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(in millions) | ||||
Balance as of December 31, 2016 | $ | 556.8 | ||
Divestiture of HelloWallet (See Note 5) | (2.4 | ) | ||
Foreign currency translation and adjustments to purchase price allocation | 11.0 | |||
Balance as of September 30, 2017 | $ | 565.4 |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||||||||||||||
(in millions) | Gross | Accumulated Amortization | Net | Weighted Average Useful Life (years) | Gross | Accumulated Amortization | Net | Weighted Average Useful Life (years) | ||||||||||||||||||||
Intellectual property | $ | 31.5 | $ | (28.7 | ) | $ | 2.8 | 9 | $ | 30.9 | $ | (27.4 | ) | $ | 3.5 | 9 | ||||||||||||
Customer-related assets | 156.5 | (106.2 | ) | 50.3 | 12 | 152.0 | (97.7 | ) | 54.3 | 12 | ||||||||||||||||||
Supplier relationships | 0.2 | (0.1 | ) | 0.1 | 20 | 0.2 | (0.1 | ) | 0.1 | 20 | ||||||||||||||||||
Technology-based assets | 127.8 | (80.7 | ) | 47.1 | 7 | 133.2 | (72.1 | ) | 61.1 | 7 | ||||||||||||||||||
Non-competition agreements | 2.5 | (1.9 | ) | 0.6 | 5 | 5.0 | (3.1 | ) | 1.9 | 5 | ||||||||||||||||||
Total intangible assets | $ | 318.5 | $ | (217.6 | ) | $ | 100.9 | 10 | $ | 321.3 | $ | (200.4 | ) | $ | 120.9 | 10 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Amortization expense | $ | 5.5 | $ | 4.5 | $ | 18.1 | $ | 14.3 |
(in millions) | ||||
Remainder of 2017 (from October 1 through December 31) | $ | 5.6 | ||
2018 | 20.7 | |||
2019 | 19.2 | |||
2020 | 16.3 | |||
2021 | 13.0 | |||
Thereafter | 26.1 |
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Nine months ended September 30 | ||||
(in millions) | 2017 | |||
Proceeds received | $ | 23.7 | ||
Intangibles and internally developed software | (4.6 | ) | ||
Goodwill | (2.4 | ) | ||
Other assets and liabilities | 0.8 | |||
Total gain on sale of business | $ | 17.5 |
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External revenue by geographical area | ||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
United States | $ | 171.8 | $ | 143.5 | $ | 503.4 | $ | 430.6 | ||||||||
United Kingdom | 17.0 | 15.2 | 47.5 | 45.8 | ||||||||||||
Continental Europe | 18.2 | 16.0 | 51.0 | 47.3 | ||||||||||||
Australia | 8.8 | 8.3 | 25.5 | 24.1 | ||||||||||||
Canada | 7.5 | 7.1 | 22.0 | 20.6 | ||||||||||||
Asia | 5.3 | 5.0 | 15.7 | 15.1 | ||||||||||||
Other | 1.3 | 1.0 | 3.5 | 2.9 | ||||||||||||
Total International | 58.1 | 52.6 | 165.2 | 155.8 | ||||||||||||
Consolidated revenue | $ | 229.9 | $ | 196.1 | $ | 668.6 | $ | 586.4 |
Long-lived assets by geographical area | ||||||||
As of September 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
United States | $ | 136.7 | $ | 139.1 | ||||
United Kingdom | 6.1 | 6.6 | ||||||
Continental Europe | 1.8 | 1.9 | ||||||
Australia | 1.1 | 0.6 | ||||||
Canada | 0.2 | 0.4 | ||||||
Asia | 5.2 | 3.4 | ||||||
Other | 0.1 | 0.1 | ||||||
Total International | 14.5 | 13.0 | ||||||
Consolidated property, equipment, and capitalized software, net | $ | 151.2 | $ | 152.1 |
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As of September 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
Available-for-sale | $ | 32.4 | $ | 27.7 | ||||
Held-to-maturity | 19.7 | 15.7 | ||||||
Trading securities | 1.6 | 1.5 | ||||||
Total | $ | 53.7 | $ | 44.9 |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized Gain | Unrealized Loss | Fair Value | Cost | Unrealized Gain | Unrealized Loss | Fair Value | ||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | $ | 26.7 | $ | 3.8 | $ | (0.5 | ) | $ | 30.0 | $ | 25.6 | $ | 1.3 | $ | (1.5 | ) | $ | 25.4 | ||||||||||||||
Mutual funds | 2.1 | 0.3 | — | 2.4 | 2.2 | 0.1 | — | 2.3 | ||||||||||||||||||||||||
Total | $ | 28.8 | $ | 4.1 | $ | (0.5 | ) | $ | 32.4 | $ | 27.8 | $ | 1.4 | $ | (1.5 | ) | $ | 27.7 | ||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 19.7 | $ | — | $ | — | $ | 19.7 | $ | 13.8 | $ | — | $ | — | $ | 13.8 | ||||||||||||||||
Convertible note | — | — | — | — | 1.9 | — | — | 1.9 | ||||||||||||||||||||||||
Total | $ | 19.7 | $ | — | $ | — | $ | 19.7 | $ | 15.7 | $ | — | $ | — | $ | 15.7 |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||
(in millions) | Cost | Fair Value | Cost | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | $ | 28.8 | $ | 32.4 | $ | 27.8 | $ | 27.7 | ||||||||
Total | $ | 28.8 | $ | 32.4 | $ | 27.8 | $ | 27.7 | ||||||||
Held-to-maturity: | ||||||||||||||||
Due in one year or less | $ | 19.5 | $ | 19.5 | $ | 13.8 | $ | 13.8 | ||||||||
Due in one to three years | 0.2 | 0.2 | 1.9 | 1.9 | ||||||||||||
Total | $ | 19.7 | $ | 19.7 | $ | 15.7 | $ | 15.7 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Realized gains | $ | 0.4 | $ | 0.5 | $ | 1.3 | $ | 1.6 | ||||||||
Realized losses | (0.1 | ) | (0.2 | ) | (0.2 | ) | (1.1 | ) | ||||||||
Realized gains, net | $ | 0.3 | $ | 0.3 | $ | 1.1 | $ | 0.5 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Unrealized gains, net | $ | — | $ | — | $ | 0.1 | $ | 0.1 |
Level 1: | Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. |
Level 2: | Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
Level 3: | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
Fair Value | Fair Value Measurements as of September 30, 2017 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
(in millions) | September 30, 2017 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Equity securities and exchange-traded funds | $ | 30.0 | $ | 30.0 | $ | — | $ | — | ||||||||
Mutual funds | 2.4 | 2.4 | — | — | ||||||||||||
Trading securities | 1.6 | 1.6 | — | — | ||||||||||||
Cash equivalents | 0.3 | 0.3 | — | — | ||||||||||||
Total | $ | 34.3 | $ | 34.3 | $ | — | $ | — |
Fair Value | Fair Value Measurements as of December 31, 2016 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
(in millions) | December 31, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Equity securities and exchange-traded funds | $ | 25.4 | $ | 25.4 | $ | — | $ | — | ||||||||
Mutual funds | 2.3 | 2.3 | — | — | ||||||||||||
Trading securities | 1.5 | 1.5 | — | — | ||||||||||||
Cash equivalents | 0.2 | 0.2 | — | — | ||||||||||||
Total | $ | 29.4 | $ | 29.4 | $ | — | $ | — |
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Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue | $ | 2.2 | $ | 1.5 | $ | 6.6 | $ | 5.5 | ||||||||
Sales and marketing | 0.7 | 0.3 | 2.1 | 1.3 | ||||||||||||
General and administrative | 2.6 | 1.0 | 7.8 | 3.8 | ||||||||||||
Total stock-based compensation expense | $ | 5.5 | $ | 2.8 | $ | 16.5 | $ | 10.6 |
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Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Income before income taxes and equity in net income (loss) of unconsolidated entities | $ | 50.8 | $ | 46.3 | $ | 139.2 | $ | 136.5 | ||||||||
Equity in net income (loss) of unconsolidated entities | — | 0.4 | (1.0 | ) | 0.7 | |||||||||||
Total | $ | 50.8 | $ | 46.7 | $ | 138.2 | $ | 137.2 | ||||||||
Income tax expense | $ | 16.9 | $ | 16.5 | $ | 40.2 | $ | 46.5 | ||||||||
Effective tax rate | 33.3 | % | 35.3 | % | 29.1 | % | 33.9 | % |
As of September 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
Gross unrecognized tax benefits | $ | 18.1 | $ | 18.4 | ||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 14.5 | $ | 14.4 | ||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 13.3 | $ | 13.3 |
As of September 30 | As of December 31 | |||||||
Liabilities for Unrecognized Tax Benefits (in millions) | 2017 | 2016 | ||||||
Current liability | $ | 8.8 | $ | 8.9 | ||||
Non-current liability | 5.7 | 5.4 | ||||||
Total liability for unrecognized tax benefits | $ | 14.5 | $ | 14.3 |
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(in millions) | ||||
Balance as of December 31, 2016 | $ | 556.8 | ||
Divestiture of HelloWallet (See Note 5) | (2.4 | ) | ||
Foreign currency translation and adjustments to purchase price allocation | 11.0 | |||
Balance as of September 30, 2017 | $ | 565.4 |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||||||||||||||
(in millions) | Gross | Accumulated Amortization | Net | Weighted Average Useful Life (years) | Gross | Accumulated Amortization | Net | Weighted Average Useful Life (years) | ||||||||||||||||||||
Intellectual property | $ | 31.5 | $ | (28.7 | ) | $ | 2.8 | 9 | $ | 30.9 | $ | (27.4 | ) | $ | 3.5 | 9 | ||||||||||||
Customer-related assets | 156.5 | (106.2 | ) | 50.3 | 12 | 152.0 | (97.7 | ) | 54.3 | 12 | ||||||||||||||||||
Supplier relationships | 0.2 | (0.1 | ) | 0.1 | 20 | 0.2 | (0.1 | ) | 0.1 | 20 | ||||||||||||||||||
Technology-based assets | 127.8 | (80.7 | ) | 47.1 | 7 | 133.2 | (72.1 | ) | 61.1 | 7 | ||||||||||||||||||
Non-competition agreements | 2.5 | (1.9 | ) | 0.6 | 5 | 5.0 | (3.1 | ) | 1.9 | 5 | ||||||||||||||||||
Total intangible assets | $ | 318.5 | $ | (217.6 | ) | $ | 100.9 | 10 | $ | 321.3 | $ | (200.4 | ) | $ | 120.9 | 10 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Amortization expense | $ | 5.5 | $ | 4.5 | $ | 18.1 | $ | 14.3 |
(in millions) | ||||
Remainder of 2017 (from October 1 through December 31) | $ | 5.6 | ||
2018 | 20.7 | |||
2019 | 19.2 | |||
2020 | 16.3 | |||
2021 | 13.0 | |||
Thereafter | 26.1 |
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Nine months ended September 30 | ||||
(in millions) | 2017 | |||
Proceeds received | $ | 23.7 | ||
Intangibles and internally developed software | (4.6 | ) | ||
Goodwill | (2.4 | ) | ||
Other assets and liabilities | 0.8 | |||
Total gain on sale of business | $ | 17.5 |
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External revenue by geographical area | ||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
United States | $ | 171.8 | $ | 143.5 | $ | 503.4 | $ | 430.6 | ||||||||
United Kingdom | 17.0 | 15.2 | 47.5 | 45.8 | ||||||||||||
Continental Europe | 18.2 | 16.0 | 51.0 | 47.3 | ||||||||||||
Australia | 8.8 | 8.3 | 25.5 | 24.1 | ||||||||||||
Canada | 7.5 | 7.1 | 22.0 | 20.6 | ||||||||||||
Asia | 5.3 | 5.0 | 15.7 | 15.1 | ||||||||||||
Other | 1.3 | 1.0 | 3.5 | 2.9 | ||||||||||||
Total International | 58.1 | 52.6 | 165.2 | 155.8 | ||||||||||||
Consolidated revenue | $ | 229.9 | $ | 196.1 | $ | 668.6 | $ | 586.4 |
Long-lived assets by geographical area | ||||||||
As of September 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
United States | $ | 136.7 | $ | 139.1 | ||||
United Kingdom | 6.1 | 6.6 | ||||||
Continental Europe | 1.8 | 1.9 | ||||||
Australia | 1.1 | 0.6 | ||||||
Canada | 0.2 | 0.4 | ||||||
Asia | 5.2 | 3.4 | ||||||
Other | 0.1 | 0.1 | ||||||
Total International | 14.5 | 13.0 | ||||||
Consolidated property, equipment, and capitalized software, net | $ | 151.2 | $ | 152.1 |
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As of September 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
Available-for-sale | $ | 32.4 | $ | 27.7 | ||||
Held-to-maturity | 19.7 | 15.7 | ||||||
Trading securities | 1.6 | 1.5 | ||||||
Total | $ | 53.7 | $ | 44.9 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Unrealized gains, net | $ | — | $ | — | $ | 0.1 | $ | 0.1 |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized Gain | Unrealized Loss | Fair Value | Cost | Unrealized Gain | Unrealized Loss | Fair Value | ||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | $ | 26.7 | $ | 3.8 | $ | (0.5 | ) | $ | 30.0 | $ | 25.6 | $ | 1.3 | $ | (1.5 | ) | $ | 25.4 | ||||||||||||||
Mutual funds | 2.1 | 0.3 | — | 2.4 | 2.2 | 0.1 | — | 2.3 | ||||||||||||||||||||||||
Total | $ | 28.8 | $ | 4.1 | $ | (0.5 | ) | $ | 32.4 | $ | 27.8 | $ | 1.4 | $ | (1.5 | ) | $ | 27.7 | ||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 19.7 | $ | — | $ | — | $ | 19.7 | $ | 13.8 | $ | — | $ | — | $ | 13.8 | ||||||||||||||||
Convertible note | — | — | — | — | 1.9 | — | — | 1.9 | ||||||||||||||||||||||||
Total | $ | 19.7 | $ | — | $ | — | $ | 19.7 | $ | 15.7 | $ | — | $ | — | $ | 15.7 |
As of September 30, 2017 | As of December 31, 2016 | |||||||||||||||
(in millions) | Cost | Fair Value | Cost | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | $ | 28.8 | $ | 32.4 | $ | 27.8 | $ | 27.7 | ||||||||
Total | $ | 28.8 | $ | 32.4 | $ | 27.8 | $ | 27.7 | ||||||||
Held-to-maturity: | ||||||||||||||||
Due in one year or less | $ | 19.5 | $ | 19.5 | $ | 13.8 | $ | 13.8 | ||||||||
Due in one to three years | 0.2 | 0.2 | 1.9 | 1.9 | ||||||||||||
Total | $ | 19.7 | $ | 19.7 | $ | 15.7 | $ | 15.7 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Realized gains | $ | 0.4 | $ | 0.5 | $ | 1.3 | $ | 1.6 | ||||||||
Realized losses | (0.1 | ) | (0.2 | ) | (0.2 | ) | (1.1 | ) | ||||||||
Realized gains, net | $ | 0.3 | $ | 0.3 | $ | 1.1 | $ | 0.5 |
Level 1: | Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. |
Level 2: | Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
Level 3: | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
Fair Value | Fair Value Measurements as of September 30, 2017 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
(in millions) | September 30, 2017 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Equity securities and exchange-traded funds | $ | 30.0 | $ | 30.0 | $ | — | $ | — | ||||||||
Mutual funds | 2.4 | 2.4 | — | — | ||||||||||||
Trading securities | 1.6 | 1.6 | — | — | ||||||||||||
Cash equivalents | 0.3 | 0.3 | — | — | ||||||||||||
Total | $ | 34.3 | $ | 34.3 | $ | — | $ | — |
Fair Value | Fair Value Measurements as of December 31, 2016 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
(in millions) | December 31, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Equity securities and exchange-traded funds | $ | 25.4 | $ | 25.4 | $ | — | $ | — | ||||||||
Mutual funds | 2.3 | 2.3 | — | — | ||||||||||||
Trading securities | 1.5 | 1.5 | — | — | ||||||||||||
Cash equivalents | 0.2 | 0.2 | — | — | ||||||||||||
Total | $ | 29.4 | $ | 29.4 | $ | — | $ | — |
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Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue | $ | 2.2 | $ | 1.5 | $ | 6.6 | $ | 5.5 | ||||||||
Sales and marketing | 0.7 | 0.3 | 2.1 | 1.3 | ||||||||||||
General and administrative | 2.6 | 1.0 | 7.8 | 3.8 | ||||||||||||
Total stock-based compensation expense | $ | 5.5 | $ | 2.8 | $ | 16.5 | $ | 10.6 |
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Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Income before income taxes and equity in net income (loss) of unconsolidated entities | $ | 50.8 | $ | 46.3 | $ | 139.2 | $ | 136.5 | ||||||||
Equity in net income (loss) of unconsolidated entities | — | 0.4 | (1.0 | ) | 0.7 | |||||||||||
Total | $ | 50.8 | $ | 46.7 | $ | 138.2 | $ | 137.2 | ||||||||
Income tax expense | $ | 16.9 | $ | 16.5 | $ | 40.2 | $ | 46.5 | ||||||||
Effective tax rate | 33.3 | % | 35.3 | % | 29.1 | % | 33.9 | % |
As of September 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
Gross unrecognized tax benefits | $ | 18.1 | $ | 18.4 | ||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 14.5 | $ | 14.4 | ||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 13.3 | $ | 13.3 |
As of September 30 | As of December 31 | |||||||
Liabilities for Unrecognized Tax Benefits (in millions) | 2017 | 2016 | ||||||
Current liability | $ | 8.8 | $ | 8.9 | ||||
Non-current liability | 5.7 | 5.4 | ||||||
Total liability for unrecognized tax benefits | $ | 14.5 | $ | 14.3 |
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