreciation and amortization. It also excludes Equity in earnings (losses) of unconsolidated affiliates. We do not allocate Interest expense, net, Other expense, net, Income tax expense, equity-based compensation and certain other items, such as purchase accounting adjustments and acquisition-related costs to the segments, since these items are not considered in evaluating the segments' overall operating performance. Summarized financial information concerning our segments is shown in the tables below (in millions):
(1) Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. (2) Operating expenses for Corporate and Other includes $12.2 million of equity-based compensation, including certain related payroll taxes. (3) Transition and integration costs primarily consists of acquisition-related costs, including ongoing costs pursuant to a purchase agreement. (4) Depreciation and amortization for Corporate and Other primarily represents net incremental depreciation and amortization adjustments associated with the application of purchase accounting recorded in accordance with GAAP.
_______________________________________________________
(2) Operating expenses for Corporate and Other includes $12.2 million of equity-based compensation, including certain related payroll taxes. (3) Transition and integration costs primarily represent transition-related costs as we transferred certain corporate functions from FNF, legal and professional fees related to secondary offerings by certain affiliates of THL and acquisition-related costs, including ongoing costs pursuant to a purchase agreement.
_______________________________________________________
(2) Operating expenses for Corporate and Other includes $26.1 million of equity-based compensation, including certain related payroll taxes. (3) Transition and integration costs primarily consists of acquisition-related costs, including ongoing costs pursuant to a purchase agreement.
_______________________________________________________
(3) Transition and integration costs primarily represent transition-related costs as we transferred certain corporate functions from FNF, legal and professional fees related to secondary offerings by certain affiliates of THL and acquisition-related costs, including ongoing costs pursuant to a purchase agreement.
(5) Receivables from related parties are included in Corporate and Other.
|
Basis of Presentation (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying Condensed Consolidated Financial Statements (Unaudited) of Black Knight, Inc. and its subsidiaries ("Black Knight," the "Company," "we," "us" or "our") were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), and all adjustments considered necessary for a fair presentation have been included. |
Use of Estimates | The preparation of these Condensed Consolidated Financial Statements (Unaudited) in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements (Unaudited), as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Reportable Segments | Reporting Segments We conduct our operations through two reporting segments: (1) Software Solutions and (2) Data and Analytics. See further discussion in Note 12 — Segment Information.
|
Consolidation | All significant intercompany accounts and transactions have been eliminated. |
Share Repurchase Program | Share Repurchase Program
|
Reclassification | Reclassifications Certain reclassifications have been made to the prior year amounts to conform to the classifications used in 2019.
|
Transition and Integration Costs | Transition and Integration Costs Transition and integration costs during the three and six months ended June 30, 2019 primarily consisted of acquisition-related costs. Transition and integration costs during the three months and six ended June 30, 2018 primarily consisted of transition-related costs as we transferred certain corporate functions from Fidelity National Financial, Inc. ("FNF"), legal and professional fees related to secondary offerings by certain affiliates of Thomas H. Lee Partners, L.P. ("THL") and acquisition-related costs.
|
Recent Accounting Pronouncements | Recent Accounting Pronouncements Leases (ASC Topic 842, Leases ("ASC 842")) In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) as well as several other related updates, which were codified as ASC 842. On January 1, 2019, we adopted this update using the effective date transition method. The reported results for the three and six months ended June 30, 2019 reflect the application of ASC 842, while the comparative information has not been restated and continues to be reported under the related lease accounting standards in effect for those periods. The adoption of this update represents a change in accounting principle and resulted in the recognition of right-of-use assets and lease liabilities of $28.9 million on January 1, 2019. We elected the package of practical expedients, which permits us to leverage our prior conclusions about lease identification, lease classification and initial direct costs incurred. We also elected the practical expedient to combine lease and non-lease components when determining the value of right-of-use assets and lease liabilities, as well as the practical expedient to exclude leases with an initial term of 12 months or less. The primary effect of adopting this update relates to the recognition of our operating leases on our Condensed Consolidated Balance Sheets (Unaudited) and providing additional disclosures about our leasing activities. As of January 1, 2019 and June 30, 2019, we did not have any finance leases. Refer to Note 5 — Other Non-Current Assets and Note 9 — Commitments and Contingencies for additional disclosures related to our leasing activities. Other Accounting Pronouncements In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815). This update expands the permissible benchmark interest rates to include the Secured Overnight Financing Rate and the Overnight Index Swap Rate as benchmark interest rates for hedge accounting purposes. For entities that have not already adopted ASU 2017-12, the guidance in this update is required to be adopted concurrently with ASU 2017-12. This update is required to be applied prospectively to qualifying new or redesignated hedging relationships entered into on and after the date of adoption. We continue to monitor developments related to the London Interbank Offered Rate ("LIBOR") transition date and effects it may have on our strategy, systems and processes. Interest rates related to our credit agreement are based on the Eurodollar rate, which is based on LIBOR. The terms of our interest rate swap agreements are also based on LIBOR. We do not expect the adoption of this update to have a material effect on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This update more closely aligns the accounting treatment of implementation costs for cloud solutions to the treatment of costs to develop or obtain internal-use software. Costs incurred during the planning and post-implementation stages are typically expensed, while costs incurred during the development stage are typically capitalized. The capitalized implementation costs are to be expensed over the term of the hosting arrangement including renewal options to the extent those options are expected to be utilized. This update also requires the capitalized implementation costs to be presented in the consolidated financial statements consistent with the presentation of the ongoing fees and payments associated with the cloud arrangement. We adopted this update on January 1, 2019 and applied its amendments prospectively. This update did not have a material effect on our Condensed Consolidated Financial Statements (Unaudited) and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update allows for a reclassification from accumulated other comprehensive earnings to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform Act"). We adopted this update on January 1, 2019 and reclassified $1.0 million from Accumulated other comprehensive (loss) earnings to Retained earnings.
|
Basis of Presentation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchase Agreements | For the six months ended June 30, 2019, a summary of share repurchases under our share repurchase program is as follows (in millions, except per share amounts):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | Cash and cash equivalents include the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Receivables, Net | A summary of Trade receivables, net of allowance for doubtful accounts is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Depreciation and Amortization | Depreciation and amortization includes the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consists of the following (in millions):
|
Investments In Unconsolidated Affiliates (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated VIEs | The table below summarizes the carrying amount of our D&B Investment and our maximum exposure related to our variable interests in Star Parent (in millions):
_______________________________________________________ (1) Our maximum exposure includes our commitment entered into on June 26, 2019 for an additional investment of $17.6 million made on July 1, 2019. We do not consolidate Star Parent because we are not the primary beneficiary. We account for our D&B Investment as an equity method investment, which results in our initial investment being recorded within Investments in unconsolidated affiliates on our Condensed Consolidated Balance Sheets (Unaudited). We record our equity in earnings (losses) of Star Parent on a one-quarter lag, based on the most recently available consolidated financial statements of Star Parent. Accordingly, our Net earnings for the three and six months ended June 30, 2019 in our Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) include our equity in losses of Star Parent for the period from February 8, 2019 through March 31, 2019. Summarized consolidated financial information for Star Parent is presented below for the period subsequent to our D&B Investment (in millions):
The summarized consolidated financial information for Star Parent was derived from the unaudited consolidated financial information of Star Parent as of March 31, 2019 and for the period February 8, 2019 to March 31, 2019. During the three and six months ended June 30, 2019, we recorded equity in losses related to our D&B Investment of $13.3 million, net of income tax benefit of $4.7 million.
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted net earnings per share (in millions, except per share amounts):
|
Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party items | A detail of related party items included in Revenues is as follows (in millions):
A detail of related party items included in Operating expenses (net of expense reimbursements) is as follows (in millions):
A detail of the revenues and expenses, net from FNF is set forth in the table below (in millions):
A summary of underwritten secondary offerings of shares of our common stock by affiliates of THL is as follows (in millions):
|
Other Non-Current Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Current Assets | Other non-current assets consists of the following (in millions):
|
Long-Term Debt Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consists of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | s of June 30, 2019, principal maturities are as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | As of June 30, 2019, we had the following interest rate swap agreements (collectively, the "Swap Agreements") (in millions):
Under the terms of the Swap Agreements, we receive payments based on the 1-month LIBOR rate (approximately 2.40% as of June 30, 2019). During the six months ended June 30, 2019, the following interest rate swap agreements expired (in millions):
The estimated fair values of our Swap Agreements are as follows (in millions):
A cumulative loss of $23.5 million ($17.4 million net of tax) and cumulative gain of $2.2 million ($1.6 million net of tax) is reflected in Accumulated other comprehensive (loss) earnings as of June 30, 2019 and December 31, 2018, respectively. Below is a summary of the effect of derivative instruments on amounts recognized in Other comprehensive (loss) earnings ("OCE") on the accompanying Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) (in millions):
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in millions):
|
Commitments and Contingencies Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Lease, Disclosure | ease liabilities are included in the Condensed Consolidated Balance Sheets (Unaudited) as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Lease, Liability, Maturity | As of June 30, 2019, maturities of lease liabilities were as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2018, minimum operating lease payments for leases with initial or remaining terms greater than one year were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | Supplemental information related to leases is as follows (in millions, except lease term and discount rate):
_______________________________________________________ (1) Includes short-term and variable lease costs.
|
Revenues (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables summarize revenues from contracts with clients (in millions):
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________ (1) Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP.
|
Equity-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted shares granted in 2019 is as follows:
Restricted stock transactions in 2019 are as follows:
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summarized Segment Financial Information | Summarized financial information concerning our segments is shown in the tables below (in millions):
(1) Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP. (2) Operating expenses for Corporate and Other includes $12.2 million of equity-based compensation, including certain related payroll taxes. (3) Transition and integration costs primarily consists of acquisition-related costs, including ongoing costs pursuant to a purchase agreement. (4) Depreciation and amortization for Corporate and Other primarily represents net incremental depreciation and amortization adjustments associated with the application of purchase accounting recorded in accordance with GAAP.
_______________________________________________________
(2) Operating expenses for Corporate and Other includes $12.2 million of equity-based compensation, including certain related payroll taxes. (3) Transition and integration costs primarily represent transition-related costs as we transferred certain corporate functions from FNF, legal and professional fees related to secondary offerings by certain affiliates of THL and acquisition-related costs, including ongoing costs pursuant to a purchase agreement.
_______________________________________________________
(2) Operating expenses for Corporate and Other includes $26.1 million of equity-based compensation, including certain related payroll taxes. (3) Transition and integration costs primarily consists of acquisition-related costs, including ongoing costs pursuant to a purchase agreement.
_______________________________________________________
(3) Transition and integration costs primarily represent transition-related costs as we transferred certain corporate functions from FNF, legal and professional fees related to secondary offerings by certain affiliates of THL and acquisition-related costs, including ongoing costs pursuant to a purchase agreement.
(5) Receivables from related parties are included in Corporate and Other.
|
Basis of Presentation - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
segment
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Schedule of Depreciation and Amortization Expense [Line Items] | ||||||
Revenue recognized | $ 32.6 | $ 28.8 | ||||
Number of reporting segments | segment | 2 | |||||
Cash | $ 6.4 | $ 6.4 | $ 9.5 | |||
Cash equivalents | 2.9 | 2.9 | 10.8 | |||
Cash and cash equivalents | 9.3 | $ 11.4 | 9.3 | 11.4 | 20.3 | $ 16.2 |
Allowance for Doubtful Accounts | ||||||
Allowance for doubtful accounts | 1.7 | 1.7 | 1.3 | |||
Depreciation and Amortization | ||||||
Deferred contract costs | 10.5 | 8.1 | 20.7 | 15.9 | ||
Total | 57.5 | 53.6 | 114.4 | 105.0 | ||
Accelerated amortization of deferred charges | 1.9 | 1.0 | 3.6 | 2.5 | ||
Property, Plant and Equipment [Member] | ||||||
Depreciation and Amortization | ||||||
Total | 9.0 | 7.9 | 17.5 | 15.4 | ||
Computer Software, Intangible Asset [Member] | ||||||
Depreciation and Amortization | ||||||
Total | 23.4 | 23.4 | 47.1 | 45.4 | ||
Other Intangible Assets [Member] | ||||||
Depreciation and Amortization | ||||||
Total | $ 14.6 | $ 14.2 | $ 29.1 | $ 28.3 | ||
Accounting Standards Updated 2018-02 [Member] | ||||||
Schedule of Depreciation and Amortization Expense [Line Items] | ||||||
Cumulative effect of new accounting principle | 0.0 | |||||
AOCI Attributable to Parent [Member] | Accounting Standards Updated 2018-02 [Member] | ||||||
Schedule of Depreciation and Amortization Expense [Line Items] | ||||||
Cumulative effect of new accounting principle | $ 1.0 |
Basis of Presentation - Share Repurchase Agreements (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
May 11, 2018 |
Mar. 15, 2018 |
Feb. 15, 2018 |
Jun. 30, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Total number of shares repurchased (in shares) | 0 | 1,000,000.0 | 2,000,000.0 | 200,000 | ||
Aggregate purchase price | $ 11.9 | $ 11.9 | $ 141.5 | |||
Average price paid per share (in usd per share) | $ 57.94 | |||||
Shares remaining under repurchase program (in shares) | 3,600,000 | 3,600,000 |
Basis of Presentation - Trade Receivable, Net (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 173.6 | $ 173.6 |
Allowance for doubtful accounts | (1.7) | (1.3) |
Trade receivables, net | 171.9 | 172.3 |
Trade receivables — billed | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | 128.5 | 136.6 |
Trade receivables — unbilled | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 45.1 | $ 37.0 |
Basis of Presentation - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 55.5 | $ 43.9 |
Contract assets | 16.7 | 14.8 |
Other current assets | 8.9 | 8.6 |
Prepaid expenses and other current assets | $ 81.1 | $ 67.3 |
Investments In Unconsolidated Affiliates - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jul. 01, 2019 |
Jan. 24, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Feb. 08, 2019 |
|
Schedule of Equity Method Investments [Line Items] | |||||||
Investment amount | $ 375.0 | $ 375.0 | $ 0.0 | ||||
Share price (in usd per share) | $ 145.00 | ||||||
Equity interests acquired | 18.10% | ||||||
Equity in losses of unconsolidated affiliates, net of tax | $ (13.4) | $ 0.0 | (13.4) | $ 0.0 | |||
Subsequent Event [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investment amount | $ 17.6 | ||||||
D&B Investment | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity in losses of unconsolidated affiliates, net of tax | (13.3) | ||||||
Tax benefit | $ 4.7 |
Investments In Unconsolidated Affiliates - Unconsolidated VIE (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Equity Method Investments and Joint Ventures [Abstract] | |
Total assets | $ 356.8 |
Maximum exposure | $ 374.4 |
Investments In Unconsolidated Affiliates - Summarized Financial Information (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Variable Interest Entity [Line Items] | |||||
Total assets | $ 356.8 | $ 356.8 | |||
Revenues | 294.9 | $ 276.6 | 578.0 | $ 546.9 | |
Loss before provision for income taxes and equity in net income of affiliates | 59.8 | 47.1 | 109.8 | 102.3 | |
Net earnings | 31.9 | 40.0 | 71.2 | 82.7 | |
Net earnings | $ 31.9 | $ 40.0 | $ 71.2 | $ 82.7 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Current assets | $ 420.7 | ||||
Non-current assets | 8,740.3 | ||||
Total assets | 9,161.0 | ||||
Current liabilities, including short-term debt | 778.0 | ||||
Non-current liabilities | 5,457.5 | ||||
Cumulative preferred series A stock | 6,235.5 | ||||
Cumulative preferred series A stock | 1,028.4 | ||||
Total capital | 1,897.1 | ||||
Total liabilities and partners' capital | 9,161.0 | ||||
Revenues | 174.1 | ||||
Loss before provision for income taxes and equity in net income of affiliates | (111.6) | ||||
Net earnings | (99.4) | ||||
Net earnings | $ (81.1) |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Basic: | ||||
Net earnings | $ 31.9 | $ 40.0 | $ 71.2 | $ 82.7 |
Weighted average shares of common stock outstanding (in shares) | 147.7 | 147.1 | 147.6 | 148.0 |
Basic net earnings per share (in dollars per share) | $ 0.22 | $ 0.27 | $ 0.48 | $ 0.56 |
Shares used for diluted net earnings per share: | ||||
Weighted average shares of common stock outstanding (in shares) | 147.7 | 147.1 | 147.6 | 148.0 |
Weighted average shares of common stock, diluted (in shares) | 148.5 | 147.7 | 148.4 | 148.4 |
Diluted net earnings per share (in dollars per share) | $ 0.21 | $ 0.27 | $ 0.48 | $ 0.56 |
Common Class A [Member] | ||||
Basic: | ||||
Weighted average shares of common stock outstanding (in shares) | 147.1 | 147.6 | 148.0 | |
Shares used for diluted net earnings per share: | ||||
Weighted average shares of common stock outstanding (in shares) | 147.1 | 147.6 | 148.0 | |
Dilutive effect of unvested restricted shares of Class A common stock (in share) | 0.8 | 0.6 | 0.8 | 0.4 |
Related Party Transactions - FNF (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Related Party Transaction [Line Items] | ||||
Revenues | $ 16.2 | $ 13.7 | $ 30.2 | $ 26.3 |
Operating expenses | 3.1 | 2.8 | 5.9 | 5.0 |
FNF [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues | 16.2 | 13.7 | 30.2 | 26.3 |
FNF [Member] | Operating Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses | $ 3.1 | $ 2.8 | $ 5.9 | $ 5.0 |
Related Party Transactions - THL (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Related Party Transaction [Line Items] | ||||
Operating expenses | $ 3.1 | $ 2.8 | $ 5.9 | $ 5.0 |
Related Party Transactions - Related Party Revenues (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Related Party Transaction [Line Items] | ||||
Revenues | $ 16.2 | $ 13.7 | $ 30.2 | $ 26.3 |
Software Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues | 10.8 | 8.1 | 19.5 | 15.8 |
Data and Analytics Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues | $ 5.4 | $ 5.6 | $ 10.7 | $ 10.5 |
Related Party Transactions - Related Party Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Related Party Transaction [Line Items] | ||||
Operating expenses | $ 3.1 | $ 2.8 | $ 5.9 | $ 5.0 |
Data Entry, Indexing Services, and Other Operating Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses | 2.2 | 1.6 | 4.0 | 2.9 |
Corporate Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses | 0.9 | 1.5 | 1.9 | 2.7 |
Technology and Corporate Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, reimbursements from transactions with related party | $ 0.0 | $ (0.3) | $ 0.0 | $ (0.6) |
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jul. 01, 2019 |
Jan. 24, 2019 |
May 11, 2018 |
Mar. 15, 2018 |
Feb. 15, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Related Party Transaction [Line Items] | ||||||||
Additional investment | $ 375.0 | $ 375.0 | $ 0.0 | |||||
Purchases of treasury stock (in shares) | 0 | 1,000,000.0 | 2,000,000.0 | 200,000 | ||||
Contract assets | $ 16.7 | $ 14.8 | ||||||
Related Party [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Deferred revenue, current | 2.2 | 0.1 | ||||||
Contract assets | $ 5.1 | $ 4.8 | ||||||
Subsequent Event [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Additional investment | $ 17.6 |
Related Party Transactions - Underwritten Public Offering (Details) - shares |
6 Months Ended | |||
---|---|---|---|---|
May 11, 2018 |
Mar. 15, 2018 |
Feb. 15, 2018 |
Jun. 30, 2019 |
|
Related Party Transaction [Line Items] | ||||
Issuance of common stock (in shares) | 12,100,000 | 8,000,000.0 | 8,000,000.0 | |
Purchases of treasury stock (in shares) | 0 | 1,000,000.0 | 2,000,000.0 | 200,000 |
THL And Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Shares owned (in shares) | 0 | 12,100,000 | 20,100,000 |
Other Non-Current Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Property records database | $ 60.1 | $ 59.9 |
Right-of-use assets | 25.0 | 0.0 |
Contract assets | 23.5 | 17.0 |
Deferred compensation plan related assets | 14.3 | 11.1 |
Prepaid expenses | 7.6 | 18.3 |
Unbilled receivables | 2.9 | 5.0 |
Unrealized gains on interest rate swaps | 0.0 | 6.2 |
Other | 6.5 | 4.3 |
Other non-current assets | $ 139.9 | $ 121.8 |
Long-Term Debt - Long-term Debt Components (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,644.2 | $ 1,349.8 |
Less: Current portion of long-term debt, net of debt issuance costs of $0.6 as of June 30, 2015 | 60.9 | 53.2 |
Long-term debt, net of current portion | 1,583.3 | 1,296.6 |
Issuance costs | 10.9 | 12.3 |
Debt Instrument, Unamortized Discount, Noncurrent | 0.0 | 0.3 |
Issuance costs, current | (0.2) | (0.2) |
Debt Instrument, Unamortized Discount, Current | (0.3) | (0.5) |
Debt Instrument, Unamortized Discount (Premium), Net | 0.3 | 0.8 |
Total | 1,633.0 | 1,336.7 |
Current portion of long-term debt | 60.4 | 52.5 |
Deferred Finance Costs, Noncurrent, Net | (10.7) | (12.1) |
Long-term debt, net of current portion | 1,572.6 | 1,284.2 |
Medium-term Notes [Member] | Term Loan A [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,218.8 | 1,234.4 |
Issuance costs | 6.1 | 6.9 |
Debt Instrument, Unamortized Discount (Premium), Net | 0.0 | 0.0 |
Total | 1,212.7 | 1,227.5 |
Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 403.5 | 82.5 |
Issuance costs | 4.8 | 5.4 |
Debt Instrument, Unamortized Discount (Premium), Net | 0.0 | 0.0 |
Total | 398.7 | 77.1 |
Senior Notes [Member] | 5.75% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 21.9 | 32.9 |
Issuance costs | 0.0 | 0.0 |
Debt Instrument, Unamortized Discount (Premium), Net | 0.3 | 0.8 |
Total | $ 21.6 | $ 32.1 |
Long-Term Debt - Schedule of Maturities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Instrument [Line Items] | ||
2019 (remaining) | $ 26.5 | |
2020 | 65.7 | |
2021 | 62.5 | |
2022 | 109.4 | |
2023 | 1,380.1 | |
Total long-term debt | $ 1,644.2 | $ 1,349.8 |
Long-Term Debt - Credit Agreement (Details) - USD ($) $ in Millions |
Apr. 30, 2018 |
Jun. 30, 2019 |
---|---|---|
Amended And Restated Credit Agreement [Member] | Eurodollar [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Medium-term Notes [Member] | Term Loan A [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate at period end | 3.90% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount unused on the Revolving Credit Facility | $ 346.5 | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 750.0 | |
Revolving Credit Facility [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Unused commitment fee | 0.20% | |
Interest rate at period end | 3.92% | |
Term Loan A [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,250.0 |
Long-Term Debt - Other Debt (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Apr. 01, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 0.0 | $ (5.8) | |
Other debt borrowings | $ 32.9 | ||
Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Stated rate | 0.00% | ||
Imputed rate | 3.44% |
Long-Term Debt - Interest Rate Swaps Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
[1] | Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
Jan. 31, 2019 |
Apr. 30, 2018 |
Sep. 29, 2017 |
Mar. 31, 2017 |
Feb. 01, 2016 |
||||
Derivative [Line Items] | ||||||||||||||
Gain recognized in other comprehensive income (loss) | $ (11.8) | [1] | $ 3.4 | $ (18.0) | $ 8.1 | |||||||||
Reclassification in next 12 months, gross | 4.5 | 4.5 | ||||||||||||
Reclassification in next 12 months, net | $ 3.3 | 3.3 | ||||||||||||
Interest Rate Swap [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Fixed rate | 2.65% | 2.61% | 1.69% | |||||||||||
Gain (loss) on derivative | (23.5) | $ 2.2 | ||||||||||||
Gain recognized in other comprehensive income (loss) | $ (17.4) | $ 1.6 | ||||||||||||
February 1, 2016 through January 31, 2019 | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Fixed rate | 1.01% | |||||||||||||
February 1, 2016 through January 31, 2019 | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Fixed rate | 1.01% | |||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Interest Rate Swap [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional amount per derivative instrument | $ 300.0 | $ 250.0 | $ 200.0 | $ 200.0 | ||||||||||
Basis spread on derivative | 2.40% | 2.40% | ||||||||||||
Fixed rate | 2.08% | |||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | February 1, 2016 through January 31, 2019 | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional amount per derivative instrument | $ 200.0 | |||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | February 1, 2016 through January 31, 2019 | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional amount per derivative instrument | $ 200.0 | |||||||||||||
|
Long-Term Debt - Swap Agreements in the Balance Sheets (Unaudited) (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0.0 | $ 0.5 |
Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0.0 | 6.2 |
Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 23.5 | $ 4.5 |
Long-Term Debt - Derivative Instruments Recognized in AOCI (Details) - Attributable to Black Knight Financial Services, Inc. [Member] - Interest Rate Swap [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Recognized in OCE | $ (11.8) | $ 3.4 | $ (18.0) | $ 8.1 |
Amount of gain reclassified from Accumulated OCE into Net earnings | $ (0.3) | $ (0.5) | $ (1.0) | $ (0.8) |
Long-Term Debt - Debt Refinancing (Details) |
Apr. 30, 2018 |
---|---|
Amended And Restated Credit Agreement [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.50% |
Revolving Credit Facility [Member] | Line of Credit [Member] | |
Debt Instrument [Line Items] | |
Unused commitment fee | 0.20% |
Income Taxes (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 24.20% | 15.10% | 23.00% | 19.20% |
Fair Value Measurements (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 9.3 | $ 20.3 |
Interest rate swaps | 0.0 | 6.7 |
Interest rate swaps | 23.5 | 4.5 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 9.3 | 20.3 |
Interest rate swaps | 0.0 | 0.0 |
Interest rate swaps | 0.0 | 0.0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0.0 | 0.0 |
Interest rate swaps | 0.0 | 6.7 |
Interest rate swaps | 23.5 | 4.5 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0.0 | 0.0 |
Interest rate swaps | 0.0 | 0.0 |
Interest rate swaps | $ 0.0 | $ 0.0 |
Commitments and Contingencies - Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Commitments and Contingencies Disclosure [Abstract] | |
Renewal term | 5 years |
Termination term | 1 year |
Lessee, Lease, Description [Line Items] | |
Leases not yet commenced | $ 4.4 |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 6 years |
Lease term | 5 years |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 2 years |
Commitments and Contingencies - Balance Sheet Information (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Trade accounts payable and other accrued liabilities | $ 11.1 |
Other non-current liabilities | 13.7 |
Total lease liabilities | $ 24.8 |
Commitments and Contingencies - Lease Maturities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Operating Lease Liabilities, Payments Due (Topic 842) | ||
2019 (remaining) | $ 5.9 | |
2020 | 10.4 | |
2021 | 5.4 | |
2022 | 2.7 | |
2023 | 1.2 | |
Thereafter | 0.7 | |
Total | 26.3 | |
Less imputed interest | (1.5) | |
Total | $ 24.8 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity (Topic 840) | ||
2019 | $ 11.1 | |
2020 | 10.3 | |
2021 | 5.2 | |
2022 | 2.5 | |
2023 | 1.2 | |
Thereafter | 0.7 | |
Total | $ 31.0 |
Commitments and Contingencies - Supplemental Lease Information (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 3.8 | $ 7.4 |
Operating Lease, Payments | 3.1 | 5.7 |
Right-of-use assets obtained in exchange for lease liabilities | $ 1.1 | $ 1.8 |
Weighted average remaining lease term (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days |
Weighted average discount rate | 4.06% | 4.06% |
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 294.9 | $ 276.6 | $ 578.0 | $ 546.9 |
Software and hosting solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 224.5 | 213.3 | 440.3 | 421.8 |
Professional services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32.0 | 29.6 | 64.8 | 58.8 |
Data solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30.8 | 30.0 | 61.6 | 59.1 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7.6 | 3.7 | 11.3 | 7.2 |
Operating Segments [Member] | Software Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 255.4 | 238.7 | 498.9 | 472.3 |
Operating Segments [Member] | Software Solutions [Member] | Software and hosting solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 216.7 | 205.7 | 424.6 | 406.8 |
Operating Segments [Member] | Software Solutions [Member] | Professional services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31.8 | 30.1 | 64.3 | 59.8 |
Operating Segments [Member] | Software Solutions [Member] | Data solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Operating Segments [Member] | Software Solutions [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6.9 | 2.9 | 10.0 | 5.7 |
Operating Segments [Member] | Data and Analytics Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 39.7 | 38.7 | 79.4 | 76.3 |
Operating Segments [Member] | Data and Analytics Segment [Member] | Software and hosting solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7.8 | 7.6 | 15.7 | 15.0 |
Operating Segments [Member] | Data and Analytics Segment [Member] | Professional services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.4 | 0.3 | 0.8 | 0.7 |
Operating Segments [Member] | Data and Analytics Segment [Member] | Data solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30.8 | 30.0 | 61.6 | 59.1 |
Operating Segments [Member] | Data and Analytics Segment [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.7 | 0.8 | 1.3 | 1.5 |
Corporate and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (0.2) | (0.8) | (0.3) | (1.7) |
Corporate and Other [Member] | Software and hosting solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Corporate and Other [Member] | Professional services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (0.2) | (0.8) | (0.3) | (1.7) |
Corporate and Other [Member] | Data solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Corporate and Other [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Reportable Legal Entities [Member] | Servicing Software [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 210.7 | 197.3 | 412.5 | 392.0 |
Reportable Legal Entities [Member] | Servicing Software [Member] | Software and hosting solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 184.8 | 178.2 | 364.5 | 354.4 |
Reportable Legal Entities [Member] | Servicing Software [Member] | Professional services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21.1 | 18.8 | 42.9 | 37.1 |
Reportable Legal Entities [Member] | Servicing Software [Member] | Data solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Reportable Legal Entities [Member] | Servicing Software [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4.8 | 0.3 | 5.1 | 0.5 |
Reportable Legal Entities [Member] | Origination Software [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 44.7 | 41.4 | 86.4 | 80.3 |
Reportable Legal Entities [Member] | Origination Software [Member] | Software and hosting solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31.9 | 27.5 | 60.1 | 52.4 |
Reportable Legal Entities [Member] | Origination Software [Member] | Professional services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10.7 | 11.3 | 21.4 | 22.7 |
Reportable Legal Entities [Member] | Origination Software [Member] | Data solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Reportable Legal Entities [Member] | Origination Software [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2.1 | $ 2.6 | $ 4.9 | $ 5.2 |
Revenues - Narrative (Details) $ in Billions |
Jun. 30, 2019
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 13.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 56.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 85.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1.9 |
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Apr. 08, 2019 |
Feb. 28, 2019 |
Feb. 15, 2019 |
Jul. 31, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 12.1 | $ 12.2 | $ 25.4 | $ 19.9 | ||||
Accelerated cost recognized | 1.9 | |||||||
Compensation costs not yet recognized | $ 55.7 | $ 55.7 | ||||||
Recognition period | 1 year 6 months | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 1,110 | 5,744 | 793,863 | |||||
Weighted Averaged Grant Date Fair Value (in dollars per share) | $ 54.14 | $ 52.25 | $ 52.38 | |||||
Vesting period | 3 years | 2 years | 3 years | |||||
Restricted Stock [Member] | Common Class A [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 800,717 | |||||||
Weighted Averaged Grant Date Fair Value (in dollars per share) | $ 52.38 | |||||||
Subsequent Event [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Accelerated cost recognized | $ 1.0 |
Equity-Based Compensation - Restricted Stock Grant (Details) - Restricted Stock [Member] - $ / shares |
Apr. 08, 2019 |
Feb. 28, 2019 |
Feb. 15, 2019 |
---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,110 | 5,744 | 793,863 |
Weighted Averaged Grant Date Fair Value (in dollars per share) | $ 54.14 | $ 52.25 | $ 52.38 |
Vesting period | 3 years | 2 years | 3 years |
Equity-Based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member] - $ / shares |
6 Months Ended | |||
---|---|---|---|---|
Apr. 08, 2019 |
Feb. 28, 2019 |
Feb. 15, 2019 |
Jun. 30, 2019 |
|
Shares | ||||
Granted (in shares) | 1,110 | 5,744 | 793,863 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Averaged Grant Date Fair Value (in dollars per share) | $ 54.14 | $ 52.25 | $ 52.38 | |
Common Class A [Member] | ||||
Shares | ||||
Beginning balance (in shares) | 2,077,265 | |||
Granted (in shares) | 800,717 | |||
Forfeited (in shares) | (39,510) | |||
Vested (in shares) | (742,383) | |||
Ending balance (in shares) | 2,096,089 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Grant Date Fair Value, Beginning (in dollars per share) | $ 40.77 | |||
Weighted Averaged Grant Date Fair Value (in dollars per share) | 52.38 | |||
Weighted Averaged Grant Date Fair Value (in dollars per share) | 42.91 | |||
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 38.53 | |||
Weighted Average Grant Date Fair Value, Ending (in dollars per share) | $ 45.96 |
Segment Information - Summarized Financial Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Segment Reporting Information [Line Items] | |||||
Revenues | $ 294.9 | $ 276.6 | $ 578.0 | $ 546.9 | |
Expenses: | |||||
Operating expenses | 159.4 | 155.4 | 319.4 | 304.8 | |
Transition and integration costs | 1.0 | 1.2 | 1.9 | 2.5 | |
EBITDA | 134.5 | 120.0 | 256.7 | 239.6 | |
Depreciation and amortization | 57.5 | 53.6 | 114.4 | 105.0 | |
Operating income (loss) | 77.0 | 66.4 | 142.3 | 134.6 | |
Interest expense | (16.7) | (13.1) | (31.7) | (25.9) | |
Other expense, net | (0.5) | (6.2) | (0.8) | (6.4) | |
Earnings before income taxes and equity in losses of unconsolidated affiliates | 59.8 | 47.1 | 109.8 | 102.3 | |
Income tax expense | 14.5 | 7.1 | 25.2 | 19.6 | |
Earnings before equity in losses of unconsolidated affiliates | 45.3 | 40.0 | 84.6 | 82.7 | |
Equity in losses of unconsolidated affiliates, net of tax | (13.4) | 0.0 | (13.4) | 0.0 | |
Net earnings | 31.9 | 40.0 | 71.2 | 82.7 | |
Balance sheet data: | |||||
Total assets | 3,985.3 | 3,660.8 | 3,985.3 | 3,660.8 | $ 3,653.4 |
Goodwill | 2,329.7 | 2,310.0 | 2,329.7 | 2,310.0 | $ 2,329.7 |
Share-based compensation expense | 12.1 | 12.2 | 25.4 | 19.9 | |
Operating Segments [Member] | Software Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 255.4 | 238.7 | 498.9 | 472.3 | |
Expenses: | |||||
Operating expenses | 101.5 | 96.9 | 204.3 | 193.7 | |
Transition and integration costs | 0.0 | 0.0 | 0.0 | 0.0 | |
EBITDA | 153.9 | 141.8 | 294.6 | 278.6 | |
Depreciation and amortization | 30.1 | 28.4 | 60.0 | 55.1 | |
Operating income (loss) | 123.8 | 113.4 | 234.6 | 223.5 | |
Balance sheet data: | |||||
Total assets | 3,201.1 | 3,214.7 | 3,201.1 | 3,214.7 | |
Goodwill | 2,157.6 | 2,137.9 | 2,157.6 | 2,137.9 | |
Operating Segments [Member] | Data and Analytics Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 39.7 | 38.7 | 79.4 | 76.3 | |
Expenses: | |||||
Operating expenses | 30.3 | 28.9 | 60.1 | 57.9 | |
Transition and integration costs | 0.0 | 0.0 | 0.0 | 0.0 | |
EBITDA | 9.4 | 9.8 | 19.3 | 18.4 | |
Depreciation and amortization | 3.9 | 3.5 | 7.7 | 6.7 | |
Operating income (loss) | 5.5 | 6.3 | 11.6 | 11.7 | |
Balance sheet data: | |||||
Total assets | 312.6 | 310.1 | 312.6 | 310.1 | |
Goodwill | 172.1 | 172.1 | 172.1 | 172.1 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (0.2) | (0.8) | (0.3) | (1.7) | |
Expenses: | |||||
Operating expenses | 27.6 | 29.6 | 55.0 | 53.2 | |
Transition and integration costs | 1.0 | 1.2 | 1.9 | 2.5 | |
EBITDA | (28.8) | (31.6) | (57.2) | (57.4) | |
Depreciation and amortization | 23.5 | 21.7 | 46.7 | 43.2 | |
Operating income (loss) | (52.3) | (53.3) | (103.9) | (100.6) | |
Balance sheet data: | |||||
Total assets | 471.6 | 136.0 | 471.6 | 136.0 | |
Goodwill | 0.0 | 0.0 | 0.0 | 0.0 | |
Share-based compensation expense | $ 12.2 | $ 12.2 | $ 26.1 | $ 20.3 |
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