Company: ACIW
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000935036-25-000006
Chunk: 25

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 15
Chunk 25
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 months and the remainder thereafter.During the year ended December 31, 2024, the revenue recognized by the Company from performance obligations satisfied in previous periods was $35.2 million.

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Costs to Obtain and Fulfill a ContractThe Company accounts for costs to obtain and fulfill its contracts in accordance with ASC 340-40.The Company capitalizes certain of its sales commissions that meet the definition of incremental costs of obtaining a contract and for which the amortization period is greater than one year. The costs associated with those sales commissions are capitalized during the period in which the Company becomes obligated to pay the commissions and are amortized over the period in which the related products or services are transferred to the customer. As of December 31, 2024 and 2023, $2.0 million and $3.3 million of these costs are included in other current assets, respectively, and $9.9 million and $13.9 million of these costs are included in other noncurrent assets, respectively, on the consolidated balance sheets. During both of the years ended December 31, 2024 and 2023, the Company recognized $8.7 million of sales commission expense related to the amortization of these costs, which is included in selling and marketing expense on the consolidated statements of operations.

The Company capitalizes costs incurred to fulfill its contracts that: (1) relate directly to the arrangement, (2) are expected to generate resources that will be used to satisfy the Company’s performance obligation under the arrangement, and (3) are expected to be recovered through revenue generated under the arrangement. Contract fulfillment costs are expensed as the Company transfers the related services to the customer. As of December 31, 2024 and 2023, less than $0.1 million of these costs are included in other current assets, and $9.4 million and $9.7 million of these costs are included in other noncurrent assets, respectively, on the consolidated balance sheets. The amounts capitalized primarily relate to direct costs that enhance resources under the Company’s SaaS and PaaS arrangements. During both of the years ended December 31, 2024 and 2023, the Company recognized $3.6 million of expense related to the amortization of these costs, which is included in cost of revenue on the consolidated statements of operations. 

3. Divestiture 

Corporate Online Banking SolutionsOn June 7, 2022, the Company announced a definitive agreement to divest its corporate