Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Cover | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Address | 601 Riverside Avenue | ||
Entity Address, City | Jacksonville | ||
Entity Address, State | FL | ||
Entity Address, Zip Code | 32204 | ||
City Area Code | 904 | ||
Local Phone Number | 438-6000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 82,928,591,927 | ||
Entity Common Stock, Shares Outstanding (in shares) | 621,128,642 | ||
Documents Incorporated by Reference | The information in Part III hereof is incorporated herein by reference to the registrant’s Proxy Statement on Schedule 14A for the fiscal year ended December 31, 2020, to be filed within 120 days after the close of the fiscal year that is the subject of this Report. | ||
Entity Central Index Key | 0001136893 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Common Stock, par value $0.01 per share | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | FIS | ||
Security Exchange Name | NYSE | ||
Floating Rate Senior Notes due 2021 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | Floating Rate Senior Notes due 2021 | ||
Trading Symbol | FIS21B | ||
Security Exchange Name | NYSE | ||
0.125% Senior Notes due 2021 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 0.125% Senior Notes due 2021 | ||
Trading Symbol | FIS21C | ||
Security Exchange Name | NYSE | ||
1.700% Senior Notes due 2022 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 1.700% Senior Notes due 2022 | ||
Trading Symbol | FIS22B | ||
Security Exchange Name | NYSE | ||
0.125% Senior Notes due 2022 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 0.125% Senior Notes due 2022 | ||
Trading Symbol | FIS22C | ||
Security Exchange Name | NYSE | ||
0.750% Senior Notes due 2023 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 0.750% Senior Notes due 2023 | ||
Trading Symbol | FIS23A | ||
Security Exchange Name | NYSE | ||
1.100% Senior Notes due 2024 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 1.100% Senior Notes due 2024 | ||
Trading Symbol | FIS24A | ||
Security Exchange Name | NYSE | ||
2.602% Senior Notes due 2025 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 2.602% Senior Notes due 2025 | ||
Trading Symbol | FIS25A | ||
Security Exchange Name | NYSE | ||
0.625% Senior Notes due 2025 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 0.625% Senior Notes due 2025 | ||
Trading Symbol | FIS25B | ||
Security Exchange Name | NYSE | ||
1.500% Senior Notes due 2027 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 1.500% Senior Notes due 2027 | ||
Trading Symbol | FIS27 | ||
Security Exchange Name | NYSE | ||
1.000% Senior Notes due 2028 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 1.000% Senior Notes due 2028 | ||
Trading Symbol | FIS28 | ||
Security Exchange Name | NYSE | ||
2.250% Senior Notes due 2029 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 2.250% Senior Notes due 2029 | ||
Trading Symbol | FIS29 | ||
Security Exchange Name | NYSE | ||
2.000% Senior Notes due 2030 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 2.000% Senior Notes due 2030 | ||
Trading Symbol | FIS30 | ||
Security Exchange Name | NYSE | ||
3.360% Senior Notes due 2031 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 3.360% Senior Notes due 2031 | ||
Trading Symbol | FIS31 | ||
Security Exchange Name | NYSE | ||
2.950% Senior Notes due 2039 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 2.950% Senior Notes due 2039 | ||
Trading Symbol | FIS39 | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,959 | $ 1,152 |
Settlement deposits and merchant float | 3,252 | 2,882 |
Trade receivables, net of allowance for credit losses of $82 and $60, respectively | 3,314 | 3,242 |
Contract assets | 140 | 124 |
Settlement receivables | 662 | 647 |
Other receivables | 317 | 337 |
Prepaid expenses and other current assets | 254 | 308 |
Total current assets | 9,898 | 8,692 |
Property and equipment, net | 887 | 900 |
Goodwill | 53,268 | 52,242 |
Intangible assets, net | 13,928 | 15,798 |
Software, net | 3,370 | 3,204 |
Other noncurrent assets | 1,574 | 2,303 |
Deferred contract costs, net | 917 | 667 |
Total assets | 83,842 | 83,806 |
Current liabilities: | ||
Accounts payable, accrued and other liabilities | 2,482 | 2,374 |
Settlement payables | 4,934 | 4,228 |
Deferred revenue | 881 | 817 |
Short-term borrowings | 2,750 | 2,823 |
Current portion of long-term debt | 1,314 | 140 |
Total current liabilities | 12,361 | 10,382 |
Long-term debt, excluding current portion | 15,951 | 17,229 |
Deferred income taxes | 4,017 | 4,281 |
Other noncurrent liabilities | 1,967 | 2,406 |
Deferred revenue | 59 | 52 |
Total liabilities | 34,355 | 34,350 |
Redeemable noncontrolling interest | 174 | 0 |
FIS stockholders’ equity: | ||
Preferred stock, $0.01 par value, 200 shares authorized, none issued and outstanding as of December 31, 2020 and 2019 | 0 | 0 |
Common stock, $0.01 par value, 750 shares authorized, 621 and 615 shares issued as of December 31, 2020 and 2019, respectively | 6 | 6 |
Additional paid in capital | 45,947 | 45,358 |
Retained earnings | 3,440 | 4,161 |
Accumulated other comprehensive earnings (loss) | 57 | (33) |
Treasury stock, $0.01 par value, 1 and less than 1 common shares as of December 31, 2020 and 2019, respectively, at cost | (150) | (52) |
Total FIS stockholders’ equity | 49,300 | 49,440 |
Noncontrolling interest | 13 | 16 |
Total equity | 49,313 | 49,456 |
Total liabilities, redeemable noncontrolling interest and equity | $ 83,842 | $ 83,806 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Trade receivables, net | $ 82 | $ 60 |
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 outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (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 | 750,000,000 |
Common stock, shares issued (in shares) | 621,000,000 | 615,000,000 |
Treasury stock, shares (in shares) | 1,000,000 | 1,000,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 12,552 | $ 10,333 | $ 8,423 |
Cost of revenue | 8,348 | 6,610 | 5,569 |
Gross profit | 4,204 | 3,723 | 2,854 |
Selling, general and administrative expenses | 3,516 | 2,667 | 1,301 |
Asset impairments | 136 | 87 | 95 |
Operating income | 552 | 969 | 1,458 |
Other income (expense): | |||
Interest income | 5 | 52 | 17 |
Interest expense | (339) | (389) | (314) |
Other income (expense), net | 48 | (219) | (57) |
Total other income (expense), net | (286) | (556) | (354) |
Earnings (loss) before income taxes and equity method investment earnings (loss) | 266 | 413 | 1,104 |
Provision (benefit) for income taxes | 96 | 100 | 208 |
Equity method investment earnings (loss) | (6) | (10) | (15) |
Net earnings | 164 | 303 | 881 |
Net (earnings) loss attributable to noncontrolling interest | (6) | (5) | (35) |
Net earnings attributable to FIS common stockholders | $ 158 | $ 298 | $ 846 |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | $ 0.26 | $ 0.67 | $ 2.58 |
Weighted average shares outstanding — basic (in shares) | 619 | 445 | 328 |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | $ 0.25 | $ 0.66 | $ 2.55 |
Weighted average shares outstanding — diluted (in shares) | 627 | 451 | 332 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 164 | $ 303 | $ 881 |
Other comprehensive earnings (loss), before tax: | |||
Unrealized gain (loss) on derivatives | 0 | (17) | 0 |
Adjustment for (gain) loss reclassified to net earnings | 2 | 2 | 0 |
Unrealized gain (loss) on derivatives, net | 2 | (15) | 0 |
Foreign currency translation adjustments | (78) | 646 | (120) |
Minimum pension liability adjustments | 5 | (38) | 5 |
Other comprehensive earnings (loss), before tax | (71) | 593 | (115) |
Provision for income tax (expense) benefit related to items of other comprehensive earnings | 161 | (196) | (1) |
Other comprehensive earnings (loss), net of tax | 90 | 397 | (116) |
Comprehensive earnings (loss) | 254 | 700 | 765 |
Net (earnings) loss attributable to noncontrolling interest | (6) | (5) | (35) |
Other comprehensive (earnings) loss attributable to noncontrolling interest | 0 | 0 | 18 |
Comprehensive earnings (loss) attributable to FIS common stockholders | $ 248 | $ 695 | $ 748 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common shares | Treasury shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings (loss) | Noncontrolling interest | |
Beginning balance (in shares) at Dec. 31, 2017 | 432 | 99 | ||||||
Beginning balance at Dec. 31, 2017 | $ 10,820 | $ 4 | $ (3,604) | $ 10,534 | $ 4,109 | $ (332) | $ 109 | [1] |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock (in shares) | 1 | |||||||
Issuance of restricted stock | 0 | |||||||
Exercise of stock options (in shares) | (4) | |||||||
Exercise of stock options | 290 | $ 155 | 135 | |||||
Treasury shares held for taxes due upon exercise of stock options | (32) | $ (22) | (10) | |||||
Purchases of treasury stock (in shares) | (11) | |||||||
Purchases of treasury stock | (1,216) | $ (1,216) | ||||||
Stock-based compensation | 84 | 84 | ||||||
Cash dividends declared and other distributions | (451) | (422) | (29) | [1] | ||||
Brazilian Venture divestiture | (33) | 57 | (90) | [1] | ||||
Other | (5) | (5) | ||||||
Net earnings | 881 | 846 | 35 | [1] | ||||
Other comprehensive earnings (loss), net of tax | (116) | (98) | (18) | [1] | ||||
Ending balance (in shares) at Dec. 31, 2018 | 433 | 106 | ||||||
Ending balance at Dec. 31, 2018 | 10,222 | $ 4 | $ (4,687) | 10,800 | 4,528 | (430) | 7 | [1] |
Increase (Decrease) in Stockholders' Equity | ||||||||
Worldpay acquisition (in shares) | 180 | 109 | ||||||
Worldpay acquisition | 39,095 | $ 2 | $ 5,042 | 34,040 | 11 | [1] | ||
Issuance of restricted stock (in shares) | 1 | |||||||
Issuance of restricted stock | 2 | $ 2 | ||||||
Exercise of stock options (in shares) | (1) | (1) | ||||||
Exercise of stock options | 163 | $ 46 | 117 | |||||
Treasury shares held for taxes due upon exercise of stock options | (56) | $ (55) | (1) | |||||
Purchases of treasury stock (in shares) | (4) | |||||||
Purchases of treasury stock | (400) | $ (400) | ||||||
Stock-based compensation | 402 | 402 | ||||||
Cash dividends declared and other distributions | (665) | (658) | (7) | [1] | ||||
Other | (7) | (7) | ||||||
Net earnings | 303 | 298 | 5 | [1] | ||||
Other comprehensive earnings (loss), net of tax | 397 | 397 | 0 | [1] | ||||
Ending balance (in shares) at Dec. 31, 2019 | 615 | 0 | ||||||
Ending balance at Dec. 31, 2019 | 49,456 | $ 6 | $ (52) | 45,358 | 4,161 | (33) | 16 | [1] |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock (in shares) | 2 | |||||||
Issuance of restricted stock | 0 | $ 7 | (7) | |||||
Exercise of stock options (in shares) | (4) | |||||||
Exercise of stock options | 317 | 317 | ||||||
Treasury shares held for taxes due upon exercise of stock options (in shares) | 1 | |||||||
Treasury shares held for taxes due upon exercise of stock options | (112) | $ (105) | (7) | |||||
Stock-based compensation | 283 | 283 | ||||||
Cash dividends declared and other distributions | (880) | (873) | (7) | [1] | ||||
Other | (3) | 3 | (6) | |||||
Net earnings | 164 | |||||||
Net earnings | 162 | 158 | 4 | |||||
Other comprehensive earnings (loss), net of tax | 90 | 90 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 621 | 1 | ||||||
Ending balance at Dec. 31, 2020 | $ 49,313 | $ 6 | $ (150) | $ 45,947 | $ 3,440 | $ 57 | $ 13 | [1] |
[1] | Excludes redeemable noncontrolling interest that is not considered equity. See Note 3, Virtus Acquisition , for additional information. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 1.40 | $ 1.40 | $ 1.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net earnings | $ 164 | $ 303 | $ 881 |
Adjustment to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 3,714 | 2,444 | 1,420 |
Amortization of debt issue costs | 31 | 24 | 17 |
Acquisition-related financing foreign exchange | 0 | (125) | 0 |
Asset impairments | 136 | 87 | 95 |
Loss (gain) on sale of businesses, investments and other | 9 | 18 | 50 |
Loss on extinguishment of debt | 0 | 217 | 1 |
Stock-based compensation | 283 | 402 | 84 |
Deferred income taxes | (206) | (109) | (116) |
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | |||
Trade and other receivables | (75) | (161) | 78 |
Contract assets | (14) | 17 | (20) |
Settlement activity | 862 | (165) | 9 |
Prepaid expenses and other assets | (264) | (129) | 4 |
Deferred contract costs | (473) | (379) | (248) |
Deferred revenue | 58 | 40 | (100) |
Accounts payable, accrued liabilities, and other liabilities | 217 | (74) | (162) |
Net cash provided by operating activities | 4,442 | 2,410 | 1,993 |
Cash flows from investing activities: | |||
Additions to property and equipment | (263) | (200) | (127) |
Additions to software | (866) | (628) | (495) |
Acquisitions, net of cash acquired | (469) | (6,632) | 0 |
Net proceeds from sale of businesses and investments | 0 | 49 | (16) |
Other investing activities, net | 684 | (90) | (30) |
Net cash provided by (used in) investing activities | (914) | (7,501) | (668) |
Cash flows from financing activities: | |||
Borrowings | 47,695 | 33,352 | 26,371 |
Repayment of borrowings and other financing obligations | (49,067) | (24,672) | (26,148) |
Debt issuance costs | 0 | (101) | (30) |
Proceeds from stock issued under stock-based compensation plans | 332 | 161 | 288 |
Treasury stock activity | (112) | (453) | (1,255) |
Dividends paid | (868) | (656) | (421) |
Other financing activities, net | (731) | (50) | (41) |
Net cash provided by (used in) financing activities | (2,751) | 7,581 | (1,236) |
Effect of foreign currency exchange rate changes on cash | 42 | 18 | (51) |
Net increase (decrease) in cash and cash equivalents | 819 | 2,508 | 38 |
Cash and cash equivalents, beginning of year | 3,211 | 703 | 665 |
Cash and cash equivalents, end of year | 4,030 | 3,211 | 703 |
Supplemental cash flow information: | |||
Cash paid for interest | 428 | 332 | 298 |
Cash paid for income taxes | $ 282 | $ 321 | $ 503 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. On July 31, 2019, FIS completed the acquisition of Worldpay Inc. ("Worldpay"), and Worldpay's results of operations and financial position are included in the consolidated financial statements from and after the date of acquisition. See Note 3 for additional discussion. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The following describes the significant accounting policies of the Company used in preparing the accompanying consolidated financial statements. (a) Principles of Consolidation The consolidated financial statements include the accounts of FIS, its wholly-owned subsidiaries and subsidiaries that are majority-owned. All significant intercompany profits, transactions and balances have been eliminated in consolidation. (b) Cash and Cash Equivalents The Company considers all cash on hand, money market funds and other highly liquid investments with original maturities of three months or less to be cash and cash equivalents. As part of the Company's payment processing business, the Company provides cash settlement services to financial institutions and state and local governments. These services involve the movement of funds between the various parties associated with automated teller machines ("ATM"), point-of-sale or electronic benefit transactions ("EBT"), and this activity results in a balance due to the Company at the end of each business day that it recoups over the next few business days. The in-transit balances due to the Company are included in Cash and cash equivalents on the consolidated balance sheets. The carrying amounts reported in the consolidated balance sheets for these instruments approximate their fair value. The Company records restricted cash in captions other than Cash and cash equivalents in the consolidated balance sheets. The reconciliation between Cash and cash equivalents in the consolidated balance sheets and the consolidated statements of cash flows is as follows (in millions): December 31. 2020 2019 Cash and cash equivalents on the consolidated balance sheets $ 1,959 $ 1,152 Merchant float restricted cash (in Settlement deposits and merchant float) (see Note 2(f)) 2,071 1,519 Other restricted cash (see Note 11 - Visa Europe and contingent value rights) — 540 Total Cash and cash equivalents per the consolidated statements of cash flows $ 4,030 $ 3,211 (c) Fair Value Measurements Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations In a business combination transaction, an acquirer recognizes, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree and generally measures these items at their acquisition date fair values. Goodwill is recorded as the residual amount by which the purchase price exceeds the fair value of the net assets acquired. Fair values are determined using the framework outlined below under Fair Value Hierarchy and the methodologies addressed in the individual subheadings. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we report provisional amounts in the financial statements for the items for which the accounting is incomplete. Adjustments to provisional amounts initially recorded that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we also recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the acquisition date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. Contingent consideration liabilities or receivables recorded in connection with business acquisitions are also adjusted for changes in fair value until settled. Fair Value of Financial Instruments The carrying amounts reported in the consolidated balance sheets for settlement deposits and merchant float, receivables, payables and short-term borrowings approximate their fair values because of their immediate or short-term maturities. The fair value of the Company's long-term debt is based on quoted prices of our senior notes and trades of our debt in close proximity to year end, which are considered Level 2-type measurements. The Company also holds, or has held, certain derivative instruments, specifically interest rate swaps and foreign currency exchange forward contracts, which are also valued using Level 2-type measurements. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. Therefore, the values presented are not necessarily indicative of amounts the Company could realize or settle currently. Fair Value Hierarchy The authoritative accounting literature defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy based on the quality of inputs used to measure fair value. The fair value hierarchy includes three levels that are based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). If the inputs used to measure the fair value fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the asset or liability. The three levels of the fair value hierarchy are described below. Level 1. Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2. Inputs to the valuation methodology include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. (d) Derivative Financial Instruments The Company records all derivatives, whether designated in hedging relationships or not, on the consolidated balance sheets at fair value. During all periods presented, the Company used cross-currency interest rate swaps to engage in hedging activities relating to its investment in foreign-currency denominated operations. The Company designated these cross-currency interest rate swaps as net investment hedges. The Company also used interest rate swaps to engage in hedging activities relating to changes in the fair value of its long-term debt. The Company designated these interest rate swaps as fair value hedges. During 2019, the Company entered into foreign currency forward contracts as well as treasury lock and interest rate swap contracts to reduce the volatility in the Company's cash flows during the period leading up to the Company's debt issuances related to the Worldpay acquisition. The Company designated these treasury lock and interest rate swap contracts as cash flow hedges. Derivative instruments are included in the accompanying consolidated balance sheets in Prepaid expenses and other current assets; Other noncurrent assets; Accounts payable, accrued and other liabilities; or Other noncurrent liabilities, as appropriate. Changes in fair value are recorded as a component of Accumulated other comprehensive earnings (loss), net of tax, for all derivative instruments except the fair value hedges, which are recorded as an adjustment to long-term debt, and the foreign currency forward contracts, which are recorded through Other income (expense), net. The amounts included in Accumulated other comprehensive earnings (loss) for the cash flow hedges are recorded in interest expense as yield adjustments over the periods in which the related interest payments that were hedged are made. As of December 31, 2020 and 2019, the Company had no outstanding cash flow hedge contracts. The Company also utilizes foreign-currency denominated debt as non-derivative net investment hedges in order to reduce the volatility of the net investment value of its foreign currency denominated operations. The change in fair value of the net investment hedges due to remeasurement of the effective portion, net of tax, is recorded as a component of Accumulated other comprehensive earnings (loss). Any ineffective portion of these hedging instruments impacts net earnings when the ineffectiveness occurs. See Notes 13 and 20 for additional details. (e) Trade Receivables Change in Accounting Policy The Company adopted FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses ("Topic 326"), with an adoption date of January 1, 2020. As a result, the Company changed its accounting policy for allowance for credit losses. The accounting policy pursuant to Topic 326 for credit losses is disclosed below. The adoption of Topic 326 resulted in an immaterial cumulative effect adjustment recorded in retained earnings as of January 1, 2020. Allowance for Credit Losses The Company monitors trade receivable balances including contract assets as well as other receivables and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. The allowance for credit losses is separate from the chargeback liability described in Note 16. While the COVID-19 pandemic did not result in a significant increase in the Company's expected credit loss allowance recorded as of December 31, 2020, it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic could have a material impact on management's estimates. (f) Settlement Activity and Merchant Float The payment solution services that give rise to the settlement balances described below are separate and distinct from those settlement activities referred to under (b) Cash and Cash Equivalents , where the services we provide primarily facilitate the movement of funds. 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 consolidated balance sheets and operating cash flows on the consolidated statements of cash flows. 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 various financial institutions ("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 Sponsoring Members 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 Visa, MasterCard 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 consolidated balance sheets. 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 one to three business days. 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 one to three business days. 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 (see Note 2(b)). (g) Contract Related Balances The payment terms and conditions in our customer contracts may vary. In some cases, customers pay in advance of our delivery of solutions or services; in other cases, payment is due as services are performed or in arrears following the delivery of the solutions or services. Differences in timing between revenue recognition and invoicing result in accrued trade receivables, contract assets, or deferred revenue on our consolidated balance sheets. Receivables are accrued when revenue is recognized prior to invoicing but the right to payment is unconditional (i.e., only the passage of time is required). This occurs most commonly when software term licenses recognized at a point in time are paid for periodically over the license term. Contract assets result when amounts allocated to distinct performance obligations are recognized when or as control of a solution or service is transferred to the customer but invoicing is contingent on performance of other performance obligations or on completion of contractual milestones. Contract assets are transferred to receivables when the rights become unconditional, typically upon invoicing of the related performance obligations in the contract or upon achieving the requisite project milestone. Deferred revenue results from customer payments in advance of our satisfaction of the associated performance obligation(s) and relates primarily to prepaid maintenance or other recurring services. Deferred revenue is relieved as revenue is recognized. Contract assets and deferred revenue are reported on a contract-by-contract basis at the end of each reporting period. Changes in the contract assets and deferred revenue balances for the years ended December 31, 2020 and 2019, were not materially impacted by any factors other than those described above. Also, in some cases, signing bonuses are paid, or credits are offered, to customers in connection with the origination or renewal of customer contracts. These incentives are recorded as Other noncurrent assets on our consolidated balance sheets and amortized on a straight-line basis as a reduction of revenue over the lesser of the useful life of the solution or the expected customer relationship period for new contracts or over the contract period for renewal contracts. (h) Goodwill Goodwill represents the excess of cost over the fair value of identifiable assets acquired and liabilities assumed in business combinations. Goodwill is not amortized but is assessed for impairment by reporting unit. The Company assesses goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. An impairment charge is recognized when and to the extent a reporting unit's carrying amount is determined to exceed its fair value. Our reporting units are the same as our primary operating segments, with additional reporting units for certain non-strategic businesses within the Corporate and Other segment. The Company has the option to first assess qualitatively whether it is more likely than not that a reporting unit's carrying amount exceeds its fair value. The option of whether to perform the qualitative assessment is made annually and may vary by reporting unit. Events and circumstances that are considered in performing the qualitative assessment include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, events affecting the reporting unit or Company as a whole, including a sustained decrease in stock price. When performing the qualitative assessment, we examine those factors most likely to affect each reporting unit's fair value. If we conclude that it is more likely than not that the reporting unit's fair value is less than its carrying amount (that is, a likelihood of more than 50 percent) as a result of the qualitative assessment, or we elect to bypass the qualitative assessment for a reporting unit, then we must perform the quantitative assessment for that reporting unit. In applying the quantitative assessment, we typically engage third-party valuation specialists to assist us in determining the fair value of a reporting unit based on a weighted average of multiple valuation techniques, principally a combination of an income approach and a market approach, which are Level 3-type measurements. The income approach calculates a value based upon the present value of estimated future cash flows, while the market approach uses earnings multiples of similarly situated guideline public companies. If the fair value of the reporting unit determined using the quantitative analysis exceeds the carrying amount of the reporting unit's net assets, goodwill is not impaired. For each of 2019 and 2018, we began our annual assessment with the qualitative assessment and concluded that that it remained more likely than not that the fair value of each of our reporting units continued to exceed the carrying amounts. For 2020, we began our annual assessment for the Banking Solutions and Capital Market Solutions reporting units with qualitative assessments and concluded that it remained more likely than not that the fair value of each of the reporting units continued to exceed their respective carrying amounts. For Merchant Solutions, we began our 2020 annual assessment with a quantitative assessment due to the economic impact of the COVID-19 pandemic on our Merchant Solutions business and its primary operations being recently acquired as part of the Worldpay acquisition. As a result of the assessment, the fair value of the reporting unit was estimated to be in excess of carrying amount by approximately 4%. Based on the results of our assessments for 2020, $94 million of goodwill related to certain non-strategic businesses within the Corporate and Other segment was impaired. For all other reporting units for all periods presented, goodwill was not impaired. In addition, due to the continued economic impact of the COVID-19 pandemic, we evaluated if events and circumstances as of December 31, 2020, indicated potential impairment. We performed a qualitative assessment by examining factors most likely to affect our reporting units' fair values and considered the impact to our business from the COVID-19 pandemic. The factors examined involve significant use of management judgment and included, among others, (1) forecasted revenue, growth rates, operating margins, and capital expenditures used to calculate estimated future cash flows, (2) future economic and market conditions and (3) FIS' market capitalization. Based on our impairment assessment as of December 31, 2020, we concluded that it remained more likely than not that the fair value continues to exceed the carrying amount for each of our reporting units; therefore, goodwill was not impaired. However, it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic on our Merchant Solutions business, such as an extended duration of the pandemic and/or government-imposed shutdowns, prolonged economic downturn or recession, or lack of governmental support for recovery, could have a material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment and could result in future goodwill impairment. (i) Long-Lived Assets Long-lived assets and intangible assets with finite useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset, which are Level 3-type measurements. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. During 2020, the Company recorded impairment losses totaling $42 million of certain long-lived assets related to reducing office space, including $30 million for operating lease right-of-use assets. (j) Intangible Assets The Company has intangible assets that consist primarily of customer relationships and trademarks (i.e., a collective term for trademarks, trade names, and related intellectual property rights) that are recorded in connection with acquisitions at their fair value based on the results of valuation analyses. Customer relationships and trademarks acquired in business combinations are generally valued using the multi-period excess earnings method and relief-from-royalty method, respectively, which are Level 3-type measurements. Customer relationships are amortized over their estimated useful lives using an accelerated method that takes into consideration expected customer attrition rates up to a 10-year period. Trademarks determined to have indefinite lives are not amortized. Trademarks with finite lives are amortized over periods ranging up to five years. Intangible assets with finite lives (principally customer relationships and certain trademarks) are reviewed for impairment following the same approach as long-lived assets, while certain trademarks determined to have indefinite lives are reviewed for impairment, following the same approach as goodwill. The Company assesses indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. For each of 2020, 2019 and 2018, we performed a qualitative assessment examining those factors most likely to affect our valuations and concluded that it is more likely than not that our indefinite-lived intangible assets were not impaired. (k) Software Software includes software acquired in business combinations, purchased software and capitalized software development costs. Software acquired in business combinations is generally valued using the relief-from-royalty method, a Level 3-type measurement. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life, and software acquired in business combinations is recorded at its fair value and amortized using straight-line or accelerated methods over its estimated useful life, ranging from one The capitalization of software development costs is based on whether the software is to be sold, leased or otherwise marketed, or if the software is for internal use. After the technological feasibility of the software has been established (for software to be marketed) or at the beginning of application development (for internal-use software), software development costs, which primarily include salaries and related payroll costs and costs of independent contractors incurred during development, are capitalized. Research and development costs incurred prior to the establishment of technological feasibility (for software to be marketed) or prior to application development (for internal-use software), are expensed as incurred. Software development costs are amortized on a solution-by-solution basis commencing on the date of general release (for software to be marketed) or the date placed in service (for internal-use software). Software development costs for software to be marketed are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three (l) Deferred Contract Costs The Company incurs costs as a result of both the origination and fulfillment of our contracts with customers. Origination costs relate primarily to the payment of sales commissions that are directly related to sales transactions. Fulfillment costs include the cost of implementation services related to software as a service ("SaaS") and other cloud-based arrangements when the implementation service is not distinct from the ongoing service. When origination costs and fulfillment costs that will be used to satisfy future performance obligations are directly related to the execution of our contracts with customers, and the costs are recoverable under the contract, the costs are capitalized as a deferred contract cost. Impairment losses are recognized if the carrying amounts of the deferred contract costs are not recoverable. There were no significant impairment losses recognized on deferred contract costs for 2020, 2019, or 2018. Origination costs for contracts that contain a distinct software license recognized at a point in time are allocated between the license and all other performance obligations of the contract and amortized according to the pattern of performance for the respective obligations. Otherwise, origination costs are capitalized as a single asset for each contract or portfolio of similar contracts and amortized using an appropriate single measure of performance considering all of the performance obligations in the contracts. The Company amortizes origination costs over the expected benefit period to which the deferred contract cost relates. Origination costs related to initial contracts with a customer are amortized over the lesser of the useful life of the solution or the expected customer relationship period. Commissions paid on renewals are amortized over the renewal period. Capitalized fulfillment costs are amortized over the lesser of the useful life of the solution or the expected customer relationship period. (m) Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed primarily using the straight-line method based on the estimated useful lives of the related assets as follows: 30 years for buildings and three (n) Income Taxes The Company recognizes deferred income tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities and expected benefits of using net operating loss and credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred income taxes of changes in tax rates and laws, if any, is reflected in the consolidated financial statements in the period enacted. A valuation allowance is established for any portion of a deferred income tax asset for which management believes it is more likely than not that the Company will not be able to realize the benefits of all or a portion of that deferred income tax asset. Certain of the Company's earnings are indefinitely reinvested offshore and could be subject to additional income tax if repatriated. It is not practicable to determine the unrecognized deferred tax liability on a hypothetical distribution of those earnings. (o) Leases 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 Consolidated Balance Sheet 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. Operating Leases The Company leases certain of its property, primarily real estate, under operating leases. Operating lease right-of-use ("ROU") assets are included in Other noncurrent assets, and operating lease liabilities are included in Accounts payable, accrued and other liabilities and Other noncurrent liabilities on the consolidated balance sheets. 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 fixed 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 term for accounting purposes may include options to extend (generally ranging from o |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Worldpay Acquisition On July 31, 2019, FIS completed the acquisition of Worldpay by acquiring 100 percent of Worldpay's equity. The Worldpay acquisition brought an integrated technology platform with a comprehensive suite of solutions and services serving merchants and financial institutions and provided FIS with enhanced global payment capabilities, robust risk and fraud solutions and advanced data analytics. The total purchase price was as follows (in millions): Cash consideration $ 3,423 Value of FIS share consideration (1) 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 (1) Worldpay shareholders received approximately 289 million shares of FIS common stock valued 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. The acquisition was accounted for as a business combination. We recorded an allocation of the purchase price to Worldpay tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values as of July 31, 2019. The amounts for intangible assets were based on third-party valuations performed. Goodwill was recorded as the residual amount by which the purchase price exceeded the 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. The Company completed its assessment of the fair value of assets acquired and liabilities assumed within the one-year period from the date of acquisition. The Company recorded measurement period adjustments due to additional information received primarily related to contingencies and income taxes, resulting in a decrease in the value assigned to goodwill. There was no material impact on earnings as a result of the measurement period adjustments recorded. The final purchase price allocation is as follows (in millions): Cash acquired $ 305 Settlement deposits and merchant float (1) 2,444 Trade receivables 1,594 Goodwill 38,057 Intangible assets 13,682 Computer software 1,297 Other noncurrent assets (2) 1,641 Accounts payable, accrued and other liabilities (1,021) Settlement payables (3,167) Deferred income taxes (2,860) Long-term debt, subsequently repaid (1,805) Other liabilities and noncontrolling interest (3) (1,922) Total purchase price $ 48,245 (1) Includes $1,693 million of merchant float. (2) Includes $534 million of other restricted cash. (3) Includes $542 million of noncurrent tax receivable agreement liability (see Note 16) and $875 million contingent value rights liability (see Note 11). The gross contractual amount of trade receivables acquired was approximately $1,646 million. The difference between that total and the 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 software, customer relationship assets and trademarks with weighted average estimated useful lives of seven years, ten years and five years, respectively, and fair value amounts assigned of $1,297 million, $13,272 million and $410 million, respectively. See Note 16 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 $1,880 million and $436 million, respectively, which include the impact of purchase accounting adjustments, are included in the consolidated statements of earnings for the period from July 31, 2019 through December 31, 2019. Unaudited supplemental pro forma results of operations for the years ended December 31, 2019 and 2018, assuming the acquisition had occurred as of January 1, 2018, are presented below (in millions, except per share amounts): Year ended December 31, 2019 2018 Revenue $ 12,724 $ 12,373 Net earnings (loss) attributable to FIS common stockholders $ 254 $ (57) Net earnings (loss) per share-basic attributable to FIS common stockholders $ 0.41 $ (0.09) Net earnings (loss) per share-diluted attributable to FIS common stockholders $ 0.41 $ (0.09) 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 addition of borrowings of FIS in conjunction with the acquisition; and • a reduction in expenses for the year ended December 31, 2019 of $260 million and an increase in expenses for the year ended December 31, 2018 of $267 million for acquisition-related transaction costs and other one-time non-recurring costs. Virtus Acquisition On January 2, 2020, FIS acquired a majority interest in Virtus Partners ("Virtus"), previously a privately held company that provides high-value managed services and technology to the credit and loan market. FIS acquired a 70% voting and financial interest in Virtus with 30% interest retained by the founders of Virtus ("Founders"). The acquisition was accounted for as a business combination. We recorded an allocation of the $404 million cash purchase price and the $173 million fair value of redeemable noncontrolling interest to tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values, consisting primarily of $254 million in customer relationships and $51 million in software assets. We also recorded $253 million in goodwill for the residual amount by which the purchase price exceeded the fair value of the net assets acquired. The Company completed its assessment of the fair value of assets acquired and liabilities assumed within the one-year period from the date of acquisition. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue In the following tables, revenue is disaggregated by primary geographical market and type of revenue. The tables also include a reconciliation of the disaggregated revenue with the Company's reportable segments. Prior-period amounts have been recast to conform to the new reportable segment presentation as discussed in Note 22. For the year ended December 31, 2020 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 2,719 $ 5,105 $ 1,453 $ 274 $ 9,551 All others 1,048 839 987 127 3,001 Total $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 Type of Revenue: Recurring revenue: Transaction processing and services $ 3,680 $ 4,443 $ 1,091 $ 374 $ 9,588 Software maintenance 2 352 493 1 848 Other recurring 77 165 99 2 343 Total recurring 3,759 4,960 1,683 377 10,779 Software license 2 89 328 6 425 Professional services 1 605 427 5 1,038 Other non-recurring fees 5 290 2 13 310 Total $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 For the year ended December 31, 2019 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 1,409 $ 4,738 $ 1,398 $ 314 $ 7,859 All others 533 854 920 167 2,474 Total $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Type of Revenue: Recurring revenue: Transaction processing and services $ 1,890 $ 4,056 $ 993 $ 420 $ 7,359 Software maintenance 2 360 482 — 844 Other recurring 37 177 106 — 320 Total recurring 1,929 4,593 1,581 420 8,523 Software license 8 150 328 13 499 Professional services 1 581 406 6 994 Other non-recurring fees 4 268 3 42 317 Total $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 For the year ended December 31, 2018 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 208 $ 4,353 $ 1,359 $ 363 $ 6,283 All others — 1,063 899 178 2,140 Total $ 208 $ 5,416 $ 2,258 $ 541 $ 8,423 Type of Revenue: Recurring revenue: Transaction processing and services $ 197 $ 4,005 $ 953 $ 504 $ 5,659 Software maintenance 3 351 479 1 834 Other recurring — 197 114 10 321 Total recurring 200 4,553 1,546 515 6,814 Software license 4 101 311 — 416 Professional services 1 562 401 6 970 Other non-recurring fees 3 200 — 20 223 Total $ 208 $ 5,416 $ 2,258 $ 541 $ 8,423 Contract Balances The Company recognized revenue of $764 million, $762 million and $740 million, during the years ended December 31, 2020, 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 December 31, 2020, approximately $22.0 billion of revenue is estimated to be recognized in the future primarily 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 32% of the Banking Solutions and Capital Market Solutions segments' remaining performance obligations over the next 12 months, approximately another 22% 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 Land $ 48 $ 34 Buildings 295 275 Leasehold improvements 157 163 Computer equipment 1,622 1,382 Furniture, fixtures, and other equipment 170 323 2,292 2,177 Accumulated depreciation and amortization (1,405) (1,277) Total Property and equipment, net $ 887 $ 900 During the years ended December 31, 2020 and 2019, the Company entered into other financing obligations of $21 million and $215 million, respectively, for certain hardware and software. The assets are included in property and equipment and software and the other financing obligations are classified as Long-term debt on our consolidated balance sheets. Periodic payments are included in repayment of borrowings on the consolidated statements of cash flows. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in goodwill during the years ended December 31, 2020 and 2019, are summarized below (in millions). Prior-period amounts have been recast to conform to the new reportable segment presentation as discussed in Note 22. Merchant Banking Capital Corporate and Other Total Balance, December 31, 2018 $ 276 $ 8,811 $ 4,344 $ 114 $ 13,545 Goodwill attributable to acquisitions 34,657 3,414 — — 38,071 Foreign currency adjustments 620 (8) 14 — 626 Balance, December 31, 2019 35,553 12,217 4,358 114 52,242 Goodwill attributable to acquisitions (11) 57 253 — 299 Foreign currency adjustments 725 5 91 — 821 Asset impairments — — — (94) (94) Balance, December 31, 2020 $ 36,267 $ 12,279 $ 4,702 $ 20 $ 53,268 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets as of December 31, 2020, consist of the following (in millions): Cost Accumulated Net Customer relationships and other $ 18,586 $ (5,024) $ 13,562 Finite-lived trademarks 511 (189) 322 Indefinite-lived trademarks 44 — 44 Total Intangible assets, net $ 19,141 $ (5,213) $ 13,928 Intangible assets as of December 31, 2019, consist of the following (in millions): Cost Accumulated Net Customer relationships and other $ 18,018 $ (2,681) $ 15,337 Finite-lived trademarks 503 (85) 418 Indefinite-lived trademarks 43 — 43 Total Intangible assets, net $ 18,564 $ (2,766) $ 15,798 Amortization expense for intangible assets with finite lives, including the contract intangible in our Brazilian Venture, which was amortized as a reduction of revenue until impaired during the third quarter of 2018 (see Note 19), was $2,400 million, $1,444 million and $659 million for the years ended December 31, 2020, 2019 and 2018, respectively. Estimated amortization of intangible assets for the next five years is as follows (in millions): 2021 $ 2,378 2022 2,226 2023 2,035 2024 1,836 2025 1,667 |
Software
Software | 12 Months Ended |
Dec. 31, 2020 | |
Research and Development [Abstract] | |
Software | Software Software as of December 31, 2020 and 2019, consists of the following (in millions): 2020 2019 Software from acquisitions $ 2,077 $ 1,959 Capitalized software development costs 2,826 2,258 Purchased software 632 603 5,535 4,820 Accumulated amortization (2,165) (1,616) Total Software, net $ 3,370 $ 3,204 During the year ended December 31, 2019, the Company recorded asset impairments of $87 million, primarily related to certain software resulting from the Company's net realizable value analysis. |
Deferred Contract Costs
Deferred Contract Costs | 12 Months Ended |
Dec. 31, 2020 | |
Capitalized Contract Cost [Abstract] | |
Deferred Contract Costs | Deferred Contract Costs Origination and fulfillment costs from contracts with customers capitalized as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 Contract costs on implementations in progress $ 245 $ 138 Contract origination costs on completed implementations, net 470 352 Contract fulfillment costs on completed implementations, net 202 177 Total Deferred contract costs, net $ 917 $ 667 For the years ended December 31, 2020, 2019 and 2018, amortization of deferred contract costs on completed implementations was $225 million, $184 million and $123 million. |
Accounts Payable, Accrued and O
Accounts Payable, Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable, Accrued and Other Liabilities | Accounts Payable, Accrued and Other Liabilities Accounts payable, accrued and other liabilities as of December 31, 2020 and 2019, consists of the following (in millions): 2020 2019 Salaries and incentives $ 261 $ 414 Accrued benefits and payroll taxes 155 116 Trade accounts payable and other accrued liabilities 1,576 1,386 Accrued interest payable 102 109 Taxes other than income tax 236 220 Operating lease liabilities 152 129 Total Accounts payable, accrued and other liabilities $ 2,482 $ 2,374 |
Other Noncurrent Assets and Lia
Other Noncurrent Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Noncurrent Assets and Liabilities [Abstract] | |
Other Noncurrent Assets and Liabilities | Other Noncurrent Assets and Liabilities Other noncurrent assets as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 Visa Europe and contingent value rights ("CVR") related assets $ 70 $ 940 Operating lease ROU assets (1) 534 564 Other 970 799 Total Other noncurrent assets $ 1,574 $ 2,303 Other noncurrent liabilities as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 CVR liability $ 401 $ 838 Tax Receivable Agreement liability (2) 447 532 Operating lease liabilities (1) 453 466 Other 666 570 Total Other noncurrent liabilities $ 1,967 $ 2,406 (1) See Note 14, Operating Leases (2) See Note 16, Commitments and Contingencies 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. As part of the disposal, Legacy Worldpay received proceeds from Visa Inc. in the form of cash ("cash consideration") and convertible preferred stock ("preferred stock"), the value of which may be reduced by losses incurred relating to ongoing interchange-related litigation involving Visa Europe ("the litigation"). The preferred stock becomes convertible into Visa Inc. Class A common stock ("common stock") in stages as determined by Visa Inc. in accordance with the relevant transaction documents pertaining to the aforementioned disposal of the Visa Europe ownership interest. The preferred stock becomes fully convertible no later than 2028 (subject to a holdback to cover any pending claims). Also 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, which is recorded as a liability ("CVR liability") on the consolidated balance sheets, and agreed to segregate the cash consideration to be paid as part of the CVR liability, which was recorded as restricted cash. On September 17, 2020, the Company executed an amendment ("the amendment") with the former Legacy Worldpay owners to pay approximately one-third of the cash consideration component of the CVR liability, or $185 million, to the former Legacy Worldpay owners upon amendment execution and to pay the remaining approximately two-thirds of the cash consideration on October 12, 2027, subject to reduction due to losses incurred by Visa Inc. relating to the litigation. The partial payment of the cash consideration was recorded as a reduction of the CVR liability and reflected as Other financing activities, net, on the consolidated statement of cash flows for the year ended December 31, 2020. The amendment also removed the segregated cash requirement resulting in no restricted cash recorded at December 31, 2020, as compared to $540 million recorded at December 31, 2019, reflected in Other noncurrent assets on the consolidated balance sheet. Additionally, as Visa Inc. releases preferred stock for conversion into common stock, over time and subject to any losses incurred by Visa Inc. relating to the litigation, 90% of the net-of-tax proceeds from the sale of the common stock will be paid to the former Legacy Worldpay owners in accordance with the amendment. In the fourth quarter of 2020, Visa Inc. released a portion of the aforementioned preferred stock that was converted into common stock. The Company sold the common stock for $552 million and paid 90% of the net-of-tax proceeds of $403 million to the former Legacy Worldpay owners. The sale of stock and related payment to the former Legacy Worldpay owners was recorded as a reduction of the CVR related assets and CVR liability, respectively, and is reflected as Other investing activities, net and Other financing activities, net, respectively on the consolidated statement of cash flows for the year ended December 31, 2020. The Company has elected the fair value option under ASC 825, Financial Instruments ("ASC 825"), for measuring its preferred stock asset and CVR liability. The fair value of the preferred stock was $70 million and $400 million at December 31, 2020 and 2019, respectively, recorded in Other noncurrent assets on the consolidated balance sheets. The fair value of the CVR liability was $401 million and $838 million at December 31, 2020 and 2019, respectively, recorded in Other noncurrent liabilities on the consolidated balance sheets. Pursuant to ASC 825, the Company remeasures the fair value of the preferred stock and CVR liability each reporting period. The net change in fair value was $78 million and $5 million for the years ended December 31, 2020 and 2019, respectively, recorded in Other income (expense), net on the consolidated statements of earnings. The estimated fair value of the preferred stock and related component of the CVR liability are determined using Level 3-type measurements. Significant inputs into the valuation of the preferred stock include the Visa Inc. Class A common stock price per share and the conversion ratio, which are observable, as well as the expected timing of future preferred stock releases for conversion into common stock and an estimate of the potential losses that will result from the ongoing litigation involving Visa Europe, which are unobservable. As a result of the amendment, the estimated fair value of the cash consideration component of the CVR liability is determined using Level 3-type measurements, utilizing a discount rate based on the bond yield for the Company's credit rating and remaining payment term as the significant unobservable input. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt as of December 31, 2020 and 2019, consists of the following (in millions): December 31, 2020 Weighted Average Interest Interest December 31, Rates Rate Maturities 2020 2019 Fixed Rate Notes Senior USD Notes 3.0% - 5.0% 3.7% 2023 - 2048 $ 4,938 $ 4,938 Senior Euro Notes 0.1% - 3.0% 1.1% 2021 - 2039 8,891 8,694 Senior GBP Notes 1.7% - 3.4% 2.7% 2022 - 2031 2,526 2,440 Senior Euro Floating Rate Notes —% 2021 613 561 Revolving Credit Facility (1) 1.3% 2023 251 600 Other 46 136 Total long-term debt, including current portion 17,265 17,369 Current portion of long-term debt (1,314) (140) Long-term debt, excluding current portion $ 15,951 $ 17,229 (1) 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. The weighted average interest rate on the Revolving Credit Facility excludes fees. Short-term borrowings as of December 31, 2020 and 2019, consist of the following (in millions): December 31, 2020 Weighted Average Interest December 31, Rate Maturities 2020 2019 Euro-commercial paper notes ("ECP Notes") (0.3) % Up to 183 days $ 861 $ 2,523 U.S. commercial paper notes ("USCP Notes") 0.4 % Up to 397 days 1,745 200 Other 144 100 Total Short-term borrowings $ 2,750 $ 2,823 As of December 31, 2020, the weighted average interest rate of the Company's outstanding debt was 1.7%, including the impact of interest rate swaps (see Note 13). The obligations of FIS under the Revolving Credit Facility, ECP Notes and USCP Notes, and all of its outstanding senior notes rank equal in priority and are unsecured. 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 swaps discussed below and net unamortized non-cash bond premiums and discounts of $29 million as of December 31, 2020 (in millions): Total 2021 $ 1,314 2022 1,669 2023 2,508 2024 1,020 2025 2,238 Thereafter 8,634 Total principal payments 17,383 Debt issuance costs, net of accumulated amortization (89) Total long-term debt $ 17,294 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. Senior Notes FIS may redeem the Senior USD Notes, Senior Euro Notes and Senior GBP Notes (collectively, the "Senior 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 Senior Notes during the period described in the related indenture (ranging from one On December 15, 2020, FIS redeemed an aggregate principal amount of €500 million in Senior Euro Notes, which were due in 2021, one month prior to maturity. The notes were redeemed pursuant to the related indenture allowing redemption without a make-whole payment. In December 2019, pursuant to cash tender offers, FIS purchased and redeemed an aggregate principal amount of $3.0 billion in Senior USD Notes, resulting in a pre-tax charge of approximately $217 million relating to tender premiums and fees as well as the write-off of previously capitalized debt issuance costs. The Senior Notes are subject to customary covenants, including, among others, customary events of default. Commercial Paper FIS has 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), which was established on May 29, 2019. The ECP program will generally be used for general corporate purposes. FIS has 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, as established on September 21, 2018. FIS increased the capacity on the USCP program to $5.5 billion on May 29, 2019. The USCP program will generally be used for general corporate purposes. Revolving Credit Facility 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 December 31, 2020, the borrowing capacity under the Revolving Credit Facility was $2,641 million (net of $2,606 million of capacity backstopping our commercial paper notes and $2 million in outstanding letters of credit issued under the Revolving Credit Facility). The Revolving Credit Facility is subject to customary covenants, including, among others, customary events of default, a provision allowing for financing related to the acquisition of Worldpay and limitations on the payment of dividends by FIS. 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. Fair Value of Debt The fair value of the Company's long-term debt is estimated to be approximately $1,640 million and $900 million higher than the carrying value, excluding the fair value of the interest rate swaps and unamortized discounts, as of December 31, 2020 and 2019, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Hedges The Company holds interest rate swaps with €500 million and $1,000 million notional values, converting the interest rate exposure on the Company's Senior Euro Notes due 2024 and Senior USD Notes due 2029, respectively, from fixed to variable. The $1,000 million notional interest rate swap was entered into during December 2020. These swaps are designated as fair value hedges for accounting purposes with a net asset fair value of $10 million and $10 million at December 31, 2020 and 2019, respectively, reflected as an increase in the long-term debt balance (see Note 12). Net Investment Hedges The purpose of the Company's net investment hedges, as discussed below, 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) for the change in fair value as Foreign currency translation adjustments and related income tax (expense) benefit within Other comprehensive earnings (loss), net of tax, on the consolidated statements of comprehensive earnings of $(951) million, $(229) million and $59 million, during the years ended December 31, 2020, 2019 and 2018, respectively. No ineffectiveness has been recorded on the net investment hedges. Foreign Currency-Denominated Debt Designations The Company designates certain foreign currency-denominated debt as net investment hedges of its investment in Euro- and Pound Sterling-denominated operations. As of December 31, 2020, an aggregate €8,466 million was designated as a net investment hedge of the Company's investment in Euro-denominated operations related to the Senior Euro Floating Rate Notes, Senior Euro Notes with maturities ranging from 2022 to 2039 and ECP Notes, and an aggregate £1,850 million was designated as a net investment hedge of the Company's Pound Sterling-denominated operations related to the Senior GBP Notes with maturities ranging from 2022 to 2031. Cross-Currency Interest Rate Swap Designations The Company holds cross-currency interest rate swaps and designates them as net investment hedges of its investment in Euro- and Pound Sterling-denominated operations. As of December 31, 2020, an aggregate notional amount of €4,508 million was designated as a net investment hedge of the Company's investment in Euro-denominated operations and an aggregate notional amount of £565 million was designated as a |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The classification of the Company's operating lease ROU assets and liabilities in the consolidated balance sheets as of December 31, 2020 and 2019, is as follows (in millions): December 31, Classification 2020 2019 Operating lease ROU assets Other noncurrent assets $ 534 $ 564 Operating lease liabilities Accounts payable, accrued and other liabilities $ 152 $ 129 Other noncurrent liabilities 453 466 Total operating lease liabilities $ 605 $ 595 Operating lease cost was $210 million (including $30 million ROU assets impairment charges) and $145 million, and variable lease cost was $39 million and $34 million, for the years ended December 31, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of operating lease liabilities included in operating cash flows was $165 million and $139 million for the years ended December 31, 2020 and 2019, respectively. Operating lease ROU assets obtained in exchange for operating lease liabilities was $138 million and $112 million for the years ended December 31, 2020 and 2019, respectively. The weighted average remaining operating lease term was 5.8 years and 5.9 years and the weighted average operating lease discount rate was 3.2% and 3.7% as of December 31, 2020 and 2019, respectively. Maturities of operating lease liabilities, as of December 31, 2020, are as follows (in millions): 2021 $ 159 2022 129 2023 103 2024 78 2025 58 Thereafter 138 Total lease payments 665 Less: Imputed interest (60) Total operating lease liabilities $ 605 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2020, 2019 and 2018, consists of the following (in millions): 2020 2019 2018 Current provision: Federal $ 81 $ 53 $ 169 State 50 46 50 Foreign 176 116 105 Total current provision $ 307 $ 215 $ 324 Deferred provision (benefit): Federal $ (53) $ (47) $ (95) State (28) 7 (11) Foreign (130) (75) (10) Total deferred provision (benefit) (211) (115) (116) Total Provision (benefit) for income taxes $ 96 $ 100 $ 208 The provision for income taxes is based on pre-tax income from continuing operations, which is as follows for the years ended December 31, 2020, 2019 and 2018 (in millions): 2020 2019 2018 United States $ 441 $ 220 $ 744 Foreign (175) 193 360 Total $ 266 $ 413 $ 1,104 Total income tax expense for the years ended December 31, 2020, 2019 and 2018, is allocated as follows (in millions): 2020 2019 2018 Tax expense (benefit) per statement of earnings $ 96 $ 100 $ 208 Tax expense (benefit) attributable to discontinued operations — — (1) Unrealized (loss) gain on foreign currency translation (154) 240 — Unrealized gain (loss) on interest rate swaps (7) (41) — Other components of other comprehensive earnings (loss) — (3) 1 Total income tax expense (benefit) allocated to other comprehensive income (161) 196 1 Total income tax expense (benefit) $ (65) $ 296 $ 208 A reconciliation of the federal statutory income tax rate to the Company's effective income tax rate for the years ended December 31, 2020, 2019 and 2018, is as follows: 2020 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes 14.6 2.5 2.9 Federal benefit of state taxes (3.1) (0.5) (0.6) Foreign rate differential (10.1) (1.7) — U.K. tax rate adjustment 38.2 — — Tax benefit from stock-based compensation (18.1) (8.1) (5.2) Acquisition-related items (15.9) 1.8 — Book basis in excess of tax basis for goodwill impairment and disposition 9.2 — 3.0 Non-deductible executive compensation 9.0 10.6 0.4 CVR liability fair value and foreign currency adjustment 8.2 0.7 — Foreign-derived intangible income deduction (7.2) (3.3) (1.8) Return to provision adjustments (4.9) (0.4) (0.3) Research and development credit (4.1) (2.4) (0.9) State tax rate adjustment (2.8) 5.1 — Cares Act net operating loss adjustment (2.3) — — Withholding tax on distribution 2.1 — (0.4) Deferred tax and other rate adjustments 1.1 0.2 — Unrecognized tax benefits 0.3 (1.4) (0.3) Global intangible low-tax income — — 1.1 Other 0.8 0.1 (0.1) Effective income tax rate 36.0 % 24.2 % 18.8 % The significant components of deferred income tax assets and liabilities as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 Deferred income tax assets: Net operating loss carryforwards $ 221 $ 177 Employee benefit accruals 155 177 Other deferred tax assets 204 142 Total gross deferred income tax assets 580 496 Less valuation allowance (204) (178) Total deferred income tax assets 376 318 Deferred income tax liabilities: Amortization of goodwill and intangible assets (3,945) (4,123) Foreign currency translation adjustment (95) (208) Deferred contract costs (173) (125) Other deferred tax liabilities (140) (105) Total deferred income tax liabilities (4,353) (4,561) Net deferred income tax liability $ (3,977) $ (4,243) Deferred income taxes are classified in the consolidated balance sheets as of December 31, 2020 and 2019, as follows (in millions): 2020 2019 Noncurrent assets (included in Other noncurrent assets) $ 40 $ 38 Total deferred income tax assets 40 38 Noncurrent liabilities (4,017) (4,281) Total deferred income tax liabilities (4,017) (4,281) Net deferred income tax liability $ (3,977) $ (4,243) We believe that based on our historical pattern of taxable income, projections of future income, tax planning strategies and other relevant evidence, the Company will produce sufficient income in the future to realize its deferred income tax assets (net of valuation allowance). A valuation allowance is established for any portion of a deferred income tax asset for which we believe it is more likely than not that the Company will not be able to realize the benefits of all or a portion of that deferred income tax asset. We also receive periodic assessments from taxing authorities challenging our positions; these assessments must be taken into consideration in determining our tax accruals. Resolving these assessments, which may or may not result in additional taxes due, may require an extended period of time. Adjustments to the valuation allowance will be made if there is a change in our assessment of the amount of deferred income tax asset that is realizable. As of December 31, 2020 and 2019, the Company had net income taxes receivable of $147 million and $174 million, respectively. These amounts are included in Other receivables in the consolidated balance sheets. As of December 31, 2020 and 2019, the Company has federal, state and foreign net operating loss carryforwards resulting in deferred tax assets of $221 million and $177 million, respectively. The federal and state net operating losses result in deferred tax assets as of December 31, 2020 and 2019, of $90 million and $68 million, respectively, which expire between 2022 and 2040. The Company has a valuation allowance related to these deferred tax assets for net operating loss carryforwards in the amounts of $48 million and $48 million as of December 31, 2020 and 2019. The Company has foreign net operating loss carryforwards resulting in deferred tax assets as of December 31, 2020 and 2019, of $131 million and $110 million, respectively. The Company has a full valuation allowance against the foreign net operating losses as of December 31, 2020 and 2019. The Company participates in the IRS' Compliance Assurance Process ("CAP"), which is a real-time continuous audit. The IRS has completed its review for years through 2017. Currently, we believe the ultimate resolution of the IRS examinations will not result in a material adverse effect to the Company's financial position or results of operations. Substantially all material foreign income tax return matters have been concluded through 2013. Substantially all state income tax returns have been concluded through 2013. As of December 31, 2020 and 2019, the Company had gross unrecognized tax benefits of $44 million and $45 million of which $38 million and $38 million, respectively, would favorably impact our income tax rate in the event that the unrecognized tax benefits are recognized. The following table reconciles the gross amounts of unrecognized tax benefits at the beginning and end of the period (in millions): Gross Amount Amounts of unrecognized tax benefits as of December 31, 2018 $ 61 Amount of decreases due to lapse of the applicable statute of limitations (5) Amount of decreases due to settlements (17) Increases as a result of tax positions taken in the current period 1 Assumed in Worldpay acquisition 5 Amount of unrecognized tax benefit as of December 31, 2019 45 Amount of decreases due to lapse of the applicable statute of limitations (1) Amount of decreases due to settlements (9) Increases as a result of tax positions taken in the current period 9 Amount of unrecognized tax benefit as of December 31, 2020 $ 44 The total amount of interest expense recognized in the consolidated statements of earnings for unpaid taxes is $3 million, $3 million and $4 million for the years ended December 31, 2020, 2019 and 2018, respectively. The total amount of interest and penalties included in the consolidated balance sheets is $15 million and $19 million as of December 31, 2020 and 2019, respectively. Interest and penalties are recorded as a component of income tax expense in the consolidated statements of earnings. Due to the expiration of various statutes of limitation in the next 12 months, an estimated $1 million of gross unrecognized tax benefits may be recognized during that 12-month period. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Reliance Trust Claims Reliance Trust Company ("Reliance"), the Company's subsidiary, is 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. On behalf of the Plan participants, plaintiffs in the action, which was filed in December 2015, sought damages and attorneys' fees, as well as equitable relief, against Reliance and the Plan's sponsor and record-keeper for alleged breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974 ("ERISA"). At a non-jury trial conducted in March 2020, Reliance vigorously defended the action and contended that no breaches of fiduciary duty or prohibited transactions occurred and that Plan participants suffered no damages. At trial, Plaintiffs claimed damages of approximately $127 million against all defendants. On October 12, 2020, Reliance and plaintiffs entered into a settlement agreement, which is subject to final court approval, to settle all allegations and claims asserted in the action for $39.8 million without equitable relief. On October 14, 2020, the Court preliminarily approved the settlement agreement. In the settlement agreement, Reliance admitted no wrongdoing or liability with respect to any of the allegations or claims and maintains that the Plan was managed, operated, and administered during its tenure as the Plan's discretionary trustee in full compliance with ERISA and applicable regulations. Upon final court approval, all allegations and claims will be settled and released with prejudice. The Company recorded a liability for the agreed settlement amount of $39.8 million and a corresponding loss in Other income (expense), net on the consolidated statement of earnings for the year ended December 31, 2020. 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 14 claims against Servicos asserting potential tax liabilities of approximately $11 million. There are potentially 24 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 $32 million, making the total potential exposure for all 38 claims approximately $43 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. In December 2019, the Company entered into a Tax Receivable Purchase Addendum (the "Amendment") that provides written call and put options (collectively "the options") to terminate certain estimated obligations under the TRA in exchange for fixed cash payments. The remaining TRA obligations not subject to the Amendment are 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 TRA, in certain specified circumstances, such as certain changes of control, the Company may be required to make payments in excess of such cash savings. Obligations recorded in our consolidated financial statements pursuant to the TRA are based on estimates of future deductions and future tax rates and in the case of the obligations subject to the Amendment, reflect management's expectation that the options will be exercised. In January 2020, the Company exercised its first call option pursuant to the Amendment, which results in fixed cash payments to Fifth Third of $42 million. The timing and/or amount of aggregate payments due under the TRA may vary based on a number of factors, including the exercise of options, the amount and timing of taxable income the Company generates in the future and the tax rate then applicable, the use of loss carryforwards and amortizable basis. Each reporting period, the Company evaluates the assumptions underlying the TRA obligations. The consolidated balance sheet as of December 31, 2020, includes a total liability of $532 million relating to the TRA. The following table summarizes our estimated payment obligation timing under the TRA as of December 31, 2020 (in millions): Payments Due in Type of Obligation Total Less than 1 year 1-3 Years 3-5 Years More than 5 Years Obligations under TRA $ 532 $ 85 $ 379 $ 68 $ — Chargeback Liability Through services offered in our Merchant Solutions segment, the Company is exposed to potential losses from merchant-related chargebacks. A chargeback occurs when a dispute between a cardholder and a merchant, including a claim for non-delivery of the product or service by the merchant, is not resolved in favor of the merchant and the transaction is charged back to the merchant resulting in a refund of the purchase price to the cardholder. If the Company is unable to collect this chargeback amount from the merchant due to closure, bankruptcy or other reasons, the Company bears the loss for the refund paid to the cardholder. The risk of chargebacks is typically greater for those merchants that promise future delivery of goods and services rather than delivering goods or rendering services at the time of payment. The economic impact of the COVID-19 pandemic has not resulted in material chargeback losses as of December 31, 2020; however, it is reasonably possible that the Company has incurred or may incur significant losses related to future chargebacks. Due to the unprecedented nature of the pandemic and the numerous current and future uncertainties that may impact any potential chargeback losses, and considering that the Company has no historical experience with similar uncertainties, a reasonable estimate of the possible accrual for future chargeback losses or range of losses cannot be made. 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, in which case it 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. Purchase Commitments The Company has agreements with various vendors, generally with one |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Stock Purchase Plan FIS employees participate in an Employee Stock Purchase Plan ("ESPP"). Eligible employees may voluntarily purchase, at current market prices, shares of FIS' common stock through payroll deductions. Pursuant to the ESPP, employees may contribute an amount between 3% and 15% of their base salary and certain commissions. Shares purchased are allocated to employees based upon their contributions. The Company contributes a matching amount as specified in the ESPP of 25% of the employee's contribution. The Company recorded expense of $20 million, $15 million, and $14 million, respectively, for the years ended December 31, 2020, 2019 and 2018, relating to the participation of FIS employees in the ESPP. 401(k) Profit Sharing Plans The Company's U.S. employees are covered by a qualified 401(k) plan. Eligible employees may contribute up to 40% of their eligible compensation, up to the annual amount allowed pursuant to the Internal Revenue Code. The Company generally matches 50% of each dollar of employee contribution up to 6% of the employee's total eligible compensation. The Company recorded expense of $107 million, $91 million and $82 million, respectively, for the years ended December 31, 2020, 2019 and 2018, relating to the participation of FIS employees in the 401(k) plan. Stock Compensation Plans In 2008, the Company adopted the FIS 2008 Omnibus Incentive Plan ("FIS Plan"). In May 2013, the FIS Plan was combined with a plan assumed in conjunction with the 2009 Metavante acquisition ("FIS Restated Plan"). The restatement authorized an additional 6 million shares for issuances, which was approved by stockholders in 2013. In May 2015, another 12 million shares were authorized for issuance under the FIS Restated Plan and approved by stockholders. On November 30, 2015, in conjunction with the SunGard acquisition, the Company registered an additional 10 million shares, representing the remaining shares available for issuance under the SunGard 2005 Management Incentive Plan ("the SG Plan"), as amended immediately prior to the consummation of the SunGard acquisition. These shares are available for grant under the FIS Restated Plan for legacy SunGard employees and FIS employees hired after the SunGard acquisition. On July 31, 2019, in conjunction with the Worldpay acquisition, the Company registered an additional 24 million shares, representing the remaining shares available for issuance under the Worldpay Inc. 2012 Equity Incentive Plan ("Worldpay Plan"), as amended immediately prior to the consummation of the Worldpay acquisition. These shares are available for grant under the FIS Restated Plan for legacy Worldpay employees and FIS employees hired after the Worldpay acquisition. Also on July 31, 2019, in conjunction with the Worldpay acquisition, the Company registered up to 7 million shares of FIS common stock on a Post-Effective Amendment on Form S-8, reserved for issuance with respect to converted outstanding awards issued under the Worldpay Plan to individuals employed by Worldpay at the effective time of the merger. During 2019, in conjunction with the Worldpay acquisition, the Company converted outstanding Worldpay equity awards into corresponding FIS equity awards, pursuant to the terms of the merger agreement. The converted equity awards are subject to time-based vesting criteria and include change in control provisions allowing for acceleration of unvested awards in the event of termination of employment without cause or for good reason. Stock options granted under the FIS Restated Plan for the years ended December 31, 2020, 2019 and 2018 are subject to time-based vesting criteria. Restricted stock units granted under the FIS Restated Plan for the years ended December 31, 2020 and 2019, are subject to time-based vesting criteria as well as performance and/or market conditions for certain grants. The grants with performance and market conditions are subject to the achievement of certain financial performance measures. Participants have the right to earn 0% to 300% of the target number of shares of the Company's common stock, determined by the level of the financial performance measures achieved during the performance period. The restricted stock units granted under the FIS Restated Plan for the year ended December 31, 2018, are subject to time-based vesting criteria as well as market conditions for certain grants. The number of shares available for future grants under the FIS Restated Plan is 32 million as of December 31, 2020. Stock Options The Company grants stock options to certain key employees, which typically vest annually over three years. All stock options are non-qualified stock options, the stock options granted by the Company expire on the seventh anniversary of the grant date, and the stock options converted through the Worldpay acquisition expire on the tenth anniversary of the grant date. The following table summarizes stock option activity for the year ended December 31, 2020 (in millions except for per share amounts): Options Weighted Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2019 11 $ 76.01 4.4 $ 745 Granted 2 120.47 Exercised (5) 68.14 $ 348 Cancelled — 115.47 Balance, December 31, 2020 8 $ 88.01 3.8 $ 464 Options exercisable at December 31, 2020 6 $ 75.35 2.8 $ 381 The intrinsic value of options exercised during the years ended December 31, 2020, 2019 and 2018 was $348 million, $189 million and $257 million, respectively. The intrinsic value of the outstanding options and options exercisable is based on a closing stock price as of December 31, 2020 of $141.46. The Company issues authorized but unissued shares or shares from treasury stock to settle stock options exercised. The number of options granted for the years ended December 31, 2020, 2019 and 2018 was 2 million, 1 million and 1 million, respectively. The weighted average exercise price was $120.47, $113.48 and $96.49 for the years ended December 31, 2020, 2019 and 2018, respectively. The weighted average fair value of options granted during the years ended December 31, 2020, 2019 and 2018, was $21.17, $19.25 and $16.07, respectively, using the Black-Scholes option pricing model with the assumptions below: 2020 2019 2018 Risk free interest rate 0.4 % 2.2 % 2.5 % Volatility 24.7 % 20.1 % 19.2 % Dividend yield 1.2 % 1.2 % 1.3 % Weighted average expected life (years) 4.1 4.1 4.2 The options converted through the Worldpay acquisition on July 31, 2019, had a weighted average fair value of $71.05, a weighted average risk free interest rate of 1.9%, a weighted volatility of 18.6%, a weighted average dividend yield of 1.0% and a weighted average expected life of 3.9 years. The Company estimates future forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ significantly from those estimates. The Company bases the risk-free interest rate that is used in the Black-Scholes model on U.S. Treasury securities issued with maturities similar to the expected term of the options. The expected stock volatility factor is determined using historical daily price of the common stock and the impact of any expected trends. The dividend yield assumption is based on the current dividend yield at the grant date or management's forecasted expectations. The expected life assumption is determined by calculating the average term from the Company's historical stock option activity and considering the impact of future trends. Restricted Stock Units The Company issues restricted stock units, which typically vest annually over three years. The grant date fair value of the restricted stock units is based on the fair market value of our common stock on the grant date. The number of restricted stock units granted during the years ended December 31, 2020, 2019 and 2018 was 1 million, 2 million and 1 million, respectively. The weighted average grant date fair value of these awards granted during the years ended December 31, 2020, 2019 and 2018, was $127.14, $124.72 and $96.50, respectively. Certain restricted stock units granted in 2020 and 2019 are also subject to performance-based vesting criteria. Certain of the restricted stock units granted in 2020, 2019 and 2018 are also subject to market conditions. The total fair value of restricted stock units that vested was $293 million, $169 million and $97 million in 2020, 2019 and 2018, respectively. The following table summarizes the restricted stock units activity for the year ended December 31, 2020 (in millions except for per share amounts): Quantity Weighted Average Fair Value Balance, December 31, 2019 6 $ 127.23 Granted 1 $ 127.14 Vested (2) $ 124.21 Forfeited — $ 129.72 Balance, December 31, 2020 5 $ 127.63 Stock Compensation Cost The Company recorded total stock compensation expense of $283 million, $402 million and $84 million for the years ended December 31, 2020, 2019 and 2018, respectively, included in Selling, general, and administrative expenses in the consolidated statements of earnings. Stock compensation expense recorded related to the grants with performance conditions is based on management's expected level of achievement of the financial performance measures during the performance period and is adjusted as appropriate throughout the performance period based on the shares expected to be earned at that time. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions Cardinal Holdings The Company holds a noncontrolling ownership stake in Cardinal Holdings ("Cardinal"), which operates the Capco consulting business. FIS' ownership stake in Cardinal was 36% and 37% at December 31, 2020 and 2019, respectively. The ownership stake in Cardinal is recorded as an equity method investment included within Other noncurrent assets on the consolidated balance sheets. The carrying value of this equity method investment was $137 million and $142 million at December 31, 2020 and 2019, respectively. FIS provides ongoing management consulting services and other services to Cardinal. FIS also purchases services and software licenses from Cardinal from time to time. Amounts transacted through these agreements were not significant to the 2020, 2019 and 2018 periods presented. Brazilian Venture |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On September 28, 2018, FIS entered into an agreement with Banco Bradesco to unwind the Brazilian Venture. The transaction closed on December 31, 2018. As a result of the transaction, the Brazilian Venture spun-off certain assets of the business that also provide services to non-Bradesco clients to a new wholly-owned FIS subsidiary. The subsidiary entered into a long-term commercial agreement to provide current and new services to Banco Bradesco effective January 1, 2019, that included software licensing, maintenance, application management, card portfolio migration, business process outsourcing, fraud management and professional services. As a result of the transaction, Banco Bradesco owned 100% of the entity that previously held the Brazilian Venture and its remaining assets that relate to card processing for Banco Bradesco, which Banco Bradesco would perform internally. During the third quarter of 2018, FIS incurred impairment charges of $95 million related to the expected disposal, including $42 million for the Brazilian Venture contract intangible asset, $25 million for goodwill, and $28 million for assets held for sale. Upon closing of the transaction, FIS recorded an additional pre-tax loss of $12 million related to the business divested, removed FIS' noncontrolling interest balance of $90 million, and recorded a $57 million increase to additional paid in capital for the business spun-off into the new wholly-owned FIS subsidiary. The impairment loss and pre-tax loss on disposal were recorded in the Corporate and Other segment. The Brazilian Venture business divested was included within the Capital Market Solutions segment as part of the consolidated Brazilian Venture results recorded by FIS through the transaction date. The transaction did not meet the standard necessary to be reported as discontinued operations; therefore, the impairment loss, pre-tax loss and related prior period earnings remain reported within earnings from continuing operations. Effective August 31, 2018, FIS sold substantially all the assets of the Certegy Check Services business unit in North America, resulting in a pre-tax loss of $54 million, including goodwill distributed through the sale of business of $43 million. |
Components of Other Comprehensi
Components of Other Comprehensive Earnings (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Components of Other Comprehensive Earnings | Components of Other Comprehensive Earnings (Loss) The following table shows Accumulated other comprehensive earnings (loss) attributable to FIS by component, net of tax, for the years ended December 31, 2020, 2019 and 2018 (in millions): Foreign Interest Rate Currency Swap Translation Contracts Adjustments Other (1) Total Balances, December 31, 2017 $ — $ (289) $ (43) $ (332) Other comprehensive gain (loss) before reclassifications — (102) 4 (98) Balances, December 31, 2018 — (391) (39) (430) Other comprehensive gain (loss) before reclassifications (127) 578 (56) 395 Amounts reclassified from accumulated other comprehensive earnings — — 2 2 Balances, December 31, 2019 (127) 187 (93) (33) Other comprehensive gain (loss) before reclassifications (21) 106 3 88 Amounts reclassified from accumulated other comprehensive earnings — — 2 2 Balances, December 31, 2020 $ (148) $ 293 $ (88) $ 57 (1) Includes the minimum pension liability adjustment and the cash settlement payment on treasury lock and forward-starting interest rate swap contracts associated with financing activities from 2019 and prior. Treasury lock and forward-starting interest rate swap related amounts are amortized as an adjustment to interest expense over the periods in which the related interest payments that were hedged are recognized in income. See Note 15 for the tax provision associated with each component of other comprehensive income. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Concentration of Risk The Company generates a significant amount of revenue from large clients; however, no individual client accounted for 10% or more of total revenue in the years ended December 31, 2020, 2019 and 2018. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. The Company places its cash equivalents with high credit-quality financial institutions and, by policy, limits the amount of credit exposure with any one financial institution. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse clients make up the Company's client base, thus spreading the trade receivables credit risk. The Company controls credit risk through monitoring procedures. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information FIS reports its financial performance based on the following segments: Merchant Solutions, Banking Solutions, Capital Market Solutions and Corporate and Other. The Company regularly assesses its portfolio of assets and reclassified certain non-strategic businesses from the Merchant Solutions, Banking Solutions, and Capital Market Solutions segments into the Corporate and Other segment during the year ended December 31, 2020, and recast all prior-period segment information presented. Below is a summary of each segment. Merchant Solutions ("Merchant") The Merchant segment is focused on serving merchants of all sizes globally, enabling them to accept electronic payments, including card-based payments, contactless card and mobile wallet, originated at a physical point of sale, as well as card-not-present payments in eCommerce and mobile environments. Merchant services include all aspects of payment processing, including authorization and settlement, customer service, chargeback and retrieval processing, electronic payment transaction reporting 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. Merchant serves clients in over 140 countries. Our Merchant clients are highly-diversified, including global enterprises, national retailers, 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 all sizes of financial institutions with core processing software, transaction processing software and complementary applications and services, many of which interact directly with the core processing applications. We sell these solutions and services on either a bundled or stand-alone basis. 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 100 countries. 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 (see Note 19). 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 100 countries 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 recordkeeping, 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 procuring fully outsourced end-to-end solutions. Our long-established relationships with many of these financial and commercial institutions generate significant recurring revenue. We have made, and continue to make, investments in modern platforms; advanced technologies, such as cloud delivery, 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, as well as certain non-strategic businesses that we plan to wind down or sell. The overhead and leveraged costs relate to corporate 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 includes the impact on revenue for 2018 of adjusting deferred revenue to fair value from the SunGard acquisition. Additionally, the Corporate and Other segment included the Certegy Check Services business unit in North America through its divestiture on August 31, 2018. During 2020 and 2019, the Company recorded acquisition and integration costs primarily related to the Worldpay acquisition, as well as certain other costs associated with data center consolidation activities totaling $88 million and $70 million, respectively. During 2020, the Company also recorded incremental costs directly related to COVID-19 of $71 million. During 2018, the Company recorded acquisition and integration costs primarily related to the SunGard acquisition, as well as certain other costs associated with data center consolidation activities totaling $26 million. Adjusted EBITDA Adjusted EBITDA is a measure of segment profit or loss that 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 net earnings (loss) before net interest expense, net other income (expense), income tax provision (benefit), equity method investment earnings (loss), and depreciation and amortization, and excludes certain costs and other transactions that management deems non-operational in nature. The non-operational items affecting the segment profit measure generally include purchase accounting adjustments as well as acquisition, integration and certain other costs and asset impairments. Adjusted EBITDA also excludes incremental and direct costs resulting from the COVID-19 pandemic. 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 year ended December 31, 2020 (in millions): Merchant Banking Capital Corporate Total Revenue $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 Operating expenses (2,320) (3,901) (1,566) (4,213) (12,000) Depreciation and amortization (including purchase accounting amortization) 305 513 273 2,623 3,714 Acquisition, integration and other costs — — — 858 858 Asset impairments — — — 136 136 Adjusted EBITDA $ 1,752 $ 2,556 $ 1,147 $ (195) $ 5,260 Adjusted EBITDA $ 5,260 Depreciation and amortization (964) Purchase accounting amortization (2,750) Acquisition, integration and other costs (858) Asset impairments (136) Interest expense, net (334) Other income (expense), net 48 (Provision) benefit for income taxes (96) Equity method investment earnings (loss) (6) Net earnings attributable to noncontrolling interest (6) Net earnings attributable to FIS common stockholders $ 158 Capital expenditures (1) $ 365 $ 498 $ 223 $ 64 $ 1,150 (1) Capital expenditures include $21 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2019 (in millions): Merchant Banking Capital Corporate Total Revenue $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Operating expenses (1,090) (3,679) (1,458) (3,137) (9,364) Depreciation and amortization (including purchase accounting amortization) 115 489 213 1,627 2,444 Acquisition, integration and other costs — — — 704 704 Asset impairments — — — 87 87 Adjusted EBITDA $ 967 $ 2,402 $ 1,073 $ (238) $ 4,204 Adjusted EBITDA $ 4,204 Depreciation and amortization (809) Purchase accounting amortization (1,635) Acquisition, integration and other costs (704) Asset impairments (87) Interest expense, net (337) Other income (expense), net (219) (Provision) benefit for income taxes (100) Equity method investment earnings (loss) (10) Net earnings attributable to noncontrolling interest (5) Net earnings attributable to FIS common stockholders $ 298 Capital expenditures (1) $ 141 $ 612 $ 266 $ 24 $ 1,043 (1) Capital expenditures include $215 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2018 (in millions): Merchant Banking Capital Corporate Total Revenue $ 208 $ 5,416 $ 2,258 $ 541 $ 8,423 Operating expenses (170) (3,679) (1,388) (1,728) (6,965) Depreciation and amortization (including purchase accounting amortization) 7 455 154 804 1,420 Acquisition deferred revenue adjustment — — — 4 4 Acquisition, integration and other costs — — — 156 156 Asset impairments — — — 95 95 Adjusted EBITDA $ 45 $ 2,192 $ 1,024 $ (128) 3,133 Adjusted EBITDA $ 3,133 Depreciation and amortization (688) Purchase accounting amortization (732) Acquisition deferred revenue adjustment (4) Acquisition, integration and other costs (156) Asset impairments (95) Interest expense, net (297) Other income (expense), net (57) (Provision) benefit for income taxes (208) Equity method investment earnings (loss) (15) Net earnings attributable to noncontrolling interest (35) Net earnings attributable to FIS common stockholders $ 846 Capital expenditures (1) $ 10 $ 471 $ 202 $ 30 $ 713 (1) Capital expenditures include $91 million in other financing obligations for certain hardware and software. Clients in the United Kingdom, Germany, Australia, Brazil and India accounted for the majority of the revenue from clients based outside of North America for all periods presented. FIS conducts business in over 140 countries, with no individual country outside of North America accounting for more than 10% of total revenue for the years ended December 31, 2020, 2019 and 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of FIS, its wholly-owned subsidiaries and subsidiaries that are majority-owned. All significant intercompany profits, transactions and balances have been eliminated in consolidation. |
Cash and Cash Equivalents | The Company considers all cash on hand, money market funds and other highly liquid investments with original maturities of three months or less to be cash and cash equivalents. As part of the Company's payment processing business, the Company provides cash settlement services to financial institutions and state and local governments. These services involve the movement of funds between the various parties associated with automated teller machines ("ATM"), point-of-sale or electronic benefit transactions ("EBT"), and this activity results in a balance due to the Company at the end of each business day that it recoups over the next few business days. The in-transit balances due to the Company are included in Cash and cash equivalents on the consolidated balance sheets. The carrying amounts reported in the consolidated balance sheets for these instruments approximate their fair value. |
Fair Value Measurements | Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations In a business combination transaction, an acquirer recognizes, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree and generally measures these items at their acquisition date fair values. Goodwill is recorded as the residual amount by which the purchase price exceeds the fair value of the net assets acquired. Fair values are determined using the framework outlined below under Fair Value Hierarchy and the methodologies addressed in the individual subheadings. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we report provisional amounts in the financial statements for the items for which the accounting is incomplete. Adjustments to provisional amounts initially recorded that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we also recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the acquisition date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. Contingent consideration liabilities or receivables recorded in connection with business acquisitions are also adjusted for changes in fair value until settled. Fair Value of Financial Instruments The carrying amounts reported in the consolidated balance sheets for settlement deposits and merchant float, receivables, payables and short-term borrowings approximate their fair values because of their immediate or short-term maturities. The fair value of the Company's long-term debt is based on quoted prices of our senior notes and trades of our debt in close proximity to year end, which are considered Level 2-type measurements. The Company also holds, or has held, certain derivative instruments, specifically interest rate swaps and foreign currency exchange forward contracts, which are also valued using Level 2-type measurements. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. Therefore, the values presented are not necessarily indicative of amounts the Company could realize or settle currently. Fair Value Hierarchy The authoritative accounting literature defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy based on the quality of inputs used to measure fair value. The fair value hierarchy includes three levels that are based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). If the inputs used to measure the fair value fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the asset or liability. The three levels of the fair value hierarchy are described below. Level 1. Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2. Inputs to the valuation methodology include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. |
Derivative Financial Instruments | The Company records all derivatives, whether designated in hedging relationships or not, on the consolidated balance sheets at fair value. During all periods presented, the Company used cross-currency interest rate swaps to engage in hedging activities relating to its investment in foreign-currency denominated operations. The Company designated these cross-currency interest rate swaps as net investment hedges. The Company also used interest rate swaps to engage in hedging activities relating to changes in the fair value of its long-term debt. The Company designated these interest rate swaps as fair value hedges. During 2019, the Company entered into foreign currency forward contracts as well as treasury lock and interest rate swap contracts to reduce the volatility in the Company's cash flows during the period leading up to the Company's debt issuances related to the Worldpay acquisition. The Company designated these treasury lock and interest rate swap contracts as cash flow hedges. Derivative instruments are included in the accompanying consolidated balance sheets in Prepaid expenses and other current assets; Other noncurrent assets; Accounts payable, accrued and other liabilities; or Other noncurrent liabilities, as appropriate. Changes in fair value are recorded as a component of Accumulated other comprehensive earnings (loss), net of tax, for all derivative instruments except the fair value hedges, which are recorded as an adjustment to long-term debt, and the foreign currency forward contracts, which are recorded through Other income (expense), net. The amounts included in Accumulated other comprehensive earnings (loss) for the cash flow hedges are recorded in interest expense as yield adjustments over the periods in which the related interest payments that were hedged are made. As of December 31, 2020 and 2019, the Company had no outstanding cash flow hedge contracts. The Company also utilizes foreign-currency denominated debt as non-derivative net investment hedges in order to reduce the volatility of the net investment value of its foreign currency denominated operations. The change in fair value of the net investment hedges due to remeasurement of the effective portion, net of tax, is recorded as a component of Accumulated other comprehensive earnings (loss). Any ineffective portion of these hedging instruments impacts net earnings when the ineffectiveness occurs. See Notes 13 and 20 for additional details. |
Trade Receivables | Change in Accounting Policy The Company adopted FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses ("Topic 326"), with an adoption date of January 1, 2020. As a result, the Company changed its accounting policy for allowance for credit losses. The accounting policy pursuant to Topic 326 for credit losses is disclosed below. The adoption of Topic 326 resulted in an immaterial cumulative effect adjustment recorded in retained earnings as of January 1, 2020. Allowance for Credit Losses |
Settlement Activity and Merchant Float | The payment solution services that give rise to the settlement balances described below are separate and distinct from those settlement activities referred to under (b) Cash and Cash Equivalents , where the services we provide primarily facilitate the movement of funds. 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 consolidated balance sheets and operating cash flows on the consolidated statements of cash flows. 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 various financial institutions ("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 Sponsoring Members 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 Visa, MasterCard 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 consolidated balance sheets. 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 one to three business days. 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 one to three business days. 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 (see Note 2(b)). |
Contract Related Balances and Revenue Recognition | The payment terms and conditions in our customer contracts may vary. In some cases, customers pay in advance of our delivery of solutions or services; in other cases, payment is due as services are performed or in arrears following the delivery of the solutions or services. Differences in timing between revenue recognition and invoicing result in accrued trade receivables, contract assets, or deferred revenue on our consolidated balance sheets. Receivables are accrued when revenue is recognized prior to invoicing but the right to payment is unconditional (i.e., only the passage of time is required). This occurs most commonly when software term licenses recognized at a point in time are paid for periodically over the license term. Contract assets result when amounts allocated to distinct performance obligations are recognized when or as control of a solution or service is transferred to the customer but invoicing is contingent on performance of other performance obligations or on completion of contractual milestones. Contract assets are transferred to receivables when the rights become unconditional, typically upon invoicing of the related performance obligations in the contract or upon achieving the requisite project milestone. Deferred revenue results from customer payments in advance of our satisfaction of the associated performance obligation(s) and relates primarily to prepaid maintenance or other recurring services. Deferred revenue is relieved as revenue is recognized. Contract assets and deferred revenue are reported on a contract-by-contract basis at the end of each reporting period. Changes in the contract assets and deferred revenue balances for the years ended December 31, 2020 and 2019, were not materially impacted by any factors other than those described above. Also, in some cases, signing bonuses are paid, or credits are offered, to customers in connection with the origination or renewal of customer contracts. These incentives are recorded as Other noncurrent assets on our consolidated balance sheets and amortized on a straight-line basis as a reduction of revenue over the lesser of the useful life of the solution or the expected customer relationship period for new contracts or over the contract period for renewal contracts. The Company generates revenue in a number of ways, including from the delivery of account- or transaction-based processing, SaaS, business process as a service ("BPaaS"), cloud offerings, software licensing, software-related services and professional services. The Company enters into arrangements with customers to provide services, software and software-related services such as maintenance, implementation and training either individually or as part of an integrated offering of multiple services. At contract inception, the Company assesses the solutions and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a solution or service (or bundle of solutions or services) that is distinct - i.e., if a solution or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. To identify its performance obligations, the Company considers all of the solutions or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company recognizes revenue when or as it satisfies a performance obligation by transferring control of a solution or service to a customer. Revenue is measured based on the consideration that the Company expects to receive in a contract with a customer. The Company's contracts with its customers frequently contain variable consideration. Variable consideration exists when the amount which the Company expects to receive in a contract is based on the occurrence or non-occurrence of future events, such as processing services performed under usage-based pricing arrangements or professional services billed on a time-and-materials basis. Variable consideration is also present in certain transactions in the form of discounts, credits, price concessions, penalties, and similar items. If the amount of a discount or rebate in a contract is fixed and not contingent, that discount or rebate is not variable consideration. The Company estimates variable consideration in its contracts primarily using the expected value method. In some contracts, the Company applies the most likely amount method by considering the single most likely amount in a limited range of possible consideration amounts. The Company develops estimates of variable consideration on the basis of both historical information and current trends. Variable consideration included in the transaction price is constrained such that a significant revenue reversal is not probable. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Postage costs associated with print and mail services are accounted for as a fulfillment cost and are included in cost of revenue. Technology or service components from third parties are frequently embedded in or combined with our applications or service offerings. We are often responsible for billing the client in these arrangements and transmitting the applicable fees to the third party. The Company determines whether it is responsible for providing the actual solution or service as a principal or for arranging for the solution or service to be provided by the third party as an agent. Judgment is applied to determine whether we are the principal or the agent by evaluating whether the Company has control of the solution or service prior to it being transferred to the customer. The principal versus agent assessment is performed at the performance obligation level. Indicators that the Company considers in determining if it has control include whether the Company is primarily responsible for fulfilling the promise to provide the specified solution or service to the customer, the Company has inventory risk and the Company has discretion in establishing the price the customer ultimately pays for the solution or service. Depending upon the level of our contractual responsibilities and obligations for delivering solutions to end customers, we have arrangements where we are the principal and recognize the gross amount billed to the customer and other arrangements where we are the agent and recognize the net amount retained. The total transaction price of a contract is allocated to each performance obligation in a manner depicting the amount of consideration to which the Company expects to be entitled in exchange for transferring the solution(s) or service(s) to the customer (the "allocation objective"). If the allocation objective is met at contractual prices, no allocation adjustments from contract prices are made. Otherwise, the Company reallocates the transaction price to each performance obligation identified in the contract on a relative standalone selling price basis, except when the criteria are met for allocating variable consideration to one or more, but not all, performance obligations in the contract. The Company allocates variable consideration to one or more, but not all performance obligations when the terms of the variable payment relate specifically to the Company's efforts to satisfy the performance obligation (or transfer the distinct solution or service) and when such allocation is consistent with the allocation objective when considering all performance obligations in the contract. Determining whether the criteria for allocating variable consideration to one or more, but not all, performance obligations in the contract requires significant judgment and may affect the timing and amount of revenue recognized. To determine the standalone selling price of its promised solutions or services, the Company conducts a regular analysis to determine whether various solutions or services have an observable standalone selling price. If the Company does not have an observable standalone selling price for a particular solution or service, then standalone selling price for that particular solution or service is estimated using all information that is reasonably available and maximizing observable inputs with approaches including historical pricing, cost plus a margin, adjusted market assessment, and residual approach. The following describes the nature of the Company's primary types of revenue and the revenue recognition policies and significant payment terms as they pertain to the types of transactions the Company enters into with its customers. Transaction Processing and Services Revenue Transaction processing and services revenue is primarily comprised of payment processing, data processing, application management, and outsourced services, including our SaaS, BPaaS and cloud offerings. Revenue from transaction processing and services is recurring and is typically volume- or activity-based depending on factors such as the number of payments, transactions, accounts or trades processed, number of users, number of hours of services or amount of computer resources used. Fees may include tiered pricing structures with the base tier representing a minimum monthly usage fee. Pricing within the tiers typically resets on a monthly basis, and minimum monthly volumes are generally met or exceeded. Contract lengths for processing services typically span one or more years; however, when distinct hosting services are offered, they are often cancelable without a significant penalty with 30-days' notice. Payment is generally due in advance or in arrears on a monthly or quarterly basis and may include fixed or variable payment amounts depending on the specific payment terms and activity in the period. For processing services revenue, the nature of the Company's promise to the customer is to stand ready to provide continuous access to the Company's processing platforms and perform an unspecified quantity of outsourced and transaction-processing services for a specified term or terms. Accordingly, processing services are generally viewed as a stand-ready performance obligation comprised of a series of distinct daily services. The Company typically satisfies its processing services performance obligations over time as the services are provided. A time-elapsed output method is used to measure progress because the Company's efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. The Company has evaluated its variable payment terms related to its processing services revenue accounted for as a series of distinct days of service and concluded that they generally meet the criteria for allocating variable consideration entirely to one or more, but not all, performance obligations in a contract. Accordingly, when the criteria are met, variable amounts based on the number and type of services performed during a period are allocated to and recognized on the day in which the Company performs the related services. Fixed fees for processing services are generally recognized ratably over the contract period. Processing revenue also includes network, interchange, and other pass-through fees. Pass-through fees generally represent variable consideration and are allocated to and recognized on the day on which the related services are performed. Pass-through fees are billed monthly. Network and interchange fees are presented on a net basis; other pass through fees may be recorded on either a gross or a net basis depending on whether the Company is acting as a principal or an agent. Software Maintenance Revenue Software maintenance is comprised of technical support services and unspecified software updates and upgrades provided on a when-and-if-available basis. Software maintenance revenue is generally based on fixed fees. Payment terms are typically annually, quarterly, or monthly in advance. Contract terms vary and can span multiple years. The Company generally satisfies its maintenance-related performance obligations evenly using a time-elapsed output method over the contract term given there is no discernible pattern of performance. Other Recurring Revenue Other recurring revenue is comprised primarily of services provided by dedicated personnel resources who work full time at client sites and under the client's direction. Revenue from dedicated resource agreements is generally based on fixed monthly fees per resource. Payment terms are typically annually, quarterly, or monthly in advance. Contract terms vary and can span multiple years. The Company generally satisfies its dedicated resource obligations evenly using a time-elapsed output method over the contract term given there is no discernible pattern of performance. Software License Revenue The Company's software licenses generally have significant stand-alone functionality to the customer upon delivery and are considered to be functional intellectual property. Additionally, the nature of the Company's promise in granting these software licenses to a customer is typically to provide the customer a right to use the Company's intellectual property. The Company's software licenses are generally considered distinct performance obligations. Revenue allocated to software licenses is typically recognized at a point in time upon delivery of the license and is non-recurring. Contracts that contain software licenses often have non-standard terms that require significant judgments that may affect the amount and timing of revenue recognized. When a software license requires frequent updates that are integral to maintaining the utility of the license to the customer, the Company combines the software license and the maintenance into a single performance obligation, and revenue for the combined performance obligation is recognized in other recurring revenue as the maintenance is provided, consistent with the treatment described for maintenance above. When a software license contract also includes professional services that provide significant modification or customization of the software license, the Company combines the software license and professional services into a single performance obligation, and revenue for the combined performance obligation is recognized as the professional services are provided, consistent with the methods described below for professional services revenue. The Company has contracts where the licensed software is offered in conjunction with hosting services. The licensed software may be considered a separate performance obligation from the hosting services if the customer can take possession of the software during the contractual term without incurring a significant penalty and if it is feasible for the customer to run the software on its own infrastructure or hire a third party to host the software. If the licensed software and hosting services are separately identifiable, license revenue is recognized when the hosting services commence and it is within the customer's control to obtain a copy of the software. If the software license is not separately identifiable from the hosting service, then the related revenue for the combined performance obligation is recognized ratably over the hosting period and classified as processing revenue. Occasionally, the Company offers extended payment terms on its license transactions and evaluates whether any potential significant financing components exist. For certain of its business units, the Company will provide a software license through a rental model wherein the customer generally pays for the software license and maintenance in monthly or quarterly installments as opposed to an upfront software license fee. Revenue recognition under these arrangements follows the same recognition pattern as the arrangements outlined above. Judgment is required to determine whether these arrangements contain a significant financing component. The Company evaluates whether there is a significant difference between the amount of promised consideration over the rental term and the cash selling price of the software license, the degree to which financing is the reason for any such difference, and the overall impact of the time value of money on the transaction. If we conclude a significant financing component exists, then the transaction price is adjusted for the time value of money at the Company's incremental borrowing rate by recording a contract asset and interest income. The Company does not adjust the promised amount of consideration for the effects of the time value of money if the difference between the promised consideration and the cash selling price arises for reasons other than the provision of finance or it is expected, at contract inception, that the period between when the Company transfers a promised solution or service to a customer and when the customer pays for that solution or service will be one year or less. Professional Services Revenue Professional services revenue is comprised of implementation, conversion, and programming services associated with the Company's data processing and application management agreements and implementation or installation services related to licensed software. Although this revenue is non-recurring in nature, it is generally recognized over time, with service durations spanning from several weeks to several years, depending on the scope and complexity of the work. Payment terms for professional services may be based on an upfront fixed fee, fixed upon the achievement of milestones, or on a time-and-materials basis. In assessing whether implementation services provided on data processing, application management or software agreements are a distinct performance obligation, the Company considers whether the services are both capable of being distinct (i.e., can the customer benefit from the services alone or in combination with other resources that are readily available to the customer) and distinct within the context of the contract (i.e., separately identifiable from the other performance obligations in the contract). Implementation services and other professional services are typically considered distinct performance obligations. However, when these services involve significant customization or modification of an underlying solution or offering, or if the services are complex and not available from a third-party provider and must be completed prior to a customer having the ability to benefit from a solution or offering, then such services and the underlying solution or offering will be accounted for as a combined performance obligation. The Company's professional services that are accounted for as distinct performance obligations and that are billed on a fixed fee basis are typically satisfied as services are rendered; thus, the Company uses a cost-based input method, such as cost-to-cost or efforts expended (labor hours), to provide a faithful depiction of the transfer of those services. For professional services that are distinct and billed on a time-and-materials basis, revenue is generally recognized using an output method that corresponds with the time and materials billed and delivered, which is reflective of the transfer of the services to the customer. Professional services that are not distinct from an associated solution or offering are recognized over the common measure of progress for the overall performance obligation (typically a time-elapsed output measure that corresponds to the period over which the solution or offering is made available to the customer). Other Non-recurring Revenue Other non-recurring revenue is comprised primarily of hardware, one-time card production, and early termination fees. The Company typically does not stock in inventory the hardware solutions sold but arranges for delivery of hardware from third-party suppliers. The Company determines whether hardware delivered from third-party suppliers should be recognized on a gross or net basis by evaluating whether the Company has control of the solution or service prior to it being transferred to the customer. Equipment and one-time card production revenue is generally recognized at a point in time upon delivery. Early contract terminations are treated as contract modifications. Early termination fees are added to a contract's transaction price once it becomes likely that liquidated damages will be charged to a customer, typically upon notification of early termination. Early termination fees are recognized over the remaining period of the related performance obligation(s). Material Rights Some of the Company's contracts with customers include options for the customer to acquire additional solutions or services in the future, including options to renew existing services. Options may represent a material right to acquire solutions or services if the discount is incremental to the range of discounts typically given for those solutions or services to that class of customer in that geographical area or market, and the customer would not have obtained the option without entering into the contract. If deemed to be a material right, the Company will account for the material right as a separate performance obligation and determine the standalone selling price based on directly observable prices when available. If the standalone selling price is not directly observable, then the Company estimates the standalone selling price to be equal to the discount that the customer would obtain by exercising the option, as adjusted for any discount that the customer would receive without exercising the option and for the likelihood that the option will be exercised. |
Goodwill | Goodwill represents the excess of cost over the fair value of identifiable assets acquired and liabilities assumed in business combinations. Goodwill is not amortized but is assessed for impairment by reporting unit. The Company assesses goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. An impairment charge is recognized when and to the extent a reporting unit's carrying amount is determined to exceed its fair value. Our reporting units are the same as our primary operating segments, with additional reporting units for certain non-strategic businesses within the Corporate and Other segment. The Company has the option to first assess qualitatively whether it is more likely than not that a reporting unit's carrying amount exceeds its fair value. The option of whether to perform the qualitative assessment is made annually and may vary by reporting unit. Events and circumstances that are considered in performing the qualitative assessment include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, events affecting the reporting unit or Company as a whole, including a sustained decrease in stock price. When performing the qualitative assessment, we examine those factors most likely to affect each reporting unit's fair value. If we conclude that it is more likely than not that the reporting unit's fair value is less than its carrying amount (that is, a likelihood of more than 50 percent) as a result of the qualitative assessment, or we elect to bypass the qualitative assessment for a reporting unit, then we must perform the quantitative assessment for that reporting unit. In applying the quantitative assessment, we typically engage third-party valuation specialists to assist us in determining the fair value of a reporting unit based on a weighted average of multiple valuation techniques, principally a combination of an income approach and a market approach, which are Level 3-type measurements. The income approach calculates a value based upon the present value of estimated future cash flows, while the market approach uses earnings multiples of similarly situated guideline public companies. If the fair value of the reporting unit determined using the quantitative analysis exceeds the carrying amount of the reporting unit's net assets, goodwill is not impaired. For each of 2019 and 2018, we began our annual assessment with the qualitative assessment and concluded that that it remained more likely than not that the fair value of each of our reporting units continued to exceed the carrying amounts. For 2020, we began our annual assessment for the Banking Solutions and Capital Market Solutions reporting units with qualitative assessments and concluded that it remained more likely than not that the fair value of each of the reporting units continued to exceed their respective carrying amounts. For Merchant Solutions, we began our 2020 annual assessment with a quantitative assessment due to the economic impact of the COVID-19 pandemic on our Merchant Solutions business and its primary operations being recently acquired as part of the Worldpay acquisition. As a result of the assessment, the fair value of the reporting unit was estimated to be in excess of carrying amount by approximately 4%. Based on the results of our assessments for 2020, $94 million of goodwill related to certain non-strategic businesses within the Corporate and Other segment was impaired. For all other reporting units for all periods presented, goodwill was not impaired. In addition, due to the continued economic impact of the COVID-19 pandemic, we evaluated if events and circumstances as of December 31, 2020, indicated potential impairment. We performed a qualitative assessment by examining factors most likely to affect our reporting units' fair values and considered the impact to our business from the COVID-19 pandemic. The factors examined involve significant use of management judgment and included, among others, (1) forecasted revenue, growth rates, operating margins, and capital expenditures used to calculate estimated future cash flows, (2) future economic and market conditions and (3) FIS' market capitalization. Based on our impairment assessment as of December 31, 2020, we concluded that it remained more likely than not that the fair value continues to exceed the carrying amount for each of our reporting units; therefore, goodwill was not impaired. |
Long-Lived Assets | Long-lived assets and intangible assets with finite useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset, which are Level 3-type measurements. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. During 2020, the Company recorded impairment losses totaling $42 million of certain long-lived assets related to reducing office space, including $30 million for operating lease right-of-use assets. |
Intangible Assets | The Company has intangible assets that consist primarily of customer relationships and trademarks (i.e., a collective term for trademarks, trade names, and related intellectual property rights) that are recorded in connection with acquisitions at their fair value based on the results of valuation analyses. Customer relationships and trademarks acquired in business combinations are generally valued using the multi-period excess earnings method and relief-from-royalty method, respectively, which are Level 3-type measurements. Customer relationships are amortized over their estimated useful lives using an accelerated method that takes into consideration expected customer attrition rates up to a 10-year period. Trademarks determined to have indefinite lives are not amortized. Trademarks with finite lives are amortized over periods ranging up to five years. Intangible assets with finite lives (principally customer relationships and certain trademarks) are reviewed for impairment following the same approach as long-lived assets, while certain trademarks determined to have indefinite lives are reviewed for impairment, following the same approach as goodwill.The Company assesses indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. For each of 2020, 2019 and 2018, we performed a qualitative assessment examining those factors most likely to affect our valuations and concluded that it is more likely than not that our indefinite-lived intangible assets were not impaired. |
Software | Software includes software acquired in business combinations, purchased software and capitalized software development costs. Software acquired in business combinations is generally valued using the relief-from-royalty method, a Level 3-type measurement. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life, and software acquired in business combinations is recorded at its fair value and amortized using straight-line or accelerated methods over its estimated useful life, ranging from one The capitalization of software development costs is based on whether the software is to be sold, leased or otherwise marketed, or if the software is for internal use. After the technological feasibility of the software has been established (for software to be marketed) or at the beginning of application development (for internal-use software), software development costs, which primarily include salaries and related payroll costs and costs of independent contractors incurred during development, are capitalized. Research and development costs incurred prior to the establishment of technological feasibility (for software to be marketed) or prior to application development (for internal-use software), are expensed as incurred. Software development costs are amortized on a solution-by-solution basis commencing on the date of general release (for software to be marketed) or the date placed in service (for internal-use software). Software development costs for software to be marketed are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three |
Deferred Contract Costs | The Company incurs costs as a result of both the origination and fulfillment of our contracts with customers. Origination costs relate primarily to the payment of sales commissions that are directly related to sales transactions. Fulfillment costs include the cost of implementation services related to software as a service ("SaaS") and other cloud-based arrangements when the implementation service is not distinct from the ongoing service. When origination costs and fulfillment costs that will be used to satisfy future performance obligations are directly related to the execution of our contracts with customers, and the costs are recoverable under the contract, the costs are capitalized as a deferred contract cost. Impairment losses are recognized if the carrying amounts of the deferred contract costs are not recoverable. There were no significant impairment losses recognized on deferred contract costs for 2020, 2019, or 2018. Origination costs for contracts that contain a distinct software license recognized at a point in time are allocated between the license and all other performance obligations of the contract and amortized according to the pattern of performance for the respective obligations. Otherwise, origination costs are capitalized as a single asset for each contract or portfolio of similar contracts and amortized using an appropriate single measure of performance considering all of the performance obligations in the contracts. The Company amortizes origination costs over the expected benefit period to which the deferred contract cost relates. Origination costs related to initial contracts with a customer are amortized over the lesser of the useful life of the solution or the expected customer relationship period. Commissions paid on renewals are amortized over the renewal period. Capitalized fulfillment costs are amortized over the lesser of the useful life of the solution or the expected customer relationship period. |
Property and Equipment | Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed primarily using the straight-line method based on the estimated useful lives of the related assets as follows: 30 years for buildings and three |
Income Taxes | The Company recognizes deferred income tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities and expected benefits of using net operating loss and credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred income taxes of changes in tax rates and laws, if any, is reflected in the consolidated financial statements in the period enacted. A valuation allowance is established for any portion of a deferred income tax asset for which management believes it is more likely than not that the Company will not be able to realize the benefits of all or a portion of that deferred income tax asset. Certain of the Company's earnings are indefinitely reinvested offshore and could be subject to additional income tax if repatriated. It is not practicable to determine the unrecognized deferred tax liability on a hypothetical distribution of those earnings. |
Operating Leases | 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 Consolidated Balance Sheet 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. one |
Cost of Revenue and Selling, General and Administrative Expenses | Cost of revenue includes payroll, employee benefits, occupancy costs and other costs associated with personnel employed in customer service and service delivery roles, including program design and development and professional services. Cost of revenue also includes data processing costs, amortization of software, customer relationship and trademark intangible assets, and depreciation on operating assets. Selling, general and administrative expenses include payroll, employee benefits, occupancy and other costs associated with personnel employed in sales, marketing, human resources, finance, risk management and other administrative roles. Selling, general and administrative expenses also include depreciation on non-operating corporate assets, advertising costs and other marketing-related programs. |
Stock-Based Compensation Plans | The Company accounts for stock-based compensation plans using the fair value method. Thus, compensation cost is measured based on the fair value of the award at the grant date and is recognized over the service period. Certain of our stock awards also contain performance conditions. In those circumstances, compensation cost is recognized over the service period when it is probable the outcome of that performance condition will be achieved. If the Company concludes at any point prior to completion of the requisite service period that it is not probable that the performance condition will be met, any previously recorded expense is reversed. Certain of our stock awards contain market conditions. In those circumstances, compensation cost is recognized over the service period and is not reversed even if the award does not become exercisable because the market condition is not achieved. |
Foreign Currency Translation | The functional currency for the foreign operations of the Company is either the U.S. Dollar or the local foreign currency. For foreign operations where the local currency is the functional currency, the translation into U.S. Dollars for consolidation is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using the average exchange rate during the period. The adjustments resulting from the translation are included in Accumulated other comprehensive earnings (loss) in the consolidated statements of equity and consolidated statements of comprehensive earnings and are excluded from net earnings. Gains or losses resulting from measuring foreign currency transactions into the respective functional currency are included in Other income (expense), net in the consolidated statements of earnings. |
Management Estimates | The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Net Earnings per Share | The basic weighted average shares and common stock equivalents for the years ended December 31, 2020, 2019 and 2018 are computed using the treasury stock method. |
Certain Reclassifications | Certain reclassifications have been made in the 2019 and 2018 consolidated financial statements to conform to the classifications used in 2020. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Restricted Cash and Cash Equivalents | The reconciliation between Cash and cash equivalents in the consolidated balance sheets and the consolidated statements of cash flows is as follows (in millions): December 31. 2020 2019 Cash and cash equivalents on the consolidated balance sheets $ 1,959 $ 1,152 Merchant float restricted cash (in Settlement deposits and merchant float) (see Note 2(f)) 2,071 1,519 Other restricted cash (see Note 11 - Visa Europe and contingent value rights) — 540 Total Cash and cash equivalents per the consolidated statements of cash flows $ 4,030 $ 3,211 |
Cash and Cash Equivalents | The reconciliation between Cash and cash equivalents in the consolidated balance sheets and the consolidated statements of cash flows is as follows (in millions): December 31. 2020 2019 Cash and cash equivalents on the consolidated balance sheets $ 1,959 $ 1,152 Merchant float restricted cash (in Settlement deposits and merchant float) (see Note 2(f)) 2,071 1,519 Other restricted cash (see Note 11 - Visa Europe and contingent value rights) — 540 Total Cash and cash equivalents per the consolidated statements of cash flows $ 4,030 $ 3,211 |
Schedule of Net Earnings Per Share | Net earnings and earnings per share for the years ended December 31, 2020, 2019 and 2018 are as follows (in millions, except per share data): Year ended December 31, 2020 2019 2018 Net earnings attributable to FIS common stockholders $ 158 $ 298 $ 846 Weighted average shares outstanding-basic 619 445 328 Plus: Common stock equivalent shares 8 6 4 Weighted average shares outstanding-diluted 627 451 332 Net earnings per share-basic attributable to FIS common stockholders $ 0.26 $ 0.67 $ 2.58 Net earnings per share-diluted attributable to FIS common stockholders $ 0.25 $ 0.66 $ 2.55 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisition Purchase Price | The total purchase price was as follows (in millions): Cash consideration $ 3,423 Value of FIS share consideration (1) 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 (1) Worldpay shareholders received approximately 289 million shares of FIS common stock valued 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. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final purchase price allocation is as follows (in millions): Cash acquired $ 305 Settlement deposits and merchant float (1) 2,444 Trade receivables 1,594 Goodwill 38,057 Intangible assets 13,682 Computer software 1,297 Other noncurrent assets (2) 1,641 Accounts payable, accrued and other liabilities (1,021) Settlement payables (3,167) Deferred income taxes (2,860) Long-term debt, subsequently repaid (1,805) Other liabilities and noncontrolling interest (3) (1,922) Total purchase price $ 48,245 (1) Includes $1,693 million of merchant float. (2) Includes $534 million of other restricted cash. (3) Includes $542 million of noncurrent tax receivable agreement liability (see Note 16) and $875 million contingent value rights liability (see Note 11). |
Business Acquisition, Pro Forma Information | Unaudited supplemental pro forma results of operations for the years ended December 31, 2019 and 2018, assuming the acquisition had occurred as of January 1, 2018, are presented below (in millions, except per share amounts): Year ended December 31, 2019 2018 Revenue $ 12,724 $ 12,373 Net earnings (loss) attributable to FIS common stockholders $ 254 $ (57) Net earnings (loss) per share-basic attributable to FIS common stockholders $ 0.41 $ (0.09) Net earnings (loss) per share-diluted attributable to FIS common stockholders $ 0.41 $ (0.09) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the year ended December 31, 2020 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 2,719 $ 5,105 $ 1,453 $ 274 $ 9,551 All others 1,048 839 987 127 3,001 Total $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 Type of Revenue: Recurring revenue: Transaction processing and services $ 3,680 $ 4,443 $ 1,091 $ 374 $ 9,588 Software maintenance 2 352 493 1 848 Other recurring 77 165 99 2 343 Total recurring 3,759 4,960 1,683 377 10,779 Software license 2 89 328 6 425 Professional services 1 605 427 5 1,038 Other non-recurring fees 5 290 2 13 310 Total $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 For the year ended December 31, 2019 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 1,409 $ 4,738 $ 1,398 $ 314 $ 7,859 All others 533 854 920 167 2,474 Total $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Type of Revenue: Recurring revenue: Transaction processing and services $ 1,890 $ 4,056 $ 993 $ 420 $ 7,359 Software maintenance 2 360 482 — 844 Other recurring 37 177 106 — 320 Total recurring 1,929 4,593 1,581 420 8,523 Software license 8 150 328 13 499 Professional services 1 581 406 6 994 Other non-recurring fees 4 268 3 42 317 Total $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 For the year ended December 31, 2018 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 208 $ 4,353 $ 1,359 $ 363 $ 6,283 All others — 1,063 899 178 2,140 Total $ 208 $ 5,416 $ 2,258 $ 541 $ 8,423 Type of Revenue: Recurring revenue: Transaction processing and services $ 197 $ 4,005 $ 953 $ 504 $ 5,659 Software maintenance 3 351 479 1 834 Other recurring — 197 114 10 321 Total recurring 200 4,553 1,546 515 6,814 Software license 4 101 311 — 416 Professional services 1 562 401 6 970 Other non-recurring fees 3 200 — 20 223 Total $ 208 $ 5,416 $ 2,258 $ 541 $ 8,423 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 Land $ 48 $ 34 Buildings 295 275 Leasehold improvements 157 163 Computer equipment 1,622 1,382 Furniture, fixtures, and other equipment 170 323 2,292 2,177 Accumulated depreciation and amortization (1,405) (1,277) Total Property and equipment, net $ 887 $ 900 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes In Goodwill | Changes in goodwill during the years ended December 31, 2020 and 2019, are summarized below (in millions). Prior-period amounts have been recast to conform to the new reportable segment presentation as discussed in Note 22. Merchant Banking Capital Corporate and Other Total Balance, December 31, 2018 $ 276 $ 8,811 $ 4,344 $ 114 $ 13,545 Goodwill attributable to acquisitions 34,657 3,414 — — 38,071 Foreign currency adjustments 620 (8) 14 — 626 Balance, December 31, 2019 35,553 12,217 4,358 114 52,242 Goodwill attributable to acquisitions (11) 57 253 — 299 Foreign currency adjustments 725 5 91 — 821 Asset impairments — — — (94) (94) Balance, December 31, 2020 $ 36,267 $ 12,279 $ 4,702 $ 20 $ 53,268 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets as of December 31, 2020, consist of the following (in millions): Cost Accumulated Net Customer relationships and other $ 18,586 $ (5,024) $ 13,562 Finite-lived trademarks 511 (189) 322 Indefinite-lived trademarks 44 — 44 Total Intangible assets, net $ 19,141 $ (5,213) $ 13,928 Intangible assets as of December 31, 2019, consist of the following (in millions): Cost Accumulated Net Customer relationships and other $ 18,018 $ (2,681) $ 15,337 Finite-lived trademarks 503 (85) 418 Indefinite-lived trademarks 43 — 43 Total Intangible assets, net $ 18,564 $ (2,766) $ 15,798 Software as of December 31, 2020 and 2019, consists of the following (in millions): 2020 2019 Software from acquisitions $ 2,077 $ 1,959 Capitalized software development costs 2,826 2,258 Purchased software 632 603 5,535 4,820 Accumulated amortization (2,165) (1,616) Total Software, net $ 3,370 $ 3,204 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets as of December 31, 2020, consist of the following (in millions): Cost Accumulated Net Customer relationships and other $ 18,586 $ (5,024) $ 13,562 Finite-lived trademarks 511 (189) 322 Indefinite-lived trademarks 44 — 44 Total Intangible assets, net $ 19,141 $ (5,213) $ 13,928 Intangible assets as of December 31, 2019, consist of the following (in millions): Cost Accumulated Net Customer relationships and other $ 18,018 $ (2,681) $ 15,337 Finite-lived trademarks 503 (85) 418 Indefinite-lived trademarks 43 — 43 Total Intangible assets, net $ 18,564 $ (2,766) $ 15,798 |
Schedule of Estimated Amortization of Intangibles | Estimated amortization of intangible assets for the next five years is as follows (in millions): 2021 $ 2,378 2022 2,226 2023 2,035 2024 1,836 2025 1,667 |
Software (Tables)
Software (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Research and Development [Abstract] | |
Software | Intangible assets as of December 31, 2020, consist of the following (in millions): Cost Accumulated Net Customer relationships and other $ 18,586 $ (5,024) $ 13,562 Finite-lived trademarks 511 (189) 322 Indefinite-lived trademarks 44 — 44 Total Intangible assets, net $ 19,141 $ (5,213) $ 13,928 Intangible assets as of December 31, 2019, consist of the following (in millions): Cost Accumulated Net Customer relationships and other $ 18,018 $ (2,681) $ 15,337 Finite-lived trademarks 503 (85) 418 Indefinite-lived trademarks 43 — 43 Total Intangible assets, net $ 18,564 $ (2,766) $ 15,798 Software as of December 31, 2020 and 2019, consists of the following (in millions): 2020 2019 Software from acquisitions $ 2,077 $ 1,959 Capitalized software development costs 2,826 2,258 Purchased software 632 603 5,535 4,820 Accumulated amortization (2,165) (1,616) Total Software, net $ 3,370 $ 3,204 |
Deferred Contract Costs (Tables
Deferred Contract Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Capitalized Contract Cost [Abstract] | |
Schedule of Deferred Contract Costs | Origination and fulfillment costs from contracts with customers capitalized as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 Contract costs on implementations in progress $ 245 $ 138 Contract origination costs on completed implementations, net 470 352 Contract fulfillment costs on completed implementations, net 202 177 Total Deferred contract costs, net $ 917 $ 667 |
Accounts Payable, Accrued and_2
Accounts Payable, Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable, accrued and other liabilities as of December 31, 2020 and 2019, consists of the following (in millions): 2020 2019 Salaries and incentives $ 261 $ 414 Accrued benefits and payroll taxes 155 116 Trade accounts payable and other accrued liabilities 1,576 1,386 Accrued interest payable 102 109 Taxes other than income tax 236 220 Operating lease liabilities 152 129 Total Accounts payable, accrued and other liabilities $ 2,482 $ 2,374 |
Other Noncurrent Assets and L_2
Other Noncurrent Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Noncurrent Assets and Liabilities [Abstract] | |
Other Noncurrent Assets | Other noncurrent assets as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 Visa Europe and contingent value rights ("CVR") related assets $ 70 $ 940 Operating lease ROU assets (1) 534 564 Other 970 799 Total Other noncurrent assets $ 1,574 $ 2,303 |
Other Noncurrent Liabilities | Other noncurrent liabilities as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 CVR liability $ 401 $ 838 Tax Receivable Agreement liability (2) 447 532 Operating lease liabilities (1) 453 466 Other 666 570 Total Other noncurrent liabilities $ 1,967 $ 2,406 (1) See Note 14, Operating Leases (2) See Note 16, Commitments and Contingencies |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Long-term debt as of December 31, 2020 and 2019, consists of the following (in millions): December 31, 2020 Weighted Average Interest Interest December 31, Rates Rate Maturities 2020 2019 Fixed Rate Notes Senior USD Notes 3.0% - 5.0% 3.7% 2023 - 2048 $ 4,938 $ 4,938 Senior Euro Notes 0.1% - 3.0% 1.1% 2021 - 2039 8,891 8,694 Senior GBP Notes 1.7% - 3.4% 2.7% 2022 - 2031 2,526 2,440 Senior Euro Floating Rate Notes —% 2021 613 561 Revolving Credit Facility (1) 1.3% 2023 251 600 Other 46 136 Total long-term debt, including current portion 17,265 17,369 Current portion of long-term debt (1,314) (140) Long-term debt, excluding current portion $ 15,951 $ 17,229 |
Schedule of Short-term Debt | Short-term borrowings as of December 31, 2020 and 2019, consist of the following (in millions): December 31, 2020 Weighted Average Interest December 31, Rate Maturities 2020 2019 Euro-commercial paper notes ("ECP Notes") (0.3) % Up to 183 days $ 861 $ 2,523 U.S. commercial paper notes ("USCP Notes") 0.4 % Up to 397 days 1,745 200 Other 144 100 Total Short-term borrowings $ 2,750 $ 2,823 |
Schedule of Principal Maturities of 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 swaps discussed below and net unamortized non-cash bond premiums and discounts of $29 million as of December 31, 2020 (in millions): Total 2021 $ 1,314 2022 1,669 2023 2,508 2024 1,020 2025 2,238 Thereafter 8,634 Total principal payments 17,383 Debt issuance costs, net of accumulated amortization (89) Total long-term debt $ 17,294 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating Lease Balance Sheet Classification | The classification of the Company's operating lease ROU assets and liabilities in the consolidated balance sheets as of December 31, 2020 and 2019, is as follows (in millions): December 31, Classification 2020 2019 Operating lease ROU assets Other noncurrent assets $ 534 $ 564 Operating lease liabilities Accounts payable, accrued and other liabilities $ 152 $ 129 Other noncurrent liabilities 453 466 Total operating lease liabilities $ 605 $ 595 |
Operating Lease Liability Maturity Schedule | Maturities of operating lease liabilities, as of December 31, 2020, are as follows (in millions): 2021 $ 159 2022 129 2023 103 2024 78 2025 58 Thereafter 138 Total lease payments 665 Less: Imputed interest (60) Total operating lease liabilities $ 605 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2020, 2019 and 2018, consists of the following (in millions): 2020 2019 2018 Current provision: Federal $ 81 $ 53 $ 169 State 50 46 50 Foreign 176 116 105 Total current provision $ 307 $ 215 $ 324 Deferred provision (benefit): Federal $ (53) $ (47) $ (95) State (28) 7 (11) Foreign (130) (75) (10) Total deferred provision (benefit) (211) (115) (116) Total Provision (benefit) for income taxes $ 96 $ 100 $ 208 Total income tax expense for the years ended December 31, 2020, 2019 and 2018, is allocated as follows (in millions): 2020 2019 2018 Tax expense (benefit) per statement of earnings $ 96 $ 100 $ 208 Tax expense (benefit) attributable to discontinued operations — — (1) Unrealized (loss) gain on foreign currency translation (154) 240 — Unrealized gain (loss) on interest rate swaps (7) (41) — Other components of other comprehensive earnings (loss) — (3) 1 Total income tax expense (benefit) allocated to other comprehensive income (161) 196 1 Total income tax expense (benefit) $ (65) $ 296 $ 208 |
Schedule of Pre-tax Income from Continuing Operations | The provision for income taxes is based on pre-tax income from continuing operations, which is as follows for the years ended December 31, 2020, 2019 and 2018 (in millions): 2020 2019 2018 United States $ 441 $ 220 $ 744 Foreign (175) 193 360 Total $ 266 $ 413 $ 1,104 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory income tax rate to the Company's effective income tax rate for the years ended December 31, 2020, 2019 and 2018, is as follows: 2020 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes 14.6 2.5 2.9 Federal benefit of state taxes (3.1) (0.5) (0.6) Foreign rate differential (10.1) (1.7) — U.K. tax rate adjustment 38.2 — — Tax benefit from stock-based compensation (18.1) (8.1) (5.2) Acquisition-related items (15.9) 1.8 — Book basis in excess of tax basis for goodwill impairment and disposition 9.2 — 3.0 Non-deductible executive compensation 9.0 10.6 0.4 CVR liability fair value and foreign currency adjustment 8.2 0.7 — Foreign-derived intangible income deduction (7.2) (3.3) (1.8) Return to provision adjustments (4.9) (0.4) (0.3) Research and development credit (4.1) (2.4) (0.9) State tax rate adjustment (2.8) 5.1 — Cares Act net operating loss adjustment (2.3) — — Withholding tax on distribution 2.1 — (0.4) Deferred tax and other rate adjustments 1.1 0.2 — Unrecognized tax benefits 0.3 (1.4) (0.3) Global intangible low-tax income — — 1.1 Other 0.8 0.1 (0.1) Effective income tax rate 36.0 % 24.2 % 18.8 % |
Schedule of Deferred Income Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities as of December 31, 2020 and 2019, consist of the following (in millions): 2020 2019 Deferred income tax assets: Net operating loss carryforwards $ 221 $ 177 Employee benefit accruals 155 177 Other deferred tax assets 204 142 Total gross deferred income tax assets 580 496 Less valuation allowance (204) (178) Total deferred income tax assets 376 318 Deferred income tax liabilities: Amortization of goodwill and intangible assets (3,945) (4,123) Foreign currency translation adjustment (95) (208) Deferred contract costs (173) (125) Other deferred tax liabilities (140) (105) Total deferred income tax liabilities (4,353) (4,561) Net deferred income tax liability $ (3,977) $ (4,243) Deferred income taxes are classified in the consolidated balance sheets as of December 31, 2020 and 2019, as follows (in millions): 2020 2019 Noncurrent assets (included in Other noncurrent assets) $ 40 $ 38 Total deferred income tax assets 40 38 Noncurrent liabilities (4,017) (4,281) Total deferred income tax liabilities (4,017) (4,281) Net deferred income tax liability $ (3,977) $ (4,243) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table reconciles the gross amounts of unrecognized tax benefits at the beginning and end of the period (in millions): Gross Amount Amounts of unrecognized tax benefits as of December 31, 2018 $ 61 Amount of decreases due to lapse of the applicable statute of limitations (5) Amount of decreases due to settlements (17) Increases as a result of tax positions taken in the current period 1 Assumed in Worldpay acquisition 5 Amount of unrecognized tax benefit as of December 31, 2019 45 Amount of decreases due to lapse of the applicable statute of limitations (1) Amount of decreases due to settlements (9) Increases as a result of tax positions taken in the current period 9 Amount of unrecognized tax benefit as of December 31, 2020 $ 44 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of TRA Obligation | The following table summarizes our estimated payment obligation timing under the TRA as of December 31, 2020 (in millions): Payments Due in Type of Obligation Total Less than 1 year 1-3 Years 3-5 Years More than 5 Years Obligations under TRA $ 532 $ 85 $ 379 $ 68 $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for the year ended December 31, 2020 (in millions except for per share amounts): Options Weighted Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2019 11 $ 76.01 4.4 $ 745 Granted 2 120.47 Exercised (5) 68.14 $ 348 Cancelled — 115.47 Balance, December 31, 2020 8 $ 88.01 3.8 $ 464 Options exercisable at December 31, 2020 6 $ 75.35 2.8 $ 381 |
Schedule of Stock Option Valuation Assumptions | The weighted average fair value of options granted during the years ended December 31, 2020, 2019 and 2018, was $21.17, $19.25 and $16.07, respectively, using the Black-Scholes option pricing model with the assumptions below: 2020 2019 2018 Risk free interest rate 0.4 % 2.2 % 2.5 % Volatility 24.7 % 20.1 % 19.2 % Dividend yield 1.2 % 1.2 % 1.3 % Weighted average expected life (years) 4.1 4.1 4.2 |
Restricted Stock Unit, Activity | The following table summarizes the restricted stock units activity for the year ended December 31, 2020 (in millions except for per share amounts): Quantity Weighted Average Fair Value Balance, December 31, 2019 6 $ 127.23 Granted 1 $ 127.14 Vested (2) $ 124.21 Forfeited — $ 129.72 Balance, December 31, 2020 5 $ 127.63 |
Components of Other Comprehen_2
Components of Other Comprehensive Earnings (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Earnings | The following table shows Accumulated other comprehensive earnings (loss) attributable to FIS by component, net of tax, for the years ended December 31, 2020, 2019 and 2018 (in millions): Foreign Interest Rate Currency Swap Translation Contracts Adjustments Other (1) Total Balances, December 31, 2017 $ — $ (289) $ (43) $ (332) Other comprehensive gain (loss) before reclassifications — (102) 4 (98) Balances, December 31, 2018 — (391) (39) (430) Other comprehensive gain (loss) before reclassifications (127) 578 (56) 395 Amounts reclassified from accumulated other comprehensive earnings — — 2 2 Balances, December 31, 2019 (127) 187 (93) (33) Other comprehensive gain (loss) before reclassifications (21) 106 3 88 Amounts reclassified from accumulated other comprehensive earnings — — 2 2 Balances, December 31, 2020 $ (148) $ 293 $ (88) $ 57 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for the Company's Segments | 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 year ended December 31, 2020 (in millions): Merchant Banking Capital Corporate Total Revenue $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 Operating expenses (2,320) (3,901) (1,566) (4,213) (12,000) Depreciation and amortization (including purchase accounting amortization) 305 513 273 2,623 3,714 Acquisition, integration and other costs — — — 858 858 Asset impairments — — — 136 136 Adjusted EBITDA $ 1,752 $ 2,556 $ 1,147 $ (195) $ 5,260 Adjusted EBITDA $ 5,260 Depreciation and amortization (964) Purchase accounting amortization (2,750) Acquisition, integration and other costs (858) Asset impairments (136) Interest expense, net (334) Other income (expense), net 48 (Provision) benefit for income taxes (96) Equity method investment earnings (loss) (6) Net earnings attributable to noncontrolling interest (6) Net earnings attributable to FIS common stockholders $ 158 Capital expenditures (1) $ 365 $ 498 $ 223 $ 64 $ 1,150 (1) Capital expenditures include $21 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2019 (in millions): Merchant Banking Capital Corporate Total Revenue $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Operating expenses (1,090) (3,679) (1,458) (3,137) (9,364) Depreciation and amortization (including purchase accounting amortization) 115 489 213 1,627 2,444 Acquisition, integration and other costs — — — 704 704 Asset impairments — — — 87 87 Adjusted EBITDA $ 967 $ 2,402 $ 1,073 $ (238) $ 4,204 Adjusted EBITDA $ 4,204 Depreciation and amortization (809) Purchase accounting amortization (1,635) Acquisition, integration and other costs (704) Asset impairments (87) Interest expense, net (337) Other income (expense), net (219) (Provision) benefit for income taxes (100) Equity method investment earnings (loss) (10) Net earnings attributable to noncontrolling interest (5) Net earnings attributable to FIS common stockholders $ 298 Capital expenditures (1) $ 141 $ 612 $ 266 $ 24 $ 1,043 (1) Capital expenditures include $215 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2018 (in millions): Merchant Banking Capital Corporate Total Revenue $ 208 $ 5,416 $ 2,258 $ 541 $ 8,423 Operating expenses (170) (3,679) (1,388) (1,728) (6,965) Depreciation and amortization (including purchase accounting amortization) 7 455 154 804 1,420 Acquisition deferred revenue adjustment — — — 4 4 Acquisition, integration and other costs — — — 156 156 Asset impairments — — — 95 95 Adjusted EBITDA $ 45 $ 2,192 $ 1,024 $ (128) 3,133 Adjusted EBITDA $ 3,133 Depreciation and amortization (688) Purchase accounting amortization (732) Acquisition deferred revenue adjustment (4) Acquisition, integration and other costs (156) Asset impairments (95) Interest expense, net (297) Other income (expense), net (57) (Provision) benefit for income taxes (208) Equity method investment earnings (loss) (15) Net earnings attributable to noncontrolling interest (35) Net earnings attributable to FIS common stockholders $ 846 Capital expenditures (1) $ 10 $ 471 $ 202 $ 30 $ 713 (1) Capital expenditures include $91 million in other financing obligations for certain hardware and software. |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent of revenue subject to segment reclassification of certain non-strategic businesses (percent) | 3.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents on the consolidated balance sheets | $ 1,959 | $ 1,152 | ||
Merchant float restricted cash (in Settlement deposits and merchant float) | 2,071 | 1,519 | ||
Other restricted cash | 0 | 540 | ||
Total Cash and cash equivalents per the consolidated statements of cash flows | $ 4,030 | $ 3,211 | $ 703 | $ 665 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Asset impairments | $ 94 | |||
Impairment of held for use assets | 42 | |||
Operating lease impairment loss | 30 | |||
Operating lease ROU assets | 534 | $ 564 | ||
Operating lease liability | $ 605 | $ 595 | ||
Purchase of common shares (in shares) (current year less than) | 1 | 1 | 1 | |
ASU 2016-02 | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Operating lease ROU assets | $ 442 | |||
Operating lease liability | $ 446 | |||
Merchant Solutions | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Reporting unit, percentage of fair value in excess of carrying amount | 4.00% | |||
Asset impairments | $ 0 | |||
Corporate and Other | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Asset impairments | $ 94 | |||
Buildings | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Fixed asset, estimated useful life | 30 years | |||
Minimum | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Lease renewal term | 1 year | |||
Minimum | Furniture and fixture | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Fixed asset, estimated useful life | 3 years | |||
Maximum | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Lease renewal term | 5 years | |||
Maximum | Furniture and fixture | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Fixed asset, estimated useful life | 7 years | |||
Customer relationships | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Intangible assets, estimated useful lives | 10 years | |||
Trademarks | Maximum | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Intangible assets, estimated useful lives | 5 years | |||
Software | Minimum | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Intangible assets, estimated useful lives | 1 year | |||
Software | Maximum | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Intangible assets, estimated useful lives | 10 years | |||
Internally developed software | Minimum | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Intangible assets, estimated useful lives | 3 years | |||
Internally developed software | Maximum | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Intangible assets, estimated useful lives | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Net Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Earnings per Share | |||
Net earnings attributable to FIS common stockholders | $ 158 | $ 298 | $ 846 |
Weighted average shares outstanding — basic (in shares) | 619 | 445 | 328 |
Plus: Common stock equivalent shares (in shares) | 8 | 6 | 4 |
Weighted average shares outstanding — diluted (in shares) | 627 | 451 | 332 |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | $ 0.26 | $ 0.67 | $ 2.58 |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | $ 0.25 | $ 0.66 | $ 2.55 |
Acquisitions (Worldpay Narrativ
Acquisitions (Worldpay Narrative) (Details) - Worldpay - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition | |||||
Percentage of equity interests acquired (percent) | 100.00% | 100.00% | |||
Gross contractual amount of trade and other receivables required | $ 1,646 | $ 1,646 | |||
Revenue since acquisition | $ 1,880 | ||||
Pre-tax loss since acquisition | $ (436) | ||||
Business acquisition cost | $ 260 | $ 267 | |||
Software | |||||
Business Acquisition | |||||
Weighted average useful life | 7 years | ||||
Finite-lived intangible assets acquired | $ 1,297 | ||||
Customer relationships and other | |||||
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 |
Acquisitions (Purchase Price) (
Acquisitions (Purchase Price) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jan. 02, 2020 | Jul. 31, 2019 |
Worldpay | ||
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 | |
Business acquisition, consideration transferred | $ 48,245 | |
Percentage of equity interests acquired (percent) | 100.00% | |
Equity interest issued or issuable, number of shares (in shares) | 289 | |
Share price (usd per shares) | $ 133.69 | |
Virtus Partners | ||
Business Acquisition | ||
Cash consideration | $ 404 | |
Percentage of equity interests acquired (percent) | 70.00% |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation)) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2019 | Dec. 31, 2018 |
Business Acquisition | ||||
Goodwill | $ 53,268 | $ 52,242 | $ 13,545 | |
Worldpay | ||||
Business Acquisition | ||||
Cash acquired | $ 305 | |||
Settlement deposits and merchant float | 2,444 | |||
Trade receivables | 1,594 | |||
Goodwill | 38,057 | |||
Intangible assets | 13,682 | |||
Computer software | 1,297 | |||
Other noncurrent assets | 1,641 | |||
Accounts payable, accrued and other liabilities | (1,021) | |||
Settlement payables | (3,167) | |||
Deferred income taxes | (2,860) | |||
Long-term debt, subsequently repaid | (1,805) | |||
Other liabilities and noncontrolling interest | (1,922) | |||
Total purchase price | 48,245 | |||
Merchant float | 1,693 | |||
Restricted cash | 534 | |||
Tax receivable agreement liability | 542 | |||
Contingent value rights | $ 875 |
Acquisitions (Unaudited Pro For
Acquisitions (Unaudited Pro Forma Results of Operations) (Details) - Worldpay - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Revenue | $ 12,724 | $ 12,373 |
Net earnings (loss) attributable to FIS common stockholders | $ 254 | $ (57) |
Net earnings (loss) per share — basic attributable to FIS common stockholders (usd per share) | $ 0.41 | $ (0.09) |
Net earnings (loss) per share — diluted attributable to FIS common stockholders (usd per share) | $ 0.41 | $ (0.09) |
Acquisitions (Virtus Acquisitio
Acquisitions (Virtus Acquisition Narrative) (Details) - USD ($) $ in Millions | Jan. 02, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition | ||||
Goodwill | $ 53,268 | $ 52,242 | $ 13,545 | |
Virtus Partners | ||||
Business Acquisition | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 30.00% | |||
Virtus Partners | ||||
Business Acquisition | ||||
Percentage of equity interests acquired (percent) | 70.00% | |||
Cash consideration | $ 404 | |||
Fair value of redeemable noncontrolling interest | 173 | |||
Goodwill | $ 253 | |||
Call option exercise period (in years) | 2 years | |||
Put option exercise period (in years) | 3 years | |||
Virtus Partners | Customer relationships and other | ||||
Business Acquisition | ||||
Intangible assets | $ 254 | |||
Virtus Partners | Software | ||||
Business Acquisition | ||||
Intangible assets | $ 51 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue | |||
Revenue | $ 12,552 | $ 10,333 | $ 8,423 |
Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 10,779 | 8,523 | 6,814 |
Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 9,588 | 7,359 | 5,659 |
Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 848 | 844 | 834 |
Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 343 | 320 | 321 |
Other non-recurring fees | Software license | |||
Disaggregation of Revenue | |||
Revenue | 425 | 499 | 416 |
Other non-recurring fees | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 1,038 | 994 | 970 |
Other non-recurring fees | Other non-recurring fees | |||
Disaggregation of Revenue | |||
Revenue | 310 | 317 | 223 |
North America | |||
Disaggregation of Revenue | |||
Revenue | 9,551 | 7,859 | 6,283 |
All others | |||
Disaggregation of Revenue | |||
Revenue | 3,001 | 2,474 | 2,140 |
Operating Segments | |||
Disaggregation of Revenue | |||
Revenue | 12,552 | 10,333 | 8,423 |
Operating Segments | Merchant Solutions | |||
Disaggregation of Revenue | |||
Revenue | 3,767 | 1,942 | 208 |
Operating Segments | Merchant Solutions | Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 3,759 | 1,929 | 200 |
Operating Segments | Merchant Solutions | Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 3,680 | 1,890 | 197 |
Operating Segments | Merchant Solutions | Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 2 | 2 | 3 |
Operating Segments | Merchant Solutions | Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 77 | 37 | 0 |
Operating Segments | Merchant Solutions | Other non-recurring fees | Software license | |||
Disaggregation of Revenue | |||
Revenue | 2 | 8 | 4 |
Operating Segments | Merchant Solutions | Other non-recurring fees | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 1 | 1 | 1 |
Operating Segments | Merchant Solutions | Other non-recurring fees | Other non-recurring fees | |||
Disaggregation of Revenue | |||
Revenue | 5 | 4 | 3 |
Operating Segments | Merchant Solutions | North America | |||
Disaggregation of Revenue | |||
Revenue | 2,719 | 1,409 | 208 |
Operating Segments | Merchant Solutions | All others | |||
Disaggregation of Revenue | |||
Revenue | 1,048 | 533 | 0 |
Operating Segments | Banking Solutions | |||
Disaggregation of Revenue | |||
Revenue | 5,944 | 5,592 | 5,416 |
Operating Segments | Banking Solutions | Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 4,960 | 4,593 | 4,553 |
Operating Segments | Banking Solutions | Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 4,443 | 4,056 | 4,005 |
Operating Segments | Banking Solutions | Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 352 | 360 | 351 |
Operating Segments | Banking Solutions | Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 165 | 177 | 197 |
Operating Segments | Banking Solutions | Other non-recurring fees | Software license | |||
Disaggregation of Revenue | |||
Revenue | 89 | 150 | 101 |
Operating Segments | Banking Solutions | Other non-recurring fees | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 605 | 581 | 562 |
Operating Segments | Banking Solutions | Other non-recurring fees | Other non-recurring fees | |||
Disaggregation of Revenue | |||
Revenue | 290 | 268 | 200 |
Operating Segments | Banking Solutions | North America | |||
Disaggregation of Revenue | |||
Revenue | 5,105 | 4,738 | 4,353 |
Operating Segments | Banking Solutions | All others | |||
Disaggregation of Revenue | |||
Revenue | 839 | 854 | 1,063 |
Operating Segments | Capital Market Solutions | |||
Disaggregation of Revenue | |||
Revenue | 2,440 | 2,318 | 2,258 |
Operating Segments | Capital Market Solutions | Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 1,683 | 1,581 | 1,546 |
Operating Segments | Capital Market Solutions | Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 1,091 | 993 | 953 |
Operating Segments | Capital Market Solutions | Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 493 | 482 | 479 |
Operating Segments | Capital Market Solutions | Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 99 | 106 | 114 |
Operating Segments | Capital Market Solutions | Other non-recurring fees | Software license | |||
Disaggregation of Revenue | |||
Revenue | 328 | 328 | 311 |
Operating Segments | Capital Market Solutions | Other non-recurring fees | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 427 | 406 | 401 |
Operating Segments | Capital Market Solutions | Other non-recurring fees | Other non-recurring fees | |||
Disaggregation of Revenue | |||
Revenue | 2 | 3 | 0 |
Operating Segments | Capital Market Solutions | North America | |||
Disaggregation of Revenue | |||
Revenue | 1,453 | 1,398 | 1,359 |
Operating Segments | Capital Market Solutions | All others | |||
Disaggregation of Revenue | |||
Revenue | 987 | 920 | 899 |
Operating Segments | Corporate and Other | |||
Disaggregation of Revenue | |||
Revenue | 401 | 481 | 541 |
Operating Segments | Corporate and Other | Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 377 | 420 | 515 |
Operating Segments | Corporate and Other | Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 374 | 420 | 504 |
Operating Segments | Corporate and Other | Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 1 | 0 | 1 |
Operating Segments | Corporate and Other | Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 2 | 0 | 10 |
Operating Segments | Corporate and Other | Other non-recurring fees | Software license | |||
Disaggregation of Revenue | |||
Revenue | 6 | 13 | 0 |
Operating Segments | Corporate and Other | Other non-recurring fees | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 5 | 6 | 6 |
Operating Segments | Corporate and Other | Other non-recurring fees | Other non-recurring fees | |||
Disaggregation of Revenue | |||
Revenue | 13 | 42 | 20 |
Operating Segments | Corporate and Other | North America | |||
Disaggregation of Revenue | |||
Revenue | 274 | 314 | 363 |
Operating Segments | Corporate and Other | All others | |||
Disaggregation of Revenue | |||
Revenue | $ 127 | $ 167 | $ 178 |
Revenue (Narratives) (Details)
Revenue (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognition previously deferred | $ 764 | $ 762 | $ 740 |
Remaining revenue recognition | $ 22,000 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue from Contract with Customer [Abstract] | |||
Remaining performance obligation, percentage | 32.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations expected to be satisfied, expected timing | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue from Contract with Customer [Abstract] | |||
Remaining performance obligation, percentage | 22.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations expected to be satisfied, expected timing | 24 months |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Property and equipment, and finance lease right-of-use asset, gross | $ 2,292 | $ 2,177 |
Accumulated depreciation and amortization | (1,405) | (1,277) |
Total property and equipment, and finance lease right-of-use asset, net | 887 | 900 |
Land | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 48 | 34 |
Buildings | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 295 | 275 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 157 | 163 |
Computer equipment | ||
Property, Plant and Equipment | ||
Property and equipment, and finance lease right-of-use asset, gross | 1,622 | 1,382 |
Furniture, fixtures, and other equipment | ||
Property, Plant and Equipment | ||
Property and equipment, and finance lease right-of-use asset, gross | $ 170 | $ 323 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | |||
Right-of-use asset obtained in exchange for finance lease liability | $ 21 | $ 215 | |
Depreciation and amortization | 3,714 | 2,444 | $ 1,420 |
Property plant and equipment including that recorded under capital leases | |||
Property, Plant and Equipment | |||
Depreciation and amortization | $ 252 | $ 201 | $ 184 |
Goodwill (Changes in Goodwill)
Goodwill (Changes in Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | $ 52,242 | $ 13,545 |
Goodwill attributable to acquisitions | 299 | 38,071 |
Foreign currency adjustments | 821 | 626 |
Goodwill, Impairment Loss | (94) | |
Ending balance | 53,268 | 52,242 |
Merchant Solutions | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 35,553 | 276 |
Goodwill attributable to acquisitions | (11) | 34,657 |
Foreign currency adjustments | 725 | 620 |
Goodwill, Impairment Loss | 0 | |
Ending balance | 36,267 | 35,553 |
Banking Solutions | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 12,217 | 8,811 |
Goodwill attributable to acquisitions | 57 | 3,414 |
Foreign currency adjustments | 5 | (8) |
Goodwill, Impairment Loss | 0 | |
Ending balance | 12,279 | 12,217 |
Capital Market Solutions | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 4,358 | 4,344 |
Goodwill attributable to acquisitions | 253 | 0 |
Foreign currency adjustments | 91 | 14 |
Goodwill, Impairment Loss | 0 | |
Ending balance | 4,702 | 4,358 |
Corporate and Other | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 114 | 114 |
Goodwill attributable to acquisitions | 0 | 0 |
Foreign currency adjustments | 0 | 0 |
Goodwill, Impairment Loss | (94) | |
Ending balance | $ 20 | $ 114 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets | ||
Cost | $ 19,141 | $ 18,564 |
Accumulated Amortization | (5,213) | (2,766) |
Net | 13,928 | 15,798 |
Trademarks | ||
Intangible Assets | ||
Cost | 44 | 43 |
Accumulated Amortization | 0 | 0 |
Net | 44 | 43 |
Customer relationships and other | ||
Intangible Assets | ||
Cost | 18,586 | 18,018 |
Accumulated Amortization | (5,024) | (2,681) |
Net | 13,562 | 15,337 |
Trademarks | ||
Intangible Assets | ||
Cost | 511 | 503 |
Accumulated Amortization | (189) | (85) |
Net | $ 322 | $ 418 |
Intangible Assets (Narratives)
Intangible Assets (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |||
Amortization expense for intangible assets with finite lives | $ 2,400 | $ 1,444 | $ 659 |
Intangible Assets (Schedule o_2
Intangible Assets (Schedule of Estimated Amortization of Intangibles for the Next Five Years) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Estimated Amortization of Intangibles | |
2021 | $ 2,378 |
2022 | 2,226 |
2023 | 2,035 |
2024 | 1,836 |
2025 | $ 1,667 |
Software (Details)
Software (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Computer Software | ||
Gross capitalized computer software | $ 5,535 | $ 4,820 |
Accumulated amortization | (2,165) | (1,616) |
Total Software, net | 3,370 | 3,204 |
Software from acquisitions | ||
Computer Software | ||
Gross capitalized computer software | 2,077 | 1,959 |
Capitalized software development costs | ||
Computer Software | ||
Gross capitalized computer software | 2,826 | 2,258 |
Purchased software | ||
Computer Software | ||
Gross capitalized computer software | $ 632 | $ 603 |
Software (Narratives) (Details)
Software (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Computer Software | |||
Impairment of computer software | $ 87 | ||
Amortization expense for intangible assets with finite lives | $ 2,400 | 1,444 | $ 659 |
Software | |||
Computer Software | |||
Amortization expense for intangible assets with finite lives | $ 837 | $ 616 | $ 468 |
Deferred Contract Costs (Detail
Deferred Contract Costs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Capitalized Contract Cost | ||
Total Deferred contract costs, net | $ 917 | $ 667 |
Contract costs on implementations in progress | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | 245 | 138 |
Contract origination costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | 470 | 352 |
Contract fulfillment costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | $ 202 | $ 177 |
Deferred Contract Costs (Narrat
Deferred Contract Costs (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost [Abstract] | |||
Amortization of capitalized contract costs | $ 225 | $ 184 | $ 123 |
Accounts Payable, Accrued and_3
Accounts Payable, Accrued and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Salaries and incentives | $ 261 | $ 414 |
Accrued benefits and payroll taxes | 155 | 116 |
Trade accounts payable and other accrued liabilities | 1,576 | 1,386 |
Accrued interest payable | 102 | 109 |
Taxes other than income tax | 236 | 220 |
Operating lease liabilities | 152 | 129 |
Total Accounts payable, accrued and other liabilities | $ 2,482 | $ 2,374 |
Other Noncurrent Assets and L_3
Other Noncurrent Assets and Liabilities - Noncurrent Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Noncurrent Assets and Liabilities [Abstract] | ||
Visa Europe and contingent value rights ("CVR") related assets | $ 70 | $ 940 |
Operating lease ROU assets | 534 | 564 |
Other | 970 | 799 |
Total Other noncurrent assets | $ 1,574 | $ 2,303 |
Other Noncurrent Assets and L_4
Other Noncurrent Assets and Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Noncurrent Assets and Liabilities [Abstract] | ||
CVR liability | $ 401 | $ 838 |
Tax Receivable Agreement liability | 447 | 532 |
Operating lease liabilities | 453 | 466 |
Other | 666 | 570 |
Total Other noncurrent liabilities | $ 1,967 | $ 2,406 |
Other Noncurrent Assets and L_5
Other Noncurrent Assets and Liabilities - Narratives (Details) - USD ($) | Sep. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Noncurrent Assets and Liabilities | |||
Restricted cash non current | $ 0 | $ 540,000,000 | |
Contingent value rights, fair value | 401,000,000 | 838,000,000 | |
Former Legacy Worldpay Owners | |||
Noncurrent Assets and Liabilities | |||
Contingent value rights, payment tranche one | $ 185,000,000 | ||
Visa Europe to Visa, Inc. | |||
Noncurrent Assets and Liabilities | |||
Restricted cash | 0 | ||
Convertible Preferred Stock | Visa, Inc. Released Preferred Stock | |||
Noncurrent Assets and Liabilities | |||
Contingent value rights, proceeds from common stock converted from preferred stock and sold, before tax | 552,000,000 | ||
Contingent value rights, proceeds from common stock converted from preferred stock and sold, net of tax | $ 403,000,000 | ||
Visa Europe to Visa, Inc. | |||
Noncurrent Assets and Liabilities | |||
Percentage of net proceeds from disposal due to previous owner per contingent value right (percent) | 90.00% | ||
Restricted cash non current | 540,000,000 | ||
Unrealized change in equity investments | $ 78,000,000 | 5,000,000 | |
Visa Europe to Visa, Inc. | Preferred Stock | |||
Noncurrent Assets and Liabilities | |||
Contingent value rights, fair value | $ 70,000,000 | $ 400,000,000 | |
Visa Europe to Visa, Inc. | Convertible Preferred Stock | Former Legacy Worldpay Owners | |||
Noncurrent Assets and Liabilities | |||
Percentage of net proceeds from disposal due to previous owner per contingent value right (percent) | 90.00% |
Debt (Schedule of Outstanding D
Debt (Schedule of Outstanding Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument | ||
Other | $ 46 | $ 136 |
Total long-term debt, including current portion | 17,265 | 17,369 |
Current portion of long-term debt | (1,314) | (140) |
Long-term debt, excluding current portion | $ 15,951 | 17,229 |
Revolving Credit Facility | ||
Debt Instrument | ||
Weighted average interest rate (percent) | 1.30% | |
Credit facility outstanding amount | $ 251 | 600 |
Revolving loan unused commitment fee (percent) | 0.225% | |
Revolving Credit Facility | LIBOR | Maximum | ||
Debt Instrument | ||
Applicable margin (percent) | 1.625% | |
Senior Notes | Senior USD Notes | ||
Debt Instrument | ||
Weighted average interest rate (percent) | 3.70% | |
Senior notes | $ 4,938 | 4,938 |
Senior Notes | Senior USD Notes | Minimum | ||
Debt Instrument | ||
Debt instrument, stated percentage (percent) | 3.00% | |
Senior Notes | Senior USD Notes | Maximum | ||
Debt Instrument | ||
Debt instrument, stated percentage (percent) | 5.00% | |
Senior Notes | Senior Euro Notes | ||
Debt Instrument | ||
Weighted average interest rate (percent) | 1.10% | |
Senior notes | $ 8,891 | 8,694 |
Senior Notes | Senior Euro Notes | Minimum | ||
Debt Instrument | ||
Debt instrument, stated percentage (percent) | 0.10% | |
Senior Notes | Senior Euro Notes | Maximum | ||
Debt Instrument | ||
Debt instrument, stated percentage (percent) | 3.00% | |
Senior Notes | Senior GBP Notes | ||
Debt Instrument | ||
Weighted average interest rate (percent) | 2.70% | |
Senior notes | $ 2,526 | 2,440 |
Senior Notes | Senior GBP Notes | Minimum | ||
Debt Instrument | ||
Debt instrument, stated percentage (percent) | 1.70% | |
Senior Notes | Senior GBP Notes | Maximum | ||
Debt Instrument | ||
Debt instrument, stated percentage (percent) | 3.40% | |
Senior Notes | Senior Euro Floating Rate Notes | ||
Debt Instrument | ||
Weighted average interest rate (percent) | 0.00% | |
Senior notes | $ 613 | $ 561 |
Debt (Short Term Debt) (Details
Debt (Short Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt | ||
Other | $ 144 | $ 100 |
Total Short-term borrowings | $ 2,750 | 2,823 |
Senior Commercial Paper Notes | FIS Credit Agreement | ECP Notes | ||
Short-term Debt | ||
Weighted average interest rate (percent) | (0.30%) | |
Commercial paper | $ 861 | 2,523 |
Senior Commercial Paper Notes | FIS Credit Agreement | USCP Notes | ||
Short-term Debt | ||
Weighted average interest rate (percent) | 0.40% | |
Commercial paper | $ 1,745 | $ 200 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) € in Millions | Dec. 15, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 29, 2019USD ($) | Sep. 21, 2018USD ($) | Sep. 20, 2018USD ($) |
Debt Instrument | ||||||||
Weighted average interest rate (percent) | 1.70% | |||||||
Principal amount of debt redeemed | $ 49,067,000,000 | $ 24,672,000,000 | $ 26,148,000,000 | |||||
Difference in carrying value and fair value of long term debt | $ 900,000,000 | 1,640,000,000 | 900,000,000 | |||||
FIS Credit Agreement | Senior Commercial Paper Notes | ||||||||
Debt Instrument | ||||||||
Total committed capital, credit agreement | $ 4,000,000,000 | |||||||
Senior Euro Notes | ||||||||
Debt Instrument | ||||||||
Early repayment of senior debt | € | € 500 | |||||||
Revolving Credit Facility | FIS Credit Agreement | ||||||||
Debt Instrument | ||||||||
Total committed capital, credit agreement | $ 5,500,000,000 | |||||||
FIS Credit Agreement | ||||||||
Debt Instrument | ||||||||
Unamortized discount (premium), net | $ 29,000,000 | |||||||
Senior Notes | ||||||||
Debt Instrument | ||||||||
Senior note redemption price, percentage | 100.00% | |||||||
Senior Notes | Minimum | ||||||||
Debt Instrument | ||||||||
Make whole amount, trigger period prior to maturity | 1 month | |||||||
Senior Notes | Maximum | ||||||||
Debt Instrument | ||||||||
Make whole amount, trigger period prior to maturity | 6 months | |||||||
Senior Notes | Any And All Notes And Maximum Tender Offer Notes | ||||||||
Debt Instrument | ||||||||
Principal amount of debt redeemed | 3,000,000,000 | |||||||
Extinguishment of tender premium | 217,000,000 | |||||||
Letter of Credit | ||||||||
Debt Instrument | ||||||||
Credit facility outstanding amount | $ 2,000,000 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Additional term and revolving loan capacity in the future | 2,641,000,000 | |||||||
Line of credit facility, capacity backstopped | 2,606,000,000 | |||||||
Credit facility outstanding amount | $ 600,000,000 | $ 251,000,000 | $ 600,000,000 | |||||
Revolving Credit Facility | FIS Credit Agreement | ||||||||
Debt Instrument | ||||||||
Total committed capital, credit agreement | $ 4,000,000,000 | $ 3,000,000,000 | ||||||
Senior Commercial Paper Notes | ECP Notes | FIS Credit Agreement | ||||||||
Debt Instrument | ||||||||
Total committed capital, credit agreement | $ 4,700,000,000 |
Debt (Schedule of Principal Mat
Debt (Schedule of Principal Maturities of Long-term Debt) (Details) - FIS Credit Agreement $ in Millions | Dec. 31, 2020USD ($) |
Debt Instrument | |
2021 | $ 1,314 |
2022 | 1,669 |
2023 | 2,508 |
2024 | 1,020 |
2025 | 2,238 |
Thereafter | 8,634 |
Total principal payments | 17,383 |
Debt issuance costs, net of accumulated amortization | (89) |
Total long-term debt | $ 17,294 |
Financial Instruments (Narrativ
Financial Instruments (Narratives) (Details) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | |
Currency forward contract | Net Investment Hedging | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Notional amount | € 8,466,000,000 | £ 1,850 | ||||
Gain (loss) on net investment hedge | $ (951,000,000) | $ (229,000,000) | $ 59,000,000 | |||
Cross currency swap | Net Investment Hedging | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Notional amount | 4,508,000,000 | £ 565 | ||||
Interest rate swap | Fair Value Hedging | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Notional amount | € 500,000,000 | $ 1,000,000,000 | ||||
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 [Line Items] | ||||||
Derivative asset fair value | 10,000,000 | 10,000,000 | ||||
Interest rate swap | Net Investment Hedging | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Derivative asset fair value | $ (167,000,000) | |||||
Derivative liability fair value | $ 306,000,000 |
Operating Leases - (Balance She
Operating Leases - (Balance Sheet Classification) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 534 | $ 564 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Operating lease liabilities | $ 152 | $ 129 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Operating lease liabilities, noncurrent | $ 453 | $ 466 |
Total operating lease liabilities | $ 605 | $ 595 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Operating Leases - (Narratives)
Operating Leases - (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 210 | $ 145 |
Operating lease impairment loss | 30 | |
Variable lease cost | 39 | 34 |
Operating lease payments | 165 | 139 |
Right of use asset obtained in exchange for operating lease liability | $ 138 | $ 112 |
Weighted average lease term | 5 years 9 months 18 days | 5 years 10 months 24 days |
Weighted average discount rate (percent) | 3.20% | 3.70% |
Operating Leases - (Maturities
Operating Leases - (Maturities of Operating Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due | ||
2021 | $ 159 | |
2022 | 129 | |
2023 | 103 | |
2024 | 78 | |
2025 | 58 | |
Thereafter | 138 | |
Total lease payments | 665 | |
Less: Imputed interest | (60) | |
Total operating lease liabilities | $ 605 | $ 595 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit) and Pre-tax Income from Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current provision: | |||
Federal | $ 81 | $ 53 | $ 169 |
State | 50 | 46 | 50 |
Foreign | 176 | 116 | 105 |
Total current provision | 307 | 215 | 324 |
Deferred provision (benefit): | |||
Federal | (53) | (47) | (95) |
State | (28) | 7 | (11) |
Foreign | (130) | (75) | (10) |
Total deferred provision (benefit) | (211) | (115) | (116) |
Total Provision (benefit) for income taxes | 96 | 100 | 208 |
Provision for income taxes is based on pre-tax income from continuing operations | |||
United States | 441 | 220 | 744 |
Foreign | (175) | 193 | 360 |
Earnings (loss) before income taxes and equity method investment earnings (loss) | $ 266 | $ 413 | $ 1,104 |
Income Taxes (Schedule of Com_2
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Allocation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Expense (Benefit), Intraperiod Tax Allocation [Abstract] | |||
Tax expense (benefit) per statement of earnings | $ 96 | $ 100 | $ 208 |
Tax expense (benefit) attributable to discontinued operations | 0 | 0 | (1) |
Unrealized (loss) gain on foreign currency translation | (154) | 240 | 0 |
Unrealized gain (loss) on interest rate swaps | (7) | (41) | 0 |
Other components of other comprehensive earnings (loss) | 0 | (3) | 1 |
Total income tax expense (benefit) allocated to other comprehensive income | (161) | 196 | 1 |
Total income tax expense (benefit) | $ (65) | $ 296 | $ 208 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes | 14.60% | 2.50% | 2.90% |
Federal benefit of state taxes | (3.10%) | (0.50%) | (0.60%) |
Foreign rate differential | (10.10%) | (1.70%) | 0.00% |
U.K. tax rate adjustment | 38.20% | 0.00% | 0.00% |
Tax benefit from stock-based compensation | (18.10%) | (8.10%) | (5.20%) |
Acquisition-related items | (15.90%) | 1.80% | 0.00% |
Book basis in excess of tax basis for goodwill impairment and disposition | 9.20% | 0.00% | 3.00% |
Non-deductible executive compensation | 9.00% | 10.60% | 0.40% |
CVR liability fair value and foreign currency adjustment | 8.20% | 0.70% | 0.00% |
Foreign-derived intangible income deduction | (7.20%) | (3.30%) | (1.80%) |
Return to provision adjustments | (4.90%) | (0.40%) | (0.30%) |
Research and development credit | (4.10%) | (2.40%) | (0.90%) |
State tax rate adjustment | (2.80%) | 5.10% | 0.00% |
Cares Act net operating loss adjustment | (2.30%) | 0.00% | 0.00% |
Withholding tax on distribution | 2.10% | 0.00% | (0.40%) |
Deferred tax and other rate adjustments | 1.10% | 0.20% | 0.00% |
Unrecognized tax benefits | 0.30% | (1.40%) | (0.30%) |
Global intangible low-tax income | 0 | 0 | 0.011 |
Other | 0.80% | 0.10% | (0.10%) |
Effective income tax rate | 36.00% | 24.20% | 18.80% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 221 | $ 177 |
Employee benefit accruals | 155 | 177 |
Other deferred tax assets | 204 | 142 |
Total gross deferred income tax assets | 580 | 496 |
Less valuation allowance | (204) | (178) |
Total deferred income tax assets | 376 | 318 |
Deferred income tax liabilities: | ||
Amortization of goodwill and intangible assets | (3,945) | (4,123) |
Foreign currency translation adjustment | (95) | (208) |
Deferred contract costs | (173) | (125) |
Other deferred tax liabilities | (140) | (105) |
Total deferred income tax liabilities | (4,353) | (4,561) |
Net deferred income tax liability | $ (3,977) | $ (4,243) |
Income Taxes (Schedule of Def_2
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilities) (Classification) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Total deferred income tax assets | $ 40 | $ 38 |
Total deferred income tax liabilities | (4,017) | (4,281) |
Net deferred income tax liability | $ (3,977) | $ (4,243) |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Examination | |||
Income taxes receivable | $ 147 | $ 174 | |
Net operating loss carryforwards | 221 | 177 | |
Unrecognized tax benefits | 44 | 45 | $ 61 |
Unrecognized tax benefits that would impact tax rate | 38 | 38 | |
Tax benefits interest expense for unpaid taxes | 3 | 3 | $ 4 |
Unrecognized tax benefits interest and penalties accrued | 15 | 19 | |
Unrecognized tax benefits that may be recognized during the next twelve month period | $ 1 | ||
Recognition period | 12 months | ||
Federal and State | |||
Income Tax Examination | |||
Net operating loss carryforwards | $ 90 | 68 | |
State | |||
Income Tax Examination | |||
Valuation allowance against net operating loss deferred tax assets | 48 | 48 | |
Foreign | |||
Income Tax Examination | |||
Foreign net operating loss carryforwards resulting in deferred tax assets | $ 131 | $ 110 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits Roll Forward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of gross amounts of unrecognized gross tax benefits | ||
Amount of unrecognized tax benefits, beginning balance | $ 45 | $ 61 |
Amount of decreases due to lapse of the applicable statute of limitations | (1) | (5) |
Amount of decreases due to settlements | (9) | (17) |
Increases as a result of tax positions taken in the current period | 9 | 1 |
Assumed in Worldpay acquisition | 5 | |
Amount of unrecognized tax benefits, ending balance | $ 44 | $ 45 |
Commitments and Contingencies_2
Commitments and Contingencies (Narratives) (Details) $ in Millions | Oct. 12, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2020USD ($)claim |
Loss Contingencies | |||
Tax receivable agreement commitment (percent) | 85.00% | ||
Payments from the exercise of call options | $ 42 | ||
Tax Receivable Agreement | |||
Loss Contingencies | |||
Tax receivable agreement obligations | $ 532 | ||
Pending litigation | Secretariat of the Federal Revenue Bureau of Brazil | Potential tax liability | |||
Loss Contingencies | |||
Loss contingency, value of damages sought | $ 11 | ||
Loss contingency, number of claims pending | claim | 14 | ||
Loss contingency, number of additional claims filed | claim | 24 | ||
Loss contingency, potential additional claims amount sought | $ 32 | ||
Number of total pending and potential pending claims | claim | 38 | ||
Pending litigation | Secretariat of the Federal Revenue Bureau of Brazil | Potential tax liability | Maximum | |||
Loss Contingencies | |||
Loss contingency, estimate of possible loss | $ 43 | ||
Reliance | Pending litigation | |||
Loss Contingencies | |||
Loss contingency, value of damages sought | $ 127 | ||
Reliance Trust Claims | Settled Litigation | |||
Loss Contingencies | |||
Litigation settlement, amount awarded to other party | $ 39.8 | ||
Loss contingency accrual | $ 39.8 |
Commitments and Contingencies_3
Commitments and Contingencies (Commitments Maturity Schedule) (Details) - Tax Receivable Agreement $ in Millions | Dec. 31, 2020USD ($) |
Other Commitments | |
Total | $ 532 |
Less than 1 year | 85 |
1-3 Years | 379 |
3-5 Years | 68 |
More than 5 Years | $ 0 |
Commitments and Contingencies_4
Commitments and Contingencies (Purchase Commitments Narrative) (Details) - Computer data processing operations and related functions $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Other Commitments | |
Contractual obligation | $ 791 |
Minimum | |
Other Commitments | |
Purchase commitment term | 1 year |
Maximum | |
Other Commitments | |
Purchase commitment term | 5 years |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narratives) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 31, 2019 | Nov. 30, 2015 | May 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 |
Share-based Compensation | |||||||
Employer matching contribution, percent of match (percent) | 50.00% | ||||||
Profit sharing expenses | $ 107 | $ 91 | $ 82 | ||||
Employee contribution of pretax annual compensation (percent) | 40.00% | ||||||
Employee matching contribution, percent of employees' gross pay (percent) | 6.00% | ||||||
Weighted average fair value of options granted (in dollars per share) | $ 21.17 | $ 19.25 | $ 16.07 | ||||
Total unrecognized compensation cost related to non-vested stock awards | $ 304 | $ 343 | |||||
Weighted average period over which compensation cost is expected to be recognized (in years) | 1 year 2 months 12 days | 1 year 10 months 24 days | |||||
Selling, General and Administrative Expenses | |||||||
Share-based Compensation | |||||||
Compensation expense | $ 283 | $ 402 | $ 84 | ||||
FIS Plan amended and restated | |||||||
Share-based Compensation | |||||||
Shares available for grant, ending (in shares) | 32,000,000 | ||||||
FIS Plan amended and restated | Minimum | |||||||
Share-based Compensation | |||||||
Participant earning potential of target common stock (percent) | 0.00% | ||||||
FIS Plan amended and restated | Maximum | |||||||
Share-based Compensation | |||||||
Participant earning potential of target common stock (percent) | 300.00% | ||||||
FIS Plan amended and restated | Worldpay | |||||||
Share-based Compensation | |||||||
Number of additional shares authorized (in shares) | 7,000,000 | ||||||
WP Plan | Worldpay | |||||||
Share-based Compensation | |||||||
Number of additional shares authorized (in shares) | 24,000,000 | ||||||
Stock Options | |||||||
Share-based Compensation | |||||||
Minimum percentage contribution made by employees of their salary to employee benefit plan (percent) | 3.00% | ||||||
Maximum percentage contribution made by employees of their salary to employee benefit plan (percent) | 15.00% | ||||||
Employer matching contribution, percent of match (percent) | 25.00% | ||||||
Profit sharing expenses | $ 20 | 15 | 14 | ||||
Number of additional shares authorized (in shares) | 10,000,000 | ||||||
Vesting period (years) | 3 years | ||||||
Intrinsic value of options exercised | $ 348 | $ 189 | $ 257 | ||||
Closing stock price (in dollars per share) | $ 141.46 | ||||||
Granted (in shares) | 2,000,000 | 1,000,000 | 1,000,000 | ||||
Granted (weighted average exercise price) | $ 120.47 | $ 113.48 | $ 96.49 | ||||
Risk free interest rate (percent) | 0.40% | 2.20% | 2.50% | ||||
Volatility (percent) | 24.70% | 20.10% | 19.20% | ||||
Dividend yield (percent) | 1.20% | 1.20% | 1.30% | ||||
Weighted average expected life (years) | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 2 months 12 days | ||||
Stock Options | Worldpay | |||||||
Share-based Compensation | |||||||
Weighted average fair value of options granted (in dollars per share) | $ 71.05 | ||||||
Risk free interest rate (percent) | 1.90% | ||||||
Volatility (percent) | 18.60% | ||||||
Dividend yield (percent) | 1.00% | ||||||
Weighted average expected life (years) | 3 years 10 months 24 days | ||||||
Stock Options | FIS Plan amended and restated | |||||||
Share-based Compensation | |||||||
Number of additional shares authorized (in shares) | 12,000,000 | 6,000,000 | |||||
Restricted Stock | |||||||
Share-based Compensation | |||||||
Vesting period (years) | 3 years | ||||||
Restricted stock, shares granted (in shares) | 1,000,000 | 2,000,000 | 1,000,000 | ||||
Restricted stock weighted average grant price (in dollars per share) | $ 127,140,000 | ||||||
Fair value of vested stock | $ 293 | $ 169 | $ 97 | ||||
Restricted Stock | Minimum | |||||||
Share-based Compensation | |||||||
Restricted stock weighted average grant price (in dollars per share) | $ 127.14 | $ 124.72 | $ 96.50 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 11 | ||
Granted (in shares) | 2 | 1 | 1 |
Exercised (in shares) | (5) | ||
Cancelled (in shares) | 0 | ||
Ending balance (in shares) | 8 | 11 | |
Options exercisable (shares) | 6 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning balance (weighted average exercise price) | $ 76.01 | ||
Granted (weighted average exercise price) | 120.47 | $ 113.48 | $ 96.49 |
Exercised (weighted average exercise price) | 68.14 | ||
Cancelled (weighted average exercise price) | 115.47 | ||
Ending balance (weighted average exercise price) | 88.01 | $ 76.01 | |
Options exercisable (weighted average exercise price) | $ 75.35 | ||
Weighted Average Remaining Contractual Term (Years) | 3 years 9 months 18 days | 4 years 4 months 24 days | |
Weighted average remaining contractual term, options exercisable (years) | 2 years 9 months 18 days | ||
Aggregate intrinsic value | $ 464 | $ 745 | |
Aggregate intrinsic value, exercised | 348 | $ 189 | $ 257 |
Aggregate intrinsic value, options exercisable | $ 381 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Stock Option Valuation Assumptions) (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted average fair value of options | |||
Risk free interest rate | 0.40% | 2.20% | 2.50% |
Volatility | 24.70% | 20.10% | 19.20% |
Dividend yield | 1.20% | 1.20% | 1.30% |
Weighted average expected life (years) | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 2 months 12 days |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Restricted Stock Activity) (Details) - Restricted Stock - $ / shares $ / shares in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quantity | |||
Beginning balance outstanding (in shares) | 6 | ||
Granted (in shares) | 1 | 2 | 1 |
Vested (in shares) | (2) | ||
Forfeited (in shares) | 0 | ||
Ending balance outstanding (in shares) | 5 | 6 | |
Weighted Average Fair Value | |||
Beginning balance (weighted average fair value) | $ 127,230 | ||
Granted (weighted average fair value) | 127,140 | ||
Vested (weighted average fair value) | 124,210 | ||
Forfeited (weighted average fair value) | 129,720 | ||
Ending balance (weighted average fair value) | $ 127,630 | $ 127,230 |
Related Party Transactions (Nar
Related Party Transactions (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction | |||
Dividends paid | $ 868 | $ 656 | $ 421 |
Capco Consulting Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Related Party Transaction | |||
Equity method investments | $ 137 | $ 142 | |
Cardinal Holdings | |||
Related Party Transaction | |||
Ownership percentage (percent) | 36.00% | 37.00% | |
Banco Bradesco | Joint venture | |||
Related Party Transaction | |||
Ownership percentage (percent) | 51.00% | ||
Banco Bradesco | |||
Related Party Transaction | |||
Total related party revenues | $ 332 | ||
Banco Bradesco | Joint venture | |||
Related Party Transaction | |||
Dividends paid | $ 26 |
Divestitures (Narrative) (Detai
Divestitures (Narrative) (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||||
Asset impairments | $ 136 | $ 87 | $ 95 | |||
Asset impairments | 94 | |||||
Impairment of held for use assets | $ 42 | |||||
Brazilian Venture divestiture | $ 33 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Brazilian Venture | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||||
Asset impairments | $ 95 | |||||
Impairment of intangible assets | 42 | |||||
Asset impairments | 25 | |||||
Impairment of held for use assets | 28 | |||||
Pre-tax (loss) gain on sale of businesses | (12) | |||||
Brazilian Venture divestiture | 90 | |||||
Increase to additional paid in capital from as a result of divestitures | $ 57 | |||||
Loss on sale of business unit | $ 54 | |||||
Goodwill written off during sale of business unit | $ 43 | |||||
Banco Bradesco | Brazilian Venture | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||||
Ownership percentage (percent) | 100.00% |
Components of Other Comprehen_3
Components of Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | $ 49,456 | $ 10,222 | $ 10,820 |
Other comprehensive gain (loss) before reclassifications | 88 | 395 | (98) |
Amounts reclassified from accumulated other comprehensive earnings | 2 | 2 | |
Ending balance | 49,313 | 49,456 | 10,222 |
Accumulated other comprehensive earnings (loss) | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | (33) | (430) | (332) |
Ending balance | 57 | (33) | (430) |
Interest Rate Swap Contracts | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | (127) | 0 | 0 |
Other comprehensive gain (loss) before reclassifications | (21) | (127) | 0 |
Amounts reclassified from accumulated other comprehensive earnings | 0 | 0 | |
Ending balance | (148) | (127) | 0 |
Foreign Currency Translation Adjustments | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | 187 | (391) | (289) |
Other comprehensive gain (loss) before reclassifications | 106 | 578 | (102) |
Amounts reclassified from accumulated other comprehensive earnings | 0 | 0 | |
Ending balance | 293 | 187 | (391) |
Other | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | (93) | (39) | (43) |
Other comprehensive gain (loss) before reclassifications | 3 | (56) | 4 |
Amounts reclassified from accumulated other comprehensive earnings | 2 | 2 | |
Ending balance | $ (88) | $ (93) | $ (39) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($)country | Dec. 31, 2020USD ($)country | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information | ||||
Number of countries in which entity operates (more than) | country | 140 | 140 | ||
COVID-19 Pandemic | ||||
Segment Reporting Information | ||||
Incremental charges | $ | $ 71 | |||
Worldpay | ||||
Segment Reporting Information | ||||
Data center consolidation costs | $ | $ 88 | $ 70 | ||
SunGard | ||||
Segment Reporting Information | ||||
Data center consolidation costs | $ | $ 26 | |||
Foreign Entities | ||||
Segment Reporting Information | ||||
Long-term assets, excluding goodwill and other intangible assets | $ | $ 1,772 | $ 1,772 | $ 1,646 | |
Merchant Solutions | ||||
Segment Reporting Information | ||||
Number of countries in which entity operates (more than) | country | 140 | 140 | ||
Banking Solutions | ||||
Segment Reporting Information | ||||
Number of countries in which entity operates (more than) | country | 100 | 100 | ||
Capital Market Solutions | ||||
Segment Reporting Information | ||||
Number of countries in which entity operates (more than) | country | 100 | 100 |
Segment Information (Schedule o
Segment Information (Schedule of Financial Information for the Company's Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Revenue | $ 12,552 | $ 10,333 | $ 8,423 |
Depreciation and amortization (including purchase accounting amortization) | 3,714 | 2,444 | 1,420 |
Asset impairments | 136 | 87 | 95 |
Other income (expense), net | 48 | (219) | (57) |
Provision (benefit) for income taxes | (96) | (100) | (208) |
Equity method investment earnings (loss) | (6) | (10) | (15) |
Net earnings attributable to noncontrolling interest | 6 | 5 | 35 |
Net earnings attributable to FIS common stockholders | 158 | 298 | 846 |
Capital expenditures | 1,150 | 1,043 | 713 |
Right-of-use asset obtained in exchange for finance lease liability | 21 | 215 | |
Capital lease obligations | 91 | ||
Merchant Solutions | |||
Segment Reporting Information | |||
Capital expenditures | 365 | 141 | 10 |
Banking Solutions | |||
Segment Reporting Information | |||
Capital expenditures | 498 | 612 | 471 |
Capital Market Solutions | |||
Segment Reporting Information | |||
Capital expenditures | 223 | 266 | 202 |
Corporate and Other | |||
Segment Reporting Information | |||
Capital expenditures | 64 | 24 | 30 |
Operating Segments | |||
Segment Reporting Information | |||
Revenue | 12,552 | 10,333 | 8,423 |
Operating expenses | (12,000) | (9,364) | (6,965) |
Depreciation and amortization (including purchase accounting amortization) | 3,714 | 2,444 | 1,420 |
Acquisition, integration and other costs | 858 | 704 | 156 |
Asset impairments | 136 | 87 | 95 |
Adjusted EBITDA | 5,260 | 4,204 | 3,133 |
Acquisition deferred revenue adjustment | (4) | ||
Operating Segments | Merchant Solutions | |||
Segment Reporting Information | |||
Revenue | 3,767 | 1,942 | 208 |
Operating expenses | (2,320) | (1,090) | (170) |
Depreciation and amortization (including purchase accounting amortization) | 305 | 115 | 7 |
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Adjusted EBITDA | 1,752 | 967 | 45 |
Acquisition deferred revenue adjustment | 0 | ||
Operating Segments | Banking Solutions | |||
Segment Reporting Information | |||
Revenue | 5,944 | 5,592 | 5,416 |
Operating expenses | (3,901) | (3,679) | (3,679) |
Depreciation and amortization (including purchase accounting amortization) | 513 | 489 | 455 |
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Adjusted EBITDA | 2,556 | 2,402 | 2,192 |
Acquisition deferred revenue adjustment | 0 | ||
Operating Segments | Capital Market Solutions | |||
Segment Reporting Information | |||
Revenue | 2,440 | 2,318 | 2,258 |
Operating expenses | (1,566) | (1,458) | (1,388) |
Depreciation and amortization (including purchase accounting amortization) | 273 | 213 | 154 |
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Adjusted EBITDA | 1,147 | 1,073 | 1,024 |
Acquisition deferred revenue adjustment | 0 | ||
Operating Segments | Corporate and Other | |||
Segment Reporting Information | |||
Revenue | 401 | 481 | 541 |
Operating expenses | (4,213) | (3,137) | (1,728) |
Depreciation and amortization (including purchase accounting amortization) | 2,623 | 1,627 | 804 |
Acquisition, integration and other costs | 858 | 704 | 156 |
Asset impairments | 136 | 87 | 95 |
Adjusted EBITDA | (195) | (238) | (128) |
Acquisition deferred revenue adjustment | (4) | ||
Segment reconciling items | |||
Segment Reporting Information | |||
Acquisition, integration and other costs | 858 | 704 | 156 |
Asset impairments | 136 | 87 | 95 |
Adjusted EBITDA | 5,260 | 4,204 | 3,133 |
Depreciation and amortization | (964) | (809) | (688) |
Purchase accounting amortization | (2,750) | (1,635) | (732) |
Acquisition deferred revenue adjustment | (4) | ||
Interest expense, net | 334 | 337 | 297 |
Other income (expense), net | 48 | (219) | (57) |
Provision (benefit) for income taxes | $ (96) | $ (100) | $ (208) |