Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-16427 | |
Entity Registrant Name | Fidelity National Information Services, Inc. | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 37-1490331 | |
Entity Address, Street Name | 601 Riverside Avenue | |
Entity Address, City | Jacksonville | |
Entity Address, State | FL | |
Entity Address, Postal Zip Code | 32204 | |
City Area Code | 904 | |
Local Phone Number | 438-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 614,600,305 | |
Entity Central Index Key | 0001136893 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
New York Stock Exchange | ||
Document Information | ||
Title of each class | Common Stock, par value $0.01 per share | |
Trading Symbol | FIS | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | ||
Document Information | ||
Title of each class | 0.400% Senior Notes due 2021 | |
Trading Symbol | FIS21A | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Euro Floating Rate Notes due May 2021, interest payable quarterly (Floating Rate Notes) (1) | ||
Document Information | ||
Title of each class | Floating Rate Senior Notes due 2021 | |
Trading Symbol | FIS21B | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Euro Notes due May 2021, interest payable annually at 0.125% (May 2021 Euro Notes) | ||
Document Information | ||
Title of each class | 0.125% Senior Notes due 2021 | |
Trading Symbol | FIS21C | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | ||
Document Information | ||
Title of each class | 1.700% Senior Notes due 2022 | |
Trading Symbol | FIS22B | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Euro Notes due May 2023, interest payable annually at 0.750% (2023 Euro Notes) | ||
Document Information | ||
Title of each class | 0.750% Senior Notes due 2023 | |
Trading Symbol | FIS23A | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | ||
Document Information | ||
Title of each class | 1.100% Senior Notes due 2024 | |
Trading Symbol | FIS24A | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior GBP Notes due May 2025, interest payable annually at 2.602% (2025 GBP Notes) | ||
Document Information | ||
Title of each class | 2.602% Senior Notes due 2025 | |
Trading Symbol | FIS25A | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Euro Notes due May 2027, interest payable annually at 1.500% (2027 Euro Notes) | ||
Document Information | ||
Title of each class | 1.500% Senior Notes due 2027 | |
Trading Symbol | FIS27 | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Euro Notes due May 2030, interest payable annually at 2.000% (2030 Euro Notes) | ||
Document Information | ||
Title of each class | 2.000% Senior Notes due 2030 | |
Trading Symbol | FIS30 | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior GBP Notes due May 2031, interest payable annually at 3.360% (2031 GBP Notes) | ||
Document Information | ||
Title of each class | 3.360% Senior Notes due 2031 | |
Trading Symbol | FIS31 | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Euro Notes due May 2039, interest payable annually at 2.950% (2039 Euro Notes) | ||
Document Information | ||
Title of each class | 2.950% Senior Notes due 2039 | |
Trading Symbol | FIS39 | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,305 | $ 703 |
Settlement deposits and merchant float | 3,476 | 700 |
Trade receivables, net of allowance for doubtful accounts of $37 and $17 as of September 30, 2019 and December 31, 2018, respectively | 3,065 | 1,472 |
Contract assets | 153 | 123 |
Settlement receivables | 755 | 281 |
Other receivables | 269 | 166 |
Prepaid expenses and other current assets | 302 | 288 |
Total current assets | 9,325 | 3,733 |
Property and equipment, net | 811 | 587 |
Goodwill | 51,890 | 13,545 |
Intangible assets, net | 16,083 | 3,132 |
Computer software, net | 3,025 | 1,795 |
Other noncurrent assets | 1,996 | 503 |
Deferred contract costs, net | 588 | 475 |
Total assets | 83,718 | 23,770 |
Current liabilities: | ||
Accounts payable, accrued and other liabilities | 2,143 | 1,099 |
Settlement payables | 4,791 | 972 |
Deferred revenue | 719 | 739 |
Short-term borrowings | 3,169 | 267 |
Current portion of long-term debt | 79 | 48 |
Total current liabilities | 10,901 | 3,125 |
Long-term debt, excluding current portion | 16,945 | 8,670 |
Deferred income taxes | 4,198 | 1,360 |
Other long-term liabilities | 2,411 | 326 |
Deferred revenue | 51 | 67 |
Total liabilities | 34,506 | 13,548 |
FIS stockholders’ equity: | ||
Preferred stock, $0.01 par value, 200 shares authorized, none issued and outstanding as of September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.01 par value, 750 and 600 shares authorized, 615 and 433 shares issued as of September 30, 2019 and December 31, 2018 | 6 | 4 |
Additional paid in capital | 45,063 | 10,800 |
Retained earnings | 4,538 | 4,528 |
Accumulated other comprehensive earnings (loss) | (391) | (430) |
Treasury stock, $0.01 par value, less than 1 and 106 common shares as of September 30, 2019 and December 31, 2018, respectively, at cost | (21) | (4,687) |
Total FIS stockholders’ equity | 49,195 | 10,215 |
Noncontrolling interest | 17 | 7 |
Total equity | 49,212 | 10,222 |
Total liabilities and equity | $ 83,718 | $ 23,770 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Trade receivables, allowance for doubtful accounts | $ 37 | $ 17 |
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) | 750,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 615,000,000 | 433,000,000 |
Treasury stock, shares (in shares) | 1,000,000 | 106,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,822 | $ 2,084 | $ 6,991 | $ 6,256 |
Cost of revenue | 1,838 | 1,364 | 4,623 | 4,192 |
Gross profit | 984 | 720 | 2,368 | 2,064 |
Selling, general and administrative expenses | 757 | 283 | 1,435 | 980 |
Asset impairments | 87 | 95 | 87 | 95 |
Operating income | 140 | 342 | 846 | 989 |
Other income (expense): | ||||
Interest expense, net | (95) | (80) | (242) | (225) |
Other income (expense), net | 164 | (58) | (8) | (60) |
Total other income (expense), net | 69 | (138) | (250) | (285) |
Earnings before income taxes and equity method investment earnings (loss) | 209 | 204 | 596 | 704 |
Provision (benefit) for income taxes | 48 | 37 | 119 | 122 |
Equity method investment earnings (loss) | (5) | (4) | (18) | (11) |
Net earnings | 156 | 163 | 459 | 571 |
Net (earnings) loss attributable to noncontrolling interest | (2) | (9) | (3) | (23) |
Net earnings attributable to FIS common stockholders | $ 154 | $ 154 | $ 456 | $ 548 |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | $ 0.30 | $ 0.47 | $ 1.18 | $ 1.67 |
Weighted average shares outstanding — basic (in shares) | 516 | 328 | 388 | 329 |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | $ 0.29 | $ 0.47 | $ 1.15 | $ 1.65 |
Weighted average shares outstanding — diluted (in shares) | 524 | 331 | 396 | 333 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 156 | $ 163 | $ 459 | $ 571 |
Other comprehensive earnings, before tax: | ||||
Unrealized gain (loss) on derivatives | 0 | 0 | (16) | 0 |
Reclassification adjustment for (gains) losses included in net earnings | 1 | 0 | (3) | 0 |
Unrealized gain (loss) on derivatives, net | 1 | 0 | (19) | 0 |
Foreign currency translation adjustments | 81 | (35) | 98 | (123) |
Minimum pension liability adjustment | 0 | 0 | (4) | 0 |
Other comprehensive earnings (loss), before tax: | 82 | (35) | 75 | (123) |
Provision for income tax expense (benefit) related to items of other comprehensive earnings | 35 | 0 | 36 | 0 |
Other comprehensive earnings (loss), net of tax | 47 | (35) | 39 | (123) |
Comprehensive earnings: | 203 | 128 | 498 | 448 |
Net (earnings) loss attributable to noncontrolling interest | (2) | (9) | (3) | (23) |
Other comprehensive (earnings) loss attributable to noncontrolling interest | 0 | 5 | 0 | 22 |
Comprehensive earnings attributable to FIS common stockholders | $ 201 | $ 124 | $ 495 | $ 447 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Treasury stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive earnings (loss) | Noncontrolling interest |
Beginning Balance at Dec. 31, 2017 | $ 10,820 | $ 4 | $ (3,604) | $ 10,534 | $ 4,109 | $ (332) | $ 109 |
Beginning Balance (in shares) at Dec. 31, 2017 | 432 | 99 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of restricted stock (shares) | 1 | ||||||
Exercise of stock options | 272 | $ 146 | 126 | ||||
Exercise of stock options (in shares) | 4 | ||||||
Treasury shares held for taxes due upon exercise of stock options | (31) | $ (20) | (11) | ||||
Purchases of treasury stock | (1,066) | $ (1,066) | |||||
Purchases of treasury stock (shares) | (10) | ||||||
Stock-based compensation | 66 | 66 | |||||
Cash dividends paid and other distributions | (343) | (318) | (25) | ||||
Net earnings | 571 | 548 | 23 | ||||
Other comprehensive earnings, net of tax | (123) | (101) | (22) | ||||
Ending Balance at Sep. 30, 2018 | 10,166 | $ 4 | $ (4,544) | 10,715 | 4,339 | (433) | 85 |
Ending Balance (in shares) at Sep. 30, 2018 | 433 | 105 | |||||
Beginning Balance at Jun. 30, 2018 | 10,544 | $ 4 | $ (4,112) | 10,659 | 4,291 | (403) | 105 |
Beginning Balance (in shares) at Jun. 30, 2018 | 433 | 102 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of stock options | 68 | $ 33 | 35 | ||||
Exercise of stock options (in shares) | 1 | ||||||
Purchases of treasury stock | (465) | $ (465) | |||||
Purchases of treasury stock (shares) | (4) | ||||||
Stock-based compensation | 21 | 21 | |||||
Cash dividends paid and other distributions | (130) | (106) | (24) | ||||
Net earnings | 163 | 154 | 9 | ||||
Other comprehensive earnings, net of tax | (35) | (30) | (5) | ||||
Ending Balance at Sep. 30, 2018 | 10,166 | $ 4 | $ (4,544) | 10,715 | 4,339 | (433) | 85 |
Ending Balance (in shares) at Sep. 30, 2018 | 433 | 105 | |||||
Beginning Balance at Dec. 31, 2018 | 10,222 | $ 4 | $ (4,687) | 10,800 | 4,528 | (430) | 7 |
Beginning Balance (in shares) at Dec. 31, 2018 | 433 | 106 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Worldpay acquisition | 39,095 | $ 2 | $ 5,042 | 34,040 | 11 | ||
Worldpay acquisition (shares) | 180 | 109 | |||||
Issuance of restricted stock | 2 | $ 2 | |||||
Issuance of restricted stock (shares) | 1 | ||||||
Exercise of stock options | 132 | $ 46 | 86 | ||||
Exercise of stock options (in shares) | 1 | 1 | |||||
Treasury shares held for taxes due upon exercise of stock options | (25) | $ (24) | (1) | ||||
Purchases of treasury stock | (399) | $ (400) | 1 | ||||
Purchases of treasury stock (shares) | (4) | ||||||
Stock-based compensation | 138 | 138 | |||||
Cash dividends paid and other distributions | (446) | (441) | (5) | ||||
Other | (5) | (5) | |||||
Net earnings | 459 | 456 | 3 | ||||
Other comprehensive earnings, net of tax | 39 | 39 | |||||
Ending Balance at Sep. 30, 2019 | 49,212 | $ 6 | $ (21) | 45,063 | 4,538 | (391) | 17 |
Ending Balance (in shares) at Sep. 30, 2019 | 615 | 0 | |||||
Beginning Balance at Jun. 30, 2019 | 9,992 | $ 4 | $ (5,067) | 10,887 | 4,599 | (438) | 7 |
Beginning Balance (in shares) at Jun. 30, 2019 | 433 | 109 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Worldpay acquisition | 39,095 | $ 2 | $ 5,042 | 34,040 | 11 | ||
Worldpay acquisition (shares) | 180 | 109 | |||||
Issuance of restricted stock | 2 | $ 2 | |||||
Issuance of restricted stock (shares) | 1 | ||||||
Exercise of stock options | 45 | 3 | 42 | ||||
Exercise of stock options (in shares) | 1 | ||||||
Treasury shares held for taxes due upon exercise of stock options | (2) | (1) | (1) | ||||
Stock-based compensation | 95 | 95 | |||||
Cash dividends paid and other distributions | (218) | (215) | (3) | ||||
Net earnings | 156 | 154 | 2 | ||||
Other comprehensive earnings, net of tax | 47 | 47 | |||||
Ending Balance at Sep. 30, 2019 | $ 49,212 | $ 6 | $ (21) | $ 45,063 | $ 4,538 | $ (391) | $ 17 |
Ending Balance (in shares) at Sep. 30, 2019 | 615 | 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid per share (in dollars per share) | $ 0.35 | $ 0.32 | $ 0.35 | $ 0.32 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 459 | $ 571 |
Adjustment to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 1,488 | 1,060 |
Amortization of debt issue costs | 17 | 13 |
Acquisition-related financing foreign exchange | (112) | 0 |
Asset impairments | 87 | 95 |
Loss (gain) on sale of businesses and investments | 18 | 48 |
Loss on extinguishment of debt | 0 | 1 |
Stock-based compensation | 138 | 66 |
Deferred income taxes | (75) | (65) |
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | ||
Trade and other receivables | 12 | 151 |
Contract assets | (14) | (10) |
Settlement activity | 165 | (6) |
Prepaid expenses and other assets | (2) | 31 |
Deferred contract costs | (258) | (180) |
Deferred revenue | (51) | (122) |
Accounts payable, accrued liabilities, and other liabilities | (131) | (365) |
Net cash provided by operating activities | 1,741 | 1,288 |
Cash flows from investing activities: | ||
Additions to property and equipment | (135) | (115) |
Additions to computer software | (409) | (349) |
Acquisitions, net of cash acquired | (6,629) | 0 |
Net proceeds from sale of businesses and investments | 49 | 58 |
Other investing activities, net | (43) | (26) |
Net cash provided by (used in) investing activities | (7,167) | (432) |
Cash flows from financing activities: | ||
Borrowings | 25,425 | 8,068 |
Repayment of borrowings and other financing obligations | (15,997) | (7,725) |
Debt issuance costs | (71) | (30) |
Proceeds from exercise of stock options | 136 | 273 |
Treasury stock activity | (422) | (1,038) |
Dividends paid | (441) | (316) |
Distribution to Brazilian Venture partner | 0 | (23) |
Other financing activities, net | (39) | (3) |
Net cash provided by (used in) financing activities | 8,591 | (794) |
Effect of foreign currency exchange rate changes on cash | (38) | (56) |
Less net change in cash balances classified as assets held-for-sale | 0 | (39) |
Net increase (decrease) in cash and cash equivalents | 3,127 | (33) |
Cash and cash equivalents, beginning of period | 703 | 665 |
Cash and cash equivalents, end of period | 3,830 | 632 |
Supplemental cash flow information: | ||
Cash paid for interest | 208 | 199 |
Cash paid for income taxes | $ 273 | $ 442 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 . 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 revenue and expenses during the reported periods. Actual results could differ from those estimates. Certain reclassifications have been made in the 2018 Condensed Consolidated Financial Statements (Unaudited) to conform to the classifications used in 2019 . Amounts in tables in the financial statements and accompanying footnotes may not sum due to rounding. On March 17, 2019, FIS, Wrangler Merger Sub, Inc., a wholly owned subsidiary of FIS (“Merger Sub”), and Worldpay, Inc. (“Worldpay”) entered into an Agreement and Plan of Merger (the “merger agreement”) pursuant to which Merger Sub would merge with and into Worldpay (the “merger”), with Worldpay surviving the merger and becoming a wholly owned subsidiary of FIS (collectively, the “Worldpay acquisition”). On July 31, 2019, FIS completed the acquisition of Worldpay, and Worldpay's results of operations and financial position are included in the Condensed Consolidated Financial Statements (Unaudited) from and after the date of acquisition. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Change in Accounting Policy The Company adopted Topic 842, Leases , with an initial application date of January 1, 2019. As a result, the Company has changed its accounting policy for leases. The accounting policy pursuant to Topic 842 for operating leases is disclosed below. The primary impact of adopting Topic 842 is the establishment of a right-of-use (“ROU”) model that requires a lessee to recognize ROU assets and lease liabilities on the consolidated balance sheet for operating leases. The Company applied Topic 842 using the effective date method; consequently, financial information was not updated and the disclosures required under the new standard were not provided for dates and periods before January 1, 2019. For transition purposes, the Company elected the "package of practical expedients," which permits the Company not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the practical expedient not to separate lease and non-lease components. The Company did not elect the use-of-hindsight practical expedient nor the short-term lease recognition exemption allowed under the new standard. The adoption of ASC 842 resulted in the recognition of operating lease ROU assets and lease liabilities on the Company’s Condensed Consolidated Balance Sheet (Unaudited) of $442 million and $446 million , respectively, on January 1, 2019. The standard did not impact the Company’s results of operations or cash flows. (b) Operating Leases The Company leases certain of its property, primarily real estate, under operating leases. Operating lease ROU assets are included in other noncurrent assets, and operating lease liabilities are included in accounts payable, accrued and other liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets (Unaudited). ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets also include any prepaid lease payments and exclude lease incentives received. The Company uses an incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Lease terms may include options to extend, generally ranging from one to five years , or to terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. Lease agreements may include lease and related non-lease components, which are accounted for as a single lease component. Additionally, for certain equipment leases, the Company applies a portfolio approach to effectively account for the operating lease ROU assets and liabilities. |
Worldpay Acquisition
Worldpay Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Worldpay Acquisition | Worldpay Acquisition On July 31, 2019, FIS completed the acquisition of Worldpay by acquiring 100 percent of Worldpay's equity pursuant to the merger agreement. Through its acquisition of Worldpay, FIS is now a global leader in technology, solutions and services for merchants, as well as banks and capital markets. The Worldpay acquisition brings an integrated technology platform with a comprehensive suite of products and services serving merchants and financial institutions. Through the Worldpay acquisition, FIS has enhanced global payment capabilities, robust risk and fraud solutions and advanced data analytics. At the closing, Worldpay shareholders received approximately 289 million shares of FIS common stock and $3.4 billion in cash, using an exchange ratio of 0.9287 FIS shares plus $11.00 in cash for each share of Worldpay common stock. The acquisition-date fair value of the 289 million shares of the Company’s common stock was determined based on the share price of $133.69 per share, the closing price of the Company’s common stock on the New York Stock Exchange on July 30, 2019, since the acquisition closed before the market opened on July 31, 2019. FIS also converted approximately 8 million outstanding Worldpay equity awards into corresponding equity awards with respect to shares of FIS common stock pursuant to an exchange ratio in the merger agreement designed to maintain the intrinsic value of the applicable award immediately prior to conversion. The fair value of the converted equity awards was approximately $789 million based on a valuation as of the date of closing. The amounts attributable to services already rendered were included as an adjustment to the purchase price and the amounts attributable to future services will be expensed over the remaining vesting period. In connection with the Worldpay acquisition, FIS also repaid approximately $7.5 billion of Worldpay debt, including $5.7 billion for Worldpay debt that was not contractually assumed in the acquisition and was included as an adjustment to the purchase price. FIS funded the cash portion of the merger consideration, the pay-off of the indebtedness of Worldpay and the payment of transaction-related expenses through a combination of available cash-on-hand and proceeds from debt issuances, including proceeds from concurrent public offerings on May 21, 2019 of Euro-, Pound Sterling-, and U.S. Dollar-denominated senior unsecured notes and borrowings under the Euro-commercial paper program established on May 29, 2019. See Note 7 for further discussion of these debt issuances. The total purchase price was as follows (in millions): Cash consideration $ 3,423 Value of FIS share consideration 38,635 Pay-off of Worldpay long-term debt not contractually assumed 5,738 Value of outstanding converted equity awards attributed to services already rendered 449 Total purchase price $ 48,245 The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations (“Topic 805”). We recorded a preliminary allocation of the purchase price to Worldpay tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of July 31, 2019. The provisional amounts for intangible assets are based on third-party valuations performed. Goodwill was recorded as the residual amount by which the purchase price exceeded the provisional fair value of the net assets acquired. Goodwill consists primarily of expected synergies of combining operations, the acquired workforce, and growth opportunities, none of which qualify as separately identifiable intangible assets. Our evaluations of the facts and circumstances available as of July 31, 2019, to assign fair values to assets acquired and liabilities assumed are ongoing, including our assessments of the economic characteristics of the acquired software and other intangibles. These evaluations may result in changes to the provisional amounts recorded. Pursuant to Topic 805, the financial statements will not be retrospectively adjusted for any provisional amount changes that occur in subsequent periods. Rather, we will recognize any provisional amount adjustments during the reporting period in which the adjustments are determined. We will also be required to record, in the same period’s financial statements, 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 had been completed at the acquisition date. We expect to finalize the purchase price allocation as soon as practicable, but no later than one year from the acquisition date. The preliminary purchase price allocation was as follows (in millions): Cash acquired $ 305 Settlement deposits and merchant float (1) 2,447 Trade receivables 1,619 Goodwill 38,428 Intangible assets 13,682 Computer software 1,293 Other noncurrent assets (2) 1,386 Accounts payable, accrued and other liabilities (1,013 ) Settlement payables (3,167 ) Deferred income taxes (2,822 ) Long-term debt, subsequently repaid (1,805 ) Other liabilities and noncontrolling interest (3) (2,108 ) Total purchase price $ 48,245 (1) Includes $1,693 million of merchant float. (2) Includes $534 million of other restricted cash. (3) Includes $890 million of long-term tax receivable agreement liability (see Note 10) and $710 million contingent value rights liability (see Note 5). The gross contractual amount of trade receivables acquired was approximately $1,666 million . The difference between that total and the provisional amount reflected above represents our best estimate at the acquisition date of the contractual cash flows not expected to be collected. This difference was derived using Worldpay's historical bad debts, sales allowances and collection trends. Intangible assets primarily consist of computer software, customer relationship assets and trademarks with weighted average estimated useful lives of 7 years , 10 years and 5 years , respectively, and provisional fair value amounts assigned of $1,293 million , $13,272 million and $410 million , respectively. See Note 10 for acquired contingencies resulting from the Worldpay acquisition. Unaudited Supplemental Pro Forma Results Giving Effect to the Worldpay Acquisition Worldpay's revenues and pre-tax loss of $734 million and $162 million , respectively, which include the impact of purchase accounting adjustments, are included in the Condensed Consolidated Statements of Earnings (Unaudited) for the period from July 31, 2019 through September 30, 2019. Pursuant to ASC 805, unaudited supplemental pro forma results of operations for the three and nine months ended September 30, 2019 and 2018 , assuming the acquisition had occurred as of January 1, 2018, are presented below (in millions, except per share amounts): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Revenue $ 3,154 $ 3,109 $ 9,380 $ 9,149 Net earnings (loss) attributable to FIS common stockholders $ 220 $ 14 $ 370 $ (225 ) Net earnings (loss) per share — basic attributable to FIS common stockholders $ 0.36 $ 0.02 $ 0.60 $ (0.36 ) Net earnings (loss) per share — diluted attributable to FIS common stockholders $ 0.36 $ 0.02 $ 0.60 $ (0.36 ) The unaudited pro forma results include certain pro forma adjustments to revenue and net earnings that were directly attributable to the acquisition, assuming the acquisition had occurred on January 1, 2018, including the following: • additional amortization expense that would have been recognized relating to the acquired intangible assets; • adjustment to interest expense to reflect the removal of Worldpay debt and the additional borrowings of FIS in conjunction with the acquisition; and • a reduction in expenses for the three and nine months ended September 30, 2019 of $149 million and $210 million , respectively, and an increase in expenses for the three and nine months ended September 30, 2018 of $8 million and $267 million |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue In the following tables, revenue is disaggregated by primary geographical market, type of revenue, and recurring nature of revenue recognized. The tables also include a reconciliation of the disaggregated revenue with the Company’s reportable segments. Prior-period amounts have been reclassified to conform to the new reportable segment presentation as discussed in Note 13. For the three months ended September 30, 2019 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 501 $ 1,264 $ 378 $ — $ 2,143 All others 219 227 233 — 679 Total $ 720 $ 1,491 $ 611 $ — $ 2,822 Type of Revenue: Processing and services $ 704 $ 1,138 $ 292 $ — $ 2,134 License and software related 1 153 223 — 377 Professional services — 112 95 — 207 Hardware and other 15 88 1 — 104 Total $ 720 $ 1,491 $ 611 $ — $ 2,822 Recurring Nature of Revenue Recognition: Recurring fees $ 717 $ 1,244 $ 426 $ — $ 2,387 Non-recurring fees 3 247 185 — 435 Total $ 720 $ 1,491 $ 611 $ — $ 2,822 For the nine months ended September 30, 2019 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 647 $ 3,616 $ 1,112 $ — $ 5,375 All others 249 701 666 — 1,616 Total $ 896 $ 4,317 $ 1,778 $ — $ 6,991 Type of Revenue: Processing and services $ 866 $ 3,314 $ 864 $ — $ 5,044 License and software related 8 410 635 — 1,053 Professional services — 328 274 — 602 Hardware and other 22 265 5 — 292 Total $ 896 $ 4,317 $ 1,778 $ — $ 6,991 Recurring Nature of Revenue Recognition: Recurring fees $ 885 $ 3,610 $ 1,266 $ — $ 5,761 Non-recurring fees 11 707 512 — 1,230 Total $ 896 $ 4,317 $ 1,778 $ — $ 6,991 For the three months ended September 30, 2018 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 34 $ 1,152 $ 370 $ 12 $ 1,568 All others 16 281 219 — 516 Total $ 50 $ 1,433 $ 589 $ 12 $ 2,084 Type of Revenue: Processing and services $ 47 $ 1,124 $ 274 $ 12 $ 1,457 License and software related — 127 220 — 347 Professional services — 99 94 — 193 Hardware and other 3 83 1 — 87 Total $ 50 $ 1,433 $ 589 $ 12 $ 2,084 Recurring Nature of Revenue Recognition: Recurring fees $ 49 $ 1,221 $ 409 $ 12 $ 1,691 Non-recurring fees 1 212 180 — 393 Total $ 50 $ 1,433 $ 589 $ 12 $ 2,084 For the nine months ended September 30, 2018 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 157 $ 3,379 $ 1,108 $ 43 $ 4,687 All others 48 859 662 — 1,569 Total $ 205 $ 4,238 $ 1,770 $ 43 $ 6,256 Type of Revenue: Processing and services $ 195 $ 3,399 $ 857 $ 43 $ 4,494 License and software related 2 360 638 — 1,000 Professional services — 292 272 — 564 Hardware and other 8 187 3 — 198 Total $ 205 $ 4,238 $ 1,770 $ 43 $ 6,256 Recurring Nature of Revenue Recognition: Recurring fees $ 202 $ 3,653 $ 1,263 $ 43 $ 5,161 Non-recurring fees 3 585 507 — 1,095 Total $ 205 $ 4,238 $ 1,770 $ 43 $ 6,256 Contract Balances The Company recognized revenue of $128 million and $178 million during the three months and $636 million and $629 million during the nine months ended September 30, 2019 and 2018 , respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. Transaction Price Allocated to the Remaining Performance Obligations As of September 30, 2019 , approximately $20.0 billion of revenue is estimated to be recognized in the future from the Banking Solutions and Capital Market Solutions segments' remaining unfulfilled performance obligations, which are primarily comprised of recurring account- and volume-based processing services. This excludes the amount of anticipated recurring renewals not yet contractually obligated. The Company expects to recognize approximately 35% of the Banking Solutions and Capital Market Solutions segments' remaining performance obligations over the next 12 months , approximately another 25% over the next 13 to 24 months , and the balance thereafter. As permitted by ASC 606, Revenue from Contracts with Customers , the Company has elected to exclude from this disclosure an estimate for the Merchant Solutions segment, which is primarily comprised of contracts with an original duration of one year or less or variable consideration that meet specific criteria. This segment’s core performance obligations consist of variable consideration under a stand-ready series of distinct days of service, and revenue from the segment’s products and service arrangements are generally billed and recognized as the services are performed. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidated Financial Statement Details [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details Cash and Cash Equivalents As a result of the assets acquired in the Worldpay acquisition, the Company included restricted cash in the cash and cash equivalents balance reported in the Condensed Consolidated Statements of Cash Flows (Unaudited). The reconciliation between cash and cash equivalents in the Condensed Consolidated Balance Sheets (Unaudited) and the Condensed Consolidated Statements of Cash Flows (Unaudited) is as follows (in millions): September 30, December 31, Cash and cash equivalents on the Condensed Consolidated Balance Sheets (Unaudited) $ 1,305 $ 703 Merchant float (in Settlement deposits and merchant float) 2,000 — Other restricted cash (in Other noncurrent assets) 525 — Total Cash and cash equivalents per the Condensed Consolidated Statements of Cash Flows (Unaudited) $ 3,830 $ 703 Property and Equipment, Intangible Assets and Computer Software The following table shows the Company’s Condensed Consolidated Financial Statement (Unaudited) details as of September 30, 2019 and December 31, 2018 (in millions): September 30, 2019 December 31, 2018 Cost Accumulated Net Cost Accumulated Net Property and equipment $ 2,026 $ 1,215 $ 811 $ 1,645 $ 1,058 $ 587 Intangible assets $ 19,855 $ 3,772 $ 16,083 $ 6,122 $ 2,990 $ 3,132 Computer software $ 4,511 $ 1,486 $ 3,025 $ 3,103 $ 1,308 $ 1,795 The Company entered into other financing obligations of $24 million and $1 million during the three months and $59 million and $1 million during the nine months ended September 30, 2019 and 2018 , respectively, for certain computer hardware and software. The assets are included in property and equipment and computer software, and the other financing obligations are classified as long-term debt on our Condensed Consolidated Balance Sheets (Unaudited). Periodic payments are included in repayment of borrowings and other financing obligations on the Condensed Consolidated Statements of Cash Flows (Unaudited). As of September 30, 2019 , intangible assets, net of amortization, includes $15,606 million of customer relationships and other amortizable intangible assets, $435 million of finite-lived trademarks, as well as $42 million of non-amortizable indefinite-lived trademarks. Amortization expense with respect to these intangible assets was $481 million and $162 million for the three months and $794 million and $498 million during the nine months ended September 30, 2019 and 2018 , respectively. Goodwill Changes in goodwill during the nine months ended September 30, 2019 are summarized below (in millions). Prior-period amounts have been reclassified to conform to the new reportable segment presentation as discussed in Note 13. Capital Merchant Banking Market Solutions Solutions Solutions Total Balance, December 31, 2018 $ 730 $ 7,991 $ 4,824 $ 13,545 Goodwill attributable to acquisition (1) 34,951 3,477 38,428 Foreign currency adjustments (35 ) (11 ) (37 ) (83 ) Balance, September 30, 2019 $ 35,646 $ 11,457 $ 4,787 $ 51,890 (1) The amount of goodwill attributable to the acquisition of Worldpay, including its allocation to reportable segments, is preliminary and subject to change. Effective August 31, 2018, FIS sold substantially all the assets of the Certegy Check Services business unit, resulting in a pre-tax loss of $54 million , including goodwill distributed through the sale of business of $43 million . Asset Impairments During the three months ended September 30, 2019, the Company recorded pre-tax asset impairments of $87 million , primarily related to certain computer software resulting from the Company's net realizable value analysis. During September 2018, as a result of entering into an agreement to unwind the joint venture ("Brazilian Venture") that the Company operated with Banco Bradesco, the Company recorded pre-tax asset impairments totaling $95 million , including $42 million for the Brazilian Venture contract intangible asset, $25 million for goodwill, and $28 million for assets being held for sale that were transferred to Banco Bradesco upon closing of the agreement (see Note 11). Visa Europe and Contingent Value Rights As part of the Worldpay acquisition, the Company acquired certain assets and liabilities related to the June 2016 Worldpay Group plc (Legacy Worldpay) disposal of its ownership interest in Visa Europe to Visa, Inc. In connection with the disposal, Legacy Worldpay agreed to pay former Legacy Worldpay owners 90% of the net-of-tax proceeds from the disposal, known as contingent value rights (“CVR”), pending the resolution of certain historical claims and the finalization of the proceeds from disposal. At September 30, 2019, the value of the CVR liability to the former owners was $700 million recorded in Other long-term liabilities on the Condensed Consolidated Balance Sheets (Unaudited). The related proceeds from the disposal are recorded primarily as restricted cash and as Visa, Inc. Series B preferred shares in Other noncurrent assets on the Condensed Consolidated Balance Sheet (Unaudited). The resolution of the CVR liability is expected to occur no later than June 2028, at which time the Visa, Inc. Series B preferred shares are subject to mandatory conversion into Visa, Inc. Class A Common Stock. Settlement Activity and Merchant Float Banking Solutions We manage certain 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 or clients, 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). Merchant Solutions Settlement deposits and merchant float, settlement receivables, and settlement payables represent intermediary balances arising from the settlement process which involves the transferring of funds between card issuers, merchants and Sponsoring Members. Funds are processed under two models, a sponsorship model and a direct member model. In the U.S., the Company operates under the sponsorship model, and outside the U.S., the Company operates under the direct membership model. Under the sponsorship model, in order for the Company to provide electronic payment processing services, Visa, MasterCard and other payment networks require sponsorship by a member clearing bank. The Company has an agreement with various banks and financial institutions (the “Sponsoring Member”) to provide sponsorship services to the Company. Under the sponsorship agreements the Company is registered as a Visa Third-Party Agent and a MasterCard Service Provider. The sponsorship services allow us to route transactions under the Sponsoring Members' membership to clear card transactions through MasterCard, Visa and other networks. Under this model, the standards of the payment networks restrict us from performing funds settlement and as such require that these funds be in the possession of the Sponsoring Member until the merchant is funded. Accordingly, settlement receivables and settlement payables resulting from the submission of settlement files to the network or cash received from the network in advance of funding the network are the responsibility of the Sponsoring Member and are not recorded on the Company’s Condensed Consolidated Balance Sheets (Unaudited). Settlement receivables and settlement payables are also recorded in the U.S. as a result of intermediary balances due to/from the Sponsoring Member. The Company receives funds from certain networks which are owed to the Sponsoring Member for settlement. In other cases the Company transfers funds to the Sponsoring Member for settlement in advance of receiving funds from the network. These timing differences result in settlement receivables and settlement payables. The amounts are generally collected or paid the following business day. Additionally, U.S. settlement receivables and settlement payables arise related to interchange expenses, merchant reserves and exception items. Under the direct membership model, the Company is a direct member in Visa, MasterCard and other payment networks as third party sponsorship to the networks is not required. This results in the Company performing settlement between the networks and the merchant and requires adherence to the standards of the payment networks in which the Company is a direct member. Settlement deposits and merchant float, settlement receivables and settlement payables result when the Company submits the merchant file to the network or when funds are received by the Company in advance of paying the funds to the merchant. The amounts are generally collected or paid the following business day. Under the direct membership model, merchant float represents cash balances the Company holds on behalf of merchants when the incoming amount from the card networks precedes when the funding to merchants falls due. Merchant float funds held in segregated accounts in a fiduciary capacity are considered restricted cash. |
Deferred Contract Costs
Deferred Contract Costs | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Contract Costs | Deferred Contract Costs Origination and fulfillment costs from contracts with customers capitalized as of September 30, 2019 and December 31, 2018 consisted of the following (in millions): September 30, 2019 December 31, 2018 Contract costs on implementations in progress $ 86 $ 93 Incremental contract origination costs on completed implementations, net 332 219 Contract fulfillment costs on completed implementations, net 170 163 Total deferred contract costs, net $ 588 $ 475 Amortization of deferred contract costs on completed implementations was $48 million and $30 million during the three months and $136 million and $89 million during the nine months ended September 30, 2019 and 2018 , respectively, and there were no significant impairment losses in relation to the costs capitalized for the periods presented. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt as of September 30, 2019 and December 31, 2018 , consisted of the following (in millions): September 30, December 31, 2019 2018 Senior Notes due October 2020, interest payable semi-annually at 3.625% ("2020 Notes") $ 1,150 $ 1,150 Senior Euro Notes due January 2021, interest payable annually at 0.400% ("2021 Euro Notes") 546 572 Senior Euro Floating Rate Notes due May 2021, interest payable quarterly ("Floating Rate Notes") (1) 546 — Senior Euro Notes due May 2021, interest payable annually at 0.125% ("May 2021 Euro Notes") 546 — Senior Notes due August 2021, interest payable semi-annually at 2.250% ("2021 Notes") 750 750 Senior GBP Notes due June 2022, interest payable annually at 1.700% ("2022 GBP Notes") 369 382 Senior Notes due October 2022, interest payable semi-annually at 4.500% ("2022 Notes") 300 300 Senior Notes due April 2023, interest payable semi-annually at 3.500% ("2023 Notes") 700 700 Senior Euro Notes due May 2023, interest payable annually at 0.750% ("2023 Euro Notes") 1,365 — Senior Notes due June 2024, interest payable semi-annually at 3.875% ("2024 Notes") 400 400 Senior Euro Notes due July 2024, interest payable annually at 1.100% ("2024 Euro Notes") 546 572 Senior GBP Notes due May 2025, interest payable annually at 2.602% ("2025 GBP Notes") 769 — Senior Notes due October 2025, interest payable semi-annually at 5.000% ("2025 Notes") 900 900 Senior Notes due August 2026, interest payable semi-annually at 3.000% ("2026 Notes") 1,250 1,250 Senior Euro Notes due May 2027, interest payable annually at 1.500% ("2027 Euro Notes") 1,365 — Senior Notes due May 2028, interest payable semi-annually at 4.250% ("2028 Notes") 400 400 Senior Notes due May 2029, interest payable semi-annually at 3.750% ("2029 Notes") 1,000 — Senior Euro Notes due May 2030, interest payable annually at 2.000% ("2030 Euro Notes") 1,092 — Senior GBP Notes due May 2031, interest payable annually at 3.360% ("2031 GBP Notes") 769 — Senior Euro Notes due May 2039, interest payable annually at 2.950% ("2039 Euro Notes") 546 — Senior Notes due August 2046, interest payable semi-annually at 4.500% ("2046 Notes") 500 500 Senior Notes due May 2048, interest payable semi-annually at 4.750% ("2048 Notes") 600 600 Revolving Credit Facility (2) 560 208 Other 55 34 17,024 8,718 Current portion of long-term debt (79 ) (48 ) Long-term debt, excluding current portion $ 16,945 $ 8,670 (1) As of September 30, 2019 , the weighted-average interest rate of the Floating Rate Notes was 0.00% . (2) Interest on the Revolving Credit Facility is generally payable at LIBOR plus an applicable margin of up to 1.625% plus an unused commitment fee of up to 0.225% , each based upon the Company's corporate credit ratings. As of September 30, 2019 , the weighted average interest rate on the Revolving Credit Facility, excluding fees, was 3.08% . Short-term borrowings as of September 30, 2019 and December 31, 2018 , consisted of the following (in millions): September 30, December 31, 2019 2018 Euro-commercial paper notes ("ECP Notes") (1) $ 2,856 $ — U.S. commercial paper notes ("USCP Notes") (2) 150 250 Other 163 17 Total short-term borrowings $ 3,169 $ 267 (1) As of September 30, 2019 , the weighted-average interest rate of the ECP Notes was (0.17)% , resulting in a reduction to Interest expense, net . (2) As of September 30, 2019 , the weighted-average interest rate of the USCP Notes was 2.28% . On May 21, 2019, FIS completed the issuance and sale of Euro- and Pound Sterling-denominated senior notes, consisting of €500 million in aggregate principal amount of Floating Rate Senior Notes due 2021 (the “Floating Rate Notes”), €500 million in aggregate principal amount of 0.125% Senior Notes due 2021 (the “May 2021 Euro Notes”), €1.25 billion in aggregate principal amount of 0.750% Senior Notes due 2023 (the “2023 Euro Notes”), €1.25 billion in aggregate principal amount of 1.500% Senior Notes due 2027 (the “2027 Euro Notes”), €1 billion in aggregate principal amount of 2.000% Senior Notes due 2030 (the “2030 Euro Notes”), €500 million in aggregate principal amount of 2.950% Senior Notes due 2039 (the “2039 Euro Notes”), £625 million of 2.602% Senior Notes due 2025 (the “2025 GBP Notes”), and £625 million of 3.360% Senior Notes due 2031 (the “2031 GBP Notes”). Also on May 21, 2019, FIS completed the issuance and sale of U.S. Dollar-denominated senior notes, consisting of $1.0 billion in aggregate principal amount of 3.750% Senior Notes due 2029 (the “2029 Notes”). The proceeds of the debt issuances were subsequently used to pay the cash portion of the purchase price and certain of the costs and expenses of the Worldpay transaction and to repay the outstanding Worldpay bank debt and notes. On May 29, 2019, FIS established a Euro-commercial paper (“ECP”) program for the issuance and sale of senior, unsecured commercial paper notes, up to a maximum aggregate amount outstanding at any time of $4.7 billion (or its equivalent in other currencies). The ECP Notes will have maturities of up to 183 days from the date of issue. The ECP program was used to pay for certain of the costs and expenses of the Worldpay transaction. The ECP program is also used for general corporate purposes. During March 2019, concurrent with the execution of the Worldpay merger agreement (see Note 3), FIS secured $9.5 billion of bridge financing commitments to ensure our ability to fund the cash requirements related to the Worldpay transaction. The bridge financing commitments were terminated in full in May 2019 following the (a) amendment of the Restated Credit Agreement to modify certain provisions and covenants of the Revolving Credit Facility and (b) the issuance of the senior notes discussed above. On December 21, 2018, FIS entered into an interest rate swap that effectively converted the 2024 Euro Notes from a fixed-rate to a floating rate debt obligation. This derivative instrument was designated as a fair value hedge of the debt obligation. The fair value of the interest rate swap was $18 million at September 30, 2019 , reflected as an increase in the hedged debt balance. On September 21, 2018, FIS established a U.S. commercial paper (“USCP”) program for the issuance and sale of senior, unsecured commercial paper notes, up to a maximum aggregate amount outstanding at any time of $4.0 billion . On May 29, 2019, FIS increased the capacity on the USCP program from $4 billion to $5.5 billion . The USCP Notes have maturities of up to 397 days from the date of issue. On September 21, 2018, FIS entered into a Seventh Amendment and Restatement Agreement (“Credit Facility Agreement”), which amended and restated FIS’ existing credit agreement (as amended, the “Restated Credit Agreement”). The Credit Facility Agreement increased the revolving credit commitments outstanding under the Revolving Credit Facility (“Revolving Credit Facility”) existing under the Restated Credit Agreement from $3.0 billion to $4.0 billion and extended the term of the Restated Credit Agreement to September 21, 2023. On May 29, 2019, FIS entered into an amendment to the Restated Credit Agreement to increase the revolving credit commitments outstanding under the Revolving Credit Facility from $4.0 billion to $5.5 billion . Borrowing under the Revolving Credit Facility will generally be used for general corporate purposes, including backstopping any notes that FIS may issue under the USCP and ECP programs described above. As of September 30, 2019 , the outstanding principal balance of the Revolving Credit Facility was $560 million , with $4,937 million of borrowing capacity remaining thereunder (net of $3 million in outstanding letters of credit issued under the Revolving Credit Facility). The obligations of FIS under the Revolving Credit Facility, USCP and ECP programs, and all of its outstanding senior notes rank equal in priority and are unsecured. The Revolving Credit Facility and the senior notes are subject to customary covenants, including, among others, customary events of default, and for the Revolving Credit Facility, a provision allowing for financing related to the acquisition of Worldpay and limitations on the payment of dividends by FIS. The following summarizes the aggregate maturities of our long-term debt, including other financing obligations for certain hardware and software, based on stated contractual maturities, excluding the fair value of the interest rate swap and net unamortized non-cash bond premiums and discounts of $31 million , as of September 30, 2019 (in millions): Total 2019 remaining period $ 26 2020 1,222 2021 2,453 2022 691 2023 2,633 Thereafter 10,138 Total principal payments 17,163 Debt issuance costs, net of accumulated amortization (108 ) Total long-term debt $ 17,055 There are no mandatory principal payments on the Revolving Credit Facility and any balance outstanding on the Revolving Credit Facility will be due and payable at its scheduled maturity date, which occurs at September 21, 2023. FIS may redeem the 2020 Notes, 2021 Euro Notes, May 2021 Euro Notes, 2021 Notes, 2022 GBP Notes, 2022 Notes, 2023 Notes, 2023 Euro Notes, 2024 Notes, 2024 Euro Notes, 2025 GBP Notes, 2025 Notes, 2026 Notes, 2027 Euro Notes, 2028 Notes, 2029 Notes, 2030 Euro Notes, 2031 GBP Notes, 2039 Euro Notes, 2046 Notes and 2048 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, the 2021 Euro Notes, the May 2021 Euro Notes, the 2021 Notes, the 2022 GBP Notes and the 2023 Euro 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 2024 Euro Notes, the 2025 GBP Notes, the 2025 Notes, the 2026 Notes, the 2027 Euro Notes, the 2028 Notes, the 2029 Notes, the 2030 Euro Notes, the 2031 GBP Notes and the 2039 Euro Notes during the three months prior to their maturity, and the 2046 Notes and 2048 Notes during the six months prior to their maturity. Debt issuance costs of $108 million , net of accumulated amortization, remain capitalized as of September 30, 2019 , related to all of the above outstanding debt. We monitor the financial stability of our counterparties on an ongoing basis. The lender commitments under the undrawn portions of the Revolving Credit Facility 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 Credit Facility would not adversely impact our ability to fund operations. The fair value of the Company’s long-term debt is estimated to be approximately $1,146 million higher than the carrying value excluding the fair value of the interest rate swap and unamortized discounts as of September 30, 2019 . This estimate is based on quoted prices of our senior notes and trades of our other debt in close proximity to September 30, 2019 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Forward Contracts During the second quarter of 2019, the Company entered into foreign currency forward exchange contracts to reduce the volatility in the Company's cash flows due to foreign exchange rate fluctuations during the period leading up to the Company’s Euro- and Pound Sterling-denominated debt issuances related to the Worldpay transaction (see Note 7 for further discussion of these debt issuances). These forward contracts were settled on July 31, 2019, resulting in a net pre-tax gain of $1 million during the three months and a net pre-tax loss of $14 million during the nine months ended September 30, 2019 . As of September 30, 2019, and December 31, 2018, the Company had no significant forward contracts outstanding. Cash Flow Hedges During the second quarter of 2019, the Company entered into treasury lock and forward-starting interest rate swap contracts with total notional amounts of €1.5 billion , £500 million , and $500 million to reduce the volatility in the Company’s cash flows due to changes in the benchmark interest rates during the period leading up to the Company’s fixed-rate debt issuances related to the Worldpay transaction (see Note 7 for further discussion of these debt issuances). The Company designated these derivatives as cash flow hedges for accounting purposes. During May 2019, in conjunction with the debt issuances, the Company terminated these contracts for an aggregate cash settlement payment of $17 million , which was recorded as a component of Other comprehensive earnings on the Condensed Consolidated Statement of Comprehensive Earnings (Unaudited). The amounts in Other comprehensive earnings are reclassified as an adjustment to interest expense on the Condensed Consolidated Statement of Earnings (Unaudited) over the respective periods during which the related hedged interest payments are recognized in income, which range from four to 12 years . Settlement cash flows related to these contracts were recorded as Other financing activities, net on the Condensed Consolidated Statement of Cash Flows (Unaudited). As of September 30, 2019 , and December 31, 2018 , the Company had no outstanding cash flow hedge contracts. Fair Value Hedge During the fourth quarter of 2018, the Company entered into an interest rate swap with a €500 million notional value converting the interest rate exposure on the Company's 2024 Euro Notes from fixed to variable. The Company designated this interest rate swap as a fair value hedge for accounting purposes. The fair value of the interest rate swap was a $18 million asset at September 30, 2019 , reflected as an increase in the hedged debt balance (see Note 7). Net Investment Hedges During the third quarter of 2019, in conjunction with the closing of the Worldpay acquisition, the Company designated certain debt issuances related to the Worldpay acquisition as net investment hedges of its investment in Euro- and Pound Sterling-denominated operations. As of September 30, 2019, an aggregate €7,616 million wa s designated as a net investment hedge of the Company's investment in Euro-denominated operations related to the Floating Rate Notes, May 2021 Euro Notes, 2023 Euro Notes, 2027 Euro Notes, 2030 Euro Notes, 2039 Euro Notes, and ECP Notes, and an aggregate £264 million was designated as a net investment hedge of the Company's Pound Sterling-denominated operations related to the 2031 GBP Notes. During the fourth quarter of 2018, the Company entered into cross-currency interest rate swaps with an aggregate notional amount of $716 million , which were designated as net investment hedges of its investment in Euro- and Pound Sterling-denominated operations. The fair value of the cross-currency interest rate swaps was a net $35 million asset at September 30, 2019 . During the third quarter of 2017, the Company designated its 2021 Euro Notes ( €500 million ) and 2024 Euro Notes ( €500 million ) and 2022 GBP Notes ( £300 million ) as net investment hedges of its investment in Euro- and Pound Sterling-denominated operations, respectively. The purpose of the Company's net investment hedges is to reduce the volatility of FIS' net investment value in its Euro- and Pound Sterling-denominated operations due to changes in foreign currency exchange rates. The Company recorded net investment hedge aggregate gain (loss), net of tax, for the change in fair value as Foreign currency translation adjustments within Other comprehensive earnings on the Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) of $185 million and $10 million , during the three months and $198 million and $38 million during the nine months ended September 30, 2019 and 2018 |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The classification of the Company’s operating lease ROU assets and liabilities in the Condensed Consolidated Balance Sheet (Unaudited) as of September 30, 2019 was as follows (in millions): Classification September 30, 2019 Operating lease ROU assets Other noncurrent assets $ 521 Operating lease liabilities Accounts payable, accrued and other liabilities $ 129 Other long-term liabilities 425 Total operating lease liabilities $ 554 Operating lease cost was $39 million and variable lease cost was $10 million for the three months and $103 million and $25 million for the nine months ended September 30, 2019 , respectively. Cash paid for amounts included in the measurement of operating lease liabilities included in operating cash flows was $99 million for the nine months ended September 30, 2019 . Operating lease ROU assets obtained in exchange for operating lease liabilities was $51 million for the nine months ended September 30, 2019 . The weighted average remaining operating lease term was 5.9 years and the weighted average operating lease discount rate was 3.7% as of September 30, 2019 . Maturities of operating lease liabilities, as of September 30, 2019 were as follows (in millions): 2019 remaining period $ 34 2020 147 2021 121 2022 86 2023 64 Thereafter 181 Total lease payments 633 Less: Imputed interest (79 ) Total operating lease liabilities $ 554 Aggregate future minimum operating lease payments for each of the years in the five years ending December 31, 2023, and thereafter, as of December 31, 2018 consisted of the following (in millions): 2019 $ 121 2020 104 2021 80 2022 51 2023 38 Thereafter 86 Total $ 480 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Reliance Trust Claims Reliance Trust Company (“Reliance”), 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 (the “Plan”) for one of its customers. Plaintiffs in the action seek damages and attorneys’ fees, as well as equitable relief, on behalf of Plan participants for alleged breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974 against Reliance and the Plan's sponsor and record-keeper. Reliance is vigorously defending the action and believes it has meritorious defenses. Pre-trial discovery has now been completed. Reliance contends that no breaches of fiduciary duty or prohibited transactions occurred and that the Plan suffered no damages. Plaintiffs allege damages of approximately $115 million against all defendants. While we are unable at this time to estimate more precisely the potential loss or range of loss because of unresolved questions of fact and law, we believe that the ultimate resolution of the matter will not have a material impact on our financial condition. We do not believe a liability for this action is probable and, therefore, have not recorded a liability for this action. 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 13 claims against Servicos asserting potential tax liabilities of approximately $14 million . There are potentially 25 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 $50 million making the total potential exposure for all 38 claims approximately $64 million . We do not believe a liability for these 38 total claims is probable and, therefore, have not recorded a liability for any of these claims. Acquired Contingencies - Worldpay The Company assumed in the Worldpay acquisition a Tax Receivable Agreement (“TRA”) under which the Company agreed to make payments to Fifth Third Bank (“Fifth Third”) of 85% of the federal, state, local and foreign income tax benefits realized by the Company as a result of certain tax deductions. Unless amended, payments under the TRA will be based on the cash savings realized by the Company by comparing the actual income tax liability of the Company to the amount of such taxes the Company would have been required to pay had there been no deductions related to the tax attributes. Under the agreement between the Company and Fifth Third, in certain specified circumstances, the Company may be required to make payments in excess of such cash savings. Obligations recorded in our financial statements pursuant to the TRA are based on estimates of future deductions and future tax rates. On an annual basis, the Company evaluates the assumptions underlying the TRA obligations. The Condensed Consolidated Balance Sheet (Unaudited) as of September 30, 2019 included a liability of $919 million relating to the TRA. The timing and/or amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Company generates in the future and the tax rate then applicable, the use of loss carryovers and amortizable basis. Payments under the TRA, if necessary, are required to be made no later than January 5th of the second year immediately following the taxable year in which the obligation occurred. Fifth Third brought a declaratory judgment action alleging that the change of control of Worldpay after its acquisition by the Company triggered provisions in the TRA that would remove the contingency that adequate taxable income be earned to realize tax savings. The Company does not believe that there is merit to this claim, but regardless, even if Fifth Third prevails on this claim, it should not increase the recorded liabilities related to the TRA as disclosed above, which are based on the assumption that adequate taxable income will be earned. The following table summarizes our estimated commitments under the TRA as of September 30, 2019 (in millions): Payments Due in Type of Obligation Total 2019 Remaining Period 1-3 Years 3-5 Years More than 5 Years Obligations under TRA $ 919 $ — $ 124 $ 103 $ 692 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 | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Cardinal Holdings FIS holds a 38% ownership stake in Cardinal Holdings, L.P. (“Cardinal”) as of September 30, 2019 and December 31, 2018 . The ownership stake in Cardinal is recorded as an equity method investment included within Other noncurrent assets on the Condensed Consolidated Balance Sheets (Unaudited). The carrying value of this equity method investment as of September 30, 2019 and December 31, 2018 was $130 million and $151 million , respectively. On July 31, 2017, upon closing on the sale of the Capco consulting business and risk and compliance consulting business, FIS and Cardinal entered into a short-term Transition Services Agreement (“TSA”), whereby FIS provided various agreed upon services to Cardinal in 2018. FIS provides ongoing management consulting services and other services to Cardinal. Amounts transacted through these agreements were not significant to the 2019 and 2018 periods presented. Brazilian Venture The Company owned a 51% controlling interest in the Brazilian Venture that it operated with Banco Bradesco through December 31, 2018 and provided comprehensive, fully-outsourced transaction processing, call center, cardholder support and collection services to multiple card issuing clients in Brazil, including Banco Bradesco. FIS closed a transaction with Banco Bradesco on December 31, 2018 to unwind the Brazilian Venture pursuant to an agreement entered into September 28, 2018. In the third quarter of 2018, FIS incurred impairment charges of $95 million related to the disposal, including impairments of its contract intangible asset, goodwill, and its assets held for sale, which were written-down to fair value less cost to sell (see Note 5). The impairment charges were included in the Corporate and Other segment results. As a result of the disposal, Banco Bradesco was a related party through December 31, 2018. The Company recorded related party revenue from Banco Bradesco of $77 million and $244 million during the three and nine months ended September 30, 2018 . The board of directors for the Brazilian Venture declared a dividend during the three months ended September 30, 2018, resulting in a payment to Banco Bradesco of $23 million . |
Net Earnings per Share
Net Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 were computed using the treasury stock method. The following table summarizes net earnings and net earnings per share attributable to FIS common stockholders for the three and nine months ended September 30, 2019 and 2018 (in millions, except per share amounts): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net earnings attributable to FIS common stockholders $ 154 $ 154 $ 456 $ 548 Weighted average shares outstanding — basic 516 328 388 329 Plus: Common stock equivalent shares 8 3 8 4 Weighted average shares outstanding — diluted 524 331 396 333 Net earnings per share — basic attributable to FIS common stockholders $ 0.30 $ 0.47 $ 1.18 $ 1.67 Net earnings per share — diluted attributable to FIS common stockholders $ 0.29 $ 0.47 $ 1.15 $ 1.65 Options to purchase approximately 0 million and 1 million shares of our common stock for the three months and 1 million and 1 million for the nine months ended September 30, 2019 and 2018 , respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive. On July 20, 2017 our Board of Directors approved a plan authorizing repurchases of up to $4.0 billion |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As a result of the Company’s acquisition of Worldpay, the Company reorganized its reportable segments and recast all prior-period segment information presented to align with the new reportable segments. The new segments are Merchant Solutions, Banking Solutions, and Capital Market Solutions, which are organized based on the markets and clients served aligned with the solutions they provide, as well as the Corporate and Other segment. The reorganization primarily consisted of adding a new Merchant Solutions segment, renaming the former Integrated Financial Solutions segment to Banking Solutions and the former Global Financial Solutions segment to Capital Market Solutions, and moving certain of the Company’s existing business lines to align with these new segments. Below is a summary of each segment. Merchant Solutions ("Merchant") The Merchant segment is focused on serving global merchants as well as merchants of all sizes enabling them to accept electronic payments, including credit, debit and prepaid payments originated at a physical point-of-sale as well as in card-not-present environments such as eCommerce and mobile. Merchant services include all aspects of payment processing, including authorization and settlement, customer service, chargeback and retrieval processing, reporting for electronic payment transactions and network fee and interchange management. Merchant also includes value-added services, such as security and fraud prevention solutions, advanced data analytics and information management solutions, foreign currency management and numerous funding options. Our Merchant clients are highly-diversified, including non-discretionary everyday spend categories, such as grocery and pharmacy, and include 13 of the U.S. top 25 national retailers by revenue in 2018, as well as global enterprises and small to medium sized businesses. The Merchant segment utilizes broad and varied distribution channels, including direct sales forces and multiple referral partner relationships that provide us with a growing and diverse client base. Banking Solutions ("Banking") The Banking segment is focused on serving global clients for transaction and account processing; payment solutions; digital channel solutions; lending and wealth and retirement solutions; risk, fraud management and compliance solutions; and services capitalizing on the continuing trend to outsource these solutions. Clients in this segment include global financial institutions, U.S. regional and community banks, credit unions and commercial lenders, as well as government institutions, and other commercial organizations. Banking serves clients in more than 130 countries around the world. Our applications include core processing software, which clients use to maintain the primary records of their customer accounts, and complementary applications and services that interact directly with the core processing applications. We provide our clients integrated solutions characterized by multi-year processing contracts that generate highly recurring revenue. The predictable nature of cash flows generated from the Banking segment provides opportunities for further investments in innovation, integration, information and security, and compliance in a cost-effective manner. The results in this segment included the Reliance Trust Company of Delaware business through its divestiture on December 31, 2018 and the Company's Brazilian Venture business through its divestiture as part of the joint venture unwinding transaction on December 31, 2018. Capital Market Solutions ("Capital Markets") The Capital Markets segment is focused on serving global financial services clients with a broad array of buy- and sell-side solutions. Clients in this segment operate in more than 50 countries around the world and include asset managers, buy-and sell-side securities, brokerage and trading firms, insurers, private equity firms, and other commercial organizations. Our buy- and sell-side solutions include a variety of mission critical applications for record keeping, data and analytics, trading, financing and risk management. Capital Markets’ 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 and commercial institutions that generate significant recurring revenue. We have and continue to make investments in modern platforms; advanced technologies, such as cloud, open APIs, machine learning and artificial intelligence; and regulatory technology to support our Capital Markets clients. 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. The overhead and leveraged costs relate to marketing, corporate finance and accounting, human resources, legal, and amortization of acquisition-related intangibles and other costs, such as acquisition and integration expenses, that are not considered when management evaluates revenue-generating segment performance. The Corporate and Other segment also included the Certegy Check Services business unit in North America until it was divested on August 31, 2018. During the three and nine months ended September 30, 2019 , the Company recorded acquisition and integration costs primarily related to the Worldpay transaction, and certain other costs including those associated with data center consolidation activities of $25 million and $50 million , respectively. During the three and nine months ended September 30, 2018 , the Company recorded acquisition, integration and certain other costs primarily related to the SunGard acquisition of $16 million and $122 million , respectively. 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 FASB ASC Topic 280, Segment Reporting . Adjusted EBITDA is defined as EBITDA (defined as net earnings (loss) before net interest expense, income tax provision (benefit) and depreciation and amortization) plus certain non-operating items. The non-operating items affecting the segment profit measure generally include acquisition accounting adjustments and acquisition, integration and certain other costs. 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. The Company does not evaluate performance or allocate resources based on segment asset data; therefore, such information is not presented. As of and for the three months ended September 30, 2019 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 720 $ 1,491 $ 611 $ — $ 2,822 Operating expenses 393 982 388 919 2,682 Depreciation and amortization (including purchase accounting amortization) 44 132 57 519 752 EBITDA 371 641 280 (400 ) 892 Acquisition, integration and other costs — — — 213 213 Asset impairments — — — 87 87 Adjusted EBITDA $ 371 $ 641 $ 280 $ (100 ) $ 1,192 EBITDA $ 892 Interest expense, net 95 Depreciation and amortization 206 Purchase accounting amortization 546 Other income (expense) unallocated 159 Provision (benefit) for income taxes 48 Net earnings attributable to noncontrolling interest 2 Net earnings attributable to FIS common stockholders $ 154 Capital expenditures (1) $ 47 $ 157 $ 59 $ 20 $ 283 (1) Capital expenditures for the three months ended September 30, 2019 include $24 million in other financing obligations for certain hardware and software. As of and for the three months ended September 30, 2018 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 50 $ 1,433 $ 589 $ 12 $ 2,084 Operating expenses 43 980 354 365 1,742 Depreciation and amortization (including purchase accounting amortization) 3 124 39 188 354 EBITDA 10 577 274 (165 ) 696 Acquisition deferred revenue adjustment — — — 1 1 Acquisition, integration and other costs — — — 16 16 Asset impairments — — — 95 95 Adjusted EBITDA $ 10 $ 577 $ 274 $ (53 ) $ 808 EBITDA $ 696 Interest expense, net 80 Depreciation and amortization 173 Purchase accounting amortization 181 Other income (expense) unallocated (62 ) Provision (benefit) for income taxes 37 Net earnings attributable to noncontrolling interest 9 Net earnings attributable to FIS common stockholders $ 154 Capital expenditures $ 3 $ 99 $ 46 $ 1 $ 149 (1) Capital expenditures for the three months ended September 30, 2018 include $1 million in other financing obligations for certain hardware and software. As of and for the nine months ended September 30, 2019 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 896 $ 4,317 $ 1,778 $ — $ 6,991 Operating expenses 536 2,938 1,149 1,522 6,145 Depreciation and amortization (including purchase accounting amortization) 50 393 161 884 1,488 EBITDA 410 1,772 790 (638 ) 2,334 Acquisition, integration and other costs — — — 293 293 Asset impairments — — — 87 87 Adjusted EBITDA $ 410 $ 1,772 $ 790 $ (258 ) $ 2,714 EBITDA $ 2,334 Interest expense, net 242 Depreciation and amortization 594 Purchase accounting amortization 894 Other income (expense) unallocated (26 ) Provision (benefit) for income taxes 119 Net earnings attributable to noncontrolling interest 3 Net earnings attributable to FIS common stockholders $ 456 Capital expenditures (1) $ 52 $ 360 $ 167 $ 24 $ 603 (1) Capital expenditures for the nine months ended September 30, 2019 include $59 million in other financing obligations for certain hardware and software. As of and for the nine months ended September 30, 2018 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 205 $ 4,238 $ 1,770 $ 43 $ 6,256 Operating expenses 173 2,956 1,126 1,012 5,267 Depreciation and amortization (including purchase accounting amortization) 8 364 117 571 1,060 EBITDA 40 1,646 761 (398 ) 2,049 Acquisition deferred revenue adjustment — — — 4 4 Acquisition, integration and other costs — — — 122 122 Asset impairments — — — 95 95 Adjusted EBITDA $ 40 $ 1,646 $ 761 $ (177 ) $ 2,270 EBITDA $ 2,049 Interest expense, net 225 Depreciation and amortization 511 Purchase accounting amortization 549 Other income (expense) unallocated (71 ) Provision (benefit) for income taxes 122 Net earnings attributable to noncontrolling interest 23 Net earnings attributable to FIS common stockholders $ 548 Capital expenditures $ 8 $ 311 $ 142 $ 4 $ 465 (1) Capital expenditures for the nine months ended September 30, 2018 include $1 million in other financing obligations for certain hardware and software. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [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, 2018 |
Change in Accounting Policy | The Company adopted Topic 842, Leases , with an initial application date of January 1, 2019. As a result, the Company has changed its accounting policy for leases. The accounting policy pursuant to Topic 842 for operating leases is disclosed below. The primary impact of adopting Topic 842 is the establishment of a right-of-use (“ROU”) model that requires a lessee to recognize ROU assets and lease liabilities on the consolidated balance sheet for operating leases. |
Operating Leases | The Company leases certain of its property, primarily real estate, under operating leases. Operating lease ROU assets are included in other noncurrent assets, and operating lease liabilities are included in accounts payable, accrued and other liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets (Unaudited). ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets also include any prepaid lease payments and exclude lease incentives received. The Company uses an incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Lease terms may include options to extend, generally ranging from one to five years , or to terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. Lease agreements may include lease and related non-lease components, which are accounted for as a single lease component. Additionally, for certain equipment leases, the Company applies a portfolio approach to effectively account for the operating lease ROU assets and liabilities. |
Worldpay Acquisition Worldpay A
Worldpay Acquisition Worldpay Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The total purchase price was as follows (in millions): Cash consideration $ 3,423 Value of FIS share consideration 38,635 Pay-off of Worldpay long-term debt not contractually assumed 5,738 Value of outstanding converted equity awards attributed to services already rendered 449 Total purchase price $ 48,245 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation was as follows (in millions): Cash acquired $ 305 Settlement deposits and merchant float (1) 2,447 Trade receivables 1,619 Goodwill 38,428 Intangible assets 13,682 Computer software 1,293 Other noncurrent assets (2) 1,386 Accounts payable, accrued and other liabilities (1,013 ) Settlement payables (3,167 ) Deferred income taxes (2,822 ) Long-term debt, subsequently repaid (1,805 ) Other liabilities and noncontrolling interest (3) (2,108 ) Total purchase price $ 48,245 (1) Includes $1,693 million of merchant float. (2) Includes $534 million of other restricted cash. (3) Includes $890 million of long-term tax receivable agreement liability (see Note 10) and $710 million contingent value rights liability (see Note 5). |
Business Acquisition, Pro Forma Information | pro forma results of operations for the three and nine months ended September 30, 2019 and 2018 , assuming the acquisition had occurred as of January 1, 2018, are presented below (in millions, except per share amounts): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Revenue $ 3,154 $ 3,109 $ 9,380 $ 9,149 Net earnings (loss) attributable to FIS common stockholders $ 220 $ 14 $ 370 $ (225 ) Net earnings (loss) per share — basic attributable to FIS common stockholders $ 0.36 $ 0.02 $ 0.60 $ (0.36 ) Net earnings (loss) per share — diluted attributable to FIS common stockholders $ 0.36 $ 0.02 $ 0.60 $ (0.36 ) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | In the following tables, revenue is disaggregated by primary geographical market, type of revenue, and recurring nature of revenue recognized. The tables also include a reconciliation of the disaggregated revenue with the Company’s reportable segments. Prior-period amounts have been reclassified to conform to the new reportable segment presentation as discussed in Note 13. For the three months ended September 30, 2019 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 501 $ 1,264 $ 378 $ — $ 2,143 All others 219 227 233 — 679 Total $ 720 $ 1,491 $ 611 $ — $ 2,822 Type of Revenue: Processing and services $ 704 $ 1,138 $ 292 $ — $ 2,134 License and software related 1 153 223 — 377 Professional services — 112 95 — 207 Hardware and other 15 88 1 — 104 Total $ 720 $ 1,491 $ 611 $ — $ 2,822 Recurring Nature of Revenue Recognition: Recurring fees $ 717 $ 1,244 $ 426 $ — $ 2,387 Non-recurring fees 3 247 185 — 435 Total $ 720 $ 1,491 $ 611 $ — $ 2,822 For the nine months ended September 30, 2019 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 647 $ 3,616 $ 1,112 $ — $ 5,375 All others 249 701 666 — 1,616 Total $ 896 $ 4,317 $ 1,778 $ — $ 6,991 Type of Revenue: Processing and services $ 866 $ 3,314 $ 864 $ — $ 5,044 License and software related 8 410 635 — 1,053 Professional services — 328 274 — 602 Hardware and other 22 265 5 — 292 Total $ 896 $ 4,317 $ 1,778 $ — $ 6,991 Recurring Nature of Revenue Recognition: Recurring fees $ 885 $ 3,610 $ 1,266 $ — $ 5,761 Non-recurring fees 11 707 512 — 1,230 Total $ 896 $ 4,317 $ 1,778 $ — $ 6,991 For the three months ended September 30, 2018 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 34 $ 1,152 $ 370 $ 12 $ 1,568 All others 16 281 219 — 516 Total $ 50 $ 1,433 $ 589 $ 12 $ 2,084 Type of Revenue: Processing and services $ 47 $ 1,124 $ 274 $ 12 $ 1,457 License and software related — 127 220 — 347 Professional services — 99 94 — 193 Hardware and other 3 83 1 — 87 Total $ 50 $ 1,433 $ 589 $ 12 $ 2,084 Recurring Nature of Revenue Recognition: Recurring fees $ 49 $ 1,221 $ 409 $ 12 $ 1,691 Non-recurring fees 1 212 180 — 393 Total $ 50 $ 1,433 $ 589 $ 12 $ 2,084 For the nine months ended September 30, 2018 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 157 $ 3,379 $ 1,108 $ 43 $ 4,687 All others 48 859 662 — 1,569 Total $ 205 $ 4,238 $ 1,770 $ 43 $ 6,256 Type of Revenue: Processing and services $ 195 $ 3,399 $ 857 $ 43 $ 4,494 License and software related 2 360 638 — 1,000 Professional services — 292 272 — 564 Hardware and other 8 187 3 — 198 Total $ 205 $ 4,238 $ 1,770 $ 43 $ 6,256 Recurring Nature of Revenue Recognition: Recurring fees $ 202 $ 3,653 $ 1,263 $ 43 $ 5,161 Non-recurring fees 3 585 507 — 1,095 Total $ 205 $ 4,238 $ 1,770 $ 43 $ 6,256 |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidated Financial Statement Details [Abstract] | |
Restricted Cash and Cash Equivalents | The reconciliation between cash and cash equivalents in the Condensed Consolidated Balance Sheets (Unaudited) and the Condensed Consolidated Statements of Cash Flows (Unaudited) is as follows (in millions): September 30, December 31, Cash and cash equivalents on the Condensed Consolidated Balance Sheets (Unaudited) $ 1,305 $ 703 Merchant float (in Settlement deposits and merchant float) 2,000 — Other restricted cash (in Other noncurrent assets) 525 — Total Cash and cash equivalents per the Condensed Consolidated Statements of Cash Flows (Unaudited) $ 3,830 $ 703 |
Cash and Cash Equivalents | The reconciliation between cash and cash equivalents in the Condensed Consolidated Balance Sheets (Unaudited) and the Condensed Consolidated Statements of Cash Flows (Unaudited) is as follows (in millions): September 30, December 31, Cash and cash equivalents on the Condensed Consolidated Balance Sheets (Unaudited) $ 1,305 $ 703 Merchant float (in Settlement deposits and merchant float) 2,000 — Other restricted cash (in Other noncurrent assets) 525 — Total Cash and cash equivalents per the Condensed Consolidated Statements of Cash Flows (Unaudited) $ 3,830 $ 703 |
Condensed Consolidated Financial Statement Details | The following table shows the Company’s Condensed Consolidated Financial Statement (Unaudited) details as of September 30, 2019 and December 31, 2018 (in millions): September 30, 2019 December 31, 2018 Cost Accumulated Net Cost Accumulated Net Property and equipment $ 2,026 $ 1,215 $ 811 $ 1,645 $ 1,058 $ 587 Intangible assets $ 19,855 $ 3,772 $ 16,083 $ 6,122 $ 2,990 $ 3,132 Computer software $ 4,511 $ 1,486 $ 3,025 $ 3,103 $ 1,308 $ 1,795 |
Goodwill Rollforward | Changes in goodwill during the nine months ended September 30, 2019 are summarized below (in millions). Prior-period amounts have been reclassified to conform to the new reportable segment presentation as discussed in Note 13. Capital Merchant Banking Market Solutions Solutions Solutions Total Balance, December 31, 2018 $ 730 $ 7,991 $ 4,824 $ 13,545 Goodwill attributable to acquisition (1) 34,951 3,477 38,428 Foreign currency adjustments (35 ) (11 ) (37 ) (83 ) Balance, September 30, 2019 $ 35,646 $ 11,457 $ 4,787 $ 51,890 (1) The amount of goodwill attributable to the acquisition of Worldpay, including its allocation to reportable segments, is preliminary and subject to change. |
Deferred Contract Costs (Tables
Deferred Contract Costs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Contract Cost Detail | Origination and fulfillment costs from contracts with customers capitalized as of September 30, 2019 and December 31, 2018 consisted of the following (in millions): September 30, 2019 December 31, 2018 Contract costs on implementations in progress $ 86 $ 93 Incremental contract origination costs on completed implementations, net 332 219 Contract fulfillment costs on completed implementations, net 170 163 Total deferred contract costs, net $ 588 $ 475 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt as of September 30, 2019 and December 31, 2018 , consisted of the following (in millions): September 30, December 31, 2019 2018 Senior Notes due October 2020, interest payable semi-annually at 3.625% ("2020 Notes") $ 1,150 $ 1,150 Senior Euro Notes due January 2021, interest payable annually at 0.400% ("2021 Euro Notes") 546 572 Senior Euro Floating Rate Notes due May 2021, interest payable quarterly ("Floating Rate Notes") (1) 546 — Senior Euro Notes due May 2021, interest payable annually at 0.125% ("May 2021 Euro Notes") 546 — Senior Notes due August 2021, interest payable semi-annually at 2.250% ("2021 Notes") 750 750 Senior GBP Notes due June 2022, interest payable annually at 1.700% ("2022 GBP Notes") 369 382 Senior Notes due October 2022, interest payable semi-annually at 4.500% ("2022 Notes") 300 300 Senior Notes due April 2023, interest payable semi-annually at 3.500% ("2023 Notes") 700 700 Senior Euro Notes due May 2023, interest payable annually at 0.750% ("2023 Euro Notes") 1,365 — Senior Notes due June 2024, interest payable semi-annually at 3.875% ("2024 Notes") 400 400 Senior Euro Notes due July 2024, interest payable annually at 1.100% ("2024 Euro Notes") 546 572 Senior GBP Notes due May 2025, interest payable annually at 2.602% ("2025 GBP Notes") 769 — Senior Notes due October 2025, interest payable semi-annually at 5.000% ("2025 Notes") 900 900 Senior Notes due August 2026, interest payable semi-annually at 3.000% ("2026 Notes") 1,250 1,250 Senior Euro Notes due May 2027, interest payable annually at 1.500% ("2027 Euro Notes") 1,365 — Senior Notes due May 2028, interest payable semi-annually at 4.250% ("2028 Notes") 400 400 Senior Notes due May 2029, interest payable semi-annually at 3.750% ("2029 Notes") 1,000 — Senior Euro Notes due May 2030, interest payable annually at 2.000% ("2030 Euro Notes") 1,092 — Senior GBP Notes due May 2031, interest payable annually at 3.360% ("2031 GBP Notes") 769 — Senior Euro Notes due May 2039, interest payable annually at 2.950% ("2039 Euro Notes") 546 — Senior Notes due August 2046, interest payable semi-annually at 4.500% ("2046 Notes") 500 500 Senior Notes due May 2048, interest payable semi-annually at 4.750% ("2048 Notes") 600 600 Revolving Credit Facility (2) 560 208 Other 55 34 17,024 8,718 Current portion of long-term debt (79 ) (48 ) Long-term debt, excluding current portion $ 16,945 $ 8,670 (1) As of September 30, 2019 , the weighted-average interest rate of the Floating Rate Notes was 0.00% . (2) Interest on the Revolving Credit Facility is generally payable at LIBOR plus an applicable margin of up to 1.625% plus an unused commitment fee of up to 0.225% , each based upon the Company's corporate credit ratings. As of September 30, 2019 , the weighted average interest rate on the Revolving Credit Facility, excluding fees, was 3.08% . |
Short-term Debt | Short-term borrowings as of September 30, 2019 and December 31, 2018 , consisted of the following (in millions): September 30, December 31, 2019 2018 Euro-commercial paper notes ("ECP Notes") (1) $ 2,856 $ — U.S. commercial paper notes ("USCP Notes") (2) 150 250 Other 163 17 Total short-term borrowings $ 3,169 $ 267 (1) As of September 30, 2019 , the weighted-average interest rate of the ECP Notes was (0.17)% , resulting in a reduction to Interest expense, net . (2) As of September 30, 2019 , the weighted-average interest rate of the USCP Notes was 2.28% . |
Principal Maturities of Long-term Debt | The following summarizes the aggregate maturities of our long-term debt, including other financing obligations for certain hardware and software, based on stated contractual maturities, excluding the fair value of the interest rate swap and net unamortized non-cash bond premiums and discounts of $31 million , as of September 30, 2019 (in millions): Total 2019 remaining period $ 26 2020 1,222 2021 2,453 2022 691 2023 2,633 Thereafter 10,138 Total principal payments 17,163 Debt issuance costs, net of accumulated amortization (108 ) Total long-term debt $ 17,055 |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Lease Balance Sheet Classification | The classification of the Company’s operating lease ROU assets and liabilities in the Condensed Consolidated Balance Sheet (Unaudited) as of September 30, 2019 was as follows (in millions): Classification September 30, 2019 Operating lease ROU assets Other noncurrent assets $ 521 Operating lease liabilities Accounts payable, accrued and other liabilities $ 129 Other long-term liabilities 425 Total operating lease liabilities $ 554 |
Operating Lease Liability Maturity Schedule | Maturities of operating lease liabilities, as of September 30, 2019 were as follows (in millions): 2019 remaining period $ 34 2020 147 2021 121 2022 86 2023 64 Thereafter 181 Total lease payments 633 Less: Imputed interest (79 ) Total operating lease liabilities $ 554 |
Aggregate Future Minimum Operating Lease Payments | Aggregate future minimum operating lease payments for each of the years in the five years ending December 31, 2023, and thereafter, as of December 31, 2018 consisted of the following (in millions): 2019 $ 121 2020 104 2021 80 2022 51 2023 38 Thereafter 86 Total $ 480 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments [Table Text Block] | The following table summarizes our estimated commitments under the TRA as of September 30, 2019 (in millions): Payments Due in Type of Obligation Total 2019 Remaining Period 1-3 Years 3-5 Years More than 5 Years Obligations under TRA $ 919 $ — $ 124 $ 103 $ 692 |
Net Earnings per Share (Tables)
Net Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to FIS Common Stockholders | The following table summarizes net earnings and net earnings per share attributable to FIS common stockholders for the three and nine months ended September 30, 2019 and 2018 (in millions, except per share amounts): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net earnings attributable to FIS common stockholders $ 154 $ 154 $ 456 $ 548 Weighted average shares outstanding — basic 516 328 388 329 Plus: Common stock equivalent shares 8 3 8 4 Weighted average shares outstanding — diluted 524 331 396 333 Net earnings per share — basic attributable to FIS common stockholders $ 0.30 $ 0.47 $ 1.18 $ 1.67 Net earnings per share — diluted attributable to FIS common stockholders $ 0.29 $ 0.47 $ 1.15 $ 1.65 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Summarized financial information for the Company’s segments is shown in the following tables. The Company does not evaluate performance or allocate resources based on segment asset data; therefore, such information is not presented. As of and for the three months ended September 30, 2019 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 720 $ 1,491 $ 611 $ — $ 2,822 Operating expenses 393 982 388 919 2,682 Depreciation and amortization (including purchase accounting amortization) 44 132 57 519 752 EBITDA 371 641 280 (400 ) 892 Acquisition, integration and other costs — — — 213 213 Asset impairments — — — 87 87 Adjusted EBITDA $ 371 $ 641 $ 280 $ (100 ) $ 1,192 EBITDA $ 892 Interest expense, net 95 Depreciation and amortization 206 Purchase accounting amortization 546 Other income (expense) unallocated 159 Provision (benefit) for income taxes 48 Net earnings attributable to noncontrolling interest 2 Net earnings attributable to FIS common stockholders $ 154 Capital expenditures (1) $ 47 $ 157 $ 59 $ 20 $ 283 (1) Capital expenditures for the three months ended September 30, 2019 include $24 million in other financing obligations for certain hardware and software. As of and for the three months ended September 30, 2018 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 50 $ 1,433 $ 589 $ 12 $ 2,084 Operating expenses 43 980 354 365 1,742 Depreciation and amortization (including purchase accounting amortization) 3 124 39 188 354 EBITDA 10 577 274 (165 ) 696 Acquisition deferred revenue adjustment — — — 1 1 Acquisition, integration and other costs — — — 16 16 Asset impairments — — — 95 95 Adjusted EBITDA $ 10 $ 577 $ 274 $ (53 ) $ 808 EBITDA $ 696 Interest expense, net 80 Depreciation and amortization 173 Purchase accounting amortization 181 Other income (expense) unallocated (62 ) Provision (benefit) for income taxes 37 Net earnings attributable to noncontrolling interest 9 Net earnings attributable to FIS common stockholders $ 154 Capital expenditures $ 3 $ 99 $ 46 $ 1 $ 149 (1) Capital expenditures for the three months ended September 30, 2018 include $1 million in other financing obligations for certain hardware and software. As of and for the nine months ended September 30, 2019 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 896 $ 4,317 $ 1,778 $ — $ 6,991 Operating expenses 536 2,938 1,149 1,522 6,145 Depreciation and amortization (including purchase accounting amortization) 50 393 161 884 1,488 EBITDA 410 1,772 790 (638 ) 2,334 Acquisition, integration and other costs — — — 293 293 Asset impairments — — — 87 87 Adjusted EBITDA $ 410 $ 1,772 $ 790 $ (258 ) $ 2,714 EBITDA $ 2,334 Interest expense, net 242 Depreciation and amortization 594 Purchase accounting amortization 894 Other income (expense) unallocated (26 ) Provision (benefit) for income taxes 119 Net earnings attributable to noncontrolling interest 3 Net earnings attributable to FIS common stockholders $ 456 Capital expenditures (1) $ 52 $ 360 $ 167 $ 24 $ 603 (1) Capital expenditures for the nine months ended September 30, 2019 include $59 million in other financing obligations for certain hardware and software. As of and for the nine months ended September 30, 2018 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 205 $ 4,238 $ 1,770 $ 43 $ 6,256 Operating expenses 173 2,956 1,126 1,012 5,267 Depreciation and amortization (including purchase accounting amortization) 8 364 117 571 1,060 EBITDA 40 1,646 761 (398 ) 2,049 Acquisition deferred revenue adjustment — — — 4 4 Acquisition, integration and other costs — — — 122 122 Asset impairments — — — 95 95 Adjusted EBITDA $ 40 $ 1,646 $ 761 $ (177 ) $ 2,270 EBITDA $ 2,049 Interest expense, net 225 Depreciation and amortization 511 Purchase accounting amortization 549 Other income (expense) unallocated (71 ) Provision (benefit) for income taxes 122 Net earnings attributable to noncontrolling interest 23 Net earnings attributable to FIS common stockholders $ 548 Capital expenditures $ 8 $ 311 $ 142 $ 4 $ 465 (1) Capital expenditures for the nine months ended September 30, 2018 include $1 million in other financing obligations for certain hardware and software. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle\ | ||
Operating lease ROU assets | $ 521 | |
Operating lease liability | $ 554 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle\ | ||
Operating lease ROU assets | $ 442 | |
Operating lease liability | $ 446 | |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle\ | ||
Lease renewal options | 1 year | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle\ | ||
Lease renewal options | 5 years |
Worldpay Acquisition - Narrativ
Worldpay Acquisition - Narrative (Details) - Worldpay $ / shares in Units, shares in Millions, $ in Millions | Jul. 31, 2019USD ($)$ / sharesshares | Jul. 31, 2019USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Business Acquisition | |||||||
Percentage of voting interests acquired | 100.00% | 100.00% | |||||
Equity interest issued or issuable, number of shares | shares | 289 | ||||||
Cash consideration | $ 3,423 | ||||||
Share conversion rate | $ / shares | 0.9287 | 0.9287 | |||||
Share price, gross (usd per share) | $ / shares | $ 11 | $ 11 | |||||
Share price (shares) | $ / shares | $ 133.69 | $ 133.69 | |||||
Equity awards issued or issuable, number of shares | shares | 8 | ||||||
Value of outstanding converted equity awards attributed to services already rendered | $ 789 | ||||||
Consideration transferred, liabilities incurred | 7,500 | ||||||
Pay-off of Worldpay long-term debt not contractually assumed | 5,738 | ||||||
Gross contractual amount of trade and other receivables required | $ 1,666 | $ 1,666 | |||||
Revenue, actual | $ 734 | ||||||
Loss from continuing operations, before tax | $ 162 | ||||||
Business acquisition cost | $ 149 | $ 8 | $ 210 | $ 267 | |||
Computer Software, Intangible Asset | |||||||
Business Acquisition | |||||||
Weighted average useful life | 7 years | ||||||
Finite-lived intangible assets acquired | $ 1,293 | ||||||
Customer relationships | |||||||
Business Acquisition | |||||||
Weighted average useful life | 10 years | ||||||
Finite-lived intangible assets acquired | $ 13,272 | ||||||
Trademarks | |||||||
Business Acquisition | |||||||
Weighted average useful life | 5 years | ||||||
Finite-lived intangible assets acquired | $ 410 |
Worldpay Acquisition - Purchase
Worldpay Acquisition - Purchase Price (Details) - Worldpay $ in Millions | Jul. 31, 2019USD ($) |
Business Acquisition | |
Cash consideration | $ 3,423 |
Value of FIS share consideration | 38,635 |
Pay-off of Worldpay long-term debt not contractually assumed | 5,738 |
Value of outstanding converted equity awards attributed to services already rendered | 449 |
Total purchase price | $ 48,245 |
Worldpay Acquisition - Purcha_2
Worldpay Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 31, 2019 | Dec. 31, 2018 |
Business Acquisition | |||
Goodwill | $ 51,890 | $ 13,545 | |
Worldpay | |||
Business Acquisition | |||
Cash acquired | $ 305 | ||
Settlement deposits and merchant float | 2,447 | ||
Trade receivables | 1,619 | ||
Goodwill | 38,428 | ||
Intangible assets | 13,682 | ||
Computer software | 1,293 | ||
Other noncurrent assets | 1,386 | ||
Accounts payable, accrued and other liabilities | (1,013) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Settlements | (3,167) | ||
Deferred income taxes | (2,822) | ||
Long-term debt, subsequently repaid | (1,805) | ||
Other liabilities and noncontrolling interest | (2,108) | ||
Total preliminary purchase price allocations | 48,245 | ||
Merchant float | 1,693 | ||
Restricted cash | 534 | ||
Tax receivable agreement liability | 890 | ||
Contingent value rights | $ 710 |
Worldpay Acquisition - Unaudite
Worldpay Acquisition - Unaudited Pro Forma Results of Operations (Details) - Worldpay - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition | ||||
Revenue | $ 3,154 | $ 3,109 | $ 9,380 | $ 9,149 |
Net earnings (loss) attributable to FIS common stockholders | $ 220 | $ 14 | $ 370 | $ (225) |
Net earnings (loss) per share — basic attributable to FIS common stockholders | $ 0.36 | $ 0.02 | $ 0.60 | $ (0.36) |
Net earnings (loss) per share — diluted attributable to FIS common stockholders | $ 0.36 | $ 0.02 | $ 0.60 | $ (0.36) |
Revenue - Disaggregate Revenue
Revenue - Disaggregate Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue | ||||
Revenue | $ 2,822 | $ 2,084 | $ 6,991 | $ 6,256 |
Recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 2,387 | 1,691 | 5,761 | 5,161 |
Non-recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 435 | 393 | 1,230 | 1,095 |
Processing and services | ||||
Disaggregation of Revenue | ||||
Revenue | 2,134 | 1,457 | 5,044 | 4,494 |
License and software related | ||||
Disaggregation of Revenue | ||||
Revenue | 377 | 347 | 1,053 | 1,000 |
Professional services | ||||
Disaggregation of Revenue | ||||
Revenue | 207 | 193 | 602 | 564 |
Hardware and other | ||||
Disaggregation of Revenue | ||||
Revenue | 104 | 87 | 292 | 198 |
North America | ||||
Disaggregation of Revenue | ||||
Revenue | 2,143 | 1,568 | 5,375 | 4,687 |
All others | ||||
Disaggregation of Revenue | ||||
Revenue | 679 | 516 | 1,616 | 1,569 |
Corporate and Other | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 12 | 0 | 43 |
Corporate and Other | Recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 12 | 0 | 43 |
Corporate and Other | Non-recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other | Processing and services | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 12 | 0 | 43 |
Corporate and Other | License and software related | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other | Professional services | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other | Hardware and other | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other | North America | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 12 | 0 | 43 |
Corporate and Other | All others | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments | ||||
Disaggregation of Revenue | ||||
Revenue | 2,822 | 2,084 | 6,991 | 6,256 |
Operating Segments | Merchant Solutions | ||||
Disaggregation of Revenue | ||||
Revenue | 720 | 50 | 896 | 205 |
Operating Segments | Merchant Solutions | Recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 717 | 49 | 885 | 202 |
Operating Segments | Merchant Solutions | Non-recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 3 | 1 | 11 | 3 |
Operating Segments | Merchant Solutions | Processing and services | ||||
Disaggregation of Revenue | ||||
Revenue | 704 | 47 | 866 | 195 |
Operating Segments | Merchant Solutions | License and software related | ||||
Disaggregation of Revenue | ||||
Revenue | 1 | 0 | 8 | 2 |
Operating Segments | Merchant Solutions | Professional services | ||||
Disaggregation of Revenue | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments | Merchant Solutions | Hardware and other | ||||
Disaggregation of Revenue | ||||
Revenue | 15 | 3 | 22 | 8 |
Operating Segments | Merchant Solutions | North America | ||||
Disaggregation of Revenue | ||||
Revenue | 501 | 34 | 647 | 157 |
Operating Segments | Merchant Solutions | All others | ||||
Disaggregation of Revenue | ||||
Revenue | 219 | 16 | 249 | 48 |
Operating Segments | Banking Solutions | ||||
Disaggregation of Revenue | ||||
Revenue | 1,491 | 1,433 | 4,317 | 4,238 |
Operating Segments | Banking Solutions | Recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 1,244 | 1,221 | 3,610 | 3,653 |
Operating Segments | Banking Solutions | Non-recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 247 | 212 | 707 | 585 |
Operating Segments | Banking Solutions | Processing and services | ||||
Disaggregation of Revenue | ||||
Revenue | 1,138 | 1,124 | 3,314 | 3,399 |
Operating Segments | Banking Solutions | License and software related | ||||
Disaggregation of Revenue | ||||
Revenue | 153 | 127 | 410 | 360 |
Operating Segments | Banking Solutions | Professional services | ||||
Disaggregation of Revenue | ||||
Revenue | 112 | 99 | 328 | 292 |
Operating Segments | Banking Solutions | Hardware and other | ||||
Disaggregation of Revenue | ||||
Revenue | 88 | 83 | 265 | 187 |
Operating Segments | Banking Solutions | North America | ||||
Disaggregation of Revenue | ||||
Revenue | 1,264 | 1,152 | 3,616 | 3,379 |
Operating Segments | Banking Solutions | All others | ||||
Disaggregation of Revenue | ||||
Revenue | 227 | 281 | 701 | 859 |
Operating Segments | Capital Market Solutions | ||||
Disaggregation of Revenue | ||||
Revenue | 611 | 589 | 1,778 | 1,770 |
Operating Segments | Capital Market Solutions | Recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 426 | 409 | 1,266 | 1,263 |
Operating Segments | Capital Market Solutions | Non-recurring fees | ||||
Disaggregation of Revenue | ||||
Revenue | 185 | 180 | 512 | 507 |
Operating Segments | Capital Market Solutions | Processing and services | ||||
Disaggregation of Revenue | ||||
Revenue | 292 | 274 | 864 | 857 |
Operating Segments | Capital Market Solutions | License and software related | ||||
Disaggregation of Revenue | ||||
Revenue | 223 | 220 | 635 | 638 |
Operating Segments | Capital Market Solutions | Professional services | ||||
Disaggregation of Revenue | ||||
Revenue | 95 | 94 | 274 | 272 |
Operating Segments | Capital Market Solutions | Hardware and other | ||||
Disaggregation of Revenue | ||||
Revenue | 1 | 1 | 5 | 3 |
Operating Segments | Capital Market Solutions | North America | ||||
Disaggregation of Revenue | ||||
Revenue | 378 | 370 | 1,112 | 1,108 |
Operating Segments | Capital Market Solutions | All others | ||||
Disaggregation of Revenue | ||||
Revenue | 233 | 219 | 666 | 662 |
Operating Segments | Corporate and Other | ||||
Disaggregation of Revenue | ||||
Revenue | $ 0 | $ 12 | $ 0 | $ 43 |
Revenue - (Narrative) (Details)
Revenue - (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue from contract liability | $ 128 | $ 178 | $ 636 | $ 629 |
Remaining revenue recognition | $ 20,000 | $ 20,000 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | ||||
Revenue from Contract with Customer [Abstract] | ||||
Remaining performance obligation, percentage | 35.00% | 35.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||||
Performance obligations expected to be satisfied, expected timing | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | ||||
Revenue from Contract with Customer [Abstract] | ||||
Remaining performance obligation, percentage | 25.00% | 25.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||||
Performance obligations expected to be satisfied, expected timing | 24 months | 24 months |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ||||
Cash and cash equivalents on the Condensed Consolidated Balance Sheets (Unaudited) | $ 1,305 | $ 703 | ||
Merchant float (in Settlement deposits and merchant float) | 2,000 | 0 | ||
Other restricted cash (in Other noncurrent assets) | 525 | 0 | ||
Total cash and cash equivalents per the Condensed Consolidated Statements of Cash Flows (Unaudited) | $ 3,830 | $ 703 | $ 632 | $ 665 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Summary of Net Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Condensed Consolidated Financial Statement Details [Abstract] | ||
Property and equipment, cost | $ 2,026 | $ 1,645 |
Property and equipment, accumulated depreciation and amortization | 1,215 | 1,058 |
Property and equipment, net | 811 | 587 |
Intangible assets, cost | 19,855 | 6,122 |
Intangible assets, accumulated depreciation and amortization | 3,772 | 2,990 |
Intangible assets, net | 16,083 | 3,132 |
Computer software, cost | 4,511 | 3,103 |
Computer software, accumulated depreciation and amortization | 1,486 | 1,308 |
Computer software, net | $ 3,025 | $ 1,795 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Narrative (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment | ||||||
Capital lease obligations | $ 24 | $ 1 | $ 59 | $ 1 | ||
Finite-lived intangible assets, net | 15,606 | 15,606 | ||||
Amortization expense of intangible assets | 481 | 162 | 794 | 498 | ||
Impairment of computer software | 87 | |||||
Asset impairments | $ 87 | 95 | $ 87 | $ 95 | ||
Visa Europe to Visa, Inc. | ||||||
Property, Plant and Equipment | ||||||
Percentage of disposal proceeds due to counterparty, net of tax (percent) | 90.00% | 90.00% | ||||
Contingent value rights | $ 700 | $ 700 | ||||
Disposed of by Sale, Not Discontinued Operations | Brazilian Venture | ||||||
Property, Plant and Equipment | ||||||
Asset impairments | $ 95 | $ 95 | ||||
Impairment of intangible asset | 42 | |||||
Goodwill impairment | 25 | |||||
Impairment of available for sale asset | $ 28 | |||||
Disposed of by Sale, Not Discontinued Operations | North America | ||||||
Property, Plant and Equipment | ||||||
Loss on sale of asset | $ 54 | |||||
Goodwill distributed through sale of businesses | $ 43 | |||||
Trademarks | ||||||
Property, Plant and Equipment | ||||||
Indefinite-lived intangible assets | 42 | 42 | ||||
Trademarks | ||||||
Property, Plant and Equipment | ||||||
Finite-lived intangible assets, net | $ 435 | $ 435 |
Condensed Consolidated Financ_6
Condensed Consolidated Financial Statement Details - Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill | |
Beginning balance | $ 13,545 |
Goodwill attributable to acquisition | 38,428 |
Foreign currency adjustments | (83) |
Ending balance | 51,890 |
Operating Segments | Merchant Solutions | |
Goodwill | |
Beginning balance | 730 |
Goodwill attributable to acquisition | 34,951 |
Foreign currency adjustments | (35) |
Ending balance | 35,646 |
Operating Segments | Banking Solutions | |
Goodwill | |
Beginning balance | 7,991 |
Goodwill attributable to acquisition | 3,477 |
Foreign currency adjustments | (11) |
Ending balance | 11,457 |
Operating Segments | Capital Market Solutions | |
Goodwill | |
Beginning balance | 4,824 |
Foreign currency adjustments | (37) |
Ending balance | $ 4,787 |
Deferred Contract Costs (Detail
Deferred Contract Costs (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Capitalized Contract Cost | ||
Deferred contract costs, net | $ 588 | $ 475 |
Contract costs on implementations in progress | ||
Capitalized Contract Cost | ||
Deferred contract costs, net | 86 | 93 |
Incremental contract origination costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Deferred contract costs, net | 332 | 219 |
Contract fulfillment costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Deferred contract costs, net | $ 170 | $ 163 |
Deferred Contract Costs - (Narr
Deferred Contract Costs - (Narratives) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Amortization of contract costs | $ 48,000,000 | $ 30,000,000 | $ 136,000,000 | $ 89,000,000 |
Deferred contract costs impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Debt - (Schedule of Long-Term D
Debt - (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | May 21, 2019 | Dec. 31, 2018 | |
Long-Term Debt | |||
Other | $ 55 | $ 34 | |
Long-term Debt | 17,024 | 8,718 | |
Current portion of long-term debt | (79) | (48) | |
Long-term debt, excluding current portion | 16,945 | 8,670 | |
Revolving Credit Facility | |||
Long-Term Debt | |||
Revolving credit facility | $ 560 | 208 | |
Weighted average interest rate | 3.08% | ||
Unused commitment fee | 0.225% | ||
Revolving Credit Facility | One month LIBOR | Maximum | |||
Long-Term Debt | |||
Applicable margin | 1.625% | ||
Revolving Credit Facility | |||
Long-Term Debt | |||
Revolving credit facility | $ 560 | ||
Senior notes | Senior Notes due October 2020, interest payable semi-annually at 3.625% (2020 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 1,150 | 1,150 | |
Debt instrument, stated percentage | 3.625% | ||
Senior notes | Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | |||
Long-Term Debt | |||
Senior notes | $ 546 | 572 | |
Debt instrument, stated percentage | 0.40% | ||
Senior notes | Senior Euro Floating Rate Notes due May 2021, interest payable quarterly (Floating Rate Notes) (1) | |||
Long-Term Debt | |||
Senior notes | $ 546 | 0 | |
Weighted average interest rate | 0.00% | ||
Senior notes | Senior Euro Notes due May 2021, interest payable annually at 0.125% (May 2021 Euro Notes) | |||
Long-Term Debt | |||
Senior notes | $ 546 | 0 | |
Debt instrument, stated percentage | 0.125% | 0.125% | |
Senior notes | Senior Notes due August 2021, interest payable semi-annually at 2.250% (2021 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 750 | 750 | |
Debt instrument, stated percentage | 2.25% | ||
Senior notes | Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | |||
Long-Term Debt | |||
Senior notes | $ 369 | 382 | |
Debt instrument, stated percentage | 1.70% | ||
Senior notes | Senior Notes due October 2022, interest payable semi-annually at 4.500% (2022 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 300 | 300 | |
Debt instrument, stated percentage | 4.50% | ||
Senior notes | Senior Notes due April 2023, interest payable semi-annually at 3.500% (2023 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 700 | 700 | |
Debt instrument, stated percentage | 3.50% | ||
Senior notes | Senior Euro Notes due May 2023, interest payable annually at 0.750% (2023 Euro Notes) | |||
Long-Term Debt | |||
Senior notes | $ 1,365 | 0 | |
Debt instrument, stated percentage | 0.75% | ||
Senior notes | Senior Notes due June 2024, interest payable semi-annually at 3.875% (2024 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 400 | 400 | |
Debt instrument, stated percentage | 3.875% | ||
Senior notes | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | |||
Long-Term Debt | |||
Senior notes | $ 546 | 572 | |
Debt instrument, stated percentage | 1.10% | ||
Senior notes | Senior GBP Notes due May 2025, interest payable annually at 2.602% (2025 GBP Notes) | |||
Long-Term Debt | |||
Senior notes | $ 769 | 0 | |
Debt instrument, stated percentage | 2.602% | 2.602% | |
Senior notes | Senior Notes due October 2025, interest payable semi-annually at 5.000% (2025 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 900 | 900 | |
Debt instrument, stated percentage | 5.00% | ||
Senior notes | Senior Notes due August 2026, interest payable semi-annually at 3.000% (2026 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 1,250 | 1,250 | |
Debt instrument, stated percentage | 3.00% | ||
Senior notes | Senior Euro Notes due May 2027, interest payable annually at 1.500% (2027 Euro Notes) | |||
Long-Term Debt | |||
Senior notes | $ 1,365 | 0 | |
Debt instrument, stated percentage | 1.50% | 1.50% | |
Senior notes | Senior Notes due May 2028, interest payable semi-annually at 4.250% (2028 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 400 | 400 | |
Debt instrument, stated percentage | 4.25% | ||
Senior notes | Senior Notes due May 2029, interest payable semi-annually at 3.750% (2029 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 1,000 | 0 | |
Debt instrument, stated percentage | 3.75% | 3.75% | |
Senior notes | Senior Euro Notes due May 2030, interest payable annually at 2.000% (2030 Euro Notes) | |||
Long-Term Debt | |||
Senior notes | $ 1,092 | 0 | |
Debt instrument, stated percentage | 2.00% | ||
Senior notes | Senior GBP Notes due May 2031, interest payable annually at 3.360% (2031 GBP Notes) | |||
Long-Term Debt | |||
Senior notes | $ 769 | 0 | |
Debt instrument, stated percentage | 3.36% | 3.36% | |
Senior notes | Senior Euro Notes due May 2039, interest payable annually at 2.950% (2039 Euro Notes) | |||
Long-Term Debt | |||
Senior notes | $ 546 | 0 | |
Debt instrument, stated percentage | 2.95% | 2.95% | |
Senior notes | Senior Notes due August 2046, interest payable semi-annually at 4.500% (2046 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 500 | 500 | |
Debt instrument, stated percentage | 4.50% | ||
Senior notes | Senior Notes due May 2048, interest payable semi-annually at 4.750% (2048 Notes) | |||
Long-Term Debt | |||
Senior notes | $ 600 | $ 600 | |
Debt instrument, stated percentage | 4.75% |
Debt - Short-term Debt (Details
Debt - Short-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Short-term Debt | ||
Other | $ 163 | $ 17 |
Total short-term borrowings | 3,169 | 267 |
Euro Commercial Paper Program | Commercial paper | FIS Credit Agreements | ||
Short-term Debt | ||
Commercial paper | 2,856 | 0 |
Commercial Paper Program | Commercial paper | FIS Credit Agreements | ||
Short-term Debt | ||
Commercial paper | $ 150 | $ 250 |
Debt - (Narrative) (Details)
Debt - (Narrative) (Details) | May 29, 2019USD ($) | Sep. 21, 2018USD ($) | Sep. 30, 2019USD ($) | May 21, 2019USD ($) | May 21, 2019EUR (€) | May 21, 2019GBP (£) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017EUR (€) | Sep. 30, 2017GBP (£) |
Debt Instrument | |||||||||||
Debt issuance cost | $ 108,000,000 | ||||||||||
Fair value aggregate difference | $ 1,146,000,000 | ||||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument | |||||||||||
Weighted average interest rate | 3.08% | ||||||||||
Credit facility outstanding amount | $ 560,000,000 | $ 208,000,000 | |||||||||
Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 3 months | ||||||||||
FIS Credit Agreements | |||||||||||
Debt Instrument | |||||||||||
Unamortized discount (premium), net | $ 31,000,000 | ||||||||||
Debt issuance cost | 108,000,000 | ||||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument | |||||||||||
Credit facility outstanding amount | 560,000,000 | ||||||||||
Borrowing capacity remaining | $ 4,937,000,000 | ||||||||||
Revolving Credit Facility | FIS Credit Agreements | |||||||||||
Debt Instrument | |||||||||||
Credit facility maximum borrowing amount | $ 5,500,000,000 | $ 4,000,000,000 | $ 3,000,000,000 | ||||||||
Senior Notes due October 2020, interest payable semi-annually at 3.625% (2020 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 1 month | ||||||||||
Senior Notes due October 2022, interest payable semi-annually at 4.500% (2022 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 2 months | ||||||||||
Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 1 month | ||||||||||
Senior Notes due June 2024, interest payable semi-annually at 3.875% (2024 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 3 months | ||||||||||
Senior Notes due April 2023, interest payable semi-annually at 3.500% (2023 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 3 months | ||||||||||
Senior Notes due May 2028, interest payable semi-annually at 4.250% (2028 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 3 months | ||||||||||
Senior Notes due August 2046, interest payable semi-annually at 4.500% (2046 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 6 months | ||||||||||
Senior Notes due May 2048, interest payable semi-annually at 4.750% (2048 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 6 months | ||||||||||
Senior Notes due August 2021, interest payable semi-annually at 2.250% (2021 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 1 month | ||||||||||
Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 1 month | ||||||||||
Senior Notes due October 2025, interest payable semi-annually at 5.000% (2025 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 3 months | ||||||||||
Senior Notes due August 2026, interest payable semi-annually at 3.000% (2026 Notes) | Minimum | |||||||||||
Debt Instrument | |||||||||||
Percentage of redemption price | 100.00% | ||||||||||
Trigger price, period prior to maturity | 3 months | ||||||||||
Commercial paper | Euro Commercial Paper Program | FIS Credit Agreements | |||||||||||
Debt Instrument | |||||||||||
Credit facility maximum borrowing amount | $ 4,700,000,000 | ||||||||||
Debt instrument, term | 183 days | ||||||||||
Weighted average interest rate | (0.17%) | ||||||||||
Commercial paper | Commercial Paper Program | FIS Credit Agreements | |||||||||||
Debt Instrument | |||||||||||
Credit facility maximum borrowing amount | $ 4,000,000,000 | ||||||||||
Debt instrument, term | 397 days | ||||||||||
Commercial paper | Revolving Credit Facility | FIS Credit Agreements | |||||||||||
Debt Instrument | |||||||||||
Weighted average interest rate | 2.28% | ||||||||||
Bridge loan | Letter of credit | |||||||||||
Debt Instrument | |||||||||||
Credit facility maximum borrowing amount | $ 9,500,000,000 | ||||||||||
Letter of credit | |||||||||||
Debt Instrument | |||||||||||
Credit facility outstanding amount | $ 3,000,000 | ||||||||||
Senior notes | Senior Euro Floating Rate Notes due May 2021, interest payable quarterly (Floating Rate Notes) (1) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | € | € 500,000,000 | ||||||||||
Weighted average interest rate | 0.00% | ||||||||||
Senior notes | Senior Euro Notes due May 2021, interest payable annually at 0.125% (May 2021 Euro Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | € | € 500,000,000 | ||||||||||
Debt instrument, stated percentage | 0.125% | 0.125% | 0.125% | 0.125% | |||||||
Senior notes | Senior Euro Notes due May 2023, interest payable annually at 0.750% (2023 Euro Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | € | € 1,250,000,000 | ||||||||||
Debt instrument, stated percentage | 0.75% | ||||||||||
Senior notes | Senior Euro Notes due May 2027, interest payable annually at 1.500% (2027 Euro Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | € | € 1,250,000,000 | ||||||||||
Debt instrument, stated percentage | 1.50% | 1.50% | 1.50% | 1.50% | |||||||
Senior notes | Senior Euro Notes due May 2030, interest payable annually at 2.000% (2030 Euro Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | € | € 1,000,000,000 | ||||||||||
Debt instrument, stated percentage | 2.00% | ||||||||||
Senior notes | Senior Euro Notes due May 2039, interest payable annually at 2.950% (2039 Euro Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | € | € 500,000,000 | ||||||||||
Debt instrument, stated percentage | 2.95% | 2.95% | 2.95% | 2.95% | |||||||
Senior notes | Senior GBP Notes due May 2025, interest payable annually at 2.602% (2025 GBP Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | £ | £ 625,000,000 | ||||||||||
Debt instrument, stated percentage | 2.602% | 2.602% | 2.602% | 2.602% | |||||||
Senior notes | Senior GBP Notes due May 2031, interest payable annually at 3.360% (2031 GBP Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | £ | £ 625,000,000 | ||||||||||
Debt instrument, stated percentage | 3.36% | 3.36% | 3.36% | 3.36% | |||||||
Senior notes | Senior Notes due May 2029, interest payable semi-annually at 3.750% (2029 Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | $ 1,000,000,000 | ||||||||||
Debt instrument, stated percentage | 3.75% | 3.75% | 3.75% | 3.75% | |||||||
Senior notes | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | € | € 500,000,000 | ||||||||||
Debt instrument, stated percentage | 1.10% | ||||||||||
Senior notes | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | Fair Value Hedging | Interest rate swap | |||||||||||
Debt Instrument | |||||||||||
Derivative asset fair value | $ 18,000,000 | ||||||||||
Senior notes | Senior Notes due October 2020, interest payable semi-annually at 3.625% (2020 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 3.625% | ||||||||||
Senior notes | Senior Notes due October 2022, interest payable semi-annually at 4.500% (2022 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 4.50% | ||||||||||
Senior notes | Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | £ | £ 300,000,000 | ||||||||||
Debt instrument, stated percentage | 1.70% | ||||||||||
Senior notes | Senior Notes due June 2024, interest payable semi-annually at 3.875% (2024 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 3.875% | ||||||||||
Senior notes | Senior Notes due April 2023, interest payable semi-annually at 3.500% (2023 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 3.50% | ||||||||||
Senior notes | Senior Notes due May 2028, interest payable semi-annually at 4.250% (2028 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 4.25% | ||||||||||
Senior notes | Senior Notes due August 2046, interest payable semi-annually at 4.500% (2046 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 4.50% | ||||||||||
Senior notes | Senior Notes due May 2048, interest payable semi-annually at 4.750% (2048 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 4.75% | ||||||||||
Senior notes | Senior Notes due August 2021, interest payable semi-annually at 2.250% (2021 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 2.25% | ||||||||||
Senior notes | Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | |||||||||||
Debt Instrument | |||||||||||
Principal amount of debt | € | € 500,000,000 | ||||||||||
Debt instrument, stated percentage | 0.40% | ||||||||||
Senior notes | Senior Notes due October 2025, interest payable semi-annually at 5.000% (2025 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 5.00% | ||||||||||
Senior notes | Senior Notes due August 2026, interest payable semi-annually at 3.000% (2026 Notes) | |||||||||||
Debt Instrument | |||||||||||
Debt instrument, stated percentage | 3.00% |
Debt - (Principal Maturities of
Debt - (Principal Maturities of Long-Term Debt) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Principal maturities of long-term debt | |
Debt issuance costs, net of accumulated amortization | $ (108) |
FIS Credit Agreements | |
Principal maturities of long-term debt | |
2019 | 26 |
2020 | 1,222 |
2021 | 2,453 |
2022 | 691 |
2023 | 2,633 |
Thereafter | 10,138 |
Total principal payments | 17,163 |
Debt issuance costs, net of accumulated amortization | (108) |
Total long-term debt | $ 17,055 |
Financial Instruments - (Narrat
Financial Instruments - (Narratives) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
May 31, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019EUR (€) | Sep. 30, 2019GBP (£) | Jun. 30, 2019USD ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2019GBP (£) | May 21, 2019GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Sep. 30, 2017EUR (€) | Sep. 30, 2017GBP (£) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Notional amount | $ 0 | ||||||||||||||
Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | Senior notes | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Principal amount of debt | € | € 500,000,000 | ||||||||||||||
Senior GBP Notes due May 2031, interest payable annually at 3.360% (2031 GBP Notes) | Senior notes | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Principal amount of debt | £ | £ 625,000,000 | ||||||||||||||
Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | Senior notes | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Principal amount of debt | € | € 500,000,000 | ||||||||||||||
Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | Senior notes | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Principal amount of debt | £ | £ 300,000,000 | ||||||||||||||
Cash Flow Hedging | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Notional amount | $ 0 | $ 0 | 0 | ||||||||||||
Net Investment Hedges | Floating Rate Notes, May 2021 Euro Notes, 2023 Euro Notes, 2027 Euro Notes, 2030 Euro Notes, 2039 Euro Notes, and ECP Notes | Senior notes | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Notional amount | € | € 7,616,000,000 | ||||||||||||||
Net Investment Hedges | Senior GBP Notes due May 2031, interest payable annually at 3.360% (2031 GBP Notes) | Senior notes | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Notional amount | £ | £ 264,000,000 | ||||||||||||||
Currency forward contract | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Gain from settlement of derivative contract | 1,000,000 | ||||||||||||||
Loss on the settlement of derivative contract | 14,000,000 | ||||||||||||||
Currency forward contract | Net Investment Hedges | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Amount of gains reclassified from AOCE into income | 185,000,000 | $ 10,000,000 | $ 198,000,000 | $ 38,000,000 | |||||||||||
Interest rate swap | Cash Flow Hedging | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Notional amount | $ 500,000,000 | € 1,500,000,000 | £ 500,000,000 | ||||||||||||
Payments for the settlement of derivatives classified as hedging | $ 17,000,000 | ||||||||||||||
Interest rate swap | Cash Flow Hedging | Minimum | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Estimated period to transfer derivative OCI to interest expense | 4 years | ||||||||||||||
Interest rate swap | Cash Flow Hedging | Maximum | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Estimated period to transfer derivative OCI to interest expense | 12 years | ||||||||||||||
Interest rate swap | Fair Value Hedging | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Notional amount | € | € 500,000,000 | ||||||||||||||
Interest rate swap | Fair Value Hedging | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | Senior notes | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Derivative asset fair value | 18,000,000 | $ 18,000,000 | |||||||||||||
Interest rate swap | Net Investment Hedges | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||||||||||
Notional amount | $ 716,000,000 | ||||||||||||||
Derivative asset fair value | $ 35,000,000 | $ 35,000,000 |
Operating Leases - (Balance She
Operating Leases - (Balance Sheet Classification) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease ROU assets | $ 521 |
Operating lease liabilities, current | 129 |
Operating lease liabilities, noncurrent | 425 |
Operating lease liability | $ 554 |
Operating Leases - (Narratives)
Operating Leases - (Narratives) (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease cost | $ 39 | $ 103 |
Variable lease cost | $ 10 | 25 |
Operating lease payments | 99 | |
Right of use asset obtained in exchange for operating lease liability | $ 51 | |
Weighted average lease term | 5 years 10 months 24 days | 5 years 10 months 24 days |
Weighted average discount rate (percent) | 3.70% | 3.70% |
Operating Leases - (Maturities
Operating Leases - (Maturities of Operating Leases) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 remaining period | $ 34 |
2020 | 147 |
2021 | 121 |
2022 | 86 |
2023 | 64 |
Thereafter | 181 |
Total lease payments | 633 |
Less: Imputed interest | (79) |
Total operating lease liabilities | $ 554 |
Operating Leases - (Operating L
Operating Leases - (Operating Lease Minimum Future Lease Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 121 |
2020 | 104 |
2021 | 80 |
2022 | 51 |
2023 | 38 |
Thereafter | 86 |
Total | $ 480 |
Commitments and Contingencies -
Commitments and Contingencies - (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)claim | |
Loss Contingencies | |
Tax receivable agreement commitment (percent) | 85.00% |
Tax receivable agreement obligations | $ 919 |
Pending Litigation | Potential Tax Liability | Secretariat of the Federal Revenue Bureau of Brazil | |
Loss Contingencies | |
Loss contingency, value of damages sought | $ 14 |
Loss contingency, number of claims pending | claim | 13 |
Loss contingency, number of potential new claims filed | claim | 25 |
Loss contingency, potential additional claims amount sought | $ 50 |
Loss contingency, number of total pending and potential pending claims | claim | 38 |
Pending Litigation | Potential Tax Liability | Secretariat of the Federal Revenue Bureau of Brazil | Maximum | |
Loss Contingencies | |
Loss contingency, estimate of possible loss | $ 64 |
Reliance Trust Claims | Pending Litigation | |
Loss Contingencies | |
Loss contingency, value of damages sought | $ 115 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Commitments (Details) - Obligations under TRA $ in Millions | Sep. 30, 2019USD ($) |
Other Commitments | |
Total | $ 919 |
2019 Remaining Period | 0 |
1-3 Years | 124 |
3-5 Years | 103 |
More than 5 Years | $ 692 |
Related Party Transactions - (N
Related Party Transactions - (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction | ||||||
Asset impairments | $ 87 | $ 95 | $ 87 | $ 95 | ||
Dividends paid | $ 441 | 316 | ||||
Disposed of by Sale, Not Discontinued Operations | Brazilian Venture | ||||||
Related Party Transaction | ||||||
Asset impairments | $ 95 | 95 | ||||
Cardinal Holdings | ||||||
Related Party Transaction | ||||||
Ownership percentage | 38.00% | 38.00% | 38.00% | |||
Equity method investment | $ 130 | $ 130 | $ 151 | |||
Banco Bradesco | Corporate joint venture | ||||||
Related Party Transaction | ||||||
Ownership percentage | 51.00% | |||||
Banco Bradesco | Corporate joint venture | ||||||
Related Party Transaction | ||||||
Processing and services revenue | 77 | $ 244 | ||||
Dividends paid | $ 23 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to FIS common stockholders | $ 154 | $ 154 | $ 456 | $ 548 |
Weighted average shares outstanding — basic (in shares) | 516 | 328 | 388 | 329 |
Plus: Common stock equivalent shares (in shares) | 8 | 3 | 8 | 4 |
Weighted average shares outstanding — diluted (in shares) | 524 | 331 | 396 | 333 |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | $ 0.30 | $ 0.47 | $ 1.18 | $ 1.67 |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | $ 0.29 | $ 0.47 | $ 1.15 | $ 1.65 |
Net Earnings per Share - (Narra
Net Earnings per Share - (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 20, 2017 | |
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 1 | 1 | 1 | |
Stock repurchase program authorized amount | $ 4,000,000,000 |
Segment Information - (Narrativ
Segment Information - (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)country | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)country | Sep. 30, 2018USD ($) | |
Segment Reporting Information | ||||
Capital lease obligations | $ 24 | $ 1 | $ 59 | $ 1 |
Worldpay | ||||
Segment Reporting Information | ||||
Consolidation and other cost | $ 25 | $ 50 | ||
SunGard | ||||
Segment Reporting Information | ||||
Acquisition, integration and other costs | $ 16 | $ 122 | ||
Banking Solutions | ||||
Segment Reporting Information | ||||
Number of countries we operate in (more than) | country | 130 | 130 | ||
Capital Market Solutions | ||||
Segment Reporting Information | ||||
Number of countries we operate in (more than) | country | 50 | 50 |
Segment Information - (Summariz
Segment Information - (Summarized Financial Information and Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Information | ||||
Revenue | $ 2,822 | $ 2,084 | $ 6,991 | $ 6,256 |
Depreciation and amortization (including purchase accounting amortization) | 1,488 | 1,060 | ||
Asset impairments | 87 | 95 | 87 | 95 |
Interest expense, net | 95 | 80 | 242 | 225 |
Other income (expense) unallocated | 164 | (58) | (8) | (60) |
Provision (benefit) for income taxes | 48 | 37 | 119 | 122 |
Net earnings attributable to noncontrolling interest | 2 | 9 | 3 | 23 |
Net earnings attributable to FIS common stockholders | 154 | 154 | 456 | 548 |
Capital expenditures | 283 | 149 | 603 | 465 |
Merchant Solutions | ||||
Segment Information | ||||
Capital expenditures | 47 | 3 | 52 | 8 |
Banking Solutions | ||||
Segment Information | ||||
Capital expenditures | 157 | 99 | 360 | 311 |
Capital Market Solutions | ||||
Segment Information | ||||
Capital expenditures | 59 | 46 | 167 | 142 |
Corporate and Other | ||||
Segment Information | ||||
Revenue | 0 | 12 | 0 | 43 |
Capital expenditures | 20 | 1 | 24 | 4 |
Operating Segments | ||||
Segment Information | ||||
Revenue | 2,822 | 2,084 | 6,991 | 6,256 |
Operating expenses | 2,682 | 1,742 | 6,145 | 5,267 |
Depreciation and amortization (including purchase accounting amortization) | 752 | 354 | 1,488 | 1,060 |
EBITDA | 892 | 696 | 2,334 | 2,049 |
Acquisition deferred revenue adjustment | 1 | 4 | ||
Acquisition, integration and other costs | 213 | 16 | 293 | 122 |
Asset impairments | 87 | 95 | 87 | 95 |
Adjusted EBITDA | 1,192 | 808 | 2,714 | 2,270 |
Operating Segments | Merchant Solutions | ||||
Segment Information | ||||
Revenue | 720 | 50 | 896 | 205 |
Operating expenses | 393 | 43 | 536 | 173 |
Depreciation and amortization (including purchase accounting amortization) | 44 | 3 | 50 | 8 |
EBITDA | 371 | 10 | 410 | 40 |
Acquisition deferred revenue adjustment | 0 | 0 | ||
Acquisition, integration and other costs | 0 | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 | 0 |
Adjusted EBITDA | 371 | 10 | 410 | 40 |
Operating Segments | Banking Solutions | ||||
Segment Information | ||||
Revenue | 1,491 | 1,433 | 4,317 | 4,238 |
Operating expenses | 982 | 980 | 2,938 | 2,956 |
Depreciation and amortization (including purchase accounting amortization) | 132 | 124 | 393 | 364 |
EBITDA | 641 | 577 | 1,772 | 1,646 |
Acquisition deferred revenue adjustment | 0 | 0 | ||
Acquisition, integration and other costs | 0 | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 | 0 |
Adjusted EBITDA | 641 | 577 | 1,772 | 1,646 |
Operating Segments | Capital Market Solutions | ||||
Segment Information | ||||
Revenue | 611 | 589 | 1,778 | 1,770 |
Operating expenses | 388 | 354 | 1,149 | 1,126 |
Depreciation and amortization (including purchase accounting amortization) | 57 | 39 | 161 | 117 |
EBITDA | 280 | 274 | 790 | 761 |
Acquisition deferred revenue adjustment | 0 | 0 | ||
Acquisition, integration and other costs | 0 | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 | 0 |
Adjusted EBITDA | 280 | 274 | 790 | 761 |
Operating Segments | Corporate and Other | ||||
Segment Information | ||||
Revenue | 0 | 12 | 0 | 43 |
Operating expenses | 919 | 365 | 1,522 | 1,012 |
Depreciation and amortization (including purchase accounting amortization) | 519 | 188 | 884 | 571 |
EBITDA | (400) | (165) | (638) | (398) |
Acquisition deferred revenue adjustment | 1 | 4 | ||
Acquisition, integration and other costs | 213 | 16 | 293 | 122 |
Asset impairments | 87 | 95 | 87 | 95 |
Adjusted EBITDA | (100) | (53) | (258) | (177) |
Segment Reconciling Items | ||||
Segment Information | ||||
EBITDA | 892 | 696 | 2,334 | 2,049 |
Interest expense, net | 95 | 80 | 242 | 225 |
Depreciation and amortization | 206 | 173 | 594 | 511 |
Purchase accounting amortization | 546 | 181 | 894 | 549 |
Other income (expense) unallocated | 159 | (62) | (26) | (71) |
Provision (benefit) for income taxes | 48 | 37 | 119 | 122 |
Net earnings attributable to noncontrolling interest | $ 2 | $ 9 | $ 3 | $ 23 |