Company: ACIW
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000935036-25-000006
Chunk: 14

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 15
Chunk 14
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 or debit card processor, resulting in a net settlement receivable position.

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Off Balance Sheet Settlement AccountsThe Company also enters into agreements with certain Biller clients to process payment funds on their behalf. When an ACH 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 Company receives the funds from the source at the same time as it sends the funds 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 is separate from the Company’s corporate assets. As the Company does not take ownership of the funds, these 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 settlement funds as of December 31, 2024 and 2023, were $267.0 million and $273.2 million, respectively.Property and EquipmentProperty and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2024 and 2023, net property and equipment consisted of the following (in thousands):December 31,Useful Lives20242023Computer and office equipment3 - 5 years$116,398 $118,805 Leasehold improvementsLesser of useful life of improvement or remaining life of lease26,316 32,660 Building and improvements7 - 30 years15,985 14,492 Furniture and fixtures7 years8,820 8,803 LandNon-depreciable1,185 1,185 Property and equipment, gross168,704 175,945 Less: accumulated depreciation(133,635)(138,089)Property and equipment, net$35,069 $37,856 SoftwareSoftware may be for internal use