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Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information In January 2021, the Company made a change in organizational structure to align with its strategic direction. As a result of this change, the Company reassessed its segment reporting structure due to changes in how the Company's chief operating decision maker ("CODM") assesses the Company's performance and allocates resources. Beginning in the first quarter of 2021, the Company reports financial performance based on its new operating segments, Banks, Merchants, and Billers, and analyzes Segment Adjusted EBITDA as a measure of segment profitability.
The Company’s Chief Executive Officer is also the CODM. The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from Corporate operations. No operating segments have been aggregated to form the reportable segments.

Banks. ACI provides payment solutions to large and mid-size banks globally for retail banking, real time, digital, and other payment services. These solutions transform banks’ complex payment environments to speed time to market, reduce costs, and deliver a consistent experience to customers across channels while enabling them to prevent and rapidly react to fraudulent activity. In addition, they enable banks to meet the requirements of different real-time payments schemes and to quickly create differentiated products to meet consumer, business, and merchant demands.

Merchants. ACI’s support of merchants globally includes Tier 1 and Tier 2 merchants, online-only merchants and the payment service providers, independent selling organizations, value-added resellers, and acquirers who service them. These customers operate in a variety of verticals, including general merchandise, grocery, hospitality, dining, transportation, and others. The Company's solutions provide merchants with a secure, omni-channel payments platform that gives them independence from third-party payment providers. They also offer secure solutions to online-only merchants that provide consumers with a convenient and seamless way to shop.

Billers. Within the billers segment, ACI provides electronic bill presentment and payment (“EBPP”) services to companies operating in the consumer finance, insurance, healthcare, higher education, utility, government, and mortgage categories. The solutions enable these customers to support a wide range of payment options and provide a convenient consumer payments experience that drives consumer loyalty and increases revenue.

Revenue is attributed to the reportable segments based upon the customer. Expenses are attributed to the reportable segments in one of three methods: (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual projects, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities.

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

Corporate and unallocated expenses includes global facilities and information technology costs and long-term product roadmap expenses in addition to corporate overhead costs that are not allocated to reportable segments. The overhead costs relate to human resources, finance, legal, accounting, and merger and acquisition activity. These costs along with depreciation and amortization and stock-based compensation are not considered when management evaluates segment performance.
The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue
Banks$131,744 $125,658 $341,712 $356,865 
Merchants38,989 40,761 115,083 109,870 
Billers146,181 149,464 446,974 440,543 
Total revenue$316,914 $315,883 $903,769 $907,278 
Segment Adjusted EBITDA
Banks$67,602 $71,666 $159,262 $182,487 
Merchants14,221 18,954 41,987 38,210 
Billers31,969 33,875 100,593 98,414 
Depreciation and amortization(33,380)(35,490)(100,366)(105,004)
Stock-based compensation expense(6,367)(8,061)(20,790)(22,943)
Corporate and unallocated expenses(46,066)(49,762)(133,593)(142,127)
Interest, net(8,374)(9,998)(25,390)(35,457)
Other, net(1,088)1,356 (1,036)(6,361)
Income before income taxes$18,517 $22,540 $20,667 $7,219 

Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information.
The following is revenue by primary solution category for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended September 30, 2021
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $146,181 $146,181 
Digital Business Banking16,527 — — 16,527 
Merchant Payments— 38,989 — 38,989 
Fraud Management6,882 — — 6,882 
Real-Time Payments27,638 — — 27,638 
Issuing and Acquiring80,697 — — 80,697 
Total$131,744 $38,989 $146,181 $316,914 
Three Months Ended September 30, 2020
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $149,464 $149,464 
Digital Business Banking14,443 — — 14,443 
Merchant Payments— 40,761 — 40,761 
Fraud Management11,513 — — 11,513 
Real-Time Payments12,998 — — 12,998 
Issuing and Acquiring86,704 — — 86,704 
Total$125,658 $40,761 $149,464 $315,883 
Nine Months Ended September 30, 2021
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $446,974 $446,974 
Digital Business Banking47,319 — — 47,319 
Merchant Payments— 115,083 — 115,083 
Fraud Management23,563 — — 23,563 
Real-Time Payments58,534 — — 58,534 
Issuing and Acquiring212,296 — — 212,296 
Total$341,712 $115,083 $446,974 $903,769 
Nine Months Ended September 30, 2020
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $440,543 $440,543 
Digital Business Banking45,327 — — 45,327 
Merchant Payments— 109,870 — 109,870 
Fraud Management25,183 — — 25,183 
Real-Time Payments57,160 — — 57,160 
Issuing and Acquiring229,195 — — 229,195 
Total$356,865 $109,870 $440,543 $907,278 
The following is revenue by the Company's reportable segments for the periods indicated (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Banks
Software as a service and platform as a service$14,794 $13,881 $43,555 $41,036 
License51,062 48,997 102,993 123,735 
Maintenance48,829 48,331 146,091 145,973 
Services17,059 14,449 49,073 46,121 
Total$131,744 $125,658 $341,712 $356,865 
Merchants
Software as a service and platform as a service$30,561 $27,099 $93,336 $82,648 
License3,392 7,776 7,296 11,209 
Maintenance4,610 4,643 12,705 12,864 
Services426 1,243 1,746 3,149 
Total$38,989 $40,761 $115,083 $109,870 
Billers
Software as a service and platform as a service$146,101 $149,389 $446,639 $440,208 
License— — 94 94 
Maintenance80 75 241 241 
Services— — — — 
Total$146,181 $149,464 $446,974 $440,543 

The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue
United States$199,195 $199,209 $587,002 $611,383 
Other117,719 116,674 316,767 295,895 
Total$316,914 $315,883 $903,769 $907,278 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
September 30, 2021December 31, 2020
Long-lived Assets
United States$1,383,348 $1,423,862 
Other724,832 750,651 
Total$2,108,180 $2,174,513 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and nine months ended September 30, 2021 and 2020. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three and nine months ended September 30, 2021 and 2020.