Fidelity National Information Services (FIS) 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Apr. 30, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	Fidelity National Information Services, Inc.
Entity Central Index Key	0001136893
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$3,661,517,270
Entity Common Stock, Shares Outstanding		376,587,420

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
Current assets:
Cash and cash equivalents	463.9	430.9
Settlement deposits	44	50.8
Trade receivables, net of allowance for doubtful accounts of $42.5 and $41.8 at March 31, 2010 and December 31, 2009, respectively	717.5	765.4
Settlement receivables	76.7	62.5
Other receivables	49.8	30.9
Receivables from related parties	33.9	32
Prepaid expenses and other current assets	149.1	141.2
Deferred income taxes	58.3	80.9
Assets held for sale	0	71.5
Total current assets	1593.2	1666.1
Property and equipment, net	368.9	375.9
Goodwill	8,221	8232.9
Intangible assets, net	2369.6	2396.8
Computer software, net	914.1	932.7
Deferred contract costs	249.3	261.4
Other noncurrent assets	117.9	131.8
Total assets	13,834	13997.6
Current liabilities:
Accounts payable and accrued liabilities	541.4	523.2
Due to Brazilian venture partners	72.8	73
Settlement payables	108.2	122.3
Current portion of long-term debt	236.9	236.7
Deferred revenues	299.4	279.5
Total current liabilities	1258.7	1234.7
Deferred revenues	91.4	104.8
Deferred income taxes	875.9	915.9
Long-term debt, excluding current portion	2815.6	3016.6
Other long-term liabilities	234.9	207
Total liabilities	5276.5	5,479
FIS stockholders' equity:
Preferred stock $0.01 par value; 200 shares authorized, none issued and outstanding at March 31, 2010 and December 31, 2009	0	0
Common stock $0.01 par value; 600 shares authorized, 381.1 shares issued at March 31, 2010 and December 31, 2009	3.8	3.8
Additional paid in capital	7324.4	7345.1
Retained earnings	1209.5	1134.6
Accumulated other comprehensive earnings	54.2	82.2
Treasury stock, $0.01 par value, 6.7 and 6.6 shares at March 31, 2010 and December 31, 2009, respectively	-239.2	-256.8
Total FIS stockholders' equity	8352.7	8308.9
Noncontrolling interest	204.8	209.7
Total equity	8557.5	8518.6
Total liabilities and equity	$13,834	13997.6

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
Current assets:
Allowance for doubtful accounts, Trade receivables	42.5	41.8
FIS stockholders' equity:
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	200	200
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	0.01	0.01
Common stock, shares authorized	600	600
Common stock, shares issued	381.1	381.1
Treasury stock, par value	0.01	0.01
Treasury stock, shares	6.7	6.6

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Condensed Consolidated Statements of Earnings [Abstract]
Processing and services revenues (for related party activity, see note 3)	1249.6	794.1
Cost of revenues (for related party activity, see note 3)	907.2	618.4
Gross profit	342.4	175.7
Selling, general, and administrative expenses (for related party activity, see note 3)	158.6	95.9
Operating income	183.8	79.8
Other income (expense):
Interest expense, net	-28.3	-31.2
Other income (expense), net	-5.3	1.2
Total other income (expense)	-33.6	(30)
Earnings from continuing operations before income taxes	150.2	49.8
Provision for income taxes	55.6	17.1
Earnings from continuing operations, net of tax	94.6	32.7
Loss from discontinued operations, net of tax	-1.1
Net earnings	93.5	32.7
Net loss attributable to noncontrolling interest	0.1	0.3
Net earnings attributable to FIS	93.6	33
Net earnings per share - basic from continuing operations attributable to FIS common stockholders	0.25	0.17
Net earnings per share - basic from discontinued operations attributable to FIS common stockholders
Net earnings per share - basic attributable to FIS common stockholders	0.25	0.17
Weighted average shares outstanding - basic	373.3	190
Net earnings per share - diluted from continuing operations attributable to FIS common stockholders	0.25	0.17
Net earnings per share - diluted from discontinued operations attributable to FIS common stockholders
Net earnings per share - diluted attributable to FIS common stockholders	0.25	0.17
Weighted average shares outstanding - diluted	379.9	191.6
Cash dividends paid per share	0.05	0.05
Amounts attributable to FIS common stockholders
Earnings from continuing operations, net of tax	94.7	33
Loss from discontinued operations, net of tax	-1.1
Net earnings attributable to FIS	93.6	$33

2_Condensed Consolidated Statem

Condensed Consolidated Statement of Equity and Comprehensive Earnings (Unaudited) (USD $)
In Millions	Common Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Earnings (Loss)	Treasury Stock	Noncontrolling Interest	Comprehensive Earnings	Total
Shares, Beginning Balance at Dec. 31, 2009	381.1				-6.6
Beginning Balance at Dec. 31, 2009	3.8	7345.1	1134.6	82.2	-256.8	209.7		8518.6
Exercise of stock options and stock purchase rights		-36.6			49.8			13.2
Exercise of stock options and stock purchase rights, shares					1.3
Tax benefit associated with exercise of stock options		-0.1						-0.1
Stock-based compensation		16						16
Purchases of treasury stock					-32.2			-32.2
Purchases of treasury stock, shares					-1.4
Cash dividends paid ($0.05 per share) and other			-18.7			-0.8		-19.5
Comprehensive earnings:
Net earnings			93.6			-0.1	93.5	93.5
Other comprehensive earnings, net of tax:
Unrealized gain on investments and derivatives, net				(7)			(7)	(7)
Unrealized gain on foreign currency translation				(21)		(4)	(25)	(25)
Comprehensive earnings:							61.5
Ending Balance at Mar. 31, 2010	3.8	7324.4	1209.5	54.2	-239.2	204.8		8557.5
Shares, Ending Balance at Mar. 31, 2010	381.1				-6.7

3_Condensed Consolidated Statem

Condensed Consolidated Statement of Equity and Comprehensive Earnings (Parenthetical) (Unaudited) (USD $)
	3 Months Ended Mar. 31, 2010
Cash dividends paid per share	0.05
Retained Earnings
Cash dividends paid per share	0.05
Noncontrolling Interest
Cash dividends paid per share	0.05

4_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities:
Net earnings	93.5	32.7
Adjustment to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	152.8	92
Stock-based compensation	16	9.5
Deferred income taxes	-8.5	1.3
Income tax benefit from exercise of stock options	0.1	-0.1
Other operating activities, net	5.4	0.9
Changes in assets and liabilities, net of effects from acquisitions:
Net decrease (increase) in trade receivables	45.7	68.9
Net decrease (increase) in settlement receivables	-21.6	0.7
Net decrease (increase) in prepaid expenses and other assets	-9.2	19.1
Net increase in deferred contract costs	-7.2	-10.9
Net increase (decrease) in deferred revenue	11.5	16
Net increase (decrease) in accounts payable, accrued liabilities, and other liabilities	-6.9	-67.2
Net cash provided by operating activities	271.6	162.9
Cash flows from investing activities:
Additions to property and equipment	-20.8	(15)
Additions to computer software	-37.4	-30.3
Net proceeds from sale of assets	71.5
Acquisitions, net of cash acquired	(50)	(3)
Other investing activities, net	39.2
Net cash provided by (used in) investing activities	2.5	-48.3
Cash flows from financing activities:
Borrowings	1841.6	541.8
Repayment of borrowings	(2,042)	-595.9
Income tax benefits from exercise of stock options	-0.1	0.1
Proceeds from exercise of stock options	13.2	3.6
Treasury stock purchases	-32.2
Dividends paid	-19.5	-9.5
Net cash used in financing activities	(239)	-59.9
Effect of foreign currency exchange rates on cash	-2.1	-3.6
Net increase in cash and cash equivalents	33	51.1
Cash and cash equivalents, beginning of period	430.9	220.9
Cash and cash equivalents, end of period	463.9	272
Cash paid for interest	35.5	30.7
Cash paid for taxes	14.5	37.9

Basis of Presentation

Basis of Presentation
	3 Months Ended Mar. 31, 2010
Basis of Presentation [Abstract]
Basis of Presentation	(1)Basis of Presentation The unaudited financial information included in this report includes the accounts of FIS and its subsidiaries prepared in accordance with U.S. generally accepted accounting principles and the instructions to Form 10-Q and Article10 of RegulationS-X. All adjustments considered necessary for a fair presentation have been included. This report should be read in conjunction with the Companys Annual Report on Form 10-K for the year ended December31, 2009. The preparation of these Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain reclassifications have been made in the 2009 Condensed Consolidated Financial Statements to conform to the classifications used in 2010. We report the results of our operations in four reporting segments: 1) Financial Solutions Group (FSG), 2) Payment Solutions Group (PSG), 3) International Solutions Group (ISG) and 4) Corporate and Other (Note 11).

Change in Accounting for Revenu

Change in Accounting for Revenue Recognition
	3 Months Ended Mar. 31, 2010
Change in Accounting for Revenue Recognition [Abstract]
Change in Accounting for Revenue Recognition	(2)Change in Accounting for Revenue Recognition In October2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No.2009-13, Multiple-Deliverable Revenue Arrangements- (ASU 2009-13). This new standard revises the guidance for determining whether multiple deliverables in an arrangement can be separated for revenue recognition and how the consideration should be allocated. It eliminates the use of the residual method of revenue recognition and requires the allocation of consideration to each deliverable using the relative selling price method. The selling price for each deliverable is based on vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE or TPE is available. FIS early adopted the provisions of ASU 2009-13 prospectively for all new and materially modified arrangements after January1, 2010. We establish VSOE of selling price using the price charged when the same element is sold separately, or in the case of post-contract customer support or other recurring services, when a substantive stated renewal rate is provided to the customer. In certain limited circumstances, the Company is not able to establish VSOE for all deliverables in a multiple element arrangement. This may be due to the infrequent occurrence of standalone sales for an element, a limited sales history for new solutions or pricing within a broader range than permissible by our policy to establish VSOE. In those circumstances, we proceed to the alternative levels in the hierarchy of determining selling price. TPE of selling price is established by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. The Company is typically not able to determine TPE and we have not used this measure since we are unable to reliably verify standalone prices of competitive solutions. ESP is established in those instances where neither VSOE nor TPE are available, considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life cycle. Consideration is also given to market conditions such as competitor pricing strategies and industry technology life cycles. Use of ESP was limited to a very small portion of our solutions, principally software license fees and related installation fees. The Companys arrangements with multiple deliverables may include one or more elements that are subject to the existing software revenue recognition guidance. The consideration for these multiple element arrangements is allocated to the software deliverables and the non-software deliverables based on the relative selling prices of all of the elements in the arrangement using the hierarchy in ASU 2009-13. The appropriate revenue recognition guidance is then applied to the respective software and non-software elements. Processing and services revenues would have been approximately $2.0million less than reported if the new or materially modified arrangements after January1, 2010 had been subject to the prior ac

Related Party Transactions

Related Party Transactions
	3 Months Ended Mar. 31, 2010
Related Party Transactions [Abstract]
Related Party Transactions	(3)Related Party Transactions We are party to certain related party agreements described below. Revenues and Expenses A detail of related party items included in revenues for the three-month periods ended March 31, 2010 and 2009 is as follows (in millions): 2010 2009 Banco Santander item processing revenue $ 10.7 $ 8.6 Banco Bradesco item processing revenue 3.9 3.0 Banco Santander Brazilian Venture revenue 12.8 11.2 Banco Bradesco Brazilian Venture revenue 32.3 17.9 FNF data processing services revenue 11.6 11.8 Sedgwick data processing services revenue 8.9 10.0 Ceridian data processing services revenue 1.9 0.8 LPS services revenue 0.1 0.1 Total related party revenues $ 82.2 $ 63.4 See Note 7 for a discussion of the Brazilian outsourced card-processing venture with Banco Santander and Banco Bradesco (the Brazilian Venture). A detail of related party items included in operating expenses (net of expense reimbursements) for the three-month periods ended March31, 2010 and 2009 is as follows (in millions): 2010 2009 Equipment and real estate leasing with FNF and LPS $ 0.6 $ 5.9 Administrative corporate support and other services with FNF and LPS 0.8 (0.5 ) Total related party expenses $ 1.4 $ 5.4 FNF We provide data processing services to Fidelity National Financial, Inc. (FNF), our former parent, consisting primarily of infrastructure support and data center management. The Executive Chairman of the Board of Directors of FIS is also the Executive Chairman of the Board of Directors of FNF. Our agreement with FNF runs through June30, 2013, with an option to renew for one or two additional years, subject to certain early termination provisions (including the payment of minimum monthly service and termination fees). During the 2009 third quarter, FNF entered into a transaction that triggered the repayment of the $5.9million note payable to FIS. We recorded interest income related to this note of less than $0.1million for the three months ended March31, 2009. Historically, FNF has provided to us, and to a lesser extent we have provided to FNF, certain administrative support services relating to general management and administration. The pricing for these services, both to and from FNF, is at cost. We also incurred expenses for amounts paid by us to FNF under leases of certain personal property and technology equipment. Ceridian We provide business process outsourcing services to Ceridian Corporation (Ceridian), a company in which FNF holds an approximate 33% equity interest. Sedgwick We provide data processing services to Sedgwick CMS, Inc. (Sedgwick), a company in which FNF holds an approximate 32% equity interest. LPS We provide transitional services to Lender Processing Services, Inc. (LPS) as a result of the spin-off of this former subsidiary in July, 2008. In addition, we have entered into certain property management and real estate lease agreements

Unaudited Net Earnings per Shar

Unaudited Net Earnings per Share
	3 Months Ended Mar. 31, 2010
Unaudited Net Earnings per Share [Abstract]
Unaudited Net Earnings per Share	(4)Unaudited Net Earnings per Share The basic weighted average shares and common stock equivalents for the three-month periods ended March31, 2010 and 2009 are computed using the treasury stock method. The following table summarizes the earnings per share attributable to FIS common stockholders, for the three-month periods ended March31, 2010 and 2009 (in millions, except per share amounts): 2010 2009 Earnings from continuing operations attributable to FIS, net of tax $ 94.7 $ 33.0 Loss from discontinued operations attributable to FIS, net of tax (1.1 ) Net earnings attributable to FIS $ 93.6 $ 33.0 Weighted average shares outstanding basic 373.3 190.0 Plus: Common stock equivalent shares assumed from conversion of options 6.6 1.6 Weighted average shares outstanding diluted 379.9 191.6 Net earnings per share basic from continuing operations attributable to FIS common stockholders $ 0.25 $ 0.17 Net earnings per share basic from discontinued operations attributable to FIS common stockholders Net earnings per share basic attributable to FIS common stockholders $ 0.25 $ 0.17 Net earnings per share diluted from continuing operations attributable to FIS common stockholders $ 0.25 $ 0.17 Net earnings per share diluted from discontinued operations attributable to FIS common stockholders Net earnings per share diluted attributable to FIS common stockholders $ 0.25 $ 0.17 Options to purchase approximately 11.4million shares and 19.0million shares of our common stock for the three-month periods ended March31, 2010 and 2009, respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive.

Acquisitions and Dispositions

Acquisitions and Dispositions
	3 Months Ended Mar. 31, 2010
Acquisitions and Dispositions [Abstract]
Acquisitions and Dispositions	(5)Acquisitions and Dispositions Metavante On October1, 2009, we completed the acquisition of Metavante (the Metavante Acquisition). Metavante expanded the scale of FIS core processing and payment capabilities, added trust and wealth management services and added to our EFT capabilities with the NYCE Network. Metavante also added significant scale to treasury and cash management offerings and provided an entry into the healthcare and government payments markets. The total purchase price was as follows (in millions): Value of Metavante common stock $ 4,066.4 Value of Metavante stock awards 121.4 Total purchase price $ 4,187.8 We recorded a preliminary allocation of the purchase price to Metavante tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of October1, 2009. Goodwill was recorded based on the amount by which the purchase price exceeded the fair value of the net assets acquired. The preliminary purchase price allocation was as follows (in millions): Cash $ 439.7 Trade and other receivables 237.9 Land, buildings, and equipment 119.8 Other assets 144.4 Computer software 287.7 Intangible assets 1,572.0 Goodwill 4,083.1 Liabilities assumed (2,673.4 ) Noncontrolling interest (23.4 ) Total purchase price $ 4,187.8 The following table summarizes the liabilities assumed in the Metavante Acquisition (in millions): Long-term debt including current portion $ 1,720.1 Deferred income taxes 544.4 Other liabilities 408.9 $ 2,673.4 During the quarter ended March31, 2010, the Company completed certain tax studies and appraisals and recorded a reduction of $3.9million in the provisional goodwill balance, an offsetting reduction in other liabilities of $2.2million, an increase in land, buildings and equipment of $1.5million and adjustments of less than $1.0million to trade and other receivables, accrued liabilities and deferred income taxes. These adjustments were not given retrospective application to December31, 2009 due to their immateriality. As of the acquisition date, WPM, L.P., a Delaware limited partnership affiliated with Warburg Pincus Private Equity IX, L.P. (collectively Warburg Pincus) owned 25% of the outstanding shares of Metavante common stock, and was a party to a purchase right agreement with Metavante that granted Warburg Pincus the right to purchase additional shares of Metavante common stock under certain conditions in order to maintain its interest. The Company and Warburg Pincus entered into a replacement stock purchase right agreement effective upon consummation of the merger, granting Warburg Pincus the right to purchase comparable FIS shares in lieu of Metavante shares. The purchase right agreement relates to Metavante employee stock options that were outstanding as of the date of Warburg Pincus initial investment in Metavante. The stock purchase right may be exercised quarterly for a number of shares equal to one-third of the num

Condensed Consolidated Financia

Condensed Consolidated Financial Statement Details
	3 Months Ended Mar. 31, 2010
Condensed Consolidated Financial Statement Details [Abstract]
Condensed Consolidated Financial Statement Details	(6)Condensed Consolidated Financial Statement Details The following tables show the Companys condensed consolidated financial statement details as of March31, 2010 and December31, 2009 (in millions): March 31, 2010 Accumulated Depreciation and Cost Amortization Net Property and equipment $ 708.0 $ 339.1 $ 368.9 Intangible assets $ 3,078.8 $ 709.2 $ 2,369.6 Computer software $ 1,367.3 $ 453.2 $ 914.1 December 31, 2009 Accumulated Depreciation and Cost Amortization Net Property and equipment $ 697.6 $ 321.7 $ 375.9 Intangible assets $ 3,041.5 $ 644.7 $ 2,396.8 Computer software $ 1,381.6 $ 448.9 $ 932.7

Brazilian Venture

Brazilian Venture
	3 Months Ended Mar. 31, 2010
Brazilian Venture [Abstract]
Brazilian Venture	(7)Brazilian Venture In March2006, we entered into an agreement with ABN AMRO Real (ABN) and Banco Bradesco S.A. ( Banco Bradesco) to form a venture to provide comprehensive, fully outsourced card processing and call center services to Brazilian card issuers. During the third quarter of 2008, Banco Santander Spain (Banco Santander) acquired majority control of ABN. Since then, Banco Santander publicly stated its intention to consolidate all Brazilian card processing operations onto its own in-house technology platform, and notified the Brazilian Venture during 2009 of its desire to exit the relationship. In late January2010, Banco Santander ceased processing its card portfolio on the Brazilian Ventures systems. We are presently negotiating Banco Santanders exit from the Brazilian Venture, including an applicable termination payment, ongoing call center services, forgiveness of notes payable by FIS upon final migration of the card portfolios of Banco Santander and Banco Bradesco, and waiver of our put agreement, the terms of which must be approved by Banco Bradesco. We received a partial settlement payment of approximately $34.5million during the first quarter which has been recorded as a deferred liability, pending final resolution of the negotiations and agreement by all parties. The Brazilian Venture currently processes approximately 12.9million cards for Banco Bradesco and provides call center, cardholder support and collection services for all of Banco Bradescos card portfolios. As a result of the exit of Banco Santander from the Brazilian Venture, Banco Bradesco and the Company are renegotiating their business relationship under the Brazilian Venture.

Long-Term Debt

Long-Term Debt
	3 Months Ended Mar. 31, 2010
Long-Term Debt [Abstract]
Long-Term Debt	(8)Long-Term Debt Long-term debt as of March31, 2010 and December31, 2009 consisted of the following (in millions): March 31, December 31, 2010 2009 Term Loan A, secured, interest payable at LIBOR plus 0.75% (0.98% at March31, 2010), quarterly principal amortization, maturing January2012 $ 1,837.5 $ 1,890.0 Metavante Term Loan, secured, interest payable at LIBOR plus 3.25% (3.50% at March31, 2010), quarterly principal amortization, maturing November2014 (net of $3.3million fair value discount) 792.6 794.5 Term Loan C, secured, interest payable at LIBOR plus 4.25% (4.48% at March31, 2010), maturing January2012 50.0 200.0 Revolving Loan, secured, interest payable at LIBOR plus 0.60% (Eurocurrency Borrowings), Fed-funds plus 0.60% (Swingline Borrowings) or Prime plus 0.00% (Base Rate Borrowings) plus 0.15% facility fee (0.83% at March31, 2010), maturing January 2012. Total of $555.0million unused as of March31, 2010 339.4 336.0 Other promissory notes with various interest rates and maturities 33.0 32.8 3,052.5 3,253.3 Less current portion (236.9 ) (236.7 ) Long-term debt, excluding current portion $ 2,815.6 $ 3,016.6 The fair value of the Companys long-term debt at March31, 2010 is estimated to be approximately $53.5million lower than the carrying value (based on values of trades of our debt made in close proximity to quarter-end, which are considered Level 2 measurements) in accordance with the authoritative guidance for fair value measurements. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. Therefore, the values presented are not necessarily indicative of amounts the Company could realize or settle currently. We may borrow, repay and re-borrow amounts under the Revolving Loan from time to time until the maturity of the Revolving Loan. We must make quarterly principal payments under the Term Loan A of $52.5million per quarter from June30, 2010 through September30, 2011, with the remaining balance of $1,522.5million payable on January18, 2012. As of December31, 2009, there are no longer any mandatory quarterly principal payments on the Term Loan C as these requirements have been fulfilled in full due to principal prepayments made to date. The remaining principal balance of the Term Loan C is payable on January18, 2012. We must make quarterly principal payments on the Metavante Term Loan in the amount of $2.0million on the first business day of each February, May, August, and November with the balance of $759.4million payable on November1, 2014. In addition to the scheduled principal payments, the term loans are (with certain exceptions) subject to mandatory prepayment upon the occurrence of certain events. There were no mandatory prepayments owed for the period ended March31, 2010. Voluntary prepayment of the term loans is generally permitted at any time without fee upon proper notice and subject to a minimum dollar requirement. Commitment reductions of the Revolving L

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(9)Commitments and Contingencies Litigation In the ordinary course of business, the Company is involved in various pending and threatened litigation matters related to operations, some of which include claims for punitive or exemplary damages. The Company believes that no actions, other than the matters listed below, depart from customary litigation incidental to its business. As background to the disclosure below, please note the following: These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities. The Company reviews these matters on an on-going basis and follows the authoritative provisions for accounting for contingencies when making accrual and disclosure decisions. A liability must be accrued if (a)it is probable that an asset has been impaired or a liability has been incurred and (b)the amount of loss can be reasonably estimated. If one of these criteria has not been met, disclosure is required when there is at least a reasonable possibility that a loss may have been incurred. When assessing reasonably possible and probable outcomes, the Company bases decisions on the assessment of the ultimate outcome following all appeals. Legal fees associated with defending these matters are expensed as incurred. Litigation Related to the Metavante Merger During the second quarter of 2009, a putative class action complaint was filed by a purported Metavante shareholder against Metavante, its directors, certain officers, and FIS. The complaint alleged that the Metavante directors and officers breached fiduciary duties to the Metavante shareholders and that Metavante and FIS aided and abetted such breaches. The complaint sought to enjoin the proposed merger transaction, preliminarily and permanently, and also sought unspecified money damages, attorneys fees, and class certification. An amended complaint was subsequently filed adding an additional plaintiff, but it was otherwise the same as the original complaint. The case is Lisa Repinski, et al v. Michael Hayford, et al., Milwaukee County Circuit Court Case No.09CV5325. A second putative class action containing similar allegations was also filed in the second quarter of 2009 by another purported Metavante shareholder against Metavante and its directors and certain officers. This complaint sought to enjoin the merger transaction, preliminarily and permanently, and also sought unspecified money damages, attorneys fees, and class certification. The case is Samuel Beren v. Metavante Technologies, Inc. et al., Milwaukee County Circuit Court Case No.09CV6315. The two cases were consolidated into a single action in the second quarter of 2009 as In re Metavante Technologies, Inc. Shareholder Litigation, No.09CV5325. The parties signed a Memorandum of Understanding settling the litigation during the third quarter of 2009 that was subject to court approval. The parties have stayed all litigation and the court has executed a protective order to permit confirmatory discovery to take place. The court approved the terms of the settlement in March2010 and issued a decision approving a fee award in April 2010.

Share Repurchase Program

Share Repurchase Program
	3 Months Ended Mar. 31, 2010
Share Repurchase Program [Abstract]
Share Repurchase Program	(10)Share Repurchase Program On February4, 2010 our Board of Directors approved a plan authorizing repurchases of up to 15.0million shares of our common stock in the open market, at prevailing market prices or in privately negotiated transactions, through January31, 2013. We repurchased 1.4million shares of our common stock for $32.2million, at an average price of $22.97 through March31, 2010.

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information [Abstract]
Segment Information	(11)Segment Information Summarized financial information for the Companys segments is shown in the following tables. As of and for the three-months ended March31, 2010 (in millions): Corporate FSG PSG ISG and Other Total Processing and services revenues $ 443.5 $ 618.8 $ 195.0 $ (7.7 ) $ 1,249.6 Operating expenses 295.8 414.0 178.8 177.2 1,065.8 Operating income $ 147.7 $ 204.8 $ 16.2 $ (184.9 ) 183.8 Other income (expense)unallocated (33.6 ) Income from continuing operations $ 150.2 Depreciation and amortization $ 37.9 $ 24.6 $ 15.4 $ 74.9 $ 152.8 Capital expenditures $ 30.2 $ 14.7 $ 11.8 $ 1.5 $ 58.2 Total assets (1) $ 4,875.5 $ 4,836.1 $ 1,678.3 $ 2,443.3 $ 13,833.2 Goodwill $ 3,736.8 $ 4,026.8 $ 457.4 $ $ 8,221.0 (1) Total assets at March31, 2010, exclude $0.8million related to discontinued operations. As of and for the three-months ended March31, 2009 (in millions): Corporate FSG PSG ISG and Other Total Processing and services revenues $ 266.3 $ 364.3 $ 164.0 $ (0.5 ) $ 794.1 Operating expenses 192.7 278.5 149.4 93.7 714.3 Operating income $ 73.6 $ 85.8 $ 14.6 $ (94.2 ) 79.8 Other income (expense)unallocated (30.0 ) Income from continuing operations $ 49.8 Depreciation and amortization $ 20.5 $ 17.9 $ 13.0 $ 40.5 $ 91.9 Capital expenditures $ 24.2 $ 7.7 $ 9.8 $ 2.4 $ 44.1 Total assets $ 2,881.7 $ 2,220.7 $ 1,358.2 $ 859.0 $ 7,319.6 Goodwill $ 2,096.2 $ 1,677.1 $ 416.8 $ $ 4,190.1 Customers in Brazil, Germany and the United Kingdom accounted for the majority of the sales to non-U.S. based customers. Financial Solutions Group FSG focuses on serving the processing needs of financial institutions, commercial lenders, finance companies and other businesses. FSGs primary software applications function as the underlying infrastructure of a financial institutions processing environment. These applications include core bank processing software, which banks use to maintain the primary records of their customer accounts. FSG also provides a number of complementary applications and services that interact directly with the core processin