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(in millions) | ||||
Balance as of December 31, 2016 | $ | 556.8 | ||
Divestiture of HelloWallet (See Note 5) | (2.4 | ) | ||
Adjustments to purchase price allocation and foreign currency translation | 7.1 | |||
Balance as of June 30, 2017 | $ | 561.5 |
As of June 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 | $ | 31.3 | $ | (28.3 | ) | $ | 3.0 | 9 | $ | 30.9 | $ | (27.4 | ) | $ | 3.5 | 9 | ||||||||||||
Customer-related assets | 154.9 | (103.3 | ) | 51.6 | 12 | 152.0 | (97.7 | ) | 54.3 | 12 | ||||||||||||||||||
Supplier relationships | 0.3 | (0.2 | ) | 0.1 | 20 | 0.2 | (0.1 | ) | 0.1 | 20 | ||||||||||||||||||
Technology-based assets | 127.4 | (76.8 | ) | 50.6 | 7 | 133.2 | (72.1 | ) | 61.1 | 7 | ||||||||||||||||||
Non-competition agreements | 2.4 | (1.9 | ) | 0.5 | 5 | 5.0 | (3.1 | ) | 1.9 | 5 | ||||||||||||||||||
Total intangible assets | $ | 316.3 | $ | (210.5 | ) | $ | 105.8 | 10 | $ | 321.3 | $ | (200.4 | ) | $ | 120.9 | 10 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Amortization expense | $ | 6.1 | $ | 4.7 | $ | 12.6 | $ | 9.8 |
(in millions) | ||||
Remainder of 2017 (from July 1 through December 31) | $ | 11.0 | ||
2018 | 20.6 | |||
2019 | 19.1 | |||
2020 | 16.3 | |||
2021 | 12.9 | |||
Thereafter | 25.9 |
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(in millions) | ||||
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 June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
United States | $ | 174.7 | $ | 145.3 | $ | 331.6 | $ | 287.1 | ||||||||
United Kingdom | 15.6 | 15.3 | 30.5 | 30.6 | ||||||||||||
Continental Europe | 16.5 | 15.8 | 32.8 | 31.3 | ||||||||||||
Australia | 8.6 | 8.9 | 16.7 | 15.8 | ||||||||||||
Canada | 7.2 | 6.9 | 14.5 | 13.5 | ||||||||||||
Asia | 5.5 | 5.0 | 10.4 | 10.1 | ||||||||||||
Other | 1.1 | 1.0 | 2.2 | 1.9 | ||||||||||||
Total International | 54.5 | 52.9 | 107.1 | 103.2 | ||||||||||||
Consolidated revenue | $ | 229.2 | $ | 198.2 | $ | 438.7 | $ | 390.3 |
Long-lived assets by geographical area | ||||||||
As of June 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
United States | $ | 139.6 | $ | 139.1 | ||||
United Kingdom | 6.3 | 6.6 | ||||||
Continental Europe | 1.8 | 1.9 | ||||||
Australia | 0.5 | 0.6 | ||||||
Canada | 0.3 | 0.4 | ||||||
Asia | 5.3 | 3.4 | ||||||
Other | 0.1 | 0.1 | ||||||
Total International | 14.3 | 13.0 | ||||||
Consolidated property, equipment, and capitalized software, net | $ | 153.9 | $ | 152.1 |
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As of June 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
Available-for-sale | $ | 31.3 | $ | 27.7 | ||||
Held-to-maturity | 21.1 | 15.7 | ||||||
Trading securities | 1.6 | 1.5 | ||||||
Total | $ | 54.0 | $ | 44.9 |
As of June 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 | $ | 26.5 | $ | 2.8 | $ | (0.4 | ) | $ | 28.9 | $ | 25.6 | $ | 1.3 | $ | (1.5 | ) | $ | 25.4 | ||||||||||||||
Mutual funds | 2.1 | 0.3 | — | 2.4 | 2.2 | 0.1 | — | 2.3 | ||||||||||||||||||||||||
Total | $ | 28.6 | $ | 3.1 | $ | (0.4 | ) | $ | 31.3 | $ | 27.8 | $ | 1.4 | $ | (1.5 | ) | $ | 27.7 | ||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 19.2 | $ | — | $ | — | $ | 19.2 | $ | 13.8 | $ | — | $ | — | $ | 13.8 | ||||||||||||||||
Convertible note | 1.9 | — | — | 1.9 | 1.9 | — | — | 1.9 | ||||||||||||||||||||||||
Total | $ | 21.1 | $ | — | $ | — | $ | 21.1 | $ | 15.7 | $ | — | $ | — | $ | 15.7 |
As of June 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 | $ | 28.6 | $ | 31.3 | $ | 27.8 | $ | 27.7 | ||||||||
Total | $ | 28.6 | $ | 31.3 | $ | 27.8 | $ | 27.7 | ||||||||
Held-to-maturity: | ||||||||||||||||
Due in one year or less | $ | 19.0 | $ | 19.0 | $ | 13.8 | $ | 13.8 | ||||||||
Due in one to three years | 2.1 | 2.1 | 1.9 | 1.9 | ||||||||||||
Total | $ | 21.1 | $ | 21.1 | $ | 15.7 | $ | 15.7 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Realized gains | $ | 0.4 | $ | 0.6 | $ | 0.9 | $ | 1.1 | ||||||||
Realized losses | (0.1 | ) | (0.3 | ) | (0.1 | ) | (0.9 | ) | ||||||||
Realized gains, net | $ | 0.3 | $ | 0.3 | $ | 0.8 | $ | 0.2 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Unrealized gains, net | $ | 0.1 | $ | 0.1 | $ | 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 June 30, 2017 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
(in millions) | June 30, 2017 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Equity securities and exchange-traded funds | $ | 28.9 | $ | 28.9 | $ | — | $ | — | ||||||||
Mutual funds | 2.4 | 2.4 | — | — | ||||||||||||
Trading securities | 1.6 | 1.6 | — | — | ||||||||||||
Cash equivalents | 0.3 | 0.3 | — | — | ||||||||||||
Total | $ | 33.2 | $ | 33.2 | $ | — | $ | — |
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 June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue | $ | 2.3 | $ | 2.0 | $ | 4.4 | $ | 4.0 | ||||||||
Sales and marketing | 0.7 | 0.5 | 1.4 | 1.0 | ||||||||||||
General and administrative | 2.7 | 1.3 | 5.2 | 2.8 | ||||||||||||
Total stock-based compensation expense | $ | 5.7 | $ | 3.8 | $ | 11.0 | $ | 7.8 |
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Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Income before income taxes and equity in net income (loss) of unconsolidated entities | $ | 61.3 | $ | 47.4 | $ | 88.4 | $ | 90.2 | ||||||||
Equity in net income (loss) of unconsolidated entities | (0.2 | ) | (0.2 | ) | (1.0 | ) | 0.3 | |||||||||
Total | $ | 61.1 | $ | 47.2 | $ | 87.4 | $ | 90.5 | ||||||||
Income tax expense | $ | 15.0 | $ | 15.4 | $ | 23.3 | $ | 30.0 | ||||||||
Effective tax rate | 24.5 | % | 32.7 | % | 26.7 | % | 33.2 | % |
As of June 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
Gross unrecognized tax benefits | $ | 19.0 | $ | 18.4 | ||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 15.4 | $ | 14.4 | ||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 14.2 | $ | 13.3 |
As of June 30 | As of December 31 | |||||||
Liabilities for Unrecognized Tax Benefits (in millions) | 2017 | 2016 | ||||||
Current liability | $ | 9.1 | $ | 8.9 | ||||
Non-current liability | 6.3 | 5.4 | ||||||
Total liability for unrecognized tax benefits | $ | 15.4 | $ | 14.3 |
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(in millions) | ||||
Balance as of December 31, 2016 | $ | 556.8 | ||
Divestiture of HelloWallet (See Note 5) | (2.4 | ) | ||
Adjustments to purchase price allocation and foreign currency translation | 7.1 | |||
Balance as of June 30, 2017 | $ | 561.5 |
As of June 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 | $ | 31.3 | $ | (28.3 | ) | $ | 3.0 | 9 | $ | 30.9 | $ | (27.4 | ) | $ | 3.5 | 9 | ||||||||||||
Customer-related assets | 154.9 | (103.3 | ) | 51.6 | 12 | 152.0 | (97.7 | ) | 54.3 | 12 | ||||||||||||||||||
Supplier relationships | 0.3 | (0.2 | ) | 0.1 | 20 | 0.2 | (0.1 | ) | 0.1 | 20 | ||||||||||||||||||
Technology-based assets | 127.4 | (76.8 | ) | 50.6 | 7 | 133.2 | (72.1 | ) | 61.1 | 7 | ||||||||||||||||||
Non-competition agreements | 2.4 | (1.9 | ) | 0.5 | 5 | 5.0 | (3.1 | ) | 1.9 | 5 | ||||||||||||||||||
Total intangible assets | $ | 316.3 | $ | (210.5 | ) | $ | 105.8 | 10 | $ | 321.3 | $ | (200.4 | ) | $ | 120.9 | 10 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Amortization expense | $ | 6.1 | $ | 4.7 | $ | 12.6 | $ | 9.8 |
(in millions) | ||||
Remainder of 2017 (from July 1 through December 31) | $ | 11.0 | ||
2018 | 20.6 | |||
2019 | 19.1 | |||
2020 | 16.3 | |||
2021 | 12.9 | |||
Thereafter | 25.9 |
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(in millions) | ||||
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 June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
United States | $ | 174.7 | $ | 145.3 | $ | 331.6 | $ | 287.1 | ||||||||
United Kingdom | 15.6 | 15.3 | 30.5 | 30.6 | ||||||||||||
Continental Europe | 16.5 | 15.8 | 32.8 | 31.3 | ||||||||||||
Australia | 8.6 | 8.9 | 16.7 | 15.8 | ||||||||||||
Canada | 7.2 | 6.9 | 14.5 | 13.5 | ||||||||||||
Asia | 5.5 | 5.0 | 10.4 | 10.1 | ||||||||||||
Other | 1.1 | 1.0 | 2.2 | 1.9 | ||||||||||||
Total International | 54.5 | 52.9 | 107.1 | 103.2 | ||||||||||||
Consolidated revenue | $ | 229.2 | $ | 198.2 | $ | 438.7 | $ | 390.3 |
Long-lived assets by geographical area | ||||||||
As of June 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
United States | $ | 139.6 | $ | 139.1 | ||||
United Kingdom | 6.3 | 6.6 | ||||||
Continental Europe | 1.8 | 1.9 | ||||||
Australia | 0.5 | 0.6 | ||||||
Canada | 0.3 | 0.4 | ||||||
Asia | 5.3 | 3.4 | ||||||
Other | 0.1 | 0.1 | ||||||
Total International | 14.3 | 13.0 | ||||||
Consolidated property, equipment, and capitalized software, net | $ | 153.9 | $ | 152.1 |
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As of June 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
Available-for-sale | $ | 31.3 | $ | 27.7 | ||||
Held-to-maturity | 21.1 | 15.7 | ||||||
Trading securities | 1.6 | 1.5 | ||||||
Total | $ | 54.0 | $ | 44.9 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Unrealized gains, net | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 |
As of June 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 | $ | 26.5 | $ | 2.8 | $ | (0.4 | ) | $ | 28.9 | $ | 25.6 | $ | 1.3 | $ | (1.5 | ) | $ | 25.4 | ||||||||||||||
Mutual funds | 2.1 | 0.3 | — | 2.4 | 2.2 | 0.1 | — | 2.3 | ||||||||||||||||||||||||
Total | $ | 28.6 | $ | 3.1 | $ | (0.4 | ) | $ | 31.3 | $ | 27.8 | $ | 1.4 | $ | (1.5 | ) | $ | 27.7 | ||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 19.2 | $ | — | $ | — | $ | 19.2 | $ | 13.8 | $ | — | $ | — | $ | 13.8 | ||||||||||||||||
Convertible note | 1.9 | — | — | 1.9 | 1.9 | — | — | 1.9 | ||||||||||||||||||||||||
Total | $ | 21.1 | $ | — | $ | — | $ | 21.1 | $ | 15.7 | $ | — | $ | — | $ | 15.7 |
As of June 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 | $ | 28.6 | $ | 31.3 | $ | 27.8 | $ | 27.7 | ||||||||
Total | $ | 28.6 | $ | 31.3 | $ | 27.8 | $ | 27.7 | ||||||||
Held-to-maturity: | ||||||||||||||||
Due in one year or less | $ | 19.0 | $ | 19.0 | $ | 13.8 | $ | 13.8 | ||||||||
Due in one to three years | 2.1 | 2.1 | 1.9 | 1.9 | ||||||||||||
Total | $ | 21.1 | $ | 21.1 | $ | 15.7 | $ | 15.7 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Realized gains | $ | 0.4 | $ | 0.6 | $ | 0.9 | $ | 1.1 | ||||||||
Realized losses | (0.1 | ) | (0.3 | ) | (0.1 | ) | (0.9 | ) | ||||||||
Realized gains, net | $ | 0.3 | $ | 0.3 | $ | 0.8 | $ | 0.2 |
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 June 30, 2017 | |||||||||||||||
as of | Using Fair Value Hierarchy | |||||||||||||||
(in millions) | June 30, 2017 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Equity securities and exchange-traded funds | $ | 28.9 | $ | 28.9 | $ | — | $ | — | ||||||||
Mutual funds | 2.4 | 2.4 | — | — | ||||||||||||
Trading securities | 1.6 | 1.6 | — | — | ||||||||||||
Cash equivalents | 0.3 | 0.3 | — | — | ||||||||||||
Total | $ | 33.2 | $ | 33.2 | $ | — | $ | — |
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 June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue | $ | 2.3 | $ | 2.0 | $ | 4.4 | $ | 4.0 | ||||||||
Sales and marketing | 0.7 | 0.5 | 1.4 | 1.0 | ||||||||||||
General and administrative | 2.7 | 1.3 | 5.2 | 2.8 | ||||||||||||
Total stock-based compensation expense | $ | 5.7 | $ | 3.8 | $ | 11.0 | $ | 7.8 |
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Three months ended June 30 | Six months ended June 30 | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Income before income taxes and equity in net income (loss) of unconsolidated entities | $ | 61.3 | $ | 47.4 | $ | 88.4 | $ | 90.2 | ||||||||
Equity in net income (loss) of unconsolidated entities | (0.2 | ) | (0.2 | ) | (1.0 | ) | 0.3 | |||||||||
Total | $ | 61.1 | $ | 47.2 | $ | 87.4 | $ | 90.5 | ||||||||
Income tax expense | $ | 15.0 | $ | 15.4 | $ | 23.3 | $ | 30.0 | ||||||||
Effective tax rate | 24.5 | % | 32.7 | % | 26.7 | % | 33.2 | % |
As of June 30 | As of December 31 | |||||||
(in millions) | 2017 | 2016 | ||||||
Gross unrecognized tax benefits | $ | 19.0 | $ | 18.4 | ||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 15.4 | $ | 14.4 | ||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 14.2 | $ | 13.3 |
As of June 30 | As of December 31 | |||||||
Liabilities for Unrecognized Tax Benefits (in millions) | 2017 | 2016 | ||||||
Current liability | $ | 9.1 | $ | 8.9 | ||||
Non-current liability | 6.3 | 5.4 | ||||||
Total liability for unrecognized tax benefits | $ | 15.4 | $ | 14.3 |
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