Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-38962 | ||
Entity Registrant Name | Fiserv, Inc. | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-1506125 | ||
Entity Address, Address Line One | 255 Fiserv Drive | ||
Entity Address, City or Town | Brookfield, | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53045 | ||
City Area Code | 262 | ||
Local Phone Number | 879-5000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 70,526,209,592 | ||
Entity Common Stock, Shares Outstanding | 652,196,905 | ||
Documents Incorporated by Reference | Part III of this report incorporates information by reference to the registrant’s proxy statement for its 2022 annual meeting of shareholders, which proxy statement will be filed with the Securities and Exchange Commission no later than 120 days after the close of the fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0000798354 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, par value $0.01 per share | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | FISV | ||
Security Exchange Name | NASDAQ | ||
0.375% Senior Notes due 2023 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 0.375% Senior Notes due 2023 | ||
Trading Symbol | FISV23 | ||
Security Exchange Name | NASDAQ | ||
1.125% Senior Notes due 2027 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 1.125% Senior Notes due 2027 | ||
Trading Symbol | FISV27 | ||
Security Exchange Name | NASDAQ | ||
1.625% Senior Notes due 2030 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 1.625% Senior Notes due 2030 | ||
Trading Symbol | FISV30 | ||
Security Exchange Name | NASDAQ | ||
2.250% Senior Notes due 2025 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 2.250% Senior Notes due 2025 | ||
Trading Symbol | FISV25 | ||
Security Exchange Name | NASDAQ | ||
3.000% Senior Notes due 2031 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.000% Senior Notes due 2031 | ||
Trading Symbol | FISV31 | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Milwaukee, Wisconsin |
Auditor Firm ID | 34 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenue: | ||||
Revenue | $ 16,226 | $ 14,852 | $ 10,187 | |
Expenses: | ||||
Selling, general and administrative | 5,810 | 5,652 | 3,284 | |
Gain on sale of businesses | [1] | 0 | (464) | (15) |
Total expenses | 13,938 | 13,000 | 8,578 | |
Operating income | 2,288 | 1,852 | 1,609 | |
Interest expense, net | (693) | (709) | (473) | |
Debt financing activities | 0 | 0 | (47) | |
Other income (expense) | 71 | 28 | (6) | |
Income before income taxes and income from investments in unconsolidated affiliates | 1,666 | 1,171 | 1,083 | |
Income tax provision | (363) | (196) | (198) | |
Net pre-tax gain | [1] | 100 | 0 | 29 |
Net income | [1] | 1,403 | 975 | 914 |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | 69 | 17 | 21 | |
Net income attributable to Fiserv, Inc. | $ 1,334 | $ 958 | $ 893 | |
Net income attributable to Fiserv, Inc. per share – basic (in dollars per share) | $ 2.01 | $ 1.42 | $ 1.74 | |
Net income attributable to Fiserv, Inc. per share – diluted (in dollars per share) | $ 1.99 | $ 1.40 | $ 1.71 | |
Shares used in computing net income attributable to Fiserv, Inc. per share: | ||||
Basic (in shares) | 662.6 | 672.1 | 512.3 | |
Diluted (in shares) | 671.6 | 683.4 | 522.6 | |
Processing and services | ||||
Revenue: | ||||
Revenue | [2] | $ 13,307 | $ 12,215 | $ 8,573 |
Expenses: | ||||
Cost of goods and services sold | 6,084 | 5,841 | 4,016 | |
Product | ||||
Revenue: | ||||
Revenue | 2,919 | 2,637 | 1,614 | |
Expenses: | ||||
Cost of goods and services sold | $ 2,044 | $ 1,971 | $ 1,293 | |
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. | |||
[2] | Includes processing and other fees charged to related party investments accounted for under the equity method of $203 million, $236 million and $112 million for the years ended December 31, 2021, 2020 and 2019, respectively (see Note 20). |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Fees | Equity investments | |||
Processing, administrative service, and other fees | $ 203 | $ 236 | $ 112 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net income | [1] | $ 1,403 | $ 975 | $ 914 |
Other comprehensive income (loss): | ||||
Fair market value adjustment on cash flow hedges, net of income tax (provision) benefit of ($2 million), ($2 million) and $46 million | 6 | 5 | (134) | |
Unrealized gains (losses) on defined benefit pension plans, net of income tax (provision) benefit of ($17 million), $2 million and $1 million | 50 | (6) | (4) | |
Foreign currency translation, net of income tax (see Note 14) | (461) | (186) | 8 | |
Total other comprehensive loss | (397) | (172) | (121) | |
Comprehensive income | 1,006 | 803 | 793 | |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | 69 | 17 | 21 | |
Less: other comprehensive (loss) income attributable to noncontrolling interests | (39) | 35 | (8) | |
Comprehensive income attributable to Fiserv, Inc. | 976 | 751 | 780 | |
Cost of Processing and Services | ||||
Other comprehensive income (loss): | ||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | (8) | (1) | (1) | |
Interest Expense | ||||
Other comprehensive income (loss): | ||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | $ 16 | $ 16 | $ 10 | |
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax (provision) benefit on fair market value adjustment on cash flow hedges | $ (2) | $ (2) | $ 46 |
Income tax benefit on unrealized gain/(loss) on defined benefit plans | 17 | 2 | 1 |
Cost of Processing and Services | |||
Income tax provision (benefit) on reclassification adjustment for net realized gain on cash flow hedges | 2 | 0 | 0 |
Interest Expense | |||
Income tax provision (benefit) on reclassification adjustment for net realized gain on cash flow hedges | $ 5 | $ 5 | $ 3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 835 | $ 906 |
Trade accounts receivable, less allowance for doubtful accounts | 2,860 | 2,482 |
Prepaid expenses and other current assets | 1,523 | 1,310 |
Settlement assets | 13,652 | 11,521 |
Total current assets | 18,870 | 16,219 |
Property and equipment, net | 1,742 | 1,628 |
Intangible assets, net | 14,009 | 15,358 |
Goodwill | 36,433 | 36,322 |
Contract costs, net | 811 | 692 |
Investments in unconsolidated affiliates | 2,561 | 2,756 |
Other long-term assets | 1,823 | 1,644 |
Total assets | 76,249 | 74,619 |
Liabilities and Equity | ||
Accounts payable and accrued expenses | 3,550 | 3,186 |
Short-term and current maturities of long-term debt | 508 | 384 |
Contract liabilities | 585 | 546 |
Settlement obligations | 13,652 | 11,521 |
Total current liabilities | 18,295 | 15,637 |
Long-term debt | 20,729 | 20,300 |
Deferred income taxes | 4,172 | 4,389 |
Long-term contract liabilities | 225 | 187 |
Other long-term liabilities | 878 | 777 |
Total liabilities | 44,299 | 41,290 |
Commitments and Contingencies (see Note 19) | ||
Redeemable Noncontrolling Interests | 278 | 259 |
Fiserv, Inc. Shareholders’ Equity: | ||
Preferred stock, no par value: 25 million shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value: 1,800 million shares authorized; 784 million and 789 million shares issued, respectively | 8 | 8 |
Additional paid-in capital | 22,983 | 23,643 |
Accumulated other comprehensive loss | (745) | (387) |
Retained earnings | 14,846 | 13,441 |
Treasury stock, at cost, 134 million and 121 million shares | (6,140) | (4,375) |
Total Fiserv, Inc. shareholders’ equity | 30,952 | 32,330 |
Noncontrolling interests | 720 | 740 |
Total equity | 31,672 | 33,070 |
Total liabilities and equity | 76,249 | 74,619 |
Customer relationships, net | ||
Assets | ||
Intangible assets, net | 9,991 | 11,603 |
Other intangible assets, net | ||
Assets | ||
Intangible assets, net | $ 4,018 | $ 3,755 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued (in shares) | 784,000,000 | 789,000,000 |
Treasury stock, shares (in shares) | 134,000,000 | 121,000,000 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Revision of Prior Period, Reclassification, Adjustment | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossRevision of Prior Period, Reclassification, Adjustment | Retained Earnings | Retained EarningsRevision of Prior Period, Reclassification, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Noncontrolling Interests | |
Balance at beginning of period (in shares) at Dec. 31, 2018 | 791 | 399 | |||||||||||
Balance at beginning of period at Dec. 31, 2018 | $ 2,293 | $ 8 | $ 1,057 | $ (67) | $ 11,635 | $ (10,340) | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 897 | 893 | 4 | ||||||||||
Shares issued to acquire First Data (in shares) | (286) | ||||||||||||
Shares issued to acquire First Data (see Note 4) | 31,791 | 22,582 | $ 7,478 | 1,731 | |||||||||
Distributions paid to noncontrolling interests | (111) | (111) | |||||||||||
Other comprehensive loss | (121) | (113) | (8) | ||||||||||
Share-based compensation | 229 | 229 | |||||||||||
Shares issued under stock plans (in shares) | (5) | ||||||||||||
Shares issued under stock plans | 10 | (127) | $ 137 | ||||||||||
Purchases of treasury stock (in shares) | 4 | ||||||||||||
Purchases of treasury stock | (393) | $ (393) | |||||||||||
Balance at end of period (in shares) at Dec. 31, 2019 | 791 | 112 | |||||||||||
Balance at end of period at Dec. 31, 2019 | 34,595 | $ (45) | $ 8 | 23,741 | (180) | 12,528 | $ (45) | $ (3,118) | 1,616 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 936 | 958 | (22) | ||||||||||
Measurement period adjustments related to First Data acquisition (see Note 4) | (126) | (126) | |||||||||||
Distributions paid to noncontrolling interests | (37) | (37) | |||||||||||
Net adjustment to noncontrolling interests from dissolution (see Note 4) | (762) | (36) | (726) | ||||||||||
Change in redemption value of redeemable noncontrolling interest (see Note 13) | 0 | ||||||||||||
Other comprehensive loss | (172) | (207) | 35 | ||||||||||
Share-based compensation | 369 | 369 | |||||||||||
Shares issued under stock plans (in shares) | (5) | ||||||||||||
Shares issued under stock plans | (53) | (231) | $ 178 | ||||||||||
Purchases of treasury stock (in shares) | 16 | ||||||||||||
Purchases of treasury stock | (1,635) | $ (1,635) | |||||||||||
Retirement of treasury stock (in shares) | (2) | (2) | |||||||||||
Retirement of treasury stock (see Note 20) | 0 | (200) | $ 200 | ||||||||||
Balance at end of period (in shares) at Dec. 31, 2020 | 789 | 121 | |||||||||||
Balance at end of period at Dec. 31, 2020 | $ 33,070 | $ 8 | 23,643 | (387) | 13,441 | $ (4,375) | 740 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 | ||||||||||||
Net income | $ 1,359 | 1,334 | 25 | ||||||||||
Distributions paid to noncontrolling interests | (6) | (6) | |||||||||||
Change in redemption value of redeemable noncontrolling interest (see Note 13) | (18) | (18) | |||||||||||
Other comprehensive loss | (397) | (358) | |||||||||||
Other comprehensive loss | (326) | (287) | (39) | [1] | |||||||||
Share-based compensation | 239 | 239 | |||||||||||
Shares issued under stock plans (in shares) | (5) | ||||||||||||
Shares issued under stock plans | (81) | (293) | $ 212 | ||||||||||
Purchases of treasury stock (in shares) | 23 | ||||||||||||
Purchases of treasury stock | (2,565) | $ (2,565) | |||||||||||
Retirement of treasury stock (in shares) | (5) | (5) | |||||||||||
Retirement of treasury stock (see Note 20) | 0 | (588) | $ 588 | ||||||||||
Balance at end of period (in shares) at Dec. 31, 2021 | 784 | 134 | |||||||||||
Balance at end of period at Dec. 31, 2021 | $ 31,672 | $ 0 | $ 8 | $ 22,983 | $ (745) | $ (71) | $ 14,846 | $ 71 | $ (6,140) | $ 720 | |||
[1] | The total net income presented in the consolidated statements of equity for the years ended December 31, 2021, 2020 and 2019 is different than the amount presented in the consolidated statements of income due to the net income attributable to redeemable noncontrolling interests of $44 million, $39 million and $17 million, respectively, not included in equity. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income attributable to redeemable noncontrolling interests | $ 44 | $ 39 | $ 17 |
Distributions paid to redeemable noncontrolling interests | 43 | 42 | $ 7 |
Bank Of America | |||
Distributions paid to redeemable noncontrolling interests | $ 13 | $ 25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities: | ||||
Net income | [1] | $ 1,403 | $ 975 | $ 914 |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | ||||
Depreciation and other amortization | [1] | 1,158 | 1,077 | 615 |
Amortization of acquisition-related intangible assets | [1] | 2,038 | 2,133 | 1,036 |
Amortization of financing costs, debt discounts and other | [1] | 52 | 47 | 127 |
Net foreign currency gain on financing activities | [1] | 0 | 0 | (50) |
Share-based compensation | [1] | 239 | 369 | 229 |
Deferred income taxes | [1] | (262) | 71 | 47 |
Gain on sale of businesses | [1] | 0 | (464) | (15) |
Income from investments in unconsolidated affiliates | [1] | (100) | 0 | (29) |
Distributions from unconsolidated affiliates | [1] | 34 | 42 | 23 |
Settlement of interest rate hedge contracts | [1] | 0 | 0 | (183) |
Non-cash impairment charges | [1] | 15 | 124 | 48 |
Other operating activities | [1] | (48) | (16) | (3) |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||||
Trade accounts receivable | [1] | (358) | 320 | (7) |
Prepaid expenses and other assets | [1] | (248) | (167) | (82) |
Contract costs | [1] | (269) | (289) | (212) |
Accounts payable and other liabilities | [1] | 303 | (146) | 238 |
Contract liabilities | [1] | 77 | 71 | 99 |
Net cash provided by operating activities from continuing operations | [1] | 4,034 | 4,147 | 2,795 |
Cash flows from investing activities: | ||||
Capital expenditures, including capitalized software and other intangibles | [1] | (1,160) | (900) | (721) |
Proceeds from sale of businesses | [1] | 0 | 579 | 51 |
Payments for acquisitions of businesses, net of cash acquired and including working capital adjustments | [1] | (848) | (139) | (15,083) |
Distributions from unconsolidated affiliates | [1] | 115 | 109 | 113 |
Purchases of investments | [1] | (256) | (1) | (45) |
Proceeds from sale of investments | [1] | 519 | 11 | 0 |
Other investing activities | [1] | 0 | 0 | 5 |
Net cash used in investing activities from continuing operations | [1] | (1,630) | (341) | (15,680) |
Cash flows from financing activities: | ||||
Debt proceeds | [1] | 6,435 | 8,897 | 20,030 |
Debt repayments | [1] | (7,881) | (10,918) | (5,043) |
Net proceeds from (repayments of) commercial paper and short-term borrowings | [1] | 1,741 | (6) | 0 |
Payments of debt financing, redemption and other costs | [1] | 0 | (16) | (247) |
Proceeds from issuance of treasury stock | [1] | 140 | 133 | 156 |
Purchases of treasury stock, including employee shares withheld for tax obligations | [1] | (2,786) | (1,826) | (561) |
Settlement activity, net | [1] | 711 | 405 | 182 |
Distributions paid to noncontrolling interests and redeemable noncontrolling interests | [1] | (62) | (104) | (118) |
Payment for Contingent Consideration Liability, Financing Activities | [1] | (37) | (18) | (13) |
Other financing activities | [1] | (2) | 22 | (13) |
Net cash (used in) provided by financing activities from continuing operations | [1] | (1,741) | (3,431) | 14,373 |
Effect of exchange rate changes on cash and cash equivalents | [1] | (27) | 16 | 1 |
Net change in cash and cash equivalents | [1] | 636 | 391 | 1,489 |
Net cash flows from discontinued operations | [1] | 0 | 0 | 133 |
Cash and cash equivalents, beginning balance | [1] | 2,569 | 2,178 | 556 |
Cash and cash equivalents, ending balance | [1] | 3,205 | 2,569 | 2,178 |
Discontinued operations cash flow information: | ||||
Net cash provided by investing activities | [1] | 0 | 0 | 133 |
Net cash flows from discontinued operations | [1] | $ 0 | $ 0 | $ 133 |
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 payments and financial services technology solutions to clients worldwide. The Company provides account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover ® cloud-based point-of-sale and business management platform. The Company serves clients around the globe, including merchants, banks, credit unions, other financial institutions and corporate clients. The Company’s reportable segments are Merchant Acceptance (“Acceptance”), Financial Technology (“Fintech”) and Payments and Network (“Payments”). On July 29, 2019, the Company acquired First Data Corporation (“First Data”), a global leader in commerce-enabling technology and solutions for merchants, financial institutions and card issuers, by acquiring 100% of the First Data stock that was issued and outstanding as of the date of acquisition for a total purchase price of $46.5 billion (see Note 4). The consolidated financial statements include the financial results of First Data from the date of acquisition. Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a controlling financial interest. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Control is typically established when ownership and voting interests in an entity are greater than 50%. Investments in which the Company has significant influence but not control are accounted for using the equity method of accounting, for which the Company’s share of net income or loss is reported within income from investments in unconsolidated affiliates and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income. Significant influence over an affiliate’s operations generally coincides with an ownership interest of between 20% and 50%; however, for partnerships and limited liability companies, an ownership interest of between 3% and 50% or board of director representation may also constitute significance influence. The Company maintains a majority controlling financial interest in certain entities, mostly related to consolidated merchant alliances (see Note 20). Noncontrolling interests represent the minority shareholders’ share of the net income or loss and equity in consolidated subsidiaries. The Company’s noncontrolling interests presented in the consolidated statements of income include net income attributable to noncontrolling interests and redeemable noncontrolling interests. Noncontrolling interests are presented as a component of equity in the consolidated balance sheets. Noncontrolling interests that are redeemable upon the occurrence of an event that is not solely within the Company’s control are presented outside of equity and are carried at their estimated redemption value if it exceeds the initial carrying value of the redeemable interest (see Note 13). Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S.”) 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. Risks and Uncertainties Since early 2020, the world has been, and continues to be, impacted by the coronavirus (“COVID-19”) pandemic. The COVID-19 pandemic, and various measures imposed by the governments of many countries, states, cities and other geographic regions to prevent its spread, have negatively impacted global economic and market conditions, including levels of consumer and business spending. Consequently, the Company’s operating performance, primarily within its merchant acquiring and payment-related businesses, which earn transaction-based fees, has been adversely affected, and may continue to be adversely affected, by the economic impact of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company’s future operational and financial performance will depend on, among other matters, the duration and intensity of the pandemic; the level of success of global vaccination efforts; governmental and private sector responses to the pandemic and the impact of such responses on the Company; and the impact of the pandemic on the Company’s employees, clients, vendors, supply chain, operations and sales, all of which are uncertain and difficult to predict. These changing conditions may also affect the estimates and assumptions made by management. Such estimates and assumptions affect, among other things, the valuations of the Company’s long-lived assets, definite-lived intangible assets and equity method investments; the impairment assessment of goodwill; the Company’s deferred tax assets and related valuation allowances; the estimate of current expected credit losses; and certain pension plan assumptions. It is reasonably possible that changes in any assumptions used may result in an impairment or other charge that, if incurred, could have a material adverse impact on the Company’s results of operations, total assets and total equity in the period recognized. Events and changes in circumstances arising subsequent to December 31, 2021, including those resulting from the impacts of the COVID-19 pandemic, will be reflected in management’s estimates for future periods. Revenue Recognition 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. Additional information regarding the Company’s revenue recognition policies is included in Note 3 to the consolidated financial statements. Cash and Cash Equivalents Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost in the consolidated balance sheets, which approximates market value. Cash and cash equivalents that were restricted from use due to regulatory or other requirements are included in other long-term assets in the consolidated balance sheets. Cash and cash equivalents held on behalf of merchants and other payees are included in settlement assets in the consolidated balance sheets. The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows at December 31: (In millions) 2021 2020 2019 Cash and cash equivalents on the consolidated balance sheets $ 835 $ 906 $ 893 Cash and cash equivalents included in settlement assets (see Note 6) 2,361 1,650 1,245 Other restricted cash 9 13 40 Total cash and cash equivalents on the consolidated statements of cash flows $ 3,205 $ 2,569 $ 2,178 The Company revised the consolidated statements of cash flows for the years ended December 31, 2020 and 2019, respectively, to reflect settlement cash and cash equivalents within settlement assets as a component of total cash and cash equivalents on the consolidated statements of cash flows. The components of settlement assets were revised to reflect the settlement cash and cash equivalents held by partner banks of $175 million and $411 million as settlement receivables as of December 31, 2020 and 2019, respectively. The changes in settlement cash and cash equivalents for the years ended December 31, 2020 and 2019, of $405 million and $182 million, respectively, have been included in settlement activity, net within cash flows from financing activities. The consolidated statement of cash flows for the year ended December 31, 2019 reflects the impact of $922 million of acquired settlement cash and cash equivalents relating to the First Data acquisition with the offsetting change included in cash flows from investing activities. 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 $55 million and $48 million at December 31, 2021 and 2020, respectively. Leases The Company maintains certain leasing receivables associated with its point-of-sale terminal leasing businesses. Leasing receivables are included in prepaid expenses and other current assets and other long-term assets in the consolidated balance sheets. Interest income on the Company’s leasing receivables is recognized using the effective interest method, and is included within product revenue in the consolidated statements of income. Initial direct costs incurred to obtain operating leases and other sales-type leases, in which the fair value of the underlying asset is equal to its carrying amount at the lease commencement date, are deferred and recognized over the lease term. Initial direct costs to obtain a sales-type lease are expensed as incurred if the fair value of the underlying asset is different from its carrying amount at the lease commencement date. Additional information regarding the Company’s lease policies is included in Note 11 to the consolidated financial statements. 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 $410 million and $348 million at December 31, 2021 and 2020, respectively. Settlement Assets and Obligations Settlement assets and obligations result from timing differences between collection and fulfillment of payment transactions and collateral amounts held to manage merchant credit risk, primarily associated with the Company’s merchant acquiring services. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners, merchants or directly from consumers. Settlement obligations represent amounts payable to merchants and payees. Certain merchant settlement assets (included in settlement receivables in Note 6) that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership but has the right to use the assets to satisfy the related settlement obligations. The Company records settlement obligations for amounts payable to merchants and for outstanding payment instruments issued to payees that have not yet been presented for settlement. Additional information regarding the Company’s settlement assets and obligations is included in Note 6 to the consolidated financial statements. Allowance for Merchant Credit Losses With respect to the Company’s merchant acquiring business, the Company’s merchant customers have the legal obligation to refund any charges properly reversed by the cardholder. However, in the event the Company is not able to collect the refunded amounts from the merchants, the Company may be liable for the reversed charges. The Company’s risk in this area primarily relates to situations where the cardholder has purchased goods or services to be delivered in the future. The Company requires cash deposits, guarantees, letters of credit or other types of collateral from certain merchants to minimize this obligation. Collateral held by the Company, or held by partner banks for the Company’s benefit, is classified within settlement assets and the obligation to repay the collateral is classified within settlement obligations in the consolidated balance sheets. The Company also utilizes a number of systems and procedures to manage merchant credit risk. Despite these efforts, the Company experiences some level of losses due to merchant defaults. The aggregate merchant credit loss expense, recognized by the Company within cost of processing and services in the consolidated statements of income, was $41 million, $113 million and $40 million for the years ended December 31, 2021, 2020 and 2019, respectively. The amount of collateral available to the Company was $2.2 billion and $1.2 billion at December 31, 2021 and 2020, respectively. The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of merchant collateral. The allowance includes estimated losses from anticipated chargebacks and fraud events that have been incurred on merchants’ payment transactions that have been processed but not yet reported to the Company, which is recorded within accounts payable and accrued expenses in the consolidated balance sheets, as well as estimated losses on refunded amounts to cardholders that have not yet been collected from the merchants, which is recorded within prepaid expenses and other current assets in the consolidated balance sheets. The allowance is based primarily on the Company’s historical experience of credit losses and other relevant factors such as changes in economic conditions or increases in merchant fraud. The aggregate merchant credit loss allowance was $42 million and $59 million at December 31, 2021 and 2020, respectively. Property and Equipment Property and equipment is 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 2021 2020 Land — $ 48 $ 54 Data processing equipment 3 to 5 years 2,302 1,666 Buildings and leasehold improvements 5 to 40 years 512 555 Furniture and equipment 5 to 8 years 372 636 3,234 2,911 Less: Accumulated depreciation (1,492) (1,283) Total $ 1,742 $ 1,628 Depreciation expense for all property and equipment totaled $498 million, $523 million and $247 million in 2021, 2020 and 2019, respectively (see Note 17 for a description of accelerated depreciation under certain finance lease agreements). Intangible Assets Customer related intangible assets represent customer contracts and relationships obtained as part of acquired businesses and are amortized using an accelerated amortization method which corresponds with the customer attrition rates used in the initial valuation of the intangibles over their estimated useful lives, generally ten four eight four Purchased software represents software licenses purchased from third parties and is amortized using the straight-line method over their estimated useful lives, generally three The Company continually develops, maintains and enhances its products and systems. Product development expenditures represented approximately 7%, 6% and 8% of the Company’s total revenue in 2021, 2020 and 2019, respectively. 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 using the straight-line method over their estimated useful lives, generally five years. The Company may, at its discretion, negotiate to pay an independent sales organization (“ISO”) an agreed-upon up-front amount in exchange for the ISO’s surrender of its right to receive commission payments from the Company related to future transactions of the ISO’s referred merchants (“residual buyout”). The amount that the Company pays for these residual buyouts is capitalized and subsequently amortized using the straight-line method over the expected life of the merchant portfolios, generally five The Company also obtains residual buyouts as part of acquired businesses. Additional information regarding the Company’s identifiable intangible assets is included in Note 7 to the consolidated financial statements. Goodwill Goodwill represents the excess of purchase price over the fair value of identifiable 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, which is one level below the Company’s reportable segments. When assessing goodwill for impairment, the Company considers (i) the prior year’s amount of excess fair value over the carrying value of each reporting unit, (ii) the period of time since a reporting unit’s last quantitative test, (iii) the extent a reorganization or disposition changes the composition of one or more of the reporting units and (iv) 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. The Company elected to perform a quantitative test for certain reporting units obtained through the acquisition of First Data and for those that changed in composition, and tested the remainder of its reporting units using a qualitative approach. The Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2021 determined that its goodwill was not impaired as the estimated fair values exceeded the carrying values. However, it is reasonably possible that future developments related to the interest rate environment or the economic impact of the COVID-19 pandemic (such as an increased duration and intensity of the pandemic and/or government-imposed restrictions) or changes in significant assumptions used in the quantitative test on certain of the Company’s businesses acquired and recorded at fair value through the July 2019 acquisition of First Data (such as an increase in risk-adjusted discount rates) could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment. There is no accumulated goodwill impairment for the Company through December 31, 2021. Additional information regarding the Company’s goodwill is included in Note 8 to the consolidated financial statements. Asset Impairment The Company reviews property and equipment, lease right-of-use (“ROU”) assets, 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 reporting date. Recoverability of property and equipment, lease ROU assets, 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 assesses lease ROU assets that are exited in advance of the non-cancellable lease terms by comparing the carrying values of the ROU assets to the discounted cash flows from estimated sublease payments. 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. 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 uses the hierarchy prescribed in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements , and 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 three levels in the hierarchy are as follows: • Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. • Level 2 – Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including but not limited to quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities and observable inputs other than quoted prices such as interest rates or yield curves. • Level 3 – Unobservable inputs reflecting management’s judgments about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Additional information regarding the Company’s fair value measurements is included in Note 10 to the consolidated financial statements. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following at December 31: (In millions) 2021 2020 Trade accounts payable $ 593 $ 437 Client deposits 783 702 Accrued compensation and benefits 392 419 Accrued taxes 154 130 Accrued interest 216 220 Other accrued expenses 1,412 1,278 Total $ 3,550 $ 3,186 Foreign Currency The U.S. dollar is the functional currency of the Company’s U.S.-based businesses and certain foreign-based businesses. Where the functional currency differs from the U.S. dollar, assets and liabilities 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 reporting period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are included in determining net income for the reporting period. The Company has designated its Euro- and British Pound- denominated senior notes and Euro-denominated commercial paper notes as net investment hedges to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro and the British Pound (see Note 14). Accordingly, foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation, net of tax, within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss within the consolidated balance sheets until the sale or complete liquidation of the underlying foreign subsidiaries. Derivatives Derivatives are entered into for periods consistent with related underlying exposures and are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. Changes in the fair value of derivatives designated as a cash flow hedge are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. Employee Benefit Plans The Company maintains frozen defined benefit pension plans covering certain employees in Europe and the U.S. The Company recognizes actuarial gains/losses and prior service cost in the consolidated balance sheets and recognizes changes in these amounts during the year in which changes occur through other comprehensive income (loss). The Company uses various assumptions when computing amounts relating to its defined benefit pension plan obligations and their associated expenses (including the discount rate and the expected rate of return on plan assets). Additional information regarding the Company’s employee benefit plans is included in Note 15 to the consolidated financial statements. Cost of Processing, Services and Product Cost of processing and services consists of costs directly associated with providing services to clients and includes the following: personnel; equipment and data communication; infrastructure costs, including costs to maintain software applications; client support; certain depreciation and amortization; and other operating expenses. Cost of product consists of costs directly associated with the products sold and includes the following: costs of materials, postage and software development; hardware costs (primarily point-of-sale devices); personnel; infrastructure costs; certain depreciation and amortization; and other costs directly associated with product revenue. 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; third-party commissions; advertising and promotional costs; certain depreciation and amortization; and other selling and administrative expenses. Interest Expense, Net Interest expense, net consists of interest expense primarily associated with the Company’s outstanding borrowings and finance lease obligations, as well as interest income primarily associated with the Company’s investment securities. Interest expense, net consisted of the following for the years ended December 31: (In millions) 2021 2020 2019 Interest expense $ 696 $ 716 $ 507 Interest income 3 7 34 Interest expense, net $ 693 $ 709 $ 473 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. Liabilities are established for unrecognized tax benefits, attributable to differences between a tax position taken or expected to be taken in a tax return and the benefit recognized in the financial statements. In establishing a liability for an unrecognized tax benefit, assumptions are made in determining whether, and the extent to which, a tax position will be sustained. A tax position is recognized only when it is more likely than not to be sustained upon examination by the relevant taxing authority, based on its technical merits. The amount of tax benefit recognized reflects the largest benefit the Company believes is more likely than not to be realized upon ultimate settlement. As additional information becomes available, the liability for unrecognized tax benefits is reevaluated and adjusted, as appropriate. Tax benefits ultimately realized can differ from amounts previously recognized due to uncertainties, with any such differences generally impacting the provision for income tax. Net Income Per Share Net income per share attributable to Fiserv, Inc. in each period is calculated using actual, unrounded amounts. Basic net income per share is computed by dividing net income attributable to Fiserv, Inc. by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income attributable to Fiserv, Inc. by the weighted-average number of common shares and common stock equivalents outstanding during the period. Common stock equivalents consist of outstanding stock options, unvested restricted stock units and unvested restricted stock awards, and are computed using the treasury stock method. The Company excluded 1.5 million, 1.3 million and 1.1 million weighted-average shares from the calculations of common stock equivalents for anti-dilutive stock options in 2021, 2020 and 2019, respectively. The computation of shares used in calculating basic and diluted net income per share is as follows at December 31: (In millions) 2021 2020 2019 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – basic 662.6 672.1 512.3 Common stock equivalents 9.0 11.3 10.3 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – diluted 671.6 683.4 522.6 Supplemental Cash Flow Information (In millions) Year Ended December 31, 2021 2020 2019 Interest paid $ 648 $ 673 $ 291 Income taxes paid 666 156 197 Treasury stock purchases settled after the balance sheet date — — 6 Distribution of nonmonetary assets (see Note 4) — 726 — Software obtained under financing arrangements 143 308 — |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”), which clarifies certain interactions between the guidance to account for certain equity securities, investments under the equity method of accounting, and forward contracts or purchased options to purchase securities under Topic 321, Topic 323 and Topic 815. For public entities, ASU 2020-01 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2020-01 effective January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which introduces a number of amendments that are designed to simplify the application of accounting for income taxes. Such amendments include removing certain exceptions for intraperiod tax allocation, interim reporting when a year-to-date loss exceeds the anticipated loss, reflecting the effect of an enacted change in tax laws or rates in the annual effective tax rate and recognition of deferred taxes related to outside basis differences for ownership changes in investments. ASU 2019-12 also provides clarification related to when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. In addition, ASU 2019-12 provides guidance on the recognition of a franchise tax (or similar tax) that is partially based on income as an income-based tax and accounting for any incremental amount incurred as a non-income-based tax. For public entities, ASU 2019-12 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 effective January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13” or “CECL”), which prescribes an impairment model for most financial instruments 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 instrument. For public entities, ASU 2016-13 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. 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 adopted ASU 2016-13 effective January 1, 2020 using the required modified retrospective approach, which resulted in a cumulative-effect decrease to beginning retained earnings of $45 million. Financial assets and liabilities held by the Company subject to the “expected credit loss” model prescribed by CECL include trade and other receivables, net investments in leases, settlement asset receivables and other credit exposures such as financial guarantees not accounted for as insurance. Recently Issued Accounting Pronouncements In 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832) (“ASU 2021-10”), which requires that an entity provide certain disclosures in its annual financial statements about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. ASU 2021-10 is effective for all business entities for fiscal years beginning after December 15, 2021 and may be applied either prospectively or retrospectively to the transactions reflected in the financial statements at the date of initial application. The Company is currently assessing the impact that the adoption of ASU 2021-10 will have on its disclosures. In 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), which requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Generally, this should result in recognition and measurement of contract assets and contract liabilities at carryover value consistent with how they were recognized and measured in the acquiree’s financial statements, providing consistent recognition and enhanced comparability with revenue contracts with customers not acquired in a business combination. Prior to adoption of ASU 2021-08, an acquirer generally recognized contract assets and contract liabilities acquired in a business combination at fair value on the acquisition date. For public entities, ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Entities are required to apply a prospective transition approach upon adoption, unless early adoption occurs in an interim period. The Company adopted ASU 2021-08 effective January 1, 2022, with prospective application to business combinations occurring after adoption. In 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. 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 Acceptance segment, the Fintech segment and the Payments segment (see Note 21). 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, merchant transaction processing and acquiring, electronic billing and payment services, electronic funds transfer and debit/credit processing services; consulting and professional services; and software maintenance for ongoing client support. The Company recognizes processing and services revenue 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 print and card production sales, as well as software license sales and hardware (primarily point-of-sale devices) 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. 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. The Company sells or leases hardware (point-of-sale devices) and other peripherals as part of its contracts with customers. Hardware typically consists of terminals or Clover ® devices. The Company does not manufacture hardware, rather it purchases hardware from third-party vendors and holds such hardware in inventory until purchased by a customer. The Company accounts for sales of hardware as a separate performance obligation and recognizes the revenue at its standalone selling price when the customer obtains control of the hardware. 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, to determine whether control of goods and services is obtained prior to their transfer to a customer. 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 or rebates) is allocated between distinct 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. 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. Disaggregation of Revenue The tables below present the Company’s revenue disaggregated by type of revenue, including a reconciliation with its reportable segments. The majority of the Company’s revenue is earned domestically, with revenue generated outside the U.S. comprising approximately 14%, 13% and 12% of total revenue in 2021, 2020 and 2019, respectively. (In millions) Reportable Segments Year Ended December 31, 2021 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 5,511 $ 1,544 $ 4,497 $ 32 $ 11,584 Hardware, print and card production 830 44 913 — 1,787 Professional services 43 471 265 — 779 Software maintenance — 557 11 — 568 License and termination fees 47 186 65 — 298 Output solutions postage — — — 860 860 Other 48 220 82 — 350 Total Revenue $ 6,479 $ 3,022 $ 5,833 $ 892 $ 16,226 (In millions) Reportable Segments Year Ended December 31, 2020 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 4,696 $ 1,426 $ 4,348 $ 58 $ 10,528 Hardware, print and card production 714 51 771 — 1,536 Professional services 29 465 233 1 728 Software maintenance — 563 3 2 568 License and termination fees 28 189 68 — 285 Output solutions postage — — — 864 864 Other 55 207 81 — 343 Total Revenue $ 5,522 $ 2,901 $ 5,504 $ 925 $ 14,852 (In millions) Reportable Segments Year Ended December 31, 2019 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 2,205 $ 1,382 $ 3,110 $ 166 $ 6,863 Hardware, print and card production 323 51 458 — 832 Professional services 4 483 172 10 669 Software maintenance — 570 3 15 588 License and termination fees 9 255 59 2 325 Output solutions postage — — — 572 572 Other 30 201 107 — 338 Total Revenue $ 2,571 $ 2,942 $ 3,909 $ 765 $ 10,187 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers at December 31: (In millions) 2021 2020 2019 Contract assets $ 541 $ 433 $ 382 Contract liabilities 810 733 647 Contract assets, reported within other long-term assets in the consolidated balance sheets, 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 years ended December 31, 2021 and December 31, 2020, contract assets and contract liabilities increased primarily due to customer discounts, prepaid maintenance and deferred conversion revenue associated with long-term contracts obtained during the respective year. The Company recognized $546 million and $492 million of revenue during the years ended December 31, 2021 and December 31, 2020, respectively, that was included in the contract liabilities balance at the beginning of the year. Transaction Price Allocated to Remaining Performance Obligations The following table includes estimated processing, services and product revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at December 31, 2021: (In millions) Year Ending December 31, 2022 $ 2,174 2023 1,790 2024 1,416 2025 955 Thereafter 1,418 The Company applies the optional exemption under ASC 606 and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. These multi-year contracts 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 under ASC 606 and does not disclose information for variable consideration 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 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 were as follows at December 31: (In millions) 2021 2020 Capitalized sales commissions $ 437 $ 402 Capitalized conversion or implementation costs 374 290 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. The amortization of capitalized sales commissions is included in selling, general and administrative expenses and amortization of capitalized conversion or implementation costs within cost of processing and services. These costs totaled $148 million, $124 million and $105 million during the years ended December 31, 2021, 2020 and 2019, respectively. Impairment losses recognized during the years ended December 31, 2021, 2020 and 2019 related to capitalized contract costs were not significant. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions were accounted for as business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). Purchase price was allocated to the respective assets acquired and liabilities assumed based on the estimated fair values at the date of acquisitions. Acquisition of BentoBox On November 22, 2021, the Company acquired BentoBox CMS, Inc (“BentoBox”), a digital marketing and commerce platform that helps restaurants connect with their guests, for approximately $317 million, net of $24 million of acquired cash. BentoBox is included within the Acceptance segment, and further expands the Company’s Clover ® dining solutions and commerce and business management capabilities. The preliminary allocation of purchase price resulted in the recognition of identifiable intangible assets, consisting primarily of acquired software and technology, of approximately $136 million with useful lives anticipated to be in the range of five Acquisition of Pineapple Payments On May 4, 2021, the Company acquired Pineapple Payments Holdings, LLC (“Pineapple Payments”), an independent sales organization that provides payment processing, proprietary technology, and payment acceptance solutions for merchants, for $207 million, net of $6 million of acquired cash, and including earn-out provisions estimated at a fair value of $30 million (see Note 10). Pineapple Payments is included within the Acceptance segment, and expands the reach of the Company’s payment solutions through its technology- and relationship-led distribution channels. The allocation of purchase price was finalized in the fourth quarter of 2021 and resulted in the recognition of identifiable intangible assets of $127 million, goodwill of $79 million and other net assets of $7 million. Goodwill, of which $59 million is deductible for tax purposes, is primarily attributed to the anticipated value created by the accelerated delivery of new and innovative capabilities to merchant clients. The amounts allocated to identifiable intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 90 17 years Residual buyouts 20 8 years Acquired software and technology 6 7 years Non-compete agreements and other 11 5 years Total $ 127 14 years The results of operations for Pineapple Payments are included in the consolidated results of the Company from the date of acquisition. Pro forma information for this acquisition is not provided because it did not have a material effect on the Company’s consolidated results of operations. Acquisition of Ondot On January 22, 2021, the Company acquired a remaining ownership interest in Ondot, a digital experience platform provider for financial institutions, for $271 million, net of $13 million of acquired cash and cash equivalents. The Company previously held a noncontrolling equity interest in Ondot, which was accounted for at cost. The remeasurement of the Company’s previously held equity interest to its acquisition-date fair value resulted in the recognition of a pre-tax gain of $12 million included within other income in the consolidated statements of income during the year ended December 31, 2021. Ondot is included within the Payments segment and further expands the Company’s digital capabilities, enhancing its suite of integrated payments, banking and merchant solutions. The allocation of purchase price recorded for Ondot was finalized in the third quarter of 2021 as follows: (In millions) Cash and cash equivalents $ 13 Receivables and other assets 9 Intangible assets 142 Goodwill 173 Payables and other liabilities (31) Total consideration $ 306 Less: Fair value of previously held equity interest (22) Total purchase price $ 284 Goodwill, not deductible for tax purposes, is primarily attributed to the anticipated value created by the combined scale of integrated digital solutions to consumers, merchants, acquirers, networks and card issuers. The amounts allocated to identifiable intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 90 6 years Customer relationships 35 6 years Non-compete agreements and other 17 4 years Total $ 142 6 years The results of operations for Ondot are included in the consolidated results of the Company from the date of acquisition. Pro forma information for this acquisition is not provided because it did not have a material effect on the Company’s consolidated results of operations. Acquisition of First Data On July 29, 2019, the Company acquired First Data, a global leader in commerce-enabling technology and solutions for merchants, financial institutions and card issuers, by acquiring 100% of the First Data stock that was issued and outstanding as of the date of acquisition. The acquisition, included within the Acceptance and Payments segments, increases the Company’s footprint as a global payments and financial technology provider by expanding the portfolio of services provided to financial institutions, corporate and merchant clients and consumers. As a result of the acquisition, First Data stockholders received 286 million shares of common stock of Fiserv, Inc., at an exchange ratio of 0.303 shares of Fiserv, Inc. for each share of First Data common stock, with cash paid in lieu of fractional shares. The Company also converted 15 million outstanding First Data equity awards into corresponding equity awards relating to common stock of Fiserv, Inc. in accordance with the exchange ratio as described in further detail within Note 16. In addition, concurrent with the closing of the acquisition, the Company made a cash payment of $16.4 billion to repay existing First Data debt. The Company funded the transaction-related expenses and the repayment of First Data debt through a combination of available cash on-hand and proceeds from debt issuances. The total purchase price paid for First Data was as follows: (In millions) Fair value of stock exchanged for shares of Fiserv, Inc. (1) $ 29,293 Repayment of First Data debt 16,414 Fair value of vested portion of First Data stock awards exchanged for Fiserv, Inc. awards (2) 768 Total purchase price $ 46,475 (1) The fair value of the 286 million shares of the Company’s common stock issued as of the acquisition date was determined based on a per share price of $102.30, which was the closing price of the Company’s common stock on July 26, 2019, the last trading day before the acquisition closed the morning of July 29, 2019. This includes a nominal amount of cash paid in lieu of fractional shares. (2) Represents the portion of the fair value of the replacement awards related to services provided prior to the acquisition. The remaining portion of the fair value is associated with future service and will be recognized as expense over the future service period. See Note 16 for additional information. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is deductible for tax purposes. Goodwill is primarily attributed to synergies from future expected economic benefits, including enhanced revenue growth from expanded capabilities and geographic presence as well as substantial cost savings from duplicative overhead, streamlined operations and enhanced operational efficiency. The assets acquired and liabilities assumed of First Data have been measured at estimated fair value as of the acquisition date. In 2020, through the measurement period ended July 29, 2020, the Company identified and recorded measurement period adjustments to the preliminary purchase price allocation, which were the result of additional analysis performed and information identified based on facts and circumstances that existed as of the acquisition date. These measurement period adjustments resulted in an increase to goodwill of $304 million. The offsetting amounts to the change in goodwill were primarily related to customer relationship intangible assets, noncontrolling interests, property and equipment, payables and accrued expenses including legal contingency reserves, and deferred income taxes. The Company recorded a measurement period adjustment of $155 million to reduce the fair value of customer relationship intangible assets as a result of refinements to attrition rates. A measurement period adjustment of $126 million was recorded to reduce the fair value of noncontrolling interests based on changes to the fair value of the underlying customer relationship intangible assets and the incorporation of additional facts and circumstances that existed as of the acquisition date. A measurement period adjustment of $25 million was recorded to reduce the fair value of property and equipment to the estimated fair value of certain real property acquired. Measurement period adjustments were recorded to increase payables and accrued expenses by $37 million, reduce investments in unconsolidated affiliates by $23 million, and increase other long-term liabilities by $21 million. The remaining $169 million of adjustments were primarily comprised of deferred tax adjustments related to the measurement period adjustments. Such measurement period adjustments did not have a material impact on the consolidated statements of income. The allocation of purchase price recorded for First Data was finalized in the third quarter of 2020 as follows: (In millions) Assets acquired (1) Cash and cash equivalents $ 310 Trade accounts receivable 1,747 Prepaid expenses and other current assets 1,047 Settlement assets (2) 10,398 Property and equipment 1,156 Customer relationships 13,458 Other intangible assets 2,814 Goodwill 30,811 Investments in unconsolidated affiliates 2,676 Other long-term assets 1,191 Total assets acquired $ 65,608 Liabilities assumed (1) Accounts payable and accrued expenses $ 1,613 Short-term and current maturities of long-term debt (3) 243 Contract liabilities 71 Settlement obligations 10,398 Deferred income taxes 3,671 Long-term contract liabilities 16 Long-term debt and other long-term liabilities (4) 1,261 Total liabilities assumed $ 17,273 Net assets acquired $ 48,335 Redeemable noncontrolling interests 252 Noncontrolling interests 1,608 Total purchase price $ 46,475 (1) In connection with the acquisition of First Data, the Company acquired two businesses which it intended to sell and subsequently sold in October 2019. Therefore, such businesses were classified as held for sale and were included within prepaid expenses and other current assets and accounts payable and accrued expenses in the above allocation of purchase price (see Note 5). (2) Includes $922 million of settlement cash and cash equivalents (see Note 1). (3) Includes foreign lines of credit, current portion of finance lease obligations and other financing obligations (see Note 12). (4) Includes the receivable securitized loan and the long-term portion of finance lease obligations (see Note 12). The fair values of the assets acquired and liabilities assumed were determined using the income and cost approaches. In many cases, the determination of the fair values required estimates about discount rates, growth and attrition rates, future expected cash flows and other future events that are judgmental. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in ASC 820, Fair Value Measurements . Intangible assets consisting of customer relationships, technology and trade names were valued using the multi-period excess earnings method (“MEEM”), or the relief from royalty (“RFR”) method, both are forms of the income approach. A cost and market approach was applied, as appropriate, for property and equipment, including land. • Customer relationship intangible assets were valued using the MEEM method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue and profit attributable to the asset, retention rate, applicable tax rate, and contributory asset charges, among other factors), the discount rate, reflecting the risks inherent in the future cash flow stream, an assessment of the asset’s life cycle, and the tax amortization benefit, among other factors. • Technology and trade name intangible assets were valued using the RFR method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue attributable to the asset, applicable tax rate, royalty rate, and other factors such as technology related obsolescence rates), the discount rate, reflecting the risks inherent in the future cash flow stream, and the tax amortization benefit, among other factors. • The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used, as appropriate, for property and equipment. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation. • The market approach, which estimates value by leveraging comparable land sale data/listings and qualitatively comparing them to the in-scope properties, was used to value the land. • An income approach was applied to derive fair value for both consolidated investments with a noncontrolling interest and equity method investments accounted for under the equity method of accounting. The significant assumptions used include the estimated annual cash flows, the discount rate, the long-term growth rate, and operating margin, among other factors. The Company believes that the information provided a reasonable basis for estimating the fair values of the acquired assets and assumed liabilities. The amounts allocated to intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 13,458 15 years Acquired software and technology 2,324 7 years Trade names 490 9 years Total $ 16,272 14 years The financial results of First Data are included in the consolidated results of the Company from July 29, 2019, the date of acquisition. For the year ended December 31, 2019, the results of operations for First Data, included within the accompanying consolidated statement of income, consisted of $4.1 billion of revenue and $1.0 billion of operating income. The Company incurred transaction expenses of approximately $175 million for the year ended December 31, 2019. Approximately $77 million of these expenses were included in selling, general and administrative expenses and $98 million were included in debt financing activities within the Company’s consolidated statement of income for the year ended December 31, 2019. The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the year ended December 31, 2019 as if the acquisition of First Data had occurred on January 1, 2018. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the acquisition of First Data been completed on January 1, 2018. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of First Data. (In millions, except for per share data) 2019 Total revenue $ 15,775 Net income 1,520 Net income attributable to Fiserv, Inc. 1,457 Net income per share attributable to Fiserv, Inc.: Basic $ 2.14 Diluted $ 2.10 The unaudited pro forma financial information reflects pro forma adjustments to present the combined pro forma results of operations as if the acquisition had occurred on January 1, 2018 to give effect to certain events the Company believes to be directly attributable to the acquisition. These pro forma adjustments primarily include: • a net increase in amortization expense that would have been recognized due to acquired intangible assets; • an adjustment to interest expense to reflect (i) the additional borrowings of the Company in conjunction with the acquisition and (ii) the repayment of First Data’s historical debt in conjunction with the acquisition; • a reduction in expenses for the year ended December 31, 2019 and a corresponding increase in the year ended December 31, 2018 for acquisition-related transaction costs and other one-time costs directly attributable to the acquisition; • a reduction in operating revenues due to the elimination of deferred revenues assigned no value at the acquisition date; • an adjustment to stock compensation expense to reflect the cost of the replacement awards as if they had been issued on January 1, 2018; and • the related income tax effects of the adjustments noted above. Other Acquisitions On November 15, 2021, the Company acquired a remaining ownership interest in NetPay Solutions Group (“NetPay”), a multi-channel payment service provider offering a range of capabilities around onboarding, customer lifecycle, risk management and settlement to businesses of all sizes. The Company previously held a 40% noncontrolling interest in NetPay, which was accounted for under the equity method and approximated acquisition date fair value. NetPay is included within the Acceptance segment and further expands the Company’s merchant services business. On October 1, 2021, the Company acquired Integrity Payments, LLC (“AIP”), an independent sales organization that promotes payment processing services for merchants, which is included within the Acceptance segment. On June 14, 2021, the Company acquired Spend Labs Inc. (“SpendLabs”), a mobile-native, cloud-based software provider of commercial card payment solutions. SpendLabs is included within the Payments segment and further expands the Company’s digital capabilities across mobile and desktop devices for small and mid-sized businesses. On March 1, 2021, the Company acquired Radius8, Inc. (“Radius8”), a provider of a platform that uses consumer location and other information to drive incremental merchant transactions. Radius8 is included within the Acceptance segment and enhances the Company’s ability to help merchants increase sales, expand mobile application registration and improve one-to-one target marketing. The Company acquired these businesses for an aggregate purchase price of approximately $87 million, net of the fair value of the Company’s previously held non-controlling interest in NetPay of $14 million and including earn-out provisions estimated at a fair value of $4 million (see Note 10). The allocation of purchase price for these acquisitions resulted in the recognition of identifiable intangible assets totaling $47 million, goodwill of $62 million and net assumed liabilities of $8 million. The purchase price allocation for the Radius8 acquisition was finalized in the third quarter of 2021 and for SpendLabs in the fourth quarter of 2021. The allocation of the purchase price for the NetPay and AIP acquisitions are preliminary and subject to further adjustment, pending additional refinement and final completion of valuations. Measurement period adjustments did not have a material impact on the consolidated statements of income. Goodwill, of which $14 million is expected to be deductible for tax purposes, is primarily attributed to synergies, the anticipated value created by advancing digital capabilities to the Company’s clients, and selling the Company’s products and services to the acquired businesses’ existing client base . The amounts allocated to intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 31 6 years Customer relationships 9 10 years Residual buyouts 7 5 years Total $ 47 7 years On March 2, 2020, the Company acquired MerchantPro Express LLC (“MerchantPro”), an independent sales organization that provides processing services, point-of-sale equipment and merchant cash advances to businesses across the U.S. MerchantPro is included within the Acceptance segment and further expands the Company’s merchant services business. On March 18, 2020, the Company acquired Bypass Mobile, LLC (“Bypass”), an independent software vendor and innovator in enterprise point-of-sale systems for sports and entertainment venues, food service management providers and national restaurant chains. Bypass is included within the Acceptance segment and further enhances the Company’s ability to help businesses deliver seamless physical and digital customer experiences. On May 11, 2020, the Company acquired Inlet, LLC (“Inlet”), a provider of secure digital delivery solutions for enterprise and middle-market biller invoices and statements. Inlet is included within the Payments segment and further enhances the Company’s digital bill payment strategy. The Company acquired these businesses for an aggregate purchase price of $167 million, net of $2 million of acquired cash, and including earn-out provisions estimated at a fair value of $45 million (see Note 10). The purchase price allocations for these acquisitions resulted in the recognition of identifiable intangible assets totaling $81 million, goodwill of $90 million, and net assumed liabilities of $4 million. The purchase price allocation for the MerchantPro acquisition was finalized in the third quarter of 2020, and for the Bypass and Inlet acquisitions in the fourth quarter of 2020. The goodwill recognized from these transactions, of which $36 million is deductible for tax purposes, is primarily attributed to synergies and the anticipated value created by selling the Company’s products and services to the acquired businesses’ existing client base. The amounts allocated to intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 32 14 years Residual buyouts 35 9 years Acquired software and technology 14 8 years Total $ 81 11 years The results of operations for these acquired businesses have been included in the consolidated results of the Company from the respective dates of acquisition. Pro forma information for these acquisitions is not provided because they did not have a material effect on the Company’s consolidated results of operations. In February 2022, the Company entered into a definitive agreement to acquire the remaining ownership interest in Finxact, Inc. (“Finxact”), a developer of cloud-native banking solutions powering digital transformation throughout the financial services sector, for approximately $650 million. The Company expects the acquisition to close in 2022, subject to customary approvals and closing conditions. Upon closing of the acquisition, Finxact will be included in the Fintech segment. The Company expects to recognize a gain on the remeasurement of its previously held equity interest to its fair value at the acquisition date. Dispositions Effective July 1, 2020, the Company and Bank of America (“BANA”) dissolved the Banc of America Merchant Services joint venture (“BAMS” or the “joint venture”), of which the Company maintained a 51% controlling ownership interest. Upon dissolution of the joint venture’s operations, the joint venture transferred a proportionate share of value, primarily the client contracts, to each party via an agreed upon contractual separation. The remaining activities of the joint venture consist primarily of an orderly wind down of remaining BAMS assets and liabilities. Pursuant to the separation agreement, the joint venture retains the responsibility for certain contingencies that may arise from pre-dissolution activities, including certain legal claims and contingencies. The Company may be obligated to fund a proportionate share of any such losses as incurred. The transfer of value to BANA was accounted for at fair value as a non pro rata distribution of nonmonetary assets, resulting in the recognition of a pre-tax gain of $36 million, with a related tax expense of $13 million. The pre-tax gain included the revaluation of client contracts allocated to BANA to a fair value of $700 million, as well as an estimated $24 million for certain additional consideration due from the Company to BANA in connection with the dissolution. The pre-tax net gain was recorded within gain on sale of businesses and the tax expense was recorded within the income tax provision in the consolidated statement of income. Noncontrolling interests of the Company were reduced by $726 million and the Company’s additional paid-in capital was reduced by $36 million to account for the wind down of the joint venture and the transfer of a proportionate share of the joint venture’s fair value to BANA. The transfer of value to the Company was accounted for at carryover basis as the Company maintains control of such assets. The business transferred to the Company continues to be operated and managed within the Company’s Acceptance segment. The fair value of the client contracts upon dissolution of the joint venture was determined using the MEEM method, a form of the income approach. The determination of the fair values required estimates about discount rates, growth and attrition rates, future expected cash flows and other future events that were judgmental in nature. The fair value measurements were primarily based on significant inputs that were not observable in the market and thus represented a Level 3 measurement of the fair value hierarchy as defined in ASC 820, Fair Value Measurements . The significant assumptions used included the estimated annual net cash flows (including appropriate revenue and profit attributable to the asset, retention rate, applicable tax rate, and contributory asset charges, among other factors), the discount rate, reflecting the risks inherent in the future cash flow stream, an assessment of the asset’s life cycle, and the tax amortization benefit, among other factors. The Company continues to provide merchant processing and related services to former BAMS clients allocated to BANA, at BAMS pricing, through June 2023. The Company also provides processing and other support services to new BANA merchant clients pursuant to a five-year non-exclusive agreement which, after June 2023, will also apply to the former BAMS clients allocated to BANA. In addition, both the Company and BANA are entitled to certain transition services, at fair value, from each other through June 2023. On February 18, 2020, the Company sold a 60% controlling interest of its Investment Services business, subsequently renamed as Tegra118, LLC (“Tegra118”). The Company received pre-tax proceeds of $578 million, net of related expenses, resulting in a pre-tax gain on the sale of $428 million, with the related tax expense of $112 million recorded through the income tax provision, in the consolidated statement of income for the year ended December 31, 2020. The pre-tax gain included $176 million related to the remeasurement of the Company’s 40% retained interest based upon the enterprise value of the business. The revenues, expenses and cash flows of the Investment Services business were consolidated into the Company’s financial results through the date of the sale transaction, and are reported within Corporate and Other (see Note 21). In conjunction with the sale transaction, the Company also entered into transition services agreements to provide, at fair value, various administration, business process outsourcing, technical and data center related services for defined periods to Tegra118. On February 2, 2021, Tegra118 completed a merger with a third party, resulting in a dilution of the Company’s ownership interest in the combined new entity, Wealthtech Holdings, LLC, which was subsequently renamed as InvestCloud Holdings, LLC (“InvestCloud”). In connection with the transaction, the Company made an additional capital contribution of $200 million into the combined entity and recognized a pre-tax gain of $28 million within income from investments in unconsolidated affiliates in the consolidated statement of income, with related tax expense of $6 million recorded through the income tax provision, during the year ended December 31, 2021. On June 30, 2021, the Company sold its entire ownership interest in InvestCloud for $466 million, resulting in a pre-tax gain of $33 million recorded within income from investments in unconsolidated affiliates in the consolidated statement of income, with related tax expense of $8 million recorded through the income tax provision, during the year ended December 31, 2021. The Company will continue to provide various technical and data center related services under the terms of a pre-existing transition services agreement with InvestCloud, as described above. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued OperationsIn connection with the acquisition of First Data, the Company acquired two businesses, which it intended to sell. In October 2019, the Company completed the sales, at acquired fair value, of these two businesses for aggregate proceeds of $133 million. The sale proceeds are presented within discontinued operations in the consolidated statement of cash flows since the businesses were never considered part of the Company’s ongoing operations. The financial results of these businesses from the date of acquisition were not significant. |
Settlement Assets and Obligatio
Settlement Assets and Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Settlement Assets and Obligations | Settlement Assets and Obligations Settlement assets and obligations represent intermediary balances arising from the settlement process which involves the transferring of funds between card issuers, payment networks, merchants and consumers, and collateral amounts held to manage merchant credit risk. The Company records settlement assets and obligations upon processing a payment transaction. Settlement assets represent amounts receivable from agents, bank partners, merchants and from payment networks for submitted merchant transactions, and funds received by the Company in advance of paying to merchants or payees. Settlement obligations represent the unpaid amounts that are due to merchants or payees for their payment transactions and collateral deposits. The principal components of the Company’s settlement assets and obligations were as follows at December 31: (In millions) 2021 2020 Settlement assets Cash and cash equivalents $ 2,361 $ 1,650 Receivables 11,291 9,871 Total settlement assets $ 13,652 $ 11,521 Settlement obligations Payment instruments outstanding $ 460 $ 483 Card settlements and collateral deposits due to merchants 13,192 11,038 Total settlement obligations $ 13,652 $ 11,521 The changes in settlement cash and cash equivalents are presented in settlement activity, net within financing activities in the consolidated statements of cash flows. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Identifiable intangible assets consisted of the following at December 31: (In millions) Gross Accumulated Net Book 2021 Customer relationships $ 15,103 $ 5,112 $ 9,991 Acquired software and technology 2,522 901 1,621 Trade names 612 228 384 Purchased software 1,133 479 654 Capitalized software and other intangibles 1,879 520 1,359 Total $ 21,249 $ 7,240 $ 14,009 (In millions) Gross Accumulated Net Book 2020 Customer relationships $ 15,271 $ 3,668 $ 11,603 Acquired software and technology 2,562 879 1,683 Trade names 618 172 446 Purchased software 913 207 706 Capitalized software and other intangibles 1,332 412 920 Total $ 20,696 $ 5,338 $ 15,358 Gross software development costs capitalized for new products and enhancements to existing products totaled $613 million , $462 million and $339 million in 2021, 2020 and 2019, respectively. Amortization expense associated with the above identifiable intangible assets was as follows for the years ended December 31: (In millions) 2021 2020 2019 Amortization expense $ 2,548 $ 2,563 $ 1,299 Amortization expense during the year ended December 31, 2020 includes $56 million of accelerated amortization associated with the termination of certain vendor contracts (see Note 17). The Company estimates that annual amortization expense with respect to intangible assets recorded at December 31, 2021 will be as follows: (In millions) Year Ending December 31, 2022 $ 2,466 2023 2,216 2024 1,780 2025 1,531 2026 1,247 Thereafter 4,769 Total $ 14,009 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table presents changes in goodwill during 2021 and 2020. Reportable Segments (In millions) Acceptance Fintech Payments Total Goodwill - December 31, 2019 $ 21,189 $ 2,104 $ 12,745 $ 36,038 Acquisitions and valuation adjustments 332 — 62 394 Foreign currency translation (113) 4 (1) (110) Goodwill - December 31, 2020 21,408 2,108 12,806 36,322 Acquisitions and valuation adjustments 321 — 197 518 Transfers (1) — (67) 67 — Foreign currency translation (347) (2) (58) (407) Goodwill - December 31, 2021 $ 21,382 $ 2,039 $ 13,012 $ 36,433 (1) Relates to the migration of a line of business from the Fintech segment to the Payments segment. This migration did not have a material impact on the results of operations of the affected reportable segments. |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliate | Investments in Unconsolidated Affiliates The Company maintains investments in various affiliates that are accounted for as equity method investments, the most significant of which are related to the Company’s merchant alliances. The Company’s share of net income or loss from these investments is reported within income from investments in unconsolidated affiliates and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income. Merchant Alliances The Company maintains ownership interests of significant influence in various merchant alliances. A merchant alliance is an agreement between the Company and a financial institution that combines the processing capabilities and management expertise of the Company with the visibility and distribution channel of the financial institution. A merchant alliance acquires credit and debit card transactions from merchants. The Company provides processing and other services to the alliance and charges fees to the alliance primarily based on contractual pricing (see Note 20). The Company’s investment in its merchant alliances was $2.3 billion and $2.4 billion at December 31, 2021 and 2020, respectively, and is reported within investments in unconsolidated affiliates in the consolidated balance sheets. Other Equity Method Investments Following the sale of a controlling financial interest of the Investment Services business during the first quarter of 2020 (see Note 4), the Company’s remaining ownership interest in the business, subsequently renamed as InvestCloud, was accounted for as an equity method investment prior to the sale of the Company’s entire remaining ownership interest during the second quarter of 2021. The Company also maintains a 45% ownership interest in Sagent M&C, LLC and a 31% ownership interest in defi SOLUTIONS Group, LLC (collectively, the “Lending Joint Ventures”), which are accounted for as equity method investments. The Company’s aggregate investment in these entities was $25 million and $212 million at December 31, 2021 and 2020, respectively, and is reported within investments in unconsolidated affiliates in the consolidated balance sheets. In addition, the Company maintains other strategic investments accounted for under the equity method of accounting. The Company's aggregate investment in such entities was $266 million and $192 million at December 31, 2021 and 2020, respectively, and is reported within investments in unconsolidated affiliates in the consolidated balance sheets. The Lending Joint Ventures maintain variable-rate term loan facilities with aggregate outstanding borrowings of $365 million in senior unsecured debt and variable-rate revolving credit facilities with an aggregate borrowing capacity of $45 million with a syndicate of banks, which mature in March 2023. Outstanding borrowings on the revolving credit facilities at December 31, 2021 were $16 million. 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. See Note 10 for additional information regarding the Company’s debt guarantee arrangements with the Lending Joint Ventures. In August 2019, the Company’s Sagent Auto, LLC joint venture completed a merger with a third party, resulting in a dilution of the Company’s ownership interest in the combined entity, defi SOLUTIONS Group, LLC. The Company recognized a pre-tax gain of $14 million within income from investments in unconsolidated affiliates, with the related tax expense of $3 million recorded through the income tax provision, in the consolidated statement of income for the year ended December 31, 2019, reflecting the Company’s 31% ownership interest. The Company classifies distributions from its investments accounted for using the equity method in the consolidated statements of cash flows using the cumulative earnings approach. Under this approach, distributions received from unconsolidated affiliates are classified as cash flows from operating activities to the extent that the cumulative distributions do not exceed the cumulative earnings on the investment. To the extent the current period distribution exceeds the cumulative earnings on the investment, the distribution is considered a return of investment and is classified as cash flows from investing activities. The Company received cash distributions from unconsolidated affiliates of $149 million, $151 million and $136 million, of which $115 million, $109 million and $113 million were recorded as cash flows from investing activities in the Company’s consolidated statements of cash flows during 2021, 2020 and 2019, respectively. The Company also maintains investments, of which it does not have significant influence, in various equity securities without a readily determinable fair value. Such investments totaled $113 million and $160 million at December 31, 2021 and 2020, respectively, and are included within other long-term assets in the consolidated balance sheets. The Company reviews these investments each reporting period to determine whether an impairment or observable price change for the investment has occurred. To the extent such events or changes occur, the Company evaluates the fair value compared to its cost basis in the investment. Gains or losses from a sale of these investments or a change in fair value are included within other income (expense) in the consolidated statements of income for the period. During the year ended December 31, 2021, the Company remeasured its equity interest in Ondot to fair value upon the acquisition of the remaining ownership interest, resulting in the recognition of a pre-tax gain of $12 million (see Note 4). Other adjustments made to the values recorded for certain equity securities and gains and losses from sales of equity securities during 2021, 2020 and 2019 were not significant. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 Company’s derivative instruments are measured on a recurring basis based on foreign currency spot rates and forwards quoted by banks and foreign currency dealers and are marked-to-market each period (see Note 14). Contingent consideration related to certain of the Company’s acquisitions (see Note 4) is estimated based on the present value of a probability-weighted assessment approach derived from the likelihood of achieving the earn-out criteria. The fair value of the Company’s contingent liability for current expected credit losses associated with its debt guarantees, as further described below, is estimated based on assumptions of future risk of default and the corresponding level of credit losses at the time of default. Assets and liabilities measured at fair value on a recurring basis consisted of the following at December 31: Fair Value (In millions) Classification Fair Value Hierarchy 2021 2020 Assets Cash flow hedges Prepaid expenses and other current assets Level 2 $ 6 $ 9 Liabilities Contingent consideration Accounts payable and accrued expenses Level 3 $ 2 $ 46 Contingent consideration Other long-term liabilities Level 3 32 — Contingent debt guarantee Accounts payable and accrued expenses Level 3 4 — Contingent debt guarantee Other long-term liabilities Level 3 — 8 The Company’s senior notes are recorded at amortized cost, but measured at fair value for disclosure purposes. The estimated fair value of senior notes was based on matrix pricing which considers readily observable inputs of comparable securities (Level 2 of the fair value hierarchy). The carrying value of the Company’s foreign lines of credit, debt associated with the receivables securitization agreement, term loan credit agreement, commercial paper notes and revolving credit facility borrowings approximates fair value as these instruments have variable interest rates and the Company has not experienced any change to its credit ratings (Level 2 of the fair value hierarchy). The estimated fair value of total debt, excluding finance leases and other financing obligations, was $21.8 billion and $22.5 billion at December 31, 2021 and 2020, respectively, and the carrying value was $20.4 billion and $19.9 billion at December 31, 2021 and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Company as Lessee The Company primarily leases office space, data centers and equipment from third parties. The Company determines if a contract is a lease at inception. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term begins on the commencement date, which is the date the Company takes possession of the asset, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Many of the Company’s leases contain renewal options for varying periods, which can be exercised at the Company’s sole discretion. Leases are classified as operating or finance leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The Company’s leases have remaining lease terms ranging from one month to 22 years. The Company uses the right-of-use model to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as variable lease expenses when incurred. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The depreciable life of the ROU assets and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option. The Company uses its incremental borrowing rate to discount future lease payments in the calculation of the lease liability and ROU asset based on the information available on the commencement date for each lease. The Company’s leases typically do not provide an implicit rate. The determination of the incremental borrowing rate requires judgment and is determined using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization, currency and term to align with the terms of the lease. Lease Balances (In millions) December 31, 2021 2020 Assets Operating lease assets (1) $ 575 $ 504 Finance lease assets (2) 487 267 Total lease assets $ 1,062 $ 771 Liabilities Current: Operating lease liabilities (1) $ 122 $ 125 Finance lease liabilities (2) 130 104 Noncurrent: Operating lease liabilities (1) 615 471 Finance lease liabilities (2) 313 271 Total lease liabilities $ 1,180 $ 971 (1) Operating lease assets are included within other long-term assets accounts payable and accrued expenses other long-term liabilities (2) Finance lease assets are included within property and equipment, net short-term and current maturities of long-term debt long-term debt Components of Lease Cost (In millions) Year Ended December 31, 2021 2020 2019 Operating lease cost (1) $ 162 $ 198 $ 207 Finance lease cost: (2) Amortization of right-of-use assets 122 150 40 Interest on lease liabilities 23 21 8 Total lease cost $ 307 $ 369 $ 255 (1) Operating lease expense is included within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the consolidated statements of income. Operating lease expense includes approximately $39 million, $50 million and $56 million of variable lease costs for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Finance lease expense is recorded as depreciation and amortization expense within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, and interest expense, net in the consolidated statements of income. Finance lease expense includes $62 million of accelerated amortization associated with the termination of certain vendor contracts during the year ended December 31, 2020 (see Note 17). Supplemental Cash Flow Information (In millions) Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 153 $ 155 $ 139 Operating cash flows from finance leases 23 21 8 Financing cash flows from finance leases 161 187 37 Right-of-use assets obtained in exchange for lease liabilities: (1) Operating leases $ 197 $ 46 $ 441 Finance leases 231 399 288 (1) Amounts in 2019 include the right-of-use assets and lease liabilities obtained through the acquisition of First Data. Lease Term and Discount Rate December 31, 2021 2020 Weighted-average remaining lease term: Operating leases 10 years 6 years Finance leases 3 years 4 years Weighted-average discount rate: Operating leases 2.7 % 2.9 % Finance leases 2.7 % 3.5 % Maturity of Lease Liabilities Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021: (In millions) Year Ending December 31, Operating Leases (1) Finance Leases 2022 $ 125 $ 138 2023 112 146 2024 101 127 2025 82 45 2026 74 14 Thereafter 351 — Total lease payments 845 470 Less: Interest (108) (27) Present value of lease liabilities $ 737 $ 443 (1) Operating lease payments include $6 million related to options to extend lease terms that are reasonably certain of being exercised. Company as Lessor The Company owns certain point-of-sale (“POS”) terminal equipment which it leases to merchants. Leases are classified as operating or sales-type leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. The terms of the leases typically range from one month to five years. For operating leases, the minimum lease payments received are recognized as lease income on a straight-line basis over the lease term and the leased asset is included in property and equipment, net in the consolidated balance sheets and depreciated over its estimated useful life. For sales-type leases, selling profit is recognized at the commencement date of the lease to the extent the fair value of the underlying asset is different from its carrying amount. Selling profit is directly impacted by the Company’s estimate of the amount to be derived from the residual value of the asset at the end of the lease term. The residual value of the asset is computed using various assumptions, including the expected value of the underlying asset at the end of the lease term. Unearned income is recognized as interest income over the lease term. For sales-type leases, the Company derecognizes the carrying amount of the underlying leased asset and recognizes a net investment in the leased asset in the consolidated balance sheets. The net investment in a leased asset is computed based on the present value of the minimum lease payments not yet received and the present value of the residual value of the asset. Components of Lease Income (In millions) Year Ended December 31, 2021 2020 2019 Sales-type leases: Selling profit (1) $ 61 $ 48 $ 20 Interest income (1) 85 76 33 Operating lease income (2) 297 257 36 (1) Selling profit includes $141 million, $106 million and $48 million recorded within product revenue (2) Operating lease income includes a nominal amount of variable lease income and is included within product revenue Components of Net Investment in Sales-Type Leases (In millions) December 31, 2021 2020 Minimum lease payments $ 395 $ 355 Residual values 23 23 Less: Unearned interest income (157) (141) Net investment in leases (1) $ 261 $ 237 (1) Net investments in leased assets are included within prepaid expenses and other current assets (current portion) and other long-term assets (noncurrent portion) in the consolidated balance sheets. Maturities of Future Minimum Lease Payment Receivables Future minimum lease payments receivable on sales-type leases were as follows at December 31, 2021: (In millions) Year Ending December 31, Sales-Type Leases 2022 $ 164 2023 120 2024 76 2025 32 2026 3 Thereafter — Total minimum lease payments $ 395 Lease Payment Receivables Portfolio The Company accounts for lease payment receivables in connection with POS terminal equipment as a single portfolio. The Company recognizes an allowance for expected credit losses on lease payment receivables at the commencement date of the lease by considering the term, geography and internal credit risk ratings of such lease. The internal credit risk ratings are established based on lessee specific risk factors, such as FICO score, number of years the lessee has been in business and the nature of the lessee’s industry, which are considered indicators of the likelihood a lessee may default in the future. The allowance for estimated credit losses on lease payment receivables was $56 million and $64 million at December 31, 2021 and 2020, respectively. The Company determines delinquency status on lease payment receivables based on the number of calendar days past due. The Company considers lease payments that are 90 days or less past due as performing. Lease payments that are greater than 90 days past due are placed on non-accrual status in which interest income is no longer recognized. Lease payment receivables are fully written off in the period they become delinquent greater than 180 days past due. The amortized cost balance of net investment in leases at December 31, 2021 and 2020, was $261 million and $237 million, respectively. Lease payment receivables that were determined to be on non-accrual status were nominal at each of December 31, 2021 and 2020. |
Leases | Leases Company as Lessee The Company primarily leases office space, data centers and equipment from third parties. The Company determines if a contract is a lease at inception. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term begins on the commencement date, which is the date the Company takes possession of the asset, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Many of the Company’s leases contain renewal options for varying periods, which can be exercised at the Company’s sole discretion. Leases are classified as operating or finance leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The Company’s leases have remaining lease terms ranging from one month to 22 years. The Company uses the right-of-use model to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as variable lease expenses when incurred. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The depreciable life of the ROU assets and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option. The Company uses its incremental borrowing rate to discount future lease payments in the calculation of the lease liability and ROU asset based on the information available on the commencement date for each lease. The Company’s leases typically do not provide an implicit rate. The determination of the incremental borrowing rate requires judgment and is determined using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization, currency and term to align with the terms of the lease. Lease Balances (In millions) December 31, 2021 2020 Assets Operating lease assets (1) $ 575 $ 504 Finance lease assets (2) 487 267 Total lease assets $ 1,062 $ 771 Liabilities Current: Operating lease liabilities (1) $ 122 $ 125 Finance lease liabilities (2) 130 104 Noncurrent: Operating lease liabilities (1) 615 471 Finance lease liabilities (2) 313 271 Total lease liabilities $ 1,180 $ 971 (1) Operating lease assets are included within other long-term assets accounts payable and accrued expenses other long-term liabilities (2) Finance lease assets are included within property and equipment, net short-term and current maturities of long-term debt long-term debt Components of Lease Cost (In millions) Year Ended December 31, 2021 2020 2019 Operating lease cost (1) $ 162 $ 198 $ 207 Finance lease cost: (2) Amortization of right-of-use assets 122 150 40 Interest on lease liabilities 23 21 8 Total lease cost $ 307 $ 369 $ 255 (1) Operating lease expense is included within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the consolidated statements of income. Operating lease expense includes approximately $39 million, $50 million and $56 million of variable lease costs for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Finance lease expense is recorded as depreciation and amortization expense within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, and interest expense, net in the consolidated statements of income. Finance lease expense includes $62 million of accelerated amortization associated with the termination of certain vendor contracts during the year ended December 31, 2020 (see Note 17). Supplemental Cash Flow Information (In millions) Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 153 $ 155 $ 139 Operating cash flows from finance leases 23 21 8 Financing cash flows from finance leases 161 187 37 Right-of-use assets obtained in exchange for lease liabilities: (1) Operating leases $ 197 $ 46 $ 441 Finance leases 231 399 288 (1) Amounts in 2019 include the right-of-use assets and lease liabilities obtained through the acquisition of First Data. Lease Term and Discount Rate December 31, 2021 2020 Weighted-average remaining lease term: Operating leases 10 years 6 years Finance leases 3 years 4 years Weighted-average discount rate: Operating leases 2.7 % 2.9 % Finance leases 2.7 % 3.5 % Maturity of Lease Liabilities Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021: (In millions) Year Ending December 31, Operating Leases (1) Finance Leases 2022 $ 125 $ 138 2023 112 146 2024 101 127 2025 82 45 2026 74 14 Thereafter 351 — Total lease payments 845 470 Less: Interest (108) (27) Present value of lease liabilities $ 737 $ 443 (1) Operating lease payments include $6 million related to options to extend lease terms that are reasonably certain of being exercised. Company as Lessor The Company owns certain point-of-sale (“POS”) terminal equipment which it leases to merchants. Leases are classified as operating or sales-type leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. The terms of the leases typically range from one month to five years. For operating leases, the minimum lease payments received are recognized as lease income on a straight-line basis over the lease term and the leased asset is included in property and equipment, net in the consolidated balance sheets and depreciated over its estimated useful life. For sales-type leases, selling profit is recognized at the commencement date of the lease to the extent the fair value of the underlying asset is different from its carrying amount. Selling profit is directly impacted by the Company’s estimate of the amount to be derived from the residual value of the asset at the end of the lease term. The residual value of the asset is computed using various assumptions, including the expected value of the underlying asset at the end of the lease term. Unearned income is recognized as interest income over the lease term. For sales-type leases, the Company derecognizes the carrying amount of the underlying leased asset and recognizes a net investment in the leased asset in the consolidated balance sheets. The net investment in a leased asset is computed based on the present value of the minimum lease payments not yet received and the present value of the residual value of the asset. Components of Lease Income (In millions) Year Ended December 31, 2021 2020 2019 Sales-type leases: Selling profit (1) $ 61 $ 48 $ 20 Interest income (1) 85 76 33 Operating lease income (2) 297 257 36 (1) Selling profit includes $141 million, $106 million and $48 million recorded within product revenue (2) Operating lease income includes a nominal amount of variable lease income and is included within product revenue Components of Net Investment in Sales-Type Leases (In millions) December 31, 2021 2020 Minimum lease payments $ 395 $ 355 Residual values 23 23 Less: Unearned interest income (157) (141) Net investment in leases (1) $ 261 $ 237 (1) Net investments in leased assets are included within prepaid expenses and other current assets (current portion) and other long-term assets (noncurrent portion) in the consolidated balance sheets. Maturities of Future Minimum Lease Payment Receivables Future minimum lease payments receivable on sales-type leases were as follows at December 31, 2021: (In millions) Year Ending December 31, Sales-Type Leases 2022 $ 164 2023 120 2024 76 2025 32 2026 3 Thereafter — Total minimum lease payments $ 395 Lease Payment Receivables Portfolio The Company accounts for lease payment receivables in connection with POS terminal equipment as a single portfolio. The Company recognizes an allowance for expected credit losses on lease payment receivables at the commencement date of the lease by considering the term, geography and internal credit risk ratings of such lease. The internal credit risk ratings are established based on lessee specific risk factors, such as FICO score, number of years the lessee has been in business and the nature of the lessee’s industry, which are considered indicators of the likelihood a lessee may default in the future. The allowance for estimated credit losses on lease payment receivables was $56 million and $64 million at December 31, 2021 and 2020, respectively. The Company determines delinquency status on lease payment receivables based on the number of calendar days past due. The Company considers lease payments that are 90 days or less past due as performing. Lease payments that are greater than 90 days past due are placed on non-accrual status in which interest income is no longer recognized. Lease payment receivables are fully written off in the period they become delinquent greater than 180 days past due. The amortized cost balance of net investment in leases at December 31, 2021 and 2020, was $261 million and $237 million, respectively. Lease payment receivables that were determined to be on non-accrual status were nominal at each of December 31, 2021 and 2020. |
Leases | Leases Company as Lessee The Company primarily leases office space, data centers and equipment from third parties. The Company determines if a contract is a lease at inception. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term begins on the commencement date, which is the date the Company takes possession of the asset, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Many of the Company’s leases contain renewal options for varying periods, which can be exercised at the Company’s sole discretion. Leases are classified as operating or finance leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The Company’s leases have remaining lease terms ranging from one month to 22 years. The Company uses the right-of-use model to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as variable lease expenses when incurred. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The depreciable life of the ROU assets and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option. The Company uses its incremental borrowing rate to discount future lease payments in the calculation of the lease liability and ROU asset based on the information available on the commencement date for each lease. The Company’s leases typically do not provide an implicit rate. The determination of the incremental borrowing rate requires judgment and is determined using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization, currency and term to align with the terms of the lease. Lease Balances (In millions) December 31, 2021 2020 Assets Operating lease assets (1) $ 575 $ 504 Finance lease assets (2) 487 267 Total lease assets $ 1,062 $ 771 Liabilities Current: Operating lease liabilities (1) $ 122 $ 125 Finance lease liabilities (2) 130 104 Noncurrent: Operating lease liabilities (1) 615 471 Finance lease liabilities (2) 313 271 Total lease liabilities $ 1,180 $ 971 (1) Operating lease assets are included within other long-term assets accounts payable and accrued expenses other long-term liabilities (2) Finance lease assets are included within property and equipment, net short-term and current maturities of long-term debt long-term debt Components of Lease Cost (In millions) Year Ended December 31, 2021 2020 2019 Operating lease cost (1) $ 162 $ 198 $ 207 Finance lease cost: (2) Amortization of right-of-use assets 122 150 40 Interest on lease liabilities 23 21 8 Total lease cost $ 307 $ 369 $ 255 (1) Operating lease expense is included within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the consolidated statements of income. Operating lease expense includes approximately $39 million, $50 million and $56 million of variable lease costs for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Finance lease expense is recorded as depreciation and amortization expense within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, and interest expense, net in the consolidated statements of income. Finance lease expense includes $62 million of accelerated amortization associated with the termination of certain vendor contracts during the year ended December 31, 2020 (see Note 17). Supplemental Cash Flow Information (In millions) Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 153 $ 155 $ 139 Operating cash flows from finance leases 23 21 8 Financing cash flows from finance leases 161 187 37 Right-of-use assets obtained in exchange for lease liabilities: (1) Operating leases $ 197 $ 46 $ 441 Finance leases 231 399 288 (1) Amounts in 2019 include the right-of-use assets and lease liabilities obtained through the acquisition of First Data. Lease Term and Discount Rate December 31, 2021 2020 Weighted-average remaining lease term: Operating leases 10 years 6 years Finance leases 3 years 4 years Weighted-average discount rate: Operating leases 2.7 % 2.9 % Finance leases 2.7 % 3.5 % Maturity of Lease Liabilities Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021: (In millions) Year Ending December 31, Operating Leases (1) Finance Leases 2022 $ 125 $ 138 2023 112 146 2024 101 127 2025 82 45 2026 74 14 Thereafter 351 — Total lease payments 845 470 Less: Interest (108) (27) Present value of lease liabilities $ 737 $ 443 (1) Operating lease payments include $6 million related to options to extend lease terms that are reasonably certain of being exercised. Company as Lessor The Company owns certain point-of-sale (“POS”) terminal equipment which it leases to merchants. Leases are classified as operating or sales-type leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. The terms of the leases typically range from one month to five years. For operating leases, the minimum lease payments received are recognized as lease income on a straight-line basis over the lease term and the leased asset is included in property and equipment, net in the consolidated balance sheets and depreciated over its estimated useful life. For sales-type leases, selling profit is recognized at the commencement date of the lease to the extent the fair value of the underlying asset is different from its carrying amount. Selling profit is directly impacted by the Company’s estimate of the amount to be derived from the residual value of the asset at the end of the lease term. The residual value of the asset is computed using various assumptions, including the expected value of the underlying asset at the end of the lease term. Unearned income is recognized as interest income over the lease term. For sales-type leases, the Company derecognizes the carrying amount of the underlying leased asset and recognizes a net investment in the leased asset in the consolidated balance sheets. The net investment in a leased asset is computed based on the present value of the minimum lease payments not yet received and the present value of the residual value of the asset. Components of Lease Income (In millions) Year Ended December 31, 2021 2020 2019 Sales-type leases: Selling profit (1) $ 61 $ 48 $ 20 Interest income (1) 85 76 33 Operating lease income (2) 297 257 36 (1) Selling profit includes $141 million, $106 million and $48 million recorded within product revenue (2) Operating lease income includes a nominal amount of variable lease income and is included within product revenue Components of Net Investment in Sales-Type Leases (In millions) December 31, 2021 2020 Minimum lease payments $ 395 $ 355 Residual values 23 23 Less: Unearned interest income (157) (141) Net investment in leases (1) $ 261 $ 237 (1) Net investments in leased assets are included within prepaid expenses and other current assets (current portion) and other long-term assets (noncurrent portion) in the consolidated balance sheets. Maturities of Future Minimum Lease Payment Receivables Future minimum lease payments receivable on sales-type leases were as follows at December 31, 2021: (In millions) Year Ending December 31, Sales-Type Leases 2022 $ 164 2023 120 2024 76 2025 32 2026 3 Thereafter — Total minimum lease payments $ 395 Lease Payment Receivables Portfolio The Company accounts for lease payment receivables in connection with POS terminal equipment as a single portfolio. The Company recognizes an allowance for expected credit losses on lease payment receivables at the commencement date of the lease by considering the term, geography and internal credit risk ratings of such lease. The internal credit risk ratings are established based on lessee specific risk factors, such as FICO score, number of years the lessee has been in business and the nature of the lessee’s industry, which are considered indicators of the likelihood a lessee may default in the future. The allowance for estimated credit losses on lease payment receivables was $56 million and $64 million at December 31, 2021 and 2020, respectively. The Company determines delinquency status on lease payment receivables based on the number of calendar days past due. The Company considers lease payments that are 90 days or less past due as performing. Lease payments that are greater than 90 days past due are placed on non-accrual status in which interest income is no longer recognized. Lease payment receivables are fully written off in the period they become delinquent greater than 180 days past due. The amortized cost balance of net investment in leases at December 31, 2021 and 2020, was $261 million and $237 million, respectively. Lease payment receivables that were determined to be on non-accrual status were nominal at each of December 31, 2021 and 2020. |
Leases | Leases Company as Lessee The Company primarily leases office space, data centers and equipment from third parties. The Company determines if a contract is a lease at inception. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term begins on the commencement date, which is the date the Company takes possession of the asset, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Many of the Company’s leases contain renewal options for varying periods, which can be exercised at the Company’s sole discretion. Leases are classified as operating or finance leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The Company’s leases have remaining lease terms ranging from one month to 22 years. The Company uses the right-of-use model to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as variable lease expenses when incurred. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The depreciable life of the ROU assets and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option. The Company uses its incremental borrowing rate to discount future lease payments in the calculation of the lease liability and ROU asset based on the information available on the commencement date for each lease. The Company’s leases typically do not provide an implicit rate. The determination of the incremental borrowing rate requires judgment and is determined using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization, currency and term to align with the terms of the lease. Lease Balances (In millions) December 31, 2021 2020 Assets Operating lease assets (1) $ 575 $ 504 Finance lease assets (2) 487 267 Total lease assets $ 1,062 $ 771 Liabilities Current: Operating lease liabilities (1) $ 122 $ 125 Finance lease liabilities (2) 130 104 Noncurrent: Operating lease liabilities (1) 615 471 Finance lease liabilities (2) 313 271 Total lease liabilities $ 1,180 $ 971 (1) Operating lease assets are included within other long-term assets accounts payable and accrued expenses other long-term liabilities (2) Finance lease assets are included within property and equipment, net short-term and current maturities of long-term debt long-term debt Components of Lease Cost (In millions) Year Ended December 31, 2021 2020 2019 Operating lease cost (1) $ 162 $ 198 $ 207 Finance lease cost: (2) Amortization of right-of-use assets 122 150 40 Interest on lease liabilities 23 21 8 Total lease cost $ 307 $ 369 $ 255 (1) Operating lease expense is included within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the consolidated statements of income. Operating lease expense includes approximately $39 million, $50 million and $56 million of variable lease costs for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Finance lease expense is recorded as depreciation and amortization expense within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, and interest expense, net in the consolidated statements of income. Finance lease expense includes $62 million of accelerated amortization associated with the termination of certain vendor contracts during the year ended December 31, 2020 (see Note 17). Supplemental Cash Flow Information (In millions) Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 153 $ 155 $ 139 Operating cash flows from finance leases 23 21 8 Financing cash flows from finance leases 161 187 37 Right-of-use assets obtained in exchange for lease liabilities: (1) Operating leases $ 197 $ 46 $ 441 Finance leases 231 399 288 (1) Amounts in 2019 include the right-of-use assets and lease liabilities obtained through the acquisition of First Data. Lease Term and Discount Rate December 31, 2021 2020 Weighted-average remaining lease term: Operating leases 10 years 6 years Finance leases 3 years 4 years Weighted-average discount rate: Operating leases 2.7 % 2.9 % Finance leases 2.7 % 3.5 % Maturity of Lease Liabilities Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021: (In millions) Year Ending December 31, Operating Leases (1) Finance Leases 2022 $ 125 $ 138 2023 112 146 2024 101 127 2025 82 45 2026 74 14 Thereafter 351 — Total lease payments 845 470 Less: Interest (108) (27) Present value of lease liabilities $ 737 $ 443 (1) Operating lease payments include $6 million related to options to extend lease terms that are reasonably certain of being exercised. Company as Lessor The Company owns certain point-of-sale (“POS”) terminal equipment which it leases to merchants. Leases are classified as operating or sales-type leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. The terms of the leases typically range from one month to five years. For operating leases, the minimum lease payments received are recognized as lease income on a straight-line basis over the lease term and the leased asset is included in property and equipment, net in the consolidated balance sheets and depreciated over its estimated useful life. For sales-type leases, selling profit is recognized at the commencement date of the lease to the extent the fair value of the underlying asset is different from its carrying amount. Selling profit is directly impacted by the Company’s estimate of the amount to be derived from the residual value of the asset at the end of the lease term. The residual value of the asset is computed using various assumptions, including the expected value of the underlying asset at the end of the lease term. Unearned income is recognized as interest income over the lease term. For sales-type leases, the Company derecognizes the carrying amount of the underlying leased asset and recognizes a net investment in the leased asset in the consolidated balance sheets. The net investment in a leased asset is computed based on the present value of the minimum lease payments not yet received and the present value of the residual value of the asset. Components of Lease Income (In millions) Year Ended December 31, 2021 2020 2019 Sales-type leases: Selling profit (1) $ 61 $ 48 $ 20 Interest income (1) 85 76 33 Operating lease income (2) 297 257 36 (1) Selling profit includes $141 million, $106 million and $48 million recorded within product revenue (2) Operating lease income includes a nominal amount of variable lease income and is included within product revenue Components of Net Investment in Sales-Type Leases (In millions) December 31, 2021 2020 Minimum lease payments $ 395 $ 355 Residual values 23 23 Less: Unearned interest income (157) (141) Net investment in leases (1) $ 261 $ 237 (1) Net investments in leased assets are included within prepaid expenses and other current assets (current portion) and other long-term assets (noncurrent portion) in the consolidated balance sheets. Maturities of Future Minimum Lease Payment Receivables Future minimum lease payments receivable on sales-type leases were as follows at December 31, 2021: (In millions) Year Ending December 31, Sales-Type Leases 2022 $ 164 2023 120 2024 76 2025 32 2026 3 Thereafter — Total minimum lease payments $ 395 Lease Payment Receivables Portfolio The Company accounts for lease payment receivables in connection with POS terminal equipment as a single portfolio. The Company recognizes an allowance for expected credit losses on lease payment receivables at the commencement date of the lease by considering the term, geography and internal credit risk ratings of such lease. The internal credit risk ratings are established based on lessee specific risk factors, such as FICO score, number of years the lessee has been in business and the nature of the lessee’s industry, which are considered indicators of the likelihood a lessee may default in the future. The allowance for estimated credit losses on lease payment receivables was $56 million and $64 million at December 31, 2021 and 2020, respectively. The Company determines delinquency status on lease payment receivables based on the number of calendar days past due. The Company considers lease payments that are 90 days or less past due as performing. Lease payments that are greater than 90 days past due are placed on non-accrual status in which interest income is no longer recognized. Lease payment receivables are fully written off in the period they become delinquent greater than 180 days past due. The amortized cost balance of net investment in leases at December 31, 2021 and 2020, was $261 million and $237 million, respectively. Lease payment receivables that were determined to be on non-accrual status were nominal at each of December 31, 2021 and 2020. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt consisted of the following at December 31: (In millions) 2021 2020 Short-term and current maturities of long-term debt: Foreign lines of credit $ 240 $ 144 Finance lease and other financing obligations 268 240 Total short-term and current maturities of long-term debt $ 508 $ 384 Long-term debt: 4.750% senior notes due June 2021 $ — $ 400 3.500% senior notes due October 2022 700 700 0.375% senior notes due July 2023 (Euro-denominated) 566 612 3.800% senior notes due October 2023 1,000 1,000 2.750% senior notes due July 2024 2,000 2,000 3.850% senior notes due June 2025 900 900 2.250% senior notes due July 2025 (British Pound-denominated) 705 709 3.200% senior notes due July 2026 2,000 2,000 2.250% senior notes due June 2027 1,000 1,000 1.125% senior notes due July 2027 (Euro-denominated) 566 612 4.200% senior notes due October 2028 1,000 1,000 3.500% senior notes due July 2029 3,000 3,000 2.650% senior notes due June 2030 1,000 1,000 1.625% senior notes due July 2030 (Euro-denominated) 566 612 3.000% senior notes due July 2031 (British Pound-denominated) 705 709 4.400% senior notes due July 2049 2,000 2,000 U.S. commercial paper notes 916 — Euro commercial paper notes 905 — Revolving credit facility 97 22 Receivable securitized loan 500 425 Term loan facility 200 1,250 Unamortized discount and deferred financing costs (125) (155) Finance lease and other financing obligations 528 504 Total long-term debt $ 20,729 $ 20,300 Annual maturities of the Company’s total debt were as follows at December 31, 2021: (In millions) Year Ending December 31, 2022 $ 508 2023 4,923 2024 2,391 2025 1,677 2026 2,027 Thereafter 9,836 Total principal payments 21,362 Unamortized discount and deferred financing costs (125) Total debt $ 21,237 Senior Notes The Company has outstanding $17.7 billion of various fixed-rate senior notes, as described above. The indentures governing the Company’s senior notes contain covenants that, among other matters, limit (i) 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, (ii) the Company’s and certain of its subsidiaries’ ability to create or assume liens, and (iii) the Company’s and certain of its subsidiaries’ ability to engage in sale and leaseback transactions. The Company may, at its option, redeem the senior notes, in whole or, from time to time, in part, at any time prior to the applicable maturity date. Interest on the Company’s U.S. dollar-denominated senior notes is paid semi-annually, while interest on its Euro- and British Pound-denominated senior notes is paid annually. The interest rate applicable to certain of the senior 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. During the year ended December 31, 2021, the Company used a portion of the net proceeds from the 2021 issuance of commercial paper notes, as described below, to repay the outstanding principal balance of $400 million under its 4.75% senior notes that matured in June 2021. At December 31, 2021, the 3.50% senior notes due in October 2022 were classified in the consolidated balance sheet as long-term and within the debt maturity schedule above as maturing in September 2023, the date that the Company’s revolving credit facility expires, as the Company has the intent to refinance this debt on a long-term basis and the ability to do so under its revolving credit facility. Commercial Paper The Company initiated an unsecured U.S. dollar commercial paper program (“USCP”) in May 2021 and an unsecured Euro commercial paper program (“ECP”) in November 2021. From time to time, the Company may issue under these programs U.S. dollar commercial paper with maturities of up to 397 days from the date of issuance and Euro commercial paper with maturities of up to 183 days from the date of issuance. Outstanding borrowings under the USCP were $916 million at December 31, 2021, with a weighted average interest rate of 0.295%. Outstanding borrowings under the ECP were $905 million at December 31, 2021, with a weighted average interest rate of (0.420)%. The Company intends to maintain available capacity under its revolving credit facility, as described below, in an amount at least equal to the aggregate outstanding borrowings under its commercial paper programs. Outstanding borrowings under the commercial paper programs are classified in the consolidated balance sheet as long-term and within the debt maturity schedule above as maturing in September 2023, the date that the Company’s revolving credit facility expires, as the Company has the intent to refinance this commercial paper on a long-term basis through the continued issuance of new commercial paper upon maturity, and the Company also has the ability to refinance such commercial paper under its revolving credit facility. During the year ended December 31, 2021, the Company used the net proceeds from the issuance of commercial paper notes to repay outstanding borrowings under its amended and restated revolving credit facility, to repay its 4.75% senior notes that matured in June 2021, and to pay down outstanding borrowings on its term loan facility. Revolving Credit Facility The Company maintains an amended and restated revolving credit facility, which matures in September 2023, with aggregate commitments available for $3.5 billion of total capacity. U.S. dollar borrowings under the amended and restated revolving credit facility bear interest at a variable rate based on LIBOR, typically at the overnight or 1-month rates, or 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. Foreign currency borrowings under the amended and restated revolving credit facility bear interest at a variable rate based on a benchmark applicable to the relevant currency, plus, in each case, a specified margin based on our long-term debt rating in effect from time to time. The variable interest rate on the revolving credit facility borrowings was 1.16% at December 31, 2021. 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 (i) 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 (ii) 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. The Company was in compliance with all financial debt covenants during 2021. Foreign Lines of Credit and Other Arrangements The Company maintains certain short-term lines of credit with foreign banks and alliance partners primarily to fund settlement activity. These arrangements are primarily associated with international operations and are in various functional currencies, the most significant of which is the Argentine peso. The Company had amounts outstanding on these lines of credit totaling $240 million and $144 million at a weighted-average interest rate of 21.01% and 21.98% at December 31, 2021 and 2020, respectively. Receivable Securitized Loan The Company maintains a consolidated wholly-owned subsidiary, First Data Receivables, LLC (“FDR”). FDR is a party to certain receivables financing arrangements, including an agreement (“Receivables Financing Agreement”) with certain financial institutions and other persons from time to time party thereto as lenders and group agents, pursuant to which certain wholly-owned subsidiaries of the Company have agreed to transfer and contribute receivables to FDR, and FDR in turn may obtain borrowings from the financial institutions and other lender parties to the Receivables Financing Agreement secured by liens on those receivables. FDR’s assets are not available to satisfy the obligations of any other entities or affiliates of the Company, and FDR’s creditors would be entitled, upon its liquidation, to be satisfied out of FDR’s assets prior to any assets or value in FDR becoming available to the Company. The receivables held by FDR are recorded within trade accounts receivable, net in the Company’s consolidated balance sheets. FDR held $1.0 billion and $811 million in receivables as part of the securitization program at December 31, 2021 and 2020, respectively. FDR utilized the receivables as collateral in borrowings of $500 million and $425 million as of December 31, 2021 and 2020, respectively, at an average interest rate of 0.95% and 1.00%, respectively. Outstanding borrowings bear interest at a variable rate based on one-month LIBOR plus a specified margin. At December 31, 2021, the collateral capacity under the Receivables Financing Agreement was $747 million, and the maximum borrowing capacity was $500 million. The term of the Receivables Financing Agreement is through July 2022. At December 31, 2021, outstanding borrowings under the receivable securitized loan facility were classified in the consolidated balance sheet as long-term and within the debt maturity schedule above as maturing in September 2023, the date that the Company’s revolving credit facility expires, as the Company has the intent to refinance this debt on a long-term basis and the ability to do so under its revolving credit facility. Term Loan Facility The Company maintains a term loan credit agreement with a syndicate of financial institutions that was funded in conjunction with the acquisition of First Data in an original principal amount of $5.0 billion. Following various amortization payments and prepayments, the aggregate principal amount outstanding under such agreement was $200 million at December 31, 2021. Borrowings under the term loan facility bear interest at variable rates based on one-month 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, and will mature in July 2024. The variable interest rate on the term loan facility borrowings was 1.35% at December 31, 2021. A portion of the net proceeds from the Company’s 2021 issuances of commercial paper, as described above, was used to pay down outstanding borrowings under the term loan facility. The term loan credit facility contains affirmative, negative and financial covenants, and events of default, that are substantially the same as those set forth in the Company’s existing amended and restated revolving credit facility, as described above. Deferred Financing Costs Deferred financing costs are amortized as a component of interest expense, net over the term of the underlying debt using the effective interest method. Deferred financing costs primarily related to the Company’s senior notes totaled $92 million and $117 million at December 31, 2021 and 2020, respectively, and are reported as a direct reduction of the related debt instrument in the consolidated balance sheets. Deferred financing costs related to the Company’s revolving credit facility are reported in other long-term assets in the consolidated balance sheets and totaled $3 million and $5 million at December 31, 2021 and 2020, respectively. Debt Financing Activities On January 16, 2019, in connection with the definitive merger agreement to acquire First Data (see Note 4), 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 $17.0 billion for the purpose of funding the repayment of certain indebtedness of First Data and its subsidiaries on the closing date of the acquisition of First Data, making cash payments in lieu of fractional shares as part of the acquisition consideration and paying fees and expenses related to the acquisition, the refinancing and the related transactions. The Company recorded $98 million of expenses, reported within debt financing activities in the consolidated statements of income, related to the bridge term loan facility during the year ended December 31, 2019. The aggregate commitments of $17.0 billion under the bridge facility commitment letter were replaced with a corresponding amount of permanent financing through the term loan credit agreement and issuance of senior notes, as described above, resulting in the termination of the bridge term loan facility effective July 1, 2019. In June 2019, the Company entered into foreign exchange forward contracts to minimize foreign currency exposure to the Euro and British Pound upon settlement of the proceeds from the foreign currency-denominated senior notes, as described above. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests The minority partners in two of the Company’s merchant alliance joint ventures maintain redeemable noncontrolling interests which are presented outside of equity and carried at their estimated redemption values. Each minority partner owns 1% of the equity in the respective joint venture; in addition, each minority partner is entitled to a contractually determined share of the respective entity’s income. The agreements contain redemption features whereby interests held by the minority partner are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within the Company’s control. The joint ventures may be terminated by either party for convenience any time after September 1, 2021 and December 31, 2024, respectively. In the event of termination for cause, as a result of a change in control, or for convenience after the predetermined date, the Company may be required to purchase the minority partner membership interests at a price equal to the fair market value of the minority interest through a distribution in the form of cash, certain merchant contracts of the joint venture, or a combination thereof to the minority partner. In conjunction with the termination of the joint venture, the minority partner may also exercise an option to purchase certain additional merchant contracts at fair market value. In September 2021, the Company and a joint venture minority partner mutually agreed to terminate one of the Company’s merchant alliance joint ventures effective March 2022. The redeemable noncontrolling interest was adjusted to reflect the estimated redemption value, with such adjustment recorded within additional paid-in capital in the consolidated statement of equity. The joint venture minority partner has notified the Company of its intent to exercise its option to purchase certain additional merchant contracts of the joint venture. The Company anticipates the recognition of a pre-tax gain of approximately $150 million in the first quarter of 2022 upon termination of the joint venture. The following table presents a summary of the redeemable noncontrolling interests activity during the years ended December 31: (In millions) 2021 2020 Balance at beginning of year $ 259 $ 262 Distributions paid to redeemable noncontrolling interests (43) (42) Share of income 44 39 Adjustment to estimated redemption value 18 — Balance at end of year $ 278 $ 259 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: Year Ended December 31, 2021 (In millions) Cash Flow Foreign Pension Plans Total Balance at December 31, 2020 $ (121) $ (254) $ (12) $ (387) Other comprehensive income (loss) before reclassifications 6 (422) 50 (366) Amounts reclassified from accumulated other comprehensive loss 8 — — 8 Net current-period other comprehensive income (loss) 14 (422) 50 (358) Balance at December 31, 2021 $ (107) $ (676) $ 38 $ (745) Year Ended December 31, 2020 (In millions) Cash Flow Foreign Pension Plans Total Balance at December 31, 2019 $ (141) $ (33) $ (6) $ (180) Other comprehensive income (loss) before reclassifications 5 (221) (6) (222) Amounts reclassified from accumulated other comprehensive loss 15 — — 15 Net current-period other comprehensive income (loss) 20 (221) (6) (207) Balance at December 31, 2020 $ (121) $ (254) $ (12) $ (387) The Company has entered into forward exchange contracts, which have been designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. The notional amount of these derivatives was $341 million and $259 million, and the fair value totaling $6 million and $9 million is reported primarily in prepaid expenses and other current assets in the consolidated balance sheets at December 31, 2021 and 2020, respectively. Based on the amounts recorded in accumulated other comprehensive loss at December 31, 2021, the Company estimates that it will recognize gains of approximately $5 million in cost of processing and services during the next twelve months as foreign exchange forward contracts settle. The Company previously entered into treasury lock agreements (“Treasury Locks”), designated as cash flow hedges, in the aggregate notional amount of $5.0 billion to manage exposure to fluctuations in benchmark interest rates in anticipation of the issuance of fixed rate debt in connection with the acquisition and refinancing of certain indebtedness of First Data and its subsidiaries. In June 2019, concurrent with the issuance of U.S dollar-denominated senior notes (see Note 12), the Treasury Locks were settled resulting in a payment, included in cash flows from operating activities, of $183 million recorded in accumulated other comprehensive loss, net of income taxes, that will be amortized to earnings over the terms of the originally forecasted interest payments. Based on the amounts recorded in accumulated other comprehensive loss at December 31, 2021, the Company estimates that it will recognize approximately $19 million in interest expense, net during the next twelve months related to settled interest rate hedge contracts. To reduce exposure to changes in the value of the Company’s net investments in certain of its foreign currency-denominated subsidiaries due to changes in foreign currency exchange rates, the Company uses its foreign currency-denominated debt as an economic hedge of its net investments in such foreign currency-denominated subsidiaries. The Company has designated its Euro- and British Pound-denominated senior notes and Euro commercial paper notes as net investment hedges to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro and the British Pound. Accordingly, foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss in the consolidated balance sheets until the sale or complete liquidation of the underlying foreign subsidiaries. The Company recorded a foreign currency translation gain (loss) of $110 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plans The Company and its subsidiaries maintain defined contribution savings plans covering the majority of their 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. The plans provide tax-deferred amounts for each participant, consisting of employee elective contributions, company matching and discretionary company contributions. In response to the COVID-19 pandemic, the Company has taken several actions since the onset of the pandemic to manage discretionary costs, including the reduction or temporary suspension of certain employee-related benefits such as company matching contributions to the plans during 2021 and most of 2020. The Company temporarily suspended company matching contributions during most of 2020 and re-established such contributions effective January 1, 2021, to equal 100% on the first 1% contributed and 25% on the next 4% contributed for eligible participants. Effective January 1, 2022, company matching contributions were increased to 100% on the first 1% contributed and 50% on the next 4% contributed for eligible participants. Expenses for company contributions under these plans totaled $58 million, $38 million, and $65 million and in 2021, 2020 and 2019, respectively. In connection with the acquisition of First Data (see Note 4), the Company assumed defined contribution savings plans and defined contribution pension plans covering substantially all employees of the former First Data. Effective January 1, 2020, the 401(k) Savings Plan of Fiserv, Inc. (the “Plan”) was amended to freeze the Plan to new participants and contributions and to allow for the merger of the Plan into the surviving Fiserv 401(k) Savings Plan (f/k/a the First Data Corporation Incentive Savings Plan) (“New Fiserv Plan”) for the purpose of providing a single plan covering current and former employees of both companies and their affiliates. Participants in the Plan became eligible to make salary reduction contributions in the New Fiserv Plan effective January 1, 2020. The merger of the Plan into the New Fiserv Plan was completed in the third quarter of 2020. Defined Benefit Plans The Company maintains noncontributory defined benefit pension plans covering a portion of its employees in the United Kingdom (“U.K.”), the U.S., Germany and Austria. The majority of these plans are frozen, representing substantially all of the benefit obligations and plan assets, and provide benefits to eligible employees based on an employee’s average final compensation and years of service. The following table provides a reconciliation of benefit obligations, plan assets and the funded status of these defined benefit plans as of and for the years ended December 31: U.K. plan U.S. and other plans ( In millions ) 2021 2020 2021 2020 Change in projected benefit obligations: Balance at beginning of year $ (777) $ (672) $ (238) $ (225) Interest cost (11) (14) (5) (6) Settlements 16 — — — Actuarial gain (loss) 15 (93) 9 (18) Benefits paid 21 30 12 13 Foreign currency translation — (28) 1 (2) Balance at end of year $ (736) $ (777) $ (221) $ (238) Change in fair value of plan assets: Balance at beginning of year $ 974 $ 860 $ 181 $ 167 Actual return on plan assets 47 110 14 22 Company contribution — — — 5 Settlements (16) — — — Benefits paid (21) (30) (12) (13) Foreign currency translation (1) 34 — — Balance at end of year $ 983 $ 974 $ 183 $ 181 Funded status of the plans $ 247 $ 197 $ (38) $ (57) The funded status of the defined benefit plans is recognized as an asset or a liability within other long-term assets or within other long-term liabilities in the consolidated balance sheets. Projected Benefit Obligations The Company records amounts relating to its defined benefit pension plan obligations and their associated expenses based on calculations which include actuarial assumptions, including the discount rate and the expected rate of return on plan assets. Changes in any of the assumptions and the amortization of differences between the assumptions and actual experience will affect the amount of pension expense in future periods. The Company reviews its actuarial assumptions at least annually and modifies the assumptions based on current rates and trends, as appropriate. The effects of modifications are recognized immediately within the consolidated balance sheets, and are generally amortized to operating income over future periods, with the deferred amount recorded in accumulated other comprehensive loss within the consolidated balance sheets. The Company’s funding policy is to contribute quarterly an amount as recommended by the plans’ independent actuaries. Company contributions under these plans were nominal in 2021 and $5 million in 2020, with future contributions not expected to be significant. The Company employs a building block approach in determining the expected long-term rate of return for plan assets with proper consideration of diversification and re-balancing. Historical markets are studied and long-term historical relationships between equities and fixed-income securities are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. Peer data and historical returns are reviewed to check for reasonableness and appropriateness. The weighted-average rate assumptions used in the measurement of the Company’s projected benefit obligations and net periodic benefit expense as of and for the years ended December 31 were as follows: Projected Benefit Obligations Net Periodic Benefit Expense 2021 2020 2021 2020 Discount rate 1.97 % 1.56 % 1.56 % 1.95 % Expected long-term return on plan assets n/a n/a 2.25 % 2.84 % The estimated future benefit payments are expected to be as follows: (In millions) Year Ending December 31, 2022 $ 33 2023 35 2024 36 2025 37 2026 38 2027-2031 205 Plan Assets The Company’s investment strategy for the U.K. plan is to allocate the assets into two pools: (i) liability-hedging assets whereby the focus is risk management, protection and insurance relative to the liability target invested in, but not limited to, money market funds, debt, U.K. government bonds and U.K. government index-linked bonds; and (ii) return-seeking assets whereby the focus is on return generation and taking risk in a controlled manner. Such assets could include equities, government bonds, high-yield bonds, property, commodities or hedge funds. The Company’s target allocation for the U.K. plan based on the investment policy at December 31, 2021 was 20% return-seeking assets and 80% liability-hedging assets. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and periodic asset and liability studies. The Company’s investment strategy for the U.S. plan employs a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. The investment portfolio contains a diversified blend of equity and fixed-income investments. The Company sets an allocation mix necessary to support the underlying plan liabilities as influenced significantly by the demographics of the participants and the frozen nature of the plan. The Company’s target allocation for the U.S. plan based on the investment policy at December 31, 2021 was 39% return-seeking assets and 61% liability-hedging assets. The following table sets forth the Company’s plan assets carried and measured at fair value on a recurring basis at December 31: (In millions) 2021 Level 1 Level 2 Level 3 Cash and cash equivalents (1) $ 230 $ — $ — Equity securities (2) 10 93 — Fixed income securities (3) 202 105 — Other investments (4) 361 7 — Total investments at fair value $ 803 $ 205 $ — (In millions) 2020 Level 1 Level 2 Level 3 Cash and cash equivalents (1) $ 24 $ — $ — Equity securities (2) 20 175 — Fixed income securities (3) 213 165 — Other investments (4) 326 (4) 9 Total investments at fair value $ 583 $ 336 $ 9 (1) Cash and cash equivalents include highly liquid investments in money market funds. (2) Equity securities primarily consist of domestic, international and global equity pooled funds. (3) Fixed income securities primarily consist of debt securities issued by U.S. and foreign government agencies and debt obligations issued by a variety of private and public corporations. (4) Other investments primarily consist of index linked government bonds, derivatives and other investments. In addition to the investments presented within the fair value hierarchy table above, the Company’s plan assets include investments in various collective trusts that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. Such investments totaled $158 million and $227 million at December 31, 2021 and 2020, respectively. Net Periodic Benefit Cost The components of net periodic benefit expense were as follows for the years ended December 31: (In millions) 2021 2020 2019 Interest cost $ 16 $ 20 $ 9 Expected return on plan assets (23) (24) (10) Net periodic benefit income $ (7) $ (4) $ (1) |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation 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 awards are typically granted in the first quarter of the year, and may also occur throughout the year in conjunction with acquisitions of businesses, and primarily consist 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. Stock option grants generally vest over a three Restricted Stock Units and Awards – The Company grants restricted stock units and awards to employees and non-employee directors. Restricted stock unit and award grants generally vest over a three Performance Share Units – The Company grants 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, synergy and integration attainment, and shareholder return. The Company recognizes compensation expense on performance share units ratably over the requisite performance period of the award, generally two 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 a discount of the closing price of the Company’s common stock on the last business day of each calendar quarter. Effective January 1, 2020, the employee discount under the employee stock purchase plan was modified from 15% to 10%. In addition, the Company temporarily suspended the employee discount, effective April 9, 2020, to help manage discretionary costs in response to the COVID-19 pandemic. Effective January 1, 2021, the discount under the employee stock purchase plan was re-established at 5%, which is considered noncompensatory and therefore does not give rise to recognizable compensation cost. The Company recognized $239 million, $369 million and $229 million of share-based compensation expense during the years ended December 31, 2021, 2020 and 2019, respectively. At December 31, 2021, the total remaining unrecognized compensation cost for unvested stock options, restricted stock units and awards and performance share units, net of estimated forfeitures, of $314 million is expected to be recognized over a weighted-average period of 2.1 years. During the years ended December 31, 2021, 2020 and 2019, stock options to purchase 4.4 million, 2.6 million and 4.7 million shares, respectively, were exercised. Acquisition of First Data Upon the completion of the First Data acquisition on July 29, 2019 (see Note 4), First Data’s equity awards, whether vested or unvested, were either settled in shares of the Company’s common stock or converted into equity awards denominated in shares of the Company’s common stock based on a defined exchange ratio of 0.303, as described below. First Data time-vesting awards that were granted at or prior to the initial public offering of First Data (the “First Data IPO”) were accelerated in full in accordance with their terms, except for certain executive officer awards and certain awards held by retirement-eligible employees, which were not accelerated and instead converted into equity awards denominated in shares of the Company’s common stock. Each such time-vesting, pre-IPO restricted stock and restricted stock unit award was settled in shares of the Company’s common stock based on the exchange ratio. Each time-vesting, pre-IPO stock option award was converted into an option to purchase a number of shares of the Company’s common stock based on the exchange ratio with an exercise price per share equal to the exercise price per share of such stock option award immediately prior to the completion of the acquisition divided by the exchange ratio. First Data equity awards granted at the time of the First Data IPO that were subject to vesting solely upon achievement of a $32 price per share of First Data common stock were converted into equity awards denominated in shares of the Company’s common stock and remained eligible to vest upon satisfaction of an adjusted target price per share of the Company’s common stock equal to the existing First Data target price divided by the exchange ratio. Such awards vested during the third quarter of 2019. Each restricted stock and restricted stock unit award that was a performance-vesting IPO award was converted into an award denominated in shares of the Company’s common stock based on the exchange ratio, and each stock option award that was a performance-vesting award was converted into an option to purchase a number of shares of the Company’s common stock based on the exchange ratio with an exercise price per share equal to the exercise price per share of such stock option award immediately prior to the completion of the acquisition divided by the exchange ratio. As converted, the performance-vesting awards continued to be governed by the same terms and conditions as were applicable prior to the acquisition and vested during the year ended December 31, 2019 upon satisfaction of the adjusted performance condition. The remaining existing First Data equity awards, whether vested or unvested, were converted into equity awards denominated in shares of the Company’s common stock based on the exchange ratio, with an exercise price per share for option awards equal to the exercise price per share of such stock option award immediately prior to the completion of the acquisition divided by the exchange ratio, and will continue to be governed by generally the same terms and conditions as were applicable prior to the acquisition; provided that, subject to compliance with Section 409A of the Internal Revenue Code, such awards will accelerate upon a covered termination as defined in the merger agreement. The portion of the fair value of the replacement awards related to services provided prior to the acquisition was $768 million and was accounted for as consideration transferred. The remaining portion of the fair value of $467 million was associated with future service and recognized as compensation expense, net of estimated forfeitures, over the weighted-average remaining vesting period of 1.2 years. The fair value of options that the Company assumed in connection with the acquisition of First Data were estimated using the Black-Scholes model with the following assumptions: Expected life (in years) 2.5 Average risk-free interest rate 1.9 % Expected volatility 27.4 % Expected dividend yield 0 % The Company determined the expected life of stock options using a midpoint approach considering the vesting schedule, contractual terms and current option life-to-date. The risk-free interest rate was based on the U.S. treasury yield curve in effect as of the acquisition date. Expected volatility was determined using a weighted-average of the implied volatility and the mean reversion volatility of the Company’s stock at the time of conversion. Share-Based Compensation Activity The weighted-average estimated fair value of stock options granted during 2021, 2020 and 2019 was $33.35, $35.02 and $28.52 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: 2021 2020 2019 Expected life (in years) 6.5 6.4 6.4 Average risk-free interest rate 0.6 % 1.8 % 2.7 % Expected volatility 29.3 % 28.3 % 28.5 % Expected dividend yield 0 % 0 % 0 % The Company determined the expected life of stock options using historical data. The risk-free interest rate was based on the U.S. treasury yield curve in effect as of the grant date. Expected volatility was 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 Weighted- Weighted- Aggregate Stock options outstanding - December 31, 2020 14,689 $ 50.82 Granted 168 111.86 Forfeited (214) 108.74 Exercised (4,414) 37.51 Stock options outstanding - December 31, 2021 10,229 $ 56.36 4.26 $ 498 Stock options exercisable - December 31, 2021 8,822 $ 48.38 3.65 $ 492 A summary of restricted stock unit, restricted stock award and performance share unit activity is as follows: Restricted Stock Units and Awards Performance Share Units Shares Weighted- Shares Weighted- Units and awards - December 31, 2020 4,797 $ 98.29 1,821 $ 95.20 Granted 3,152 104.38 255 108.68 Forfeited (420) 103.99 (158) 103.12 Vested (2,455) 99.09 (526) 92.72 Units and awards - December 31, 2021 5,074 $ 101.09 1,392 $ 96.32 The table below presents additional information related to stock option and restricted stock unit activity: (In millions) 2021 2020 2019 Total intrinsic value of stock options exercised $ 339 $ 194 $ 331 Fair value of restricted stock units vested 332 454 198 Income tax benefit from stock options exercised and restricted stock units vested 142 156 126 Cash received from stock options exercised 91 83 104 At December 31, 2021, 27.5 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 0.5 million shares in 2021, 0.5 million shares in 2020 and 0.6 million shares in 2019. At December 31, 2021, there were 23.8 million shares available for issuance under the employee stock purchase plan. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges In connection with the acquisition of First Data, the Company implemented integration plans focused on reducing the Company’s overall cost structure, including reducing vendor spend and eliminating duplicate costs. The Company recorded restructuring charges related to certain of these integration activities of $118 million, $303 million and $56 million, primarily reported in cost of processing and service and selling, general and administrative expenses within the consolidated statements of income, based upon committed actions during the years ended December 31, 2021, 2020 and 2019, respectively. The Company has completed the above integration activities as of December 31, 2021 and does not expect to incur additional restructuring or other charges associated with the First Data acquisition. Employee Termination Costs The Company recorded $95 million, $131 million and $32 million of employee termination costs related to severance and other separation costs for terminated employees, including those in connection with the acquisition of First Data, during the years ended December 31, 2021, 2020 and 2019, respectively. The following table summarizes the changes in the reserve related to the Company’s employee severance and other separation costs during the years ended December 31: (In millions) 2021 2020 Balance at beginning of year $ 27 $ 14 Severance and other separation costs 95 131 Cash payments (86) (118) Balance at end of year $ 36 $ 27 The employee severance and other separation costs accrual balance of $36 million at December 31, 2021 is expected to be paid within the next twelve months. In addition, the Company recorded $8 million, $48 million and $23 million of share-based compensation costs during the years ended December 31, 2021, 2020 and 2019, respectively, related to the accelerated vesting of equity awards for terminated employees. Facility Exit Costs During 2021 and 2020, the Company permanently vacated certain leased facilities in advance of the non-cancellable lease terms as part of the Company’s efforts to reduce facility costs. In conjunction with the exit of these leased facilities, the Company assessed the respective operating lease ROU assets for impairment by comparing the carrying values of the ROU assets to the discounted cash flows from estimated sublease payments (Level 3 of the fair value hierarchy). In addition, the Company assessed certain property and equipment associated with the leased facilities for impairment. As a result, the Company recorded non-cash impairment charges of $15 million and $124 million, reported in selling, general and administrative expense within the consolidated statements of income during the years ended December 31, 2021 and 2020, respectively, associated with the early exit of these leased facilities. In addition, the Company recorded facility exit and related costs during the year ended December 31, 2019, primarily related to relocation costs and lease exit or termination fees; however, such costs were not significant. Other Costs During 2020, in connection with initiatives to reduce the Company’s overall cost structure following the acquisition of First Data, the Company terminated certain of its existing lease agreements to upgrade and consolidate its computing infrastructure. The Company upgraded or replaced certain leased hardware under separate, new lease agreements, resulting in the early termination and disposal of existing hardware under the current lease agreements. As such, the Company has adjusted the amortization period for these existing lease agreements to coincide with the modified remaining term. Finance lease expense during the year ended December 31, 2020 includes $62 million of accelerated amortization associated with the termination of these vendor contracts. In addition, the Company executed similar terminations to certain of its existing software financing agreements. Amortization expense during the year ended December 31, 2020 includes $56 million of accelerated amortization associated with the termination of these vendor contracts. During 2019, the Company recorded a $48 million non-cash impairment charge, reported primarily in cost of processing and services within the consolidated statements of income, associated with an international core account processing platform. Such impairment charge primarily related to the write-off of certain of the Fintech segment’s purchased and capitalized software development costs; however, the charge is presented within Corporate and Other as such charge was excluded from the Company’s measure of the Fintech segment’s operating performance. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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. The income tax provision was as follows for the years ended December 31: (In millions) 2021 2020 2019 Components of income tax provision (benefit): Current: Federal $ 378 $ (25) $ 25 State 138 71 69 Foreign 109 79 57 625 125 151 Deferred: Federal (186) 189 118 State (106) (34) (18) Foreign 30 (84) (53) (262) 71 47 Income tax provision $ 363 $ 196 $ 198 A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows for the years ended December 31: 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal effect 1.6 % 2.0 % 3.7 % Foreign tax law changes 8.0 % 2.8 % — % Foreign derived intangibles income deduction (3.1) % (3.2) % (0.2) % Excess tax benefit from share-based awards (2.2) % (3.9) % (5.1) % Sale of businesses and subsidiary restructuring (2.1) % 0.7 % (2.6) % Unrecognized tax benefits (2.7) % (1.0) % (0.1) % Nondeductible executive compensation 0.7 % 2.0 % 1.0 % Valuation allowance (1.3) % (1.7) % 0.3 % Other, net 1.9 % (2.0) % 0.3 % Effective income tax rate 21.8 % 16.7 % 18.3 % Foreign tax law changes include $134 million and $32 million of income tax expense attributed to the revaluation of certain net deferred tax liabilities in connection with enacted corporate income tax rate changes in the United Kingdom (tax rate increased from 19% to 25% starting in 2023) and Argentina (tax rate increased from 25% to 35%) in 2021, and in the United Kingdom (tax rate increased from 17% to 19%) in 2020, respectively. Significant components of deferred tax assets and liabilities consisted of the following at December 31: (In millions) 2021 2020 Accrued expenses $ 171 $ 189 Share-based compensation 134 185 Net operating loss and credit carry-forwards 804 1,158 Leasing liabilities 194 171 Other 194 76 Subtotal 1,497 1,779 Valuation allowance (697) (888) Total deferred tax assets 800 891 Capitalized software development costs (633) (614) Intangible assets (2,676) (2,993) Property and equipment (280) (198) Capitalized commissions (95) (87) Investments in joint ventures (630) (908) Leasing right-of-use assets (142) (141) Other (474) (311) Total deferred tax liabilities (4,930) (5,252) Total $ (4,130) $ (4,361) The Company maintained a valuation allowance of $697 million and $888 million at December 31, 2021 and 2020, respectively, against its deferred tax assets. The decrease in the valuation allowance in 2021 is primarily the result of subsidiary restructurings. Substantially all of the valuation allowance relates to certain foreign and state net operating loss carryforwards. Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31: (In millions) 2021 2020 Noncurrent assets $ 42 $ 28 Noncurrent liabilities (4,172) (4,389) Total $ (4,130) $ (4,361) Noncurrent deferred tax assets are included in other long-term assets in the consolidated balance sheets at December 31, 2021 and 2020. The following table presents the amounts of federal, state and foreign net operating loss carryforwards and general business credit carryforwards at December 31: (In millions) 2021 2020 Net operating loss carryforwards: (1) Federal $ 178 $ 443 State 3,763 3,944 Foreign 2,580 3,343 General business credit carryforwards (2) 12 41 (1) At December 31, 2021, the Company had federal net operating loss carryforwards of $178 million, most of which do not expire, state net operating loss carryforwards of $3.8 billion, most of which expire in 2022 through 2041, and foreign net operating loss carryforwards of $2.6 billion, of which $375 million expire in 2022 through 2041, and the remainder of which do not expire. (2) At December 31, 2021, the Company had general business credit carryforwards of $12 million which expire in 2027. The Company asserts that its investment in its foreign subsidiaries is intended to be indefinitely reinvested. Undistributed historical and future earnings of its foreign subsidiaries are not considered to be indefinitely reinvested. Should these earnings be distributed in the future in the form of dividends or otherwise, the Company may be subject to foreign or U.S. taxes. The Company has the ability and intent to limit distributions so as to not make a distribution in excess of its investment in those subsidiaries. The Company will continue to monitor its global cash requirements and the need to recognize a deferred tax liability. Unrecognized tax benefits were as follows at December 31: (In millions) 2021 2020 2019 Unrecognized tax benefits - Beginning of year $ 171 $ 145 $ 49 Increases for assumed tax positions related to First Data — — 82 Increases for tax positions taken during the current year 16 9 8 Increases for tax positions taken in prior years 5 53 16 Decreases for tax positions taken in prior years (41) (23) (2) Decreases for settlements (1) (2) (1) Lapse of the statute of limitations (26) (11) (7) Unrecognized tax benefits - End of year $ 124 $ 171 $ 145 At December 31, 2021, unrecognized tax benefits of $86 million, net of federal and state benefits, would affect the effective income tax rate if recognized. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $24 million over the next twelve months as a result of possible closure of federal tax audits, potential settlements with certain states and foreign countries, and the lapse of the statute of limitations in various state and foreign jurisdictions. The Company classifies interest expense and penalties related to income taxes as components of its income tax provision. The income tax provision included interest expense (benefits) and penalties on unrecognized tax benefits of $(6) million in 2021, $3 million in 2020 and $2 million in 2019. Accrued interest expense and penalties related to unrecognized tax benefits totaled $15 million and $22 million at December 31, 2021 and 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 addition, the Company assumed certain legal proceedings in connection with the acquisition of First Data (see Note 4) primarily associated with its merchant acquiring business and certain tax matters. In the third quarter of 2021, the Company resolved a matter, for which the Company previously had accrued, with a class of merchants related to alleged violations by an independent sales organization resulting in a payment of $28 million. In the second quarter of 2020, the Company resolved a matter with the Federal Trade Commission related to a U.S.-based wholesale independent sales organization resulting in a payment of $40 million, for which the Company previously had accrued. The Company maintained accruals of $32 million at both December 31, 2021 and 2020, respectively, related to its various legal proceedings, primarily associated with the Company’s merchant acquiring business and certain tax matters as described above. The Company’s estimate of the possible range of exposure for various litigation matters in excess of amounts accrued is $0 million to approximately $50 million. 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, which are separate and distinct from the payment transactions described in Note 6, 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 $1.6 billion and $1.7 billion at December 31, 2021 and 2020, respectively. Indemnifications and Warranties 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 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Merchant Alliances A significant portion of the Company’s business is conducted through merchant alliances between the Company and financial institutions (see Note 9). To the extent the Company maintains a controlling financial interest in an alliance, the alliance’s financial statements are consolidated with those of the Company and the related processing fees are treated as an intercompany transaction and eliminated in consolidation. To the extent the Company has significant influence but not control in an alliance, the Company uses the equity method of accounting to account for its investment in the alliance. As a result, the processing and other service fees charged to merchant alliances accounted for under the equity method are recognized in the Company’s consolidated statements of income primarily as processing and services revenue. Such fees totaled $171 million, $183 million and $76 million for the years ended December 31, 2021, 2020 and 2019, respectively. No directors or officers of the Company have ownership interests in any of the alliances. The formation of each of these alliances generally involves the Company and the financial institution contributing contractual merchant relationships to the alliance and a cash payment from one owner to the other to achieve the desired ownership percentage for each. The Company and the financial institution enter into a long-term processing service agreement as part of the negotiation process. This agreement governs the Company’s provision of transaction processing services to the alliance. At December 31, 2021 and 2020, the Company had approximately $36 million and $37 million, respectively, of amounts due from unconsolidated merchant alliances included within trade accounts receivable, net in the Company’s consolidated balance sheets. Effective July 1, 2020, the Company and Bank of America dissolved their BAMS joint venture, of which the Company maintained a 51% controlling ownership interest. Upon dissolution of the joint venture’s operations, the joint venture transferred a proportionate share of value, primarily the client contracts, to each party via an agreed upon contractual separation. The revenues and expenses of the BAMS joint venture were consolidated into the Company’s financial results through the date of dissolution. See Note 4 for additional information. Joint Venture Transition Services Agreements Pursuant to certain transition services agreements, the Company provides, at fair value, various administration, business process outsourcing, and technical and data center related services for defined periods to certain joint ventures accounted for under the equity method. Amounts transacted through these agreements, including with InvestCloud through June 30, 2021, totaled $37 million, $58 million and $36 million during the years ended December 31, 2021, 2020 and 2019, respectively, and were primarily recognized as processing and services revenue in the Company’s consolidated statements of income. Share Repurchases On May 3, 2021, New Omaha Holdings L.P. (“New Omaha”), a shareholder of the Company, completed an underwritten secondary public offering of 23.0 million shares of Fiserv, Inc. common stock (the “2021 offering”). The Company did not sell any shares in, nor did it receive any proceeds from, the 2021 offering. New Omaha received all of the net proceeds from the 2021 offering. In connection with the 2021 offering, the Company repurchased from the underwriters 5.0 million shares of its common stock that were subject to the 2021 offering, at a price equal to the price per share paid by the underwriters to New Omaha in the 2021 offering (the “2021 share repurchase”). The 2021 share repurchase totaled $588 million and was funded with cash on hand. The repurchased shares were cancelled and no longer outstanding following the completion of the 2021 share repurchase. Prior to the 2021 offering, New Omaha owned approximately 13% of the Company’s outstanding shares of common stock, and immediately following the 2021 offering, New Omaha owned approximately 9% of such outstanding shares. On December 14, 2020, New Omaha completed an underwritten secondary public offering of 20.1 million shares of Fiserv, Inc. common stock (the “2020 offering”). The Company did not sell any shares in, nor did it receive any proceeds from, the 2020 offering. New Omaha received all of the net proceeds from the 2020 offering. In connection with the 2020 offering, the Company repurchased from the underwriters 1.8 million shares of its common stock that were subject to the 2020 offering, at a price equal to the price per share paid by the underwriters to New Omaha in the 2020 offering (the “2020 share repurchase”). The 2020 share repurchase totaled $200 million and was funded with cash on hand. The repurchased shares were cancelled and no longer outstanding following the completion of the 2020 share repurchase. Prior to the 2020 offering, New Omaha owned approximately 16% of the Company’s outstanding shares of common stock, and immediately following the 2020 offering, New Omaha owned approximately 13% of such outstanding shares. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s operations are comprised of the Acceptance segment, the Fintech segment and the Payments segment. The businesses in the Acceptance segment provide a wide range of commerce-enabling solutions and serve merchants of all sizes around the world. These solutions include point-of-sale merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Carat SM , the Company’s omnichannel commerce ecosystem; Clover ® , the Company’s cloud-based point-of-sale and business management platform; and Clover Connect, the Company’s independent software vendors platform. The Company distributes the products and services in the global Acceptance segment businesses through a variety of channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions and other strategic partners in the form of joint venture alliances, revenue sharing alliances and referral agreements. Merchants, financial institutions and distribution partners in the Acceptance segment are frequently clients of the Company’s other segments. The businesses in the Fintech segment provide financial institutions around the world with the technology solutions they need to run their operations, including products and services that enable financial institutions to process customer deposit and loan accounts and manage an institution’s general ledger and central information files. As a complement to the core account processing functionality, the global Fintech segment businesses also provide digital banking, financial and risk management, professional services and consulting, item processing and source capture, and other products and services that support numerous types of financial transactions. Certain of the businesses in the Fintech segment provide products or services to corporate clients to facilitate the management of financial processes and transactions. Many of the products and services offered in the Fintech segment are integrated with products and services provided by the Company’s other segments. The businesses in the Payments segment provide financial institutions and corporate clients around the world with the products and services required to process digital payment transactions. This includes card transactions such as debit, credit and prepaid card processing and services; a range of network services, security and fraud protection products, card production and print services. In addition, the Payments segment businesses offer non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products. Clients of the global Payments segment businesses reflect a wide range of industries, including merchants, distribution partners and financial institution customers in the Company’s other segments. Corporate and Other supports the reportable segments described above, and consists of amortization of acquisition-related intangible assets, unallocated corporate expenses and other activities that are not considered when management evaluates segment performance, such as gains or losses on sales of businesses or investments, costs associated with acquisition and divestiture activity, and the Company’s Output Solutions postage reimbursements. Corporate and Other also includes the historical results of the Company’s Investment Services business prior to the Company’s disposal of its controlling financial interest in February 2020 (see Note 4), as well as certain transition services revenue associated with various dispositions. Operating results for each segment are presented below and include the results of First Data from July 29, 2019, the date of acquisition. Reportable Segments (In millions) Acceptance Fintech Payments Corporate Total 2021 Processing and services revenue $ 5,560 $ 2,832 $ 4,883 $ 32 $ 13,307 Product revenue 919 190 950 860 2,919 Total revenue 6,479 3,022 5,833 892 16,226 Operating income (loss) 1,996 1,081 2,557 (3,346) 2,288 Capital expenditures, including capitalized software and other intangibles 314 222 272 352 1,160 Depreciation and amortization expense 245 226 254 2,523 3,248 2020 Processing and services revenue $ 4,736 $ 2,714 $ 4,702 $ 63 $ 12,215 Product revenue 786 187 802 862 2,637 Total revenue 5,522 2,901 5,504 925 14,852 Operating income (loss) (1) 1,427 992 2,361 (2,928) 1,852 Capital expenditures, including capitalized software and other intangibles 227 183 242 248 900 Depreciation and amortization expense 239 202 248 2,568 3,257 2019 Processing and services revenue $ 2,215 $ 2,737 $ 3,431 $ 190 $ 8,573 Product revenue 356 205 478 575 1,614 Total revenue 2,571 2,942 3,909 765 10,187 Operating income (loss) 764 885 1,658 (1,698) 1,609 Capital expenditures, including capitalized software and other intangibles 147 182 196 196 721 Depreciation and amortization expense 146 191 204 1,237 1,778 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Fiserv, Inc. Schedule II — Valuation and Qualifying Accounts (In millions) Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period Year ended December 31, 2021 Deferred tax asset valuation allowance $ 888 13 (127) (2) (77) (2) $ 697 Year ended December 31, 2020 Deferred tax asset valuation allowance $ 1,145 6 64 (327) (2) $ 888 Year ended December 31, 2019 Deferred tax asset valuation allowance (1) $ 101 8 1,036 — $ 1,145 (1) Includes the valuation allowance adjustment associated with the acquisition of First Data. (2) The decrease in the deferred tax asset valuation allowance is primarily due to subsidiary restructurings. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a controlling financial interest. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Control is typically established when ownership and voting interests in an entity are greater than 50%. Investments in which the Company has significant influence but not control are accounted for using the equity method of accounting, for which the Company’s share of net income or loss is reported within income from investments in unconsolidated affiliates and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income. Significant influence over an affiliate’s operations generally coincides with an ownership interest of between 20% and 50%; however, for partnerships and limited liability companies, an ownership interest of between 3% and 50% or board of director representation may also constitute significance influence. The Company maintains a majority controlling financial interest in certain entities, mostly related to consolidated merchant alliances (see Note 20). Noncontrolling interests represent the minority shareholders’ share of the net income or loss and equity in consolidated subsidiaries. The Company’s noncontrolling interests presented in the consolidated statements of income include net income attributable to noncontrolling interests and redeemable noncontrolling interests. Noncontrolling interests are presented as a component of equity in the consolidated balance sheets. Noncontrolling interests that are redeemable upon the occurrence of an event that is not solely within the Company’s control are presented outside of equity and are carried at their estimated redemption value if it exceeds the initial carrying value of the redeemable interest (see Note 13). |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S.”) 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. |
Revenue Recognition | 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. Additional information regarding the Company’s revenue recognition policies is included in Note 3 to the consolidated financial statements. 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. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. 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 Acceptance segment, the Fintech segment and the Payments segment (see Note 21). 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, merchant transaction processing and acquiring, electronic billing and payment services, electronic funds transfer and debit/credit processing services; consulting and professional services; and software maintenance for ongoing client support. The Company recognizes processing and services revenue 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 print and card production sales, as well as software license sales and hardware (primarily point-of-sale devices) 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. 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. The Company sells or leases hardware (point-of-sale devices) and other peripherals as part of its contracts with customers. Hardware typically consists of terminals or Clover ® devices. The Company does not manufacture hardware, rather it purchases hardware from third-party vendors and holds such hardware in inventory until purchased by a customer. The Company accounts for sales of hardware as a separate performance obligation and recognizes the revenue at its standalone selling price when the customer obtains control of the hardware. 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, to determine whether control of goods and services is obtained prior to their transfer to a customer. 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 or rebates) is allocated between distinct 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. 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. 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 |
Cash and Cash Equivalents | Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost in the consolidated balance sheets, which approximates market value. Cash and cash equivalents that were restricted from use due to regulatory or other requirements are included in other long-term assets in the consolidated balance sheets. Cash and cash equivalents held on behalf of merchants and other payees are included in settlement assets in the consolidated balance sheets. |
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. |
Leases, Company as Lessor | The Company maintains certain leasing receivables associated with its point-of-sale terminal leasing businesses. Leasing receivables are included in prepaid expenses and other current assets and other long-term assets in the consolidated balance sheets. Interest income on the Company’s leasing receivables is recognized using the effective interest method, and is included within product revenue in the consolidated statements of income. Initial direct costs incurred to obtain operating leases and other sales-type leases, in which the fair value of the underlying asset is equal to its carrying amount at the lease commencement date, are deferred and recognized over the lease term. Initial direct costs to obtain a sales-type lease are expensed as incurred if the fair value of the underlying asset is different from its carrying amount at the lease commencement date. Additional information regarding the Company’s lease policies is included in Note 11 to the consolidated financial statements.The Company owns certain point-of-sale (“POS”) terminal equipment which it leases to merchants. Leases are classified as operating or sales-type leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. The terms of the leases typically range from one month to five years. For operating leases, the minimum lease payments received are recognized as lease income on a straight-line basis over the lease term and the leased asset is included in property and equipment, net in the consolidated balance sheets and depreciated over its estimated useful life. For sales-type leases, selling profit is recognized at the commencement date of the lease to the extent the fair value of the underlying asset is different from its carrying amount. Selling profit is directly impacted by the Company’s estimate of the amount to be derived from the residual value of the asset at the end of the lease term. The residual value of the asset is computed using various assumptions, including the expected value of the underlying asset at the end of the lease term. Unearned income is recognized as interest income over the lease term. For sales-type leases, the Company derecognizes the carrying amount of the underlying leased asset and recognizes a net investment in the leased asset in the consolidated balance sheets. The net investment in a leased asset is computed based on the present value of the minimum lease payments not yet received and the present value of the residual value of the asset. |
Prepaid Expenses | Prepaid expenses represent advance payments for goods and services to be consumed in the future, such as maintenance, postage and insurance, |
Settlement Assets and Obligations | Settlement assets and obligations result from timing differences between collection and fulfillment of payment transactions and collateral amounts held to manage merchant credit risk, primarily associated with the Company’s merchant acquiring services. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners, merchants or directly from consumers. Settlement obligations represent amounts payable to merchants and payees. Certain merchant settlement assets (included in settlement receivables in Note 6) that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership but has the right to use the assets to satisfy the related settlement obligations. The Company records settlement obligations for amounts payable to merchants and for outstanding payment instruments issued to payees that have not yet been presented for settlement. Additional information regarding the Company’s settlement assets and obligations is included in Note 6 to the consolidated financial statements. |
Allowance for Merchant Credit Losses | With respect to the Company’s merchant acquiring business, the Company’s merchant customers have the legal obligation to refund any charges properly reversed by the cardholder. However, in the event the Company is not able to collect the refunded amounts from the merchants, the Company may be liable for the reversed charges. The Company’s risk in this area primarily relates to situations where the cardholder has purchased goods or services to be delivered in the future. The Company requires cash deposits, guarantees, letters of credit or other types of collateral from certain merchants to minimize this obligation. Collateral held by the Company, or held by partner banks for the Company’s benefit, is classified within settlement assets and the obligation to repay the collateral is classified within settlement obligations in the consolidated balance sheets. The Company also utilizes a number of systems and procedures to manage merchant credit risk. Despite these efforts, the Company experiences some level of losses due to merchant defaults. The aggregate merchant credit loss expense, recognized by the Company within cost of processing and services in the consolidated statements of income, was $41 million, $113 million and $40 million for the years ended December 31, 2021, 2020 and 2019, respectively. The amount of collateral available to the Company was $2.2 billion and $1.2 billion at December 31, 2021 and 2020, respectively. The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of merchant collateral. The allowance includes estimated losses from anticipated chargebacks and fraud events that have been incurred on merchants’ payment transactions that have been processed but not yet reported to the Company, which is recorded within accounts payable and accrued expenses in the consolidated balance sheets, as well as estimated losses on refunded amounts to cardholders that have not yet been collected from the merchants, which is recorded within prepaid expenses and other current assets in the consolidated balance sheets. The allowance is based primarily on the Company’s historical experience of credit losses and other relevant factors such as changes in economic conditions or increases in merchant fraud. |
Property and Equipment | Property and equipment is 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 | Customer related intangible assets represent customer contracts and relationships obtained as part of acquired businesses and are amortized using an accelerated amortization method which corresponds with the customer attrition rates used in the initial valuation of the intangibles over their estimated useful lives, generally ten four eight four Purchased software represents software licenses purchased from third parties and is amortized using the straight-line method over their estimated useful lives, generally three The Company continually develops, maintains and enhances its products and systems. Product development expenditures represented approximately 7%, 6% and 8% of the Company’s total revenue in 2021, 2020 and 2019, respectively. 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 using the straight-line method over their estimated useful lives, generally five years. The Company may, at its discretion, negotiate to pay an independent sales organization (“ISO”) an agreed-upon up-front amount in exchange for the ISO’s surrender of its right to receive commission payments from the Company related to future transactions of the ISO’s referred merchants (“residual buyout”). The amount that the Company pays for these residual buyouts is capitalized and subsequently amortized using the straight-line method over the expected life of the merchant portfolios, generally five The Company also obtains residual buyouts as part of acquired businesses. Additional information regarding the Company’s identifiable intangible assets is included in Note 7 to the consolidated financial statements. |
Goodwill | Goodwill represents the excess of purchase price over the fair value of identifiable 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, which is one level below the Company’s reportable segments. When assessing goodwill for impairment, the Company considers (i) the prior year’s amount of excess fair value over the carrying value of each reporting unit, (ii) the period of time since a reporting unit’s last quantitative test, (iii) the extent a reorganization or disposition changes the composition of one or more of the reporting units and (iv) 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. The Company elected to perform a quantitative test for certain reporting units obtained through the acquisition of First Data and for those that changed in composition, and tested the remainder of its reporting units using a qualitative approach. The Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2021 determined that its goodwill was not impaired as the estimated fair values exceeded the carrying values. However, it is reasonably possible that future developments related to the interest rate environment or the economic impact of the COVID-19 pandemic (such as an increased duration and intensity of the pandemic and/or government-imposed restrictions) or changes in significant assumptions used in the quantitative test on certain of the Company’s businesses acquired and recorded at fair value through the July 2019 acquisition of First Data (such as an increase in risk-adjusted discount rates) could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment. There is no accumulated goodwill impairment for the Company through December 31, 2021. Additional information regarding the Company’s goodwill is included in Note 8 to the consolidated financial statements. |
Asset Impairment | The Company reviews property and equipment, lease right-of-use (“ROU”) assets, 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 reporting date. Recoverability of property and equipment, lease ROU assets, 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 assesses lease ROU assets that are exited in advance of the non-cancellable lease terms by comparing the carrying values of the ROU assets to the discounted cash flows from estimated sublease payments. 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. |
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 uses the hierarchy prescribed in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements , and 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 three levels in the hierarchy are as follows: • Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. • Level 2 – Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including but not limited to quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities and observable inputs other than quoted prices such as interest rates or yield curves. • Level 3 – Unobservable inputs reflecting management’s judgments about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Additional information regarding the Company’s fair value measurements is included in Note 10 to the consolidated financial statements. |
Foreign Currency | The U.S. dollar is the functional currency of the Company’s U.S.-based businesses and certain foreign-based businesses. Where the functional currency differs from the U.S. dollar, assets and liabilities 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 reporting period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are included in determining net income for the reporting period. The Company has designated its Euro- and British Pound- denominated senior notes and Euro-denominated commercial paper notes as net investment hedges to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro and the British Pound (see Note 14). Accordingly, foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation, net of tax, within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss within the consolidated balance sheets until the sale or complete liquidation of the underlying foreign subsidiaries. |
Derivatives | Derivatives are entered into for periods consistent with related underlying exposures and are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. Changes in the fair value of derivatives designated as a cash flow hedge are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. |
Employee Benefit Plans | The Company maintains frozen defined benefit pension plans covering certain employees in Europe and the U.S. The Company recognizes actuarial gains/losses and prior service cost in the consolidated balance sheets and recognizes changes in these amounts during the year in which changes occur through other comprehensive income (loss). The Company uses various assumptions when computing amounts relating to its defined benefit pension plan obligations and their associated expenses (including the discount rate and the expected rate of return on plan assets). Additional information regarding the Company’s employee benefit plans is included in Note 15 to the consolidated financial statements. |
Cost of Processing, Services, and Product | Cost of processing and services consists of costs directly associated with providing services to clients and includes the following: personnel; equipment and data communication; infrastructure costs, including costs to maintain software applications; client support; certain depreciation and amortization; and other operating expenses. Cost of product consists of costs directly associated with the products sold and includes the following: costs of materials, postage and software development; hardware costs (primarily point-of-sale devices); personnel; infrastructure costs; certain depreciation and amortization; and other costs directly associated with product revenue. |
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; third-party commissions; advertising and promotional costs; certain depreciation and amortization; and other selling and administrative expenses. |
Interest Expense, Net | Interest expense, net consists of interest expense primarily associated with the Company’s outstanding borrowings and finance lease obligations, as well as interest income primarily associated with the Company’s investment securities. |
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. Liabilities are established for unrecognized tax benefits, attributable to differences between a tax position taken or expected to be taken in a tax return and the benefit recognized in the financial statements. In establishing a liability for an unrecognized tax benefit, assumptions are made in determining whether, and the extent to which, a tax position will be sustained. A tax position is recognized only when it is more likely than not to be sustained upon examination by the relevant taxing authority, based on its technical merits. The amount of tax benefit recognized reflects the largest benefit the Company believes is more likely than not to be realized upon ultimate settlement. As additional information becomes available, the liability for unrecognized tax benefits is reevaluated and adjusted, as appropriate. Tax benefits ultimately realized can differ from amounts previously recognized due to uncertainties, with any such differences generally impacting the provision for income tax. |
Net Income Per Share | Net income per share attributable to Fiserv, Inc. in each period is calculated using actual, unrounded amounts. Basic net income per share is computed by dividing net income attributable to Fiserv, Inc. by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income attributable to Fiserv, Inc. by the weighted-average number of common shares and common stock equivalents outstanding during the period. Common stock equivalents consist of outstanding stock options, unvested restricted stock units and unvested restricted stock awards, and are computed using the treasury stock method. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”), which clarifies certain interactions between the guidance to account for certain equity securities, investments under the equity method of accounting, and forward contracts or purchased options to purchase securities under Topic 321, Topic 323 and Topic 815. For public entities, ASU 2020-01 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2020-01 effective January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which introduces a number of amendments that are designed to simplify the application of accounting for income taxes. Such amendments include removing certain exceptions for intraperiod tax allocation, interim reporting when a year-to-date loss exceeds the anticipated loss, reflecting the effect of an enacted change in tax laws or rates in the annual effective tax rate and recognition of deferred taxes related to outside basis differences for ownership changes in investments. ASU 2019-12 also provides clarification related to when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. In addition, ASU 2019-12 provides guidance on the recognition of a franchise tax (or similar tax) that is partially based on income as an income-based tax and accounting for any incremental amount incurred as a non-income-based tax. For public entities, ASU 2019-12 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 effective January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13” or “CECL”), which prescribes an impairment model for most financial instruments 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 instrument. For public entities, ASU 2016-13 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. 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 adopted ASU 2016-13 effective January 1, 2020 using the required modified retrospective approach, which resulted in a cumulative-effect decrease to beginning retained earnings of $45 million. Financial assets and liabilities held by the Company subject to the “expected credit loss” model prescribed by CECL include trade and other receivables, net investments in leases, settlement asset receivables and other credit exposures such as financial guarantees not accounted for as insurance. Recently Issued Accounting Pronouncements In 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832) (“ASU 2021-10”), which requires that an entity provide certain disclosures in its annual financial statements about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. ASU 2021-10 is effective for all business entities for fiscal years beginning after December 15, 2021 and may be applied either prospectively or retrospectively to the transactions reflected in the financial statements at the date of initial application. The Company is currently assessing the impact that the adoption of ASU 2021-10 will have on its disclosures. In 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), which requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Generally, this should result in recognition and measurement of contract assets and contract liabilities at carryover value consistent with how they were recognized and measured in the acquiree’s financial statements, providing consistent recognition and enhanced comparability with revenue contracts with customers not acquired in a business combination. Prior to adoption of ASU 2021-08, an acquirer generally recognized contract assets and contract liabilities acquired in a business combination at fair value on the acquisition date. For public entities, ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Entities are required to apply a prospective transition approach upon adoption, unless early adoption occurs in an interim period. The Company adopted ASU 2021-08 effective January 1, 2022, with prospective application to business combinations occurring after adoption. In 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments |
Acquisitions | The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is deductible for tax purposes. Goodwill is primarily attributed to synergies from future expected economic benefits, including enhanced revenue growth from expanded capabilities and geographic presence as well as substantial cost savings from duplicative overhead, streamlined operations and enhanced operational efficiency. The fair values of the assets acquired and liabilities assumed were determined using the income and cost approaches. In many cases, the determination of the fair values required estimates about discount rates, growth and attrition rates, future expected cash flows and other future events that are judgmental. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in ASC 820, Fair Value Measurements . Intangible assets consisting of customer relationships, technology and trade names were valued using the multi-period excess earnings method (“MEEM”), or the relief from royalty (“RFR”) method, both are forms of the income approach. A cost and market approach was applied, as appropriate, for property and equipment, including land. • Customer relationship intangible assets were valued using the MEEM method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue and profit attributable to the asset, retention rate, applicable tax rate, and contributory asset charges, among other factors), the discount rate, reflecting the risks inherent in the future cash flow stream, an assessment of the asset’s life cycle, and the tax amortization benefit, among other factors. • Technology and trade name intangible assets were valued using the RFR method. The significant assumptions used include the estimated annual net cash flows (including appropriate revenue attributable to the asset, applicable tax rate, royalty rate, and other factors such as technology related obsolescence rates), the discount rate, reflecting the risks inherent in the future cash flow stream, and the tax amortization benefit, among other factors. • The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used, as appropriate, for property and equipment. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation. • The market approach, which estimates value by leveraging comparable land sale data/listings and qualitatively comparing them to the in-scope properties, was used to value the land. • An income approach was applied to derive fair value for both consolidated investments with a noncontrolling interest and equity method investments accounted for under the equity method of accounting. The significant assumptions used include the estimated annual cash flows, the discount rate, the long-term growth rate, and operating margin, among other factors. |
Leases, Company as Lessee | The Company uses the right-of-use model to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as variable lease expenses when incurred. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The depreciable life of the ROU assets and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option. The Company uses its incremental borrowing rate to discount future lease payments in the calculation of the lease liability and ROU asset based on the information available on the commencement date for each lease. The Company’s leases typically do not provide an implicit rate. The determination of the incremental borrowing rate requires judgment and is determined using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization, currency and term to align with the terms of the lease. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of cash and cash equivalents | The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows at December 31: (In millions) 2021 2020 2019 Cash and cash equivalents on the consolidated balance sheets $ 835 $ 906 $ 893 Cash and cash equivalents included in settlement assets (see Note 6) 2,361 1,650 1,245 Other restricted cash 9 13 40 Total cash and cash equivalents on the consolidated statements of cash flows $ 3,205 $ 2,569 $ 2,178 |
Schedule of property and equipment | Property and equipment consisted of the following at December 31: (In millions) Estimated 2021 2020 Land — $ 48 $ 54 Data processing equipment 3 to 5 years 2,302 1,666 Buildings and leasehold improvements 5 to 40 years 512 555 Furniture and equipment 5 to 8 years 372 636 3,234 2,911 Less: Accumulated depreciation (1,492) (1,283) Total $ 1,742 $ 1,628 |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following at December 31: (In millions) 2021 2020 Trade accounts payable $ 593 $ 437 Client deposits 783 702 Accrued compensation and benefits 392 419 Accrued taxes 154 130 Accrued interest 216 220 Other accrued expenses 1,412 1,278 Total $ 3,550 $ 3,186 |
Schedule of interest expense, net | Interest expense, net consisted of the following for the years ended December 31: (In millions) 2021 2020 2019 Interest expense $ 696 $ 716 $ 507 Interest income 3 7 34 Interest expense, net $ 693 $ 709 $ 473 |
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 at December 31: (In millions) 2021 2020 2019 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – basic 662.6 672.1 512.3 Common stock equivalents 9.0 11.3 10.3 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – diluted 671.6 683.4 522.6 |
Schedule of supplemental cash flow information | Supplemental Cash Flow Information (In millions) Year Ended December 31, 2021 2020 2019 Interest paid $ 648 $ 673 $ 291 Income taxes paid 666 156 197 Treasury stock purchases settled after the balance sheet date — — 6 Distribution of nonmonetary assets (see Note 4) — 726 — Software obtained under financing arrangements 143 308 — |
Restrictions on cash and cash equivalents | The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows at December 31: (In millions) 2021 2020 2019 Cash and cash equivalents on the consolidated balance sheets $ 835 $ 906 $ 893 Cash and cash equivalents included in settlement assets (see Note 6) 2,361 1,650 1,245 Other restricted cash 9 13 40 Total cash and cash equivalents on the consolidated statements of cash flows $ 3,205 $ 2,569 $ 2,178 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The tables below present the Company’s revenue disaggregated by type of revenue, including a reconciliation with its reportable segments. The majority of the Company’s revenue is earned domestically, with revenue generated outside the U.S. comprising approximately 14%, 13% and 12% of total revenue in 2021, 2020 and 2019, respectively. (In millions) Reportable Segments Year Ended December 31, 2021 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 5,511 $ 1,544 $ 4,497 $ 32 $ 11,584 Hardware, print and card production 830 44 913 — 1,787 Professional services 43 471 265 — 779 Software maintenance — 557 11 — 568 License and termination fees 47 186 65 — 298 Output solutions postage — — — 860 860 Other 48 220 82 — 350 Total Revenue $ 6,479 $ 3,022 $ 5,833 $ 892 $ 16,226 (In millions) Reportable Segments Year Ended December 31, 2020 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 4,696 $ 1,426 $ 4,348 $ 58 $ 10,528 Hardware, print and card production 714 51 771 — 1,536 Professional services 29 465 233 1 728 Software maintenance — 563 3 2 568 License and termination fees 28 189 68 — 285 Output solutions postage — — — 864 864 Other 55 207 81 — 343 Total Revenue $ 5,522 $ 2,901 $ 5,504 $ 925 $ 14,852 (In millions) Reportable Segments Year Ended December 31, 2019 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 2,205 $ 1,382 $ 3,110 $ 166 $ 6,863 Hardware, print and card production 323 51 458 — 832 Professional services 4 483 172 10 669 Software maintenance — 570 3 15 588 License and termination fees 9 255 59 2 325 Output solutions postage — — — 572 572 Other 30 201 107 — 338 Total Revenue $ 2,571 $ 2,942 $ 3,909 $ 765 $ 10,187 |
Contract with customer, asset and liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers at December 31: (In millions) 2021 2020 2019 Contract assets $ 541 $ 433 $ 382 Contract liabilities 810 733 647 |
Schedule of remaining performance obligations | The following table includes estimated processing, services and product revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at December 31, 2021: (In millions) Year Ending December 31, 2022 $ 2,174 2023 1,790 2024 1,416 2025 955 Thereafter 1,418 |
Capitalized sales commissions and conversion or implementation costs | Capitalized sales commissions and conversion or implementation costs were as follows at December 31: (In millions) 2021 2020 Capitalized sales commissions $ 437 $ 402 Capitalized conversion or implementation costs 374 290 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of values and weighted-average useful life allocated to intangible assets | The amounts allocated to identifiable intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 90 17 years Residual buyouts 20 8 years Acquired software and technology 6 7 years Non-compete agreements and other 11 5 years Total $ 127 14 years (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 90 6 years Customer relationships 35 6 years Non-compete agreements and other 17 4 years Total $ 142 6 years The amounts allocated to intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 13,458 15 years Acquired software and technology 2,324 7 years Trade names 490 9 years Total $ 16,272 14 years The amounts allocated to intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 31 6 years Customer relationships 9 10 years Residual buyouts 7 5 years Total $ 47 7 years The amounts allocated to intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 32 14 years Residual buyouts 35 9 years Acquired software and technology 14 8 years Total $ 81 11 years |
Schedule of purchase price allocation | The allocation of purchase price recorded for Ondot was finalized in the third quarter of 2021 as follows: (In millions) Cash and cash equivalents $ 13 Receivables and other assets 9 Intangible assets 142 Goodwill 173 Payables and other liabilities (31) Total consideration $ 306 Less: Fair value of previously held equity interest (22) Total purchase price $ 284 (In millions) Assets acquired (1) Cash and cash equivalents $ 310 Trade accounts receivable 1,747 Prepaid expenses and other current assets 1,047 Settlement assets (2) 10,398 Property and equipment 1,156 Customer relationships 13,458 Other intangible assets 2,814 Goodwill 30,811 Investments in unconsolidated affiliates 2,676 Other long-term assets 1,191 Total assets acquired $ 65,608 Liabilities assumed (1) Accounts payable and accrued expenses $ 1,613 Short-term and current maturities of long-term debt (3) 243 Contract liabilities 71 Settlement obligations 10,398 Deferred income taxes 3,671 Long-term contract liabilities 16 Long-term debt and other long-term liabilities (4) 1,261 Total liabilities assumed $ 17,273 Net assets acquired $ 48,335 Redeemable noncontrolling interests 252 Noncontrolling interests 1,608 Total purchase price $ 46,475 (1) In connection with the acquisition of First Data, the Company acquired two businesses which it intended to sell and subsequently sold in October 2019. Therefore, such businesses were classified as held for sale and were included within prepaid expenses and other current assets and accounts payable and accrued expenses in the above allocation of purchase price (see Note 5). (2) Includes $922 million of settlement cash and cash equivalents (see Note 1). (3) Includes foreign lines of credit, current portion of finance lease obligations and other financing obligations (see Note 12). (4) Includes the receivable securitized loan and the long-term portion of finance lease obligations (see Note 12). |
Schedule of total purchase price paid | The total purchase price paid for First Data was as follows: (In millions) Fair value of stock exchanged for shares of Fiserv, Inc. (1) $ 29,293 Repayment of First Data debt 16,414 Fair value of vested portion of First Data stock awards exchanged for Fiserv, Inc. awards (2) 768 Total purchase price $ 46,475 (1) The fair value of the 286 million shares of the Company’s common stock issued as of the acquisition date was determined based on a per share price of $102.30, which was the closing price of the Company’s common stock on July 26, 2019, the last trading day before the acquisition closed the morning of July 29, 2019. This includes a nominal amount of cash paid in lieu of fractional shares. (2) Represents the portion of the fair value of the replacement awards related to services provided prior to the acquisition. The remaining portion of the fair value is associated with future service and will be recognized as expense over the future service period. See Note 16 for additional information. |
Schedule of pro forma combined financial information | The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the year ended December 31, 2019 as if the acquisition of First Data had occurred on January 1, 2018. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the acquisition of First Data been completed on January 1, 2018. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of First Data. (In millions, except for per share data) 2019 Total revenue $ 15,775 Net income 1,520 Net income attributable to Fiserv, Inc. 1,457 Net income per share attributable to Fiserv, Inc.: Basic $ 2.14 Diluted $ 2.10 |
Settlement Assets and Obligat_2
Settlement Assets and Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of settlement assets and obligations | The principal components of the Company’s settlement assets and obligations were as follows at December 31: (In millions) 2021 2020 Settlement assets Cash and cash equivalents $ 2,361 $ 1,650 Receivables 11,291 9,871 Total settlement assets $ 13,652 $ 11,521 Settlement obligations Payment instruments outstanding $ 460 $ 483 Card settlements and collateral deposits due to merchants 13,192 11,038 Total settlement obligations $ 13,652 $ 11,521 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets by class | Identifiable intangible assets consisted of the following at December 31: (In millions) Gross Accumulated Net Book 2021 Customer relationships $ 15,103 $ 5,112 $ 9,991 Acquired software and technology 2,522 901 1,621 Trade names 612 228 384 Purchased software 1,133 479 654 Capitalized software and other intangibles 1,879 520 1,359 Total $ 21,249 $ 7,240 $ 14,009 (In millions) Gross Accumulated Net Book 2020 Customer relationships $ 15,271 $ 3,668 $ 11,603 Acquired software and technology 2,562 879 1,683 Trade names 618 172 446 Purchased software 913 207 706 Capitalized software and other intangibles 1,332 412 920 Total $ 20,696 $ 5,338 $ 15,358 |
Schedule of amortization expense of intangible assets | Amortization expense associated with the above identifiable intangible assets was as follows for the years ended December 31: (In millions) 2021 2020 2019 Amortization expense $ 2,548 $ 2,563 $ 1,299 |
Schedule of estimated annual amortization expense of intangible assets | The Company estimates that annual amortization expense with respect to intangible assets recorded at December 31, 2021 will be as follows: (In millions) Year Ending December 31, 2022 $ 2,466 2023 2,216 2024 1,780 2025 1,531 2026 1,247 Thereafter 4,769 Total $ 14,009 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents changes in goodwill during 2021 and 2020. Reportable Segments (In millions) Acceptance Fintech Payments Total Goodwill - December 31, 2019 $ 21,189 $ 2,104 $ 12,745 $ 36,038 Acquisitions and valuation adjustments 332 — 62 394 Foreign currency translation (113) 4 (1) (110) Goodwill - December 31, 2020 21,408 2,108 12,806 36,322 Acquisitions and valuation adjustments 321 — 197 518 Transfers (1) — (67) 67 — Foreign currency translation (347) (2) (58) (407) Goodwill - December 31, 2021 $ 21,382 $ 2,039 $ 13,012 $ 36,433 (1) Relates to the migration of a line of business from the Fintech segment to the Payments segment. This migration did not have a material impact on the results of operations of the affected reportable segments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis consisted of the following at December 31: Fair Value (In millions) Classification Fair Value Hierarchy 2021 2020 Assets Cash flow hedges Prepaid expenses and other current assets Level 2 $ 6 $ 9 Liabilities Contingent consideration Accounts payable and accrued expenses Level 3 $ 2 $ 46 Contingent consideration Other long-term liabilities Level 3 32 — Contingent debt guarantee Accounts payable and accrued expenses Level 3 4 — Contingent debt guarantee Other long-term liabilities Level 3 — 8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Balance sheet classification of lease assets and liabilities | Lease Balances (In millions) December 31, 2021 2020 Assets Operating lease assets (1) $ 575 $ 504 Finance lease assets (2) 487 267 Total lease assets $ 1,062 $ 771 Liabilities Current: Operating lease liabilities (1) $ 122 $ 125 Finance lease liabilities (2) 130 104 Noncurrent: Operating lease liabilities (1) 615 471 Finance lease liabilities (2) 313 271 Total lease liabilities $ 1,180 $ 971 (1) Operating lease assets are included within other long-term assets accounts payable and accrued expenses other long-term liabilities property and equipment, net short-term and current maturities of long-term debt long-term debt |
Schedule of cost, supplemental cash flow and other information related to leases | Components of Lease Cost (In millions) Year Ended December 31, 2021 2020 2019 Operating lease cost (1) $ 162 $ 198 $ 207 Finance lease cost: (2) Amortization of right-of-use assets 122 150 40 Interest on lease liabilities 23 21 8 Total lease cost $ 307 $ 369 $ 255 (1) Operating lease expense is included within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the consolidated statements of income. Operating lease expense includes approximately $39 million, $50 million and $56 million of variable lease costs for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Finance lease expense is recorded as depreciation and amortization expense within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, and interest expense, net in the consolidated statements of income. Finance lease expense includes $62 million of accelerated amortization associated with the termination of certain vendor contracts during the year ended December 31, 2020 (see Note 17). Supplemental Cash Flow Information (In millions) Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 153 $ 155 $ 139 Operating cash flows from finance leases 23 21 8 Financing cash flows from finance leases 161 187 37 Right-of-use assets obtained in exchange for lease liabilities: (1) Operating leases $ 197 $ 46 $ 441 Finance leases 231 399 288 (1) Amounts in 2019 include the right-of-use assets and lease liabilities obtained through the acquisition of First Data. Lease Term and Discount Rate December 31, 2021 2020 Weighted-average remaining lease term: Operating leases 10 years 6 years Finance leases 3 years 4 years Weighted-average discount rate: Operating leases 2.7 % 2.9 % Finance leases 2.7 % 3.5 % |
Operating lease maturity | Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021: (In millions) Year Ending December 31, Operating Leases (1) Finance Leases 2022 $ 125 $ 138 2023 112 146 2024 101 127 2025 82 45 2026 74 14 Thereafter 351 — Total lease payments 845 470 Less: Interest (108) (27) Present value of lease liabilities $ 737 $ 443 (1) Operating lease payments include $6 million related to options to extend lease terms that are reasonably certain of being exercised. |
Finance lease maturity under | Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021: (In millions) Year Ending December 31, Operating Leases (1) Finance Leases 2022 $ 125 $ 138 2023 112 146 2024 101 127 2025 82 45 2026 74 14 Thereafter 351 — Total lease payments 845 470 Less: Interest (108) (27) Present value of lease liabilities $ 737 $ 443 (1) Operating lease payments include $6 million related to options to extend lease terms that are reasonably certain of being exercised. |
Schedule of components of lease income | Components of Lease Income (In millions) Year Ended December 31, 2021 2020 2019 Sales-type leases: Selling profit (1) $ 61 $ 48 $ 20 Interest income (1) 85 76 33 Operating lease income (2) 297 257 36 (1) Selling profit includes $141 million, $106 million and $48 million recorded within product revenue (2) Operating lease income includes a nominal amount of variable lease income and is included within product revenue |
Schedule of components of lease income | Components of Lease Income (In millions) Year Ended December 31, 2021 2020 2019 Sales-type leases: Selling profit (1) $ 61 $ 48 $ 20 Interest income (1) 85 76 33 Operating lease income (2) 297 257 36 (1) Selling profit includes $141 million, $106 million and $48 million recorded within product revenue (2) Operating lease income includes a nominal amount of variable lease income and is included within product revenue |
Schedule of components of net investment in sales-type leases | Components of Net Investment in Sales-Type Leases (In millions) December 31, 2021 2020 Minimum lease payments $ 395 $ 355 Residual values 23 23 Less: Unearned interest income (157) (141) Net investment in leases (1) $ 261 $ 237 (1) Net investments in leased assets are included within prepaid expenses and other current assets (current portion) and other long-term assets (noncurrent portion) in the consolidated balance sheets. |
Schedule of maturities of future minimum lease payments | Future minimum lease payments receivable on sales-type leases were as follows at December 31, 2021: (In millions) Year Ending December 31, Sales-Type Leases 2022 $ 164 2023 120 2024 76 2025 32 2026 3 Thereafter — Total minimum lease payments $ 395 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt, net of discounts and debt issuance costs | The Company’s debt consisted of the following at December 31: (In millions) 2021 2020 Short-term and current maturities of long-term debt: Foreign lines of credit $ 240 $ 144 Finance lease and other financing obligations 268 240 Total short-term and current maturities of long-term debt $ 508 $ 384 Long-term debt: 4.750% senior notes due June 2021 $ — $ 400 3.500% senior notes due October 2022 700 700 0.375% senior notes due July 2023 (Euro-denominated) 566 612 3.800% senior notes due October 2023 1,000 1,000 2.750% senior notes due July 2024 2,000 2,000 3.850% senior notes due June 2025 900 900 2.250% senior notes due July 2025 (British Pound-denominated) 705 709 3.200% senior notes due July 2026 2,000 2,000 2.250% senior notes due June 2027 1,000 1,000 1.125% senior notes due July 2027 (Euro-denominated) 566 612 4.200% senior notes due October 2028 1,000 1,000 3.500% senior notes due July 2029 3,000 3,000 2.650% senior notes due June 2030 1,000 1,000 1.625% senior notes due July 2030 (Euro-denominated) 566 612 3.000% senior notes due July 2031 (British Pound-denominated) 705 709 4.400% senior notes due July 2049 2,000 2,000 U.S. commercial paper notes 916 — Euro commercial paper notes 905 — Revolving credit facility 97 22 Receivable securitized loan 500 425 Term loan facility 200 1,250 Unamortized discount and deferred financing costs (125) (155) Finance lease and other financing obligations 528 504 Total long-term debt $ 20,729 $ 20,300 |
Schedule of annual maturities of total debt | Annual maturities of the Company’s total debt were as follows at December 31, 2021: (In millions) Year Ending December 31, 2022 $ 508 2023 4,923 2024 2,391 2025 1,677 2026 2,027 Thereafter 9,836 Total principal payments 21,362 Unamortized discount and deferred financing costs (125) Total debt $ 21,237 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of redeemable noncontrolling interests activity | The following table presents a summary of the redeemable noncontrolling interests activity during the years ended December 31: (In millions) 2021 2020 Balance at beginning of year $ 259 $ 262 Distributions paid to redeemable noncontrolling interests (43) (42) Share of income 44 39 Adjustment to estimated redemption value 18 — Balance at end of year $ 278 $ 259 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive loss by component, net of income taxes | Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: Year Ended December 31, 2021 (In millions) Cash Flow Foreign Pension Plans Total Balance at December 31, 2020 $ (121) $ (254) $ (12) $ (387) Other comprehensive income (loss) before reclassifications 6 (422) 50 (366) Amounts reclassified from accumulated other comprehensive loss 8 — — 8 Net current-period other comprehensive income (loss) 14 (422) 50 (358) Balance at December 31, 2021 $ (107) $ (676) $ 38 $ (745) Year Ended December 31, 2020 (In millions) Cash Flow Foreign Pension Plans Total Balance at December 31, 2019 $ (141) $ (33) $ (6) $ (180) Other comprehensive income (loss) before reclassifications 5 (221) (6) (222) Amounts reclassified from accumulated other comprehensive loss 15 — — 15 Net current-period other comprehensive income (loss) 20 (221) (6) (207) Balance at December 31, 2020 $ (121) $ (254) $ (12) $ (387) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of funded status of defined benefit pension plans | The following table provides a reconciliation of benefit obligations, plan assets and the funded status of these defined benefit plans as of and for the years ended December 31: U.K. plan U.S. and other plans ( In millions ) 2021 2020 2021 2020 Change in projected benefit obligations: Balance at beginning of year $ (777) $ (672) $ (238) $ (225) Interest cost (11) (14) (5) (6) Settlements 16 — — — Actuarial gain (loss) 15 (93) 9 (18) Benefits paid 21 30 12 13 Foreign currency translation — (28) 1 (2) Balance at end of year $ (736) $ (777) $ (221) $ (238) Change in fair value of plan assets: Balance at beginning of year $ 974 $ 860 $ 181 $ 167 Actual return on plan assets 47 110 14 22 Company contribution — — — 5 Settlements (16) — — — Benefits paid (21) (30) (12) (13) Foreign currency translation (1) 34 — — Balance at end of year $ 983 $ 974 $ 183 $ 181 Funded status of the plans $ 247 $ 197 $ (38) $ (57) |
Schedule of weighted-average rate assumptions | The weighted-average rate assumptions used in the measurement of the Company’s projected benefit obligations and net periodic benefit expense as of and for the years ended December 31 were as follows: Projected Benefit Obligations Net Periodic Benefit Expense 2021 2020 2021 2020 Discount rate 1.97 % 1.56 % 1.56 % 1.95 % Expected long-term return on plan assets n/a n/a 2.25 % 2.84 % |
Schedule of expected future benefit payments | The estimated future benefit payments are expected to be as follows: (In millions) Year Ending December 31, 2022 $ 33 2023 35 2024 36 2025 37 2026 38 2027-2031 205 |
Schedule of allocation of plan assets | The following table sets forth the Company’s plan assets carried and measured at fair value on a recurring basis at December 31: (In millions) 2021 Level 1 Level 2 Level 3 Cash and cash equivalents (1) $ 230 $ — $ — Equity securities (2) 10 93 — Fixed income securities (3) 202 105 — Other investments (4) 361 7 — Total investments at fair value $ 803 $ 205 $ — (In millions) 2020 Level 1 Level 2 Level 3 Cash and cash equivalents (1) $ 24 $ — $ — Equity securities (2) 20 175 — Fixed income securities (3) 213 165 — Other investments (4) 326 (4) 9 Total investments at fair value $ 583 $ 336 $ 9 (1) Cash and cash equivalents include highly liquid investments in money market funds. (2) Equity securities primarily consist of domestic, international and global equity pooled funds. (3) Fixed income securities primarily consist of debt securities issued by U.S. and foreign government agencies and debt obligations issued by a variety of private and public corporations. (4) Other investments primarily consist of index linked government bonds, derivatives and other investments. |
Schedule of components of net periodic benefit expense | The components of net periodic benefit expense were as follows for the years ended December 31: (In millions) 2021 2020 2019 Interest cost $ 16 $ 20 $ 9 Expected return on plan assets (23) (24) (10) Net periodic benefit income $ (7) $ (4) $ (1) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of assumptions used to determine fair value of stock options assumed in acquisition | The fair value of options that the Company assumed in connection with the acquisition of First Data were estimated using the Black-Scholes model with the following assumptions: Expected life (in years) 2.5 Average risk-free interest rate 1.9 % Expected volatility 27.4 % Expected dividend yield 0 % 2021 2020 2019 Expected life (in years) 6.5 6.4 6.4 Average risk-free interest rate 0.6 % 1.8 % 2.7 % Expected volatility 29.3 % 28.3 % 28.5 % Expected dividend yield 0 % 0 % 0 % |
Schedule of assumptions used to determine fair value of stock options granted | The fair value of options that the Company assumed in connection with the acquisition of First Data were estimated using the Black-Scholes model with the following assumptions: Expected life (in years) 2.5 Average risk-free interest rate 1.9 % Expected volatility 27.4 % Expected dividend yield 0 % 2021 2020 2019 Expected life (in years) 6.5 6.4 6.4 Average risk-free interest rate 0.6 % 1.8 % 2.7 % Expected volatility 29.3 % 28.3 % 28.5 % Expected dividend yield 0 % 0 % 0 % |
Summary of stock option activity | A summary of stock option activity is as follows: Shares Weighted- Weighted- Aggregate Stock options outstanding - December 31, 2020 14,689 $ 50.82 Granted 168 111.86 Forfeited (214) 108.74 Exercised (4,414) 37.51 Stock options outstanding - December 31, 2021 10,229 $ 56.36 4.26 $ 498 Stock options exercisable - December 31, 2021 8,822 $ 48.38 3.65 $ 492 |
Summary of restricted stock and performance activity | A summary of restricted stock unit, restricted stock award and performance share unit activity is as follows: Restricted Stock Units and Awards Performance Share Units Shares Weighted- Shares Weighted- Units and awards - December 31, 2020 4,797 $ 98.29 1,821 $ 95.20 Granted 3,152 104.38 255 108.68 Forfeited (420) 103.99 (158) 103.12 Vested (2,455) 99.09 (526) 92.72 Units and awards - December 31, 2021 5,074 $ 101.09 1,392 $ 96.32 |
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) 2021 2020 2019 Total intrinsic value of stock options exercised $ 339 $ 194 $ 331 Fair value of restricted stock units vested 332 454 198 Income tax benefit from stock options exercised and restricted stock units vested 142 156 126 Cash received from stock options exercised 91 83 104 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of changes in reserves | The following table summarizes the changes in the reserve related to the Company’s employee severance and other separation costs during the years ended December 31: (In millions) 2021 2020 Balance at beginning of year $ 27 $ 14 Severance and other separation costs 95 131 Cash payments (86) (118) Balance at end of year $ 36 $ 27 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of pretax income and income tax provision (benefit) for continuing operations | The income tax provision was as follows for the years ended December 31: (In millions) 2021 2020 2019 Components of income tax provision (benefit): Current: Federal $ 378 $ (25) $ 25 State 138 71 69 Foreign 109 79 57 625 125 151 Deferred: Federal (186) 189 118 State (106) (34) (18) Foreign 30 (84) (53) (262) 71 47 Income tax provision $ 363 $ 196 $ 198 |
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 is as follows for the years ended December 31: 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal effect 1.6 % 2.0 % 3.7 % Foreign tax law changes 8.0 % 2.8 % — % Foreign derived intangibles income deduction (3.1) % (3.2) % (0.2) % Excess tax benefit from share-based awards (2.2) % (3.9) % (5.1) % Sale of businesses and subsidiary restructuring (2.1) % 0.7 % (2.6) % Unrecognized tax benefits (2.7) % (1.0) % (0.1) % Nondeductible executive compensation 0.7 % 2.0 % 1.0 % Valuation allowance (1.3) % (1.7) % 0.3 % Other, net 1.9 % (2.0) % 0.3 % Effective income tax rate 21.8 % 16.7 % 18.3 % |
Schedule of deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities consisted of the following at December 31: (In millions) 2021 2020 Accrued expenses $ 171 $ 189 Share-based compensation 134 185 Net operating loss and credit carry-forwards 804 1,158 Leasing liabilities 194 171 Other 194 76 Subtotal 1,497 1,779 Valuation allowance (697) (888) Total deferred tax assets 800 891 Capitalized software development costs (633) (614) Intangible assets (2,676) (2,993) Property and equipment (280) (198) Capitalized commissions (95) (87) Investments in joint ventures (630) (908) Leasing right-of-use assets (142) (141) Other (474) (311) Total deferred tax liabilities (4,930) (5,252) Total $ (4,130) $ (4,361) Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31: (In millions) 2021 2020 Noncurrent assets $ 42 $ 28 Noncurrent liabilities (4,172) (4,389) Total $ (4,130) $ (4,361) |
Schedule of operating loss carryforwards and general business credit carryforwards | The following table presents the amounts of federal, state and foreign net operating loss carryforwards and general business credit carryforwards at December 31: (In millions) 2021 2020 Net operating loss carryforwards: (1) Federal $ 178 $ 443 State 3,763 3,944 Foreign 2,580 3,343 General business credit carryforwards (2) 12 41 (1) At December 31, 2021, the Company had federal net operating loss carryforwards of $178 million, most of which do not expire, state net operating loss carryforwards of $3.8 billion, most of which expire in 2022 through 2041, and foreign net operating loss carryforwards of $2.6 billion, of which $375 million expire in 2022 through 2041, and the remainder of which do not expire. (2) At December 31, 2021, the Company had general business credit carryforwards of $12 million which expire in 2027. |
Schedule of operating loss carryforwards and general business credit carryforwards | The following table presents the amounts of federal, state and foreign net operating loss carryforwards and general business credit carryforwards at December 31: (In millions) 2021 2020 Net operating loss carryforwards: (1) Federal $ 178 $ 443 State 3,763 3,944 Foreign 2,580 3,343 General business credit carryforwards (2) 12 41 (1) At December 31, 2021, the Company had federal net operating loss carryforwards of $178 million, most of which do not expire, state net operating loss carryforwards of $3.8 billion, most of which expire in 2022 through 2041, and foreign net operating loss carryforwards of $2.6 billion, of which $375 million expire in 2022 through 2041, and the remainder of which do not expire. (2) At December 31, 2021, the Company had general business credit carryforwards of $12 million which expire in 2027. |
Schedule of unrecognized tax benefits | Unrecognized tax benefits were as follows at December 31: (In millions) 2021 2020 2019 Unrecognized tax benefits - Beginning of year $ 171 $ 145 $ 49 Increases for assumed tax positions related to First Data — — 82 Increases for tax positions taken during the current year 16 9 8 Increases for tax positions taken in prior years 5 53 16 Decreases for tax positions taken in prior years (41) (23) (2) Decreases for settlements (1) (2) (1) Lapse of the statute of limitations (26) (11) (7) Unrecognized tax benefits - End of year $ 124 $ 171 $ 145 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Reportable Segments (In millions) Acceptance Fintech Payments Corporate Total 2021 Processing and services revenue $ 5,560 $ 2,832 $ 4,883 $ 32 $ 13,307 Product revenue 919 190 950 860 2,919 Total revenue 6,479 3,022 5,833 892 16,226 Operating income (loss) 1,996 1,081 2,557 (3,346) 2,288 Capital expenditures, including capitalized software and other intangibles 314 222 272 352 1,160 Depreciation and amortization expense 245 226 254 2,523 3,248 2020 Processing and services revenue $ 4,736 $ 2,714 $ 4,702 $ 63 $ 12,215 Product revenue 786 187 802 862 2,637 Total revenue 5,522 2,901 5,504 925 14,852 Operating income (loss) (1) 1,427 992 2,361 (2,928) 1,852 Capital expenditures, including capitalized software and other intangibles 227 183 242 248 900 Depreciation and amortization expense 239 202 248 2,568 3,257 2019 Processing and services revenue $ 2,215 $ 2,737 $ 3,431 $ 190 $ 8,573 Product revenue 356 205 478 575 1,614 Total revenue 2,571 2,942 3,909 765 10,187 Operating income (loss) 764 885 1,658 (1,698) 1,609 Capital expenditures, including capitalized software and other intangibles 147 182 196 196 721 Depreciation and amortization expense 146 191 204 1,237 1,778 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Description of the Business (Details) - First Data $ in Millions | Jul. 29, 2019USD ($) |
Business Acquisition [Line Items] | |
Percentage of business acquired | 100.00% |
Total purchase price for acquisition | $ 46,475 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents on the consolidated balance sheets | $ 835 | $ 906 | $ 893 | ||
Cash and cash equivalents included in settlement assets (see Note 6) | 2,361 | 1,650 | 1,245 | ||
Other restricted cash | 9 | 13 | 40 | ||
Total cash and cash equivalents on the consolidated statements of cash flows | [1] | $ 3,205 | $ 2,569 | $ 2,178 | $ 556 |
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 2,361 | $ 1,650 | $ 1,245 | |
Settlement activity, net | [1] | $ 711 | 405 | 182 |
Affiliated Entity | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 175 | 411 | ||
First Data | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 922 | |||
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 55 | $ 48 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Prepaid Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 410 | $ 348 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Allowance for Merchant Credit Losses (Details) - Merchant credit losses - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |||
Aggregate merchant credit losses incurred | $ 41 | $ 113 | $ 40 |
Collateral held | 2,200 | 1,200 | |
Loss contingency accrual | $ 42 | $ 59 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,234 | $ 2,911 | |
Less: Accumulated depreciation | (1,492) | (1,283) | |
Total | 1,742 | 1,628 | |
Depreciation expense | 498 | 523 | $ 247 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 48 | 54 | |
Data processing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,302 | 1,666 | |
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 | $ 512 | 555 | |
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 | $ 372 | $ 636 | |
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 - Intangible Assets (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Product development expenditures as percentage of total revenue | 7.00% | 6.00% | 8.00% |
Customer relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 10 years | ||
Customer relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 20 years | ||
Acquired software and technology | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 4 years | ||
Acquired software and technology | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 10 years | ||
Trade names | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 8 years | ||
Trade names | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 20 years | ||
Non-Compete Agreement | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 4 years | ||
Non-Compete Agreement | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 5 years | ||
Purchased software | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 3 years | ||
Purchased software | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 5 years | ||
Capitalized software and other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 5 years | ||
Merchant portfolios | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 5 years | ||
Merchant portfolios | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful lives (in years) | 9 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Goodwill (Details) | Dec. 31, 2021USD ($) |
Accounting Policies [Abstract] | |
Accumulated impairment loss | $ 0 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Trade accounts payable | $ 593 | $ 437 |
Client deposits | 783 | 702 |
Accrued compensation and benefits | 392 | 419 |
Accrued taxes | 154 | 130 |
Accrued interest | 216 | 220 |
Other accrued expenses | 1,412 | 1,278 |
Total | $ 3,550 | $ 3,186 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Interest Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Interest expense | $ 696 | $ 716 | $ 507 |
Interest income | 3 | 7 | 34 |
Interest expense, net | $ 693 | $ 709 | $ 473 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Net Income Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Weighted-average shares excluded from calculations of common stock equivalents for anti-dilutive stock options | 1.5 | 1.3 | 1.1 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – basic | 662.6 | 672.1 | 512.3 |
Common stock equivalents (in shares) | 9 | 11.3 | 10.3 |
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – diluted | 671.6 | 683.4 | 522.6 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Interest paid | $ 648 | $ 673 | $ 291 |
Income taxes paid | 666 | 156 | 197 |
Treasury stock purchases settled after the balance sheet date | 0 | 0 | 6 |
Distribution of nonmonetary assets (see Note 4) | 0 | 726 | 0 |
Software obtained under financing arrangements | $ 143 | $ 308 | $ 0 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 31,672 | $ 33,070 | $ 34,595 | $ 2,293 | |
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 14,846 | $ 13,441 | 12,528 | $ 11,635 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | (45) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (45) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (45) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized which was included in the contract liability balance | $ 546 | $ 492 | |
Capitalized contract costs, amortization | $ 148 | $ 124 | $ 105 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 16,226 | $ 14,852 | $ 10,187 |
Operating segments | Acceptance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 6,479 | 5,522 | 2,571 |
Operating segments | Fintech | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,022 | 2,901 | 2,942 |
Operating segments | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,833 | 5,504 | 3,909 |
Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 892 | $ 925 | $ 765 |
Geographic Concentration Risk | Non-US | Revenue from Contract with Customer Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of concentration risk | 14.00% | 13.00% | 12.00% |
Processing | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 11,584 | $ 10,528 | $ 6,863 |
Processing | Operating segments | Acceptance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,511 | 4,696 | 2,205 |
Processing | Operating segments | Fintech | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,544 | 1,426 | 1,382 |
Processing | Operating segments | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 4,497 | 4,348 | 3,110 |
Processing | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 32 | 58 | 166 |
Hardware, print and card production | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,787 | 1,536 | 832 |
Hardware, print and card production | Operating segments | Acceptance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 830 | 714 | 323 |
Hardware, print and card production | Operating segments | Fintech | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 44 | 51 | 51 |
Hardware, print and card production | Operating segments | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 913 | 771 | 458 |
Hardware, print and card production | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Professional services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 779 | 728 | 669 |
Professional services | Operating segments | Acceptance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 43 | 29 | 4 |
Professional services | Operating segments | Fintech | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 471 | 465 | 483 |
Professional services | Operating segments | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 265 | 233 | 172 |
Professional services | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 1 | 10 |
Software maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 568 | 568 | 588 |
Software maintenance | Operating segments | Acceptance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Software maintenance | Operating segments | Fintech | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 557 | 563 | 570 |
Software maintenance | Operating segments | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11 | 3 | 3 |
Software maintenance | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 2 | 15 |
License and termination fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 298 | 285 | 325 |
License and termination fees | Operating segments | Acceptance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 47 | 28 | 9 |
License and termination fees | Operating segments | Fintech | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 186 | 189 | 255 |
License and termination fees | Operating segments | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 65 | 68 | 59 |
License and termination fees | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 2 |
Output solutions postage | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 860 | 864 | 572 |
Output solutions postage | Operating segments | Acceptance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Output solutions postage | Operating segments | Fintech | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Output solutions postage | Operating segments | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Output solutions postage | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 860 | 864 | 572 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 350 | 343 | 338 |
Other | Operating segments | Acceptance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 48 | 55 | 30 |
Other | Operating segments | Fintech | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 220 | 207 | 201 |
Other | Operating segments | Payments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 82 | 81 | 107 |
Other | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 541 | $ 433 | $ 382 |
Contract liabilities | $ 810 | $ 733 | $ 647 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Dec. 31, 2021USD ($) |
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 | $ 2,174 |
Performance obligations expected to be satisfied, expected timing | 1 year |
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 | $ 1,790 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,416 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 955 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,418 |
Performance obligations expected to be satisfied, expected timing |
Revenue Recognition - Capitaliz
Revenue Recognition - Capitalized Sales Commissions and Conversion or Implementation Costs (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Sales Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 437 | $ 402 |
Conversion or Implementation Costs | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 374 | $ 290 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) - USD ($) | Nov. 22, 2021 | Jun. 30, 2021 | Jun. 14, 2021 | May 04, 2021 | Feb. 02, 2021 | Jan. 22, 2021 | Jul. 01, 2020 | Feb. 18, 2020 | Jul. 29, 2019 | May 11, 2020 | Jun. 14, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 29, 2020 | Dec. 31, 2019 | Nov. 15, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | |||||||||||||||||||
Goodwill | $ 36,433,000,000 | $ 36,322,000,000 | $ 36,038,000,000 | ||||||||||||||||
Tax expense | 363,000,000 | 196,000,000 | 198,000,000 | ||||||||||||||||
Noncontrolling interest decrease | 762,000,000 | ||||||||||||||||||
Net pre-tax gain | [1] | 100,000,000 | 0 | 29,000,000 | |||||||||||||||
Noncontrolling Interests | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Noncontrolling interest decrease | 726,000,000 | ||||||||||||||||||
Additional Paid-In Capital | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Noncontrolling interest decrease | $ 36,000,000 | 36,000,000 | |||||||||||||||||
Banc of America Merchant Services | Corporate joint venture | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Percentage of interest in joint venture | 51.00% | 51.00% | |||||||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Revaluation/Remeasurement gain | 176,000,000 | ||||||||||||||||||
Consideration from sale of business | $ 578,000,000 | ||||||||||||||||||
Tax expense | 112,000,000 | ||||||||||||||||||
Banc Of America Merchant Services Joint Venture | Bank Of America | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Pre-tax gain | $ 36,000,000 | ||||||||||||||||||
Tax expense | 13,000,000 | ||||||||||||||||||
Revaluation/Remeasurement gain | 700,000,000 | ||||||||||||||||||
Additional consideration due from the Company | $ 24,000,000 | ||||||||||||||||||
Processing and other support services agreement, term (in years) | 5 years | ||||||||||||||||||
Banc Of America Merchant Services Joint Venture | Bank Of America | Noncontrolling Interests | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Noncontrolling interest decrease | $ 726,000,000 | ||||||||||||||||||
Investment Services Business | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Percentage of interest owned in affiliate | 40.00% | ||||||||||||||||||
Controlling interest sold (as a percent) | 60.00% | ||||||||||||||||||
Investment Services Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Pre-tax gain on sale | $ 428,000,000 | ||||||||||||||||||
InvestCloud Holdings, LLC | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Tax expense | 6,000,000 | ||||||||||||||||||
Capital contribution | $ 200,000,000 | ||||||||||||||||||
Net pre-tax gain | 28,000,000 | ||||||||||||||||||
InvestCloud Holdings, LLC | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Tax expense | 8,000,000 | ||||||||||||||||||
Proceeds from sale of entire ownership interest | $ 466,000,000 | ||||||||||||||||||
Pre-tax gain on sale | 33,000,000 | ||||||||||||||||||
NetPay | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Percentage of interest owned in affiliate | 40.00% | ||||||||||||||||||
BentoBox | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Cash purchase price | $ 317,000,000 | ||||||||||||||||||
Acquired cash | 24,000,000 | ||||||||||||||||||
Goodwill | $ 204,000,000 | ||||||||||||||||||
BentoBox | Minimum | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Weighted-average useful life (in years) | 5 years | ||||||||||||||||||
BentoBox | Maximum | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Weighted-average useful life (in years) | 10 years | ||||||||||||||||||
BentoBox | Acquired software and technology | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 136,000,000 | ||||||||||||||||||
Pineapple Payments | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired cash | $ 6,000,000 | ||||||||||||||||||
Finite-lived intangible assets | $ 127,000,000 | ||||||||||||||||||
Weighted-average useful life (in years) | 14 years | ||||||||||||||||||
Goodwill | $ 79,000,000 | ||||||||||||||||||
Earn-out provisions estimated fair value | 30,000,000 | ||||||||||||||||||
Payments for acquisitions of businesses | 207,000,000 | ||||||||||||||||||
Other long-term assets | 7,000,000 | ||||||||||||||||||
Goodwill, expected tax deductible amount | 59,000,000 | ||||||||||||||||||
Pineapple Payments | Residual Buyout Intangible Assets | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 20,000,000 | ||||||||||||||||||
Weighted-average useful life (in years) | 8 years | ||||||||||||||||||
Pineapple Payments | Acquired software and technology | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 6,000,000 | ||||||||||||||||||
Weighted-average useful life (in years) | 7 years | ||||||||||||||||||
Ondot | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired cash | $ 13,000,000 | ||||||||||||||||||
Finite-lived intangible assets | $ 142,000,000 | ||||||||||||||||||
Weighted-average useful life (in years) | 6 years | ||||||||||||||||||
Goodwill | $ 173,000,000 | ||||||||||||||||||
Payments for acquisitions of businesses | 271,000,000 | ||||||||||||||||||
Pre-tax gain from remeasurement | $ 12,000,000 | ||||||||||||||||||
Previously held non-controlling interest | 22,000,000 | ||||||||||||||||||
Ondot | Acquired software and technology | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 90,000,000 | ||||||||||||||||||
Weighted-average useful life (in years) | 6 years | ||||||||||||||||||
First Data | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 16,272,000,000 | ||||||||||||||||||
Weighted-average useful life (in years) | 14 years | ||||||||||||||||||
Goodwill | $ 30,811,000,000 | ||||||||||||||||||
Earn-out provisions estimated fair value | 16,414,000,000 | ||||||||||||||||||
Payments for acquisitions of businesses | 46,475,000,000 | ||||||||||||||||||
Other long-term assets | 1,191,000,000 | ||||||||||||||||||
Goodwill, expected tax deductible amount | $ 0 | ||||||||||||||||||
Percentage of business acquired | 100.00% | ||||||||||||||||||
Entity shares issued per acquiree share (in shares) | 0.303 | ||||||||||||||||||
Measurement period adjustment, increase (decrease) in goodwill | $ 304,000,000 | ||||||||||||||||||
Measurement period adjustment, intangible assets | (155,000,000) | ||||||||||||||||||
Measurement period adjustment, noncontrolling interests | (126,000,000) | ||||||||||||||||||
Measurement period adjustment, fair value of property and equipment | (25,000,000) | ||||||||||||||||||
Measurement period adjustment, increase payables and accrued expenses | 37,000,000 | ||||||||||||||||||
Measurement period adjustments, reduction to investments in unconsolidated entities | 23,000,000 | ||||||||||||||||||
Measurement period adjustment, increase in other long-term liabilities | 21,000,000 | ||||||||||||||||||
Measurement period adjustment, recognized deferred tax liabilities | $ 169,000,000 | ||||||||||||||||||
Revenue of acquiree since acquisition date | 4,100,000,000 | ||||||||||||||||||
Operating income of acquiree since acquisition date | 1,000,000,000 | ||||||||||||||||||
Transaction expenses | 175,000,000 | ||||||||||||||||||
First Data | Acquired software and technology | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 2,324,000,000 | ||||||||||||||||||
Weighted-average useful life (in years) | 7 years | ||||||||||||||||||
First Data | Selling, General and Administrative Expenses | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Transaction expenses | 77,000,000 | ||||||||||||||||||
First Data | Debt Financing Activities | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Transaction expenses | $ 98,000,000 | ||||||||||||||||||
First Data | Common Stock | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Number of shares issued for acquisition (in shares) | 286,000,000 | ||||||||||||||||||
First Data | Equity Awards | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Number of shares issued for acquisition (in shares) | 15,000,000 | ||||||||||||||||||
SpendLabs and Radius8 | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 47,000,000 | $ 47,000,000 | |||||||||||||||||
Weighted-average useful life (in years) | 7 years | ||||||||||||||||||
Goodwill | $ 62,000,000 | 62,000,000 | |||||||||||||||||
Earn-out provisions estimated fair value | 4,000,000 | ||||||||||||||||||
Payments for acquisitions of businesses | 87,000,000 | ||||||||||||||||||
Goodwill, expected tax deductible amount | 14,000,000 | 14,000,000 | |||||||||||||||||
Previously held non-controlling interest | 14,000,000 | ||||||||||||||||||
Net assumed liabilities | 8,000,000 | 8,000,000 | |||||||||||||||||
SpendLabs and Radius8 | Acquired software and technology | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 31,000,000 | $ 31,000,000 | |||||||||||||||||
Weighted-average useful life (in years) | 6 years | ||||||||||||||||||
MerchantPro, Bypass, and Inlet | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired cash | $ 2,000,000 | ||||||||||||||||||
Finite-lived intangible assets | 81,000,000 | ||||||||||||||||||
Goodwill | 90,000,000 | ||||||||||||||||||
Earn-out provisions estimated fair value | 45,000,000 | ||||||||||||||||||
Payments for acquisitions of businesses | 167,000,000 | ||||||||||||||||||
Goodwill, expected tax deductible amount | 36,000,000 | ||||||||||||||||||
Net assumed liabilities | $ 4,000,000 | ||||||||||||||||||
Series of Individually Immaterial Business Acquisitions | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Weighted-average useful life (in years) | 11 years | ||||||||||||||||||
Series of Individually Immaterial Business Acquisitions | Acquired software and technology | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Finite-lived intangible assets | $ 14,000,000 | ||||||||||||||||||
Weighted-average useful life (in years) | 8 years | ||||||||||||||||||
Finxact | Forecast | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Payments for acquisitions of businesses | $ 650,000,000 | ||||||||||||||||||
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Gross Carrying Amount and Weighted-Average Useful Life Allocated to Intangible Assets (Details) - USD ($) $ in Millions | May 04, 2021 | Jan. 22, 2021 | May 11, 2020 |
Pineapple Payments | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 127 | ||
Weighted-Average Useful Life | 14 years | ||
Pineapple Payments | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 90 | ||
Weighted-Average Useful Life | 17 years | ||
Pineapple Payments | Residual Buyout Intangible Assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 20 | ||
Weighted-Average Useful Life | 8 years | ||
Pineapple Payments | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 6 | ||
Weighted-Average Useful Life | 7 years | ||
Pineapple Payments | Non-compete agreements and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 11 | ||
Weighted-Average Useful Life | 5 years | ||
Ondot | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 142 | ||
Weighted-Average Useful Life | 6 years | ||
Ondot | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 35 | ||
Weighted-Average Useful Life | 6 years | ||
Ondot | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 90 | ||
Weighted-Average Useful Life | 6 years | ||
Ondot | Non-compete agreements and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 17 | ||
Weighted-Average Useful Life | 4 years | ||
MerchantPro, Bypass, and Inlet | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 81 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Ondot Purchase Price Allocation (Details) - USD ($) $ in Millions | Jan. 22, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 36,433 | $ 36,322 | $ 36,038 | |
Ondot | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 13 | |||
Trade accounts receivable | 9 | |||
Finite-lived intangible assets | 142 | |||
Goodwill | 173 | |||
Payables and other liabilities | (31) | |||
Net assets acquired | 306 | |||
Less: Fair value of previously held equity interest | (22) | |||
Total purchase price | $ 284 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Total Purchase Price Paid (Details) - First Data - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 29, 2019 | Jul. 26, 2019 |
Business Acquisition [Line Items] | ||
Earn-out provisions estimated fair value | $ 16,414 | |
Total purchase price | 46,475 | |
Share price of shares issued for acquisition (in dollars per share) | $ 102.30 | |
Common Stock | ||
Business Acquisition [Line Items] | ||
Fair value of exchanges | $ 29,293 | |
Number of shares issued for acquisition (in shares) | 286 | |
Equity Awards | ||
Business Acquisition [Line Items] | ||
Fair value of exchanges | $ 768 | |
Number of shares issued for acquisition (in shares) | 15 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions - First Data Purchase Price Allocation (Details) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 29, 2019USD ($)entity |
Assets acquired | ||||
Goodwill | $ 36,433 | $ 36,322 | $ 36,038 | |
Net assets acquired | ||||
Number of entities to dispose | entity | 2 | |||
Cash and cash equivalents | $ 2,361 | $ 1,650 | 1,245 | |
First Data | ||||
Assets acquired | ||||
Cash and cash equivalents | $ 310 | |||
Trade accounts receivable | 1,747 | |||
Prepaid expenses and other current assets | 1,047 | |||
Settlement Assets | 10,398 | |||
Property and equipment | 1,156 | |||
Finite-lived intangible assets | 16,272 | |||
Goodwill | 30,811 | |||
Investments in unconsolidated affiliates | 2,676 | |||
Other long-term assets | 1,191 | |||
Total assets acquired | 65,608 | |||
Liabilities assumed | ||||
Accounts payable and accrued expenses | 1,613 | |||
Short-term and current maturities of long-term debt | 243 | |||
Contract liabilities | 71 | |||
Settlement obligations | 10,398 | |||
Deferred income taxes | 3,671 | |||
Long-term contract liabilities | 16 | |||
Long-term debt and other long-term liabilities | 1,261 | |||
Total liabilities assumed | 17,273 | |||
Net assets acquired | ||||
Net assets acquired | 48,335 | |||
Redeemable noncontrolling interests | 252 | |||
Noncontrolling interests | 1,608 | |||
Total purchase price | 46,475 | |||
Cash and cash equivalents | $ 922 | |||
Customer relationships | First Data | ||||
Assets acquired | ||||
Finite-lived intangible assets | 13,458 | |||
Other intangible assets | First Data | ||||
Assets acquired | ||||
Finite-lived intangible assets | $ 2,814 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions - Gross Carrying Amount and Weighted-Average Useful Life Allocated to Intangible Assets (Details) - USD ($) $ in Millions | Jun. 14, 2021 | Jul. 29, 2019 | May 11, 2020 |
First Data | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 16,272 | ||
Weighted-Average Useful Life | 14 years | ||
First Data | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 13,458 | ||
Weighted-Average Useful Life | 15 years | ||
First Data | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,324 | ||
Weighted-Average Useful Life | 7 years | ||
First Data | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 490 | ||
Weighted-Average Useful Life | 9 years | ||
SpendLabs and Radius8 | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 47 | ||
Weighted-Average Useful Life | 7 years | ||
SpendLabs and Radius8 | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 9 | ||
Weighted-Average Useful Life | 10 years | ||
SpendLabs and Radius8 | Residual buyouts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 7 | ||
Weighted-Average Useful Life | 5 years | ||
SpendLabs and Radius8 | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 31 | ||
Weighted-Average Useful Life | 6 years | ||
Series of Individually Immaterial Business Acquisitions | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Life | 11 years | ||
Series of Individually Immaterial Business Acquisitions | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 32 | ||
Weighted-Average Useful Life | 14 years | ||
Series of Individually Immaterial Business Acquisitions | Residual buyouts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 35 | ||
Weighted-Average Useful Life | 9 years | ||
Series of Individually Immaterial Business Acquisitions | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 14 | ||
Weighted-Average Useful Life | 8 years |
Acquisitions and Dispositions_7
Acquisitions and Dispositions - Pro Forma Combined Financial Information (Details) - First Data $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / shares | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Total revenue | $ 15,775 |
Net income | 1,520 |
Net income attributable to Fiserv, Inc. | $ 1,457 |
Net income per share attributable to Fiserv, Inc.: | |
Net income per share attributable to Fiserv, Inc., Basic (in dollars per share) | $ / shares | $ 2.14 |
Net income per share attributable to Fiserv, Inc., Diluted (in dollars per share) | $ / shares | $ 2.10 |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Millions | Oct. 31, 2019USD ($)entity | Jul. 29, 2019entity |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of entities sold | 2 | |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of entities sold | 2 | 2 |
Consideration from sale of business | $ | $ 133 |
Settlement Assets and Obligat_3
Settlement Assets and Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Settlement assets | |||
Cash and cash equivalents | $ 2,361 | $ 1,650 | $ 1,245 |
Receivables | 11,291 | 9,871 | |
Total settlement assets | 13,652 | 11,521 | |
Settlement obligations | |||
Payment instruments outstanding | 460 | 483 | |
Card settlements and collateral deposits due to merchants | 13,192 | 11,038 | |
Total settlement obligations | $ 13,652 | $ 11,521 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets by Class (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 21,249 | $ 20,696 | |
Accumulated Amortization | 7,240 | 5,338 | |
Net Book Value | 14,009 | 15,358 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 15,103 | 15,271 | |
Accumulated Amortization | 5,112 | 3,668 | |
Net Book Value | 9,991 | 11,603 | |
Acquired software and technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,522 | 2,562 | |
Accumulated Amortization | 901 | 879 | |
Net Book Value | 1,621 | 1,683 | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 612 | 618 | |
Accumulated Amortization | 228 | 172 | |
Net Book Value | 384 | 446 | |
Purchased software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,133 | 913 | |
Accumulated Amortization | 479 | 207 | |
Net Book Value | 654 | 706 | |
Capitalized software and other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,879 | 1,332 | |
Accumulated Amortization | 520 | 412 | |
Net Book Value | 1,359 | 920 | |
Gross software development costs capitalized | $ 613 | $ 462 | $ 339 |
Intangible Assets Intangible As
Intangible Assets Intangible Assets - Schedule of Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 2,548 | $ 2,563 | $ 1,299 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Accelerated amortization expense | $ 56 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Annual Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2022 | $ 2,466 | |
2023 | 2,216 | |
2024 | 1,780 | |
2025 | 1,531 | |
2026 | 1,247 | |
Thereafter | 4,769 | |
Net Book Value | $ 14,009 | $ 15,358 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 36,322 | $ 36,038 |
Acquisitions and valuation adjustments | 518 | 394 |
Transfers | 0 | |
Foreign currency translation | (407) | (110) |
Goodwill, ending balance | 36,433 | 36,322 |
Operating segments | Acceptance | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 21,408 | 21,189 |
Acquisitions and valuation adjustments | 321 | 332 |
Transfers | 0 | |
Foreign currency translation | (347) | (113) |
Goodwill, ending balance | 21,382 | 21,408 |
Operating segments | Fintech | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,108 | 2,104 |
Acquisitions and valuation adjustments | 0 | 0 |
Transfers | (67) | |
Foreign currency translation | (2) | 4 |
Goodwill, ending balance | 2,039 | 2,108 |
Operating segments | Payments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 12,806 | 12,745 |
Acquisitions and valuation adjustments | 197 | 62 |
Transfers | 67 | |
Foreign currency translation | (58) | (1) |
Goodwill, ending balance | $ 13,012 | $ 12,806 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliate - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | Feb. 15, 2019 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated affiliates | $ 2,561 | $ 2,756 | ||||
Net pre-tax gain | [1] | 100 | 0 | $ 29 | ||
Tax expense | 363 | 196 | 198 | |||
Cash distributions from unconsolidated affiliate | 149 | 151 | 136 | |||
Distributions from unconsolidated affiliates | [1] | 115 | 109 | 113 | ||
Equity securities without readily determinable fair value | 113 | 160 | ||||
Ondot | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Pre-tax gain from remeasurement | 12 | |||||
Line of Credit | Revolving Credit Facility | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Maximum borrowing capacity | $ 3,500 | |||||
Line of Credit | Variable-Rate Term Loan Facilities Due March 2023 | Term Loan Facilities | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Maximum borrowing capacity | 365 | |||||
Line of Credit | Variable-Rate Revolving Credit Facilities Due March 2023 | Revolving Credit Facility | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Maximum borrowing capacity | 45 | |||||
Amount outstanding | $ 16 | |||||
defi SOLUTIONS | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of interest owned in affiliate | 31.00% | 31.00% | ||||
Net pre-tax gain | 14 | |||||
Tax expense | $ 3 | |||||
Lending Joint Ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated affiliates | $ 25 | 212 | ||||
Other Strategic Investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated affiliates | $ 266 | 192 | ||||
Fiserv LS LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Controlling interest sold (as a percent) | 45.00% | |||||
Merchant Alliances | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated affiliates | $ 2,300 | $ 2,400 | ||||
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value On a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Level 2 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Cash flow hedges | $ 6 | $ 9 |
Level 3 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Contingent consideration | 2 | 46 |
Contingent consideration | 32 | 0 |
Level 3 | Accounts Payable and Accrued Liabilities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Contingent debt guarantee | 4 | 0 |
Level 3 | Other Liabilities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Contingent debt guarantee | $ 0 | $ 8 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Carrying value | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Total debt | $ 20,400 | $ 19,900 | |
Level 2 | Fair Value | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Total debt | 21,800 | 22,500 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Contingent liability | 4 | 8 | |
Lending Solutions Business | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other (expense) income | 12 | 13 | $ 7 |
Financial Guarantee | Lending Solutions Business | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Contingent debt guarantee | $ 10 | $ 18 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Reserve for estimated credit losses on lease payment receivables | $ 56 | $ 64 |
Net investment in leases | $ 261 | $ 237 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, remaining lease term (in months and years) | 1 month | |
Finance leases, remaining lease term (in months and years) | 1 month | |
Lessor lease term, operating leases (in months and years) | 1 month | |
Lessor lease term, sales-type leases (in months and years) | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, remaining lease term (in months and years) | 22 years | |
Finance leases, remaining lease term (in months and years) | 22 years | |
Lessor lease term, operating leases (in months and years) | 5 years | |
Lessor lease term, sales-type leases (in months and years) | 5 years |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Operating lease assets | $ 575 | $ 504 |
Finance lease assets | 487 | 267 |
Total lease assets | 1,062 | 771 |
Current: | ||
Operating lease liabilities | 122 | 125 |
Finance lease liabilities | 130 | 104 |
Noncurrent: | ||
Operating lease liabilities | 615 | 471 |
Finance lease liabilities | 313 | 271 |
Total lease liabilities | $ 1,180 | $ 971 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued expenses | Accounts payable and accrued expenses |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Short-term and current maturities of long-term debt | Short-term and current maturities of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 162 | $ 198 | $ 207 |
Finance lease cost | |||
Amortization of right-of-use assets | 122 | 150 | 40 |
Interest on lease liabilities | 23 | 21 | 8 |
Total lease cost | 307 | 369 | 255 |
Variable lease cost included within operating lease cost | $ 39 | 50 | $ 56 |
Accelerated amortization expense included within finance lease expense | $ 62 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 153 | $ 155 | $ 139 |
Operating cash flows from finance leases | 23 | 21 | 8 |
Financing cash flows from finance leases | 161 | 187 | 37 |
Right-of-use assets obtained in exchange for lease liabilities: | |||
Operating leases | 197 | 46 | 441 |
Finance leases | $ 231 | $ 399 | $ 288 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted-average remaining lease term: | ||
Operating leases | 10 years | 6 years |
Finance leases | 3 years | 4 years |
Weighted-average discount rate: | ||
Operating leases | 2.70% | 2.90% |
Finance leases | 2.70% | 3.50% |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Millions | Dec. 31, 2021USD ($) |
Operating Leases, under ASC 842 | |
2022 | $ 125 |
2023 | 112 |
2024 | 101 |
2025 | 82 |
2026 | 74 |
Thereafter | 351 |
Total lease payments | 845 |
Less: Interest | (108) |
Present value of lease liabilities | 737 |
Finance Leases, under ASC 842 | |
2022 | 138 |
2023 | 146 |
2024 | 127 |
2025 | 45 |
2026 | 14 |
Thereafter | 0 |
Total lease payments | 470 |
Less: Interest | (27) |
Present value of lease liabilities | 443 |
Operating lease payments related to options to extend lease terms that are reasonably certain of being exercised | $ 6 |
Leases - Components of Lease In
Leases - Components of Lease Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales-type leases: | |||
Selling profit | $ 61 | $ 48 | $ 20 |
Interest income | 85 | 76 | 33 |
Operating lease income | $ 297 | $ 257 | $ 36 |
Sales-Type Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | Revenues |
Product revenue | |||
Sales-type leases: | |||
Selling profit | $ 141 | $ 106 | $ 48 |
Cost of product | |||
Sales-type leases: | |||
Selling profit | $ (80) | $ (58) | $ (28) |
Leases - Components of Net Inve
Leases - Components of Net Investment in Sales-Type Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Minimum lease payments | $ 395 | $ 355 |
Residual values | 23 | 23 |
Less: Unearned interest income | (157) | (141) |
Net investment in leases | $ 261 | $ 237 |
Leases - Lessor, Maturities of
Leases - Lessor, Maturities of Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Sales-Type Leases | ||
2022 | $ 164 | |
2023 | 120 | |
2024 | 76 | |
2025 | 32 | |
2026 | 3 | |
Thereafter | 0 | |
Total minimum lease payments | $ 395 | $ 355 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2018 |
Short-term and current maturities of long-term debt: | |||
Total short-term and current maturities of long-term debt | $ 508 | $ 384 | |
Finance lease and other financing obligations | 268 | 240 | |
Long-term debt: | |||
Unamortized discount and deferred financing costs | (125) | (155) | |
Finance lease and other financing obligations | 528 | 504 | |
Total long-term debt | $ 20,729 | 20,300 | |
Senior Notes | 4.750% senior notes due June 2021 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 4.75% | ||
Long-term debt: | |||
Long-term debt | $ 0 | 400 | |
Senior Notes | 3.500% senior notes due October 2022 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.50% | ||
Long-term debt: | |||
Long-term debt | $ 700 | 700 | |
Senior Notes | 0.375% senior notes due July 2023 (Euro-denominated) | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 0.375% | ||
Long-term debt: | |||
Long-term debt | $ 566 | 612 | |
Senior Notes | 3.800% senior notes due October 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.80% | ||
Long-term debt: | |||
Long-term debt | $ 1,000 | 1,000 | |
Senior Notes | 2.750% senior notes due July 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.75% | ||
Long-term debt: | |||
Long-term debt | $ 2,000 | 2,000 | |
Senior Notes | 3.850% senior notes due June 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.85% | ||
Long-term debt: | |||
Long-term debt | $ 900 | 900 | |
Senior Notes | 2.250% senior notes due July 2025 (British Pound-denominated) | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.25% | ||
Long-term debt: | |||
Long-term debt | $ 705 | 709 | |
Senior Notes | 3.200% senior notes due July 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.20% | ||
Long-term debt: | |||
Long-term debt | $ 2,000 | 2,000 | |
Senior Notes | 2.250% senior notes due June 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.25% | ||
Long-term debt: | |||
Long-term debt | $ 1,000 | 1,000 | |
Senior Notes | 1.125% senior notes due July 2027 (Euro-denominated) | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 1.125% | ||
Long-term debt: | |||
Long-term debt | $ 566 | 612 | |
Senior Notes | 4.200% senior notes due October 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 4.20% | ||
Long-term debt: | |||
Long-term debt | $ 1,000 | 1,000 | |
Senior Notes | 3.500% senior notes due July 2029 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.50% | ||
Long-term debt: | |||
Long-term debt | $ 3,000 | 3,000 | |
Senior Notes | 2.650% senior notes due June 2030 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.65% | ||
Long-term debt: | |||
Long-term debt | $ 1,000 | 1,000 | |
Senior Notes | 1.625% senior notes due July 2030 (Euro-denominated) | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 1.625% | ||
Long-term debt: | |||
Long-term debt | $ 566 | 612 | |
Senior Notes | 3.000% senior notes due July 2031 (British Pound-denominated) | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.00% | ||
Long-term debt: | |||
Long-term debt | $ 705 | 709 | |
Senior Notes | 4.400% senior notes due July 2049 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 4.40% | ||
Long-term debt: | |||
Long-term debt | $ 2,000 | 2,000 | |
Receivable securitized loan | |||
Long-term debt: | |||
Long-term debt | 500 | 425 | |
Line of Credit | Revolving credit facility | |||
Long-term debt: | |||
Long-term debt | 97 | 22 | |
Line of Credit | Term loan facility | |||
Long-term debt: | |||
Long-term debt | 200 | 1,250 | |
Commercial Paper | U.S. commercial paper notes | |||
Long-term debt: | |||
Long-term debt | 916 | 0 | |
Commercial Paper | Euro commercial paper notes | |||
Long-term debt: | |||
Long-term debt | 905 | 0 | |
Foreign lines of credit | |||
Short-term and current maturities of long-term debt: | |||
Total short-term and current maturities of long-term debt | $ 240 | $ 144 |
Debt - Annual Maturities of Tot
Debt - Annual Maturities of Total Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 508 | |
2023 | 4,923 | |
2024 | 2,391 | |
2025 | 1,677 | |
2026 | 2,027 | |
Thereafter | 9,836 | |
Total principal payments | 21,362 | |
Unamortized discount and deferred financing costs | (125) | $ (155) |
Total long-term debt | $ 21,237 |
Debt - Additional Information (
Debt - Additional Information (Details) | Feb. 06, 2019 | Jan. 16, 2019USD ($) | May 31, 2021 | Oct. 31, 2018 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 29, 2019USD ($) | Feb. 15, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Current debt outstanding | $ 508,000,000 | $ 384,000,000 | |||||||
Accounts receivable from securitization | 1,000,000,000 | 811,000,000 | |||||||
Debt costs | 0 | 0 | $ 47,000,000 | ||||||
Foreign lines of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Current debt outstanding | $ 240,000,000 | $ 144,000,000 | |||||||
Weighted average interest rate percentage | 21.01% | 21.98% | |||||||
Foreign currency forward exchange contracts | |||||||||
Debt Instrument [Line Items] | |||||||||
Realized foreign currency transaction gains (losses) | 3,000,000 | ||||||||
Foreign currency foreign exchange contracts - Euro and British pound denominated senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Realized foreign currency transaction gains (losses) | 69,000,000 | ||||||||
Foreign currency foreign exchange contracts - Euro and British pound denominated cash | |||||||||
Debt Instrument [Line Items] | |||||||||
Realized foreign currency transaction gains (losses) | 19,000,000 | ||||||||
Revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Consolidated indebtedness to consolidated net earnings limit | 3.5 | ||||||||
Debt issuance costs | $ 3,000,000 | $ 5,000,000 | |||||||
Revolving credit facility | Debt Instrument, Option, One | |||||||||
Debt Instrument [Line Items] | |||||||||
Consolidated indebtedness to consolidated net earnings limit | 4 | ||||||||
Revolving credit facility | Debt Instrument, Option, Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Consolidated indebtedness to consolidated net earnings limit | 4.5 | ||||||||
Bridge Loan | Senior Unsecured Bridge Term Loan Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt maturities (in days) | 364 days | ||||||||
Maximum borrowing capacity | $ 17,000,000,000 | ||||||||
Debt costs | $ 98,000,000 | ||||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding debt | $ 17,700,000,000 | ||||||||
Interest rate subject to increase, maximum (as a percent) | 2.00% | ||||||||
Senior Notes | 2.250% senior notes due June 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, stated percentage | 2.25% | ||||||||
Borrowings with receivables used as collateral | $ 1,000,000,000 | 1,000,000,000 | |||||||
Senior Notes | 2.650% senior notes due June 2030 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, stated percentage | 2.65% | ||||||||
Borrowings with receivables used as collateral | $ 1,000,000,000 | 1,000,000,000 | |||||||
Senior Notes | 4.750% senior notes due June 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Repaid debt | $ 400,000,000 | ||||||||
Interest rate, stated percentage | 4.75% | ||||||||
Borrowings with receivables used as collateral | $ 0 | 400,000,000 | |||||||
Line of Credit | Revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings with receivables used as collateral | $ 97,000,000 | 22,000,000 | |||||||
Maximum borrowing capacity | $ 3,500,000,000 | ||||||||
Variable interest rate (as a percent) | 1.16% | ||||||||
Line of Credit | Term loan facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings with receivables used as collateral | $ 200,000,000 | 1,250,000,000 | |||||||
Maximum borrowing capacity | $ 5,000,000,000 | ||||||||
Variable interest rate (as a percent) | 1.35% | ||||||||
Commercial Paper | U.S. commercial paper notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt maturities (in days) | 397 days | ||||||||
Borrowings with receivables used as collateral | $ 916,000,000 | 0 | |||||||
Average interest rate (as a percent) | 0.295% | ||||||||
Commercial Paper | Euro commercial paper notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt maturities (in days) | 183 days | ||||||||
Borrowings with receivables used as collateral | $ 905,000,000 | 0 | |||||||
Average interest rate (as a percent) | (0.42%) | ||||||||
Receivable securitized loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings with receivables used as collateral | $ 500,000,000 | $ 425,000,000 | |||||||
Average interest rate (as a percent) | 0.95% | 1.00% | |||||||
Receivable securitized loan | 2.9% senior notes due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings with receivables used as collateral | $ 500,000,000 | $ 425,000,000 | |||||||
Maximum collateral capacity | 747,000,000 | ||||||||
Debt instrument, face amount | 500,000,000 | ||||||||
Term loan and senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 92,000,000 | $ 117,000,000 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | Dec. 31, 2021noncontrollingInterest | |
First Data Joint Venture | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage by noncontrolling owner | 1.00% | |
First Data Joint Venture | Forecast | ||
Noncontrolling Interest [Line Items] | ||
Pre-tax gain | $ | $ 150 | |
First Data | ||
Noncontrolling Interest [Line Items] | ||
Number of redeemable noncontrolling interests | noncontrollingInterest | 2 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interests Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 259 | $ 262 | |
Distributions paid to redeemable noncontrolling interests | (43) | (42) | $ (7) |
Share of income | 44 | 39 | |
Adjustment to estimated redemption value | 18 | 0 | |
Ending balance | $ 278 | $ 259 | $ 262 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 33,070 | $ 34,595 | $ 2,293 |
Total other comprehensive loss | (397) | (172) | (121) |
Balance at end of period | 31,672 | 33,070 | 34,595 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (387) | (180) | (67) |
Other comprehensive income (loss) before reclassifications | (366) | (222) | |
Amounts reclassified from accumulated other comprehensive loss | 8 | 15 | |
Total other comprehensive loss | (358) | (207) | (113) |
Balance at end of period | (745) | (387) | (180) |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (121) | (141) | |
Other comprehensive income (loss) before reclassifications | 6 | 5 | |
Amounts reclassified from accumulated other comprehensive loss | 8 | 15 | |
Total other comprehensive loss | 14 | 20 | |
Balance at end of period | (107) | (121) | (141) |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (254) | (33) | |
Other comprehensive income (loss) before reclassifications | (422) | (221) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive loss | (422) | (221) | |
Balance at end of period | (676) | (254) | (33) |
Pension Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (12) | (6) | |
Other comprehensive income (loss) before reclassifications | 50 | (6) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive loss | 50 | (6) | |
Balance at end of period | $ 38 | $ (12) | $ (6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Estimate of gain related to foreign currency exchange contracts during the next 12 months | $ 5 | |||||
Fair market value adjustment on cash flow hedges, net of income tax benefit | $ 183 | 6 | $ 5 | $ (134) | ||
Estimated interest expense related to settled interest rate hedge contracts during the next twelve months | 19 | |||||
Foreign currency translation adjustment | 110 | (151) | (62) | |||
Foreign currency translation adjustment, tax | 36 | |||||
Prior period reclassification adjustment | 31,672 | 33,070 | 34,595 | $ 2,293 | ||
Revision of Prior Period, Reclassification, Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Prior period reclassification adjustment | 0 | |||||
Retained Earnings | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Prior period reclassification adjustment | 14,846 | 13,441 | $ 12,528 | $ 11,635 | ||
Retained Earnings | Revision of Prior Period, Reclassification, Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Prior period reclassification adjustment | 71 | |||||
Foreign currency forward exchange contracts | Indian Rupee | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Notional amount of derivatives | 341 | 259 | ||||
Total fair value of cash flow hedge derivatives | $ 6 | $ 9 | ||||
Treasury Lock | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Derivative liability, notional amount | $ 5,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | Jan. 01, 2022 | Dec. 31, 2021USD ($)investment_pool | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution (as percent) | 100.00% | |||
Employee contribution (as percent) | 1.00% | |||
Employer contribution (as percent) | 25.00% | |||
Employer contribution (as percent) | 4.00% | |||
Contributions to defined contribution plans | $ 58,000,000 | $ 38,000,000 | $ 65,000,000 | |
Subsequent Event | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution (as percent) | 100.00% | |||
Employee contribution (as percent) | 1.00% | |||
Employer contribution (as percent) | 50.00% | |||
Employer contribution (as percent) | 4.00% | |||
U.S. and other plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company contribution | 0 | 5,000,000 | ||
Plan assets investments | 183,000,000 | 181,000,000 | 167,000,000 | |
U.K. plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company contribution | $ 0 | 0 | ||
Number of plan asset investment pools | investment_pool | 2 | |||
Plan assets investments | $ 983,000,000 | 974,000,000 | $ 860,000,000 | |
U.K. plan | On-risk assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation percentage | 20.00% | |||
U.K. plan | Off-risk assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation percentage | 80.00% | |||
U.S. Plan | On-risk assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation percentage | 39.00% | |||
U.S. Plan | Off-risk assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation percentage | 61.00% | |||
Fair Value Measured at Net Asset Value Per Share | Hedge funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets investments | $ 158,000,000 | $ 227,000,000 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Defined Benefit Pension Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in projected benefit obligations: | |||
Interest cost | $ (16,000,000) | $ (20,000,000) | $ (9,000,000) |
U.K. plan | |||
Change in projected benefit obligations: | |||
Plan benefit obligations, beginning balance | (777,000,000) | (672,000,000) | |
Interest cost | (11,000,000) | (14,000,000) | |
Settlements | 16,000,000 | 0 | |
Actuarial gain (loss) | 15,000,000 | (93,000,000) | |
Benefits paid | 21,000,000 | 30,000,000 | |
Foreign currency translation | 0 | (28,000,000) | |
Plan benefit obligations, ending balance | (736,000,000) | (777,000,000) | (672,000,000) |
Change in fair value of plan assets: | |||
Fair value of plan assets, beginning balance | 974,000,000 | 860,000,000 | |
Actual return on plan assets | 47,000,000 | 110,000,000 | |
Company contribution | 0 | 0 | |
Settlements | (16,000,000) | 0 | |
Benefits paid | (21,000,000) | (30,000,000) | |
Foreign currency translation | (1,000,000) | 34,000,000 | |
Fair value of plan assets, ending balance | 983,000,000 | 974,000,000 | 860,000,000 |
Funded status of the plans | 247,000,000 | 197,000,000 | |
U.S. and other plans | |||
Change in projected benefit obligations: | |||
Plan benefit obligations, beginning balance | (238,000,000) | (225,000,000) | |
Interest cost | (5,000,000) | (6,000,000) | |
Settlements | 0 | 0 | |
Actuarial gain (loss) | 9,000,000 | (18,000,000) | |
Benefits paid | 12,000,000 | 13,000,000 | |
Foreign currency translation | 1,000,000 | (2,000,000) | |
Plan benefit obligations, ending balance | (221,000,000) | (238,000,000) | (225,000,000) |
Change in fair value of plan assets: | |||
Fair value of plan assets, beginning balance | 181,000,000 | 167,000,000 | |
Actual return on plan assets | 14,000,000 | 22,000,000 | |
Company contribution | 0 | 5,000,000 | |
Settlements | 0 | 0 | |
Benefits paid | (12,000,000) | (13,000,000) | |
Foreign currency translation | 0 | 0 | |
Fair value of plan assets, ending balance | 183,000,000 | 181,000,000 | $ 167,000,000 |
Funded status of the plans | $ (38,000,000) | $ (57,000,000) |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-Average Rate Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Projected benefit obligations, discount rate | 1.97% | 1.56% |
Net periodic benefit expense, discount rate | 1.56% | 1.95% |
Net periodic benefit expense, expected long-term return on plan assets | 2.25% | 2.84% |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2022 | $ 33 |
2023 | 35 |
2024 | 36 |
2025 | 37 |
2026 | 38 |
2027-2031 | $ 205 |
Employee Benefit Plans - Alloca
Employee Benefit Plans - Allocation of Plan Assets (Details) - Fair Value, Recurring - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | $ 803 | $ 583 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 205 | 336 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 0 | 9 |
Cash and cash equivalents (1) | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 230 | 24 |
Cash and cash equivalents (1) | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 0 | 0 |
Cash and cash equivalents (1) | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 0 | 0 |
Equity securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 10 | 20 |
Equity securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 93 | 175 |
Equity securities | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 0 | 0 |
Fixed income securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 202 | 213 |
Fixed income securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 105 | 165 |
Fixed income securities | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 0 | 0 |
Other investments | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 361 | 326 |
Other investments | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 7 | (4) |
Other investments | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | $ 0 | $ 9 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Interest cost | $ 16 | $ 20 | $ 9 |
Expected return on plan assets | (23) | (24) | (10) |
Net periodic benefit income | $ (7) | $ (4) | $ (1) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 29, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 239 | $ 369 | $ 229 | ||
Unrecognized compensation cost | $ 314 | ||||
Weighted-average period unrecognized compensation cost will be recognized | 2 years 1 month 6 days | ||||
Share-based awards, stock options, exercised (in shares) | 4,414,000 | ||||
Weighted-average estimated fair value per share of stock options granted (in dollars per share) | $ 33.35 | $ 35.02 | $ 28.52 | ||
Share-based awards available for grant (in shares) | 27,500,000 | ||||
First Data | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Entity shares issued per acquiree share (in shares) | 0.303 | ||||
Stock price achievement of common stock (in dollars per share) | $ 32 | ||||
First Data | Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 467 | ||||
Weighted-average period unrecognized compensation cost will be recognized | 1 year 2 months 12 days | ||||
Consideration transferred, equity value | $ 768 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period that awards will expire (in years) | 10 years | ||||
Share-based awards, stock options, exercised (in shares) | 4,400,000 | 2,600,000 | 4,700,000 | ||
Stock options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Stock options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Restricted Stock Units and Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Restricted Stock Units and Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Performance Share Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award requisite performance period (in years) | 2 years | ||||
Performance Share Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award requisite performance period (in years) | 3 years | ||||
Employee stock purchase plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense recognized related to discount on purchase date (as a percent) | 10.00% | 15.00% | |||
Share-based awards available for grant (in shares) | 23,800,000 | ||||
Shares issued under equity plan (in shares) | 500,000 | 500,000 | 600,000 | ||
Employee stock purchase plan | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense recognized related to discount on purchase date (as a percent) | 5.00% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Estimation Assumptions Used (Details) | Jul. 29, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 6 years 6 months | 6 years 4 months 24 days | 6 years 4 months 24 days | |
Average risk-free interest rate | 0.60% | 1.80% | 2.70% | |
Expected volatility (as a percent) | 29.30% | 28.30% | 28.50% | |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | |
First Data | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 2 years 6 months | |||
Average risk-free interest rate | 1.90% | |||
Expected volatility (as a percent) | 27.40% | |||
Expected dividend yield (as a percent) | 0.00% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Shares | |
Stock options outstanding - balance at beginning of period (in shares) | shares | 14,689 |
Granted (in shares) | shares | 168 |
Forfeited (in shares) | shares | (214) |
Exercised (in shares) | shares | (4,414) |
Stock options outstanding - balance at end of period (in shares) | shares | 10,229 |
Stock options exercisable (in shares) | shares | 8,822 |
Weighted- Average Exercise Price | |
Stock options outstanding - balance at beginning of period (in dollars per share) | $ / shares | $ 50.82 |
Granted (in dollars per share) | $ / shares | 111.86 |
Forfeited (in dollars per share) | $ / shares | 108.74 |
Exercised (in dollars per share) | $ / shares | 37.51 |
Stock options outstanding - balance at end of period (in dollars per share) | $ / shares | 56.36 |
Stock options exercisable (in dollars per share) | $ / shares | $ 48.38 |
Weighted- Average Remaining Contractual Term (Years) | |
Stock options outstanding (in years) | 4 years 3 months 3 days |
Stock options exercisable (in years) | 3 years 7 months 24 days |
Aggregate Intrinsic Value (In millions) | |
Stock options outstanding | $ | $ 498 |
Stock options exercisable | $ | $ 492 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Restricted Stock and Performance Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted Stock Units and Awards | |
Shares | |
Balance at beginning of period (in shares) | shares | 4,797 |
Granted (in shares) | shares | 3,152 |
Forfeited (in shares) | shares | (420) |
Vested (in shares) | shares | (2,455) |
Balance at end of period (in shares) | shares | 5,074 |
Weighted- Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 98.29 |
Granted (in dollars per share) | $ / shares | 104.38 |
Forfeited (in dollars per share) | $ / shares | 103.99 |
Vested (in dollars per share) | $ / shares | 99.09 |
Balance at end of period (in dollars per share) | $ / shares | $ 101.09 |
Performance Share Units | |
Shares | |
Balance at beginning of period (in shares) | shares | 1,821 |
Granted (in shares) | shares | 255 |
Forfeited (in shares) | shares | (158) |
Vested (in shares) | shares | (526) |
Balance at end of period (in shares) | shares | 1,392 |
Weighted- Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 95.20 |
Granted (in dollars per share) | $ / shares | 108.68 |
Forfeited (in dollars per share) | $ / shares | 103.12 |
Vested (in dollars per share) | $ / shares | 92.72 |
Balance at end of period (in dollars per share) | $ / shares | $ 96.32 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Additional Information Related to Stock Option and Restricted Stock Unit Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Total intrinsic value of stock options exercised | $ 339 | $ 194 | $ 331 |
Fair value of restricted stock units vested | 332 | 454 | 198 |
Income tax benefit from stock options exercised and restricted stock units vested | 142 | 156 | 126 |
Cash received from stock options exercised | $ 91 | $ 83 | $ 104 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Integration activities charges | $ 118 | $ 303 | $ 56 |
Non-cash impairment charge | 15 | 124 | 48 |
Accelerated amortization expense included within finance lease expense | 62 | ||
Accelerated amortization expense | 56 | ||
Employee Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs | 95 | 131 | 32 |
Employee severance and other separation costs accrual | 36 | 27 | 14 |
Share-based compensation costs | $ 8 | $ 48 | $ 23 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Changes in Reserve (Details) - Employee Termination Costs - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 27 | $ 14 | |
Severance and other separation costs | 95 | 131 | $ 32 |
Cash payments | (86) | (118) | |
Restructuring reserve, ending balance | $ 36 | $ 27 | $ 14 |
Income Taxes - Pretax Income an
Income Taxes - Pretax Income and Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Current: | ||||
Federal | $ 378 | $ (25) | $ 25 | |
State | 138 | 71 | 69 | |
Foreign | 109 | 79 | 57 | |
Total current | 625 | 125 | 151 | |
Deferred: | ||||
Federal | (186) | 189 | 118 | |
State | (106) | (34) | (18) | |
Foreign | 30 | (84) | (53) | |
Total deferred | [1] | (262) | 71 | 47 |
Income tax provision | $ 363 | $ 196 | $ 198 | |
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal effect | 1.60% | 2.00% | 3.70% |
Foreign tax law changes | 8.00% | 2.80% | 0.00% |
Foreign derived intangibles income deduction | (0.031) | (0.032) | (0.002) |
Excess tax benefit from share-based awards | (2.20%) | (3.90%) | (5.10%) |
Sale of businesses and subsidiary restructuring | (2.10%) | 0.70% | (2.60%) |
Unrecognized tax benefits | (2.70%) | (1.00%) | (0.10%) |
Nondeductible executive compensation | 0.70% | 2.00% | 1.00% |
Valuation allowance | (1.30%) | (1.70%) | 0.30% |
Other, net | 1.90% | (2.00%) | 0.30% |
Effective income tax rate | 21.80% | 16.70% | 18.30% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Accrued expenses | $ 171 | $ 189 |
Share-based compensation | 134 | 185 |
Net operating loss and credit carry-forwards | 804 | 1,158 |
Leasing liabilities | 194 | 171 |
Other | 194 | 76 |
Subtotal | 1,497 | 1,779 |
Valuation allowance | (697) | (888) |
Total deferred tax assets | 800 | 891 |
Capitalized software development costs | (633) | (614) |
Intangible assets | (2,676) | (2,993) |
Property and equipment | (280) | (198) |
Capitalized commissions | (95) | (87) |
Investments in joint ventures | (630) | (908) |
Leasing right-of-use assets | (142) | (141) |
Other | (474) | (311) |
Total deferred tax liabilities | (4,930) | (5,252) |
Total | $ (4,130) | $ (4,361) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Income tax expense related to the revaluation of certain net deferred tax liabilities | $ 134 | $ 32 | |
Valuation allowance | 697 | 888 | |
Unrecognized tax benefits that would impact effective tax rate | 86 | ||
Decrease in unrecognized tax benefits reasonably possible | 24 | ||
Interest expense and penalties | (6) | 3 | $ 2 |
Accrued interest expense and penalties | $ 15 | $ 22 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities on Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Noncurrent assets | $ 42 | $ 28 |
Noncurrent liabilities | (4,172) | (4,389) |
Total | $ (4,130) | $ (4,361) |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards, General Business Credit Carryforwards, and Tax Credit Carryforwards (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
General business credit carryforwards | ||
Net operating loss carryforwards: | ||
General business credit carryforwards | $ 12 | $ 41 |
Federal | ||
Net operating loss carryforwards: | ||
Net operating loss carryforwards | 178 | 443 |
State | ||
Net operating loss carryforwards: | ||
Net operating loss carryforwards | 3,763 | 3,944 |
Foreign | ||
Net operating loss carryforwards: | ||
Net operating loss carryforwards | 2,580 | $ 3,343 |
Expire 2022 through 2041 | Foreign | ||
Net operating loss carryforwards: | ||
Net operating loss carryforwards | 375 | |
Expire 2027 | General business credit carryforwards | ||
Net operating loss carryforwards: | ||
General business credit carryforwards | $ 12 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits - Beginning of year | $ 171 | $ 145 | $ 49 |
Increases for assumed tax positions related to First Data | 0 | 0 | 82 |
Increases for tax positions taken during the current year | 16 | 9 | 8 |
Increases for tax positions taken in prior years | 5 | 53 | 16 |
Decreases for tax positions taken in prior years | (41) | (23) | (2) |
Decreases for settlements | (1) | (2) | (1) |
Lapse of the statute of limitations | (26) | (11) | (7) |
Unrecognized tax benefits - End of year | $ 124 | $ 171 | $ 145 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||||
Subscriber funds | $ 1,600 | $ 1,700 | ||
First Data | First Data Subsidiary Merchant Matters | ||||
Loss Contingencies [Line Items] | ||||
Payment for legal settlement | $ 28 | $ 40 | ||
Loss contingency accrual | 32 | $ 32 | ||
First Data | First Data Subsidiary Merchant Matters | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimated range of exposure | 0 | |||
First Data | First Data Subsidiary Merchant Matters | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimated range of exposure | $ 50 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Millions, $ in Millions | May 03, 2021 | Dec. 14, 2020 | Dec. 04, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 04, 2021 | May 02, 2021 | Jul. 01, 2020 | Jun. 30, 2020 |
Fiserv | New Omaha | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Secondary public offering (in shares) | 23 | 20.1 | ||||||||
New Omaha | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of shares to be repurchased (in shares) | 5 | 1.8 | ||||||||
Share repurchase amount | $ 588 | $ 200 | ||||||||
New Omaha | Fiserv | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership percentage by noncontrolling owner | 13.00% | 16.00% | 9.00% | 13.00% | ||||||
Merchant Alliances | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Amounts due from unconsolidated merchant alliances | $ 36 | $ 37 | ||||||||
Merchant Alliances | Related Party Fees | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Processing, administrative service, and other fees | 203 | 236 | $ 112 | |||||||
Merchant Alliances | Related Party Fees | Merchant Alliances | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Processing, administrative service, and other fees | 171 | 183 | 76 | |||||||
Corporate joint venture | Banc of America Merchant Services | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of interest in joint venture | 51.00% | 51.00% | ||||||||
Affiliated Entity | Related Party Fees | Lending Solutions Business And Investment Services Business | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Processing, administrative service, and other fees | $ 37 | $ 58 | $ 36 |
Business Segment Information -
Business Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | Jul. 01, 2020 | Feb. 18, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 16,226 | $ 14,852 | $ 10,187 | |||
Operating income (loss) | 2,288 | 1,852 | 1,609 | |||
Capital expenditures, including capitalized software and other intangibles | [1] | 1,160 | 900 | 721 | ||
Depreciation and amortization expense | 3,248 | 3,257 | 1,778 | |||
Investment Services Business | ||||||
Segment Reporting Information [Line Items] | ||||||
Controlling interest sold (as a percent) | 60.00% | |||||
Investment Services Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on sale of business | 428 | |||||
Banc Of America Merchant Services Joint Venture | Bank Of America | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain on deconsolidation | $ 36 | |||||
Processing and services revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [2] | 13,307 | 12,215 | 8,573 | ||
Product revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 2,919 | $ 2,637 | 1,614 | |||
Fintech | Fiserv Automotive Solutions, LLC | ||||||
Segment Reporting Information [Line Items] | ||||||
Controlling interest sold (as a percent) | 60.00% | |||||
Operating segments | Acceptance | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 6,479 | $ 5,522 | 2,571 | |||
Operating income (loss) | 1,996 | 1,427 | 764 | |||
Capital expenditures, including capitalized software and other intangibles | 314 | 227 | 147 | |||
Depreciation and amortization expense | 245 | 239 | 146 | |||
Operating segments | Acceptance | Processing and services revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 5,560 | 4,736 | 2,215 | |||
Operating segments | Acceptance | Product revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 919 | 786 | 356 | |||
Operating segments | Fintech | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 3,022 | 2,901 | 2,942 | |||
Operating income (loss) | 1,081 | 992 | 885 | |||
Capital expenditures, including capitalized software and other intangibles | 222 | 183 | 182 | |||
Depreciation and amortization expense | 226 | 202 | 191 | |||
Operating segments | Fintech | Processing and services revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 2,832 | 2,714 | 2,737 | |||
Operating segments | Fintech | Product revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 190 | 187 | 205 | |||
Operating segments | Payments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 5,833 | 5,504 | 3,909 | |||
Operating income (loss) | 2,557 | 2,361 | 1,658 | |||
Capital expenditures, including capitalized software and other intangibles | 272 | 242 | 196 | |||
Depreciation and amortization expense | 254 | 248 | 204 | |||
Operating segments | Payments | Processing and services revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 4,883 | 4,702 | 3,431 | |||
Operating segments | Payments | Product revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 950 | 802 | 478 | |||
Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 892 | 925 | 765 | |||
Operating income (loss) | (3,346) | (2,928) | (1,698) | |||
Capital expenditures, including capitalized software and other intangibles | 352 | 248 | 196 | |||
Depreciation and amortization expense | 2,523 | 2,568 | 1,237 | |||
Corporate and Other | Processing and services revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 32 | 63 | 190 | |||
Corporate and Other | Product revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 860 | $ 862 | $ 575 | |||
[1] | The company revised the consolidated statements of cash flows presentation to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised the 2020 and 2019 presentation for comparable purposes. Additional information is included in Note 1. | |||||
[2] | Includes processing and other fees charged to related party investments accounted for under the equity method of $203 million, $236 million and $112 million for the years ended December 31, 2021, 2020 and 2019, respectively (see Note 20). |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Deferred tax asset valuation allowance - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 888 | $ 1,145 | $ 101 |
Charged to Costs and Expenses | 13 | 6 | 8 |
Charged to Other Accounts | (127) | 64 | 1,036 |
Deductions | (77) | (327) | 0 |
Balance at End of Period | $ 697 | $ 888 | $ 1,145 |