10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2014

or

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

For the transition period from

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, FL 34105	(239) 403-4600
(Address of principal executive offices, including zip code)	(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  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes  x    No  ¨

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

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

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

As of April 28, 2014, there were 37,925,346 shares of the registrant’s common stock outstanding.

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013		3
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2014 and 2013		4
	Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2014 and 2013		5
	Condensed Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2014		6
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013		7
	Notes to Condensed Consolidated Financial Statements		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		36
Item 4.	Controls and Procedures		36
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		37
Item 1A.	Risk Factors		37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		37
Item 3.	Defaults Upon Senior Securities		38
Item 4.	Mine Safety Disclosures		38
Item 5.	Other Information		38
Item 6.	Exhibits		39
Signature			40
Exhibit Index			41

2

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

	March 31,			December 31,
	2014			2013
ASSETS
Current assets
Cash and cash equivalents	$	58,936		$	95,059
Receivables, net of allowances of $4,149 and $4,459, respectively		203,600			203,575
Deferred income taxes, net		71,051			47,593
Recoverable income taxes		2,927			2,258
Prepaid expenses		24,458			22,549
Other current assets		50,956			65,328
Total current assets		411,928			436,362
Property and equipment, net		55,988			57,347
Software, net		193,130			191,468
Goodwill		665,406			669,217
Intangible assets, net		232,053			237,693
Deferred income taxes, net		39,541			48,852
Other noncurrent assets		41,956			40,912
TOTAL ASSETS	$	1,640,002		$	1,681,851
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	41,882		$	43,658
Employee compensation		32,294			35,623
Current portion of long-term debt		53,227			47,313
Deferred revenue		149,972			122,045
Income taxes payable		4,121			1,192
Deferred income taxes, net		940			753
Other current liabilities		70,818			95,016
Total current liabilities		353,254			345,600
Noncurrent liabilities
Deferred revenue		45,259			45,656
Long-term debt		725,285			708,070
Deferred income taxes, net		10,208			11,000
Other noncurrent liabilities		27,396			27,831
Total liabilities		1,161,402			1,138,157
Commitments and contingencies (Note 12)
Stockholders’ equity
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2014 and December 31, 2013		—			—
Common stock; $0.005 par value; 140,000,000 shares authorized; 46,606,796 shares issued at March 31, 2014 and December 31, 2013		232			232
Additional paid-in capital		544,720			543,163
Retained earnings		258,080			263,855
Treasury stock, at cost, 8,680,947 and 7,751,807 shares at March 31, 2014 and December 31, 2013, respectively		(304,018	)		(240,241	)
Accumulated other comprehensive loss		(20,414	)		(23,315	)
Total stockholders’ equity		478,600			543,694
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,640,002		$	1,681,851

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

3

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share amounts)

	For the Three Months Ended
	March 31,
	2014			2013
Revenues
License	$	35,702		$	41,356
Maintenance		62,499			58,634
Services		22,588			23,929
Hosting		100,684			38,078
Total revenues		221,473			161,997
Operating expenses
Cost of license (1)		5,736			5,918
Cost of maintenance, services and hosting (1)		107,887			61,871
Research and development		37,456			37,149
Selling and marketing		27,909			25,074
General and administrative		25,116			25,037
Depreciation and amortization		17,078			10,957
Total operating expenses		221,182			166,006
Operating income (loss)		291			(4,009	)
Other income (expense)
Interest expense		(9,175	)		(3,897	)
Interest income		199			131
Other, net		(1,057	)		3,165
Total other income (expense)		(10,033	)		(601	)
Loss before income taxes		(9,742	)		(4,610	)
Income tax benefit		(3,967	)		(2,444	)
Net loss	$	(5,775	)	$	(2,166	)
Loss per common share
Basic	$	(0.15	)	$	(0.05	)
Diluted	$	(0.15	)	$	(0.05	)
Weighted average common shares outstanding
Basic		38,411			39,465
Diluted		38,411			39,465

(1) The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation.

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

4

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited and in thousands)

	Three Months Ended
	March 31,
	2014			2013
Net loss	$	(5,775	)	$	(2,166	)
Other comprehensive income (loss):
Foreign currency translation adjustments		2,901			(10,456	)
Total other comprehensive income (loss)		2,901			(10,456	)
Comprehensive loss	$	(2,874	)	$	(12,622	)

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

5

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(unaudited and in thousands)

												Accumulated
			Additional									Other
	Common		Paid-in			Retained			Treasury			Comprehensive
	Stock		Capital			Earnings			Stock			Loss			Total
Balance as of December 31, 2013	$	232	$	543,163		$	263,855		$	(240,241	)	$	(23,315	)	$	543,694
Net loss		—		—			(5,775	)		—			—			(5,775	)
Other comprehensive income		—		—			—			—			2,901			2,901
Stock-based compensation		—		4,772			—			—			—			4,772
Shares issued and forfeited, net, under stock plans including income tax benefits, 339,887 shares		—		(3,215	)		—			10,726			—			7,511
Repurchase of common stock, 1,192,809 shares		—		—			—			(70,000	)		—			(70,000	)
Repurchase of restricted stock and performance shares for tax withholdings, 76,218 shares		—		—			—			(4,503	)		—			(4,503	)
Balance as of March 31, 2014	$	232	$	544,720		$	258,080		$	(304,018	)	$	(20,414	)	$	478,600

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

6

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

	For the Three Months Ended
	March 31,
	2014			2013
Cash flows from operating activities:
Net loss	$	(5,775	)	$	(2,166	)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation		5,324			3,764
Amortization		15,282			10,422
Amortization of deferred debt issuance costs		1,348			960
Deferred income taxes		(11,277	)		(6,096	)
Stock-based compensation expense		4,772			3,950
Excess tax benefit of stock options exercised		(4,070	)		(1,308	)
Other		(63	)		559
Changes in operating assets and liabilities, net of impact of acquisitions:
Receivables		(3,123	)		30,671
Accounts payable		(1,480	)		(9,215	)
Accrued employee compensation		(3,580	)		(12,281	)
Current income taxes		6,166			4,278
Deferred revenue		26,896			15,938
Other current and noncurrent assets and liabilities		(15,163	)		(4,549	)
Net cash flows from operating activities		15,257			34,927
Cash flows from investing activities:
Purchases of property and equipment		(4,228	)		(6,241	)
Purchases of software and distribution rights		(3,580	)		(2,764	)
Acquisition of businesses, net of cash acquired		—			(264,202	)
Net cash flows from investing activities		(7,808	)		(273,207	)
Cash flows from financing activities:
Proceeds from issuance of common stock		652			475
Proceeds from exercises of stock options		2,887			3,864
Excess tax benefit of stock options exercised		4,070			1,308
Repurchases of common stock		(70,000	)		—
Repurchase of restricted stock and performance shares for tax withholdings		(4,503	)		(5,520	)
Proceeds from term portion of credit agreement		—			300,000
Proceeds from revolving credit facility		40,000			—
Repayment of revolving credit facility		(8,000	)		—
Repayment of term portion of credit agreement		(8,871	)		(3,750	)
Payments on other debt and capital leases		(382	)		(8,338	)
Payment for debt issuance costs		(163	)		(9,272	)
Net cash flows from financing activities		(44,310	)		278,767
Effect of exchange rate fluctuations on cash		738			(4,332	)
Net increase (decrease) in cash and cash equivalents		(36,123	)		36,155
Cash and cash equivalents, beginning of period		95,059			76,329
Cash and cash equivalents, end of period	$	58,936		$	112,484
Supplemental cash flow information
Income taxes paid, net	$	5,114		$	1,398
Interest paid	$	12,394		$	2,847

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

7

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, 2014, and for the three months ended March 31, 2014 and 2013, 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, 2013 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, 2013, filed on February 28, 2014. Results for the three months ended March 31, 2014 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 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.

Cash and cash equivalents

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).

Receivables, net

Receivables represent amounts billed and amounts earned that are to be billed in the near future. Included in accrued receivables are services and software hosting revenues earned in the current period but billed in the following period as well as license revenues that are determined to be fixed and determinable but billed in future periods.

	March 31,			December 31,
(in thousands)	2014			2013
Billed Receivables	$	177,860		$	173,100
Allowance for doubtful accounts		(4,149	)		(4,459	)
Billed, net		173,711			168,641
Accrued Receivables		29,889			34,934
Receivables, net	$	203,600		$	203,575

8

Other Current Assets and Other Current Liabilities

	March 31,		December 31,
(in thousands)	2014		2013
Settlement deposits	$	19,933	$	27,770
Settlement receivables		14,104		20,119
Current debt issuance costs		5,181		5,276
Other		11,738		12,163
Total other current assets	$	50,956	$	65,328
	March 31,		December 31,
(in thousands)	2014		2013
Settlement payables	$	30,679	$	42,841
Accrued interest		2,447		7,074
Vendor financed licenses		6,611		6,410
Royalties payable		5,128		5,627
Other		25,953		33,064
Total other current liabilities	$	70,818	$	95,016

Individuals and businesses settle their obligations to the Company’s various clients, primarily utility and other public sector clients, using credit or debit cards or via ACH payments. The Company creates a receivable for the amount due from the credit or debit card company and an offsetting payable to the client. Once confirmation is received that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may 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.

Off Balance Sheet Accounts

The Company also enters into agreements with certain clients to process payment funds on their behalf. When an automated clearing house 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 funds are received from the source at the same time as the funds are sent 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 are separate from the Company’s corporate assets. As the Company does not take ownership of the funds, those 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 off balance sheet settlement funds as of March 31, 2014 and December 31, 2013 were $214.8 million and $284.0 million, respectively.

Accumulated Other Comprehensive Loss

The $20.4 million and $23.3 million accumulated other comprehensive loss included in the Company’s consolidated balance sheets as of March 31, 2014 and December 31, 2013, respectively, represents the accumulated foreign currency translation adjustment. Since the undistributed earnings of the Company’s foreign subsidiaries are considered to be permanently reinvested, the components of accumulated other comprehensive loss have not been tax effected.

9

Goodwill

Changes in the carrying amount of goodwill attributable to each reporting unit with goodwill balances during the three months ended March 31, 2014 were as follows:

(in thousands)	Americas			EMEA		Asia/Pacific		Total
Gross Balance prior to December 31, 2013	$	488,698		$	160,158	$	67,793	$	716,649
Total impairment prior to December 31, 2013		(47,432	)		—		—		(47,432	)
Balance, December 31, 2013		441,266			160,158		67,793		669,217
Goodwill from acquisitions (1)		(5,026	)		—		—		(5,026	)
Foreign currency translation adjustments		(153	)		163		1,205		1,215
Balance, March 31, 2014	$	436,087		$	160,321	$	68,998	$	665,406

(1) Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisitions of Official Payments Holdings, Inc. (“OPAY”), Online Resources Corporation (“ORCC”), and Profesionales en Transacciones Electronicas S.A. (“PTESA”) as discussed in Note 2. The purchase price allocation for OPAY is preliminary as of March 31, 2014 and accordingly is subject to future changes during the maximum one-year allocation period.

In accordance with ASC 350, Intangibles – Goodwill and Other, we assess goodwill for impairment annually during the fourth quarter of our 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. We evaluate goodwill at the reporting unit level and have identified our reportable segments, Americas, EMEA, and Asia/Pacific, as our reporting units. Recoverability of goodwill is measured using a discounted cash flow 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 our October 1, 2013 annual impairment test and there have been no indications of impairment in the subsequent periods.

Revenue

Vendor Specific Objective Evidence (“VSOE”)

ASC 985-605 requires the seller of software that includes post contract customer support (maintenance or “PCS”) to establish VSOE of fair value of the undelivered element of the contract in order to account separately for the PCS revenue. The Company has traditionally established VSOE of the fair value of PCS by reference to stated renewals, expressed in dollar terms, or separate sales with consistent pricing of PCS expressed in percentage terms. In determining whether a stated renewal is not substantive, the Company considers factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal rate is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is consistent, the Company considers the population of separate sales that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period.

Effective July 2013, the Company establishes VSOE of fair value of PCS by reference to stated renewals for all identified marked segments. The Company continues to consider factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is significantly below the Company’s normal pricing practice, the Company considers the population of stated renewal rates that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period. The change in estimation methodology does not have a material effect on our financial statements.

Certain of the Company’s software license arrangements include PCS terms that fail to achieve VSOE of fair value due to non-substantive renewal periods or non-substantive PCS renewal amounts. For these arrangements, VSOE of fair value of PCS does not exist and revenues for the software license, PCS and services, if applicable, are considered to be one accounting unit and are therefore recognized ratably over the longer of the contractual service term or PCS term once the delivery of both services has commenced. The Company typically classifies revenues associated with these arrangements in accordance with the contractually specified amounts, which approximate fair value assigned to the various elements, including software license fees, maintenance fees and services, if applicable.

10

This allocation methodology has been applied to the following amounts included in revenues in the condensed consolidated statements of operations from arrangements for which VSOE of fair value does not exist for each undelivered element:

	Three Months Ended
	March 31,
(in thousands)	2014		2013
Software license fees	$	6,856	$	5,801
Maintenance fees		2,216		2,321
Services		8		3
Total	$	9,080	$	8,125

2. Acquisitions

Fiscal 2013 Acquisitions

In 2013, the Company completed three acquisitions at an aggregate cost of $378.1 million.

Official Payments Holdings, Inc.

On November 5, 2013, the Company completed the tender offer for OPAY and all its subsidiaries. The Company paid cash of $8.35 per share of common stock or approximately $139.8 million using funds on hand and $40 million drawn on the Revolving Credit Facility, which was repaid prior to December 31, 2013. The Company has included the financial results of OPAY in the consolidated financial statements from the date of acquisition. As a leading provider of electronic bill payment solutions in the U.S., serving federal, state and local governments, municipal utilities, higher education institutions and charitable giving organizations, OPAY’s team, user base and vertical expertise made it an ideal match for the Company. The acquisition further extended the Company’s presence in the Electronic Bill Presentment and Payment (“EBPP”) space, expanding its portfolio across key sectors including federal, state and local governments, municipal utilities, higher education institutions and charitable giving organizations.

Each outstanding option to acquire OPAY common stock was canceled and terminated at the effective time of the acquisition and converted into the right to receive cash with respect to the number of shares of OPAY common stock that would have been issuable upon a net exercise of such option, assuming the market value of the OPAY common stock at the time of such exercise was equal to the $8.35 per common stock tender offer. Any outstanding option with a per share exercise price that was greater than or equal to such amount was cancelled and terminated and no payment was made with respect thereto. In addition, each OPAY restricted stock unit award outstanding immediately prior to the effective time of the tender offer was fully vested and cancelled, and each holder of such awards became entitled to receive the $8.35 per common stock tender offer for each share of OPAY common stock into which the vested portion of the awards would otherwise have been converted.

The consideration paid by the Company to complete the acquisition of OPAY has been allocated preliminarily to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The allocation of purchase price is based upon certain external valuations and other analyses that have not been completed as of the date of this filing, including, but not limited to, property, intangible assets, and certain tax matters. Accordingly, the purchase price allocations are preliminary and are subject to future adjustments during the maximum one-year allocation period.

The Company made adjustments to the preliminary purchase price allocation as additional information became available for acquired intangibles and intellectual property, certain accruals and tax account balances. 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 not 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.

Online Resources Corporation

On March 11, 2013, the Company completed the tender offer for Online Resources Corporation (“ORCC”) and all its subsidiaries. The Company paid cash of $3.85 per share of common stock for approximately $132.9 million and $127.2 million for the Series A-1 Convertible Preferred Stock for a total purchase price of $260.1 million (the “Merger”). The Company has included the financial results of ORCC in the consolidated financial statements from the date of acquisition. As a leading provider of online banking and full service bill pay solutions, the acquisition of ORCC added EBPP solutions as a strategic part of ACI’s Universal Payments portfolio. It also strengthened the Company’s online banking capabilities with complementary technology, and expanded the Company’s leadership in serving community banking and credit union customers.

11

Each outstanding option to acquire ORCC common stock was canceled and terminated at the effective time of the Merger and converted into the right to receive an equivalent number of options to purchase ACI common stock. Each ORCC restricted stock unit was vested immediately prior to the effective time of the Merger and received $3.85 per share.

The Company used funds from the $300.0 million of senior bank financing arranged through Wells Fargo Securities, LLC to fund the acquisition. See Note 3, Debt, for terms of the financing arrangement.

The consideration paid by the Company to complete the Merger has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The allocation of purchase price is based upon certain external valuations and other analyses.

The Company made adjustments to finalize the purchase price allocation as additional information became available for certain accruals and deferred income taxes. 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 not 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.

Profesionales en Transacciones Electronicas S.A.

During the first quarter of 2013, the Company acquired 100% of Profesionales en Transacciones Electronicas S.A. – Venezuela (“PTESA-V”), 100% of Profesionales en Transacciones Electronicas S.A. – Ecuador (“PTESA-E”), and the ACI related assets of Profesionales en Transacciones Electronicas S.A. – Colombia (“PTESA-C”), collectively “PTESA”. The common stock of PTESA-E and PTESA-V were acquired for $2.8 million and the assets of PTESA-C were acquired for $11.4 million, for a total aggregate purchase price of $14.2 million paid in cash. The Company has included the financial results of PTESA in our consolidated financial statements from the date of acquisition. PTESA had been a long-term partner of the Company, serving customers in South America in sales, service and support functions. The addition of the PTESA team to the Company reinforces its commitment to serve the Latin American market.

Factors contributing to the purchase price that resulted in the goodwill (approximately $1.5 million of which is not tax deductible) include the acquisition of management, sales, and services personnel with the skills to market and support products of the Company in the Latin America region. Pro forma results are not presented because they are not material.

12

In connection with the acquisitions, the Company recorded the following amounts based upon its purchase price allocations as of March 31, 2014. The purchase price allocation for OPAY is considered preliminary and is subject to completion of valuations and other analyses

			Official		Online
(in thousands, except weighted	Weighted-Average		Payments		Resources
average useful lives)	Useful Lives		Holdings, Inc.		Corporation		PTESA
Current assets:
Cash and cash equivalents			$	25,871	$	9,930	$	193
Billed and accrued receivables, net				2,858		19,394		327
Deferred income taxes, net				2,443		11,726		—
Other current assets				27,766		17,643		95
Total current assets acquired				58,938		58,693		615
Noncurrent assets:
Property and equipment				8,141		7,335		6
Goodwill				38,715		122,247		7,113
Software		10 years		26,013		62,215		7,732
Customer relationships		14 -15 years		49,900		68,750		—
Trademarks		3 - 5 years		3,200		3,050		—
Other noncurrent assets				5,673		459		7
Total assets acquired				190,580		322,749		15,473
Current liabilities:
Accounts payable				8,869		15,394		341
Accrued employee compensation				15,006		10,549		261
Note payable				—		7,500		—
Other current liabilities				26,095		7,559		—
Total current liabilities acquired				49,970		41,002		602
Noncurrent liabilities:
Deferred income taxes, net				—		18,290		225
Other noncurrent liabilities acquired
				828		3,339		439
Total liabilities acquired				50,798		62,631		1,266
Net assets acquired			$	139,782	$	260,118	$	14,207

OPAY and ORCC contributed approximately $71.7 million in revenue and $8.7 million in operating income to the period ended March 31, 2014, which includes severance expense related to the integration activities. ORCC contributed approximately $8.8 million in revenue and $1.1 million in operating losses to the period ended March 31, 2013, which included severance expense related to the integration activities.

Unaudited Pro Forma Financial Information

The pro forma financial information in the table below presents the combined results of operations for ACI, ORCC and OPAY as if the acquisitions had occurred January 1, 2012 (in thousands, except per share data). 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 transactions 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, nor is it necessarily indicative of future results 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, 2013 to give effect to estimated adjustments to expenses to remove the amortization on eliminated OPAY and ORCC historical identifiable intangible assets and add amortization expense for the value of identified intangibles acquired in the acquisitions (primarily acquired software, customer relationships, trade names, and covenants not to compete), adjustments to interest expense to reflect the elimination of preexisting OPAY and ORCC debt and add estimated interest expense on the Company’s additional Term Credit Facility borrowings and to eliminate share-based compensation expense for eliminated positions. Additionally, certain transaction expenses that are a direct result of the acquisitions have been excluded from the three months ended March 31, 2013.

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	Pro Forma Results of
	Operations for the Three
	Months Ended
(in thousands, except per share data)	March 31, 2013
Total Revenues	$	228,160
Net loss		(3,325	)
Loss per share
Basic	$	(0.08	)
Diluted	$	(0.08	)

3. Debt

As of March 31, 2014, the Company had $32.0 million, $446.5 million and $300.0 million outstanding under our Revolving Credit Facility, Term Credit Facility and Senior Notes, respectively, with up to $218 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended. The amount of unused borrowings actually available varies in accordance with the terms of the agreement.

Credit Agreement

The Company entered into the Credit Agreement (the “Credit Agreement”), as amended, with a syndicate of financial institutions, as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as Administrative Agent, providing for revolving loans, swingline loans, letters of credit and a term loan on November 10, 2011. The Credit Agreement consists of a five-year $250 million senior secured revolving credit facility (the “Revolving Credit Facility”), which includes a sublimit for the issuance of standby letters of credit and a sublimit for swingline loans, and a five-year $500 million senior secured term loan facility (the “Term Credit Facility” and, together with 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.

On August 20, 2013, upon the consummation of the offering of the 6.375% Senior Notes due in 2020 (the “Senior Notes”), the Fourth Amendment to the Credit Agreement originally entered into on November 10, 2011, became effective. The Fourth Amendment, among other things, extended the maturity date of the loans under the credit facility to August 20, 2018, and increased the amount the Company may request for optional incremental term loans and/or increases in the revolving commitment from $200 million to $300 million. The Fourth Amendment does not impact the interest rate schedule previously applied to the Credit Agreement.

Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the Company’s option, either (a) a base rate determined by reference to the highest of (1) the rate of interest per annum publicly announced by the Administrative Agent as its Prime Rate, (2) the federal funds effective rate plus 1/2 of 1% and (3) a LIBOR based 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 based rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus an applicable margin. The applicable margin for borrowings under the Revolving Credit Facility is, based on the calculation of the applicable consolidated total leverage ratio, between 0.50% to 1.50% with respect to base rate borrowings and between 1.50% and 2.50% with respect to LIBOR based borrowings. Interest is due and payable monthly. The interest rate in effect at March 31, 2014 for the Credit Facility was 2.41%.

In addition to paying interest on the outstanding principal under the Credit Facility, the Company is required to pay a commitment fee in respect of the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears. The Company is also required to pay 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 based borrowings under the Revolving Credit Facility on a per annum basis, payable quarterly in arrears, as well as customary fronting fees for the issuance of letters of credit fees and agency fees.

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The Company is permitted to voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans under the Credit Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR based loans.

Senior Notes

On August 20, 2013, the Company completed a $300 million offering of Senior Notes at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The Senior Notes bear an interest rate of 6.375% per annum, payable semi-annually in arrears on August 15 and February 15 of each year, commencing on February 15, 2014. Interest began accruing on August 20, 2013. The Senior Notes will mature on August 15, 2020.

Maturities on long-term debt outstanding at March 31, 2014 are as follows:

Fiscal year ending
December 31,
(in thousands)
2014	$	38,441
2015		65,055
2016		70,969
2017		70,969
2018		233,078
Thereafter		300,000
Total	$	778,512

The Credit Agreement and Senior Notes also contain certain customary mandatory prepayment provisions. If certain events, as specified in the Credit Agreement or Senior Notes agreement, shall occur, the Company may be required to repay all or a portion of the amounts outstanding under the Credit Facility or Senior Notes.

The Credit Facility will mature on August 20, 2018 and the Senior Notes will mature on August 15, 2020. The Revolving Credit Facility and Senior Notes will not amortize and the Term Credit Facility will amortize, with principal payable in consecutive quarterly installments.

The Company’s obligations and the obligations of the guarantors under the Guaranty and cash management arrangements entered into with lenders under the Credit Facility (or affiliates thereof) 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 Corporation 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, and in each case, is subject to certain exclusions set forth in the credit documentation governing the Credit Facility.

The Credit Agreement and Senior 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. The Company is also required to maintain a consolidated leverage ratio at or below a specified amount and a consolidated fixed charge coverage ratio at or above a specified amount. If an event of default, as specified in the Credit Agreement and Senior Notes agreement, shall occur and be continuing, the Company may be required to repay all amounts outstanding under the Credit Facility and Senior Notes. As of March 31, 2014, and at all times during the period, the Company was in compliance with its financial debt covenants.

The fair value of our Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The fair value of our Senior Notes approximates the carrying value at March 31, 2014.

	As of March 31,		As of December 31,
(in thousands)	2014		2013
Term credit facility	$	446,512	$	455,383
Revolving credit facility		32,000		—
6.375% Senior Notes, due August 2020		300,000		300,000
Total debt		778,512		755,383
Less current portion of term credit facility		53,227		47,313
Total long-term debt	$	725,285	$	708,070

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4. Stock-Based Compensation Plans

Employee Stock Purchase Plan

Under the Company’s 1999 Employee Stock Purchase Plan, as amended (the “ESPP”), a total of 1,500,000 shares of the Company’s common stock have been reserved for issuance to eligible employees. Participating employees are permitted to designate up to the lesser of $25,000 or 10% of their annual base compensation for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. The price for shares of common stock purchased under the ESPP is 85% of the stock’s fair market value on the last business day of the three-month participation period. Shares issued under the ESPP during the three months ended March 31, 2014 and 2013 totaled 10,782 and 9,606, respectively.

Stock-Based Payments

A summary of stock options issued pursuant to the Company’s stock incentive plans is as follows:

						Weighted-
				Weighted-		Average		Aggregate
				Average		Remaining		Intrinsic Value of
	Number of			Exercise		Contractual		In-the-Money
	Shares			Price		Term (Years)		Options
Outstanding as of December 31, 2013		2,469,607		$	33.07
Granted		9,044			60.40
Exercised		(120,577	)		23.90
Forfeited		(12,057	)		54.47
Outstanding as of March 31, 2014		2,346,017		$	33.54		5.69	$	60,959,472
Exercisable as of March 31, 2014		1,665,677		$	26.74		4.31	$	54,047,694

As of March 31, 2014, the Company expects that 93.9% of the options will vest over the vesting period.

The weighted-average grant date fair value of stock options granted during the three months ended March 31, 2014 and 2013 was $27.05 and $21.73, respectively. The Company issued treasury shares for the exercise of stock options during the three months ended March 31, 2014 and 2013. The total intrinsic value of stock options exercised during the three months ended March 31, 2014 and 2013 was $4.7 million and $4.3 million, respectively.

The fair value of options granted during the three months ended March 31, 2014 and 2013 was estimated on the date of grant using the Black-Scholes option-pricing model, a pricing model acceptable under U.S. GAAP, with the following weighted-average assumptions:

	Three Months Ended			Three Months Ended
	March 31, 2014			March 31, 2013
Expected life (years)		5.93			5.55
Interest rate		1.8	%		0.8	%
Volatility		45.2	%		50.0	%
Dividend yield		—			—

Expected volatilities are based on the Company’s historical common stock volatility derived from historical stock price data for historical periods commensurate with the options’ expected life. The expected life is the average number of years that the Company estimated that the options will be outstanding, based primarily on historical employee option exercise behavior. The risk-free interest rate is based on the implied yield currently available on United States Treasury zero coupon issues with a term equal to the expected term at the date of grant of the options. The expected dividend yield is zero as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future.

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Stock Incentive Plan – ORCC Corporation Stock Incentive Plan, as amended and restated

In relation to the acquisition of ORCC discussed in Note 2, the Company amended the ORCC Stock Incentive Plan, as previously amended and restated (the “ORCC Incentive Plan”). Stock options were granted to ORCC employees by ORCC prior to acquisition by the Company under the ORCC Incentive Plan. Outstanding ORCC options were converted into ACI options in accordance with the terms of the Transaction Agreement. These are the only equity awards currently outstanding under the ORCC Incentive Plan and no further grants will be made.

A summary of transaction stock options issued pursuant to the Company’s stock incentive plans is as follows:

						Weighted-
				Weighted-		Average		Aggregate
				Average		Remaining		Intrinsic Value of
	Number of			Exercise		Contractual		In-the-Money
	Shares			Price		Term (Years)		Options
Outstanding as of December 31, 2013		20,815		$	105.09
Exercised		(121	)		41.76
Cancelled		(2,757	)		101.35
Outstanding as of March 31, 2014		17,937		$	106.09		2.09	$	45,667
Exercisable as of March 31, 2014		17,937		$	106.09		2.09	$	45,667

A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) outstanding as of March 31, 2014 and changes during the period are as follows:

	Number of			Weighted-
	Shares at			Average
	Expected			Grant Date
Nonvested LTIP Performance Shares	Attainment			Fair Value
Nonvested as of December 31, 2013		906,192		$	41.35
Granted		6,355			60.40
Forfeited		(12,870	)		47.14
Vested		(211,881	)		26.63
Change in attainment for 2010 grants		8,742			26.63
Nonvested as of March 31, 2014		696,538		$	45.71

During the three months ended March 31, 2014, 211,881 shares of the LTIPs vested. The Company withheld 76,093 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

A summary of nonvested restricted share awards (“RSAs”) as of March 31, 2014 and changes during the period are as follows:

	Number of
	Restricted			Weighted-Average Grant
Nonvested Restricted Share Awards	Share Awards			Date Fair Value
Nonvested as of December 31, 2013		48,355		$	44.74
Vested		(334	)		47.63
Forfeited		(487	)		61.54
Nonvested as of March 31, 2014		47,534		$	44.55

During the three months ended March 31, 2014, 334 shares of the RSAs vested. The Company withheld 125 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

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Stock Incentive Plan – S1 Corporation 2003 Stock Incentive Plan, as amended and restated

In relation to the acquisition of S1 Corporation (“S1”) in 2012, the Company amended the S1 Corporation 2003 Stock Incentive Plan, as previously amended and restated (the “S1 2003 Incentive Plan”). Restricted share awards (“RSAs) were granted to S1 employees by S1 Corporation prior to the acquisition by the Company in accordance with the terms of the Transaction Agreement (“Transaction RSAs”) under the S1 2003 Incentive Plan. These are the only equity awards currently outstanding under the S1 2003 Incentive Plan and no further grants will be made.

Under the terms of the Transaction Agreement with S1, upon the acquisition, the S1 Transaction RSAs were converted to RSAs of the Company’s stock. These awards have requisite service periods of four years and vest in increments of 25% on the anniversary of the original grant date of November 9, 2011. If an employee was terminated without cause within 12 months from the acquisition date, the RSAs 100% vest. Stock is issued without direct cost to the employee. The RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period (vesting period) and the participant has voting rights for each share of common stock. The conversion of the Transaction RSAs was treated as a modification and as such, they were valued immediately prior to and after modification. The Company recognizes compensation expense for RSAs on a straight-line basis over the requisite service period. The incremental fair value as measure upon modification will be recognized on a straight-line basis from modification date through the end of the requisite service period.

A summary of nonvested Transaction RSAs issued under the S1 2003 Stock Incentive Plan as of March 31, 2014 and changes during the period are as follows:

	Number of
	Restricted			Weighted-Average Grant
Nonvested Transaction Restricted Share Awards	Share Awards			Date Fair Value
Nonvested as of December 31, 2013		19,184		$	35.41
Forfeited		(2,987	)		35.41
Nonvested as of March 31, 2014		16,197		$	35.41

As of March 31, 2014, there were unrecognized compensation costs of $11.6 million related to nonvested stock options, $1.9 million related to the nonvested RSAs, and $19.5 million related to the LTIP performance shares, which the Company expects to recognize over weighted-average periods of 2.2 years, 1.6 years and 2.3 years, respectively.

The Company recorded stock-based compensation expenses for the three months ended March 31, 2014 and 2013 related to stock options, LTIP performance shares, RSAs, and the ESPP of $4.8 million and $3.9 million, respectively, with corresponding tax benefits of $1.8 million and $1.5 million, respectively. Tax benefits in excess of the option’s grant date fair value are classified as financing cash flows. Estimated forfeiture rates, stratified by employee classification, have been included as part of the Company’s calculations of compensation costs. The Company recognizes compensation costs for stock option awards that vest with the passage of time with only service conditions on a straight-line basis over the requisite service period.

Cash received from option exercises for the three months ended March 31, 2014 and 2013 was $2.9 million and $3.9 million, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $1.8 million and $1.6 million for the three months ended March 31, 2014 and 2013, respectively.

5. Software and Other Intangible Assets

At March 31, 2014, software net book value totaling $193.1 million, net of $103.2 million of accumulated amortization, includes the net book value of software marketed for external sale of $90.8 million. The remaining software net book value of $102.3 million is comprised of various software that has been acquired or developed for internal use.

Quarterly amortization of software marketed for external sale is computed using the greater of the ratio of current revenues to total estimated revenues expected to be derived from the software or the straight-line method over an estimated useful life of three to ten years. Software for resale amortization expense recorded in the three months ended March 31, 2014 and 2013 totaled $3.5 million and $3.2 million, respectively. These software amortization expense amounts are reflected in cost of software license fees in the condensed consolidated statements of operations.

Quarterly amortization of software for internal use is computed using the straight-line method over an estimated useful life of three to ten years. Software for internal use includes software acquired through acquisitions that is used to provide certain of our hosted offerings. Amortization of software for internal use of $5.2 million and $3.4 million for the three months ended March 31, 2014 and 2013, respectively, is included in depreciation and amortization in the condensed consolidated statements of operations.

18

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

	March 31, 2014							December 31, 2013
	Gross							Gross
	Carrying		Accumulated					Carrying		Accumulated
(in thousands)	Amount		Amortization			Net Balance		Amount		Amortization			Net Balance
Customer relationships	$	280,295	$	(55,152	)	$	225,143	$	277,356	$	(49,410	)	$	227,946
Trademarks and tradenames		12,138		(5,333	)		6,805		13,995		(4,383	)		9,612
Covenant not to compete		438		(333	)		105		438		(303	)		135
Purchased Contracts		10,880		(10,880	)		—		10,865		(10,865	)		—
	$	303,751	$	(71,698	)	$	232,053	$	302,654	$	(64,961	)	$	237,693

Other intangible assets amortization expense for the three months ended March 31, 2014 and 2013 totaled $6.5 million and $3.8 million, respectively.

Based on capitalized software and other intangible assets at March 31, 2014, estimated amortization expense for future fiscal years is as follows:

			Other
			Intangible
	Software		Assets
Fiscal Year Ending December 31,	Amortization		Amortization
(in thousands)
Remainder of 2014	$	27,839	$	17,184
2015		31,507		19,883
2016		27,475		18,729
2017		21,818		17,166
2018		20,357		16,656
2019		18,469		16,335
Thereafter		45,665		126,100
Total	$	193,130	$	232,053

6. Corporate Restructuring and Other Organizational Changes

2014 Activities

During the three months ended March 31, 2014, the Company reduced its headcount as a part of its integration of its recent acquisitions. In connection with these actions, approximately $1.8 million of termination costs were recognized in general and administrative expense in the accompanying condensed consolidated statements of operations during the three months ended March 31, 2014. The charges by segment were as follows: $1.7 million in the Americas segment, $0.1 million in the Asia/Pacific segment and less than $0.1 million in the EMEA segment. Approximately $1.6 million of termination costs were paid during the first quarter of 2014. The remaining liability is expected to be paid over the next 12 months.

2013 Activities

During the three months ended March 31, 2013, the Company reduced its headcount as a part of its integration of its recent acquisitions. In connection with these actions, approximately $1.6 million of termination costs were recognized in general and administrative expense in the accompanying condensed consolidated statements of operations during the three months ended March 31, 2013. The charges were all in the Americas segment.

19

The components of corporate restructuring and other reorganization activities from the recent acquisitions are included in the following table:

				Facility
(in thousands)	Severance			Closures			Total
Balance, December 31, 2013	$	1,470		$	1,871		$	3,341
Restructuring charges incurred		1,822			(196	)		1,626
Amounts paid during the period		(1,608	)		(564	)		(2,172	)
Foreign currency translation		(13	)		—			(13	)
Balance, March 31, 2014	$	1,671		$	1,111		$	2,782

The $1.7 million for unpaid severance is included in accrued employee compensation and the $1.1 million for unpaid facility closures is included in accrued and other current liabilities in the accompanying condensed consolidated balance sheet at March 31, 2014.

7. Common Stock and Treasury Stock

As of December 31, 2011, the Company’s Board of Directors had approved a stock repurchase program authorizing the Company, from time to time as market and business conditions warrant, to acquire up to $210 million of its common stock. In February 2012, the Company’s Board of Directors approved an increase of $52.1 million to their current stock repurchase authorization, bringing the total authorization to $262.1 million.

On September 13, 2012, the Company’s Board of Directors approved the repurchase of up to 2,500,000 shares of the Company’s common stock, or up to $113.0 million in place of the remaining repurchase amounts previously authorized. In July 2013, the Company’s Board of Directors approved an additional $100 million for the stock repurchase program. In February 2014, the Company’s Board of Directors again approved an additional $100 million for the stock repurchase program.

The Company repurchased 1,192,809 shares for $70.0 million under the program during the three months ended March, 2014. Under the program to date, the Company has repurchased 12,369,489 shares for approximately $395.8 million. The maximum remaining authorized for purchase under the stock repurchase program was approximately $138.3 million as of March 31, 2014.

8. Earnings Per Share

Basic earnings (loss) per share is computed on the basis of weighted average outstanding common shares. Diluted earnings (loss) per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities.

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

	Three Months Ended
	March 31,
	2014		2013
Weighted average shares outstanding:
Basic weighted average shares outstanding		38,411		39,465
Add: Dilutive effect of stock options and restricted stock awards		—		—
Diluted weighted average shares outstanding		38,411		39,465

The diluted loss per share computation excludes 3.1 million and 3.8 million options to purchase shares, restricted share awards, and contingently issuable shares during the three months ended March 31, 2014 and 2013, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of March 31, 2014 and December 31, 2013 was 37,925,849 and 38,854,989, respectively.

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9. Other, net

Other, net is comprised of the following items:

	Three Months Ended
	March 31,
(in thousands)	2014			2013
Foreign currency transaction gains (losses)	$	(949	)	$	3,466
Other		(108	)		(301	)
Total	$	(1,057	)	$	3,165

10. Segment Information

The Company’s chief operating decision maker, together with other senior management personnel, currently focus their review of consolidated financial information and the allocation of resources based on reporting of operating results, including revenues and operating income (loss), for the geographic regions of the Americas, EMEA and Asia/Pacific and the Corporate line item. The Company’s products are sold and supported through distribution networks covering these three geographic regions, with each distribution network having its own sales force. The Company supplements its distribution networks with independent reseller and/or distributor arrangements. All administrative costs that are not directly attributable or reasonably allocable to a geographic segment are tracked in the Corporate line item. As such, the Company has concluded that its three geographic regions are its reportable segments.

The Company allocates segment support expenses such as global product development, business operations, and product management based upon percentage of revenue per segment. Depreciation and amortization costs are allocated as a percentage of the headcount by segment. The Corporate line item consists of the corporate overhead costs that are not allocated to reportable segments. Corporate overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity and amortization of acquisition-related intangibles and other costs that are not considered when management evaluates segment performance.

The following is selected segment financial data for the periods indicated:

	Three Months Ended
	March 31,
(in thousands)	2014			2013
Revenues:
Americas	$	154,769		$	94,313
EMEA		47,461			47,571
Asia/Pacific		19,243			20,113
	$	221,473		$	161,997
Income (loss) before income taxes:
Americas	$	16,281		$	12,967
EMEA		17,510			15,055
Asia/Pacific		5,579			5,840
Corporate		(49,112	)		(38,472	)
	$	(9,742	)	$	(4,610	)

21

	March 31,		December 31,
(in thousands)	2014		2013
Total assets:
Americas—United States	$	1,091,588	$	1,129,064
Americas—Other		36,260		39,995
EMEA		383,160		380,320
Asia/Pacific		128,994		132,472
	$	1,640,002	$	1,681,851

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three months ended March 31, 2014 and 2013. 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, 2014 and 2013.

11. Income Taxes

The effective tax rate for the three months ended March 31, 2014 was a benefit of 40.7%. The earnings of the Company’s foreign entities for the three months ended March 31, 2014 were $5.6 million. The tax rates in the foreign jurisdictions in which the Company operates are less than the domestic tax rate. The effective tax rate for the three months ended March 31, 2014 was negatively impacted by losses in certain foreign jurisdictions taxed at lower rates, partially offset by profits in other foreign jurisdictions taxed at lower rates and domestic losses taxed at higher rates.

The effective tax rate for the three months ended March 31, 2013 was a benefit of 53.0%. The earnings of the Company’s foreign entities for the three months ended March 31, 2013 was $8.9 million. The tax rates in the foreign jurisdictions in which the Company operates are less than the Company’s domestic rate, therefore, losses in the foreign jurisdictions will have a negative impact on the Company’s effective tax rate, while earnings in the foreign jurisdictions will have a positive impact on the Company’s effective tax rate. The effective tax rate for the three months ended March 31, 2013 was positively impacted by foreign profits taxed at lower rates and a domestic loss taxed at a high rate as well as recognition of $1.4 million tax benefit as a result of implementing the 2012 American Taxpayer Relief Act. The effective tax rate for the three months ended March 31, 2013 was negatively impacted by acquisition related expenses that are not deductible for tax purposes as well as an increase in the valuation allowance against foreign tax credits as a result of the acquisition of ORCC.

The Company’s effective tax rate could fluctuate significantly on a quarterly basis and could be negatively affected to the extent earnings are lower in the countries in which it operates that have a lower statutory rate or higher in the countries in which it operates that have a higher statutory rate or to the extent it has losses sustained in countries where the future utilization of losses are uncertain. 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.

The amount of unrecognized tax benefits for uncertain tax positions was $14.8 million as of March 31, 2014 and $15.0 million as of December 31, 2013, excluding related liabilities for interest and penalties of $2.3 million as of March 31, 2014 and December 31, 2013.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $0.9 million, due to the settlement of various audits and the expiration of statutes of limitation.

12. Commitments and Contingencies

Legal Proceedings

From time to time, the Company is involved in various litigation matters arising in the ordinary course of its business. The Company is not currently a party to any legal proceedings, the adverse outcome of which, individually or in the aggregate, the Company believes would be likely to have a material effect on the Company’s financial condition, results of operations or cash flows.

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Indemnities

Under certain customer contracts, the Company indemnifies customers for certain matters including third party claims of intellectual property infringement relating to the use of our products. Our maximum potential exposure under indemnification arrangements can range from a specified dollar amount to an unlimited amount, depending on the nature of the transactions and the agreements. The Company has recorded an accrual for estimated losses for demands for indemnification that have been tendered by certain customers. The Company does not have any reason to believe that we will be required to make any material payments under these indemnity provisions in excess of the balance accrued at March 31, 2014.

13. Subsequent Events

On April 10, 2014, the Company announced that its Board of Directors approved a three-for-one stock split effective through a dividend. Stockholders of record at the close of business on June 30, 2014 will receive two additional shares for every outstanding share held on the record date. The additional shares will be payable on July 10, 2014. This stock split is subject to stockholders approving an amendment to the Company’s certificate of incorporation to increase the number of authorized common shares. This stockholder approval is expected to be obtained at the June 18, 2014 annual meeting of stockholders.

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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 of the forward-looking statements in this report are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission (“SEC”). Such factors include, but are not limited to, risks related to:

• increased competition;

• the performance of our strategic product, BASE24-eps;

• demand for our products;

• restrictions and other financial covenants in our credit facility;

• consolidations and failures in the financial services industry;

• customer reluctance to switch to a new vendor;

• our strategy to migrate customers to our next generation products;

• the accuracy of management’s backlog estimates;

• failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms;

• delay or cancellation of customer projects or inaccurate project completion estimates;

• global economic conditions impact on demand for our products and services;

• volatility and disruption of the capital and credit markets and adverse changes in the global economy;

• difficulty meeting our debt service requirements;

• impairment of our goodwill or intangible assets;

• risks from potential future litigation;

• future acquisitions, strategic partnerships and investments and litigation;

• risk of difficulties integrating Online Resources Corporation (“ORCC”) and Official Payments Holdings, Inc. (“OPAY”) which may cause us to fail to realize anticipated benefits of the acquisitions;

• the complexity of our products and services and the risk that they may contain hidden defects;

• risks of failing to comply with money transmitter rules and regulations;

• compliance of our products with applicable legislation, governmental regulations and industry standards;

• our compliance with privacy regulations;

• risks of being subject to security breaches or viruses;

• the protection of our intellectual property in intellectual property litigation;

• certain payment funding methods expose us to the credit and/or operating risk of our clients;

• the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue generating activity during the final weeks of each quarter;

• business interruptions or failure of our information technology and communication systems;

• our offshore software development activities;

• risks from operating internationally;

• exposure to unknown tax liabilities; and

• volatility in our stock price.

The cautionary statements in this report expressly qualify all of our forward-looking statements.

The following discussion should be read together with our financial statements and related notes contained in this report and with the financial statements and related notes and Management’s Discussion & Analysis in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed February 28, 2014. Results for the three months ended March 31, 2014, are not necessarily indicative of results that may be attained in the future.

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Overview

ACI Worldwide powers electronic payments and banking for nearly 2,600 financial institutions, retailers and processors around the world. Through our comprehensive suite of software products and hosted services, we deliver a broad range of solutions for payment processing; card and merchant management; online banking; mobile, branch and voice banking; fraud detection; trade finance; and electronic bill presentment and payment.

In addition to our own products, we distribute, or act as a sales agent for, software developed by third parties. Our products are sold and supported through distribution networks covering three geographic regions – the Americas, EMEA and Asia/Pacific. Each distribution network has its own globally coordinated sales force and supplements its sales force with independent reseller and/or distributor networks. Our products and services are used principally by financial institutions, retailers and electronic payment processors, both in domestic and international markets. Accordingly, our business and operating results are influenced by trends such as information technology spending levels, the growth rate of the electronic payments industry, mandated regulatory changes, and changes in the number and type of customers in the financial services industry. Our products are marketed under the ACI Worldwide, ACI Payment Systems, ACI Universal Payments and Official Payments brands.

We derive a significant amount of our revenues from international 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 have launched a globalization strategy which includes elements intended to streamline our supply chain and maximize expertise in several geographic locations to support a growing international customer base and competitive needs. We utilize our Irish subsidiaries to manage certain of our intellectual property rights and to oversee and manage certain international product development and commercialization efforts. We also continue to grow centers of expertise in Timisoara, Romania and Pune and Bangalore in India as well as key operational centers such as Capetown, South Africa and in multiple locations in the United States.

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 February 2011 Boston Consulting Group predicted that noncash payment transactions would grow in volume at an annual rate of 9% from 309 billion in 2010 to 740 billion in 2020, 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 and through the licensing of capacity upgrades to existing customers.

Adoption of real-time delivery. Customer expectations, from both consumers and corporate, are driving the payments world to more real-time delivery. In the UK, 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 in several countries including Singapore and the US. Corporate customers expect real-time information on the status of their payments instead of waiting for an end of day report. And 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 United States. Many of these companies are significantly larger than us and have significantly greater financial, technical and marketing resources. As electronic payment transaction volumes increase, third-party processors tend to provide competition to our solutions, particularly among customers that do not seek to differentiate their electronic payment offerings or are eliminating banks from the payments service reducing the need for our solutions. As consolidation in the financial services industry continues, we anticipate that competition for those customers will intensify.

Adoption of cloud technology. In an effort to leverage lower-cost computing technologies some financial institutions, retailers, billers and electronic payment processors are seeking to transition their systems to make use of cloud technology. Our ACI On Demand SaaS hosting service addresses this market need.

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Electronic payments fraud and compliance. As electronic payment transaction volumes increase, criminal elements continue to find ways to commit a growing volume of fraudulent transactions using a wide range of techniques. Financial institutions, retailers and electronic payment processors 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, financial institutions in particular are being faced with increasing scrutiny and regulatory pressures. In addition, several high-profile data breaches at major retailers further heightened visibility and awareness of payments fraud and risk-related issues. We continue to see opportunity to offer our fraud detection solutions to help customers manage the growing levels of electronic payment fraud and compliance activity.

Adoption of smartcard technology. In many markets, card issuers are being required to issue new cards with embedded chip technology, most recently in the United States. 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.). The EMV standard for issuing and processing debit and credit card transactions has emerged as the global standard, with many regions throughout the world working on EMV rollouts. The primary benefit of EMV deployment is a reduction in electronic payment fraud, with the additional benefit that the core infrastructure necessary for multi-function chip cards is being put in place (e.g., chip card readers in ATMs and POS devices) allowing the deployment of other technologies like contactless. We are working with many customers around the world to facilitate EMV deployments, leveraging several of our solutions.

Single Euro Payments Area (“SEPA”). The SEPA, primarily focused on the European Economic Community and the United Kingdom, is designed to facilitate lower costs for cross-border payments and reduce timeframes for settling electronic payment transactions. Deadlines for 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 and wholesale banking solutions facilitate key functions that help financial institutions address these mandated regulations.

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 the recent global economic crisis and the financial crisis 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 solutions that survive in the consolidated entity.

Global vendor sourcing. Global and regional financial institutions, processors and retailers are aiming to reduce costs in supplier management by picking suppliers who 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 enable us to be successful in this global 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, financial institutions 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, financial institutions 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 Universal Payments 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 than us 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. Our customers have been making use of existing products to deploy mobile banking, mobile payment, mobile commerce and mobile payment 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.

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The banking, financial services and payments industries have come under increased scrutiny from federal, state and foreign lawmakers and regulators in response to the crises in the financial markets and the global recession. In particular, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), which was signed into law July 21, 2010, represents a comprehensive overhaul of the U.S. financial services industry and requires the implementation of many new regulations that will have a direct impact on our customers and potential customers. These regulatory changes may create both opportunities and challenges for us. The application of the new regulations on our customers could create an opportunity for us to market our product capabilities and the flexibility of our solutions to assist our customers in addressing these regulations. At the same time, these regulatory changes may have an adverse impact on our operations and our financial results as we adjust our activities in light of increased compliance costs and customer requirements. It is currently too difficult to predict the long term extent to which the Dodd-Frank Act or the resulting regulations will impact our business and the businesses of our current and potential customers.

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 in the software industry are complex and it can be difficult to estimate when we will recognize revenue generated by a given transaction. Factors such as maturity of the software product licensed, payment terms, creditworthiness of the customer, and timing of delivery or acceptance of our products often 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 United States 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.

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 financially accretive to our financial performance.

Restructuring

Employee Related Actions

During the three months ended March 31, 2014, we reduced our headcount as a part of our integration of our recent acquisitions. In connection with these actions, approximately $1.8 million of termination costs were recognized in general and administrative expense in the accompanying condensed consolidated statements of operations during the three months ended March 31, 2014. The charges for the three months ended March 31, 2014 were $1.7 million in the Americas segment, $0.1 million in the Asia/Pacific segment and less than $0.1 million in the EMEA segment, respectively. Approximately $1.6 million of termination costs were paid during the three months ended March 31, 2014. The remaining liability is expected to be paid over the next 12 months.

Backlog

Included in backlog estimates are all software license fees, maintenance fees and services fees specified in executed contracts, as well as revenues from assumed contract renewals to the extent that 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 estimate represents expected revenues from existing customers using the following key assumptions:

• 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.

• License, facilities management, and software hosting arrangements are assumed to renew at the end of their committed term at a rate consistent with our historical experiences.

• Non-recurring license arrangements are assumed to renew as recurring revenue streams.

• 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.

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

• Anticipated increases in transaction, account, or processing volumes in customer systems.

• Optional annual uplifts or inflationary increases in recurring fees.

• Services engagements, other than facilities management and software hosting engagements, are not assumed to renew over the 60-month backlog period.

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

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We review our customer renewal experience on an annual basis. The impact of this review and subsequent update may result in a revision to the renewal assumptions used in computing the 60-month and 12-month backlog estimates. In the event a 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 geographic region, as of March 31, 2014 and December 31, 2013 (in millions). Dollar amounts reflect foreign currency exchange rates as of each period end.

	March 31, 2014		December 31, 2013
Americas	$	2,858	$	2,831
EMEA		767		747
Asia/Pacific		285		283
Total	$	3,910	$	3,861
	March 31, 2014		December 31, 2013
Committed	$	1,629	$	1,742
Renewal		2,281		2,119
Total	$	3,910	$	3,861

Included in our 60-month backlog estimates are amounts expected to be recognized during the initial license term of customer contracts (“Committed Backlog”) and amounts expected to be recognized from assumed renewals of existing customer contracts (“Renewal Backlog”). Amounts expected to be recognized from assumed contract renewals are based on our historical renewal experience.

We also estimate 12-month backlog, segregated between monthly recurring and non-recurring revenues, using a methodology consistent with the 60-month backlog estimate. Monthly recurring revenues include all monthly license fees, maintenance fees and processing services fees. Non-recurring revenues include other software license fees and services fees. Amounts included in our 12-month backlog estimate assume renewal of one-time license fees on a monthly fee basis if such renewal is expected to occur in the next 12 months. The following table sets forth our 12-month backlog estimate, by geographic region, as of March 31, 2014 and December 31, 2013 (in millions). For all periods reported, approximately 90% of our 12-month backlog estimate is committed backlog and approximately 10% of our 12-month backlog estimate is renewal backlog. Dollar amounts reflect currency exchange rates as of each period end.

	March 31, 2014						December 31, 2013
	Monthly Recurring		Non-Recurring		Total		Monthly Recurring		Non-Recurring		Total
Americas	$	574	$	64	$	638	$	571	$	63	$	634
EMEA		127		50		177		130		38		168
Asia/Pacific		52		16		68		53		15		68
Total	$	753	$	130	$	883	$	754	$	116	$	870

Estimates of future financial results are inherently unreliable. Our backlog estimates require substantial judgment and are based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong, including for reasons outside of management’s control. For example, our customers may attempt to renegotiate or terminate their contracts for a number of reasons, including mergers, changes in their financial condition, or general changes in economic conditions in the customer’s industry or geographic location, or we may 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 actually recognized in future periods. Accordingly, there can be no assurance that amounts included in backlog estimates will actually generate the specified revenues or that the actual revenues will be generated within the corresponding 12-month or 60-month period. Additionally, because backlog estimates are operating metrics, the estimates are not required to be subject to the same level of internal review or controls as a GAAP financial measure.

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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 of items included in our condensed consolidated statements of operations (amounts in thousands):

Three-Month Period Ended March 31, 2014 Compared to the Three-Month Period Ended March 31, 2013

Revenues

	2014											2013
	Amount		% of Total Revenue			$ Change vs 2013			% Change vs 2013			Amount		% of Total Revenue
Revenues:
Initial license fees (ILFs)	$	11,623		5.2	%	$	(5,761	)		-33.1	%	$	17,384		10.7	%
Monthly license fees (MLFs)		24,079		10.9	%		107			0.4	%		23,972		14.8	%
License		35,702		16.1	%		(5,654	)		-13.7	%		41,356		25.5	%
Maintenance		62,499		28.2	%		3,865			6.6	%		58,634		36.2	%
Services		22,588		10.2	%		(1,341	)		-5.6	%		23,929		14.8	%
Hosting		100,684		45.5	%		62,606			164.4	%		38,078		23.5	%
Total revenues	$	221,473		100.0	%	$	59,476			36.7	%	$	161,997		100.0	%

Total revenue for the three months ended March 31, 2014 increased $59.5 million, or 36.7%, as compared to the same period in 2013. The increase is the result of a $3.9 million, or 6.6%, increase in maintenance revenue and a $62.6 million, or 164.4%, increase in hosting revenue partially offset by a $5.7 million, or 13.7%, decrease in license revenue and a $1.3 million, or 5.6%, decrease in services revenue.

The increase in total revenue for the three months ended March 31, 2014 as compared to the same period in 2013 was due to a $60.5 million, or 64.1%, increase in the Americas reportable segment partially offset by a $0.1 million, or 0.2%, decrease in the EMEA reportable segment and a $0.9 million, or 4.3%, decrease in the Asia/Pacific reportable segment.

ORCC contributed an incremental $29.5 million, or 18.2%, of the increase in total revenue for the three months ended March 31, 2014 compared to the same period in 2013. The addition of OPAY contributed $33.5 million, or 20.6%, of the increase in total revenue for the three months ended March 31, 2014. Excluding the impact of the incremental revenue from ORCC and addition of OPAY revenues, total revenue for the three months ended March 31, 2014 decreased $3.5 million, or 2.3%. The decrease in total revenue, excluding the addition of ORCC and OPAY, is primarily due to a decline in initial license fee revenues recognized during the three months ended March 31, 2014 as compared to the same period in 2013.

License Revenue

Customers purchase the right to license ACI software for the term of their agreement which term is generally 60 months. 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.

Initial License Revenue

Initial license revenue includes license and capacity revenues that do not recur on a monthly or quarterly basis. Included in initial license revenue are license and capacity fees that are recognizable at the inception of the agreement and license and capacity fees that are recognizable at interim points during the term of the agreement, including those that are recognizable annually due to negotiated customer payment terms. Initial license revenue decreased by $5.8 million, or 33.1%, during the three months ended March 31, 2014, as compared to the same period in 2013. Initial license revenue decreased in the Americas, EMEA and Asia/Pacific reportable segments by $3.0 million, $1.1 million and $1.7 million, respectively. The decrease in initial license revenue is largely attributable to a decline in initial license fees as part of negotiated payment terms from sales made during the three months ended March 31, 2014 as compared to the same period in 2013. Included in the above are capacity related revenue decreases of $0.9 million, $0.7 million and $1.3 million in the Americas, EMEA and Asia/Pacific reportable segments, respectively, during the three months ended March 31, 2014 as compared to the same period in 2013.

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Monthly License Revenue

Monthly license revenue is license and capacity revenue that is paid monthly or quarterly due to negotiated customer payment terms as well as initial license and capacity fees that are recognized as revenue ratably over an extended period as monthly license revenue. Monthly license revenue increased $0.1 million, or 0.4%, during the three months ended March 31, 2014, as compared to the same period in 2013 with the Asia/Pacific reportable segment increasing by $1.7 million offset by a decline in the Americas and EMEA reportable segments of $0.9 million and $0.7 million, respectively.

Maintenance Revenue

Maintenance revenue includes standard and enhanced maintenance or any post contract support fees received from customers for the provision of product support services. Maintenance revenue during the three months ended March 31, 2014, as compared to the same period in 2013 increased $3.9 million, or 6.6%, of which $0.4 million, or 0.6%, was due to incremental ORCC revenues. Maintenance revenue increased in the Americas, EMEA and Asia/Pacific reportable segments by $0.5 million, $1.6 million and $1.4 million, respectively. Increases in maintenance revenue are primarily driven by increases in our customer installation base, expanded product usage from existing customers, and increased adoption of our enhanced support services programs.

Services Revenue

Services revenue includes fees earned through implementation services, professional services and facilities management services. Implementation services include product installations, product configurations, and retrofit custom software modifications (“CSMs”). 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. During the period in which non-essential services revenue is being deferred, direct and incremental costs related to the performance of these services are also being deferred. During the period in which essential services revenue is being deferred, direct and indirect costs related to the performance of these services are also being deferred.

Services revenue during the three months ended March 31, 2014 as compared to the same period in 2013 decreased by $1.3 million, or 5.6%. Implementation and professional services decreased in the Americas and Asia/Pacific reportable segment by $0.3 million and $2.3 million, respectively, partially offset by an increase in the EMEA reportable segment of $1.3 million. The decrease in services revenue in the Americas reportable segment was partially offset by an increase of $0.7 million due to incremental ORCC revenues.

Hosting Revenue

Hosting revenue includes fees earned through hosting and on-demand arrangements. All revenue from hosting and on-demand arrangements that does not qualify for treatment as separate units of accounting, which include set-up fees, implementation or customization services, and product support services, are included in hosting revenue. For 2014, hosting revenue also includes fees paid by our clients as a part of the acquired EBPP products. 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.

Hosting revenue during the three months ended March 31, 2014 as compared to the same period in 2013 increased $62.6 million, or 164.4%, of which $28.4 million and $33.5 million was due to incremental ORCC revenues and the addition of OPAY, respectively.

Operating Expenses

	2014											2013
	Amount		% of Total Revenue			$ Change vs 2013			% Change vs 2013			Amount		% of Total Revenue
Operating expenses:
Cost of license	$	5,736		2.6	%	$	(182	)		-3.1	%	$	5,918		3.7	%
Cost of maintenance, services and hosting		107,887		48.7	%		46,016			74.4	%		61,871		38.2	%
Research and development		37,456		16.9	%		307			0.8	%		37,149		22.9	%
Selling and marketing		27,909		12.6	%		2,835			11.3	%		25,074		15.5	%
General and administrative		25,116		11.3	%		79			0.3	%		25,037		15.5	%
Depreciation and amortization		17,078		7.7	%		6,121			55.9	%		10,957		6.8	%
Total operating expenses	$	221,182		99.9	%	$	55,176			33.2	%	$	166,006		102.5	%

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Total operating expenses for the three months ended March 31, 2014 increased $55.2 million, or 33.2%, as compared to the same period of 2013. For the three months ended March 31, 2014, there were approximately $54.5 million of incremental operating expenses related to the added operations of ORCC and OPAY. There were approximately $5.7 million and $6.6 million of significant transaction related expenses incurred in the three months ended March 31, 2014, and March 31, 2013, respectively. Significant transaction related expenses for the three months ended March 31, 2014 included $2.0 million of personnel related charges, $2.3 million related to professional fees and contract termination costs for the data center and platform consolidations, and $1.4 million of professional and other expenses. Excluding these expenses, total operating expenses increased $1.5 million in the three months ended March 31, 2014 compared to the same period in 2013 primarily due to an increase in personnel related expenses.

Cost of License

The cost of license for our products sold includes third-party software royalties as well as the amortization of purchased and developed software for resale. In general, the cost of license for our products is minimal because we internally develop most of the software components, the cost of which is reflected in research and development expense as it is incurred as technological feasibility coincides with general availability of the software components.

Cost of licenses decreased $0.2 million, or 3.1%, in the three months ended March 31, 2014 compared to the same period in 2013 primarily due to a decrease in third party fees.

Cost of Maintenance, Services and Hosting

Cost of maintenance, services and hosting includes costs to provide hosting services and both the costs of maintaining our software products as well as the service costs required to deliver, install and support software at customer sites. 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. Hosting costs related to the acquired EBPP products include payment card interchange fees, assessments payable to banks and payment card processing fees.

Cost of maintenance, services, and hosting increased $46.0 million, or 74.4%, in the three months ended March 31, 2014 compared to the same period in 2013. There were $41.7 million of maintenance, services, and hosting expenses related to the incremental expenses of ORCC and the addition of OPAY operations in the three months ended March 31, 2014. Excluding these expenses, the cost of maintenance, services and hosting increased $4.3 million compared to the same period in 2013 primarily due to an increase in personnel related expenses.

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.

Research and development expense increased $0.3 million, or 0.8%, in the three months ended March 31, 2014 compared to the same period in 2013. There were $2.7 million of research and development expenses related to the incremental expenses of ORCC and the addition of OPAY in the quarter ended March 31, 2014. Excluding these expenses, total research and development expenses decreased $2.4 million in the three months ended March 31, 2014 compared to the same period in 2013 primarily due to a decrease in personnel 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 needed to promote the Company and its products as well as perform or acquire market research to help us better understand what products our customers are looking for in the future. Marketing costs also include the costs associated with measuring customers’ opinions toward the Company, our products and personnel.

Selling and marketing expense increased $2.8 million, or 11.3%, in the three months ended March 31, 2014 compared to the same period in 2013. There were $2.0 million of selling and marketing expenses related to the incremental expenses of ORCC and the addition of OPAY operations in the quarter ended March 31, 2014. Excluding these expenses, selling and marketing expenses increased $0.8 million in the three months ended March 31, 2014 compared to the same period in 2013 primarily due to an increase in professional promotion and advertising fees.

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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 $0.1 million, or 0.3%, in the three months ended March 31, 2014. Included in general and administrative expenses for the three months ended March 31, 2014 were approximately $2.2 million of general and administrative expenses related to the incremental expenses of ORCC and the addition of OPAY operations. There were approximately $5.7 million and $6.6 million of significant transaction related expenses incurred in the three months ended March 31, 2014 and March 31, 2013, respectively. Significant transaction related expenses for the three months ended March 31, 2014 included $2.0 million of personnel related charges, $2.3 million of professional fees and contract termination costs related to data center and platform consolidations, and $1.4 million of professional and other expenses. Excluding these expenses, total general and administrative expenses decreased $1.2 million in the three months ended March 31, 2014 compared to the same period in the prior year, due to a decrease in personnel related expenses.

Depreciation and Amortization

Depreciation and amortization expense increased $6.1 million, or 55.9%, in the three months ended March 31, 2014 compared to the same period in 2013 primarily due to acquisition related assets.

Other Income and Expense

	2014												2013
	Amount			% of Total Revenue			$ Change vs 2013			% Change vs 2013			Amount			% of Total Revenue
Other income (expense):
Interest expense	$	(9,175	)		-4.1	%	$	(5,278	)		135.4	%	$	(3,897	)		-2.4	%
Interest income		199			0.1	%		68			51.9	%		131			0.1	%
Other, net		(1,057	)		-0.5	%		(4,222	)		-133.4	%		3,165			2.0	%
Total other income (expense)	$	(10,033	)		-4.5	%	$	(9,432	)		1569.4	%	$	(601	)		-0.4	%

Interest expense for the three months ended March 31, 2014 increased $5.3 million, or 135.4%, as compared to the same period in 2013 due to the increase in debt obtained in 2013 partially used to fund acquisitions. Interest income for the three months ended March 31, 2014 was flat as compared to the same period in 2013.

Other, net consists of foreign currency losses and other non-operating items. Foreign currency gains (losses) for the three months ended March 31, 2014 and 2013 were ($0.9) million and $3.5 million, respectively.

Income Taxes

	2014												2013
	Amount			% of Total Revenue			$ Change vs 2013			% Change vs 2013			Amount			% of Total Revenue
Income tax benefit	$	(3,967	)		-1.8	%	$	(1,523	)		62.3	%	$	(2,444	)		-1.5	%
Effective Income tax rate		40.7	%											53.0	%

The effective tax rate for the three months ended March 31, 2014 was a benefit of 40.7%. The earnings of our foreign entities for the three months ended March 31, 2014 were $5.6 million. The tax rates in the foreign jurisdictions in which we operate are less than the domestic tax rate. The effective tax rate for the three months ended March 31, 2014 was negatively impacted by losses in certain foreign jurisdictions taxed at lower rates, partially offset by profits in other foreign jurisdictions taxed at lower rates and domestic losses taxed at a higher rate.

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The effective tax rate for the three months ended March 31, 2013 was a benefit of 53.0%. The earnings of our foreign entities for the three months ended March 31, 2013 were $8.9 million. The tax rates in the foreign jurisdictions in which we operate are less than the domestic tax rate. The effective tax rate for the three months ended March 31, 2013 was positively impacted by foreign profits taxed at lower rates and a domestic loss taxed at a higher rate as well as recognition of $1.4 million tax benefit as a result of implementing the 2012 American Taxpayer Relief Act. The effective tax rate for the three months ended March 31, 2013 was negatively impacted by acquisition related expenses that are not deductible for tax purposes as well as an increase in the valuation allowance against foreign tax credits as a result of the acquisition of ORCC.

Our effective tax rate could fluctuate significantly on a quarterly basis and could be negatively affected to the extent earnings are lower in the countries in which we operate that have a lower statutory rate or higher in the countries in which we operate that have a higher statutory rate or the extent we have losses sustained in countries where the future utilization of losses are uncertain. Our effective tax rate could also fluctuate due to changes in the valuation of our deferred tax assets or liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, we are occasionally subject to examination of our income tax returns by tax authorities in the jurisdictions we operate. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes.

Segment Results

The following table presents revenues and income (loss) before income taxes for the periods indicated by geographic region (in thousands):

	Three Months Ended March 31,
	2014			2013
Revenues:
Americas	$	154,769		$	94,313
EMEA		47,461			47,571
Asia/Pacific		19,243			20,113
	$	221,473		$	161,997
Income (loss) before income taxes:
Americas	$	16,281		$	12,967
EMEA		17,510			15,055
Asia/Pacific		5,579			5,840
Corporate		(49,112	)		(38,472	)
	$	(9,742	)	$	(4,610	)

Reportable segment results are impacted by both direct expenses and allocated shared function costs such as global product development, global customer operations and global product management. Shared function costs are allocated to the geographic reportable segments as a percentage of revenue or as a percentage of headcount. All administrative costs that are not directly attributable or able to be allocated to a geographic segment are included in the corporate line item.

The increase in revenue and expenses for the Americas segment during the three months ended March 31, 2014 is primarily due to the incremental expenses of ORCC and the addition of OPAY operations. The Company incurred significant transaction related expenses of approximately $5.7 million and $6.6 million during the three months ended March 31, 2014 and 2013, respectively. Amortization of intangible assets allocated to the Corporate business segment was approximately $8.5 million and $6.7 million during the three months ended March 31, 2014 and 2013, respectively. Interest expense on long term debt allocated to the Corporate segment was approximately $9.2 million and $3.9 million during the three months ended March 31, 2014 and 2013, respectively.

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.

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As of March 31, 2014, we had $58.9 million in cash and cash equivalents. Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less.

As of March 31, 2014, $47.2 million of the $58.9 million of cash and cash equivalents was held by our foreign subsidiaries. If these funds were needed for our operations in the U.S. we would be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.

The following table sets forth summary cash flow data for the periods indicated.

	Three Months Ended March 31,
	2014			2013
	(amounts in thousands)
Net cash provided by (used by):
Operating activities	$	15,257		$	34,927
Investing activities		(7,808	)		(273,207	)
Financing activities		(44,310	)		278,767

Net cash flows provided by operating activities for the three months ended March 31, 2014 amounted to $15.3 million as compared to $34.9 million during the same period in 2013. The comparative period decrease was primarily due to a reduction in cash receipts from customers of $22.8 million. Our current policy is to use our operating cash flow primarily for funding capital expenditures, lease payments, stock repurchases and acquisitions.

During the first three months of 2014, we used cash of $7.8 million to purchase software, property and equipment. During the three months ended March 31, 2013, we paid $250.2 million, net of $9.9 million in cash acquired, to acquire ORCC. In addition, we paid $14.0 million, net of $0.2 million in cash acquired, to acquire PTESA during the first three months of 2013.

During the three months ended March 31, 2014, we used $70.0 million to repurchase common stock. We received net proceeds of $32 million from the Revolving Credit Facility and we repaid $8.9 million of the Term Credit Facility during the three months ended March 31, 2014. In addition, during the first three months of 2014, we received proceeds of $7.6 million, including corresponding excess tax benefits, from the exercises of stock options and the issuance of common stock under our 1999 Employee Stock Purchase Plan, as amended, and used $4.5 million for the repurchase of restricted stock and performance shares for tax withholdings. In the first three months of 2013, we received proceeds of $300.0 million from our Term Credit Facility to fund our purchase of ORCC.

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 that 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 requirements, for the next twelve months and foreseeable future.

Debt

As of March 31, 2014, we had $32.0 million and $446.5 million outstanding under our Revolving and Term Credit Facilities, with up to $218 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended. The amount of unused borrowings actually available varies in accordance with the terms of the agreement. The Credit Agreement contains certain affirmative and negative covenants, including limitations on the incurrence of indebtedness, asset dispositions, acquisitions, investments, dividends and other restricted payments, liens and transactions with affiliates. The Credit Agreement also contains financial covenants relating to maximum permitted leverage ratio and the minimum fixed charge coverage ratio. The facility does not contain any subjective acceleration features and does not have any required payment or principal reduction schedule and is included as a long-term liability in our consolidated balance sheet. At March 31, 2014 (and at all times during this period) we were in compliance with our debt covenants. The interest rate in effect at March 31, 2014 was 2.41%.

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On August 20, 2013, the Company completed a $300 million offering of 6.375% Senior Notes due in 2020 (the “Notes”) at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The Notes bear an interest rate of 6.375% per annum, payable semi-annually in arrears on August 15 and February 15 of each year, commencing on February 15, 2014. Interest will accrue from August 20, 2013. The Notes will mature on August 15, 2020.

Stock Repurchase Program

As of December 31, 2011, our Board of Directors had approved a stock repurchase program authorizing us, from time to time as market and business conditions warrant, to acquire up to $210 million of our common stock. In February 2012, our Board of Directors approved an increase of $52.1 million to our current stock repurchase authorization, bringing the total authorization to $262.1 million.

On September 13, 2012, our Board of Directors approved the repurchase of up to 2,500,000 shares of our common stock, or up to $113.0 million in place of the remaining repurchase amounts previously authorized. In July 2013, our Board of Directors approved an additional $100 million for the stock repurchase program. In February 2014, our Board of Directors approved an additional $100 million for the stock repurchase program.

We repurchased 1,192,809 shares for $70.0 million under the program during the three months ended March 31, 2014. Under the program to date, we have purchased 12,369,489 shares for approximately $395.8 million. The maximum remaining authorized for purchase under the stock repurchase program was approximately $138.3 million as of March 31, 2014.

There is no guarantee as to the exact number of shares that will be repurchased by us. Repurchased shares are returned to the status of authorized but unissued shares of common stock. In March 2005, our Board of Directors 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 three business days following our quarterly earnings release.

Contractual Obligations and Commercial Commitments

For the three months ended March 31, 2014, other than as discussed below, 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, 2013.

	Payments due by Period (amounts in thousands)
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Contractual Obligations
Revolving Credit Facility	$	32,000	$	—	$	—	$	32,000	$	—
Revolving Credit Facility interest (1)		3,406		771		1,542		1,093		—
Total	$	35,406	$	771	$	1,542	$	33,093	$	—

(1) Based upon the debt outstanding and interest rate in effect at March 31, 2014 of 2.41%.

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 at March 31, 2014 is $14.8 million.

Critical Accounting Estimates

The preparation of the condensed consolidated financial statements requires that 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 that 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 which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following:

• Revenue Recognition

• Allowance for Doubtful Accounts

• Business Combinations

• Intangible Assets and Goodwill

• Stock-Based Compensation

• Accounting for Income Taxes

During the three months ended March 31, 2014, there were no significant changes to our critical accounting policies and estimates other than as disclosed in Note 1, Condensed Consolidated Financial Statements. 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, 2013, filed on February 28, 2014, for a more complete discussion of our critical accounting policies and estimates.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to our market risk for the three months ended March 31, 2014. 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. Thus, 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, and in those instances where our goods and services have already been sold, may result in the receivables being more difficult to collect. Additionally, any decline in the value of the U.S. dollar in jurisdictions where the revenue contracts are denominated in U.S. dollars and operating expenses are incurred in local currency will have an unfavorable impact to operating margins. We at times enter into revenue contracts that are denominated in the country’s local currency, principally in South Africa, Australia, Canada, the United Kingdom and other European countries. 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 the purpose of speculation or arbitrage.

The primary objective of our cash investment policy is to preserve principal without significantly increasing risk. Based on our cash investments and interest rates on these investments at March 31, 2014, and if we maintained this level of similar cash investments for a period of one year, a hypothetical 10 percent increase or decrease in effective interest rates would increase or decrease interest income by less than $0.1 million annually.

We had approximately $778.5 million of debt outstanding at March 31, 2014 with $300.0 million in Senior Notes and $478.5 million outstanding under our Credit Facility. Our Senior Notes are fixed-rate long-term debt obligations with a 6.375% interest rate. Our Credit Facility has a floating rate which was 2.41% at March 31, 2014. The potential increase (decrease) in interest expense for the Credit Facility from a hypothetical ten percent increase (decrease) in effective interest rates would be approximately $1.2 million.

Item 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our management, under the supervision of 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, as of the end of the period covered by this report, March 31, 2014. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective as of March 31, 2014.

Changes in Internal Control over Financial Reporting

On November 5, 2013, the Company completed its acquisition of OPAY. The Company considers the transaction material to its results of operations, cash flows and financial position from the date of the acquisition through March 31, 2014 and believes the internal controls and procedures of OPAY have had a material effect on the Company’s internal control over financial reporting. See Note 2, Business Combination , to the Condensed Consolidated Financial Statements included in Item 1 for discussion of the acquisition and related financial data.

The Company is currently in the process of integrating OPAY operations. The Company anticipates a successful integration of operations and internal controls over financial reporting. Management will continue to evaluate its internal control over financial reporting as it executes integration activities.

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Our management, under the supervision of and with the participation of the Chief Executive Officer and Chief Financial Officer evaluated any change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) under the Exchange Act) during the Company’s quarter ended March 31, 2014, and determined that except for the changes discussed above, there were no other changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect the Company’s internal control over financial reporting.

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, 2013. 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.

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

Issuer Purchases of Equity Securities

The following table provides information regarding the Company’s repurchases of its common stock during the three months ended March 31, 2014:

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, 2014 through January 31, 2014		—		$	—		—	$	109,665,000
February 1, 2014 through February 28, 2014		1,177,593	(1)		58.55		1,101,500		143,869,000
March 1, 2014 through March 31, 2014		91,434	(1)		60.72		91,309		138,325,000
Total		1,269,027		$	58.71		1,192,809

(1) Pursuant to our 2005 Incentive Plan, we granted restricted share awards (“RSAs”). These awards have requisite service periods of either three or four years and vest in increments of either 33% or 25% on the anniversary dates of the grants. Under each arrangement, stock is issued without direct cost to the employee. During the three months ended March 31, 2014, 211,881 and 334 shares of the LTIPs and RSAs vested. We withheld 76,093 and 125 of those shares, respectively, to pay the employees’ portion of applicable payroll taxes.

In fiscal 2005, we announced that our Board of Directors approved a stock repurchase program authorizing us, from time to time as market and business conditions warrant, to acquire up to $80 million of our common stock, and that we intend to use existing cash and cash equivalents to fund these repurchases. In May 2006, our Board of Directors approved an increase of $30 million to the stock repurchase program, bringing the total of the approved program to $110 million. In March 2007, our Board of Directors approved an increase of $100 million to its current repurchase authorization, bringing the total authorization to $210 million. In February 2012, our Board of Directors approved an increase of $52.1 million to its current stock repurchase authorization, bringing the total authorization to $262.1 million. On September 13, 2012, our Board of Directors approved the repurchase of up to 2,500,000 shares of the Company’s common stock, or up to $113.0 million, in place of the remaining repurchase amounts previously authorized. In July, 2013, our Board of Directors approved an additional $100 million for stock repurchases. In February, 2014, our Board of Directors again approved an additional $100 million for stock repurchases. Approximately $138.3 million remains available at March 31, 2014. There is no guarantee as to the exact number of shares that will be repurchased by us. Repurchased shares are returned to the status of authorized but unissued shares of common stock. In March 2005, our Board of Directors 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 three business days following our quarterly earnings release.

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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
2.03(1)	Agreement and Plan of Merger, dated September 23, 2013, by and among ACI Worldwide, Inc., Olympic Acquisition Corp. and Official Payments Holdings, Inc.
3.01(2)	2013 Amended and Restated Certificate of Incorporation of the Company
3.02(3)	Amended and Restated Bylaws of the Company
4.01(4)	Form of Common Stock Certificate
4.02(5)	Indenture, dated as of August 20, 2013, among the ACI Worldwide, Inc., the guarantors listed therein, and Wilmington Trust, National Association, as trustee
4.03	Form of 6.375% Senior Notes due 2020 (included as Exhibit A to Exhibit 4.02).
10.25(6)	Fourth Amendment to Credit Agreement, dated August 20, 2013, by and among ACI Worldwide, Inc., the subsidiary guarantors thereto, Wells Fargo Bank, National Association, as administrative agent, and the lenders that are party thereto
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
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

* 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.

(1) Incorporated herein by reference to Exhibit 2.1 to the registrant’s current report on Form 8-K filed September 23, 2013.

(2) Incorporated herein by reference to Exhibit 3.1 to the registrant’s current report on Form 8-K filed June 13, 2013.

(3) Incorporated herein by reference to Exhibit 3.2 to the registrant’s current report on Form 8-K filed December 18, 2008.

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

(5) Incorporated herein by reference to Exhibit 4.1 to the registrant’s current report on Form 8-K filed August 20, 2013.

(6) Incorporated herein by reference to Exhibit 10.1 to the registrant’s current report on Form 8-K filed August 20, 2013.

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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 2, 2014	By:	/S/ SCOTT W. BEHRENS
		Scott W. Behrens
		Senior Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer)

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EXHIBIT INDEX

Exhibit No.	Description
2.03(1)	Agreement and Plan of Merger, dated September 23, 2013, by and among ACI Worldwide, Inc., Olympic Acquisition Corp. and Official Payments Holdings, Inc.
3.01(2)	2013 Amended and Restated Certificate of Incorporation of the Company
3.02(3)	Amended and Restated Bylaws of the Company
4.01(4)	Form of Common Stock Certificate
4.02(5)	Indenture, dated as of August 20, 2013, among the ACI Worldwide, Inc., the guarantors listed therein, and Wilmington Trust, National Association, as trustee
4.03	Form of 6.375% Senior Notes due 2020 (included as Exhibit A to Exhibit 4.02).
10.25(6)	Fourth Amendment to Credit Agreement, dated August 20, 2013, by and among ACI Worldwide, Inc., the subsidiary guarantors thereto, Wells Fargo Bank, National Association, as administrative agent, and the lenders that are party thereto
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
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

* 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.

(1) Incorporated herein by reference to Exhibit 2.1 to the registrant’s current report on Form 8-K filed September 23, 2013.

(2) Incorporated herein by reference to Exhibit 3.1 to the registrant’s current report on Form 8-K filed June 13, 2013.

(3) Incorporated herein by reference to Exhibit 3.2 to the registrant’s current report on Form 8-K filed December 18, 2008.

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

(5) Incorporated herein by reference to Exhibit 4.1 to the registrant’s current report on Form 8-K filed August 20, 2013.

(6) Incorporated herein by reference to Exhibit 10.1 to the registrant’s current report on Form 8-K filed August 20, 2013.

41

EX-31.01

Exhibit 31.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Philip G. Heasley, 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 2, 2014	/s/ PHILIP G. HEASLEY
	Philip G. Heasley
	President, Chief Executive Officer and Director (Principal Executive Officer)

42

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 2, 2014	/S/ SCOTT W. BEHRENS
	Scott W. Behrens
	Senior Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer)

43

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, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Philip G. Heasley, 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 2, 2014	/s/ PHILIP G. HEASLEY
	Philip G. Heasley
	President, Chief Executive Officer and Director (Principal Executive Officer)

44

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, 2014 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 2, 2014	/S/ SCOTT W. BEHRENS
	Scott W. Behrens
	Senior Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer)

45

XML

Pro Forma Results of Combined Company Operations (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Business Acquisition Pro Forma Information [Abstract]
Total Revenues	$ 228,160
Net loss	$ (3,325)
Loss per share
Basic	$ (0.08)
Diluted	$ (0.08)

XML

Corporate Restructuring and Other Organizational Changes - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Restructuring Cost and Reserve [Line Items]
Employee termination costs (adjustments)	$ 1,800,000	$ 1,600,000
Employee termination cost paid during the period	2,172,000
Liability is expected to be paid	12 months
Restructuring charges	2,782,000		3,341,000
Americas
Restructuring Cost and Reserve [Line Items]
Employee termination costs (adjustments)	1,700,000
Asia/Pacific
Restructuring Cost and Reserve [Line Items]
Employee termination costs (adjustments)	100,000
EMEA
Restructuring Cost and Reserve [Line Items]
Employee termination costs (adjustments)	100,000
Severance
Restructuring Cost and Reserve [Line Items]
Employee termination cost paid during the period	1,608,000
Restructuring charges	1,671,000		1,470,000
Facility Closures
Restructuring Cost and Reserve [Line Items]
Employee termination cost paid during the period	564,000
Restructuring charges	$ 1,111,000		$ 1,871,000

XML

Summary of Nonvested Long-Term Incentive Program Performance Share Awards Outstanding and Changes During Period (Detail) (LTIP Performance Shares, USD $)	3 Months Ended
	Mar. 31, 2014
LTIP Performance Shares
Number of Shares at Expected Attainment
Beginning Balance	906,192
Granted	6,355
Forfeited	(12,870)
Vested	(211,881)
Change in attainment for 2010 grants	8,742
Ending Balance	696,538
Weighted-Average Grant Date Fair Value
Beginning Balance	$ 41.35
Granted	$ 60.40
Forfeited	$ 47.14
Vested	$ 26.63
Change in attainment for 2010 grants	$ 26.63
Ending Balance	$ 45.71

XML

Components of Corporate Restructuring and Other Reorganization Activities from Recent Acquisitions (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 3,341
Restructuring charges incurred	1,626
Amounts paid during the period	(2,172)
Foreign currency translation	(13)
Ending balance	2,782
Severance
Restructuring Cost and Reserve [Line Items]
Beginning balance	1,470
Restructuring charges incurred	1,822
Amounts paid during the period	(1,608)
Foreign currency translation	(13)
Ending balance	1,671
Facility Closures
Restructuring Cost and Reserve [Line Items]
Beginning balance	1,871
Restructuring charges incurred	(196)
Amounts paid during the period	(564)
Ending balance	$ 1,111

XML

Estimated Fair Value of Options Granted using Black-Scholes Option-Pricing Model with Weighted-Average Assumptions (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected life (years)	5 years 11 months 5 days	5 years 6 months 18 days
Interest rate	1.80%	0.80%
Volatility	45.20%	50.00%
Dividend yield

XML

Components of Other Current Assets and Other Current Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]
Current debt issuance costs	$ 5,181	$ 5,276
Other	11,738	12,163
Total other current assets	50,956	65,328
Accrued interest	2,447	7,074
Vendor financed licenses	6,611	6,410
Royalties payable	5,128	5,627
Other	25,953	33,064
Total other current liabilities	70,818	95,016
Settlement receivables
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]
Other assets settlement	14,104	20,119
Settlement payables
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]
Settlement payables	30,679	42,841
Settlement deposits
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]
Other assets settlement	$ 19,933	$ 27,770

XML

Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings Per Share (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Weighted average shares outstanding:
Basic weighted average shares outstanding	38,411	39,465
Add: Dilutive effect of stock options and restricted stock awards
Diluted weighted average shares outstanding	38,411	39,465

XML

Debt (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Maturities on Long-Term Debt Outstanding

Maturities on long-term debt outstanding at March 31, 2014 are as follows:

Fiscal year ending
December 31,
(in thousands)
2014	$	38,441
2015		65,055
2016		70,969
2017		70,969
2018		233,078
Thereafter		300,000
Total	$	778,512

Carrying Value of Senior Notes

The fair value of our Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The fair value of our Senior Notes approximates the carrying value at March 31, 2014.

	As of March 31,		As of December 31,
(in thousands)	2014		2013
Term credit facility	$	446,512	$	455,383
Revolving credit facility		32,000		—
6.375% Senior Notes, due August 2020		300,000		300,000
Total debt		778,512		755,383
Less current portion of term credit facility		53,227		47,313
Total long-term debt	$	725,285	$	708,070

XML

Summary of Nonvested Transaction Restricted Share Awards Issued under Stock Incentive Plan and Changes During Period (Detail) (S1 2003 Stock Incentive Plan, USD $)	3 Months Ended
	Mar. 31, 2014
S1 2003 Stock Incentive Plan
Number of Restricted Share Awards
Beginning Balance	19,184
Forfeited	(2,987)
Ending Balance	16,197
Weighted-Average Grant Date Fair Value
Beginning Balance	$ 35.41
Forfeited	$ 35.41
Ending Balance	$ 35.41

XML

Carrying Value of Senior Notes (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total debt	$ 778,512	$ 755,383
Less current portion of term credit facility	53,227	47,313
Total long-term debt	725,285	708,070
Term credit facility
Debt Instrument [Line Items]
Total debt	446,512	455,383
Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	32,000
6.375% Senior Notes, due August 2020
Debt Instrument [Line Items]
Total debt	$ 300,000	$ 300,000

XML

Acquisitions - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended	3 Months Ended	0 Months Ended		3 Months Ended	0 Months Ended			3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013 Entity	Mar. 31, 2014 New Senior Secured Credit Facilities	Nov. 05, 2013 Official Payments Holdings, Inc.	Mar. 11, 2013 Online Resources Corporation	Mar. 31, 2013 Online Resources Corporation	Mar. 11, 2013 Online Resources Corporation Series A-1 Convertible Preferred Stock	Mar. 31, 2013 Profesionales en Transacciones Electronicas S.A. - Venezuela ("PTESA-V")	Mar. 31, 2013 Profesionales en Transacciones Electronicas S.A. - Ecuador ("PTESA-E")	Mar. 31, 2013 Profesionales En Transacciones Electronicas Venezuela And Ecuador	Mar. 31, 2013 Profesionales en Transacciones Electronicas S.A. - Colombia ("PTESA-C")	Mar. 31, 2013 Profesionales en Transacciones Electronicas S.A	Mar. 31, 2014 Official Payments Holdings, Inc. and Online Resources Corporation
Business Acquisition [Line Items]
Total purchase price			$ 378,100,000			$ 260,100,000					$ 2,800,000	$ 11,400,000	$ 14,200,000
Number of businesses acquired			3
Business acquisition cash paid					139,800,000
Cash paid per common stock					$ 8.35	$ 3.85
Amount Drawn from Revolving Credit Facility to pay for acquisition	40,000,000				40,000,000
Business acquisition common stock purchase price						132,900,000
Business acquisition preferred stock purchase price								127,200,000
Additional borrowings under credit facility				300,000,000
Percentage of ownership interest acquired									100.00%	100.00%
Purchase price, non tax deductible goodwill amount													1,500,000
Revenue							8,800,000							71,700,000
Operating income (loss)	$ 291,000	$ (4,009,000)					$ (1,100,000)							$ 8,700,000

XML

Carrying Amount and Accumulated Amortization of Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 303,751	$ 302,654
Accumulated Amortization	(71,698)	(64,961)
Net Balance	232,053	237,693
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	280,295	277,356
Accumulated Amortization	(55,152)	(49,410)
Net Balance	225,143	227,946
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,138	13,995
Accumulated Amortization	(5,333)	(4,383)
Net Balance	6,805	9,612
Covenant not to compete
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	438	438
Accumulated Amortization	(333)	(303)
Net Balance	105	135
Purchased contracts
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,880	10,865
Accumulated Amortization	(10,880)	(10,865)
Net Balance

XML

Selected Segment Financial Data, Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Revenues	$ 221,473	$ 161,997
Income (loss) before income taxes	(9,742)	(4,610)
Americas | Operating Segments
Segment Reporting Information [Line Items]
Revenues	154,769	94,313
Income (loss) before income taxes	16,281	12,967
EMEA | Operating Segments
Segment Reporting Information [Line Items]
Revenues	47,461	47,571
Income (loss) before income taxes	17,510	15,055
Asia/Pacific | Operating Segments
Segment Reporting Information [Line Items]
Revenues	19,243	20,113
Income (loss) before income taxes	5,579	5,840
Corporate | Corporate, Non-Segment
Segment Reporting Information [Line Items]
Income (loss) before income taxes	$ (49,112)	$ (38,472)

XML

Summary of Transactions Stock Options Issued Pursuant to Stock Incentive Plans (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014
Number of Shares
Outstanding, Beginning Balance	2,469,607
Exercised	(120,577)
Cancelled	(12,057)
Outstanding, Ending Balance	2,346,017
Number of Shares Exercisable, Ending Balance	1,665,677
Weighted-Average Exercise Price
Beginning Balance	$ 33.07
Exercised	$ 23.90
Cancelled	$ 54.47
Ending Balance	$ 33.54
Weighted Average Exercise Price Exercisable, Ending Balance	$ 26.74
Weighted-Average Remaining Contractual Term (Years)
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period	5 years 8 months 9 days
Weighted Average Remaining Contractual Term (Years), Exercisable as of end of period	4 years 3 months 22 days
Aggregate Intrinsic Value of In-the-Money Options
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period	$ 60,959,472
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period	54,047,694
Online Resources Corporation
Number of Shares
Outstanding, Beginning Balance	20,815
Exercised	(121)
Cancelled	(2,757)
Outstanding, Ending Balance	17,937
Number of Shares Exercisable, Ending Balance	17,937
Weighted-Average Exercise Price
Beginning Balance	$ 105.09
Exercised	$ 41.76
Cancelled	$ 101.35
Ending Balance	$ 106.09
Weighted Average Exercise Price Exercisable, Ending Balance	$ 106.09
Weighted-Average Remaining Contractual Term (Years)
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period	2 years 1 month 2 days
Weighted Average Remaining Contractual Term (Years), Exercisable as of end of period	2 years 1 month 2 days
Aggregate Intrinsic Value of In-the-Money Options
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period	45,667
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period	$ 45,667

XML

Condensed Consolidated Financial Statements

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Condensed Consolidated Financial Statements

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, 2014, and for the three months ended March 31, 2014 and 2013, 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, 2013 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, 2013, filed on February 28, 2014. Results for the three months ended March 31, 2014 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 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.

Cash and cash equivalents

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).

Receivables, net

Receivables represent amounts billed and amounts earned that are to be billed in the near future. Included in accrued receivables are services and software hosting revenues earned in the current period but billed in the following period as well as license revenues that are determined to be fixed and determinable but billed in future periods.

	March 31,			December 31,
(in thousands)	2014			2013
Billed Receivables	$	177,860		$	173,100
Allowance for doubtful accounts		(4,149	)		(4,459	)
Billed, net		173,711			168,641
Accrued Receivables		29,889			34,934
Receivables, net	$	203,600		$	203,575

Other Current Assets and Other Current Liabilities

	March 31,		December 31,
(in thousands)	2014		2013
Settlement deposits	$	19,933	$	27,770
Settlement receivables		14,104		20,119
Current debt issuance costs		5,181		5,276
Other		11,738		12,163
Total other current assets	$	50,956	$	65,328
	March 31,		December 31,
(in thousands)	2014		2013
Settlement payables	$	30,679	$	42,841
Accrued interest		2,447		7,074
Vendor financed licenses		6,611		6,410
Royalties payable		5,128		5,627
Other		25,953		33,064
Total other current liabilities	$	70,818	$	95,016

Individuals and businesses settle their obligations to the Company’s various clients, primarily utility and other public sector clients, using credit or debit cards or via ACH payments. The Company creates a receivable for the amount due from the credit or debit card company and an offsetting payable to the client. Once confirmation is received that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may 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.

Off Balance Sheet Accounts

The Company also enters into agreements with certain clients to process payment funds on their behalf. When an automated clearing house 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 funds are received from the source at the same time as the funds are sent 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 are separate from the Company’s corporate assets. As the Company does not take ownership of the funds, those 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 off balance sheet settlement funds as of March 31, 2014 and December 31, 2013 were $214.8 million and $284.0 million, respectively.

Accumulated Other Comprehensive Loss

The $20.4 million and $23.3 million accumulated other comprehensive loss included in the Company’s consolidated balance sheets as of March 31, 2014 and December 31, 2013, respectively, represents the accumulated foreign currency translation adjustment. Since the undistributed earnings of the Company’s foreign subsidiaries are considered to be permanently reinvested, the components of accumulated other comprehensive loss have not been tax effected.

Goodwill

Changes in the carrying amount of goodwill attributable to each reporting unit with goodwill balances during the three months ended March 31, 2014 were as follows:

(in thousands)	Americas			EMEA		Asia/Pacific		Total
Gross Balance prior to December 31, 2013	$	488,698		$	160,158	$	67,793	$	716,649
Total impairment prior to December 31, 2013		(47,432	)		—		—		(47,432	)
Balance, December 31, 2013		441,266			160,158		67,793		669,217
Goodwill from acquisitions (1)		(5,026	)		—		—		(5,026	)
Foreign currency translation adjustments		(153	)		163		1,205		1,215
Balance, March 31, 2014	$	436,087		$	160,321	$	68,998	$	665,406

(1) Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisitions of Official Payments Holdings, Inc. (“OPAY”), Online Resources Corporation (“ORCC”), and Profesionales en Transacciones Electronicas S.A. (“PTESA”) as discussed in Note 2. The purchase price allocation for OPAY is preliminary as of March 31, 2014 and accordingly is subject to future changes during the maximum one-year allocation period.

In accordance with ASC 350, Intangibles – Goodwill and Other, we assess goodwill for impairment annually during the fourth quarter of our 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. We evaluate goodwill at the reporting unit level and have identified our reportable segments, Americas, EMEA, and Asia/Pacific, as our reporting units. Recoverability of goodwill is measured using a discounted cash flow 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 our October 1, 2013 annual impairment test and there have been no indications of impairment in the subsequent periods.

Revenue

Vendor Specific Objective Evidence (“VSOE”)

ASC 985-605 requires the seller of software that includes post contract customer support (maintenance or “PCS”) to establish VSOE of fair value of the undelivered element of the contract in order to account separately for the PCS revenue. The Company has traditionally established VSOE of the fair value of PCS by reference to stated renewals, expressed in dollar terms, or separate sales with consistent pricing of PCS expressed in percentage terms. In determining whether a stated renewal is not substantive, the Company considers factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal rate is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is consistent, the Company considers the population of separate sales that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period.

Effective July 2013, the Company establishes VSOE of fair value of PCS by reference to stated renewals for all identified marked segments. The Company continues to consider factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is significantly below the Company’s normal pricing practice, the Company considers the population of stated renewal rates that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period. The change in estimation methodology does not have a material effect on our financial statements.

Certain of the Company’s software license arrangements include PCS terms that fail to achieve VSOE of fair value due to non-substantive renewal periods or non-substantive PCS renewal amounts. For these arrangements, VSOE of fair value of PCS does not exist and revenues for the software license, PCS and services, if applicable, are considered to be one accounting unit and are therefore recognized ratably over the longer of the contractual service term or PCS term once the delivery of both services has commenced. The Company typically classifies revenues associated with these arrangements in accordance with the contractually specified amounts, which approximate fair value assigned to the various elements, including software license fees, maintenance fees and services, if applicable.

This allocation methodology has been applied to the following amounts included in revenues in the condensed consolidated statements of operations from arrangements for which VSOE of fair value does not exist for each undelivered element:

	Three Months Ended
	March 31,
(in thousands)	2014		2013
Software license fees	$	6,856	$	5,801
Maintenance fees		2,216		2,321
Services		8		3
Total	$	9,080	$	8,125

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Selected Segment Financial Data, Revenues and Income (Loss) Before Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Assets	$ 1,640,002	$ 1,681,851
EMEA | Operating Segments
Segment Reporting Information [Line Items]
Assets	383,160	380,320
Asia/Pacific | Operating Segments
Segment Reporting Information [Line Items]
Assets	128,994	132,472
Americas - United States | Operating Segments
Segment Reporting Information [Line Items]
Assets	1,091,588	1,129,064
Americas - Other | Operating Segments
Segment Reporting Information [Line Items]
Assets	$ 36,260	$ 39,995

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Carrying Value of Senior Notes (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2014
Debt Instrument [Line Items]
Maturity date of senior notes	Aug. 15, 2020
6.375% Senior Notes, due August 2020
Debt Instrument [Line Items]
Percentage of interest rate on notes	6.375%
Maturity date of senior notes	Aug. 15, 2020

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings Per Share

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

	Three Months Ended
	March 31,
	2014		2013
Weighted average shares outstanding:
Basic weighted average shares outstanding		38,411		39,465
Add: Dilutive effect of stock options and restricted stock awards		—		—
Diluted weighted average shares outstanding		38,411		39,465

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Corporate Restructuring and Other Organizational Changes (Tables)

3 Months Ended

Mar. 31, 2014

Restructuring And Related Activities [Abstract]

Components of Corporate Restructuring and Other Reorganization Activities from Recent Acquisitions

The components of corporate restructuring and other reorganization activities from the recent acquisitions are included in the following table:

				Facility
(in thousands)	Severance			Closures			Total
Balance, December 31, 2013	$	1,470		$	1,871		$	3,341
Restructuring charges incurred		1,822			(196	)		1,626
Amounts paid during the period		(1,608	)		(564	)		(2,172	)
Foreign currency translation		(13	)		—			(13	)
Balance, March 31, 2014	$	1,671		$	1,111		$	2,782

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Common Stock and Treasury Stock - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended	12 Months Ended	27 Months Ended			1 Months Ended	3 Months Ended
	Feb. 29, 2012	Mar. 31, 2014	Dec. 31, 2011	Dec. 31, 2013	Feb. 28, 2014	Jul. 31, 2013	Sep. 13, 2012 Maximum	Mar. 31, 2014 Maximum
Maximum stock authorized to purchase under stock repurchase program	$ 262,100,000		$ 210,000,000				$ 113,000,000
Increase in maximum stock authorized to purchase under stock repurchase program	52,100,000				100,000,000	100,000,000
Stock authorized to purchase under stock repurchase program, shares							2,500,000
Repurchase of common stock, shares		1,192,809		12,369,489
Repurchase of common stock, value		70,000,000		395,800,000
Remaining value of shares authorized for purchase under the stock repurchase program								$ 138,300,000

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Stock-Based Compensation Plans - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under ESPP	10,782	9,606
Incentive plan, percentage of options expected to vest over the vesting period	93.90%
Incentive plan, weighted-average grant date fair value of stock options granted	$ 27.05	$ 21.73
Incentive plan, total intrinsic value of stock options exercised	$ 4,700,000	$ 4,300,000
Dividend yield
Stock-based compensation expenses	4,772,000	3,950,000
Stock-based compensation expenses tax benefits	1,800,000	1,500,000
Proceeds from exercises of stock options	2,887,000	3,864,000
Actual tax benefit realized from tax deductions of option exercises	1,800,000	1,600,000
Employee Stock Purchase Plan 1999
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock reserved for issuance	1,500,000
Permitted designation for purchase of common stock under ESPP	Participating employees are permitted to designate up to the lesser of $25,000 or 10% of their annual base compensation for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter.
Employee participating annual base compensation designated for purchase of common stock, amount	25,000
Employee participating annual base compensation designated for purchase of common stock, percent	10.00%
Price of common stock purchased under ESPP, description	The price for shares of common stock purchased under the ESPP is 85% of the stock's fair market value on the last business day of the three-month participation period.
Price of common stock purchased under ESPP, percent	85.00%
Restricted share awards (RSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares awards, shares vested	334
Restricted shares withheld to pay employees' portion of minimum payroll withholding taxes	125
Unrecognized compensation costs	1,900,000
Unrecognized compensation costs, weighted-average recognition periods	1 year 7 months 6 days
Restricted share awards (RSAs) | S1 Corporation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted requisite service period	4 years
Restricted share awards, vesting increments on anniversary dates of grants	25.00%
Vesting percentage if employee is terminated without cause within 12 months from acquisition date	100.00%
LTIP Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares awards, shares vested	211,881
Restricted shares withheld to pay employees' portion of minimum payroll withholding taxes	76,093
Unrecognized compensation costs	19,500,000
Unrecognized compensation costs, weighted-average recognition periods	2 years 3 months 18 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 11,600,000
Unrecognized compensation costs, weighted-average recognition periods	2 years 2 months 12 days

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Other, net (Tables)

3 Months Ended

Mar. 31, 2014

Other Income And Expenses [Abstract]

Other, Net

Other, net is comprised of the following items:

	Three Months Ended
	March 31,
(in thousands)	2014			2013
Foreign currency transaction gains (losses)	$	(949	)	$	3,466
Other		(108	)		(301	)
Total	$	(1,057	)	$	3,165

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Selected Segment Financial Data, Revenues and Income (Loss) Before Income Taxes

The following is selected segment financial data for the periods indicated:

	Three Months Ended
	March 31,
(in thousands)	2014			2013
Revenues:
Americas	$	154,769		$	94,313
EMEA		47,461			47,571
Asia/Pacific		19,243			20,113
	$	221,473		$	161,997
Income (loss) before income taxes:
Americas	$	16,281		$	12,967
EMEA		17,510			15,055
Asia/Pacific		5,579			5,840
Corporate		(49,112	)		(38,472	)
	$	(9,742	)	$	(4,610	)

Selected Segment Financial Data, Assets

	March 31,		December 31,
(in thousands)	2014		2013
Total assets:
Americas—United States	$	1,091,588	$	1,129,064
Americas—Other		36,260		39,995
EMEA		383,160		380,320
Asia/Pacific		128,994		132,472
	$	1,640,002	$	1,681,851

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net loss	$ (5,775)	$ (2,166)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation	5,324	3,764
Amortization	15,282	10,422
Amortization of deferred debt issuance costs	1,348	960
Deferred income taxes	(11,277)	(6,096)
Stock-based compensation expense	4,772	3,950
Excess tax benefit of stock options exercised	(4,070)	(1,308)
Other	(63)	559
Changes in operating assets and liabilities, net of impact of acquisitions:
Receivables	(3,123)	30,671
Accounts payable	(1,480)	(9,215)
Accrued employee compensation	(3,580)	(12,281)
Current income taxes	6,166	4,278
Deferred revenue	26,896	15,938
Other current and noncurrent assets and liabilities	(15,163)	(4,549)
Net cash flows from operating activities	15,257	34,927
Cash flows from investing activities:
Purchases of property and equipment	(4,228)	(6,241)
Purchases of software and distribution rights	(3,580)	(2,764)
Acquisition of businesses, net of cash acquired		(264,202)
Net cash flows from investing activities	(7,808)	(273,207)
Cash flows from financing activities:
Proceeds from issuance of common stock	652	475
Proceeds from exercises of stock options	2,887	3,864
Excess tax benefit of stock options exercised	4,070	1,308
Repurchases of common stock	(70,000)
Repurchase of restricted stock and performance shares for tax withholdings	(4,503)	(5,520)
Proceeds from term portion of credit agreement		300,000
Proceeds from revolving credit facility	40,000
Repayment of revolving credit facility	(8,000)
Repayment of term portion of credit agreement	(8,871)	(3,750)
Payments on other debt and capital leases	(382)	(8,338)
Payment for debt issuance costs	(163)	(9,272)
Net cash flows from financing activities	(44,310)	278,767
Effect of exchange rate fluctuations on cash	738	(4,332)
Net increase (decrease) in cash and cash equivalents	(36,123)	36,155
Cash and cash equivalents, beginning of period	95,059	76,329
Cash and cash equivalents, end of period	58,936	112,484
Supplemental cash flow information
Income taxes paid, net	5,114	1,398
Interest paid	$ 12,394	$ 2,847

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Receivables and Concentration of Credit Risk (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Billed Receivables	$ 177,860	$ 173,100
Allowance for doubtful accounts	(4,149)	(4,459)
Billed, net	173,711	168,641
Accrued Receivables	29,889	34,934
Receivables, net	$ 203,600	$ 203,575

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Debt - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended			0 Months Ended			0 Months Ended		0 Months Ended
	Mar. 31, 2014	Mar. 31, 2014 Minimum	Mar. 31, 2014 Maximum	Aug. 20, 2013 Fourth Amendment	Aug. 20, 2013 Senior Notes	Mar. 31, 2014 Senior Notes	Nov. 10, 2011 Revolving Credit Facility	Mar. 31, 2014 Revolving Credit Facility	Nov. 10, 2011 Term Credit Facility	Mar. 31, 2014 Term Credit Facility	Mar. 31, 2014 Parent Company and Domestic Subsidiaries	Mar. 31, 2014 Foreign Subsidiaries
Debt Instrument [Line Items]
Line of credit facility amount outstanding								$ 32.0		$ 446.5
Senior notes amount outstanding					300.0	300.0
Unused borrowings								218
Credit facilities, maximum borrowing capacity							250		500
Credit facilities, maturity							5 years		5 years
Borrowing under credit facility after amendment				$ 300
Credit Facility maturity date	Aug. 20, 2018			Aug. 20, 2018
Percentage of interest rate on notes				6.375%	6.375%
Credit facility, interest rate description	The applicable margin for borrowings under the Revolving Credit Facility is, based on the calculation of the applicable consolidated total leverage ratio, between 0.50% to 1.50% with respect to base rate borrowings and between 1.50% and 2.50% with respect to LIBOR based borrowings. Interest is due and payable monthly. The interest rate in effect at March 31, 2014 for the Credit Facility was 2.41%.
Credit facility, interest rate margin above federal fund rate	0.50%
Credit facility, interest rate margin above one-month LIBOR rate	1.00%
Credit facility, interest rate margin above base rate		0.50%	1.50%
Credit facility, interest rate margin above LIBOR rate		1.50%	2.50%
Credit facility, borrowing rate	2.41%
Issue price percentage of senior notes of the principal amount					100.00%
Maturity date of senior notes	Aug. 15, 2020				Aug. 15, 2020
Percentage of capital stock pledged as collateral											100.00%	65.00%

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Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Software and Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Net Balance	$ 232,053	$ 237,693
Software
Finite-Lived Intangible Assets [Line Items]
Remainder of 2014	27,839
2015	31,507
2016	27,475
2017	21,818
2018	20,357
2019	18,469
Thereafter	45,665
Net Balance	193,130
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Remainder of 2014	17,184
2015	19,883
2016	18,729
2017	17,166
2018	16,656
2019	16,335
Thereafter	126,100
Net Balance	$ 232,053

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 58,936	$ 95,059
Receivables, net of allowances of $4,149 and $4,459, respectively	203,600	203,575
Deferred income taxes, net	71,051	47,593
Recoverable income taxes	2,927	2,258
Prepaid expenses	24,458	22,549
Other current assets	50,956	65,328
Total current assets	411,928	436,362
Property and equipment, net	55,988	57,347
Software, net	193,130	191,468
Goodwill	665,406	669,217
Intangible assets, net	232,053	237,693
Deferred income taxes, net	39,541	48,852
Other noncurrent assets	41,956	40,912
TOTAL ASSETS	1,640,002	1,681,851
Current liabilities
Accounts payable	41,882	43,658
Employee compensation	32,294	35,623
Current portion of long-term debt	53,227	47,313
Deferred revenue	149,972	122,045
Income taxes payable	4,121	1,192
Deferred income taxes, net	940	753
Other current liabilities	70,818	95,016
Total current liabilities	353,254	345,600
Noncurrent liabilities
Deferred revenue	45,259	45,656
Long-term debt	725,285	708,070
Deferred income taxes, net	10,208	11,000
Other noncurrent liabilities	27,396	27,831
Total liabilities	1,161,402	1,138,157
Commitments and contingencies (Note 12)
Stockholders' equity
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2014 and December 31, 2013
Common stock; $0.005 par value; 140,000,000 shares authorized; 46,606,796 shares issued at March 31, 2014 and December 31, 2013	232	232
Additional paid-in capital	544,720	543,163
Retained earnings	258,080	263,855
Treasury stock, at cost, 8,680,947 and 7,751,807 shares at March 31, 2014 and December 31, 2013, respectively	(304,018)	(240,241)
Accumulated other comprehensive loss	(20,414)	(23,315)
Total stockholders' equity	478,600	543,694
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,640,002	$ 1,681,851

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Summary of Stock Options Issued Pursuant to Stock Incentive Plans (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014
Number of Shares
Outstanding, Beginning Balance	2,469,607
Granted	9,044
Exercised	(120,577)
Forfeited	(12,057)
Outstanding, Ending Balance	2,346,017
Number of Shares Exercisable, Ending Balance	1,665,677
Weighted-Average Exercise Price
Beginning Balance	$ 33.07
Granted	$ 60.40
Exercised	$ 23.90
Forfeited	$ 54.47
Ending Balance	$ 33.54
Weighted Average Exercise Price Exercisable, Ending Balance	$ 26.74
Weighted-Average Remaining Contractual Term (Years)
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period	5 years 8 months 9 days
Weighted Average Remaining Contractual Term (Years), Exercisable as of end of period	4 years 3 months 22 days
Aggregate Intrinsic Value of In-the-Money Options
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period	$ 60,959,472
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period	$ 54,047,694

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CONDENSED CONSOLIDATED STATEMENT 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, 2013	$ 543,694	$ 232	$ 543,163	$ 263,855	$ (240,241)	$ (23,315)
Net loss	(5,775)			(5,775)
Other comprehensive income	2,901					2,901
Stock-based compensation	4,772		4,772
Shares issued and forfeited, net, under stock plans including income tax benefits, 339,887 shares	7,511		(3,215)		10,726
Repurchase of common stock, 1,192,809 shares	(70,000)				(70,000)
Repurchase of restricted stock and performance shares for tax withholdings, 76,218 shares	(4,503)				(4,503)
Ending Balance at Mar. 31, 2014	$ 478,600	$ 232	$ 544,720	$ 258,080	$ (304,018)	$ (20,414)

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Other, Net (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Other Income And Expenses [Abstract]
Foreign currency transaction gains (losses)	$ (949)	$ 3,466
Other	(108)	(301)
Total	$ (1,057)	$ 3,165

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Changes in Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Dec. 31, 2013
Goodwill [Line Items]
Gross Balance prior to the end of year			$ 716,649
Total impairment, beginning of period			(47,432)
Beginning Balance	669,217
Goodwill from acquisitions	(5,026)	[1]
Foreign currency translation adjustments	1,215
Ending Balance	665,406
Americas
Goodwill [Line Items]
Gross Balance prior to the end of year			488,698
Total impairment, beginning of period			(47,432)
Beginning Balance	441,266
Goodwill from acquisitions	(5,026)	[1]
Foreign currency translation adjustments	(153)
Ending Balance	436,087
EMEA
Goodwill [Line Items]
Gross Balance prior to the end of year			160,158
Total impairment, beginning of period
Beginning Balance	160,158
Goodwill from acquisitions		[1]
Foreign currency translation adjustments	163
Ending Balance	160,321
Asia/Pacific
Goodwill [Line Items]
Gross Balance prior to the end of year			67,793
Total impairment, beginning of period
Beginning Balance	67,793
Goodwill from acquisitions		[1]
Foreign currency translation adjustments	1,205
Ending Balance	$ 68,998

[1] Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisitions of Official Payments Holdings, Inc. ("OPAY"), Online Resources Corporation ("ORCC"), and Profesionales en Transacciones Electronicas S.A. ("PTESA") as discussed in Note 2. The purchase price allocation for OPAY is preliminary as of March 31, 2014 and accordingly is subject to future changes during the maximum one-year allocation period.

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Condensed Consolidated Financial Statements (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Cash and cash equivalents

Cash and cash equivalents

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).

Receivables, net

Receivables, net

Receivables represent amounts billed and amounts earned that are to be billed in the near future. Included in accrued receivables are services and software hosting revenues earned in the current period but billed in the following period as well as license revenues that are determined to be fixed and determinable but billed in future periods.

	March 31,			December 31,
(in thousands)	2014			2013
Billed Receivables	$	177,860		$	173,100
Allowance for doubtful accounts		(4,149	)		(4,459	)
Billed, net		173,711			168,641
Accrued Receivables		29,889			34,934
Receivables, net	$	203,600		$	203,575

Other Current Assets and Other Current Liabilities

Other Current Assets and Other Current Liabilities

	March 31,		December 31,
(in thousands)	2014		2013
Settlement deposits	$	19,933	$	27,770
Settlement receivables		14,104		20,119
Current debt issuance costs		5,181		5,276
Other		11,738		12,163
Total other current assets	$	50,956	$	65,328
	March 31,		December 31,
(in thousands)	2014		2013
Settlement payables	$	30,679	$	42,841
Accrued interest		2,447		7,074
Vendor financed licenses		6,611		6,410
Royalties payable		5,128		5,627
Other		25,953		33,064
Total other current liabilities	$	70,818	$	95,016

Off Balance Sheet Accounts

Off Balance Sheet Accounts

The Company also enters into agreements with certain clients to process payment funds on their behalf. When an automated clearing house 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 funds are received from the source at the same time as the funds are sent 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 are separate from the Company’s corporate assets. As the Company does not take ownership of the funds, those 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 off balance sheet settlement funds as of March 31, 2014 and December 31, 2013 were $214.8 million and $284.0 million, respectively.

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The $20.4 million and $23.3 million accumulated other comprehensive loss included in the Company’s consolidated balance sheets as of March 31, 2014 and December 31, 2013, respectively, represents the accumulated foreign currency translation adjustment. Since the undistributed earnings of the Company’s foreign subsidiaries are considered to be permanently reinvested, the components of accumulated other comprehensive loss have not been tax effected.

Goodwill

Goodwill

Changes in the carrying amount of goodwill attributable to each reporting unit with goodwill balances during the three months ended March 31, 2014 were as follows:

(in thousands)	Americas			EMEA		Asia/Pacific		Total
Gross Balance prior to December 31, 2013	$	488,698		$	160,158	$	67,793	$	716,649
Total impairment prior to December 31, 2013		(47,432	)		—		—		(47,432	)
Balance, December 31, 2013		441,266			160,158		67,793		669,217
Goodwill from acquisitions (1)		(5,026	)		—		—		(5,026	)
Foreign currency translation adjustments		(153	)		163		1,205		1,215
Balance, March 31, 2014	$	436,087		$	160,321	$	68,998	$	665,406

(1) Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisitions of Official Payments Holdings, Inc. (“OPAY”), Online Resources Corporation (“ORCC”), and Profesionales en Transacciones Electronicas S.A. (“PTESA”) as discussed in Note 2. The purchase price allocation for OPAY is preliminary as of March 31, 2014 and accordingly is subject to future changes during the maximum one-year allocation period.

In accordance with ASC 350, Intangibles – Goodwill and Other, we assess goodwill for impairment annually during the fourth quarter of our 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. We evaluate goodwill at the reporting unit level and have identified our reportable segments, Americas, EMEA, and Asia/Pacific, as our reporting units. Recoverability of goodwill is measured using a discounted cash flow 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 our October 1, 2013 annual impairment test and there have been no indications of impairment in the subsequent periods.

Revenue

Revenue

Vendor Specific Objective Evidence (“VSOE”)

ASC 985-605 requires the seller of software that includes post contract customer support (maintenance or “PCS”) to establish VSOE of fair value of the undelivered element of the contract in order to account separately for the PCS revenue. The Company has traditionally established VSOE of the fair value of PCS by reference to stated renewals, expressed in dollar terms, or separate sales with consistent pricing of PCS expressed in percentage terms. In determining whether a stated renewal is not substantive, the Company considers factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal rate is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is consistent, the Company considers the population of separate sales that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period.

Effective July 2013, the Company establishes VSOE of fair value of PCS by reference to stated renewals for all identified marked segments. The Company continues to consider factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is significantly below the Company’s normal pricing practice, the Company considers the population of stated renewal rates that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period. The change in estimation methodology does not have a material effect on our financial statements.

Certain of the Company’s software license arrangements include PCS terms that fail to achieve VSOE of fair value due to non-substantive renewal periods or non-substantive PCS renewal amounts. For these arrangements, VSOE of fair value of PCS does not exist and revenues for the software license, PCS and services, if applicable, are considered to be one accounting unit and are therefore recognized ratably over the longer of the contractual service term or PCS term once the delivery of both services has commenced. The Company typically classifies revenues associated with these arrangements in accordance with the contractually specified amounts, which approximate fair value assigned to the various elements, including software license fees, maintenance fees and services, if applicable.

This allocation methodology has been applied to the following amounts included in revenues in the condensed consolidated statements of operations from arrangements for which VSOE of fair value does not exist for each undelivered element:

	Three Months Ended
	March 31,
(in thousands)	2014		2013
Software license fees	$	6,856	$	5,801
Maintenance fees		2,216		2,321
Services		8		3
Total	$	9,080	$	8,125

Earnings per share

Basic earnings (loss) per share is computed on the basis of weighted average outstanding common shares. Diluted earnings (loss) per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities.

Segment Information

The Company’s chief operating decision maker, together with other senior management personnel, currently focus their review of consolidated financial information and the allocation of resources based on reporting of operating results, including revenues and operating income (loss), for the geographic regions of the Americas, EMEA and Asia/Pacific and the Corporate line item. The Company’s products are sold and supported through distribution networks covering these three geographic regions, with each distribution network having its own sales force. The Company supplements its distribution networks with independent reseller and/or distributor arrangements. All administrative costs that are not directly attributable or reasonably allocable to a geographic segment are tracked in the Corporate line item. As such, the Company has concluded that its three geographic regions are its reportable segments.

The Company allocates segment support expenses such as global product development, business operations, and product management based upon percentage of revenue per segment. Depreciation and amortization costs are allocated as a percentage of the headcount by segment. The Corporate line item consists of the corporate overhead costs that are not allocated to reportable segments. Corporate overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity and amortization of acquisition-related intangibles and other costs that are not considered when management evaluates segment performance.

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Revenues in Condensed Consolidated Statements of Operations from Arrangements for which Vendor-Specific Objective Evidence of Fair Value Does Not Exist for Each Undelivered Element (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenue Recognition, Milestone Method [Line Items]
Software license fees	$ 35,702	$ 41,356
Maintenance fees	62,499	58,634
Services	22,588	23,929
Total revenues	221,473	161,997
Vendor Specific Objective Evidence of Fair Value
Revenue Recognition, Milestone Method [Line Items]
Software license fees	6,856	5,801
Maintenance fees	2,216	2,321
Services	8	3
Total revenues	$ 9,080	$ 8,125

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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Preliminary Purchase Price Allocation

In connection with the acquisitions, the Company recorded the following amounts based upon its purchase price allocations as of March 31, 2014. The purchase price allocation for OPAY is considered preliminary and is subject to completion of valuations and other analyses

			Official		Online
(in thousands, except weighted	Weighted-Average		Payments		Resources
average useful lives)	Useful Lives		Holdings, Inc.		Corporation		PTESA
Current assets:
Cash and cash equivalents			$	25,871	$	9,930	$	193
Billed and accrued receivables, net				2,858		19,394		327
Deferred income taxes, net				2,443		11,726		—
Other current assets				27,766		17,643		95
Total current assets acquired				58,938		58,693		615
Noncurrent assets:
Property and equipment				8,141		7,335		6
Goodwill				38,715		122,247		7,113
Software		10 years		26,013		62,215		7,732
Customer relationships		14 -15 years		49,900		68,750		—
Trademarks		3 - 5 years		3,200		3,050		—
Other noncurrent assets				5,673		459		7
Total assets acquired				190,580		322,749		15,473
Current liabilities:
Accounts payable				8,869		15,394		341
Accrued employee compensation				15,006		10,549		261
Note payable				—		7,500		—
Other current liabilities				26,095		7,559		—
Total current liabilities acquired				49,970		41,002		602
Noncurrent liabilities:
Deferred income taxes, net				—		18,290		225
Other noncurrent liabilities acquired
				828		3,339		439
Total liabilities acquired				50,798		62,631		1,266
Net assets acquired			$	139,782	$	260,118	$	14,207

Pro Forma Results of Combined Company Operations

The pro forma financial information in the table below presents the combined results of operations for ACI, ORCC and OPAY as if the acquisitions had occurred January 1, 2012 (in thousands, except per share data). 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 transactions 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, nor is it necessarily indicative of future results 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, 2013 to give effect to estimated adjustments to expenses to remove the amortization on eliminated OPAY and ORCC historical identifiable intangible assets and add amortization expense for the value of identified intangibles acquired in the acquisitions (primarily acquired software, customer relationships, trade names, and covenants not to compete), adjustments to interest expense to reflect the elimination of preexisting OPAY and ORCC debt and add estimated interest expense on the Company’s additional Term Credit Facility borrowings and to eliminate share-based compensation expense for eliminated positions. Additionally, certain transaction expenses that are a direct result of the acquisitions have been excluded from the three months ended March 31, 2013.

	Pro Forma Results of
	Operations for the Three
	Months Ended
(in thousands, except per share data)	March 31, 2013
Total Revenues	$	228,160
Net loss		(3,325	)
Loss per share
Basic	$	(0.08	)
Diluted	$	(0.08	)

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CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2014
Statement Of Stockholders Equity [Abstract]
Shares issued and forfeited, net, under stock plans including income tax benefits, shares	339,887
Repurchase of common stock, shares	1,192,809
Repurchase of restricted stock and performance shares for tax withholdings, shares	76,218

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]
Receivables, allowances	$ 4,149	$ 4,459
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.005	$ 0.005
Common stock, shares authorized	140,000,000	140,000,000
Common stock, shares issued	46,606,796	46,606,796
Treasury stock, shares	8,680,947	7,751,807

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Other, net

3 Months Ended

Mar. 31, 2014

Other Income And Expenses [Abstract]

Other, net

9. Other, net

Other, net is comprised of the following items:

	Three Months Ended
	March 31,
(in thousands)	2014			2013
Foreign currency transaction gains (losses)	$	(949	)	$	3,466
Other		(108	)		(301	)
Total	$	(1,057	)	$	3,165

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 28, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	ACIW
Entity Registrant Name	ACI WORLDWIDE, INC.
Entity Central Index Key	0000935036
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		37,925,346

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Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

10. Segment Information

The Company’s chief operating decision maker, together with other senior management personnel, currently focus their review of consolidated financial information and the allocation of resources based on reporting of operating results, including revenues and operating income (loss), for the geographic regions of the Americas, EMEA and Asia/Pacific and the Corporate line item. The Company’s products are sold and supported through distribution networks covering these three geographic regions, with each distribution network having its own sales force. The Company supplements its distribution networks with independent reseller and/or distributor arrangements. All administrative costs that are not directly attributable or reasonably allocable to a geographic segment are tracked in the Corporate line item. As such, the Company has concluded that its three geographic regions are its reportable segments.

The Company allocates segment support expenses such as global product development, business operations, and product management based upon percentage of revenue per segment. Depreciation and amortization costs are allocated as a percentage of the headcount by segment. The Corporate line item consists of the corporate overhead costs that are not allocated to reportable segments. Corporate overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity and amortization of acquisition-related intangibles and other costs that are not considered when management evaluates segment performance.

The following is selected segment financial data for the periods indicated:

	Three Months Ended
	March 31,
(in thousands)	2014			2013
Revenues:
Americas	$	154,769		$	94,313
EMEA		47,461			47,571
Asia/Pacific		19,243			20,113
	$	221,473		$	161,997
Income (loss) before income taxes:
Americas	$	16,281		$	12,967
EMEA		17,510			15,055
Asia/Pacific		5,579			5,840
Corporate		(49,112	)		(38,472	)
	$	(9,742	)	$	(4,610	)

	March 31,		December 31,
(in thousands)	2014		2013
Total assets:
Americas—United States	$	1,091,588	$	1,129,064
Americas—Other		36,260		39,995
EMEA		383,160		380,320
Asia/Pacific		128,994		132,472
	$	1,640,002	$	1,681,851

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three months ended March 31, 2014 and 2013. 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, 2014 and 2013.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Revenues
License	$ 35,702		$ 41,356
Maintenance	62,499		58,634
Services	22,588		23,929
Hosting	100,684		38,078
Total revenues	221,473		161,997
Operating expenses
Cost of license	5,736	[1]	5,918	[1]
Cost of maintenance, services and hosting	107,887	[1]	61,871	[1]
Research and development	37,456		37,149
Selling and marketing	27,909		25,074
General and administrative	25,116		25,037
Depreciation and amortization	17,078		10,957
Total operating expenses	221,182		166,006
Operating income (loss)	291		(4,009)
Other income (expense)
Interest expense	(9,175)		(3,897)
Interest income	199		131
Other, net	(1,057)		3,165
Total other income (expense)	(10,033)		(601)
Loss before income taxes	(9,742)		(4,610)
Income tax benefit	(3,967)		(2,444)
Net loss	$ (5,775)		$ (2,166)
Loss per common share
Basic	$ (0.15)		$ (0.05)
Diluted	$ (0.15)		$ (0.05)
Weighted average common shares outstanding
Basic	38,411		39,465
Diluted	38,411		39,465

[1] The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation.

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Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Plans

4. Stock-Based Compensation Plans

Employee Stock Purchase Plan

Under the Company’s 1999 Employee Stock Purchase Plan, as amended (the “ESPP”), a total of 1,500,000 shares of the Company’s common stock have been reserved for issuance to eligible employees. Participating employees are permitted to designate up to the lesser of $25,000 or 10% of their annual base compensation for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. The price for shares of common stock purchased under the ESPP is 85% of the stock’s fair market value on the last business day of the three-month participation period. Shares issued under the ESPP during the three months ended March 31, 2014 and 2013 totaled 10,782 and 9,606, respectively.

Stock-Based Payments

A summary of stock options issued pursuant to the Company’s stock incentive plans is as follows:

						Weighted-
				Weighted-		Average		Aggregate
				Average		Remaining		Intrinsic Value of
	Number of			Exercise		Contractual		In-the-Money
	Shares			Price		Term (Years)		Options
Outstanding as of December 31, 2013		2,469,607		$	33.07
Granted		9,044			60.40
Exercised		(120,577	)		23.90
Forfeited		(12,057	)		54.47
Outstanding as of March 31, 2014		2,346,017		$	33.54		5.69	$	60,959,472
Exercisable as of March 31, 2014		1,665,677		$	26.74		4.31	$	54,047,694

As of March 31, 2014, the Company expects that 93.9% of the options will vest over the vesting period.

The weighted-average grant date fair value of stock options granted during the three months ended March 31, 2014 and 2013 was $27.05 and $21.73, respectively. The Company issued treasury shares for the exercise of stock options during the three months ended March 31, 2014 and 2013. The total intrinsic value of stock options exercised during the three months ended March 31, 2014 and 2013 was $4.7 million and $4.3 million, respectively.

The fair value of options granted during the three months ended March 31, 2014 and 2013 was estimated on the date of grant using the Black-Scholes option-pricing model, a pricing model acceptable under U.S. GAAP, with the following weighted-average assumptions:

	Three Months Ended			Three Months Ended
	March 31, 2014			March 31, 2013
Expected life (years)		5.93			5.55
Interest rate		1.8	%		0.8	%
Volatility		45.2	%		50.0	%
Dividend yield		—			—

Expected volatilities are based on the Company’s historical common stock volatility derived from historical stock price data for historical periods commensurate with the options’ expected life. The expected life is the average number of years that the Company estimated that the options will be outstanding, based primarily on historical employee option exercise behavior. The risk-free interest rate is based on the implied yield currently available on United States Treasury zero coupon issues with a term equal to the expected term at the date of grant of the options. The expected dividend yield is zero as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future.

Stock Incentive Plan – ORCC Corporation Stock Incentive Plan, as amended and restated

In relation to the acquisition of ORCC discussed in Note 2, the Company amended the ORCC Stock Incentive Plan, as previously amended and restated (the “ORCC Incentive Plan”). Stock options were granted to ORCC employees by ORCC prior to acquisition by the Company under the ORCC Incentive Plan. Outstanding ORCC options were converted into ACI options in accordance with the terms of the Transaction Agreement. These are the only equity awards currently outstanding under the ORCC Incentive Plan and no further grants will be made.

A summary of transaction stock options issued pursuant to the Company’s stock incentive plans is as follows:

						Weighted-
				Weighted-		Average		Aggregate
				Average		Remaining		Intrinsic Value of
	Number of			Exercise		Contractual		In-the-Money
	Shares			Price		Term (Years)		Options
Outstanding as of December 31, 2013		20,815		$	105.09
Exercised		(121	)		41.76
Cancelled		(2,757	)		101.35
Outstanding as of March 31, 2014		17,937		$	106.09		2.09	$	45,667
Exercisable as of March 31, 2014		17,937		$	106.09		2.09	$	45,667

A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) outstanding as of March 31, 2014 and changes during the period are as follows:

	Number of			Weighted-
	Shares at			Average
	Expected			Grant Date
Nonvested LTIP Performance Shares	Attainment			Fair Value
Nonvested as of December 31, 2013		906,192		$	41.35
Granted		6,355			60.40
Forfeited		(12,870	)		47.14
Vested		(211,881	)		26.63
Change in attainment for 2010 grants		8,742			26.63
Nonvested as of March 31, 2014		696,538		$	45.71

During the three months ended March 31, 2014, 211,881 shares of the LTIPs vested. The Company withheld 76,093 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

A summary of nonvested restricted share awards (“RSAs”) as of March 31, 2014 and changes during the period are as follows:

	Number of
	Restricted			Weighted-Average Grant
Nonvested Restricted Share Awards	Share Awards			Date Fair Value
Nonvested as of December 31, 2013		48,355		$	44.74
Vested		(334	)		47.63
Forfeited		(487	)		61.54
Nonvested as of March 31, 2014		47,534		$	44.55

During the three months ended March 31, 2014, 334 shares of the RSAs vested. The Company withheld 125 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

Stock Incentive Plan – S1 Corporation 2003 Stock Incentive Plan, as amended and restated

In relation to the acquisition of S1 Corporation (“S1”) in 2012, the Company amended the S1 Corporation 2003 Stock Incentive Plan, as previously amended and restated (the “S1 2003 Incentive Plan”). Restricted share awards (“RSAs) were granted to S1 employees by S1 Corporation prior to the acquisition by the Company in accordance with the terms of the Transaction Agreement (“Transaction RSAs”) under the S1 2003 Incentive Plan. These are the only equity awards currently outstanding under the S1 2003 Incentive Plan and no further grants will be made.

Under the terms of the Transaction Agreement with S1, upon the acquisition, the S1 Transaction RSAs were converted to RSAs of the Company’s stock. These awards have requisite service periods of four years and vest in increments of 25% on the anniversary of the original grant date of November 9, 2011. If an employee was terminated without cause within 12 months from the acquisition date, the RSAs 100% vest. Stock is issued without direct cost to the employee. The RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period (vesting period) and the participant has voting rights for each share of common stock. The conversion of the Transaction RSAs was treated as a modification and as such, they were valued immediately prior to and after modification. The Company recognizes compensation expense for RSAs on a straight-line basis over the requisite service period. The incremental fair value as measure upon modification will be recognized on a straight-line basis from modification date through the end of the requisite service period.

A summary of nonvested Transaction RSAs issued under the S1 2003 Stock Incentive Plan as of March 31, 2014 and changes during the period are as follows:

	Number of
	Restricted			Weighted-Average Grant
Nonvested Transaction Restricted Share Awards	Share Awards			Date Fair Value
Nonvested as of December 31, 2013		19,184		$	35.41
Forfeited		(2,987	)		35.41
Nonvested as of March 31, 2014		16,197		$	35.41

As of March 31, 2014, there were unrecognized compensation costs of $11.6 million related to nonvested stock options, $1.9 million related to the nonvested RSAs, and $19.5 million related to the LTIP performance shares, which the Company expects to recognize over weighted-average periods of 2.2 years, 1.6 years and 2.3 years, respectively.

The Company recorded stock-based compensation expenses for the three months ended March 31, 2014 and 2013 related to stock options, LTIP performance shares, RSAs, and the ESPP of $4.8 million and $3.9 million, respectively, with corresponding tax benefits of $1.8 million and $1.5 million, respectively. Tax benefits in excess of the option’s grant date fair value are classified as financing cash flows. Estimated forfeiture rates, stratified by employee classification, have been included as part of the Company’s calculations of compensation costs. The Company recognizes compensation costs for stock option awards that vest with the passage of time with only service conditions on a straight-line basis over the requisite service period.

Cash received from option exercises for the three months ended March 31, 2014 and 2013 was $2.9 million and $3.9 million, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $1.8 million and $1.6 million for the three months ended March 31, 2014 and 2013, respectively.

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Debt

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Debt

3. Debt

As of March 31, 2014, the Company had $32.0 million, $446.5 million and $300.0 million outstanding under our Revolving Credit Facility, Term Credit Facility and Senior Notes, respectively, with up to $218 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended. The amount of unused borrowings actually available varies in accordance with the terms of the agreement.

Credit Agreement

The Company entered into the Credit Agreement (the “Credit Agreement”), as amended, with a syndicate of financial institutions, as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as Administrative Agent, providing for revolving loans, swingline loans, letters of credit and a term loan on November 10, 2011. The Credit Agreement consists of a five-year $250 million senior secured revolving credit facility (the “Revolving Credit Facility”), which includes a sublimit for the issuance of standby letters of credit and a sublimit for swingline loans, and a five-year $500 million senior secured term loan facility (the “Term Credit Facility” and, together with 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.

On August 20, 2013, upon the consummation of the offering of the 6.375% Senior Notes due in 2020 (the “Senior Notes”), the Fourth Amendment to the Credit Agreement originally entered into on November 10, 2011, became effective. The Fourth Amendment, among other things, extended the maturity date of the loans under the credit facility to August 20, 2018, and increased the amount the Company may request for optional incremental term loans and/or increases in the revolving commitment from $200 million to $300 million. The Fourth Amendment does not impact the interest rate schedule previously applied to the Credit Agreement.

Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the Company’s option, either (a) a base rate determined by reference to the highest of (1) the rate of interest per annum publicly announced by the Administrative Agent as its Prime Rate, (2) the federal funds effective rate plus 1/2 of 1% and (3) a LIBOR based 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 based rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus an applicable margin. The applicable margin for borrowings under the Revolving Credit Facility is, based on the calculation of the applicable consolidated total leverage ratio, between 0.50% to 1.50% with respect to base rate borrowings and between 1.50% and 2.50% with respect to LIBOR based borrowings. Interest is due and payable monthly. The interest rate in effect at March 31, 2014 for the Credit Facility was 2.41%.

In addition to paying interest on the outstanding principal under the Credit Facility, the Company is required to pay a commitment fee in respect of the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears. The Company is also required to pay 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 based borrowings under the Revolving Credit Facility on a per annum basis, payable quarterly in arrears, as well as customary fronting fees for the issuance of letters of credit fees and agency fees.

The Company is permitted to voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans under the Credit Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR based loans.

Senior Notes

On August 20, 2013, the Company completed a $300 million offering of Senior Notes at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The Senior Notes bear an interest rate of 6.375% per annum, payable semi-annually in arrears on August 15 and February 15 of each year, commencing on February 15, 2014. Interest began accruing on August 20, 2013. The Senior Notes will mature on August 15, 2020.

Maturities on long-term debt outstanding at March 31, 2014 are as follows:

Fiscal year ending
December 31,
(in thousands)
2014	$	38,441
2015		65,055
2016		70,969
2017		70,969
2018		233,078
Thereafter		300,000
Total	$	778,512

The Credit Agreement and Senior Notes also contain certain customary mandatory prepayment provisions. If certain events, as specified in the Credit Agreement or Senior Notes agreement, shall occur, the Company may be required to repay all or a portion of the amounts outstanding under the Credit Facility or Senior Notes.

The Credit Facility will mature on August 20, 2018 and the Senior Notes will mature on August 15, 2020. The Revolving Credit Facility and Senior Notes will not amortize and the Term Credit Facility will amortize, with principal payable in consecutive quarterly installments.

The Company’s obligations and the obligations of the guarantors under the Guaranty and cash management arrangements entered into with lenders under the Credit Facility (or affiliates thereof) 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 Corporation 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, and in each case, is subject to certain exclusions set forth in the credit documentation governing the Credit Facility.

The Credit Agreement and Senior 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. The Company is also required to maintain a consolidated leverage ratio at or below a specified amount and a consolidated fixed charge coverage ratio at or above a specified amount. If an event of default, as specified in the Credit Agreement and Senior Notes agreement, shall occur and be continuing, the Company may be required to repay all amounts outstanding under the Credit Facility and Senior Notes. As of March 31, 2014, and at all times during the period, the Company was in compliance with its financial debt covenants.

The fair value of our Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The fair value of our Senior Notes approximates the carrying value at March 31, 2014.

	As of March 31,		As of December 31,
(in thousands)	2014		2013
Term credit facility	$	446,512	$	455,383
Revolving credit facility		32,000		—
6.375% Senior Notes, due August 2020		300,000		300,000
Total debt		778,512		755,383
Less current portion of term credit facility		53,227		47,313
Total long-term debt	$	725,285	$	708,070

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Condensed Consolidated Financial Statements (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Receivables and Concentration of Credit Risk

Receivables represent amounts billed and amounts earned that are to be billed in the near future. Included in accrued receivables are services and software hosting revenues earned in the current period but billed in the following period as well as license revenues that are determined to be fixed and determinable but billed in future periods.

	March 31,			December 31,
(in thousands)	2014			2013
Billed Receivables	$	177,860		$	173,100
Allowance for doubtful accounts		(4,149	)		(4,459	)
Billed, net		173,711			168,641
Accrued Receivables		29,889			34,934
Receivables, net	$	203,600		$	203,575

Components of Other Current Assets and Other Current Liabilities

Other Current Assets and Other Current Liabilities

	March 31,		December 31,
(in thousands)	2014		2013
Settlement deposits	$	19,933	$	27,770
Settlement receivables		14,104		20,119
Current debt issuance costs		5,181		5,276
Other		11,738		12,163
Total other current assets	$	50,956	$	65,328
	March 31,		December 31,
(in thousands)	2014		2013
Settlement payables	$	30,679	$	42,841
Accrued interest		2,447		7,074
Vendor financed licenses		6,611		6,410
Royalties payable		5,128		5,627
Other		25,953		33,064
Total other current liabilities	$	70,818	$	95,016

Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill attributable to each reporting unit with goodwill balances during the three months ended March 31, 2014 were as follows:

(in thousands)	Americas			EMEA		Asia/Pacific		Total
Gross Balance prior to December 31, 2013	$	488,698		$	160,158	$	67,793	$	716,649
Total impairment prior to December 31, 2013		(47,432	)		—		—		(47,432	)
Balance, December 31, 2013		441,266			160,158		67,793		669,217
Goodwill from acquisitions (1)		(5,026	)		—		—		(5,026	)
Foreign currency translation adjustments		(153	)		163		1,205		1,215
Balance, March 31, 2014	$	436,087		$	160,321	$	68,998	$	665,406

(1) Goodwill from acquisitions relates to adjustments in the goodwill recorded for the acquisitions of Official Payments Holdings, Inc. (“OPAY”), Online Resources Corporation (“ORCC”), and Profesionales en Transacciones Electronicas S.A. (“PTESA”) as discussed in Note 2. The purchase price allocation for OPAY is preliminary as of March 31, 2014 and accordingly is subject to future changes during the maximum one-year allocation period.

Revenues in Condensed Consolidated Statements of Operations from Arrangements for which Vendor-Specific Objective Evidence of Fair Value Does Not Exist for Each Undelivered Element

This allocation methodology has been applied to the following amounts included in revenues in the condensed consolidated statements of operations from arrangements for which VSOE of fair value does not exist for each undelivered element:

	Three Months Ended
	March 31,
(in thousands)	2014		2013
Software license fees	$	6,856	$	5,801
Maintenance fees		2,216		2,321
Services		8		3
Total	$	9,080	$	8,125

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Income Taxes

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

The effective tax rate for the three months ended March 31, 2014 was a benefit of 40.7%. The earnings of the Company’s foreign entities for the three months ended March 31, 2014 were $5.6 million. The tax rates in the foreign jurisdictions in which the Company operates are less than the domestic tax rate. The effective tax rate for the three months ended March 31, 2014 was negatively impacted by losses in certain foreign jurisdictions taxed at lower rates, partially offset by profits in other foreign jurisdictions taxed at lower rates and domestic losses taxed at higher rates.

The effective tax rate for the three months ended March 31, 2013 was a benefit of 53.0%. The earnings of the Company’s foreign entities for the three months ended March 31, 2013 was $8.9 million. The tax rates in the foreign jurisdictions in which the Company operates are less than the Company’s domestic rate, therefore, losses in the foreign jurisdictions will have a negative impact on the Company’s effective tax rate, while earnings in the foreign jurisdictions will have a positive impact on the Company’s effective tax rate. The effective tax rate for the three months ended March 31, 2013 was positively impacted by foreign profits taxed at lower rates and a domestic loss taxed at a high rate as well as recognition of $1.4 million tax benefit as a result of implementing the 2012 American Taxpayer Relief Act. The effective tax rate for the three months ended March 31, 2013 was negatively impacted by acquisition related expenses that are not deductible for tax purposes as well as an increase in the valuation allowance against foreign tax credits as a result of the acquisition of ORCC.

The Company’s effective tax rate could fluctuate significantly on a quarterly basis and could be negatively affected to the extent earnings are lower in the countries in which it operates that have a lower statutory rate or higher in the countries in which it operates that have a higher statutory rate or to the extent it has losses sustained in countries where the future utilization of losses are uncertain. 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.

The amount of unrecognized tax benefits for uncertain tax positions was $14.8 million as of March 31, 2014 and $15.0 million as of December 31, 2013, excluding related liabilities for interest and penalties of $2.3 million as of March 31, 2014 and December 31, 2013.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $0.9 million, due to the settlement of various audits and the expiration of statutes of limitation.

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Common Stock and Treasury Stock

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Common Stock and Treasury Stock

7. Common Stock and Treasury Stock

As of December 31, 2011, the Company’s Board of Directors had approved a stock repurchase program authorizing the Company, from time to time as market and business conditions warrant, to acquire up to $210 million of its common stock. In February 2012, the Company’s Board of Directors approved an increase of $52.1 million to their current stock repurchase authorization, bringing the total authorization to $262.1 million.

On September 13, 2012, the Company’s Board of Directors approved the repurchase of up to 2,500,000 shares of the Company’s common stock, or up to $113.0 million in place of the remaining repurchase amounts previously authorized. In July 2013, the Company’s Board of Directors approved an additional $100 million for the stock repurchase program. In February 2014, the Company’s Board of Directors again approved an additional $100 million for the stock repurchase program.

The Company repurchased 1,192,809 shares for $70.0 million under the program during the three months ended March, 2014. Under the program to date, the Company has repurchased 12,369,489 shares for approximately $395.8 million. The maximum remaining authorized for purchase under the stock repurchase program was approximately $138.3 million as of March 31, 2014.

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Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Number of geographic regions considered as reportable operating segments	3
Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of revenues	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, 2014 and 2013.	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, 2014 and 2013.
Customer Concentration Risk
Segment Reporting Information [Line Items]
Percentage of revenues	No single customer accounted for more than 10% of the Company's consolidated revenues during the three months ended March 31, 2014 and 2013.	No single customer accounted for more than 10% of the Company's consolidated revenues during the three months ended March 31, 2014 and 2013.

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Software and Other Intangible Assets

3 Months Ended

Mar. 31, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Software and Other Intangible Assets

5. Software and Other Intangible Assets

At March 31, 2014, software net book value totaling $193.1 million, net of $103.2 million of accumulated amortization, includes the net book value of software marketed for external sale of $90.8 million. The remaining software net book value of $102.3 million is comprised of various software that has been acquired or developed for internal use.

Quarterly amortization of software marketed for external sale is computed using the greater of the ratio of current revenues to total estimated revenues expected to be derived from the software or the straight-line method over an estimated useful life of three to ten years. Software for resale amortization expense recorded in the three months ended March 31, 2014 and 2013 totaled $3.5 million and $3.2 million, respectively. These software amortization expense amounts are reflected in cost of software license fees in the condensed consolidated statements of operations.

Quarterly amortization of software for internal use is computed using the straight-line method over an estimated useful life of three to ten years. Software for internal use includes software acquired through acquisitions that is used to provide certain of our hosted offerings. Amortization of software for internal use of $5.2 million and $3.4 million for the three months ended March 31, 2014 and 2013, respectively, is included in depreciation and amortization in the condensed consolidated statements of operations.

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

	March 31, 2014							December 31, 2013
	Gross							Gross
	Carrying		Accumulated					Carrying		Accumulated
(in thousands)	Amount		Amortization			Net Balance		Amount		Amortization			Net Balance
Customer relationships	$	280,295	$	(55,152	)	$	225,143	$	277,356	$	(49,410	)	$	227,946
Trademarks and tradenames		12,138		(5,333	)		6,805		13,995		(4,383	)		9,612
Covenant not to compete		438		(333	)		105		438		(303	)		135
Purchased Contracts		10,880		(10,880	)		—		10,865		(10,865	)		—
	$	303,751	$	(71,698	)	$	232,053	$	302,654	$	(64,961	)	$	237,693

Other intangible assets amortization expense for the three months ended March 31, 2014 and 2013 totaled $6.5 million and $3.8 million, respectively.

Based on capitalized software and other intangible assets at March 31, 2014, estimated amortization expense for future fiscal years is as follows:

			Other
			Intangible
	Software		Assets
Fiscal Year Ending December 31,	Amortization		Amortization
(in thousands)
Remainder of 2014	$	27,839	$	17,184
2015		31,507		19,883
2016		27,475		18,729
2017		21,818		17,166
2018		20,357		16,656
2019		18,469		16,335
Thereafter		45,665		126,100
Total	$	193,130	$	232,053

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Corporate Restructuring and Other Organizational Changes

3 Months Ended

Mar. 31, 2014

Restructuring And Related Activities [Abstract]

Corporate Restructuring and Other Organizational Changes

6. Corporate Restructuring and Other Organizational Changes

2014 Activities

During the three months ended March 31, 2014, the Company reduced its headcount as a part of its integration of its recent acquisitions. In connection with these actions, approximately $1.8 million of termination costs were recognized in general and administrative expense in the accompanying condensed consolidated statements of operations during the three months ended March 31, 2014. The charges by segment were as follows: $1.7 million in the Americas segment, $0.1 million in the Asia/Pacific segment and less than $0.1 million in the EMEA segment. Approximately $1.6 million of termination costs were paid during the first quarter of 2014. The remaining liability is expected to be paid over the next 12 months.

2013 Activities

During the three months ended March 31, 2013, the Company reduced its headcount as a part of its integration of its recent acquisitions. In connection with these actions, approximately $1.6 million of termination costs were recognized in general and administrative expense in the accompanying condensed consolidated statements of operations during the three months ended March 31, 2013. The charges were all in the Americas segment.

The components of corporate restructuring and other reorganization activities from the recent acquisitions are included in the following table:

				Facility
(in thousands)	Severance			Closures			Total
Balance, December 31, 2013	$	1,470		$	1,871		$	3,341
Restructuring charges incurred		1,822			(196	)		1,626
Amounts paid during the period		(1,608	)		(564	)		(2,172	)
Foreign currency translation		(13	)		—			(13	)
Balance, March 31, 2014	$	1,671		$	1,111		$	2,782

The $1.7 million for unpaid severance is included in accrued employee compensation and the $1.1 million for unpaid facility closures is included in accrued and other current liabilities in the accompanying condensed consolidated balance sheet at March 31, 2014.

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Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

8. Earnings Per Share

Basic earnings (loss) per share is computed on the basis of weighted average outstanding common shares. Diluted earnings (loss) per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities.

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

	Three Months Ended
	March 31,
	2014		2013
Weighted average shares outstanding:
Basic weighted average shares outstanding		38,411		39,465
Add: Dilutive effect of stock options and restricted stock awards		—		—
Diluted weighted average shares outstanding		38,411		39,465

The diluted loss per share computation excludes 3.1 million and 3.8 million options to purchase shares, restricted share awards, and contingently issuable shares during the three months ended March 31, 2014 and 2013, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of March 31, 2014 and December 31, 2013 was 37,925,849 and 38,854,989, respectively.

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Subsequent Events - Additional Information (Detail)	3 Months Ended	0 Months Ended
	Mar. 31, 2014	Apr. 10, 2014 Subsequent Event
Subsequent Event [Line Items]
Stockholders equity, stock split	On April 10, 2014, the Company announced that its Board of Directors approved a three-for-one stock split effective through a dividend.
Stockholders equity, stock conversion ratio		3
Number of additional share for every outstanding share held	2

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Effective tax rate, benefit percentage	40.70%	53.00%
Earnings of foreign entities	$ 5.6	$ 8.9
Positive impact of uncertain tax positions on effective tax rate		1.4
Unrecognized tax benefit for uncertain tax positions	14.8		15.0
Accrued interest and penalties related to income tax liabilities	2.3		2.3
Decrease in unrecognized tax benefits due to expiration of statutes of limitations and settlement of various audits	$ 0.9

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Condensed Consolidated Financial Statements - Additional Information (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Amount of off balance sheet settlement funds	$ 214,800,000	$ 284,000,000
Accumulated other comprehensive loss	$ (20,414,000)	$ (23,315,000)

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Software and Other Intangible Assets - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Software, net	$ 193,130,000		$ 191,468,000
Software, accumulated amortization	103,200,000
Other intangible assets amortization expense	6,500,000	3,800,000
Software Marketed for External Sale
Finite-Lived Intangible Assets [Line Items]
Software, net	90,800,000
Software, amortization expense	3,500,000	3,200,000
Software Marketed for External Sale | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Software Marketed for External Sale | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years
Software Acquired or Developed for Internal Use
Finite-Lived Intangible Assets [Line Items]
Software, net	102,300,000
Software, amortization expense	$ 5,200,000	$ 3,400,000
Software Acquired or Developed for Internal Use | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Software Acquired or Developed for Internal Use | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years

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Subsequent Events

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

On April 10, 2014, the Company announced that its Board of Directors approved a three-for-one stock split effective through a dividend. Stockholders of record at the close of business on June 30, 2014 will receive two additional shares for every outstanding share held on the record date. The additional shares will be payable on July 10, 2014. This stock split is subject to stockholders approving an amendment to the Company’s certificate of incorporation to increase the number of authorized common shares. This stockholder approval is expected to be obtained at the June 18, 2014 annual meeting of stockholders.

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Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Stock Options Issued Pursuant to Stock Incentive Plans

A summary of stock options issued pursuant to the Company’s stock incentive plans is as follows:

						Weighted-
				Weighted-		Average		Aggregate
				Average		Remaining		Intrinsic Value of
	Number of			Exercise		Contractual		In-the-Money
	Shares			Price		Term (Years)		Options
Outstanding as of December 31, 2013		2,469,607		$	33.07
Granted		9,044			60.40
Exercised		(120,577	)		23.90
Forfeited		(12,057	)		54.47
Outstanding as of March 31, 2014		2,346,017		$	33.54		5.69	$	60,959,472
Exercisable as of March 31, 2014		1,665,677		$	26.74		4.31	$	54,047,694

Estimated Fair Value of Options Granted using Black-Scholes Option-Pricing Model with Weighted-Average Assumptions

The fair value of options granted during the three months ended March 31, 2014 and 2013 was estimated on the date of grant using the Black-Scholes option-pricing model, a pricing model acceptable under U.S. GAAP, with the following weighted-average assumptions:

	Three Months Ended			Three Months Ended
	March 31, 2014			March 31, 2013
Expected life (years)		5.93			5.55
Interest rate		1.8	%		0.8	%
Volatility		45.2	%		50.0	%
Dividend yield		—			—

Summary of Nonvested Long-Term Incentive Program Performance Share Awards Outstanding and Changes During Period

A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) outstanding as of March 31, 2014 and changes during the period are as follows:

	Number of			Weighted-
	Shares at			Average
	Expected			Grant Date
Nonvested LTIP Performance Shares	Attainment			Fair Value
Nonvested as of December 31, 2013		906,192		$	41.35
Granted		6,355			60.40
Forfeited		(12,870	)		47.14
Vested		(211,881	)		26.63
Change in attainment for 2010 grants		8,742			26.63
Nonvested as of March 31, 2014		696,538		$	45.71

Summary of Nonvested Restricted Share Awards and Changes During Period

A summary of nonvested restricted share awards (“RSAs”) as of March 31, 2014 and changes during the period are as follows:

	Number of
	Restricted			Weighted-Average Grant
Nonvested Restricted Share Awards	Share Awards			Date Fair Value
Nonvested as of December 31, 2013		48,355		$	44.74
Vested		(334	)		47.63
Forfeited		(487	)		61.54
Nonvested as of March 31, 2014		47,534		$	44.55

S1 2003 Stock Incentive Plan

Summary of Nonvested Restricted Share Awards and Changes During Period

A summary of nonvested Transaction RSAs issued under the S1 2003 Stock Incentive Plan as of March 31, 2014 and changes during the period are as follows:

	Number of
	Restricted			Weighted-Average Grant
Nonvested Transaction Restricted Share Awards	Share Awards			Date Fair Value
Nonvested as of December 31, 2013		19,184		$	35.41
Forfeited		(2,987	)		35.41
Nonvested as of March 31, 2014		16,197		$	35.41

Online Resources Corporation

Summary of Stock Options Issued Pursuant to Stock Incentive Plans

A summary of transaction stock options issued pursuant to the Company’s stock incentive plans is as follows:

						Weighted-
				Weighted-		Average		Aggregate
				Average		Remaining		Intrinsic Value of
	Number of			Exercise		Contractual		In-the-Money
	Shares			Price		Term (Years)		Options
Outstanding as of December 31, 2013		20,815		$	105.09
Exercised		(121	)		41.76
Cancelled		(2,757	)		101.35
Outstanding as of March 31, 2014		17,937		$	106.09		2.09	$	45,667
Exercisable as of March 31, 2014		17,937		$	106.09		2.09	$	45,667

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Summary of Nonvested Restricted Share Awards and Changes During Period (Detail) (Restricted share awards (RSAs), USD $)	3 Months Ended
	Mar. 31, 2014
Restricted share awards (RSAs)
Weighted-Average Grant Date Fair Value
Beginning Balance	48,355
Vested	(334)
Forfeited	(487)
Ending Balance	47,534
Number of Restricted Share Awards
Beginning Balance	$ 44.74
Vested	$ 47.63
Forfeited	$ 61.54
Ending Balance	$ 44.55

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Maturities on Long-Term Debt Outstanding (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
2014	$ 38,441
2015	65,055
2016	70,969
2017	70,969
2018	233,078
Thereafter	300,000
Total	$ 778,512	$ 755,383

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (5,775)	$ (2,166)
Other comprehensive income (loss):
Foreign currency translation adjustments	2,901	(10,456)
Total other comprehensive income (loss)	2,901	(10,456)
Comprehensive loss	$ (2,874)	$ (12,622)

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Acquisitions

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Acquisitions

2. Acquisitions

Fiscal 2013 Acquisitions

In 2013, the Company completed three acquisitions at an aggregate cost of $378.1 million.

Official Payments Holdings, Inc.

On November 5, 2013, the Company completed the tender offer for OPAY and all its subsidiaries. The Company paid cash of $8.35 per share of common stock or approximately $139.8 million using funds on hand and $40 million drawn on the Revolving Credit Facility, which was repaid prior to December 31, 2013. The Company has included the financial results of OPAY in the consolidated financial statements from the date of acquisition. As a leading provider of electronic bill payment solutions in the U.S., serving federal, state and local governments, municipal utilities, higher education institutions and charitable giving organizations, OPAY’s team, user base and vertical expertise made it an ideal match for the Company. The acquisition further extended the Company’s presence in the Electronic Bill Presentment and Payment (“EBPP”) space, expanding its portfolio across key sectors including federal, state and local governments, municipal utilities, higher education institutions and charitable giving organizations.

Each outstanding option to acquire OPAY common stock was canceled and terminated at the effective time of the acquisition and converted into the right to receive cash with respect to the number of shares of OPAY common stock that would have been issuable upon a net exercise of such option, assuming the market value of the OPAY common stock at the time of such exercise was equal to the $8.35 per common stock tender offer. Any outstanding option with a per share exercise price that was greater than or equal to such amount was cancelled and terminated and no payment was made with respect thereto. In addition, each OPAY restricted stock unit award outstanding immediately prior to the effective time of the tender offer was fully vested and cancelled, and each holder of such awards became entitled to receive the $8.35 per common stock tender offer for each share of OPAY common stock into which the vested portion of the awards would otherwise have been converted.

The consideration paid by the Company to complete the acquisition of OPAY has been allocated preliminarily to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The allocation of purchase price is based upon certain external valuations and other analyses that have not been completed as of the date of this filing, including, but not limited to, property, intangible assets, and certain tax matters. Accordingly, the purchase price allocations are preliminary and are subject to future adjustments during the maximum one-year allocation period.

The Company made adjustments to the preliminary purchase price allocation as additional information became available for acquired intangibles and intellectual property, certain accruals and tax account balances. 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 not 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.

Online Resources Corporation

On March 11, 2013, the Company completed the tender offer for Online Resources Corporation (“ORCC”) and all its subsidiaries. The Company paid cash of $3.85 per share of common stock for approximately $132.9 million and $127.2 million for the Series A-1 Convertible Preferred Stock for a total purchase price of $260.1 million (the “Merger”). The Company has included the financial results of ORCC in the consolidated financial statements from the date of acquisition. As a leading provider of online banking and full service bill pay solutions, the acquisition of ORCC added EBPP solutions as a strategic part of ACI’s Universal Payments portfolio. It also strengthened the Company’s online banking capabilities with complementary technology, and expanded the Company’s leadership in serving community banking and credit union customers.

Each outstanding option to acquire ORCC common stock was canceled and terminated at the effective time of the Merger and converted into the right to receive an equivalent number of options to purchase ACI common stock. Each ORCC restricted stock unit was vested immediately prior to the effective time of the Merger and received $3.85 per share.

The Company used funds from the $300.0 million of senior bank financing arranged through Wells Fargo Securities, LLC to fund the acquisition. See Note 3, Debt, for terms of the financing arrangement.

The consideration paid by the Company to complete the Merger has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The allocation of purchase price is based upon certain external valuations and other analyses.

The Company made adjustments to finalize the purchase price allocation as additional information became available for certain accruals and deferred income taxes. 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 not 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.

Profesionales en Transacciones Electronicas S.A.

During the first quarter of 2013, the Company acquired 100% of Profesionales en Transacciones Electronicas S.A. – Venezuela (“PTESA-V”), 100% of Profesionales en Transacciones Electronicas S.A. – Ecuador (“PTESA-E”), and the ACI related assets of Profesionales en Transacciones Electronicas S.A. – Colombia (“PTESA-C”), collectively “PTESA”. The common stock of PTESA-E and PTESA-V were acquired for $2.8 million and the assets of PTESA-C were acquired for $11.4 million, for a total aggregate purchase price of $14.2 million paid in cash. The Company has included the financial results of PTESA in our consolidated financial statements from the date of acquisition. PTESA had been a long-term partner of the Company, serving customers in South America in sales, service and support functions. The addition of the PTESA team to the Company reinforces its commitment to serve the Latin American market.

Factors contributing to the purchase price that resulted in the goodwill (approximately $1.5 million of which is not tax deductible) include the acquisition of management, sales, and services personnel with the skills to market and support products of the Company in the Latin America region. Pro forma results are not presented because they are not material.

In connection with the acquisitions, the Company recorded the following amounts based upon its purchase price allocations as of March 31, 2014. The purchase price allocation for OPAY is considered preliminary and is subject to completion of valuations and other analyses

			Official		Online
(in thousands, except weighted	Weighted-Average		Payments		Resources
average useful lives)	Useful Lives		Holdings, Inc.		Corporation		PTESA
Current assets:
Cash and cash equivalents			$	25,871	$	9,930	$	193
Billed and accrued receivables, net				2,858		19,394		327
Deferred income taxes, net				2,443		11,726		—
Other current assets				27,766		17,643		95
Total current assets acquired				58,938		58,693		615
Noncurrent assets:
Property and equipment				8,141		7,335		6
Goodwill				38,715		122,247		7,113
Software		10 years		26,013		62,215		7,732
Customer relationships		14 -15 years		49,900		68,750		—
Trademarks		3 - 5 years		3,200		3,050		—
Other noncurrent assets				5,673		459		7
Total assets acquired				190,580		322,749		15,473
Current liabilities:
Accounts payable				8,869		15,394		341
Accrued employee compensation				15,006		10,549		261
Note payable				—		7,500		—
Other current liabilities				26,095		7,559		—
Total current liabilities acquired				49,970		41,002		602
Noncurrent liabilities:
Deferred income taxes, net				—		18,290		225
Other noncurrent liabilities acquired
				828		3,339		439
Total liabilities acquired				50,798		62,631		1,266
Net assets acquired			$	139,782	$	260,118	$	14,207

OPAY and ORCC contributed approximately $71.7 million in revenue and $8.7 million in operating income to the period ended March 31, 2014, which includes severance expense related to the integration activities. ORCC contributed approximately $8.8 million in revenue and $1.1 million in operating losses to the period ended March 31, 2013, which included severance expense related to the integration activities.

Unaudited Pro Forma Financial Information

The pro forma financial information in the table below presents the combined results of operations for ACI, ORCC and OPAY as if the acquisitions had occurred January 1, 2012 (in thousands, except per share data). 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 transactions 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, nor is it necessarily indicative of future results 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, 2013 to give effect to estimated adjustments to expenses to remove the amortization on eliminated OPAY and ORCC historical identifiable intangible assets and add amortization expense for the value of identified intangibles acquired in the acquisitions (primarily acquired software, customer relationships, trade names, and covenants not to compete), adjustments to interest expense to reflect the elimination of preexisting OPAY and ORCC debt and add estimated interest expense on the Company’s additional Term Credit Facility borrowings and to eliminate share-based compensation expense for eliminated positions. Additionally, certain transaction expenses that are a direct result of the acquisitions have been excluded from the three months ended March 31, 2013.

	Pro Forma Results of
	Operations for the Three
	Months Ended
(in thousands, except per share data)	March 31, 2013
Total Revenues	$	228,160
Net loss		(3,325	)
Loss per share
Basic	$	(0.08	)
Diluted	$	(0.08	)

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Earnings Per Share - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Earnings Per Share [Abstract]
Options to purchase shares, contingently issuable shares, and common stock warrants excluded from diluted net income per share computation	3,100,000	3,800,000
Common stock outstanding	37,925,849		38,854,989

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Software and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Carrying Amount and Accumulated Amortization of Other Intangible Assets

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

	March 31, 2014							December 31, 2013
	Gross							Gross
	Carrying		Accumulated					Carrying		Accumulated
(in thousands)	Amount		Amortization			Net Balance		Amount		Amortization			Net Balance
Customer relationships	$	280,295	$	(55,152	)	$	225,143	$	277,356	$	(49,410	)	$	227,946
Trademarks and tradenames		12,138		(5,333	)		6,805		13,995		(4,383	)		9,612
Covenant not to compete		438		(333	)		105		438		(303	)		135
Purchased Contracts		10,880		(10,880	)		—		10,865		(10,865	)		—
	$	303,751	$	(71,698	)	$	232,053	$	302,654	$	(64,961	)	$	237,693

Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Software and Other Intangible Assets

Based on capitalized software and other intangible assets at March 31, 2014, estimated amortization expense for future fiscal years is as follows:

			Other
			Intangible
	Software		Assets
Fiscal Year Ending December 31,	Amortization		Amortization
(in thousands)
Remainder of 2014	$	27,839	$	17,184
2015		31,507		19,883
2016		27,475		18,729
2017		21,818		17,166
2018		20,357		16,656
2019		18,469		16,335
Thereafter		45,665		126,100
Total	$	193,130	$	232,053

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Preliminary Purchase Price Allocation of Official Payments Holdings, Online Resources Corporation and PTESA (Detail) (USD $) In Thousands, unless otherwise specified												3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014 Official Payments Holdings, Inc.	Mar. 31, 2014 Official Payments Holdings, Inc. Software	Mar. 31, 2014 Official Payments Holdings, Inc. Customer relationships	Mar. 31, 2014 Official Payments Holdings, Inc. Trademarks	Mar. 31, 2014 Online Resources Corporation	Mar. 31, 2014 Online Resources Corporation Software	Mar. 31, 2014 Online Resources Corporation Customer relationships	Mar. 31, 2014 Online Resources Corporation Trademarks	Mar. 31, 2014 Profesionales en Transacciones Electronicas S.A. - Venezuela ("PTESA-V")	Mar. 31, 2014 Profesionales en Transacciones Electronicas S.A. - Venezuela ("PTESA-V") Software	Mar. 31, 2014 Profesionales en Transacciones Electronicas S.A. - Venezuela ("PTESA-V") Customer relationships Minimum	Mar. 31, 2014 Profesionales en Transacciones Electronicas S.A. - Venezuela ("PTESA-V") Customer relationships Maximum	Mar. 31, 2014 Profesionales en Transacciones Electronicas S.A. - Venezuela ("PTESA-V") Trademarks Minimum	Mar. 31, 2014 Profesionales en Transacciones Electronicas S.A. - Venezuela ("PTESA-V") Trademarks Maximum
Business Acquisition [Line Items]
Acquired intangible assets, weighted-average useful lives												10 years	14 years	15 years	3 years	5 years
Cash and cash equivalents			$ 25,871				$ 9,930				$ 193
Billed and accrued receivables, net			2,858				19,394				327
Deferred income taxes, net			2,443				11,726
Other current assets			27,766				17,643				95
Total current assets acquired			58,938				58,693				615
Property and equipment			8,141				7,335				6
Goodwill	665,406	669,217	38,715				122,247				7,113
Amortizable intangible assets				26,013	49,900	3,200		62,215	68,750	3,050		7,732
Other noncurrent assets			5,673				459				7
Total assets acquired			190,580				322,749				15,473
Accounts payable			8,869				15,394				341
Accrued employee compensation			15,006				10,549				261
Note payable							7,500
Other current liabilities			26,095				7,559
Total current liabilities acquired			49,970				41,002				602
Deferred income taxes, net							18,290				225
Other noncurrent liabilities acquired			828				3,339				439
Total liabilities acquired			50,798				62,631				1,266
Net assets acquired			$ 139,782				$ 260,118				$ 14,207

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. Commitments and Contingencies

Legal Proceedings

From time to time, the Company is involved in various litigation matters arising in the ordinary course of its business. The Company is not currently a party to any legal proceedings, the adverse outcome of which, individually or in the aggregate, the Company believes would be likely to have a material effect on the Company’s financial condition, results of operations or cash flows.

Indemnities

Under certain customer contracts, the Company indemnifies customers for certain matters including third party claims of intellectual property infringement relating to the use of our products. Our maximum potential exposure under indemnification arrangements can range from a specified dollar amount to an unlimited amount, depending on the nature of the transactions and the agreements. The Company has recorded an accrual for estimated losses for demands for indemnification that have been tendered by certain customers. The Company does not have any reason to believe that we will be required to make any material payments under these indemnity provisions in excess of the balance accrued at March 31, 2014.