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Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company reports financial performance based on its segments, ACI On Demand and ACI On Premise, and analyzes Segment Adjusted EBITDA as a measure of segment profitability.

The Company’s Chief Executive Officer is also the chief operating decision maker (“CODM”). The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from Corporate operations.

ACI On Demand serves the needs of banks, merchants, and billers who use payments to facilitate their core business. These on-demand solutions are maintained and delivered through the cloud via our global data centers and are available in either a single-tenant environment for SaaS offerings, or in a multi-tenant environment for PaaS offerings.

ACI On Premise serves customers who manage their software on site or through a third-party public cloud environment. These on-premise customers use the Company’s software to develop sophisticated solutions, which are often part of a larger system located and managed at the customer specified site. These customers require a level of control and flexibility that ACI On Premise solutions can offer, and they have the resources and expertise to take a lead role in managing these solutions.

Revenue is attributed to the reportable segments based upon the product sold and mechanism for delivery to the customer. Expenses are attributed to the reportable segments in one of three methods: (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual products, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities as well as information technology and facilities related expense for which multiple segments benefit. The Company also allocates certain depreciation costs to the segments.

Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments, and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest,
income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude stock-based compensation, and net other income (expense).

Corporate and unallocated expenses consist of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, and other costs that are not considered when management evaluates segment performance.

The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Revenue
ACI On Demand$190,369 $192,952 $563,892 $475,299 
ACI On Premise125,514 161,949 343,386 383,075 
Total revenue$315,883 $354,901 $907,278 $858,374 
Segment Adjusted EBITDA
ACI On Demand$33,204 $18,561 $89,396 $35,639 
ACI On Premise69,553 99,553 159,555 184,890 
Depreciation and amortization(35,490)(33,913)(105,004)(88,543)
Stock-based compensation expense(8,061)(9,371)(22,943)(30,328)
Corporate and unallocated expenses(28,024)(19,512)(71,967)(80,315)
Interest, net(9,998)(15,999)(35,457)(36,906)
Other, net1,356 (2,369)(6,361)(2,879)
Income (loss) before income taxes$22,540 $36,950 $7,219 $(18,442)
Depreciation and amortization
ACI On Demand$10,227 $9,059 $30,411 $25,110 
ACI On Premise3,312 2,963 9,849 9,012 
Corporate21,951 21,891 64,744 54,421 
Total depreciation and amortization$35,490 $33,913 $105,004 $88,543 
Stock-based compensation expense
ACI On Demand$2,255 $2,389 $6,554 $6,554 
ACI On Premise2,259 2,227 6,568 6,234 
Corporate3,547 4,755 9,821 17,540 
Total stock-based compensation expense$8,061 $9,371 $22,943 $30,328 

Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information.
The following is revenue by primary geographic market and primary solution category for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended September 30, 2020Three Months Ended September 30, 2019
ACI On DemandACI On PremiseTotalACI On DemandACI On PremiseTotal
Primary Geographic Markets
Americas - United States$170,817 $28,392 $199,209 $176,172 $53,986 $230,158 
Americas - Other2,750 12,264 15,014 2,268 22,879 25,147 
EMEA14,564 64,748 79,312 12,191 72,662 84,853 
Asia Pacific2,238 20,110 22,348 2,321 12,422 14,743 
Total$190,369 $125,514 $315,883 $192,952 $161,949 $354,901 
Primary Solution Categories
Bill Payments$149,385 $— $149,385 $154,285 $— $154,285 
Digital Channels8,583 5,890 14,473 8,480 6,791 15,271 
Merchant Payments20,720 8,201 28,921 18,534 4,739 23,273 
Payments Intelligence9,037 8,849 17,886 8,759 13,623 22,382 
Real-Time Payments806 12,357 13,163 1,032 19,191 20,223 
Retail Payments1,838 90,217 92,055 1,862 117,605 119,467 
Total$190,369 $125,514 $315,883 $192,952 $161,949 $354,901 
Nine Months Ended September 30, 2020Nine Months Ended September 30, 2019
ACI On DemandACI On PremiseTotalACI On DemandACI On PremiseTotal
Primary Geographic Markets
Americas - United States$505,191 $106,192 $611,383 $425,033 $116,104 $541,137 
Americas - Other8,402 31,455 39,857 7,118 46,237 53,355 
EMEA42,006 148,129 190,135 36,751 167,268 204,019 
Asia Pacific8,293 57,610 65,903 6,397 53,466 59,863 
Total$563,892 $343,386 $907,278 $475,299 $383,075 $858,374 
Primary Solution Categories
Bill Payments$440,193 $— $440,193 $348,592 $— $348,592 
Digital Channels24,304 21,224 45,528 36,280 24,960 61,240 
Merchant Payments61,147 17,903 79,050 55,815 17,398 73,213 
Payments Intelligence29,902 16,904 46,806 26,614 27,164 53,778 
Real-Time Payments2,807 54,608 57,415 2,557 55,714 58,271 
Retail Payments5,539 232,747 238,286 5,441 257,839 263,280 
Total$563,892 $343,386 $907,278 $475,299 $383,075 $858,374 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
September 30, 2020December 31, 2019
Long-lived Assets
United States$1,469,111 $1,526,046 
Other732,595 759,501 
Total$2,201,706 $2,285,547 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and nine months ended September 30, 2020 and 2019. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three and nine months ended September 30, 2020 and 2019.