Company: ACIW
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000935036-25-000006
Chunk: 62

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 62
---
 judgment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the Company’s accounting for software license arrangements included the following, among others:

•We tested the effectiveness of controls over the review of software license arrangements, including, among others, the determination of the contract term, identification of performance obligations, determination of significant financing component, estimation of variable consideration, and determination of standalone selling prices, including those controls over the determination that software license pricing is highly variable.

•We selected a sample of software license arrangements and performed the following, among others:

•Obtained contract source documents for each selection, including separate contracts or agreements that should be combined with the selected arrangement, and other documents that were part of the arrangement.

•Tested management’s determination of the contract term, identification of performance obligations, determination of significant financing component, estimation of variable consideration, and determination of standalone selling prices.

•Evaluated the reasonableness of the methodology and estimates used by management and the appropriateness of its revenue recognition conclusions for these key judgment areas.

•Tested the mathematical accuracy of management’s calculations of revenue and the associated timing of revenue recognized in the financial statements.

•We evaluated management’s determination that software license pricing is highly variable by obtaining management’s highly variable analysis and performing the following:

•Testing the completeness of management’s analysis by tracing a selection of known data points from contracts into the highly variable analysis.

•Testing the accuracy of management’s analysis by selecting a sample of contracts from the highly variable analysis, obtaining the contract and price detail, and evaluating whether discounts were appropriately included in the analysis.

•Testing the mathematical accuracy of management’s calculation.

/s/ Deloitte & Touche LLP

Omaha, Nebraska

February 27, 2025 

We have served as the Company’s auditor since 2009.

50

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

December 31,20242023ASSETSCurrent assetsCash and cash equivalents$216,394 $164,239 Receivables, net of allowances of $1,758 and $4,295, respectively414,399 452,337 Settlement assets318,871 723,039 Prepaid expenses29,218 31,479 Other current assets11,940 35,551 Total current assets990,822 1,406,645 Noncurrent assetsAccru