Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | FISERV INC | ||
Entity Central Index Key | 798,354 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 391,586,971 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 30,024,669,916 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Processing and services | $ 4,975 | $ 4,833 | $ 4,625 |
Product | 848 | 863 | 880 |
Total revenue | 5,823 | 5,696 | 5,505 |
Expenses: | |||
Cost of processing and services | 2,324 | 2,291 | 2,212 |
Cost of product | 745 | 733 | 747 |
Selling, general and administrative | 1,228 | 1,150 | 1,101 |
Gain on sale of businesses | (227) | (10) | 0 |
Total expenses | 4,070 | 4,164 | 4,060 |
Operating income | 1,753 | 1,532 | 1,445 |
Interest expense | (193) | (176) | (163) |
Loss on early debt extinguishment | (14) | 0 | 0 |
Non-operating income (loss) | 9 | 2 | (7) |
Income from continuing operations before income taxes and income from investments in unconsolidated affiliates | 1,555 | 1,358 | 1,275 |
Income tax provision | (378) | (158) | (492) |
Income from investments in unconsolidated affiliates | 10 | 32 | 147 |
Income from continuing operations | 1,187 | 1,232 | 930 |
Income from discontinued operations, net of income taxes | 0 | 14 | 0 |
Net income | $ 1,187 | $ 1,246 | $ 930 |
Net income per share - basic: | |||
Continuing operations (in dollars per share) | $ 2.93 | $ 2.92 | $ 2.11 |
Discontinued operations (in dollars per share) | 0 | 0.03 | 0 |
Total (in dollars per share) | 2.93 | 2.95 | 2.11 |
Net income per share - diluted: | |||
Continuing operations (in dollars per share) | 2.87 | 2.86 | 2.08 |
Discontinued operations (in dollars per share) | 0 | 0.03 | 0 |
Total (in dollars per share) | $ 2.87 | $ 2.89 | $ 2.08 |
Shares used in computing net income per share: | |||
Basic (in shares) | 405.5 | 422.3 | 440.6 |
Diluted (in shares) | 413.7 | 431.3 | 447.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 1,246 | $ 930 |
Other comprehensive (loss) income: | ||
Fair market value adjustment on cash flow hedges, net of income tax (benefit) provision of ($2 million) and $2 million | 4 | 0 |
Foreign currency translation | 12 | (9) |
Total other comprehensive (loss) income | 22 | (2) |
Comprehensive income | 1,268 | 928 |
Cost of Services | ||
Other comprehensive (loss) income: | ||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | 0 | 0 |
Interest Expense | ||
Other comprehensive (loss) income: | ||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | $ 6 | $ 7 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair market value adjustment on cash flow hedges, tax (benefit) provision | $ 2 | $ 0 |
Cost of Services | ||
Reclassification adjustment for net realized (gains) losses on cash flow hedges, tax | 0 | 0 |
Interest Expense | ||
Reclassification adjustment for net realized (gains) losses on cash flow hedges, tax | $ 4 | $ 5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 415 | $ 325 |
Trade accounts receivable, less allowance for doubtful accounts | 1,049 | 997 |
Prepaid expenses and other current assets | 760 | 603 |
Assets held for sale | 0 | 50 |
Total current assets | 2,224 | 1,975 |
Property and equipment, net | 398 | 390 |
Intangible assets, net | 2,143 | 1,882 |
Goodwill | 5,702 | 5,590 |
Contract costs, net | 419 | 84 |
Other long-term assets | 376 | 368 |
Total assets | 11,262 | 10,289 |
Liabilities and Shareholders’ Equity | ||
Accounts payable and accrued expenses | 1,626 | 1,359 |
Current maturities of long-term debt | 4 | 3 |
Contract liabilities | 380 | 576 |
Total current liabilities | 2,010 | 1,938 |
Long-term debt | 5,955 | 4,897 |
Deferred income taxes | 745 | 552 |
Long-term contract liabilities | 89 | 54 |
Other long-term liabilities | 170 | 117 |
Total liabilities | 8,969 | 7,558 |
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: 1,800.0 million shares authorized; 791.4 million shares issued | 8 | 8 |
Additional paid-in capital | 1,057 | 1,031 |
Accumulated other comprehensive loss | (67) | (54) |
Retained earnings | 11,635 | 10,240 |
Treasury stock, at cost, 398.9 million and 376.3 million shares | (10,340) | (8,494) |
Total shareholders’ equity | 2,293 | 2,731 |
Total liabilities and shareholders’ equity | $ 11,262 | $ 10,289 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
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) | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued (in shares) | 791,400,000 | 791,400,000 |
Treasury stock, shares (in shares) | 398,900,000 | 376,300,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Shares | New Accounting Pronouncement, Early Adoption, EffectAccumulated Other Comprehensive Loss | New Accounting Pronouncement, Early Adoption, EffectRetained Earnings |
Balance at beginning of period (in shares) at Dec. 31, 2015 | 791 | 340 | ||||||
Balance at beginning of period at Dec. 31, 2015 | $ 2,660 | $ 8 | $ 948 | $ (74) | $ 8,064 | $ (6,286) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 930 | 930 | ||||||
Other comprehensive income (loss) | (2) | (2) | ||||||
Share-based compensation | 68 | 68 | ||||||
Shares issued under stock plans including income tax benefits (in shares) | (4) | |||||||
Shares issued under stock plans including income tax benefits | 83 | 0 | $ 83 | |||||
Purchases of treasury stock (in shares) | 24 | |||||||
Purchases of treasury stock | (1,198) | $ (1,198) | ||||||
Balance at end of period (in shares) at Dec. 31, 2016 | 791 | 360 | ||||||
Balance at end of period at Dec. 31, 2016 | 2,541 | $ 8 | 1,016 | (76) | 8,994 | $ (7,401) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,246 | 1,246 | ||||||
Other comprehensive income (loss) | 22 | 22 | ||||||
Share-based compensation | 63 | 63 | ||||||
Shares issued under stock plans including income tax benefits (in shares) | (4) | |||||||
Shares issued under stock plans including income tax benefits | 30 | (48) | $ 78 | |||||
Purchases of treasury stock (in shares) | 20 | |||||||
Purchases of treasury stock | (1,171) | $ (1,171) | ||||||
Balance at end of period (in shares) at Dec. 31, 2017 | 791 | 376 | ||||||
Balance at end of period at Dec. 31, 2017 | 2,731 | $ 8 | 1,031 | (54) | 10,240 | $ (8,494) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of new accounting principle | Accounting Standards Update 2014-09 | 208 | 208 | ||||||
Cumulative effect of new accounting principle | Accounting Standards Update 2017-12 | $ 3 | $ (3) | ||||||
Cumulative effect of new accounting principle | Accounting Standards Update 2018-02 | $ (3) | 3 | ||||||
Net income | 1,187 | 1,187 | ||||||
Other comprehensive income (loss) | (13) | (13) | ||||||
Share-based compensation | 73 | 73 | ||||||
Shares issued under stock plans including income tax benefits (in shares) | (3) | |||||||
Shares issued under stock plans including income tax benefits | 22 | (47) | $ 69 | |||||
Purchases of treasury stock (in shares) | 26 | |||||||
Purchases of treasury stock | (1,915) | $ (1,915) | ||||||
Balance at end of period (in shares) at Dec. 31, 2018 | 791 | 399 | ||||||
Balance at end of period at Dec. 31, 2018 | $ 2,293 | $ 8 | $ 1,057 | $ (67) | $ 11,635 | $ (10,340) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of new accounting principle | Accounting Standards Update 2017-12 | (3) | |||||||
Cumulative effect of new accounting principle | Accounting Standards Update 2018-02 | $ 3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 1,187 | $ 1,246 | $ 930 |
Adjustment for discontinued operations | 0 | (14) | 0 |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||
Depreciation and other amortization | 393 | 285 | 263 |
Amortization of acquisition-related intangible assets | 163 | 159 | 158 |
Share-based compensation | 73 | 63 | 68 |
Excess tax benefits from share-based awards | 0 | 0 | (51) |
Deferred income taxes | 133 | (247) | 21 |
Gain on sale of businesses | (227) | (10) | 0 |
Loss on early debt extinguishment | 14 | 0 | 0 |
Income from investments in unconsolidated affiliates | (10) | (32) | (147) |
Dividends from unconsolidated affiliates | 2 | 45 | 151 |
Non-cash impairment charges | 3 | 18 | 17 |
Other operating activities | (10) | (4) | (2) |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | |||
Trade accounts receivable | (108) | (75) | (88) |
Prepaid expenses and other assets | (6) | (37) | (64) |
Contract costs | (137) | (29) | (14) |
Accounts payable and other liabilities | 116 | 54 | 172 |
Contract liabilities | (34) | 61 | 17 |
Net cash provided by operating activities from continuing operations | 1,552 | 1,483 | 1,431 |
Cash flows from investing activities: | |||
Capital expenditures, including capitalization of software costs | (360) | (287) | (290) |
Proceeds from sale of businesses | 419 | 17 | 0 |
Payments for acquisitions of businesses, net of cash acquired | (712) | (384) | (265) |
Purchases of investments | (3) | (10) | (1) |
Other investing activities | (7) | 7 | 2 |
Net cash used in investing activities from continuing operations | (663) | (657) | (554) |
Cash flows from financing activities: | |||
Debt proceeds | 5,039 | 2,310 | 2,126 |
Debt repayments, including redemption and other costs | (4,005) | (1,985) | (1,863) |
Proceeds from issuance of treasury stock | 75 | 78 | 79 |
Purchases of treasury stock, including employee shares withheld for tax obligations | (1,946) | (1,223) | (1,245) |
Excess tax benefits from share-based awards | 0 | 0 | 51 |
Other financing activities | (5) | 0 | 0 |
Net cash used in financing activities from continuing operations | (842) | (820) | (852) |
Net change in cash and cash equivalents from continuing operations | 47 | 6 | 25 |
Net change in cash and cash equivalents from discontinued operations | 43 | 19 | 0 |
Cash and cash equivalents, beginning balance | 325 | 300 | 275 |
Cash and cash equivalents, ending balance | 415 | 325 | 300 |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | |||
Net cash (used in) provided by operating activities | (7) | 19 | 0 |
Net cash provided by investing activities | 50 | 0 | 0 |
Net change in cash and cash equivalents from discontinued operations | $ 43 | $ 19 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of the Business Fiserv, Inc. and its subsidiaries (collectively, the “Company”) provide financial services technology to clients worldwide, including banks, credit unions, investment management firms, leasing and finance companies, billers, retailers, and merchants. The Company provides account processing systems, electronic payments processing products and services, internet and mobile banking systems, and related services. The Company is principally located in the United States where it operates data and transaction processing centers, provides technology support, develops software and payment solutions, and offers consulting services. The Company’s operations are comprised of the Payments and Industry Products (“Payments”) segment and the Financial Institution Services (“Financial”) segment. Additional information regarding the Company’s business segments is included in Note 10 . 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. Stock Split On February 21, 2018, the Company’s board of directors declared a two -for-one stock split of the Company’s common stock and a proportionate increase in the number of its authorized shares of common stock. The additional shares were distributed on March 19, 2018 to shareholders of record at the close of business on March 5, 2018. The Company’s common stock began trading at the split-adjusted price on March 20, 2018. All share and per share amounts are retroactively presented on a split adjusted basis. The impact on the consolidated balance sheets of the stock split was an increase of $4 million to common stock and an offsetting reduction in additional paid-in capital, which has been retroactively restated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-02, Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects of the change in the U.S. federal corporate tax rate resulting from the Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017. ASU 2018-02 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company early adopted ASU 2018-02 in the first quarter of 2018, and elected to reclassify the Tax Act income tax benefits of $3 million from accumulated other comprehensive loss to retained earnings. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which provides guidance designed to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements as well as to simplify the application of the hedge accounting guidance in current U.S. generally accepted accounting principles. For public entities, ASU 2017-12 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year. For cash flow and net investment hedges existing at the date of adoption, the standard requires a cumulative-effect adjustment to eliminate the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year of adoption. The amended presentation and disclosure guidance is required only prospectively. The Company early adopted ASU 2017-12 in the first quarter of 2018, and recorded a cumulative-effect adjustment to accumulated other comprehensive loss of $3 million with a corresponding decrease in the opening balance of retained earnings. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which eliminates the current prohibition on immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory, with the intent of reducing complexity and diversity in practice. Under ASU 2016-16, entities must recognize the income tax consequences when the transfer occurs rather than deferring recognition. For public entities, ASU 2016-16 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. Entities must apply the guidance on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2016-16 in the first quarter of 2018, and the adoption did not have a material impact 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 was effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. 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. The impact of this standard on the Company’s consolidated financial statements depends on the intrinsic value of share-based compensation awards at the time of exercise or vesting, resulting in more variability in effective tax rates and net earnings, and also impacting the dilution of common stock equivalents. The Company adopted ASU 2016-09 effective January 1, 2017. As a result of this adoption, the Company recorded excess tax benefits related to share-based compensation awards of $34 million and $48 million in 2018 and 2017, respectively, in the income tax provision, whereas such benefits were previously recognized in equity. These benefits were partially offset by an increase in the dilution of common stock equivalents for calculating diluted earnings per share. The Company elected to apply the change in presentation in the statement of cash flows prospectively, and as a result, excess tax benefits are classified as operating activities when realized through reductions to subsequent tax payments. The treatment of forfeitures did not change as the Company elected to continue its current practice of estimating expected forfeitures. 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. 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 adopted ASU 2016-01 in the first quarter of 2018, and the adoption did not have any impact 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, including industry-specific requirements. It also includes guidance on accounting for the incremental costs of obtaining and costs incurred to fulfill a contract with a customer. 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. For public entities, the new revenue standard is effective for annual and interim periods beginning after December 15, 2017. Entities have the option of adopting this new guidance using either a full retrospective or a modified approach with the cumulative effect of applying the guidance recognized at the date of initial application. The Company adopted the new standard effective January 1, 2018 using the modified retrospective transition approach applied to all contracts, which resulted in a cumulative-effect increase in the opening balance of retained earnings of $208 million , primarily related to the deferral of incremental sales commissions incurred in obtaining contracts in prior periods. Under this transition approach, the Company has not restated the prior period consolidated financial statements presented; however, it has provided additional disclosures related to the amount by which each relevant 2018 financial statement line item was affected by adoption of the new standard and explanations for significant changes (see Note 2). Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements under Accounting Standards Codification (“ASC”) 350 for capitalizing implementation costs incurred to develop or obtain internal-use software. For public entities, ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. Entities are permitted to apply either a retrospective or prospective transition approach to adopt the guidance. The Company is currently assessing the impact that the adoption of ASU 2018-15 will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which removes, modifies, and adds certain disclosure requirements of ASC Topic 820, Fair Value Measurement . ASU 2018-13 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019, with the additional disclosures required to be applied prospectively and the modified and removed disclosures required to be applied retrospectively to all periods presented. Entities are permitted to early adopt the removed or modified disclosures and delay the adoption of the additional disclosures until the effective date. The Company is currently assessing the impact that the adoption of ASU 2018-13 will have on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which simplifies the accounting for share-based payments granted to nonemployees by largely aligning it with the accounting for share-based payments to employees. For public entities, ASU 2018-07 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. Entities must apply the standard, using a modified retrospective transition approach, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for all liability-classified nonemployee awards that have not been settled as of the adoption date and equity-classified nonemployee awards for which a measurement date has not been established. The Company does not expect the adoption of ASU 2018-07 to have a material impact 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 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 and statement of cash flow 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. The standard prescribes 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. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU No. 2018-10, Codification Improvements to Topic 842 ; ASU No. 2018-11, Leases (Topic 842) - Targeted Improvements ; and ASU No. 2018-20, Narrow-Scope Improvements for Lessors . ASU No. 2018-11 provides an additional transition method allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. For public entities, ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the new standard effective January 1, 2019 using the optional transition method in ASU 2018-11. Under this method, the Company will not adjust its comparative period financial statements for the effects of the new standard or make the new, expanded required disclosures for periods prior to the effective date. The Company elected the package of practical expedients permitted under the transition guidance in ASU 2016-02 to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company also elected the practical expedient not to separate the non-lease components of a contract from the lease component to which they relate. The Company has identified and implemented appropriate changes for adopting this new lease standard on its consolidated financial statements, including changes to related disclosures, accounting policies, and necessary control, process and system changes. The adoption of the new lease standard resulted in the recognition of lease liabilities of approximately $375 million and right-of-use assets of approximately $350 million , which include the impact of existing deferred rents and tenant improvement allowances on the consolidated balance sheet as of January 1, 2019 for real and personal property operating leases. The adoption of ASU 2016-02 will not have a material impact on the Company’s consolidated statements of income or consolidated statements of cash flows. 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, accounts payable, and client deposits approximate their respective carrying values due to the short period of time to maturity. The estimated fair value of total debt is described in Note 6 and was based on quoted prices in active markets for the Company’s senior notes (level 1 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. The aggregate fair values of the Company’s debt guarantee arrangements (see Note 5 ) approximate the $29 million carrying values at December 31, 2018 (level 3 of the fair value hierarchy). The estimated fair value of the contingent consideration liability of $12 million at December 31, 2018 related to the acquisition of Elan Financial Services (see Note 3 ) was based on the present value of a probability-weighted assessment approach derived from the likelihood of achieving the earn-out criteria (level 3 of the fair value hierarchy). This estimated fair value has not changed since the acquisition date. The Company’s contingent consideration liability, originally estimated at a fair value of $15 million (level 3 of the fair value hierarchy), arising from its acquisition of Online Banking Solutions, Inc. was adjusted to $5 million at December 31, 2018 based on a reduced likelihood of achieving the various earn-out criteria. The $10 million non-cash fair value adjustment was recorded to selling, general and administrative expense in the consolidated statement of income for the year ended December 31, 2018. The contingent consideration and debt guarantee liabilities are reported primarily in other long-term liabilities in the consolidated balance sheets. Derivatives Derivatives are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative are recognized in earnings. To the extent the fair value hedge is effective, there is an offsetting adjustment to the basis of the item being hedged. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. Foreign Currency Foreign currency denominated assets and liabilities, where the functional currency is the local currency, are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. Revenue Recognition Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers , and its related amendments using the modified retrospective transition approach applied to all contracts. Prior period amounts have not been restated; however, certain prior period amounts have been reclassified to conform to current period presentation. Additional information about the Company’s revenue recognition policies and the related impact of the adoption is included in Note 2 to the consolidated financial statements. Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of: salaries, wages, commissions and related expenses paid to sales personnel, administrative employees and management; advertising and promotional costs; depreciation and amortization; and other selling and administrative expenses. Cash and Cash Equivalents Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less. Allowance for Doubtful Accounts The Company analyzes the collectability of trade accounts receivable by considering historical bad debts, client creditworthiness, current economic trends, changes in client payment terms and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. The allowance for doubtful accounts was $18 million and $15 million at December 31, 2018 and 2017 , respectively. Prepaid Expenses Prepaid expenses represent advance payments for goods and services to be consumed in the future, such as maintenance, postage and insurance, and totaled $158 million and $136 million at December 31, 2018 and 2017 , respectively. Settlement Assets and Obligations Settlement assets of $486 million and $385 million were included in prepaid expenses and other current assets at December 31, 2018 and 2017 , respectively, and settlement obligations of $480 million and $379 million were included in accounts payable and accrued expenses at December 31, 2018 and 2017 , respectively. Settlement assets and obligations result from timing differences between collection and fulfillment of payment transactions primarily associated with the Company’s walk-in and expedited bill payment service businesses. Settlement assets represent cash received or amounts receivable from agents, payment networks or directly from consumers. Settlement obligations represent amounts payable to clients and payees. Property and Equipment Property and equipment are reported at cost. Depreciation of property and equipment is computed primarily using the straight-line method over the shorter of the estimated useful life of the asset or the leasehold period, if applicable. Property and equipment consisted of the following at December 31: (In millions) Estimated Useful Lives 2018 2017 Land — $ 10 $ 13 Data processing equipment 3 to 5 years 775 726 Buildings and leasehold improvements 5 to 40 years 256 255 Furniture and equipment 5 to 8 years 186 182 1,227 1,176 Less: accumulated depreciation (829 ) (786 ) Total $ 398 $ 390 Depreciation expense for all property and equipment totaled $92 million in each of 2018 and 2017 , and $90 million in 2016 . Intangible Assets Intangible assets consisted of the following at December 31: (In millions) Gross Carrying Amount Accumulated Amortization Net Book Value 2018 Customer related intangible assets $ 2,642 $ 1,294 $ 1,348 Acquired software and technology 591 490 101 Trade names 120 71 49 Capitalized software development costs 810 314 496 Purchased software 261 112 149 Total $ 4,424 $ 2,281 $ 2,143 (In millions) Gross Carrying Amount Accumulated Amortization Net Book Value 2017 Customer related intangible assets $ 2,293 $ 1,168 $ 1,125 Acquired software and technology 579 460 119 Trade names 117 64 53 Capitalized software development costs 737 282 455 Purchased software 241 111 130 Total $ 3,967 $ 2,085 $ 1,882 Customer related intangible assets represent customer contracts and relationships obtained as part of acquired businesses and are amortized over their estimated useful lives, generally ten to twenty years. Acquired software and technology represents software and technology intangible assets obtained as part of acquired businesses and are amortized over their estimated useful lives, generally four to eight years. Trade names are amortized over their estimated useful lives, generally eight to twenty years. Amortization expense for acquired intangible assets, which include customer related intangible assets, acquired software and technology, and trade names, totaled $163 million , $159 million and $158 million in 2018 , 2017 and 2016 , respectively. The Company continually develops, maintains and enhances its products and systems. Product development expenditures represented approximately 8% of the Company’s total revenue in each of 2018 , 2017 and 2016 . Research and development costs incurred prior to the establishment of technological feasibility are expensed as incurred. Routine maintenance of software products, design costs and other development costs incurred prior to the establishment of a product’s technological feasibility are also expensed as incurred. Costs are capitalized commencing when the technological feasibility of the software has been established. Capitalized software development costs represent the capitalization of certain costs incurred to develop new software or to enhance existing software which is marketed externally or utilized by the Company to process client transactions. Capitalized software development costs are amortized over their estimated useful lives, generally five years. Gross software development costs capitalized for new products and enhancements to existing products totaled $193 million , $159 million and $143 million in 2018 , 2017 and 2016 , respectively. Amortization of previously capitalized software development costs that have been placed into service was $137 million , $123 million and $106 million in 2018 , 2017 and 2016 , respectively. Purchased software represents software licenses purchased from third parties and is amortized over their estimated useful lives, generally three to five years. Amortization of purchased software totaled $47 million , $44 million and $40 million in 2018 , 2017 and 2016 , respectively. The Company estimates that annual amortization expense with respect to acquired intangible assets recorded at December 31, 2018 will be approximately $180 million in 2019 , $160 million in 2020 , $150 million in each of 2021 and 2022 , and $140 million in 2023 . Amortization expense with respect to capitalized and purchased software recorded at December 31, 2018 is estimated to approximate $210 million in 2019 . Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis, or more frequently if circumstances indicate possible impairment. Goodwill is tested for impairment at a reporting unit level, determined to be at an operating segment level or one level below. When reviewing goodwill for impairment, the Company considers the amount of excess fair value over the carrying value of each reporting unit, the period of time since a reporting unit’s last quantitative test, the extent a reorganization or disposition changes the composition of one or more of the reporting units, and other factors to determine whether or not to first perform a qualitative test. When performing a qualitative test, the Company assesses numerous factors to determine whether it is more likely than not that the fair value of its reporting units are less than their respective carrying values. Examples of qualitative factors that the Company assesses include its share price, its financial performance, market and competitive factors in its industry, and other events specific to its reporting units. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company performs a quantitative impairment test by comparing reporting unit carrying values to estimated fair values. No impairment was identified in the Company’s annual impairment assessment in the fourth quarter of 2018 as the estimated fair values of the respective reporting units exceeded the carrying values. In addition, there is no accumulated impairment loss through December 31, 2018 . The changes in goodwill during 2018 and 2017 were as follows: (In millions) Payments Financial Total Goodwill - December 31, 2016 $ 3,610 $ 1,763 $ 5,373 Acquired goodwill 146 71 217 Disposed goodwill — (3 ) (3 ) Foreign currency adjustments 1 2 3 Goodwill - December 31, 2017 3,757 1,833 5,590 Acquired goodwill 240 7 247 Disposed goodwill — (131 ) (131 ) Foreign currency adjustments (1 ) (3 ) (4 ) Goodwill - December 31, 2018 $ 3,996 $ 1,706 $ 5,702 Asset Impairment The Company reviews property and equipment, intangible assets and its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company reviews capitalized software development costs for impairment at each balance sheet date. Recoverability of property and equipment, capitalized software development costs, and other intangible assets is assessed by comparing the carrying amount of the asset to either the undiscounted future cash flows expected to be generated by the asset or the net realizable value of the asset, depending on the type of asset. The Company’s investments in unconsolidated affiliates are assessed by comparing the carrying amount of the investments to their estimated fair values and are impaired if any decline in fair value is determined to be other than temporary. Measurement of any impairment loss is based on estimated fair value. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following at December 31: (In millions) 2018 2017 Trade accounts payable $ 127 $ 80 Client deposits 564 481 Settlement obligations 480 379 Accrued compensation and benefits 199 198 Other accrued expenses 256 221 Total $ 1,626 $ 1,359 Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss and tax credit carry-forwards. Deferred t |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition During the Year Ended December 31, 2018 The Company adopted ASU 2014-09, Revenue from Contracts with Customers , and its related amendments (collectively known as “ASC 606”) effective January 1, 2018 using the modified retrospective transition approach applied to all contracts. Therefore, the reported results for the year ended December 31, 2018 reflect the application of ASC 606 while the reported results for the years ended December 31, 2017 and December 31, 2016 were not adjusted and continue to be reported under the accounting guidance, ASC 605, Revenue Recognition (“ASC 605”), in effect for the prior periods. The cumulative impact of adopting ASC 606 was an increase in the opening balance of retained earnings of $208 million , primarily related to the deferral of incremental sales commissions incurred in obtaining contracts in prior periods. Significant Accounting Policy ASC 606 outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. The core principle, involving a five-step process, 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. The Company generates revenue from the delivery of processing, service and product solutions. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling activities associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment activity and recognized as revenue at the point in time at which control of the goods transfers to the customer. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less. Nature of Goods and Services The Company’s operations are comprised of the Payments and Industry Products (“Payments”) segment and the Financial Institution Services (“Financial”) segment. Additional information regarding the Company’s business segments is included in Note 10 . The following is a description of principal activities from which the Company generates its revenue. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include multiple types of goods and services as described below. Processing and Services Processing and services revenue is generated from account- and transaction-based fees for data processing, transaction processing, electronic billing and payment services, electronic funds transfer and debit processing services; consulting and professional services; and software maintenance for ongoing client support. The Company recognizes processing and services revenues in the period in which the specific service is performed unless they are not deemed distinct from other goods or services in which revenue would then be recognized as control is transferred of the combined goods and services. The Company’s arrangements for processing and services typically consist of an obligation to provide specific services to its customers on a when and if needed basis (a stand-ready obligation) and revenue is recognized from the satisfaction of the performance obligations in the amount billable to the customer. These services are typically provided under a fixed or declining (tier-based) price per unit based on volume of service; however, pricing for services may also be based on minimum monthly usage fees. Fees for the Company’s processing and services arrangements are typically billed and paid on a monthly basis. Product Product revenue is generated from integrated print and card production sales, as well as software license sales. For software license agreements that are distinct, the Company recognizes software license revenue upon delivery, assuming a contract is deemed to exist. Revenue for arrangements with customers that include significant customization, modification or production of software such that the software is not distinct is typically recognized over time based upon efforts expended, such as labor hours, to measure progress towards completion. For arrangements involving hosted licensed software for the customer, a software element is considered present to the extent the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty and it is feasible for the customer to either operate the software on their own hardware or contract with another vendor to host the software. In certain instances, the Company may offer extended payment terms beyond one year on its software license sales. To the extent a significant financing component exists, it is calculated as the difference between the promised consideration and the present value of the software license fees utilizing a discount rate reflective of a separate financing transaction, and is recognized as interest income over the extended payment period. The cash selling price of the software license fee is recognized as revenue at the point in time when the software is transferred to the customer. Significant Judgments in Application of the Guidance The Company uses the following methods, inputs, and assumptions in determining amounts of revenue to recognize: Identification of Performance Obligations To identify its performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. For multi-element arrangements, the Company accounts for individual goods or services as a separate performance obligation if they are distinct, the good or service is separately identifiable from other items in the arrangement, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determining whether goods or services are distinct performance obligations that should be accounted for separately may require significant judgment. Technology or service components from third parties are frequently embedded in or combined with the Company’s applications or service offerings. Whether the Company recognizes revenue based on the gross amount billed to a customer or the net amount retained involves judgment that depends on the relevant facts and circumstances including the level of contractual responsibilities and obligations for delivering solutions to end customers. Determination of Transaction Price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. The Company includes any fixed charges within its contracts as part of the total transaction price. To the extent that variable consideration is not constrained, the Company includes an estimate of the variable amount, as appropriate, within the total transaction price and updates its assumptions over the duration of the contract. Assessment of Estimates of Variable Consideration Many of the Company’s contracts with customers contain some component of variable consideration; however, the constraint will generally not result in a reduction in the estimated transaction price for most forms of variable consideration. The Company may constrain the estimated transaction price in the event of a high degree of uncertainty as to the final consideration amount owed because of an extended length of time over which the fees may be adjusted. Allocation of Transaction Price The transaction price (including any discounts) is allocated between separate goods and services in a multi-element arrangement based on their relative standalone selling prices. The standalone selling prices are determined based on the prices at which the Company separately sells each good or service. For items that are not sold separately, the Company estimates the standalone selling prices using available information such as market conditions and internally approved pricing guidelines. In instances where there are observable selling prices for professional services and support and maintenance, the Company may apply the residual approach to estimate the standalone selling price of software licenses. Significant judgment may be required to determine standalone selling prices for each performance obligation and whether it depicts the amount the Company expects to receive in exchange for the related good or service. Contract Modifications Contract modifications occur when the Company and its customers agree to modify existing customer contracts to change the scope or price (or both) of the contract or when a customer terminates some, or all, of the existing services provided by the Company. When a contract modification occurs, it requires the Company to exercise judgment to determine if the modification should be accounted for as: (i) a separate contract, (ii) the termination of the original contract and creation of a new contract, or (iii) a cumulative catch up adjustment to the original contract. Further, contract modifications require the identification and evaluation of the performance obligations of the modified contract, including the allocation of revenue to the remaining performance obligations and the period of recognition for each identified performance obligation. Revenue Recognition During the Years Ended December 31, 2017 and December 31, 2016 The Company generates revenue from the delivery of processing, service and product solutions. Revenue is recognized when written contracts are signed, delivery has occurred, the fees are fixed or determinable, and collectibility is reasonably assured. Processing and services revenue is recognized as services are provided and is primarily derived from contracts that generate account- and transaction-based fees for data processing, transaction processing, electronic billing and payment services, electronic funds transfer and debit processing services. In addition, processing and services revenue is derived from the fulfillment of professional services, including consulting activities. Certain of the Company’s revenue is generated from multiple element arrangements involving various combinations of product and service deliverables. The deliverables within these arrangements are evaluated at contract inception to determine whether they represent separate units of accounting, and if so, contract consideration is allocated to each deliverable based on relative selling price. The relative selling price is determined using vendor specific objective evidence of fair value, third-party evidence or best estimate of selling price. Revenue is then recognized in accordance with the appropriate revenue recognition guidance applicable to the respective elements. Also included in processing and services revenue is software maintenance fee revenue for ongoing client support, which is recognized ratably over the term of the applicable support period, generally 12 months. Contract liabilities consist primarily of advance cash receipts for services (deferred revenue) and are recognized as revenue when the services are provided. Product revenue is primarily derived from integrated print and card production sales, as well as software license sales which represented less than 4% of consolidated revenue. For software license agreements that do not require significant customization or modification, the Company recognizes software license revenue upon delivery, assuming persuasive evidence of an arrangement exists, the license fee is fixed or determinable, and collection is reasonably assured. Arrangements with customers that include significant customization, modification or production of software are accounted for under contract accounting, with revenue recognized using the percentage-of-completion method based upon efforts expended, such as labor hours, to measure progress towards completion. Changes in estimates for revenues, costs and profits are recognized in the period in which they are determinable and were not material for any period presented. The Company includes reimbursements from clients, such as postage and telecommunication costs, in processing and services revenue and product revenue, while the related costs are included in cost of processing and services and cost of product. Disaggregation of Revenue The table below present the Company’s revenue disaggregated by major business, including a reconciliation with its reportable segments. Most of the Company’s revenue is earned domestically within these major businesses with revenue from clients outside the United States comprising approximately 6% of total revenue. (In millions) Reportable Segments Year Ended December 31, 2018 Payments Financial Corporate and Other Total Major Business Digital Money Movement $ 1,460 $ — $ — $ 1,460 Card and Related Services 1,682 — — 1,682 Other 325 — — 325 Total Payments 3,467 — — 3,467 Account and Item Processing — 2,094 — 2,094 Lending Solutions — 54 — 54 Other — 247 — 247 Total Financial — 2,395 — 2,395 Corporate and Other — — (39 ) (39 ) Total Revenue $ 3,467 $ 2,395 $ (39 ) $ 5,823 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. (In millions) December 31, 2018 January 1, 2018 Contract assets $ 171 $ 158 Contract liabilities 469 520 Contract assets, reported within other long-term assets in the consolidated balance sheet, primarily result from revenue being recognized where payment is contingent upon the transfer of services to a customer over the contractual period. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue) for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. During the year ended December 31, 2018 , contract liabilities decreased primarily due to the recognition of deferred termination fee revenue. The Company recognized $450 million of revenue during the year ended December 31, 2018 that was included in the contract liability balance at the beginning of the period, which exceeded advance cash receipts for services yet to be provided. Transaction Price Allocated to Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. (In millions) December 31, 2018 2019 2020 2021 2022 Thereafter Processing and services $ 1,061 $ 836 $ 678 $ 480 $ 566 Product 38 30 20 13 9 The Company applies the optional exemption in paragraph 606-10-50-14(b) and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition in accordance with paragraph 606-10-55-18. These contracts generally have terms of three to five years, and contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional exemptions in paragraph 606-10-50-14A and does not disclose information for variable consideration, including additional seat licenses, that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year. Contract Costs The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with customers that are expected to be recovered. These costs consist primarily of sales commissions incurred only if a contract is obtained, and customer conversion or implementation related costs. Capitalized sales commissions and conversion or implementation costs totaled $322 million and $97 million , respectively, at December 31, 2018 . Capitalized contract costs are amortized based on the transfer of goods or services to which the asset relates. The amortization period also considers expected customer lives and whether the asset relates to goods or services transferred under a specific anticipated contract. These costs are primarily included in selling, general and administrative expenses and totaled $106 million during the year ended December 31, 2018 . Impairment losses recognized during the year ended December 31, 2018 related to capitalized contract costs were not significant. Change in Accounting Policy Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in its consolidated financial statements. The details of the significant changes and quantitative impact of the changes are disclosed below. Sales Commissions The Company previously recognized sales commission fees related to contracts with customers as selling expenses when incurred. Under ASC 606, the Company capitalizes incremental sales commission fees as costs of obtaining a contract and, if expected to be recovered, amortizes such costs using a portfolio approach consistent with the pattern of transfer of the good or service to which the asset relates. Termination Fees The Company previously recognized customer contract termination fees at a point in time upon deconversion or receipt of a non-refundable cash payment. Under ASC 606, a contract termination is considered a contract modification and therefore the Company recognizes contract termination fees under the new standard over the remaining modified contract term. Contract Assets and Liabilities The Company previously presented customer incentives and deferred revenue on a gross basis within its consolidated balance sheet. Under ASC 606, the Company reports net contract asset or liability positions on a contract-by-contract basis at the end of each reporting period. Impacts on Financial Statements The following tables summarize the impacts of ASC 606 adoption on the Company’s consolidated financial statements as of and for the year ended December 31, 2018 . Consolidated Statement of Income (In millions) Impact of changes in accounting policies Year Ended December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 Revenue: Processing and services $ 4,975 $ (26 ) $ 4,949 Product 848 (24 ) 824 Total revenue 5,823 (50 ) 5,773 Expenses: Cost of processing and services 2,324 3 2,327 Cost of product 745 (2 ) 743 Selling, general and administrative 1,228 16 1,244 Gain on sale of business (227 ) (3 ) (230 ) Total expenses 4,070 14 4,084 Operating income 1,753 (64 ) 1,689 Interest expense (193 ) — (193 ) Loss on early debt extinguishment (14 ) — (14 ) Non-operating income 9 (1 ) 8 Income before income taxes and income from investments in unconsolidated affiliates 1,555 (65 ) 1,490 Income tax provision (378 ) 14 (364 ) Income from investments in unconsolidated affiliates 10 — 10 Net income $ 1,187 $ (51 ) $ 1,136 Net income per share – basic $ 2.93 $ (0.13 ) $ 2.80 Net income per share – diluted $ 2.87 $ (0.12 ) $ 2.75 Shares used in computing net income per share: Basic 405.5 — 405.5 Diluted 413.7 — 413.7 Consolidated Statement of Comprehensive Income (In millions) Impact of changes in accounting policies Year Ended December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 Net income $ 1,187 $ (51 ) $ 1,136 Other comprehensive (loss) income: Fair market value adjustment on cash flow hedges, net of income tax benefit of $2 million (5 ) — (5 ) Reclassification adjustment for net realized gains on cash flow hedges included in cost of processing and services, net of income tax benefit of $0 (1 ) — (1 ) Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of income tax provision of $2 million 4 — 4 Foreign currency translation (11 ) — (11 ) Total other comprehensive loss (13 ) — (13 ) Comprehensive income $ 1,174 $ (51 ) $ 1,123 Consolidated Balance Sheet (In millions) Impact of changes in accounting policies December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 Assets Cash and cash equivalents $ 415 $ — $ 415 Trade accounts receivable, less allowance for doubtful accounts 1,049 (11 ) 1,038 Prepaid expenses and other current assets 760 19 779 Total current assets 2,224 8 2,232 Property and equipment, net 398 — 398 Intangible assets, net 2,143 — 2,143 Goodwill 5,702 — 5,702 Contract costs, net 419 (339 ) 80 Other long-term assets 376 102 478 Total assets $ 11,262 $ (229 ) $ 11,033 Liabilities and Shareholders’ Equity Accounts payable and accrued expenses $ 1,626 $ (11 ) $ 1,615 Current maturities of long-term debt 4 — 4 Contract liabilities 380 101 481 Total current liabilities 2,010 90 2,100 Long-term debt 5,955 — 5,955 Deferred income taxes 745 (82 ) 663 Long-term contract liabilities 89 21 110 Other long-term liabilities 170 — 170 Total liabilities 8,969 29 8,998 Total shareholders’ equity 2,293 (258 ) 2,035 Total liabilities and shareholders’ equity $ 11,262 $ (229 ) $ 11,033 Consolidated Statement of Cash Flows (In millions) Impact of changes in accounting policies Year Ended December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 Cash flows from operating activities: Net income $ 1,187 $ (51 ) $ 1,136 Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: Depreciation and other amortization 393 (74 ) 319 Amortization of acquisition-related intangible assets 163 — 163 Share-based compensation 73 — 73 Deferred income taxes 133 (14 ) 119 Gain on sale of businesses (227 ) (3 ) (230 ) Loss on early debt extinguishment 14 — 14 Income from investments in unconsolidated affiliates (10 ) — (10 ) Dividends from unconsolidated affiliates 2 — 2 Non-cash impairment charges 3 — 3 Other operating activities (10 ) — (10 ) Changes in assets and liabilities, net of effects from acquisitions and dispositions: Trade accounts receivable (108 ) 31 (77 ) Prepaid expenses and other assets (6 ) (2 ) (8 ) Contract costs (137 ) 98 (39 ) Accounts payable and other liabilities 116 (4 ) 112 Contract liabilities (34 ) 19 (15 ) Net cash provided by operating activities from continuing operations 1,552 — 1,552 Cash flows from investing activities: Capital expenditures, including capitalization of software costs (360 ) — (360 ) Proceeds from sale of businesses 419 — 419 Payments for acquisitions of businesses, net of cash acquired (712 ) — (712 ) Purchases of investments (3 ) — (3 ) Other investing activities (7 ) — (7 ) Net cash provided by investing activities from continuing operations (663 ) — (663 ) Cash flows from financing activities: Debt proceeds 5,039 — 5,039 Debt repayments, including redemption and other costs (4,005 ) — (4,005 ) Proceeds from issuance of treasury stock 75 — 75 Purchases of treasury stock, including employee shares withheld for tax obligations (1,946 ) — (1,946 ) Other financing activities (5 ) — (5 ) Net cash used in financing activities from continuing operations (842 ) — (842 ) Net change in cash and cash equivalents from continuing operations 47 — 47 Net change in cash and cash equivalents from discontinued operations 43 — 43 Cash and cash equivalents, beginning balance 325 — 325 Cash and cash equivalents, ending balance $ 415 $ — $ 415 Discontinued operations cash flow information: Net cash used in operating activities $ (7 ) $ — $ (7 ) Net cash provided by investing activities 50 — 50 Net change in cash and cash equivalents from discontinued operations $ 43 $ — $ 43 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions On October 31, 2018, the Company acquired the debit card processing, ATM Managed Services, and MoneyPass ® surcharge-free network of Elan Financial Services, a unit of U.S. Bancorp (“Elan”), for approximately $660 million . Such purchase price includes an initial cash payment of $691 million , less post-closing working capital adjustments of $57 million , plus contingent consideration related to earn-out provisions estimated at a fair value of $12 million and future payments under a transition services agreement estimated to be in excess of fair value of $14 million . This acquisition, included within the Payments segment, deepens the Company’s presence in debit card processing, broadens its client reach and scale, and provides new solutions to enhance the value proposition for its existing debit solution clients. The preliminary allocation of purchase price recorded for Elan was as follows: (In millions) Trade accounts receivable $ 20 Prepaid expenses and other current assets 94 Property and equipment 9 Intangible assets 353 Goodwill 240 Accounts payable and other current liabilities (56 ) Total purchase price $ 660 The amounts allocated to goodwill and intangible assets were based on preliminary valuations and are subject to final adjustment. Goodwill, expected to be deductible for tax purposes, is primarily attributed to synergies, including the migration of Elan’s clients to the Company’s debit platform, and the anticipated value created by selling the Company’s products and services outside of card payments to Elan’s existing client base. The values allocated to intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer related intangible assets $ 350 15 years Trade name 3 8 years $ 353 15 years In conjunction with the acquisition, the Company entered into a transition services agreement for the provision of certain processing, network, administrative and managed services for a period of two years. Amounts, reflective of their associated fair value, transacted through this agreement approximated $12 million for the year ended December 31, 2018 and were recognized as cost of processing and services in the consolidated statements of income. The results of operations for Elan, including $29 million of revenue and $6 million of operating income including $4 million of acquired intangible asset amortization, have been included within the accompanying consolidated statement of income from the date of acquisition. Pro forma information for Elan is not provided as it did not have a material effect on the Company’s consolidated results of operations. On January 17, 2017, the Company completed its acquisition of Online Banking Solutions, Inc. (“OBS”), a provider of cash management and digital business banking solutions that complement and enrich the Company’s existing solutions. On July 31, 2017, the Company acquired the assets of PCLender, LLC (“PCLender”), a leader in internet-based mortgage software and mortgage lending technology solutions. The OBS and PCLender acquisitions are included in the Financial segment as their products are integrated across a number of the Company’s account processing solutions and will enable the Company’s bank and credit union clients to better serve their commercial and mortgage customers. On August 18, 2017, the Company acquired Dovetail Group Limited (“Dovetail”), a leading provider of bank payments and liquidity management solutions. On September 1, 2017, the Company completed its acquisition of Monitise plc (“Monitise”), a provider of digital solutions that enables innovative digital banking experiences for leading financial institutions worldwide. The Dovetail and Monitise acquisitions are included in the Payments segment and will further enable the Company to help financial institutions around the world transform their payments infrastructure and to expand its digital leadership, respectively. The Company acquired these four businesses for an aggregate purchase price of $384 million , net of $33 million of acquired cash, along with earn-out provisions estimated at a fair value of $15 million (see Note 1). The purchase price allocations for these acquisitions resulted in acquired software and technology and customer related intangible assets totaling $163 million and goodwill of $217 million . The other net assets of $19 million include $50 million of assets held for sale and approximately $20 million of deferred tax liabilities. The purchase price allocations were finalized for the OBS and PCLender acquisitions in 2017 and for the Dovetail and Monitise acquisitions in the first quarter of 2018, and did not materially change from the preliminary allocations. The goodwill from these acquisitions is primarily attributed to synergies and the anticipated value created by selling the products and services that these businesses provide into the Company’s existing client base. Approximately $70 million of the goodwill is expected to be deductible for tax purposes. The values allocated to intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer related intangible assets $ 92 15 years Acquired software and technology 71 7 years $ 163 12 years In the first quarter of 2016, the Company acquired the Convenience Pay Services business of Hewlett Packard Enterprise Company and completed its purchase of the Community Financial Services business of ACI Worldwide, Inc. These acquisitions expand the Company’s biller solution offerings and enhance its suite of digital banking and payments solutions, and are included in the Payments segment. The Company acquired these two businesses for an aggregate purchase price of $265 million . The final purchase price allocations for these acquisitions resulted in technology and customer intangible assets totaling approximately $80 million , goodwill of $173 million , and other identifiable net assets of approximately $12 million consisting primarily of accounts receivable. The goodwill 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. Disposition On May 11, 2017, the Company sold its Australian item processing business, which was reported within the Financial segment, for approximately $17 million . The Company recognized a gain on the sale of $10 million , with the related tax expense of $5 million recorded through the income tax provision, in the consolidated statements of income. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Income from discontinued operations in 2017 included a litigation settlement related to a prior disposition of $19 million , net of income tax of $7 million , and earnings related to an acquired business held for sale as described below. On January 10, 2018 , the Company completed the sale of the retail voucher business, MyVoucherCodes, acquired as part of its acquisition of Monitise in September 2017 for proceeds of £37 million ( $50 million ). The corresponding assets of $50 million , consisting primarily of goodwill, were presented as held for sale in the Company’s consolidated balance sheet at December 31, 2017, and the corresponding proceeds received in 2018 are presented within discontinued operations since the business was never considered part of the Company’s ongoing operations. There was no impact to operating income or gain/loss recognized on the sale in 2018. Cash flows from discontinued operations in 2018 also included tax payments of $7 million related to income recognized in 2017 from the litigation settlement described above. |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliate | Investments in Unconsolidated Affiliates Lending Joint Ventures On March 29, 2018, the Company completed the sale of a 55% controlling interest of each of Fiserv Automotive Solutions, LLC and Fiserv LS LLC, which were subsidiaries of the Company that owned its Lending Solutions business (collectively, the “Lending Joint Ventures”), to funds affiliated with Warburg Pincus LLC. The Lending Joint Ventures, which were reported within the Financial segment, included all of the Company’s automotive loan origination and servicing products, as well as its LoanServ TM mortgage and consumer loan servicing platform. The Company received gross sale proceeds of $419 million from the transactions. The Company recognized a pre-tax gain on the sale of $227 million , with the related tax expense of $77 million recorded through the income tax provision, in the consolidated statements of income. The pre-tax gain includes $124 million related to the remeasurement of the Company’s 45% retained interests based upon the estimated enterprise value of the Lending Joint Ventures. Contingent consideration of up to $20 million under defined special distribution provisions within the transaction agreements is being accounted for by the Company as a gain contingency and will therefore be recognized in future periods to the extent the contingency is resolved and thereby realized. The Company’s remaining 45% ownership interests in the Lending Joint Ventures are accounted for as equity method investments, with the Company’s share of net income reported as income from investments in unconsolidated affiliates and the related tax expense reported within the income tax provision in the consolidated statements of income. The Company’s investment in the Lending Joint Ventures was $65 million at December 31, 2018 and is reported within other long-term assets in the consolidated balance sheet. The revenues and expenses of the Lending Joint Ventures after the sale transactions are not included in the Company’s consolidated statements of income. The Company’s consolidated financial statements for all periods prior to the sale transactions include the revenues, expenses and cash flows of the Lending Joint Ventures. Prior to the sale transactions described above, the Lending Joint Ventures entered into variable-rate term loan facilities for an aggregate amount of $350 million in senior unsecured debt and variable-rate revolving credit facilities for an aggregate amount of $35 million with a syndicate of banks, which transferred to the Lending Joint Ventures as part of the sale. The Company has guaranteed this debt of the Lending Joint Ventures and does not anticipate that the Lending Joint Ventures will fail to fulfill their debt obligations. These debt facilities mature in March 2023, and there are no outstanding borrowings on the revolving credit facilities as of December 31, 2018 . The Company recorded an initial $34 million liability as a reduction to the gain on sale transactions for the estimated fair value of its obligations to stand ready to perform over the term of the guarantees, which is reported primarily within other long-term liabilities in the consolidated balance sheet. Such guarantees will be amortized in future periods over the contractual term. In 2018, the Company recognized $5 million within non-operating income in its consolidated statements of income related to its release from risk under the guarantees. The Company has not made any payments under the guarantees, nor has it been called upon to do so. In conjunction with the sale transactions described above, the Company also entered into certain transition services agreements to provide, at fair value, various administration, business process outsourcing, technical and data center related services for defined periods to the Lending Joint Ventures. Amounts transacted through these agreements approximated $30 million in 2018, of which $28 million was recognized as processing and services revenue in the consolidated statements of income. StoneRiver Group, L.P. The Company owns a 49% interest in StoneRiver Group, L.P. (“StoneRiver”), which is accounted for as an equity method investment. The Company reports its share of StoneRiver’s net income as income from investment in unconsolidated affiliate, with the related tax expense reported within the income tax provision, in the consolidated statements of income. The Company’s investment in StoneRiver was zero at December 31, 2018 and 2017. In 2018 , 2017 and 2016 , the Company received cash dividends from StoneRiver of $2 million , $45 million and $151 million , respectively, which were funded from capital transactions. The dividends, in their entirety, represented returns on the Company’s investment and are reported in cash flows from operating activities. During the first quarter of 2017, StoneRiver recognized a gain on the sale of a business. The Company’s pre-tax share of the gain was $26 million , with related tax expense of $9 million . During 2017, the Company received cash dividends of $45 million from StoneRiver, which were funded from sale transactions and recorded as reductions in the Company’s investment in StoneRiver. These dividends exceeded the Company’s investment carrying amount, resulting in the reduction of its investment balance to zero , with the excess cash dividend of $6 million recorded as income, and related tax expense of $2 million , in 2017. 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 pre-tax share of the gain, net of the impairment loss, was $146 million , with related tax expense of $54 million . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company’s long-term debt, net of discounts and debt issuance costs, consisted of the following at December 31: (In millions) 2018 2017 Revolving credit facility $ 1,129 $ 1,068 2.7% senior notes due 2020 848 846 4.75% senior notes due 2021 399 398 3.5% senior notes due 2022 697 696 3.8% senior notes due 2023 992 — 3.85% senior notes due 2025 895 894 4.2% senior notes due 2028 990 — 4.625% senior notes due 2020 — 449 Term loan — 540 Other borrowings 9 9 Total debt 5,959 4,900 Less: current maturities (4 ) (3 ) Long-term debt $ 5,955 $ 4,897 The estimated fair value of total debt was $6.0 billion and $5.0 billion at December 31, 2018 and 2017 , respectively. The Company was in compliance with all financial debt covenants during 2018 . Annual maturities of the Company’s total debt were as follows at December 31, 2018 : (In millions) Year ending December 31, 2019 $ 4 2020 851 2021 401 2022 697 2023 2,121 Thereafter 1,885 Total $ 5,959 Revolving Credit Facility In September 2018, the Company entered into an amended and restated revolving credit agreement that restated its existing $2.0 billion revolving credit agreement with a syndicate of banks and extended its maturity from April 2020 to September 2023. Borrowings under the amended and restated revolving credit facility continue to bear interest at a variable rate based on LIBOR or on a base rate, plus in each case a specified margin based on the Company’s long-term debt rating in effect from time to time. The variable interest rate on the revolving credit facility borrowings was 3.51% at December 31, 2018 . There are no significant commitment fees and no compensating balance requirements. The amended and restated revolving credit facility contains various restrictions and covenants that require the Company, among other things, to: (1) limit its consolidated indebtedness as of the end of each fiscal quarter to no more than three and one-half times the Company’s consolidated net earnings before interest, taxes, depreciation, amortization, non-cash charges and expenses and certain other adjustments (“EBITDA”) during the period of four fiscal quarters then ended, subject to certain exceptions, and (2) maintain EBITDA of at least three times its consolidated interest expense as of the end of each fiscal quarter for the period of four fiscal quarters then ended. On February 6, 2019, the Company entered into an amendment to the amended and restated revolving credit facility to (1) amend the maximum leverage ratio covenant to permit it to elect to increase the permitted maximum leverage ratio from three and one-half times the Company’s EBITDA to either four times or four and one-half times the Company’s EBITDA for a specified period following certain acquisitions and (2) permit it to make drawings under the revolving credit facility on the closing date of its acquisition of First Data Corporation (“First Data”) subject to only limited conditions (see Note 12). In addition, on February 15, 2019, the Company entered into a second amendment to its existing revolving credit agreement in order to increase the aggregate commitments available thereunder by $1.5 billion and to make certain additional amendments to facilitate the operation of the combined business following the acquisition of First Data. The increased commitments and additional amendments will become effective upon the satisfaction or waiver of conditions that are substantially similar to the conditions to funding under the term loan facility described within Note 12. Senior Notes In September 2018, the Company completed an offering of $2.0 billion of senior notes comprised of $1.0 billion aggregate principal amount of 3.8% senior notes due in October 2023 and $1.0 billion aggregate principal amount of 4.2% senior notes due in October 2028. The notes pay interest semi-annually on April 1 and October 1, commencing on April 1, 2019. The Company’s 2.7% senior notes due in June 2020 and 3.85% senior notes due in June 2025 pay interest at the stated rates semi-annually on June 1 and December 1 of each year. The Company’s 4.75% senior notes due in June 2021 pay interest at the stated rate on June 15 and December 15 of each year. The Company’s 3.5% senior notes due in October 2022 pay interest at the stated rate on April 1 and October 1 of each year. The interest rate applicable to these notes is subject to an increase of up to two percent in the event that the credit rating assigned to such notes is downgraded below investment grade. The indentures governing the senior notes contain covenants that, among other matters, limit (1) the Company’s ability to consolidate or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, another person, (2) the Company’s and certain of its subsidiaries’ ability to create or assume liens, and (3) the Company’s and certain of its subsidiaries’ ability to engage in sale and leaseback transactions. The Company used the net proceeds from the offering described above to repay the outstanding principal balance of $540 million under its term loan and the outstanding borrowings under its amended and restated revolving credit facility totaling $1.1 billion . In addition, the Company commenced a cash tender offer in September 2018 for any and all of its outstanding $450 million aggregate principal amount of 4.625% senior notes due October 2020. Upon expiration of the tender offer on September 26, 2018, $246 million was tendered. In October 2018, the Company retired the remaining outstanding $204 million aggregate principal amount of 4.625% senior notes. The Company recorded a pre-tax loss on early debt extinguishment of $14 million related to these activities. Debt Issuance Costs Debt issuance costs are amortized as a component of interest expense over the term of the underlying debt using the effective interest method. Debt issuance costs related to the Company’s senior notes and term loan totaled $25 million and $14 million at December 31, 2018 and 2017 , respectively, and are reported as a direct reduction of the related debt instrument in the consolidated balance sheets. Debt issuance costs related to the Company’s revolving credit facility are reported in other long-term assets in the consolidated balance sheets and totaled $5 million and $3 million at December 31, 2018 and 2017 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Substantially all of the Company’s pre-tax earnings are derived from domestic operations in all periods presented. A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for continuing operations is as follows: 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal effect 3.2 % 2.3 % 2.9 % Unconsolidated affiliate tax 0.1 % 0.9 % 4.2 % Tax expense (benefit) due to federal tax reform 1.2 % (20.3 )% — % Excess tax benefit from share-based awards (2.2 )% (3.6 )% — % Sale of business 1.3 % — % — % Domestic production activities deduction — % (2.0 )% (3.0 )% Other, net (0.3 )% (0.7 )% (0.5 )% Effective income tax rate 24.3 % 11.6 % 38.6 % The income tax provision (benefit) for continuing operations was as follows: (In millions) 2018 2017 2016 Current: Federal $ 189 $ 342 $ 402 State 39 44 53 Foreign 17 19 16 245 405 471 Deferred: Federal 110 (250 ) 21 State 24 3 5 Foreign (1 ) — (5 ) 133 (247 ) 21 Income tax provision $ 378 $ 158 $ 492 Significant components of deferred tax assets and liabilities consisted of the following at December 31: (In millions) 2018 2017 Accrued expenses $ 74 $ 39 Interest rate hedge contracts 5 9 Share-based compensation 43 40 Net operating loss and credit carry-forwards 131 131 Deferred revenue 11 17 Other 14 7 Subtotal 278 243 Valuation allowance (101 ) (103 ) Total deferred tax assets 177 140 Capitalized software development costs (129 ) (117 ) Intangible assets (437 ) (455 ) Property and equipment (66 ) (49 ) Capitalized commissions (80 ) — Investment in joint ventures (78 ) — Other (112 ) (48 ) Total deferred tax liabilities (902 ) (669 ) Total $ (725 ) $ (529 ) The valuation allowance decreased by $2 million , from $103 million at December 31, 2017 to $101 million at December 31, 2018 . Of the decrease in 2018 , $1 million was recorded to the income tax provision. Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31: (In millions) 2018 2017 Noncurrent assets $ 20 $ 23 Noncurrent liabilities (745 ) (552 ) Total $ (725 ) $ (529 ) Noncurrent deferred tax assets are included in other long-term assets at December 31, 2018 and 2017 . On December 22, 2017 , the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act made broad changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent beginning in 2018; (2) requiring companies to pay a one-time transition tax on certain un-repatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring U.S. federal taxable income to include certain earnings of controlled foreign corporations; and (5) creating a new limitation on deductible interest expense. The Company recorded a provisional income tax benefit totaling $275 million in 2017 related to the reduction of the U.S. federal corporate tax rate and other provisions of the Tax Act. The Internal Revenue Service issued new guidance with respect to the treatment of foreign tax credits in 2018 affecting the computation of the Company’s 2017 federal income tax liability. As a result of this new guidance and additional analysis of the impact of the Tax Act, the Company revised its prior estimates and recorded $19 million of tax expense related to the Tax Act during 2018. Accordingly, any and all provisional amounts previously recorded in accordance with the Tax Act have been adjusted to reflect their final amounts. The Company has analyzed its global working capital and cash requirements and the potential tax liabilities attributable to repatriation of earnings, and has determined not to change its prior assertion. Accordingly, the Company has not recorded any deferred taxes attributable to investments in foreign subsidiaries for which it is permanently reinvested. Unrecognized tax benefits were as follows: (In millions) 2018 2017 2016 Unrecognized tax benefits - Beginning of year $ 42 $ 45 $ 54 Increases for tax positions taken during the current year 3 11 9 Increases for tax positions taken in prior years 20 2 1 Decreases for tax positions taken in prior years (8 ) (15 ) (15 ) Decreases for settlements — (1 ) (2 ) Lapse of the statute of limitations (8 ) — (2 ) Unrecognized tax benefits - End of year $ 49 $ 42 $ 45 At December 31, 2018 , unrecognized tax benefits of $35 million , net of federal and state benefits, would affect the effective income tax rate from continuing operations if recognized. In 2019 , reductions to unrecognized tax benefits for decreases in tax positions taken in prior years, settlements and the lapse of statutes of limitations are estimated to total approximately $3 million . The Company classifies interest expense and penalties related to income taxes as components of its income tax provision. The income tax provision from continuing operations included interest expense and penalties on unrecognized tax benefits of $1 million in 2018 , and less than $1 million in each of 2017 and 2016 . Accrued interest expense and penalties related to unrecognized tax benefits totaled $4 million and $3 million at December 31, 2018 and 2017 , respectively. The Company’s federal tax returns for 2016 through 2018 , and tax returns in certain states and foreign jurisdictions for 2005 through 2018 remain subject to examination by taxing authorities. At December 31, 2018 , the Company had federal net operating loss carry-forwards of $27 million , which expire in 2019 through 2036, state net operating loss carry-forwards of $479 million , which expire in 2019 through 2038, and foreign net operating loss carry-forwards of $465 million , $42 million of which expire in 2027 through 2038, and the remainder of which do not expire. |
Employee Stock and Savings Plan
Employee Stock and Savings Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock and Savings Plans | Employee Stock and Savings Plans Stock Plans The Company recognizes the fair value of share-based compensation awards granted to employees in cost of processing and services, cost of product, and selling, general and administrative expense in its consolidated statements of income. The Company’s share-based compensation primarily consists of the following: Stock Options – The Company grants stock options to employees and non-employee directors at exercise prices equal to the fair market value of the Company’s stock on the dates of grant, which are typically in the first quarter of the year. Stock options generally vest over a three -year period beginning on the first anniversary of the grant. All stock options expire ten years from the date of the award. The Company recognizes compensation expense for the fair value of the stock options over the requisite service period of the stock option award. Restricted Stock Units – The Company awards restricted stock units to employees and non-employee directors. The Company recognizes compensation expense for restricted stock units based on the market price of the common stock on the date of award over the period during which the awards vest. Restricted stock units generally vest over a three -year period beginning on the second anniversary of the award. Performance Share Units – The Company awards performance share units to employees. The number of shares issued at the end of the performance period is determined by the level of achievement of pre-determined performance and market goals, including earnings, revenue growth and shareholder return. The Company recognizes compensation expense on performance share units ratably over the requisite performance period of the award to the extent management views the performance goals as probable of attainment. The Company recognizes compensation expense for the fair value of the shareholder return component over the requisite service period of the award. Employee Stock Purchase Plan – The Company maintains an employee stock purchase plan that allows eligible employees to purchase a limited number of shares of common stock each quarter through payroll deductions at 85% of the closing price of the Company’s common stock on the last business day of each calendar quarter. The Company recognizes compensation expense related to the 15% discount on the purchase date. Share-based compensation expense was $73 million in 2018 , $63 million in 2017 and $68 million in 2016 . The income tax benefits related to share-based compensation totaled $13 million , $21 million and $23 million in 2018 , 2017 and 2016 , respectively. At December 31, 2018 , the total remaining unrecognized compensation cost for unvested stock options, restricted stock units and performance share units, net of estimated forfeitures, of $67 million is expected to be recognized over a weighted-average period of 2.3 years. The weighted-average estimated fair value of stock options granted during 2018 , 2017 and 2016 was $22.48 , $18.76 and $15.74 per share, respectively. The fair values of stock options granted were estimated on the date of grant using a binomial option-pricing model with the following assumptions: 2018 2017 2016 Expected life (in years) 6.3 6.3 6.4 Average risk-free interest rate 2.2 % 2.2 % 1.9 % Expected volatility 28.3 % 28.9 % 29.3 % Expected dividend yield 0 % 0 % 0 % The Company determined the expected life of stock options using historical data adjusted for known factors that could alter historical exercise behavior. The risk-free interest rate is based on the U.S. treasury yield curve in effect as of the grant date. Expected volatility is determined using weighted-average implied market volatility combined with historical volatility. The Company believes that a blend of historical volatility and implied volatility better reflects future market conditions and better indicates expected volatility than purely historical volatility. A summary of stock option activity is as follows: Shares (In thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Stock options outstanding - December 31, 2017 13,791 $ 28.17 Granted 1,283 70.11 Forfeited (332 ) 57.65 Exercised (2,690 ) 18.62 Stock options outstanding - December 31, 2018 12,052 $ 33.96 5.2 $ 477 Stock options exercisable - December 31, 2018 9,319 $ 26.20 4.3 $ 441 A summary of restricted stock and performance share unit activity is as follows: Restricted Stock Units Performance Share Units Shares (In thousands) Weighted- Average Grant Date Fair Value Shares Weighted- Units - December 31, 2017 1,942 $ 44.35 402 $ 52.16 Granted 569 71.13 164 75.40 Forfeited (173 ) 54.72 (42 ) 55.42 Vested (517 ) 39.03 — — Units - December 31, 2018 1,821 $ 53.22 524 $ 57.60 The table below presents additional information related to stock option and restricted stock unit activity: (In millions) 2018 2017 2016 Total intrinsic value of stock options exercised $ 147 $ 116 $ 113 Fair value of restricted stock units vested 37 61 58 Income tax benefit from stock options exercised and restricted stock units vested 43 66 62 Cash received from stock options exercised 29 36 39 As of December 31, 2018 , 35.5 million share-based awards were available for grant under the Amended and Restated Fiserv, Inc. 2007 Omnibus Incentive Plan. Under its employee stock purchase plan, the Company issued 0.7 million shares in 2018 , 0.8 million shares in 2017 and 0.9 million shares in 2016 . As of December 31, 2018 , there were 25.3 million shares available for issuance under the employee stock purchase plan. The number of shares remaining available for future issuance under the employee stock purchase plan is subject to an annual increase on the first day of each fiscal year equal to the lesser of (i) 4.0 million shares, (ii) 1% of the shares of the Company’s common stock outstanding on such date or (iii) a lesser amount determined by the Company’s board of directors. Employee Savings Plans The Company and its subsidiaries have defined contribution savings plans covering substantially all employees. Under the plans, eligible participants may elect to contribute a specified percentage of their salaries and the Company makes matching contributions, each subject to certain limitations. Expenses for company contributions under these plans totaled $44 million in each of 2018 and 2017 , and $42 million in 2016 . |
Leases, Commitments and Conting
Leases, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases, Commitments and Contingencies | Leases, Commitments and Contingencies Leases The Company leases certain facilities and equipment under operating leases. Most leases contain renewal options for varying periods. Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2018 : (In millions) Year ending December 31, 2019 $ 94 2020 75 2021 62 2022 51 2023 40 Thereafter 108 Total $ 430 Rent expense for all operating leases was $118 million , $126 million and $117 million during 2018 , 2017 and 2016 , respectively. Commitments and Contingencies Litigation In the normal course of business, the Company or its subsidiaries are named as defendants in lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may ultimately result from such lawsuits are not expected to have a material adverse effect on the Company’s consolidated financial statements. Electronic Payments Transactions In connection with the Company’s processing of electronic payments transactions, funds received from subscribers are invested from the time the Company collects the funds until payments are made to the applicable recipients. These subscriber funds are invested in short-term, highly liquid investments. Subscriber funds, which are not included in the Company’s consolidated balance sheets, can fluctuate significantly based on consumer bill payment and debit card activity and totaled approximately $2.1 billion at December 31, 2018 . Indemnifications and Warranties Subject to limitations and exclusions, the Company may indemnify its clients from certain costs resulting from claims of patent, copyright or trademark infringement associated with its clients’ use of the Company’s products or services. The Company may also warrant to clients that its products and services will operate substantially in accordance with identified specifications. From time to time, in connection with sales of businesses, the Company agrees to indemnify the buyers for liabilities associated with the businesses that are sold. Payments, net of recoveries, under such indemnification or warranty provisions were not material to the Company’s consolidated results of operations or financial position. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s operations are comprised of the Payments segment and the Financial segment. The Payments segment primarily provides electronic bill payment and presentment services, internet and mobile banking software and services, account-to-account transfers, person-to-person payment services, debit and credit card processing and services, payments infrastructure 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 financial institutions 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 intercompany eliminations, amortization of acquisition-related intangible assets, unallocated corporate expenses and other activities that are not considered when management evaluates segment performance, such as gains on sales of businesses and associated transition services. (In millions) Payments Financial Corporate and Other Total 2018 Processing and services revenue $ 2,728 $ 2,204 $ 43 $ 4,975 Product revenue 739 191 (82 ) 848 Total revenue 3,467 2,395 (39 ) 5,823 Operating income 1 1,122 798 (167 ) 1,753 Total assets 7,622 3,240 400 11,262 Capital expenditures 239 115 6 360 Depreciation and amortization expense 225 145 186 556 2017 Processing and services revenue $ 2,476 $ 2,347 $ 10 $ 4,833 Product revenue 758 183 (78 ) 863 Total revenue 3,234 2,530 (68 ) 5,696 Operating income 1,034 849 (351 ) 1,532 Total assets 2 6,596 3,309 384 10,289 Capital expenditures 182 95 10 287 Depreciation and amortization expense 169 92 183 444 2016 Processing and services revenue $ 2,334 $ 2,285 $ 6 $ 4,625 Product revenue 756 192 (68 ) 880 Total revenue 3,090 2,477 (62 ) 5,505 Operating income 943 823 (321 ) 1,445 Total assets 6,143 3,287 313 9,743 Capital expenditures 161 125 4 290 Depreciation and amortization expense 141 96 184 421 1 A gain of $227 million from the sale of a 55% interest of the Company’s Lending Solutions business is included within Corporate and Other. 2 Assets held for sale of $50 million at December 31, 2017 related to discontinued operations have been included within Corporate and Other. Revenue from clients outside the United States comprised approximately 6% of total revenue in 2018 , and 5% in each of 2017 and 2016 . |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) Quarterly financial data for 2018 and 2017 was as follows: (In millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2018 Total revenue $ 1,440 $ 1,420 $ 1,412 $ 1,551 $ 5,823 Cost of processing and services 568 560 568 628 2,324 Cost of product 191 179 181 194 745 Selling, general and administrative expenses 305 320 305 298 1,228 (Gain) loss on sale of business (232 ) 3 2 — (227 ) Total expenses 832 1,062 1,056 1,120 4,070 Operating income 608 358 356 431 1,753 Income from continuing operations (1) 423 251 227 286 1,187 Net income 423 251 227 286 1,187 Comprehensive income 421 241 214 298 1,174 Net income per share - continuing operations: (2) Basic $ 1.02 $ 0.61 $ 0.56 $ 0.72 $ 2.93 Diluted $ 1.00 $ 0.60 $ 0.55 $ 0.71 $ 2.87 2017 Total revenue $ 1,394 $ 1,386 $ 1,400 $ 1,516 $ 5,696 Cost of processing and services 570 573 572 576 2,291 Cost of product 182 175 174 202 733 Selling, general and administrative expenses 277 276 284 313 1,150 Gain on sale of business — (10 ) — — (10 ) Total expenses 1,029 1,014 1,030 1,091 4,164 Operating income 365 372 370 425 1,532 Income from continuing operations (1) 247 221 232 532 1,232 Net income (1) 247 221 232 546 1,246 Comprehensive income 256 229 236 547 1,268 Net income per share - continuing operations: (2) Basic $ 0.58 $ 0.52 $ 0.55 $ 1.28 $ 2.92 Diluted $ 0.56 $ 0.51 $ 0.54 $ 1.25 $ 2.86 _____ (1) During the third quarter of 2018 and the fourth quarter of 2017, the Company recognized discrete income tax expense of $19 million and income tax benefits of $275 million , respectively, associated with the Tax Act enacted in December 2017. Refer to Note 7 for more information regarding the Company’s income taxes. (2) Net income per share - continuing operations in each period is calculated using actual, unrounded amounts. All per share amounts are presented on a split-adjusted basis to retroactively reflect the two -for-one stock split that was completed in the first quarter of 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 16, 2019 , the Company announced that it had entered into a definitive merger agreement to acquire First Data in an all-stock transaction for an equity value of approximately $22 billion as of the announcement. The transaction is expected to close during the second half of 2019, subject to customary closing conditions, regulatory approvals and shareholder approval for both companies. In connection with the definitive merger agreement, the Company entered into a bridge facility commitment letter pursuant to which a group of financial institutions committed to provide a 364 -day senior unsecured bridge term loan facility in an aggregate principal amount of $17 billion for the purpose of refinancing certain indebtedness of First Data and its subsidiaries on the closing date of the merger, making cash payments in lieu of fractional shares as part of the merger consideration, and paying fees and expenses related to the merger, the refinancing and the related transactions. On February 15, 2019, the Company entered into a new term loan credit agreement with a syndicate of financial institutions pursuant to which such financial institutions have committed to provide the Company with a senior unsecured term loan facility in an aggregate principal amount of $5.0 billion , consisting of $1.5 billion in commitments to provide loans with a three -year maturity and $3.5 billion in commitments to provide loans with a five -year maturity. The aggregate principal amount of the commitments under the term loan credit agreement have replaced a corresponding amount of the commitments in respect of the bridge facility in accordance with the terms of the bridge facility commitment letter. As a result, there are now $12.0 billion in bridge facility commitments remaining. The Company expects to replace these remaining commitments with permanent financing in the form of the issuance of debt securities prior to the closing of the acquisition of First Data. The availability of loans under the term loan facility is subject to the satisfaction or waiver of certain conditions that are substantially consistent with the conditions to the funding of the bridge facility, including (i) the closing of the acquisition substantially concurrently with the funding of such loans, (ii) the absence of a material adverse effect with respect to First Data since January 16, 2019, (iii) the truth and accuracy in all material respects of certain representations and warranties, (iv) the receipt of certain certificates, and (v) the receipt of certain financial statements. Loans drawn under the term loan facility will be subject to amortization at an annual rate of 5% for the first two years and 7.5% thereafter (with loans outstanding under the five-year tranche subject to amortization at an annual rate of 10% after the fourth anniversary of the commencement of amortization), with accrued and unpaid amortization amounts required to be paid on the last business day in December of each year. Borrowings under the term loan facility will bear interest at variable rates based on LIBOR or on a base rate plus, in each case, a specified margin based on the Company’s long-term debt rating in effect from time to time. The Company is also required to pay a ticking fee that will accrue on the aggregate undrawn commitments under the term loan facility at a per annum rate based upon the Company’s long-term debt rating in effect from time to time. The term loan credit agreement contains affirmative, negative and financial covenants, and events of default, that are substantially the same as those set forth in the Company’s existing revolving credit facility, as amended as described within Note 6. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-02, Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects of the change in the U.S. federal corporate tax rate resulting from the Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017. ASU 2018-02 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company early adopted ASU 2018-02 in the first quarter of 2018, and elected to reclassify the Tax Act income tax benefits of $3 million from accumulated other comprehensive loss to retained earnings. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which provides guidance designed to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements as well as to simplify the application of the hedge accounting guidance in current U.S. generally accepted accounting principles. For public entities, ASU 2017-12 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year. For cash flow and net investment hedges existing at the date of adoption, the standard requires a cumulative-effect adjustment to eliminate the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year of adoption. The amended presentation and disclosure guidance is required only prospectively. The Company early adopted ASU 2017-12 in the first quarter of 2018, and recorded a cumulative-effect adjustment to accumulated other comprehensive loss of $3 million with a corresponding decrease in the opening balance of retained earnings. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which eliminates the current prohibition on immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory, with the intent of reducing complexity and diversity in practice. Under ASU 2016-16, entities must recognize the income tax consequences when the transfer occurs rather than deferring recognition. For public entities, ASU 2016-16 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. Entities must apply the guidance on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2016-16 in the first quarter of 2018, and the adoption did not have a material impact 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 was effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. 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. The impact of this standard on the Company’s consolidated financial statements depends on the intrinsic value of share-based compensation awards at the time of exercise or vesting, resulting in more variability in effective tax rates and net earnings, and also impacting the dilution of common stock equivalents. The Company adopted ASU 2016-09 effective January 1, 2017. As a result of this adoption, the Company recorded excess tax benefits related to share-based compensation awards of $34 million and $48 million in 2018 and 2017, respectively, in the income tax provision, whereas such benefits were previously recognized in equity. These benefits were partially offset by an increase in the dilution of common stock equivalents for calculating diluted earnings per share. The Company elected to apply the change in presentation in the statement of cash flows prospectively, and as a result, excess tax benefits are classified as operating activities when realized through reductions to subsequent tax payments. The treatment of forfeitures did not change as the Company elected to continue its current practice of estimating expected forfeitures. 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. 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 adopted ASU 2016-01 in the first quarter of 2018, and the adoption did not have any impact 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, including industry-specific requirements. It also includes guidance on accounting for the incremental costs of obtaining and costs incurred to fulfill a contract with a customer. 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. For public entities, the new revenue standard is effective for annual and interim periods beginning after December 15, 2017. Entities have the option of adopting this new guidance using either a full retrospective or a modified approach with the cumulative effect of applying the guidance recognized at the date of initial application. The Company adopted the new standard effective January 1, 2018 using the modified retrospective transition approach applied to all contracts, which resulted in a cumulative-effect increase in the opening balance of retained earnings of $208 million , primarily related to the deferral of incremental sales commissions incurred in obtaining contracts in prior periods. Under this transition approach, the Company has not restated the prior period consolidated financial statements presented; however, it has provided additional disclosures related to the amount by which each relevant 2018 financial statement line item was affected by adoption of the new standard and explanations for significant changes (see Note 2). Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements under Accounting Standards Codification (“ASC”) 350 for capitalizing implementation costs incurred to develop or obtain internal-use software. For public entities, ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. Entities are permitted to apply either a retrospective or prospective transition approach to adopt the guidance. The Company is currently assessing the impact that the adoption of ASU 2018-15 will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which removes, modifies, and adds certain disclosure requirements of ASC Topic 820, Fair Value Measurement . ASU 2018-13 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019, with the additional disclosures required to be applied prospectively and the modified and removed disclosures required to be applied retrospectively to all periods presented. Entities are permitted to early adopt the removed or modified disclosures and delay the adoption of the additional disclosures until the effective date. The Company is currently assessing the impact that the adoption of ASU 2018-13 will have on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which simplifies the accounting for share-based payments granted to nonemployees by largely aligning it with the accounting for share-based payments to employees. For public entities, ASU 2018-07 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. Entities must apply the standard, using a modified retrospective transition approach, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for all liability-classified nonemployee awards that have not been settled as of the adoption date and equity-classified nonemployee awards for which a measurement date has not been established. The Company does not expect the adoption of ASU 2018-07 to have a material impact 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 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 and statement of cash flow 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. The standard prescribes 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. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU No. 2018-10, Codification Improvements to Topic 842 ; ASU No. 2018-11, Leases (Topic 842) - Targeted Improvements ; and ASU No. 2018-20, Narrow-Scope Improvements for Lessors . ASU No. 2018-11 provides an additional transition method allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. For public entities, ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the new standard effective January 1, 2019 using the optional transition method in ASU 2018-11. Under this method, the Company will not adjust its comparative period financial statements for the effects of the new standard or make the new, expanded required disclosures for periods prior to the effective date. The Company elected the package of practical expedients permitted under the transition guidance in ASU 2016-02 to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company also elected the practical expedient not to separate the non-lease components of a contract from the lease component to which they relate. The Company has identified and implemented appropriate changes for adopting this new lease standard on its consolidated financial statements, including changes to related disclosures, accounting policies, and necessary control, process and system changes. The adoption of the new lease standard resulted in the recognition of lease liabilities of approximately $375 million and right-of-use assets of approximately $350 million , which include the impact of existing deferred rents and tenant improvement allowances on the consolidated balance sheet as of January 1, 2019 for real and personal property operating leases. The adoption of ASU 2016-02 will not have a material impact on the Company’s consolidated statements of income or consolidated statements of cash flows. |
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, accounts payable, and client deposits approximate their respective carrying values due to the short period of time to maturity. The estimated fair value of total debt is described in Note 6 and was based on quoted prices in active markets for the Company’s senior notes (level 1 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. The aggregate fair values of the Company’s debt guarantee arrangements (see Note 5 ) approximate the $29 million carrying values at December 31, 2018 (level 3 of the fair value hierarchy). The estimated fair value of the contingent consideration liability of $12 million at December 31, 2018 related to the acquisition of Elan Financial Services (see Note 3 ) was based on the present value of a probability-weighted assessment approach derived from the likelihood of achieving the earn-out criteria (level 3 of the fair value hierarchy). This estimated fair value has not changed since the acquisition date. The Company’s contingent consideration liability, originally estimated at a fair value of $15 million (level 3 of the fair value hierarchy), arising from its acquisition of Online Banking Solutions, Inc. was adjusted |
Derivatives | Derivatives Derivatives are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative are recognized in earnings. To the extent the fair value hedge is effective, there is an offsetting adjustment to the basis of the item being hedged. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. |
Foreign Currency | Foreign Currency Foreign currency denominated assets and liabilities, where the functional currency is the local currency, are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers , and its related amendments using the modified retrospective transition approach applied to all contracts. Prior period amounts have not been restated; however, certain prior period amounts have been reclassified to conform to current period presentation. Additional information about the Company’s revenue recognition policies and the related impact of the adoption is included in Note 2 to the consolidated financial statements. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of: salaries, wages, commissions and related expenses paid to sales personnel, administrative employees and management; advertising and promotional costs; depreciation and amortization; and other selling and administrative expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company analyzes the collectability of trade accounts receivable by considering historical bad debts, client creditworthiness, current economic trends, changes in client payment terms and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. |
Prepaid Expenses | Prepaid Expenses Prepaid expenses represent advance payments for goods and services to be consumed in the future, such as maintenance, postage and insurance, and totaled $158 million and $136 million at December 31, 2018 and 2017 , respectively. |
Settlement Assets and Obligations | Settlement Assets and Obligations Settlement assets of $486 million and $385 million were included in prepaid expenses and other current assets at December 31, 2018 and 2017 , respectively, and settlement obligations of $480 million and $379 million were included in accounts payable and accrued expenses at December 31, 2018 and 2017 , respectively. Settlement assets and obligations result from timing differences between collection and fulfillment of payment transactions primarily associated with the Company’s walk-in and expedited bill payment service businesses. Settlement assets represent cash received or amounts receivable from agents, payment networks or directly from consumers. Settlement obligations represent amounts payable to clients and payees. |
Property and Equipment | Property and Equipment Property and equipment are reported at cost. Depreciation of property and equipment is computed primarily using the straight-line method over the shorter of the estimated useful life of the asset or the leasehold period, if applicable. |
Intangible Assets | Research and development costs incurred prior to the establishment of technological feasibility are expensed as incurred. Routine maintenance of software products, design costs and other development costs incurred prior to the establishment of a product’s technological feasibility are also expensed as incurred. Costs are capitalized commencing when the technological feasibility of the software has been established. Customer related intangible assets represent customer contracts and relationships obtained as part of acquired businesses and are amortized over their estimated useful lives, generally ten to twenty years. Acquired software and technology represents software and technology intangible assets obtained as part of acquired businesses and are amortized over their estimated useful lives, generally four to eight years. Trade names are amortized over their estimated useful lives, generally eight to twenty years. Purchased software represents software licenses purchased from third parties and is amortized over their estimated useful lives, generally three to five years. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis, or more frequently if circumstances indicate possible impairment. Goodwill is tested for impairment at a reporting unit level, determined to be at an operating segment level or one level below. When reviewing goodwill for impairment, the Company considers the amount of excess fair value over the carrying value of each reporting unit, the period of time since a reporting unit’s last quantitative test, the extent a reorganization or disposition changes the composition of one or more of the reporting units, and other factors to determine whether or not to first perform a qualitative test. When performing a qualitative test, the Company assesses numerous factors to determine whether it is more likely than not that the fair value of its reporting units are less than their respective carrying values. Examples of qualitative factors that the Company assesses include its share price, its financial performance, market and competitive factors in its industry, and other events specific to its reporting units. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company performs a quantitative impairment test by comparing reporting unit carrying values to estimated fair values. |
Asset Impairment | Asset Impairment The Company reviews property and equipment, intangible assets and its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company reviews capitalized software development costs for impairment at each balance sheet date. Recoverability of property and equipment, capitalized software development costs, and other intangible assets is assessed by comparing the carrying amount of the asset to either the undiscounted future cash flows expected to be generated by the asset or the net realizable value of the asset, depending on the type of asset. The Company’s investments in unconsolidated affiliates are assessed by comparing the carrying amount of the investments to their estimated fair values and are impaired if any decline in fair value is determined to be other than temporary. Measurement of any impairment loss is based on estimated fair value. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recorded against deferred tax assets if it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. |
Net Income Per Share | Net Income Per Share Net income per share in each period is calculated using actual, unrounded amounts. Basic net income per share is computed using the weighted-average number of common shares outstanding during the year. Diluted net income per share is computed using the weighted-average number of common shares and common stock equivalents outstanding during the year. Common stock equivalents consist of stock options and restricted stock units and are computed using the treasury stock method. |
Revenue Recognition | Contract assets, reported within other long-term assets in the consolidated balance sheet, primarily result from revenue being recognized where payment is contingent upon the transfer of services to a customer over the contractual period. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue) for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company generates revenue from the delivery of processing, service and product solutions. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling activities associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment activity and recognized as revenue at the point in time at which control of the goods transfers to the customer. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less. Nature of Goods and Services The Company’s operations are comprised of the Payments and Industry Products (“Payments”) segment and the Financial Institution Services (“Financial”) segment. Additional information regarding the Company’s business segments is included in Note 10 . The following is a description of principal activities from which the Company generates its revenue. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include multiple types of goods and services as described below. Processing and Services Processing and services revenue is generated from account- and transaction-based fees for data processing, transaction processing, electronic billing and payment services, electronic funds transfer and debit processing services; consulting and professional services; and software maintenance for ongoing client support. The Company recognizes processing and services revenues in the period in which the specific service is performed unless they are not deemed distinct from other goods or services in which revenue would then be recognized as control is transferred of the combined goods and services. The Company’s arrangements for processing and services typically consist of an obligation to provide specific services to its customers on a when and if needed basis (a stand-ready obligation) and revenue is recognized from the satisfaction of the performance obligations in the amount billable to the customer. These services are typically provided under a fixed or declining (tier-based) price per unit based on volume of service; however, pricing for services may also be based on minimum monthly usage fees. Fees for the Company’s processing and services arrangements are typically billed and paid on a monthly basis. Product Product revenue is generated from integrated print and card production sales, as well as software license sales. For software license agreements that are distinct, the Company recognizes software license revenue upon delivery, assuming a contract is deemed to exist. Revenue for arrangements with customers that include significant customization, modification or production of software such that the software is not distinct is typically recognized over time based upon efforts expended, such as labor hours, to measure progress towards completion. For arrangements involving hosted licensed software for the customer, a software element is considered present to the extent the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty and it is feasible for the customer to either operate the software on their own hardware or contract with another vendor to host the software. In certain instances, the Company may offer extended payment terms beyond one year on its software license sales. To the extent a significant financing component exists, it is calculated as the difference between the promised consideration and the present value of the software license fees utilizing a discount rate reflective of a separate financing transaction, and is recognized as interest income over the extended payment period. The cash selling price of the software license fee is recognized as revenue at the point in time when the software is transferred to the customer. Significant Judgments in Application of the Guidance The Company uses the following methods, inputs, and assumptions in determining amounts of revenue to recognize: Identification of Performance Obligations To identify its performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. For multi-element arrangements, the Company accounts for individual goods or services as a separate performance obligation if they are distinct, the good or service is separately identifiable from other items in the arrangement, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determining whether goods or services are distinct performance obligations that should be accounted for separately may require significant judgment. Technology or service components from third parties are frequently embedded in or combined with the Company’s applications or service offerings. Whether the Company recognizes revenue based on the gross amount billed to a customer or the net amount retained involves judgment that depends on the relevant facts and circumstances including the level of contractual responsibilities and obligations for delivering solutions to end customers. Determination of Transaction Price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. The Company includes any fixed charges within its contracts as part of the total transaction price. To the extent that variable consideration is not constrained, the Company includes an estimate of the variable amount, as appropriate, within the total transaction price and updates its assumptions over the duration of the contract. Assessment of Estimates of Variable Consideration Many of the Company’s contracts with customers contain some component of variable consideration; however, the constraint will generally not result in a reduction in the estimated transaction price for most forms of variable consideration. The Company may constrain the estimated transaction price in the event of a high degree of uncertainty as to the final consideration amount owed because of an extended length of time over which the fees may be adjusted. Allocation of Transaction Price The transaction price (including any discounts) is allocated between separate goods and services in a multi-element arrangement based on their relative standalone selling prices. The standalone selling prices are determined based on the prices at which the Company separately sells each good or service. For items that are not sold separately, the Company estimates the standalone selling prices using available information such as market conditions and internally approved pricing guidelines. In instances where there are observable selling prices for professional services and support and maintenance, the Company may apply the residual approach to estimate the standalone selling price of software licenses. Significant judgment may be required to determine standalone selling prices for each performance obligation and whether it depicts the amount the Company expects to receive in exchange for the related good or service. Contract Modifications Contract modifications occur when the Company and its customers agree to modify existing customer contracts to change the scope or price (or both) of the contract or when a customer terminates some, or all, of the existing services provided by the Company. When a contract modification occurs, it requires the Company to exercise judgment to determine if the modification should be accounted for as: (i) a separate contract, (ii) the termination of the original contract and creation of a new contract, or (iii) a cumulative catch up adjustment to the original contract. Further, contract modifications require the identification and evaluation of the performance obligations of the modified contract, including the allocation of revenue to the remaining performance obligations and the period of recognition for each identified performance obligation. Revenue Recognition During the Years Ended December 31, 2017 and December 31, 2016 The Company generates revenue from the delivery of processing, service and product solutions. Revenue is recognized when written contracts are signed, delivery has occurred, the fees are fixed or determinable, and collectibility is reasonably assured. Processing and services revenue is recognized as services are provided and is primarily derived from contracts that generate account- and transaction-based fees for data processing, transaction processing, electronic billing and payment services, electronic funds transfer and debit processing services. In addition, processing and services revenue is derived from the fulfillment of professional services, including consulting activities. Certain of the Company’s revenue is generated from multiple element arrangements involving various combinations of product and service deliverables. The deliverables within these arrangements are evaluated at contract inception to determine whether they represent separate units of accounting, and if so, contract consideration is allocated to each deliverable based on relative selling price. The relative selling price is determined using vendor specific objective evidence of fair value, third-party evidence or best estimate of selling price. Revenue is then recognized in accordance with the appropriate revenue recognition guidance applicable to the respective elements. Also included in processing and services revenue is software maintenance fee revenue for ongoing client support, which is recognized ratably over the term of the applicable support period, generally 12 months. Contract liabilities consist primarily of advance cash receipts for services (deferred revenue) and are recognized as revenue when the services are provided. Product revenue is primarily derived from integrated print and card production sales, as well as software license sales which represented less than 4% of consolidated revenue. For software license agreements that do not require significant customization or modification, the Company recognizes software license revenue upon delivery, assuming persuasive evidence of an arrangement exists, the license fee is fixed or determinable, and collection is reasonably assured. Arrangements with customers that include significant customization, modification or production of software are accounted for under contract accounting, with revenue recognized using the percentage-of-completion method based upon efforts expended, such as labor hours, to measure progress towards completion. Changes in estimates for revenues, costs and profits are recognized in the period in which they are determinable and were not material for any period presented. The Company includes reimbursements from clients, such as postage and telecommunication costs, in processing and services revenue and product revenue, while the related costs are included in cost of processing and services and cost of product. The Company applies the optional exemption in paragraph 606-10-50-14(b) and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition in accordance with paragraph 606-10-55-18. These contracts generally have terms of three to five years, and contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional exemptions in paragraph 606-10-50-14A and does not disclose information for variable consideration, including additional seat licenses, that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year. Contract Costs The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with customers that are expected to be recovered. These costs consist primarily of sales commissions incurred only if a contract is obtained, and customer conversion or implementation related costs. Capitalized contract costs are amortized based on the transfer of goods or services to which the asset relates. The amortization period also considers expected customer lives and whether the asset relates to goods or services transferred under a specific anticipated contract. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following at December 31: (In millions) Estimated Useful Lives 2018 2017 Land — $ 10 $ 13 Data processing equipment 3 to 5 years 775 726 Buildings and leasehold improvements 5 to 40 years 256 255 Furniture and equipment 5 to 8 years 186 182 1,227 1,176 Less: accumulated depreciation (829 ) (786 ) Total $ 398 $ 390 |
Schedule of intangible assets | Intangible assets consisted of the following at December 31: (In millions) Gross Carrying Amount Accumulated Amortization Net Book Value 2018 Customer related intangible assets $ 2,642 $ 1,294 $ 1,348 Acquired software and technology 591 490 101 Trade names 120 71 49 Capitalized software development costs 810 314 496 Purchased software 261 112 149 Total $ 4,424 $ 2,281 $ 2,143 (In millions) Gross Carrying Amount Accumulated Amortization Net Book Value 2017 Customer related intangible assets $ 2,293 $ 1,168 $ 1,125 Acquired software and technology 579 460 119 Trade names 117 64 53 Capitalized software development costs 737 282 455 Purchased software 241 111 130 Total $ 3,967 $ 2,085 $ 1,882 |
Schedule of changes in goodwill | The changes in goodwill during 2018 and 2017 were as follows: (In millions) Payments Financial Total Goodwill - December 31, 2016 $ 3,610 $ 1,763 $ 5,373 Acquired goodwill 146 71 217 Disposed goodwill — (3 ) (3 ) Foreign currency adjustments 1 2 3 Goodwill - December 31, 2017 3,757 1,833 5,590 Acquired goodwill 240 7 247 Disposed goodwill — (131 ) (131 ) Foreign currency adjustments (1 ) (3 ) (4 ) Goodwill - December 31, 2018 $ 3,996 $ 1,706 $ 5,702 |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following at December 31: (In millions) 2018 2017 Trade accounts payable $ 127 $ 80 Client deposits 564 481 Settlement obligations 480 379 Accrued compensation and benefits 199 198 Other accrued expenses 256 221 Total $ 1,626 $ 1,359 |
Schedule of changes in accumulated other comprehensive loss by component | 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, 2017 $ (14 ) $ (38 ) $ (2 ) $ (54 ) Other comprehensive loss before reclassifications (5 ) (11 ) — (16 ) Amounts reclassified from accumulated other comprehensive loss 3 — — 3 Net current-period other comprehensive loss (2 ) (11 ) — (13 ) Cumulative-effect adjustment of ASU 2017-12 adoption from retained earnings 3 — — 3 Cumulative-effect adjustment of ASU 2018-02 adoption to retained earnings (3 ) — — (3 ) Balance at December 31, 2018 $ (16 ) $ (49 ) $ (2 ) $ (67 ) (In millions) Cash Flow Hedges Foreign Currency Translation Other Total Balance at December 31, 2016 $ (24 ) $ (50 ) $ (2 ) $ (76 ) Other comprehensive income before reclassifications 4 12 — 16 Amounts reclassified from accumulated other comprehensive loss 6 — — 6 Net current-period other comprehensive income 10 12 — 22 Balance at December 31, 2017 $ (14 ) $ (38 ) $ (2 ) $ (54 ) |
Computation of shares used in calculating basic and diluted net income per share | The computation of shares used in calculating basic and diluted net income per share is as follows: (In millions) 2018 2017 2016 Weighted-average common shares outstanding used for the calculation of net income per share - basic 405.5 422.3 440.6 Common stock equivalents 8.2 9.0 7.2 Weighted-average common shares outstanding used for the calculation of net income per share - diluted 413.7 431.3 447.8 |
Schedule of supplemental cash flow information | Supplemental Cash Flow Information (In millions) 2018 2017 2016 Interest paid $ 165 $ 160 $ 147 Income taxes paid 259 409 408 Treasury stock purchases settled after the balance sheet date 26 5 10 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The table below present the Company’s revenue disaggregated by major business, including a reconciliation with its reportable segments. Most of the Company’s revenue is earned domestically within these major businesses with revenue from clients outside the United States comprising approximately 6% of total revenue. (In millions) Reportable Segments Year Ended December 31, 2018 Payments Financial Corporate and Other Total Major Business Digital Money Movement $ 1,460 $ — $ — $ 1,460 Card and Related Services 1,682 — — 1,682 Other 325 — — 325 Total Payments 3,467 — — 3,467 Account and Item Processing — 2,094 — 2,094 Lending Solutions — 54 — 54 Other — 247 — 247 Total Financial — 2,395 — 2,395 Corporate and Other — — (39 ) (39 ) Total Revenue $ 3,467 $ 2,395 $ (39 ) $ 5,823 |
Contract with customer, asset and liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers. (In millions) December 31, 2018 January 1, 2018 Contract assets $ 171 $ 158 Contract liabilities 469 520 |
Schedule of remaining performance obligations | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. (In millions) December 31, 2018 2019 2020 2021 2022 Thereafter Processing and services $ 1,061 $ 836 $ 678 $ 480 $ 566 Product 38 30 20 13 9 |
Schedule of effect of new accounting pronouncements | The following tables summarize the impacts of ASC 606 adoption on the Company’s consolidated financial statements as of and for the year ended December 31, 2018 . Consolidated Statement of Income (In millions) Impact of changes in accounting policies Year Ended December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 Revenue: Processing and services $ 4,975 $ (26 ) $ 4,949 Product 848 (24 ) 824 Total revenue 5,823 (50 ) 5,773 Expenses: Cost of processing and services 2,324 3 2,327 Cost of product 745 (2 ) 743 Selling, general and administrative 1,228 16 1,244 Gain on sale of business (227 ) (3 ) (230 ) Total expenses 4,070 14 4,084 Operating income 1,753 (64 ) 1,689 Interest expense (193 ) — (193 ) Loss on early debt extinguishment (14 ) — (14 ) Non-operating income 9 (1 ) 8 Income before income taxes and income from investments in unconsolidated affiliates 1,555 (65 ) 1,490 Income tax provision (378 ) 14 (364 ) Income from investments in unconsolidated affiliates 10 — 10 Net income $ 1,187 $ (51 ) $ 1,136 Net income per share – basic $ 2.93 $ (0.13 ) $ 2.80 Net income per share – diluted $ 2.87 $ (0.12 ) $ 2.75 Shares used in computing net income per share: Basic 405.5 — 405.5 Diluted 413.7 — 413.7 Consolidated Statement of Comprehensive Income (In millions) Impact of changes in accounting policies Year Ended December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 Net income $ 1,187 $ (51 ) $ 1,136 Other comprehensive (loss) income: Fair market value adjustment on cash flow hedges, net of income tax benefit of $2 million (5 ) — (5 ) Reclassification adjustment for net realized gains on cash flow hedges included in cost of processing and services, net of income tax benefit of $0 (1 ) — (1 ) Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of income tax provision of $2 million 4 — 4 Foreign currency translation (11 ) — (11 ) Total other comprehensive loss (13 ) — (13 ) Comprehensive income $ 1,174 $ (51 ) $ 1,123 Consolidated Balance Sheet (In millions) Impact of changes in accounting policies December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 Assets Cash and cash equivalents $ 415 $ — $ 415 Trade accounts receivable, less allowance for doubtful accounts 1,049 (11 ) 1,038 Prepaid expenses and other current assets 760 19 779 Total current assets 2,224 8 2,232 Property and equipment, net 398 — 398 Intangible assets, net 2,143 — 2,143 Goodwill 5,702 — 5,702 Contract costs, net 419 (339 ) 80 Other long-term assets 376 102 478 Total assets $ 11,262 $ (229 ) $ 11,033 Liabilities and Shareholders’ Equity Accounts payable and accrued expenses $ 1,626 $ (11 ) $ 1,615 Current maturities of long-term debt 4 — 4 Contract liabilities 380 101 481 Total current liabilities 2,010 90 2,100 Long-term debt 5,955 — 5,955 Deferred income taxes 745 (82 ) 663 Long-term contract liabilities 89 21 110 Other long-term liabilities 170 — 170 Total liabilities 8,969 29 8,998 Total shareholders’ equity 2,293 (258 ) 2,035 Total liabilities and shareholders’ equity $ 11,262 $ (229 ) $ 11,033 Consolidated Statement of Cash Flows (In millions) Impact of changes in accounting policies Year Ended December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 Cash flows from operating activities: Net income $ 1,187 $ (51 ) $ 1,136 Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: Depreciation and other amortization 393 (74 ) 319 Amortization of acquisition-related intangible assets 163 — 163 Share-based compensation 73 — 73 Deferred income taxes 133 (14 ) 119 Gain on sale of businesses (227 ) (3 ) (230 ) Loss on early debt extinguishment 14 — 14 Income from investments in unconsolidated affiliates (10 ) — (10 ) Dividends from unconsolidated affiliates 2 — 2 Non-cash impairment charges 3 — 3 Other operating activities (10 ) — (10 ) Changes in assets and liabilities, net of effects from acquisitions and dispositions: Trade accounts receivable (108 ) 31 (77 ) Prepaid expenses and other assets (6 ) (2 ) (8 ) Contract costs (137 ) 98 (39 ) Accounts payable and other liabilities 116 (4 ) 112 Contract liabilities (34 ) 19 (15 ) Net cash provided by operating activities from continuing operations 1,552 — 1,552 Cash flows from investing activities: Capital expenditures, including capitalization of software costs (360 ) — (360 ) Proceeds from sale of businesses 419 — 419 Payments for acquisitions of businesses, net of cash acquired (712 ) — (712 ) Purchases of investments (3 ) — (3 ) Other investing activities (7 ) — (7 ) Net cash provided by investing activities from continuing operations (663 ) — (663 ) Cash flows from financing activities: Debt proceeds 5,039 — 5,039 Debt repayments, including redemption and other costs (4,005 ) — (4,005 ) Proceeds from issuance of treasury stock 75 — 75 Purchases of treasury stock, including employee shares withheld for tax obligations (1,946 ) — (1,946 ) Other financing activities (5 ) — (5 ) Net cash used in financing activities from continuing operations (842 ) — (842 ) Net change in cash and cash equivalents from continuing operations 47 — 47 Net change in cash and cash equivalents from discontinued operations 43 — 43 Cash and cash equivalents, beginning balance 325 — 325 Cash and cash equivalents, ending balance $ 415 $ — $ 415 Discontinued operations cash flow information: Net cash used in operating activities $ (7 ) $ — $ (7 ) Net cash provided by investing activities 50 — 50 Net change in cash and cash equivalents from discontinued operations $ 43 $ — $ 43 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | The preliminary allocation of purchase price recorded for Elan was as follows: (In millions) Trade accounts receivable $ 20 Prepaid expenses and other current assets 94 Property and equipment 9 Intangible assets 353 Goodwill 240 Accounts payable and other current liabilities (56 ) Total purchase price $ 660 |
Schedule of values and weighted-average useful life allocated to intangible assets | The values allocated to intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer related intangible assets $ 350 15 years Trade name 3 8 years $ 353 15 years The values allocated to intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer related intangible assets $ 92 15 years Acquired software and technology 71 7 years $ 163 12 years |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net of discounts and debt issuance costs | The Company’s long-term debt, net of discounts and debt issuance costs, consisted of the following at December 31: (In millions) 2018 2017 Revolving credit facility $ 1,129 $ 1,068 2.7% senior notes due 2020 848 846 4.75% senior notes due 2021 399 398 3.5% senior notes due 2022 697 696 3.8% senior notes due 2023 992 — 3.85% senior notes due 2025 895 894 4.2% senior notes due 2028 990 — 4.625% senior notes due 2020 — 449 Term loan — 540 Other borrowings 9 9 Total debt 5,959 4,900 Less: current maturities (4 ) (3 ) Long-term debt $ 5,955 $ 4,897 |
Schedule of annual maturities of total debt | Annual maturities of the Company’s total debt were as follows at December 31, 2018 : (In millions) Year ending December 31, 2019 $ 4 2020 851 2021 401 2022 697 2023 2,121 Thereafter 1,885 Total $ 5,959 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of statutory federal income tax rate to effective income tax rate | A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for continuing operations is as follows: 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal effect 3.2 % 2.3 % 2.9 % Unconsolidated affiliate tax 0.1 % 0.9 % 4.2 % Tax expense (benefit) due to federal tax reform 1.2 % (20.3 )% — % Excess tax benefit from share-based awards (2.2 )% (3.6 )% — % Sale of business 1.3 % — % — % Domestic production activities deduction — % (2.0 )% (3.0 )% Other, net (0.3 )% (0.7 )% (0.5 )% Effective income tax rate 24.3 % 11.6 % 38.6 % |
Schedule of income tax provision for continuing operations | The income tax provision (benefit) for continuing operations was as follows: (In millions) 2018 2017 2016 Current: Federal $ 189 $ 342 $ 402 State 39 44 53 Foreign 17 19 16 245 405 471 Deferred: Federal 110 (250 ) 21 State 24 3 5 Foreign (1 ) — (5 ) 133 (247 ) 21 Income tax provision $ 378 $ 158 $ 492 |
Schedule of deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities consisted of the following at December 31: (In millions) 2018 2017 Accrued expenses $ 74 $ 39 Interest rate hedge contracts 5 9 Share-based compensation 43 40 Net operating loss and credit carry-forwards 131 131 Deferred revenue 11 17 Other 14 7 Subtotal 278 243 Valuation allowance (101 ) (103 ) Total deferred tax assets 177 140 Capitalized software development costs (129 ) (117 ) Intangible assets (437 ) (455 ) Property and equipment (66 ) (49 ) Capitalized commissions (80 ) — Investment in joint ventures (78 ) — Other (112 ) (48 ) Total deferred tax liabilities (902 ) (669 ) Total $ (725 ) $ (529 ) Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31: (In millions) 2018 2017 Noncurrent assets $ 20 $ 23 Noncurrent liabilities (745 ) (552 ) Total $ (725 ) $ (529 ) |
Schedule of unrecognized tax benefits | Unrecognized tax benefits were as follows: (In millions) 2018 2017 2016 Unrecognized tax benefits - Beginning of year $ 42 $ 45 $ 54 Increases for tax positions taken during the current year 3 11 9 Increases for tax positions taken in prior years 20 2 1 Decreases for tax positions taken in prior years (8 ) (15 ) (15 ) Decreases for settlements — (1 ) (2 ) Lapse of the statute of limitations (8 ) — (2 ) Unrecognized tax benefits - End of year $ 49 $ 42 $ 45 |
Employee Stock and Savings Pl_2
Employee Stock and Savings Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of assumptions used to determine fair value of stock options granted | The fair values of stock options granted were estimated on the date of grant using a binomial option-pricing model with the following assumptions: 2018 2017 2016 Expected life (in years) 6.3 6.3 6.4 Average risk-free interest rate 2.2 % 2.2 % 1.9 % Expected volatility 28.3 % 28.9 % 29.3 % Expected dividend yield 0 % 0 % 0 % |
Summary of stock option activity | A summary of stock option activity is as follows: Shares (In thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Stock options outstanding - December 31, 2017 13,791 $ 28.17 Granted 1,283 70.11 Forfeited (332 ) 57.65 Exercised (2,690 ) 18.62 Stock options outstanding - December 31, 2018 12,052 $ 33.96 5.2 $ 477 Stock options exercisable - December 31, 2018 9,319 $ 26.20 4.3 $ 441 |
Summary of restricted stock unit an performance share unit activity | A summary of restricted stock and performance share unit activity is as follows: Restricted Stock Units Performance Share Units Shares (In thousands) Weighted- Average Grant Date Fair Value Shares Weighted- Units - December 31, 2017 1,942 $ 44.35 402 $ 52.16 Granted 569 71.13 164 75.40 Forfeited (173 ) 54.72 (42 ) 55.42 Vested (517 ) 39.03 — — Units - December 31, 2018 1,821 $ 53.22 524 $ 57.60 |
Schedule of additional information related to stock option and restricted stock unit activity | The table below presents additional information related to stock option and restricted stock unit activity: (In millions) 2018 2017 2016 Total intrinsic value of stock options exercised $ 147 $ 116 $ 113 Fair value of restricted stock units vested 37 61 58 Income tax benefit from stock options exercised and restricted stock units vested 43 66 62 Cash received from stock options exercised 29 36 39 |
Leases, Commitments and Conti_2
Leases, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments on operating leases | Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2018 : (In millions) Year ending December 31, 2019 $ 94 2020 75 2021 62 2022 51 2023 40 Thereafter 108 Total $ 430 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | (In millions) Payments Financial Corporate and Other Total 2018 Processing and services revenue $ 2,728 $ 2,204 $ 43 $ 4,975 Product revenue 739 191 (82 ) 848 Total revenue 3,467 2,395 (39 ) 5,823 Operating income 1 1,122 798 (167 ) 1,753 Total assets 7,622 3,240 400 11,262 Capital expenditures 239 115 6 360 Depreciation and amortization expense 225 145 186 556 2017 Processing and services revenue $ 2,476 $ 2,347 $ 10 $ 4,833 Product revenue 758 183 (78 ) 863 Total revenue 3,234 2,530 (68 ) 5,696 Operating income 1,034 849 (351 ) 1,532 Total assets 2 6,596 3,309 384 10,289 Capital expenditures 182 95 10 287 Depreciation and amortization expense 169 92 183 444 2016 Processing and services revenue $ 2,334 $ 2,285 $ 6 $ 4,625 Product revenue 756 192 (68 ) 880 Total revenue 3,090 2,477 (62 ) 5,505 Operating income 943 823 (321 ) 1,445 Total assets 6,143 3,287 313 9,743 Capital expenditures 161 125 4 290 Depreciation and amortization expense 141 96 184 421 1 A gain of $227 million from the sale of a 55% interest of the Company’s Lending Solutions business is included within Corporate and Other. 2 Assets held for sale of $50 million at December 31, 2017 related to discontinued operations have been included within Corporate and Other. |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | Quarterly financial data for 2018 and 2017 was as follows: (In millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2018 Total revenue $ 1,440 $ 1,420 $ 1,412 $ 1,551 $ 5,823 Cost of processing and services 568 560 568 628 2,324 Cost of product 191 179 181 194 745 Selling, general and administrative expenses 305 320 305 298 1,228 (Gain) loss on sale of business (232 ) 3 2 — (227 ) Total expenses 832 1,062 1,056 1,120 4,070 Operating income 608 358 356 431 1,753 Income from continuing operations (1) 423 251 227 286 1,187 Net income 423 251 227 286 1,187 Comprehensive income 421 241 214 298 1,174 Net income per share - continuing operations: (2) Basic $ 1.02 $ 0.61 $ 0.56 $ 0.72 $ 2.93 Diluted $ 1.00 $ 0.60 $ 0.55 $ 0.71 $ 2.87 2017 Total revenue $ 1,394 $ 1,386 $ 1,400 $ 1,516 $ 5,696 Cost of processing and services 570 573 572 576 2,291 Cost of product 182 175 174 202 733 Selling, general and administrative expenses 277 276 284 313 1,150 Gain on sale of business — (10 ) — — (10 ) Total expenses 1,029 1,014 1,030 1,091 4,164 Operating income 365 372 370 425 1,532 Income from continuing operations (1) 247 221 232 532 1,232 Net income (1) 247 221 232 546 1,246 Comprehensive income 256 229 236 547 1,268 Net income per share - continuing operations: (2) Basic $ 0.58 $ 0.52 $ 0.55 $ 1.28 $ 2.92 Diluted $ 0.56 $ 0.51 $ 0.54 $ 1.25 $ 2.86 _____ (1) During the third quarter of 2018 and the fourth quarter of 2017, the Company recognized discrete income tax expense of $19 million and income tax benefits of $275 million , respectively, associated with the Tax Act enacted in December 2017. Refer to Note 7 for more information regarding the Company’s income taxes. (2) Net income per share - continuing operations in each period is calculated using actual, unrounded amounts. All per share amounts are presented on a split-adjusted basis to retroactively reflect the two -for-one stock split that was completed in the first quarter of 2018. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Stock Split (Details) $ in Millions | Feb. 21, 2018 | Mar. 31, 2018 | Dec. 31, 2018USD ($) |
Class of Stock [Line Items] | |||
Stock split ratio | 2 | 2 | |
Common Stock | |||
Class of Stock [Line Items] | |||
Adjustments due stock split, APIC | $ 4 | ||
Additional Paid-In Capital | |||
Class of Stock [Line Items] | |||
Adjustments due stock split, APIC | $ (4) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recently Adopted and Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Excess tax benefits from share-based compensation awards | $ 34 | $ 48 | |
Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of new accounting principle | 208 | ||
Accounting Standards Update 2014-09 | Retained Earnings | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of new accounting principle | 208 | ||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of new accounting principle | (3) | ||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-02 | Retained Earnings | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of new accounting principle | 3 | 3 | |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2017-12 | Accumulated Other Comprehensive Loss | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of new accounting principle | 3 | ||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2017-12 | Retained Earnings | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of new accounting principle | $ (3) | $ (3) | |
Forecast | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-11 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Lease liabilities | $ 375 | ||
Right-of-use asset | $ 350 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2018 | Jan. 17, 2017 | |
Business Acquisition [Line Items] | |||||
Loss on early debt extinguishment | $ (14) | $ 0 | $ 0 | ||
Debt guarantee arrangements, fair value | 6,000 | 5,000 | |||
Contingent consideration liability, fair value | $ 15 | ||||
Elan Financial Services | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration liability, fair value | 12 | $ 12 | |||
Online Banking Solutions, Inc. | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration liability, fair value | 5 | $ 15 | |||
Non-cash fair value adjustment decrease on contingent consideration | 10 | ||||
Variable-Rate Revolving Credit Facilities and Variable-Rate Term Loan Facilities Due March 2023 | |||||
Business Acquisition [Line Items] | |||||
Debt guarantee arrangements, fair value | $ 29 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 18 | $ 15 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Prepaid Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 158 | $ 136 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Settlement Assets and Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Settlement assets | $ 486 | $ 385 |
Settlement obligations | $ 480 | $ 379 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,227 | $ 1,176 | |
Less: accumulated depreciation | (829) | (786) | |
Total | 398 | 390 | |
Depreciation expense | 92 | 92 | $ 90 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 10 | 13 | |
Data processing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 775 | 726 | |
Data processing equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Data processing equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 256 | 255 | |
Buildings and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 40 years | ||
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 186 | $ 182 | |
Furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 8 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Intangible Assets by Class (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,424 | $ 3,967 |
Accumulated Amortization | 2,281 | 2,085 |
Net Book Value | 2,143 | 1,882 |
Customer related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,642 | 2,293 |
Accumulated Amortization | 1,294 | 1,168 |
Net Book Value | 1,348 | 1,125 |
Acquired software and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 591 | 579 |
Accumulated Amortization | 490 | 460 |
Net Book Value | 101 | 119 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 120 | 117 |
Accumulated Amortization | 71 | 64 |
Net Book Value | 49 | 53 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 810 | 737 |
Accumulated Amortization | 314 | 282 |
Net Book Value | 496 | 455 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 261 | 241 |
Accumulated Amortization | 112 | 111 |
Net Book Value | $ 149 | $ 130 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense for acquired intangible assets | $ 163 | $ 159 | $ 158 |
Product development expenditures as percentage of total revenue | 8.00% | 8.00% | 8.00% |
Amortization expense for intangible assets | $ 4 | ||
Customer related intangible assets | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 10 years | ||
Customer related intangible assets | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 20 years | ||
Acquired software and technology | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 4 years | ||
Acquired software and technology | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 8 years | ||
Trade names | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 8 years | ||
Trade names | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 20 years | ||
Capitalized software development costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 5 years | ||
Gross software development costs | $ 193 | $ 159 | $ 143 |
Amortization of previously capitalized software development costs | 137 | 123 | 106 |
Purchased software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense for intangible assets | $ 47 | $ 44 | $ 40 |
Purchased software | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 3 years | ||
Purchased software | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives | 5 years | ||
Acquired intangible assets | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,019 | $ 180 | ||
2,020 | 160 | ||
2,021 | 150 | ||
2,022 | 150 | ||
2,023 | 140 | ||
Capitalized and purchased software | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,019 | $ 210 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Goodwill impairment | $ 0 | ||
Accumulated impairment loss | 0 | $ 0 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 5,590,000,000 | $ 5,373,000,000 | |
Acquired goodwill | 247,000,000 | 217,000,000 | |
Disposed goodwill | (131,000,000) | (3,000,000) | |
Foreign currency adjustments | (4,000,000) | 3,000,000 | |
Goodwill, ending balance | 5,702,000,000 | 5,702,000,000 | 5,590,000,000 |
Payments | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 3,757,000,000 | 3,610,000,000 | |
Acquired goodwill | 240,000,000 | 146,000,000 | |
Disposed goodwill | 0 | 0 | |
Foreign currency adjustments | (1,000,000) | 1,000,000 | |
Goodwill, ending balance | 3,996,000,000 | 3,996,000,000 | 3,757,000,000 |
Financial | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,833,000,000 | 1,763,000,000 | |
Acquired goodwill | 7,000,000 | 71,000,000 | |
Disposed goodwill | (131,000,000) | (3,000,000) | |
Foreign currency adjustments | (3,000,000) | 2,000,000 | |
Goodwill, ending balance | $ 1,706,000,000 | $ 1,706,000,000 | $ 1,833,000,000 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Trade accounts payable | $ 127 | $ 80 |
Client deposits | 564 | 481 |
Settlement obligations | 480 | 379 |
Accrued compensation and benefits | 199 | 198 |
Other accrued expenses | 256 | 221 |
Total | $ 1,626 | $ 1,359 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 2,293 | $ 2,731 | $ 2,541 | $ 2,660 |
Total other comprehensive (loss) income | (13) | 22 | (2) | |
Balance at end of period | 2,293 | 2,731 | 2,541 | |
Interest expense | 193 | 176 | 163 | |
Cash flow hedge loss to be recognized in cost of processing and services during the next 12 months | 1 | |||
Designated as hedging instrument | Foreign currency forward exchange contracts | Indian Rupee | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Notional amount | 202 | 150 | ||
Total fair value | (8) | |||
Forecast | Designated as hedging instrument | Interest rate contract | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Interest expense | 6 | |||
Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (16) | (14) | (24) | |
Other comprehensive loss before reclassifications | (5) | 4 | ||
Amounts reclassified from accumulated other comprehensive loss | 3 | 6 | ||
Total other comprehensive (loss) income | (2) | 10 | ||
Balance at end of period | (16) | (14) | (24) | |
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (49) | (38) | (50) | |
Other comprehensive loss before reclassifications | (11) | 12 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Total other comprehensive (loss) income | (11) | 12 | ||
Balance at end of period | (49) | (38) | (50) | |
Other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (2) | (2) | (2) | |
Other comprehensive loss before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Total other comprehensive (loss) income | 0 | 0 | ||
Balance at end of period | (2) | (2) | (2) | |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ (67) | (54) | (76) | (74) |
Other comprehensive loss before reclassifications | (16) | 16 | ||
Amounts reclassified from accumulated other comprehensive loss | 3 | 6 | ||
Total other comprehensive (loss) income | (13) | 22 | (2) | |
Balance at end of period | $ (67) | (54) | $ (76) | |
Accounting Standards Update 2017-12 | New Accounting Pronouncement, Early Adoption, Effect | Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle | 3 | |||
Accounting Standards Update 2017-12 | New Accounting Pronouncement, Early Adoption, Effect | Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle | 0 | |||
Accounting Standards Update 2017-12 | New Accounting Pronouncement, Early Adoption, Effect | Other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle | 0 | |||
Accounting Standards Update 2017-12 | New Accounting Pronouncement, Early Adoption, Effect | Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle | 3 | |||
Accounting Standards Update 2018-02 | New Accounting Pronouncement, Early Adoption, Effect | Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle | (3) | |||
Accounting Standards Update 2018-02 | New Accounting Pronouncement, Early Adoption, Effect | Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle | 0 | |||
Accounting Standards Update 2018-02 | New Accounting Pronouncement, Early Adoption, Effect | Other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle | 0 | |||
Accounting Standards Update 2018-02 | New Accounting Pronouncement, Early Adoption, Effect | Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle | $ (3) |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Net Income Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Weighted-average shares excluded from calculations of common stock equivalents for anti-dilutive stock options | 1.1 | 1.3 | 1.6 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Weighted-average common shares outstanding used for the calculation of net income per share - basic | 405.5 | 422.3 | 440.6 |
Common stock equivalents (in shares) | 8.2 | 9 | 7.2 |
Weighted-average common shares outstanding used for the calculation of net income per share - diluted | 413.7 | 431.3 | 447.8 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Interest paid | $ 165 | $ 160 | $ 147 |
Income taxes paid | 259 | 409 | 408 |
Treasury stock purchases settled after the balance sheet date | $ 26 | $ 5 | $ 10 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue recognized which was included in the contract liability balance | $ 450 | ||
Capitalized contract costs, amortization | 106 | ||
Capitalized contract cost, impairment loss | 0 | ||
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment of ASU adoption | $ 208 | ||
Retained Earnings | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment of ASU adoption | $ 208 | ||
Product | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Percentage of consolidated revenue (less than) | 4.00% | ||
Sales Commissions | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Capitalized contract costs | 322 | ||
Conversion or Implementation Costs | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Capitalized contract costs | $ 97 | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Remaining revenue performance obligation, optional exemption, contract term | 3 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Remaining revenue performance obligation, optional exemption, contract term | 5 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 5,823 | ||
Digital Money Movement | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,460 | ||
Card and Related Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,682 | ||
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 325 | ||
Total Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 3,467 | ||
Account and Item Processing | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,094 | ||
Lending Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 54 | ||
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 247 | ||
Total Financial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,395 | ||
Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 3,467 | ||
Payments | Digital Money Movement | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,460 | ||
Payments | Card and Related Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,682 | ||
Payments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 325 | ||
Payments | Total Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 3,467 | ||
Payments | Account and Item Processing | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Payments | Lending Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Payments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Payments | Total Financial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Financial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,395 | ||
Financial | Digital Money Movement | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Financial | Card and Related Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Financial | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Financial | Total Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Financial | Account and Item Processing | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,094 | ||
Financial | Lending Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 54 | ||
Financial | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 247 | ||
Financial | Total Financial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,395 | ||
Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | (39) | ||
Corporate and Other | Digital Money Movement | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Card and Related Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Total Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Account and Item Processing | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Lending Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Total Financial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Corporate and Other | Financial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 0 | ||
Geographic Concentration Risk | Sales Revenue, Net | Foreign tax authority | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of concentration risk | 6.00% | 5.00% | 5.00% |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 171 | $ 158 |
Contract liabilities | $ 469 | $ 520 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Processing and services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,061 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Processing and services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 836 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Processing and services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 678 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Processing and services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 480 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Processing and services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 566 |
Processing and services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | |
Product | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 38 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Product | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 30 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Product | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 20 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Product | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 13 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Product | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 9 |
Product | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing |
Revenue Recognition - Impacts o
Revenue Recognition - Impacts of ASC 606 Adoption on Consolidated Statement of Income (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||||||||||
Processing and services | $ 4,975 | $ 4,833 | $ 4,625 | ||||||||
Product | 848 | 863 | 880 | ||||||||
Total revenue | $ 1,551 | $ 1,412 | $ 1,420 | $ 1,440 | $ 1,516 | $ 1,400 | $ 1,386 | $ 1,394 | 5,823 | 5,696 | 5,505 |
Expenses: | |||||||||||
Cost of processing and services | 628 | 568 | 560 | 568 | 576 | 572 | 573 | 570 | 2,324 | 2,291 | 2,212 |
Cost of product | 194 | 181 | 179 | 191 | 202 | 174 | 175 | 182 | 745 | 733 | 747 |
Selling, general and administrative | 298 | 305 | 320 | 305 | 313 | 284 | 276 | 277 | 1,228 | 1,150 | 1,101 |
(Gain) loss on sale of business | 0 | 2 | 3 | (232) | 0 | 0 | (10) | 0 | (227) | (10) | 0 |
Total expenses | 1,120 | 1,056 | 1,062 | 832 | 1,091 | 1,030 | 1,014 | 1,029 | 4,070 | 4,164 | 4,060 |
Operating income | 431 | 356 | 358 | 608 | 425 | 370 | 372 | 365 | 1,753 | 1,532 | 1,445 |
Interest expense | (193) | (176) | (163) | ||||||||
Loss on early debt extinguishment | (14) | 0 | 0 | ||||||||
Non-operating income | 9 | ||||||||||
Income from continuing operations before income taxes and income from investments in unconsolidated affiliates | 1,555 | 1,358 | 1,275 | ||||||||
Income tax provision | (378) | (158) | (492) | ||||||||
Income from investments in unconsolidated affiliates | 10 | 32 | 147 | ||||||||
Net income | $ 286 | $ 227 | $ 251 | $ 423 | $ 546 | $ 232 | $ 221 | $ 247 | $ 1,187 | $ 1,246 | $ 930 |
Net income per share – basic (in dollars per share) | $ 2.93 | $ 2.95 | $ 2.11 | ||||||||
Net income per share – diluted (in dollars per share) | $ 2.87 | $ 2.89 | $ 2.08 | ||||||||
Shares used in computing net income per share: | |||||||||||
Basic (in shares) | 405.5 | 422.3 | 440.6 | ||||||||
Diluted (in shares) | 413.7 | 431.3 | 447.8 | ||||||||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Revenue: | |||||||||||
Processing and services | $ (26) | ||||||||||
Product | (24) | ||||||||||
Total revenue | (50) | ||||||||||
Expenses: | |||||||||||
Cost of processing and services | 3 | ||||||||||
Cost of product | (2) | ||||||||||
Selling, general and administrative | 16 | ||||||||||
(Gain) loss on sale of business | (3) | ||||||||||
Total expenses | 14 | ||||||||||
Operating income | (64) | ||||||||||
Interest expense | 0 | ||||||||||
Loss on early debt extinguishment | 0 | ||||||||||
Non-operating income | (1) | ||||||||||
Income from continuing operations before income taxes and income from investments in unconsolidated affiliates | (65) | ||||||||||
Income tax provision | 14 | ||||||||||
Income from investments in unconsolidated affiliates | 0 | ||||||||||
Net income | $ (51) | ||||||||||
Net income per share – basic (in dollars per share) | $ (0.13) | ||||||||||
Net income per share – diluted (in dollars per share) | $ (0.12) | ||||||||||
Shares used in computing net income per share: | |||||||||||
Basic (in shares) | 0 | ||||||||||
Diluted (in shares) | 0 | ||||||||||
Balances without adoption of ASC 606 | |||||||||||
Revenue: | |||||||||||
Processing and services | $ 4,949 | ||||||||||
Product | 824 | ||||||||||
Total revenue | 5,773 | ||||||||||
Expenses: | |||||||||||
Cost of processing and services | 2,327 | ||||||||||
Cost of product | 743 | ||||||||||
Selling, general and administrative | 1,244 | ||||||||||
(Gain) loss on sale of business | (230) | ||||||||||
Total expenses | 4,084 | ||||||||||
Operating income | 1,689 | ||||||||||
Interest expense | (193) | ||||||||||
Loss on early debt extinguishment | (14) | ||||||||||
Non-operating income | 8 | ||||||||||
Income from continuing operations before income taxes and income from investments in unconsolidated affiliates | 1,490 | ||||||||||
Income tax provision | (364) | ||||||||||
Income from investments in unconsolidated affiliates | 10 | ||||||||||
Net income | $ 1,136 | ||||||||||
Net income per share – basic (in dollars per share) | $ 2.80 | ||||||||||
Net income per share – diluted (in dollars per share) | $ 2.75 | ||||||||||
Shares used in computing net income per share: | |||||||||||
Basic (in shares) | 405.5 | ||||||||||
Diluted (in shares) | 413.7 |
Revenue Recognition - Impacts_2
Revenue Recognition - Impacts of ASC 606 on Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income | $ 286 | $ 227 | $ 251 | $ 423 | $ 546 | $ 232 | $ 221 | $ 247 | $ 1,187 | $ 1,246 | $ 930 |
Fair market value adjustment on cash flow hedges, net of income tax benefit of $2 million | (5) | 4 | 0 | ||||||||
Foreign currency translation | (11) | 12 | (9) | ||||||||
Total other comprehensive (loss) income | (13) | 22 | (2) | ||||||||
Comprehensive income | $ 298 | $ 214 | $ 241 | $ 421 | $ 547 | $ 236 | $ 229 | $ 256 | 1,174 | 1,268 | 928 |
Income tax provision on fair market value adjustment on cash flow hedges | (2) | $ 2 | $ 0 | ||||||||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income | (51) | ||||||||||
Fair market value adjustment on cash flow hedges, net of income tax benefit of $2 million | 0 | ||||||||||
Foreign currency translation | 0 | ||||||||||
Total other comprehensive (loss) income | 0 | ||||||||||
Comprehensive income | (51) | ||||||||||
Balances without adoption of ASC 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net income | 1,136 | ||||||||||
Fair market value adjustment on cash flow hedges, net of income tax benefit of $2 million | (5) | ||||||||||
Foreign currency translation | (11) | ||||||||||
Total other comprehensive (loss) income | (13) | ||||||||||
Comprehensive income | 1,123 | ||||||||||
Cost of Services | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | (1) | ||||||||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges, tax | 0 | ||||||||||
Cost of Services | Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | 0 | ||||||||||
Cost of Services | Balances without adoption of ASC 606 | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | (1) | ||||||||||
Interest Expense | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | 4 | ||||||||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges, tax | 2 | ||||||||||
Interest Expense | Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | 0 | ||||||||||
Interest Expense | Balances without adoption of ASC 606 | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | $ 4 |
Revenue Recognition - Impacts_3
Revenue Recognition - Impacts of ASC 606 on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 415 | $ 325 | $ 300 | $ 275 |
Trade accounts receivable, less allowance for doubtful accounts | 1,049 | 997 | ||
Prepaid expenses and other current assets | 760 | 603 | ||
Total current assets | 2,224 | 1,975 | ||
Property and equipment, net | 398 | 390 | ||
Intangible assets, net | 2,143 | 1,882 | ||
Goodwill | 5,702 | 5,590 | 5,373 | |
Contract costs, net | 419 | 84 | ||
Other long-term assets | 376 | 368 | ||
Total assets | 11,262 | 10,289 | 9,743 | |
Liabilities and Shareholders’ Equity | ||||
Accounts payable and accrued expenses | 1,626 | 1,359 | ||
Current maturities of long-term debt | 4 | 3 | ||
Contract liabilities | 380 | |||
Total current liabilities | 2,010 | 1,938 | ||
Long-term debt | 5,955 | 4,897 | ||
Deferred income taxes | 745 | 552 | ||
Long-term contract liabilities | 89 | 54 | ||
Other long-term liabilities | 170 | 117 | ||
Total liabilities | 8,969 | 7,558 | ||
Total shareholders’ equity | 2,293 | 2,731 | $ 2,541 | $ 2,660 |
Total liabilities and shareholders’ equity | 11,262 | 10,289 | ||
Adjustments | Accounting Standards Update 2014-09 | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Trade accounts receivable, less allowance for doubtful accounts | (11) | |||
Prepaid expenses and other current assets | 19 | |||
Total current assets | 8 | |||
Property and equipment, net | 0 | |||
Intangible assets, net | 0 | |||
Goodwill | 0 | |||
Contract costs, net | (339) | |||
Other long-term assets | 102 | |||
Total assets | (229) | |||
Liabilities and Shareholders’ Equity | ||||
Accounts payable and accrued expenses | (11) | |||
Current maturities of long-term debt | 0 | |||
Contract liabilities | 101 | |||
Total current liabilities | 90 | |||
Long-term debt | 0 | |||
Deferred income taxes | (82) | |||
Long-term contract liabilities | 21 | |||
Other long-term liabilities | 0 | |||
Total liabilities | 29 | |||
Total shareholders’ equity | (258) | |||
Total liabilities and shareholders’ equity | (229) | |||
Balances without adoption of ASC 606 | ||||
Assets | ||||
Cash and cash equivalents | 415 | $ 325 | ||
Trade accounts receivable, less allowance for doubtful accounts | 1,038 | |||
Prepaid expenses and other current assets | 779 | |||
Total current assets | 2,232 | |||
Property and equipment, net | 398 | |||
Intangible assets, net | 2,143 | |||
Goodwill | 5,702 | |||
Contract costs, net | 80 | |||
Other long-term assets | 478 | |||
Total assets | 11,033 | |||
Liabilities and Shareholders’ Equity | ||||
Accounts payable and accrued expenses | 1,615 | |||
Current maturities of long-term debt | 4 | |||
Contract liabilities | 481 | |||
Total current liabilities | 2,100 | |||
Long-term debt | 5,955 | |||
Deferred income taxes | 663 | |||
Long-term contract liabilities | 110 | |||
Other long-term liabilities | 170 | |||
Total liabilities | 8,998 | |||
Total shareholders’ equity | 2,035 | |||
Total liabilities and shareholders’ equity | $ 11,033 |
Revenue Recognition - Impacts_4
Revenue Recognition - Impacts of ASC 606 on Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 286 | $ 227 | $ 251 | $ 423 | $ 546 | $ 232 | $ 221 | $ 247 | $ 1,187 | $ 1,246 | $ 930 |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||||||||||
Depreciation and other amortization | 393 | 285 | 263 | ||||||||
Amortization of acquisition-related intangible assets | 163 | 159 | 158 | ||||||||
Share-based compensation | 73 | 63 | 68 | ||||||||
Deferred income taxes | 133 | (247) | 21 | ||||||||
(Gain) loss on sale of business | 0 | $ 2 | $ 3 | (232) | 0 | $ 0 | $ (10) | 0 | (227) | (10) | 0 |
Loss on early debt extinguishment | 14 | 0 | 0 | ||||||||
Income from investments in unconsolidated affiliates | (10) | (32) | (147) | ||||||||
Dividends from unconsolidated affiliates | 2 | 45 | 151 | ||||||||
Non-cash impairment charges | 3 | 18 | 17 | ||||||||
Other operating activities | (10) | (4) | (2) | ||||||||
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Trade accounts receivable | (108) | (75) | (88) | ||||||||
Prepaid expenses and other assets | (6) | (37) | (64) | ||||||||
Contract costs | (137) | (29) | (14) | ||||||||
Accounts payable and other liabilities | 116 | 54 | 172 | ||||||||
Contract liabilities | (34) | 61 | 17 | ||||||||
Net cash provided by operating activities from continuing operations | 1,552 | 1,483 | 1,431 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures, including capitalization of software costs | (360) | (287) | (290) | ||||||||
Proceeds from sale of businesses | 419 | 17 | 0 | ||||||||
Payments for acquisitions of businesses, net of cash acquired | (712) | (384) | (265) | ||||||||
Purchases of investments | (3) | (10) | (1) | ||||||||
Other investing activities | (7) | 7 | 2 | ||||||||
Net cash used in investing activities from continuing operations | (663) | (657) | (554) | ||||||||
Cash flows from financing activities: | |||||||||||
Debt proceeds | 5,039 | 2,310 | 2,126 | ||||||||
Debt repayments, including redemption and other costs | (4,005) | ||||||||||
Proceeds from issuance of treasury stock | 75 | 78 | 79 | ||||||||
Purchases of treasury stock, including employee shares withheld for tax obligations | (1,946) | ||||||||||
Other financing activities | (5) | 0 | 0 | ||||||||
Net cash used in financing activities from continuing operations | (842) | (820) | (852) | ||||||||
Net change in cash and cash equivalents from continuing operations | 47 | 6 | 25 | ||||||||
Net change in cash and cash equivalents from discontinued operations | 43 | 19 | 0 | ||||||||
Cash and cash equivalents, beginning balance | 325 | $ 300 | 325 | 300 | 275 | ||||||
Cash and cash equivalents, ending balance | 415 | 325 | 415 | 325 | 300 | ||||||
Discontinued operations cash flow information: | |||||||||||
Net cash (used in) provided by operating activities | (7) | 19 | 0 | ||||||||
Net cash provided by investing activities | 50 | 0 | 0 | ||||||||
Net change in cash and cash equivalents from discontinued operations | 43 | 19 | $ 0 | ||||||||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | (51) | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||||||||||
Depreciation and other amortization | (74) | ||||||||||
Amortization of acquisition-related intangible assets | 0 | ||||||||||
Share-based compensation | 0 | ||||||||||
Deferred income taxes | (14) | ||||||||||
(Gain) loss on sale of business | (3) | ||||||||||
Loss on early debt extinguishment | 0 | ||||||||||
Income from investments in unconsolidated affiliates | 0 | ||||||||||
Dividends from unconsolidated affiliates | 0 | ||||||||||
Non-cash impairment charges | 0 | ||||||||||
Other operating activities | 0 | ||||||||||
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Trade accounts receivable | 31 | ||||||||||
Prepaid expenses and other assets | (2) | ||||||||||
Contract costs | 98 | ||||||||||
Accounts payable and other liabilities | (4) | ||||||||||
Contract liabilities | 19 | ||||||||||
Net cash provided by operating activities from continuing operations | 0 | ||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures, including capitalization of software costs | 0 | ||||||||||
Proceeds from sale of businesses | 0 | ||||||||||
Payments for acquisitions of businesses, net of cash acquired | 0 | ||||||||||
Purchases of investments | 0 | ||||||||||
Other investing activities | 0 | ||||||||||
Net cash used in investing activities from continuing operations | 0 | ||||||||||
Cash flows from financing activities: | |||||||||||
Debt proceeds | 0 | ||||||||||
Debt repayments, including redemption and other costs | 0 | ||||||||||
Proceeds from issuance of treasury stock | 0 | ||||||||||
Purchases of treasury stock, including employee shares withheld for tax obligations | 0 | ||||||||||
Other financing activities | 0 | ||||||||||
Net cash used in financing activities from continuing operations | 0 | ||||||||||
Net change in cash and cash equivalents from continuing operations | 0 | ||||||||||
Net change in cash and cash equivalents from discontinued operations | 0 | ||||||||||
Cash and cash equivalents, beginning balance | 0 | 0 | |||||||||
Cash and cash equivalents, ending balance | 0 | 0 | 0 | 0 | |||||||
Discontinued operations cash flow information: | |||||||||||
Net cash (used in) provided by operating activities | 0 | ||||||||||
Net cash provided by investing activities | 0 | ||||||||||
Net change in cash and cash equivalents from discontinued operations | 0 | ||||||||||
Balances without adoption of ASC 606 | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 1,136 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||||||||||
Depreciation and other amortization | 319 | ||||||||||
Amortization of acquisition-related intangible assets | 163 | ||||||||||
Share-based compensation | 73 | ||||||||||
Deferred income taxes | 119 | ||||||||||
(Gain) loss on sale of business | (230) | ||||||||||
Loss on early debt extinguishment | 14 | ||||||||||
Income from investments in unconsolidated affiliates | (10) | ||||||||||
Dividends from unconsolidated affiliates | 2 | ||||||||||
Non-cash impairment charges | 3 | ||||||||||
Other operating activities | (10) | ||||||||||
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Trade accounts receivable | (77) | ||||||||||
Prepaid expenses and other assets | (8) | ||||||||||
Contract costs | (39) | ||||||||||
Accounts payable and other liabilities | 112 | ||||||||||
Contract liabilities | (15) | ||||||||||
Net cash provided by operating activities from continuing operations | 1,552 | ||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures, including capitalization of software costs | (360) | ||||||||||
Proceeds from sale of businesses | 419 | ||||||||||
Payments for acquisitions of businesses, net of cash acquired | (712) | ||||||||||
Purchases of investments | (3) | ||||||||||
Other investing activities | (7) | ||||||||||
Net cash used in investing activities from continuing operations | (663) | ||||||||||
Cash flows from financing activities: | |||||||||||
Debt proceeds | 5,039 | ||||||||||
Debt repayments, including redemption and other costs | (4,005) | ||||||||||
Proceeds from issuance of treasury stock | 75 | ||||||||||
Purchases of treasury stock, including employee shares withheld for tax obligations | (1,946) | ||||||||||
Other financing activities | (5) | ||||||||||
Net cash used in financing activities from continuing operations | (842) | ||||||||||
Net change in cash and cash equivalents from continuing operations | 47 | ||||||||||
Net change in cash and cash equivalents from discontinued operations | 43 | ||||||||||
Cash and cash equivalents, beginning balance | $ 325 | 325 | |||||||||
Cash and cash equivalents, ending balance | $ 415 | $ 325 | 415 | $ 325 | |||||||
Discontinued operations cash flow information: | |||||||||||
Net cash (used in) provided by operating activities | (7) | ||||||||||
Net cash provided by investing activities | 50 | ||||||||||
Net change in cash and cash equivalents from discontinued operations | $ 43 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Details) £ in Millions, $ in Millions | Oct. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)acquisitions | Dec. 31, 2016USD ($)acquisitions | Jan. 10, 2018USD ($) | Jan. 10, 2018GBP (£) | May 11, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Payments for acquisitions of businesses | $ 384 | |||||||
Earn-out provisions, fair value | $ 15 | |||||||
Revenue of acquiree since acquisition date | $ 29 | |||||||
Operating income of acquiree since acquisition date | 6 | |||||||
Acquired intangible asset amortization | 4 | |||||||
Number of acquisitions | acquisitions | 4 | 2 | ||||||
Cash acquired from acquisitions | $ 33 | |||||||
Intangible assets | $ 353 | 163 | ||||||
Goodwill | 5,702 | 5,590 | $ 5,373 | |||||
Other identifiable net assets | 19 | |||||||
Assets held for sale | 0 | 50 | ||||||
Deferred tax liabilities | $ 20 | |||||||
Goodwill, expected to be tax deductible | 70 | |||||||
Weighted-Average Useful Life | 15 years | 12 years | ||||||
Proceeds from sale of business | $ 419 | 17 | 0 | |||||
Discontinued Operations, Disposed of by Sale | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration from sale of business | $ 50 | £ 37 | $ 17 | |||||
Gain from sale of business | $ 10 | |||||||
Tax expense from sale of business | $ 5 | |||||||
Customer related intangible assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 350 | $ 92 | ||||||
Weighted-Average Useful Life | 15 years | 15 years | ||||||
Acquired software and technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 71 | |||||||
Weighted-Average Useful Life | 7 years | |||||||
Trade names | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 3 | |||||||
Weighted-Average Useful Life | 8 years | |||||||
Elan Financial Services | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments for acquisitions of businesses | $ 660 | |||||||
Cash purchase price | 691 | |||||||
Working capital adjustments | 57 | |||||||
Earn-out provisions, fair value | 12 | $ 12 | ||||||
Future payments under a transition services agreement | 14 | $ 12 | ||||||
Transition services agreement term | 2 years | |||||||
Goodwill | $ 240 | |||||||
Series of Individually Immaterial Business Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash purchase price | 265 | |||||||
Intangible assets | 80 | |||||||
Goodwill | $ 217 | 173 | ||||||
Other identifiable net assets | $ 12 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,702 | $ 5,590 | $ 5,373 | |
Elan Financial Services | ||||
Business Acquisition [Line Items] | ||||
Trade accounts receivable | $ 20 | |||
Prepaid expenses and other current assets | 94 | |||
Property and equipment | 9 | |||
Intangible assets | 353 | |||
Goodwill | 240 | |||
Accounts payable and other current liabilities | (56) | |||
Total purchase price | $ 660 |
Discontinued Operations (Detail
Discontinued Operations (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 10, 2018USD ($) | Jan. 10, 2018GBP (£) | May 11, 2017USD ($) | |
Discontinued Operations, Held-for-sale or Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income from discontinued operations | $ 19 | ||||
Income from discontinued operations, tax | $ (7) | $ (7) | |||
Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration from sale of business | $ 50 | £ 37 | $ 17 | ||
Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Discontinued operation, corresponding assets | $ 50 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliate (Details) - USD ($) | Mar. 29, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 28, 2018 |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Proceeds from sale of businesses | $ 419,000,000 | $ 17,000,000 | $ 0 | |||||||||||
Gain on sale of businesses | $ 0 | $ (2,000,000) | $ (3,000,000) | $ 232,000,000 | $ 0 | $ 0 | $ 10,000,000 | $ 0 | 227,000,000 | 10,000,000 | 0 | |||
Other long-term liabilities | $ 170,000,000 | 117,000,000 | 170,000,000 | 117,000,000 | ||||||||||
Non-operating income | 9,000,000 | |||||||||||||
Processing and services | 4,975,000,000 | 4,833,000,000 | 4,625,000,000 | |||||||||||
Dividend from unconsolidated affiliate that represents a return on investment | 2,000,000 | 45,000,000 | 151,000,000 | |||||||||||
Excess cash dividend recorded as income | $ 10,000,000 | 32,000,000 | 147,000,000 | |||||||||||
StoneRiver Group L.P. | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Percentage of interest owned in unconsolidated affiliate | 49.00% | 49.00% | ||||||||||||
Investment in unconsolidated affiliate | $ 0 | $ 0 | $ 0 | 0 | ||||||||||
Dividend from unconsolidated affiliate that represents a return on investment | $ 140,000,000 | 2,000,000 | 45,000,000 | |||||||||||
Realized gain on sale of a business | 26,000,000 | 190,000,000 | 151,000,000 | |||||||||||
Realized gain on sale of a business, tax | $ 9,000,000 | 54,000,000 | ||||||||||||
Excess cash dividend recorded as income | 6,000,000 | |||||||||||||
Excess cash dividend recorded as income, tax | 2,000,000 | |||||||||||||
Impairment loss | 44,000,000 | |||||||||||||
Gain on sale of business interest, net of impairment loss | $ 146,000,000 | |||||||||||||
Financial | Fiserv Automotive Solutions, LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Controlling interest sold | 55.00% | |||||||||||||
Financial | Fiserv LS LLC | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Controlling interest sold | 55.00% | |||||||||||||
Financial | Lending Solutions Business | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Proceeds from sale of businesses | $ 419,000,000 | |||||||||||||
Gain on sale of businesses, tax | 77,000,000 | |||||||||||||
Remeasurement of retained interests | $ 124,000,000 | |||||||||||||
Percentage of interest owned in unconsolidated affiliate | 45.00% | |||||||||||||
Gain contingency, unrecorded (up to) | $ 20,000,000 | |||||||||||||
Investment in unconsolidated affiliate | 65,000,000 | 65,000,000 | ||||||||||||
Other long-term liabilities | $ 34,000,000 | 34,000,000 | ||||||||||||
Non-operating income | 5,000,000 | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||||||||||
Line of Credit | Variable-Rate Term Loan Facilities Due March 2023 | Term Loan Facilities | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 350,000,000 | |||||||||||||
Line of Credit | Variable-Rate Revolving Credit Facilities Due March 2023 | Revolving Credit Facility | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 35,000,000 | |||||||||||||
Affiliated Entity | Financial | Lending Solutions Business | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Processing and services | 30,000,000 | |||||||||||||
Affiliated Entity | Financial | Sales Revenue, Services, Net | Lending Solutions Business | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Processing and services | 28,000,000 | |||||||||||||
Corporate and Other | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Processing and services | $ 43,000,000 | $ 10,000,000 | $ 6,000,000 | |||||||||||
Corporate and Other | Lending Solutions Business | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Gain on sale of businesses | $ 227,000,000 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Other borrowings | $ 9 | $ 9 | ||
Total debt | 5,959 | 4,900 | ||
Less: current maturities | (4) | (3) | ||
Long-term debt | 5,955 | 4,897 | ||
Senior notes | 2.7% senior notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 848 | 846 | ||
Interest rate | 2.70% | 2.70% | ||
Senior notes | 4.75% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 399 | 398 | ||
Interest rate | 4.75% | 4.75% | ||
Senior notes | 3.5% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 697 | 696 | ||
Interest rate | 3.50% | 3.50% | ||
Senior notes | 3.8% senior notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 992 | 0 | ||
Interest rate | 3.80% | 3.80% | ||
Senior notes | 3.85% senior notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 895 | 894 | ||
Interest rate | 3.85% | 3.85% | ||
Senior notes | 4.2% senior notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 990 | 0 | ||
Interest rate | 4.20% | 4.20% | ||
Senior notes | 4.625% senior notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 449 | ||
Interest rate | 4.625% | 4.625% | 4.625% | |
Term loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | $ 540 | ||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,129 | $ 1,068 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | Feb. 06, 2019 | Sep. 26, 2018USD ($) | Oct. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 15, 2019USD ($) |
Debt Disclosure [Abstract] | ||||||||
Fair value of total debt | $ 6,000,000,000 | $ 5,000,000,000 | ||||||
Debt Instrument [Line Items] | ||||||||
Loss on early debt extinguishment | $ 14,000,000 | $ 0 | $ 0 | |||||
Term loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Repaid debt | $ 540,000,000 | |||||||
Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 2,000,000,000 | |||||||
Interest rate increase in the event the Company's credit rating is downgraded below investment grade (as percent) | 2.00% | |||||||
Redeemed debt | $ 246,000,000 | |||||||
Senior notes | 3.8% senior notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 1,000,000,000 | |||||||
Interest rate | 3.80% | 3.80% | ||||||
Senior notes | 4.2% senior notes due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 1,000,000,000 | |||||||
Interest rate | 4.20% | 4.20% | ||||||
Senior notes | 2.7% senior notes due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 2.70% | 2.70% | ||||||
Senior notes | 3.85% senior notes due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.85% | 3.85% | ||||||
Senior notes | 4.625% senior notes due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 450,000,000 | |||||||
Interest rate | 4.625% | 4.625% | 4.625% | |||||
Redeemed debt | $ 204,000,000 | |||||||
Loss on early debt extinguishment | $ 14,000,000 | |||||||
Senior notes | 3.5% senior notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.50% | 3.50% | ||||||
Senior notes | 4.75% senior notes due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.75% | 4.75% | ||||||
Term loan and senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 25,000,000 | $ 14,000,000 | ||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit with a syndicate of banks | $ 2,000,000,000 | |||||||
Weighted average variable interest rate | 3.51% | |||||||
Consolidated indebtedness to consolidated net earnings limit | 3.5 | |||||||
Consolidated net earnings to consolidated interest expense | 3 | |||||||
Repaid debt | $ 1,100,000,000 | |||||||
Debt issuance costs | $ 5,000,000 | $ 3,000,000 | ||||||
Subsequent Event | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit, increase limit | $ 1,500,000,000 | |||||||
Subsequent Event | Term Loan Facility | Line of Credit | Senior Unsecured Term Loan Facility, Loans With Three Year Maturity | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit with a syndicate of banks | $ 1,500,000,000 | |||||||
Debt Instrument, Option, One | Subsequent Event | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Consolidated indebtedness to consolidated net earnings limit | 4 | |||||||
Debt Instrument, Option, Two | Subsequent Event | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Consolidated indebtedness to consolidated net earnings limit | 4.5 |
Long-Term Debt - Annual Maturit
Long-Term Debt - Annual Maturities of Total Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 4 | |
2,020 | 851 | |
2,021 | 401 | |
2,022 | 697 | |
2,023 | 2,121 | |
Thereafter | 1,885 | |
Total debt | $ 5,959 | $ 4,900 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal effect | 3.20% | 2.30% | 2.90% |
Unconsolidated affiliate tax | 0.10% | 0.90% | 4.20% |
Tax expense (benefit) due to federal tax reform | 1.20% | (20.30%) | 0.00% |
Excess tax benefit from share-based awards | (2.20%) | (3.60%) | 0.00% |
Sale of business | 1.30% | 0.00% | 0.00% |
Domestic production activities deduction | (0.00%) | (2.00%) | (3.00%) |
Other, net | (0.30%) | (0.70%) | (0.50%) |
Effective income tax rate | 24.30% | 11.60% | 38.60% |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 189 | $ 342 | $ 402 |
State | 39 | 44 | 53 |
Foreign | 17 | 19 | 16 |
Current income tax provision | 245 | 405 | 471 |
Deferred: | |||
Federal | 110 | (250) | 21 |
State | 24 | 3 | 5 |
Foreign | (1) | 0 | (5) |
Deferred income tax provision | 133 | (247) | 21 |
Income tax provision | $ 378 | $ 158 | $ 492 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Accrued expenses | $ 74 | $ 39 |
Interest rate hedge contracts | 5 | 9 |
Share-based compensation | 43 | 40 |
Net operating loss and credit carry-forwards | 131 | 131 |
Deferred revenue | 11 | 17 |
Other | 14 | 7 |
Subtotal | 278 | 243 |
Valuation allowance | (101) | (103) |
Total deferred tax assets | 177 | 140 |
Capitalized software development costs | (129) | (117) |
Intangible assets | (437) | (455) |
Property and equipment | (66) | (49) |
Capitalized commissions | (80) | 0 |
Investment in joint ventures | (78) | 0 |
Other | (112) | (48) |
Total deferred tax liabilities | (902) | (669) |
Total | $ (725) | $ (529) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities on Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Noncurrent assets | $ 20 | $ 23 |
Noncurrent liabilities | (745) | (552) |
Total | $ (725) | $ (529) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits - Beginning of year | $ 42 | $ 45 | $ 54 |
Increases for tax positions taken during the current year | 3 | 11 | 9 |
Increases for tax positions taken in prior years | 20 | 2 | 1 |
Decreases for tax positions taken in prior years | (8) | (15) | (15) |
Decreases for settlements | 0 | (1) | (2) |
Lapse of the statute of limitations | (8) | 0 | (2) |
Unrecognized tax benefits - End of year | $ 49 | $ 42 | $ 45 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||||
Valuation allowance, decrease | $ 2 | ||||
Valuation allowance | $ 103 | 101 | $ 103 | ||
Income tax provision from change in valuation allowance | 1 | ||||
Tax Act, provisional income tax benefit | 275 | 275 | |||
Tax Act, measurement period adjustment, tax expense | $ 19 | 19 | |||
Unrecognized tax benefits that would impact effective tax rate | 35 | ||||
Expected significant change in unrecognized tax benefits | 3 | ||||
Interest expense and penalties | 1 | 1 | $ 1 | ||
Accrued interest expense and penalties | $ 3 | 4 | $ 3 | ||
Federal | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carry-forwards | 27 | ||||
State | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carry-forwards | 479 | ||||
Foreign tax authority | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carry-forwards | 42 | ||||
Net expiring and not expiring operating loss carry-forwards | $ 465 |
Employee Stock and Savings Pl_3
Employee Stock and Savings Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 73 | $ 63 | $ 68 |
Income tax benefits from share-based compensation | 13 | $ 21 | $ 23 |
Unrecognized compensation cost | $ 67 | ||
Weighted-average period unrecognized compensation cost will be recognized | 2 years 3 months 18 days | ||
Weighted-average estimated fair value per share of stock options granted (in dollars per share) | $ 22.48 | $ 18.76 | $ 15.74 |
Share-based awards available for grant (in shares) | 35,500,000 | ||
Expenses for company contribution under plans | $ 44 | $ 44 | $ 42 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Period that awards will expire | 10 years | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee purchase percentage of the closing price of common stock | 85.00% | ||
Compensation expense recognized related to discount on purchase date (as a percent) | 15.00% | ||
Share-based awards available for grant (in shares) | 25,300,000 | ||
Shares issued under equity plan | 700,000 | 800,000 | 900,000 |
Annual increase in number of shares available for future issue | 4,000,000 | ||
Annual increase in number of shares available for future issue as percentage of common stock outstanding | 1.00% |
Employee Stock and Savings Pl_4
Employee Stock and Savings Plans - Schedule of Estimation Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected life | 6 years 3 months 18 days | 6 years 3 months | 6 years 4 months 24 days |
Average risk-free interest rate | 2.20% | 2.20% | 1.90% |
Expected volatility (as a percent) | 28.30% | 28.90% | 29.30% |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Employee Stock and Savings Pl_5
Employee Stock and Savings Plans - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Shares | |
Stock options outstanding - balance at beginning of period (in shares) | shares | 13,791 |
Granted (in shares) | shares | 1,283 |
Forfeited (in shares) | shares | (332) |
Exercised (in shares) | shares | (2,690) |
Stock options outstanding - balance at end of period (in shares) | shares | 12,052 |
Stock options exercisable (in shares) | shares | 9,319 |
Weighted- Average Exercise Price | |
Stock options outstanding - balance at beginning of period (in dollars per share) | $ / shares | $ 28.17 |
Granted (in dollars per share) | $ / shares | 70.11 |
Forfeited (in dollars per share) | $ / shares | 57.65 |
Exercised (in dollars per share) | $ / shares | 18.62 |
Stock options outstanding - balance at end of period (in dollars per share) | $ / shares | 33.96 |
Stock options exercisable (in dollars per share) | $ / shares | $ 26.20 |
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Weighted-Average Remaining Contractual Term, Stock options outstanding | 5 years 2 months 12 days |
Weighted-Average Remaining Contractual Term, Stock options exercisable | 4 years 3 months 18 days |
Aggregate Intrinsic Value, Stock options outstanding | $ | $ 477 |
Aggregate Intrinsic Value, Stock options exercisable | $ | $ 441 |
Employee Stock and Savings Pl_6
Employee Stock and Savings Plans - Summary of Restricted Stock Unit and Performance Stock Unit Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted stock units | |
Shares | |
Restricted stock units - Balance at beginning of period (in shares) | shares | 1,942 |
Granted (in shares) | shares | 569 |
Forfeited (in shares) | shares | (173) |
Vested (in shares) | shares | (517) |
Restricted stock units - Balance at end of period (in shares) | shares | 1,821 |
Weighted- Average Grant Date Fair Value | |
Restricted stock units - Balance at beginning of period (in dollars per share) | $ / shares | $ 44.35 |
Granted (in dollars per share) | $ / shares | 71.13 |
Forfeited (in dollars per share) | $ / shares | 54.72 |
Vested (in dollars per share) | $ / shares | 39.03 |
Restricted stock units - Balance at end of period (in dollars per share) | $ / shares | $ 53.22 |
Performance Shares | |
Shares | |
Restricted stock units - Balance at beginning of period (in shares) | shares | 402 |
Granted (in shares) | shares | 164 |
Forfeited (in shares) | shares | (42) |
Vested (in shares) | shares | 0 |
Restricted stock units - Balance at end of period (in shares) | shares | 524 |
Weighted- Average Grant Date Fair Value | |
Restricted stock units - Balance at beginning of period (in dollars per share) | $ / shares | $ 52.16 |
Granted (in dollars per share) | $ / shares | 75.40 |
Forfeited (in dollars per share) | $ / shares | 55.42 |
Vested (in dollars per share) | $ / shares | 0 |
Restricted stock units - Balance at end of period (in dollars per share) | $ / shares | $ 57.60 |
Employee Stock and Savings Pl_7
Employee Stock and Savings Plans - Schedule of Additional Information Related to Stock Option and Restricted Stock Unit Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total intrinsic value of stock options exercised | $ 147 | $ 116 | $ 113 |
Fair value of restricted stock units vested | 37 | 61 | 58 |
Income tax benefit from stock options exercised and restricted stock units vested | 43 | 66 | 62 |
Cash received from stock options exercised | $ 29 | $ 36 | $ 39 |
Leases, Commitments and Conti_3
Leases, Commitments and Contingencies - Schedule of Operating Lease Minimum Rental Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 94 |
2,019 | 75 |
2,020 | 62 |
2,021 | 51 |
2,022 | 40 |
Thereafter | 108 |
Total | $ 430 |
Leases, Commitments and Conti_4
Leases, Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 118 | $ 126 | $ 117 |
Subscriber funds | $ 2,100 |
Business Segment Information -
Business Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | Mar. 29, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||||||||||||
Processing and services revenue | $ 4,975 | $ 4,833 | $ 4,625 | |||||||||
Product revenue | 848 | 863 | 880 | |||||||||
Total revenue | $ 1,551 | $ 1,412 | $ 1,420 | $ 1,440 | $ 1,516 | $ 1,400 | $ 1,386 | $ 1,394 | 5,823 | 5,696 | 5,505 | |
Operating income | 431 | 356 | 358 | 608 | 425 | 370 | 372 | 365 | 1,753 | 1,532 | 1,445 | |
Total assets | 11,262 | 10,289 | 11,262 | 10,289 | 9,743 | |||||||
Capital expenditures | 360 | 287 | 290 | |||||||||
Depreciation and amortization expense | 556 | 444 | 421 | |||||||||
Gain on sale of businesses | 0 | $ (2) | $ (3) | $ 232 | 0 | $ 0 | $ 10 | $ 0 | 227 | 10 | 0 | |
Operating segments | Payments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Processing and services revenue | 2,728 | 2,476 | 2,334 | |||||||||
Product revenue | 739 | 758 | 756 | |||||||||
Total revenue | 3,467 | 3,234 | 3,090 | |||||||||
Operating income | 1,122 | 1,034 | 943 | |||||||||
Total assets | 7,622 | 6,596 | 7,622 | 6,596 | 6,143 | |||||||
Capital expenditures | 239 | 182 | 161 | |||||||||
Depreciation and amortization expense | 225 | 169 | 141 | |||||||||
Operating segments | Financial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Processing and services revenue | 2,204 | 2,347 | 2,285 | |||||||||
Product revenue | 191 | 183 | 192 | |||||||||
Total revenue | 2,395 | 2,530 | 2,477 | |||||||||
Operating income | 798 | 849 | 823 | |||||||||
Total assets | 3,240 | 3,309 | 3,240 | 3,309 | 3,287 | |||||||
Capital expenditures | 115 | 95 | 125 | |||||||||
Depreciation and amortization expense | 145 | 92 | 96 | |||||||||
Corporate and Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Processing and services revenue | 43 | 10 | 6 | |||||||||
Product revenue | (82) | (78) | (68) | |||||||||
Total revenue | (39) | (68) | (62) | |||||||||
Operating income | (167) | (351) | (321) | |||||||||
Total assets | $ 400 | 384 | 400 | 384 | 313 | |||||||
Capital expenditures | 6 | 10 | 4 | |||||||||
Depreciation and amortization expense | $ 186 | 183 | $ 184 | |||||||||
Corporate and Other | Discontinued Operations, Held-for-sale | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total assets | $ 50 | $ 50 | ||||||||||
Lending Solutions Business | Corporate and Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gain on sale of businesses | $ 227 | |||||||||||
Fiserv Automotive Solutions, LLC | Financial | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Controlling interest sold | 55.00% |
Business Segment Information _2
Business Segment Information - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | Geographic Concentration Risk | Foreign tax authority | |||
Segment Reporting Information [Line Items] | |||
Percentage of concentration risk | 6.00% | 5.00% | 5.00% |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) $ / shares in Units, $ in Millions | Feb. 21, 2018 | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Total revenue | $ 1,551 | $ 1,412 | $ 1,420 | $ 1,440 | $ 1,516 | $ 1,400 | $ 1,386 | $ 1,394 | $ 5,823 | $ 5,696 | $ 5,505 | |
Cost of processing and services | 628 | 568 | 560 | 568 | 576 | 572 | 573 | 570 | 2,324 | 2,291 | 2,212 | |
Cost of product | 194 | 181 | 179 | 191 | 202 | 174 | 175 | 182 | 745 | 733 | 747 | |
Selling, general and administrative expenses | 298 | 305 | 320 | 305 | 313 | 284 | 276 | 277 | 1,228 | 1,150 | 1,101 | |
(Gain) loss on sale of business | 0 | 2 | 3 | (232) | 0 | 0 | (10) | 0 | (227) | (10) | 0 | |
Total expenses | 1,120 | 1,056 | 1,062 | 832 | 1,091 | 1,030 | 1,014 | 1,029 | 4,070 | 4,164 | 4,060 | |
Operating income | 431 | 356 | 358 | 608 | 425 | 370 | 372 | 365 | 1,753 | 1,532 | 1,445 | |
Income from continuing operations | 286 | 227 | 251 | 423 | 532 | 232 | 221 | 247 | 1,187 | 1,232 | 930 | |
Net income | 286 | 227 | 251 | 423 | 546 | 232 | 221 | 247 | 1,187 | 1,246 | 930 | |
Comprehensive income | $ 298 | $ 214 | $ 241 | $ 421 | $ 547 | $ 236 | $ 229 | $ 256 | $ 1,174 | $ 1,268 | $ 928 | |
Net income per share - continuing operations | ||||||||||||
Basic (in dollars per share) | $ / shares | $ 0.72 | $ 0.56 | $ 0.61 | $ 1.02 | $ 1.28 | $ 0.55 | $ 0.52 | $ 0.58 | $ 2.93 | $ 2.92 | $ 2.11 | |
Diluted (in dollars per share) | $ / shares | $ 0.71 | $ 0.55 | $ 0.60 | $ 1 | $ 1.25 | $ 0.54 | $ 0.51 | $ 0.56 | $ 2.87 | $ 2.86 | $ 2.08 | |
Tax Act, measurement period adjustment, tax expense | $ 19 | $ 19 | ||||||||||
Provisional income tax benefit | $ 275 | $ 275 | ||||||||||
Stock split ratio | 2 | 2 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Billions | Feb. 15, 2019 | Jan. 16, 2019 |
First Data | ||
Subsequent Event [Line Items] | ||
Consideration transferred, equity value | $ 22 | |
Line of Credit | Senior Unsecured Term Loan Facility | Term Loan Facility | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 5 | |
Line of Credit | Senior Unsecured Term Loan Facility, Loans With Three Year Maturity | Term Loan Facility | ||
Subsequent Event [Line Items] | ||
Term | 3 years | |
Maximum borrowing capacity | $ 1.5 | |
Line of Credit | Senior Unsecured Term Loan Facility, Loans With Five Year Maturity | Term Loan Facility | ||
Subsequent Event [Line Items] | ||
Term | 5 years | |
Maximum borrowing capacity | $ 3.5 | |
Line of Credit | Senior Unsecured Bridge Term Loan Facility | Bridge Loan | ||
Subsequent Event [Line Items] | ||
Term | 364 days | |
Maximum borrowing capacity | $ 17 | |
Remaining borrowing capacity | $ 12 | |
Debt Instrument, Amortization, Period One | Line of Credit | Senior Unsecured Term Loan Facility | Term Loan Facility | ||
Subsequent Event [Line Items] | ||
Amortization rate | 5.00% | |
Debt Instrument, Amortization, Period Two | Line of Credit | Senior Unsecured Term Loan Facility | Term Loan Facility | ||
Subsequent Event [Line Items] | ||
Amortization rate | 7.50% | |
Debt Instrument, Amortization, Period Three | Line of Credit | Senior Unsecured Term Loan Facility | Term Loan Facility | ||
Subsequent Event [Line Items] | ||
Amortization rate | 10.00% |