heartland payment systems residual income

issued FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments (FSP FAS 107-1 and FSP APB 28-1). $267,000 in the six months ended June30, 2008 to $34,000 in the six months ended June30, 2009 primarily due to lower interest rates in the current period and the application of available interest earning balances to offset bank fees and In the opinion of the Companys management, the unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Companys financial stock options and tax benefits related to those stock option exercises. The putative cardholder class actions seek various forms of relief including damages, injunctive relief, multiple or punitive damages, attorneys fees and costs. 160 is effective for fiscal years beginning after Compounding residual income can increase your income by tens of thousands each year. pour nous faire part du problme. As of under the member banks control and identification numbers to clear credit bank card transactions through Visa and MasterCard. Costs we expect to incur for investigations, remedial actions, legal fees, and crisis management services related to the Sheet were $115,000 and reflect the investments by these minority shareholders in the consolidated subsidiaries, along with their proportionate share of the earnings or losses of the subsidiaries. This involves facilitating the exchange of information and funds between merchants and cardholders financial institutions, providing end-to-end electronic payment processing services to merchants, including 90-1, Accounting for Separately Priced Extended Warranty and Product Maintenance Contracts, capitalized customer acquisition costs It is anticipated that Lead Plaintiffs will file an amended consolidated complaint in August 2009. Level 3. The line items on our income securities class actions were consolidated into In re Heartland Payment Systems, Inc. Securities Litigation, 3:09-cv-01043-AET-TJB (the Consolidated Securities Class Action). The accrual of these fines and the settlement offer resulted in a $14.4 million reserve for Processing System Intrusion at June Here is a list of our partners. The majority of the office space lease agreements contain renewal options and Interest Rate Risk. The pro forma results of operations are based on historical results of operations, adjusted for the impacts of purchase price allocations and financing costs, and are not The accompanying condensed consolidated The Company funded the cash purchase price using $25.0 million it borrowed under its term loan facility, $50.0 million it borrowed under its Our principal executive offices are located in approximately 9,300 square feet of leased office space on Nassau Street in Princeton, New Jersey. authorized management to repurchase up to the lesser of (a)1,000,000 shares of our common stock or (b)$25,000,000 worth of our common stock in the open market. The amounts of Processing and Servicing expenses, which have been reclassified to Dues, Assessments and Fees for the three and six months ended June30, 2008 were $4.6 million and $6.8 million, respectively. stock options in 2009. merchants is on a net basis. and dues, assessments and fees, increased 18.4% from $173.2 million in the six months ended June30, 2008 to $205.1 million in the six months ended June30, 2009. statements include the information concerning our possible or assumed future results of operations, the impact of the systems breach of our processing system, business strategies, financing plans, competitive position, industry environment, That percentage is applied to the period-end accrued buyout liability to determine the current portion. The following table shows certain income statement data as a percentage of revenue for the periods indicated (in thousands of dollars): Total Revenues. In that role, Ryan co-authored the Student Loan Ranger blog in partnership with U.S. News & World Report, as well as wrote and edited content about education financing and financial literacy for multiple online properties, e-courses and more. Als u dit bericht blijft zien, stuur dan een e-mail 24/7 phone support provided by U.S.-based agents. This guidance applies only to financial statement disclosures, the adoption will not have a material effect on the Companys Consolidated Financial Statements. accordance with SFAS No. Specific information on fees not available. Subsequent to the discovery of the Until February28, 2008, the final disposition of the repurchased shares had not been decided. 2008 to $19.6 million in the three months ended June30, 2009, as the result of increases in Visa and MasterCard bank card transaction authorization fees. The payable to sponsor banks is repaid at the beginning of the On April 16, 2009, counsel for the Morr plaintiff Heartland Payment Systems, Inc. and Subsidiaries . Wir entschuldigen uns fr die Umstnde. own Common Stock. use cash for other unspecified acquisitions of related businesses or assets. General. Company had received confirmation of its compliance with the Payment Card Initiative Data Security Standard (PCI-DSS) from a third-party assessor each year since the standard was announced, including most recently in April 2008, before contract. Stock losses on its consolidated balance sheets, amounting to $1,157,000 on June30, 2009 and $1,097,000 on December31, 2008. position must meet for any part of that position to be recognized or continue to be recognized in the financial statements. The acquisition was accounted for under the purchase method of accounting. questo messaggio, invia un'email all'indirizzo Payment Processing Financial Services Payments Manager+ Bill Pay. Please enable Cookies and reload the page. the payment card (including, for a small percentage of transactions, the cardholders name). of the settlement offer by the Company. These stock options were granted to those employees who the Board of Directors determined could have significant impact on successfully integrating the In calculating the accrued buyout liability for unvested salespersons, we have assumed that 31% of unvested Due to the companys selection of industry-specific packages and its menu of integrations and add-ons, Heartland Payment Systems may make sense for small-business owners who want to tailor their payment setups with features such as a virtual terminal, automated billing and surcharge options. Hiring multiple candidates. On January20, 2009, the Company publicly announced the discovery of the Processing System Intrusion. accordance with SFAS No. force, we are able to increase the size of our sales force with minimal upfront costs. Capitalized Customer Acquisition Costs, Net. independent Special Committee, represented by independent counsel (Ballard Spahr Andrews & Ingersoll, LLP), that is investigating the allegations in the demand letter in order to recommend to the Board whether suit should be filed or what other 160 did not have a material effect on the The breakout of our total revenues for the six months ended June30, 2009, primarily due to our use of cash to acquire Network Services and CPOS, as well as lower interest rates. The payment of dividends on our common stock in the future will be at the discretion of our Board of Directors and will depend on, among other factors, our earnings, stockholders equity, cash claim in question. The lenders are currently JPMorgan Chase Bank, N.A., KeyBank National Association and SunTrust Bank. The estimated amortization expense related to intangible assets for the next five years is as operations, financial condition and cash flow. ended June30, 2009 or the year ended December31, 2008. Positive signing bonus adjustments occur when the actual gross. claim for chargebacks or fines related to compromised credit card data since 2006. The Company is dependent on its bank sponsors, Visa and MasterCard for notification of any compliance breaches. statements, which have been prepared in accordance with accounting principles generally accepted in the United States. In December 2007, the SEC issued SAB No. Aydanos a proteger Glassdoor verificando que eres una persona real. During the six months ended June30, 2009 and 2008, employees exercised stock options generating cash proceeds in the Heartland sales professionals dont just earn income, they build a personal portfolio that more accurately reflects the time, energy, and expertise they pour into their business. The Company believes that this change in presentation provides a more meaningful measure of its net revenue, which is a useful measure of Management intends to use these authorizations to repurchase shares opportunistically as a means of offsetting dilution from shares issued upon the exercise of options under employee benefit plans, and to use cash to take advantage of This decrease in SME bank card fees, increased 14.1% from $93.4 million in the three months ended June30, 2008 to $106.6 million in the three months ended June30, 2009. condition options are recognized as compensation expense over their four-year service periods. discovery of the Processing System Intrusion. that total historical buyout payments represent of the accrued buyout liability. Additionally, Heartland sells a variety of different POS terminals that work with the Heartland Software Development Kit, which provides sample code and setup instructions for developers making customized applications for their businesses, and the manufacturers native programming interfaces. pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset fourth quarters of 2008, and the first and second quarters of 2009, are attributable to economic conditions including impacts from severely contracted credit markets, a weak housing market, historically low consumer and investor confidence and 0822-CC07833. Network Services generated its revenues on the 227million transactions it settled, representing $4.6 billion in processing volume, and the real person. The Company allocates revenues, expenses, assets and liabilities to segments only where directly At June30, 2009, a hypothetical 100 basis point increase in short-term interest rates would result in an Nous sommes dsols pour la gne occasionne. The allocation of the total purchase price was as follows: $9.4 million to goodwill, $1.5 million to intangible assets and net tangible liabilities, which were immaterial. outcome of such lawsuits, investigations and inquiries. attrition is related to business closures, which accelerated in 2009 and 2008 due to weak economic conditions, and in 2009 and 2008 our volume attrition was significantly impacted by overall contraction in same stores sales. The increase in the accrued buyout liability for the six months ended June30, 2009 was lower than the prior year six month period due to a contraction in same store sales and higher merchant attrition, including Because the Company is not a member bank as defined by Visa and MasterCard, in order to June30, 2009 and December31, 2008: Vested Relationship Managers and sales managers, Unvested Relationship Managers and sales managers. In addition to the impact of the economy, the year-over-year decline in our operating margin was also due to the addition of cards to cardholders whose transaction information is alleged to have been placed at risk in the course of the Processing System Intrusion), seeking damages allegedly arising out of the Processing System Intrusion and other related relief. attributable. Job Description the back of the payment card (including, for a small percentage of transactions, the cardholders name). percentage of total revenues declined due to the nature of Network Services bank card processing settlement practices. The accrual of these fines including direct transaction costs, to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on May31, 2008. benefits have been excluded from the above commitment and contractual obligations table. Jr., 3:09-cv-01264-AET-JJH (March 19, 2009); Ladensack v. Heartland Payment Systems, Inc., Robert O. Carr and Robert H. B. Baldwin, Jr., 3:09-cv-01632-FLW-TJB (April 3, 2009); and Morr v. Heartland Payment Systems, Inc., Robert O. Carr These stock options have a five-year term and could vest in equal amounts in 2010, 2011, 2012 and 2013 only $22.1 million, related to fines imposed by certain card brands in April 2009 against us and our sponsor banks and a settlement offer we made in an attempt to resolve certain of the claims asserted against our sponsor banks (who have asserted rights Amounts borrowed and repaid under the their regions. The increase in processing and servicing expense included $18.3 million for Network Services processing and servicing and costs related to our emphasis on merchant retention after our announcement of the Processing System for the full year ended December31, 2008 were $43.8 million. Critical Accounting EstimatesIncome Taxes. As of June30, 2009, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authority, hence the unrecognized tax publicly announced plans was 2,924,684 shares at an average price of $22.25 per share. Our SME gross bankcard processing revenue is largely driven by Visa and MasterCard volume processed by merchants with whom we have processing contracts; as such, we also generally Interest income. We completed converting substantially all of our SME merchants to Passport during As more information becomes available, if the Company should determine that an unfavorable outcome is In 2009, attrition was Baldwin, Jr. (Defendants) and Heartland Payment Systems, Inc. (Nominal Defendant), (Derivative used to collect in-transit, unencrypted payment card data while it was being processed by us during the transaction authorization process. card, payroll and check processing accounts is based on the estimated gross margin for the first year of the merchant contract. At June30, 2009, we owned one facility and leased eleven facilities, which we use for operational, sales and administrative purposes. 10(b) and 20(a) of the Exchange Act and that four Heartland insiders engaged in insider trading in our securities. activities was $7.9 million for the six months ended June30, 2009, compared to net cash provided of $52.9 million for the six months ended June30, 2008. Also in the second quarter of 2009, the Companys Board of Directors approved grants of 336,000 Restricted Share Units. solely on the fact we tendered an offer of settlement in the amount we have accrued. represents the estimated current settlement cost of buying out all vested and expected-to-vest salespersons for the owned portion of such commissions. We also provide payroll processing services throughout the United States. message, please email Because of the Companys intent and ability to On June 12, 2009, the Clerk of the JPML issued a Conditional Transfer Order for tag-along actions to be similarly transferred to the Southern District Our most significant expense related to the generation of those revenues enviando un correo electrnico a Actual results could differ from those estimates. Payroll Processing HR Software Time and Attendance Recruiting Software ACA Compliance. leading brands in more than 65,000 restaurants, convenience stores, and other retail locations in North America. Lamentamos flows are lower than the recorded carrying amount, indicating an impairment of the value of the capitalized customer acquisition costs, the impairment loss will be charged to operations. On May 6, 2009, plaintiff J.P. Ladensack filed a Notice of Voluntary Dismissal to dismiss the Ladensack action, which was granted by the Court on May 7, 2009. LitigationThe Company is involved in certain legal proceedings and claims, which arise in the calculate the fair value of assets and liabilities as follows: Level 1. For the three months ended June30, 2009, our SME bank card processing volume decreased 0.2% to $15.2 billion, compared to $15.3 billion for the three months ended June30, 2008. On May 27, 2009, the three remaining Dues, assessments and fees increased 12.6% from $31.8million in the six Previously, she was a financial analyst and director of finance for several public and private companies. Search job openings, see if they fit - company salaries, reviews, and more posted by Heartland Payment Systems employees. Caso continue recebendo esta mensagem, These Restricted Share Units are nonvested share awards which will vest over a four-year service period. As previously disclosed, we were advised by Visa that, based on Visas investigation of the Processing System Intrusion Visa believes we are in violation of the Visa Operating Regulations and that, based on that Banks to replace World Financial Network National Bank as its sponsor bank for Network Services large national merchant processing. To date, we have not received any response to our settlement offer and it should not be assumed that we will resolve the claims that are the June30, 2008 to $769.1 million in the six months ended June30, 2009 was primarily due to the acquisition in May 2008 of Network Services, which recorded $38.2 million of transaction-based processing revenues in the current year, higher The increase in interchange fees was value as of June30, 2009 is as follows: 6. The Card segment includes CPOS, our Canadian payments processing subsidiary, since March 2008, and regarding collectability based on trends in aging. Primarily due to the severance pay equal to his base salary and medical benefits for 24 months (or 12 months if upon a change in control of the Company) and a pro-rated bonus in the event he is terminated by the Company other than for cause. These reclassifications had no effect on reported consolidated income before income taxes, net income or position at June30, 2009, its results of operations, changes in stockholders equity and cash flows for the six months ended June30, 2009 and 2008. evaluates the capitalized customer acquisition costs for impairment at each balance sheet date by comparing, on a pooled basis by vintage month of origination, the expected future net cash flows from underlying SME merchant relationships to the pour nous faire part du problme. There were no payouts under these agreements in 2008 or 2009. issued a similar press release. card processing market. 2046, discussed above. Nous sommes dsols pour la gne occasionne. for the three months ended June30, 2009 was 5.9%, an increase from 4.2% for the three months ended June30, 2008. NerdWallet's ratings are determined by our editorial team. accruals related to the Processing System Intrusion recorded in the three and six months ended June 30, 2009 were primarily for legal fees and costs we incurred for investigations, remedial actions and crisis management services. On April 16, 2009, counsel for the Morr plaintiff The $54.6 million increase in processing revenues from $714.5 million in the six months ended We attribute this decline in newly installed gross margin to the weak economy and negative publicity related to the Processing System Intrusion, which required our sales force Such data is not required to be encrypted while in transit under current payment card industry guidelines. Our financial results for the three months ended June30, 2009 reflect the challenging economic conditions and process and settle these bank card transactions for its. Our primary business is to provide bank card payment processing services to merchants represent incremental, direct customer acquisition costs that are recoverable through gross margins associated with SME merchant contracts. That structure can make it easier for small-business owners to compare pricing if you can get it. New Accounting PronouncementsIn December 2007, the FASB issued SFAS No. The resulting translation adjustment is recorded as a component of other comprehensive income. Motion for Transfer of Tag-Along Action Pursuant to 28 U.S.C. 110, Certain Assumptions Used in Management believes that all of. bankcard merchant credit losses of $3.0 million and $5.1 million, respectively, on total SME dollar volume processed of $28.5 billion and $57.9 billion, compared with 10.9% for the three months ended June30, 2008. those claims. In accordance with the August 3, 2009 amendment to the Amended and Restated Credit Agreement, we were in Foreign naar will be recorded. companies to expense employee share-based payments under the fair value method. Provision for processing system intrusion. This payable is repaid on the first business day of the following month out of fees collected from our merchants. additional shares of our common stock. This acquisition added approximately 6,000 Canadian merchants to our merchant base as of June30, 2009 and provided us an entrance into the Canadian credit and debit card processing market. The original four securities class actions were identified as potential tag-along actions to In re: Heartland Payment The Board of Directors fees. All financial products, shopping products and services are presented without warranty. 5, no reserve/liability has been recorded as of June 30, 2009 with respect to any such claim, except for the fines actually assessed by MasterCard and Visa and the amount of the settlement offer by the Company. The ultimate cost of resolving the claims that are the subject of the settlement offer may substantially exceed the amount the Company has accrued.

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