Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 05, 2021 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-16427 | |
Entity Registrant Name | Fidelity National Information Services, Inc. | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 37-1490331 | |
Entity Address, Street Name | 601 Riverside Avenue | |
Entity Address, City | Jacksonville | |
Entity Address, State | FL | |
Entity Address, Postal Zip Code | 32204 | |
City Area Code | 904 | |
Local Phone Number | 438-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 620,125,558 | |
Entity Central Index Key | 0001136893 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock, par value $0.01 per share | ||
Document Information | ||
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 | ||
Document Information | ||
Title of 12(b) Security | Floating Rate Senior Notes due 2021 | |
Trading Symbol | FIS21B | |
Security Exchange Name | NYSE | |
1.700% Senior Notes due 2022 | ||
Document Information | ||
Title of 12(b) Security | 1.700% Senior Notes due 2022 | |
Trading Symbol | FIS22B | |
Security Exchange Name | NYSE | |
0.125% Senior Notes due 2022 | ||
Document Information | ||
Title of 12(b) Security | 0.125% Senior Notes due 2022 | |
Trading Symbol | FIS22C | |
Security Exchange Name | NYSE | |
0.750% Senior Notes due 2023 | ||
Document Information | ||
Title of 12(b) Security | 0.750% Senior Notes due 2023 | |
Trading Symbol | FIS23A | |
Security Exchange Name | NYSE | |
1.100% Senior Notes due 2024 | ||
Document Information | ||
Title of 12(b) Security | 1.100% Senior Notes due 2024 | |
Trading Symbol | FIS24A | |
Security Exchange Name | NYSE | |
0.625% Senior Notes due 2025 | ||
Document Information | ||
Title of 12(b) Security | 0.625% Senior Notes due 2025 | |
Trading Symbol | FIS25B | |
Security Exchange Name | NYSE | |
1.500% Senior Notes due 2027 | ||
Document Information | ||
Title of 12(b) Security | 1.500% Senior Notes due 2027 | |
Trading Symbol | FIS27 | |
Security Exchange Name | NYSE | |
1.000% Senior Notes due 2028 | ||
Document Information | ||
Title of 12(b) Security | 1.000% Senior Notes due 2028 | |
Trading Symbol | FIS28 | |
Security Exchange Name | NYSE | |
2.250% Senior Notes due 2029 | ||
Document Information | ||
Title of 12(b) Security | 2.250% Senior Notes due 2029 | |
Trading Symbol | FIS29 | |
Security Exchange Name | NYSE | |
2.000% Senior Notes due 2030 | ||
Document Information | ||
Title of 12(b) Security | 2.000% Senior Notes due 2030 | |
Trading Symbol | FIS30 | |
Security Exchange Name | NYSE | |
3.360% Senior Notes due 2031 | ||
Document Information | ||
Title of 12(b) Security | 3.360% Senior Notes due 2031 | |
Trading Symbol | FIS31 | |
Security Exchange Name | NYSE | |
2.950% Senior Notes due 2039 | ||
Document Information | ||
Title of 12(b) Security | 2.950% Senior Notes due 2039 | |
Trading Symbol | FIS39 | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,039 | $ 1,959 |
Settlement deposits and merchant float | 2,919 | 3,252 |
Trade receivables, net of allowance for credit losses of $82 and $82, respectively | 3,508 | 3,314 |
Settlement receivables | 703 | 662 |
Other receivables | 470 | 317 |
Prepaid expenses and other current assets | 466 | 394 |
Total current assets | 9,105 | 9,898 |
Property and equipment, net | 863 | 887 |
Goodwill | 53,069 | 53,268 |
Intangible assets, net | 13,315 | 13,928 |
Software, net | 3,382 | 3,370 |
Other noncurrent assets | 1,624 | 1,574 |
Deferred contract costs, net | 959 | 917 |
Total assets | 82,317 | 83,842 |
Current liabilities: | ||
Accounts payable, accrued and other liabilities | 2,370 | 2,482 |
Settlement payables | 4,735 | 4,934 |
Deferred revenue | 964 | 881 |
Short-term borrowings | 2,537 | 2,750 |
Current portion of long-term debt | 602 | 1,314 |
Total current liabilities | 11,208 | 12,361 |
Long-term debt, excluding current portion | 16,300 | 15,951 |
Deferred income taxes | 4,115 | 4,017 |
Other noncurrent liabilities | 1,986 | 1,967 |
Deferred revenue | 59 | 59 |
Total liabilities | 33,668 | 34,355 |
Redeemable noncontrolling interest | 175 | 174 |
FIS stockholders’ equity: | ||
Preferred stock $0.01 par value; 200 shares authorized, none issued and outstanding at March 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock $0.01 par value, 750 shares authorized, 624 and 621 shares issued as of March 31, 2021 and December 31, 2020, respectively | 6 | 6 |
Additional paid in capital | 46,152 | 45,947 |
Retained earnings | 2,823 | 3,440 |
Accumulated other comprehensive earnings (loss) | 124 | 57 |
Treasury stock, $0.01 par value, 4 and 1 common shares as of March 31, 2021 and December 31, 2020, respectively, at cost | (645) | (150) |
Total FIS stockholders’ equity | 48,460 | 49,300 |
Noncontrolling interest | 14 | 13 |
Total equity | 48,474 | 49,313 |
Total liabilities, redeemable noncontrolling interest and equity | $ 82,317 | $ 83,842 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Trade receivables, allowance for credit loss, current | $ 82 | $ 82 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 624,000,000 | 621,000,000 |
Treasury stock (in shares) | 4,000,000 | 1,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 3,223 | $ 3,078 |
Cost of revenue | 2,118 | 2,089 |
Gross profit | 1,105 | 989 |
Selling, general, and administrative expenses | 1,006 | 881 |
Operating income | 99 | 108 |
Other income (expense): | ||
Interest expense, net | (74) | (80) |
Other income (expense), net | (493) | (39) |
Total other income (expense), net | (567) | (119) |
Earnings (loss) before income taxes and equity method investment earnings (loss) | (468) | (11) |
Provision (benefit) for income taxes | (97) | (30) |
Equity method investment earnings (loss) | 1 | (1) |
Net earnings (loss) | (370) | 18 |
Net (earnings) loss attributable to noncontrolling interest | (3) | (3) |
Net earnings (loss) attributable to FIS common stockholders | $ (373) | $ 15 |
Net earnings (loss) per share — basic attributable to FIS common stockholders (in dollars per share) | $ (0.60) | $ 0.02 |
Weighted average shares outstanding — basic (in shares) | 621 | 616 |
Net earnings (loss) per share — diluted attributable to FIS common stockholders (in dollars per share) | $ (0.60) | $ 0.02 |
Weighted average shares outstanding — diluted (in shares) | 621 | 625 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ (370) | $ 18 |
Other comprehensive earnings (loss), before tax: | ||
Unrealized gain (loss) on derivatives | 9 | 0 |
Foreign currency translation adjustments | 185 | (208) |
Other adjustments | 0 | 1 |
Other comprehensive earnings (loss), before tax | 194 | (207) |
Provision for income tax (expense) benefit related to items of other comprehensive earnings | (127) | (8) |
Other comprehensive earnings (loss), net of tax | 67 | (215) |
Comprehensive earnings (loss) | (303) | (197) |
Net (earnings) loss attributable to noncontrolling interest | (3) | (3) |
Comprehensive earnings (loss) attributable to FIS common stockholders | $ (306) | $ (200) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Treasury stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive earnings (loss) | Noncontrolling interest | [1] |
Beginning balance (in shares) at Dec. 31, 2019 | 615 | 0 | ||||||
Beginning balance at Dec. 31, 2019 | $ 49,456 | $ 6 | $ (52) | $ 45,358 | $ 4,161 | $ (33) | $ 16 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock (in shares) | 0 | |||||||
Issuance of restricted stock | 0 | $ 7 | (7) | |||||
Exercise of stock options (in shares) | 2 | 0 | ||||||
Exercise of stock options | 140 | 140 | ||||||
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 | (46) | $ (46) | ||||||
Stock-based compensation | 56 | 56 | ||||||
Cash dividends declared and other distributions | (220) | (218) | (2) | |||||
Other | (5) | 1 | (6) | |||||
Net earnings (loss) | 16 | 15 | 1 | |||||
Other comprehensive earnings (loss), net of tax | (215) | (215) | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 617 | 1 | ||||||
Ending balance at Mar. 31, 2020 | 49,182 | $ 6 | $ (91) | 45,548 | 3,952 | (248) | 15 | |
Beginning balance (in shares) at Dec. 31, 2020 | 621 | 1 | ||||||
Beginning balance at Dec. 31, 2020 | 49,313 | $ 6 | $ (150) | 45,947 | 3,440 | 57 | 13 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock (in shares) | 3 | |||||||
Issuance of restricted stock | 1 | 1 | ||||||
Exercise of stock options (in shares) | 0 | |||||||
Exercise of stock options | 47 | 47 | ||||||
Purchase of treasury stock (in shares) | (3) | |||||||
Purchases of treasury stock | (400) | $ (400) | ||||||
Treasury shares held for taxes due upon exercise of stock options | (95) | $ (95) | ||||||
Stock-based compensation | 157 | 157 | ||||||
Cash dividends declared and other distributions | (245) | (244) | (1) | |||||
Net earnings (loss) | (371) | (373) | 2 | |||||
Other comprehensive earnings (loss), net of tax | 67 | 67 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 624 | 4 | ||||||
Ending balance at Mar. 31, 2021 | $ 48,474 | $ 6 | $ (645) | $ 46,152 | $ 2,823 | $ 124 | $ 14 | |
[1] | Excludes redeemable noncontrolling interest that is not considered equity. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid per share (in dollars per share) | $ 0.39 | $ 0.35 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (370) | $ 18 |
Adjustment to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 953 | 914 |
Amortization of debt issue costs | 7 | 8 |
Loss (gain) on sale of businesses, investments and other | (1) | 2 |
Loss on extinguishment of debt | 528 | 0 |
Stock-based compensation | 157 | 56 |
Deferred income taxes | (22) | (108) |
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | ||
Trade and other receivables | (219) | 96 |
Settlement activity | 122 | (368) |
Prepaid expenses and other assets | (129) | 40 |
Deferred contract costs | (113) | (150) |
Deferred revenue | 89 | 86 |
Accounts payable, accrued liabilities and other liabilities | (166) | (211) |
Net cash provided by operating activities | 836 | 383 |
Cash flows from investing activities: | ||
Additions to property and equipment | (69) | (55) |
Additions to software | (229) | (251) |
Acquisitions, net of cash acquired | 0 | (402) |
Other investing activities, net | (23) | 92 |
Net cash provided by (used in) investing activities | (321) | (616) |
Cash flows from financing activities: | ||
Borrowings | 13,858 | 10,958 |
Repayment of borrowings and other financing obligations | (14,364) | (10,391) |
Debt issuance costs | (74) | 0 |
Proceeds from stock issued under stock-based compensation plans | 73 | 176 |
Treasury stock activity | (494) | (46) |
Dividends paid | (244) | (216) |
Other financing activities, net | (136) | (4) |
Net cash provided by (used in) financing activities | (1,381) | 477 |
Effect of foreign currency exchange rate changes on cash | (40) | (15) |
Net increase (decrease) in cash and cash equivalents | (906) | 229 |
Cash and cash equivalents, beginning of period | 4,030 | 3,211 |
Cash and cash equivalents, end of period | 3,124 | 3,440 |
Supplemental cash flow information: | ||
Cash paid for interest | 95 | 33 |
Cash paid for income taxes | $ 68 | $ 65 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited financial information included in this report includes the accounts of FIS and its subsidiaries prepared in accordance with U.S. generally accepted accounting principles and the instructions to Form 10-Q and Article 10 of Regulation S-X. All adjustments considered necessary for a fair presentation have been included. This report should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2020. 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 as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported periods. The inputs into management's critical and significant accounting estimates consider the economic impact of the outbreak of the novel coronavirus ("COVID-19") and the subsequently declared COVID-19 pandemic ("the pandemic") by the World Health Organization on March 11, 2020. The extent to which the pandemic further affects our results of operations and financial position will depend on future developments, which are highly uncertain and are difficult to predict, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Accordingly, our future results could be materially affected by changes in our estimates. Certain reclassifications have been made in the 2020 consolidated financial statements to conform to the classifications used in 2021. Amounts in tables in the financial statements and accompanying footnotes may not sum due to rounding. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
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 11. For the three months ended March 31, 2021 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 681 $ 1,311 $ 370 $ 58 $ 2,420 All others 285 229 255 34 803 Total $ 966 $ 1,540 $ 625 $ 92 $ 3,223 Type of Revenue: Recurring revenue: Transaction processing and services $ 943 $ 1,164 $ 291 $ 84 $ 2,482 Software maintenance 1 88 127 — 216 Other recurring 20 38 24 3 85 Total recurring 964 1,290 442 87 2,783 Software license 1 24 68 — 93 Professional services — 146 106 1 253 Other non-recurring fees 1 80 9 4 94 Total $ 966 $ 1,540 $ 625 $ 92 $ 3,223 For the three months ended March 31, 2020 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 661 $ 1,242 $ 373 $ 72 $ 2,348 All others 274 202 224 30 730 Total $ 935 $ 1,444 $ 597 $ 102 $ 3,078 Type of Revenue: Recurring revenue: Transaction processing and services $ 911 $ 1,078 $ 278 $ 97 $ 2,364 Software maintenance 1 88 121 1 211 Other recurring 21 44 24 — 89 Total recurring 933 1,210 423 98 2,664 Software license — 19 73 — 92 Professional services — 143 101 2 246 Other non-recurring fees 2 72 — 2 76 Total $ 935 $ 1,444 $ 597 $ 102 $ 3,078 Contract Balances The Company recognized revenue of $327 million and $338 million during the three months ended March 31, 2021 and 2020, 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 March 31, 2021, approximately $21.0 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. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 3 Months Ended |
Mar. 31, 2021 | |
Condensed Consolidated Financial Statement Details [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details Cash and Cash Equivalents The Company includes restricted cash in the Cash and cash equivalents balance reported in the consolidated statements of cash flows. The reconciliation between Cash and cash equivalents in the consolidated balance sheets and the consolidated statements of cash flows is as follows (in millions): March 31, December 31, Cash and cash equivalents on the consolidated balance sheets $ 1,039 $ 1,959 Merchant float restricted cash (in Settlement deposits and merchant float) 2,085 2,071 Total Cash and cash equivalents per the consolidated statements of cash flows $ 3,124 $ 4,030 Allowance for Credit Losses The Company monitors trade receivables, contract assets as well as other receivable balances 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 7. While the COVID-19 pandemic did not result in a significant increase in the Company's expected credit loss allowance recorded as of March 31, 2021, 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. Property and Equipment, Intangible Assets and Computer Software The following table shows the Company's consolidated financial statement details as of March 31, 2021, and December 31, 2020 (in millions): March 31, 2021 December 31, 2020 Cost Accumulated Net Cost Accumulated Net Property and equipment $ 2,319 $ 1,456 $ 863 $ 2,292 $ 1,405 $ 887 Intangible assets $ 19,117 $ 5,802 $ 13,315 $ 19,141 $ 5,213 $ 13,928 Software $ 5,838 $ 2,456 $ 3,382 $ 5,535 $ 2,165 $ 3,370 As of March 31, 2021, intangible assets, net of amortization, includes $12,947 million of customer relationships and $368 million of trademarks and other intangible assets. Amortization expense with respect to these intangible assets was $595 million and $598 million for the three months ended March 31, 2021 and 2020, respectively. Goodwill Changes in goodwill during the three months ended March 31, 2021, are summarized below (in millions). Capital Corporate Merchant Banking Market And Solutions Solutions Solutions Other Total Balance, December 31, 2020 $ 36,267 $ 12,279 $ 4,702 $ 20 $ 53,268 Foreign currency adjustments (164) (19) (16) — (199) Balance, March 31, 2021 $ 36,103 $ 12,260 $ 4,686 $ 20 $ 53,069 We assess goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. For 2020, we completed 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 reporting unit continued to exceed its carrying value. For Merchant Solutions, we completed 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 having been recently acquired as part of the Worldpay acquisition completed on July 31, 2019. As a result of the annual assessment, the fair value of the reporting unit was estimated to be in excess of carrying amount by approximately 4%. Due to the continued economic impact of the COVID-19 pandemic, we evaluated if events and circumstances as of March 31, 2021, 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) forecast 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 interim impairment assessment as of March 31, 2021, 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. 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 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. Also in connection with the disposal, and pursuant to the terms of an amendment executed on September 17, 2020, the Company will pay the 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. 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 $50 million and $70 million at March 31, 2021, and December 31, 2020, respectively, recorded in Other noncurrent assets on the consolidated balance sheets. The fair value of the CVR liability was $377 million and $401 million at March 31, 2021, and December 31, 2020, respectively, recorded in Other noncurrent liabilities on the consolidated balance sheets. The net change in fair value was $5 million and $(20) million for the three months ended March 31, 2021 and 2020, respectively, recorded in Other income (expense), net on the consolidated statements of earnings (loss). |
Deferred Contract Costs
Deferred Contract Costs | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Contract Costs | Deferred Contract Costs Origination and fulfillment costs from contracts with customers capitalized as of March 31, 2021, and December 31, 2020, consist of the following (in millions): March 31, 2021 December 31, 2020 Contract costs on implementations in progress $ 186 $ 245 Contract origination costs on completed implementations, net 540 470 Contract fulfillment costs on completed implementations, net 233 202 Total Deferred contract costs, net $ 959 $ 917 Amortization of deferred contract costs on completed implementations was $68 million and $51 million during the three months ended March 31, 2021 and 2020, respectively, and there were no significant impairment losses in relation to the costs capitalized for the periods presented. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt as of March 31, 2021, and December 31, 2020, consists of the following (in millions): March 31, 2021 Weighted Average Interest Interest March 31, December 31, Rates Rate Maturities 2021 2020 Fixed Rate Notes Senior USD Notes 0.4% - 4.8% 1.9% 2023 - 2048 $ 6,909 $ 4,938 Senior Euro Notes 0.1% - 3.0% 1.3% 2022 - 2039 7,916 8,891 Senior GBP Notes 1.7% - 3.4% 1.5% 2022 - 2031 1,686 2,526 Senior Euro Floating Rate Notes 0.0% 2021 523 613 Revolving Credit Facility (1) —% 2026 — 251 Other (132) 46 Total long-term debt, including current portion 16,902 17,265 Current portion of long-term debt (602) (1,314) Long-term debt, excluding current portion $ 16,300 $ 15,951 (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 March 31, 2021, and December 31, 2020, consist of the following (in millions): March 31, 2021 Weighted Average Interest March 31, December 31, Rate Maturities 2021 2020 Euro-commercial paper notes ("ECP Notes") (0.5) % Up to 183 days $ 243 $ 861 U.S. commercial paper notes ("USCP Notes") 0.3 % Up to 397 days 2,129 1,745 Other 165 144 Total Short-term borrowings $ 2,537 $ 2,750 As of March 31, 2021, the weighted average interest rate of the Company's outstanding debt was 1.0%, including the impact of interest rate swaps (see Note 6). 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 $(141) million as of March 31, 2021 (in millions): Total 2021 remaining period $ 578 2022 1,623 2023 2,234 2024 1,343 2025 739 Thereafter 10,646 Total principal payments 17,163 Debt issuance costs, net of accumulated amortization (120) Total long-term debt $ 17,043 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 on March 2, 2026. Senior Notes In March 2021, pursuant to cash tender offers and make-whole redemptions, FIS purchased and redeemed an aggregate principal amount of $5.1 billion in Senior Notes, comprised of $3,529 million in Senior USD Notes, $600 million in Senior Euro Notes, $871 million in Senior GBP Notes, and $66 million in Senior Euro Floating Rate Notes, with interest rates ranging from 0.0% to 5.0% and maturities ranging from 2021 to 2029, resulting in a loss on extinguishment of debt of approximately $528 million, recorded in Other income (expense), net on the consolidated statement of earnings (loss), relating to tender premiums, make-whole amounts, and fees; the write-off of unamortized bond discounts and debt issuance costs; and losses on related derivative instruments. The Company funded the purchase and redemption of the Senior Notes with proceeds on borrowings from the issuance and sale of Senior USD Notes on March 2, 2021. On March 2, 2021, FIS completed the issuance and sale of Senior USD Notes with an aggregate principal amount of $5.5 billion with interest rates ranging from 0.4% to 3.1% and maturities ranging from 2023 to 2041 ("new Senior USD Notes"). The proceeds from the debt issuance were subsequently used to purchase and redeem the Senior Notes discussed above with the remainder used to repay a portion of our commercial paper notes. The new Senior USD Notes are subject to customary covenants, including, among others, customary events of default. The new Senior USD Notes also include redemption provisions at the option of FIS, similar to the other Senior Notes. Revolving Credit Facility On March 2, 2021, FIS entered into an amendment to the Restated Credit Agreement to amend certain covenant provisions, revise lender commitments for certain counterparties, and extend the scheduled maturity date to March 2, 2026. As of March 31, 2021, the borrowing capacity under the Revolving Credit Facility was $3,126 million (net of $2,372 million of capacity backstopping our commercial paper notes and $2 million in outstanding letters of credit issued under the Revolving Credit Facility). Fair Value of Debt |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Hedges The Company holds interest rate swaps with aggregate notional amounts of $1,604 million, £925 million and €500 million at March 31, 2021, and $1,000 million and €500 million at December 31, 2020, converting the interest rate exposure on certain of the Company's Senior USD Notes, Senior GBP Notes and Senior Euro Notes, as applicable, from fixed to variable. These swaps are designated as fair value hedges for accounting purposes with a net liability fair value of $96 million reflected as a decrease in the long-term debt balance at March 31, 2021, and a net asset fair value of $10 million reflected as an increase in the long-term debt balance at December 31, 2020 (see Note 5). 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 (loss) of $321 million and $535 million during the three months ended March 31, 2021 and 2020, 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 March 31, 2021, and December 31, 2020, an aggregate €6,968 million and €7,466 million, respectively, wa s designated as a net investment hedge of the Company's investment in Euro-denominated operations related to Senior Euro Notes with maturities ranging from 2022 to 2039 and ECP Notes. As of December 31, 2020, an additional €1,000 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 and Senior Euro Notes with a 2021 maturity. As of March 31, 2021, and December 31, 2020, an aggregate £1,203 million and £1,850 million, respectively, 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 March 31, 2021, and December 31, 2020, aggregate notional amounts of €5,906 million and €4,508 million, respectively, were designated as net investment hedges of the Company's investment in Euro-denominated operations, and aggregate notional amounts of £2,045 million and £565 million, respectively, were designated as net investment hedges of the Company's Pound Sterling-denominated operations. The cross-currency interest rate swap fair values were net liabilities of $206 million and $306 million at March 31, 2021, and December 31, 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 was 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. 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 during the quarter ended September 30, 2020. On March 8, 2021, the Court entered an order approving the settlement and entered a final judgment dismissing the action with prejudice. Reliance paid the full settlement amount in April 2021 and has met its monetary obligations under the settlement agreement. 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 $30 million, making the total potential exposure for all 38 claims approximately $41 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. Tax Receivable Agreement 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. 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 sheets as of March 31, 2021, and December 31, 2020, include a total liability of $448 million and $532 million, respectively, relating to the TRA. 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 March 31, 2021; 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. |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation PlansOn January 1, 2021, the Company established a Qualified Retirement Equity Program that modified our existing stock compensation plans. The modification implemented a new retirement policy that permits retirees that meet certain eligibility criteria to continue vesting in unvested equity awards in accordance with the terms of the respective grant agreements, resulting in accelerated stock compensation expense for those employees meeting the definition of retirement eligible. During the quarter ended March 31, 2021, the Company recorded $104 million in accelerated stock compensation expense included in Selling, general, and administrative expenses in the consolidated statement of earnings (loss) to reflect the impact of the modification on unvested equity awards outstanding at January 1, 2021. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party TransactionsThe Company holds a noncontrolling ownership stake in Cardinal Holdings ("Cardinal"), which operates the Capco consulting business. FIS' ownership stake in Cardinal was 36% at March 31, 2021, and December 31, 2020. 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 $140 million and $137 million, at March 31, 2021, and December 31, 2020, 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 2021 and 2020 periods presented.On April 29, 2021, we sold our ownership stake in Cardinal for net cash proceeds of approximately $367 million resulting from an acquisition transaction of the Capco consulting business by Wipro Ltd. We will record the sale transaction during the second quarter of 2021. |
Net Earnings (Loss) per Share
Net Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) per Share | Net Earnings (Loss) per Share The basic weighted average shares and common stock equivalents for the three months ended March 31, 2021 and 2020, were computed using the treasury stock method. The following table summarizes net earnings (loss) and net earnings (loss) per share attributable to FIS common stockholders for the three months ended March 31, 2021 and 2020 (in millions, except per share amounts): Three months ended March 31, 2021 2020 Net earnings (loss) attributable to FIS common stockholders $ (373) $ 15 Weighted average shares outstanding-basic 621 616 Plus: Common stock equivalent shares — 9 Weighted average shares outstanding- diluted 621 625 Net earnings (loss) per share-basic attributable to FIS common stockholders $ (0.60) $ 0.02 Net earnings (loss) per share-diluted attributable to FIS common stockholders $ (0.60) $ 0.02 The diluted net loss per share for the three months ended March 31, 2021, did not include the effect of common stock equivalent shares of 5 million because the effect would have been anti-dilutive. The diluted net earnings per share for the three months ended March 31, 2021 and 2020, did not include options to purchase less than 1 million shares of our common stock because they were anti-dilutive. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
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. 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. During the three months ended March 31, 2021 and 2020, 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 $15 million and $18 million, respectively, and incremental costs directly related to COVID-19 of $9 million and $3 million, respectively. For the three months ended March 31, 2021, we also recorded $104 million in accelerated stock compensation expense to reflect the impact of establishing a Qualified Retirement Equity Program that modified unvested equity awards outstanding at January 1, 2021 (see Note 8). 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. 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. For the three months ended March 31, 2021 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 966 $ 1,540 $ 625 $ 92 $ 3,223 Operating expenses (603) (1,018) (419) (1,084) (3,124) Depreciation and amortization (including purchase accounting amortization) 88 145 82 638 953 Acquisition, integration and other costs — — — 256 256 Adjusted EBITDA $ 451 $ 667 $ 288 $ (98) $ 1,308 Adjusted EBITDA $ 1,308 Depreciation and amortization (279) Purchase accounting amortization (674) Acquisition, integration and other costs (256) Interest expense, net (74) Other income (expense), net (493) (Provision) benefit for income taxes 97 Equity method investment earnings (loss) 1 Net earnings attributable to noncontrolling interest (3) Net earnings (loss) attributable to FIS common stockholders $ (373) Capital expenditures $ 104 $ 106 $ 54 $ 34 $ 298 For the three months ended March 31, 2020 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 935 $ 1,444 $ 597 $ 102 $ 3,078 Operating expenses (597) (961) (392) (1,020) (2,970) Depreciation and amortization (including purchase accounting amortization) 85 129 62 638 914 Acquisition, integration and other costs — — — 225 225 Adjusted EBITDA $ 423 $ 612 $ 267 $ (55) $ 1,247 Adjusted EBITDA $ 1,247 Depreciation and amortization (230) Purchase accounting amortization (684) Acquisition, integration and other costs (225) Interest expense, net (80) Other income (expense), net (39) (Provision) benefit for income taxes 30 Equity method investment earnings (loss) (1) Net earnings attributable to noncontrolling interest (3) Net earnings attributable to FIS common stockholders $ 15 Capital expenditures (1) $ 106 $ 132 $ 58 $ 10 $ 306 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited financial information included in this report includes the accounts of FIS and its subsidiaries prepared in accordance with U.S. generally accepted accounting principles and the instructions to Form 10-Q and Article 10 of Regulation S-X. All adjustments considered necessary for a fair presentation have been included. This report should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2020. 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 as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported periods. The inputs into management's critical and significant accounting estimates consider the economic impact of the outbreak of the novel coronavirus ("COVID-19") and the subsequently declared COVID-19 pandemic ("the pandemic") by the World Health Organization on March 11, 2020. The extent to which the pandemic further affects our results of operations and financial position will depend on future developments, which are highly uncertain and are difficult to predict, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Accordingly, our future results could be materially affected by changes in our estimates. |
Segments | 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. |
Allowance for Credit Losses | The Company monitors trade receivables, contract assets as well as other receivable balances 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 7. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | For the three months ended March 31, 2021 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 681 $ 1,311 $ 370 $ 58 $ 2,420 All others 285 229 255 34 803 Total $ 966 $ 1,540 $ 625 $ 92 $ 3,223 Type of Revenue: Recurring revenue: Transaction processing and services $ 943 $ 1,164 $ 291 $ 84 $ 2,482 Software maintenance 1 88 127 — 216 Other recurring 20 38 24 3 85 Total recurring 964 1,290 442 87 2,783 Software license 1 24 68 — 93 Professional services — 146 106 1 253 Other non-recurring fees 1 80 9 4 94 Total $ 966 $ 1,540 $ 625 $ 92 $ 3,223 For the three months ended March 31, 2020 (in millions): Reportable Segments Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Primary Geographical Markets: North America $ 661 $ 1,242 $ 373 $ 72 $ 2,348 All others 274 202 224 30 730 Total $ 935 $ 1,444 $ 597 $ 102 $ 3,078 Type of Revenue: Recurring revenue: Transaction processing and services $ 911 $ 1,078 $ 278 $ 97 $ 2,364 Software maintenance 1 88 121 1 211 Other recurring 21 44 24 — 89 Total recurring 933 1,210 423 98 2,664 Software license — 19 73 — 92 Professional services — 143 101 2 246 Other non-recurring fees 2 72 — 2 76 Total $ 935 $ 1,444 $ 597 $ 102 $ 3,078 |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Condensed Consolidated Financial Statement Details [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): March 31, December 31, Cash and cash equivalents on the consolidated balance sheets $ 1,039 $ 1,959 Merchant float restricted cash (in Settlement deposits and merchant float) 2,085 2,071 Total Cash and cash equivalents per the consolidated statements of cash flows $ 3,124 $ 4,030 |
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): March 31, December 31, Cash and cash equivalents on the consolidated balance sheets $ 1,039 $ 1,959 Merchant float restricted cash (in Settlement deposits and merchant float) 2,085 2,071 Total Cash and cash equivalents per the consolidated statements of cash flows $ 3,124 $ 4,030 |
Condensed consolidated financial statement details | The following table shows the Company's consolidated financial statement details as of March 31, 2021, and December 31, 2020 (in millions): March 31, 2021 December 31, 2020 Cost Accumulated Net Cost Accumulated Net Property and equipment $ 2,319 $ 1,456 $ 863 $ 2,292 $ 1,405 $ 887 Intangible assets $ 19,117 $ 5,802 $ 13,315 $ 19,141 $ 5,213 $ 13,928 Software $ 5,838 $ 2,456 $ 3,382 $ 5,535 $ 2,165 $ 3,370 |
Goodwill rollforward | Changes in goodwill during the three months ended March 31, 2021, are summarized below (in millions). Capital Corporate Merchant Banking Market And Solutions Solutions Solutions Other Total Balance, December 31, 2020 $ 36,267 $ 12,279 $ 4,702 $ 20 $ 53,268 Foreign currency adjustments (164) (19) (16) — (199) Balance, March 31, 2021 $ 36,103 $ 12,260 $ 4,686 $ 20 $ 53,069 |
Deferred Contract Costs (Tables
Deferred Contract Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Contract Cost Detail | Origination and fulfillment costs from contracts with customers capitalized as of March 31, 2021, and December 31, 2020, consist of the following (in millions): March 31, 2021 December 31, 2020 Contract costs on implementations in progress $ 186 $ 245 Contract origination costs on completed implementations, net 540 470 Contract fulfillment costs on completed implementations, net 233 202 Total Deferred contract costs, net $ 959 $ 917 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt as of March 31, 2021, and December 31, 2020, consists of the following (in millions): March 31, 2021 Weighted Average Interest Interest March 31, December 31, Rates Rate Maturities 2021 2020 Fixed Rate Notes Senior USD Notes 0.4% - 4.8% 1.9% 2023 - 2048 $ 6,909 $ 4,938 Senior Euro Notes 0.1% - 3.0% 1.3% 2022 - 2039 7,916 8,891 Senior GBP Notes 1.7% - 3.4% 1.5% 2022 - 2031 1,686 2,526 Senior Euro Floating Rate Notes 0.0% 2021 523 613 Revolving Credit Facility (1) —% 2026 — 251 Other (132) 46 Total long-term debt, including current portion 16,902 17,265 Current portion of long-term debt (602) (1,314) Long-term debt, excluding current portion $ 16,300 $ 15,951 |
Short-term debt | Short-term borrowings as of March 31, 2021, and December 31, 2020, consist of the following (in millions): March 31, 2021 Weighted Average Interest March 31, December 31, Rate Maturities 2021 2020 Euro-commercial paper notes ("ECP Notes") (0.5) % Up to 183 days $ 243 $ 861 U.S. commercial paper notes ("USCP Notes") 0.3 % Up to 397 days 2,129 1,745 Other 165 144 Total Short-term borrowings $ 2,537 $ 2,750 |
Principal maturities of long-term debt | The following summarizes the aggregate maturities of our long-term debt, including other financing obligations for certain hardware and software, based on stated contractual maturities, excluding the fair value of the interest rate swaps discussed below and net unamortized non-cash bond premiums and discounts of $(141) million as of March 31, 2021 (in millions): Total 2021 remaining period $ 578 2022 1,623 2023 2,234 2024 1,343 2025 739 Thereafter 10,646 Total principal payments 17,163 Debt issuance costs, net of accumulated amortization (120) Total long-term debt $ 17,043 |
Net Earnings (Loss) per Share (
Net Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share attributable to FIS common stockholders | The following table summarizes net earnings (loss) and net earnings (loss) per share attributable to FIS common stockholders for the three months ended March 31, 2021 and 2020 (in millions, except per share amounts): Three months ended March 31, 2021 2020 Net earnings (loss) attributable to FIS common stockholders $ (373) $ 15 Weighted average shares outstanding-basic 621 616 Plus: Common stock equivalent shares — 9 Weighted average shares outstanding- diluted 621 625 Net earnings (loss) per share-basic attributable to FIS common stockholders $ (0.60) $ 0.02 Net earnings (loss) per share-diluted attributable to FIS common stockholders $ (0.60) $ 0.02 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment information | Summarized financial information for the Company's segments is shown in the following tables. The Company does not evaluate performance or allocate resources based on segment asset data; therefore, such information is not presented. For the three months ended March 31, 2021 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 966 $ 1,540 $ 625 $ 92 $ 3,223 Operating expenses (603) (1,018) (419) (1,084) (3,124) Depreciation and amortization (including purchase accounting amortization) 88 145 82 638 953 Acquisition, integration and other costs — — — 256 256 Adjusted EBITDA $ 451 $ 667 $ 288 $ (98) $ 1,308 Adjusted EBITDA $ 1,308 Depreciation and amortization (279) Purchase accounting amortization (674) Acquisition, integration and other costs (256) Interest expense, net (74) Other income (expense), net (493) (Provision) benefit for income taxes 97 Equity method investment earnings (loss) 1 Net earnings attributable to noncontrolling interest (3) Net earnings (loss) attributable to FIS common stockholders $ (373) Capital expenditures $ 104 $ 106 $ 54 $ 34 $ 298 For the three months ended March 31, 2020 (in millions): Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Total Revenue $ 935 $ 1,444 $ 597 $ 102 $ 3,078 Operating expenses (597) (961) (392) (1,020) (2,970) Depreciation and amortization (including purchase accounting amortization) 85 129 62 638 914 Acquisition, integration and other costs — — — 225 225 Adjusted EBITDA $ 423 $ 612 $ 267 $ (55) $ 1,247 Adjusted EBITDA $ 1,247 Depreciation and amortization (230) Purchase accounting amortization (684) Acquisition, integration and other costs (225) Interest expense, net (80) Other income (expense), net (39) (Provision) benefit for income taxes 30 Equity method investment earnings (loss) (1) Net earnings attributable to noncontrolling interest (3) Net earnings attributable to FIS common stockholders $ 15 Capital expenditures (1) $ 106 $ 132 $ 58 $ 10 $ 306 |
Revenue - Disaggregate Revenue
Revenue - Disaggregate Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue | ||
Revenue | $ 3,223 | $ 3,078 |
Recurring | ||
Disaggregation of Revenue | ||
Revenue | 2,783 | 2,664 |
Transaction processing and services | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 2,482 | 2,364 |
Software maintenance | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 216 | 211 |
Other recurring | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 85 | 89 |
Software license | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 93 | 92 |
Professional services | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 253 | 246 |
Other non-recurring fees | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 94 | 76 |
North America | ||
Disaggregation of Revenue | ||
Revenue | 2,420 | 2,348 |
All others | ||
Disaggregation of Revenue | ||
Revenue | 803 | 730 |
Corporate and other | ||
Disaggregation of Revenue | ||
Revenue | 92 | 102 |
Corporate and other | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 87 | 98 |
Corporate and other | Transaction processing and services | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 84 | 97 |
Corporate and other | Software maintenance | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 0 | 1 |
Corporate and other | Other recurring | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 3 | 0 |
Corporate and other | Software license | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 0 | 0 |
Corporate and other | Professional services | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 1 | 2 |
Corporate and other | Other non-recurring fees | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 4 | 2 |
Corporate and other | North America | ||
Disaggregation of Revenue | ||
Revenue | 58 | 72 |
Corporate and other | All others | ||
Disaggregation of Revenue | ||
Revenue | 34 | 30 |
Operating segments | Merchant solutions | ||
Disaggregation of Revenue | ||
Revenue | 966 | 935 |
Operating segments | Merchant solutions | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 964 | 933 |
Operating segments | Merchant solutions | Transaction processing and services | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 943 | 911 |
Operating segments | Merchant solutions | Software maintenance | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 1 | 1 |
Operating segments | Merchant solutions | Other recurring | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 20 | 21 |
Operating segments | Merchant solutions | Software license | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 1 | 0 |
Operating segments | Merchant solutions | Professional services | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 0 | 0 |
Operating segments | Merchant solutions | Other non-recurring fees | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 1 | 2 |
Operating segments | Merchant solutions | North America | ||
Disaggregation of Revenue | ||
Revenue | 681 | 661 |
Operating segments | Merchant solutions | All others | ||
Disaggregation of Revenue | ||
Revenue | 285 | 274 |
Operating segments | Banking solutions | ||
Disaggregation of Revenue | ||
Revenue | 1,540 | 1,444 |
Operating segments | Banking solutions | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 1,290 | 1,210 |
Operating segments | Banking solutions | Transaction processing and services | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 1,164 | 1,078 |
Operating segments | Banking solutions | Software maintenance | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 88 | 88 |
Operating segments | Banking solutions | Other recurring | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 38 | 44 |
Operating segments | Banking solutions | Software license | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 24 | 19 |
Operating segments | Banking solutions | Professional services | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 146 | 143 |
Operating segments | Banking solutions | Other non-recurring fees | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 80 | 72 |
Operating segments | Banking solutions | North America | ||
Disaggregation of Revenue | ||
Revenue | 1,311 | 1,242 |
Operating segments | Banking solutions | All others | ||
Disaggregation of Revenue | ||
Revenue | 229 | 202 |
Operating segments | Capital market solutions | ||
Disaggregation of Revenue | ||
Revenue | 625 | 597 |
Operating segments | Capital market solutions | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 442 | 423 |
Operating segments | Capital market solutions | Transaction processing and services | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 291 | 278 |
Operating segments | Capital market solutions | Software maintenance | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 127 | 121 |
Operating segments | Capital market solutions | Other recurring | Recurring | ||
Disaggregation of Revenue | ||
Revenue | 24 | 24 |
Operating segments | Capital market solutions | Software license | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 68 | 73 |
Operating segments | Capital market solutions | Professional services | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 106 | 101 |
Operating segments | Capital market solutions | Other non-recurring fees | Non-recurring | ||
Disaggregation of Revenue | ||
Revenue | 9 | 0 |
Operating segments | Capital market solutions | North America | ||
Disaggregation of Revenue | ||
Revenue | 370 | 373 |
Operating segments | Capital market solutions | All others | ||
Disaggregation of Revenue | ||
Revenue | $ 255 | $ 224 |
Revenue - (Narrative) (Details)
Revenue - (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue from contract liability | $ 327 | $ 338 |
Remaining revenue recognition | $ 21,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||
Remaining performance obligation, percentage | 32.00% | |
Performance obligations expected to be satisfied, expected timing | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||
Remaining performance obligation, percentage | 22.00% | |
Performance obligations expected to be satisfied, expected timing | 24 months |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Condensed Consolidated Financial Statement Details [Abstract] | ||||
Cash and cash equivalents on the consolidated balance sheets | $ 1,039 | $ 1,959 | ||
Merchant float restricted cash (in Settlement deposits and merchant float) | 2,085 | 2,071 | ||
Total Cash and cash equivalents per the consolidated statements of cash flows | $ 3,124 | $ 4,030 | $ 3,440 | $ 3,211 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Summary of Net Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Condensed Consolidated Financial Statement Details [Abstract] | ||
Property and equipment, cost | $ 2,319 | $ 2,292 |
Property and equipment, accumulated depreciation and amortization | 1,456 | 1,405 |
Property and equipment, net | 863 | 887 |
Intangible assets, cost | 19,117 | 19,141 |
Intangible assets, accumulated depreciation and amortization | 5,802 | 5,213 |
Intangible assets, net | 13,315 | 13,928 |
Computer software, cost | 5,838 | 5,535 |
Computer software, accumulated depreciation and amortization | 2,456 | 2,165 |
Computer software, net | $ 3,382 | $ 3,370 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Intangible Assets Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | $ 12,947 | |
Amortization expense of intangible assets | 595 | |
Trademarks and Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | $ 368 | |
Amortization expense of intangible assets | $ 598 |
Condensed Consolidated Financ_6
Condensed Consolidated Financial Statement Details - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill | |
Beginning balance | $ 53,268 |
Foreign currency adjustments | (199) |
Ending balance | 53,069 |
Corporate and other | |
Goodwill | |
Beginning balance | 20 |
Foreign currency adjustments | 0 |
Ending balance | 20 |
Operating segments | Merchant solutions | |
Goodwill | |
Beginning balance | 36,267 |
Foreign currency adjustments | (164) |
Ending balance | 36,103 |
Operating segments | Banking solutions | |
Goodwill | |
Beginning balance | 12,279 |
Foreign currency adjustments | (19) |
Ending balance | 12,260 |
Operating segments | Capital market solutions | |
Goodwill | |
Beginning balance | 4,702 |
Foreign currency adjustments | (16) |
Ending balance | $ 4,686 |
Condensed Consolidated Financ_7
Condensed Consolidated Financial Statement Details - Goodwill Narrative (Details) | Dec. 31, 2020 |
Merchant solutions | |
Goodwill [Line Items] | |
Reporting unit, percentage of fair value in excess of carrying amount | 4.00% |
Condensed Consolidated Financ_8
Condensed Consolidated Financial Statement Details - Visa Europe and Contingent Value Rights Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Contingent Value Rights [Line Items] | |||
Contingent value rights, fair value | $ 377 | $ 401 | |
Other nonoperating income (expense) | |||
Contingent Value Rights [Line Items] | |||
Contingent value rights at fair value, increase | $ 5 | $ (20) | |
Visa Europe to Visa, Inc. | |||
Contingent Value Rights [Line Items] | |||
Percentage of disposal proceeds due to counterparty, net of tax (percent) | 90.00% | ||
Contingent value rights | $ 50 | $ 70 |
Deferred Contract Costs (Detail
Deferred Contract Costs (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Capitalized Contract Cost | ||
Total Deferred contract costs, net | $ 959 | $ 917 |
Contract costs on implementations in progress | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | 186 | 245 |
Contract origination costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | 540 | 470 |
Contract fulfillment costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | $ 233 | $ 202 |
Deferred Contract Costs - (Narr
Deferred Contract Costs - (Narratives) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortization of contract costs | $ 68,000,000 | $ 51,000,000 |
Deferred contract costs impairment | $ 0 | $ 0 |
Debt - (Schedule of Long-Term D
Debt - (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Long-Term Debt | ||
Other | $ (132) | $ 46 |
Total long-term debt | 16,902 | 17,265 |
Current portion of long-term debt | (602) | (1,314) |
Long-term debt, excluding current portion | $ 16,300 | 15,951 |
Revolving Credit Facility | ||
Long-Term Debt | ||
Unused commitment fee | 0.225% | |
Revolving Credit Facility | One month LIBOR | Maximum | ||
Long-Term Debt | ||
Applicable margin | 1.625% | |
Revolving Credit Facility | ||
Long-Term Debt | ||
Weighted average interest rate | 0.00% | |
Revolving credit facility | $ 0 | 251 |
Senior notes | Senior USD Notes | ||
Long-Term Debt | ||
Weighted average interest rate | 1.90% | |
Senior notes | $ 6,909 | 4,938 |
Senior notes | Senior USD Notes | Minimum | ||
Long-Term Debt | ||
Debt instrument, stated percentage | 0.40% | |
Senior notes | Senior USD Notes | Maximum | ||
Long-Term Debt | ||
Debt instrument, stated percentage | 4.80% | |
Senior notes | Senior Euro Notes | ||
Long-Term Debt | ||
Weighted average interest rate | 1.30% | |
Senior notes | $ 7,916 | 8,891 |
Senior notes | Senior Euro Notes | Minimum | ||
Long-Term Debt | ||
Debt instrument, stated percentage | 0.10% | |
Senior notes | Senior Euro Notes | Maximum | ||
Long-Term Debt | ||
Debt instrument, stated percentage | 3.00% | |
Senior notes | Senior GBP Notes | ||
Long-Term Debt | ||
Weighted average interest rate | 1.50% | |
Senior notes | $ 1,686 | 2,526 |
Senior notes | Senior GBP Notes | Minimum | ||
Long-Term Debt | ||
Debt instrument, stated percentage | 1.70% | |
Senior notes | Senior GBP Notes | Maximum | ||
Long-Term Debt | ||
Debt instrument, stated percentage | 3.40% | |
Senior notes | Senior Euro Floating Rate Notes | ||
Long-Term Debt | ||
Weighted average interest rate | 0.00% | |
Senior notes | $ 523 | $ 613 |
Debt - Short-term Debt (Details
Debt - Short-term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt | ||
Other | $ 165 | $ 144 |
Total Short-term borrowings | $ 2,537 | 2,750 |
Euro-commercial paper notes ("ECP Notes") | Commercial paper | FIS credit agreements | ||
Short-term Debt | ||
Short term debt, weighted average interest rate | (0.50%) | |
Maturities | 183 days | |
Commercial paper | $ 243 | 861 |
U.S. commercial paper notes ("USCP Notes") | Commercial paper | FIS credit agreements | ||
Short-term Debt | ||
Short term debt, weighted average interest rate | 0.30% | |
Maturities | 397 days | |
Commercial paper | $ 2,129 | $ 1,745 |
Debt - (Narrative) (Details)
Debt - (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 02, 2021 | Dec. 31, 2020 | |
Debt Instrument | |||||
Debt, weighted average interest rate | 1.00% | 1.00% | |||
Repayments of long-term debt | $ 14,364,000,000 | $ 10,391,000,000 | |||
Loss on extinguishment of debt | 528,000,000 | $ 0 | |||
Fair value aggregate difference | $ 650,000,000 | 650,000,000 | $ 1,640,000,000 | ||
Senior notes | |||||
Debt Instrument | |||||
Repayments of long-term debt | 5,100,000,000 | ||||
Loss on extinguishment of debt | 528,000,000 | ||||
FIS credit agreements | |||||
Debt Instrument | |||||
Unamortized discount (premium), net | (141,000,000) | $ (141,000,000) | |||
Senior USD Notes | Senior notes | |||||
Debt Instrument | |||||
Repayments of long-term debt | 3,529,000,000 | ||||
Principal amount of debt | $ 5,500,000,000 | ||||
Senior USD Notes | Senior notes | Minimum | |||||
Debt Instrument | |||||
Debt instrument, interest rate, effective percentage | 0.40% | ||||
Senior USD Notes | Senior notes | Maximum | |||||
Debt Instrument | |||||
Debt instrument, interest rate, effective percentage | 3.10% | ||||
Senior Euro Notes | Senior notes | |||||
Debt Instrument | |||||
Repayments of long-term debt | 600,000,000 | ||||
Senior GBP Notes | Senior notes | |||||
Debt Instrument | |||||
Repayments of long-term debt | 871,000,000 | ||||
Senior Euro Floating Rate Notes | Senior notes | |||||
Debt Instrument | |||||
Repayments of long-term debt | $ 66,000,000 | ||||
Senior Euro Floating Rate Notes | Senior notes | Minimum | |||||
Debt Instrument | |||||
Debt instrument, interest rate, effective percentage | 0.00% | 0.00% | |||
Senior Euro Floating Rate Notes | Senior notes | Maximum | |||||
Debt Instrument | |||||
Debt instrument, interest rate, effective percentage | 5.00% | 5.00% | |||
Revolving Credit Facility | |||||
Debt Instrument | |||||
Borrowing capacity remaining | $ 3,126,000,000 | $ 3,126,000,000 | |||
Line of credit facility, capacity backstopped | 2,372,000,000 | 2,372,000,000 | |||
Credit facility outstanding amount | 0 | 0 | $ 251,000,000 | ||
Letter of credit | |||||
Debt Instrument | |||||
Credit facility outstanding amount | $ 2,000,000 | $ 2,000,000 |
Debt - (Principal Maturities of
Debt - (Principal Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Principal maturities of long-term debt | ||
Total long-term debt | $ 16,902 | $ 17,265 |
FIS credit agreements | ||
Principal maturities of long-term debt | ||
2021 remaining period | 578 | |
2022 | 1,623 | |
2023 | 2,234 | |
2024 | 1,343 | |
2025 | 739 | |
Thereafter | 10,646 | |
Total principal payments | 17,163 | |
Debt issuance costs, net of accumulated amortization | (120) | |
Total long-term debt | $ 17,043 |
Financial Instruments - (Narrat
Financial Instruments - (Narratives) (Details) | 3 Months Ended | ||||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021GBP (£) | Mar. 31, 2021EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020EUR (€) | |
Net investment hedges | Senior Euro Notes Maturing Two Thousand Twenty Two To Two Thousand Thirty Nine and ECP Notes | Senior notes | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||
Notional amount | € | € 6,968,000,000 | € 7,466,000,000 | |||||
Net investment hedges | Senior EURO Floating Rate Notes And Senior Euro Notes Maturing Two Thousand Twenty One | Senior notes | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||
Notional amount | € | 1,000,000,000 | ||||||
Net investment hedges | Sterling senior notes due 2022 to 2031 | Senior notes | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||
Notional amount | £ | £ 1,203,000,000 | £ 1,850,000,000 | |||||
Interest rate swap | Fair value hedging | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||
Notional amount | $ 1,604,000,000 | 925,000,000 | 500,000,000 | $ 1,000,000,000 | 500,000,000 | ||
Interest rate swap | Fair value hedging | 1.1% Euro senior notes due July 2024 | Senior notes | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||
Derivative asset fair value | 96,000,000 | 10,000,000 | |||||
Interest rate swap | Net investment hedges | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||
Derivative asset fair value, gross liability | (206,000,000) | $ (306,000,000) | |||||
Currency forward contract | Net investment hedges | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||
Gain (loss) for the change in fair value on derivative used in net investment hedge, after tax, recorded in other comprehensive earnings loss | $ 321,000,000 | $ 535,000,000 | |||||
Currency swap | Net investment hedges | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | |||||||
Notional amount | £ 2,045,000,000 | € 5,906,000,000 | £ 565,000,000 | € 4,508,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - (Narrative) (Details) $ in Millions | Oct. 12, 2020USD ($) | Mar. 31, 2021USD ($)claim | Dec. 31, 2020USD ($) |
Loss Contingencies | |||
Tax receivable agreement commitment (percent) | 85.00% | ||
Tax receivable agreement obligations | $ 448 | $ 532 | |
Pending litigation | Potential tax liability | Secretariat of the federal revenue bureau of brazil | |||
Loss Contingencies | |||
Loss contingency, value of damages sought | $ 11 | ||
Loss contingency, number of claims pending | claim | 14 | ||
Loss contingency, number of potential new claims filed | claim | 24 | ||
Loss contingency, potential additional claims amount sought | $ 30 | ||
Loss contingency, number of total pending and potential pending claims | claim | 38 | ||
Pending litigation | Potential tax liability | Secretariat of the federal revenue bureau of brazil | Maximum | |||
Loss Contingencies | |||
Loss contingency, estimate of possible loss | $ 41 | ||
Reliance trust claims | 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 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Qualified Retirement Equity Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Accelerated stock compensation expense | $ 104 |
Related-Party Transactions - (N
Related-Party Transactions - (Narrative) (Details) - Cardinal holdings - USD ($) $ in Millions | Apr. 29, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction | |||
Ownership percentage | 36.00% | ||
Equity method investment | $ 140 | $ 137 | |
Subsequent Event | |||
Related Party Transaction | |||
Proceeds from Sale of Equity Method Investments | $ 367 |
Net Earnings (Loss) per Share -
Net Earnings (Loss) per Share - (Summary of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net earnings (loss) attributable to FIS common stockholders | $ (373) | $ 15 |
Weighted average shares outstanding — basic (in shares) | 621 | 616 |
Plus: Common stock equivalent shares (in shares) | 0 | 9 |
Weighted average shares outstanding — diluted (in shares) | 621 | 625 |
Net earnings (loss) per share — basic attributable to FIS common stockholders (in dollars per share) | $ (0.60) | $ 0.02 |
Net earnings (loss) per share — diluted attributable to FIS common stockholders (in dollars per share) | $ (0.60) | $ 0.02 |
Net Earnings (Loss) per Share_2
Net Earnings (Loss) per Share - (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jan. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) (less than) | 5 | ||
Stock repurchase program authorized amount | $ 100,000,000 | ||
Stock repurchase program, authorized amount remaining | $ 97,000,000 | ||
Share-based Payment Arrangement, Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) (less than) | 1 | 1 |
Segment Information - (Narrativ
Segment Information - (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)country | Mar. 31, 2020USD ($) | |
COVID-19 Pandemic | ||
Segment Reporting Information | ||
Incremental charges | $ | $ 9 | $ 3 |
Accelerated stock compensation expense | $ | 104 | |
Worldpay | ||
Segment Reporting Information | ||
Data center consolidation costs | $ | $ 15 | $ 18 |
Merchant solutions | Minimum | ||
Segment Reporting Information | ||
Number of countries we operate in (more than) | country | 140 | |
Banking solutions | Minimum | ||
Segment Reporting Information | ||
Number of countries we operate in (more than) | country | 100 | |
Capital market solutions | Minimum | ||
Segment Reporting Information | ||
Number of countries we operate in (more than) | country | 100 |
Segment Information - (Summariz
Segment Information - (Summarized Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Information | ||
Revenue | $ 3,223 | $ 3,078 |
Operating expenses | (3,124) | (2,970) |
Depreciation and amortization (including purchase accounting amortization) | 953 | 914 |
Acquisition, integration and other costs | (256) | (225) |
Adjusted EBITDA | 1,308 | 1,247 |
Interest expense, net | (74) | (80) |
Other income (expense), net | (493) | (39) |
(Provision) benefit for income taxes | 97 | 30 |
Net earnings attributable to noncontrolling interest | (3) | (3) |
Net earnings (loss) attributable to FIS common stockholders | (373) | 15 |
Capital expenditures | 298 | 306 |
Merchant solutions | ||
Segment Information | ||
Capital expenditures | 104 | 106 |
Banking solutions | ||
Segment Information | ||
Capital expenditures | 106 | 132 |
Capital market solutions | ||
Segment Information | ||
Capital expenditures | 54 | 58 |
Corporate and other | ||
Segment Information | ||
Revenue | 92 | 102 |
Operating expenses | (1,084) | (1,020) |
Depreciation and amortization (including purchase accounting amortization) | 638 | 638 |
Acquisition, integration and other costs | (256) | (225) |
Adjusted EBITDA | (98) | (55) |
Capital expenditures | 34 | 10 |
Operating segments | Merchant solutions | ||
Segment Information | ||
Revenue | 966 | 935 |
Operating expenses | (603) | (597) |
Depreciation and amortization (including purchase accounting amortization) | 88 | 85 |
Acquisition, integration and other costs | 0 | 0 |
Adjusted EBITDA | 451 | 423 |
Operating segments | Banking solutions | ||
Segment Information | ||
Revenue | 1,540 | 1,444 |
Operating expenses | (1,018) | (961) |
Depreciation and amortization (including purchase accounting amortization) | 145 | 129 |
Acquisition, integration and other costs | 0 | 0 |
Adjusted EBITDA | 667 | 612 |
Operating segments | Capital market solutions | ||
Segment Information | ||
Revenue | 625 | 597 |
Operating expenses | (419) | (392) |
Depreciation and amortization (including purchase accounting amortization) | 82 | 62 |
Acquisition, integration and other costs | 0 | 0 |
Adjusted EBITDA | 288 | 267 |
Segment reconciling items | ||
Segment Information | ||
Acquisition, integration and other costs | (256) | (225) |
Depreciation and amortization | (279) | (230) |
Purchase accounting amortization | (674) | (684) |
Interest expense, net | (74) | (80) |
Other income (expense), net | (493) | (39) |
(Provision) benefit for income taxes | $ 97 | $ 30 |