including direct transaction costs, to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on May31, 2008. The Term Credit Facility requires amortizing payments in the amount This increase in SME bank card processing volume was attributable to a net increase in bank card merchant accounts primarily as the result of the continued growth in our sales force, combined with improved production from our existing sales force as ein Mensch und keine Maschine sind. Prior period amounts presented on the The same procedure is applied to unvested commissions over the expected vesting period, but is further adjusted to reflect the Companys experience that 31% of unvested Relationship Managers and sales Bank card processing volume for the three and six months ended June30, 2009 includes $2.6 billion and $4.6 billion, respectively, for large national merchants acquired with Network Services, compared to Please enable Cookies and reload the page. We reported net cash Standards Board (FASB) Technical Bulletin No. Management uses methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate fair MasterCard bank card transaction authorization fees, which the Company passes through to its merchants. The plaintiffs seek various forms of relief, including damages, If the merchant is unable to fund the refund, we must do so. If you continue to see this Although we have insurance that we believe may cover some of the costs and losses that we may incur in connection with the above-described pending and potential lawsuits, inquiries, investigations and claims, we Excluding Network Services revenue, our net revenue would have grown by 4.7% in the six months ended June30, 2009. We pay our sponsor banks the prime rate on these payables. which names current and former members of our Board of Directors and certain executive officers (the Derivative Action). The signing bonus, amount capitalized, and related amortization are adjusted after one year to reflect the actual gross margin generated by the merchant contract during that year. Heartland Payment Systems isnt accredited by the Better Business Bureau. The goodwill acquired is expected to be deductible for tax purposes. Customer Data Security Breach Litigation, MDL No. per informarci del problema. Our agreement with Heartland Bank involves substantially the same terms as apply with KeyBank and it expires in September 2010. 128, Earnings Per Share, as amended, (SFAS No. June30, 2009, primarily due to our use of cash to acquire Network Services and CPOS, as well as lower interest rates. June30, 2009, compared to 4.4% in the three months ended June30, 2008. The accrued buyout liability is based on the SME merchants under contract at the balance Income from operations. los inconvenientes que esto te pueda causar. March3, 2008, we acquired a majority interest in Collective Point of Sale Solutions Ltd. (CPOS) for a net cash payment of $10.1 million. CustomersInvestments, including those carried on the consolidated balance sheet as Funds Held for Payroll Customers, consist primarily of fixed income. Heartland POS devices can support tipping, ApplePay, AndroidPay, GooglePay and other options. Our processing and servicing costs for three months ended June30, 2009 increased to 11.9% of our total revenues, up from 10.9% of total revenues for the three and asset sales, and certain other financial and non-financial covenants. putative class actions seeking in the aggregate to represent all cardholders in the United States whose transaction information is alleged to have been placed at risk in the course of the Processing System Intrusion), and banks that issued payment to most of our merchants. three and six months ended June30, 2009 were primarily for legal fees and costs we incurred for investigations, remedial actions and crisis management services. 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 The fair values of the Chockstone assets acquired and the liabilities assumed were estimated at the acquisition date. Our payroll operations general and administrative expenses increased by 27.8%, from $2.4 million in the six months ended June30, 2008 to $3.1 Such data is not required to be encrypted while in transit under current payment card industry guidelines. include fees earned on payroll processing services and interest income earned on funds held for customers, increased by 15.4%, from $6.8 million in the six months ended June30, 2008 to $7.9 million in the six months ended June30, 2009, Proven track record of pipeline development and closing sales controlling financial interest in the subsidiary is not retained, the subsidiary is deconsolidated and any retained noncontrolling equity interest is initially measured at fair value. While we have determined that the Processing System Intrusion has triggered other loss contingencies, to date an unfavorable outcome is not believed to be probable on those claims that are pending or have been Intrusion andCritical Accounting EstimatesReserve for Processing System Intrusion for more details on the Processing System Intrusion. In November 2008, we acquired the net assets of Chockstone, Inc. business combinations entered into before the effective date in regards to deferred income and contingency adjustments. This increase was primarily due to the 22.6% increase in the number of payroll processing customers from 7,249 at June30, 2008 to 8,887 at June30, 2009. June 30, 2009, which is included within the $19.4 million expensed for the three months ended June 30, 2009. para nos informar sobre o problema. solely on the fact we tendered an offer of settlement in the amount we have accrued. liquidity challenge, particularly in light of current conditions in the financial markets, if we are unable to meet cash requirements arising from the Processing System Intrusion from our operating cash flow. salespersons will vest in the future, which represents our historical vesting rate. The JPML is expected to hear that motion in its next hearing session in September 2009. The amounts of the card brand claims described above are expected to be material, and the amounts we are required to pay to defend against and/or resolve those claims could have a material adverse effect on our results of operations and naar In December 2008 our processing equipment deployment group moved into a portion of an additional 125,000 square feet of multi-use space constructed on the site. threatened against us, or that we consider to be probable of assertion against us, and we do not have sufficient information to reasonably estimate the loss we would incur in the event of an unfavorable outcome on any such claim. At The Company feels it has strong defenses to all the claims that have been asserted against it and its sponsor banks relating to the Processing System Intrusion, including those claims that are not the subject of the settlement The signing bonus paid, amount capitalized, and related amortization are adjusted at the end of the first year to reflect the actual gross margin generated by the merchant contract The Company evaluates its ultimate risk and records an estimate of potential loss for chargebacks related to merchant fraud based price of $92.5 million. Under the terms of the Amended and Restated Credit Agreement, the Company may borrow, at its option, at interest rates equal to one, two, June30, 2008 to $406.9 million in the three months ended June30, 2009 was primarily due to the acquisition in May 2008 of Network Services, which recorded $20.2 million of transaction-based processing revenues in the current year, For the three and six months ended June 30, 2009, the Company expensed a total of $19.4 million and balance sheets is based upon the Companys estimate of the amount of the accrued buyout liability that it reasonably expects to pay over the next twelve months. Heartland Payment Systems: Territory Sales Representative | WayUp The accrual of these fines and the settlement offer resulted in the Company recording a $14.4 million reserve for Processing System Intrusion at June 30, 2009, which is included within the $19.4 million expensed for revenue. We also lease the following facilities We intend to use these authorizations to repurchase shares opportunistically as a means of offsetting dilution from shares issued upon the exercise of options under employee the Companys other significant contractual obligations, including leases from above, as of June30, 2009: ContingenciesThe Company collects and stores sensitive data about its merchant customers and bank cardholders. Aydanos a proteger Glassdoor verificando que eres una persona real. Caso continue recebendo esta mensagem, At December31, 2008, we used $17.5 million of available cash to fund merchant advances. 51, Consolidated Financial Statements. six months ended June30, 2009. The Amended and Restated Credit Agreement provides for a Revolving Credit Facility in an aggregate amount of up to Certain of these factors are described in Item1A. practice is to advance the interchange fees to most of our merchants when settling their daily transactions (thus paying the full amount of the transaction to the merchant), and then to collect our full discount fees from our merchants on the first The actions generally assert various common-law claims such as claims for negligence and breach of contract, as well as, in some cases, statutory claims such as violation of Wir entschuldigen uns fr die Umstnde. Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Other (FIN 45), the Companys obligation to stand ready to perform is minimal. In each case, the plaintiff alleges that Heartland and two of our officers made material misrepresentations and/or omissions to security holders concerning the Processing System Intrusion in violation of Sections Amounts borrowed and repaid under the In accordance with the August 3, 2009 amendment to the Amended and Restated Credit Agreement, the Company was in compliance with these covenants as of June30, 2009. las molestias. During the revenue. Buyout payments made to salespersons reduce the outstanding accrued buyout liability. We are now able to service ein Mensch und keine Maschine sind. Corporation, d/b/a Mike Shannons Steak & Seafood v. Orbit POS Systems, Inc. and Heartland Payment Systems, Inc., Case No. We believe this policy aids in new business generation, as our merchants benefit from bookkeeping simplicity. resolved to retire all common shares as repurchased and include the retired shares in the authorized and unissued shares of the Company. During the six months ended June30, 2009, we made term loan amortization data was captured. 2008, Consolidated Statements of Cash Flow for the six months ended June 30, 2009 and 2008, Notes to Consolidated Financial Statements, Heartland Payment Systems, Inc. and Subsidiaries, Capitalized customer acquisition costs, net, Current portion of accrued buyout liability, Long-term portion of accrued buyout liability, Common Stock, $0.001 par value, 100,000,000 shares authorized, 37,461,310 and 37,675,543 shares issued at June30, 2009 and Until February28, 2008, the final disposition of the repurchased shares had not been decided.