Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 21, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 609,614,903 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000798354 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock, par value $0.01 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | FI | |
Security Exchange Name | NYSE | |
1.125% Senior Notes due 2027 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.125% Senior Notes due 2027 | |
Trading Symbol | FI27 | |
Security Exchange Name | NYSE | |
1.625% Senior Notes due 2030 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.625% Senior Notes due 2030 | |
Trading Symbol | FI30 | |
Security Exchange Name | NYSE | |
2.250% Senior Notes due 2025 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.250% Senior Notes due 2025 | |
Trading Symbol | FI25 | |
Security Exchange Name | NYSE | |
3.000% Senior Notes due 2031 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.000% Senior Notes due 2031 | |
Trading Symbol | FI31 | |
Security Exchange Name | NYSE | |
4.500% Senior Notes Due 2031 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.500% Senior Notes due 2031 | |
Trading Symbol | FI31A | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenue | $ 4,756 | $ 4,450 | $ 9,303 | $ 8,588 | |
Selling, general and administrative | 1,696 | 1,546 | 3,300 | 3,013 | |
Net loss (gain) on sale of businesses and other assets | 0 | 0 | 4 | (147) | |
Total expenses | 3,625 | 3,590 | 7,238 | 6,882 | |
Operating income | 1,131 | 860 | 2,065 | 1,706 | |
Interest expense, net | (232) | (176) | (434) | (344) | |
Other expense, net | (26) | (66) | (46) | (70) | |
Income before income taxes and (loss) income from investments in unconsolidated affiliates | 873 | 618 | 1,585 | 1,292 | |
Income tax provision | (181) | (137) | (305) | (235) | |
(Loss) income from investments in unconsolidated affiliates | 3 | 128 | (9) | 234 | |
Net income | 695 | 609 | 1,271 | 1,291 | |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | 12 | 11 | 25 | 24 | |
Net income attributable to Fiserv, Inc. | $ 683 | $ 598 | $ 1,246 | $ 1,267 | |
Net income attributable to Fiserv, Inc. per share: | |||||
Basic (in dollars per share) | $ 1.11 | $ 0.93 | $ 2.01 | $ 1.95 | |
Diluted (in dollars per share) | $ 1.10 | $ 0.92 | $ 1.99 | $ 1.94 | |
Shares used in computing net income attributable to Fiserv, Inc. per share: | |||||
Basic (in shares) | 615.4 | 645.2 | 621.2 | 648 | |
Diluted (in shares) | 619.2 | 650.8 | 625.3 | 654 | |
Processing and services | |||||
Revenue | [1] | $ 3,924 | $ 3,696 | $ 7,597 | $ 7,060 |
Cost of goods sold and services | 1,351 | 1,502 | 2,756 | 2,938 | |
Product | |||||
Revenue | 832 | 754 | 1,706 | 1,528 | |
Cost of goods sold and services | $ 578 | $ 542 | $ 1,178 | $ 1,078 | |
[1]Includes processing and other fees charged to related party investments accounted for under the equity method of $45 million and $50 million for the three months ended June 30, 2023 and 2022, respectively, and $91 million and $100 million for the six months ended June 30, 2023 and 2022, respectively (see Note 18). |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Processing, administrative, and other fees | $ 4,756 | $ 4,450 | $ 9,303 | $ 8,588 |
Related Party Fees | Equity investments | Related Party | ||||
Processing, administrative, and other fees | $ 45 | $ 50 | $ 91 | $ 100 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 695 | $ 609 | $ 1,271 | $ 1,291 |
Other comprehensive income (loss): | ||||
Fair market value adjustment on derivatives | 4 | (8) | 9 | (9) |
Tax impacts of derivatives | (1) | 1 | (4) | 0 |
Unrealized gain (loss) on defined benefit pension plans | 0 | (3) | 3 | (4) |
Tax impacts of defined benefit pension plans | 0 | 1 | (1) | 1 |
Foreign currency translation | 135 | (324) | 250 | (215) |
Tax impacts of foreign currency translation | 18 | (61) | 40 | (83) |
Total other comprehensive income (loss) | 157 | (389) | 304 | (301) |
Comprehensive income | 852 | 220 | 1,575 | 990 |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | 12 | 11 | 25 | 24 |
Less: other comprehensive income (loss) attributable to noncontrolling interests | 3 | (24) | 15 | (41) |
Comprehensive income attributable to Fiserv, Inc. | 837 | 233 | 1,535 | 1,007 |
Cost of Services | ||||
Other comprehensive income (loss): | ||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | (1) | 0 | 0 | (1) |
Interest Expense | ||||
Other comprehensive income (loss): | ||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | $ 2 | $ 5 | $ 7 | $ 10 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 1,082 | $ 902 |
Trade accounts receivable, less allowance for doubtful accounts | 3,465 | 3,585 |
Prepaid expenses and other current assets | 2,076 | 1,575 |
Settlement assets | 14,821 | 21,482 |
Total current assets | 21,444 | 27,544 |
Property and equipment, net | 2,023 | 1,958 |
Intangible assets, net | 11,779 | 12,415 |
Goodwill | 37,109 | 36,811 |
Contract costs, net | 920 | 905 |
Investments in unconsolidated affiliates | 2,316 | 2,403 |
Other long-term assets | 2,008 | 1,833 |
Total assets | 77,599 | 83,869 |
Liabilities and Equity | ||
Accounts payable and accrued expenses | 3,359 | 3,883 |
Short-term and current maturities of long-term debt | 608 | 468 |
Contract liabilities | 674 | 625 |
Settlement obligations | 14,821 | 21,482 |
Total current liabilities | 19,462 | 26,458 |
Long-term debt | 22,595 | 20,950 |
Deferred income taxes | 3,400 | 3,602 |
Long-term contract liabilities | 244 | 235 |
Other long-term liabilities | 1,021 | 936 |
Total liabilities | 46,722 | 52,181 |
Commitments and Contingencies (see Note 17) | ||
Redeemable Noncontrolling Interests | 161 | 161 |
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 shares issued | 8 | 8 |
Additional paid-in capital | 22,988 | 23,011 |
Accumulated other comprehensive loss | (900) | (1,189) |
Retained earnings | 18,622 | 17,376 |
Treasury stock, at cost, 173 million and 154 million shares, respectively | (10,727) | (8,378) |
Total Fiserv, Inc. shareholders’ equity | 29,991 | 30,828 |
Noncontrolling interests | 725 | 699 |
Total equity | 30,716 | 31,527 |
Total liabilities and equity | 77,599 | 83,869 |
Customer relationships, net | ||
Assets | ||
Intangible assets, net | 7,668 | 8,424 |
Other intangible assets, net | ||
Assets | ||
Intangible assets, net | $ 4,111 | $ 3,991 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Fiserv, Inc. Shareholders’ Equity: | ||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued (in shares) | 784,000,000 | 784,000,000 |
Treasury stock (in shares) | 173,000,000 | 154,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 1,271 | $ 1,291 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and other amortization | 717 | 642 |
Amortization of acquisition-related intangible assets | 868 | 966 |
Amortization of financing costs and debt discounts | 20 | 22 |
Share-based compensation | 199 | 155 |
Deferred income taxes | (186) | (317) |
Net loss (gain) on sale of businesses and other assets | 4 | (147) |
Loss (income) from investments in unconsolidated affiliates | 9 | (234) |
Distributions from unconsolidated affiliates | 30 | 41 |
Other operating activities | (1) | 3 |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||
Trade accounts receivable | 131 | (363) |
Prepaid expenses and other assets | (430) | (224) |
Contract costs | (116) | (154) |
Accounts payable and other liabilities | (573) | 111 |
Contract liabilities | 65 | 13 |
Net cash provided by operating activities | 2,008 | 1,805 |
Cash flows from investing activities: | ||
Capital expenditures, including capitalized software and other intangibles | (679) | (718) |
Net proceeds from sale of businesses and other assets | 0 | 175 |
Payments for acquisition of businesses, net of cash acquired | 0 | (668) |
Distributions from unconsolidated affiliates | 79 | 78 |
Purchases of investments | (11) | (30) |
Proceeds from sale of investments | 0 | 3 |
Other investing activities | (2) | 0 |
Net cash used in investing activities | (613) | (1,160) |
Cash flows from financing activities: | ||
Debt proceeds | 3,160 | 1,191 |
Debt repayments | (978) | (1,610) |
Net (repayments of) proceeds from commercial paper and short-term borrowings | (767) | 869 |
Payments of debt financing costs | (21) | 0 |
Proceeds from issuance of treasury stock | 53 | 72 |
Purchases of treasury stock, including employee shares withheld for tax obligations | (2,603) | (1,078) |
Settlement activity, net | (515) | (189) |
Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (14) | (22) |
Payments of acquisition-related contingent consideration | (30) | 0 |
Other financing activities | (35) | 13 |
Net cash used in financing activities | (1,750) | (754) |
Effect of exchange rate changes on cash and cash equivalents | 19 | (33) |
Net change in cash and cash equivalents | (336) | (142) |
Cash and cash equivalents, beginning balance | 3,192 | 3,205 |
Cash and cash equivalents, ending balance | $ 2,856 | $ 3,063 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a majority 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 (loss) 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 significant influence. The Company maintains a majority controlling financial interest in certain entities, mostly related to consolidated merchant alliances (see Note 18). 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 10). 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. Cash and Cash Equivalents Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less and 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 changes in settlement cash and cash equivalents are included in settlement activity, net within cash flows from financing activities in the consolidated statements of cash flows. The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows at: (In millions) June 30, 2023 December 31, 2022 June 30, 2022 Cash and cash equivalents on the consolidated balance sheets $ 1,082 $ 902 $ 883 Cash and cash equivalents included in settlement assets 1,768 2,283 2,172 Other restricted cash 6 7 8 Total cash and cash equivalents on the consolidated statements of cash flows $ 2,856 $ 3,192 $ 3,063 Allowance for Doubtful Accounts The Company analyzes the collectability of trade accounts receivable by considering historical bad debts and issued client credits, 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 $66 million and $52 million at June 30, 2023 and December 31, 2022, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses represent advance payments for goods and services to be consumed in the future, such as maintenance, postage and insurance, and totaled $506 million and $431 million at June 30, 2023 and December 31, 2022, respectively. Other current assets, including Clover Capital cash advances and settlement advance cash payments, totaled $1,570 million and $1,144 million at June 30, 2023 and December 31, 2022, respectively. The Company offers merchants advance access to capital through its Clover Capital cash advance program. Under this program, merchants sell fixed amounts of their future credit card receivables to the Company in exchange for an up-front purchase price payment. Future credit card receivables purchased by the Company under the Clover Capital program were $199 million and $164 million at June 30, 2023 and December 31, 2022, respectively. The Company maintained a reserve of $8 million and $7 million at June 30, 2023 and December 31, 2022, respectively, based on an estimate of uncollectible amounts. The Company also offers merchants within its international operations advance access to capital by providing them the opportunity to receive settlement cash payments in advance in exchange for their receivables, including when the cardholders have elected to pay such merchants over time in installments. The Company maintains short-term lines of credit with foreign banks and alliance partners to fund such anticipated settlement activity (see Note 9). These local functional currency arrangements are primarily associated with the Company’s operations in Latin America, the most significant of which are denominated in Argentine peso and Brazilian real. The Company’s outstanding cash advances from card issuers related to this settlement funding activity were $504 million and $264 million at June 30, 2023 and December 31, 2022, respectively. 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, processors, merchants and consumers, and collateral amounts held to manage merchant credit risk, primarily associated with the Company’s merchant acquiring services. As a processor, the Company facilitates the clearing and settlement activity for the merchant and records settlement assets and obligations upon processing a payment transaction. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners, merchants or direct consumers. Settlement obligations represent amounts payable to merchants and payees. Certain merchant settlement assets (included within settlement receivables) that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership, but which the Company has the right to use, 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. 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 a 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 mitigate this risk. 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 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 $22 million and $20 million for the three months ended June 30, 2023 and 2022, respectively, and $37 million and $28 million for the six months ended June 30, 2023 and 2022, respectively. The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of merchant collateral. The amount of collateral available to the Company was $1.1 billion and $1.5 billion at June 30, 2023 and December 31, 2022, respectively. 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 factors such as changes in economic conditions or increases in merchant fraud. The aggregate merchant credit loss allowance was $34 million and $29 million at June 30, 2023 and December 31, 2022, respectively. 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. The Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2022 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 or currency exchange rate environments; a shift in strategic initiatives; a deterioration in financial performance within a particular reporting unit; or significant changes in the composition of, or assumptions used in, the quantitative test on certain of the Company’s reporting units (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. Additionally, a significant change in a merchant alliance business relationship or operating performance could result in a material goodwill impairment charge. There is no accumulated goodwill impairment for the Company through June 30, 2023. Other Equity Investments The Company maintains investments, of which it does not have significant influence, in various equity securities without a readily determinable fair value. Such investments totaled $138 million and $135 million at June 30, 2023 and December 31, 2022, 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 expense, net in the consolidated statements of income for the period. Adjustments made to the values recorded for certain equity securities and gains and losses from sales of equity securities during the three and six months ended June 30, 2023 and 2022, were not significant. 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. Financial statements of subsidiaries located in highly inflationary economies outside of the U.S. are remeasured into U.S. dollars, and the foreign currency gains and losses from the remeasurement of monetary assets and liabilities are reflected in the consolidated statements of income, rather than as foreign currency translation within accumulated other comprehensive loss in the consolidated balance sheets. The remeasurement of monetary assets and liabilities in highly inflationary economies, primarily Argentina, resulted in foreign currency exchange losses of $32 million and $12 million for the three months ended June 30, 2023 and 2022, respectively, and $50 million and $17 million for the six months ended June 30, 2023 and 2022, respectively, which is included within other expense, net within the consolidated statements of income. 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 fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries. 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. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a net investment hedge, changes in the fair value of the derivative, net of tax, are recorded in the foreign currency translation component of other comprehensive income (loss) until the sale or complete liquidation of the underlying net investment. If the derivative is designated as a fair value hedge, changes in the fair value of the derivative are recorded in the same line item as the changes in the fair value of the hedged item and recognized in the consolidated statements of income. To the extent a derivative is not designated as a hedge, changes in fair value are recognized in the consolidated statements of income. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. 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: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Interest expense $ (237) $ (178) $ (447) $ (349) Interest income 5 2 13 5 Interest expense, net $ (232) $ (176) $ (434) $ (344) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which among other items, requires that entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. For public entities, the provisions within ASU 2022-02 are to be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2022-02 effective January 1, 2023, and the adoption did not have a material impact on the Company’s financial statement disclosures for the six months ended June 30, 2023. In 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820) : Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”), which clarifies the guidance in Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“Topic 820”), when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with ASC Topic 820. For public entities, ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The provisions within ASU 2022-03 are to be applied prospectively with any adjustments from the adoption |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 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. Disaggregation of Revenue The Company’s operations are comprised of the Merchant Acceptance (“Acceptance”) segment, the Financial Technology (“Fintech”) segment and the Payments and Network (“Payments”) segment. Additional information regarding the Company’s business segments is included in Note 19. 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% of total revenue for each of the three and six months ended June 30, 2023 and 2022. (In millions) Reportable Segments Type of Revenue Acceptance Fintech Payments Corporate Total Three Months Ended June 30, 2023 Processing $ 1,772 $ 414 $ 1,213 $ 7 $ 3,406 Hardware, print and card production 241 11 269 — 521 Professional services 6 117 68 — 191 Software maintenance — 138 13 — 151 License and termination fees 11 46 44 — 101 Output Solutions postage — — — 255 255 Other 35 58 38 — 131 Total Revenue $ 2,065 $ 784 $ 1,645 $ 262 $ 4,756 Three Months Ended June 30, 2022 Processing $ 1,660 $ 398 $ 1,155 $ 6 $ 3,219 Hardware, print and card production 215 10 237 — 462 Professional services 5 131 67 — 203 Software maintenance — 139 5 — 144 License and termination fees 14 68 34 — 116 Output Solutions postage — — — 222 222 Other 7 57 20 — 84 Total Revenue $ 1,901 $ 803 $ 1,518 $ 228 $ 4,450 (In millions) Reportable Segments Type of Revenue Acceptance Fintech Payments Corporate Total Six Months Ended June 30, 2023 Processing $ 3,326 $ 830 $ 2,400 $ 13 $ 6,569 Hardware, print and card production 487 23 556 — 1,066 Professional services 10 229 148 — 387 Software maintenance — 275 19 — 294 License and termination fees 21 99 73 — 193 Output Solutions postage — — — 528 528 Other 68 120 78 — 266 Total Revenue $ 3,912 $ 1,576 $ 3,274 $ 541 $ 9,303 Six Months Ended June 30, 2022 Processing $ 3,063 $ 803 $ 2,268 $ 12 $ 6,146 Hardware, print and card production 440 19 473 — 932 Professional services 10 247 129 — 386 Software maintenance — 277 11 — 288 License and termination fees 28 116 60 — 204 Output Solutions postage — — — 461 461 Other 13 119 39 — 171 Total Revenue $ 3,554 $ 1,581 $ 2,980 $ 473 $ 8,588 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers: (In millions) June 30, 2023 December 31, 2022 Contract assets $ 593 $ 551 Contract liabilities 918 860 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. The Company recognized $405 million of revenue during the six months ended June 30, 2023 that was included in the contract liabilities balance at the beginning of the period. 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 June 30, 2023: (In millions) Year Ending December 31, Remainder of 2023 $ 1,170 2024 2,104 2025 1,664 2026 1,106 Thereafter 1,500 The Company applies the optional exemption under ASC Topic 606, Revenue from Contracts with Customers (“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. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2023 | |
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 Topic 805, Business Combinations . Purchase price was allocated to the respective identifiable assets acquired and liabilities assumed based on the estimated fair values at the date of acquisitions. The results of operations for the following acquired and divested businesses are included in the consolidated results of the Company from the respective dates of acquisition and through the respective dates of disposition. Pro forma information for these acquired businesses is not provided because they did not have a material effect, individually or in the aggregate, on the Company’s consolidated results of operations. Acquisitions Acquisition of Merchant One On December 20, 2022, the Company acquired Merchant One, Inc. (“Merchant One”), an independent sales organization focused on acquiring merchants in the restaurant, retail and e-commerce industries using an innovative mix of direct and digital marketing strategies, for $302 million, net of $1 million of acquired cash. Merchant One is included within the Acceptance segment and enhances the Company’s merchant distribution and sales force channels. During the six months ended June 30, 2023, the Company identified and recorded measurement period adjustments to the preliminary Merchant One purchase price allocation, including refinements to valuations of acquired intangible assets, 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 $61 million and a corresponding decrease in identifiable intangible assets, including customer relationships. Such measurement period adjustments did not have a material impact on the Company’s consolidated statement of income. The allocation of the purchase price was finalized in the second quarter of 2023 and resulted in the recognition of identifiable intangible assets of $118 million, goodwill of $179 million and other net assets of $6 million. Goodwill, which is deductible for tax purposes, is primarily attributed to the anticipated value created by expanding the reach of the Clover ® cloud-based POS and business management platform, and select value-added services that enable the Company to deliver new and innovative capabilities to Merchant One’s clients. The amounts allocated to identifiable intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Residual buyouts $ 83 9 years Customer relationships 35 10 years Total $ 118 9 years Acquisition of Finxact On April 1, 2022, the Company acquired a remaining ownership interest in Finxact, Inc. (“Finxact”), a developer of cloud-native banking solutions powering digital transformation throughout the financial services sector, for $645 million, net of $27 million of acquired cash. The Company previously held a noncontrolling equity interest in Finxact, which was accounted for under the equity method. 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 $110 million, included within income from investments in unconsolidated affiliates in the consolidated statement of income during the three months ended June 30, 2022. Finxact is included within the Fintech segment and advances the Company’s digital banking strategy, expanding its account processing, digital, and payments solutions. The allocation of purchase price recorded for Finxact was finalized in the fourth quarter of 2022 as follows: (In millions) Cash $ 27 Other net assets 1 Intangible assets 105 Goodwill 670 Total consideration $ 803 Less: Fair value of previously held equity interest (131) Total purchase price $ 672 Goodwill, which is not deductible for tax purposes, is primarily attributed to the anticipated value created by the combined scale, core platform modernization, and accelerated delivery of enhanced digital banking solutions offered to financial institutions of all sizes. The amounts allocated to identifiable intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 90 6 years Trade name 9 5 years Customer relationships 6 8 years Total $ 105 6 years Other Acquisitions On December 29, 2022, the Company acquired OrangeData S.A. (“Yacaré”), an Argentina-based payment service provider that enables customers to transact at merchant locations using QR codes. Yacaré is included within the Acceptance segment and enhances the Company’s instant payment transaction capabilities. On September 1, 2022, the Company acquired NexTable, Inc. (“NexTable”), a provider of cloud-based reservation and table management solutions for restaurants. NexTable is included within the Acceptance segment and expands the Company’s end-to-end restaurant solutions. On June 1, 2022, the Company acquired The LR2 Group, LLC (“City POS”), an independent sales organization that promotes payment processing services and facilitates the sale of POS equipment for merchants. City POS is included within the Acceptance segment and expands the Company’s merchant services business. The Company acquired these businesses for an aggregate purchase price of $44 million, including earn-out provisions estimated at a fair value of $6 million (see Note 7). The allocation of purchase price for these acquisitions resulted in the recognition of identifiable intangible assets of $23 million, goodwill of $22 million and other net assumed liabilities of $1 million. The purchase price allocations for the CityPOS and NexTable acquisitions were finalized in the third and fourth quarters of 2022, respectively. The purchase price allocation for the Yacaré acquisition was finalized in the second quarter of 2023. Measurement period adjustments did not have a material impact on the Company’s consolidated statements of income. Goodwill for these acquisitions, of which $17 million is deductible for tax purposes, is primarily attributed to the value created by expanding the reach of the Company’s payment solutions and enhancing omnichannel capabilities. The amounts allocated to identifiable intangible assets for other acquisitions acquired in 2022 were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 12 7 years Customer relationships 11 10 years Total $ 23 9 years Dispositions Disposition of Financial Reconciliation Business In June 2023, the Company entered into an agreement to sell its financial reconciliation business. The transaction closed on July 25, 2023, for net cash proceeds of approximately $230 million, subject to customary adjustments. The corresponding assets of approximately $70 million, consisting primarily of trade accounts receivable, capitalized software and allocated goodwill, and liabilities of approximately $15 million, consisting primarily of contract liabilities, were presented as held for sale within prepaid expenses and other current assets and accounts payable and accrued expenses in the Company’s consolidated balance sheet at June 30, 2023. The Company expects to recognize a pre-tax gain on the sale of approximately $160 million. The expected gain is comprised of the difference between the consideration received and the net carrying amount of the business, including accumulated foreign currency translation losses which will be reclassified from accumulated other comprehensive loss. The financial reconciliation business was reported within the Company’s Fintech segment. Disposition of Fiserv Costa Rica and Systems Integration Services On October 17, 2022, the Company sold Fiserv Costa Rica, S.A. and its Systems Integration Services (“SIS”) operations, which provides information technology engineering services in the U.S. and India, to a single buyer, for an aggregate sales price of $49 million. The Company recognized a pre-tax gain of $44 million on the sales, recorded within net gain on sale of businesses and other assets, with a related tax expense of $8 million recorded within the income tax provision, in the consolidated statement of income for the year ended December 31, 2022. The Company recognized a pre-tax loss of $3 million, recorded within net loss (gain) on sale of businesses and other assets in the six months ended June 30, 2023, associated with final working capital adjustments related to the disposition of Fiserv Costa Rica, S.A. Fiserv Costa Rica, S.A. and SIS were reported primarily within the Fintech segment. Disposition of Korea Operations On September 30, 2022, the Company sold its Korea operations, which were reported within the Acceptance segment, for total consideration of $50 million, consisting of $43 million in net cash and an equity interest in the buyer of $7 million. The Company recognized a pre-tax loss of $127 million on the sale, recorded within net gain on sale of businesses and other assets in the consolidated statement of income for the year ended December 31, 2022. The loss was comprised of the difference between the consideration received and the net carrying amount of the business, including $40 million of allocated goodwill, $48 million of customer relationship net intangible assets and $56 million of accumulated foreign currency translation losses, which were reclassified from accumulated other comprehensive loss. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Identifiable intangible assets consisted of the following: (In millions) Gross Accumulated Net Book June 30, 2023 Customer relationships $ 14,703 $ 7,035 $ 7,668 Acquired software and technology 2,365 1,244 1,121 Trade names 636 326 310 Purchased software 1,223 619 604 Capitalized software and other intangibles 3,008 932 2,076 Total $ 21,935 $ 10,156 $ 11,779 December 31, 2022 Customer relationships $ 14,795 $ 6,371 $ 8,424 Acquired software and technology 2,510 1,234 1,276 Trade names 633 295 338 Purchased software 1,146 595 551 Capitalized software and other intangibles 2,601 775 1,826 Total $ 21,685 $ 9,270 $ 12,415 Amortization expense associated with the above identifiable intangible assets was as follows: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Amortization expense $ 614 $ 622 $ 1,209 $ 1,246 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2023 | |
Investments in and Advances to Affiliates [Abstract] | |
Investments in Unconsolidated Affiliates | 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 (loss) 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. The Company reviews its equity method investments each reporting period for indications of an other-than-temporary deterioration in value. A deterioration in value of an equity method investment determined to be other-than-temporary is recorded as a current-period impairment charge within (loss) income from investments in unconsolidated affiliates in the consolidated statements of income. The Company maintains noncontrolling ownership interests in Sagent M&C, LLC (“Sagent”) and defi SOLUTIONS Group, LLC (collectively the “Lending Joint Ventures”), which are accounted for under the equity method. In March 2022, Sagent completed a transaction with a third party for the contribution from and the sale by such third party to Sagent of certain intangible and tangible personal property rights, resulting in a dilution of the Company’s ownership interest in Sagent. As a result of the transaction, the Company recognized a pre-tax gain of $80 million within (loss) income from investments in unconsolidated affiliates, with related tax expense of $19 million recorded through the income tax provision, in the consolidated statement of income during the six months ended June 30, 2022. The Company’s remaining noncontrolling ownership interest in Sagent continues to be accounted for as an equity method investment. The Lending Joint Ventures maintain, as amended in April 2022, variable-rate term loan facilities with aggregate outstanding borrowings of $437 million in senior unsecured debt at June 30, 2023 and variable-rate revolving credit facilities with an aggregate borrowing capacity of $83 million with a syndicate of banks, which mature in April 2027. There were $33 million of aggregate outstanding borrowings on the revolving credit facilities at June 30, 2023. The Company has guaranteed the debt of the Lending Joint Ventures and does not anticipate that the Lending Joint Ventures will fail to fulfill their debt obligations (see Note 7). |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of cash equivalents, trade accounts receivable, other current assets, 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 maintains forward exchange contracts, certain of which are designated as cash flow hedges, to hedge foreign currency exposure. The Company also maintains cross-currency rate swap contracts designated as: (i) net investment hedges, to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro (see Note 12) and (ii) a fair value hedge of the spot foreign exchange rate risk on the principal amount of its British Pound-denominated 2.250% senior notes due in July 2025. These 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. Contingent consideration related to certain of the Company’s acquisitions (see Note 4) is estimated using the present value of a probability-weighted assessment approach based on 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: Fair Value (In millions) Classification Fair Value Hierarchy June 30, December 31, Assets Forward exchange contract not designated as a hedge Prepaid expenses and other current assets Level 2 $ 6 $ — Forward exchange contracts designated as cash flow hedges Prepaid expenses and other current assets Level 2 3 — Forward exchange contracts designated as cash flow hedges Other long-term assets Level 2 1 — Liabilities Cross-currency rate swap contract designated as fair value hedge Other long-term liabilities Level 2 $ 9 $ — Forward exchange contracts designated as cash flow hedges Accounts payable and accrued expenses Level 2 — 7 Forward exchange contracts designated as cash flow hedges Other long-term liabilities Level 2 — 1 Cross-currency rate swap contracts designated as net investment hedges Other long-term liabilities Level 2 32 23 Contingent consideration Accounts payable and accrued expenses Level 3 6 6 Contingent consideration Other long-term liabilities Level 3 2 2 Contingent debt guarantee Other long-term liabilities Level 3 21 21 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, 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 $21.1 billion and $19.2 billion at June 30, 2023 and December 31, 2022, respectively, and the carrying value was $22.4 billion and $20.6 billion at June 30, 2023 and December 31, 2022, respectively. The Company maintains liabilities for its obligations to perform over the term of its debt guarantee arrangements with the Lending Joint Ventures (see Note 6), which are reported within other long-term liabilities in the consolidated balance sheets. In April 2022, the Lending Joint Ventures amended their respective term loans and revolving credit facilities, increasing aggregate borrowing capacity by $75 million and extending the maturity to April 2027. The Company elected to guarantee this incremental indebtedness, resulting in aggregate guarantees of $520 million. The Company is entitled to receive a defined fee in exchange for its incremental guarantee of this indebtedness. The Company has not made any payments under the guarantees, nor has it been called upon to do so, and does not anticipate that the Lending Joint Ventures will fail to fulfill their debt obligations. The non-contingent component of the Company’s debt guarantee arrangements is recorded at amortized cost, but measured at fair value for disclosure purposes. The carrying value of the Company’s non-contingent liability of $36 million and $40 million approximates the fair value at June 30, 2023 and December 31, 2022, respectively (Level 3 of the fair value hierarchy). Such guarantees will be amortized in future periods over the contractual term of the debt. The contingent component of the Company’s debt guarantee arrangements represents the current expected credit losses to which the Company is exposed. The amount of the liability is estimated based on certain financial metrics of the Lending Joint Ventures and historical industry data, which is used to develop assumptions of the likelihood the guaranteed parties will default and the level of credit losses in the event a default occurs. The Company recognized $3 million for each of the three months ended June 30, 2023 and 2022, and $5 million and $6 million during the six months ended June 30, 2023 and 2022, respectively, within other expense, net in its consolidated statements of income related to its release from risk under the non-contingent guarantees as well as a change in the provision of estimated credit losses associated with the indebtedness of the joint ventures. Certain of the Company’s non-financial assets are measured at fair value on a non-recurring basis, including property and equipment, lease right-of-use (“ROU”) assets, equity securities without a readily determinable fair value, goodwill and other intangible assets, and are subject to fair value adjustment in certain circumstances. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: (In millions) June 30, 2023 December 31, 2022 Trade accounts payable $ 412 $ 652 Client deposits 898 871 Accrued compensation and benefits 247 279 Accrued taxes 103 432 Accrued interest 275 216 Accrued payment network fees 216 219 Operating lease liabilities 118 124 Accrued professional fees 116 108 Other accrued expenses 974 982 Total $ 3,359 $ 3,883 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt consisted of the following: (In millions) June 30, 2023 December 31, 2022 Short-term and current maturities of long-term debt: Foreign lines of credit $ 362 $ 198 Finance lease and other financing obligations 246 270 Total short-term and current maturities of long-term debt $ 608 $ 468 Long-term debt: 0.375% senior notes due July 2023 (Euro-denominated) $ 546 $ 531 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) 664 632 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) 546 531 5.450% senior notes due March 2028 900 — 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) 546 531 4.500% senior notes due May 2031 (Euro-denominated) 873 — 3.000% senior notes due July 2031 (British Pound-denominated) 664 632 5.600% senior notes due March 2033 900 — 4.400% senior notes due July 2049 2,000 2,000 U.S. dollar commercial paper notes 1,292 2,329 Euro commercial paper notes 1,285 1,210 Revolving credit facility 32 35 Term loan facility — 200 Unamortized discount and deferred financing costs (129) (120) Finance lease and other financing obligations 576 539 Total long-term debt $ 22,595 $ 20,950 The Company was in compliance with all financial debt covenants during the six months ended June 30, 2023. Senior Notes On May 24, 2023, the Company completed the public offering and issuance of 800 million Euros aggregate principal amount of 4.500% senior notes due in May 2031 (the “2031 Euro Senior Notes”). Interest on these senior notes is paid annually. The Company used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of U.S. dollar commercial paper notes and, in July 2023, the repayment of the 0.375% Euro-denominated senior notes. On March 2, 2023, the Company completed the public offering and issuance of $1.8 billion of senior notes, comprised of $900 million aggregate principal amount of 5.450% senior notes due in March 2028 and $900 million aggregate principal amount of 5.600% senior notes due in March 2033. Interest on these senior notes is paid semi-annually. The Company used the net proceeds from these senior notes offerings for general corporate purposes, including the repayment of U.S. dollar commercial paper notes. At June 30, 2023, the 0.375% Euro-denominated senior notes due in July 2023 and 3.800% senior notes due in October 2023 were classified in the consolidated balance sheet as long-term, as the Company has subsequently refinanced the 0.375% Euro- denominated senior notes due in July 2023 and has the intent to refinance the 3.800% senior notes due in October 2023 on a long-term basis and the ability to do so under its revolving credit facility. The indentures governing each of these 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 these senior notes, in whole or in part, at any time and from time to time at the applicable redemption price. Commercial Paper The Company maintains unsecured U.S. dollar and Euro commercial paper programs. 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 U.S. dollar program were $1.3 billion and $2.3 billion at June 30, 2023 and December 31, 2022, respectively, with weighted average interest rates of 5.337% and 4.818%, respectively. Outstanding borrowings under the Euro program were $1.3 billion and $1.2 billion at June 30, 2023 and December 31, 2022, respectively, with weighted average interest rates of 3.467% and 1.918%, respectively. The Company intends to maintain available capacity under its revolving credit facility 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 sheets as long-term 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. Revolving Credit Facility The Company maintains a senior unsecured multicurrency revolving credit facility, which matures in June 2027 and provides for a maximum aggregate principal amount of availability of $6.0 billion. Borrowings under the credit facility bear interest at a variable rate based on a Secured Overnight Financing Rate (SOFR), or a base rate in the case of U.S. dollar borrowings, in each case, plus a specified margin based on the Company’s long-term debt rating in effect from time to time (6.190% at June 30, 2023). Foreign Lines of Credit The Company maintains certain short-term lines of credit and other borrowing arrangements with foreign banks and alliance partners primarily to fund settlement activity associated with operations in Latin America. The Company entered into an annually renewable term loan facility to fund settlement advance cash payments in Brazil. This term loan, fully funded in April 2023, has a notional value of 514 million Brazilian real ($106 million USD equivalent) at June 30, 2023 that matures in April 2024 and bears interest at a variable Certificado de Depósito Interbancário (CDI) Rate, plus a specified margin of 1.70% per annum. Weighted-average interest rates under these facilities were 52.831% and 30.578% at June 30, 2023 and December 31, 2022, respectively. Term Loan Facility In June 2023, the Company repaid all remaining outstanding borrowings on its existing term loan facility utilizing proceeds from the issuance of U.S. dollar commercial paper notes and operating cash on hand, thereby terminating such facility. Borrowings under the term loan facility accrued interest at a variable rate 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. The variable interest rate on the term loan facility borrowings was 5.639% at December 31, 2022. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling InterestsThe minority partner in one of the Company’s existing merchant alliance joint ventures maintains a redeemable noncontrolling 1% interest which is presented outside of equity and carried at its estimated redemption value. The minority partner is entitled to a contractually determined share of the entity’s income, and the joint venture agreement contains redemption features whereby the interest held by the minority partner is 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 venture may be terminated by either party for convenience any time after December 31, 2024. 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 interest at a price equal to the fair market value of the minority interest through a distribution of cash, certain merchant contracts of the joint venture, or a combination thereof. 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 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. In conjunction with the termination, the joint venture minority partner elected to exercise its option to purchase certain additional merchant contracts of the joint venture. The Company received proceeds of $175 million from the sale of such merchant contracts of the joint venture, resulting in the recognition of a pre-tax gain of $147 million within net loss (gain) on sale of businesses and other assets, with related tax expense of $9 million recorded through the income tax provision, in the consolidated statement of income during the six months ended June 30, 2022. The following table presents a summary of the redeemable noncontrolling interests activity during the six months ended June 30: (In millions) 2023 2022 Balance at beginning of period $ 161 $ 278 Distributions paid to redeemable noncontrolling interests (13) (21) Share of income 13 15 Derecognition of redeemable noncontrolling interest — (111) Balance at end of period $ 161 $ 161 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity The following tables provide changes in equity during the three and six months ended June 30, 2023 and 2022: Fiserv, Inc. Shareholders’ Equity Three Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Noncontrolling Interests Total Equity Balance at March 31, 2023 784 165 $ 8 $ 22,946 $ (1,054) $ 17,939 $ (9,762) $ 717 $ 30,794 Net income (1) 683 6 689 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive income 154 3 157 Share-based compensation 106 106 Shares issued under stock plans (1) (64) 45 (19) Purchases of treasury stock 9 (1,010) (1,010) Balance at June 30, 2023 784 173 $ 8 $ 22,988 $ (900) $ 18,622 $ (10,727) $ 725 $ 30,716 (1) The total net income presented in equity for the three months ended June 30, 2023 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $6 million not included in equity. (2) The total distributions presented in equity for the three months ended June 30, 2023 excludes $5 million in distributions paid to redeemable noncontrolling interests not included in equity. Fiserv, Inc. Shareholders’ Equity Three Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Total Equity Noncontrolling Interests Balance at March 31, 2022 784 137 $ 8 $ 22,950 $ (640) $ 15,515 $ (6,561) $ 706 $ 31,978 Net income (1) 598 6 604 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive loss (365) (24) (389) Share-based compensation 94 94 Shares issued under stock plans (1) (34) 44 10 Purchases of treasury stock 5 (500) (500) Capital contribution from noncontrolling interest 13 13 Balance at June 30, 2022 784 141 $ 8 $ 23,010 $ (1,005) $ 16,113 $ (7,017) $ 700 $ 31,809 (1) The total net income presented in equity for the three months ended June 30, 2022 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $5 million not included in equity. (2) The total distributions presented in equity for the three months ended June 30, 2022 excludes $8 million in distributions paid to redeemable noncontrolling interests not included in equity. Fiserv, Inc. Shareholders’ Equity Six Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Noncontrolling Interests Total Equity Balance at December 31, 2022 784 154 $ 8 $ 23,011 $ (1,189) $ 17,376 $ (8,378) $ 699 $ 31,527 Net income (1) 1,246 12 1,258 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive income 289 15 304 Share-based compensation 199 199 Shares issued under stock plans (3) (222) 144 (78) Purchases of treasury stock 22 (2,493) (2,493) Balance at June 30, 2023 784 173 $ 8 $ 22,988 $ (900) $ 18,622 $ (10,727) $ 725 $ 30,716 (1) The total net income presented in equity for the six months ended June 30, 2023 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $13 million not included in equity. (2) The total distributions presented in equity for the six months ended June 30, 2023 excludes $13 million in distributions paid to redeemable noncontrolling interests not included in equity. Fiserv, Inc. Shareholders’ Equity Six Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Total Equity Noncontrolling Interests Balance at December 31, 2021 784 134 $ 8 $ 22,983 $ (745) $ 14,846 $ (6,140) $ 720 $ 31,672 Net income (1) 1,267 9 1,276 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive loss (260) (41) (301) Share-based compensation 155 155 Shares issued under stock plans (3) (128) 123 (5) Purchases of treasury stock 10 (1,000) (1,000) Capital contribution from noncontrolling interest 13 13 Balance at June 30, 2022 784 141 $ 8 $ 23,010 $ (1,005) $ 16,113 $ (7,017) $ 700 $ 31,809 (1) The total net income presented in equity for the six months ended June 30, 2022 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $15 million not included in equity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: (In millions) Derivatives Foreign Pension Plans Total Three Months Ended June 30, 2023 Balance at March 31, 2023 $ (95) $ (939) $ (20) $ (1,054) Other comprehensive income before reclassifications 1 150 — 151 Amounts reclassified from accumulated other comprehensive loss 3 — — 3 Net current-period other comprehensive income 4 150 — 154 Balance at June 30, 2023 $ (91) $ (789) $ (20) $ (900) Three Months Ended June 30, 2022 Balance at March 31, 2022 $ (105) $ (572) $ 37 $ (640) Other comprehensive loss before reclassifications (6) (361) (2) (369) Amounts reclassified from accumulated other comprehensive loss 4 — — 4 Net current-period other comprehensive loss (2) (361) (2) (365) Balance at June 30, 2022 $ (107) $ (933) $ 35 $ (1,005) Six Months Ended June 30, 2023 Balance at December 31, 2022 $ (103) $ (1,064) $ (22) $ (1,189) Other comprehensive income before reclassifications 6 275 2 283 Amounts reclassified from accumulated other comprehensive loss 6 — — 6 Net current-period other comprehensive income 12 275 2 289 Balance at June 30, 2023 $ (91) $ (789) $ (20) $ (900) Six Months Ended June 30, 2022 Balance at December 31, 2021 $ (107) $ (676) $ 38 $ (745) Other comprehensive loss before reclassifications (7) (257) (3) (267) Amounts reclassified from accumulated other comprehensive loss 7 — — 7 Net current-period other comprehensive loss — (257) (3) (260) Balance at June 30, 2022 $ (107) $ (933) $ 35 $ (1,005) Cash Flow Hedges The Company maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee (see Note 7). The notional amount of these derivatives was $369 million and $346 million at June 30, 2023 and December 31, 2022, respectively. Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2023, the Company estimates that it will recognize gains of approximately $3 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 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 Corporation (“First Data”) and its subsidiaries. In 2019, concurrent with the issuance of U.S dollar-denominated senior notes, the Treasury Locks were settled resulting in a loss, net of income taxes, and recorded in accumulated other comprehensive loss that is being amortized to earnings over the terms of the originally forecasted interest payments. The unamortized balance recorded in accumulated other comprehensive loss related to the Treasury Locks was $123 million and $130 million at June 30, 2023 and December 31, 2022, respectively. Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2023, the Company estimates that it will recognize approximately $15 million in net interest expense during the next twelve months related to settled interest rate hedge contracts. Net Investment Hedges 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 fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries. At June 30, 2023, aggregate notional cross-currency rate swaps of 400 million Euros were designated as net investment hedges to hedge a portion of the Company’s net investment in certain subsidiaries whose functional currency is the Euro. The Company has designated certain of 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. On May 24, 2023, in conjunction with the public offering and issuance of the 2031 Euro Senior Notes (see Note 9), the Company elected to designate such notes as a net investment hedge and simultaneously de-designated its existing net investment hedge election on its 0.375% Euro-denominated senior notes due in July 2023. To mitigate foreign currency exchange exposure on the 0.375% Euro-denominated senior notes, the Company entered into a forward exchange contract with matching critical terms (see Note 7). The following table outlines the terms of the Company’s Euro cross-currency rate swap contracts at June 30, 2023: Effective Date of Contract Maturity Date of Contract Notional Amount (EUR) Fixed Rate Paid (EUR) Fixed Rate Received (USD) September 1, 2022 June 1, 2025 80 million 2.096 % 3.85 % September 15, 2022 July 1, 2026 80 million 1.635 % 3.20 % October 6, 2022 June 1, 2025 80 million 1.922 % 3.85 % October 27, 2022 July 1, 2026 80 million 1.458 % 3.20 % November 10, 2022 June 1, 2025 80 million 1.816 % 3.85 % 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. Foreign currency transaction (losses) gains, net of income tax, related to net investment hedges that were recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income were as follows: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Cross-currency rate swap contracts $ (5) $ — $ (7) $ — Foreign currency-denominated debt (50) 181 (114) 248 The Company recorded income tax impacts of $18 million and $(61) million during the three months ended June 30, 2023 and 2022, respectively, and $40 million and $(83) million during the six months ended June 30, 2023 and 2022, respectively, in other comprehensive income (loss) from the translation of foreign currency-denominated senior notes, commercial paper notes and cross-currency rate swap contracts. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based CompensationThe Company recognized $106 million and $94 million of share-based compensation expense during the three months ended June 30, 2023 and 2022, respectively, and $199 million and $155 million of share-based compensation expense during the six months ended June 30, 2023 and 2022, respectively. 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. At June 30, 2023, the total remaining unrecognized compensation cost for restricted stock units and awards, performance share units, and unvested stock options, net of estimated forfeitures, of $577 million is expected to be recognized over a weighted-average period of 2.0 years. A summary of restricted stock unit, restricted stock award and performance share unit activity during the six months ended June 30, 2023 is as follows: Restricted Stock Units and Awards Performance Share Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Units and awards - December 31, 2022 5,530 $ 96.88 3,243 $ 100.93 Granted 2,423 112.99 359 129.68 Forfeited (239) 100.60 (47) 101.00 Vested (1,983) 98.73 (18) 95.29 Units and awards - June 30, 2023 5,731 $ 102.88 3,537 $ 103.66 A summary of stock option activity during the six months ended June 30, 2023 is as follows: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Stock options outstanding - December 31, 2022 6,336 $ 62.91 Granted — — Forfeited (32) 112.83 Exercised (1,903) 44.02 Stock options outstanding - June 30, 2023 4,401 $ 70.72 4.10 $ 244 Stock options exercisable - June 30, 2023 4,046 $ 67.10 3.84 $ 239 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax provision and effective income tax rate were as follows: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Income tax provision $ 181 $ 137 $ 305 $ 235 Effective income tax rate 20.7 % 22.2 % 19.2 % 18.2 % The income tax provision as a percentage of income before income taxes and (loss) income from investments in unconsolidated affiliates was 20.7% and 22.2% for the three months ended June 30, 2023 and 2022, respectively, and 19.2% and 18.2% for the six months ended June 30, 2023 and 2022, respectively. The Company’s potential liability for unrecognized tax benefits before interest and penalties was approximately $84 million at June 30, 2023. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $7 million over the next twelve months as a result of possible closure of tax audits, audit settlements, and the lapse of the statutes of limitations in various jurisdictions. As of June 30, 2023, the Company’s U.S. federal income tax return for 2022, and tax returns in certain states and foreign jurisdictions for 2015 through 2022, remain subject to examination by taxing authorities. |
Shares Used in Computing Net In
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. | Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. The computation of shares used in calculating basic and diluted net income per share is as follows: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic 615.4 645.2 621.2 648.0 Common stock equivalents 3.8 5.6 4.1 6.0 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted 619.2 650.8 625.3 654.0 For the three months ended June 30, 2023 and 2022, stock options for 0.9 million and 2.2 million shares, respectively, were excluded from the calculation of weighted-average outstanding shares - diluted because their impact was anti-dilutive. For the six months ended June 30, 2023 and 2022, stock options for 1.0 million and 2.1 million shares, respectively, were excluded from the calculation of weighted-average outstanding shares - diluted because their impact was anti-dilutive. |
Cash Flow Information
Cash Flow Information | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | Cash Flow Information Supplemental cash flow information consisted of the following: Six Months Ended (In millions) 2023 2022 Interest paid $ 369 $ 303 Income taxes paid 882 399 Treasury stock purchases settled after the balance sheet date 3 — Distribution of nonmonetary assets (see Note 10) — 111 Software obtained under financing arrangements 122 61 Right-of-use assets obtained in exchange for lease liabilities - operating leases 59 98 Right-of-use assets obtained in exchange for lease liabilities - finance leases 93 69 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Legislative Matters 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. The Company maintained accruals of $31 million and $21 million at June 30, 2023 and December 31, 2022, respectively, related to its various legal proceedings, primarily associated with the Company’s merchant acquiring business and certain tax matters. The Company’s estimate of the possible range of exposure for various litigation matters in excess of amounts accrued is $0 million to approximately $80 million. In the opinion of management, the liabilities, if any, which may ultimately result from such legal proceedings are not expected to have a material adverse effect on the Company’s consolidated financial statements. In June 2023, a Canadian tax law change related to the Goods and Services Tax / Harmonized Sales Tax (GST/HST) treatment of payment card services was enacted. The Company has estimated its exposure related to this multi-year retroactive tax law change and recognized a pre-tax expense of $27 million within selling, general and administrative expenses in the consolidated statement of income during the three and six months ended June 30, 2023. Electronic Payments Transactions In connection with the Company’s processing of electronic payments transactions, which are separate and distinct from the settlement payment transactions described in Note 1, 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 $1.2 billion and $1.7 billion at June 30, 2023 and December 31, 2022, 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 products and services will operate in accordance with identified specifications. From time to time, in connection with sales of businesses, the Company agrees to indemnify the buyers of such businesses for liabilities associated with the businesses that are sold. Payments, net of recoveries, under such indemnification or warranty provisions were not material to the Company’s consolidated financial statements. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Merchant Alliances A portion of the Company’s business is conducted through merchant alliances between the Company and financial institutions. 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 based on contractual pricing. 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 in, but not control of, an alliance, the Company uses the equity method 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 $45 million and $46 million for the three months ended June 30, 2023 and 2022, respectively, and $91 million and $93 million for the six months ended June 30, 2023 and 2022, 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 contracts with merchants 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, which governs the Company’s provision of transaction processing services to the alliance. The Company had approximately $36 million and $43 million of amounts due from unconsolidated merchant alliances included within trade accounts receivable, net in the Company’s consolidated balance sheets at June 30, 2023 and December 31, 2022, respectively. 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 totaled $1 million and $5 million during the three months ended June 30, 2023 and 2022, respectively, and $2 million and $9 million during the six months ended June 30, 2023 and 2022, respectively, and were primarily recognized as processing and services revenue in the consolidated statements of income. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
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 merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Clover ® , the Company’s cloud-based POS and integrated commerce operating system for small and mid-sized businesses and independent software vendors; and Carat SM , the Company’s integrated operating system for large businesses. 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 and public sector 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, certain assets or investments, costs associated with acquisition and divestiture activity, certain transition services revenue associated with various dispositions, and the Company’s Output Solutions postage reimbursements. Operating results for each segment were as follows: Reportable Segments (In millions) Acceptance Fintech Payments Corporate Total Three Months Ended June 30, 2023 Processing and services revenue $ 1,808 $ 742 $ 1,367 $ 7 $ 3,924 Product revenue 257 42 278 255 832 Total revenue $ 2,065 $ 784 $ 1,645 $ 262 $ 4,756 Operating income (loss) $ 718 $ 285 $ 777 $ (649) $ 1,131 Three Months Ended June 30, 2022 Processing and services revenue $ 1,668 $ 760 $ 1,262 $ 6 $ 3,696 Product revenue 233 43 256 222 754 Total revenue $ 1,901 $ 803 $ 1,518 $ 228 $ 4,450 Operating income (loss) $ 593 $ 281 $ 662 $ (676) $ 860 Six Months Ended June 30, 2023 Processing and services revenue $ 3,395 $ 1,493 $ 2,696 $ 13 $ 7,597 Product revenue 517 83 578 528 1,706 Total revenue $ 3,912 $ 1,576 $ 3,274 $ 541 $ 9,303 Operating income (loss) $ 1,280 $ 565 $ 1,488 $ (1,268) $ 2,065 Six Months Ended June 30, 2022 Processing and services revenue $ 3,078 $ 1,495 $ 2,477 $ 10 $ 7,060 Product revenue 476 86 503 463 1,528 Total revenue $ 3,554 $ 1,581 $ 2,980 $ 473 $ 8,588 Operating income (loss) $ 1,063 $ 556 $ 1,280 $ (1,193) $ 1,706 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 683 | $ 598 | $ 1,246 | $ 1,267 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a majority 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 (loss) 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 significant influence. |
Use of Estimates | 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. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents consist of cash and investments with original maturities of 90 days or less and 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 | Allowance for Doubtful AccountsThe Company analyzes the collectability of trade accounts receivable by considering historical bad debts and issued client credits, 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. |
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, processors, merchants and consumers, and collateral amounts held to manage merchant credit risk, primarily associated with the Company’s merchant acquiring services. As a processor, the Company facilitates the clearing and settlement activity for the merchant and records settlement assets and obligations upon processing a payment transaction. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners, merchants or direct consumers. Settlement obligations represent amounts payable to merchants and payees. Certain merchant settlement assets (included within settlement receivables) that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership, but which the Company has the right to use, 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. |
Allowance for Merchant Credit Losses | 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 a 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 mitigate this risk. 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 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 $22 million and $20 million for the three months ended June 30, 2023 and 2022, respectively, and $37 million and $28 million for the six months ended June 30, 2023 and 2022, respectively. |
Goodwill | 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. The Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2022 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 or currency exchange rate environments; a shift in strategic initiatives; a deterioration in financial performance within a particular reporting unit; or significant changes in the composition of, or assumptions used in, the quantitative test on certain of the Company’s reporting units (such as an increase in risk-adjusted discount rates) |
Other Equity Investments | Other Equity Investments The Company maintains investments, of which it does not have significant influence, in various equity securities without a readily determinable fair value. Such investments totaled $138 million and $135 million at June 30, 2023 and December 31, 2022, 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 expense, net in the consolidated statements of income for the period. Adjustments made to the values recorded for certain equity securities and gains and losses from sales of equity securities during the three and six months ended June 30, 2023 and 2022, were not significant. |
Foreign Currency | 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. Financial statements of subsidiaries located in highly inflationary economies outside of the U.S. are remeasured into U.S. dollars, and the foreign currency gains and losses from the remeasurement of monetary assets and liabilities are reflected in the consolidated statements of income, rather than as foreign currency translation within accumulated other comprehensive loss in the consolidated balance sheets. The remeasurement of monetary assets and liabilities in highly inflationary economies, primarily Argentina, resulted in foreign currency exchange losses of $32 million and $12 million for the three months ended June 30, 2023 and 2022, respectively, and $50 million and $17 million for the six months ended June 30, 2023 and 2022, respectively, which is included within other expense, net within the consolidated statements of income. 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 fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries. 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 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. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a net investment hedge, changes in the fair value of the derivative, net of tax, are recorded in the foreign currency translation component of other comprehensive income (loss) until the sale or complete liquidation of the underlying net investment. If the derivative is designated as a fair value hedge, changes in the fair value of the derivative are recorded in the same line item as the changes in the fair value of the hedged item and recognized in the consolidated statements of income. To the extent a derivative is not designated as a hedge, changes in fair value are recognized in the consolidated statements of income. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. |
Interest Expense, Net | Interest Expense, NetInterest 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which among other items, requires that entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. For public entities, the provisions within ASU 2022-02 are to be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2022-02 effective January 1, 2023, and the adoption did not have a material impact on the Company’s financial statement disclosures for the six months ended June 30, 2023. In 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820) : Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”), which clarifies the guidance in Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“Topic 820”), when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with ASC Topic 820. For public entities, ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The provisions within ASU 2022-03 are to be applied prospectively with any adjustments from the adoption |
Revenue Recognition | Revenue RecognitionThe 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.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. The Company applies the optional exemption under ASC Topic 606, Revenue from Contracts with Customers (“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. |
Fair Value Measurements | Fair Value MeasurementsThe fair values of cash equivalents, trade accounts receivable, other current assets, 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 maintains forward exchange contracts, certain of which are designated as cash flow hedges, to hedge foreign currency exposure. The Company also maintains cross-currency rate swap contracts designated as: (i) net investment hedges, to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro (see Note 12) and (ii) a fair value hedge of the spot foreign exchange rate risk on the principal amount of its British Pound-denominated 2.250% senior notes due in July 2025. These 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. Contingent consideration related to certain of the Company’s acquisitions (see Note 4) is estimated using the present value of a probability-weighted assessment approach based on 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. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
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: (In millions) June 30, 2023 December 31, 2022 June 30, 2022 Cash and cash equivalents on the consolidated balance sheets $ 1,082 $ 902 $ 883 Cash and cash equivalents included in settlement assets 1,768 2,283 2,172 Other restricted cash 6 7 8 Total cash and cash equivalents on the consolidated statements of cash flows $ 2,856 $ 3,192 $ 3,063 |
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: (In millions) June 30, 2023 December 31, 2022 June 30, 2022 Cash and cash equivalents on the consolidated balance sheets $ 1,082 $ 902 $ 883 Cash and cash equivalents included in settlement assets 1,768 2,283 2,172 Other restricted cash 6 7 8 Total cash and cash equivalents on the consolidated statements of cash flows $ 2,856 $ 3,192 $ 3,063 |
Schedule of interest expense, net | Interest expense, net consisted of the following: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Interest expense $ (237) $ (178) $ (447) $ (349) Interest income 5 2 13 5 Interest expense, net $ (232) $ (176) $ (434) $ (344) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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% of total revenue for each of the three and six months ended June 30, 2023 and 2022. (In millions) Reportable Segments Type of Revenue Acceptance Fintech Payments Corporate Total Three Months Ended June 30, 2023 Processing $ 1,772 $ 414 $ 1,213 $ 7 $ 3,406 Hardware, print and card production 241 11 269 — 521 Professional services 6 117 68 — 191 Software maintenance — 138 13 — 151 License and termination fees 11 46 44 — 101 Output Solutions postage — — — 255 255 Other 35 58 38 — 131 Total Revenue $ 2,065 $ 784 $ 1,645 $ 262 $ 4,756 Three Months Ended June 30, 2022 Processing $ 1,660 $ 398 $ 1,155 $ 6 $ 3,219 Hardware, print and card production 215 10 237 — 462 Professional services 5 131 67 — 203 Software maintenance — 139 5 — 144 License and termination fees 14 68 34 — 116 Output Solutions postage — — — 222 222 Other 7 57 20 — 84 Total Revenue $ 1,901 $ 803 $ 1,518 $ 228 $ 4,450 (In millions) Reportable Segments Type of Revenue Acceptance Fintech Payments Corporate Total Six Months Ended June 30, 2023 Processing $ 3,326 $ 830 $ 2,400 $ 13 $ 6,569 Hardware, print and card production 487 23 556 — 1,066 Professional services 10 229 148 — 387 Software maintenance — 275 19 — 294 License and termination fees 21 99 73 — 193 Output Solutions postage — — — 528 528 Other 68 120 78 — 266 Total Revenue $ 3,912 $ 1,576 $ 3,274 $ 541 $ 9,303 Six Months Ended June 30, 2022 Processing $ 3,063 $ 803 $ 2,268 $ 12 $ 6,146 Hardware, print and card production 440 19 473 — 932 Professional services 10 247 129 — 386 Software maintenance — 277 11 — 288 License and termination fees 28 116 60 — 204 Output Solutions postage — — — 461 461 Other 13 119 39 — 171 Total Revenue $ 3,554 $ 1,581 $ 2,980 $ 473 $ 8,588 |
Contract with customer, asset and liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers: (In millions) June 30, 2023 December 31, 2022 Contract assets $ 593 $ 551 Contract liabilities 918 860 |
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 June 30, 2023: (In millions) Year Ending December 31, Remainder of 2023 $ 1,170 2024 2,104 2025 1,664 2026 1,106 Thereafter 1,500 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of gross carrying amount 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 Residual buyouts $ 83 9 years Customer relationships 35 10 years Total $ 118 9 years (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 90 6 years Trade name 9 5 years Customer relationships 6 8 years Total $ 105 6 years The amounts allocated to identifiable intangible assets for other acquisitions acquired in 2022 were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 12 7 years Customer relationships 11 10 years Total $ 23 9 years |
Schedule of purchase price allocation | The allocation of purchase price recorded for Finxact was finalized in the fourth quarter of 2022 as follows: (In millions) Cash $ 27 Other net assets 1 Intangible assets 105 Goodwill 670 Total consideration $ 803 Less: Fair value of previously held equity interest (131) Total purchase price $ 672 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets by class | Identifiable intangible assets consisted of the following: (In millions) Gross Accumulated Net Book June 30, 2023 Customer relationships $ 14,703 $ 7,035 $ 7,668 Acquired software and technology 2,365 1,244 1,121 Trade names 636 326 310 Purchased software 1,223 619 604 Capitalized software and other intangibles 3,008 932 2,076 Total $ 21,935 $ 10,156 $ 11,779 December 31, 2022 Customer relationships $ 14,795 $ 6,371 $ 8,424 Acquired software and technology 2,510 1,234 1,276 Trade names 633 295 338 Purchased software 1,146 595 551 Capitalized software and other intangibles 2,601 775 1,826 Total $ 21,685 $ 9,270 $ 12,415 |
Schedule of amortization expense of intangible assets | Amortization expense associated with the above identifiable intangible assets was as follows: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Amortization expense $ 614 $ 622 $ 1,209 $ 1,246 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | Assets and liabilities measured at fair value on a recurring basis consisted of the following: Fair Value (In millions) Classification Fair Value Hierarchy June 30, December 31, Assets Forward exchange contract not designated as a hedge Prepaid expenses and other current assets Level 2 $ 6 $ — Forward exchange contracts designated as cash flow hedges Prepaid expenses and other current assets Level 2 3 — Forward exchange contracts designated as cash flow hedges Other long-term assets Level 2 1 — Liabilities Cross-currency rate swap contract designated as fair value hedge Other long-term liabilities Level 2 $ 9 $ — Forward exchange contracts designated as cash flow hedges Accounts payable and accrued expenses Level 2 — 7 Forward exchange contracts designated as cash flow hedges Other long-term liabilities Level 2 — 1 Cross-currency rate swap contracts designated as net investment hedges Other long-term liabilities Level 2 32 23 Contingent consideration Accounts payable and accrued expenses Level 3 6 6 Contingent consideration Other long-term liabilities Level 3 2 2 Contingent debt guarantee Other long-term liabilities Level 3 21 21 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following: (In millions) June 30, 2023 December 31, 2022 Trade accounts payable $ 412 $ 652 Client deposits 898 871 Accrued compensation and benefits 247 279 Accrued taxes 103 432 Accrued interest 275 216 Accrued payment network fees 216 219 Operating lease liabilities 118 124 Accrued professional fees 116 108 Other accrued expenses 974 982 Total $ 3,359 $ 3,883 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt, net of discounts and debt issuance costs | The Company’s debt consisted of the following: (In millions) June 30, 2023 December 31, 2022 Short-term and current maturities of long-term debt: Foreign lines of credit $ 362 $ 198 Finance lease and other financing obligations 246 270 Total short-term and current maturities of long-term debt $ 608 $ 468 Long-term debt: 0.375% senior notes due July 2023 (Euro-denominated) $ 546 $ 531 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) 664 632 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) 546 531 5.450% senior notes due March 2028 900 — 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) 546 531 4.500% senior notes due May 2031 (Euro-denominated) 873 — 3.000% senior notes due July 2031 (British Pound-denominated) 664 632 5.600% senior notes due March 2033 900 — 4.400% senior notes due July 2049 2,000 2,000 U.S. dollar commercial paper notes 1,292 2,329 Euro commercial paper notes 1,285 1,210 Revolving credit facility 32 35 Term loan facility — 200 Unamortized discount and deferred financing costs (129) (120) Finance lease and other financing obligations 576 539 Total long-term debt $ 22,595 $ 20,950 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of redeemable noncontrolling interests activity | The following table presents a summary of the redeemable noncontrolling interests activity during the six months ended June 30: (In millions) 2023 2022 Balance at beginning of period $ 161 $ 278 Distributions paid to redeemable noncontrolling interests (13) (21) Share of income 13 15 Derecognition of redeemable noncontrolling interest — (111) Balance at end of period $ 161 $ 161 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of stockholders equity | The following tables provide changes in equity during the three and six months ended June 30, 2023 and 2022: Fiserv, Inc. Shareholders’ Equity Three Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Noncontrolling Interests Total Equity Balance at March 31, 2023 784 165 $ 8 $ 22,946 $ (1,054) $ 17,939 $ (9,762) $ 717 $ 30,794 Net income (1) 683 6 689 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive income 154 3 157 Share-based compensation 106 106 Shares issued under stock plans (1) (64) 45 (19) Purchases of treasury stock 9 (1,010) (1,010) Balance at June 30, 2023 784 173 $ 8 $ 22,988 $ (900) $ 18,622 $ (10,727) $ 725 $ 30,716 (1) The total net income presented in equity for the three months ended June 30, 2023 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $6 million not included in equity. (2) The total distributions presented in equity for the three months ended June 30, 2023 excludes $5 million in distributions paid to redeemable noncontrolling interests not included in equity. Fiserv, Inc. Shareholders’ Equity Three Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Total Equity Noncontrolling Interests Balance at March 31, 2022 784 137 $ 8 $ 22,950 $ (640) $ 15,515 $ (6,561) $ 706 $ 31,978 Net income (1) 598 6 604 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive loss (365) (24) (389) Share-based compensation 94 94 Shares issued under stock plans (1) (34) 44 10 Purchases of treasury stock 5 (500) (500) Capital contribution from noncontrolling interest 13 13 Balance at June 30, 2022 784 141 $ 8 $ 23,010 $ (1,005) $ 16,113 $ (7,017) $ 700 $ 31,809 (1) The total net income presented in equity for the three months ended June 30, 2022 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $5 million not included in equity. (2) The total distributions presented in equity for the three months ended June 30, 2022 excludes $8 million in distributions paid to redeemable noncontrolling interests not included in equity. Fiserv, Inc. Shareholders’ Equity Six Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Noncontrolling Interests Total Equity Balance at December 31, 2022 784 154 $ 8 $ 23,011 $ (1,189) $ 17,376 $ (8,378) $ 699 $ 31,527 Net income (1) 1,246 12 1,258 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive income 289 15 304 Share-based compensation 199 199 Shares issued under stock plans (3) (222) 144 (78) Purchases of treasury stock 22 (2,493) (2,493) Balance at June 30, 2023 784 173 $ 8 $ 22,988 $ (900) $ 18,622 $ (10,727) $ 725 $ 30,716 (1) The total net income presented in equity for the six months ended June 30, 2023 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $13 million not included in equity. (2) The total distributions presented in equity for the six months ended June 30, 2023 excludes $13 million in distributions paid to redeemable noncontrolling interests not included in equity. Fiserv, Inc. Shareholders’ Equity Six Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Total Equity Noncontrolling Interests Balance at December 31, 2021 784 134 $ 8 $ 22,983 $ (745) $ 14,846 $ (6,140) $ 720 $ 31,672 Net income (1) 1,267 9 1,276 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive loss (260) (41) (301) Share-based compensation 155 155 Shares issued under stock plans (3) (128) 123 (5) Purchases of treasury stock 10 (1,000) (1,000) Capital contribution from noncontrolling interest 13 13 Balance at June 30, 2022 784 141 $ 8 $ 23,010 $ (1,005) $ 16,113 $ (7,017) $ 700 $ 31,809 (1) The total net income presented in equity for the six months ended June 30, 2022 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $15 million not included in equity. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive loss by component, net of income taxes | Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: (In millions) Derivatives Foreign Pension Plans Total Three Months Ended June 30, 2023 Balance at March 31, 2023 $ (95) $ (939) $ (20) $ (1,054) Other comprehensive income before reclassifications 1 150 — 151 Amounts reclassified from accumulated other comprehensive loss 3 — — 3 Net current-period other comprehensive income 4 150 — 154 Balance at June 30, 2023 $ (91) $ (789) $ (20) $ (900) Three Months Ended June 30, 2022 Balance at March 31, 2022 $ (105) $ (572) $ 37 $ (640) Other comprehensive loss before reclassifications (6) (361) (2) (369) Amounts reclassified from accumulated other comprehensive loss 4 — — 4 Net current-period other comprehensive loss (2) (361) (2) (365) Balance at June 30, 2022 $ (107) $ (933) $ 35 $ (1,005) Six Months Ended June 30, 2023 Balance at December 31, 2022 $ (103) $ (1,064) $ (22) $ (1,189) Other comprehensive income before reclassifications 6 275 2 283 Amounts reclassified from accumulated other comprehensive loss 6 — — 6 Net current-period other comprehensive income 12 275 2 289 Balance at June 30, 2023 $ (91) $ (789) $ (20) $ (900) Six Months Ended June 30, 2022 Balance at December 31, 2021 $ (107) $ (676) $ 38 $ (745) Other comprehensive loss before reclassifications (7) (257) (3) (267) Amounts reclassified from accumulated other comprehensive loss 7 — — 7 Net current-period other comprehensive loss — (257) (3) (260) Balance at June 30, 2022 $ (107) $ (933) $ 35 $ (1,005) |
Disclosure of derivative terms | The following table outlines the terms of the Company’s Euro cross-currency rate swap contracts at June 30, 2023: Effective Date of Contract Maturity Date of Contract Notional Amount (EUR) Fixed Rate Paid (EUR) Fixed Rate Received (USD) September 1, 2022 June 1, 2025 80 million 2.096 % 3.85 % September 15, 2022 July 1, 2026 80 million 1.635 % 3.20 % October 6, 2022 June 1, 2025 80 million 1.922 % 3.85 % October 27, 2022 July 1, 2026 80 million 1.458 % 3.20 % November 10, 2022 June 1, 2025 80 million 1.816 % 3.85 % |
Schedule of net investment hedges in accumulated other comprehensive income (loss) | Foreign currency transaction (losses) gains, net of income tax, related to net investment hedges that were recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income were as follows: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Cross-currency rate swap contracts $ (5) $ — $ (7) $ — Foreign currency-denominated debt (50) 181 (114) 248 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of restricted stock and performance activity | A summary of restricted stock unit, restricted stock award and performance share unit activity during the six months ended June 30, 2023 is as follows: Restricted Stock Units and Awards Performance Share Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Units and awards - December 31, 2022 5,530 $ 96.88 3,243 $ 100.93 Granted 2,423 112.99 359 129.68 Forfeited (239) 100.60 (47) 101.00 Vested (1,983) 98.73 (18) 95.29 Units and awards - June 30, 2023 5,731 $ 102.88 3,537 $ 103.66 |
Summary of stock option activity | A summary of stock option activity during the six months ended June 30, 2023 is as follows: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Stock options outstanding - December 31, 2022 6,336 $ 62.91 Granted — — Forfeited (32) 112.83 Exercised (1,903) 44.02 Stock options outstanding - June 30, 2023 4,401 $ 70.72 4.10 $ 244 Stock options exercisable - June 30, 2023 4,046 $ 67.10 3.84 $ 239 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision and effective income tax rate | The Company’s income tax provision and effective income tax rate were as follows: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Income tax provision $ 181 $ 137 $ 305 $ 235 Effective income tax rate 20.7 % 22.2 % 19.2 % 18.2 % |
Shares Used in Computing Net _2
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of shares used in calculating basic and diluted net income per common share | The computation of shares used in calculating basic and diluted net income per share is as follows: Three Months Ended Six Months Ended (In millions) 2023 2022 2023 2022 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic 615.4 645.2 621.2 648.0 Common stock equivalents 3.8 5.6 4.1 6.0 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted 619.2 650.8 625.3 654.0 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Supplemental cash flow information consisted of the following: Six Months Ended (In millions) 2023 2022 Interest paid $ 369 $ 303 Income taxes paid 882 399 Treasury stock purchases settled after the balance sheet date 3 — Distribution of nonmonetary assets (see Note 10) — 111 Software obtained under financing arrangements 122 61 Right-of-use assets obtained in exchange for lease liabilities - operating leases 59 98 Right-of-use assets obtained in exchange for lease liabilities - finance leases 93 69 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Operating results for each segment were as follows: Reportable Segments (In millions) Acceptance Fintech Payments Corporate Total Three Months Ended June 30, 2023 Processing and services revenue $ 1,808 $ 742 $ 1,367 $ 7 $ 3,924 Product revenue 257 42 278 255 832 Total revenue $ 2,065 $ 784 $ 1,645 $ 262 $ 4,756 Operating income (loss) $ 718 $ 285 $ 777 $ (649) $ 1,131 Three Months Ended June 30, 2022 Processing and services revenue $ 1,668 $ 760 $ 1,262 $ 6 $ 3,696 Product revenue 233 43 256 222 754 Total revenue $ 1,901 $ 803 $ 1,518 $ 228 $ 4,450 Operating income (loss) $ 593 $ 281 $ 662 $ (676) $ 860 Six Months Ended June 30, 2023 Processing and services revenue $ 3,395 $ 1,493 $ 2,696 $ 13 $ 7,597 Product revenue 517 83 578 528 1,706 Total revenue $ 3,912 $ 1,576 $ 3,274 $ 541 $ 9,303 Operating income (loss) $ 1,280 $ 565 $ 1,488 $ (1,268) $ 2,065 Six Months Ended June 30, 2022 Processing and services revenue $ 3,078 $ 1,495 $ 2,477 $ 10 $ 7,060 Product revenue 476 86 503 463 1,528 Total revenue $ 3,554 $ 1,581 $ 2,980 $ 473 $ 8,588 Operating income (loss) $ 1,063 $ 556 $ 1,280 $ (1,193) $ 1,706 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Allowance for doubtful accounts | $ 66,000,000 | $ 66,000,000 | $ 52,000,000 | ||
Prepaid expenses | 506,000,000 | 506,000,000 | 431,000,000 | ||
Other current assets | 1,570,000,000 | 1,570,000,000 | 1,144,000,000 | ||
Accumulated impairment loss | 0 | 0 | |||
Equity securities without a readily determinable fair value | 138,000,000 | 138,000,000 | 135,000,000 | ||
Foreign currency translation loss | 32,000,000 | $ 12,000,000 | 50,000,000 | $ 17,000,000 | |
Merchants Utilizing Clover Capital Cash Advance Program | |||||
Business Acquisition [Line Items] | |||||
Receivable, before allowance for credit loss, current | 199,000,000 | 199,000,000 | 164,000,000 | ||
Allowance for credit loss, current | 8,000,000 | 8,000,000 | 7,000,000 | ||
Foreign Banks and Alliance Partners | |||||
Business Acquisition [Line Items] | |||||
Receivable, before allowance for credit loss, current | 504,000,000 | 504,000,000 | 264,000,000 | ||
Merchant credit losses | |||||
Business Acquisition [Line Items] | |||||
Aggregate merchant credit loss expense | 22,000,000 | $ 20,000,000 | 37,000,000 | $ 28,000,000 | |
Collateral held | 1,100,000,000 | 1,100,000,000 | 1,500,000,000 | ||
Loss contingency accrual | $ 34,000,000 | $ 34,000,000 | $ 29,000,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents on the consolidated balance sheets | $ 1,082 | $ 902 | $ 883 |
Cash and cash equivalents included in settlement assets | 1,768 | 2,283 | 2,172 |
Other restricted cash | 6 | 7 | 8 |
Total cash and cash equivalents on the consolidated statements of cash flows | $ 2,856 | $ 3,192 | $ 3,063 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Interest expense | $ (237) | $ (178) | $ (447) | $ (349) |
Interest income | 5 | 2 | 13 | 5 |
Interest expense, net | $ (232) | $ (176) | $ (434) | $ (344) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,756 | $ 4,450 | $ 9,303 | $ 8,588 |
Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,065 | 1,901 | 3,912 | 3,554 |
Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 784 | 803 | 1,576 | 1,581 |
Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,645 | 1,518 | 3,274 | 2,980 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 262 | $ 228 | $ 541 | $ 473 |
Geographic Concentration Risk | Non-US | Revenue from Contract with Customer Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of concentration risk | 14% | 14% | 14% | 14% |
Processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,406 | $ 3,219 | $ 6,569 | $ 6,146 |
Processing | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,772 | 1,660 | 3,326 | 3,063 |
Processing | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 414 | 398 | 830 | 803 |
Processing | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,213 | 1,155 | 2,400 | 2,268 |
Processing | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7 | 6 | 13 | 12 |
Hardware, print and card production | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 521 | 462 | 1,066 | 932 |
Hardware, print and card production | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 241 | 215 | 487 | 440 |
Hardware, print and card production | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11 | 10 | 23 | 19 |
Hardware, print and card production | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 269 | 237 | 556 | 473 |
Hardware, print and card production | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 191 | 203 | 387 | 386 |
Professional services | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6 | 5 | 10 | 10 |
Professional services | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 117 | 131 | 229 | 247 |
Professional services | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 68 | 67 | 148 | 129 |
Professional services | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Software maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 151 | 144 | 294 | 288 |
Software maintenance | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Software maintenance | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 138 | 139 | 275 | 277 |
Software maintenance | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13 | 5 | 19 | 11 |
Software maintenance | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
License and termination fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 101 | 116 | 193 | 204 |
License and termination fees | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11 | 14 | 21 | 28 |
License and termination fees | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 46 | 68 | 99 | 116 |
License and termination fees | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44 | 34 | 73 | 60 |
License and termination fees | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Output Solutions postage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 255 | 222 | 528 | 461 |
Output Solutions postage | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Output Solutions postage | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Output Solutions postage | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Output Solutions postage | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 255 | 222 | 528 | 461 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 131 | 84 | 266 | 171 |
Other | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 35 | 7 | 68 | 13 |
Other | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 58 | 57 | 120 | 119 |
Other | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 38 | 20 | 78 | 39 |
Other | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 593 | $ 551 |
Contract liabilities | $ 918 | $ 860 |
Revenue Recognition - Revenue R
Revenue Recognition - Revenue Recognized (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized which was included in the contract liability balance | $ 405 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,170 |
Performance obligations expected to be satisfied, expected timing | 6 months |
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 | $ 2,104 |
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 | $ 1,664 |
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 | $ 1,106 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,500 |
Performance obligations expected to be satisfied, expected timing |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||
Jul. 25, 2023 | Dec. 20, 2022 | Oct. 17, 2022 | Sep. 30, 2022 | Apr. 01, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||||||||||
Payments for acquisition of businesses, net of cash acquired | $ 0 | $ 668 | ||||||||||
Goodwill | $ 37,109 | 37,109 | $ 36,811 | |||||||||
Tax expense | 181 | $ 137 | 305 | 235 | ||||||||
Part noncash divestiture, amount of consideration received | 0 | $ 111 | ||||||||||
Disposal Group, Disposed of by Sale | Financial Reconciliation Business | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Disposal group, current assets | 70 | 70 | ||||||||||
Disposal group, current liabilities | $ 15 | 15 | ||||||||||
Disposal Group, Disposed of by Sale | Financial Reconciliation Business | Forecast | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Gain (loss) on disposition of business | $ 160 | |||||||||||
Disposal Group, Disposed of by Sale | Financial Reconciliation Business | Subsequent Event | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net proceeds from sale of businesses and other assets | $ 230 | |||||||||||
Disposal Group, Disposed of by Sale | Fiserv Costa Rica, S.A. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Gain (loss) on disposition of business | $ 44 | (3) | ||||||||||
Consideration from sale of business | 49 | |||||||||||
Tax expense | $ 8 | |||||||||||
Disposal Group, Disposed of by Sale | Korea Operations | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net proceeds from sale of businesses and other assets | $ 43 | |||||||||||
Gain (loss) on disposition of business | (127) | |||||||||||
Consideration from sale of business | 50 | |||||||||||
Part noncash divestiture, amount of consideration received | 7 | |||||||||||
Disposal group, including discontinued operation, goodwill | 40 | |||||||||||
Disposal group, including discontinued operation, intangible assets | 48 | |||||||||||
Disposal group, including discontinued operation, accumulated foreign currency translation loss | $ 56 | |||||||||||
Merchant One, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments for acquisition of businesses, net of cash acquired | $ 302 | |||||||||||
Acquired cash | 1 | |||||||||||
Increase (decrease) in goodwill | $ 61 | |||||||||||
Intangible assets | 118 | |||||||||||
Goodwill | 179 | |||||||||||
Other net assets | $ 6 | |||||||||||
Finxact, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 105 | |||||||||||
Goodwill | 670 | |||||||||||
Other net assets | 1 | |||||||||||
Payments for acquisitions of businesses | $ 645 | |||||||||||
Pre-tax gain from remeasurement | $ 110 | |||||||||||
Other Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 23 | |||||||||||
Goodwill | 22 | |||||||||||
Payments for acquisitions of businesses | 44 | |||||||||||
Earn-out provisions estimated fair value | 6 | |||||||||||
Other net assumed liabilities | (1) | |||||||||||
Goodwill, expected tax deductible amount | $ 17 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Jun. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 37,109 | $ 36,811 | |
Finxact, Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 27 | ||
Other net assets | 1 | ||
Intangible assets | 105 | ||
Goodwill | 670 | ||
Total consideration | 803 | ||
Less: Fair value of previously held equity interest | (131) | ||
Total purchase price | $ 672 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Gross Carrying Amount and Weighted-Average Useful Life Allocated to Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 20, 2022 | Apr. 01, 2022 | Sep. 01, 2022 | |
Merchant One, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 118 | ||
Weighted-Average Useful Life | 9 years | ||
Merchant One, Inc. | Residual buyouts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 83 | ||
Weighted-Average Useful Life | 9 years | ||
Merchant One, Inc. | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 35 | ||
Weighted-Average Useful Life | 10 years | ||
Finxact, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 105 | ||
Weighted-Average Useful Life | 6 years | ||
Finxact, Inc. | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 6 | ||
Weighted-Average Useful Life | 8 years | ||
Finxact, Inc. | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 90 | ||
Weighted-Average Useful Life | 6 years | ||
Finxact, Inc. | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 9 | ||
Weighted-Average Useful Life | 5 years | ||
Other Acquisitions | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 23 | ||
Weighted-Average Useful Life | 9 years | ||
Other Acquisitions | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 11 | ||
Weighted-Average Useful Life | 10 years | ||
Other Acquisitions | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 12 | ||
Weighted-Average Useful Life | 7 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets by Class (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,935 | $ 21,685 |
Accumulated Amortization | 10,156 | 9,270 |
Net Book Value | 11,779 | 12,415 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,703 | 14,795 |
Accumulated Amortization | 7,035 | 6,371 |
Net Book Value | 7,668 | 8,424 |
Acquired software and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,365 | 2,510 |
Accumulated Amortization | 1,244 | 1,234 |
Net Book Value | 1,121 | 1,276 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 636 | 633 |
Accumulated Amortization | 326 | 295 |
Net Book Value | 310 | 338 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,223 | 1,146 |
Accumulated Amortization | 619 | 595 |
Net Book Value | 604 | 551 |
Capitalized software and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,008 | 2,601 |
Accumulated Amortization | 932 | 775 |
Net Book Value | $ 2,076 | $ 1,826 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 614 | $ 622 | $ 1,209 | $ 1,246 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments in and Advances to Affiliates [Line Items] | ||||
(Loss) income from investments in unconsolidated affiliates | $ 3,000,000 | $ 128,000,000 | $ (9,000,000) | $ 234,000,000 |
Tax expense | 181,000,000 | $ 137,000,000 | 305,000,000 | 235,000,000 |
Term loan facility | Variable-Rate Term Loan Facilities Due March 2023 | Line of Credit | Lending Joint Ventures | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Maximum borrowing capacity | 437,000,000 | 437,000,000 | ||
Long-term debt | 33,000,000 | 33,000,000 | ||
Revolving Credit Facility | Line of Credit | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Maximum borrowing capacity | 6,000,000,000 | 6,000,000,000 | ||
Revolving Credit Facility | Variable-Rate Revolving Credit Facilities Due March 2023 | Line of Credit | Lending Joint Ventures | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Maximum borrowing capacity | $ 83,000,000 | $ 83,000,000 | ||
defi SOLUTIONS Group | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
(Loss) income from investments in unconsolidated affiliates | 80,000,000 | |||
Tax expense | $ 19,000,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
2.250% senior notes due July 2025 (British Pound-denominated) | Senior Notes | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Debt instrument, interest rate | 2.25% | 2.25% | ||||
Revolving Credit Facility | Variable-Rate Revolving Credit Facilities Due March 2023 | Line of Credit | Lending Joint Ventures | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Line of credit facility, borrowing capacity increase | $ 75,000,000 | |||||
Carrying value | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Total debt | $ 22,400,000,000 | $ 22,400,000,000 | $ 20,600,000,000 | |||
Level 2 | Fair value | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Total debt | 21,100,000,000 | 21,100,000,000 | 19,200,000,000 | |||
Financial Guarantee | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Carrying value of non-contingent liability | 520,000,000 | 520,000,000 | ||||
Financial Guarantee | Lending Joint Ventures | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Carrying value of non-contingent liability | 36,000,000 | 36,000,000 | $ 40,000,000 | |||
Other (expense) income | $ 3,000,000 | $ 3,000,000 | $ 5,000,000 | $ 6,000,000 |
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Level 2 | Fair Value Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swap contract | $ 9 | $ 0 |
Level 2 | Net Investment Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swap contract | 32 | 23 |
Level 2 | Prepaid expenses and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward exchange contract not designated as a hedge | 6 | 0 |
Forward exchange contracts designated as cash flow hedges | 3 | 0 |
Level 2 | Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward exchange contracts designated as cash flow hedges | 1 | 0 |
Level 2 | Accounts payable and accrued expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward exchange contracts designated as cash flow hedges | 0 | 7 |
Level 2 | Other long-term liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward exchange contracts designated as cash flow hedges | 0 | 1 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 6 | 6 |
Contingent consideration | 2 | 2 |
Contingent debt guarantee | $ 21 | $ 21 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 412 | $ 652 |
Client deposits | 898 | 871 |
Accrued compensation and benefits | 247 | 279 |
Accrued taxes | 103 | 432 |
Accrued interest | 275 | 216 |
Accrued payment network fees | 216 | 219 |
Operating lease liabilities | 118 | 124 |
Accrued professional fees | 116 | 108 |
Other accrued expenses | 974 | 982 |
Total | $ 3,359 | $ 3,883 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | May 24, 2023 | Mar. 02, 2023 | Dec. 31, 2022 |
Short-term and current maturities of long-term debt: | ||||
Total short-term and current maturities of long-term debt | $ 608 | $ 468 | ||
Finance lease and other financing obligations | 246 | 270 | ||
Long-term debt: | ||||
Unamortized discount and deferred financing costs | (129) | (120) | ||
Finance lease and other financing obligations | 576 | 539 | ||
Total long-term debt | $ 22,595 | 20,950 | ||
Senior Notes | 0.375% senior notes due July 2023 (Euro-denominated) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 0.375% | 0.375% | ||
Long-term debt: | ||||
Long-term debt | $ 546 | 531 | ||
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 | $ 664 | 632 | ||
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 | $ 546 | 531 | ||
Senior Notes | 5.450% senior notes due March 2028 | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 0.00055% | 5.45% | ||
Long-term debt: | ||||
Long-term debt | $ 900 | 0 | ||
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 | $ 546 | 531 | ||
Senior Notes | 4.500% senior notes due May 2031 (Euro-denominated) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 0.00045% | 4.50% | ||
Long-term debt: | ||||
Long-term debt | $ 873 | 0 | ||
Senior Notes | 3.000% senior notes due July 2031 (British Pound-denominated) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3% | |||
Long-term debt: | ||||
Long-term debt | $ 664 | 632 | ||
Senior Notes | 5.600% senior notes due March 2033 | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 0.00056% | 5.60% | ||
Long-term debt: | ||||
Long-term debt | $ 900 | 0 | ||
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 | ||
Commercial Paper | U.S. dollar commercial paper notes | ||||
Long-term debt: | ||||
Long-term debt | 1,292 | 2,329 | ||
Commercial Paper | Euro commercial paper notes | ||||
Long-term debt: | ||||
Long-term debt | 1,285 | 1,210 | ||
Line of Credit | Revolving credit facility | ||||
Long-term debt: | ||||
Long-term debt | 32 | 35 | ||
Line of Credit | Term loan facility | ||||
Long-term debt: | ||||
Long-term debt | 0 | 200 | ||
Foreign lines of credit | ||||
Short-term and current maturities of long-term debt: | ||||
Total short-term and current maturities of long-term debt | $ 362 | $ 198 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 6 Months Ended | ||||
Apr. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | May 24, 2023 EUR (€) | Apr. 30, 2023 BRL (R$) | Mar. 02, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Foreign lines of credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 106,000,000 | R$ 514000000 | ||||
Weighted average interest rate | 52.831% | 30.578% | ||||
Foreign lines of credit | Certificado de Deposito Interbancario (CDI) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.70% | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 1,800,000,000 | |||||
Senior Notes | 4.500% senior notes due May 2031 (Euro-denominated) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | € | € 800,000,000 | |||||
Debt instrument, interest rate | 0.00045% | 4.50% | ||||
Outstanding borrowings | $ 873,000,000 | $ 0 | ||||
Senior Notes | 0.375% senior notes due July 2023 (Euro-denominated) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 0.375% | 0.375% | ||||
Outstanding borrowings | $ 546,000,000 | 531,000,000 | ||||
Senior Notes | 5.450% senior notes due March 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 900,000,000 | |||||
Debt instrument, interest rate | 0.00055% | 5.45% | ||||
Outstanding borrowings | $ 900,000,000 | 0 | ||||
Senior Notes | 5.600% senior notes due March 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 900,000,000 | |||||
Debt instrument, interest rate | 0.00056% | 5.60% | ||||
Outstanding borrowings | $ 900,000,000 | 0 | ||||
Commercial Paper | U.S. dollar commercial paper notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturities (in days) | 397 days | |||||
Outstanding borrowings | $ 1,292,000,000 | $ 2,329,000,000 | ||||
Weighted average interest rate | 5.337% | 4.818% | ||||
Commercial Paper | Euro commercial paper notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturities (in days) | 183 days | |||||
Outstanding borrowings | $ 1,285,000,000 | $ 1,210,000,000 | ||||
Weighted average interest rate | 3.467% | 1.918% | ||||
Revolving credit facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 32,000,000 | $ 35,000,000 | ||||
Maximum borrowing capacity | $ 6,000,000,000 | |||||
Line of credit facility, interest rate at period end | 6.19% | |||||
Term loan facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 0 | $ 200,000,000 | ||||
Line of credit facility, interest rate at period end | 5.639% |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) noncontrollingInterest | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) noncontrollingInterest | Jun. 30, 2022 USD ($) | |
Noncontrolling Interest [Line Items] | ||||
Net proceeds from sale of businesses and other assets | $ 0 | $ 175 | ||
Tax expense | $ 181 | $ 137 | $ 305 | 235 |
First Data Joint Venture | ||||
Noncontrolling Interest [Line Items] | ||||
Net proceeds from sale of businesses and other assets | 175 | |||
Pre-tax gain | 147 | |||
Tax expense | $ 9 | |||
First Data Joint Venture | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage by noncontrolling owner | 1% | 1% | ||
First Data | ||||
Noncontrolling Interest [Line Items] | ||||
Number of redeemable noncontrolling interests | noncontrollingInterest | 1 | 1 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interest Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at beginning of period | $ 161 | $ 278 | ||
Distributions paid to redeemable noncontrolling interests | $ (5) | $ (8) | (13) | (21) |
Share of income | 13 | 15 | ||
Derecognition of redeemable noncontrolling interest | 0 | (111) | ||
Balance at end of period | $ 161 | $ 161 | $ 161 | $ 161 |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period (in shares) | 154,000,000 | |||
Balance at beginning of period | $ 30,794 | $ 31,978 | $ 31,527 | $ 31,672 |
Net income (loss) | 689 | 604 | 1,258 | 1,276 |
Distributions paid to noncontrolling interests | (1) | (1) | (1) | (1) |
Other comprehensive income | 157 | (389) | 304 | (301) |
Share-based compensation | 106 | 94 | 199 | 155 |
Shares issued under stock plans | (19) | 10 | (78) | (5) |
Purchases of treasury stock | $ (1,010) | (500) | $ (2,493) | (1,000) |
Capital contribution from noncontrolling interest | 13 | 13 | ||
Balance at end of period (in shares) | 173,000,000 | 173,000,000 | ||
Balance at end of period | $ 30,716 | 31,809 | $ 30,716 | 31,809 |
Net income attributable to redeemable noncontrolling interest | 6 | 5 | 13 | 15 |
Distributions paid to redeemable noncontrolling interests | $ 5 | $ 8 | $ 13 | $ 21 |
Common Shares | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period (in shares) | 784,000,000 | 784,000,000 | 784,000,000 | 784,000,000 |
Balance at beginning of period | $ 8 | $ 8 | $ 8 | $ 8 |
Balance at end of period (in shares) | 784,000,000 | 784,000,000 | 784,000,000 | 784,000,000 |
Balance at end of period | $ 8 | $ 8 | $ 8 | $ 8 |
Treasury Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period (in shares) | 165,000,000 | 137,000,000 | 154,000,000 | 134,000,000 |
Balance at beginning of period | $ (9,762) | $ (6,561) | $ (8,378) | $ (6,140) |
Shares issued under stock plans (in shares) | (1,000,000) | (1,000,000) | (3,000,000) | (3,000,000) |
Shares issued under stock plans | $ 45 | $ 44 | $ 144 | $ 123 |
Purchases of treasury stock (in shares) | 9,000,000 | 5,000,000 | 22,000,000 | 10,000,000 |
Purchases of treasury stock | $ (1,010) | $ (500) | $ (2,493) | $ (1,000) |
Balance at end of period (in shares) | 173,000,000 | 141,000,000 | 173,000,000 | 141,000,000 |
Balance at end of period | $ (10,727) | $ (7,017) | $ (10,727) | $ (7,017) |
Additional Paid-In Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 22,946 | 22,950 | 23,011 | 22,983 |
Share-based compensation | 106 | 94 | 199 | 155 |
Shares issued under stock plans | (64) | (34) | (222) | (128) |
Balance at end of period | 22,988 | 23,010 | 22,988 | 23,010 |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | (1,054) | (640) | (1,189) | (745) |
Other comprehensive income | 154 | (365) | 289 | (260) |
Balance at end of period | (900) | (1,005) | (900) | (1,005) |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 17,939 | 15,515 | 17,376 | 14,846 |
Net income (loss) | 683 | 598 | 1,246 | 1,267 |
Balance at end of period | 18,622 | 16,113 | 18,622 | 16,113 |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 717 | 706 | 699 | 720 |
Net income (loss) | 6 | 6 | 12 | 9 |
Distributions paid to noncontrolling interests | (1) | (1) | (1) | (1) |
Other comprehensive income | 3 | (24) | 15 | (41) |
Capital contribution from noncontrolling interest | 13 | 13 | ||
Balance at end of period | $ 725 | $ 700 | $ 725 | $ 700 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 30,794 | $ 31,978 | $ 31,527 | $ 31,672 |
Total other comprehensive income (loss) | 157 | (389) | 304 | (301) |
Balance at end of period | 30,716 | 31,809 | 30,716 | 31,809 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (1,054) | (640) | (1,189) | (745) |
Other comprehensive income (loss) before reclassifications | 151 | (369) | 283 | (267) |
Amounts reclassified from accumulated other comprehensive loss | 3 | 4 | 6 | 7 |
Total other comprehensive income (loss) | 154 | (365) | 289 | (260) |
Balance at end of period | (900) | (1,005) | (900) | (1,005) |
Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (95) | (105) | (103) | (107) |
Other comprehensive income (loss) before reclassifications | 1 | (6) | 6 | (7) |
Amounts reclassified from accumulated other comprehensive loss | 3 | 4 | 6 | 7 |
Total other comprehensive income (loss) | 4 | (2) | 12 | 0 |
Balance at end of period | (91) | (107) | (91) | (107) |
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (939) | (572) | (1,064) | (676) |
Other comprehensive income (loss) before reclassifications | 150 | (361) | 275 | (257) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 150 | (361) | 275 | (257) |
Balance at end of period | (789) | (933) | (789) | (933) |
Pension Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (20) | 37 | (22) | 38 |
Other comprehensive income (loss) before reclassifications | 0 | (2) | 2 | (3) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0 | (2) | 2 | (3) |
Balance at end of period | $ (20) | $ 35 | $ (20) | $ 35 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 EUR (€) | May 24, 2023 | Dec. 31, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Estimate of gains (losses) related to foreign currency exchange contracts during the next 12 months | $ 3 | $ 3 | |||||
Accumulated other comprehensive loss | 900 | 900 | $ 1,189 | ||||
Estimated interest expense related to settled interest rate hedge contracts during the next twelve months | 15 | 15 | |||||
Foreign currency translation adjustment, tax | $ (18) | $ 61 | $ (40) | $ 83 | |||
0.375% senior notes due July 2023 (Euro-denominated) | Senior Notes | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Debt instrument, interest rate | 0.375% | 0.375% | 0.375% | 0.375% | |||
Net Investment Hedging | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Foreign currency translation adjustment, tax | $ 18 | $ (61) | $ 40 | $ (83) | |||
Foreign currency forward exchange contracts | Indian Rupee | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Notional amount of derivatives | 369 | 369 | 346 | ||||
Treasury Lock | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated other comprehensive loss | $ 123 | $ 123 | $ 130 | ||||
Cross-currency rate swap contracts | Euro Member Countries, Euro | Net Investment Hedging | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Notional amount of derivatives | € | € 400 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Disclosure of Derivative Terms (Details) - Net Investment Hedging € in Millions | Jun. 30, 2023 EUR (€) |
Cross Currency Interest Rate Contract 1 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 1 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 2.096% |
Cross Currency Interest Rate Contract 1 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.85% |
Cross Currency Interest Rate Contract 2 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 2 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 1.635% |
Cross Currency Interest Rate Contract 2 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.20% |
Cross Currency Interest Rate Contract 3 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 3 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 1.922% |
Cross Currency Interest Rate Contract 3 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.85% |
Cross Currency Interest Rate Contract 4 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 4 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 1.458% |
Cross Currency Interest Rate Contract 4 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.20% |
Cross Currency Interest Rate Contract 5 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 5 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 1.816% |
Cross Currency Interest Rate Contract 5 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.85% |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Loss - Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) (Details) - Net Investment Hedging - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cross-currency rate swap contracts | ||||
Derivative [Line Items] | ||||
Foreign currency transaction gains related to net investment hedges recorded in other comprehensive loss | $ (5) | $ 0 | $ (7) | $ 0 |
Foreign currency-denominated debt | ||||
Derivative [Line Items] | ||||
Foreign currency transaction gains related to net investment hedges recorded in other comprehensive loss | $ (50) | $ 181 | $ (114) | $ 248 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 106 | $ 94 | $ 199 | $ 155 |
Unrecognized compensation cost | $ 577 | $ 577 | ||
Weighted-average period unrecognized compensation cost will be recognized (in years) | 2 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Stock and Performance Activity (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Restricted Stock Units and Awards | |
Shares (In thousands) | |
Balance at beginning of period (in shares) | shares | 5,530 |
Granted (in shares) | shares | 2,423 |
Forfeited (in shares) | shares | (239) |
Vested (in shares) | shares | (1,983) |
Balance at end of period (in shares) | shares | 5,731 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 96.88 |
Granted (in dollars per share) | $ / shares | 112.99 |
Forfeited (in dollars per share) | $ / shares | 100.60 |
Vested (in dollars per share) | $ / shares | 98.73 |
Balance at end of period (in dollars per share) | $ / shares | $ 102.88 |
Performance Share Units | |
Shares (In thousands) | |
Balance at beginning of period (in shares) | shares | 3,243 |
Granted (in shares) | shares | 359 |
Forfeited (in shares) | shares | (47) |
Vested (in shares) | shares | (18) |
Balance at end of period (in shares) | shares | 3,537 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 100.93 |
Granted (in dollars per share) | $ / shares | 129.68 |
Forfeited (in dollars per share) | $ / shares | 101 |
Vested (in dollars per share) | $ / shares | 95.29 |
Balance at end of period (in dollars per share) | $ / shares | $ 103.66 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Shares | |
Stock options outstanding - balance at beginning of period (in shares) | shares | 6,336 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (32) |
Exercised (in shares) | shares | (1,903) |
Stock options outstanding - balance at end of period (in shares) | shares | 4,401 |
Stock options exercisable (in shares) | shares | 4,046 |
Weighted-Average Exercise Price | |
Stock options outstanding - balance at beginning of period (in dollars per shares) | $ / shares | $ 62.91 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 112.83 |
Exercised (in dollars per share) | $ / shares | 44.02 |
Stock options outstanding - balance at end of period (in dollars per shares) | $ / shares | 70.72 |
Stock options exercisable (in dollars per share) | $ / shares | $ 67.10 |
Weighted-Average Remaining Contractual Term (Years) | |
Stock options outstanding (in years) | 4 years 1 month 6 days |
Stock options exercisable (in years) | 3 years 10 months 2 days |
Aggregate Intrinsic Value (In millions) | |
Stock options outstanding | $ | $ 244 |
Stock options exercisable | $ | $ 239 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 181 | $ 137 | $ 305 | $ 235 |
Effective income tax rate | 20.70% | 22.20% | 19.20% | 18.20% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 20.70% | 22.20% | 19.20% | 18.20% |
Unrecognized tax benefits | $ 84 | $ 84 | ||
Decrease in unrecognized tax benefits reasonably possible | $ 7 | $ 7 |
Shares Used in Computing Net _3
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. - Schedule of Weighted-Average Number of Shares (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – basic (in shares) | 615.4 | 645.2 | 621.2 | 648 |
Common stock equivalents (in shares) | 3.8 | 5.6 | 4.1 | 6 |
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – diluted (in shares) | 619.2 | 650.8 | 625.3 | 654 |
Shares Used in Computing Net _4
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Stock options excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive (in shares) | 0.9 | 2.2 | 1 | 2.1 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 369 | $ 303 |
Income taxes paid | 882 | 399 |
Treasury stock purchases settled after the balance sheet date | 3 | 0 |
Distribution of nonmonetary assets (see Note 10) | 0 | 111 |
Software obtained under financing arrangements | 122 | 61 |
Right-of-use assets obtained in exchange for lease liabilities - operating leases | 59 | 98 |
Right-of-use assets obtained in exchange for lease liabilities - finance leases | $ 93 | $ 69 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | |||||
Selling, general and administrative | $ 1,696 | $ 1,546 | $ 3,300 | $ 3,013 | |
Subscriber funds | 1,200 | 1,200 | $ 1,700 | ||
GST/HST Law Change | |||||
Loss Contingencies [Line Items] | |||||
Selling, general and administrative | 27 | 27 | |||
First Data | First Data Subsidiary Merchant Matters | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | 31 | 31 | $ 21 | ||
Minimum | First Data | First Data Subsidiary Merchant Matters | |||||
Loss Contingencies [Line Items] | |||||
Estimated range of exposure | 0 | 0 | |||
Maximum | First Data | First Data Subsidiary Merchant Matters | |||||
Loss Contingencies [Line Items] | |||||
Estimated range of exposure | $ 80 | $ 80 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Processing, administrative, and other fees | $ 4,756 | $ 4,450 | $ 9,303 | $ 8,588 | |
Amounts due from unconsolidated merchant alliances | 3,465 | 3,465 | $ 3,585 | ||
Equity investments | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from unconsolidated merchant alliances | 36 | 36 | $ 43 | ||
Related Party Fees | Equity investments | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Processing, administrative, and other fees | 45 | 50 | 91 | 100 | |
Related Party Fees | Equity investments | Related Party | Merchant Alliances | |||||
Related Party Transaction [Line Items] | |||||
Processing, administrative, and other fees | 45 | 46 | 91 | 93 | |
Related Party Fees | Affiliated entities | Related Party | Lending Solutions Business, Investment Services Business, and InvestCloud Holdings | |||||
Related Party Transaction [Line Items] | |||||
Processing, administrative, and other fees | $ 1 | $ 5 | $ 2 | $ 9 |
Business Segment Information -
Business Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 4,756 | $ 4,450 | $ 9,303 | $ 8,588 | |
Operating income (loss) | 1,131 | 860 | 2,065 | 1,706 | |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 262 | 228 | 541 | 473 | |
Operating income (loss) | (649) | (676) | (1,268) | (1,193) | |
Acceptance | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,065 | 1,901 | 3,912 | 3,554 | |
Operating income (loss) | 718 | 593 | 1,280 | 1,063 | |
Fintech | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 784 | 803 | 1,576 | 1,581 | |
Operating income (loss) | 285 | 281 | 565 | 556 | |
Payments | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,645 | 1,518 | 3,274 | 2,980 | |
Operating income (loss) | 777 | 662 | 1,488 | 1,280 | |
Processing and services revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | [1] | 3,924 | 3,696 | 7,597 | 7,060 |
Processing and services revenue | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 7 | 6 | 13 | 10 | |
Processing and services revenue | Acceptance | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,808 | 1,668 | 3,395 | 3,078 | |
Processing and services revenue | Fintech | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 742 | 760 | 1,493 | 1,495 | |
Processing and services revenue | Payments | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,367 | 1,262 | 2,696 | 2,477 | |
Product revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 832 | 754 | 1,706 | 1,528 | |
Product revenue | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 255 | 222 | 528 | 463 | |
Product revenue | Acceptance | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 257 | 233 | 517 | 476 | |
Product revenue | Fintech | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 42 | 43 | 83 | 86 | |
Product revenue | Payments | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 278 | $ 256 | $ 578 | $ 503 | |
[1]Includes processing and other fees charged to related party investments accounted for under the equity method of $45 million and $50 million for the three months ended June 30, 2023 and 2022, respectively, and $91 million and $100 million for the six months ended June 30, 2023 and 2022, respectively (see Note 18). |