Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | FISERV INC | |
Entity Central Index Key | 798,354 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 217,057,326 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | ||||
Processing and services | $ 1,160 | $ 1,125 | $ 3,441 | $ 3,301 |
Product | 220 | 188 | 633 | 585 |
Total revenue | 1,380 | 1,313 | 4,074 | 3,886 |
Expenses: | ||||
Cost of processing and services | 551 | 541 | 1,651 | 1,625 |
Cost of product | 186 | 172 | 547 | 521 |
Selling, general and administrative | 274 | 258 | 806 | 758 |
Total expenses | 1,011 | 971 | 3,004 | 2,904 |
Operating income | 369 | 342 | 1,070 | 982 |
Interest expense | (41) | (41) | (121) | (131) |
Interest and investment (loss) income, net | 0 | 0 | (7) | 1 |
Loss on early debt extinguishment | 0 | 0 | 0 | (85) |
Income before income taxes and income from investment in unconsolidated affiliate | 328 | 301 | 942 | 767 |
Income tax provision | (114) | (117) | (373) | (279) |
Income from investment in unconsolidated affiliate | 0 | 34 | 146 | 35 |
Net income | $ 214 | $ 218 | $ 715 | $ 523 |
Net income per share – basic (in dollars per share) | $ 0.98 | $ 0.94 | $ 3.23 | $ 2.22 |
Net income per share – diluted (in dollars per share) | $ 0.96 | $ 0.92 | $ 3.18 | $ 2.18 |
Shares used in computing net income per share: | ||||
Basic (in shares) | 219.2 | 232.9 | 221.6 | 236 |
Diluted (in shares) | 222.7 | 237 | 225.2 | 240.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 214 | $ 218 | $ 715 | $ 523 |
Other comprehensive income (loss): | ||||
Fair market value adjustment on cash flow hedges, net of income tax benefit of $1 million | 0 | (1) | 0 | (1) |
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of income tax provision of $1 million, $1 million, $3 million and $6 million | 2 | 2 | 5 | 9 |
Foreign currency translation | 3 | (10) | 0 | (20) |
Total other comprehensive income (loss) | 5 | (9) | 5 | (12) |
Comprehensive income | $ 219 | $ 209 | $ 720 | $ 511 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit on fair market value adjustment on cash flow hedges | $ 0 | $ 1 | $ 0 | $ 1 |
Tax provision on reclassification adjustment for net realized losses on cash flow hedges | $ 1 | $ 1 | $ 3 | $ 6 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 303 | $ 275 |
Trade accounts receivable, net | 830 | 802 |
Prepaid expenses and other current assets | 467 | 429 |
Total current assets | 1,600 | 1,506 |
Property and equipment, net | 403 | 396 |
Intangible assets, net | 1,868 | 1,872 |
Goodwill | 5,375 | 5,200 |
Other long-term assets | 391 | 366 |
Total assets | 9,637 | 9,340 |
Liabilities and Shareholders’ Equity | ||
Accounts payable and accrued expenses | 1,129 | 1,024 |
Current maturities of long-term debt | 6 | 5 |
Deferred revenue | 413 | 473 |
Total current liabilities | 1,548 | 1,502 |
Long-term debt | 4,624 | 4,288 |
Deferred income taxes | 742 | 726 |
Other long-term liabilities | 154 | 164 |
Total liabilities | 7,068 | 6,680 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, no par value: 25.0 million shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value: 900.0 million shares authorized; 395.7 million shares issued | 4 | 4 |
Additional paid-in capital | 1,001 | 952 |
Accumulated other comprehensive loss | (69) | (74) |
Retained earnings | 8,779 | 8,064 |
Treasury stock, at cost, 177.9 million and 170.4 million shares | (7,146) | (6,286) |
Total shareholders’ equity | 2,569 | 2,660 |
Total liabilities and shareholders’ equity | $ 9,637 | $ 9,340 |
Consolidated Balance Sheets (U6
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (in shares) | 395,700,000 | 395,700,000 |
Treasury stock, shares (in shares) | 177,900,000 | 170,400,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 715 | $ 523 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and other amortization | 187 | 163 |
Amortization of acquisition-related intangible assets | 119 | 149 |
Share-based compensation | 54 | 51 |
Excess tax benefits from share-based awards | (46) | (34) |
Deferred income taxes | 7 | (2) |
Income from investment in unconsolidated affiliate | (146) | (35) |
Dividends from unconsolidated affiliate | 140 | 36 |
Non-cash impairment charges | 17 | 4 |
Loss on early debt extinguishment | 0 | 85 |
Other operating activities | (2) | 3 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Trade accounts receivable | (15) | 16 |
Prepaid expenses and other assets | (40) | (64) |
Accounts payable and other liabilities | 111 | 135 |
Deferred revenue | (59) | (75) |
Net cash provided by operating activities | 1,042 | 955 |
Cash flows from investing activities: | ||
Capital expenditures, including capitalization of software costs | (223) | (292) |
Payments for acquisitions of businesses | (265) | 0 |
Other investing activities | 2 | (4) |
Net cash used in investing activities | (486) | (296) |
Cash flows from financing activities: | ||
Debt proceeds | 1,711 | 2,392 |
Debt repayments, including redemption and other costs | (1,380) | (2,058) |
Proceeds from issuance of treasury stock | 65 | 60 |
Purchases of treasury stock, including employee shares withheld for tax obligations | (970) | (1,066) |
Excess tax benefits from share-based awards | 46 | 34 |
Other financing activities | 0 | (6) |
Net cash used in financing activities | (528) | (644) |
Net change in cash and cash equivalents | 28 | 15 |
Cash and cash equivalents, beginning balance | 275 | 294 |
Cash and cash equivalents, ending balance | $ 303 | $ 309 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements for the three-month and nine -month periods ended September 30, 2016 and 2015 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and all 100% owned subsidiaries. Investments in less than 50% owned affiliates in which the Company has significant influence but not control are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which adds or clarifies guidance on the presentation and classification of eight specific types of cash receipts and cash payments in the statement of cash flows, with the intent of reducing diversity in practice. For public entities, ASU 2016-15 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Entities must apply the guidance retrospectively to all periods presented; however, entities may apply prospectively if retrospective application is impracticable. The Company is currently assessing the impact that the adoption of ASU 2016-15 will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), which prescribes an impairment model for most financial assets based on expected losses rather than incurred losses. Under this model, an estimate of expected credit losses over the contractual life of the instrument is to be recorded as of the end of a reporting period as an allowance to offset the amortized cost basis, resulting in a net presentation of the amount expected to be collected on the financial asset. For public entities, ASU 2016-13 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For most instruments, entities must apply the standard using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that the adoption of ASU 2016-13 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies several aspects of the accounting for share-based payment awards, including the accounting for income taxes and forfeitures, as well as classification in the statement of cash flows. The standard requires that all tax effects related to share-based payments be recorded as income tax expense or benefit in the income statement at settlement or expiration and, accordingly, excess tax benefits and tax deficiencies be presented as operating activities in the statement of cash flows. For public entities, ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted in any interim or annual period for which financial statements have not yet been issued. The recognition of all excess tax benefits and tax deficiencies in the income statement, as well as related changes to the computation of diluted earnings per share, is to be applied prospectively. Entities may elect to apply the change in presentation in the statement of cash flows either prospectively or retrospectively to all periods presented. The impact of adopting this standard on the Company’s consolidated financial statements is dependent upon the intrinsic value of share-based compensation awards at the time of exercise or vesting and may result in more variability in effective tax rates and net earnings and may also impact the dilution of common stock equivalents. During the three and nine months ended September 30, 2016 and 2015, the Company recorded $5 million and $4 million , and $42 million and $38 million , respectively, to consolidated equity as excess tax benefits from share-based compensation awards. The Company expects to adopt ASU 2016-09 in January 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize a lease liability and a right-of-use asset for each lease with a term longer than twelve months. The recognized liability is measured at the present value of lease payments not yet paid, and the corresponding asset represents the lessee’s right to use the underlying asset over the lease term and is based on the liability, subject to certain adjustments. For income statement purposes, the standard retains the dual model with leases classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. For public entities, ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The standard requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements of financial instruments. For public entities, ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted for certain provisions of the standard. Entities must apply the standard, with certain exceptions, using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that the adoption of ASU 2016-01 will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), to clarify the principles of recognizing revenue and to create common revenue recognition guidance between U.S. generally accepted accounting principles and International Financial Reporting Standards. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This model involves a five-step process for achieving that core principle, along with comprehensive disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB deferred the effective date of the new revenue standard for one year and will permit early adoption as of the original effective date in ASU 2014-09. For public entities, the standard is effective for annual and interim periods beginning after December 15, 2017. Entities have the option of using either a full retrospective or a modified approach to adopt this new guidance. The Company is currently assessing the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in its consolidated financial statements on a recurring basis. Fair value represents the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability. The fair values of cash equivalents, trade accounts receivable, settlement assets and obligations, and accounts payable approximate their respective carrying values due to the short period of time to maturity. The estimated fair value of total debt was $4.9 billion at September 30, 2016 and $4.3 billion at December 31, 2015 , and was based on quoted prices in inactive markets for the Company’s senior notes (level 2 of the fair value hierarchy) and discounted cash flows based on the Company’s current incremental borrowing rate for its term loan (level 3 of the fair value hierarchy). The fair value of the Company’s revolving credit facility borrowings approximates carrying value as the underlying interest rate is variable based on LIBOR. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On January 15, 2016, the Company acquired Hewlett Packard Enterprise’s Convenience Pay Services business, which enables providers to accept electronic payments from their consumers through multiple channels, thereby expanding the Company’s biller solution offerings. On March 3, 2016, the Company completed its purchase of certain assets of ACI Worldwide, Inc.’s Community Financial Services business, further enhancing the Company’s suite of digital banking and payments solutions. The Company acquired these businesses for an aggregate purchase price of $265 million . During the third quarter of 2016, the Company finalized the purchase price allocations based upon final valuations of intangible assets. The final purchase price allocations for these acquisitions did not materially change from the preliminary allocations and resulted in technology and customer intangible assets totaling approximately $80 million , goodwill of approximately $175 million , and other identifiable net assets of approximately $10 million . The goodwill, recognized within the Payments and Industry Products (“Payments”) segment, from these transactions is deductible for tax purposes and is primarily attributed to synergies and anticipated revenue and earnings growth associated with the products and services that these businesses provide. The results of operations for these acquired businesses have been included in the accompanying consolidated statements of income from the dates of acquisition. As a result of these acquisitions, the Company has incurred merger and integration costs, including a $10 million non-cash impairment charge in the first quarter of 2016 related to the Company’s decision to replace existing software with an acquired solution. The related impairment charge was recorded in cost of processing and services within Corporate and Other as such amount is excluded from the Company’s measure of the Payments segment’s operating performance. Pro forma information for these acquisitions is not provided because they did not have a material effect on the Company’s consolidated results of operations. |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliate | Investment in Unconsolidated Affiliate The Company owns a 49% interest in StoneRiver Group, L.P. (“StoneRiver”), which is accounted for as an equity method investment, and reports its share of StoneRiver’s net income as income from investment in unconsolidated affiliate. During the first quarter of 2016, StoneRiver recognized a gain on the sale of a business interest in which the Company’s pre-tax share of this gain was $190 million . During the first quarter of 2016, the Company also received cash dividends of $140 million from StoneRiver, which were funded from the sale transaction and recorded as reductions in the Company’s investment in StoneRiver. In conjunction with this activity, the Company evaluated its equity method investment in StoneRiver for its ability to recover the remaining carrying amount of such investment. Utilizing a discounted cash flow analysis (level 3 of the fair value hierarchy) to arrive at a measure of the investment’s fair value, the Company recognized an impairment loss of $44 million . The Company's $146 million pre-tax share of the gain, net of the impairment loss was recorded within income from investment in unconsolidated affiliate, with the related tax expense of $54 million recorded through the income tax provision, in the consolidated statements of income. During the three months ended September 30, 2015, StoneRiver recognized a gain on the sale of a subsidiary business. The Company's $32 million pre-tax share of the gain and related expenses was recorded within income from investment in unconsolidated affiliate, with the related tax expense of $14 million recorded through the income tax provision, in the consolidated statements of income. During the three months ended September 30, 2015, the Company received cash dividends of $36 million from StoneRiver, which were funded from the sale transaction and recorded as reductions in the Company's investment in StoneRiver. The Company’s investment in StoneRiver was $22 million and $17 million at September 30, 2016 and December 31, 2015 , respectively, and is reported within other long-term assets in the consolidated balance sheets. The dividends, in their entirety, represented returns on the Company's investment and are reported in cash flows from operating activities. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company recognized $15 million and $54 million of share-based compensation expense during the three and nine months ended September 30, 2016 , respectively, and $15 million and $51 million of share-based compensation expense during the three and nine months ended September 30, 2015 , respectively. The Company’s annual grant of share-based awards generally occurs in the first quarter. During the nine months ended September 30, 2016 , the Company granted 0.9 million stock options and 0.5 million restricted and performance-based stock units at weighted-average estimated fair values of $31.43 and $98.24 , respectively. During the nine months ended September 30, 2015 , the Company granted 1.1 million stock options and 0.3 million restricted stock units at weighted-average estimated fair values of $25.50 and $79.20 , respectively. During the nine months ended September 30, 2016 and 2015 , stock options to purchase 1.6 million and 1.9 million shares, respectively, were exercised. |
Shares Used in Computing Net In
Shares Used in Computing Net Income Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Shares Used in Computing Net Income Per Share | Shares Used in Computing Net Income Per Share The computation of shares used in calculating basic and diluted net income per common share is as follows: Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 Weighted-average common shares outstanding used for the calculation of net income per share – basic 219.2 232.9 221.6 236.0 Common stock equivalents 3.5 4.1 3.6 4.1 Weighted-average common shares outstanding used for the calculation of net income per share – diluted 222.7 237.0 225.2 240.1 For the three months ended September 30, 2016 and 2015 , stock options for 0.9 million and 1.0 million shares, respectively, were excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive. For the nine months ended September 30, 2016 and 2015 , stock options for 0.8 million and 0.9 million shares, respectively, were excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following: (In millions) Gross Carrying Amount Accumulated Amortization Net Book Value September 30, 2016 Customer related intangible assets $ 2,201 $ 1,012 $ 1,189 Acquired software and technology 508 427 81 Trade names 117 56 61 Capitalized software development costs 631 227 404 Purchased software 226 93 133 Total $ 3,683 $ 1,815 $ 1,868 (In millions) Gross Carrying Amount Accumulated Amortization Net Book Value December 31, 2015 Customer related intangible assets $ 2,155 $ 922 $ 1,233 Acquired software and technology 488 413 75 Trade names 120 53 67 Capitalized software development costs 575 199 376 Purchased software 256 135 121 Total $ 3,594 $ 1,722 $ 1,872 The Company estimates that annual amortization expense with respect to acquired intangible assets, which include customer related intangible assets, acquired software and technology, and trade names, will be approximately $160 million in 2016 , $150 million in 2017 , $140 million in each of 2018 and 2019 , and $120 million in 2020 . Annual amortization expense in 2016 with respect to capitalized and purchased software is estimated to approximate $130 million . |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: (In millions) September 30, December 31, Trade accounts payable $ 73 $ 74 Client deposits 387 330 Settlement obligations 247 224 Accrued compensation and benefits 149 196 Other accrued expenses 273 200 Total $ 1,129 $ 1,024 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: (In millions) Cash Flow Hedges Foreign Currency Translation Other Total Balance at December 31, 2015 $ (31 ) $ (41 ) $ (2 ) $ (74 ) Amounts reclassified from accumulated other comprehensive loss 5 — — 5 Net current-period other comprehensive income 5 — — 5 Balance at September 30, 2016 $ (26 ) $ (41 ) $ (2 ) $ (69 ) (In millions) Cash Flow Hedges Foreign Currency Translation Other Total Balance at December 31, 2014 $ (41 ) $ (20 ) $ (2 ) $ (63 ) Other comprehensive loss before reclassifications (1 ) (20 ) — (21 ) Amounts reclassified from accumulated other comprehensive loss 9 — — 9 Net current-period other comprehensive (loss) income 8 (20 ) — (12 ) Balance at September 30, 2015 $ (33 ) $ (40 ) $ (2 ) $ (75 ) Based on the amounts recorded in accumulated other comprehensive loss at September 30, 2016 , the Company estimates that it will recognize approximately $12 million in interest expense during the next twelve months related to settled interest rate hedge contracts. The Company has entered into foreign currency forward exchange contracts, which have been designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. As of September 30, 2016 , the notional amount of these derivatives was approximately $84 million , and the fair value totaling approximately $2 million is reported in prepaid expenses and other current assets in the consolidated balance sheet. As of December 31, 2015 , the notional amount of these derivatives was approximately $85 million , and the fair value totaling approximately $1 million is reported in accounts payable and accrued expenses in the consolidated balance sheet. |
Cash Flow Information
Cash Flow Information | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | Cash Flow Information Supplemental cash flow information was as follows: Nine Months Ended (In millions) 2016 2015 Interest paid $ 79 $ 78 Income taxes paid 306 222 Treasury stock purchases settled after the balance sheet date 18 38 |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s operations are comprised of the Payments segment and the Financial Institution Services (“Financial”) segment. The Payments segment primarily provides debit and credit card processing and services, electronic bill payment and presentment services, internet and mobile banking software and services, person-to-person payment services, and other electronic payments software and services. The businesses in this segment also provide card and print personalization services, investment account processing services for separately managed accounts, and fraud and risk management products and services. The Financial segment provides banks, thrifts, credit unions, and leasing and finance companies with account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services that support numerous types of financial transactions. Corporate and Other primarily consists of unallocated corporate expenses including share-based compensation, amortization of acquisition-related intangible assets, intercompany eliminations and other costs that are not considered when management evaluates segment performance. (In millions) Payments Financial Corporate and Other Total Three Months Ended September 30, 2016 Processing and services revenue $ 589 $ 570 $ 1 $ 1,160 Product revenue 183 53 (16 ) 220 Total revenue $ 772 $ 623 $ (15 ) $ 1,380 Operating income $ 241 $ 209 $ (81 ) $ 369 Three Months Ended September 30, 2015 Processing and services revenue $ 554 $ 572 $ (1 ) $ 1,125 Product revenue 160 40 (12 ) 188 Total revenue $ 714 $ 612 $ (13 ) $ 1,313 Operating income $ 217 $ 218 $ (93 ) $ 342 Nine Months Ended September 30, 2016 Processing and services revenue $ 1,736 $ 1,701 $ 4 $ 3,441 Product revenue 548 133 (48 ) 633 Total revenue $ 2,284 $ 1,834 $ (44 ) $ 4,074 Operating income $ 703 $ 606 $ (239 ) $ 1,070 Nine Months Ended September 30, 2015 Processing and services revenue $ 1,610 $ 1,694 $ (3 ) $ 3,301 Product revenue 501 119 (35 ) 585 Total revenue $ 2,111 $ 1,813 $ (38 ) $ 3,886 Operating income $ 616 $ 631 $ (265 ) $ 982 Goodwill in the Payments segment was $3.6 billion and $3.4 billion as of September 30, 2016 and December 31, 2015 , respectively. Goodwill in the Financial segment was $1.8 billion at both September 30, 2016 and December 31, 2015 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and all 100% owned subsidiaries. Investments in less than 50% owned affiliates in which the Company has significant influence but not control are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. |
Recent Accounting Pronouncements | In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which adds or clarifies guidance on the presentation and classification of eight specific types of cash receipts and cash payments in the statement of cash flows, with the intent of reducing diversity in practice. For public entities, ASU 2016-15 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Entities must apply the guidance retrospectively to all periods presented; however, entities may apply prospectively if retrospective application is impracticable. The Company is currently assessing the impact that the adoption of ASU 2016-15 will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), which prescribes an impairment model for most financial assets based on expected losses rather than incurred losses. Under this model, an estimate of expected credit losses over the contractual life of the instrument is to be recorded as of the end of a reporting period as an allowance to offset the amortized cost basis, resulting in a net presentation of the amount expected to be collected on the financial asset. For public entities, ASU 2016-13 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For most instruments, entities must apply the standard using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that the adoption of ASU 2016-13 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies several aspects of the accounting for share-based payment awards, including the accounting for income taxes and forfeitures, as well as classification in the statement of cash flows. The standard requires that all tax effects related to share-based payments be recorded as income tax expense or benefit in the income statement at settlement or expiration and, accordingly, excess tax benefits and tax deficiencies be presented as operating activities in the statement of cash flows. For public entities, ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted in any interim or annual period for which financial statements have not yet been issued. The recognition of all excess tax benefits and tax deficiencies in the income statement, as well as related changes to the computation of diluted earnings per share, is to be applied prospectively. Entities may elect to apply the change in presentation in the statement of cash flows either prospectively or retrospectively to all periods presented. The impact of adopting this standard on the Company’s consolidated financial statements is dependent upon the intrinsic value of share-based compensation awards at the time of exercise or vesting and may result in more variability in effective tax rates and net earnings and may also impact the dilution of common stock equivalents. During the three and nine months ended September 30, 2016 and 2015, the Company recorded $5 million and $4 million , and $42 million and $38 million , respectively, to consolidated equity as excess tax benefits from share-based compensation awards. The Company expects to adopt ASU 2016-09 in January 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize a lease liability and a right-of-use asset for each lease with a term longer than twelve months. The recognized liability is measured at the present value of lease payments not yet paid, and the corresponding asset represents the lessee’s right to use the underlying asset over the lease term and is based on the liability, subject to certain adjustments. For income statement purposes, the standard retains the dual model with leases classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. For public entities, ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The standard requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements of financial instruments. For public entities, ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted for certain provisions of the standard. Entities must apply the standard, with certain exceptions, using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that the adoption of ASU 2016-01 will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), to clarify the principles of recognizing revenue and to create common revenue recognition guidance between U.S. generally accepted accounting principles and International Financial Reporting Standards. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This model involves a five-step process for achieving that core principle, along with comprehensive disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB deferred the effective date of the new revenue standard for one year and will permit early adoption as of the original effective date in ASU 2014-09. For public entities, the standard is effective for annual and interim periods beginning after December 15, 2017. Entities have the option of using either a full retrospective or a modified approach to adopt this new guidance. The Company is currently assessing the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements. |
Shares Used in Computing Net 21
Shares Used in Computing Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of shares used in calculating basic and diluted net income per common share | The computation of shares used in calculating basic and diluted net income per common share is as follows: Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 Weighted-average common shares outstanding used for the calculation of net income per share – basic 219.2 232.9 221.6 236.0 Common stock equivalents 3.5 4.1 3.6 4.1 Weighted-average common shares outstanding used for the calculation of net income per share – diluted 222.7 237.0 225.2 240.1 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets by class | Intangible assets consisted of the following: (In millions) Gross Carrying Amount Accumulated Amortization Net Book Value September 30, 2016 Customer related intangible assets $ 2,201 $ 1,012 $ 1,189 Acquired software and technology 508 427 81 Trade names 117 56 61 Capitalized software development costs 631 227 404 Purchased software 226 93 133 Total $ 3,683 $ 1,815 $ 1,868 (In millions) Gross Carrying Amount Accumulated Amortization Net Book Value December 31, 2015 Customer related intangible assets $ 2,155 $ 922 $ 1,233 Acquired software and technology 488 413 75 Trade names 120 53 67 Capitalized software development costs 575 199 376 Purchased software 256 135 121 Total $ 3,594 $ 1,722 $ 1,872 |
Accounts Payable and Accrued 23
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following: (In millions) September 30, December 31, Trade accounts payable $ 73 $ 74 Client deposits 387 330 Settlement obligations 247 224 Accrued compensation and benefits 149 196 Other accrued expenses 273 200 Total $ 1,129 $ 1,024 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive loss by component, net of income taxes | Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: (In millions) Cash Flow Hedges Foreign Currency Translation Other Total Balance at December 31, 2015 $ (31 ) $ (41 ) $ (2 ) $ (74 ) Amounts reclassified from accumulated other comprehensive loss 5 — — 5 Net current-period other comprehensive income 5 — — 5 Balance at September 30, 2016 $ (26 ) $ (41 ) $ (2 ) $ (69 ) (In millions) Cash Flow Hedges Foreign Currency Translation Other Total Balance at December 31, 2014 $ (41 ) $ (20 ) $ (2 ) $ (63 ) Other comprehensive loss before reclassifications (1 ) (20 ) — (21 ) Amounts reclassified from accumulated other comprehensive loss 9 — — 9 Net current-period other comprehensive (loss) income 8 (20 ) — (12 ) Balance at September 30, 2015 $ (33 ) $ (40 ) $ (2 ) $ (75 ) |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Supplemental cash flow information was as follows: Nine Months Ended (In millions) 2016 2015 Interest paid $ 79 $ 78 Income taxes paid 306 222 Treasury stock purchases settled after the balance sheet date 18 38 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | (In millions) Payments Financial Corporate and Other Total Three Months Ended September 30, 2016 Processing and services revenue $ 589 $ 570 $ 1 $ 1,160 Product revenue 183 53 (16 ) 220 Total revenue $ 772 $ 623 $ (15 ) $ 1,380 Operating income $ 241 $ 209 $ (81 ) $ 369 Three Months Ended September 30, 2015 Processing and services revenue $ 554 $ 572 $ (1 ) $ 1,125 Product revenue 160 40 (12 ) 188 Total revenue $ 714 $ 612 $ (13 ) $ 1,313 Operating income $ 217 $ 218 $ (93 ) $ 342 Nine Months Ended September 30, 2016 Processing and services revenue $ 1,736 $ 1,701 $ 4 $ 3,441 Product revenue 548 133 (48 ) 633 Total revenue $ 2,284 $ 1,834 $ (44 ) $ 4,074 Operating income $ 703 $ 606 $ (239 ) $ 1,070 Nine Months Ended September 30, 2015 Processing and services revenue $ 1,610 $ 1,694 $ (3 ) $ 3,301 Product revenue 501 119 (35 ) 585 Total revenue $ 2,111 $ 1,813 $ (38 ) $ 3,886 Operating income $ 616 $ 631 $ (265 ) $ 982 |
Recent Accounting Pronounceme27
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | ||||
Excess tax benefits from share-based compensation awards | $ 5 | $ 4 | $ 42 | $ 38 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Billions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Fair value of total debt | $ 4.9 | $ 4.3 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 03, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Payments for acquisitions of businesses | $ 265 | $ 0 | |||
Goodwill | 5,375 | $ 5,200 | |||
Software | |||||
Business Acquisition [Line Items] | |||||
Impairment of intangible assets, finite-lived | $ 10 | ||||
Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Payments for acquisitions of businesses | $ 265 | ||||
Recognized identifiable assets acquired, finite-lived intangibles | 80 | ||||
Goodwill | 175 | ||||
Recognized identifiable assets acquired, net other assets | $ 10 |
Investment in Unconsolidated 30
Investment in Unconsolidated Affiliate (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Dividends from unconsolidated affiliate | $ 140 | $ 36 | |||
StoneRiver Group, L.P. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of interest owned in affiliate (as percent) | 49.00% | ||||
Deconsolidation gain from equity method investments | $ 190 | $ 32 | |||
Dividends from unconsolidated affiliate | 140 | 36 | |||
Equity method investment, other than temporary impairment | 44 | ||||
Deconsolidation gain net of impairment from equity method investments | 146 | ||||
Deconsolidation gain from equity method investments, tax | $ 54 | $ 14 | |||
Investments in affiliate | $ 22 | $ 17 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 15 | $ 15 | $ 54 | $ 51 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based awards, stock options, granted (in shares) | 0.9 | 1.1 | ||
Share-based awards, stock options, weighted-average estimated fair values (in dollar per share) | $ 31.43 | $ 25.50 | ||
Share-based awards, stock options, exercised (in shares) | 1.6 | 1.9 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based awards, restricted stock units, granted (in shares) | 0.5 | 0.3 | ||
Share-based awards, restricted stock units, weighted-average estimated fair values (in dollar per share) | $ 98.24 | $ 79.20 |
Shares Used in Computing Net 32
Shares Used in Computing Net Income Per Share (Schedule of Weighted-Average Number of Shares) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding used for the calculation of net income per share – basic (in shares) | 219.2 | 232.9 | 221.6 | 236 |
Common stock equivalents (in shares) | 3.5 | 4.1 | 3.6 | 4.1 |
Weighted-average common shares outstanding used for the calculation of net income per share – diluted (in shares) | 222.7 | 237 | 225.2 | 240.1 |
Shares Used in Computing Net 33
Shares Used in Computing Net Income Per Share (Narratives) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Stock options excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive (in shares) | 0.9 | 1 | 0.8 | 0.9 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Intangible Assets by Class) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,683 | $ 3,594 |
Accumulated Amortization | 1,815 | 1,722 |
Net Book Value | 1,868 | 1,872 |
Customer related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,201 | 2,155 |
Accumulated Amortization | 1,012 | 922 |
Net Book Value | 1,189 | 1,233 |
Acquired software and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 508 | 488 |
Accumulated Amortization | 427 | 413 |
Net Book Value | 81 | 75 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 117 | 120 |
Accumulated Amortization | 56 | 53 |
Net Book Value | 61 | 67 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 631 | 575 |
Accumulated Amortization | 227 | 199 |
Net Book Value | 404 | 376 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 226 | 256 |
Accumulated Amortization | 93 | 135 |
Net Book Value | $ 133 | $ 121 |
Intangible Assets (Narratives)
Intangible Assets (Narratives) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Acquired intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated annual amortization expense in 2016 | $ 160 |
Estimated annual amortization expense in 2017 | 150 |
Estimated annual amortization expense in 2018 | 140 |
Estimated annual amortization expense in 2019 | 140 |
Estimated annual amortization expense in 2020 | 120 |
Capitalized and purchased software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated annual amortization expense in 2016 | $ 130 |
Accounts Payable and Accrued 36
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 73 | $ 74 |
Client deposits | 387 | 330 |
Settlement obligations | 247 | 224 |
Accrued compensation and benefits | 149 | 196 |
Other accrued expenses | 273 | 200 |
Total | $ 1,129 | $ 1,024 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | $ (74) | $ (63) | ||
Other comprehensive income (loss) before reclassifications | (21) | |||
Amounts reclassified from accumulated other comprehensive loss | 5 | 9 | ||
Total other comprehensive income (loss) | $ 5 | $ (9) | 5 | (12) |
Balance at end of the period | (69) | (75) | (69) | (75) |
Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | (31) | (41) | ||
Other comprehensive income (loss) before reclassifications | (1) | |||
Amounts reclassified from accumulated other comprehensive loss | 5 | 9 | ||
Total other comprehensive income (loss) | 5 | 8 | ||
Balance at end of the period | (26) | (33) | (26) | (33) |
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | (41) | (20) | ||
Other comprehensive income (loss) before reclassifications | (20) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Total other comprehensive income (loss) | 0 | (20) | ||
Balance at end of the period | (41) | (40) | (41) | (40) |
Other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | (2) | (2) | ||
Other comprehensive income (loss) before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Total other comprehensive income (loss) | 0 | 0 | ||
Balance at end of the period | $ (2) | $ (2) | $ (2) | $ (2) |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Narratives) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Estimated interest expense related to settled interest rate hedge contracts during the next twelve months | $ 12 | |
Foreign currency forward exchange contracts | Indian Rupee | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Notional amount of derivative | 84 | $ 85 |
Total fair value of cash flow hedge derivatives | $ 2 | $ (1) |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 79 | $ 78 |
Income taxes paid | 306 | 222 |
Treasury stock purchases settled after the balance sheet date | $ 18 | $ 38 |
Business Segment Information (S
Business Segment Information (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Processing and services revenue | $ 1,160 | $ 1,125 | $ 3,441 | $ 3,301 |
Product revenue | 220 | 188 | 633 | 585 |
Total revenue | 1,380 | 1,313 | 4,074 | 3,886 |
Operating income | 369 | 342 | 1,070 | 982 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Processing and services revenue | 1 | (1) | 4 | (3) |
Product revenue | (16) | (12) | (48) | (35) |
Total revenue | (15) | (13) | (44) | (38) |
Operating income | (81) | (93) | (239) | (265) |
Payments | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Processing and services revenue | 589 | 554 | 1,736 | 1,610 |
Product revenue | 183 | 160 | 548 | 501 |
Total revenue | 772 | 714 | 2,284 | 2,111 |
Operating income | 241 | 217 | 703 | 616 |
Financial | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Processing and services revenue | 570 | 572 | 1,701 | 1,694 |
Product revenue | 53 | 40 | 133 | 119 |
Total revenue | 623 | 612 | 1,834 | 1,813 |
Operating income | $ 209 | $ 218 | $ 606 | $ 631 |
Business Segment Information (N
Business Segment Information (Narratives) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 5,375 | $ 5,200 |
Operating segments | Payments | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 3,600 | 3,400 |
Operating segments | Financial | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 1,800 | $ 1,800 |