10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 10-Q

___________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-25346

___________________________

ACI WORLDWIDE, INC.

(Exact name of registrant as specified in its charter)

___________________________

Delaware				47-0772104
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
3520 Kraft Rd,	Suite 300	Naples,	Florida	34105
(Address of principal executive offices)				(Zip code)

(239) 403-4660

(Registrant’s telephone number, including area code)

___________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of the Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of May 4, 2020, there were 115,944,850 shares of the registrant’s common stock outstanding.

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.005 par value	ACIW	Nasdaq Global Select Market

	TABLE OF CONTENTS
		Page
PART I – FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of March 31, 2020, and December 31, 2019	3
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2020 and 2019	5
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2020 and 2019	6
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2020 and 2019	7
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4	Controls and Procedures	38
PART II – OTHER INFORMATION
Item 1	Legal Proceedings	39
Item 1A	Risk Factors	39
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3	Defaults Upon Senior Securities	40
Item 4	Mine Safety Disclosures	40
Item 5	Other Information	40
Item 6	Exhibits	41
Signature		42

2

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands, except share and per share amounts)

	March 31, 2020		December 31, 2019
ASSETS
Current assets
Cash and cash equivalents	$	119,124	$	121,398
Receivables, net of allowances of $3,465 and $5,149, respectively	305,647		359,197
Settlement assets	317,156		391,039
Prepaid expenses	32,047		24,542
Other current assets	32,472		24,200
Total current assets	806,446		920,376
Noncurrent assets
Accrued receivables, net	198,554		213,041
Property and equipment, net	67,893		70,380
Operating lease right-of-use assets	53,490		57,382
Software, net	225,171		234,517
Goodwill	1,280,226		1,280,525
Intangible assets, net	344,156		356,969
Deferred income taxes, net	63,795		51,611
Other noncurrent assets	70,168		72,733
TOTAL ASSETS	$	3,109,899	$	3,257,534
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	32,166	$	37,010
Settlement liabilities	297,936		368,719
Employee compensation	35,035		29,318
Current portion of long-term debt	34,177		34,148
Deferred revenue	90,660		65,784
Other current liabilities	66,382		76,971
Total current liabilities	556,356		611,950
Noncurrent liabilities
Deferred revenue	46,104		53,155
Long-term debt	1,321,452		1,339,007
Deferred income taxes, net	31,959		32,053
Operating lease liabilities	43,053		46,766
Other noncurrent liabilities	43,177		44,635
Total liabilities	2,042,101		2,127,566
Commitments and contingencies
Stockholders’ equity
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at March 31, 2020, and December 31, 2019	—		—
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at March 31, 2020, and December 31, 2019	702		702
Additional paid-in capital	656,723		667,658
Retained earnings	906,403		930,830
Treasury stock, at cost, 24,642,813 and 24,538,703 shares at March 31, 2020, and December 31, 2019, respectively	(398,278)		(377,639)
Accumulated other comprehensive loss	(97,752)		(91,583)
Total stockholders’ equity	1,067,798		1,129,968
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,109,899	$	3,257,534

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share amounts)

	Three Months Ended March 31,
	2020		2019
Revenues
Software as a service and platform as a service	$	192,950	$	108,557
License	28,129		21,078
Maintenance	53,280		55,111
Services	17,126		21,109
Total revenues	291,485		205,855
Operating expenses
Cost of revenue (1)	165,837		114,941
Research and development	39,024		36,194
Selling and marketing	30,083		29,430
General and administrative	35,926		31,517
Depreciation and amortization	31,898		21,866
Total operating expenses	302,768		233,948
Operating loss	(11,283)		(28,093)
Other income (expense)
Interest expense	(17,171)		(11,614)
Interest income	2,900		3,033
Other, net	(9,758)		(1,912)
Total other income (expense)	(24,029)		(10,493)
Loss before income taxes	(35,312)		(38,586)
Income tax benefit	(10,885)		(12,623)
Net loss	$	(24,427)	$	(25,963)
Loss per common share
Basic	$	(0.21)	$	(0.22)
Diluted	$	(0.21)	$	(0.22)
Weighted average common shares outstanding
Basic	116,006		116,090
Diluted	116,006		116,090

(1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale.

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited and in thousands) 

	Three Months Ended March 31,
	2020		2019
Net loss	$	(24,427)	$	(25,963)
Other comprehensive income (loss):
Foreign currency translation adjustments	(6,169)		1,321
Total other comprehensive income (loss)	(6,169)		1,321
Comprehensive loss	$	(30,596)	$	(24,642)

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited and in thousands, except share amounts)

	Three Months Ended March 31, 2020
	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balance as of December 31, 2019	$	702	$	667,658	$	930,830	$	(377,639)	$	(91,583)	$	1,129,968
Net loss	—		—		(24,427)		—		—		(24,427)
Other comprehensive loss	—		—		—		—		(6,169)		(6,169)
Stock-based compensation	—		6,950		—		—		—		6,950
Shares issued and forfeited, net, under stock plans	—		(17,885)		—		19,215		—		1,330
Repurchase of 1,000,000 shares of common stock	—		—		—		(28,881)		—		(28,881)
Repurchase of stock-based compensation awards for tax withholdings	—		—		—		(10,973)		—		(10,973)
Balance as of March 31, 2020	$	702	$	656,723	$	906,403	$	(398,278)	$	(97,752)	$	1,067,798
	Three Months Ended March 31, 2019
	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balance as of December 31, 2018	$	702	$	632,235	$	863,768	$	(355,857)	$	(92,617)	$	1,048,231
Net loss	—		—		(25,963)		—		—		(25,963)
Other comprehensive income	—		—		—		—		1,321		1,321
Stock-based compensation	—		6,585		—		—		—		6,585
Shares issued and forfeited, net, under stock plans	—		(1,860)		—		7,525		—		5,665
Repurchase of 23,802 shares of common stock	—		—		—		(631)		—		(631)
Repurchase of stock-based compensation awards for tax withholdings	—		—		—		(2,624)		—		(2,624)
Balance as of March 31, 2019	$	702	$	636,960	$	837,805	$	(351,587)	$	(91,296)	$	1,032,584

The accompanying notes are an integral part of the condensed consolidated financial statements.

7

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

	Three Months Ended March 31,
	2020		2019
Cash flows from operating activities:
Net loss	$	(24,427)	$	(25,963)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation	5,825		5,901
Amortization	27,997		18,951
Amortization of operating lease right-of-use assets	3,556		3,383
Amortization of deferred debt issuance costs	1,212		753
Deferred income taxes	(10,413)		(17,414)
Stock-based compensation expense	6,950		6,585
Other	650		574
Changes in operating assets and liabilities, net of impact of acquisitions:
Receivables	48,699		94,549
Accounts payable	(6,087)		(10,297)
Accrued employee compensation	6,985		(8,598)
Current income taxes	(5,361)		(1,041)
Deferred revenue	22,495		(4,127)
Other current and noncurrent assets and liabilities	(20,581)		(20,829)
Net cash flows from operating activities	57,500		42,427
Cash flows from investing activities:
Purchases of property and equipment	(3,597)		(5,250)
Purchases of software and distribution rights	(6,541)		(4,578)
Net cash flows from investing activities	(10,138)		(9,828)
Cash flows from financing activities:
Proceeds from issuance of common stock	947		831
Proceeds from exercises of stock options	400		4,857
Repurchase of stock-based compensation awards for tax withholdings	(10,973)		(2,624)
Repurchases of common stock	(28,881)		(631)
Proceeds from revolving credit facility	30,000		—
Repayment of revolving credit facility	(39,000)		—
Repayment of term portion of credit agreement	(9,737)		(5,937)
Payments on or proceeds from other debt, net	(3,593)		(1,857)
Net cash flows from financing activities	(60,837)		(5,361)
Effect of exchange rate fluctuations on cash	11,201		433
Net increase (decrease) in cash and cash equivalents	(2,274)		27,671
Cash and cash equivalents, beginning of period	121,398		148,502
Cash and cash equivalents, end of period	$	119,124	$	176,173
Supplemental cash flow information
Income taxes paid	$	6,639	$	5,949
Interest paid	$	21,837	$	14,388

The accompanying notes are an integral part of the condensed consolidated financial statements.

8

ACI WORLDWIDE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Condensed Consolidated Financial Statements

The unaudited condensed consolidated financial statements include the accounts of ACI Worldwide, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements as of March 31, 2020, and for the three months ended March 31, 2020 and 2019, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods. The condensed consolidated balance sheet as of December 31, 2019, is derived from the audited financial statements.

The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2019, filed on February 27, 2020. Results for the three months ended March 31, 2020, are not necessarily indicative of results that may be attained in the future.

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Risks and Uncertainties

The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic is in early stages and information is rapidly evolving. The Company has experienced changes in volumes for certain Merchant and Biller customers and has received limited requests for extended payment terms under existing contracts. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or global economic recession. Such economic disruption could have a material adverse effect on our business as our customers curtail and reduce capital and overall spending. Policymakers around the globe have responded with fiscal policy actions to support the economy as a whole. The magnitude and overall effectiveness of these actions remains uncertain.

The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operations challenges faced by its customers. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain.

Other Current Liabilities

The components of other current liabilities are included in the following table (in thousands):

	March 31, 2020		December 31, 2019
Operating lease liabilities	$	14,586	$	15,049
Vendor financed licenses	10,390		9,667
Royalties payable	5,162		6,107
Accrued interest	3,308		9,212
Other	32,936		36,936
Total other current liabilities	$	66,382	$	76,971

9

Settlement Assets and Liabilities

Individuals and businesses settle their obligations to the Company’s various Biller clients using credit or debit cards or via automated clearing house (“ACH”) payments. The Company creates a receivable for the amount due from the credit or debit card processor and an offsetting payable to the client. Upon confirmation that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may (1) receive the funds into bank accounts controlled by and in the Company’s name that are not disbursed to its clients by the end of the day, resulting in a settlement deposit on the Company’s books and (2) disburse funds to its clients in advance of receiving funds from the credit or debit card processor, resulting in a net settlement receivable position.

Off Balance Sheet Settlement Accounts

The Company also enters into agreements with certain Biller clients to process payment funds on their behalf. When an ACH or automated teller machine network payment transaction is processed, a transaction is initiated to withdraw funds from the designated source account and deposit them into a settlement account, which is a trust account maintained for the benefit of the Company’s clients. A simultaneous transaction is initiated to transfer funds from the settlement account to the intended destination account. These “back to back” transactions are designed to settle at the same time, usually overnight, such that the Company receives the funds from the source at the same time as it sends the funds to their destination. However, due to the transactions being with various financial institutions there may be timing differences that result in float balances. These funds are maintained in accounts for the benefit of the client, which is separate from the Company’s corporate assets. As the Company does not take ownership of the funds, these settlement accounts are not included in the Company’s balance sheet. The Company is entitled to interest earned on the fund balances. The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company. The amount of settlement funds as of March 31, 2020, and December 31, 2019, was $215.5 million and $274.0 million, respectively.

Fair Value

The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s 5.750% Senior Notes due 2026 (“2026 Notes”) was $402.0 million and $432.0 million as of March 31, 2020, and December 31, 2019, respectively.

The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy).

Goodwill

In accordance with the Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its reportable segments, ACI On Demand and ACI On Premise, as the reporting units.

Changes in the carrying amount of goodwill attributable to each reporting unit during the three months ended March 31, 2020, were as follows (in thousands):

	ACI On Demand		ACI On Premise		Total
Gross Balance, prior to December 31, 2019	$	554,617	$	773,340	$	1,327,957
Total impairment prior to December 31, 2019	—		(47,432)		(47,432)
Balance, December 31, 2019	554,617		725,908		1,280,525
Goodwill from acquisitions (1)	(299)		—		(299)
Balance, March 31, 2020	$	554,318	$	725,908	$	1,280,226

(1)Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition.

10

Recoverability of goodwill is measured using a discounted cash flow valuation model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon the October 1, 2019, annual impairment test. Given the adverse economic and market conditions caused by the COVID-19 pandemic, the Company considered a variety of qualitative factors to determine if an additional quantitative impairment test was required subsequent to our annual impairment test. Based on a variety of factors, including the excess of the fair value over the carrying amount in the most recent impairment test, we determined that an additional quantitative impairment test was not required.

Equity Method Investment

On July 23, 2019, the Company invested $18.3 million for a 30% non-controlling financial interest in a payment technology and services company in India. The Company accounted for this investment using the equity method in accordance with ASC 323, Investments - Equity Method and Joint Ventures. Accordingly, the Company recorded an initial investment of $18.5 million, which is included in other noncurrent assets in the condensed consolidated balance sheet as of March 31, 2020 and December 31, 2019. The Company records its share of earnings and losses in the investment on a one-quarter lag basis.

Name Change

Effective January 1, 2020, Official Payments Corporation, a wholly owned subsidiary, changed its name to ACI Payments, Inc. An amended and restated certificate of incorporation was filed with the state of Delaware to reflect the change. The Official Payments Corporation name and corresponding trade name may continue to be used until all stationary and marketing materials are transitioned to ACI Payments, Inc. equivalents.

New Accounting Standards Recently Adopted

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, codified as ASC 326. Subsequent amendments to the guidance were issued as follows: ASU 2018-19 in November 2018; ASU 2019-04 in April 2019; ASU 2019-05 in May 2019; ASU's 2019-10 and 2019-11 in November 2019; and ASU 2020-02 in February 2020. This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in ASU 2016-13 replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company is required to use a forward-looking expected credit loss model for billed and accrued receivables. The Company adopted ASU 2016-13 as of January 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the condensed consolidated financial statements.

In February 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, which clarifies or improves various financial instruments topics in the accounting standards codification to increase stakeholder awareness. ASU 2020-03 was effective upon issuance and did not have a material impact on the condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate (“LIBOR”). This guidance includes optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities as of March 12, 2020, through December 31, 2022, when the reference rate replacement activity is expected to be completed. The adoption of ASU 2020-04 did not have an impact on the Company's condensed consolidated financial statements.

Recently Issued Accounting Standards Not Yet Effective

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions within ASC 740, as well as clarify and simplify other aspects of the accounting for income taxes to promote consistency among reporting entities. ASU 2019-12 is effective for annual and interim periods beginning after December 15, 2020. The Company is currently assessing the impact the adoption of ASU 2019-12 will have on its condensed consolidated financial statements.

11

2. Revenue

In accordance with ASC 606, Revenue From Contracts With Customers, revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. See Note 10, Segment Information, for additional information, including disaggregation of revenue based on primary solution category and geographic location.

Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services, software as a service ("SaaS"), and platform as a service ("PaaS") revenues earned in the current period but billed in the following period, and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment subsequent to invoicing.

Total receivables, net is comprised of the following (in thousands):

	March 31, 2020		December 31, 2019
Billed receivables	$	164,282	$	213,654
Allowance for doubtful accounts	(3,465)		(5,149)
Billed receivables, net	160,817		208,505
Accrued receivables	375,739		399,302
Significant financing component	(32,355)		(35,569)
Total accrued receivables, net	343,384		363,733
Less: current accrued receivables	155,430		161,714
Less: current significant financing component	(10,600)		(11,022)
Total long-term accrued receivables, net	198,554		213,041
Total receivables, net	$	504,201	$	572,238

No customer accounted for more than 10% of the Company’s consolidated receivables balance as of March 31, 2020, or December 31, 2019.

Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services, and/or SaaS and PaaS services in advance of recording the related revenue.

Changes in deferred revenue were as follows (in thousands):

Balance, December 31, 2019	$	118,939
Deferral of revenue	45,927
Recognition of deferred revenue	(25,359)
Foreign currency translation	(2,743)
Balance, March 31, 2020	$	136,764

Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include:

•Revenue that will be recognized in future periods from capacity overages that are accounted for as a usage-based royalty.

•SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient.

•SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the direct allocation method.

12

Revenue allocated to remaining performance obligations was $682.2 million as of March 31, 2020, of which the Company expects to recognize approximately 44% over the next 12 months and the remainder thereafter.

During the three months ended March 31, 2020 and 2019, revenue recognized by the Company from performance obligations satisfied in previous periods was not significant.

3. Acquisition

Speedpay

On May 9, 2019, the Company acquired Speedpay, a subsidiary of The Western Union Company (“Western Union”), for $754.1 million in cash, including working capital adjustments, pursuant to a Stock Purchase Agreement, among the Company, Western Union, and ACI Worldwide Corp., a wholly owned subsidiary of the Company. The Company has included the financial results of Speedpay in the condensed consolidated financial statements from the date of acquisition. The combination of the Company and Speedpay bill pay solutions serves more than 4,000 customers across the U.S., bringing expanded reach in existing and complementary market segments such as consumer finance, insurance, healthcare, higher education, utilities, government, and mortgage. The acquisition of Speedpay increases the scale of the Company’s On Demand platform business and allows the acceleration of platform innovation through increased research and development and investment in ACI's On Demand platform infrastructure.

To fund the acquisition, the Company amended its existing Credit Agreement, dated February 24, 2017, for an additional $500.0 million senior secured term loan (“Delayed Draw Term Loan”), in addition to drawing $250.0 million on the available Revolving Credit Facility. See Note 4, Debt, for terms of the Credit Agreement. The remaining acquisition consideration was funded with cash on hand.

The Company expensed approximately $4.7 million of costs related to the acquisition of Speedpay for the three months ended March 31, 2019. These costs, which consist primarily of investment bank, consulting, and legal fees, are included in general and administrative expenses in the accompanying condensed consolidated statements of operations.

Speedpay contributed approximately $88.7 million in revenue and $12.3 million in operating income for the three months ended March 31, 2020.

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In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of March 31, 2020 (in thousands, except weighted average useful lives):

	Amount		Weighted Average Useful Lives
Current assets:
Cash and cash equivalents	$	135
Receivables, net of allowances	17,658
Settlement assets	239,604
Prepaid expenses	317
Other current assets	19,585
Total current assets acquired	277,299
Noncurrent assets:
Goodwill	366,508
Software	113,600		7 years
Customer relationships	208,500		15 years
Trademarks	10,900		5 years
Other noncurrent assets	3,745
Total assets acquired	980,552
Current liabilities:
Accounts payable	6,623
Settlement liabilities	212,892
Employee compensation	1,959
Other current liabilities	3,802
Total current liabilities acquired	225,276
Noncurrent liabilities:
Other noncurrent liabilities	1,219
Total liabilities acquired	226,495
Net assets acquired	$	754,057

During the three months ended March 31, 2020, the Company made adjustments to the preliminary purchase price allocation as additional information became available for accounts payable. These adjustments and any resulting adjustments to the statements of operations were not material to the Company’s previously reported operating results or financial position.

Factors contributing to the purchase price that resulted in the goodwill (which is tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company, enhanced product capabilities, complementary products, and customers.

Unaudited Pro Forma Financial Information

The pro forma financial information in the table below presents the combined results of operations for ACI and Speedpay as if the acquisition had occurred January 1, 2018. The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transaction been in effect for the periods presented. This pro forma information is not intended to represent or be indicative of actual results had the acquisition occurred as of the beginning of each period, and does not reflect potential synergies, integration costs, or other such costs or savings.

Certain pro forma adjustments have been made to net loss for the three months ended March 31, 2019, to give effect to estimated adjustments that remove the amortization expense on eliminated Speedpay historical identifiable intangible assets, add amortization expense for the value of acquired identified intangible assets (primarily acquired software, customer relationships, and trademarks), and add estimated interest expense on the Company’s additional Delayed Draw Term Loan and Revolving Credit Facility borrowings. Additionally, certain transaction expenses that are a direct result of the acquisition have

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been excluded. The three months ended March 31, 2020, is not presented as Speedpay is included in the Company's consolidated results for the entire period.

The following is the unaudited summarized pro forma financial information (in thousands, except per share data):

	Three Months Ended March 31, 2019
Pro forma revenue	$	294,059
Pro forma net loss	$	(21,245)
Pro forma loss per share:
Basic	$	(0.18)
Diluted	$	(0.18)

Walletron

On May 9, 2019, the Company also completed the acquisition of Walletron, which delivers patented mobile wallet technology. The Company has included the financial results of Walletron in the condensed consolidated financial statements from the date of acquisition, which were not material.

4. Debt

As of March 31, 2020, the Company had $230.0 million, $746.3 million, and $400.0 million outstanding under its Revolving Credit Facility, Term Loan, and Senior Notes, respectively, with up to $270.0 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended.   

Credit Agreement

On April 5, 2019, the Company (and its wholly-owned subsidiaries, ACI Worldwide Corp. and ACI Payments, Inc. entered into the Second Amended and Restated Credit Agreement (the “Credit Agreement”) with the lenders, and Bank of America, N.A., as administrative agent for the lenders, to amend and restate the Company's existing agreement, as amended, dated February 24, 2017.

The Credit Agreement consists of (a) a five-year $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”), which includes sublimits for (1) the issuance of standby letters of credit and (2) swingline loans, (b) a five-year $279.0 million senior secured term loan facility (the "Initial Term Loan") and (c) a five-year $500.0 million Delayed Draw Term Loan (together with the Initial Term Loan, the "Term Loans", and together with the Initial Term Loan and the Revolving Credit Facility, the “Credit Facility”). The Credit Agreement also allows the Company to request optional incremental term loans and increases in the revolving commitment. The Credit Facility will mature on April 5, 2024.

At the Company’s option, borrowings under the Credit Facility bear interest at an annual rate equal to, either (a) a base rate determined by reference to the highest of (1) the annual interest rate publicly announced by the administrative agent as its Prime Rate, (2) the federal funds effective rate plus 1/2 of 1%, or (3) a London Interbank Offered Rate (“LIBOR”) rate determined by reference to the costs of funds for U.S. dollar deposits for a one-month interest period, adjusted for certain additional costs, plus 1% or (b) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowings, adjusted for certain additional costs, plus an applicable margin. Based on the calculation of the applicable consolidated total leverage ratio, the applicable margin for borrowings under the Credit Facility is between 0.25% to 1.25% with respect to base rate borrowings and between 1.25% and 2.25% with respect to LIBOR rate borrowings. Interest is due and payable monthly. The interest rate in effect for the Credit Facility as of March 31, 2020, was 3.17%.

The Company is also required to pay (a) a commitment fee related to the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears, (b) letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the applicable margin on LIBOR rate borrowings under the Revolving Credit Facility on an annual basis, payable quarterly in arrears, and (c) customary fronting fees for the issuance of letters of credit fees and agency fees.

The Company’s obligations under the Credit Facility and cash management arrangements entered into with lenders under the Credit Facility (or affiliates thereof) and the obligations of the subsidiary guarantors are secured by first-priority security interests in substantially all assets of the Company and any guarantor, including 100% of the capital stock of ACI Worldwide Corp. and each domestic subsidiary of the Company, each domestic subsidiary of any guarantor, and 65% of the voting capital stock of each foreign subsidiary of the Company that is directly owned by the Company or a guarantor, in each case subject to

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certain exclusions set forth in the credit documentation governing the Credit Facility. The collateral agreement of the Credit Agreement, as amended, released the lien on certain assets of ACI Payments, Inc., our electronic bill presentment and payment affiliate, to allow ACI Payments, Inc. to comply with certain eligible securities and unencumbered asset requirements related to money transmitter or transfer license rules and regulations.

The Credit Agreement contains a number of covenants that, among other things and subject to certain exceptions, restrict the Company’s and its subsidiaries' ability to: create, incur, assume or suffer to exist any additional indebtedness; create, incur, assume or suffer to exist any liens; enter into agreements and other arrangements that include negative pledge clauses; pay dividends on capital stock or redeem, repurchase or retire capital stock or subordinated indebtedness; create restrictions on the payment of dividends or other distributions by subsidiaries; make investments, loans, advances and acquisitions; merge, consolidate or enter into any similar combination or sell assets, including equity interests of the subsidiaries; enter into sale and leaseback transactions; directly or indirectly engage in transactions with affiliates; alter in any material respect the character or conduct of the business; enter into amendments of or waivers under subordinated indebtedness, organizational documents, and certain other material agreements; and hold certain assets and incur certain liabilities.

Expected Discontinuation of LIBOR

In July 2017, the United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced it will no longer compel banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee has proposed the Secured Overnight Financing Rate ("SOFR") as its recommended alternative to LIBOR, and the first publication of SOFR rates was released in April 2018.

The Company is evaluating the potential impact of the transition from LIBOR as an interest rate benchmark to other potential alternative reference rates, including SOFR. The Company's Credit Agreement is currently indexed to LIBOR and the maturity date of the Credit Agreement extends beyond 2021. The Credit Agreement contemplates the discontinuation of LIBOR and provides options for the Company in such an event. The Company will continue to actively assess the related opportunities and risks involved in this transition.

Senior Notes

On August 21, 2018, the Company completed a $400.0 million offering of the 2026 Notes at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The 2026 Notes bear interest at an annual rate of 5.750%, payable semi-annually in arrears on February 15 and August 15 of each year. The 2026 Notes will mature on August 15, 2026.

Maturities on debt outstanding as of March 31, 2020, are as follows (in thousands):

Fiscal Year Ending December 31,
Remainder of 2020	$	29,213
2021	38,950
2022	50,431
2023	69,906
2024	787,823
Thereafter	400,000
Total	$	1,376,323

The Credit Agreement and 2026 Notes contain certain customary affirmative covenants and negative covenants that limit or restrict, subject to certain exceptions, the incurrence of liens, indebtedness of subsidiaries, mergers, advances, investments, acquisitions, transactions with affiliates, change in nature of business, and the sale of the assets. In addition, the Credit Agreement and 2026 Notes contain certain customary mandatory prepayment provisions. The Company is also required to maintain a consolidated leverage ratio at or below a specified amount and an interest coverage ratio at or above a specified amount. As specified in the Credit Agreement and 2026 Notes agreement, if certain events occur and continue, the Company may be required to repay all amounts outstanding under the Credit Facility and 2026 Notes. As of March 31, 2020, and at all times during the period, the Company was in compliance with its financial debt covenants.

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Total debt is comprised of the following (in thousands):

	March 31, 2020		December 31, 2019
Term loans	$	746,323	$	756,060
Revolving credit facility	230,000		239,000
5.750% Senior notes, due August 2026	400,000		400,000
Debt issuance costs	(20,694)		(21,905)
Total debt	1,355,629		1,373,155
Less: current portion of term loans	38,950		38,950
Less: current portion of debt issuance costs	(4,773)		(4,802)
Total long-term debt	$	1,321,452	$	1,339,007

Overdraft Facility

In 2019, the Company and ACI Payments, Inc. entered in to a $140.0 million uncommitted overdraft facility with Bank of America, N.A. The overdraft facility bears interest at LIBOR plus 0.875% based on the Company’s average outstanding balance and the frequency in which overdrafts occur. The overdraft facility acts as a secured loan under the terms of the Credit Agreement to provide an additional funding mechanism for timing differences that can occur in the bill payment settlement process. Amounts outstanding on the overdraft facility are included in other current liabilities in the condensed consolidated balance sheet. As of March 31, 2020, there was no amount outstanding on the overdraft facility. As of December 31, 2019, there was $1.5 million outstanding on the overdraft facility.

Other

As of March 31, 2020, and December 31, 2019, $13.8 million was outstanding related to certain multi-year license agreements for internal-use software, of which $6.0 million and $7.8 million was included in other current liabilities and other noncurrent liabilities, respectively, in the condensed consolidated balance sheets. Upon execution, these arrangements have been treated as a non-cash investing and financing activity for purposes of the condensed consolidated statements of cash flows.

5. Stock-Based Compensation Plans

Employee Stock Purchase Plan

Shares issued under the 2017 Employee Stock Purchase Plan during the three months ended March 31, 2020 and 2019, totaled 31,794 and 32,174, respectively.

Stock Options

A summary of stock option activity is as follows:

	Number of Shares	Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value of In-the-Money Options ($)
Outstanding as of December 31, 2019	4,006,816	$	18.18
Exercised	(23,223)	17.21
Forfeited	(57,744)	19.08
Expired	(6,090)	18.44
Outstanding as of March 31, 2020	3,919,759	$	18.17	3.13	$	23,427,581
Exercisable as of March 31, 2020	3,772,523	$	18.10	3.18	$	22,816,683

The total intrinsic value of stock options exercised during the three months ended March 31, 2020 and 2019, was $0.3 million and $5.3 million, respectively. There were no stock options granted during the three months ended March 31, 2020 or 2019.

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Long-term Incentive Program Performance Share Awards

A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) is as follows:

	Number of Shares at Expected Attainment	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	669,469	$	20.12
Vested	(668,240)	20.12
Forfeited	(5,368)	20.12
Change in attainment	4,139	20.12
Nonvested as of March 31, 2020	—	$	—

During the three months ended March 31, 2020, a total of 668,240 LTIPs vested. The Company withheld 165,237 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

Restricted Share Awards

A summary of nonvested restricted share awards (“RSAs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	92,842	$	20.13
Vested	(88,913)	20.12
Forfeited	(3,929)	20.35
Nonvested as of March 31, 2020	—	$	—

During the three months ended March 31, 2020, a total of 88,913 RSAs vested. The Company withheld 28,233 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

Total Shareholder Return Awards

A summary of nonvested total shareholder return awards (“TSRs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	1,062,291	$	35.77
Granted	677,195	30.01
Vested	(199,413)	24.37
Forfeited	(59,733)	38.95
Change in payout rate	(14,259)	24.37
Nonvested as of March 31, 2020	1,466,081	$	34.64

During the three months ended March 31, 2020, a total of 199,413 TSRs awards granted in fiscal 2017 vested and achieved a payout rate of 93% based on the Company's total shareholder return as compared to a group of peer companies over a three-year performance period. The Company withheld 53,033 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

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The fair value of TSRs granted during the three months ended March 31, 2020 and 2019, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, using the following weighted average assumptions:

	Three Months Ended March 31,
	2020		2019
Expected life (years)	2.8		2.8
Risk-free interest rate	0.5	%	2.5	%
Expected volatility	31.4	%	29.3	%
Expected dividend yield	—		—

Restricted Share Units

A summary of nonvested restricted share unit awards (“RSUs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	1,009,404	$	29.96
Granted	726,012	25.43
Vested	(327,491)	28.40
Forfeited	(74,771)	30.02
Nonvested as of March 31, 2020	1,333,154	$	27.87

During the three months ended March 31, 2020, a total of 327,491 RSUs vested. The Company withheld 103,839 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

As of March 31, 2020, there were unrecognized compensation costs of $33.7 million related to nonvested RSUs, $31.5 million related to nonvested TSRs, and less than $0.1 million related to nonvested stock options, which the Company expects to recognize over weighted average periods of 2.4 years, 2.5 years, and 0.9 years, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended March 31, 2020 and 2019, of $7.0 million and $6.6 million, respectively, with the corresponding tax benefits of $1.4 million and $1.2 million, respectively.

6. Software and Other Intangible Assets

The carrying amount and accumulated amortization of the Company's software assets subject to amortization at each balance sheet date are as follows (in thousands):

	March 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Balance		Gross Carrying Amount		Accumulated Amortization		Net Balance
Software for resale	$	136,739	$	(122,317)	$	14,422	$	138,823	$	(122,061)	$	16,762
Software for internal use	405,794		(195,045)		210,749		400,065		(182,310)		217,755
Total software	$	542,533	$	(317,362)	$	225,171	$	538,888	$	(304,371)	$	234,517

Amortization of software for resale is computed using the greater of (a) the ratio of current gross revenues to the total of current and future gross revenues expected to be derived from the software or (b) the straight-line method over the remaining estimated useful life of generally five to ten years. Software for resale amortization expense recorded in the three months ended March 31, 2020 and 2019, totaled $1.9 million and $3.0 million, respectively. These software amortization expense amounts are reflected in cost of revenue in the condensed consolidated statements of operations.

Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally one to ten years. Software for internal use amortization expense recorded during the three months ended March 31, 2020 and

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2019, totaled $16.7 million and $10.4 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the condensed consolidated statements of operations.

The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands):

	March 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Balance		Gross Carrying Amount		Accumulated Amortization		Net Balance
Customer relationships	$	501,039	$	(166,172)	$	334,867	$	507,785	$	(160,775)	$	347,010
Trademarks and trade names	27,090		(17,801)		9,289		27,312		(17,353)		9,959
Total other intangible assets	$	528,129	$	(183,973)	$	344,156	$	535,097	$	(178,128)	$	356,969

Other intangible assets amortization expense for the three months ended March 31, 2020 and 2019, totaled $9.3 million and $5.5 million, respectively.

Based on capitalized intangible assets as of March 31, 2020, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

Fiscal Year Ending December 31,	Software Amortization		Other Intangible Assets Amortization
Remainder of 2020	$	54,143	$	27,493
2021	58,348		36,275
2022	40,407		36,143
2023	25,977		35,871
2024	20,083		31,456
Thereafter	26,213		176,918
Total	$	225,171	$	344,156

7. Common Stock and Treasury Stock

In 2005, the board approved a stock repurchase program authorizing the Company, as market and business conditions warrant, to acquire its common stock and periodically authorize additional funds for the program. In February 2018, the board approved the repurchase of the Company's common stock of up to $200.0 million, in place of the remaining purchase amounts previously authorized.

The Company repurchased 1,000,000 shares for $28.9 million under the program during the three months ended March 31, 2020. Under the program to date, the Company has repurchased 46,357,495 shares for approximately $612.3 million. As of March 31, 2020, the maximum remaining amount authorized for purchase under the stock repurchase program was $112.1 million.

8. Loss Per Share

Basic loss per share is computed in accordance with ASC 260, Earnings Per Share, based on weighted average outstanding common shares. Diluted loss per share is computed based on basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, RSUs, and certain contingently issuable shares for which performance targets have been achieved.

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The following table reconciles the weighted average share amounts used to compute both basic and diluted loss per share (in thousands):

	Three Months Ended March 31,
	2020	2019
Weighted average shares outstanding:
Basic weighted average shares outstanding	116,006	116,090
Add: Dilutive effect of stock options and RSUs	—	—
Diluted weighted average shares outstanding	116,006	116,090

The diluted loss per share computation excludes 6.7 million and 7.4 million options to purchase shares and RSUs during the three months ended March 31, 2020 and 2019, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of March 31, 2020, and December 31, 2019, was 115,882,242 and 115,986,352, respectively.

9. Other, Net

Other, net is comprised of foreign currency transaction losses of $9.8 million and $1.9 million for the three months ended March 31, 2020 and 2019, respectively.

10. Segment Information

The Company reports financial performance based on its segments, ACI On Demand and ACI On Premise, and analyzes Segment Adjusted EBITDA as a measure of segment profitability.

The Company’s Chief Executive Officer is also the chief operating decision maker (“CODM”). The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from Corporate operations.

ACI On Demand serves the needs of banks, merchants, and billers who use payments to facilitate their core business. These on-demand solutions are maintained and delivered through the cloud via our global data centers and are available in either a single-tenant environment for SaaS offerings, or in a multi-tenant environment for PaaS offerings.

ACI On Premise serves customers who manage their software on site or through a third-party cloud service provider. These on-premise customers use the Company’s software to develop sophisticated solutions, which are often part of a larger system located and managed at the customer specified site. These customers require a level of control and flexibility that ACI On Premise solutions can offer, and they have the resources and expertise to take a lead role in managing these solutions.

Revenue is attributed to the reportable segments based upon the product sold and mechanism for delivery to the customer. Expenses are attributed to the reportable segments in one of three methods: (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual products, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities as well as information technology and facilities related expense for which multiple segments benefit. The Company also allocates certain depreciation costs to the segments.

Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments, and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude stock-based compensation, and net other income (expense).

Corporate and unallocated expenses consist of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, and other costs that are not considered when management evaluates segment performance.

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The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):

	Three Months Ended March 31,
	2020		2019
Revenue
ACI On Demand	$	192,950	$	109,848
ACI On Premise	98,535		96,007
Total revenue	$	291,485	$	205,855
Segment Adjusted EBITDA
ACI On Demand	$	23,121	$	(262)
ACI On Premise	30,909		28,268
Depreciation and amortization	(33,822)		(24,852)
Stock-based compensation expense	(6,950)		(6,585)
Corporate and unallocated expenses	(24,541)		(24,662)
Interest, net	(14,271)		(8,581)
Other, net	(9,758)		(1,912)
Loss before income taxes	$	(35,312)	$	(38,586)
Depreciation and amortization
ACI On Demand	$	9,332	$	7,562
ACI On Premise	3,106		3,030
Corporate	21,384		14,260
Total depreciation and amortization	$	33,822	$	24,852
Stock-based compensation expense
ACI On Demand	$	2,026	$	1,951
ACI On Premise	2,030		1,956
Corporate	2,894		2,678
Total stock-based compensation expense	$	6,950	$	6,585

Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information.

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The following is revenue by primary geographic market and primary solution category for the Company’s reportable segments for the periods indicated (in thousands):

	Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
	ACI On Demand		ACI On Premise		Total		ACI On Demand		ACI On Premise		Total
Primary Geographic Markets
Americas - United States	$	175,654	$	29,139	$	204,793	$	93,036	$	26,422	$	119,458
Americas - Other	3,233		17,941		21,174		2,743		10,945		13,688
EMEA	10,918		28,955		39,873		12,068		42,451		54,519
Asia Pacific	3,145		22,500		25,645		2,001		16,189		18,190
Total	$	192,950	$	98,535	$	291,485	$	109,848	$	96,007	$	205,855
Primary Solution Categories
Bill Payments	$	153,686	$	—	$	153,686	$	68,967	$	—	$	68,967
Digital Channels	8,393		7,563		15,956		9,788		8,725		18,513
Merchant Payments	19,014		4,106		23,120		19,339		5,022		24,361
Payments Intelligence	9,013		4,113		13,126		8,981		7,037		16,018
Real-Time Payments	997		17,299		18,296		618		14,715		15,333
Retail Payments	1,847		65,454		67,301		2,155		60,508		62,663
Total	$	192,950	$	98,535	$	291,485	$	109,848	$	96,007	$	205,855

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):

	March 31, 2020		December 31, 2019
Long-lived Assets
United States	$	1,507,574	$	1,526,046
Other	732,084		759,501
Total	$	2,239,658	$	2,285,547

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

11. Income Taxes

The effective tax rate for the three months ended March 31, 2020, was 31%. The Company reported an overall tax benefit on a pretax loss for the three months ended March 31, 2020. The losses of the Company’s foreign entities for the three months ended March 31, 2020, were $14.4 million. The effective tax rate for the three months ended March 31, 2020, was positively impacted by equity compensation excess tax benefits and state income tax benefits on domestic loss.

The effective tax rate for the three months ended March 31, 2019, was 33%. The Company reported an overall tax benefit on a pretax loss for the three months ended March 31, 2019. The losses of the Company’s foreign entities for the three months ended March 31, 2019, were $6.1 million. The effective tax rates for the three months ended March 31, 2019, was positively impacted by equity compensation excess tax benefits and state income tax benefits on domestic loss.

The Company’s effective tax rate could fluctuate on a quarterly basis due to the occurrence of significant and unusual or infrequent items, such as vesting of stock-based compensation or foreign currency gains and losses. The Company’s effective tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, the Company is occasionally subject to examination of its income tax returns by tax authorities in the jurisdictions it operates. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes.

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As of March 31, 2020, and December 31, 2019, the amount of unrecognized tax benefits for uncertain tax positions was $30.0 million and $29.0 million, respectively, excluding related liabilities for interest and penalties of $1.2 million as of March 31, 2020 and December 31, 2019.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $11.7 million, due to the settlement of various audits and the expiration of statutes of limitation.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This report contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended.

Forward-looking statements in this report include, but are not limited to, statements regarding future operations, business strategy, business environment, key trends, and, in each case, statements related to expected financial and other benefits. Many of these factors will be important in determining our actual future results. Any or all of the forward-looking statements in this report may turn out to be incorrect. They may be based on inaccurate assumptions or may not account for known or unknown risks and uncertainties. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially from those expressed or implied in any forward-looking statements, and our business, financial condition and results of operations could be materially and adversely affected. In addition, we disclaim any obligation to update any forward-looking statements after the date of this report, except as required by law.

All forward-looking statements in this report are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission (“SEC”). The cautionary statements in this report expressly qualify all of our forward-looking statements. Factors that could cause actual results to differ from those expressed or implied in the forward-looking statements include, but are not limited to, those discussed in our Risk Factors in Part 1, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and in Part 2, Item 1A of this Form 10-Q.

The following discussion should be read together with our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and with our financial statements and related notes contained in this Form 10-Q. Results for the three months ended March 31, 2020, are not necessarily indicative of results that may be attained in the future.

COVID-19 Pandemic

In December 2019, an outbreak of COVID-19 was identified in China and was subsequently recognized as a global pandemic by the World Health Organization (“WHO”) on March 11, 2020. Since that time, COVID-19 has spread around the world and throughout the United States, including in the regions and countries in which we operate. Federal, state and local governments in the U.S and around the world have imposed restrictions on travel and business operations and are advising or requiring individuals to limit or eliminate time outside of their homes. Temporary closures of businesses have also been ordered in certain jurisdictions, and other businesses have temporarily closed voluntarily. These actions expanded significantly in March and April of 2020 throughout the U.S. Consequently, the COVID-19 outbreak has severely restricted the level of economic activity in the U.S. and around the world.

The outbreak has resulted in authorities implementing numerous measures to try to contain the virus, such as quarantines and shelter in place orders. These measures may remain in place for a significant period of time and adversely affect our business, operations and financial condition as well as the business, operations and financial conditions of our customers and business partners. The spread of the virus has also caused us to modify our business practices (including employee work locations and cancellation of physical participation in meetings) in ways that may be detrimental to our business (including working remotely and its attendant cybersecurity risks). We may take further actions as may be required by government authorities or that we determine are in the best interests of our employees and customers. There is no certainty that such measures will be sufficient to mitigate the risks posed by the virus or otherwise be satisfactory to government authorities.

ACI Worldwide, Inc. ("ACI") created a dedicated Crisis Management Team that proactively oversaw and executed our business continuity plans and has taken a variety of measures to ensure the ongoing availability of our products, solutions and services for our customers around the world, while taking health and safety measures for our employees. We monitor information on

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COVID-19 from the U.S. Centers for Disease Control ("CDC") and the WHO and believe we are adhering to their recommendations regarding the health and safety of our employees. To address the potential human impact of the virus, most of our staff, with the exception of essential personnel (e.g. certain data center personnel), are telecommuting. For those essential personnel not telecommuting, we have implemented appropriate social distancing policies and have stepped-up facility cleaning at each location. Non-essential domestic and international travel for our employees has ceased. Essential travel for mission critical functions is allowed only on an exception basis with a 14-day self-quarantine period required upon an employee’s return before they may enter an ACI office. Travel is restricted without exception for China, Hong Kong, Italy, and South Korea.

ACI believes it has sufficient liquidity to continue business operations during this volatile and uncertain period. We have $389 million of available liquidity as of March 31, 2020, consisting of cash on hand and availability under our revolving credit facility. To begin to address the potential long-term financial impacts of the virus, we have delayed non-essential capital spending and operating expenses.

The pandemic presents potential new risks to the Company’s business. Although there have been logistical and other challenges to date, there has been no material adverse impact on the Company’s first quarter 2020 results of operations, excluding the impacts of foreign exchange losses as a result of foreign currency volatility. The Company began to see the impacts of COVID-19 on certain customer transaction volumes in late March and continues to see changes in the second quarter of 2020, primarily within the Merchants and Billers customer-base of the Company's ACI On Demand segment. The effect of COVID-19 and related events, including those described above and those not yet known or knowable, could have a negative effect on the stock price, business prospects, financial condition, and results of operations of the Company, including as a result of quarantines, market volatility, market downturns, changes in consumer behavior, business closures, or the inability of our customers to satisfy their obligations to the Company. More specifically, for those Merchant and Biller customers under consumption-based contracts, continued declines in transaction volumes could negatively impact the Company's financial position, results of operations and cash flows.

For the reasons discussed above, ACI cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position, and liquidity. Notwithstanding any actions by national, state, and local governments to mitigate the impact of COVID-19 or by the Company to address the adverse impacts of COVID-19, there can be no assurance that any of the foregoing activities will be successful in mitigating or preventing significant adverse effects on the Company.

Overview

ACI, the Universal Payments (“UP”) company, powers electronic payments for more than 5,100 organizations around the world. More than 1,000 of the largest banks and intermediaries, as well as thousands of leading global merchants, rely on ACI to execute $14 trillion each day in payments and securities. In addition, myriad organizations utilize our electronic bill presentment and payment services. Through our comprehensive suite of software solutions delivered on customers' premises, through a third-party public cloud environment or through ACI's private cloud, we provide real-time, immediate payments capabilities and enable the industry's most complete omni-channel payments experience.

Our products are sold and supported through distribution networks covering three geographic regions – the Americas; Europe, Middle East, and Africa (“EMEA”); and Asia/Pacific. Each distribution network has its own globally coordinated sales force that it supplements with independent reseller and/or distributor networks. Our products and solutions are used globally by banks, financial intermediaries, merchants, and billers, such as third-party electronic payment processors, payment associations, switch interchanges, and a wide range of transaction-generating endpoints, including ATMs, merchant point-of-sale (“POS”) terminals, bank branches, mobile phones, tablets, corporations, and Internet commerce sites. Accordingly, our business and operating results are influenced by trends such as information technology spending levels, the growth rate of electronic payments, mandated regulatory changes, and changes in the number and type of customers in the financial services industry. Our products are marketed under the ACI brand.

We derive a majority of our revenues from domestic operations and believe we have large opportunities for growth in international markets as well as continued expansion domestically in the United States. Refining our global infrastructure is a critical component of driving our growth. We also continue to maintain centers of expertise in Timisoara, Romania and Pune and Bangalore in India, as well as key operational centers such as Cape Town, South Africa and in multiple locations in the United States.

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Key trends that currently impact our strategies and operations include:

Increasing electronic payment transaction volumes. Electronic payment volumes continue to increase around the world, taking market share from traditional cash and check transactions. In their 2019 World Payments Report, Capgemini predicts that non-cash transaction volumes will grow in volume at an annual rate of 14.0%, from 538.6 billion in 2017 to 1,045.5 billion in 2022, with varying growth rates based on the type of payment and part of the world. We leverage the growth in transaction volumes through the licensing of new systems to customers whose older systems cannot handle increased volume, through the sale of capacity upgrades to existing customers, and through the scalability of our platform-based solutions. Furthermore, electronic payments have taken on greater importance during the global COVID-19 crisis as consumers increasingly prefer cashless payment options and shift to shopping and paying bills online.

Adoption of real-time payments. Customer expectations, from both consumers and billers, are driving the payments world to more real-time delivery. In the U.K., payments sent through the traditional ACH multi-day batch service can now be sent through the Faster Payments service giving almost immediate access to the funds, and this is being considered and implemented in several countries including Malaysia, Thailand, Singapore, Australia, the United States, and various countries in Europe. In Europe, the ECB TIPS and EBA RT1 schemes are driving real-time payments adoption, while in the U.S. market, Zelle and TCH Real-Time Payments are now driving adoption. Corporate customers expect real-time information on the status of their payments instead of waiting for an end-of-day report. Regulators expect banks to be monitoring key measures like liquidity in real time. ACI’s focus has always been on the real-time execution of transactions and delivery of information through real-time tools, such as dashboards, so our experience will be valuable in addressing this trend.

Increasing competition. The electronic payments market is highly competitive and subject to rapid change. Our competition comes from in-house information technology departments, third-party electronic payment processors, and third-party software companies located both within and outside of the U.S. Many of these companies are significantly larger than ACI and have significantly greater financial, technical, and marketing resources. As electronic payment transaction volumes increase, third-party processors tend to provide competitive solutions, particularly among customers that do not seek to differentiate their electronic payment offerings or are eliminating banks from the payments service. As consolidation in the financial services and financial technology industries continues, we anticipate that competition for those customers will intensify.

Adoption of cloud technology. To leverage lower-cost computing technologies, some banks, financial intermediaries, merchants, and billers are seeking to transition their systems to make use of cloud technology. Our investments and partnerships provide us the grounding to deliver cloud capabilities now and in the future. Market sizing data from Ovum indicates that spend on SaaS and PaaS payment systems is growing faster than spend on installed applications.

Electronic payments fraud and compliance. As electronic payment transaction volumes increase, organized criminal organizations continue to find ways to commit a growing volume of fraudulent transactions using a wide range of techniques. Banks, financial intermediaries, merchants, and billers continue to seek ways to leverage new technologies to identify and prevent fraudulent transactions and other attacks such as denial of service attacks. Due to concerns with international terrorism and money laundering, banks and financial intermediaries in particular are being faced with increasing scrutiny and regulatory pressures. We continue to see opportunity to offer our fraud detection solutions with advanced machine learning capabilities to help customers manage the growing levels of electronic payments fraud and compliance activity.

Adoption of smartcard technology. In many markets, issuers are being required to issue new cards with embedded chip technology, with the merchant liability shift having gone into effect in 2015 in the U.S. (and the fuel dispenser liability shift occurring later in 2020). Chip-based cards are more secure, harder to copy, and offer the opportunity for multiple functions on one card (e.g., debit, credit, electronic purse, identification, health records, etc.). While this combats card-present fraud, it results in greater card-not-present fraud (e.g., fraud at eCommerce sites).

Single Euro Payments Area (SEPA). SEPA, primarily focused on the European economic community and the U.K., is designed to facilitate lower costs for cross-border payments and reduce timeframes for settling electronic payment transactions. The transition to SEPA payment mechanisms will drive more volume to these systems with the potential to cause banks to review the capabilities of the systems supporting these payments. Our retail payments and real-time payments solutions facilitate key functions that help banks and financial intermediaries address these mandated regulations.

European Payment Service Directive (PSD2). PSD2, which was ratified by the European Parliament in 2015, required member states to implement new payment regulations in 2018. The XS2A provision effectively creates a new market opportunity where banks in European Union member countries must provide open API standards to customer data, thus allowing authorized third-party providers to enter the market.

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Financial institution consolidation. Consolidation continues on a national and international basis, as financial institutions seek to add market share and increase overall efficiency. Such consolidations have increased, and may continue to increase, in their number, size, and market impact as a result of recent economic conditions affecting the banking and financial industries. There are several potential negative effects of increased consolidation activity. Continuing consolidation of financial institutions may result in a smaller number of existing and potential customers for our products and services. Consolidation of two of our customers could result in reduced revenues if the combined entity were to negotiate greater volume discounts or discontinue use of certain of our products. Additionally, if a non-customer and a customer combine and the combined entity decides to forego future use of our products, our revenue would decline. Conversely, we could benefit from the combination of a non-customer and a customer when the combined entity continues use of our products and, as a larger combined entity, increases its demand for our products and services. We tend to focus on larger financial institutions as customers, often resulting in our solutions being the ones that survive in the consolidated entity.

Global vendor sourcing. Global and regional banks, financial intermediaries, merchants, and billers are aiming to reduce the costs in supplier management by picking suppliers that can service them across all their geographies instead of allowing each country operation to choose suppliers independently. Our global footprint from both a customer and a delivery perspective enables us to be successful in this internationally-sourced market. However, projects in these environments tend to be more complex and therefore of higher risk.

Electronic payments convergence. As electronic payment volumes grow and pressures to lower overall cost per transaction increase, banks and financial intermediaries are seeking methods to consolidate their payment processing across the enterprise. We believe that the strategy of using service-oriented architectures to allow for re-use of common electronic payment functions, such as authentication, authorization, routing and settlement, will become more common. Using these techniques, banks and financial intermediaries will be able to reduce costs, increase overall service levels, enable one-to-one marketing in multiple bank channels, leverage volumes for improved pricing and liquidity, and manage enterprise risk. Our product strategy is, in part, focused on this trend, by creating integrated payment functions that can be re-used by multiple bank channels, across both the consumer and wholesale bank. While this trend presents an opportunity for us, it may also expand the competition from third-party electronic payment technology and service providers specializing in other forms of electronic payments. Many of these providers are larger and have significantly greater financial, technical and marketing resources.

Mobile banking and payments. There is a growing demand for the ability to carry out banking services or make payments using a mobile phone. According to analysis from the Deloitte Center for Financial Services in 2018, 84% of global consumers use online banking and 72% use mobile banking applications. Additionally, digital channels are used more frequently than bank branches and ATMs across all generations and in all countries. Our customers have been making use of existing products to deploy mobile banking, mobile payments, and mobile commerce solutions for their customers in many countries. In addition, ACI has invested in mobile products of our own and via partnerships to support mobile functionality in the marketplace.

Electronic bill payment and presentment. EBPP encompasses all facets of bill payment, including biller direct, where customers initiate payments on biller websites, the consolidator model, where customers initiate payments on a financial institution’s website, and walk-in bill payment, as one might find in a convenience store. The EBPP market continues to grow as consumers move away from traditional forms of paper-based payments. Nearly three out of four (73%) online payments are made at the billers’ sites, rather than through banking websites. The biller-direct solutions are seeing strong growth as billers migrate these services to outsourcers, such as ACI, from legacy systems built in-house. We believe that EBPP remains ripe for outsourcing, as a significant amount of biller-direct transactions are still processed in-house. As billers seek to manage costs and improve efficiency, we believe that they will continue to look to third-party EBPP vendors that can offer a complete solution for their billing needs. ACI is supporting Billers during the COVID-19 crisis with new, automated tools that allow consumers to defer payments, set-up flexible payment plans, and request virtual appointments to discuss payment options.

Several other factors related to our business may have a significant impact on our operating results from year to year. For example, the accounting rules governing the timing of revenue recognition are complex and it can be difficult to estimate when we will recognize revenue generated by a given transaction. Factors such as creditworthiness of the customer and timing of transfer of control or acceptance of our products may cause revenues related to sales generated in one period to be deferred and recognized in later periods. For arrangements in which services revenue is deferred, related direct and incremental costs may also be deferred. Additionally, while the majority of our contracts are denominated in the U.S. dollar, a substantial portion of our sales are made, and some of our expenses are incurred, in the local currency of countries other than the United States. Fluctuations in currency exchange rates in a given period may result in the recognition of gains or losses for that period.

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We continue to seek ways to grow through organic sources, partnerships, alliances, and acquisitions. We continually look for potential acquisitions designed to improve our solutions’ breadth or provide access to new markets. As part of our acquisition strategy, we seek acquisition candidates that are strategic, capable of being integrated into our operating environment, and accretive to our financial performance.

Chief Executive Officer

On February 18, 2020, we announced the appointment of Odilon Almeida as the Company’s new President and Chief Executive Officer, effective March 9, 2020. Mr. Almeida was also appointed to serve as a member of ACI’s board of directors.

Acquisition

Speedpay

On May 9, 2019, we acquired E Commerce Group Products, Inc. ("ECG"), a subsidiary of The Western Union Company, along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") for $754.1 million in cash, including working capital adjustments, pursuant to a Stock Purchase Agreement, among the Company, The Western Union Company, and ACI Worldwide Corp., our wholly owned subsidiary.

To fund the acquisition, we amended our existing Credit Agreement, dated February 24, 2017, for an additional $500.0 million senior secured term loan, in addition to drawing $250.0 million on the available Revolving Credit Facility. See Note 4, Debt, to our unaudited condensed consolidated financial statements in Part I of this Form 10-Q for terms of the Credit Agreement. The remaining acquisition consideration was funded with cash on hand.

Backlog

Backlog is comprised of:

•Committed Backlog, which includes (1) contracted revenue that will be recognized in future periods (contracted but not recognized) from software license fees, maintenance fees, service fees, and SaaS and PaaS fees specified in executed contracts (including estimates of variable consideration if required under ASC 606 and included in the transaction price for those contracts, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods and (2) estimated future revenues from software license fees, maintenance fees, services fees, and SaaS and PaaS fees specified in executed contracts.

•Renewal Backlog, which includes estimated future revenues from assumed contract renewals to the extent we believe recognition of the related revenue will occur within the corresponding backlog period.

We have historically included assumed renewals in backlog estimates based upon automatic renewal provisions in the executed contract and our historic experience with customer renewal rates.

Our 60-month backlog estimates are derived using the following key assumptions:

•License arrangements are assumed to renew at the end of their committed term or under the renewal option stated in the contract at a rate consistent with historical experience. If the license arrangement includes extended payment terms, the renewal estimate is adjusted for the effects of a significant financing component.

•Maintenance fees are assumed to exist for the duration of the license term for those contracts in which the committed maintenance term is less than the committed license term.

•SaaS and PaaS arrangements are assumed to renew at the end of their committed term at a rate consistent with our historical experiences.

•Foreign currency exchange rates are assumed to remain constant over the 60-month backlog period for those contracts stated in currencies other than the U.S. dollar.

•Our pricing policies and practices are assumed to remain constant over the 60-month backlog period.

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In computing our 60-month backlog estimate, the following items are specifically not taken into account:

•Anticipated increases in transaction, account, or processing volumes by our customers.

•Optional annual uplifts or inflationary increases in recurring fees.

•Services engagements, other than SaaS and PaaS arrangements, are not assumed to renew over the 60-month backlog period.

•The potential impact of consolidation activity within our markets and/or customers.

We review our customer renewal experience on an annual basis. The impact of this review and subsequent updates may result in a revision to the renewal assumptions used in computing the 60-month backlog estimates. In the event a significant revision to renewal assumptions is determined to be necessary, prior periods will be adjusted for comparability purposes.

The following table sets forth our 60-month backlog estimate, by reportable segment, as of March 31, 2020, and December 31, 2019 (in millions). Dollar amounts reflect foreign currency exchange rates as of each period end.

	March 31, 2020		December 31, 2019
ACI On Demand	$	3,781	$	3,855
ACI On Premise	1,933		1,977
Total	$	5,714	$	5,832
	March 31, 2020		December 31, 2019
Committed	$	2,095	$	2,168
Renewal	3,619		3,664
Total	$	5,714	$	5,832

Estimates of future financial results require substantial judgment and are based on several assumptions, as described above. These assumptions may turn out to be inaccurate or wrong for reasons outside of management’s control. For example, our customers may attempt to renegotiate or terminate their contracts for many reasons, including mergers, changes in their financial condition, or general changes in economic conditions (e.g. economic declines resulting from COVID-19) in the customer’s industry or geographic location. We may also experience delays in the development or delivery of products or services specified in customer contracts, which may cause the actual renewal rates and amounts to differ from historical experiences. Changes in foreign currency exchange rates may also impact the amount of revenue recognized in future periods. Accordingly, there can be no assurance that amounts included in backlog estimates will generate the specified revenues or that the actual revenues will be generated within the corresponding 60-month period. Additionally, because certain components of Committed Backlog and all of Renewal Backlog estimates are operating metrics, the estimates are not required to be subject to the same level of internal review or controls as contracted but not recognized Committed Backlog.

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RESULTS OF OPERATIONS

The following table presents the condensed consolidated statements of operations, as well as the percentage relationship to total revenues for items included in our condensed consolidated statements of operations (in thousands):

Three Month Period Ended March 31, 2020, Compared to the Three Month Period Ended March 31, 2019

	Three Months Ended March 31,
	2020								2019
	Amount		% of Total Revenue		$ Change  vs 2019		% Change vs 2019		Amount		% of Total Revenue
Revenues:
Software as a service and platform as a service	$	192,950	66	%	$	84,393	78	%	$	108,557	53	%
License	28,129		10	%	7,051		33	%	21,078		10	%
Maintenance	53,280		18	%	(1,831)		(3)	%	55,111		27	%
Services	17,126		6	%	(3,983)		(19)	%	21,109		10	%
Total revenues	291,485		100	%	85,630		42	%	205,855		100	%
Operating expenses:
Cost of revenue	165,837		57	%	50,896		44	%	114,941		56	%
Research and development	39,024		13	%	2,830		8	%	36,194		18	%
Selling and marketing	30,083		10	%	653		2	%	29,430		14	%
General and administrative	35,926		12	%	4,409		14	%	31,517		15	%
Depreciation and amortization	31,898		11	%	10,032		46	%	21,866		11	%
Total operating expenses	302,768		103	%	68,820		29	%	233,948		114	%
Operating loss	(11,283)		(3)	%	16,810		(60)	%	(28,093)		(14)	%
Other income (expense):
Interest expense	(17,171)		(6)	%	(5,557)		48	%	(11,614)		(6)	%
Interest income	2,900		1	%	(133)		(4)	%	3,033		1	%
Other, net	(9,758)		(3)	%	(7,846)		410	%	(1,912)		(1)	%
Total other income (expense)	(24,029)		(8)	%	(13,536)		129	%	(10,493)		(6)	%
Loss before income taxes	(35,312)		(11)	%	3,274		(8)	%	(38,586)		(20)	%
Income tax benefit	(10,885)		(4)	%	1,738		(14)	%	(12,623)		(6)	%
Net loss	$	(24,427)	(7)	%	$	1,536	(6)	%	$	(25,963)	(14)	%

Revenues

Total revenue for the three months ended March 31, 2020, increased $85.6 million, or 42%, as compared to the same period in 2019. The acquisition of Speedpay contributed $88.7 million to total revenue during the three months ended March 31, 2020.

Total revenue was $1.5 million lower for the three months ended March 31, 2020, compared to the same period in 2019, due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of the acquisition of Speedpay and foreign currency, total revenue for the three months ended March 31, 2020, decreased $1.6 million, or 1%, compared to the same period in 2019.

Software as a Service (“SaaS”) and Platform as a Service (“PaaS”) Revenue

The Company’s SaaS arrangements allow customers to use certain software solutions (without taking possession of the software) in a single-tenant cloud environment on a subscription basis. The Company’s PaaS arrangements allow customers to use certain software solutions (without taking possession of the software) in a multi-tenant cloud environment on a subscription or consumption basis. Included in SaaS and PaaS revenue are fees paid by our customers for use of our Biller solutions. Biller-related fees may be paid by our clients or directly by their customers and may be a percentage of the underlying transaction amount, a fixed fee per executed transaction or a monthly fee for each customer enrolled. SaaS and PaaS costs include payment card interchange fees, the amounts payable to banks and payment card processing fees, which are included in cost of revenue in the condensed consolidated statements of operations. All fees from SaaS and PaaS arrangements that do not qualify for

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treatment as a distinct performance obligation, which includes set-up fees, implementation or customization services, and product support services, are included in SaaS and PaaS revenue.

SaaS and PaaS revenue increased $84.4 million, or 78%, during the three months ended March 31, 2020, as compared to the same period in 2019. The acquisition of Speedpay contributed $88.7 million to SaaS and PaaS revenue during the three months ended March 31, 2020. SaaS and PaaS revenue was $0.3 million lower for the three months ended March 31, 2020, compared to the same period in 2019 due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of the acquisition of Speedpay and foreign currency, SaaS and PaaS revenue for the three months ended March 31, 2020, decreased $4.0 million, or 4%, compared to the same period in 2019, primarily due to changes in the timing and magnitude of transaction volumes for Biller customers.

License Revenue

Customers purchase the right to license ACI software under multi-year, time-based software license arrangements that vary in length but are generally five years. Under these arrangements the software is installed at the customer’s location (i.e. on-premise). Within these agreements are specified capacity limits typically based on customer transaction volume. ACI employs measurement tools that monitor the number of transactions processed by customers and if contractually specified limits are exceeded, additional fees are charged for the overage. Capacity overages may occur at varying times throughout the term of the agreement depending on the product, the size of the customer, and the significance of customer transaction volume growth. Depending on specific circumstances, multiple overages or no overages may occur during the term of the agreement.

Included in license revenue are license and capacity fees that are payable at the inception of the agreement or annually (initial license fees). License revenue also includes license and capacity fees payable quarterly or monthly due to negotiated customer payment terms (monthly license fees). The Company recognizes revenue in advance of billings for software license arrangements with extended payment terms and adjusts for the effects of the financing component, if significant.

License revenue increased $7.1 million, or 33%, during the three months ended March 31, 2020, as compared to the same period in 2019. License revenue was $0.1 million lower for the three months ended March 31, 2020, compared to the same period in 2019 due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of foreign currency, license revenue for the three months ended March 31, 2020, increased $7.1 million, or 34%, compared to the same period in 2019.

The increase in total license revenue was primarily driven by the timing and relative size of license and capacity events during the three months ended March 31, 2020, as compared to the same period in 2019.

Maintenance Revenue

Maintenance revenue includes standard and premium maintenance and any post contract support fees received from customers for the provision of product support services.

Maintenance revenue decreased $1.8 million, or 3%, during the three months ended March 31, 2020, as compared to the same period in 2019. Maintenance revenue was $0.7 million lower for the three months ended March 31, 2020, as compared to the same period in 2019 due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of foreign currency, maintenance revenue for the three months ended March 31, 2020, decreased $1.1 million, or 2%, compared to the same period in 2019.

Services Revenue

Services revenue includes fees earned through implementation services and other professional services. Implementation services include product installations, product configurations, and custom software modifications (“CSMs”). Other professional services include business consultancy, technical consultancy, on-site support services, CSMs, product education, and testing services. These services include new customer implementations as well as existing customer migrations to new products or new releases of existing products.

Services revenue decreased $4.0 million, or 19%, during the three months ended March 31, 2020, as compared to the same period in 2019. Services revenue was $0.4 million lower for the three months ended March 31, 2020, as compared to the same period in 2019 due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of foreign currency, services revenue for the three months ended March 31, 2020, decreased $3.6 million, or 17%, compared to the same period in 2019. The decrease in services revenue was primarily driven by the timing and magnitude of project-related work during the three months ended March 31, 2020, as compared to the same period in 2019.

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Operating Expenses

Total operating expenses for the three months ended March 31, 2020, increased $68.8 million, or 29%, as compared to the same period in 2019. The acquisition of Speedpay contributed $76.4 million to total operating expenses during the three months ended March 31, 2020. Total operating expenses also included $8.5 million of significant transaction-related expenses, associated with cost reduction strategies implemented during the period. Total operating expenses for the three months ended March 31, 2019, included $4.7 million of significant transaction-related expenses associated with the acquisition of Speedpay. Total operating expenses were $2.1 million lower for the three months ended March 31, 2020, compared to the same period in 2019, due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of the acquisition of Speedpay, significant transaction-related expenses, and foreign currency, total operating expenses for the three months ended March 31, 2020, decreased $9.2 million, or 4%, compared to the same period in 2019, primarily due to lower cost of revenue and selling and marketing expense, partially offset by higher depreciation and amortization, general and administrative expense, and research and development expense.

Cost of Revenue

Cost of revenue includes costs to provide SaaS and PaaS services, third-party royalties, amortization of purchased and developed software for resale, the costs of maintaining our software products, as well as the costs required to deliver, install, and support software at customer sites. SaaS and PaaS service costs include payment card interchange fees, amounts payable to banks, and payment card processing fees. Maintenance costs include the efforts associated with providing the customer with upgrades, 24-hour help desk, post go-live (remote) support, and production-type support for software that was previously installed at a customer location. Service costs include human resource costs and other incidental costs such as travel and training required for both pre go-live and post go-live support. Such efforts include project management, delivery, product customization and implementation, installation support, consulting, configuration, and on-site support.

Cost of revenue increased $50.9 million, or 44%, during the three months ended March 31, 2020, compared to the same period in 2019. The acquisition of Speedpay contributed $62.0 million to cost of revenue during the three months ended March 31, 2020. Cost of revenue was $0.7 million lower for the three months ended March 31, 2020, as compared to the same period in 2019, due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of the acquisition of Speedpay and foreign currency, cost of revenue decreased $10.4 million, or 9%, for the three months ended March 31, 2020, as compared to the same period in 2019, primarily due to a $5.2 million decrease in payment card interchange and processing fees, a $2.1 million decrease in third-party product royalty expenses, and a $1.4 million decrease in amortization of acquired software.

Research and Development

Research and development (“R&D”) expenses are primarily human resource costs related to the creation of new products, improvements made to existing products as well as compatibility with new operating system releases and generations of hardware.

R&D expense increased $2.8 million, or 8%, during the three months ended March 31, 2020, as compared to the same period in 2019. The acquisition of Speedpay contributed $2.8 million to R&D expense during the three months ended March 31, 2020. R&D expense was $0.6 million lower for the three months ended March 31, 2020, as compared to the same period in 2019, due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of the acquisition of Speedpay and foreign currency, R&D expense increased $0.7 million, or 2%, for the three months ended March 31, 2020, as compared to the same period in 2019, due to an increase in professional fees and personnel and related expenses.

Selling and Marketing

Selling and marketing includes both the costs related to selling our products to current and prospective customers as well as the costs related to promoting the Company, its products and the research efforts required to measure customers’ future needs and satisfaction levels. Selling costs are primarily the human resource and travel costs related to the effort expended to license our products and services to current and potential clients within defined territories and/or industries as well as the management of the overall relationship with customer accounts. Selling costs also include the costs associated with assisting distributors in their efforts to sell our products and services in their respective local markets. Marketing costs include costs incurred to promote the Company and its products, perform or acquire market research to help the Company better understand impending changes in customer demand for and of our products, and the costs associated with measuring customers’ opinions toward the Company, our products and personnel.

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Selling and marketing expense increased $0.7 million, or 2%, during the three months ended March 31, 2020, as compared to the same period in 2019. The acquisition of Speedpay contributed $2.8 million to selling and marketing expense during the three months ended March 31, 2020. Selling and marketing expense was $0.3 million lower for the three months ended March 31, 2020, as compared to the same period in 2019, due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of the acquisition of Speedpay and foreign currency, selling and marketing expense decreased $1.8 million, or 6%, for the three months ended March 31, 2020, as compared to the same period in 2019, due to a decrease in professional fees and personnel and related expenses.

General and Administrative

General and administrative expenses are primarily human resource costs including executive salaries and benefits, personnel administration costs, and the costs of corporate support functions such as legal, administrative, human resources, and finance and accounting.

General and administrative expense increased $4.4 million, or 14%, during the three months ended March 31, 2020, as compared to the same period in 2019. Significant transaction-related expenses contributed $8.5 million to general and administrative expense during the three months ended March 31, 2020, primarily related to cost reduction strategies implemented during the period. The acquisition of Speedpay also contributed $0.4 million during the three months ended March 31, 2020. General and administrative expense for the three months ended March 31, 2019, included $4.7 million of significant transaction-related expenses associated with the acquisition of Speedpay. General and administrative expense was $0.3 million lower for the three months ended March 31, 2020, as compared to the same period in 2019, due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of the acquisition of Speedpay, significant transaction-related expenses, and foreign currency, general and administrative expense increased $0.5 million, or 2%, for the three months ended March 31, 2020, as compared to the same period in 2019, primarily due to an increase in professional fees.

Depreciation and Amortization

Depreciation and amortization increased $10.0 million, or 46%, during the three months ended March 31, 2020, as compared to the same period in 2019, of which $8.3 million, or 38%, was due to the acquisition of Speedpay. Depreciation and amortization was $0.2 million lower for the three months ended March 31, 2020, as compared to the same period in 2019, due to the impact of foreign currencies weakening against the U.S. dollar. Excluding the impact of the acquisition of Speedpay and foreign currency, depreciation and amortization increased $1.9 million, or 9%, for the three months ended March 31, 2020, as compared to the same period in 2019, due to higher amortization of capitalized software.

Other Income and Expense

Interest expense for the three months ended March 31, 2020, increased $5.6 million, or 48%, as compared to the same period in 2019, primarily due to higher comparative debt balances, partially offset by lower interest rates.

Interest income includes the portion of software license fees paid by customers under extended payment terms that is attributed to the significant financing component. Interest income for the three months ended March 31, 2020, decreased $0.1 million, or 4%, as compared to the same period in 2019.

Other, net consists of foreign currency gain or loss. Foreign currency loss for the three months ended March 31, 2020 and 2019, was $9.8 million and $1.9 million, respectively. The higher foreign currency loss in 2020 was due to the market volatility in the wake of the COVID-19 pandemic.

Income Taxes

See Note 11, Income Taxes, to our unaudited condensed consolidated financial statements in Part I of this Form 10-Q for additional information.

Segment Results

We report financial performance based on our segments, ACI On Demand and ACI On Premise, and analyze Segment Adjusted EBITDA as a measure of segment profitability.

Our Chief Executive Officer is also our chief operating decision maker (“CODM”). The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from the corporate operations.

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ACI On Demand serves the needs of banks, merchants, and billers who use payments to facilitate their core business. These on-demand solutions are maintained and delivered through the cloud via our global data centers and are available in either a single-tenant environment for SaaS offerings, or in a multi-tenant environment for PaaS offerings.

ACI On Premise serves customers who manage their software on site or through a third-party cloud services provider. These on-premise customers use the Company’s software to develop sophisticated solutions, which are often part of a larger system located and managed at the customer specified site. These customers require a level of control and flexibility that ACI On Premise solutions can offer, and they have the resources and expertise to take a lead role in managing these solutions.

Revenue is attributed to the reportable segments based upon the product sold and mechanism for delivery to the customer. Expenses are attributed to the reportable segments in one of three methods, (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual products, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities as well as information technology and facilities related expense for which multiple segments benefit. We also allocate certain depreciation costs to the segments.

Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of our segments and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude stock-based compensation, and net other income (expense).

Corporate and unallocated expenses consist of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, and other costs that are not considered when management evaluates segment performance.

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The following is selected financial data for our reportable segments for the periods indicated (in thousands):

	Three Months Ended March 31,
	2020		2019
Revenue
ACI On Demand	$	192,950	$	109,848
ACI On Premise	98,535		96,007
Total revenue	$	291,485	$	205,855
Segment Adjusted EBITDA
ACI On Demand	$	23,121	$	(262)
ACI On Premise	30,909		28,268
Depreciation and amortization	(33,822)		(24,852)
Stock-based compensation expense	(6,950)		(6,585)
Corporate and unallocated expenses	(24,541)		(24,662)
Interest, net	(14,271)		(8,581)
Other, net	(9,758)		(1,912)
Loss before income taxes	$	(35,312)	$	(38,586)
Depreciation and amortization
ACI On Demand	$	9,332	$	7,562
ACI On Premise	3,106		3,030
Corporate	21,384		14,260
Total depreciation and amortization	$	33,822	$	24,852
Stock-based compensation expense
ACI On Demand	$	2,026	$	1,951
ACI On Premise	2,030		1,956
Corporate	2,894		2,678
Total stock-based compensation expense	$	6,950	$	6,585

ACI On Demand Segment Adjusted EBITDA increased $23.4 million for the three months ended March 31, 2020, compared to the same period in 2019, of which $20.8 million was due to the acquisition of Speedpay. Excluding the impact of the acquisition of Speedpay, ACI On Demand Segment Adjusted EBITDA increased $2.6 million, primarily due to a decrease in cash operating expense, partially offset by a decrease in revenue within the Company's Biller business.

ACI On Premise Segment Adjusted EBITDA increased $2.6 million for the three months ended March 31, 2020, compared to the same period in 2019, primarily due to a $2.5 million increase in revenue and a $0.1 million decrease in cash operating expense.

Liquidity and Capital Resources

General

Our primary liquidity needs are: (i) to fund normal operating expenses; (ii) to meet the interest and principal requirements of our outstanding indebtedness; and (iii) to fund acquisitions, capital expenditures, and lease payments. We believe these needs will be satisfied using cash flow generated by our operations, our cash and cash equivalents, and available borrowings under our revolving credit facility.

Our cash requirements in the future may be financed through additional equity or debt financings. However, the disruption in the capital markets caused by the COVID-19 pandemic could make any new financing more challenging, and there can be no assurance that such financings will be obtained on commercially reasonable terms, or at all. We believe our liquidity will allow us to manage the anticipated impact of COVID-19 on our business operations for the foreseeable future, which could include reductions in revenue and delays in payments from customers and partners. We are compliant with our debt covenants and do not anticipate an inability to service our debt. As the challenges posed by COVID-19 on our business and the economy as a whole evolve rapidly, we will continue to evaluate our liquidity and financial position in light of future developments, particularly those relating to COVID-19.

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Available Liquidity

The following table sets forth our available liquidity for the periods indicated (in thousands):

	March 31, 2020		December 31, 2019
Cash and cash equivalents	$	119,124	$	121,398
Availability under revolving credit facility	270,000		261,000
Total liquidity	$	389,124	$	382,398

The increase in total liquidity is primarily attributable to positive operating cash flows of $57.5 million, partially offset by $28.9 million of payments related to stock repurchases and $10.1 million of payments to purchase property and equipment and software and distribution rights.

The Company and ACI Payments, Inc., a wholly owned subsidiary, maintain a $140.0 million uncommitted overdraft facility with Bank of America, N.A. The overdraft facility acts as a secured loan under the terms of the Credit Agreement to provide an additional funding mechanism for timing differences that can occur in the bill payment settlement process. As of March 31, 2020, the full $140.0 million was available.

Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. As of March 31, 2020, we had $119.1 million of cash and cash equivalents, of which $52.0 million was held by our foreign subsidiaries. If these funds were needed for our operations in the U.S., we may potentially be required to accrue and pay foreign and U.S. state income taxes to repatriate these funds. As of March 31, 2020, only the earnings in our Indian foreign subsidiaries are indefinitely reinvested. The earnings of all other foreign entities are no longer indefinitely reinvested. We are also permanently reinvested for outside book/tax basis difference related to foreign subsidiaries. These outside basis differences could reverse through sales of the foreign subsidiaries, as well as various other events, none of which are considered probable as of March 31, 2020.

Cash Flows

The following table sets forth summarized cash flow data for the periods indicated (in thousands):

	Three Months Ended March 31,
	2020		2019
Net cash provided by (used by):
Operating activities	$	57,500	$	42,427
Investing activities	(10,138)		(9,828)
Financing activities	(60,837)		(5,361)

Cash Flows from Operating Activities

Net cash flows provided by operating activities during the three months ended March 31, 2020, were $57.5 million as compared to $42.4 million during the same period in 2019. Net cash provided by operating activities primarily consists of net loss adjusted to add back depreciation, amortization, and stock-based compensation. Cash flows provided by operating activities were $15.1 million higher for the three months ended March 31, 2020, compared to the same period in 2019, due to the timing of working capital. Our current policy is to use our operating cash flow primarily for funding capital expenditures, lease payments, stock repurchases, and acquisitions.

Cash Flows from Investing Activities

During the first three months of 2020, we used cash of $10.1 million to purchase software, property, and equipment, as compared to $9.8 million during the same period in 2019.

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Cash Flows from Financing Activities

Net cash flows used by financing activities for the three months ended March 31, 2020, were $60.8 million as compared to net cash flows used by financing activities of $5.4 million during the same period in 2019. During the first three months of 2020, we repaid $39.0 million on the Revolving Credit Facility and $9.7 million on the Initial Term Credit Loan, partially offset by proceeds of $30.0 million on the Revolving Credit Facility. In addition, we used $28.9 million to repurchase common stock and $11.0 million for the repurchase of stock-based compensation awards for tax withholdings. We also received proceeds of $1.3 million from the exercise of stock options and the issuance of common stock under our 2017 Employee Stock Purchase Plan, as amended. During the first three months of 2019, we repaid $5.9 million on the Initial Term Loan. In addition, we received proceeds of $5.7 million from the exercise of stock options and the issuance of common stock under our 2017 Employee Stock Purchase Plan, as amended, and used $2.6 million for the repurchase of stock-based compensation awards for tax withholdings. We also used $0.6 million to repurchase common stock.

We may decide to use cash to acquire new products and services or enhance existing products and services through acquisitions of other companies, product lines, technologies, and personnel, or through investments in other companies.

We believe our existing sources of liquidity, including cash on hand and cash provided by operating activities, will satisfy our projected liquidity requirements, which primarily consists of working capital and debt service requirements, for the next twelve months and foreseeable future.

Debt

As of March 31, 2020, we had $230.0 million and $746.3 million outstanding under our Revolving Credit Facility and Term Loans, respectively, with up to $270.0 million of unused borrowings under the Revolving Credit Facility. The interest rate in effect for the Credit Facility as of March 31, 2020, was 3.17%. As of March 31, 2020, we also had $400.0 million outstanding of the 2026 Notes. See Note 4, Debt, to our unaudited condensed consolidated financial statements in Part I of this Form 10-Q for additional information.

Stock Repurchase Program

We repurchased 1,000,000 shares for $28.9 million under the program during the three months ended March 31, 2020. Under the program to date, we have repurchased 46,357,495 shares for approximately $612.3 million. As of March 31, 2020, the maximum remaining amount authorized for purchase under the stock repurchase program was approximately $112.1 million. See Note 7, Common Stock and Treasury Stock, to our unaudited condensed consolidated financial statements in Part I of this Form 10-Q for additional information.

Contractual Obligations and Commercial Commitments

For the three months ended March 31, 2020, there have been no material changes to the contractual obligations and commercial commitments disclosed in Item 7 of our Form 10-K for the fiscal year ended December 31, 2019.

We are unable to reasonably estimate the ultimate amount or timing of settlement of our reserves for income taxes under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Tax. The liability for unrecognized tax benefits as of March 31, 2020, is $30.0 million.

Critical Accounting Estimates

The preparation of the condensed consolidated financial statements requires we make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and other assumptions we believe to be proper and reasonable under the circumstances. We continually evaluate the appropriateness of estimates and assumptions used in the preparation of our condensed consolidated financial statements. Actual results could differ from those estimates.

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The accounting policies that reflect our more significant estimates, judgments, and assumptions, and that we believe are the most critical to aid in fully understanding and evaluating our reported financial results, include the following:

•Revenue Recognition

•Intangible Assets and Goodwill

•Business Combinations

•Stock-Based Compensation

•Accounting for Income Taxes

During the three months ended March 31, 2020, there were no significant changes to our critical accounting policies and estimates. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for our fiscal year ended December 31, 2019, for a more complete discussion of our critical accounting policies and estimates.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Excluding the impact of changes in interest rates and the uncertainty in the global financial markets, there have been no material changes to our market risk for the three months ended March 31, 2020. We conduct business in all parts of the world and are thereby exposed to market risks related to fluctuations in foreign currency exchange rates. The U.S. dollar is the single largest currency in which our revenue contracts are denominated. Any decline in the value of local foreign currencies against the U.S. dollar results in our products and services being more expensive to a potential foreign customer. In those instances where our goods and services have already been sold, receivables may be more difficult to collect. Additionally, in jurisdictions where the revenue contracts are denominated in U.S. dollars and operating expenses are incurred in the local currency, any decline in the value of the U.S. dollar will have an unfavorable impact to operating margins. At times, we enter into revenue contracts that are denominated in the country’s local currency, primarily in Australia, Canada, the United Kingdom, other European countries, Brazil, India, and Singapore. This practice serves as a natural hedge to finance the local currency expenses incurred in those locations. We have not entered into any foreign currency hedging transactions. We do not purchase or hold any derivative financial instruments for speculation or arbitrage.

The primary objective of our cash investment policy is to preserve principal without significantly increasing risk. If we maintained similar cash investments for a period of one year based on our cash investments and interest rates on these investments at March 31, 2020, a hypothetical ten percent increase or decrease in effective interest rates would increase or decrease interest income by less than $0.1 million annually.

We had approximately $1.4 billion of debt outstanding as of March 31, 2020, with $976.3 million outstanding under our Credit Facility and $400.0 million in 2026 Notes. Our Credit Facility has a floating rate, which was 3.17% as of March 31, 2020. Our 2026 Notes are fixed-rate long-term debt obligations with a 5.750% interest rate. A hypothetical ten percent increase or decrease in effective interest rates would increase or decrease interest expense related to the Credit Facility by approximately $3.1 million.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Management, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, performed an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded our disclosure controls and procedures are effective as of March 31, 2020.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) under the Exchange Act) during the quarter ended March 31, 2020, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are involved in various litigation matters arising in the ordinary course of our business. We are not currently a party to any legal proceedings, the adverse outcome of which, individually or in the aggregate, we believe would be likely to have a material effect on our financial condition or results of operations.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in Item 1A of our Form 10-K for the fiscal year ended December 31, 2019, other than as disclosed below. Additional risks and uncertainties, including risks and uncertainties not presently known to us, or that we currently deem immaterial, could also have an adverse effect on our business, financial condition and/or results of operations.

The ongoing COVID-19 pandemic could adversely affect our business, results of operations and financial condition.

The outbreak of COVID-19 was declared a pandemic by the World Health Organization on March 11, 2020. Since that time, COVID-19 has spread around the world and throughout the United States, including in the regions and communities in which we operate. Federal, state and local governments in the U.S and around the world have imposed restrictions on travel and business operations and are advising or requiring individuals to limit or eliminate time outside of their homes. Temporary closures of businesses have also been ordered in certain jurisdictions, and other businesses have temporarily closed voluntarily. These actions expanded significantly in March and April of 2020 throughout the U.S. Consequently, the COVID-19 outbreak has severely restricted the level of economic activity in the U.S. and around the world.

The outbreak has resulted in authorities implementing numerous measures to try to contain the virus, such as quarantines and shelter in place orders. The spread of the virus has caused us to modify our business practices, including having most of our employees and contractors, with the exception of essential personnel (e.g. certain data center personnel), shelter in place; ceasing non-essential domestic and international travel; permitting essential travel for mission critical functions only by exception and followed by a 14-day self-quarantine period; and ceasing any travel to China, Hong Kong, Italy, or South Korea. These measures may remain in place for a significant period of time and adversely affect our business, operations and financial condition as well as the business, operations and financial condition of our customers and business partners. We may also be required to take further actions as a result of government mandates or because we determine further actions are in the best interests of our employees and customers, which actions may further adversely affect our business, results of operations, and financial condition. Notwithstanding any of these actions, there can be no assurance that any of the foregoing activities will be successful in mitigating or preventing significant adverse effects on our business, results of operations, or financial condition.

The disruptions to our operations or the operations of our customers or business partners may result in inefficiencies, delays and additional costs in our product development, sales, marketing, product implementations and customer service efforts that cannot be fully mitigated through remote or alternative work arrangements. The disruptions may also result in the delay or loss of sales as our customers and prospective customers evaluate and reconsider their business needs post-pandemic. Existing customers may seek to void or renegotiate their contracts with us as a result of changes in their anticipated future business needs or financial condition.

Certain of our contracts are transaction-based in which the revenue we derive is based on transaction volumes. The Merchant and Biller businesses of our ACI On Demand segment have experienced, and are expected to continue to experience, changes in consumer transaction volumes as a result of lower in-store retail transactions and delays in timing of bill payments by consumers. Significant declines in transaction volumes may have a material and adverse impact on our financial position, results of operations and cash flows.

Although we expect that current cash and cash equivalent balances and cash flows generated from operations will be sufficient to meet our domestic and international working capital needs and other capital and liquidity requirements, if our access to capital is restricted or our borrowing costs increase, our operations and financial condition could be adversely impacted.

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The pandemic may also have the effect of heightening many of the other risks described in Item 1A of our Form 10-K for the fiscal year ended December 31, 2019, including risks associated with slowing global economic conditions, demand for our products, delays or cancellations of customer projects, failures to obtain renewals of customer contracts, and reluctance of prospective customers to switch to a new vendor.

The effect of COVID-19 and related events, including those described above and those not yet known or knowable, could have a negative effect on our stock price, business prospects, financial condition, and results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table provides information regarding our repurchases of common stock during the three months ended March 31, 2020:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
January 1, 2020 through January 31, 2020	—		$	—	—	$	140,969,000
February 1, 2020 through February 29, 2020	296,500	(1)	31.54		—	140,969,000
March 1, 2020 through March 31, 2020	1,053,842	(1)	28.95		1,000,000	112,088,000
Total	1,350,342		$	29.52	1,000,000

(1)Pursuant to our 2016 Equity and Performance Incentive Plans, as amended, we granted LTIPs, RSAs, TSRs, and RSUs. Under each arrangement, shares are issued without direct cost to the employee. During the three months ended March 31, 2020, 1,284,057 shares of LTIPs, RSAs, TSRs, and RSUs vested. We withheld 350,342 of those shares to pay the employees’ portion of the applicable minimum payroll withholding taxes.

In 2005, our board approved a stock repurchase program authorizing us, as market and business conditions warrant, to acquire our common stock and periodically authorize additional funds for the program, with the intention of using existing cash and cash equivalents to fund these repurchases. In February 2018, the board approved the repurchase of the Company's common stock for up to $200.0 million, in place of the remaining purchase amounts previously authorized. As of March 31, 2020, the maximum remaining amount authorized for purchase under the stock repurchase program was approximately $112.1 million.

There is no guarantee as to the exact number of shares we will repurchase. Repurchased shares are returned to the status of authorized but unissued shares of common stock. In March 2005, our board approved a plan under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate the repurchase of shares of common stock under the existing stock repurchase program. Under our Rule 10b5-1 plan, we have delegated authority over the timing and amount of repurchases to an independent broker who does not have access to inside information about the Company. Rule 10b5-1 allows us, through the independent broker, to purchase shares at times when we ordinarily would not be in the market because of self-imposed trading blackout periods, such as the time immediately preceding the end of the fiscal quarter through a period of three business days following our quarterly earnings release.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

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ITEM 6. EXHIBITS

The following lists exhibits filed as part of this quarterly report on Form 10-Q:

Exhibit No.		Description
3.01	(1)	2013 Amended and Restated Certificate of Incorporation of the Company
3.02	(2)	Amended and Restated Bylaws of the Company
4.01	(3)	Form of Common Stock Certificate (P)
10.01	*	Form of Nonqualified Stock Option Agreement – Employee for the Company’s 2005 Equity and Performance Incentive Plan, as amended
10.02	*	Form of 2015 Supplemental Nonqualified Stock Option Agreement - Employee for the Company’s 2005 Equity and Performance Incentive Plan, as amended
10.03	*	Form of 2015 Nonqualified Stock Option Agreement - Employee for the Company’s 2005 Equity and Performance Incentive Plan, as amended
10.04	*	Form of 2016 Nonqualified Stock Option Agreement for the Company’s 2016 Equity and Performance Incentive Plan, as amended
31.01		Certification of Principal Executive Officer pursuant to SEC Rule 13a-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.02		Certification of Principal Financial Officer pursuant to SEC Rule 13a-14, as adopted pursuant to Section  302 of the Sarbanes-Oxley Act of 2002
32.01	**	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.02	**	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		XBRL Taxonomy Extension Schema
101.CAL		XBRL Taxonomy Extension Calculation Linkbase
101.LAB		XBRL Taxonomy Extension Label Linkbase
101.PRE		XBRL Taxonomy Extension Presentation Linkbase
101.DEF		XBRL Taxonomy Extension Definition Linkbase
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

____________

*  Denotes exhibit that constitutes a management contract, or compensatory plan or arrangement.

** This certification is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates it by reference.

(P)Paper Exhibit

(1)Incorporated herein by reference to Exhibit 3.1 to the registrant’s current report on Form 8-K filed August 17, 2017.

(2)Incorporated herein by reference to Exhibit 3.1 to the registrant’s current report on Form 8-K filed February 27, 2017.

(3)Incorporated herein by reference to Exhibit 4.01 to the registrant’s Registration Statement No. 33-88292 on Form S-1.

41

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

	ACI WORLDWIDE, INC. (Registrant)
Date: May 7, 2020	By:	/s/ SCOTT W. BEHRENS
		Scott W. Behrens
		Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer)

42

EX-10.01

Exhibit 10.01

ACI WORLDWIDE, INC.

Nonqualified Stock Option Agreement - Employee

(2005 Equity and Performance Incentive Plan)

This Stock Option Agreement (the “Option Agreement”) is made as of _____________, by and between ACI Worldwide, Inc., a Delaware corporation (the “Corporation”), and [________________], an employee of the Corporation or its Subsidiaries (the “Optionee”).

WHEREAS, the Board of Directors of the Corporation has duly adopted, and the stockholders of the Corporation have approved, the 2005 Equity and Performance Incentive Plan, as amended (the “Plan”), which Plan authorizes the Corporation to grant to eligible individuals options for the purchase of shares of the Corporation’s Common Stock (the “Stock”); and

WHEREAS, the Board of Directors of the Corporation has determined that it is desirable and in the best interests of the Corporation and its stockholders to grant the Optionee an option to purchase a certain number of shares of Stock, in order to provide the Optionee with an incentive to advance the interests of the Corporation, all according to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto do hereby agree as follows:

1. GRANT OF NON-QUALIFIED STOCK OPTION

Subject to the terms of the Plan, the Corporation hereby grants to the Optionee the right and option (the “Option”) to purchase from the Corporation, on the terms and subject to the conditions set forth in this Option Agreement, [________] shares of Stock (the “Option Shares”). The Date of Grant of this Option is _____________. This Option shall not constitute an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

2. TERMS OF PLAN

The Option granted pursuant to this Option Agreement is granted subject to the terms and conditions set forth in the Plan, a copy of which has been delivered to the Optionee. All terms and conditions of the Plan, as may be amended from time to time, are hereby incorporated into this Option Agreement by reference and shall be deemed to be a part of this Option Agreement, without regard to whether such terms and conditions (including, for example, provisions relating to certain changes in capitalization of the Corporation) are otherwise set forth in this Option Agreement. In the event that there is any inconsistency between the provisions of this Option Agreement and of the Plan, the provisions of the Plan shall govern. Capitalized terms used herein that are not otherwise defined shall have the meaning ascribed to them in the Plan.

3. EXERCISE PRICE

The exercise price for the shares of Stock subject to the Option granted by this Option Agreement is $________ per share (the “Exercise Price”).

4. EXERCISE OF OPTION

Subject to the provisions of the Plan and subject to the earlier expiration or termination of this Option in accordance with its terms, the Option granted pursuant to this Option Agreement shall be exercisable only as follows:

4.1 Time of Exercise of Option

4.1.1 The Option shall become exercisable with respect to the Option Shares only as follows: [One-quarter] of the Option Shares ([_______] Option Shares) shall become exercisable on each of the first [four] anniversaries of the Date of Grant if the Optionee shall have remained in the continuous employ of the Corporation or any of its Subsidiaries as of each such date.

4.1.2 Notwithstanding Section 4.1.1 above, in accordance with the provisions of the Plan, if the Optionee ceases to be an employee of the Corporation or a Subsidiary of the Corporation by reason of Disability (as defined in Section 4.3.2 below), the unexercised portion of any Option held by such Optionee at that time will become immediately vested and will be exercisable until terminated in accordance with Section 4.3 below.

4.1.3 Notwithstanding Section 4.1.1 above, in accordance with the provisions of the Plan, if the Optionee dies while employed by the Corporation or a Subsidiary of the Corporation (or dies within a period of one month after ceasing to be an employee for any reason other than Disability or within a period of one year after ceasing to be an employee by reason of Disability), the unexercised portion of any Option held by such Optionee at the time of death will become immediately vested and will be exercisable until terminated in accordance with Section 4.3 below.

4.1.4 Notwithstanding Section 4.1.1 above, in accordance with the provisions of the Plan, the Option granted under this Option Agreement shall become immediately exercisable upon the occurrence, after the Date of Grant, of a Change in Control (as defined in Section 10 below) if the Optionee is an employee of the Corporation or any Subsidiary on the date of the consummation of such Change in Control.]

4.2 Limitations

The portion of the Option that has not become exercisable as of the date of the Optionee’s termination of employment with the Corporation or any of its Subsidiaries for any reason shall automatically terminate as of the date of the Optionee’s termination of employment with the Corporation or its Subsidiaries and shall not become exercisable after such termination. To the extent the Option is exercisable, it may be exercised, in whole or in part; provided, that no single exercise of the Option shall be for less than 100 shares, unless at the time of the exercise, the maximum number of shares available for purchase under this Option is less than 100 shares. In no event shall the Option be exercised for a fractional share.

4.3 Termination of Option

This Agreement and the Option granted hereby shall terminate automatically and without further notice on the earliest of the following dates:

4.3.1 180 calendar days from the date of the Optionee’s termination of employment with the Corporation or a Subsidiary for any reason other than death or Disability (as defined below);

4.3.2 one year after the Optionee’s permanent and total disability as defined in Section 22(e)(3) of the Code (“Disability”);

4.3.3 one year after the Optionee’s death, if such death occurs (i) while the Optionee is employed by the Corporation or a Subsidiary, (ii) within the 90-day period following the Optionee’s termination of employment for any reason other than Disability; or (iii) within the one-year period following the Optionee’s termination of employment by reason of the Optionee’s Disability; or

4.3.4 ten years from the Date of Grant.

The Corporation shall have the authority to determine the date an Optionee ceases to be an employee by reason of Disability. In the case of death, the Option may be exercised by the executor or administrator of the Optionee’s estate or by any person or persons who shall have acquired the Option directly from the Optionee by bequest or inheritance. The Optionee shall be deemed to be an employee of the Corporation or any Subsidiary if on a leave of absence approved by the Board of Directors of the Corporation and the continuous employment of the Optionee with the Corporation or any of its Subsidiaries will not be deemed to have been interrupted, and the Optionee shall not be deemed to have ceased to be an employee of the Corporation or its Subsidiaries, by reason of the transfer of the Optionee’s employment among the Corporation and its Subsidiaries.

4.4 Limitations on Exercise of Option

In no event may the Option be exercised, in whole or in part, after the occurrence of an event which results in termination of the Option, as set forth in Section 4.3 above. The Option shall not be exercisable if and to the extent the Corporation determines such exercise or method of exercise would violate applicable securities laws, the rules and regulations of any securities exchange or quotation system on which the Stock is listed, or the Corporation’s policies and procedures.

4.5 Method of Exercise of Option

4.5.1 To the extent then exercisable, the Option may be exercised in whole or in part by written notice to the Corporation stating the number of shares for which the Option is being exercised and the intended manner of payment. The date of such notice shall be the exercise date. Payment equal to the aggregate Exercise Price of the shares shall be payable (i) in cash in the form of currency or check or other cash equivalent acceptable to the Corporation, (ii) by actual or constructive transfer to the Corporation of nonforfeitable, outstanding shares of Stock that have been owned by the Optionee for at least six months prior to the date of exercise, (iii) by any combination of the foregoing methods of payment or (iv) in accordance with such other method or manner as set forth below.

        (A) Cash Exercise (to exercise and retain the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the Corporation, at its principal office, addressed to the attention of Stock Plan Administration, or to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised, and shall be accompanied by payment in full of the Exercise Price of the shares for which the Option is being exercised plus the full amount of all applicable withholding taxes due on the Option exercise. Payment of the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option shall be made either in cash or by certified check payable to the order of the Corporation. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion. Promptly after exercise of the Option as provided for above, the Corporation shall deliver to the person exercising the Option a certificate or certificates for the shares of Stock being purchased.

        (B) Same-Day-Sale Exercise (to exercise and immediately sell all the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised and irrevocable instructions to promptly (1) sell all of the shares of Stock to be issued upon exercise and (2) remit to the Corporation the portion of the sale proceeds sufficient to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option and all applicable taxes due on the Option exercise. The agent/broker shall request issuance of the shares and immediately and concurrently sell the shares on the Optionee’s behalf. Payment of the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option, any brokerage fees, transfer fees, and all applicable taxes due on the Option exercise, shall be deducted from the proceeds of the sale of the shares. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion. Promptly after exercise of the Option as provided for above, the agent/broker shall deliver to the person exercising the Option the net proceeds from the sale of the shares of Stock being exercised and sold.

        (C) Sell-to-Cover Exercise (to exercise and immediately sell a portion of the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised and irrevocable instructions to promptly (1) sell the portion (which must be a whole number) of the shares of Stock to be issued upon exercise sufficient to generate proceeds to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option, any brokerage or transfer fees, and all applicable taxes due on the Option exercise (collectively the “Exercise Costs”) and (2) remit to the Corporation a sufficient portion of the sale proceeds to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option and all applicable taxes due on the Option exercise. The agent/broker shall request issuance of the shares and immediately and concurrently sell on the Optionee’s behalf only such number of the Shares as is required to generate proceeds sufficient to pay the Exercise Costs. Promptly after exercise of the Option as provided for above, the Corporation shall deliver to the person exercising the Option a certificate for the shares of Stock issued upon exercise which are not sold to pay the Exercise Costs. Promptly after exercise of the Option as provided for above, the agent/broker shall deliver to the person exercising the Option any net proceeds from the sale of the Shares in excess of the Exercise Costs. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion.

4.5.2 As soon as practicable upon the Corporation’s receipt of the Optionee’s notice of exercise and payment, the Corporation shall direct the due issuance of the shares so purchased.

4.5.3 As a further condition precedent to the exercise of this Option in whole or in part, the Optionee shall comply with all regulations and the requirements of any regulatory authority having control of, or supervision over, the issuance of the shares of Stock and in connection therewith shall execute any documents which the Board shall in its sole discretion deem necessary or advisable.

4.6 Forfeiture and Right to Recoupment.

Notwithstanding anything contained herein to the contrary, by accepting this Option, Optionee understands and agrees that if (a) the Corporation is required to restate its consolidated financial statements because of material noncompliance due to irregularities with the federal securities laws, which restatement is due, in whole or in part, to the misconduct of Optionee, or (b) it is determined that the Optionee has otherwise engaged in misconduct (whether or not such misconduct is discovered by the Corporation prior to the termination of Optionee’s employment), the Board of Directors or a committee thereof (in each case, the “Board”) may take such action with respect to the Option as the Board, in its sole discretion, deems necessary or appropriate and in the best interest of the Corporation and its stockholders. Such action may include, without limitation, causing the forfeiture or cancellation of the unvested and/or vested portion of the Option and the recoupment of any proceeds from the exercise or vesting of the Option and/or the sale of Option Shares issued pursuant to this Agreement. For purposes of this Section 4.6, “misconduct” shall mean a deliberate act or acts of dishonesty or misconduct which either (i) were intended to result in substantial personal enrichment to the Optionee at the expense of the Corporation or (ii) have a material adverse effect on the Corporation. Any determination hereunder, including with respect to Optionee’s misconduct, shall be made by the Board in its sole discretion. Notwithstanding any provisions herein to the contrary, Optionee expressly acknowledges and agrees that the rights of the Board set forth in this Section 4.6 shall continue after Optionee’s employment with the Corporation is terminated, whether termination is voluntary or involuntary, with or without cause, and shall be in addition to every other right or remedy at law or in equity that may otherwise be available to the Corporation.

5. TRANSFERABILITY OF OPTIONS

During the lifetime of an Optionee, only such Optionee (or, in the event of legal incapacity or incompetency, the Optionee’s guardian or legal representative) may exercise the Option. No Option shall be assignable or transferable by the Optionee to whom it is granted, other than by will or the laws of descent and distribution.

6. COMPLIANCE WITH LAW

The Corporation shall make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, that notwithstanding any other provision of this Option Agreement, the Option shall not be exercisable if the exercise thereof would result in a violation of any such law.

7. RIGHTS AS STOCKHOLDER

Neither the Optionee nor any executor, administrator, distributee or legatee of the Optionee’s estate shall be, or have any of the rights or privileges of, a stockholder of the Corporation in respect of any shares of Stock issuable hereunder unless and until such shares have been fully paid and certificates representing such shares have been endorsed, transferred and delivered, and the name of the Optionee (or of such personal representative, administrator, distributee or legatee of the Optionee’s estate) has been entered as the stockholder of record on the books of the Corporation.

8. WITHHOLDING OF TAXES

If the Corporation shall be required to withhold any federal, state, local or foreign tax in connection with exercise of this Option, it shall be a condition to such exercise that the Optionee pay or make provision satisfactory to the Corporation for payment of all such taxes. The Optionee may elect that all or any part of such withholding requirement be satisfied by retention by the Corporation of a portion of the shares purchased upon exercise of this Option. If such election is made, the shares so retained shall be credited against such withholding requirement at the fair market value on the date of exercise.

9. DISCLAIMER OF RIGHTS

No provision in this Option Agreement shall be construed to confer upon the Optionee the right to be employed by the Corporation or any Subsidiary, or to interfere in any way with the right and authority of the Corporation or any Subsidiary either to increase or decrease the compensation of the Optionee at any time, or to terminate any employment or other relationship between the Optionee and the Corporation or any Subsidiary.

10. CHANGE IN CONTROL

For purposes of this Option Agreement, “Change in Control” means:

(a)Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d3 promulgated under the Exchange Act) of 20% or more of either the then-outstanding shares of common stock of the Corporation (the “Outstanding Corporation Common Stock”) or the combined voting power of the then-outstanding voting securities of the Corporation entitled to vote generally in the election of directors (the “Outstanding Corporation Voting Securities”); provided, however, that, for purposes of this definition of Change in Control, the following acquisitions shall not constitute a Change in Control: any acquisition directly from the Corporation, any acquisition by the Corporation, any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any company controlled by, controlling or under common control with the Corporation, any acquisition by any Person pursuant to a transaction that complies with 10(c)(1) below; or any acquisition of beneficial ownership of not more than 25% of the Outstanding Corporation Voting Securities by any Person that is entitled to and does report such beneficial ownership on Schedule 13G under the Exchange Act (a “13G Filer”), provided, however, that this clause (v) shall cease to apply when a Person who is a Schedule 13G Filer becomes required to file a Schedule 13D under the Exchange Act with respect to beneficial ownership of 20% or more of the Outstanding Corporation Common Stock or Outstanding Corporation Voting Securities. Notwithstanding any other provision hereof, if a Business Combination (as defined below) is completed during the Performance Period and the Outstanding Corporation Voting Securities are converted into voting securities of the Combined Corporation (as defined below), but such Business Combination does not constitute a “Change in Control” under 10(c) below, “Outstanding Corporation Voting Securities” shall thereafter mean voting securities of the Combined Corporation entitled to vote generally in the election of the members of the Combined Corporation Board.

(b)Any time at which individuals who, as of the date hereof, constitute the Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors other than as a result of a Business Combination that does not constitute a “Change in Control” under Sections 10(a) above or 10(c)(1) below; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Corporation’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors (an “Election Contest”);

(c)Consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Corporation or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Corporation, or the acquisition of assets or stock of another entity by the Corporation or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (1) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Corporation or such corporation resulting from such Business Combination (the “Combined Corporation”)) beneficially owns, directly or indirectly, such number of the then-Outstanding Corporation Voting Securities as would constitute a “Change in Control” under 10(a) above, and at least one-half of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Business Combination (the “Combined Corporation Board”) were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board of Directors providing for such Business Combination (the “Business Combination Agreement”); or

(d)Approval by the stockholdersof the Corporation of a complete liquidation or dissolution of the Corporation.

11. COMPLIANCE WITH SECTION 409A OF THE CODE.

To the extent applicable, it is intended that this Option Agreement and the Plan comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) do not apply to Optionee. This Option Agreement and the Plan shall be administered in a manner consistent with this intent, and any provision that would cause the Option Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Corporation without the consent of the Optionee).

12. INTERPRETATION OF THIS OPTION AGREEMENT

All decisions and interpretations made by the Board or the Compensation Committee thereof with regard to any question arising under the Plan or this Option Agreement shall be binding and conclusive on the Corporation and the Optionee and any other person entitled to exercise the Option as provided for herein.

13. GOVERNING LAW

This Option Agreement shall be governed by the laws of the State of Delaware (but not including the choice of law rules thereof).

14. BINDING EFFECT

Subject to all restrictions provided for in this Option Agreement, the Plan, and by applicable law relating to assignment and transfer of this Option Agreement and the Option provided for herein, this Option Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.

15. NOTICE

Any notice hereunder by the Optionee to the Corporation shall be in writing and shall be deemed duly given if mailed or delivered to the Corporation at its principal office, addressed to the attention of Stock Plan Administration or if so mailed or delivered to such other address as the Corporation may hereafter designate by notice to the Optionee. Any notice hereunder by the Corporation to the Optionee shall be in writing and shall be deemed duly given if mailed or delivered to the Optionee at the address specified below by the Optionee for such purpose, or if so mailed or delivered to such other address as the Optionee may hereafter designate by written notice given to the Corporation.

16. SEVERABILITY

If one or more of the provisions of this Option Agreement is invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

17. ENTIRE AGREEMENT; ELIGIBILITY

This Option Agreement and the Plan together constitute the entire agreement and supersedes all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. Except for amendments to the Plan incorporated into this Option Agreement by reference pursuant to Section 2 above, neither this Option Agreement nor any term hereof may be amended, waived, discharged or terminated except by a written instrument signed by the Corporation and the Optionee; provided, however, that the Corporation unilaterally may waive any provision hereof in writing to the extent that such waiver does not adversely affect the interests of the Optionee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. In the event that it is determined that the Optionee was not eligible to receive this Option, the Option and this Option Agreement shall be null and void and of no further effect.

SIGNATURE PAGE

IN WITNESS WHEREOF, the parties hereto have duly executed this Option Agreement, or caused this Option Agreement to be duly executed on their behalf, as of the day and year first above written.

ACI Worldwide, Inc.				Optionee:
By:			By:
	[_____________________]			[_____________________]
		ADDRESS FOR NOTICE TO OPTIONEE:
				Number	Street	Apt.
				City	State	Zip Code
				SS#		Hire Date
		DESIGNATED BENEFICIARY:
				Please Print Last Name, First Name MI
				Beneficiary's Street Address
				City	State	Zip Code
				Beneficiary's Social Security Number

I understand that in the event of my death, the above named beneficiary will have control of any unexercised options remaining in my account at that time. If no beneficiary is designated or if the named beneficiary does not survive me, the options will become part of my estate. This beneficiary designation does NOT apply to stock acquired by the exercise of options prior to my death.

SIGNATURE DATE

After completing this page, please make a copy for your records and return it to Stock Plan Administration, ACI Worldwide, Inc., 6060 Coventry Drive, Elkhorn NE 68022

2005 Equity and Performance Incentive Plan, as amended - US Plan
	Options	$	/Share Exercise Price

EX-10.02

Exhibit 10.02

ACI WORLDWIDE, INC.

Supplemental Nonqualified Stock Option Agreement - Employee

2005 Equity and Performance Incentive Plan

(Amended by the Stockholders on June 14, 2012 and further revised to reflect the 3 for 1 stock split effective July 10, 2014)

This Supplemental Stock Option Agreement (the “Option Agreement”) is made as of the effective date set forth in Schedule A hereto (the “Effective Date”), by and between ACI Worldwide, Inc., a Delaware corporation (the “Corporation”), and the individual identified in Schedule A hereto, an employee of the Corporation or its Subsidiaries (the “Optionee”).

WHEREAS, the Board of Directors of the Corporation has duly adopted, and the stockholders of the Corporation have approved, the 2005 Equity and Performance Incentive Plan, as amended (the “Plan”), which Plan authorizes the Corporation to grant to eligible individuals options for the purchase of shares of the Corporation’s Common Stock (the “Stock”); and

WHEREAS, the Board of Directors of the Corporation has determined that it is desirable and in the best interests of the Corporation and its stockholders to grant the Optionee an option to purchase a certain number of shares of Stock, in order to provide the Optionee with an incentive to advance the interests of the Corporation, all according to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto do hereby agree as follows:

1.GRANT OF NON-QUALIFIED STOCK OPTION

Subject to the terms of the Plan, the Corporation hereby grants to the Optionee the right and option (the “Option”) to purchase from the Corporation, on the terms and subject to the conditions set forth in this Option Agreement, the number of shares of Stock (the “Option Shares”) set forth in Schedule A. The Date of Grant of this Option is the Effective Date (defined above). This Option shall not constitute an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

2.TERMS OF PLAN

The Option granted pursuant to this Option Agreement is granted subject to the terms and conditions set forth in the Plan, a copy of which has been delivered to the Optionee. All terms and conditions of the Plan, as may be amended from time to time, are hereby incorporated into this Option Agreement by reference and shall be deemed to be a part of this Option Agreement, without regard to whether such terms and conditions (including, for example, provisions relating to certain changes in capitalization of the Corporation) are otherwise set forth in this Option Agreement. In the event that there is any inconsistency between the provisions of this Option Agreement and of the Plan, the provisions of the Plan shall govern. Capitalized terms used herein that are not otherwise defined shall have the meaning ascribed to them in the Plan.

3.EXERCISE PRICE

The exercise price for the shares of Stock subject to the Option granted by this Option Agreement is the price per share set forth in Schedule A (the “Exercise Price”).

4.EXERCISE OF OPTION

Subject to the provisions of the Plan and subject to the earlier expiration or termination of this Option in accordance with its terms, the Option granted pursuant to this Option Agreement shall be exercisable only as follows:

4.1Time of Exercise of Option

4.1.1First Tranche. The Option shall become exercisable, if at all, with respect to one-third of the Option Shares (the “First Tranche Options”) upon satisfaction of both of the following criteria: (i) Optionee’s continued employment by the Corporation or any of its Subsidiaries as of the third anniversary of the Date of Grant, and (ii) subject to the Optionee’s continued employment by the Corporation or any of its Subsidiaries on such date, the first date, which must be on or before the fifth anniversary of the Date of Grant, that the closing price per share of Stock on the NASDAQ Global Select Stock Market has met or exceeded 133% of the Exercise Price for at least 20 consecutive trading days (the “First Tranche Share Price Component”). The First Tranche

Options shall not become exercisable if the First Tranche Share Price Component is not satisfied on or before the fifth anniversary of the Date of Grant.

4.1.2Second Tranche. The Option shall become exercisable, if at all, with respect to one-third of the Option Shares (the “Second Tranche Options”) upon satisfaction of both of the following criteria: (i) Optionee’s continued employment by the Corporation or any of its Subsidiaries as of the fourth anniversary of the Date of Grant, and (ii) subject to the Optionee’s continued employment by the Corporation or any of its Subsidiaries on such date, the first date, which must be on or before the fifth anniversary of the Date of Grant, that the closing price per share of Stock on the NASDAQ Global Select Stock Market has met or exceeded 167% of the Exercise Price for at least 20 consecutive trading days (the “Second Tranche Share Price Component”). The Second Tranche Options shall not become exercisable if the Second Tranche Share Price Component is not satisfied on or before the fifth anniversary of the Date of Grant.

4.1.3Third Tranche. The Option shall become exercisable, if at all, with respect to one-third of the Option Shares (the “Third Tranche Options”) upon satisfaction of both of the following criteria prior to the expiration of the Option: (i) Optionee’s continued employment by the Corporation or any of its Subsidiaries as of the fifth anniversary of the Date of Grant, and (ii) subject to the Optionee’s continued employment by the Corporation or any of its Subsidiaries on such date, the first date which must be on or before the fifth anniversary of the Date of Grant, that the closing price per share of Stock on the NASDAQ Global Select Stock Market has met or exceeded 200% of the Exercise Price for at least 20 consecutive trading days (the “Third Tranche Share Price Component”). The Third Tranche Options shall not become exercisable if the Third Tranche Share Price Component is not satisfied on or before the fifth anniversary of the Date of Grant.

4.2Limitations

The portion of the Option that has not become exercisable as of the date of the Optionee’s termination of employment with the Corporation or any of its Subsidiaries for any reason shall automatically terminate as of the date of the Optionee’s termination of employment with the Corporation or its Subsidiaries and shall not become exercisable after such termination. To the extent the Option is exercisable, it may be exercised, in whole or in part; provided, that no single exercise of the Option shall be for less than 100 shares, unless at the time of the exercise, the maximum number of shares available for purchase under this Option is less than 100 shares. In no event shall the Option be exercised for a fractional share.

4.3Termination of Option

This Agreement and the Option granted hereby shall terminate automatically and without further notice on the earliest of the following dates:

4.3.1180 calendar days from the date of the Optionee’s termination of employment with the Corporation or a Subsidiary for any reason other than death or Disability (as defined below);

4.3.2one year after the Optionee’s permanent and total disability as defined in Section 22(e)(3) of the Code (“Disability”);

4.3.3one year after the Optionee’s death, if such death occurs (i) while the Optionee is employed by the Corporation or a Subsidiary, (ii) within the 90-dayperiod following the Optionee’s termination of employment for any reason other than Disability; or (iii) within the one-year period following the Optionee’s termination of employment by reason of the Optionee’s Disability; or

4.3.4ten years from the Date of Grant.

The Corporation shall have the authority to determine the date an Optionee ceases to be an employee by reason of Disability. In the case of death, the Option may be exercised by the executor or administrator of the Optionee’s estate or by any person or persons who shall have acquired the Option directly from the Optionee by bequest or inheritance. The Optionee shall be deemed to be an employee of the Corporation or any Subsidiary if on a leave of absence approved by the Board of Directors of the Corporation and the continuous employment of the Optionee with the Corporation or any of its Subsidiaries will not be deemed to have been interrupted, and the Optionee shall not be deemed to have ceased to be an employee of the Corporation or its Subsidiaries, by reason of the transfer of the Optionee’s employment among the Corporation and its Subsidiaries.

4.4Limitations on Exercise of Option

In no event may the Option be exercised, in whole or in part, after the occurrence of an event which results in termination of the Option, as set forth in Section 4.3 above. The Option shall not be exercisable if and to the extent the Corporation determines such exercise or method of exercise would violate applicable securities laws, the rules and regulations of any securities exchange or quotation system on which the Stock is listed, or the Corporation’s policies and procedures.

4.5Method of Exercise of Option

4.5.1To the extent then exercisable, the Option may be exercised in whole or in part by written notice to the Corporation stating the number of shares for which the Option is being exercised and the intended manner of payment. The date of such notice shall be the exercise date. Payment equal to the aggregate Exercise Price of the shares shall be payable (i) in cash in the form of currency or check or other cash equivalent acceptable to the Corporation, (ii) by actual or constructive transfer to the Corporation of nonforfeitable, outstanding shares of Stock that have been owned by the Optionee for at least six months prior to the date of exercise, (iii) by any combination of the foregoing methods of payment or (iv) in accordance with such other method or manner as set forth below.

        (A) Cash Exercise (to exercise and retain the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the Corporation, at its principal office, addressed to the attention of Stock Plan Administration, or to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised, and shall be accompanied by payment in full of the Exercise Price of the shares for which the Option is being exercised plus the full amount of all applicable withholding taxes due on the Option exercise. Payment of the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option shall be made either in cash or by certified check payable to the order of the Corporation. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion. Promptly after exercise of the Option as provided for above, the Corporation shall deliver to the person exercising the Option a certificate or certificates for the shares of Stock being purchased.

        (B) Same-Day-Sale Exercise (to exercise and immediately sell all the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised and irrevocable instructions to promptly (1) sell all of the shares of Stock to be issued upon exercise and (2) remit to the Corporation the portion of the sale proceeds sufficient to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option and all applicable taxes due on the Option exercise. The agent/broker shall request issuance of the shares and immediately and concurrently sell the shares on the Optionee’s behalf. Payment of the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option, any brokerage fees, transfer fees, and all applicable taxes due on the Option exercise, shall be deducted from the proceeds of the sale of the shares. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion. Promptly after exercise of the Option as provided for above, the agent/broker shall deliver to the person exercising the Option the net proceeds from the sale of the shares of Stock being exercised and sold.

        (C) Sell-to-Cover Exercise (to exercise and immediately sell a portion of the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised and irrevocable instructions to promptly (1) sell the portion (which must be a whole number) of the shares of Stock to be issued upon exercise sufficient to generate proceeds to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option, any brokerage or transfer fees, and all applicable taxes due on the Option exercise (collectively the “Exercise Costs”) and (2) remit to the Corporation a sufficient portion of the sale proceeds to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option and all applicable taxes due on the Option exercise. The agent/broker shall request issuance of the shares and immediately and concurrently sell on the Optionee’s behalf only such number of the Shares as is required to generate proceeds sufficient to pay the Exercise Costs. Promptly after exercise of the Option as provided for above, the Corporation shall deliver to the person exercising the Option a certificate for the shares of Stock

issued upon exercise which are not sold to pay the Exercise Costs. Promptly after exercise of the Option as provided for above, the agent/broker shall deliver to the person exercising the Option any net proceeds from the sale of the Shares in excess of the Exercise Costs. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion.

4.5.2As soon as practicable upon the Corporation’s receipt of the Optionee’s notice of exercise and payment, the Corporation shall direct the due issuance of the shares so purchased.

4.5.3As a further condition precedent to the exercise of this Option in whole or in part, the Optionee shall comply with all regulations and the requirements of any regulatory authority having control of, or supervision over, the issuance of the shares of Stock and in connection therewith shall execute any documents which the Board shall in its sole discretion deem necessary or advisable.

4.6Forfeiture and Right to Recoupment.

Notwithstanding anything contained herein to the contrary, by accepting this Option, Optionee understands and agrees that if (a) the Corporation is required to restate its consolidated financial statements because of material noncompliance due to irregularities with the federal securities laws, which restatement is due, in whole or in part, to the misconduct of Optionee, or (b) it is determined that the Optionee has otherwise engaged in misconduct (whether or not such misconduct is discovered by the Corporation prior to the termination of Optionee’s employment), the Board of Directors or a committee thereof (in each case, the “Board”) may take such action with respect to the Option as the Board, in its sole discretion, deems necessary or appropriate and in the best interest of the Corporation and its stockholders. Such action may include, without limitation, causing the forfeiture or cancellation of the unvested and/or vested portion of the Option and the recoupment of any proceeds from the exercise or vesting of the Option and/or the sale of Option Shares issued pursuant to this Agreement. For purposes of this Section 4.6, “misconduct” shall mean a deliberate act or acts of dishonesty or misconduct which either (i) were intended to result in substantial personal enrichment to the Optionee at the expense of the Corporation or (ii) have a material adverse effect on the Corporation. Any determination hereunder, including with respect to Optionee’s misconduct, shall be made by the Board in its sole discretion. Notwithstanding any provisions herein to the contrary, Optionee expressly acknowledges and agrees that the rights of the Board set forth in this Section 4.6 shall continue after Optionee’s employment with the Corporation is terminated, whether termination is voluntary or involuntary, with or without cause, and shall be in addition to every other right or remedy at law or in equity that may otherwise be available to the Corporation.

5.TRANSFERABILITY OF OPTIONS

During the lifetime of an Optionee, only such Optionee (or, in the event of legal incapacity or incompetency, the Optionee’s guardian or legal representative) may exercise the Option. No Option shall be assignable or transferable by the Optionee to whom it is granted, other than by will or the laws of descent and distribution.

6.COMPLIANCE WITH LAW

The Corporation shall make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, that notwithstanding any other provision of this Option Agreement, the Option shall not be exercisable if the exercise thereof would result in a violation of any such law.

7.RIGHTS AS STOCKHOLDER

Neither the Optionee nor any executor, administrator, distributee or legatee of the Optionee’s estate shall be, or have any of the rights or privileges of, a stockholder of the Corporation in respect of any shares of Stock issuable hereunder unless and until such shares have been fully paid and certificates representing such shares have been endorsed, transferred and delivered, and the name of the Optionee (or of such personal representative, administrator, distributee or legatee of the Optionee’s estate) has been entered as the stockholder of record on the books of the Corporation.

8.WITHHOLDING OF TAXES

If the Corporation shall be required to withhold any federal, state, local or foreign tax in connection with exercise of this Option, it shall be a condition to such exercise that the Optionee pay or make provision satisfactory to the Corporation for payment of all such taxes. The Optionee may elect that all or any part of such withholding requirement be satisfied by retention by the Corporation of a portion of the shares purchased upon exercise of this Option. If such election is made, the shares so retained shall be credited against such withholding requirement at the fair market value on the date of exercise.

9.DISCLAIMER OF RIGHTS

No provision in this Option Agreement shall be construed to confer upon the Optionee the right to be employed by the Corporation or any Subsidiary, or to interfere in any way with the right and authority of the Corporation or any Subsidiary either to increase or decrease the compensation of the Optionee at any time, or to terminate any employment or other relationship between the Optionee and the Corporation or any Subsidiary.

10.INTENTIONALLY LEFT BLANK.

11.COMPLIANCE WITH SECTION 409A OF THE CODE.

To the extent applicable, it is intended that this Option Agreement and the Plan comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) do not apply to Optionee. This Option Agreement and the Plan shall be administered in a manner consistent with this intent, and any provision that would cause the Option Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Corporation without the consent of the Optionee).

12.INTERPRETATION OF THIS OPTION AGREEMENT

All decisions and interpretations made by the Board or the Compensation Committee thereof with regard to any question arising under the Plan or this Option Agreement shall be binding and conclusive on the Corporation and the Optionee and any other person entitled to exercise the Option as provided for herein.

13.GOVERNING LAW

This Option Agreement shall be governed by the laws of the State of Delaware (but not including the choice of law rules thereof).

14.BINDING EFFECT

Subject to all restrictions provided for in this Option Agreement, the Plan, and by applicable law relating to assignment and transfer of this Option Agreement and the Option provided for herein, this Option Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.

15.NOTICE

Any notice hereunder by the Optionee to the Corporation shall be in writing and shall be deemed duly given (i) if mailed or delivered to the Corporation at its principal office, addressed to the attention of Stock Plan Administration, (ii) if electronically delivered to the e-mail address, if any, for Stock Plan Administration or (iii) if so mailed, delivered or electronically delivered to such other address or e-mail address as the Corporation may hereafter designate by notice to the Optionee. Any notice hereunder by the Corporation to the Optionee shall be in writing and shall be deemed duly given (i) if mailed or delivered to the Optionee at Optionee’s address listed in the Corporation’s records, (ii) if electronically delivered to the e-mail address, if any, for Optionee listed in the Corporation’s records or (iii) if so mailed, delivered or electronically delivered to such other address or e-mail address as the Optionee may hereafter designate by written notice given to the Corporation.

16.SEVERABILITY

If one or more of the provisions of this Option Agreement is invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

17.ELECTRONIC DELIVERY AND ACCEPTANCE

The Corporation may, in its sole discretion, decide to deliver any documents or notices related to current or future participation in the Plan by electronic means. By accepting or exercising this Option, electronically or otherwise, Optionee hereby consents to receive such documents or notices by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation, including the use of electronic signatures or click-through acceptance of terms and conditions or other electronic means such as an e-mail acknowledgement.

18.ENTIRE AGREEMENT; ELIGIBILITY

This Option Agreement and the Plan together constitute the entire agreement and supersedes all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. Except for amendments to the Plan incorporated into this Option Agreement by reference pursuant to Section 2 above, neither this Option Agreement nor any term hereof may be amended, waived, discharged or terminated except by a written instrument signed by the Corporation and the Optionee; provided, however, that the Corporation unilaterally may waive any provision hereof in writing to the extent that such waiver does not adversely affect the interests of the Optionee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. In the event that it is determined that the Optionee was not eligible to receive this Option, the Option and this Option Agreement shall be null and void and of no further effect.

This Option Agreement will be deemed to be signed by the Corporation and Optionee upon Optionee’s acceptance of the Notice of Grant of Stock Options attached as Schedule A.

Schedule A

(Attached)

EX-10.03

Exhibit 10.03

ACI WORLDWIDE, INC.

Nonqualified Stock Option Agreement - Employee

2005 Equity and Performance Incentive Plan

(Amended by the Stockholders on June 14, 2012 and further revised to reflect the 3 for 1 stock split effective July 10, 2014)

This Stock Option Agreement (the “Option Agreement”) is made as of the effective date set forth in Schedule A hereto (the “Effective Date”), by and between ACI Worldwide, Inc., a Delaware corporation (the “Corporation”), and the individual identified in Schedule A hereto, an employee of the Corporation or its Subsidiaries (the “Optionee”).

WHEREAS, the Board of Directors of the Corporation has duly adopted, and the stockholders of the Corporation have approved, the 2005 Equity and Performance Incentive Plan, as amended (the “Plan”), which Plan authorizes the Corporation to grant to eligible individuals options for the purchase of shares of the Corporation’s Common Stock (the “Stock”); and

WHEREAS, the Board of Directors of the Corporation has determined that it is desirable and in the best interests of the Corporation and its stockholders to grant the Optionee an option to purchase a certain number of shares of Stock, in order to provide the Optionee with an incentive to advance the interests of the Corporation, all according to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto do hereby agree as follows:

1.GRANT OF NON-QUALIFIED STOCK OPTION

Subject to the terms of the Plan, the Corporation hereby grants to the Optionee the right and option (the “Option”) to purchase from the Corporation, on the terms and subject to the conditions set forth in this Option Agreement, the number of shares of Stock (the “Option Shares”) set forth in Schedule A. The Date of Grant of this Option is the Effective Date (defined above). This Option shall not constitute an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

2.TERMS OF PLAN

The Option granted pursuant to this Option Agreement is granted subject to the terms and conditions set forth in the Plan, a copy of which has been delivered to the Optionee. All terms and conditions of the Plan, as may be amended from time to time, are hereby incorporated into this Option Agreement by reference and shall be deemed to be a part of this Option Agreement, without regard to whether such terms and conditions (including, for example, provisions relating to certain changes in capitalization of the Corporation) are otherwise set forth in this Option Agreement. In the event that there is any inconsistency between the provisions of this Option Agreement and of the Plan, the provisions of the Plan shall govern. Capitalized terms used herein that are not otherwise defined shall have the meaning ascribed to them in the Plan.

3.EXERCISE PRICE

The exercise price for the shares of Stock subject to the Option granted by this Option Agreement is the price per share set forth in Schedule A (the “Exercise Price”).

4.EXERCISE OF OPTION

Subject to the provisions of the Plan and subject to the earlier expiration or termination of this Option in accordance with its terms, the Option granted pursuant to this Option Agreement shall be exercisable only as follows:

4.1Time of Exercise of Option

4.1.1The Option shall become exercisable with respect to the Option Shares only as follows: One-third of the Option Shares shall become exercisable on each of the first three anniversaries of the Date of Grant if the Optionee shall have remained in the continuous employ of the Corporation or any of its Subsidiaries as of each such date.

4.1.2Notwithstanding Section 4.1.1 above, in accordance with the provisions of the Plan, if the Optionee ceases to be an employee of the Corporation or a Subsidiary of the Corporation by reason of Disability (as defined in Section 4.3.2 below), the unexercised portion of any Option held by such Optionee at that time will become immediately vested and will be exercisable until terminated in accordance with Section 4.3 below.

4.1.3Notwithstanding Section 4.1.1 above, in accordance with the provisions of the Plan, if the Optionee dies while employed by the Corporation or a Subsidiary of the Corporation (or dies within a period of one month after ceasing to be an employee for any reason other than Disability or within a period of one year after ceasing to be an employee by reason of Disability), the unexercised portion of any Option held by such Optionee at the time of death will become immediately vested and will be exercisable until terminated in accordance with Section 4.3 below.

4.2Limitations

The portion of the Option that has not become exercisable as of the date of the Optionee’s termination of employment with the Corporation or any of its Subsidiaries for any reason shall automatically terminate as of the date of the Optionee’s termination of employment with the Corporation or its Subsidiaries and shall not become exercisable after such termination. To the extent the Option is exercisable, it may be exercised, in whole or in part; provided, that no single exercise of the Option shall be for less than 100 shares, unless at the time of the exercise, the maximum number of shares available for purchase under this Option is less than 100 shares. In no event shall the Option be exercised for a fractional share.

4.3Termination of Option

This Agreement and the Option granted hereby shall terminate automatically and without further notice on the earliest of the following dates:

4.3.1180 calendar days from the date of the Optionee’s termination of employment with the Corporation or a Subsidiary for any reason other than death or Disability (as defined below);

4.3.2one year after the Optionee’s permanent and total disability as defined in Section 22(e)(3) of the Code (“Disability”);

4.3.3one year after the Optionee’s death, if such death occurs (i) while the Optionee is employed by the Corporation or a Subsidiary, (ii) within the 90-dayperiod following the Optionee’s termination of employment for any reason other than Disability; or (iii) within the one-year period following the Optionee’s termination of employment by reason of the Optionee’s Disability; or

4.3.4ten years from the Date of Grant.

The Corporation shall have the authority to determine the date an Optionee ceases to be an employee by reason of Disability. In the case of death, the Option may be exercised by the executor or administrator of the Optionee’s estate or by any person or persons who shall have acquired the Option directly from the Optionee by bequest or inheritance. The Optionee shall be deemed to be an employee of the Corporation or any Subsidiary if on a leave of absence approved by the Board of Directors of the Corporation and the continuous employment of the Optionee with the Corporation or any of its Subsidiaries will not be deemed to have been interrupted, and the Optionee shall not be deemed to have ceased to be an employee of the Corporation or its Subsidiaries, by reason of the transfer of the Optionee’s employment among the Corporation and its Subsidiaries.

4.4Limitations on Exercise of Option

In no event may the Option be exercised, in whole or in part, after the occurrence of an event which results in termination of the Option, as set forth in Section 4.3 above. The Option shall not be exercisable if and to the extent the Corporation determines such exercise or method of exercise would violate applicable securities laws, the rules and regulations of any securities exchange or quotation system on which the Stock is listed, or the Corporation’s policies and procedures.

4.5Method of Exercise of Option

4.5.1To the extent then exercisable, the Option may be exercised in whole or in part by written notice to the Corporation stating the number of shares for which the Option is being exercised and the intended manner of payment. The date of such notice shall be the exercise date. Payment equal to the aggregate

Exercise Price of the shares shall be payable (i) in cash in the form of currency or check or other cash equivalent acceptable to the Corporation, (ii) by actual or constructive transfer to the Corporation of nonforfeitable, outstanding shares of Stock that have been owned by the Optionee for at least six months prior to the date of exercise, (iii) by any combination of the foregoing methods of payment or (iv) in accordance with such other method or manner as set forth below.

        (A) Cash Exercise (to exercise and retain the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the Corporation, at its principal office, addressed to the attention of Stock Plan Administration, or to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised, and shall be accompanied by payment in full of the Exercise Price of the shares for which the Option is being exercised plus the full amount of all applicable withholding taxes due on the Option exercise. Payment of the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option shall be made either in cash or by certified check payable to the order of the Corporation. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion. Promptly after exercise of the Option as provided for above, the Corporation shall deliver to the person exercising the Option a certificate or certificates for the shares of Stock being purchased.

        (B) Same-Day-Sale Exercise (to exercise and immediately sell all the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised and irrevocable instructions to promptly (1) sell all of the shares of Stock to be issued upon exercise and (2) remit to the Corporation the portion of the sale proceeds sufficient to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option and all applicable taxes due on the Option exercise. The agent/broker shall request issuance of the shares and immediately and concurrently sell the shares on the Optionee’s behalf. Payment of the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option, any brokerage fees, transfer fees, and all applicable taxes due on the Option exercise, shall be deducted from the proceeds of the sale of the shares. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion. Promptly after exercise of the Option as provided for above, the agent/broker shall deliver to the person exercising the Option the net proceeds from the sale of the shares of Stock being exercised and sold.

        (C) Sell-to-Cover Exercise (to exercise and immediately sell a portion of the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised and irrevocable instructions to promptly (1) sell the portion (which must be a whole number) of the shares of Stock to be issued upon exercise sufficient to generate proceeds to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option, any brokerage or transfer fees, and all applicable taxes due on the Option exercise (collectively the “Exercise Costs”) and (2) remit to the Corporation a sufficient portion of the sale proceeds to pay the Exercise Price for the shares of Stock purchased pursuant to the exercise of the Option and all applicable taxes due on the Option exercise. The agent/broker shall request issuance of the shares and immediately and concurrently sell on the Optionee’s behalf only such number of the Shares as is required to generate proceeds sufficient to pay the Exercise Costs. Promptly after exercise of the Option as provided for above, the Corporation shall deliver to the person exercising the Option a certificate for the shares of Stock issued upon exercise which are not sold to pay the Exercise Costs. Promptly after exercise of the Option as provided for above, the agent/broker shall deliver to the person exercising the Option any net proceeds from the sale of the Shares in excess of the Exercise Costs. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion.

4.5.2As soon as practicable upon the Corporation’s receipt of the Optionee’s notice of exercise and payment, the Corporation shall direct the due issuance of the shares so purchased.

4.5.3As a further condition precedent to the exercise of this Option in whole or in part, the Optionee shall comply with all regulations and the requirements of any regulatory authority having control of, or supervision over, the issuance of the shares of Stock and in connection therewith shall execute any documents which the Board shall in its sole discretion deem necessary or advisable.

4.6 Forfeiture and Right to Recoupment.

Notwithstanding anything contained herein to the contrary, by accepting this Option, Optionee understands and agrees that if (a) the Corporation is required to restate its consolidated financial statements because of material noncompliance due to irregularities with the federal securities laws, which restatement is due, in whole or in part, to the misconduct of Optionee, or (b) it is determined that the Optionee has otherwise engaged in misconduct (whether or not such misconduct is discovered by the Corporation prior to the termination of Optionee’s employment), the Board of Directors or a committee thereof (in each case, the “Board”) may take such action with respect to the Option as the Board, in its sole discretion, deems necessary or appropriate and in the best interest of the Corporation and its stockholders. Such action may include, without limitation, causing the forfeiture or cancellation of the unvested and/or vested portion of the Option and the recoupment of any proceeds from the exercise or vesting of the Option and/or the sale of Option Shares issued pursuant to this Agreement. For purposes of this Section 4.6, “misconduct” shall mean a deliberate act or acts of dishonesty or misconduct which either (i) were intended to result in substantial personal enrichment to the Optionee at the expense of the Corporation or (ii) have a material adverse effect on the Corporation. Any determination hereunder, including with respect to Optionee’s misconduct, shall be made by the Board in its sole discretion. Notwithstanding any provisions herein to the contrary, Optionee expressly acknowledges and agrees that the rights of the Board set forth in this Section 4.6 shall continue after Optionee’s employment with the Corporation is terminated, whether termination is voluntary or involuntary, with or without cause, and shall be in addition to every other right or remedy at law or in equity that may otherwise be available to the Corporation.

5.TRANSFERABILITY OF OPTIONS

During the lifetime of an Optionee, only such Optionee (or, in the event of legal incapacity or incompetency, the Optionee’s guardian or legal representative) may exercise the Option. No Option shall be assignable or transferable by the Optionee to whom it is granted, other than by will or the laws of descent and distribution.

6.COMPLIANCE WITH LAW

The Corporation shall make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, that notwithstanding any other provision of this Option Agreement, the Option shall not be exercisable if the exercise thereof would result in a violation of any such law.

7.RIGHTS AS STOCKHOLDER

Neither the Optionee nor any executor, administrator, distributee or legatee of the Optionee’s estate shall be, or have any of the rights or privileges of, a stockholder of the Corporation in respect of any shares of Stock issuable hereunder unless and until such shares have been fully paid and certificates representing such shares have been endorsed, transferred and delivered, and the name of the Optionee (or of such personal representative, administrator, distributee or legatee of the Optionee’s estate) has been entered as the stockholder of record on the books of the Corporation.

8.WITHHOLDING OF TAXES

If the Corporation shall be required to withhold any federal, state, local or foreign tax in connection with exercise of this Option, it shall be a condition to such exercise that the Optionee pay or make provision satisfactory to the Corporation for payment of all such taxes. The Optionee may elect that all or any part of such withholding requirement be satisfied by retention by the Corporation of a portion of the shares purchased upon exercise of this Option. If such election is made, the shares so retained shall be credited against such withholding requirement at the fair market value on the date of exercise.

9.DISCLAIMER OF RIGHTS

No provision in this Option Agreement shall be construed to confer upon the Optionee the right to be employed by the Corporation or any Subsidiary, or to interfere in any way with the right and authority of the Corporation or any Subsidiary either to increase or decrease the compensation of the Optionee at any time, or to terminate any employment or other relationship between the Optionee and the Corporation or any Subsidiary.

10.INTENTIONALLY LEFT BLANK.

11.COMPLIANCE WITH SECTION 409A OF THE CODE.

To the extent applicable, it is intended that this Option Agreement and the Plan comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) do not apply to Optionee. This Option Agreement and the Plan shall be administered in a manner consistent with this intent, and any provision that would cause the Option Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Corporation without the consent of the Optionee).

12.INTERPRETATION OF THIS OPTION AGREEMENT

All decisions and interpretations made by the Board or the Compensation Committee thereof with regard to any question arising under the Plan or this Option Agreement shall be binding and conclusive on the Corporation and the Optionee and any other person entitled to exercise the Option as provided for herein.

13.GOVERNING LAW

This Option Agreement shall be governed by the laws of the State of Delaware (but not including the choice of law rules thereof).

14.BINDING EFFECT

Subject to all restrictions provided for in this Option Agreement, the Plan, and by applicable law relating to assignment and transfer of this Option Agreement and the Option provided for herein, this Option Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.

15.NOTICE

Any notice hereunder by the Optionee to the Corporation shall be in writing and shall be deemed duly given (i) if mailed or delivered to the Corporation at its principal office, addressed to the attention of Stock Plan Administration, (ii) if electronically delivered to the e-mail address, if any, for Stock Plan Administration or (iii) if so mailed, delivered or electronically delivered to such other address or e-mail address as the Corporation may hereafter designate by notice to the Optionee. Any notice hereunder by the Corporation to the Optionee shall be in writing and shall be deemed duly given (i) if mailed or delivered to the Optionee at Optionee’s address listed in the Corporation’s records, (ii) if electronically delivered to the e-mail address, if any, for Optionee listed in the Corporation’s records or (iii) if so mailed, delivered or electronically delivered to such other address or e-mail address as the Optionee may hereafter designate by written notice given to the Corporation.

16.SEVERABILITY

If one or more of the provisions of this Option Agreement is invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

17.ELECTRONIC DELIVERY AND ACCEPTANCE

The Corporation may, in its sole discretion, decide to deliver any documents or notices related to current or future participation in the Plan by electronic means. By accepting or exercising this Option, electronically or otherwise, Optionee hereby consents to receive such documents or notices by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation, including the use of electronic signatures or click-through acceptance of terms and conditions or other electronic means such as an e-mail acknowledgement.

18.ENTIRE AGREEMENT; ELIGIBILITY

This Option Agreement and the Plan together constitute the entire agreement and supersedes all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. Except for amendments to the Plan incorporated into this Option Agreement by reference pursuant to Section 2 above, neither this Option Agreement nor any term hereof may be amended, waived, discharged or terminated except by a written instrument signed by the Corporation and the Optionee; provided, however, that the Corporation unilaterally may waive any provision hereof in writing to the extent that such waiver does not adversely affect the interests of the Optionee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. In the event that it is determined that the Optionee was not eligible to receive this Option, the Option and this Option Agreement shall be null and void and of no further effect.

This Option Agreement will be deemed to be signed by the Corporation and Optionee upon Optionee’s acceptance of the Notice of Grant of Stock Options attached as Schedule A.

Schedule A

(Attached)

EX-10.04

Exhibit 10.04

NONQUALIFIED STOCK OPTION AGREEMENT

THIS STOCK OPTION AGREEMENT (this “Option Agreement”) is made as of the date set forth in Schedule A hereto (the “Grant Date”) by and between ACI Worldwide, Inc., a Delaware corporation (the “Corporation”) and the individual identified in Schedule A hereto, an employee of the Corporation or its Subsidiaries (the “Optionee”). Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the ACI Worldwide, Inc. 2016 Equity and Performance Incentive Plan (the “Plan”).

WHEREAS, the Board has duly adopted, and the stockholders of the Corporation have approved, the Plan, which authorizes the Corporation to grant to eligible individuals options for the purchase of shares of the Corporation’s common stock, par value of $0.005 per share (the “Stock”); and

WHEREAS, the Board has determined that it is desirable and in the best interests of the Corporation and its stockholders to grant the Optionee an option to purchase a certain number of shares of Stock, in order to provide the Optionee with an incentive to advance the interests of the Corporation, all according to the terms and conditions set forth herein and in the Plan.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto do hereby agree as follows:

1.Grant of Non-Qualified Stock Option. Subject to the terms of the Plan, the Corporation hereby grants to the Optionee the right and option (the “Option”) to purchase from the Corporation, on the terms and subject to the conditions set forth in this Option Agreement, the number of shares of Stock (the “Option Shares”) set forth in Schedule A. The Date of Grant of this Option is the Grant Date (defined above). This Option shall not constitute an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

2.Exercise Price. The exercise price for the shares of Stocksubject to the Option granted by this Option Agreement is the price per share set forth in Schedule A (the “Exercise Price”).

3.Exercise of Option. Subject to the provisions of the Plan and subject to the earlier expiration or termination of this Option in accordance with its terms, the Option granted pursuant to this Option Agreement shall be exercisable only as follows:

3.1.Time of Exercise of Option

3.1.1.The Option shall become exercisable with respect to the Option Shares only as follows: One-third of the Option Shares shall become exercisable on each of the first three anniversaries of the Date of Grant if the Optionee shall have remained in the continuous employ of the Corporation or any of its Subsidiaries as of each such date.

3.1.2.Notwithstanding Section 3.1.1 above, in accordance with the provisions of the Plan, if the Optionee ceases to be an employee of the Corporation or a Subsidiary of the Corporation by reason of Disability (as defined in Section 3.3.2 below), the unexercised portion of any Option held by such Optionee at that time will become immediately vested and will be exercisable until terminated in accordance with Section 3.3 below.

3.1.3.Notwithstanding Section 3.1.1 above, in accordance with the provisions of the Plan, if the Optionee dies while employed by the Corporation or a Subsidiary of the Corporation (or dies within a period of one month after ceasing to be an employee for any reason other than Disability or within a period of one year after ceasing to be an employee by reason of Disability), the unexercised portion of any Option held by such Optionee at the time of death will become immediately vested and will be exercisable until terminated in accordance with Section 3.3 below.

3.2.Limitations

The portion of the Option that has not become exercisable as of the date of the Optionee’s termination of employment with the Corporation or any of its Subsidiaries for any reason shall automatically terminate as of the date of the Optionee’s termination of employment with the Corporation or its Subsidiaries and shall not become exercisable after such termination. To the extent the Option is exercisable, it may be exercised, in whole or in part; provided, that no single exercise of the Option shall be for less than 100 shares, unless at the time of the exercise, the maximum number of shares available for purchase under this Option is less than 100 shares. In no event shall the Option be exercised for a fractional share.

3.3.Termination of Option

This Agreement and the Option granted hereby shall terminate automatically and without further notice on the earliest of the following dates:

3.3.1.180 calendar days from the date of the Optionee’s termination of employment with the Corporation or a Subsidiary for any reason other than death or Disability (as defined below);

3.3.2.one year after the Optionee’s permanent and total disability as defined in Section 22(e)(3) of the Code (“Disability”);

3.3.3.one year after the Optionee’s death, if such death occurs (i) while the Optionee is employed by the Corporation or a Subsidiary, (ii) within the 90-day period following the Optionee’s termination of employment for any reason other than Disability; or (iii) within the one-year period following the Optionee’s termination of employment by reason of the Optionee’s Disability; or

3.3.4.ten years from the Date of Grant.

The Corporation shall have the authority to determine the date an Optionee ceases to be an employee by reason of Disability. In the case of death, the Option may be exercised by the executor or administrator of the Optionee’s estate or by any person or persons who shall have acquired the Option directly from the Optionee by bequest or inheritance. The Optionee shall be deemed to be an employee of the Corporation or any Subsidiary if on a leave of absence approved by the Board and the continuous employment of the Optionee with the Corporation or any of its Subsidiaries will not be deemed to have been interrupted, and the Optionee shall not be deemed to have ceased to be an employee of the Corporation or its Subsidiaries, by reason of the transfer of the Optionee’s employment among the Corporation and its Subsidiaries.

3.4.Limitations on Exercise of Option

         In no event may the Option be exercised, in whole or in part, after the occurrence of an event which results in termination of the Option, as set forth in Section 3.3 above. The Option shall not be exercisable if and to the extent the Corporation determines such exercise or method of exercise would violate applicable securities laws, the rules and regulations of any securities exchange or quotation system on which the Stock islisted, or the Corporation’s policies and procedures.

3.5.Method of Exercise of Option

3.5.1.To the extent then exercisable, the Option may be exercised in whole or in part by written notice to the Corporation stating the number of shares for which the Option is being exercised and the intended manner of payment. The date of such notice shall be the exercise date. Payment equal to the aggregate Exercise Price of the shares shall be payable (i) in cash in the form of currency or check or other cash equivalent acceptable to the Corporation, (ii) by actual or constructive transfer to the Corporation of non-forfeitable, outstanding shares of Stockthat have been owned by the Optionee for at least six months prior to the date of exercise, (iii) by any combination of the foregoing methods of payment or (iv) in accordance with such other method or manner as set forth below.

(a)Cash Exercise (to exercise and retain the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the Corporation, at its principal office, addressed to the attention of Stock Plan Administration, or to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised, and shall be accompanied by payment in full of the Exercise Price of the shares for which the Option is being exercised plus the full amount of all applicable withholding taxes due on the Option exercise. Payment of the Exercise Price for the shares of Stockpurchased pursuant to the exercise of the Option shall be made either in cash or by certified check payable to the order of the Corporation. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion. Promptly after exercise of the Option as provided for above, the Corporation shall deliver to the person exercising the Option a certificate or certificates for the shares of Stockbeing purchased.

(b)Same-Day-Sale Exercise (to exercise and immediately sell all the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised and

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irrevocable instructions to promptly (1) sell all of the shares of Stockto be issued upon exercise and (2) remit to the Corporation the portion of the sale proceeds sufficient to pay the Exercise Price for the shares of Stockpurchased pursuant to the exercise of the Option and all applicable taxes due on the Option exercise. The agent/broker shall request issuance of the shares and immediately and concurrently sell the shares on the Optionee’s behalf. Payment of the Exercise Price for the shares of Stockpurchased pursuant to the exercise of the Option, any brokerage fees, transfer fees, and all applicable taxes due on the Option exercise, shall be deducted from the proceeds of the sale of the shares. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion. Promptly after exercise of the Option as provided for above, the agent/broker shall deliver to the person exercising the Option the net proceeds from the sale of the shares of Stockbeing exercised and sold.

(c)Sell-to-Cover Exercise (to exercise and immediately sell a portion of the Option Shares): Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised by delivering written notice of exercise to the agent/broker designated by the Corporation, which notice shall specify the number of shares for which the Option is being exercised and irrevocable instructions to promptly (1) sell the portion (which must be a whole number) of the shares of Stockto be issued upon exercise sufficient to generate proceeds to pay the Exercise Price for the shares of Stockpurchased pursuant to the exercise of the Option, any brokerage or transfer fees, and all applicable taxes due on the Option exercise (collectively the “Exercise Costs”) and (2) remit to the Corporation a sufficient portion of the sale proceeds to pay the Exercise Price for the shares of Stockpurchased pursuant to the exercise of the Option and all applicable taxes due on the Option exercise. The agent/broker shall request issuance of the shares and immediately and concurrently sell on the Optionee’s behalf only such number of the Shares as is required to generate proceeds sufficient to pay the Exercise Costs. Promptly after exercise of the Option as provided for above, the Corporation shall deliver to the person exercising the Option a certificate for the shares of Stockissued upon exercise which are not sold to pay the Exercise Costs. Promptly after exercise of the Option as provided for above, the agent/broker shall deliver to the person exercising the Option any net proceeds from the sale of the Shares in excess of the Exercise Costs. If the person exercising the Option is not the Optionee, such person shall also deliver with the notice of exercise appropriate proof of his or her right to exercise the Option, as the Corporation may require in its sole discretion.

3.5.2.As soon as practicable upon the Corporation’s receipt of the Optionee’s notice of exercise and payment, the Corporation shall direct the due issuance of the shares so purchased.

3.5.3.As a further condition precedent to the exercise of this Option in whole or in part, the Optionee shall comply with all regulations and the requirements of any regulatory authority having control of, or supervision over, the issuance of the shares of Stock and in connection therewith shall execute any documents which the Board shall in its sole discretion deem necessary or advisable.

3.6.Forfeiture and Right of Recoupment.

         Notwithstanding anything contained herein to the contrary, by accepting this Option, Optionee understands and agrees that if (a) the Corporation is required to restate its consolidated financial statements because of material noncompliance due to irregularities with the federal securities laws, which restatement is due, in whole or in part, to the misconduct of Optionee, or (b) it is determined that the Optionee has otherwise engaged in misconduct (whether or not such misconduct is discovered by the Corporation prior to the termination of Optionee’s employment), the Corporation may take such action with respect to the Option as the Corporation, in its sole discretion, deems necessary or appropriate and in the best interest of the Corporation and its stockholders. Such action may include, without limitation, causing the forfeiture or cancellation of the unvested and/or vested portion of the Option and the recoupment of any proceeds from the exercise or vesting of the Option and/or the sale of Option Shares issued pursuant to this Agreement. For purposes of this Section 3.6, “misconduct” shall mean a deliberate act or acts of dishonesty or misconduct which either (i) were intended to result in substantial personal enrichment to the Optionee at the expense of the Corporation or (ii) have a material adverse effect on the Corporation. Any determination hereunder, including with respect to Optionee’s misconduct, shall be made by the Board or its designee in its sole discretion. Notwithstanding any provisions herein to the contrary, Optionee expressly acknowledges and agrees that the rights of the Corporation set forth in this Section 3.6 shall continue after Optionee’s employment with the Corporation or its Subsidiary is terminated, whether termination is voluntary or involuntary, with or without

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cause, and shall be in addition to every other right or remedy at law or in equity that may otherwise be available to the Corporation.

4.Withholding of Taxes. If the Corporation shall be required to withhold any federal, state, local or foreign tax in connection with exercise of this Option, it shall be a condition to such exercise that the Optionee pay or make provision satisfactory to the Corporation for payment of all such taxes. The Optionee may elect that all or any part of such withholding requirement be satisfied by retention by the Corporation of a portion of the shares purchased upon exercise of this Option. If such election is made, the shares so retained shall be credited against such withholding requirement at the fair market value on the date of exercise.

5.Non-Assignability. The Option is personal to the Optionee and may not be sold, exchanged, assigned, transferred, pledged, encumbered or otherwise disposed of by the Optionee; provided, however, that the Optionee’s rights with respect to the Option may be transferred by will or pursuant to the laws of descent and distribution or pursuant to a domestic relations order (within the meaning of Rule 16a-12 under the Securities Exchange Act of 1934, as amended). Any purported transfer or encumbrance in violation of the provisions of this Section , shall be void, and the other party to any such purported transaction shall not obtain any rights to or interest in such Option.

6.Compliance with Section 409A of the Code. To the extent applicable, it is intended that this Option Agreement and the Plan comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to Optionee. This Option Agreement and the Plan shall be administered in a manner consistent with this intent, and any provision that would cause the Option Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Corporation without the consent of the Optionee).

7.Consent To Transfer Personal Data. By accepting the Options, Optionee voluntarily acknowledges and consents to the collection, use, processing and transfer of personal data as described in this Section 6. Optionee is not obliged to consent to such collection, use, processing and transfer of personal data. However, failure to provide the consent may affect Optionee’s ability to participate in the Plan. The Corporation and its Subsidiaries hold certain personal information about Optionee, that may include Optionee’s name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of stock held in the Corporation, or details of any entitlement to shares of stock awarded, canceled, purchased, vested, or unvested, for the purpose of implementing, managing and administering the Plan (“Data”). The Corporation and/or its Subsidiaries will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of Optionee’s participation in the Plan, and the Corporation and/or any of its Subsidiaries may each further transfer Data to any third parties assisting the Corporation in the implementation, administration and management of the Plan. These recipients may be located throughout the world, including the United States. Optionee authorizes them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purpose of implementing, administering and managing Optionee’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of stock on Optionee’s behalf by a broker or other third party with whom Optionee or the Corporation may elect to deposit any shares of stock acquired pursuant to the Plan. Optionee may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Corporation; however, withdrawing consent may affect Optionee’s ability to participate in the Plan.

8.Electronic Delivery and Acceptance. The Corporation may, in its sole discretion, decide to deliver any documents or notices related to current or future participation in the Plan by electronic means. By accepting or exercising this Option, electronically or otherwise, Optionee hereby consents to receive such documents or notices by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation, including the use of electronic signatures or click-through acceptance of terms and conditions or other electronic means such as an e-mail acknowledgement.

9.Miscellaneous.

(a)The Options granted pursuant to this Option Agreement are granted subject to the terms and conditions set forth in the Plan, a copy of which has been delivered to the Optionee. All terms and conditions of the Plan, as may be amended from time to time, are hereby incorporated into this Option Agreement by reference and shall be deemed to be a part of this Option Agreement, without regard to whether such terms and conditions (including, for example, provisions relating to certain changes in capitalization of the Corporation) are otherwise set forth in this Option Agreement. In the event that there is any inconsistency between the provisions of this Option Agreement and of the Plan, the provisions of the Plan shall govern.

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(b)All decisions and interpretations made by the Board or its designee with regard to any question arising under the Plan or this Option Agreement shall be binding and conclusive on the Optionee, the Optionee’s estate, executor, administrator, beneficiaries, personal representative and guardian and the Corporation and its successors and assigns.

(c)The grant of the Options is discretionary and no provision in this Agreement shall be considered to be an employment contract or a part of the Optionee’s terms and conditions of employment, nor shall any provision be construed to confer upon the Optionee the right to be employed or be retained in the employ by the Corporation or any Subsidiary, or to interfere in any way with the right and authority of the Corporation or any Subsidiary either to increase or decrease the compensation of the Optionee at any time, or to terminate any employment or other relationship between the Optionee and the Corporation or any Subsidiary.

(d)This Option Agreement, and the terms and conditions of the Plan, shall bind, and inure to the benefit of the Optionee, the Optionee’s estate, executor, administrator, beneficiaries, personal representative and guardian and the Corporation and its successors and assigns.

(e)This Option Agreement shall be governed by the laws of the State of Delaware (but not including the choice of law rules thereof).

(f)Any action relating to or arising out of this Option Agreement shall be brought only in a court of competent jurisdiction located in Delaware or Florida and the parties expressly consent to such venue. The parties consent to the personal jurisdiction of the courts located in Delaware or Florida over them.

(g)Any amendment to the Plan shall be deemed to be an amendment to this Option Agreement to the extent that the amendment is applicable hereto. The terms and conditions of this Option Agreement may not be modified, amended or waived, except by an instrument in writing signed by a duly authorized executive officer at the Corporation. Notwithstanding the foregoing, no amendment shall adversely affect the Optionee’s rights under this Option Agreement without the Optionee’s consent; provided, however, that the Corporation unilaterally may waive any provision hereof in writing to the extent that such waiver does not adversely affect the interests of the Optionee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof.

(h)Any notice hereunder by the Optionee to the Corporation shall be in writing and shall be deemed duly given (i) if mailed or delivered to the Corporation at its principal office, addressed to the attention of Stock Plan Administration, (ii) if electronically delivered to the e-mail address, if any, for Stock Plan Administration or (iii) if so mailed, delivered or electronically delivered to such other address or e-mail address as the Corporation may hereafter designate by notice to the Optionee. Any notice hereunder by the Corporation to the Optionee shall be in writing and shall be deemed duly given (i) if mailed or delivered to the Optionee at Optionee’s address listed in the Corporation’s records, (ii) if electronically delivered to the e-mail address, if any, for Optionee listed in the Corporation’s records or (iii) if so mailed, delivered or electronically delivered to such other address or e-mail address as the Optionee may hereafter designate by written notice given to the Corporation.

(i)If one or more of the provisions of this Option Agreement is invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

(j)This Option Agreement, the Plan, any Change-in-Control Employment Agreement between the Corporation and the Optionee, and, in the case of the Corporation’s Chief Executive Officer only, the Amended and Restated Employment Agreement entered into effective as January 7, 2016, together constitute the entire agreement and supersedes all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof.

(k)In the event that it is determined that the Optionee was not eligible to receive this Option, the Option and this Option Agreement shall be null and void and of no further effect.

(l)This Option Agreement will be deemed to be signed by the Corporation and Optionee upon Optionee’s acceptance of the Notice of Grant of Stock Options attached as Schedule A.

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Schedule A

(Attached)

EX-31.01

Exhibit 31.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Odilon Almeida, certify that:

1.I have reviewed this quarterly report on Form 10-Q of ACI Worldwide, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(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

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(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.

Date: May 7, 2020	/s/ ODILON ALMEIDA
	Odilon Almeida President, Chief Executive Officer, and Director (Principal Executive Officer)

EX-31.02

Exhibit 31.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Scott W. Behrens, certify that:

1.I have reviewed this quarterly report on Form 10-Q of ACI Worldwide, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(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

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(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.

Date: May 7, 2020	/s/ SCOTT W. BEHRENS
	Scott W. Behrens Executive Vice President, Chief Financial Officer, and Chief Accounting Officer (Principal Financial Officer)

EX-32.01

Exhibit 32.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of ACI Worldwide, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Odilon Almeida, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1)The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2020	/s/ ODILON ALMEIDA
	Odilon Almeida President, Chief Executive Officer, and Director (Principal Executive Officer)

EX-32.02

Exhibit 32.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of ACI Worldwide, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Scott W. Behrens, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1)The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2020	/s/ SCOTT W. BEHRENS
	Scott W. Behrens Executive Vice President, Chief Financial Officer, and Chief Accounting Officer (Principal Financial Officer)

XML

Segment Information

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company reports financial performance based on its segments, ACI On Demand and ACI On Premise, and analyzes Segment Adjusted EBITDA as a measure of segment profitability.

The Company’s Chief Executive Officer is also the chief operating decision maker (“CODM”). The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from Corporate operations.

ACI On Demand serves the needs of banks, merchants, and billers who use payments to facilitate their core business. These on-demand solutions are maintained and delivered through the cloud via our global data centers and are available in either a single-tenant environment for SaaS offerings, or in a multi-tenant environment for PaaS offerings.

ACI On Premise serves customers who manage their software on site or through a third-party cloud service provider. These on-premise customers use the Company’s software to develop sophisticated solutions, which are often part of a larger system located and managed at the customer specified site. These customers require a level of control and flexibility that ACI On Premise solutions can offer, and they have the resources and expertise to take a lead role in managing these solutions.

Revenue is attributed to the reportable segments based upon the product sold and mechanism for delivery to the customer. Expenses are attributed to the reportable segments in one of three methods: (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual products, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities as well as information technology and facilities related expense for which multiple segments benefit. The Company also allocates certain depreciation costs to the segments.

Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments, and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude stock-based compensation, and net other income (expense).

Corporate and unallocated expenses consist of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, and other costs that are not considered when management evaluates segment performance.

The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):

	Three Months Ended March 31,
	2020		2019
Revenue
ACI On Demand	$	192,950	$	109,848
ACI On Premise	98,535		96,007
Total revenue	$	291,485	$	205,855
Segment Adjusted EBITDA
ACI On Demand	$	23,121	$	(262)
ACI On Premise	30,909		28,268
Depreciation and amortization	(33,822)		(24,852)
Stock-based compensation expense	(6,950)		(6,585)
Corporate and unallocated expenses	(24,541)		(24,662)
Interest, net	(14,271)		(8,581)
Other, net	(9,758)		(1,912)
Loss before income taxes	$	(35,312)	$	(38,586)
Depreciation and amortization
ACI On Demand	$	9,332	$	7,562
ACI On Premise	3,106		3,030
Corporate	21,384		14,260
Total depreciation and amortization	$	33,822	$	24,852
Stock-based compensation expense
ACI On Demand	$	2,026	$	1,951
ACI On Premise	2,030		1,956
Corporate	2,894		2,678
Total stock-based compensation expense	$	6,950	$	6,585

Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information.

The following is revenue by primary geographic market and primary solution category for the Company’s reportable segments for the periods indicated (in thousands):

	Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
	ACI On Demand		ACI On Premise		Total		ACI On Demand		ACI On Premise		Total
Primary Geographic Markets
Americas - United States	$	175,654	$	29,139	$	204,793	$	93,036	$	26,422	$	119,458
Americas - Other	3,233		17,941		21,174		2,743		10,945		13,688
EMEA	10,918		28,955		39,873		12,068		42,451		54,519
Asia Pacific	3,145		22,500		25,645		2,001		16,189		18,190
Total	$	192,950	$	98,535	$	291,485	$	109,848	$	96,007	$	205,855
Primary Solution Categories
Bill Payments	$	153,686	$	—	$	153,686	$	68,967	$	—	$	68,967
Digital Channels	8,393		7,563		15,956		9,788		8,725		18,513
Merchant Payments	19,014		4,106		23,120		19,339		5,022		24,361
Payments Intelligence	9,013		4,113		13,126		8,981		7,037		16,018
Real-Time Payments	997		17,299		18,296		618		14,715		15,333
Retail Payments	1,847		65,454		67,301		2,155		60,508		62,663
Total	$	192,950	$	98,535	$	291,485	$	109,848	$	96,007	$	205,855

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):

	March 31, 2020		December 31, 2019
Long-lived Assets
United States	$	1,507,574	$	1,526,046
Other	732,084		759,501
Total	$	2,239,658	$	2,285,547

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

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Revenue

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

In accordance with ASC 606, Revenue From Contracts With Customers, revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. See Note 10, Segment Information, for additional information, including disaggregation of revenue based on primary solution category and geographic location.

Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services, software as a service ("SaaS"), and platform as a service ("PaaS") revenues earned in the current period but billed in the following period, and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment subsequent to invoicing.

Total receivables, net is comprised of the following (in thousands):

	March 31, 2020		December 31, 2019
Billed receivables	$	164,282	$	213,654
Allowance for doubtful accounts	(3,465)		(5,149)
Billed receivables, net	160,817		208,505
Accrued receivables	375,739		399,302
Significant financing component	(32,355)		(35,569)
Total accrued receivables, net	343,384		363,733
Less: current accrued receivables	155,430		161,714
Less: current significant financing component	(10,600)		(11,022)
Total long-term accrued receivables, net	198,554		213,041
Total receivables, net	$	504,201	$	572,238

No customer accounted for more than 10% of the Company’s consolidated receivables balance as of March 31, 2020, or December 31, 2019.

Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services, and/or SaaS and PaaS services in advance of recording the related revenue.

Changes in deferred revenue were as follows (in thousands):

Balance, December 31, 2019	$	118,939
Deferral of revenue	45,927
Recognition of deferred revenue	(25,359)
Foreign currency translation	(2,743)
Balance, March 31, 2020	$	136,764

Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include:

•Revenue that will be recognized in future periods from capacity overages that are accounted for as a usage-based royalty.

•SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient.

•SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the direct allocation method.

Revenue allocated to remaining performance obligations was $682.2 million as of March 31, 2020, of which the Company expects to recognize approximately 44% over the next 12 months and the remainder thereafter.

During the three months ended March 31, 2020 and 2019, revenue recognized by the Company from performance obligations satisfied in previous periods was not significant.

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Software and Other Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Software and Other Intangible Assets

Software and Other Intangible Assets

The carrying amount and accumulated amortization of the Company's software assets subject to amortization at each balance sheet date are as follows (in thousands):

	March 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Balance		Gross Carrying Amount		Accumulated Amortization		Net Balance
Software for resale	$	136,739	$	(122,317)	$	14,422	$	138,823	$	(122,061)	$	16,762
Software for internal use	405,794		(195,045)		210,749		400,065		(182,310)		217,755
Total software	$	542,533	$	(317,362)	$	225,171	$	538,888	$	(304,371)	$	234,517

Amortization of software for resale is computed using the greater of (a) the ratio of current gross revenues to the total of current and future gross revenues expected to be derived from the software or (b) the straight-line method over the remaining estimated useful life of generally five to ten years. Software for resale amortization expense recorded in the three months ended March 31, 2020 and 2019, totaled $1.9 million and $3.0 million, respectively. These software amortization expense amounts are reflected in cost of revenue in the condensed consolidated statements of operations.

Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally one to ten years. Software for internal use amortization expense recorded during the three months ended March 31, 2020 and

2019, totaled $16.7 million and $10.4 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the condensed consolidated statements of operations.

The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands):

	March 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Balance		Gross Carrying Amount		Accumulated Amortization		Net Balance
Customer relationships	$	501,039	$	(166,172)	$	334,867	$	507,785	$	(160,775)	$	347,010
Trademarks and trade names	27,090		(17,801)		9,289		27,312		(17,353)		9,959
Total other intangible assets	$	528,129	$	(183,973)	$	344,156	$	535,097	$	(178,128)	$	356,969

Other intangible assets amortization expense for the three months ended March 31, 2020 and 2019, totaled $9.3 million and $5.5 million, respectively.

Based on capitalized intangible assets as of March 31, 2020, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

Fiscal Year Ending December 31,	Software Amortization		Other Intangible Assets Amortization
Remainder of 2020	$	54,143	$	27,493
2021	58,348		36,275
2022	40,407		36,143
2023	25,977		35,871
2024	20,083		31,456
Thereafter	26,213		176,918
Total	$	225,171	$	344,156

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Acquisition - Additional Information (Details) customer in Thousands		3 Months Ended
	May 09, 2019 USD ($) customer	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Apr. 05, 2019 USD ($)
Revolving Credit Facility | Credit Agreement
Business Acquisition [Line Items]
Line of credit, carrying amount		$ 230,000,000.0
SpeedPay
Business Acquisition [Line Items]
Acquisition purchase price	$ 754,100,000
Acquisition-related costs			$ 4,700,000
Acquisition-related revenue		88,700,000
Acquisition-related operating income		$ 12,300,000
SpeedPay | Bank of America | Delayed Draw Term Loan | Credit Agreement
Business Acquisition [Line Items]
Debt instrument, face amount				$ 500,000,000.0
SpeedPay | Bank of America | Revolving Credit Facility | Credit Agreement
Business Acquisition [Line Items]
Line of credit, carrying amount				$ 250,000,000.0
SpeedPay | U.S.
Business Acquisition [Line Items]
Number of customers | customer	4

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Revenue - Summary of Changes in Deferred Revenue (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Change in Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning balance	$ 118,939
Deferral of revenue	45,927
Recognition of deferred revenue	(25,359)
Foreign currency translation	(2,743)
Deferred revenue, ending balance	$ 136,764

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Loss Per Share - Reconciliation of Weighted Average Share Amounts Used to Compute Basic and Diluted Earnings (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Weighted average shares outstanding:
Basic weighted average shares outstanding (in shares)	116,006	116,090
Add: Dilutive effect of stock options and RSUs (in shares)	0	0
Diluted weighted average shares outstanding (in shares)	116,006	116,090

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Condensed Consolidated Financial Statements

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Financial Statements

Condensed Consolidated Financial Statements

The unaudited condensed consolidated financial statements include the accounts of ACI Worldwide, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements as of March 31, 2020, and for the three months ended March 31, 2020 and 2019, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods. The condensed consolidated balance sheet as of December 31, 2019, is derived from the audited financial statements.

The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2019, filed on February 27, 2020. Results for the three months ended March 31, 2020, are not necessarily indicative of results that may be attained in the future.

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Risks and Uncertainties

The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic is in early stages and information is rapidly evolving. The Company has experienced changes in volumes for certain Merchant and Biller customers and has received limited requests for extended payment terms under existing contracts. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or global economic recession. Such economic disruption could have a material adverse effect on our business as our customers curtail and reduce capital and overall spending. Policymakers around the globe have responded with fiscal policy actions to support the economy as a whole. The magnitude and overall effectiveness of these actions remains uncertain.

The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operations challenges faced by its customers. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain.

Other Current Liabilities

The components of other current liabilities are included in the following table (in thousands):

	March 31, 2020		December 31, 2019
Operating lease liabilities	$	14,586	$	15,049
Vendor financed licenses	10,390		9,667
Royalties payable	5,162		6,107
Accrued interest	3,308		9,212
Other	32,936		36,936
Total other current liabilities	$	66,382	$	76,971

Settlement Assets and Liabilities

Individuals and businesses settle their obligations to the Company’s various Biller clients using credit or debit cards or via automated clearing house (“ACH”) payments. The Company creates a receivable for the amount due from the credit or debit card processor and an offsetting payable to the client. Upon confirmation that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may (1) receive the funds into bank accounts controlled by and in the Company’s name that are not disbursed to its clients by the end of the day, resulting in a settlement deposit on the Company’s books and (2) disburse funds to its clients in advance of receiving funds from the credit or debit card processor, resulting in a net settlement receivable position.

Off Balance Sheet Settlement Accounts

The Company also enters into agreements with certain Biller clients to process payment funds on their behalf. When an ACH or automated teller machine network payment transaction is processed, a transaction is initiated to withdraw funds from the designated source account and deposit them into a settlement account, which is a trust account maintained for the benefit of the Company’s clients. A simultaneous transaction is initiated to transfer funds from the settlement account to the intended destination account. These “back to back” transactions are designed to settle at the same time, usually overnight, such that the Company receives the funds from the source at the same time as it sends the funds to their destination. However, due to the transactions being with various financial institutions there may be timing differences that result in float balances. These funds are maintained in accounts for the benefit of the client, which is separate from the Company’s corporate assets. As the Company does not take ownership of the funds, these settlement accounts are not included in the Company’s balance sheet. The Company is entitled to interest earned on the fund balances. The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company. The amount of settlement funds as of March 31, 2020, and December 31, 2019, was $215.5 million and $274.0 million, respectively.

Fair Value

The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s 5.750% Senior Notes due 2026 (“2026 Notes”) was $402.0 million and $432.0 million as of March 31, 2020, and December 31, 2019, respectively.

The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy).

Goodwill

In accordance with the Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its reportable segments, ACI On Demand and ACI On Premise, as the reporting units.

Changes in the carrying amount of goodwill attributable to each reporting unit during the three months ended March 31, 2020, were as follows (in thousands):

	ACI On Demand		ACI On Premise		Total
Gross Balance, prior to December 31, 2019	$	554,617	$	773,340	$	1,327,957
Total impairment prior to December 31, 2019	—		(47,432)		(47,432)
Balance, December 31, 2019	554,617		725,908		1,280,525
Goodwill from acquisitions (1)	(299)		—		(299)
Balance, March 31, 2020	$	554,318	$	725,908	$	1,280,226

(1)Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition.

Recoverability of goodwill is measured using a discounted cash flow valuation model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon the October 1, 2019, annual impairment test. Given the adverse economic and market conditions caused by the COVID-19 pandemic, the Company considered a variety of qualitative factors to determine if an additional quantitative impairment test was required subsequent to our annual impairment test. Based on a variety of factors, including the excess of the fair value over the carrying amount in the most recent impairment test, we determined that an additional quantitative impairment test was not required.

Equity Method Investment

On July 23, 2019, the Company invested $18.3 million for a 30% non-controlling financial interest in a payment technology and services company in India. The Company accounted for this investment using the equity method in accordance with ASC 323, Investments - Equity Method and Joint Ventures. Accordingly, the Company recorded an initial investment of $18.5 million, which is included in other noncurrent assets in the condensed consolidated balance sheet as of March 31, 2020 and December 31, 2019. The Company records its share of earnings and losses in the investment on a one-quarter lag basis.

Name Change

Effective January 1, 2020, Official Payments Corporation, a wholly owned subsidiary, changed its name to ACI Payments, Inc. An amended and restated certificate of incorporation was filed with the state of Delaware to reflect the change. The Official Payments Corporation name and corresponding trade name may continue to be used until all stationary and marketing materials are transitioned to ACI Payments, Inc. equivalents.

New Accounting Standards Recently Adopted

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, codified as ASC 326. Subsequent amendments to the guidance were issued as follows: ASU 2018-19 in November 2018; ASU 2019-04 in April 2019; ASU 2019-05 in May 2019; ASU's 2019-10 and 2019-11 in November 2019; and ASU 2020-02 in February 2020. This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in ASU 2016-13 replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company is required to use a forward-looking expected credit loss model for billed and accrued receivables. The Company adopted ASU 2016-13 as of January 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the condensed consolidated financial statements.

In February 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, which clarifies or improves various financial instruments topics in the accounting standards codification to increase stakeholder awareness. ASU 2020-03 was effective upon issuance and did not have a material impact on the condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate (“LIBOR”). This guidance includes optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities as of March 12, 2020, through December 31, 2022, when the reference rate replacement activity is expected to be completed. The adoption of ASU 2020-04 did not have an impact on the Company's condensed consolidated financial statements.

Recently Issued Accounting Standards Not Yet Effective

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions within ASC 740, as well as clarify and simplify other aspects of the accounting for income taxes to promote consistency among reporting entities. ASU 2019-12 is effective for annual and interim periods beginning after December 15, 2020. The Company is currently assessing the impact the adoption of ASU 2019-12 will have on its condensed consolidated financial statements.

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Segment Information - Selected Financial Data, Revenues and Long lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 291,485	$ 205,855
Long-lived assets
Long-lived assets	2,239,658		$ 2,285,547
Bill Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	153,686	68,967
Digital Channels
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	15,956	18,513
Merchant Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	23,120	24,361
Payments Intelligence
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	13,126	16,018
Real-Time Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	18,296	15,333
Retail Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	67,301	62,663
Americas - United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	204,793	119,458
Long-lived assets
Long-lived assets	1,507,574		1,526,046
Americas - Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	21,174	13,688
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	39,873	54,519
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	25,645	18,190
Other
Long-lived assets
Long-lived assets	732,084		$ 759,501
Operating Segments | ACI On Demand
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	192,950	109,848
Operating Segments | ACI On Demand | Bill Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	153,686	68,967
Operating Segments | ACI On Demand | Digital Channels
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	8,393	9,788
Operating Segments | ACI On Demand | Merchant Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	19,014	19,339
Operating Segments | ACI On Demand | Payments Intelligence
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	9,013	8,981
Operating Segments | ACI On Demand | Real-Time Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	997	618
Operating Segments | ACI On Demand | Retail Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,847	2,155
Operating Segments | ACI On Premise
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	98,535	96,007
Operating Segments | ACI On Premise | Bill Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	0	0
Operating Segments | ACI On Premise | Digital Channels
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	7,563	8,725
Operating Segments | ACI On Premise | Merchant Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	4,106	5,022
Operating Segments | ACI On Premise | Payments Intelligence
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	4,113	7,037
Operating Segments | ACI On Premise | Real-Time Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	17,299	14,715
Operating Segments | ACI On Premise | Retail Payments
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	65,454	60,508
Operating Segments | Americas - United States | ACI On Demand
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	175,654	93,036
Operating Segments | Americas - United States | ACI On Premise
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	29,139	26,422
Operating Segments | Americas - Other | ACI On Demand
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	3,233	2,743
Operating Segments | Americas - Other | ACI On Premise
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	17,941	10,945
Operating Segments | EMEA | ACI On Demand
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	10,918	12,068
Operating Segments | EMEA | ACI On Premise
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	28,955	42,451
Operating Segments | Asia Pacific | ACI On Demand
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	3,145	2,001
Operating Segments | Asia Pacific | ACI On Premise
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 22,500	$ 16,189

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Cover Page - shares	3 Months Ended
	Mar. 31, 2020	May 04, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	0-25346
Entity Registrant Name	ACI WORLDWIDE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-0772104
Entity Address, Address Line One	3520 Kraft Rd,
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Naples,
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	34105
City Area Code	239
Local Phone Number	403-4660
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		115,944,850
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000935036
Current Fiscal Year End Date	--12-31
NASDAQ/NGS (GLOBAL SELECT MARKET)
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.005 par value
Trading Symbol	ACIW
Security Exchange Name	NASDAQ

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (24,427)	$ (25,963)
Other comprehensive income (loss):
Foreign currency translation adjustments	(6,169)	1,321
Total other comprehensive income (loss)	(6,169)	1,321
Comprehensive loss	$ (30,596)	$ (24,642)

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Stock-Based Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6,950	$ 6,585
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive plan, total intrinsic value of stock options exercised	300	$ 5,300
Unrecognized compensation costs	$ 100
Unrecognized compensation costs, weighted average recognition period	10 months 24 days
LTIP Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested	668,240
Shares withheld to pay employees' portion of minimum payroll withholding taxes	165,237
Restricted Share Awards (RSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested	88,913
Shares withheld to pay employees' portion of minimum payroll withholding taxes	28,233
Total Shareholder Return Awards (TSRs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested	199,413
Payout rate	93.00%
Vesting performance period	3 years
Shares withheld to pay employees' portion of minimum payroll withholding taxes	53,033
Unrecognized compensation costs	$ 31,500
Unrecognized compensation costs, weighted average recognition period	2 years 6 months
Restricted Share Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested	327,491
Shares withheld to pay employees' portion of minimum payroll withholding taxes	103,839
Unrecognized compensation costs	$ 33,700
Unrecognized compensation costs, weighted average recognition period	2 years 4 months 24 days
2017 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under ESPP	31,794	32,174
2016 Equity and Performance Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 7,000	$ 6,600
Stock-based compensation expense, tax benefits	$ 1,400	$ 1,200

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Stock-Based Compensation Plans - Summary of Nonvested RSAs (Details) - Restricted Share Awards (RSAs)	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Number of Shares
Nonvested, beginning balance (in shares) | shares	92,842
Vested (in shares) | shares	(88,913)
Forfeited (in shares) | shares	(3,929)
Nonvested, ending balance (in shares) | shares	0
Weighted Average Grant Date Fair Value
Nonvested, beginning balance (in dollars per share) | $ / shares	$ 20.13
Vested (in dollars per share) | $ / shares	20.12
Forfeited (in dollars per share) | $ / shares	20.35
Nonvested, ending balance (in dollars per share) | $ / shares	$ 0

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Revenue (Tables)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Summary of Total Receivables, Net

Total receivables, net is comprised of the following (in thousands):

	March 31, 2020		December 31, 2019
Billed receivables	$	164,282	$	213,654
Allowance for doubtful accounts	(3,465)		(5,149)
Billed receivables, net	160,817		208,505
Accrued receivables	375,739		399,302
Significant financing component	(32,355)		(35,569)
Total accrued receivables, net	343,384		363,733
Less: current accrued receivables	155,430		161,714
Less: current significant financing component	(10,600)		(11,022)
Total long-term accrued receivables, net	198,554		213,041
Total receivables, net	$	504,201	$	572,238

Summary of Changes in Deferred Revenue

Changes in deferred revenue were as follows (in thousands):

Balance, December 31, 2019	$	118,939
Deferral of revenue	45,927
Recognition of deferred revenue	(25,359)
Foreign currency translation	(2,743)
Balance, March 31, 2020	$	136,764

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Software and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Carrying Amount and Accumulated Amortization of Software and Other Intangible Assets

The carrying amount and accumulated amortization of the Company's software assets subject to amortization at each balance sheet date are as follows (in thousands):

	March 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Balance		Gross Carrying Amount		Accumulated Amortization		Net Balance
Software for resale	$	136,739	$	(122,317)	$	14,422	$	138,823	$	(122,061)	$	16,762
Software for internal use	405,794		(195,045)		210,749		400,065		(182,310)		217,755
Total software	$	542,533	$	(317,362)	$	225,171	$	538,888	$	(304,371)	$	234,517

The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands):

	March 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Balance		Gross Carrying Amount		Accumulated Amortization		Net Balance
Customer relationships	$	501,039	$	(166,172)	$	334,867	$	507,785	$	(160,775)	$	347,010
Trademarks and trade names	27,090		(17,801)		9,289		27,312		(17,353)		9,959
Total other intangible assets	$	528,129	$	(183,973)	$	344,156	$	535,097	$	(178,128)	$	356,969

Schedule of Estimated Intangible Asset Amortization Expense in Future Fiscal Years

Based on capitalized intangible assets as of March 31, 2020, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

Fiscal Year Ending December 31,	Software Amortization		Other Intangible Assets Amortization
Remainder of 2020	$	54,143	$	27,493
2021	58,348		36,275
2022	40,407		36,143
2023	25,977		35,871
2024	20,083		31,456
Thereafter	26,213		176,918
Total	$	225,171	$	344,156

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Stock-Based Compensation Plans - Summary of Nonvested RSUs (Details) - Restricted Share Units (RSUs)	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Number of Shares
Nonvested, beginning balance (in shares) | shares	1,009,404
Granted (in shares) | shares	726,012
Vested (in shares) | shares	(327,491)
Forfeited (in shares) | shares	(74,771)
Nonvested, ending balance (in shares) | shares	1,333,154
Weighted Average Grant Date Fair Value
Nonvested, beginning balance (in dollars per share) | $ / shares	$ 29.96
Granted (in dollars per share) | $ / shares	25.43
Vested (in dollars per share) | $ / shares	28.40
Forfeited (in dollars per share) | $ / shares	30.02
Nonvested, ending balance (in dollars per share) | $ / shares	$ 27.87

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Stock-Based Compensation Plans - Summary of Nonvested LTIP Performance Shares (Details) - LTIP Performance Shares	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Number of Shares at Expected Attainment
Nonvested, beginning balance (in shares) | shares	669,469
Vested (in shares) | shares	(668,240)
Forfeited (in shares) | shares	(5,368)
Change in attainment (in shares) | shares	4,139
Nonvested, ending balance (in shares) | shares	0
Weighted Average Grant Date Fair Value
Nonvested, beginning balance (in dollars per share) | $ / shares	$ 20.12
Vested (in dollars per share) | $ / shares	20.12
Forfeited (in dollars per share) | $ / shares	20.12
Change in attainment (in dollars per share) | $ / shares	20.12
Nonvested, ending balance (in dollars per share) | $ / shares	$ 0

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Acquisition (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of March 31, 2020 (in thousands, except weighted average useful lives):

	Amount		Weighted Average Useful Lives
Current assets:
Cash and cash equivalents	$	135
Receivables, net of allowances	17,658
Settlement assets	239,604
Prepaid expenses	317
Other current assets	19,585
Total current assets acquired	277,299
Noncurrent assets:
Goodwill	366,508
Software	113,600		7 years
Customer relationships	208,500		15 years
Trademarks	10,900		5 years
Other noncurrent assets	3,745
Total assets acquired	980,552
Current liabilities:
Accounts payable	6,623
Settlement liabilities	212,892
Employee compensation	1,959
Other current liabilities	3,802
Total current liabilities acquired	225,276
Noncurrent liabilities:
Other noncurrent liabilities	1,219
Total liabilities acquired	226,495
Net assets acquired	$	754,057

Summary of Unaudited Summarized Pro Forma Financial Information

The following is the unaudited summarized pro forma financial information (in thousands, except per share data):

	Three Months Ended March 31, 2019
Pro forma revenue	$	294,059
Pro forma net loss	$	(21,245)
Pro forma loss per share:
Basic	$	(0.18)
Diluted	$	(0.18)

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Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Summary of Reconciliation of Weighted Average Share Amounts Used to Compute Both Basic and Diluted Loss Per Share

The following table reconciles the weighted average share amounts used to compute both basic and diluted loss per share (in thousands):

	Three Months Ended March 31,
	2020	2019
Weighted average shares outstanding:
Basic weighted average shares outstanding	116,006	116,090
Add: Dilutive effect of stock options and RSUs	—	—
Diluted weighted average shares outstanding	116,006	116,090

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Acquisition

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisition

Acquisition

Speedpay

On May 9, 2019, the Company acquired Speedpay, a subsidiary of The Western Union Company (“Western Union”), for $754.1 million in cash, including working capital adjustments, pursuant to a Stock Purchase Agreement, among the Company, Western Union, and ACI Worldwide Corp., a wholly owned subsidiary of the Company. The Company has included the financial results of Speedpay in the condensed consolidated financial statements from the date of acquisition. The combination of the Company and Speedpay bill pay solutions serves more than 4,000 customers across the U.S., bringing expanded reach in existing and complementary market segments such as consumer finance, insurance, healthcare, higher education, utilities, government, and mortgage. The acquisition of Speedpay increases the scale of the Company’s On Demand platform business and allows the acceleration of platform innovation through increased research and development and investment in ACI's On Demand platform infrastructure.

To fund the acquisition, the Company amended its existing Credit Agreement, dated February 24, 2017, for an additional $500.0 million senior secured term loan (“Delayed Draw Term Loan”), in addition to drawing $250.0 million on the available Revolving Credit Facility. See Note 4, Debt, for terms of the Credit Agreement. The remaining acquisition consideration was funded with cash on hand.

The Company expensed approximately $4.7 million of costs related to the acquisition of Speedpay for the three months ended March 31, 2019. These costs, which consist primarily of investment bank, consulting, and legal fees, are included in general and administrative expenses in the accompanying condensed consolidated statements of operations.

Speedpay contributed approximately $88.7 million in revenue and $12.3 million in operating income for the three months ended March 31, 2020.

In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of March 31, 2020 (in thousands, except weighted average useful lives):

	Amount		Weighted Average Useful Lives
Current assets:
Cash and cash equivalents	$	135
Receivables, net of allowances	17,658
Settlement assets	239,604
Prepaid expenses	317
Other current assets	19,585
Total current assets acquired	277,299
Noncurrent assets:
Goodwill	366,508
Software	113,600		7 years
Customer relationships	208,500		15 years
Trademarks	10,900		5 years
Other noncurrent assets	3,745
Total assets acquired	980,552
Current liabilities:
Accounts payable	6,623
Settlement liabilities	212,892
Employee compensation	1,959
Other current liabilities	3,802
Total current liabilities acquired	225,276
Noncurrent liabilities:
Other noncurrent liabilities	1,219
Total liabilities acquired	226,495
Net assets acquired	$	754,057

During the three months ended March 31, 2020, the Company made adjustments to the preliminary purchase price allocation as additional information became available for accounts payable. These adjustments and any resulting adjustments to the statements of operations were not material to the Company’s previously reported operating results or financial position.

Factors contributing to the purchase price that resulted in the goodwill (which is tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company, enhanced product capabilities, complementary products, and customers.

Unaudited Pro Forma Financial Information

The pro forma financial information in the table below presents the combined results of operations for ACI and Speedpay as if the acquisition had occurred January 1, 2018. The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transaction been in effect for the periods presented. This pro forma information is not intended to represent or be indicative of actual results had the acquisition occurred as of the beginning of each period, and does not reflect potential synergies, integration costs, or other such costs or savings.

Certain pro forma adjustments have been made to net loss for the three months ended March 31, 2019, to give effect to estimated adjustments that remove the amortization expense on eliminated Speedpay historical identifiable intangible assets, add amortization expense for the value of acquired identified intangible assets (primarily acquired software, customer relationships, and trademarks), and add estimated interest expense on the Company’s additional Delayed Draw Term Loan and Revolving Credit Facility borrowings. Additionally, certain transaction expenses that are a direct result of the acquisition have

been excluded. The three months ended March 31, 2020, is not presented as Speedpay is included in the Company's consolidated results for the entire period.

The following is the unaudited summarized pro forma financial information (in thousands, except per share data):

	Three Months Ended March 31, 2019
Pro forma revenue	$	294,059
Pro forma net loss	$	(21,245)
Pro forma loss per share:
Basic	$	(0.18)
Diluted	$	(0.18)

Walletron

On May 9, 2019, the Company also completed the acquisition of Walletron, which delivers patented mobile wallet technology. The Company has included the financial results of Walletron in the condensed consolidated financial statements from the date of acquisition, which were not material.

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Common Stock and Treasury Stock

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Common Stock and Treasury Stock

Common Stock and Treasury Stock

In 2005, the board approved a stock repurchase program authorizing the Company, as market and business conditions warrant, to acquire its common stock and periodically authorize additional funds for the program. In February 2018, the board approved the repurchase of the Company's common stock of up to $200.0 million, in place of the remaining purchase amounts previously authorized.

The Company repurchased 1,000,000 shares for $28.9 million under the program during the three months ended March 31, 2020. Under the program to date, the Company has repurchased 46,357,495 shares for approximately $612.3 million. As of March 31, 2020, the maximum remaining amount authorized for purchase under the stock repurchase program was $112.1 million.

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Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three months ended March 31, 2020, was 31%. The Company reported an overall tax benefit on a pretax loss for the three months ended March 31, 2020. The losses of the Company’s foreign entities for the three months ended March 31, 2020, were $14.4 million. The effective tax rate for the three months ended March 31, 2020, was positively impacted by equity compensation excess tax benefits and state income tax benefits on domestic loss.

The effective tax rate for the three months ended March 31, 2019, was 33%. The Company reported an overall tax benefit on a pretax loss for the three months ended March 31, 2019. The losses of the Company’s foreign entities for the three months ended March 31, 2019, were $6.1 million. The effective tax rates for the three months ended March 31, 2019, was positively impacted by equity compensation excess tax benefits and state income tax benefits on domestic loss.

The Company’s effective tax rate could fluctuate on a quarterly basis due to the occurrence of significant and unusual or infrequent items, such as vesting of stock-based compensation or foreign currency gains and losses. The Company’s effective tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, the Company is occasionally subject to examination of its income tax returns by tax authorities in the jurisdictions it operates. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes.

As of March 31, 2020, and December 31, 2019, the amount of unrecognized tax benefits for uncertain tax positions was $30.0 million and $29.0 million, respectively, excluding related liabilities for interest and penalties of $1.2 million as of March 31, 2020 and December 31, 2019.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $11.7 million, due to the settlement of various audits and the expiration of statutes of limitation.

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Acquisition - Summary of Unaudited Pro Forma Financial Information (Details) - SpeedPay $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares
Business Acquisition [Line Items]
Pro forma revenue | $	$ 294,059
Pro forma net loss | $	$ (21,245)
Pro forma loss per share:
Basic (in USD per share) | $ / shares	$ (0.18)
Diluted (in USD per share) | $ / shares	$ (0.18)

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Revenue - Summary of Total Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Billed receivables	$ 164,282	$ 213,654
Allowance for doubtful accounts	(3,465)	(5,149)
Billed receivables, net	160,817	208,505
Accrued receivables	375,739	399,302
Significant financing component	(32,355)	(35,569)
Total accrued receivables, net	343,384	363,733
Less: current accrued receivables	155,430	161,714
Less: current significant financing component	(10,600)	(11,022)
Total long-term accrued receivables, net	198,554	213,041
Total receivables, net	$ 504,201	$ 572,238

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Revenues
Total revenues		$ 291,485	$ 205,855
Operating expenses
Cost of revenue	[1]	165,837	114,941
Research and development		39,024	36,194
Selling and marketing		30,083	29,430
General and administrative		35,926	31,517
Depreciation and amortization		31,898	21,866
Total operating expenses		302,768	233,948
Operating loss		(11,283)	(28,093)
Other income (expense)
Interest expense		(17,171)	(11,614)
Interest income		2,900	3,033
Other, net		(9,758)	(1,912)
Total other income (expense)		(24,029)	(10,493)
Loss before income taxes		(35,312)	(38,586)
Income tax benefit		(10,885)	(12,623)
Net loss		$ (24,427)	$ (25,963)
Loss per common share
Basic (in dollars per share)		$ (0.21)	$ (0.22)
Diluted (in dollars per share)		$ (0.21)	$ (0.22)
Weighted average common shares outstanding
Basic (in shares)		116,006	116,090
Diluted (in shares)		116,006	116,090
Software as a service and platform as a service
Revenues
Total revenues		$ 192,950	$ 108,557
License
Revenues
Total revenues		28,129	21,078
Maintenance
Revenues
Total revenues		53,280	55,111
Services
Revenues
Total revenues		$ 17,126	$ 21,109

[1] The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale.

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Loss Per Share - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Earnings Per Share [Abstract]
Antidilutive securities excluded from earnings (loss) per share, options to purchase shares and RSUs (in shares)	6,700,000	7,400,000
Common stock outstanding (in shares)	115,882,242		115,986,352

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (24,427)	$ (25,963)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation	5,825	5,901
Amortization	27,997	18,951
Amortization of operating lease right-of-use assets	3,556	3,383
Amortization of deferred debt issuance costs	1,212	753
Deferred income taxes	(10,413)	(17,414)
Stock-based compensation expense	6,950	6,585
Other	650	574
Changes in operating assets and liabilities, net of impact of acquisitions:
Receivables	48,699	94,549
Accounts payable	(6,087)	(10,297)
Accrued employee compensation	6,985	(8,598)
Current income taxes	(5,361)	(1,041)
Deferred revenue	22,495	(4,127)
Other current and noncurrent assets and liabilities	(20,581)	(20,829)
Net cash flows from operating activities	57,500	42,427
Cash flows from investing activities:
Purchases of property and equipment	(3,597)	(5,250)
Purchases of software and distribution rights	(6,541)	(4,578)
Net cash flows from investing activities	(10,138)	(9,828)
Cash flows from financing activities:
Proceeds from issuance of common stock	947	831
Proceeds from exercises of stock options	400	4,857
Repurchase of stock-based compensation awards for tax withholdings	(10,973)	(2,624)
Repurchases of common stock	(28,881)	(631)
Proceeds from revolving credit facility	30,000	0
Repayment of revolving credit facility	(39,000)	0
Repayment of term portion of credit agreement	(9,737)	(5,937)
Payments on or proceeds from other debt, net	(3,593)	(1,857)
Net cash flows from financing activities	(60,837)	(5,361)
Effect of exchange rate fluctuations on cash	11,201	433
Net increase (decrease) in cash and cash equivalents	(2,274)	27,671
Cash and cash equivalents, beginning of period	121,398	148,502
Cash and cash equivalents, end of period	119,124	176,173
Supplemental cash flow information
Income taxes paid	6,639	5,949
Interest paid	$ 21,837	$ 14,388

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Effective tax rate, percentage	31.00%	33.00%
Earnings (loss) of foreign entities	$ (14.4)	$ (6.1)
Unrecognized tax benefit for uncertain tax positions	30.0		$ 29.0
Liabilities for interest and penalties, excluded from unrecognized tax benefits for uncertain tax positions	1.2		$ 1.2
Decrease in unrecognized tax benefits due to the settlement of various audits and expiration of statutes of limitations	$ 11.7

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Stock-Based Compensation Plans - Summary of Nonvested TSRs (Details) - Total Shareholder Return Awards (TSRs)	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Number of Shares
Nonvested, beginning balance (in shares) | shares	1,062,291
Granted (in shares) | shares	677,195
Vested (in shares) | shares	(199,413)
Forfeited (in shares) | shares	(59,733)
Change in payout rate (in shares) | shares	(14,259)
Nonvested, ending balance (in shares) | shares	1,466,081
Weighted Average Grant Date Fair Value
Nonvested, beginning balance (in dollars per share) | $ / shares	$ 35.77
Granted (in dollars per share) | $ / shares	30.01
Vested (in dollars per share) | $ / shares	24.37
Forfeited (in dollars per share) | $ / shares	38.95
Change in payout rate (in dollars per share) | $ / shares	24.37
Nonvested, ending balance (in dollars per share) | $ / shares	$ 34.64

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Debt - Additional Information (Details) - USD ($)		3 Months Ended
	Apr. 05, 2019	Mar. 31, 2020	Dec. 31, 2019	Apr. 29, 2019	Aug. 21, 2018
Debt Instrument [Line Items]
Long-term debt, amount outstanding		$ 1,376,323,000
Credit Agreement
Debt Instrument [Line Items]
Effective interest rate (percentage)		3.17%
Credit Agreement | Parent Company and Domestic Subsidiaries
Debt Instrument [Line Items]
Percentage of capital stock pledged as collateral		100.00%
Credit Agreement | Foreign Subsidiaries
Debt Instrument [Line Items]
Percentage of capital stock pledged as collateral		65.00%
Credit Agreement | Base Rate | Option (a) | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.25%
Credit Agreement | Base Rate | Option (a) | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.25%
Credit Agreement | Federal Funds Effective Swap Rate | Option (a)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.50%
Credit Agreement | LIBOR | Option (a)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.00%
Credit Agreement | LIBOR | Option (b) | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.25%
Credit Agreement | LIBOR | Option (b) | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.25%
Revolving Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Line of credit, amount outstanding		$ 230,000,000.0
Unused borrowings		270,000,000.0
Debt instrument, term	5 years
Credit facility, maximum borrowing capacity	$ 500,000,000.0
Term Loans | Credit Agreement
Debt Instrument [Line Items]
Long-term debt, amount outstanding		746,300,000
Initial Term Loan | Credit Agreement
Debt Instrument [Line Items]
Debt instrument, face amount	$ 279,000,000.0
Debt instrument, term	5 years
Delayed Draw Term Loan | Credit Agreement
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000.0
Debt instrument, term	5 years
Senior Notes | 5.750% Senior Notes, due August 2026
Debt Instrument [Line Items]
Long-term debt, amount outstanding		400,000,000.0
Debt instrument, face amount					$ 400,000,000.0
Issue price percentage of senior notes of the principal amount					100.00%
Debt Instrument, Interest Rate, Stated Percentage					5.75%
Line of Credit | Overdraft Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity				$ 140,000,000.0
Amount outstanding on overdraft facility		$ 0	$ 1,500,000
Line of Credit | Overdraft Facility | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.875%
Other | Multi-year License Agreement
Debt Instrument [Line Items]
Other long-term debt, amount outstanding		$ 13,800,000	13,800,000
Other | Multi-year License Agreement | Other Current Liabilities
Debt Instrument [Line Items]
Other long-term debt, current		6,000,000.0	6,000,000.0
Other | Multi-year License Agreement | Other Noncurrent Liabilities
Debt Instrument [Line Items]
Other long-term debt, noncurrent		$ 7,800,000	$ 7,800,000

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Software and Other Intangible Assets - Summary of Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 528,129	$ 535,097
Accumulated Amortization	(183,973)	(178,128)
Total	344,156	356,969
Software for resale
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	136,739	138,823
Accumulated Amortization	(122,317)	(122,061)
Total	14,422	16,762
Software for internal use
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	405,794	400,065
Accumulated Amortization	(195,045)	(182,310)
Total	210,749	217,755
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	542,533	538,888
Accumulated Amortization	(317,362)	(304,371)
Total	225,171	234,517
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	501,039	507,785
Accumulated Amortization	(166,172)	(160,775)
Total	334,867	347,010
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	27,090	27,312
Accumulated Amortization	(17,801)	(17,353)
Total	$ 9,289	$ 9,959

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Condensed Consolidated Financial Statements - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other Current Liabilities
Operating lease liabilities	$ 14,586	$ 15,049
Vendor financed licenses	10,390	9,667
Royalties payable	5,162	6,107
Accrued interest	3,308	9,212
Other	32,936	36,936
Total other current liabilities	$ 66,382	$ 76,971

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Condensed Consolidated Financial Statements (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Other Current Liabilities

The components of other current liabilities are included in the following table (in thousands):

	March 31, 2020		December 31, 2019
Operating lease liabilities	$	14,586	$	15,049
Vendor financed licenses	10,390		9,667
Royalties payable	5,162		6,107
Accrued interest	3,308		9,212
Other	32,936		36,936
Total other current liabilities	$	66,382	$	76,971

Summary of Changes in the Carrying Amount of Goodwill

Changes in the carrying amount of goodwill attributable to each reporting unit during the three months ended March 31, 2020, were as follows (in thousands):

	ACI On Demand		ACI On Premise		Total
Gross Balance, prior to December 31, 2019	$	554,617	$	773,340	$	1,327,957
Total impairment prior to December 31, 2019	—		(47,432)		(47,432)
Balance, December 31, 2019	554,617		725,908		1,280,525
Goodwill from acquisitions (1)	(299)		—		(299)
Balance, March 31, 2020	$	554,318	$	725,908	$	1,280,226

(1)Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition.

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Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Stock Option Activity

A summary of stock option activity is as follows:

	Number of Shares	Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value of In-the-Money Options ($)
Outstanding as of December 31, 2019	4,006,816	$	18.18
Exercised	(23,223)	17.21
Forfeited	(57,744)	19.08
Expired	(6,090)	18.44
Outstanding as of March 31, 2020	3,919,759	$	18.17	3.13	$	23,427,581
Exercisable as of March 31, 2020	3,772,523	$	18.10	3.18	$	22,816,683

LTIP Performance Shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Nonvested Performance Award Activity

A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) is as follows:

	Number of Shares at Expected Attainment	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	669,469	$	20.12
Vested	(668,240)	20.12
Forfeited	(5,368)	20.12
Change in attainment	4,139	20.12
Nonvested as of March 31, 2020	—	$	—

Restricted Share Awards (RSAs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Nonvested Restricted Share Award Activity

A summary of nonvested restricted share awards (“RSAs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	92,842	$	20.13
Vested	(88,913)	20.12
Forfeited	(3,929)	20.35
Nonvested as of March 31, 2020	—	$	—

Total Shareholder Return Awards (TSRs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Nonvested Performance Award Activity

A summary of nonvested total shareholder return awards (“TSRs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	1,062,291	$	35.77
Granted	677,195	30.01
Vested	(199,413)	24.37
Forfeited	(59,733)	38.95
Change in payout rate	(14,259)	24.37
Nonvested as of March 31, 2020	1,466,081	$	34.64

Total Shareholder Return Awards (TSRs) | Monte Carlo Simulation Model

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Grant Date Fair Value Weighted-Average Assumptions, Awards Other Than Options

The fair value of TSRs granted during the three months ended March 31, 2020 and 2019, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, using the following weighted average assumptions:

	Three Months Ended March 31,
	2020		2019
Expected life (years)	2.8		2.8
Risk-free interest rate	0.5	%	2.5	%
Expected volatility	31.4	%	29.3	%
Expected dividend yield	—		—

Restricted Share Units (RSUs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Nonvested Restricted Share Unit Activity

A summary of nonvested restricted share unit awards (“RSUs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	1,009,404	$	29.96
Granted	726,012	25.43
Vested	(327,491)	28.40
Forfeited	(74,771)	30.02
Nonvested as of March 31, 2020	1,333,154	$	27.87

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Revenue - Additional Information (Details) $ in Millions	Mar. 31, 2020 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue allocated to remaining performance obligations	$ 682.2
Revenue allocated to remaining performance obligations, percentage to be recognized over the next 12 months	44.00%

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Condensed Consolidated Financial Statements - Summary of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Goodwill [Line Items]
Goodwill, gross amount prior to beginning of period		$ 1,327,957
Goodwill, total impairment prior to beginning of period		(47,432)
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 1,280,525
Goodwill from acquisitions	(299)
Goodwill, end of period	1,280,226
ACI On Demand
Goodwill [Line Items]
Goodwill, gross amount prior to beginning of period		554,617
Goodwill, total impairment prior to beginning of period		0
Goodwill [Roll Forward]
Goodwill, beginning of period	554,617
Goodwill from acquisitions	(299)
Goodwill, end of period	554,318
ACI On Premise
Goodwill [Line Items]
Goodwill, gross amount prior to beginning of period		773,340
Goodwill, total impairment prior to beginning of period		$ (47,432)
Goodwill [Roll Forward]
Goodwill, beginning of period	725,908
Goodwill from acquisitions	0
Goodwill, end of period	$ 725,908

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Debt - Schedule of Maturities on Long-Term Debt Outstanding (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Debt Disclosure [Abstract]
Remainder of 2020	$ 29,213
2021	38,950
2022	50,431
2023	69,906
2024	787,823
Thereafter	400,000
Total	$ 1,376,323

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Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation Plans

Stock-Based Compensation Plans

Employee Stock Purchase Plan

Shares issued under the 2017 Employee Stock Purchase Plan during the three months ended March 31, 2020 and 2019, totaled 31,794 and 32,174, respectively.

Stock Options

A summary of stock option activity is as follows:

	Number of Shares	Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value of In-the-Money Options ($)
Outstanding as of December 31, 2019	4,006,816	$	18.18
Exercised	(23,223)	17.21
Forfeited	(57,744)	19.08
Expired	(6,090)	18.44
Outstanding as of March 31, 2020	3,919,759	$	18.17	3.13	$	23,427,581
Exercisable as of March 31, 2020	3,772,523	$	18.10	3.18	$	22,816,683

The total intrinsic value of stock options exercised during the three months ended March 31, 2020 and 2019, was $0.3 million and $5.3 million, respectively. There were no stock options granted during the three months ended March 31, 2020 or 2019.

Long-term Incentive Program Performance Share Awards

A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) is as follows:

	Number of Shares at Expected Attainment	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	669,469	$	20.12
Vested	(668,240)	20.12
Forfeited	(5,368)	20.12
Change in attainment	4,139	20.12
Nonvested as of March 31, 2020	—	$	—

During the three months ended March 31, 2020, a total of 668,240 LTIPs vested. The Company withheld 165,237 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

Restricted Share Awards

A summary of nonvested restricted share awards (“RSAs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	92,842	$	20.13
Vested	(88,913)	20.12
Forfeited	(3,929)	20.35
Nonvested as of March 31, 2020	—	$	—

During the three months ended March 31, 2020, a total of 88,913 RSAs vested. The Company withheld 28,233 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

Total Shareholder Return Awards

A summary of nonvested total shareholder return awards (“TSRs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	1,062,291	$	35.77
Granted	677,195	30.01
Vested	(199,413)	24.37
Forfeited	(59,733)	38.95
Change in payout rate	(14,259)	24.37
Nonvested as of March 31, 2020	1,466,081	$	34.64

During the three months ended March 31, 2020, a total of 199,413 TSRs awards granted in fiscal 2017 vested and achieved a payout rate of 93% based on the Company's total shareholder return as compared to a group of peer companies over a three-year performance period. The Company withheld 53,033 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

The fair value of TSRs granted during the three months ended March 31, 2020 and 2019, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, using the following weighted average assumptions:

	Three Months Ended March 31,
	2020		2019
Expected life (years)	2.8		2.8
Risk-free interest rate	0.5	%	2.5	%
Expected volatility	31.4	%	29.3	%
Expected dividend yield	—		—

Restricted Share Units

A summary of nonvested restricted share unit awards (“RSUs”) is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2019	1,009,404	$	29.96
Granted	726,012	25.43
Vested	(327,491)	28.40
Forfeited	(74,771)	30.02
Nonvested as of March 31, 2020	1,333,154	$	27.87

During the three months ended March 31, 2020, a total of 327,491 RSUs vested. The Company withheld 103,839 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

As of March 31, 2020, there were unrecognized compensation costs of $33.7 million related to nonvested RSUs, $31.5 million related to nonvested TSRs, and less than $0.1 million related to nonvested stock options, which the Company expects to recognize over weighted average periods of 2.4 years, 2.5 years, and 0.9 years, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended March 31, 2020 and 2019, of $7.0 million and $6.6 million, respectively, with the corresponding tax benefits of $1.4 million and $1.2 million, respectively.

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Other, Net	3 Months Ended
	Mar. 31, 2020
Other Income and Expenses [Abstract]
Other, Net	Other, NetOther, net is comprised of foreign currency transaction losses of $9.8 million and $1.9 million for the three months ended March 31, 2020 and 2019, respectively.

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 119,124	$ 121,398
Receivables, net of allowances of $3,465 and $5,149, respectively	305,647	359,197
Settlement assets	317,156	391,039
Prepaid expenses	32,047	24,542
Other current assets	32,472	24,200
Total current assets	806,446	920,376
Noncurrent assets
Accrued receivables, net	198,554	213,041
Property and equipment, net	67,893	70,380
Operating lease right-of-use assets	53,490	57,382
Software, net	225,171	234,517
Goodwill	1,280,226	1,280,525
Intangible assets, net	344,156	356,969
Deferred income taxes, net	63,795	51,611
Other noncurrent assets	70,168	72,733
TOTAL ASSETS	3,109,899	3,257,534
Current liabilities
Accounts payable	32,166	37,010
Settlement liabilities	297,936	368,719
Employee compensation	35,035	29,318
Current portion of long-term debt	34,177	34,148
Deferred revenue	90,660	65,784
Other current liabilities	66,382	76,971
Total current liabilities	556,356	611,950
Noncurrent liabilities
Deferred revenue	46,104	53,155
Long-term debt	1,321,452	1,339,007
Deferred income taxes, net	31,959	32,053
Operating lease liabilities	43,053	46,766
Other noncurrent liabilities	43,177	44,635
Total liabilities	2,042,101	2,127,566
Commitments and contingencies
Stockholders’ equity
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at March 31, 2020, and December 31, 2019	0	0
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at March 31, 2020, and December 31, 2019	702	702
Additional paid-in capital	656,723	667,658
Retained earnings	906,403	930,830
Treasury stock, at cost, 24,642,813 and 24,538,703 shares at March 31, 2020, and December 31, 2019, respectively	(398,278)	(377,639)
Accumulated other comprehensive loss	(97,752)	(91,583)
Total stockholders’ equity	1,067,798	1,129,968
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 3,109,899	$ 3,257,534

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2018	$ 1,048,231	$ 702	$ 632,235	$ 863,768	$ (355,857)	$ (92,617)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(25,963)			(25,963)
Other comprehensive income (loss)	1,321					1,321
Stock-based compensation	6,585		6,585
Shares issued and forfeited, net, under stock plans	5,665		(1,860)		7,525
Repurchase of common stock	(631)				(631)
Repurchase of stock-based compensation awards for tax withholdings	(2,624)				(2,624)
Ending balance at Mar. 31, 2019	1,032,584	702	636,960	837,805	(351,587)	(91,296)
Beginning balance at Dec. 31, 2019	1,129,968	702	667,658	930,830	(377,639)	(91,583)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(24,427)			(24,427)
Other comprehensive income (loss)	(6,169)					(6,169)
Stock-based compensation	6,950		6,950
Shares issued and forfeited, net, under stock plans	1,330		(17,885)		19,215
Repurchase of common stock	(28,881)				(28,881)
Repurchase of stock-based compensation awards for tax withholdings	(10,973)				(10,973)
Ending balance at Mar. 31, 2020	$ 1,067,798	$ 702	$ 656,723	$ 906,403	$ (398,278)	$ (97,752)

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Common Stock and Treasury Stock - Additional Information (Details) - USD ($)	3 Months Ended		184 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Feb. 28, 2018
Equity [Abstract]
Amount approved for repurchase				$ 200,000,000.0
Shares repurchased (in shares)	1,000,000	23,802	46,357,495
Shares repurchased, value	$ 28,881,000	$ 631,000	$ 612,300,000
Maximum remaining amount authorized for purchase	$ 112,100,000		$ 112,100,000

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Segment Information - Selected Financial Data (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 291,485	$ 205,855
Depreciation and amortization	(33,822)	(24,852)
Stock-based compensation expense	(6,950)	(6,585)
Corporate and unallocated expenses	(24,541)	(24,662)
Interest, net	(14,271)	(8,581)
Other, net	(9,758)	(1,912)
Loss before income taxes	(35,312)	(38,586)
Operating Segments | ACI On Demand
Segment Reporting Information [Line Items]
Revenue	192,950	109,848
Segment Adjusted EBITDA	23,121	(262)
Depreciation and amortization	(9,332)	(7,562)
Stock-based compensation expense	(2,026)	(1,951)
Operating Segments | ACI On Premise
Segment Reporting Information [Line Items]
Revenue	98,535	96,007
Segment Adjusted EBITDA	30,909	28,268
Depreciation and amortization	(3,106)	(3,030)
Stock-based compensation expense	(2,030)	(1,956)
Corporate and Other
Segment Reporting Information [Line Items]
Depreciation and amortization	(21,384)	(14,260)
Stock-based compensation expense	$ (2,894)	$ (2,678)

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Debt - Summary of Total Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total debt	$ 1,355,629	$ 1,373,155
Debt issuance costs	(20,694)	(21,905)
Less: current portion of term loans	34,177	34,148
Less: current portion of debt issuance costs	(4,773)	(4,802)
Total long-term debt	1,321,452	1,339,007
Term Loans
Debt Instrument [Line Items]
Total debt	746,323	756,060
Less: current portion of term loans	38,950	38,950
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	230,000	239,000
Senior Notes | 5.750% Senior Notes, due August 2026
Debt Instrument [Line Items]
Total debt	$ 400,000	$ 400,000

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Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Noncurrent assets:
Goodwill	$ 1,280,226	$ 1,280,525
SpeedPay
Current assets:
Cash and cash equivalents	135
Receivables, net of allowances	17,658
Settlement assets	239,604
Prepaid expenses	317
Other current assets	19,585
Total current assets acquired	277,299
Noncurrent assets:
Goodwill	366,508
Other noncurrent assets	3,745
Total assets acquired	980,552
Current liabilities:
Accounts payable	6,623
Settlement liabilities	212,892
Employee compensation	1,959
Other current liabilities	3,802
Total current liabilities acquired	225,276
Noncurrent liabilities:
Other noncurrent liabilities	1,219
Total liabilities acquired	226,495
Net assets acquired	754,057
SpeedPay | Software
Noncurrent assets:
Finite-lived intangible assets	$ 113,600
Weighted Average Useful Lives	7 years
SpeedPay | Customer relationships
Noncurrent assets:
Finite-lived intangible assets	$ 208,500
Weighted Average Useful Lives	15 years
SpeedPay | Trademarks
Noncurrent assets:
Finite-lived intangible assets	$ 10,900
Weighted Average Useful Lives	5 years

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Condensed Consolidated Financial Statements - Additional Information (Details) - USD ($) $ in Millions	Jul. 23, 2019	Mar. 31, 2020	Dec. 31, 2019
Condensed Financial Statements, Captions [Line Items]
Amount of off balance sheet settlement funds		$ 215.5	$ 274.0
India payment technology and services company
Condensed Financial Statements, Captions [Line Items]
Payments to acquire investment interest	$ 18.3
Percentage of voting interests acquired	30.00%
Equity method investment, amount recorded	$ 18.5
Level 2 | Senior Notes | 5.750% Senior Notes due 2026
Condensed Financial Statements, Captions [Line Items]
Stated interest rate (percentage)		5.75%
Fair value of long-term debt		$ 402.0	$ 432.0

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Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

Debt

As of March 31, 2020, the Company had $230.0 million, $746.3 million, and $400.0 million outstanding under its Revolving Credit Facility, Term Loan, and Senior Notes, respectively, with up to $270.0 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended.   

Credit Agreement

On April 5, 2019, the Company (and its wholly-owned subsidiaries, ACI Worldwide Corp. and ACI Payments, Inc. entered into the Second Amended and Restated Credit Agreement (the “Credit Agreement”) with the lenders, and Bank of America, N.A., as administrative agent for the lenders, to amend and restate the Company's existing agreement, as amended, dated February 24, 2017.

The Credit Agreement consists of (a) a five-year $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”), which includes sublimits for (1) the issuance of standby letters of credit and (2) swingline loans, (b) a five-year $279.0 million senior secured term loan facility (the "Initial Term Loan") and (c) a five-year $500.0 million Delayed Draw Term Loan (together with the Initial Term Loan, the "Term Loans", and together with the Initial Term Loan and the Revolving Credit Facility, the “Credit Facility”). The Credit Agreement also allows the Company to request optional incremental term loans and increases in the revolving commitment. The Credit Facility will mature on April 5, 2024.

At the Company’s option, borrowings under the Credit Facility bear interest at an annual rate equal to, either (a) a base rate determined by reference to the highest of (1) the annual interest rate publicly announced by the administrative agent as its Prime Rate, (2) the federal funds effective rate plus 1/2 of 1%, or (3) a London Interbank Offered Rate (“LIBOR”) rate determined by reference to the costs of funds for U.S. dollar deposits for a one-month interest period, adjusted for certain additional costs, plus 1% or (b) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowings, adjusted for certain additional costs, plus an applicable margin. Based on the calculation of the applicable consolidated total leverage ratio, the applicable margin for borrowings under the Credit Facility is between 0.25% to 1.25% with respect to base rate borrowings and between 1.25% and 2.25% with respect to LIBOR rate borrowings. Interest is due and payable monthly. The interest rate in effect for the Credit Facility as of March 31, 2020, was 3.17%.

The Company is also required to pay (a) a commitment fee related to the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears, (b) letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the applicable margin on LIBOR rate borrowings under the Revolving Credit Facility on an annual basis, payable quarterly in arrears, and (c) customary fronting fees for the issuance of letters of credit fees and agency fees.

The Company’s obligations under the Credit Facility and cash management arrangements entered into with lenders under the Credit Facility (or affiliates thereof) and the obligations of the subsidiary guarantors are secured by first-priority security interests in substantially all assets of the Company and any guarantor, including 100% of the capital stock of ACI Worldwide Corp. and each domestic subsidiary of the Company, each domestic subsidiary of any guarantor, and 65% of the voting capital stock of each foreign subsidiary of the Company that is directly owned by the Company or a guarantor, in each case subject to

certain exclusions set forth in the credit documentation governing the Credit Facility. The collateral agreement of the Credit Agreement, as amended, released the lien on certain assets of ACI Payments, Inc., our electronic bill presentment and payment affiliate, to allow ACI Payments, Inc. to comply with certain eligible securities and unencumbered asset requirements related to money transmitter or transfer license rules and regulations.

The Credit Agreement contains a number of covenants that, among other things and subject to certain exceptions, restrict the Company’s and its subsidiaries' ability to: create, incur, assume or suffer to exist any additional indebtedness; create, incur, assume or suffer to exist any liens; enter into agreements and other arrangements that include negative pledge clauses; pay dividends on capital stock or redeem, repurchase or retire capital stock or subordinated indebtedness; create restrictions on the payment of dividends or other distributions by subsidiaries; make investments, loans, advances and acquisitions; merge, consolidate or enter into any similar combination or sell assets, including equity interests of the subsidiaries; enter into sale and leaseback transactions; directly or indirectly engage in transactions with affiliates; alter in any material respect the character or conduct of the business; enter into amendments of or waivers under subordinated indebtedness, organizational documents, and certain other material agreements; and hold certain assets and incur certain liabilities.

Expected Discontinuation of LIBOR

In July 2017, the United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced it will no longer compel banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee has proposed the Secured Overnight Financing Rate ("SOFR") as its recommended alternative to LIBOR, and the first publication of SOFR rates was released in April 2018.

The Company is evaluating the potential impact of the transition from LIBOR as an interest rate benchmark to other potential alternative reference rates, including SOFR. The Company's Credit Agreement is currently indexed to LIBOR and the maturity date of the Credit Agreement extends beyond 2021. The Credit Agreement contemplates the discontinuation of LIBOR and provides options for the Company in such an event. The Company will continue to actively assess the related opportunities and risks involved in this transition.

Senior Notes

On August 21, 2018, the Company completed a $400.0 million offering of the 2026 Notes at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The 2026 Notes bear interest at an annual rate of 5.750%, payable semi-annually in arrears on February 15 and August 15 of each year. The 2026 Notes will mature on August 15, 2026.

Maturities on debt outstanding as of March 31, 2020, are as follows (in thousands):

Fiscal Year Ending December 31,
Remainder of 2020	$	29,213
2021	38,950
2022	50,431
2023	69,906
2024	787,823
Thereafter	400,000
Total	$	1,376,323

The Credit Agreement and 2026 Notes contain certain customary affirmative covenants and negative covenants that limit or restrict, subject to certain exceptions, the incurrence of liens, indebtedness of subsidiaries, mergers, advances, investments, acquisitions, transactions with affiliates, change in nature of business, and the sale of the assets. In addition, the Credit Agreement and 2026 Notes contain certain customary mandatory prepayment provisions. The Company is also required to maintain a consolidated leverage ratio at or below a specified amount and an interest coverage ratio at or above a specified amount. As specified in the Credit Agreement and 2026 Notes agreement, if certain events occur and continue, the Company may be required to repay all amounts outstanding under the Credit Facility and 2026 Notes. As of March 31, 2020, and at all times during the period, the Company was in compliance with its financial debt covenants.

Total debt is comprised of the following (in thousands):

	March 31, 2020		December 31, 2019
Term loans	$	746,323	$	756,060
Revolving credit facility	230,000		239,000
5.750% Senior notes, due August 2026	400,000		400,000
Debt issuance costs	(20,694)		(21,905)
Total debt	1,355,629		1,373,155
Less: current portion of term loans	38,950		38,950
Less: current portion of debt issuance costs	(4,773)		(4,802)
Total long-term debt	$	1,321,452	$	1,339,007

Overdraft Facility

In 2019, the Company and ACI Payments, Inc. entered in to a $140.0 million uncommitted overdraft facility with Bank of America, N.A. The overdraft facility bears interest at LIBOR plus 0.875% based on the Company’s average outstanding balance and the frequency in which overdrafts occur. The overdraft facility acts as a secured loan under the terms of the Credit Agreement to provide an additional funding mechanism for timing differences that can occur in the bill payment settlement process. Amounts outstanding on the overdraft facility are included in other current liabilities in the condensed consolidated balance sheet. As of March 31, 2020, there was no amount outstanding on the overdraft facility. As of December 31, 2019, there was $1.5 million outstanding on the overdraft facility.

Other

As of March 31, 2020, and December 31, 2019, $13.8 million was outstanding related to certain multi-year license agreements for internal-use software, of which $6.0 million and $7.8 million was included in other current liabilities and other noncurrent liabilities, respectively, in the condensed consolidated balance sheets. Upon execution, these arrangements have been treated as a non-cash investing and financing activity for purposes of the condensed consolidated statements of cash flows.

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Loss Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Loss Per Share

Loss Per Share Basic loss per share is computed in accordance with ASC 260, Earnings Per Share, based on weighted average outstanding common shares. Diluted loss per share is computed based on basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, RSUs, and certain contingently issuable shares for which performance targets have been achieved.

The following table reconciles the weighted average share amounts used to compute both basic and diluted loss per share (in thousands):

	Three Months Ended March 31,
	2020	2019
Weighted average shares outstanding:
Basic weighted average shares outstanding	116,006	116,090
Add: Dilutive effect of stock options and RSUs	—	—
Diluted weighted average shares outstanding	116,006	116,090

The diluted loss per share computation excludes 6.7 million and 7.4 million options to purchase shares and RSUs during the three months ended March 31, 2020 and 2019, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of March 31, 2020, and December 31, 2019, was 115,882,242 and 115,986,352, respectively.

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Software and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Other intangible assets amortization expense	$ 9.3	$ 5.5
Software for resale
Finite-Lived Intangible Assets [Line Items]
Software, amortization expense	1.9	3.0
Software for internal use
Finite-Lived Intangible Assets [Line Items]
Software, amortization expense	$ 16.7	$ 10.4
Minimum | Software for resale
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life (in years)	5 years
Minimum | Software for internal use
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life (in years)	1 year
Maximum | Software for resale
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life (in years)	10 years
Maximum | Software for internal use
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life (in years)	10 years

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Other, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Other Income and Expenses [Abstract]
Foreign currency transaction gains (losses)	$ (9.8)	$ (1.9)

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Receivables, allowances	$ 3,465	$ 5,149
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized (in shares)	280,000,000	280,000,000
Common stock, shares issued (in shares)	140,525,055	140,525,055
Treasury stock, shares (in shares)	24,642,813	24,538,703

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares	3 Months Ended		184 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]
Repurchase of common stock (in shares)	1,000,000	23,802	46,357,495

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Software and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Total	$ 344,156	$ 356,969
Software Amortization
Finite-Lived Intangible Assets [Line Items]
Remainder of 2020	54,143
2021	58,348
2022	40,407
2023	25,977
2024	20,083
Thereafter	26,213
Total	225,171
Other Intangible Assets Amortization
Finite-Lived Intangible Assets [Line Items]
Remainder of 2020	27,493
2021	36,275
2022	36,143
2023	35,871
2024	31,456
Thereafter	176,918
Total	$ 344,156

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Stock-Based Compensation Plans - Summary of Grant Date Fair Value Weighted Average Assumptions - TSRs (Details) - Total Shareholder Return Awards (TSRs) - Monte Carlo Simulation Valuation Model	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	2 years 9 months 18 days	2 years 9 months 18 days
Risk-free interest rate	0.50%	2.50%
Expected volatility	31.40%	29.30%
Expected dividend yield	0.00%	0.00%

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Stock-Based Compensation Plans - Summary of Stock Option Activity (Details)	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Number of Shares
Outstanding, beginning balance (in shares) | shares	4,006,816
Exercised (in shares) | shares	(23,223)
Forfeited (in shares) | shares	(57,744)
Expired (in shares) | shares	(6,090)
Outstanding, ending balance (in shares) | shares	3,919,759
Exercisable, ending balance (in shares) | shares	3,772,523
Weighted Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 18.18
Exercised (in dollars per share) | $ / shares	17.21
Forfeited (in dollars per share) | $ / shares	19.08
Expired (in dollars per share) | $ / shares	18.44
Ending balance (in dollars per share) | $ / shares	18.17
Weighted average exercise price, exercisable, ending balance (in dollars per share) | $ / shares	$ 18.10
Weighted Average Remaining Contractual Term (Years)
Weighted average remaining contractual term, outstanding, end of period (in years)	3 years 1 month 17 days
Weighted average remaining contractual term, exercisable, end of period (in years)	3 years 2 months 4 days
Aggregate Intrinsic Value of In-the-Money Options
Aggregate intrinsic value of in-the-money options, outstanding, end of period | $	$ 23,427,581
Aggregate intrinsic value of in-the-money options, exercisable, end of period | $	$ 22,816,683

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Condensed Consolidated Financial Statements (Policies)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Settlement Assets and Liabilities

Settlement Assets and Liabilities

Individuals and businesses settle their obligations to the Company’s various Biller clients using credit or debit cards or via automated clearing house (“ACH”) payments. The Company creates a receivable for the amount due from the credit or debit card processor and an offsetting payable to the client. Upon confirmation that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may (1) receive the funds into bank accounts controlled by and in the Company’s name that are not disbursed to its clients by the end of the day, resulting in a settlement deposit on the Company’s books and (2) disburse funds to its clients in advance of receiving funds from the credit or debit card processor, resulting in a net settlement receivable position.

Off Balance Sheet Settlement Accounts

Off Balance Sheet Settlement AccountsThe Company also enters into agreements with certain Biller clients to process payment funds on their behalf. When an ACH or automated teller machine network payment transaction is processed, a transaction is initiated to withdraw funds from the designated source account and deposit them into a settlement account, which is a trust account maintained for the benefit of the Company’s clients. A simultaneous transaction is initiated to transfer funds from the settlement account to the intended destination account. These “back to back” transactions are designed to settle at the same time, usually overnight, such that the Company receives the funds from the source at the same time as it sends the funds to their destination. However, due to the transactions being with various financial institutions there may be timing differences that result in float balances. These funds are maintained in accounts for the benefit of the client, which is separate from the Company’s corporate assets. As the Company does not take ownership of the funds, these settlement accounts are not included in the Company’s balance sheet. The Company is entitled to interest earned on the fund balances. The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company.

Fair Value

Fair ValueThe fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities.

Goodwill

Goodwill

In accordance with the Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its reportable segments, ACI On Demand and ACI On Premise, as the reporting units.

Changes in the carrying amount of goodwill attributable to each reporting unit during the three months ended March 31, 2020, were as follows (in thousands):

	ACI On Demand		ACI On Premise		Total
Gross Balance, prior to December 31, 2019	$	554,617	$	773,340	$	1,327,957
Total impairment prior to December 31, 2019	—		(47,432)		(47,432)
Balance, December 31, 2019	554,617		725,908		1,280,525
Goodwill from acquisitions (1)	(299)		—		(299)
Balance, March 31, 2020	$	554,318	$	725,908	$	1,280,226

(1)Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition.

Recoverability of goodwill is measured using a discounted cash flow valuation model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon the October 1, 2019, annual impairment test. Given the adverse economic and market conditions caused by the COVID-19 pandemic, the Company considered a variety of qualitative factors to determine if an additional quantitative impairment test was required subsequent to our annual impairment test. Based on a variety of factors, including the excess of the fair value over the carrying amount in the most recent impairment test, we determined that an additional quantitative impairment test was not required.

Recent Accounting Standards

New Accounting Standards Recently Adopted

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, codified as ASC 326. Subsequent amendments to the guidance were issued as follows: ASU 2018-19 in November 2018; ASU 2019-04 in April 2019; ASU 2019-05 in May 2019; ASU's 2019-10 and 2019-11 in November 2019; and ASU 2020-02 in February 2020. This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in ASU 2016-13 replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company is required to use a forward-looking expected credit loss model for billed and accrued receivables. The Company adopted ASU 2016-13 as of January 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the condensed consolidated financial statements.

In February 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, which clarifies or improves various financial instruments topics in the accounting standards codification to increase stakeholder awareness. ASU 2020-03 was effective upon issuance and did not have a material impact on the condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate (“LIBOR”). This guidance includes optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities as of March 12, 2020, through December 31, 2022, when the reference rate replacement activity is expected to be completed. The adoption of ASU 2020-04 did not have an impact on the Company's condensed consolidated financial statements.

Recently Issued Accounting Standards Not Yet Effective

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions within ASC 740, as well as clarify and simplify other aspects of the accounting for income taxes to promote consistency among reporting entities. ASU 2019-12 is effective for annual and interim periods beginning after December 15, 2020. The Company is currently assessing the impact the adoption of ASU 2019-12 will have on its condensed consolidated financial statements.

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Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Summary of Maturities on Debt Outstanding

Maturities on debt outstanding as of March 31, 2020, are as follows (in thousands):

Fiscal Year Ending December 31,
Remainder of 2020	$	29,213
2021	38,950
2022	50,431
2023	69,906
2024	787,823
Thereafter	400,000
Total	$	1,376,323

Summary of Total Debt

Total debt is comprised of the following (in thousands):

	March 31, 2020		December 31, 2019
Term loans	$	746,323	$	756,060
Revolving credit facility	230,000		239,000
5.750% Senior notes, due August 2026	400,000		400,000
Debt issuance costs	(20,694)		(21,905)
Total debt	1,355,629		1,373,155
Less: current portion of term loans	38,950		38,950
Less: current portion of debt issuance costs	(4,773)		(4,802)
Total long-term debt	$	1,321,452	$	1,339,007

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of Selected Financial Data by Reportable Segment

The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):

	Three Months Ended March 31,
	2020		2019
Revenue
ACI On Demand	$	192,950	$	109,848
ACI On Premise	98,535		96,007
Total revenue	$	291,485	$	205,855
Segment Adjusted EBITDA
ACI On Demand	$	23,121	$	(262)
ACI On Premise	30,909		28,268
Depreciation and amortization	(33,822)		(24,852)
Stock-based compensation expense	(6,950)		(6,585)
Corporate and unallocated expenses	(24,541)		(24,662)
Interest, net	(14,271)		(8,581)
Other, net	(9,758)		(1,912)
Loss before income taxes	$	(35,312)	$	(38,586)
Depreciation and amortization
ACI On Demand	$	9,332	$	7,562
ACI On Premise	3,106		3,030
Corporate	21,384		14,260
Total depreciation and amortization	$	33,822	$	24,852
Stock-based compensation expense
ACI On Demand	$	2,026	$	1,951
ACI On Premise	2,030		1,956
Corporate	2,894		2,678
Total stock-based compensation expense	$	6,950	$	6,585

Schedule of Revenue by Primary Geographic Markets and Primary Solution Categories

The following is revenue by primary geographic market and primary solution category for the Company’s reportable segments for the periods indicated (in thousands):

	Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
	ACI On Demand		ACI On Premise		Total		ACI On Demand		ACI On Premise		Total
Primary Geographic Markets
Americas - United States	$	175,654	$	29,139	$	204,793	$	93,036	$	26,422	$	119,458
Americas - Other	3,233		17,941		21,174		2,743		10,945		13,688
EMEA	10,918		28,955		39,873		12,068		42,451		54,519
Asia Pacific	3,145		22,500		25,645		2,001		16,189		18,190
Total	$	192,950	$	98,535	$	291,485	$	109,848	$	96,007	$	205,855
Primary Solution Categories
Bill Payments	$	153,686	$	—	$	153,686	$	68,967	$	—	$	68,967
Digital Channels	8,393		7,563		15,956		9,788		8,725		18,513
Merchant Payments	19,014		4,106		23,120		19,339		5,022		24,361
Payments Intelligence	9,013		4,113		13,126		8,981		7,037		16,018
Real-Time Payments	997		17,299		18,296		618		14,715		15,333
Retail Payments	1,847		65,454		67,301		2,155		60,508		62,663
Total	$	192,950	$	98,535	$	291,485	$	109,848	$	96,007	$	205,855

Schedule of Long-lived Assets by Geographic Location

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):

	March 31, 2020		December 31, 2019
Long-lived Assets
United States	$	1,507,574	$	1,526,046
Other	732,084		759,501
Total	$	2,239,658	$	2,285,547