Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Fidelity National Information Services, Inc. | |
Entity Central Index Key | 1,136,893 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 282,153,638 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 441.5 | $ 492.8 |
Settlement deposits | 309.2 | 393.9 |
Trade receivables, net of allowance for doubtful accounts of $19.2 and $15.6 as of September 30, 2015 and December 31, 2014, respectively | 1,125.1 | 1,126.4 |
Settlement receivables | 239.9 | 153.7 |
Other receivables | 24.5 | 31.5 |
Due from Brazilian venture partner | 29.7 | 33.6 |
Prepaid expenses and other current assets | 186.8 | 167 |
Deferred income taxes | 79.6 | 67.4 |
Assets held for sale | 0 | 6.8 |
Total current assets | 2,436.3 | 2,473.1 |
Property and equipment, net | 481 | 483.3 |
Goodwill | 8,761.5 | 8,877.6 |
Intangible assets, net | 1,053.9 | 1,268 |
Computer software, net | 902.1 | 893.4 |
Deferred contract costs, net | 238.4 | 213.2 |
Other noncurrent assets | 314.6 | 311.9 |
Total assets | 14,187.8 | 14,520.5 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 714.4 | 730.3 |
Settlement payables | 555.9 | 558.4 |
Deferred revenues | 273.5 | 279.4 |
Current portion of long-term debt | 13.4 | 13.1 |
Due to Brazilian venture partner | 9 | 13.3 |
Liabilities held for sale | 0 | 4.4 |
Total current liabilities | 1,566.2 | 1,598.9 |
Long-term debt, excluding current portion | 4,957 | 5,054.6 |
Deferred income taxes | 843.9 | 874.4 |
Due to Brazilian venture partner | 23.1 | 29.6 |
Deferred revenues | 27.9 | 26.1 |
Other long-term liabilities | 165.5 | 245.4 |
Total liabilities | 7,583.6 | 7,829 |
FIS stockholders’ equity: | ||
Preferred stock, $0.01 par value, 200 shares authorized, none issued and outstanding as of September 30, 2015 and December 31, 2014 | 0 | 0 |
Common stock, $0.01 par value, 600 shares authorized, 387.8 and 387.6 shares issued as of September 30, 2015 and December 31, 2014, respectively | 3.9 | 3.9 |
Additional paid in capital | 7,416.4 | 7,336.8 |
Retained earnings | 3,053.1 | 2,746.8 |
Accumulated other comprehensive earnings (loss) | (261.4) | (107.2) |
Treasury stock, $0.01 par value, 105.7 and 102.7 shares as of September 30, 2015 and December 31, 2014, respectively, at cost | (3,683.3) | (3,423.6) |
Total FIS stockholders’ equity | 6,528.7 | 6,556.7 |
Noncontrolling interest | 75.5 | 134.8 |
Total equity | 6,604.2 | 6,691.5 |
Total liabilities and equity | $ 14,187.8 | $ 14,520.5 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Allowance for doubtful accounts | $ 19.2 | $ 15.6 |
FIS stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 387,800,000 | 387,600,000 |
Treasury stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury stock, shares (in shares) | 105,700,000 | 102,700,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income Statement [Abstract] | |||||
Processing and services revenues | $ 1,578.8 | $ 1,605.3 | $ 4,720.4 | $ 4,724.7 | |
Cost of revenues | 1,021.3 | 1,074.5 | 3,160.6 | 3,211.4 | |
Gross profit | 557.5 | 530.8 | 1,559.8 | 1,513.3 | |
Selling, general, and administrative expenses | 219.2 | 207.1 | 719.4 | 593.8 | |
Operating income | 338.3 | 323.7 | 840.4 | 919.5 | |
Other income (expense): | |||||
Interest expense, net | (35.6) | (37.7) | (108.8) | (120.7) | |
Other income (expense), net | (21.2) | (54.8) | 129.5 | (56.5) | |
Total other income (expense), net | (56.8) | (92.5) | 20.7 | (177.2) | |
Earnings from continuing operations before income taxes | 281.5 | 231.2 | 861.1 | 742.3 | |
Provision for income taxes | 100 | 72.1 | 314.2 | 233.7 | |
Earnings from continuing operations, net of tax | 181.5 | 159.1 | 546.9 | 508.6 | |
Earnings (loss) from discontinued operations, net of tax | (1.7) | (1.2) | (7) | (4.3) | |
Net earnings | 179.8 | 157.9 | 539.9 | 504.3 | |
Net (earnings) loss attributable to noncontrolling interest | (4.6) | (7.4) | (13.6) | (20.5) | |
Net earnings attributable to FIS common stockholders | $ 175.2 | $ 150.5 | $ 526.3 | $ 483.8 | |
Net earnings per share — basic from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 0.63 | $ 0.54 | $ 1.89 | $ 1.71 | |
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders (in dollars per share) | (0.01) | 0 | (0.02) | (0.02) | |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | [1] | $ 0.62 | $ 0.53 | $ 1.87 | $ 1.69 |
Weighted average shares outstanding — basic (in shares) | 280.4 | 283.1 | 281.5 | 285.5 | |
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 0.62 | $ 0.53 | $ 1.87 | $ 1.69 | |
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders (in dollars per share) | (0.01) | 0 | (0.02) | (0.01) | |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | [1] | $ 0.62 | $ 0.52 | $ 1.85 | $ 1.67 |
Weighted average shares outstanding — diluted (in shares) | 283.8 | 287 | 285 | 289.3 | |
Cash dividends paid per share (in dollars per share) | $ 0.26 | $ 0.24 | $ 0.78 | $ 0.72 | |
Amounts attributable to FIS common stockholders: | |||||
Earnings from continuing operations, net of tax | $ 176.9 | $ 151.7 | $ 533.3 | $ 488.1 | |
Earnings (loss) from discontinued operations, net of tax | (1.7) | (1.2) | (7) | (4.3) | |
Net earnings attributable to FIS common stockholders | $ 175.2 | $ 150.5 | $ 526.3 | $ 483.8 | |
[1] | * Amounts may not sum due to rounding. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 179.8 | $ 157.9 | $ 539.9 | $ 504.3 |
Other comprehensive earnings, before tax: | ||||
Unrealized gain (loss) on investments and derivatives | (13.9) | 0.8 | (16.1) | (2.2) |
Reclassification adjustment for (gains) losses included in net earnings | 0.7 | 1.7 | 2.7 | 5.2 |
Unrealized gain (loss) on investments and derivatives, net | (13.2) | 2.5 | (13.4) | 3 |
Foreign currency translation adjustments | (74.9) | (70.7) | (179.1) | (37.7) |
Other comprehensive earnings (loss), before tax: | (88.1) | (68.2) | (192.5) | (34.7) |
Provision for income tax expense (benefit) related to items of other comprehensive earnings | (5.8) | (2.4) | (4.6) | (1.3) |
Other comprehensive earnings (loss), net of tax | (82.3) | (65.8) | (187.9) | (33.4) |
Comprehensive (loss) earnings: | 97.5 | 92.1 | 352 | 470.9 |
Net (earnings) loss attributable to noncontrolling interest | (4.6) | (7.4) | (13.6) | (20.5) |
Other comprehensive (earnings) losses attributable to noncontrolling interest | 19 | 12.4 | 33.7 | 2.8 |
Comprehensive (loss) earnings attributable to FIS common stockholders | $ 111.9 | $ 97.1 | $ 372.1 | $ 453.2 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) shares in Millions, $ in Millions | Total | Common stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Earnings | Treasury Stock | Noncontrolling Interest |
Beginning Balance (in shares) at Dec. 31, 2014 | 387.6 | 102.7 | |||||
Beginning Balance at Dec. 31, 2014 | $ 6,691.5 | $ 3.9 | $ 7,336.8 | $ 2,746.8 | $ (107.2) | $ (3,423.6) | $ 134.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of restricted stock (in shares) | 0.2 | ||||||
Issuance of restricted stock | 0 | $ 0 | |||||
Exercise of stock options (in shares) | 1.6 | ||||||
Exercise of stock options | 45.4 | (1.5) | $ 46.9 | ||||
Treasury shares held for taxes due upon exercise of stock options (in shares) | (0.1) | ||||||
Treasury shares held for taxes due upon exercise of stock options | (7.3) | $ (7.3) | |||||
Excess income tax benefit from exercise of stock options | 21 | 21 | |||||
Stock-based compensation | 58.6 | 58.6 | |||||
Cash dividends paid ($0.26 per share per quarter) and other distributions | (246.2) | (220) | (26.2) | ||||
Purchases of treasury stock (in shares) | (4.5) | ||||||
Purchases of treasury stock | (300.4) | $ (300.4) | |||||
Other | (10.4) | 1.5 | $ 1.1 | (13) | |||
Net earnings | 539.9 | 526.3 | 13.6 | ||||
Other comprehensive loss, net of tax | (187.9) | (154.2) | (33.7) | ||||
Ending Balance (in shares) at Sep. 30, 2015 | 387.8 | 105.7 | |||||
Ending Balance at Sep. 30, 2015 | $ 6,604.2 | $ 3.9 | $ 7,416.4 | $ 3,053.1 | $ (261.4) | $ (3,683.3) | $ 75.5 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends paid per share (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.26 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 539.9 | $ 504.3 |
Adjustment to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 464.3 | 466.1 |
Amortization of debt issue costs | 6.7 | 15.2 |
Gain on sale of assets | (149.5) | 0 |
Stock-based compensation | 58.8 | 40.5 |
Deferred income taxes | (41.2) | (14.2) |
Excess income tax benefit from exercise of stock options | (21) | (24.2) |
Other operating activities | 3.7 | 15.7 |
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | ||
Trade receivables | (34) | (53.1) |
Settlement activity | 7.4 | (30.7) |
Prepaid expenses and other assets | (19.1) | (24.2) |
Deferred contract costs | (85.3) | (63.4) |
Deferred revenue | (3.9) | 15.8 |
Accounts payable, accrued liabilities, and other liabilities | (29.3) | (160.7) |
Net cash provided by operating activities | 697.5 | 687.1 |
Cash flows from investing activities: | ||
Additions to property and equipment | (106) | (110.5) |
Additions to computer software | (199.7) | (162.1) |
Proceeds from sale of assets | 240.7 | 0 |
Acquisitions, net of cash acquired, and equity investments | (16.8) | (133.6) |
Other investing activities, net | (0.5) | 7.5 |
Net cash used in investing activities | (82.3) | (398.7) |
Cash flows from financing activities: | ||
Borrowings | 4,662 | 6,089.1 |
Repayment of borrowings | (4,762.4) | (5,586.3) |
Debt issuance costs | (2.6) | (7.9) |
Excess income tax benefit from exercise of stock options | 21 | 24.2 |
Proceeds from exercise of stock options | 45.5 | 41.3 |
Treasury stock activity | (307.7) | (506.2) |
Dividends paid | (219.5) | (205.7) |
Distribution to Brazilian Venture partner | (23.6) | (34.8) |
Other financing activities, net | (24) | (21.8) |
Net cash used in financing activities | (611.3) | (208.1) |
Effect of foreign currency exchange rate changes on cash | (55.2) | (16) |
Net (decrease) increase in cash and cash equivalents | (51.3) | 64.3 |
Cash and cash equivalents, beginning of period | 492.8 | 547.5 |
Cash and cash equivalents, end of period | 441.5 | 611.8 |
Supplemental cash flow information: | ||
Cash paid for interest | 97.8 | 121.6 |
Cash paid for income taxes | $ 293.2 | $ 270.5 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 Article 10 of Regulation S-X. All adjustments considered necessary for a fair presentation have been included. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . The preparation of these Condensed Consolidated Financial Statements (Unaudited) 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 as of the date of the Condensed Consolidated Financial Statements (Unaudited) and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Certain reclassifications have been made in the 2014 Condensed Consolidated Financial Statements (Unaudited) to conform to the classifications used in 2015 . In March 2015, FIS finalized a reorganization and began streamlining its global operations in response to market conditions and to more efficiently meet the demand of specific client needs. As a result of these changes, information that the Company’s chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed. Therefore, beginning in the first quarter of 2015, the Company reports its financial performance based on our new segments: Integrated Financial Solutions (“IFS”), Global Financial Solutions (“GFS”) and Corporate and Other (Note 10). All previous periods have been recast to conform to the new segment presentation. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Brazilian Venture The Company operates a joint venture ("Brazilian Venture") with Banco Bradesco S.A. ("Banco Bradesco"), in which we own a 51% controlling interest, to provide comprehensive, fully outsourced transaction processing, call center, cardholder support and collection services to multiple card issuing clients in Brazil, including Banco Bradesco. The original accounting for this transaction resulted in the establishment of a contract intangible asset and a liability for amounts payable to the original partner banks upon final migration of their respective card portfolios and achieving targeted volumes (the “Brazilian Venture Notes”). The unamortized contract intangible asset balance as of September 30, 2015 was $88.1 million . During the three months ended June 30, 2015, the board of directors for the Brazilian Venture declared a one-time dividend, resulting in a payment of $23.6 million to Banco Bradesco which reduced the noncontrolling interest balance. The Company recorded Brazilian Venture revenues of $58.1 million and $74.3 million during the three months and $182.6 million and $212.6 million during the nine months ended September 30, 2015 and 2014 , respectively, from Banco Bradesco relating to these services. Banco Bradesco Brazilian Venture revenues included $31.6 million and $68.1 million of unfavorable currency impact during the three and nine months ended September 30, 2015 , respectively, resulting from a stronger U.S. Dollar in 2015 as compared to 2014 . |
Net Earnings per Share
Net Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Earnings per Share | Net Earnings per Share The basic weighted average shares and common stock equivalents for the three and nine months ended September 30, 2015 and 2014 are computed using the treasury stock method. The following table summarizes the earnings per share attributable to FIS common stockholders for the three and nine months ended September 30, 2015 and 2014 (in millions, except per share amounts): Three months ended Nine months ended 2015 2014 2015 2014 Earnings from continuing operations attributable to FIS, net of tax $ 176.9 $ 151.7 $ 533.3 $ 488.1 Earnings (loss) from discontinued operations attributable to FIS, net of tax (1.7 ) (1.2 ) (7.0 ) (4.3 ) Net earnings attributable to FIS common stockholders $ 175.2 $ 150.5 $ 526.3 $ 483.8 Weighted average shares outstanding — basic 280.4 283.1 281.5 285.5 Plus: Common stock equivalent shares 3.4 3.9 3.5 3.8 Weighted average shares outstanding — diluted 283.8 287.0 285.0 289.3 Net earnings per share — basic from continuing operations attributable to FIS common stockholders $ 0.63 $ 0.54 $ 1.89 $ 1.71 Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders (0.01 ) — (0.02 ) (0.02 ) Net earnings per share — basic attributable to FIS common stockholders * $ 0.62 $ 0.53 $ 1.87 $ 1.69 Net earnings per share — diluted from continuing operations attributable to FIS common stockholders $ 0.62 $ 0.53 $ 1.87 $ 1.69 Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders (0.01 ) — (0.02 ) (0.01 ) Net earnings per share — diluted attributable to FIS common stockholders * $ 0.62 $ 0.52 $ 1.85 $ 1.67 * Amounts may not sum due to rounding. Options to purchase approximately 0.8 million and 0.1 million shares of our common stock for the three months and 0.8 million and 4.1 million shares for the nine months ended September 30, 2015 and 2014 , respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive. |
Discontinued Operations and Oth
Discontinued Operations and Other Dispositions | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |
Discontinued Operations and Other Dispositions | Discontinued Operations and Other Dispositions During the second quarter of 2015, we sold certain assets associated with our gaming industry check warranty business, resulting in a pre-tax gain of $139.4 million , which is included in Other income (expense), net. The sale did not meet the standard necessary to be reported as discontinued operations; therefore, the gain and related prior period earnings remain reported within earnings from continuing operations. Certain other operations are reported as discontinued in the Condensed Consolidated Statements of Earnings (Unaudited) for the three and nine months ended September 30, 2015 and 2014 : China eCas Business Line During the second quarter of 2014, the Company committed to a plan to sell our business operation that provides eCas core banking software solutions to small financial institutions in China because it did not align with our strategic plans. This line of business had nominal revenues and earnings (losses) before taxes of $(0.2) million and $0.3 million for the three months and $(3.9) million and $(2.7) million for the nine months ended September 30, 2015 and 2014 , respectively. We signed a contract in January 2015 to sell this business and the transaction closed during the second quarter of 2015. Brazil Item Processing and Remittance Services Operations During the third quarter of 2010, the Company decided to pursue strategic alternatives for Fidelity National Participacoes Ltda. (“Participacoes”). Participacoes' processing volume was transitioned to other vendors or back to its customers during the second quarter of 2011. There were no revenues for the 2015 and 2014 periods. Participacoes had charges of $2.2 million and $2.2 million for the three months and $4.7 million and $3.4 million for the nine months ended September 30, 2015 and 2014 , respectively. The shut-down activities involved the transfer and termination of approximately 2,600 employees, which was completed in 2011. Former employees generally had up to two years from the date of terminations, extended through April 2013, to file labor claims and a number of them did file labor claims. As of September 30, 2015 , there were approximately 580 active claims remaining. Consequently, we have continued exposure on these active claims, which were not transferred with other assets and liabilities in the disposal. Our accrued liability for active labor claims, net of $8.7 million in court ordered deposits, is $10.3 million as of September 30, 2015 . Any changes in the estimated liability related to these labor claims will be recorded as discontinued operations. In 2004, Proservvi Empreendimentos e Servicios, Ltda., the predecessor to Fidelity National Servicos de Tratamento de Documentos e Informatica Ltda. (“Servicos”), a subsidiary of Participacoes, acquired certain assets and employees and leased certain facilities from the Transpev Group (“Transpev”) in Brazil. Transpev’s remaining assets were later acquired by Prosegur, an unrelated third party. When Transpev discontinued its operations after the asset sale to Prosegur, it had unpaid federal taxes and social contributions owing to the Brazilian tax authorities. The Brazilian tax authorities brought a claim against Transpev and beginning in 2012 brought claims against Prosegur and Servicos on the grounds that that Prosegur and Servicos were successors in interest to Transpev. To date, the Brazilian tax authorities filed four claims against Servicos asserting potential tax liabilities of approximately $6.8 million . There are potentially 31 additional claims against Transpev/Prosegur for which Servicos is named as a co-defendant or may be named, but for which Servicos has not yet been served. These additional claims amount to approximately $70.0 million making the total potential exposure for all 35 claims approximately $76.8 million . We do not believe a liability for these 35 total claims is probable or reasonably estimable and, therefore, have not recorded a liability for any of these claims. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Earnings (Losses) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Earnings (Losses) | Changes in Accumulated Other Comprehensive Earnings (Losses) The following table shows accumulated other comprehensive earnings ("AOCE") by component, net of tax, for the nine months ended September 30, 2015 (in millions): Foreign Interest Rate Currency Treasury Lock Swap Translation Contracts Contracts Adjustments and Other Total Balances, December 31, 2014 $ (0.7 ) $ (95.2 ) $ (11.3 ) $ (107.2 ) Other comprehensive gain/(loss) before reclassifications (2.3 ) (145.9 ) (7.7 ) (155.9 ) Amounts reclassified from AOCE 1.7 — — 1.7 Net current period AOCE attributable to FIS (0.6 ) (145.9 ) (7.7 ) (154.2 ) Balances, September 30, 2015 $ (1.3 ) $ (241.1 ) $ (19.0 ) $ (261.4 ) The amount reclassified from AOCE for interest rate swap contracts includes $2.7 million recorded as interest expense, reduced by a related $1.0 million provision for income taxes. See also Note 7 - Long-Term Debt for a discussion of interest rate swap and treasury lock contracts. The table below summarizes our provision for income tax expense (benefit) related to items of other comprehensive earnings (in millions): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Unrealized gain (loss) on investments and derivatives $ (5.0 ) $ 0.9 $ (5.3 ) $ 1.1 Foreign currency translation adjustments (0.8 ) (3.3 ) 0.5 (2.4 ) Other components of other comprehensive earnings (loss) — — 0.2 — Provision for income tax expense (benefit) related to items of other comprehensive earnings $ (5.8 ) $ (2.4 ) $ (4.6 ) $ (1.3 ) |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Consolidated Financial Statement Details [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following table shows the Company’s condensed consolidated financial statement details as of September 30, 2015 and December 31, 2014 (in millions): September 30, 2015 December 31, 2014 Cost Accumulated Net Cost Accumulated Net Property and equipment $ 1,242.3 $ 761.3 $ 481.0 $ 1,204.4 $ 721.1 $ 483.3 Intangible assets $ 2,772.7 $ 1,718.8 $ 1,053.9 $ 2,884.5 $ 1,616.5 $ 1,268.0 Computer software $ 1,588.4 $ 686.3 $ 902.1 $ 1,592.6 $ 699.2 $ 893.4 The Company entered into capital lease obligations of $0.4 million during the three months ended September 30, 2015 and $2.2 million and $0.9 million during the nine months ended September 30, 2015 and 2014 , respectively. The assets are included in property and equipment and computer software and the remaining capital lease obligations are classified as long-term debt on our Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2015 . Periodic payments are included in repayment of borrowings on the Condensed Consolidated Statements of Cash Flows (Unaudited). Settlement Activity We manage certain integrated electronic payment services and programs and wealth management processes for our clients, and those services require us to hold and manage client cash balances used to fund their daily settlement activity. Settlement deposits represent funds we hold that were drawn from our clients to facilitate settlement activities and, as of September 30, 2015 and December 31, 2014 , included $125.0 million and $139.3 million , respectively, of investments with original maturities of greater than 90 days. These investments are Level 1 and Level 2 type securities in the fair-value hierarchy. Settlement receivables represent amounts funded by us. Settlement payables consist of settlement deposits from clients, settlement payables to third parties, and outstanding checks related to our settlement activities for which the right of offset does not exist or we do not intend to exercise our right of offset. Our accounting policy for such outstanding checks is to include them in settlement payables on the Condensed Consolidated Balance Sheets (Unaudited) and operating cash flows on the Condensed Consolidated Statements of Cash Flows (Unaudited). |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt as of September 30, 2015 and December 31, 2014 , consisted of the following (in millions): September 30, 2015 December 31, 2014 Term Loans A-4, quarterly principal amortization (1) $ 1,300.0 $ 1,300.0 Senior Notes due 2017, interest payable semi-annually at 1.450% 300.0 300.0 Senior Notes due 2018, interest payable semi-annually at 2.000% 250.0 250.0 Senior Notes due 2022, interest payable semi-annually at 5.000% 700.0 700.0 Senior Notes due 2023, interest payable semi-annually at 3.500% 1,000.0 1,000.0 Senior Notes due 2024, interest payable semi-annually at 3.875% 700.0 700.0 Revolving Loan (2) 705.0 795.0 Other 15.4 22.7 4,970.4 5,067.7 Current portion (13.4 ) (13.1 ) Long-term debt, excluding current portion $ 4,957.0 $ 5,054.6 __________________________________________ (1) Interest on the Term Loans A-4 is generally payable at LIBOR plus an applicable margin of up to 1.75% based upon the Company's corporate credit ratings and the ratings on the FIS Credit Agreement. As of September 30, 2015 , the weighted average interest rate on the Term Loans A-4 was 1.45% . (2) Interest on the Revolving Loan is generally payable at LIBOR plus an applicable margin of up to 1.75% plus an unused commitment fee of up to 0.25% , each based upon the Company's corporate credit ratings and the ratings on the FIS Credit Agreement. As of September 30, 2015 , the applicable margin on the Revolving Loan, excluding facility fees and unused commitment fees, was 1.25% . FIS is a party to a syndicated credit agreement (the "FIS Credit Agreement"), which a s of September 30, 2015 , provided total committed capital of $4,300.0 million comprised of: (1) a revolving credit facility in an aggregate maximum principal amount of $3,000.0 million maturing on December 18, 2019 (the "Revolving Loan"); and (2) term loans of $1,300.0 million maturing on March 30, 2017 (the "Term Loans A-4"). As of September 30, 2015 , the outstanding principal balance of the Revolving Loan was $705.0 million , with $2,294.2 million of borrowing capacity remaining thereunder (net of $0.8 million in outstanding letters of credit issued under the Revolving Loan). The obligations of FIS under the FIS Credit Agreement and under all of its outstanding senior notes rank equal in priority and are unsecured. The FIS Credit Agreement and the senior notes remain subject to customary covenants, including, among others, limitations on the payment of dividends by FIS, and events of default. As disclosed in Note 11 - Acquisitions, FIS announced a definitive agreement to acquire SunGard on August 12, 2015. Concurrent with the execution of this acquisition agreement, the Company secured $6.9 billion of committed bridge financing to ensure our ability to fund the cash requirements related to the acquisition. The bridge commitments were terminated in October following the (a) amendment of the FIS Credit Agreement to modify certain covenants; (b) the issuance of a new $1.5 billion unsecured term loan credit agreement to be funded upon completion of the acquisition; and (c) the issuance of $4.5 billion of senior unsecured fixed rate notes (see Note 12 - Subsequent Events). The new term loan will bear interest at a floating rate and will mature on the third anniversary of the initial funding date. The loans under this credit agreement will not be subject to mandatory prepayment and voluntary prepayments will be permitted at any time without fee and subject to minimum dollar requirements. The new term loan will rank equally with the Company's other unsecured debt, and includes covenants and events of default consistent with the FIS Credit Agreement. The Company incurred and expensed approximately $17.0 million in the third quarter in connection with securing the financing. Additional fees of $2.6 million were capitalized as debt issuance costs. The following table summarizes the mandatory annual principal payments pursuant to the FIS Credit Agreement and the senior notes' indentures as of September 30, 2015 (in millions). There are no mandatory principal payments on the Revolving Loan and any balance outstanding on the Revolving Loan will be due and payable at its scheduled maturity date. See also Note 12 - Subsequent Events regarding new fixed-rate senior notes FIS issued in October 2015 as a source of funding for the pending SunGard acquisition: Term Loans 2017 2018 2022 2023 2024 A-4 Notes Notes Notes Notes Notes Total 2015 $ — $ — $ — $ — $ — $ — $ — 2016 — — — — — — — 2017 1,300.0 300.0 — — — — 1,600.0 2018 — — 250.0 — — — 250.0 2019 — — — — — — — Thereafter — — — 700.0 1,000.0 700.0 2,400.0 Total $ 1,300.0 $ 300.0 $ 250.0 $ 700.0 $ 1,000.0 $ 700.0 $ 4,250.0 Voluntary prepayment of the Term Loans A-4 is generally permitted at any time without fee upon proper notice and subject to a minimum dollar requirement. In addition to scheduled principal payments, the Term Loans are (with certain exceptions) subject to mandatory prepayment upon the occurrence of certain events. FIS may redeem some or all of the 2022 Notes on or before May 14, 2020 at a specified premium to par, and thereafter at par as outlined in the indenture agreement. FIS may also redeem the 2017 Notes, 2018 Notes, 2023 Notes and 2024 Notes at its option in whole or in part, at any time and from time to time, at a redemption price equal to the greater of 100% of the principal amount to be redeemed and a make-whole amount calculated as described in the related indenture in each case plus accrued and unpaid interest to, but excluding, the date of redemption; provided no make-whole amount will be paid for redemptions of the 2023 Notes and 2024 Notes during the three months prior to their maturity. Debt issuance costs of $37.9 million , net of accumulated amortization, remain capitalized as of September 30, 2015 , related to all of the above outstanding debt. The fair value of the Company’s long-term debt is estimated to be approximately $38.7 million lower than the carrying value as of September 30, 2015 . This estimate is based on quoted prices of our senior notes and trades of our other debt in close proximity to September 30, 2015 , which are considered Level 2-type measurements. This estimate is subjective in nature and involves 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. As of September 30, 2015 , we have entered into the following interest rate swap transaction converting a portion of the interest rate exposure on our Term and Revolving Loans from variable to fixed (in millions): Effective date Termination date Notional amount Bank pays variable rate of FIS pays fixed rate of February 3, 2014 February 1, 2017 $ 400.0 1 Month LIBOR (1) 0.89 % (2) ___________________________________ (1) 0.19% in effect as of September 30, 2015 . (2) Does not include the applicable margin and facility fees paid to lenders on Term Loans and Revolving Loan as described above. We have designated the interest rate swap as a cash flow hedge and, as such, it is carried on the Condensed Consolidated Balance Sheets (Unaudited) at fair value with changes in fair value included in other comprehensive earnings, net of tax. Our existing cash flow hedge is highly effective and there was no impact on earnings due to hedge ineffectiveness. It is our practice to execute such instruments with credit-worthy banks at the time of execution and not to enter into derivative financial instruments for speculative purposes. As of September 30, 2015 , we believe that our interest rate swap counterparty will be able to fulfill its obligations under our agreement, and we believe that the forecasted transactions remain probable of occurring. In September 2015 in contemplation of issuing long-term financing for the SunGard acquisition (see Note 12 - Subsequent Events), the Company entered into treasury lock hedges with a total notional amount of $1.0 billion reducing the risk of changes in the benchmark index component of the 10-year treasury yield. The Company designated these derivatives as cash flow hedges and they are reflected at fair value on the consolidated balance sheet, with the related losses through September 30, 2015 of $12.8 million deferred as a component of accumulated other comprehensive earnings. On October 13, 2015, in conjunction with the pricing of the $4.5 billion senior notes, the Company terminated these treasury lock contracts for a cash settlement payment of $15.9 million , which will be amortized as an adjustment to interest expense over the ten years in which the related interest payments that were hedged are recognized in income. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 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 all of its litigation 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 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 material loss may be 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 litigation matters are expensed as incurred. CheckFree Corporation and CashEdge, Inc. v. Metavante Corporation and Fidelity National Information Services, Inc. On January 5, 2012, CheckFree Corporation and CashEdge, Inc., subsidiaries of Fiserv, Inc. (collectively, the "Plaintiffs") filed a patent infringement action against the Company and its subsidiary, Metavante Corporation (collectively the "Defendants") in the U.S. District Court for the Middle District of Florida, Jacksonville Division. Plaintiffs allege that the Defendants infringe the patents at issue by providing customers financial and payment solutions that process payment instructions, provide electronic biller notifications, and/or process account-to-account funds transfer transactions and have requested financial damages and injunctive relief. Defendants filed their Answer and Counterclaims to Plaintiffs' complaint for patent infringement denying the claims of patent infringement and asserting defenses, including non-infringement and invalidity. Defendants filed counterclaims asserting patent infringement of three patents and adding Fiserv, Inc. as a Counter Defendant. Plaintiffs and Counter Defendant Fiserv, Inc., filed their Answer to Defendants' counterclaims denying the claims of patent infringement and asserting defenses, including non-infringement and invalidity. On June 24, 2013, Defendants filed for covered business method ("CBM") post-grant reviews of the validity of the Plaintiff's asserted patents at the US Patent and Trademark Office ("USPTO"). On June 25, 2013, Defendants filed a Motion to Stay the case pending the outcome of the CBM post-grant reviews. On December 23, 2013, the USPTO instituted Defendants' CBM Petitions, thereby agreeing to review the validity of Plaintiff's patents. On January 17, 2014, the Court granted Defendants' Motion to Stay the litigation pending the outcome of the CBM review proceedings, and the lawsuit in Florida continues to be stayed. On December 22, 2014, the Patent Trial and Appeal Board ("PTAB") issued final written decisions on Defendants' CBM Petition holding that all claims of the Plaintiffs' four patents are unpatentable. Plaintiffs have appealed the PTAB’s final written decisions to the U.S. Court of Appeals for the Federal Circuit with regard to two of the four invalidated patents. On July 8, 2015, Plaintiffs filed appeal briefs for the remaining two cases, and on October 19, 2015 the Company and the USPTO filed their responsive briefs. An estimate of a possible loss or range of possible loss, if any, for this action cannot be made at this time. DataTreasury Corporation v. Fidelity National Information Services, Inc. et. al. On May 28, 2013, DataTreasury Corporation (the “Plaintiff”) filed a patent infringement lawsuit against the Company and multiple banks in the US District Court for the Eastern District of Texas, Marshall Division. Plaintiff alleges that the Company infringes the patents at issue by making, using, selling or offering to sell systems and methods for image-based check processing. The Complaint seeks damages, injunctive relief and attorneys' fees for the alleged infringement of two patents. On October 25, 2013, the Company filed for CBM post-grant reviews of the validity of the Plaintiff's asserted patents at the USPTO. The Company filed a Motion to Stay the case pending the outcome of the CBM post-grant reviews. On April 29, 2014, the USPTO instituted the Company's two CBM petitions. On August 14, 2014, the Court granted the Company's Motion to Stay the litigation pending the outcome of the CBM review proceedings. On April 29, 2015, the PTAB issued final written decisions on the Company’s two CBM petitions holding that all claims of the Plaintiff’s two patents are unpatentable. Plaintiff's request for rehearing of these decisions has been denied by PTAB. On August 27, 2015, the Plaintiff filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit of the USPTO’s Final Written Decisions and the Company will respond to the Plaintiff/Appellant’s brief in due course once filed. An estimate of a possible loss or range of possible loss, if any, for this action cannot be made at this time. Indemnifications and Warranties The Company generally indemnifies its customers, subject to certain limitations and exceptions, against damages and costs resulting from claims of patent, copyright, or trademark infringement associated solely with its customers' use of the Company's software applications or services. Historically, the Company has not made any material payments under such indemnifications, but continues to monitor the conditions that are subject to the indemnifications to identify whether it is probable that a loss has occurred, and would recognize any such losses when they are estimable. In addition, the Company warrants to customers that its software operates substantially in accordance with the software specifications. Historically, no material costs have been incurred related to software warranties and no accruals for warranty costs have been made. |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Sep. 30, 2015 | |
Amounts Attributable to Common Stockholders Abstract | |
Share Repurchase Program | Share Repurchase Program On January 29, 2014 our Board of Directors approved a plan authorizing repurchases of up to $2.0 billion of our outstanding common stock in the open market at prevailing market prices or in privately negotiated transactions through December 31, 2017. This share repurchase authorization replaced any existing share repurchase authorization plan. Approximately $1,224.1 million of plan capacity remained available for repurchase as of September 30, 2015 . The table below summarizes quarterly share repurchase activity for 2015 and 2014 under all plans (in millions, except per share amounts): Total cost of shares purchased as part of Total number of Average price publicly announced Three months ended shares purchased paid per share plans or programs September 30, 2015 — $ — $ — June 30, 2015 2.3 $ 64.36 $ 150.0 March 31, 2015 2.2 $ 67.94 $ 150.4 December 31, 2014 — $ — $ — September 30, 2014 2.7 $ 56.26 $ 150.0 June 30, 2014 2.8 $ 54.24 $ 150.5 March 31, 2014 3.2 $ 54.31 $ 175.0 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In March 2015, we finalized a reorganization and have streamlined our global operations in response to market conditions and to more efficiently meet the demand of specific client needs. As a result of these changes, information that the Company’s chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance has changed. Therefore, beginning in the first quarter of 2015, the Company reports its financial performance based on the three reportable segments described below. Summarized financial information for the Company’s segments is shown in the following tables. As of and for the three months ended September 30, 2015 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 970.7 $ 609.1 $ (1.0 ) $ 1,578.8 Operating expenses 621.8 492.2 126.5 1,240.5 Operating income $ 348.9 $ 116.9 $ (127.5 ) 338.3 Other income (expense) unallocated (56.8 ) Income from continuing operations before income taxes $ 281.5 Depreciation and amortization $ 58.7 $ 40.3 $ 57.4 $ 156.4 Capital expenditures (1) $ 45.3 $ 41.2 $ 1.0 $ 87.5 Total assets (2) $ 8,928.7 $ 4,090.1 $ 1,168.1 $ 14,186.9 Goodwill $ 6,697.3 $ 2,064.2 $ — $ 8,761.5 (1) Capital expenditures for the three months ended September 30, 2015 include $0.4 million of capital leases. (2) Total assets as of September 30, 2015 exclude $0.9 million related to discontinued operations. As of and for the three months ended September 30, 2014 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 963.6 $ 642.2 $ (0.5 ) $ 1,605.3 Operating expenses 632.1 540.4 109.1 1,281.6 Operating income $ 331.5 $ 101.8 $ (109.6 ) 323.7 Other income (expense) unallocated (92.5 ) Income from continuing operations before income taxes $ 231.2 Depreciation and amortization $ 54.3 $ 39.5 $ 63.2 $ 157.0 Capital expenditures $ 40.0 $ 42.5 $ 3.5 $ 86.0 Total assets (1) $ 8,936.7 $ 3,908.4 $ 1,317.9 $ 14,163.0 Goodwill $ 6,785.8 $ 1,778.9 $ — $ 8,564.7 (1) Total assets as of September 30, 2014 exclude $9.1 million related to discontinued operations. For the nine months ended September 30, 2015 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 2,908.5 $ 1,814.9 $ (3.0 ) $ 4,720.4 Operating expenses 1,912.2 1,569.6 398.2 3,880.0 Operating income $ 996.3 $ 245.3 $ (401.2 ) 840.4 Other income (expense) unallocated 20.7 Income from continuing operations before income taxes $ 861.1 Depreciation and amortization $ 168.0 $ 124.6 $ 171.7 $ 464.3 Capital expenditures (1) $ 164.6 $ 139.0 $ 4.3 $ 307.9 (1) Capital expenditures for the nine months ended September 30, 2015 include $2.2 million of capital leases. For the nine months ended September 30, 2014 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 2,869.5 $ 1,856.3 $ (1.1 ) $ 4,724.7 Operating expenses 1,892.1 1,601.5 311.6 3,805.2 Operating income $ 977.4 $ 254.8 $ (312.7 ) 919.5 Other income (expense) unallocated (177.2 ) Income from continuing operations before income taxes $ 742.3 Depreciation and amortization $ 159.5 $ 117.8 $ 188.8 $ 466.1 Capital expenditures (1) $ 144.4 $ 121.3 $ 7.8 $ 273.5 (1) Capital expenditures for the nine months ended September 30, 2014 include $0.9 million of capital leases. Integrated Financial Solutions ("IFS") The IFS segment is focused on serving the North American regional and community bank market for transaction and account processing, payment solutions, channel solutions, digital channels, risk and compliance solutions, and services, capitalizing on the continuing trend to outsource these solutions. IFS’ primary software applications function as the underlying infrastructure of a financial institution's processing environment. These applications include core bank processing software, which banks use to maintain the primary records of their customer accounts, and complementary applications and services that interact directly with the core processing applications. Clients in this segment include regional and community banks, credit unions, commercial lenders, independent community and savings institutions as well as government institutions, merchants and other commercial organizations. This market is primarily served through integrated solutions delivered from leveraged platforms and characterized by multi-year processing contracts that generate highly recurring revenues. Global Financial Solutions ("GFS") The GFS segment is focused on serving the largest financial institutions around the globe with banking and payments solutions, consulting and transformation services. GFS clients include the largest global financial institutions, including those headquartered in the United States, as well as all international financial institutions we serve as clients in more than 130 countries around the world. These institutions face unique business and regulatory challenges and account for the majority of financial institution information technology spend globally. The purchasing patterns of GFS clients vary from those of IFS clients who typically purchase solutions on an outsourced basis. GFS clients purchase our solutions and services in various ways including licensing and managing technology “in-house”, using consulting and third party service providers as well as fully outsourced end-to-end solutions. We have long established relationships with many of these financial institutions that generate significant recurring revenue and reoccurring service revenue. This segment also includes the Company's consolidated Brazilian Venture (Note 2). Clients in Brazil, the United Kingdom, France and Germany accounted for the majority of the revenues from clients based outside of North America for all periods presented. Included in this segment are long-term assets, excluding goodwill and other intangible assets, located outside of the United States totaling $359.4 million and $364.3 million as of September 30, 2015 and 2014 , respectively. These assets are predominantly located in Brazil, India, Germany and the United Kingdom. Corporate and Other The Corporate and Other segment consists of corporate overhead and costs of leveraged functions that are not allocated to operating segments. These costs relate to marketing, corporate finance and accounting, human resources, legal, and amortization of acquisition-related intangibles and other costs that are not considered when management evaluates revenue generating segment performance, such as acquisition integration and severance costs. The composition of our Corporate and Other segment changed with the new segment presentation in 2015; specifically, costs such as sales, finance, human resources, risk and information security and other administrative support functions that are directly attributable to IFS or GFS are recorded to those reportable segments. Certain planned integration expenses related to our Clear2Pay acquisition (Note 11) have been recorded in this segment. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Pending Acquisition of SunGard On August 12, 2015, FIS and certain of its wholly owned subsidiaries entered into an Agreement and Plan of Merger (the “Merger Agreement”) with SunGard and SunGard Capital Corp. II (collectively “SunGard”) pursuant to which, through a series of mergers, SunGard will be merged into wholly owned subsidiaries of FIS (collectively the "Mergers"). SunGard is one of the world’s leading financial software companies. Its solutions automate a wide range of complex business processes across the financial services industry, including those associated with trading, securities operations, administering investment portfolios, accounting for investment assets, and managing risk and compliance requirements. FIS and SunGard have complementary technology solutions and services encompassing retail and corporate banking, payments, risk management, asset solutions and insurance. The combined company will have more than 55,000 employees and support thousands of clients worldwide after the transaction is consummated. Under the terms of the Merger Agreement, FIS will acquire 100 percent of the equity of SunGard. At the closing of the Mergers, SunGard shareholders will receive an aggregate of 44.7 million shares of common stock of FIS and $2.3 billion in cash, subject to certain adjustments and less the number of FIS shares representing unvested RSUs of SunGard that will be converted into RSUs of FIS at the closing. In connection with the Mergers, FIS will also assume, repay or refinance all of SunGard's outstanding debt, totaling approximately $4.7 billion (See Note 12 - Subsequent Events). The acquisition is subject to certain customary closing conditions, including approval by the stockholders of SunGard. FIS expects to consummate the acquisition in the fourth quarter of 2015. Other Acquisitions We completed a number of acquisitions in 2015 and 2014 that were not significant, individually or in the aggregate. Among these were Clear2Pay NV ("Clear2Pay") and Reliance Financial Corporation ("Reliance"). Clear2Pay On September 2, 2014, FIS signed a definitive agreement to acquire Brussels-based Clear2Pay. We completed the acquisition on October 1, 2014, paying $462.0 million , net of acquired cash for 100 percent ownership interest. The addition of Clear2Pay expanded FIS’ global payments capabilities and enhances our ability to deliver differentiated enterprise payments solutions. Reliance On May 5, 2014, FIS signed a definitive agreement to acquire Atlanta-based Reliance. We completed the acquisition on July 15, 2014, paying approximately $110.0 million to acquire 100 percent ownership interest. The resulting combination creates a full-service wealth management and retirement offering encompassing technology, full back-office operations outsourcing, and retirement trust and fiduciary services. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As indicated in Note 11, under the Merger Agreement, FIS will pay total consideration of approximately $2.3 billion in cash and the issuance of approximately 44.7 million shares of FIS common stock, including shares underlying certain stock-based awards to be assumed. FIS also intends to repay all of SunGard’s outstanding bank debt, totaling approximately $2.5 billion as of June 30, 2015, and all of SunGard’s outstanding senior notes and senior subordinated notes, totaling approximately $2.2 billion as of such date. In anticipation of the above cash requirements, on October 20, 2015, FIS completed the issuance and sale of an aggregate of $4.5 billion in principal amount of new senior notes, consisting of $750.0 million in aggregate principal amount of FIS’ 2.850% Senior Notes due 2018, $1.75 billion in aggregate principal amount of FIS’ 3.625% Senior Notes due 2020, $500.0 million in aggregate principal amount of FIS’ 4.500% Senior Notes due 2022 and $1.5 billion in aggregate principal amount of FIS’ 5.000% Senior Notes due 2025. If we do not consummate the SunGard acquisition on or prior to June 30, 2016, each series of these Senior Notes (other than the 2025 Senior Notes) will be required to be redeemed in whole at 101% of the aggregate principal amount, plus accrued and unpaid interest. The 2025 Notes will not be subject to the special mandatory redemption and will remain outstanding even if the acquisition is not consummated. The new senior notes are unsecured and contain covenants and events of default that are customary for obligations of this type. |
Net Earnings per Share - (Table
Net Earnings per Share - (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share attributable to FIS common stockholders | The following table summarizes the earnings per share attributable to FIS common stockholders for the three and nine months ended September 30, 2015 and 2014 (in millions, except per share amounts): Three months ended Nine months ended 2015 2014 2015 2014 Earnings from continuing operations attributable to FIS, net of tax $ 176.9 $ 151.7 $ 533.3 $ 488.1 Earnings (loss) from discontinued operations attributable to FIS, net of tax (1.7 ) (1.2 ) (7.0 ) (4.3 ) Net earnings attributable to FIS common stockholders $ 175.2 $ 150.5 $ 526.3 $ 483.8 Weighted average shares outstanding — basic 280.4 283.1 281.5 285.5 Plus: Common stock equivalent shares 3.4 3.9 3.5 3.8 Weighted average shares outstanding — diluted 283.8 287.0 285.0 289.3 Net earnings per share — basic from continuing operations attributable to FIS common stockholders $ 0.63 $ 0.54 $ 1.89 $ 1.71 Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders (0.01 ) — (0.02 ) (0.02 ) Net earnings per share — basic attributable to FIS common stockholders * $ 0.62 $ 0.53 $ 1.87 $ 1.69 Net earnings per share — diluted from continuing operations attributable to FIS common stockholders $ 0.62 $ 0.53 $ 1.87 $ 1.69 Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders (0.01 ) — (0.02 ) (0.01 ) Net earnings per share — diluted attributable to FIS common stockholders * $ 0.62 $ 0.52 $ 1.85 $ 1.67 * Amounts may not sum due to rounding. |
Changes in Accumulated Other 22
Changes in Accumulated Other Comprehensive Earnings (Losses) - (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows accumulated other comprehensive earnings ("AOCE") by component, net of tax, for the nine months ended September 30, 2015 (in millions): Foreign Interest Rate Currency Treasury Lock Swap Translation Contracts Contracts Adjustments and Other Total Balances, December 31, 2014 $ (0.7 ) $ (95.2 ) $ (11.3 ) $ (107.2 ) Other comprehensive gain/(loss) before reclassifications (2.3 ) (145.9 ) (7.7 ) (155.9 ) Amounts reclassified from AOCE 1.7 — — 1.7 Net current period AOCE attributable to FIS (0.6 ) (145.9 ) (7.7 ) (154.2 ) Balances, September 30, 2015 $ (1.3 ) $ (241.1 ) $ (19.0 ) $ (261.4 ) The table below summarizes our provision for income tax expense (benefit) related to items of other comprehensive earnings (in millions): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Unrealized gain (loss) on investments and derivatives $ (5.0 ) $ 0.9 $ (5.3 ) $ 1.1 Foreign currency translation adjustments (0.8 ) (3.3 ) 0.5 (2.4 ) Other components of other comprehensive earnings (loss) — — 0.2 — Provision for income tax expense (benefit) related to items of other comprehensive earnings $ (5.8 ) $ (2.4 ) $ (4.6 ) $ (1.3 ) |
Condensed Consolidated Financ23
Condensed Consolidated Financial Statement Details - (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Consolidated Financial Statement Details [Abstract] | |
Condensed Consolidated Financial Statement Details | The following table shows the Company’s condensed consolidated financial statement details as of September 30, 2015 and December 31, 2014 (in millions): September 30, 2015 December 31, 2014 Cost Accumulated Net Cost Accumulated Net Property and equipment $ 1,242.3 $ 761.3 $ 481.0 $ 1,204.4 $ 721.1 $ 483.3 Intangible assets $ 2,772.7 $ 1,718.8 $ 1,053.9 $ 2,884.5 $ 1,616.5 $ 1,268.0 Computer software $ 1,588.4 $ 686.3 $ 902.1 $ 1,592.6 $ 699.2 $ 893.4 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long Term Debts | Long-term debt as of September 30, 2015 and December 31, 2014 , consisted of the following (in millions): September 30, 2015 December 31, 2014 Term Loans A-4, quarterly principal amortization (1) $ 1,300.0 $ 1,300.0 Senior Notes due 2017, interest payable semi-annually at 1.450% 300.0 300.0 Senior Notes due 2018, interest payable semi-annually at 2.000% 250.0 250.0 Senior Notes due 2022, interest payable semi-annually at 5.000% 700.0 700.0 Senior Notes due 2023, interest payable semi-annually at 3.500% 1,000.0 1,000.0 Senior Notes due 2024, interest payable semi-annually at 3.875% 700.0 700.0 Revolving Loan (2) 705.0 795.0 Other 15.4 22.7 4,970.4 5,067.7 Current portion (13.4 ) (13.1 ) Long-term debt, excluding current portion $ 4,957.0 $ 5,054.6 __________________________________________ (1) Interest on the Term Loans A-4 is generally payable at LIBOR plus an applicable margin of up to 1.75% based upon the Company's corporate credit ratings and the ratings on the FIS Credit Agreement. As of September 30, 2015 , the weighted average interest rate on the Term Loans A-4 was 1.45% . (2) Interest on the Revolving Loan is generally payable at LIBOR plus an applicable margin of up to 1.75% plus an unused commitment fee of up to 0.25% , each based upon the Company's corporate credit ratings and the ratings on the FIS Credit Agreement. As of September 30, 2015 , the applicable margin on the Revolving Loan, excluding facility fees and unused commitment fees, was 1.25% . |
Principal maturities of long-term debt | The following table summarizes the mandatory annual principal payments pursuant to the FIS Credit Agreement and the senior notes' indentures as of September 30, 2015 (in millions). There are no mandatory principal payments on the Revolving Loan and any balance outstanding on the Revolving Loan will be due and payable at its scheduled maturity date. See also Note 12 - Subsequent Events regarding new fixed-rate senior notes FIS issued in October 2015 as a source of funding for the pending SunGard acquisition: Term Loans 2017 2018 2022 2023 2024 A-4 Notes Notes Notes Notes Notes Total 2015 $ — $ — $ — $ — $ — $ — $ — 2016 — — — — — — — 2017 1,300.0 300.0 — — — — 1,600.0 2018 — — 250.0 — — — 250.0 2019 — — — — — — — Thereafter — — — 700.0 1,000.0 700.0 2,400.0 Total $ 1,300.0 $ 300.0 $ 250.0 $ 700.0 $ 1,000.0 $ 700.0 $ 4,250.0 |
Interest rate swap | As of September 30, 2015 , we have entered into the following interest rate swap transaction converting a portion of the interest rate exposure on our Term and Revolving Loans from variable to fixed (in millions): Effective date Termination date Notional amount Bank pays variable rate of FIS pays fixed rate of February 3, 2014 February 1, 2017 $ 400.0 1 Month LIBOR (1) 0.89 % (2) ___________________________________ (1) 0.19% in effect as of September 30, 2015 . (2) Does not include the applicable margin and facility fees paid to lenders on Term Loans and Revolving Loan as described above. |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Amounts Attributable to Common Stockholders Abstract | |
Schedule of Stock Repurchased | The table below summarizes quarterly share repurchase activity for 2015 and 2014 under all plans (in millions, except per share amounts): Total cost of shares purchased as part of Total number of Average price publicly announced Three months ended shares purchased paid per share plans or programs September 30, 2015 — $ — $ — June 30, 2015 2.3 $ 64.36 $ 150.0 March 31, 2015 2.2 $ 67.94 $ 150.4 December 31, 2014 — $ — $ — September 30, 2014 2.7 $ 56.26 $ 150.0 June 30, 2014 2.8 $ 54.24 $ 150.5 March 31, 2014 3.2 $ 54.31 $ 175.0 |
Segment Information - (Tables)
Segment Information - (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Summarized financial information for the Company’s segments is shown in the following tables. As of and for the three months ended September 30, 2015 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 970.7 $ 609.1 $ (1.0 ) $ 1,578.8 Operating expenses 621.8 492.2 126.5 1,240.5 Operating income $ 348.9 $ 116.9 $ (127.5 ) 338.3 Other income (expense) unallocated (56.8 ) Income from continuing operations before income taxes $ 281.5 Depreciation and amortization $ 58.7 $ 40.3 $ 57.4 $ 156.4 Capital expenditures (1) $ 45.3 $ 41.2 $ 1.0 $ 87.5 Total assets (2) $ 8,928.7 $ 4,090.1 $ 1,168.1 $ 14,186.9 Goodwill $ 6,697.3 $ 2,064.2 $ — $ 8,761.5 (1) Capital expenditures for the three months ended September 30, 2015 include $0.4 million of capital leases. (2) Total assets as of September 30, 2015 exclude $0.9 million related to discontinued operations. As of and for the three months ended September 30, 2014 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 963.6 $ 642.2 $ (0.5 ) $ 1,605.3 Operating expenses 632.1 540.4 109.1 1,281.6 Operating income $ 331.5 $ 101.8 $ (109.6 ) 323.7 Other income (expense) unallocated (92.5 ) Income from continuing operations before income taxes $ 231.2 Depreciation and amortization $ 54.3 $ 39.5 $ 63.2 $ 157.0 Capital expenditures $ 40.0 $ 42.5 $ 3.5 $ 86.0 Total assets (1) $ 8,936.7 $ 3,908.4 $ 1,317.9 $ 14,163.0 Goodwill $ 6,785.8 $ 1,778.9 $ — $ 8,564.7 (1) Total assets as of September 30, 2014 exclude $9.1 million related to discontinued operations. For the nine months ended September 30, 2015 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 2,908.5 $ 1,814.9 $ (3.0 ) $ 4,720.4 Operating expenses 1,912.2 1,569.6 398.2 3,880.0 Operating income $ 996.3 $ 245.3 $ (401.2 ) 840.4 Other income (expense) unallocated 20.7 Income from continuing operations before income taxes $ 861.1 Depreciation and amortization $ 168.0 $ 124.6 $ 171.7 $ 464.3 Capital expenditures (1) $ 164.6 $ 139.0 $ 4.3 $ 307.9 (1) Capital expenditures for the nine months ended September 30, 2015 include $2.2 million of capital leases. For the nine months ended September 30, 2014 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 2,869.5 $ 1,856.3 $ (1.1 ) $ 4,724.7 Operating expenses 1,892.1 1,601.5 311.6 3,805.2 Operating income $ 977.4 $ 254.8 $ (312.7 ) 919.5 Other income (expense) unallocated (177.2 ) Income from continuing operations before income taxes $ 742.3 Depreciation and amortization $ 159.5 $ 117.8 $ 188.8 $ 466.1 Capital expenditures (1) $ 144.4 $ 121.3 $ 7.8 $ 273.5 (1) Capital expenditures for the nine months ended September 30, 2014 include $0.9 million of capital leases. |
Related Party Transactions - (N
Related Party Transactions - (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | |||||
Ownership percentage of the Brazilian venture (as a percent) | 51.00% | ||||
Banco Bradesco Brazilian Venture | |||||
Related Party Transaction [Line Items] | |||||
Dividends paid | $ 23.6 | ||||
Revenues from related parties | $ 58.1 | $ 74.3 | $ 182.6 | $ 212.6 | |
Unfavorable currency impact | 31.6 | 68.1 | |||
Contract-Based Intangible Assets | Corporate Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Finite-lived intangible assets, net | $ 88.1 | $ 88.1 |
Net Earnings per Share - (Detai
Net Earnings per Share - (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Share [Abstract] | |||||
Earnings from continuing operations attributable to FIS, net of tax | $ 176.9 | $ 151.7 | $ 533.3 | $ 488.1 | |
Earnings (loss) from discontinued operations attributable to FIS, net of tax | (1.7) | (1.2) | (7) | (4.3) | |
Net earnings attributable to FIS common stockholders | $ 175.2 | $ 150.5 | $ 526.3 | $ 483.8 | |
Weighted average shares outstanding — basic (in shares) | 280.4 | 283.1 | 281.5 | 285.5 | |
Plus: Common stock equivalent shares ( in shares) | 3.4 | 3.9 | 3.5 | 3.8 | |
Weighted average shares outstanding — diluted (in shares) | 283.8 | 287 | 285 | 289.3 | |
Net earnings per share — basic from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 0.63 | $ 0.54 | $ 1.89 | $ 1.71 | |
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders (in dollars per share) | (0.01) | 0 | (0.02) | (0.02) | |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | [1] | 0.62 | 0.53 | 1.87 | 1.69 |
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders (in dollars per share) | 0.62 | 0.53 | 1.87 | 1.69 | |
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders (in dollars per share) | (0.01) | 0 | (0.02) | (0.01) | |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | [1] | $ 0.62 | $ 0.52 | $ 1.85 | $ 1.67 |
[1] | * Amounts may not sum due to rounding. |
Net Earnings per Share - (Narra
Net Earnings per Share - (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 0.8 | 0.1 | 0.8 | 4.1 |
Discontinued Operations and O30
Discontinued Operations and Other Dispositions - (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($)claim | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)claim | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2011employee | |
Labor Claims | Secretariat of the Federal Revenue Bureau of Brazil | Potential Tax Liability | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of active claims | claim | 4 | 4 | |||||
Loss contingency, damages sought, value | $ 6,800,000 | ||||||
Loss contingency, potential new claims filed, number | claim | 31 | 31 | |||||
Loss contingency, potential additional claims, damages sought | $ 70,000,000 | $ 70,000,000 | |||||
Loss contingency, total pending and potential pending claims, number | claim | 35 | 35 | |||||
Loss contingency, range of possible loss, maximum | $ 76,800,000 | $ 76,800,000 | |||||
China eCas Business Line | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Expenses of discontinued operation | (200,000) | $ 300,000 | (3,900,000) | $ (2,700,000) | |||
Brazil Item Processing And Remittance Services Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued operation, revenues | 0 | $ 0 | |||||
Disposal group, including discontinued operation, operating expense | $ 2,200,000 | $ 2,200,000 | $ 4,700,000 | $ 3,400,000 | |||
Brazil Item Processing And Remittance Services Operations | Labor Claims | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of employees terminated | employee | 2,600 | ||||||
Number of active claims | claim | 580 | 580 | |||||
Court ordered deposits on potential future labor claims | $ 8,700,000 | $ 8,700,000 | |||||
Accrued liability for labor claims | $ 10,300,000 | $ 10,300,000 | |||||
Brazil Item Processing And Remittance Services Operations | Labor Claims | Maximum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Period from termination date employees can file claims | 2 years | ||||||
Other Nonoperating Income (Expense) | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on Assets Sold | $ 139,400,000 |
Changes in Accumulated Other 31
Changes in Accumulated Other Comprehensive Earnings (Losses) - Accumulated Other Comprehensive Earnings by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax Beginning Balance | $ (107.2) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax Ending Balance | $ (261.4) | (261.4) | ||
Interest income (expense) | (35.6) | $ (37.7) | (108.8) | $ (120.7) |
Income tax expense (benefit) | 100 | 72.1 | 314.2 | 233.7 |
Interest Rate Swap Contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax Beginning Balance | (0.7) | |||
Other comprehensive gain/(loss) before reclassifications | (2.3) | |||
Amounts reclassified from AOCE | 1.7 | |||
Net current period AOCE attributable to FIS | (0.6) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax Ending Balance | (1.3) | (1.3) | ||
Interest Rate Swap Contracts | Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Contract | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Interest income (expense) | (2.7) | |||
Income tax expense (benefit) | (1) | |||
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax Beginning Balance | (95.2) | |||
Other comprehensive gain/(loss) before reclassifications | (145.9) | |||
Amounts reclassified from AOCE | 0 | |||
Net current period AOCE attributable to FIS | (145.9) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax Ending Balance | (241.1) | (241.1) | ||
Income tax expense (benefit) | (0.8) | (3.3) | 0.5 | (2.4) |
Other | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax Beginning Balance | (11.3) | |||
Other comprehensive gain/(loss) before reclassifications | (7.7) | |||
Amounts reclassified from AOCE | 0 | |||
Net current period AOCE attributable to FIS | (7.7) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax Ending Balance | (19) | (19) | ||
Income tax expense (benefit) | 0 | 0 | 0.2 | 0 |
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax Beginning Balance | (107.2) | |||
Other comprehensive gain/(loss) before reclassifications | (155.9) | |||
Amounts reclassified from AOCE | 1.7 | |||
Net current period AOCE attributable to FIS | (154.2) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax Ending Balance | (261.4) | (261.4) | ||
Income tax expense (benefit) | $ (5.8) | $ (2.4) | $ (4.6) | $ (1.3) |
Changes in Accumulated Other 32
Changes in Accumulated Other Comprehensive Earnings (Losses) - Provision for Income Tax Expense (Benefit) Related to items of Other Comprehensive Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for income taxes | $ 100 | $ 72.1 | $ 314.2 | $ 233.7 |
Unrealized gain (loss) on investments and derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for income taxes | (5) | 0.9 | (5.3) | 1.1 |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for income taxes | (0.8) | (3.3) | 0.5 | (2.4) |
Other components of other comprehensive earnings (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for income taxes | 0 | 0 | 0.2 | 0 |
Provision for income tax expense (benefit) related to items of other comprehensive earnings | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for income taxes | $ (5.8) | $ (2.4) | $ (4.6) | $ (1.3) |
Condensed Consolidated Financ33
Condensed Consolidated Financial Statement Details - (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Condensed Consolidated Financial Statement Details | ||||
Property and equipment, cost | $ 1,242.3 | $ 1,242.3 | $ 1,204.4 | |
Property and equipment, accumulated depreciation and amortization | 761.3 | 761.3 | 721.1 | |
Property and equipment, net | 481 | 481 | 483.3 | |
Intangible assets, cost | 2,772.7 | 2,772.7 | 2,884.5 | |
Intangible assets, accumulated depreciation and amortization | 1,718.8 | 1,718.8 | 1,616.5 | |
Intangible assets, net | 1,053.9 | 1,053.9 | 1,268 | |
Computer Software, cost | 1,588.4 | 1,588.4 | 1,592.6 | |
Computer software, accumulated depreciation and amortization | 686.3 | 686.3 | 699.2 | |
Computer software, net | 902.1 | 902.1 | 893.4 | |
Capital lease obligations incurred | 0.4 | 2.2 | $ 0.9 | |
Settlement deposits | $ 125 | $ 125 | $ 139.3 |
Long-Term Debt - Schedule of lo
Long-Term Debt - Schedule of long term debt (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Long-Term Debt | ||
Other | $ 15.4 | $ 22.7 |
Total | 4,970.4 | 5,067.7 |
Current portion | (13.4) | (13.1) |
Long-term debt, excluding current portion | 4,957 | 5,054.6 |
Term Loans A-4, quarterly principal amortization | ||
Long-Term Debt | ||
Term Loan | 1,300 | $ 1,300 |
Total | $ 1,300 | |
Applicable margin | 1.75% | 1.75% |
Weighted average interest rate | 1.45% | |
Senior Notes due 2017, interest payable semi-annually at 1.450% | ||
Long-Term Debt | ||
Senior notes | $ 300 | $ 300 |
Total | $ 300 | |
Debt instrument, stated percentage | 1.45% | 1.45% |
Senior Notes due 2018, interest payable semi-annually at 2.000% | ||
Long-Term Debt | ||
Senior notes | $ 250 | $ 250 |
Total | $ 250 | |
Debt instrument, stated percentage | 2.00% | 2.00% |
Senior Notes due 2022, interest payable semi-annually at 5.000% | ||
Long-Term Debt | ||
Senior notes | $ 700 | $ 700 |
Total | $ 700 | |
Debt instrument, stated percentage | 5.00% | 5.00% |
Senior Notes due 2023, interest payable semi-annually at 3.500% | ||
Long-Term Debt | ||
Senior notes | $ 1,000 | $ 1,000 |
Total | $ 1,000 | |
Debt instrument, stated percentage | 3.50% | 3.50% |
Senior Notes due 2024, interest payable semi-annually at 3.875% | ||
Long-Term Debt | ||
Senior notes | $ 700 | $ 700 |
Total | $ 700 | |
Debt instrument, stated percentage | 3.875% | 3.875% |
Revolving Loan | ||
Long-Term Debt | ||
Term Loan | $ 705 | $ 795 |
Applicable margin | 1.75% | |
Unused commitment fee | 0.25% | 0.25% |
Line of credit facility marginal rates | 1.25% |
Long-Term Debt - Principal matu
Long-Term Debt - Principal maturities of long-term debt (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Principal maturities of long-term debt | ||
Total | $ 4,970.4 | $ 5,067.7 |
Term Loans A-4 | ||
Principal maturities of long-term debt | ||
2,015 | 0 | |
2,016 | 0 | |
2,017 | 1,300 | |
2,018 | 0 | |
2,019 | 0 | |
Thereafter | 0 | |
Total | 1,300 | |
2017 Notes | ||
Principal maturities of long-term debt | ||
2,015 | 0 | |
2,016 | 0 | |
2,017 | 300 | |
2,018 | 0 | |
2,019 | 0 | |
Thereafter | 0 | |
Total | 300 | |
2018 Notes | ||
Principal maturities of long-term debt | ||
2,015 | 0 | |
2,016 | 0 | |
2,017 | 0 | |
2,018 | 250 | |
2,019 | 0 | |
Thereafter | 0 | |
Total | 250 | |
2022 Notes | ||
Principal maturities of long-term debt | ||
2,015 | 0 | |
2,016 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
Thereafter | 700 | |
Total | 700 | |
2023 Notes | ||
Principal maturities of long-term debt | ||
2,015 | 0 | |
2,016 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
Thereafter | 1,000 | |
Total | 1,000 | |
2024 Notes | ||
Principal maturities of long-term debt | ||
2,015 | 0 | |
2,016 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
Thereafter | 700 | |
Total | 700 | |
Total | ||
Principal maturities of long-term debt | ||
2,015 | 0 | |
2,016 | 0 | |
2,017 | 1,600 | |
2,018 | 250 | |
2,019 | 0 | |
Thereafter | 2,400 | |
Total | $ 4,250 |
Long-Term Debt - Interest rate
Long-Term Debt - Interest rate swap (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Interest rate swap | |
1 month LIBOR rate in effect | 0.19% |
Interest Rate Swap Two | |
Interest rate swap | |
Effective date | Feb. 3, 2014 |
Termination date | Feb. 1, 2017 |
Notional amount | $ 400 |
FIS pays fixed rate of | 0.89% |
Long-Term Debt - (Narrative) (D
Long-Term Debt - (Narrative) (Details) - USD ($) | Oct. 13, 2015 | Oct. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Oct. 20, 2015 | Aug. 12, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||||||
Debt issuance cost | $ 17,000,000 | |||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||
Total debt issuance costs | $ 37,900,000 | 37,900,000 | $ 37,900,000 | |||||
Fair value, aggregate differences | 38,700,000 | 38,700,000 | 38,700,000 | |||||
Long-term debt | 4,970,400,000 | 4,970,400,000 | 4,970,400,000 | $ 5,067,700,000 | ||||
Debt instrument, fee amount | 2,600,000 | 2,600,000 | 2,600,000 | |||||
FIS Credit Agreements | ||||||||
Debt Instrument [Line Items] | ||||||||
Total committed capital, credit agreement | 4,300,000,000 | 4,300,000,000 | 4,300,000,000 | |||||
FIS Credit Agreements | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | |||||
Credit facility outstanding amount | 705,000,000 | 705,000,000 | 705,000,000 | |||||
Additional term and revolving loan capacity in the future | 2,294,200,000 | 2,294,200,000 | 2,294,200,000 | |||||
Long-term debt | 0 | 0 | 0 | |||||
FIS Credit Agreements | Term Loan A-3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loans | 1,300,000,000 | 1,300,000,000 | 1,300,000,000 | |||||
Letter of Credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility outstanding amount | 800,000 | 800,000 | 800,000 | |||||
Treasury Lock | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative, notional amount | 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Subsequent Event | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loans | $ 1,500,000,000 | |||||||
Debt instrument, term | 3 years | |||||||
Subsequent Event | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loans | $ 4,500,000,000 | $ 4,500,000,000 | ||||||
Bridge Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, current | $ 6,900,000,000 | |||||||
Cash Flow Hedging | Treasury Lock | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative instruments, loss recognized in other comprehensive income (loss) | $ 12,800,000 | |||||||
Cash Flow Hedging | Subsequent Event | Treasury Lock | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative instruments, loss recognized in other comprehensive income (loss) | $ 15,900,000 | |||||||
Amortization period of deferred gain (loss) on derivative | 10 years |
Commitments and Contingencies -
Commitments and Contingencies - (Details) - patent | Jul. 08, 2015 | Apr. 29, 2015 | Dec. 22, 2014 | May. 28, 2013 | Jan. 05, 2012 |
Check Free Corporation and Cash Edge, Inc v. Metavante Corporation and Fidelity National Information Services, Inc | |||||
Loss Contingencies [Line Items] | |||||
Gain contingency, number of patents allegedly infringed upon | 3 | ||||
Loss contingency, number of patents allegedly infringed upon | 2 | 2 | |||
Patents found not infringed upon | 4 | ||||
DataTreasury Corporation v. Fidelity National Information Services, Inc. et. al | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, number of patents allegedly infringed upon | 2 | 2 |
Share Repurchase Program - (Nar
Share Repurchase Program - (Narrative) (Details) - USD ($) | Sep. 30, 2015 | Jan. 29, 2014 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 2,000,000,000 | |
Employee Stock Purchase Plan - 2014 Plan | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,224,100,000 |
Share Repurchase Program - Sche
Share Repurchase Program - Schedule of Stock Repurchased (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Amounts Attributable to Common Stockholders Abstract | |||||||
Total number of shares purchased (in shares) | 0 | 2.3 | 2.2 | 0 | 2.7 | 2.8 | 3.2 |
Average price paid per share (in dollars per share) | $ 0 | $ 64.36 | $ 67.94 | $ 0 | $ 56.26 | $ 54.24 | $ 54.31 |
Total cost of shares purchased as part of publicly announced plans or programs | $ 0 | $ 150 | $ 150.4 | $ 0 | $ 150 | $ 150.5 | $ 175 |
Segment Information - (Details)
Segment Information - (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)country | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segmentcountry | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Segment Information | |||||
Processing and services revenues | $ 1,578.8 | $ 1,605.3 | $ 4,720.4 | $ 4,724.7 | |
Operating expenses | 1,240.5 | 1,281.6 | 3,880 | 3,805.2 | |
Operating income | 338.3 | 323.7 | 840.4 | 919.5 | |
Other income (expense) unallocated | (56.8) | (92.5) | 20.7 | (177.2) | |
Earnings from continuing operations before income taxes | 281.5 | 231.2 | 861.1 | 742.3 | |
Depreciation and amortization | 156.4 | 157 | 464.3 | 466.1 | |
Assets From Continuing Operations | 14,186.9 | 14,163 | 14,186.9 | 14,163 | |
Goodwill | 8,761.5 | 8,564.7 | 8,761.5 | 8,564.7 | $ 8,877.6 |
Segment Information (Textuals) [Abstract] | |||||
Amount related to discontinued operations that is excluded from total asset | 0.9 | 9.1 | 0.9 | 9.1 | |
Capital lease obligations | 0.4 | 2.2 | 0.9 | ||
Payments to Acquire Productive Assets | $ 87.5 | 86 | $ 307.9 | 273.5 | |
Global Financial Solutions | |||||
Segment Information (Textuals) [Abstract] | |||||
Number of countries we operate in (more than) | country | 130 | 130 | |||
Long-term assets, excluding goodwill and other intangible assets | $ 359.4 | 364.3 | $ 359.4 | 364.3 | |
Operating Segments | Integrated Financial Solutions | |||||
Segment Information | |||||
Processing and services revenues | 970.7 | 963.6 | 2,908.5 | 2,869.5 | |
Operating expenses | 621.8 | 632.1 | 1,912.2 | 1,892.1 | |
Operating income | 348.9 | 331.5 | 996.3 | 977.4 | |
Depreciation and amortization | 58.7 | 54.3 | 168 | 159.5 | |
Assets From Continuing Operations | 8,928.7 | 8,936.7 | 8,928.7 | 8,936.7 | |
Goodwill | 6,697.3 | 6,785.8 | 6,697.3 | 6,785.8 | |
Segment Information (Textuals) [Abstract] | |||||
Payments to Acquire Productive Assets | 45.3 | 40 | 164.6 | 144.4 | |
Operating Segments | Global Financial Solutions | |||||
Segment Information | |||||
Processing and services revenues | 609.1 | 642.2 | 1,814.9 | 1,856.3 | |
Operating expenses | 492.2 | 540.4 | 1,569.6 | 1,601.5 | |
Operating income | 116.9 | 101.8 | 245.3 | 254.8 | |
Depreciation and amortization | 40.3 | 39.5 | 124.6 | 117.8 | |
Assets From Continuing Operations | 4,090.1 | 3,908.4 | 4,090.1 | 3,908.4 | |
Goodwill | 2,064.2 | 1,778.9 | 2,064.2 | 1,778.9 | |
Segment Information (Textuals) [Abstract] | |||||
Payments to Acquire Productive Assets | 41.2 | 42.5 | 139 | 121.3 | |
Operating Segments | Corporate and Other | |||||
Segment Information | |||||
Processing and services revenues | (1) | (0.5) | (3) | (1.1) | |
Operating expenses | 126.5 | 109.1 | 398.2 | 311.6 | |
Operating income | (127.5) | (109.6) | (401.2) | (312.7) | |
Depreciation and amortization | 57.4 | 63.2 | 171.7 | 188.8 | |
Assets From Continuing Operations | 1,168.1 | 1,317.9 | 1,168.1 | 1,317.9 | |
Goodwill | 0 | 0 | 0 | 0 | |
Segment Information (Textuals) [Abstract] | |||||
Payments to Acquire Productive Assets | $ 1 | $ 3.5 | $ 4.3 | $ 7.8 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) shares in Millions, $ in Millions | Oct. 01, 2014USD ($) | Jul. 15, 2014USD ($) | Dec. 31, 2015USD ($)employeeshares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Cost of acquired entity | $ 16.8 | $ 133.6 | |||
Clear2Pay NV | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||
Cost of acquired entity | $ 462 | ||||
Reliance Financial Corporation | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||
Business combination consideration transferred | $ 110 | ||||
Scenario, Forecast | SunGard | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, combined number of employees after acquisition (more than) | employee | 55,000 | ||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||
Payments to acquire businesses, gross | $ 2,300 | ||||
Debt, current | $ 4,700 | ||||
Scenario, Forecast | Common stock | SunGard | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, interest issued, number of shares | shares | 44.7 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) shares in Millions | Oct. 20, 2015 | Dec. 31, 2015 | Oct. 31, 2015 |
Scenario, Forecast | SunGard | |||
Subsequent Event [Line Items] | |||
Payments to acquire businesses, gross | $ 2,300,000,000 | ||
Debt, current | $ 4,700,000,000 | ||
Scenario, Forecast | SunGard | Common stock | |||
Subsequent Event [Line Items] | |||
Business acquisition, interest issued, number of shares | 44.7 | ||
Notes Payable to Banks [Member] | SunGard | Scenario, Forecast | |||
Subsequent Event [Line Items] | |||
Debt, current | $ 2,500,000,000 | ||
Senior Subordinated Notes [Member] | SunGard | Scenario, Forecast | |||
Subsequent Event [Line Items] | |||
Debt, current | $ 2,200,000,000 | ||
Senior Notes | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Face Amount | $ 4,500,000,000 | $ 4,500,000,000 | |
Debt instrument, redemption price, percentage of principal amount redeemed | 101.00% | ||
Senior Notes | 2018 Senior Notes Due, Interest Payable at 2.850% | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Face Amount | $ 750,000,000 | ||
Debt instrument, stated percentage | 2.85% | ||
Senior Notes | 2020 Senior Notes Due, Interest Payable at 3.625% | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Face Amount | $ 1,750,000,000 | ||
Debt instrument, stated percentage | 3.625% | ||
Senior Notes | 2022 Senior Notes Due, Interest Payable at 4.500% | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Face Amount | $ 500,000,000 | ||
Debt instrument, stated percentage | 4.50% | ||
Senior Notes | 2025 Senior Notes Due, Interest Payable at 5.00% | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||
Debt instrument, stated percentage | 5.00% |