Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
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 | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 330,582,225 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 705 | $ 683 |
Settlement deposits | 507 | 520 |
Trade receivables, net of allowance for doubtful accounts of $31 and $41 as of March 31, 2017 and December 31, 2016, respectively | 1,596 | 1,639 |
Settlement receivables | 267 | 175 |
Other receivables | 58 | 65 |
Prepaid expenses and other current assets | 276 | 236 |
Deferred income taxes | 0 | 101 |
Assets held for sale | 0 | 863 |
Total current assets | 3,409 | 4,282 |
Property and equipment, net | 610 | 626 |
Goodwill | 14,184 | 14,178 |
Intangible assets, net | 4,498 | 4,664 |
Computer software, net | 1,682 | 1,608 |
Deferred contract costs, net | 325 | 310 |
Other noncurrent assets | 378 | 363 |
Total assets | 25,086 | 26,031 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,269 | 1,146 |
Settlement payables | 758 | 714 |
Deferred revenues | 760 | 680 |
Current portion of long-term debt | 351 | 332 |
Liabilities held for sale | 0 | 279 |
Total current liabilities | 3,138 | 3,151 |
Long-term debt, excluding current portion | 9,154 | 10,146 |
Deferred income taxes | 2,389 | 2,484 |
Deferred revenues | 21 | 19 |
Other long-term liabilities | 394 | 386 |
Total liabilities | 15,096 | 16,186 |
FIS stockholders’ equity: | ||
Preferred stock, $0.01 par value, 200 shares authorized, none issued and outstanding as of March 31, 2017 and December 31, 2016 | 0 | 0 |
Common stock, $0.01 par value, 600 shares authorized, 431 shares issued as of March 31, 2017 and December 31, 2016 | 4 | 4 |
Additional paid in capital | 10,419 | 10,380 |
Retained earnings | 3,341 | 3,299 |
Accumulated other comprehensive earnings (loss) | (298) | (331) |
Treasury stock, 102 and 103 shares as of March 31, 2017 and December 31, 2016, respectively, at cost | (3,588) | (3,611) |
Total FIS stockholders’ equity | 9,878 | 9,741 |
Noncontrolling interest | 112 | 104 |
Total equity | 9,990 | 9,845 |
Total liabilities and equity | $ 25,086 | $ 26,031 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Allowance for doubtful accounts | $ 31 | $ 41 |
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) | 431,000,000 | 431,000,000 |
Treasury stock, shares (in shares) | 102,000,000 | 103,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Processing and services revenues | $ 2,255 | $ 2,181 |
Cost of revenues | 1,582 | 1,553 |
Gross profit | 673 | 628 |
Selling, general, and administrative expenses | 413 | 444 |
Operating income | 260 | 184 |
Other income (expense): | ||
Interest expense, net | (93) | (93) |
Other income (expense), net | 56 | (1) |
Total other income (expense), net | (37) | (94) |
Earnings from continuing operations before income taxes | 223 | 90 |
Provision for income taxes | 79 | 31 |
Earnings from continuing operations, net of tax | 144 | 59 |
Earnings (loss) from discontinued operations, net of tax | 0 | 0 |
Net earnings | 144 | 59 |
Net earnings attributable to noncontrolling interest | (6) | (4) |
Net earnings attributable to FIS common stockholders | $ 138 | $ 55 |
Net earnings per share — basic from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 0.42 | $ 0.17 |
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders (in dollars per share) | 0 | 0 |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | $ 0.42 | $ 0.17 |
Weighted average shares outstanding — basic (in shares) | 328 | 324 |
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 0.41 | $ 0.17 |
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders (in dollars per share) | 0 | 0 |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | $ 0.41 | $ 0.17 |
Weighted average shares outstanding — diluted (in shares) | 333 | 327 |
Cash dividends paid per share (in dollars per share) | $ 0.29 | $ 0.26 |
Amounts attributable to FIS common stockholders: | ||
Net earnings from continuing operations | $ 138 | $ 55 |
Net earnings (loss) from discontinued operations | 0 | 0 |
Net earnings attributable to FIS common stockholders | $ 138 | $ 55 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 144 | $ 59 |
Other comprehensive earnings, before tax: | ||
Unrealized gain (loss) on investments and derivatives | 0 | (6) |
Reclassification adjustment for gains (losses) included in net earnings | 0 | 2 |
Unrealized gain (loss) on investments and derivatives, net | 0 | (4) |
Foreign currency translation adjustments | 36 | 54 |
Other comprehensive earnings (loss), before tax: | 36 | 50 |
Provision for income tax expense (benefit) related to items of other comprehensive earnings | 0 | (4) |
Other comprehensive earnings (loss), net of tax | 36 | 54 |
Comprehensive (loss) earnings: | 180 | 113 |
Net (earnings) loss attributable to noncontrolling interest | (6) | (4) |
Other comprehensive (earnings) losses attributable to noncontrolling interest | (3) | (7) |
Comprehensive earnings (loss) attributable to FIS common stockholders | $ 171 | $ 102 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Equity (Unaudited) - 3 months ended Mar. 31, 2017 - 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, 2016 | 431 | 103 | |||||
Beginning Balance at Dec. 31, 2016 | $ 9,845 | $ 4 | $ 10,380 | $ 3,299 | $ (331) | $ (3,611) | $ 104 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 1 | ||||||
Exercise of stock options | 51 | 13 | $ 38 | ||||
Treasury shares held for taxes due upon exercise of stock options (in shares) | 0 | ||||||
Treasury shares held for taxes due upon exercise of stock options | (17) | (2) | $ (15) | ||||
Stock-based compensation | 28 | 28 | |||||
Cash dividends paid ($0.29 per share per quarter) and other distributions | (97) | (96) | (1) | ||||
Net earnings | 144 | 138 | 6 | ||||
Other comprehensive loss, net of tax | 36 | 33 | 3 | ||||
Ending Balance (in shares) at Mar. 31, 2017 | 431 | 102 | |||||
Ending Balance at Mar. 31, 2017 | $ 9,990 | $ 4 | $ 10,419 | $ 3,341 | $ (298) | $ (3,588) | $ 112 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid per share (in dollars per share) | $ 0.29 | $ 0.26 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net earnings | $ 144 | $ 59 |
Adjustment to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 339 | 293 |
Amortization of debt issue costs | 12 | 5 |
Gain on sale of business | (85) | 0 |
Stock-based compensation | 26 | 30 |
Deferred income taxes | (150) | (64) |
Excess income tax benefit from exercise of stock options | 0 | (8) |
Other operating activities | 0 | (1) |
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | ||
Trade receivables | 67 | 21 |
Settlement activity | (36) | (20) |
Prepaid expenses and other assets | (50) | (51) |
Deferred contract costs | (37) | (17) |
Deferred revenue | 77 | 165 |
Accounts payable, accrued liabilities, and other liabilities | 147 | (27) |
Net cash provided by operating activities | 454 | 385 |
Cash flows from investing activities: | ||
Additions to property and equipment | (44) | (34) |
Additions to computer software | (111) | (111) |
Proceeds from sale of business | 827 | 0 |
Other investing activities, net | (1) | (1) |
Net cash provided by (used in) investing activities | 671 | (146) |
Cash flows from financing activities: | ||
Borrowings | 1,381 | 1,639 |
Repayment of borrowings | (2,443) | (1,791) |
Excess income tax benefit from exercise of stock options | 0 | 8 |
Proceeds from exercise of stock options | 64 | 26 |
Treasury stock activity | (17) | (18) |
Dividends paid | (95) | (85) |
Other financing activities, net | (4) | (18) |
Net cash used in financing activities | (1,114) | (239) |
Effect of foreign currency exchange rate changes on cash | 11 | 20 |
Net increase in cash and cash equivalents | 22 | 20 |
Cash and cash equivalents, beginning of period | 683 | 682 |
Cash and cash equivalents, end of period | 705 | 702 |
Supplemental cash flow information: | ||
Cash paid for interest | 59 | 37 |
Cash paid for income taxes | $ 55 | $ 48 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 . 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 2016 Condensed Consolidated Financial Statements (Unaudited) to conform to the classifications used in 2017 . We report the results of our operations in three reporting segments: Integrated Financial Solutions (“IFS”), Global Financial Solutions (“GFS”) and Corporate and Other (Note 10). |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions SunGard FIS completed the SunGard acquisition on November 30, 2015, and SunGard's results of operations and financial position are included in the consolidated financial statements from and after the date of acquisition. In accordance with ASU 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments", the financial statements were not retrospectively adjusted for any measurement-period adjustments that occurred in subsequent periods. Rather, any adjustments to provisional amounts that were identified during the measurement period are recorded in the reporting period in which the adjustment was determined. During the year ended December 31, 2016, adjustments were recorded to increase the fair values assigned to intangible assets, deferred taxes, other liabilities and property and equipment and to reduce the value assigned to goodwill. We are also required to record, in the same period’s financial statements in which adjustments are recorded, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of any change to the provisional amounts, calculated as if the accounting adjustment had been completed at the acquisition date. Additional depreciation and amortization of $6 million that would have been recognized in 2015 was recorded during the three months ended March 31, 2016 related to the changes in provisional values of intangible assets. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 (in millions): March 31, 2017 December 31, 2016 Cost Accumulated Net Cost Accumulated Net Property and equipment $ 1,520 $ 910 $ 610 $ 1,488 $ 862 $ 626 Intangible assets $ 6,555 $ 2,057 $ 4,498 $ 6,547 $ 1,883 $ 4,664 Computer software $ 2,472 $ 790 $ 1,682 $ 2,376 $ 768 $ 1,608 The Company entered into capital lease obligations of $74 million and less than $1 million during the three months ended March 31, 2017 and 2016 , respectively. The assets are included in property and equipment and the remaining capital lease obligations are classified as long-term debt on our Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2017 . Periodic payments are included in repayment of borrowings on the Condensed Consolidated Statements of Cash Flows (Unaudited). Changes in goodwill during the three months ended March 31, 2017 are summarized as follows (in millions): Total Balance, December 31, 2016 $ 14,178 Foreign currency adjustments 6 Balance, March 31, 2017 $ 14,184 As of March 31, 2017, intangible assets, net of amortization, includes $4,364 million of customer relationships and $54 million of finite-lived trademarks, as well as $80 million of non-amortizable assets consisting mainly of indefinite-lived trademarks. Amortization expense for the quarter related to these intangible assets was $174 million . Settlement Activity We manage certain integrated electronic payment services and programs and wealth management processes for our clients that 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. 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 | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt as of March 31, 2017 and December 31, 2016 , consisted of the following (in millions): March 31, 2017 December 31, 2016 2018 Term Loans (1) $ — $ 550 Senior Notes due June 2017, interest payable semi-annually at 1.450% 300 300 Senior Notes due April 2018, interest payable semi-annually at 2.000% 250 250 Senior Notes due October 2018, interest payable semi-annually at 2.850% 750 750 Senior Notes due October 2020, interest payable semi-annually at 3.625% 1,750 1,750 Senior Notes due August 2021, interest payable semi-annually at 2.250% 750 750 Senior Notes due March 2022, interest payable semi-annually at 5.000% — 700 Senior Notes due October 2022, interest payable semi-annually at 4.500% 500 500 Senior Notes due April 2023, interest payable semi-annually at 3.500% 1,000 1,000 Senior Notes due June 2024, interest payable semi-annually at 3.875% 700 700 Senior Notes due October 2025, interest payable semi-annually at 5.000% 1,500 1,500 Senior Notes due August 2026, interest payable semi-annually at 3.000% 1,250 1,250 Senior Notes due August 2046, interest payable semi-annually at 4.500% 500 500 Revolving Loan (2) 242 36 Other 13 (58 ) 9,505 10,478 Current portion (351 ) (332 ) Long-term debt, excluding current portion $ 9,154 $ 10,146 __________________________________________ (1) Interest on the 2018 Term Loans was generally payable at LIBOR plus an applicable margin of up to 1.75% based upon the Company's corporate credit ratings. The outstanding balance on the 2018 Term Loans was paid down as of March 31, 2017 . (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. As of March 31, 2017 , the weighted average interest rate on the Revolving Loan, excluding fees, was 2.17% . On August 10, 2016, FIS amended and extended its syndicated credit agreement (the "FIS Credit Agreement"). As of March 31, 2017 , the FIS Credit Agreement provided total committed capital of $3,000 million in the form of a revolving credit facility (the "Revolving Loan") maturing on August 10, 2021. As of March 31, 2017 , the outstanding principal balance of the Revolving Loan was $242 million , with $2,751 million of borrowing capacity remaining thereunder (net of $7 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 customary events of default. The following summarizes the aggregate maturities of our debt and capital leases on stated contractual maturities, excluding unamortized non-cash bond premiums and discounts of $34 million as of March 31, 2017 (in millions). Total 2017 $ 338 2018 1,038 2019 36 2020 1,751 2021 992 Thereafter 5,450 Total principal payments 9,605 Debt issuance costs, net of accumulated amortization (66 ) Total long-term debt $ 9,539 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, which occurs at August 10, 2021. On March 15, 2017, FIS redeemed 100% of the outstanding aggregate principal amount of its $700 million 5.000% Senior Notes due March 2022 (the "Notes"). On February 1, 2017, the Company also paid down the outstanding balance on the 2018 Term Loans. The Notes and 2018 Term Loans were funded by borrowings under the Company’s Revolving Loan and cash proceeds from the sale of the Public Sector and Education ("PS&E") business. As a result of the redemption of the Notes and the pay down of the 2018 Term Loans, FIS incurred a pre-tax charge of approximately $25 million consisting of the call premium on the Notes and the write-off of previously capitalized debt issuance costs. FIS may redeem the 2017 Notes, the April and October 2018 Notes, 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes, 2024 Notes, 2025 Notes, 2026 Notes, and 2046 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 2020 Notes and the 2021 Notes during the one month prior to their maturity, the 2022 Notes during the two months prior to their maturity, the 2023 Notes, the 2024 Notes, the 2025 Notes, and the 2026 Notes during the three months prior to their maturity, and the 2046 Notes during the six months prior to their maturity. We monitor the financial stability of our counterparties on an ongoing basis. The lender commitments under the undrawn portions of the Revolving Loan are comprised of a diversified set of financial institutions, both domestic and international. The failure of any single lender to perform its obligations under the Revolving Loan would not adversely impact our ability to fund operations. The fair value of the Company’s long-term debt is estimated to be approximately $175 million higher than the carrying value as of March 31, 2017 . This estimate is based on quoted prices of our senior notes and trades of our other debt in close proximity to March 31, 2017 , 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. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments As of March 31, 2017 , we had no interest rate swap transactions. A summary of the effect of derivative instruments on the Company’s Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) and recognized in AOCE for the three months ended March 31, 2017 and 2016 are as follows (in millions): Amount of gain (loss) recognized in AOCE on derivatives Amount of gain (loss) reclassified from AOCE into income Derivatives in cash Three months ended Location of loss Three months ended flow hedging March 31, reclassified from March 31, relationships 2017 2016 AOCE into income 2017 2016 Interest rate derivative contracts $ — $ (9 ) Interest expense $ — $ (2 ) Approximately $1 million of the balance in AOCE as of March 31, 2017 , is expected to be reclassified into income over the next twelve months. We use currency forward contracts to manage our exposure to fluctuations in costs caused by variations in Indian Rupee (“INR”) exchange rates. As of March 31, 2017 the notional amount of these derivatives was approximately $2 million and the fair value was nominal. These INR forward contracts are designated as cash flow hedges. The fair value of these currency forward contracts is determined using currency exchange market rates, obtained from reliable, independent, third party banks, as of the balance sheet date. The fair value of forward contracts is subject to changes in currency exchange rates. The Company has no ineffectiveness related to its use of currency forward contracts in connection with INR cash flow hedges. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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. 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 U.S. 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 Plaintiff seeks damages, injunctive relief and attorneys' fees for the alleged infringement of two patents. On October 25, 2013, the Company filed for covered business method ("CBM") post-grant reviews of the validity of the Plaintiff's asserted patents at the U.S. Patent and Trademark Office ("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 Patent Trial and Appeal Board ("PTAB") issued final written decisions on the Company’s two CBM petitions holding that all claims of the Plaintiff’s two patents are unpatentable ("Final Written Decision"). 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. On October 13, 2016, the Federal Circuit affirmed the USPTO's Final Written Decisions finding the Plaintiff's two patents to be unpatentable. On January 11, 2017, the Plaintiff filed a petition for certiorari to the Supreme Court of the United States seeking to appeal certain findings of the Federal Circuit. On March 20, 2017, the Supreme Court denied the Plaintiff’s Petition for Writ of Certiorari. All appeals having been exhausted, on March 30, 2017, the District Court below dismissed the case with prejudice. The case is now over. Reliance Trust Claims Reliance Trust Company, the Company’s subsidiary, is named as a defendant in a class action arising out of its provision of services as the discretionary trustee for a 401(k) Plan for one of its customers. Plaintiffs in the action seek damages and attorneys’ fees, as well as equitable relief, for alleged breaches of fiduciary duty and prohibited transactions under the Employee Retirement Income Security Act of 1974. The action also makes claims against the Plan's sponsor and recordkeeper. Reliance Trust Company is vigorously defending the action and believes that it has meritorious defenses. While we believe that the ultimate resolution of the matter will not have a material impact on our financial condition, we are unable at this time to make an estimate of potential losses arising from the action because the matter is at an early stage and involves unresolved questions of fact and law. Brazilian Tax Authorities Claims In 2004, Proservvi Empreendimentos e Servicos, Ltda., the predecessor to Fidelity National Servicos de Tratamento de Documentos e Informatica Ltda. (“Servicos”), a subsidiary of Fidelity National Participacoes Ltda., our former item processing and remittance services operation in Brazil, 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 Prosegur and Servicos were successors in interest to Transpev. To date, the Brazilian tax authorities filed nine claims against Servicos asserting potential tax liabilities of approximately $14 million . There are potentially 26 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 $56 million making the total potential exposure for all 35 claims approximately $70 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. Acquired Contingencies (SunGard) The Company became responsible for certain contingencies which were assumed in the SunGard acquisition. The Condensed Consolidated Balance Sheet as of March 31, 2017 includes a liability of $101 million mostly related to unclaimed property examinations and tax compliance matters. Indemnifications and Warranties The Company generally indemnifies its clients, 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions 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 March 31, 2017 was $86 million . The carrying value of the noncontrolling interest as of March 31, 2017 was $107 million . The Company recorded revenues of $80 million and $55 million during the three months ended March 31, 2017 and 2016 , respectively, from Banco Bradesco. Revenues included $14 million of favorable currency impact during the three months ended March 31, 2017 , resulting from foreign currency exchange rate fluctuations between the U.S. Dollar and Brazilian Real. A summary of the Company’s related party receivables and payables is as follows (in millions): March 31, December 31, Related Party Balance sheet location 2017 2016 Banco Bradesco Trade receivables $ 48 $ 45 Banco Bradesco Accounts payable and accrued liabilities 11 10 Banco Bradesco Other long-term liabilities 23 22 |
Net Earnings per Share
Net Earnings per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Earnings per Share | Net Earnings per Share The basic weighted average shares and common stock equivalents for the three months ended March 31, 2017 and 2016 are computed using the treasury stock method. The following table summarizes the earnings per share attributable to FIS common stockholders for the three months ended March 31, 2017 and 2016 (in millions, except per share amounts): Three months ended 2017 2016 Net earnings from continuing operations attributable to FIS $ 138 $ 55 Net earnings (loss) from discontinued operations attributable to FIS — — Net earnings attributable to FIS common stockholders $ 138 $ 55 Weighted average shares outstanding — basic 328 324 Plus: Common stock equivalent shares 5 3 Weighted average shares outstanding — diluted 333 327 Net earnings per share — basic from continuing operations attributable to FIS common stockholders $ 0.42 $ 0.17 Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders — — Net earnings per share — basic attributable to FIS common stockholders $ 0.42 $ 0.17 Net earnings per share — diluted from continuing operations attributable to FIS common stockholders $ 0.41 $ 0.17 Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders — — Net earnings per share — diluted attributable to FIS common stockholders $ 0.41 $ 0.17 Amounts in table may not sum due to rounding. Options to purchase less than 1 million and approximately 11 million shares of our common stock for the three months ended March 31, 2017 and 2016 , respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |
Divestitures | Divestitures On February 1, 2017, the Company closed on the sale of the SunGard Public Sector and Education ("PS&E") business for $850 million , resulting in a pre-tax gain of $85 million . The transaction included all PS&E solutions, which provided a comprehensive set of technology solutions to address public safety and public administration needs of government entities as well as the needs of K-12 school districts. The divestiture is consistent with our strategy to serve the financial services markets. Cash proceeds were used to reduce outstanding debt (see Note 4). Net cash proceeds, after payment of taxes and transaction-related expenses, will be approximately $500 million . The PS&E business was included in the Corporate and Other segment. The sale did not meet the standard necessary to be reported as discontinued operations; therefore, the pre-tax gain and related prior period earnings remain reported within earnings from continuing operations. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Integrated Financial Solutions ("IFS") The IFS segment is focused primarily on serving the North American regional and community bank and savings institution market for transaction and account processing, payment solutions, channel solutions, lending and wealth management solutions, corporate liquidity, 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 and commercial lenders, as well as government institutions, merchants and other commercial organizations. This market is primarily served through integrated solutions and characterized by multi-year processing contracts that generate highly recurring revenues. The predictable nature of cash flows generated from this segment provides opportunities for further investments in innovation, product integration, information and security, and compliance in a cost effective manner. Global Financial Solutions ("GFS") The GFS segment is focused on serving the largest global financial institutions and/or international financial institutions with a broad array of capital markets and asset management and insurance solutions, as well as banking and payments solutions and 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. 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”, fully outsourced end-to-end solutions, and using consulting and third party service providers. We have long-established relationships with many of these financial institutions that generate significant recurring revenue. GFS clients also include asset managers, buy- and sell-side securities and trading firms, insurers and private equity firms. This segment also includes the Company's consolidated Brazilian Venture (Note 7). Corporate and Other The Corporate and Other segment consists of corporate overhead expense, certain leveraged functions and miscellaneous expenses that are not included in the operating segments as well as certain non-strategic businesses. The business solutions in this segment included the PS&E business through its divestiture on February 1, 2017 (Note 9), commercial services and check authorization. The overhead and leveraged 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 Corporate and Other segment also includes the impact on revenue for 2017 and 2016 of adjusting SunGard's deferred revenue to fair value. Adjusted EBITDA This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, Adjusted EBITDA, as it relates to our segments, is presented in conformity with Accounting Standards Codification Topic 280, "Segment Reporting". Adjusted EBITDA is defined as EBITDA (defined as net income (loss) before net interest expense, income tax provision (benefit) and depreciation and amortization, including amortization of purchased intangibles), plus certain non-operating items. The non-operating items affecting the segment profit measure generally include acquisition accounting adjustments, acquisition, integration and severance costs, and restructuring expenses. For consolidated reporting purposes, these costs and adjustments are recorded in the Corporate and Other segment for the periods discussed below. Adjusted EBITDA for the respective segments excludes the foregoing costs and adjustments. Summarized financial information for the Company’s segments is shown in the following tables. As of and for the three months ended March 31, 2017 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 1,128 $ 1,019 $ 108 $ 2,255 Operating expenses 762 801 432 1,995 Depreciation and amortization from continuing operations 76 65 15 156 Purchase accounting amortization — — 183 183 EBITDA 442 283 (126 ) 599 Acquisition deferred revenue adjustment — — 3 3 Acquisition, integration and severance costs — — 80 80 Adjusted EBITDA $ 442 $ 283 $ (43 ) 682 EBITDA $ 599 Interest expense 93 Depreciation and amortization from continuing operations 156 Purchase accounting amortization 183 Other income (expense) unallocated 56 Provision for income taxes 79 Net earnings attributable to noncontrolling interest 6 Net earnings attributable to FIS common stockholders $ 138 Capital expenditures (1) $ 126 $ 94 $ 9 $ 229 Total assets (2) $ 10,310 $ 9,110 $ 5,665 $ 25,085 Goodwill $ 7,676 $ 6,338 $ 170 $ 14,184 (1) Capital expenditures for the three months ended March 31, 2017 include $74 million of capital leases. (2) Total assets as of March 31, 2017 exclude $1 million related to discontinued operations. As of and for the three months ended March 31, 2016 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 1,112 $ 990 $ 79 $ 2,181 Operating expenses 754 803 440 1,997 Depreciation and amortization from continuing operations 65 58 16 139 Purchase accounting amortization 1 6 147 154 EBITDA 424 251 (198 ) 477 Acquisition deferred revenue adjustment — — 81 81 Acquisition, integration and severance costs — — 79 79 Adjusted EBITDA $ 424 $ 251 $ (38 ) $ 637 EBITDA $ 477 Interest expense 93 Depreciation and amortization from continuing operations 139 Purchase accounting amortization 154 Other income (expense) unallocated (1 ) Provision for income taxes 31 Net earnings attributable to noncontrolling interest 4 Net earnings attributable to FIS common stockholders $ 55 Capital expenditures (1) $ 60 $ 75 $ 11 $ 146 Total assets (2) $ 10,082 $ 9,420 $ 6,924 $ 26,426 Goodwill $ 7,670 $ 6,453 $ 453 $ 14,576 (1) Capital expenditures for the three months ended March 31, 2016 include $1 million of capital leases. (2) Total assets as of March 31, 2016 exclude $4 million related to discontinued operations. Clients in Brazil, the United Kingdom, Germany, Canada and India accounted for the majority of the revenues from clients based outside of North America for all periods presented. Long-term assets, excluding goodwill and other intangible assets, located outside of the United States total $517 million and $478 million as of March 31, 2017 and 2016 , respectively. These assets are predominantly located in Brazil, India, Germany and the United Kingdom. During the three months ended March 31, 2017 the Company recorded certain costs relating to integration and severance activity primarily from the SunGard acquisition of $80 million . During the three months ended March 31, 2016 the Company recorded transaction and other costs, including integration activity, related to SunGard and other recent acquisitions and other severance costs of $79 million . These costs for the 2017 and 2016 periods were recorded in the Corporate and Other segment. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, 2016 . 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 2016 Condensed Consolidated Financial Statements (Unaudited) to conform to the classifications used in 2017 . We report the results of our operations in three reporting segments: Integrated Financial Solutions (“IFS”), Global Financial Solutions (“GFS”) and Corporate and Other (Note 10). |
Condensed Consolidated Financ20
Condensed Consolidated Financial Statement Details (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 (in millions): March 31, 2017 December 31, 2016 Cost Accumulated Net Cost Accumulated Net Property and equipment $ 1,520 $ 910 $ 610 $ 1,488 $ 862 $ 626 Intangible assets $ 6,555 $ 2,057 $ 4,498 $ 6,547 $ 1,883 $ 4,664 Computer software $ 2,472 $ 790 $ 1,682 $ 2,376 $ 768 $ 1,608 |
Schedule of Goodwill | Changes in goodwill during the three months ended March 31, 2017 are summarized as follows (in millions): Total Balance, December 31, 2016 $ 14,178 Foreign currency adjustments 6 Balance, March 31, 2017 $ 14,184 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt as of March 31, 2017 and December 31, 2016 , consisted of the following (in millions): March 31, 2017 December 31, 2016 2018 Term Loans (1) $ — $ 550 Senior Notes due June 2017, interest payable semi-annually at 1.450% 300 300 Senior Notes due April 2018, interest payable semi-annually at 2.000% 250 250 Senior Notes due October 2018, interest payable semi-annually at 2.850% 750 750 Senior Notes due October 2020, interest payable semi-annually at 3.625% 1,750 1,750 Senior Notes due August 2021, interest payable semi-annually at 2.250% 750 750 Senior Notes due March 2022, interest payable semi-annually at 5.000% — 700 Senior Notes due October 2022, interest payable semi-annually at 4.500% 500 500 Senior Notes due April 2023, interest payable semi-annually at 3.500% 1,000 1,000 Senior Notes due June 2024, interest payable semi-annually at 3.875% 700 700 Senior Notes due October 2025, interest payable semi-annually at 5.000% 1,500 1,500 Senior Notes due August 2026, interest payable semi-annually at 3.000% 1,250 1,250 Senior Notes due August 2046, interest payable semi-annually at 4.500% 500 500 Revolving Loan (2) 242 36 Other 13 (58 ) 9,505 10,478 Current portion (351 ) (332 ) Long-term debt, excluding current portion $ 9,154 $ 10,146 __________________________________________ (1) Interest on the 2018 Term Loans was generally payable at LIBOR plus an applicable margin of up to 1.75% based upon the Company's corporate credit ratings. The outstanding balance on the 2018 Term Loans was paid down as of March 31, 2017 . (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. As of March 31, 2017 , the weighted average interest rate on the Revolving Loan, excluding fees, was 2.17% . |
Principal maturities of long-term debt | The following summarizes the aggregate maturities of our debt and capital leases on stated contractual maturities, excluding unamortized non-cash bond premiums and discounts of $34 million as of March 31, 2017 (in millions). Total 2017 $ 338 2018 1,038 2019 36 2020 1,751 2021 992 Thereafter 5,450 Total principal payments 9,605 Debt issuance costs, net of accumulated amortization (66 ) Total long-term debt $ 9,539 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of derivate instruments on earnings and recognized in AOCE | A summary of the effect of derivative instruments on the Company’s Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) and recognized in AOCE for the three months ended March 31, 2017 and 2016 are as follows (in millions): Amount of gain (loss) recognized in AOCE on derivatives Amount of gain (loss) reclassified from AOCE into income Derivatives in cash Three months ended Location of loss Three months ended flow hedging March 31, reclassified from March 31, relationships 2017 2016 AOCE into income 2017 2016 Interest rate derivative contracts $ — $ (9 ) Interest expense $ — $ (2 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Receivables and Payables | A summary of the Company’s related party receivables and payables is as follows (in millions): March 31, December 31, Related Party Balance sheet location 2017 2016 Banco Bradesco Trade receivables $ 48 $ 45 Banco Bradesco Accounts payable and accrued liabilities 11 10 Banco Bradesco Other long-term liabilities 23 22 |
Net Earnings per Share (Tables)
Net Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 months ended March 31, 2017 and 2016 (in millions, except per share amounts): Three months ended 2017 2016 Net earnings from continuing operations attributable to FIS $ 138 $ 55 Net earnings (loss) from discontinued operations attributable to FIS — — Net earnings attributable to FIS common stockholders $ 138 $ 55 Weighted average shares outstanding — basic 328 324 Plus: Common stock equivalent shares 5 3 Weighted average shares outstanding — diluted 333 327 Net earnings per share — basic from continuing operations attributable to FIS common stockholders $ 0.42 $ 0.17 Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders — — Net earnings per share — basic attributable to FIS common stockholders $ 0.42 $ 0.17 Net earnings per share — diluted from continuing operations attributable to FIS common stockholders $ 0.41 $ 0.17 Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders — — Net earnings per share — diluted attributable to FIS common stockholders $ 0.41 $ 0.17 Amounts in table may not sum due to rounding. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 1,128 $ 1,019 $ 108 $ 2,255 Operating expenses 762 801 432 1,995 Depreciation and amortization from continuing operations 76 65 15 156 Purchase accounting amortization — — 183 183 EBITDA 442 283 (126 ) 599 Acquisition deferred revenue adjustment — — 3 3 Acquisition, integration and severance costs — — 80 80 Adjusted EBITDA $ 442 $ 283 $ (43 ) 682 EBITDA $ 599 Interest expense 93 Depreciation and amortization from continuing operations 156 Purchase accounting amortization 183 Other income (expense) unallocated 56 Provision for income taxes 79 Net earnings attributable to noncontrolling interest 6 Net earnings attributable to FIS common stockholders $ 138 Capital expenditures (1) $ 126 $ 94 $ 9 $ 229 Total assets (2) $ 10,310 $ 9,110 $ 5,665 $ 25,085 Goodwill $ 7,676 $ 6,338 $ 170 $ 14,184 (1) Capital expenditures for the three months ended March 31, 2017 include $74 million of capital leases. (2) Total assets as of March 31, 2017 exclude $1 million related to discontinued operations. As of and for the three months ended March 31, 2016 (in millions): IFS GFS Corporate and Other Total Processing and services revenues $ 1,112 $ 990 $ 79 $ 2,181 Operating expenses 754 803 440 1,997 Depreciation and amortization from continuing operations 65 58 16 139 Purchase accounting amortization 1 6 147 154 EBITDA 424 251 (198 ) 477 Acquisition deferred revenue adjustment — — 81 81 Acquisition, integration and severance costs — — 79 79 Adjusted EBITDA $ 424 $ 251 $ (38 ) $ 637 EBITDA $ 477 Interest expense 93 Depreciation and amortization from continuing operations 139 Purchase accounting amortization 154 Other income (expense) unallocated (1 ) Provision for income taxes 31 Net earnings attributable to noncontrolling interest 4 Net earnings attributable to FIS common stockholders $ 55 Capital expenditures (1) $ 60 $ 75 $ 11 $ 146 Total assets (2) $ 10,082 $ 9,420 $ 6,924 $ 26,426 Goodwill $ 7,670 $ 6,453 $ 453 $ 14,576 (1) Capital expenditures for the three months ended March 31, 2016 include $1 million of capital leases. (2) Total assets as of March 31, 2016 exclude $4 million related to discontinued operations. |
Basis of Presentation - (Narrat
Basis of Presentation - (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Acquisitions - (Narrative) (Det
Acquisitions - (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
SunGard | |
Business Acquisition [Line Items] | |
Increase (decrease) in income due to additional depreciation and amortization that would have been recognized in 2015 | $ (6) |
Condensed Consolidated Financ28
Condensed Consolidated Financial Statement Details - (Summary of Net Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Condensed Consolidated Financial Statement Details [Abstract] | ||
Property and equipment, cost | $ 1,520 | $ 1,488 |
Property and equipment, accumulated depreciation and amortization | 910 | 862 |
Property and equipment, net | 610 | 626 |
Intangible assets, cost | 6,555 | 6,547 |
Intangible assets, accumulated depreciation and amortization | 2,057 | 1,883 |
Intangible assets, net | 4,498 | 4,664 |
Computer software, cost | 2,472 | 2,376 |
Computer software, accumulated depreciation and amortization | 790 | 768 |
Computer software, net | $ 1,682 | $ 1,608 |
Condensed Consolidated Financ29
Condensed Consolidated Financial Statement Details - (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Capital lease obligations (less than $1 million during the months ended March 31, 2016) | $ 74 | $ 1 |
Amortization expense of intangible assets | 174 | |
Customer Relationships | ||
Property, Plant and Equipment [Line Items] | ||
Finite-lived intangible assets, net | 4,364 | |
Trademarks | ||
Property, Plant and Equipment [Line Items] | ||
Finite-lived intangible assets, net | 54 | |
Trademarks | ||
Property, Plant and Equipment [Line Items] | ||
Indefinite-lived intangible assets | $ 80 |
Condensed Consolidated Financ30
Condensed Consolidated Financial Statement Details - (Goodwill) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 14,178 |
Foreign currency adjustments | 6 |
Ending balance | $ 14,184 |
Long-Term Debt - (Schedule of L
Long-Term Debt - (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 15, 2017 | |
Long-Term Debt | |||
Other | $ 13 | $ (58) | |
Total long-term debt | 9,505 | 10,478 | |
Current portion | (351) | (332) | |
Long-term debt, excluding current portion | 9,154 | 10,146 | |
2018 Term Loans | |||
Long-Term Debt | |||
Loans | 0 | 550 | |
Senior Notes due June 2017, interest payable semi-annually at 1.450% | |||
Long-Term Debt | |||
Senior notes | $ 300 | $ 300 | |
Debt instrument, stated percentage | 1.45% | 1.45% | |
Senior Notes due April 2018, interest payable semi-annually at 2.000% | |||
Long-Term Debt | |||
Senior notes | $ 250 | $ 250 | |
Debt instrument, stated percentage | 2.00% | 2.00% | |
Senior Notes due October 2018, interest payable semi-annually at 2.850% | |||
Long-Term Debt | |||
Senior notes | $ 750 | $ 750 | |
Debt instrument, stated percentage | 2.85% | 2.85% | |
Senior Notes due October 2020, interest payable semi-annually at 3.625% | |||
Long-Term Debt | |||
Senior notes | $ 1,750 | $ 1,750 | |
Debt instrument, stated percentage | 3.625% | 3.625% | |
Senior Notes due August 2021, interest payable semi-annually at 2.250% | |||
Long-Term Debt | |||
Senior notes | $ 750 | $ 750 | |
Debt instrument, stated percentage | 2.25% | 2.25% | |
Senior Notes due March 2022, interest payable semi-annually at 5.000% | |||
Long-Term Debt | |||
Senior notes | $ 0 | $ 700 | |
Debt instrument, stated percentage | 5.00% | 5.00% | 5.00% |
Senior Notes due October 2022, interest payable semi-annually at 4.500% | |||
Long-Term Debt | |||
Senior notes | $ 500 | $ 500 | |
Debt instrument, stated percentage | 4.50% | 4.50% | |
Senior Notes due April 2023, interest payable semi-annually at 3.500% | |||
Long-Term Debt | |||
Senior notes | $ 1,000 | $ 1,000 | |
Debt instrument, stated percentage | 3.50% | 3.50% | |
Senior Notes due June 2024, interest payable semi-annually at 3.875% | |||
Long-Term Debt | |||
Senior notes | $ 700 | $ 700 | |
Debt instrument, stated percentage | 3.875% | 3.875% | |
Senior Notes due October 2025, interest payable semi-annually at 5.000% | |||
Long-Term Debt | |||
Senior notes | $ 1,500 | $ 1,500 | |
Debt instrument, stated percentage | 5.00% | 5.00% | |
Senior Notes due August 2026, interest payable semi-annually at 3.000% | |||
Long-Term Debt | |||
Senior notes | $ 1,250 | $ 1,250 | |
Debt instrument, stated percentage | 3.00% | 3.00% | |
Senior Notes due August 2046, interest payable semi-annually at 4.500% | |||
Long-Term Debt | |||
Senior notes | $ 500 | $ 500 | |
Debt instrument, stated percentage | 4.50% | 4.50% | |
Revolving Loan | |||
Long-Term Debt | |||
Loans | $ 242 | $ 36 | |
Unused commitment fee | 0.25% | 0.25% | |
Weighted average interest rate | 2.17% | ||
One month LIBOR | Maximum | 2018 Term Loans | |||
Long-Term Debt | |||
Applicable margin | 1.75% | 1.75% | |
One month LIBOR | Maximum | Revolving Loan | |||
Long-Term Debt | |||
Applicable margin | 1.75% | 1.75% |
Long-Term Debt - (Principal Mat
Long-Term Debt - (Principal Maturities of Long-Term Debt) (Details) - FIS Credit Agreements $ in Millions | Mar. 31, 2017USD ($) |
Principal maturities of long-term debt | |
2,017 | $ 338 |
2,018 | 1,038 |
2,019 | 36 |
2,020 | 1,751 |
2,021 | 992 |
Thereafter | 5,450 |
Total principal payments | 9,605 |
Debt issuance costs, net of accumulated amortization | (66) |
Total long-term debt | $ 9,539 |
Long-Term Debt - (Narrative) (D
Long-Term Debt - (Narrative) (Details) - USD ($) | Mar. 15, 2017 | Feb. 01, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Unamortized discount (premium), net | $ 34,000,000 | |||
Call premium and write-off of previously capitalized debt issuance cost | $ 25,000,000 | |||
Fair value, aggregate differences | 175,000,000 | |||
Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding loan balance | 242,000,000 | $ 36,000,000 | ||
Revolving Loan | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility outstanding amount | 7,000,000 | |||
Revolving Loan | FIS Credit Agreements | ||||
Debt Instrument [Line Items] | ||||
Total committed capital, credit agreement | 3,000,000,000 | |||
Outstanding loan balance | 242,000,000 | |||
Borrowing capacity remaining | $ 2,751,000,000 | |||
Senior Notes due June 2017, interest payable semi-annually at 1.450% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 1.45% | 1.45% | ||
Percentage of redemption price | 100.00% | |||
Senior Notes due April 2018, interest payable semi-annually at 2.000% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 2.00% | 2.00% | ||
Senior Notes due October 2018, interest payable semi-annually at 2.850% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 2.85% | 2.85% | ||
Senior Notes due October 2020, interest payable semi-annually at 3.625% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 3.625% | 3.625% | ||
Senior Notes due August 2021, interest payable semi-annually at 2.250% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 2.25% | 2.25% | ||
Senior Notes due March 2022, interest payable semi-annually at 5.000% | ||||
Debt Instrument [Line Items] | ||||
Percentage of principal amount redeemed | 100.00% | |||
Amount redeemed | $ 700,000,000 | |||
Debt instrument, stated percentage | 5.00% | 5.00% | 5.00% | |
Senior Notes due October 2022, interest payable semi-annually at 4.500% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 4.50% | 4.50% | ||
Senior Notes due April 2023, interest payable semi-annually at 3.500% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 3.50% | 3.50% | ||
Senior Notes due June 2024, interest payable semi-annually at 3.875% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 3.875% | 3.875% | ||
Senior Notes due October 2025, interest payable semi-annually at 5.000% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 5.00% | 5.00% | ||
Senior Notes due August 2026, interest payable semi-annually at 3.000% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 3.00% | 3.00% | ||
Senior Notes due August 2046, interest payable semi-annually at 4.500% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated percentage | 4.50% | 4.50% | ||
Minimum | Senior Notes due April 2018, interest payable semi-annually at 2.000% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Minimum | Senior Notes due October 2018, interest payable semi-annually at 2.850% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Minimum | Senior Notes due October 2020, interest payable semi-annually at 3.625% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 1 month | |||
Minimum | Senior Notes due August 2021, interest payable semi-annually at 2.250% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 1 month | |||
Minimum | Senior Notes due March 2022, interest payable semi-annually at 5.000% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 2 months | |||
Minimum | Senior Notes due October 2022, interest payable semi-annually at 4.500% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 2 months | |||
Minimum | Senior Notes due April 2023, interest payable semi-annually at 3.500% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 3 months | |||
Minimum | Senior Notes due June 2024, interest payable semi-annually at 3.875% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 3 months | |||
Minimum | Senior Notes due October 2025, interest payable semi-annually at 5.000% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 3 months | |||
Minimum | Senior Notes due August 2026, interest payable semi-annually at 3.000% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 3 months | |||
Minimum | Senior Notes due August 2046, interest payable semi-annually at 4.500% | ||||
Debt Instrument [Line Items] | ||||
Percentage of redemption price | 100.00% | |||
Debt redemption, trigger period prior to maturity | 6 months |
Financial Instruments - (Schedu
Financial Instruments - (Schedule of Effect of Derivative Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
AOCE expected to reclassified during next twelve months (less than) | $ 1 | |
Interest rate derivative contracts | Cash Flow Hedging | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amount of gain (loss) recognized in AOCE on derivatives | 0 | $ (9) |
Interest expense | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amount of gain (loss) reclassified from AOCE into income | 0 | $ (2) |
Currency Forward Contract | India, Rupees INR | Cash Flow Hedging | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Notional amount | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - (Narrative) (Details) $ in Millions | Oct. 13, 2016patent | Apr. 29, 2015patent | Apr. 29, 2014patent | May 28, 2013patent | Mar. 31, 2017USD ($)claim |
Potential Tax Liability | Pending Litigation | Secretariat of the Federal Revenue Bureau of Brazil | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, number of claims pending | claim | 9 | ||||
Loss contingency, value of damages sought | $ 14 | ||||
Loss contingency, number of potential new claims filed | claim | 26 | ||||
Loss contingency, potential additional claims amount ought | $ 56 | ||||
Loss contingency, number of total pending and potential pending claims | claim | 35 | ||||
Potential Tax Liability | Pending Litigation | Secretariat of the Federal Revenue Bureau of Brazil | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 70 | ||||
DataTreasury Corporation v. Fidelity National Information Services, Inc. et. al | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, number of patents allegedly infringed upon | patent | 2 | 2 | 2 | ||
Loss contingency, number of patents found unpatentable | patent | 2 | ||||
SunGard | |||||
Loss Contingencies [Line Items] | |||||
Business combination, contingent liability | $ 101 |
Related Party Transactions - (N
Related Party Transactions - (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Ownership percentage of the Brazilian venture | 51.00% | |
Banco Bradesco | ||
Related Party Transaction [Line Items] | ||
Revenues from related parties | $ 80 | $ 55 |
Banco Bradesco | Favorable (unfavorable) currency impact | ||
Related Party Transaction [Line Items] | ||
Revenues from related parties | 14 | |
Corporate joint venture | Contract-based intangible assets | ||
Related Party Transaction [Line Items] | ||
Finite-lived intangible assets, net | 86 | |
Noncontrolling interest in joint venture | $ 107 |
Related Party Transactions - (R
Related Party Transactions - (Receivables and Payables) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Accounts payable and accrued liabilities | $ 1,269 | $ 1,146 |
Other long-term liabilities | 394 | 386 |
Affiliated entity | Banco Bradesco | ||
Related Party Transaction [Line Items] | ||
Trade receivables | 48 | 45 |
Accounts payable and accrued liabilities | 11 | 10 |
Other long-term liabilities | $ 23 | $ 22 |
Net Earnings per Share - (Summa
Net Earnings per Share - (Summary of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net earnings from continuing operations attributable to FIS | $ 138 | $ 55 |
Net earnings (loss) from discontinued operations attributable to FIS | 0 | 0 |
Net earnings attributable to FIS common stockholders | $ 138 | $ 55 |
Weighted average shares outstanding — basic (in shares) | 328 | 324 |
Plus: Common stock equivalent shares ( in shares) | 5 | 3 |
Weighted average shares outstanding — diluted (in shares) | 333 | 327 |
Net earnings per share — basic from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 0.42 | $ 0.17 |
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders (in dollars per share) | 0 | 0 |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | 0.42 | 0.17 |
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders (in dollars per share) | 0.41 | 0.17 |
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders (in dollars per share) | 0 | 0 |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | $ 0.41 | $ 0.17 |
Net Earnings per Share - (Narra
Net Earnings per Share - (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (less than 1 million for 3 months ended March 31, 2017) (in shares) | 1 | 11 |
Divestitures - (Narrative) (Det
Divestitures - (Narrative) (Details) - USD ($) $ in Millions | Feb. 01, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of business | $ 827 | $ 0 | |
Disposal group, disposed of by sale, not discontinued operations | SunGard Public Sector and Education | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration received | $ 850 | ||
Gain on assets sold | 85 | ||
Proceeds from sale of business | $ 500 |
Segment Information - (Summariz
Segment Information - (Summarized Financial Information and Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Information | |||
Processing and services revenues | $ 2,255 | $ 2,181 | |
Operating expenses | 1,995 | 1,997 | |
Depreciation and amortization from continuing operations | 156 | 139 | |
Purchase accounting amortization | 183 | 154 | |
EBITDA | 599 | 477 | |
Acquisition deferred revenue adjustment | 3 | 81 | |
Acquisition, integration and severance costs | 80 | 79 | |
Adjusted EBITDA | 682 | 637 | |
Interest expense | 93 | 93 | |
Other income (expense) unallocated | 56 | (1) | |
Provision for income taxes | 79 | 31 | |
Net earnings attributable to noncontrolling interest | 6 | 4 | |
Net earnings attributable to FIS common stockholders | 138 | 55 | |
Capital expenditures | 229 | 146 | |
Total assets | 25,085 | 26,426 | |
Goodwill | 14,184 | 14,576 | $ 14,178 |
Segment Information (Textuals) [Abstract] | |||
Capital lease obligations | 74 | 1 | |
Amount related to discontinued operations that is excluded from total asset | 1 | 4 | |
Integrated Financial Solutions | |||
Segment Information | |||
Processing and services revenues | 1,128 | 1,112 | |
Operating expenses | 762 | 754 | |
Depreciation and amortization from continuing operations | 76 | 65 | |
Purchase accounting amortization | 0 | 1 | |
EBITDA | 442 | 424 | |
Acquisition deferred revenue adjustment | 0 | 0 | |
Acquisition, integration and severance costs | 0 | 0 | |
Adjusted EBITDA | 442 | 424 | |
Capital expenditures | 126 | 60 | |
Total assets | 10,310 | 10,082 | |
Goodwill | 7,676 | 7,670 | |
Global Financial Solutions | |||
Segment Information | |||
Processing and services revenues | 1,019 | 990 | |
Operating expenses | 801 | 803 | |
Depreciation and amortization from continuing operations | 65 | 58 | |
Purchase accounting amortization | 0 | 6 | |
EBITDA | 283 | 251 | |
Acquisition deferred revenue adjustment | 0 | 0 | |
Acquisition, integration and severance costs | 0 | 0 | |
Adjusted EBITDA | 283 | 251 | |
Capital expenditures | 94 | 75 | |
Total assets | 9,110 | 9,420 | |
Goodwill | 6,338 | 6,453 | |
Corporate and Other | |||
Segment Information | |||
Processing and services revenues | 108 | 79 | |
Operating expenses | 432 | 440 | |
Depreciation and amortization from continuing operations | 15 | 16 | |
Purchase accounting amortization | 183 | 147 | |
EBITDA | (126) | (198) | |
Acquisition deferred revenue adjustment | 3 | 81 | |
Acquisition, integration and severance costs | 80 | 79 | |
Adjusted EBITDA | (43) | (38) | |
Capital expenditures | 9 | 11 | |
Total assets | 5,665 | 6,924 | |
Goodwill | $ 170 | $ 453 |
Segment Information - (Narrativ
Segment Information - (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)country | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Long-term assets, excluding goodwill and other intangible assets | $ 517 | $ 478 |
Acquisition, integration and severance costs | $ 80 | 79 |
Global Financial Solutions | ||
Segment Reporting Information [Line Items] | ||
Number of countries we operate in (more than 130) | country | 130 | |
Acquisition, integration and severance costs | $ 0 | 0 |
SunGard | ||
Segment Reporting Information [Line Items] | ||
Acquisition, integration and severance costs | $ 80 | |
Recent acquisitions | ||
Segment Reporting Information [Line Items] | ||
Acquisition, integration and severance costs | $ 79 |