Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | 600 N. Vel R. Phillips Avenue | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53203 | |
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 | 575,725,190 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Revenue | $ 5,107 | $ 4,756 | $ 9,990 | $ 9,303 | |
Selling, general and administrative | 1,697 | 1,696 | 3,394 | 3,300 | |
Net loss on sale of businesses and other assets | 0 | 0 | 0 | 4 | |
Total expenses | 3,679 | 3,625 | 7,381 | 7,238 | |
Operating income | 1,428 | 1,131 | 2,609 | 2,065 | |
Interest expense, net | (285) | (232) | (546) | (434) | |
Other expense, net | (5) | (26) | (12) | (46) | |
Income before income taxes and (loss) income from investments in unconsolidated affiliates | 1,138 | 873 | 2,051 | 1,585 | |
Income tax provision | (221) | (181) | (374) | (305) | |
(Loss) income from investments in unconsolidated affiliates | (8) | 3 | (16) | (9) | |
Net income | 909 | 695 | 1,661 | 1,271 | |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest | 15 | 12 | 32 | 25 | |
Net income attributable to Fiserv, Inc. | $ 894 | $ 683 | $ 1,629 | $ 1,246 | |
Net income attributable to Fiserv, Inc. per share: | |||||
Basic (in dollars per share) | $ 1.53 | $ 1.11 | $ 2.78 | $ 2.01 | |
Diluted (in dollars per share) | $ 1.53 | $ 1.10 | $ 2.76 | $ 1.99 | |
Shares used in computing net income attributable to Fiserv, Inc. per share: | |||||
Basic (in shares) | 582.7 | 615.4 | 586.8 | 621.2 | |
Diluted (in shares) | 585.4 | 619.2 | 590.1 | 625.3 | |
Processing and services | |||||
Revenue | [1] | $ 4,140 | $ 3,924 | $ 8,140 | $ 7,597 |
Cost of goods sold and services | 1,343 | 1,351 | 2,697 | 2,756 | |
Product | |||||
Revenue | 967 | 832 | 1,850 | 1,706 | |
Cost of goods sold and services | $ 639 | $ 578 | $ 1,290 | $ 1,178 | |
[1] Includes processing and other fees charged to related party investments accounted for under the equity method of $36 million and $45 million for the three months ended June 30, 2024 and 2023, respectively, and $76 million and $91 million for the six months ended June 30, 2024 and 2023, respectively (see Note 19). |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Processing, administrative, and other fees | $ 5,107 | $ 4,756 | $ 9,990 | $ 9,303 |
Equity investments | Related Party Fees | ||||
Processing, administrative, and other fees | $ 36 | $ 45 | $ 76 | $ 91 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net income | $ 909 | $ 695 | $ 1,661 | $ 1,271 |
Other comprehensive (loss) income: | ||||
Fair market value adjustment on derivatives | 1 | 4 | 2 | 9 |
Tax impacts of derivatives | (1) | (1) | (2) | (4) |
Unrealized (loss) gain on defined benefit pension plans | (21) | 0 | (105) | 3 |
Tax impacts of defined benefit pension plans | 5 | 0 | 26 | (1) |
Foreign currency translation | (187) | 135 | (320) | 250 |
Tax impacts of foreign currency translation | (8) | 18 | (39) | 40 |
Total other comprehensive (loss) income | (208) | 157 | (432) | 304 |
Comprehensive income | 701 | 852 | 1,229 | 1,575 |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest | 15 | 12 | 32 | 25 |
Less: other comprehensive (loss) income attributable to noncontrolling interests | (5) | 3 | (18) | 15 |
Comprehensive income attributable to Fiserv, Inc. | 691 | 837 | 1,215 | 1,535 |
Foreign currency forward exchange contracts | ||||
Other comprehensive (loss) income: | ||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | (1) | (1) | (2) | 0 |
Treasury Lock | ||||
Other comprehensive (loss) income: | ||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | $ 4 | $ 2 | $ 8 | $ 7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 1,195 | $ 1,204 |
Trade accounts receivable, less allowance for doubtful accounts | 3,744 | 3,582 |
Prepaid expenses and other current assets | 3,263 | 2,344 |
Settlement assets | 30,125 | 27,681 |
Total current assets | 38,327 | 34,811 |
Property and equipment, net | 2,285 | 2,161 |
Intangible assets, net | 10,552 | 11,210 |
Goodwill | 36,867 | 37,205 |
Contract costs, net | 938 | 968 |
Investments in unconsolidated affiliates | 2,210 | 2,262 |
Other long-term assets | 2,238 | 2,273 |
Total assets | 93,417 | 90,890 |
Liabilities and Equity | ||
Accounts payable and other current liabilities | 4,187 | 4,355 |
Short-term and current maturities of long-term debt | 1,108 | 755 |
Contract liabilities | 781 | 761 |
Settlement obligations | 30,125 | 27,681 |
Total current liabilities | 36,201 | 33,552 |
Long-term debt | 24,401 | 22,363 |
Deferred income taxes | 2,862 | 3,078 |
Long-term contract liabilities | 262 | 250 |
Other long-term liabilities | 913 | 978 |
Total liabilities | 64,639 | 60,221 |
Commitments and Contingencies (see Note 18) | ||
Redeemable Noncontrolling Interest | 0 | 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 | 23,014 | 23,103 |
Accumulated other comprehensive loss | (1,197) | (783) |
Retained earnings | 22,073 | 20,444 |
Treasury stock, at cost, 207 million and 190 million shares, respectively | (15,744) | (12,915) |
Total Fiserv, Inc. shareholders’ equity | 28,154 | 29,857 |
Noncontrolling interests | 624 | 651 |
Total equity | 28,778 | 30,508 |
Total liabilities and equity | 93,417 | 90,890 |
Customer relationships, net | ||
Assets | ||
Intangible assets, net | 6,434 | 7,075 |
Other intangible assets, net | ||
Assets | ||
Intangible assets, net | $ 4,118 | $ 4,135 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Fiserv, Inc. Shareholders’ Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
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) | 207,000,000 | 190,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 1,661 | $ 1,271 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and other amortization | 815 | 717 |
Amortization of acquisition-related intangible assets | 744 | 868 |
Amortization of financing costs and debt discounts | 22 | 20 |
Share-based compensation | 185 | 199 |
Deferred income taxes | (207) | (186) |
Net loss on sale of businesses and other assets | 0 | 4 |
Loss from investments in unconsolidated affiliates | 16 | 9 |
Distributions from unconsolidated affiliates | 19 | 30 |
Non-cash impairment charges | 14 | 0 |
Other operating activities | 21 | (1) |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||
Trade accounts receivable | (176) | 131 |
Prepaid expenses and other assets | (420) | (430) |
Contract costs | (104) | (116) |
Accounts payable and other liabilities | (448) | (573) |
Contract liabilities | 30 | 65 |
Net cash provided by operating activities | 2,172 | 2,008 |
Cash flows from investing activities: | ||
Capital expenditures, including capitalized software and other intangibles | (768) | (679) |
Merchant cash advances, net | (451) | 0 |
Distributions from unconsolidated affiliates | 39 | 79 |
Purchases of investments | (35) | (11) |
Proceeds from sale of investments | 8 | 0 |
Other investing activities | 0 | (2) |
Net cash used in investing activities | (1,207) | (613) |
Cash flows from financing activities: | ||
Debt proceeds | 3,189 | 3,160 |
Debt repayments | (1,457) | (978) |
Net borrowings from (repayments of) commercial paper and short-term borrowings | 532 | (767) |
Payments of debt financing costs | (14) | (21) |
Proceeds from issuance of treasury stock | 58 | 53 |
Purchases of treasury stock, including employee shares withheld for tax obligations | (3,230) | (2,603) |
Settlement activity, net | (150) | (515) |
Distributions paid to noncontrolling interests and redeemable noncontrolling interest | (41) | (14) |
Payments of acquisition-related contingent consideration | 0 | (30) |
Other financing activities | (1) | (35) |
Net cash used in financing activities | (1,114) | (1,750) |
Effect of exchange rate changes on cash and cash equivalents | (12) | 19 |
Net change in cash and cash equivalents | (161) | (336) |
Cash and cash equivalents, beginning balance | 2,963 | 3,192 |
Cash and cash equivalents, ending balance | $ 2,802 | $ 2,856 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and 2023 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, 2023. Segment Realignment Effective in the first quarter of 2024, the Company realigned its reportable segments to correspond with changes in its business designed to further enhance operational performance in the delivery of its integrated portfolio of products and solutions to its financial institution clients (the “Segment Realignment”). The Company’s new reportable segments are the Merchant Solutions (“Merchant”) segment and the Financial Solutions (“Financial”) segment. Segment results for the three and six months ended June 30, 2023 have been recast to reflect the Segment Realignment. See Note 20 for additional information. 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 income (loss) 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 19). 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 interest. 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 11). Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 are 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: (In millions) June 30, 2024 December 31, 2023 June 30, 2023 Cash and cash equivalents on the consolidated balance sheets $ 1,195 $ 1,204 $ 1,082 Cash and cash equivalents included in settlement assets 1,606 1,756 1,768 Other restricted cash 1 3 6 Total cash and cash equivalents on the consolidated statements of cash flows $ 2,802 $ 2,963 $ 2,856 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 $70 million and $86 million at June 30, 2024 and December 31, 2023, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: (In millions) June 30, 2024 December 31, 2023 Prepaid maintenance, postage and insurance $ 260 $ 187 Other prepaid expenses 276 236 Total prepaid expenses (1) 536 423 Income tax receivables (2) 749 534 Clover Capital cash advances, net 291 269 Settlement advance cash payments 1,002 381 Other current assets 685 737 Total other current assets 2,727 1,921 Total prepaid expenses and other current assets $ 3,263 $ 2,344 (1) Prepaid expenses represent advance payments for goods and services to be consumed in the future. (2) Includes receivables associated with transferable federal tax credits (see Note 15). The Company offers merchants advance access to capital through its Clover Capital 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 $303 million and $281 million at June 30, 2024 and December 31, 2023, respectively. The Company maintained a reserve of $12 million at both June 30, 2024 and December 31, 2023, 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 from card issuers, including when the cardholders have elected to pay over time in installments. The Company maintains various short-term lines of credit with foreign banks and alliance partners to fund such anticipated settlement activity (see Note 10). These local currency denominated 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 changes in the Clover Capital and settlement advance cash programs are included in merchant cash advances, net within cash flows from investing activities in the consolidated statements of cash flows. Settlement Assets and Obligations Settlement assets and obligations represent intermediary balances arising from the settlement process, which involves the transfer of funds among 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 $28 million and $22 million for the three months ended June 30, 2024 and 2023, respectively, and $53 million and $37 million for the six months ended June 30, 2024 and 2023, respectively. The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of merchant collateral. The amount of merchant collateral available to the Company was $640 million and $690 million at June 30, 2024 and December 31, 2023, 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 other current liabilities 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 $38 million and $36 million at June 30, 2024 and December 31, 2023, 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 operating segments. Th e Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2023 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 for 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. In connection with the Segment Realignment, the Company performed an interim goodwill impairment assessment in the first quarter of 2024 for the impacted reporting units, and determined that its goodwill was not impaired based on an assessment of various qualitative factors. Examples of qualitative factors that the Company assesses include its share price, its financial performance, market and competitive factors in its industry and other events specific to its reporting units. There is no accumulated goodwill impairment for the Company through June 30, 2024. Foreign Currency The U.S. dollar is the functional currency of the Company’s U.S.-based 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, including Argentina, resulted in foreign currency exchange losses of $18 million and $32 million for the three months ended June 30, 2024 and 2023, respectively, and $53 million and $50 million for the six months ended June 30, 2024 and 2023, respectively, which is included within other expense, net in 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 currency-denominated 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. Defined Benefit Pension Plans The Company maintains frozen noncontributory defined benefit pension plans covering certain employees in Europe and the U.S. Effective September 30, 2023, the Company terminated the United Kingdom (“U.K.”) and U.S. defined benefit pension plans. In March 2024, the Company entered into a group annuity insurance contract to provide for the administration of future payments to eligible plan participants of the terminated U.K. plan. In connection with the buy-in of this insurance policy, the plan’s projected benefit obligation was remeasured to the value of the group annuity insurance contract, resulting in an unrecognized loss, net of tax, of approximately $63 million recorded in accumulated other comprehensive loss within the consolidated balance sheet. Upon the settlement of the terminated plans, which is expected to be completed in 2024, the Company will fund the estimated plan termination liability shortfall for the U.S. defined benefit pension plans of approximately $25 million and expects to recognize a net non-cash pre-tax pension settlement charge for the terminated U.S. and U.K. plans of approximately $140 million, which also includes the recognition of remaining net actuarial unrecognized losses recorded within accumulated other comprehensive loss. The amount of accrued vested benefits to be received by participants will not be impacted. 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) 2024 2023 2024 2023 Interest expense $ (294) $ (237) $ (565) $ (447) Interest income 9 5 19 13 Interest expense, net $ (285) $ (232) $ (546) $ (434) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 recognized in earnings and disclosed on the date of adoption. The Company adopted ASU 2022-03 effective January 1, 2024, and the adoption did not have a material impact on the Company’s consolidated financial statements or disclosures for the six months ended June 30, 2024. Recently Issued Accounting Pronouncements In 2023, the FASB issued ASU No. 2023-09 , Income Taxes (Topic 740) - Improvement to Income Tax Disclosures (“ASU 2023-09” ), which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. ASU 2023-09 requires entities to consistently categorize and provide greater disaggregation of information within the income tax reconciliation to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective and statutory tax rates. For public entities, the provisions within ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, and for interim periods of fiscal years beginning after December 15, 2025. The Company is currently assessing the impact the adoption of ASU 2023-09 will have on its consolidated financial statement disclosures. In 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
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 and the Financial reportable segments. Additional information regarding the Company’s business segments is included in Note 20. The table below presents the Company’s revenue disaggregated by business line, including a reconciliation with its reportable segments. The Company’s disaggregation of revenue for the three and six months ended June 30, 2023 has been recast to reflect the Segment Realignment. The Company serves its global client base by working among its geographic teams across various regions, including the U.S. and Canada; Europe, Middle East and Africa (“EMEA”); Latin America (“LATAM”); and Asia Pacific (“APAC”). The majority of the Company’s revenue is earned domestically, with revenue generated within its EMEA, LATAM and APAC regions comprising approximately 15% of total revenue for both the three and six months ended June 30, 2024 and 14% of total revenue for both the three and six months ended June 30, 2023. (In millions) Three Months Ended June 30, Six Months Ended June 30, Revenue by Business Line 2024 2023 2024 2023 Small Business $ 1,604 $ 1,424 $ 3,092 $ 2,709 Enterprise 542 495 1,005 932 Processing 264 287 566 561 Total Merchant segment revenue $ 2,410 $ 2,206 $ 4,663 $ 4,202 Digital Payments $ 987 $ 911 $ 1,907 $ 1,784 Issuing 766 730 1,527 1,461 Banking 626 604 1,230 1,223 Total Financial segment revenue $ 2,379 $ 2,245 $ 4,664 $ 4,468 Corporate and Other $ 318 $ 305 $ 663 $ 633 Total Revenue $ 5,107 $ 4,756 $ 9,990 $ 9,303 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers: (In millions) June 30, 2024 December 31, 2023 Contract assets $ 828 $ 754 Contract liabilities 1,043 1,011 Contract assets, reported within other long-term assets in the consolidated balance sheets, primarily relate to customer discounts where revenue recognition and payment of consideration under the contract 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 $504 million of revenue during the six months ended June 30, 2024 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 and services revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at June 30, 2024: (In millions) Year Ending December 31, Remainder of 2024 $ 1,233 2025 2,150 2026 1,596 2027 1,082 Thereafter 1,184 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, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [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 On October 9, 2023, the Company acquired Skytef Solucões em Captura de Transações Ltda (“Skytef”), a distributor for independent software vendor partners and merchants of the Company’s Electronic Funds Transfer payments software. Skytef is included within the Merchant segment and expands the Company’s distribution network and point-of-sale applications. On November 1, 2023, the Company acquired Sled S.A. (“Sled”), a provider of instant payment solutions. Sled is included within the Merchant segment and expands the Company’s direct payment service capabilities. The Company acquired these businesses in Latin America for an aggregate purchase price, including hold-backs, of $17 million. The purchase price allocations for the Skytef and Sled acquisitions were finalized in the first quarter of 2024, and measurement period adjustments did not have a material impact on the Company’s consolidated statement of income. Dispositions On July 25, 2023, the Company sold its financial reconciliation business, which was reported within the Financial segment, for cash proceeds of $235 million. The Company recognized a pre-tax gain of $172 million on the sale, recorded within net gain (loss) on sale of businesses and other assets, with a related tax expense of $48 million recorded within the income tax provision, in the consolidated statement of income for the year ended December 31, 2023. The pre-tax gain was comprised of the difference between the consideration received and the net carrying amount of the business, including $38 million of allocated goodwill; $15 million of other net assets, primarily consisting of trade accounts receivable and capitalized software; and $10 million of accumulated foreign currency translation losses which were reclassified from accumulated other comprehensive loss. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 Customer relationships $ 14,550 $ 8,116 $ 6,434 Acquired software and technology 2,110 1,228 882 Trade names 638 384 254 Purchased software 1,030 489 541 Capitalized software and other intangibles 3,696 1,255 2,441 Total $ 22,024 $ 11,472 $ 10,552 December 31, 2023 Customer relationships $ 14,669 $ 7,594 $ 7,075 Acquired software and technology 2,148 1,148 1,000 Trade names 641 356 285 Purchased software 1,087 520 567 Capitalized software and other intangibles 3,356 1,073 2,283 Total $ 21,901 $ 10,691 $ 11,210 Amortization expense associated with the above identifiable intangible assets was $586 million and $614 million for the three months ended June 30, 2024 and 2023 , respectively, and $1.2 billion for both the six months ended June 30, 2024 and 2023. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2024 | |
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 income (loss) 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, including significant changes in business relationships with merchant alliances. A deterioration in value of an equity method investment determined to be other-than-temporary is recorded as a current-period impairment charge within income (loss) from investments in unconsolidated affiliates in the consolidated statements of income. The estimated fair values of the Company’s investments in unconsolidated merchant alliances assume a continuation beyond the existing contractual term. A renewal of certain of the merchant alliance agreements beyond the current contractual term is not solely within the Company’s control. Merchant Alliances The Company maintains ownership interests in various merchant alliances. A merchant alliance is an agreement between the Company and a financial institution that combines the processing capabilities and management expertise of the Company with the visibility and distribution channel of the financial institution. A merchant alliance acquires credit and debit card transactions from merchants. The Company provides processing and other services to the alliance and charges fees to the alliance based on contractual pricing (see Note 19). The Company’s investment in its merchant alliances was $1.9 billion at both June 30, 2024 and December 31, 2023, and is reported within investments in unconsolidated affiliates in the consolidated balance sheets. Other Equity Investments The Company also maintains investments, over which it does not have significant influence, in various equity securities without a readily determinable fair value. Such investments totaled $157 million and $156 million at June 30, 2024 and December 31, 2023, respectively, and are primarily 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 net gains from sales of equity securities were $6 million and $27 million during the three and six months ended June 30, 2024, respectively, and were not significant during the three and six months ended June 30, 2023. |
Derivatives and Hedging Instrum
Derivatives and Hedging Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Instruments | Derivatives and Hedging Instruments In order to limit exposure to risk, the Company maintains derivative instruments with creditworthy institutions to hedge against changing interest rates and foreign currency rate fluctuations. The Company utilizes forward exchange contracts, fixed-to-fixed cross-currency rate swap contracts and other non-derivative hedging instruments to manage such risk. The Company has designated these instruments as cash flow hedges, net investment hedges, or fair value hedges, as further described below. Derivative instruments maintained by the Company are measured on a recurring basis and are recorded at fair value either as an asset or liability in the consolidated balance sheets (see Note 8). Cash Flow Hedges The Company maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. The notional amount of these derivatives was $464 million and $443 million at June 30, 2024 and December 31, 2023, respectively. Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2024, the Company estimates that it will recognize gains of approximately $4 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 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 forecast interest payments. The unamortized balance recorded in accumulated other comprehensive loss related to the Treasury Locks was $108 million and $116 million at June 30, 2024 and December 31, 2023, respectively. Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2024, the Company estimates that it will recognize approximately $13 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. The aggregate notional amount of the fixed-to-fixed cross-currency rate swap contracts were as follows: (In millions) June 30, 2024 December 31, 2023 Currency Euros 475 400 Singapore Dollars 751 751 Canadian Dollars 253 — These fixed-to-fixed cross-currency rate swaps have been designated as net investment hedges to hedge a portion of the Company’s net investment in certain subsidiaries whose functional currencies are the Euro, Singapore Dollar, and Canadian Dollar. The Company has also 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. 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 currency-denominated subsidiaries. Foreign currency transaction gains (losses), net of income tax, related to net investment hedges that were recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income were as follows: Three Months Ended Six Months Ended (In millions) 2024 2023 2024 2023 Cross-currency rate swap contracts $ — $ (5) $ 16 $ (7) Foreign currency-denominated debt 24 (50) 101 (114) The Company recorded income tax impacts of $(8) million and $18 million during the three months ended June 30, 2024 and 2023, respectively, and $(39) million and $40 million during the six months ended June 30, 2024 and 2023, respectively, in other comprehensive income (loss) from the translation of foreign currency-denominated senior notes, Euro commercial paper notes and cross-currency rate swap contracts. Fair Value Hedges The Company maintains fixed-to-fixed cross-currency rate swap contracts, designated as fair value hedges, to mitigate the spot foreign exchange rate risk on the principal amount of its British Pound-denominated 2.250% senior notes due in July 2025, as well as on the principal amount of a Euro-denominated intercompany note. The aggregate notional amount of the fixed-to-fixed cross-currency rate swap contracts were as follows: (In millions) June 30, 2024 December 31, 2023 Currency British Pounds 525 525 Euros 157 157 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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. Derivative instruments maintained by the Company (see Note 7) 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 is estimated using the present value of a probability-weighted assessment approach based on the likelihood of achieving the earn-out criteria. The Company’s obligation to purchase a redeemable noncontrolling interest in one of its existing merchant alliance joint ventures (see Note 11) is measured at the estimated fair value of the minority interest. This obligation will be settled at a future date through the distribution of certain merchant contracts to the minority partner. 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 contracts designated as cash flow hedges Prepaid expenses and other current assets Level 2 $ 4 $ 2 Cross-currency rate swap contract designated as fair value hedge Prepaid expenses and other current assets Level 2 2 — Cross-currency rate swap contract designated as fair value hedge Other long-term assets Level 2 2 3 Liabilities Cross-currency rate swap contracts designated as net investment hedges Accounts payable and other current liabilities Level 2 $ 18 $ — Cross-currency rate swap contracts designated as fair value hedges Other long-term liabilities Level 2 4 1 Cross-currency rate swap contracts designated as net investment hedges Other long-term liabilities Level 2 22 61 Contingent consideration Accounts payable and other current liabilities Level 3 3 2 Obligation to purchase redeemable noncontrolling interest Accounts payable and other current liabilities Level 3 95 — Contingent debt guarantee Other long-term liabilities Level 3 19 23 Debt 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, 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 $23.6 billion and $21.6 billion at June 30, 2024 and December 31, 2023, respectively, and the carrying value was $24.5 billion and $22.2 billion at June 30, 2024 and December 31, 2023, respectively. Debt Guarantee Arrangements The Company maintains noncontrolling ownership interests in Sagent M&C, LLC and defi SOLUTIONS Group, LLC (collectively the “Lending Joint Ventures”), which are accounted for under the equity method. The Lending Joint Ventures maintain variable-rate term loan facilities with aggregate outstanding borrowings of $432 million in senior unsecured debt at June 30, 2024 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 $19 million of aggregate outstanding borrowings on the revolving credit facilities at June 30, 2024. The Company has guaranteed the debt of the Lending Joint Ventures. The Company maintains liabilities for its obligations to perform over the term of its debt guarantee arrangements with the Lending Joint Ventures, which are reported within other long-term liabilities in the consolidated balance sheets. The Company has provided aggregate guarantees of $515 million associated with the debt of the Lending Joint Ventures and is entitled to receive a defined fee in exchange for its 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 $26 million and $31 million approximates the fair value at June 30, 2024 and December 31, 2023, 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, as reflected within the table above, 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 $5 million and $3 million during the three months ended June 30, 2024 and 2023, respectively, and $9 million and $5 million during the six months ended June 30, 2024 and 2023, 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 Lending Joint Ventures. Other Non-Financial Assets |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Current Liabilities | Accounts Payable and Other Current Liabilities Accounts payable and other current liabilities consisted of the following: (In millions) June 30, 2024 December 31, 2023 Trade accounts payable $ 522 $ 449 Client deposits 972 931 Transferable federal tax credits (see Note 15) 298 804 Accrued compensation and benefits 294 344 Accrued taxes 237 203 Accrued interest 337 298 Accrued payment network fees 251 232 Operating lease liabilities 110 118 Accrued professional fees 92 96 Obligation to purchase redeemable noncontrolling interest (see Note 11) 95 — Other accrued expenses 979 880 Total $ 4,187 $ 4,355 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt consisted of the following: (In millions) June 30, 2024 December 31, 2023 Short-term and current maturities of long-term debt: Foreign lines of credit $ 794 $ 442 Finance lease and other financing obligations 314 313 Total short-term and current maturities of long-term debt $ 1,108 $ 755 Long-term debt: 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) 664 672 3.200% senior notes due July 2026 2,000 2,000 5.150% senior notes due March 2027 750 — 2.250% senior notes due June 2027 1,000 1,000 1.125% senior notes due July 2027 (Euro-denominated) 535 555 5.450% senior notes due March 2028 900 900 5.375% senior notes due August 2028 700 700 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) 535 555 5.350% senior notes due March 2031 500 — 4.500% senior notes due May 2031 (Euro-denominated) 857 889 3.000% senior notes due July 2031 (British Pound-denominated) 664 672 5.600% senior notes due March 2033 900 900 5.625% senior notes due August 2033 1,300 1,300 5.450% senior notes due March 2034 750 — 4.400% senior notes due July 2049 2,000 2,000 U.S. dollar commercial paper notes 667 418 Euro commercial paper notes 1,273 1,321 Revolving credit facility — 74 Unamortized discount and deferred financing costs (152) (145) Finance lease and other financing obligations 658 652 Total long-term debt $ 24,401 $ 22,363 The Company was in compliance with all financial debt covenants during the six months ended June 30, 2024. Senior Notes On March 4, 2024, the Company completed the public offering and issuance of $2.0 billion of senior notes, comprised of $750 million aggregate principal amount of 5.150% senior notes due in March 2027, $500 million aggregate principal amount of 5.350% senior notes due in March 2031 and $750 million aggregate principal amount of 5.450% senior notes due in March 2034. Interest on these senior notes is paid semi-annually. The Company used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of a portion of the Company’s commercial paper notes and for share repurchases, and in July 2024, the repayment of a portion of its 2.750% senior notes. At June 30, 2024, the 2.750% senior notes due in July 2024 and 3.850% senior notes due in June 2025 were classified in the consolidated balance sheet as long-term, as the Company has either subsequently refinanced or has the intent to refinance this debt on a long-term basis, and the ability to do so under its revolving credit facility. The indentures governing 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 $667 million and $418 million at June 30, 2024 and December 31, 2023, respectively, with weighted average interest rates of 5.560% and 5.454%, respectively. Outstanding borrowings under the Euro program were $1.3 billion at both June 30, 2024 and December 31, 2023, with weighted average interest rates of 3.843% and 4.029%, respectively. The Company intends to maintain available capacity under its revolving credit facility, as described below, in an amount at least equal to the aggregate outstanding borrowings under its commercial paper programs. Outstanding borrowings under the commercial paper programs are classified in the consolidated balance 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 base rate, determined by the term and currency of the borrowing, plus a specified margin based on the Company’s long-term debt rating. There were no outstanding borrowings under the revolving credit facility at June 30, 2024. Outstanding borrowings under the revolving credit facility were $74 million at December 31, 2023, with a corresponding interest rate of 6.450%. The credit facility also requires the Company to pay a facility fee based on the aggregate commitments in effect under the agreement from time to time. The credit facility contains various restrictions and covenants that require the Company to, among other things, limit its consolidated indebtedness as of the end of each fiscal quarter to no more than 3.75 times the Company’s consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and expenses and certain other adjustments during the period of four fiscal quarters then ended, subject to certain exceptions. Foreign Lines of Credit The Company maintains various 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, including an annually renewable term loan facility to fund settlement advance cash payments in Brazil. This term loan has a notional value of 514 million Brazilian real ($93 million USD equivalent) at June 30, 2024 and bears interest at a variable Certificado de Depósito Interbancário (CDI) Rate, plus a specified margin per annum. In February 2024, this term loan facility was amended, which amendment extended its maturity date to April 2025 and decreased the specified margin to 1.25% per annum. The following table provides a summary of the outstanding borrowings and weighted average interest rates of the Company’s foreign lines of credit and other borrowing arrangements by country: Outstanding Borrowings (in millions) Weighted-Average Interest Rate June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Argentina $ 575 $ 208 40.363 % 121.581 % Brazil 105 123 11.612 % 13.500 % Uruguay 50 55 10.277 % 11.125 % Other 64 56 2.825 % 4.912 % Total $ 794 $ 442 31.623 % 63.060 % |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest The 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. Effective June 1, 2024, the Company and the merchant alliance joint venture minority partner mutually agreed to terminate the joint venture agreement on September 1, 2024. Under the provisions of the separation agreement, the Company will redeem the minority partner’s membership interest in exchange for a distribution of certain merchant contracts. The redeemable noncontrolling interest was adjusted to reflect the estimated redemption value, with a corresponding adjustment recorded to additional paid-in capital (see Notes 8 and 12). Additionally, as the redeemable noncontrolling interest is now mandatorily redeemable, the Company’s obligation to purchase the interest has been reclassified as a current liability in the accompanying consolidated balance sheet at June 30, 2024 (see Note 9). The Company will maintain an ongoing relationship with the minority partner to provide processing and other support services following termination of the joint venture agreement. The following table presents a summary of the redeemable noncontrolling interest activity during the six months ended June 30: (In millions) 2024 2023 Balance at beginning of period $ 161 $ 161 Distributions paid to redeemable noncontrolling interest (13) (13) Share of income 13 13 Adjustment to estimated redemption value of redeemable noncontrolling interest (66) — Reclassification to current liability (95) — Balance at end of period $ — $ 161 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | Equity The following tables provide changes in equity during the three and six months ended June 30, 2024 and 2023: 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, 2024 784 198 $ 8 $ 22,861 $ (994) $ 21,179 $ (14,253) $ 622 $ 29,423 Net income (1) 894 8 902 Distributions paid to noncontrolling interests (2) (1) (1) Change in estimated redemption value of redeemable noncontrolling interest (see Note 11) 66 66 Other comprehensive loss (203) (5) (208) Share-based compensation 99 99 Shares issued under stock plans (1) (12) 23 11 Purchases of treasury stock 10 (1,514) (1,514) Balance at June 30, 2024 784 207 $ 8 $ 23,014 $ (1,197) $ 22,073 $ (15,744) $ 624 $ 28,778 (1) The total net income presented in equity for the three months ended June 30, 2024 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interest of $7 million not included in equity. (2) The total distributions presented in equity for the three months ended June 30, 2024 excludes $6 million in distributions paid to redeemable noncontrolling interest 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, 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 interest 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 interest 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, 2023 784 190 $ 8 $ 23,103 $ (783) $ 20,444 $ (12,915) $ 651 $ 30,508 Net income (1) 1,629 19 1,648 Distributions paid to noncontrolling interests (2) (28) (28) Change in estimated redemption value of redeemable noncontrolling interest (see Note 11) 66 66 Other comprehensive loss (414) (18) (432) Share-based compensation 185 185 Shares issued under stock plans (3) (340) 197 (143) Purchases of treasury stock 20 (3,026) (3,026) Balance at June 30, 2024 784 207 $ 8 $ 23,014 $ (1,197) $ 22,073 $ (15,744) $ 624 $ 28,778 (1) The total net income presented in equity for the six months ended June 30, 2024 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interest of $13 million not included in equity. (2) The total distributions presented in equity for the six months ended June 30, 2024 excludes $13 million in distributions paid to redeemable noncontrolling interest 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, 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 interest 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 interest not included in equity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 Balance at March 31, 2024 $ (75) $ (839) $ (80) $ (994) Other comprehensive income (loss) before reclassifications 1 (190) (16) (205) Amounts reclassified from accumulated other comprehensive loss 2 — — 2 Net current-period other comprehensive income (loss) 3 (190) (16) (203) Balance at June 30, 2024 $ (72) $ (1,029) $ (96) $ (1,197) 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) Six Months Ended June 30, 2024 Balance at December 31, 2023 $ (78) $ (688) $ (17) $ (783) Other comprehensive income (loss) before reclassifications (see Note 1) 2 (341) (79) (418) Amounts reclassified from accumulated other comprehensive loss 4 — — 4 Net current-period other comprehensive income (loss) 6 (341) (79) (414) Balance at June 30, 2024 $ (72) $ (1,029) $ (96) $ (1,197) 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) |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company recognized $99 million and $106 million of share-based compensation expense during the three months ended June 30, 2024 and 2023, respectively, and $185 million and $199 million of share-based compensation expense during the six months ended June 30, 2024 and 2023, 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, 2024, the total remaining unrecognized compensation cost for restricted stock units and awards, performance share units, and unvested stock options, net of estimated forfeitures, of $464 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, 2024 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, 2023 5,419 $ 103.11 3,219 $ 104.09 Granted 2,021 147.87 275 158.53 Forfeited (254) 117.63 (50) 114.35 Vested (2,327) 103.63 (218) 103.54 Units and awards - June 30, 2024 4,859 $ 120.71 3,226 $ 108.08 A summary of stock option activity during the six months ended June 30, 2024 is as follows: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Stock options outstanding - December 31, 2023 3,865 $ 72.36 Granted — — Forfeited (10) 108.15 Exercised (1,994) 57.53 Stock options outstanding - June 30, 2024 1,861 $ 88.05 4.45 $ 113 Stock options exercisable - June 30, 2024 1,812 $ 87.42 4.38 $ 112 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Income tax provision $ 221 $ 181 $ 374 $ 305 Effective income tax rate 19.4 % 20.7 % 18.2 % 19.2 % The income tax provision as a percentage of income before income taxes and income (loss) from investments in unconsolidated affiliates was 19.4% and 20.7% for the three months ended June 30, 2024 and 2023, respectively, and 18.2% and 19.2% for the six months ended June 30, 2024 and 2023, respectively. The effective income tax rate for each of the six months ended June 30, 2024 and 2023 included discrete tax benefits from equity compensation. Pursuant to provisions under the Inflation Reduction Act, the Company has purchased transferable federal tax credits from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit. Receivables associated with transferable federal tax credits are recorded within prepaid expenses and other current assets, and amounts owed to counterparties for the purchased credits are recorded within accounts payable and other current liabilities within the consolidated balance sheets at June 30, 2024 and December 31, 2023. The Company’s potential liability for unrecognized tax benefits before interest and penalties was approximately $89 million at June 30, 2024. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $5 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, 2024, the Company’s U.S. federal income tax return for 2023, and tax returns in certain states and foreign jurisdictions for 2017 through 2023, 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, 2024 | |
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) 2024 2023 2024 2023 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic 582.7 615.4 586.8 621.2 Common stock equivalents 2.7 3.8 3.3 4.1 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted 585.4 619.2 590.1 625.3 For the three months ended June 30, 2024 and 2023, stock options for 66 thousand and 911 thousand 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, 2024 and 2023, stock options for 51 thousand and 984 thousand 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, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | Cash Flow Information Supplemental cash flow information consisted of the following: Six Months Ended (In millions) 2024 2023 Interest paid $ 502 $ 369 Income taxes paid 1,277 882 Treasury stock purchases settled after the balance sheet date — 3 Software obtained under financing arrangements 96 122 Right-of-use assets obtained in exchange for lease liabilities - operating leases 66 59 Right-of-use assets obtained in exchange for lease liabilities - finance leases 106 93 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 an accrual of $38 million and $32 million a t June 30, 2024 and December 31, 2023, 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 legal proceedings in excess of amounts accrued is $0 million to approximately $100 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. 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 $733 million and $3.5 billion at June 30, 2024 and December 31, 2023, 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, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions 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 $37 million and $45 million for the three months ended June 30, 2024 and 2023, respectively, and $77 million and $91 million for the six months ended June 30, 2024 and 2023, 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 $31 million and $38 million of amounts due from unconsolidated merchant alliances included within trade accounts receivable, net in the Company’s consolidated balance sheets at June 30, 2024 and December 31, 2023, respectively. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Following the Segment Realignment (see Note 1), the Company’s operations are comprised of the Merchant segment and the Financial segment. The businesses in the Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; and pay-by-bank solutions. The businesses within the Merchant segment consist of the following: • Small Business – provides products and services to small businesses and independent software vendors, including Clover ® , the Company's point-of-sale integrated commerce operating system for small business clients • Enterprise – provides products and services to large businesses, including Carat SM , the Company's integrated commerce operating system for enterprise clients • Processing – provides products and services to financial institutions, joint ventures, and other third party resellers which have direct relationships with merchants The Company distributes the products and services in the Merchant 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. The businesses in the Financial segment provide products and services to financial institution, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The businesses within the Financial segment consist of the following: • Digital Payments – provides debit card processing services; debit network services; security and fraud protection products; bill payment; person-to-person payments; and account-to-account transfers • Issuing – provides credit card processing services; prepaid card processing services; card production services; print services; government payment processing; and student loan processing • Banking – provides customer loan and deposit account processing; digital banking; financial and risk management; professional services and consulting; and check processing 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 services revenue associated with various dispositions; and postage reimbursements. Operating results for each segment were as follows: Reportable Segments (In millions) Merchant Financial Corporate Total Three Months Ended June 30, 2024 Processing and services revenue $ 2,132 $ 2,003 $ 5 $ 4,140 Product revenue 278 376 313 967 Total revenue $ 2,410 $ 2,379 $ 318 $ 5,107 Operating income (loss) $ 882 $ 1,093 $ (547) $ 1,428 Three Months Ended June 30, 2023 Processing and services revenue $ 1,940 $ 1,977 $ 7 $ 3,924 Product revenue 266 268 298 832 Total revenue $ 2,206 $ 2,245 $ 305 $ 4,756 Operating income (loss) $ 745 $ 1,028 $ (642) $ 1,131 Six Months Ended June 30, 2024 Processing and services revenue $ 4,142 $ 3,988 $ 10 $ 8,140 Product revenue 521 676 653 1,850 Total revenue $ 4,663 $ 4,664 $ 663 $ 9,990 Operating income (loss) $ 1,651 $ 2,101 $ (1,143) $ 2,609 Six Months Ended June 30, 2023 Processing and services revenue $ 3,667 $ 3,917 $ 13 $ 7,597 Product revenue 535 551 620 1,706 Total revenue $ 4,202 $ 4,468 $ 633 $ 9,303 Operating income (loss) $ 1,337 $ 1,971 $ (1,243) $ 2,065 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 894 | $ 683 | $ 1,629 | $ 1,246 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 21, 2024, Frank Bisignano, Chairman of the Board, President and Chief Executive Officer of the Company, adopted a trading arrangement for the sale of securities of the Company’s common stock (a “Rule 10b5-1 Trading Plan”) that is intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c). Mr. Bisignano’s Rule 10b5-1 Trading Plan provides for the sale of up to 145,000 shares of common stock pursuant to one or more limit orders until December 31, 2025. | |
Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Frank Bisignano [Member] | ||
Trading Arrangements, by Individual | ||
Name | Frank Bisignano | |
Title | Chairman of the Board, President and Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 21, 2024 | |
Arrangement Duration | 558 days | |
Aggregate Available | 145,000 | 145,000 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements for the three and six months ended June 30, 2024 and 2023 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, 2023. |
Segment Realignment | Segment Realignment Effective in the first quarter of 2024, the Company realigned its reportable segments to correspond with changes in its business designed to further enhance operational performance in the delivery of its integrated portfolio of products and solutions to its financial institution clients (the “Segment Realignment”). The Company’s new reportable segments are the Merchant Solutions (“Merchant”) segment and the Financial Solutions (“Financial”) segment. Segment results for the three and six months ended June 30, 2023 have been recast to reflect the Segment Realignment. See Note 20 for additional information. |
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 income (loss) 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 19). 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 interest. 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 11). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 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 are 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. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
Prepaid Expenses and Other Current Assets | The Company offers merchants advance access to capital through its Clover Capital 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. 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 from card issuers, including when the cardholders have elected to pay over time in installments. The Company maintains various short-term lines of credit with foreign banks and alliance partners to fund such anticipated settlement activity (see Note 10). These local currency denominated 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 changes in the Clover Capital and settlement advance cash programs are included in merchant cash advances, net within cash flows from investing activities in the consolidated statements of cash flows. |
Settlement Assets and Obligations | Settlement Assets and Obligations Settlement assets and obligations represent intermediary balances arising from the settlement process, which involves the transfer of funds among 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 $28 million and $22 million for the three months ended June 30, 2024 and 2023, respectively, and $53 million and $37 million for the six months ended June 30, 2024 and 2023, 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 operating segments. Th e Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2023 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 for certain of the Company’s reporting units (such as an increase in risk-adjusted discount rates) |
Foreign Currency | Foreign Currency The U.S. dollar is the functional currency of the Company’s U.S.-based 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, including Argentina, resulted in foreign currency exchange losses of $18 million and $32 million for the three months ended June 30, 2024 and 2023, respectively, and $53 million and $50 million for the six months ended June 30, 2024 and 2023, respectively, which is included within other expense, net in 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 currency-denominated 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. |
Defined Benefit Pension Plans | Defined Benefit Pension Plans The Company maintains frozen noncontributory defined benefit pension plans covering certain employees in Europe and the U.S. Effective September 30, 2023, the Company terminated the United Kingdom (“U.K.”) and U.S. defined benefit pension plans. In March 2024, the Company entered into a group annuity insurance contract to provide for the administration of future payments to eligible plan participants of the terminated U.K. plan. In connection with the buy-in of this insurance policy, the plan’s projected benefit obligation was remeasured to the value of the group annuity insurance contract, resulting in an unrecognized loss, net of tax, of approximately $63 million recorded in accumulated other comprehensive loss within the consolidated balance sheet. Upon the settlement of the terminated plans, which is expected to be completed in 2024, the Company will fund the estimated plan termination liability shortfall for the U.S. defined benefit pension plans of approximately $25 million and expects to recognize a net non-cash pre-tax pension settlement charge for the terminated U.S. and U.K. plans of approximately $140 million, which also includes the recognition of remaining net actuarial unrecognized losses recorded within accumulated other comprehensive loss. The amount of accrued vested benefits to be received by participants will not be impacted. |
Interest Expense, Net | Interest Expense, Net |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 recognized in earnings and disclosed on the date of adoption. The Company adopted ASU 2022-03 effective January 1, 2024, and the adoption did not have a material impact on the Company’s consolidated financial statements or disclosures for the six months ended June 30, 2024. Recently Issued Accounting Pronouncements In 2023, the FASB issued ASU No. 2023-09 , Income Taxes (Topic 740) - Improvement to Income Tax Disclosures (“ASU 2023-09” ), which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. ASU 2023-09 requires entities to consistently categorize and provide greater disaggregation of information within the income tax reconciliation to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective and statutory tax rates. For public entities, the provisions within ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, and for interim periods of fiscal years beginning after December 15, 2025. The Company is currently assessing the impact the adoption of ASU 2023-09 will have on its consolidated financial statement disclosures. In 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures |
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. 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 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. Derivative instruments maintained by the Company (see Note 7) 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 is estimated using the present value of a probability-weighted assessment approach based on the likelihood of achieving the earn-out criteria. The Company’s obligation to purchase a redeemable noncontrolling interest in one of its existing merchant alliance joint ventures (see Note 11) is measured at the estimated fair value of the minority interest. This obligation will be settled at a future date through the distribution of certain merchant contracts to the minority partner. 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, 2024 | |
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: (In millions) June 30, 2024 December 31, 2023 June 30, 2023 Cash and cash equivalents on the consolidated balance sheets $ 1,195 $ 1,204 $ 1,082 Cash and cash equivalents included in settlement assets 1,606 1,756 1,768 Other restricted cash 1 3 6 Total cash and cash equivalents on the consolidated statements of cash flows $ 2,802 $ 2,963 $ 2,856 |
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: (In millions) June 30, 2024 December 31, 2023 June 30, 2023 Cash and cash equivalents on the consolidated balance sheets $ 1,195 $ 1,204 $ 1,082 Cash and cash equivalents included in settlement assets 1,606 1,756 1,768 Other restricted cash 1 3 6 Total cash and cash equivalents on the consolidated statements of cash flows $ 2,802 $ 2,963 $ 2,856 |
Deferred costs, capitalized, prepaid, and other assets disclosure | Prepaid expenses and other current assets consisted of the following: (In millions) June 30, 2024 December 31, 2023 Prepaid maintenance, postage and insurance $ 260 $ 187 Other prepaid expenses 276 236 Total prepaid expenses (1) 536 423 Income tax receivables (2) 749 534 Clover Capital cash advances, net 291 269 Settlement advance cash payments 1,002 381 Other current assets 685 737 Total other current assets 2,727 1,921 Total prepaid expenses and other current assets $ 3,263 $ 2,344 (1) Prepaid expenses represent advance payments for goods and services to be consumed in the future. (2) Includes receivables associated with transferable federal tax credits (see Note 15). |
Schedule of interest expense, net | Interest expense, net consisted of the following: Three Months Ended Six Months Ended (In millions) 2024 2023 2024 2023 Interest expense $ (294) $ (237) $ (565) $ (447) Interest income 9 5 19 13 Interest expense, net $ (285) $ (232) $ (546) $ (434) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The table below presents the Company’s revenue disaggregated by business line, including a reconciliation with its reportable segments. The Company’s disaggregation of revenue for the three and six months ended June 30, 2023 has been recast to reflect the Segment Realignment. The Company serves its global client base by working among its geographic teams across various regions, including the U.S. and Canada; Europe, Middle East and Africa (“EMEA”); Latin America (“LATAM”); and Asia Pacific (“APAC”). The majority of the Company’s revenue is earned domestically, with revenue generated within its EMEA, LATAM and APAC regions comprising approximately 15% of total revenue for both the three and six months ended June 30, 2024 and 14% of total revenue for both the three and six months ended June 30, 2023. (In millions) Three Months Ended June 30, Six Months Ended June 30, Revenue by Business Line 2024 2023 2024 2023 Small Business $ 1,604 $ 1,424 $ 3,092 $ 2,709 Enterprise 542 495 1,005 932 Processing 264 287 566 561 Total Merchant segment revenue $ 2,410 $ 2,206 $ 4,663 $ 4,202 Digital Payments $ 987 $ 911 $ 1,907 $ 1,784 Issuing 766 730 1,527 1,461 Banking 626 604 1,230 1,223 Total Financial segment revenue $ 2,379 $ 2,245 $ 4,664 $ 4,468 Corporate and Other $ 318 $ 305 $ 663 $ 633 Total Revenue $ 5,107 $ 4,756 $ 9,990 $ 9,303 |
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, 2024 December 31, 2023 Contract assets $ 828 $ 754 Contract liabilities 1,043 1,011 |
Schedule of remaining performance obligations | The following table includes estimated processing and services revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at June 30, 2024: (In millions) Year Ending December 31, Remainder of 2024 $ 1,233 2025 2,150 2026 1,596 2027 1,082 Thereafter 1,184 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 Customer relationships $ 14,550 $ 8,116 $ 6,434 Acquired software and technology 2,110 1,228 882 Trade names 638 384 254 Purchased software 1,030 489 541 Capitalized software and other intangibles 3,696 1,255 2,441 Total $ 22,024 $ 11,472 $ 10,552 December 31, 2023 Customer relationships $ 14,669 $ 7,594 $ 7,075 Acquired software and technology 2,148 1,148 1,000 Trade names 641 356 285 Purchased software 1,087 520 567 Capitalized software and other intangibles 3,356 1,073 2,283 Total $ 21,901 $ 10,691 $ 11,210 |
Derivatives and Hedging Instr_2
Derivatives and Hedging Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts of outstanding derivative positions | The aggregate notional amount of the fixed-to-fixed cross-currency rate swap contracts were as follows: (In millions) June 30, 2024 December 31, 2023 Currency Euros 475 400 Singapore Dollars 751 751 Canadian Dollars 253 — The aggregate notional amount of the fixed-to-fixed cross-currency rate swap contracts were as follows: (In millions) June 30, 2024 December 31, 2023 Currency British Pounds 525 525 Euros 157 157 |
Schedule of net investment hedges in accumulated other comprehensive income (loss) | Foreign currency transaction gains (losses), net of income tax, related to net investment hedges that were recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income were as follows: Three Months Ended Six Months Ended (In millions) 2024 2023 2024 2023 Cross-currency rate swap contracts $ — $ (5) $ 16 $ (7) Foreign currency-denominated debt 24 (50) 101 (114) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 contracts designated as cash flow hedges Prepaid expenses and other current assets Level 2 $ 4 $ 2 Cross-currency rate swap contract designated as fair value hedge Prepaid expenses and other current assets Level 2 2 — Cross-currency rate swap contract designated as fair value hedge Other long-term assets Level 2 2 3 Liabilities Cross-currency rate swap contracts designated as net investment hedges Accounts payable and other current liabilities Level 2 $ 18 $ — Cross-currency rate swap contracts designated as fair value hedges Other long-term liabilities Level 2 4 1 Cross-currency rate swap contracts designated as net investment hedges Other long-term liabilities Level 2 22 61 Contingent consideration Accounts payable and other current liabilities Level 3 3 2 Obligation to purchase redeemable noncontrolling interest Accounts payable and other current liabilities Level 3 95 — Contingent debt guarantee Other long-term liabilities Level 3 19 23 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and other current liabilities consisted of the following: (In millions) June 30, 2024 December 31, 2023 Trade accounts payable $ 522 $ 449 Client deposits 972 931 Transferable federal tax credits (see Note 15) 298 804 Accrued compensation and benefits 294 344 Accrued taxes 237 203 Accrued interest 337 298 Accrued payment network fees 251 232 Operating lease liabilities 110 118 Accrued professional fees 92 96 Obligation to purchase redeemable noncontrolling interest (see Note 11) 95 — Other accrued expenses 979 880 Total $ 4,187 $ 4,355 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 December 31, 2023 Short-term and current maturities of long-term debt: Foreign lines of credit $ 794 $ 442 Finance lease and other financing obligations 314 313 Total short-term and current maturities of long-term debt $ 1,108 $ 755 Long-term debt: 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) 664 672 3.200% senior notes due July 2026 2,000 2,000 5.150% senior notes due March 2027 750 — 2.250% senior notes due June 2027 1,000 1,000 1.125% senior notes due July 2027 (Euro-denominated) 535 555 5.450% senior notes due March 2028 900 900 5.375% senior notes due August 2028 700 700 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) 535 555 5.350% senior notes due March 2031 500 — 4.500% senior notes due May 2031 (Euro-denominated) 857 889 3.000% senior notes due July 2031 (British Pound-denominated) 664 672 5.600% senior notes due March 2033 900 900 5.625% senior notes due August 2033 1,300 1,300 5.450% senior notes due March 2034 750 — 4.400% senior notes due July 2049 2,000 2,000 U.S. dollar commercial paper notes 667 418 Euro commercial paper notes 1,273 1,321 Revolving credit facility — 74 Unamortized discount and deferred financing costs (152) (145) Finance lease and other financing obligations 658 652 Total long-term debt $ 24,401 $ 22,363 |
Schedule of short-term debt | The following table provides a summary of the outstanding borrowings and weighted average interest rates of the Company’s foreign lines of credit and other borrowing arrangements by country: Outstanding Borrowings (in millions) Weighted-Average Interest Rate June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Argentina $ 575 $ 208 40.363 % 121.581 % Brazil 105 123 11.612 % 13.500 % Uruguay 50 55 10.277 % 11.125 % Other 64 56 2.825 % 4.912 % Total $ 794 $ 442 31.623 % 63.060 % |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Schedule of redeemable noncontrolling interests activity | The following table presents a summary of the redeemable noncontrolling interest activity during the six months ended June 30: (In millions) 2024 2023 Balance at beginning of period $ 161 $ 161 Distributions paid to redeemable noncontrolling interest (13) (13) Share of income 13 13 Adjustment to estimated redemption value of redeemable noncontrolling interest (66) — Reclassification to current liability (95) — Balance at end of period $ — $ 161 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of stockholders equity | The following tables provide changes in equity during the three and six months ended June 30, 2024 and 2023: 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, 2024 784 198 $ 8 $ 22,861 $ (994) $ 21,179 $ (14,253) $ 622 $ 29,423 Net income (1) 894 8 902 Distributions paid to noncontrolling interests (2) (1) (1) Change in estimated redemption value of redeemable noncontrolling interest (see Note 11) 66 66 Other comprehensive loss (203) (5) (208) Share-based compensation 99 99 Shares issued under stock plans (1) (12) 23 11 Purchases of treasury stock 10 (1,514) (1,514) Balance at June 30, 2024 784 207 $ 8 $ 23,014 $ (1,197) $ 22,073 $ (15,744) $ 624 $ 28,778 (1) The total net income presented in equity for the three months ended June 30, 2024 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interest of $7 million not included in equity. (2) The total distributions presented in equity for the three months ended June 30, 2024 excludes $6 million in distributions paid to redeemable noncontrolling interest 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, 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 interest 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 interest 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, 2023 784 190 $ 8 $ 23,103 $ (783) $ 20,444 $ (12,915) $ 651 $ 30,508 Net income (1) 1,629 19 1,648 Distributions paid to noncontrolling interests (2) (28) (28) Change in estimated redemption value of redeemable noncontrolling interest (see Note 11) 66 66 Other comprehensive loss (414) (18) (432) Share-based compensation 185 185 Shares issued under stock plans (3) (340) 197 (143) Purchases of treasury stock 20 (3,026) (3,026) Balance at June 30, 2024 784 207 $ 8 $ 23,014 $ (1,197) $ 22,073 $ (15,744) $ 624 $ 28,778 (1) The total net income presented in equity for the six months ended June 30, 2024 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interest of $13 million not included in equity. (2) The total distributions presented in equity for the six months ended June 30, 2024 excludes $13 million in distributions paid to redeemable noncontrolling interest 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, 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 interest 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 interest not included in equity. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 Balance at March 31, 2024 $ (75) $ (839) $ (80) $ (994) Other comprehensive income (loss) before reclassifications 1 (190) (16) (205) Amounts reclassified from accumulated other comprehensive loss 2 — — 2 Net current-period other comprehensive income (loss) 3 (190) (16) (203) Balance at June 30, 2024 $ (72) $ (1,029) $ (96) $ (1,197) 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) Six Months Ended June 30, 2024 Balance at December 31, 2023 $ (78) $ (688) $ (17) $ (783) Other comprehensive income (loss) before reclassifications (see Note 1) 2 (341) (79) (418) Amounts reclassified from accumulated other comprehensive loss 4 — — 4 Net current-period other comprehensive income (loss) 6 (341) (79) (414) Balance at June 30, 2024 $ (72) $ (1,029) $ (96) $ (1,197) 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) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 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, 2023 5,419 $ 103.11 3,219 $ 104.09 Granted 2,021 147.87 275 158.53 Forfeited (254) 117.63 (50) 114.35 Vested (2,327) 103.63 (218) 103.54 Units and awards - June 30, 2024 4,859 $ 120.71 3,226 $ 108.08 |
Summary of stock option activity | A summary of stock option activity during the six months ended June 30, 2024 is as follows: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Stock options outstanding - December 31, 2023 3,865 $ 72.36 Granted — — Forfeited (10) 108.15 Exercised (1,994) 57.53 Stock options outstanding - June 30, 2024 1,861 $ 88.05 4.45 $ 113 Stock options exercisable - June 30, 2024 1,812 $ 87.42 4.38 $ 112 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Income tax provision $ 221 $ 181 $ 374 $ 305 Effective income tax rate 19.4 % 20.7 % 18.2 % 19.2 % |
Shares Used in Computing Net _2
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic 582.7 615.4 586.8 621.2 Common stock equivalents 2.7 3.8 3.3 4.1 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted 585.4 619.2 590.1 625.3 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Supplemental cash flow information consisted of the following: Six Months Ended (In millions) 2024 2023 Interest paid $ 502 $ 369 Income taxes paid 1,277 882 Treasury stock purchases settled after the balance sheet date — 3 Software obtained under financing arrangements 96 122 Right-of-use assets obtained in exchange for lease liabilities - operating leases 66 59 Right-of-use assets obtained in exchange for lease liabilities - finance leases 106 93 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Operating results for each segment were as follows: Reportable Segments (In millions) Merchant Financial Corporate Total Three Months Ended June 30, 2024 Processing and services revenue $ 2,132 $ 2,003 $ 5 $ 4,140 Product revenue 278 376 313 967 Total revenue $ 2,410 $ 2,379 $ 318 $ 5,107 Operating income (loss) $ 882 $ 1,093 $ (547) $ 1,428 Three Months Ended June 30, 2023 Processing and services revenue $ 1,940 $ 1,977 $ 7 $ 3,924 Product revenue 266 268 298 832 Total revenue $ 2,206 $ 2,245 $ 305 $ 4,756 Operating income (loss) $ 745 $ 1,028 $ (642) $ 1,131 Six Months Ended June 30, 2024 Processing and services revenue $ 4,142 $ 3,988 $ 10 $ 8,140 Product revenue 521 676 653 1,850 Total revenue $ 4,663 $ 4,664 $ 663 $ 9,990 Operating income (loss) $ 1,651 $ 2,101 $ (1,143) $ 2,609 Six Months Ended June 30, 2023 Processing and services revenue $ 3,667 $ 3,917 $ 13 $ 7,597 Product revenue 535 551 620 1,706 Total revenue $ 4,202 $ 4,468 $ 633 $ 9,303 Operating income (loss) $ 1,337 $ 1,971 $ (1,243) $ 2,065 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents on the consolidated balance sheets | $ 1,195 | $ 1,204 | $ 1,082 | |
Cash and cash equivalents included in settlement assets | 1,606 | 1,756 | 1,768 | |
Other restricted cash | 1 | 3 | 6 | |
Total cash and cash equivalents on the consolidated statements of cash flows | $ 2,802 | $ 2,963 | $ 2,856 | $ 3,192 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Dec. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||||||
Allowance for doubtful accounts | $ 70,000,000 | $ 70,000,000 | $ 86,000,000 | ||||
Accumulated impairment loss | 0 | 0 | |||||
Equity securities without a readily determinable fair value | 157,000,000 | 157,000,000 | 156,000,000 | ||||
Foreign currency translation loss | 18,000,000 | $ 32,000,000 | 53,000,000 | $ 50,000,000 | |||
Defined benefit plan, actuarial gain (loss), immediate recognition as component in net periodic benefit (cost) credit | $ (63,000,000) | ||||||
Forecast | |||||||
Business Acquisition [Line Items] | |||||||
Defined benefit plan, cost of providing special and contractual termination benefits | $ 25,000,000 | ||||||
Pension and other postretirement benefits expense (reversal of expense), noncash | $ 140,000,000 | ||||||
Merchants Utilizing Clover Capital Cash Advance Program | |||||||
Business Acquisition [Line Items] | |||||||
Cash advances | 303,000,000 | 303,000,000 | 281,000,000 | ||||
Allowance for credit loss, current | 12,000,000 | 12,000,000 | 12,000,000 | ||||
Merchant credit losses | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate merchant credit loss expense | 28,000,000 | $ 22,000,000 | 53,000,000 | $ 37,000,000 | |||
Collateral held | 640,000,000 | 640,000,000 | 690,000,000 | ||||
Loss contingency accrual | $ 38,000,000 | $ 38,000,000 | $ 36,000,000 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Prepaid Expenses and Other Current Assets [Line Items] | ||
Prepaid maintenance, postage and insurance | $ 260 | $ 187 |
Other prepaid expenses | 276 | 236 |
Total prepaid expenses | 536 | 423 |
Net income tax receivables | 749 | 534 |
Other current assets | 685 | 737 |
Total other current assets | 2,727 | 1,921 |
Total prepaid expenses and other current assets | 3,263 | 2,344 |
Clover Capital | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Cash advances | 291 | 269 |
Foreign Banks and Alliance Partners | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Cash advances | $ 1,002 | $ 381 |
Basis of Presentation and Sum_7
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Interest expense | $ (294) | $ (237) | $ (565) | $ (447) |
Interest income | 9 | 5 | 19 | 13 |
Interest expense, net | $ (285) | $ (232) | $ (546) | $ (434) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 5,107 | $ 4,756 | $ 9,990 | $ 9,303 |
Operating segments | Merchant Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,410 | 2,206 | 4,663 | 4,202 |
Operating segments | Financial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,379 | 2,245 | 4,664 | 4,468 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 318 | $ 305 | $ 663 | $ 633 |
Geographic Concentration Risk | Non-US | Revenue from Contract with Customer Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of concentration risk | 15% | 14% | 15% | 14% |
Small Business | Operating segments | Merchant Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,604 | $ 1,424 | $ 3,092 | $ 2,709 |
Enterprise | Operating segments | Merchant Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 542 | 495 | 1,005 | 932 |
Processing | Operating segments | Merchant Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 264 | 287 | 566 | 561 |
Digital Payments | Operating segments | Financial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 987 | 911 | 1,907 | 1,784 |
Issuing | Operating segments | Financial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 766 | 730 | 1,527 | 1,461 |
Banking | Operating segments | Financial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 626 | $ 604 | $ 1,230 | $ 1,223 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 828 | $ 754 |
Contract liabilities | $ 1,043 | $ 1,011 |
Revenue Recognition - Revenue R
Revenue Recognition - Revenue Recognized (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized which was included in the contract liability balance | $ 504 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,233 |
Performance obligations expected to be satisfied, expected timing | 6 months |
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 | $ 2,150 |
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 | $ 1,596 |
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 | $ 1,082 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,184 |
Performance obligations expected to be satisfied, expected timing |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Nov. 01, 2023 | Jul. 25, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||||||
Tax expense | $ 221 | $ 181 | $ 374 | $ 305 | |||
Disposal Group, Disposed of by Sale | Financial Reconciliation Business | |||||||
Business Acquisition [Line Items] | |||||||
Net proceeds from sale of businesses and other assets | $ 235 | ||||||
Gain (loss) on disposition of business | $ 172 | ||||||
Tax expense | 48 | ||||||
Disposal group, including discontinued operation, goodwill | 38 | ||||||
Disposal group, including discontinued operation, trade receivable and capitalized software | 15 | ||||||
Disposal group, including discontinued operation, accumulated foreign currency translation loss | $ 10 | ||||||
Skytef and Sled | |||||||
Business Acquisition [Line Items] | |||||||
Payments for acquisitions of businesses | $ 17 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets by Class (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 22,024 | $ 22,024 | $ 21,901 | ||
Accumulated Amortization | 11,472 | 11,472 | 10,691 | ||
Net Book Value | 10,552 | 10,552 | 11,210 | ||
Amortization of intangible assets | 586 | $ 614 | 1,200 | $ 1,200 | |
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 14,550 | 14,550 | 14,669 | ||
Accumulated Amortization | 8,116 | 8,116 | 7,594 | ||
Net Book Value | 6,434 | 6,434 | 7,075 | ||
Acquired software and technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 2,110 | 2,110 | 2,148 | ||
Accumulated Amortization | 1,228 | 1,228 | 1,148 | ||
Net Book Value | 882 | 882 | 1,000 | ||
Trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 638 | 638 | 641 | ||
Accumulated Amortization | 384 | 384 | 356 | ||
Net Book Value | 254 | 254 | 285 | ||
Purchased software | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1,030 | 1,030 | 1,087 | ||
Accumulated Amortization | 489 | 489 | 520 | ||
Net Book Value | 541 | 541 | 567 | ||
Capitalized software and other intangibles | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 3,696 | 3,696 | 3,356 | ||
Accumulated Amortization | 1,255 | 1,255 | 1,073 | ||
Net Book Value | $ 2,441 | $ 2,441 | $ 2,283 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Investments in and Advances to Affiliates [Line Items] | |||||
Investments in unconsolidated affiliates | $ 2,210 | $ 2,210 | $ 2,262 | ||
Equity securities without a readily determinable fair value | 157 | 157 | 156 | ||
Equity securities without readily determinable fair value, upward price adjustment, annual amount | 6 | $ 0 | 27 | $ 0 | |
Banc of America Merchant Services | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Investments in unconsolidated affiliates | $ 1,900 | $ 1,900 | $ 1,900 |
Derivatives and Hedging Instr_3
Derivatives and Hedging Instruments - Narrative (Details) € in Millions, $ in Millions, $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 SGD ($) | Jun. 30, 2024 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 SGD ($) | Dec. 31, 2023 CAD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Estimate of gains (losses) related to foreign currency exchange contracts during the next 12 months | $ 4 | $ 4 | |||||||||
Accumulated other comprehensive loss | 1,197 | 1,197 | $ 783 | ||||||||
Estimated interest expense related to settled interest rate hedge contracts during the next twelve months | 13 | 13 | |||||||||
Foreign currency translation adjustment, tax | 8 | $ (18) | 39 | $ (40) | |||||||
Change in fair value of cross-currency rate swaps | $ 2 | $ 0 | |||||||||
2.250% senior notes due July 2025 (British Pound-denominated) | Senior Notes | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Debt instrument, interest rate | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% | ||||||
Net Investment Hedging | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Derivative, notional amount | € 475 | $ 751 | $ 253 | € 400 | $ 751 | $ 0 | |||||
Foreign currency translation adjustment, tax | $ (8) | $ 18 | $ (39) | $ 40 | |||||||
Foreign currency forward exchange contracts | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Derivative, notional amount | 464 | 464 | 443 | ||||||||
Treasury Lock | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Accumulated other comprehensive loss | $ 108 | $ 108 | $ 116 |
Derivatives and Hedging Instr_4
Derivatives and Hedging Instruments - Schedule of Notional Amount of Cross Currency Rate Swaps (Details) € in Millions, £ in Millions, $ in Millions, $ in Millions | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 SGD ($) | Jun. 30, 2024 CAD ($) | Jun. 30, 2024 GBP (£) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 SGD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 GBP (£) |
Net Investment Hedging | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Notional amount of derivatives | € 475 | $ 751 | $ 253 | € 400 | $ 751 | $ 0 | ||
Fair Value Hedging | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Notional amount of derivatives | € 157 | £ 525 | € 157 | £ 525 |
Derivatives and Hedging Instr_5
Derivatives and Hedging Instruments - 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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cross-currency rate swap contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency translation | $ 0 | $ (5) | $ 16 | $ (7) |
Foreign currency-denominated debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency translation | $ 24 | $ (50) | $ 101 | $ (114) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value On a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Obligation to purchase redeemable noncontrolling interest | $ 95 | $ 0 |
Fair Value, Recurring | Level 2 | Prepaid expenses and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward exchange contracts designated as cash flow hedges | 4 | 2 |
Cross-currency rate swap contract designated as fair value hedge | 2 | 0 |
Fair Value, Recurring | Level 2 | Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swap contract designated as fair value hedge | 2 | 3 |
Fair Value, Recurring | Level 2 | Accounts payable and accrued expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swap contract | 18 | 0 |
Fair Value, Recurring | Level 2 | Other long-term liabilities | Fair Value Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swap contract | 4 | 1 |
Fair Value, Recurring | Level 2 | Other long-term liabilities | Net Investment Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swap contract | 22 | 61 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 3 | 2 |
Obligation to purchase redeemable noncontrolling interest | 95 | 0 |
Contingent debt guarantee | $ 19 | $ 23 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revolving Credit Facility | Line of Credit | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Maximum borrowing capacity | $ 6,000 | $ 6,000 | |||
Revolving Credit Facility | Variable-Rate Revolving Credit Facilities Due April 2027 | Line of Credit | Lending Joint Ventures | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Maximum borrowing capacity | 83 | 83 | |||
Term Loan Facilities | Variable-Rate Term Loan Facilities Due April 2027 | Line of Credit | Lending Joint Ventures | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Maximum borrowing capacity | 432 | 432 | |||
Long-term debt | 19 | 19 | |||
Carrying value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Total debt | 24,500 | 24,500 | $ 22,200 | ||
Level 2 | Fair value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Total debt | 23,600 | 23,600 | 21,600 | ||
Financial Guarantee | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Carrying value of non-contingent liability | 515 | 515 | |||
Financial Guarantee | Lending Joint Ventures | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Carrying value of non-contingent liability | 26 | 26 | $ 31 | ||
Other (expense) income | $ 5 | $ 3 | $ 9 | $ 5 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 522 | $ 449 |
Client deposits | 972 | 931 |
Transferrable federal tax credits | 298 | 804 |
Accrued compensation and benefits | 294 | 344 |
Accrued taxes | 237 | 203 |
Accrued interest | 337 | 298 |
Accrued payment network fees | 251 | 232 |
Operating lease liabilities | 110 | 118 |
Accrued professional fees | 92 | 96 |
Obligation to purchase redeemable noncontrolling interest | 95 | 0 |
Other accrued expenses | 979 | 880 |
Total | $ 4,187 | $ 4,355 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Jun. 30, 2024 | Mar. 04, 2024 | Dec. 31, 2023 |
Short-term and current maturities of long-term debt: | |||
Total short-term and current maturities of long-term debt | $ 1,108,000,000 | $ 755,000,000 | |
Finance lease and other financing obligations | 314,000,000 | 313,000,000 | |
Long-term debt: | |||
Unamortized discount and deferred financing costs | (152,000,000) | (145,000,000) | |
Finance lease and other financing obligations | 658,000,000 | 652,000,000 | |
Total long-term debt | $ 24,401,000,000 | 22,363,000,000 | |
Senior Notes | 2.750% senior notes due July 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.75% | 2.75% | |
Long-term debt: | |||
Long-term debt | $ 2,000,000,000 | 2,000,000,000 | |
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 | $ 900,000,000 | 900,000,000 | |
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 | $ 664,000,000 | 672,000,000 | |
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 | $ 2,000,000,000 | 2,000,000,000 | |
Senior Notes | $5.150% senior notes due March 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.15% | 5.15% | |
Long-term debt: | |||
Long-term debt | $ 750,000,000 | 0 | |
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 | $ 1,000,000,000 | 1,000,000,000 | |
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 | $ 535,000,000 | 555,000,000 | |
Senior Notes | 5.450% senior notes due March 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.45% | ||
Long-term debt: | |||
Long-term debt | $ 900,000,000 | 900,000,000 | |
Senior Notes | 5.375% senior notes due August 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.375% | ||
Long-term debt: | |||
Long-term debt | $ 700,000,000 | 700,000,000 | |
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 | $ 1,000,000,000 | 1,000,000,000 | |
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 | $ 3,000,000,000 | 3,000,000,000 | |
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 | $ 1,000,000,000 | 1,000,000,000 | |
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 | $ 535,000,000 | 555,000,000 | |
Senior Notes | $5.350% senior notes due March 2031 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.35% | 5.35% | |
Long-term debt: | |||
Long-term debt | $ 500,000,000 | 0 | |
Senior Notes | 4.500% senior notes due May 2031 (Euro-denominated) | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 4.50% | ||
Long-term debt: | |||
Long-term debt | $ 857,000,000 | 889,000,000 | |
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 | $ 664,000,000 | 672,000,000 | |
Senior Notes | 5.600% senior notes due March 2033 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.60% | ||
Long-term debt: | |||
Long-term debt | $ 900,000,000 | 900,000,000 | |
Senior Notes | 5.625% senior notes due August 2033 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.625% | ||
Long-term debt: | |||
Long-term debt | $ 1,300,000,000 | 1,300,000,000 | |
Senior Notes | $5.450% senior notes due March 2034 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.45% | 5.45% | |
Long-term debt: | |||
Long-term debt | $ 750,000,000 | 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 | $ 2,000,000,000 | 2,000,000,000 | |
Commercial Paper | U.S. dollar commercial paper notes | |||
Long-term debt: | |||
Long-term debt | 667,000,000 | 418,000,000 | |
Commercial Paper | Euro commercial paper notes | |||
Long-term debt: | |||
Long-term debt | 1,273,000,000 | 1,321,000,000 | |
Line of Credit | Revolving credit facility | |||
Long-term debt: | |||
Long-term debt | 0 | 74,000,000 | |
Foreign lines of credit | |||
Short-term and current maturities of long-term debt: | |||
Total short-term and current maturities of long-term debt | $ 794,000,000 | $ 442,000,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) R$ in Millions | 1 Months Ended | 6 Months Ended | |||
Feb. 29, 2024 | Jun. 30, 2024 USD ($) | Jun. 30, 2024 BRL (R$) | Mar. 04, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Foreign lines of credit | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 93,000,000 | R$ 514 | |||
Weighted-Average Interest Rate | 31.623% | 31.623% | 63.06% | ||
Basis spread on variable rate | 1.25% | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 2,000,000,000 | ||||
Senior Notes | $5.150% senior notes due March 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 750,000,000 | ||||
Debt instrument, interest rate | 5.15% | 5.15% | 5.15% | ||
Outstanding borrowings | $ 750,000,000 | $ 0 | |||
Senior Notes | $5.350% senior notes due March 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
Debt instrument, interest rate | 5.35% | 5.35% | 5.35% | ||
Outstanding borrowings | $ 500,000,000 | 0 | |||
Senior Notes | $5.450% senior notes due March 2034 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 750,000,000 | ||||
Debt instrument, interest rate | 5.45% | 5.45% | 5.45% | ||
Outstanding borrowings | $ 750,000,000 | 0 | |||
Senior Notes | 2.750% senior notes due July 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 2.75% | 2.75% | 2.75% | ||
Outstanding borrowings | $ 2,000,000,000 | 2,000,000,000 | |||
Senior Notes | 3.850% senior notes due June 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.85% | 3.85% | |||
Outstanding borrowings | $ 900,000,000 | 900,000,000 | |||
Commercial Paper | U.S. dollar commercial paper notes | |||||
Debt Instrument [Line Items] | |||||
Debt maturities (in days) | 397 days | ||||
Outstanding borrowings | $ 667,000,000 | $ 418,000,000 | |||
Weighted-Average Interest Rate | 5.56% | 5.56% | 5.454% | ||
Commercial Paper | Euro commercial paper notes | |||||
Debt Instrument [Line Items] | |||||
Debt maturities (in days) | 183 days | ||||
Outstanding borrowings | $ 1,273,000,000 | $ 1,321,000,000 | |||
Weighted-Average Interest Rate | 3.843% | 3.843% | 4.029% | ||
Revolving credit facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 0 | $ 74,000,000 | |||
Weighted-Average Interest Rate | 6.45% | ||||
Maximum borrowing capacity | $ 6,000,000,000 | ||||
Outstanding borrowings | $ 74,000,000 | ||||
Debt instrument, covenant, debt-to-EBITDA ratio | 3.75 | 3.75 |
Debt - Schedule of Foreign Line
Debt - Schedule of Foreign Lines of Credit by Country (Details) - Foreign lines of credit - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 794 | $ 442 |
Weighted-Average Interest Rate | 31.623% | 63.06% |
Argentina | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 575 | $ 208 |
Weighted-Average Interest Rate | 40.363% | 121.581% |
Brazil | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 105 | $ 123 |
Weighted-Average Interest Rate | 11.612% | 13.50% |
Uruguay | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 50 | $ 55 |
Weighted-Average Interest Rate | 10.277% | 11.125% |
Other | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 64 | $ 56 |
Weighted-Average Interest Rate | 2.825% | 4.912% |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest - Narrative (Details) | Jun. 30, 2024 noncontrolling_interest |
First Data Joint Venture | |
Noncontrolling Interest [Line Items] | |
Ownership percentage by noncontrolling owner | 1% |
First Data | |
Noncontrolling Interest [Line Items] | |
Number of redeemable noncontrolling interests | 1 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at beginning of period | $ 161 | $ 161 | ||
Distributions paid to redeemable noncontrolling interest | $ (6) | $ (5) | (13) | (13) |
Share of income | 13 | 13 | ||
Adjustment to estimated redemption value of redeemable noncontrolling interest | (66) | (66) | 0 | |
Reclassification to current liability | (95) | 0 | ||
Balance at end of period | $ 0 | $ 161 | $ 0 | $ 161 |
Equity (Details)
Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Treasury shares balance at beginning of period (in shares) | 190 | |||
Balance at beginning of period | $ 29,423 | $ 30,794 | $ 30,508 | $ 31,527 |
Net income (loss) | 902 | 689 | 1,648 | 1,258 |
Distributions paid to noncontrolling interests | (1) | (1) | (28) | (1) |
Change in estimated redemption value of redeemable noncontrolling interest (see Note 11) | 66 | 66 | 0 | |
Other comprehensive income (loss) | (208) | 157 | (432) | 304 |
Share-based compensation | 99 | 106 | 185 | 199 |
Shares issued under stock plans | 11 | (19) | (143) | (78) |
Purchases of treasury stock | $ (1,514) | (1,010) | $ (3,026) | (2,493) |
Treasury shares balance at end of period (in shares) | 207 | 207 | ||
Balance at end of period | $ 28,778 | 30,716 | $ 28,778 | 30,716 |
Net income attributable to redeemable noncontrolling interest | 7 | 6 | 13 | 13 |
Distributions paid to redeemable noncontrolling interests | $ 6 | $ 5 | $ 13 | $ 13 |
Common Shares | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common shares balance at beginning of period (in shares) | 784 | 784 | 784 | 784 |
Balance at beginning of period | $ 8 | $ 8 | $ 8 | $ 8 |
Common shares balance at end of period (in shares) | 784 | 784 | 784 | 784 |
Balance at end of period | $ 8 | $ 8 | $ 8 | $ 8 |
Treasury Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Treasury shares balance at beginning of period (in shares) | 198 | 165 | 190 | 154 |
Balance at beginning of period | $ (14,253) | $ (9,762) | $ (12,915) | $ (8,378) |
Shares issued under stock plans (in shares) | (1) | (1) | (3) | (3) |
Shares issued under stock plans | $ 23 | $ 45 | $ 197 | $ 144 |
Purchases of treasury stock (in shares) | 10 | 9 | 20 | 22 |
Purchases of treasury stock | $ (1,514) | $ (1,010) | $ (3,026) | $ (2,493) |
Treasury shares balance at end of period (in shares) | 207 | 173 | 207 | 173 |
Balance at end of period | $ (15,744) | $ (10,727) | $ (15,744) | $ (10,727) |
Additional Paid-In Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 22,861 | 22,946 | 23,103 | 23,011 |
Change in estimated redemption value of redeemable noncontrolling interest (see Note 11) | 66 | 66 | ||
Share-based compensation | 99 | 106 | 185 | 199 |
Shares issued under stock plans | (12) | (64) | (340) | (222) |
Balance at end of period | 23,014 | 22,988 | 23,014 | 22,988 |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | (994) | (1,054) | (783) | (1,189) |
Other comprehensive income (loss) | (203) | 154 | (414) | 289 |
Balance at end of period | (1,197) | (900) | (1,197) | (900) |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 21,179 | 17,939 | 20,444 | 17,376 |
Net income (loss) | 894 | 683 | 1,629 | 1,246 |
Balance at end of period | 22,073 | 18,622 | 22,073 | 18,622 |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 622 | 717 | 651 | 699 |
Net income (loss) | 8 | 6 | 19 | 12 |
Distributions paid to noncontrolling interests | (1) | (1) | (28) | (1) |
Other comprehensive income (loss) | (5) | 3 | (18) | 15 |
Balance at end of period | $ 624 | $ 725 | $ 624 | $ 725 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 29,423 | $ 30,794 | $ 30,508 | $ 31,527 |
Total other comprehensive (loss) income | (208) | 157 | (432) | 304 |
Balance at end of period | 28,778 | 30,716 | 28,778 | 30,716 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (994) | (1,054) | (783) | (1,189) |
Other comprehensive income (loss) before reclassifications | (205) | 151 | (418) | 283 |
Amounts reclassified from accumulated other comprehensive loss | 2 | 3 | 4 | 6 |
Total other comprehensive (loss) income | (203) | 154 | (414) | 289 |
Balance at end of period | (1,197) | (900) | (1,197) | (900) |
Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (75) | (95) | (78) | (103) |
Other comprehensive income (loss) before reclassifications | 1 | 1 | 2 | 6 |
Amounts reclassified from accumulated other comprehensive loss | 2 | 3 | 4 | 6 |
Total other comprehensive (loss) income | 3 | 4 | 6 | 12 |
Balance at end of period | (72) | (91) | (72) | (91) |
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (839) | (939) | (688) | (1,064) |
Other comprehensive income (loss) before reclassifications | (190) | 150 | (341) | 275 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | (190) | 150 | (341) | 275 |
Balance at end of period | (1,029) | (789) | (1,029) | (789) |
Pension Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (80) | (20) | (17) | (22) |
Other comprehensive income (loss) before reclassifications | (16) | 0 | (79) | 2 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | (16) | 0 | (79) | 2 |
Balance at end of period | $ (96) | $ (20) | $ (96) | $ (20) |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 99 | $ 106 | $ 185 | $ 199 |
Unrecognized compensation cost | $ 464 | $ 464 | ||
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, 2024 $ / shares shares | |
Restricted Stock Units and Awards | |
Shares (In thousands) | |
Balance at beginning of period (in shares) | shares | 5,419 |
Granted (in shares) | shares | 2,021 |
Forfeited (in shares) | shares | (254) |
Vested (in shares) | shares | (2,327) |
Balance at end of period (in shares) | shares | 4,859 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 103.11 |
Granted (in dollars per share) | $ / shares | 147.87 |
Forfeited (in dollars per share) | $ / shares | 117.63 |
Vested (in dollars per share) | $ / shares | 103.63 |
Balance at end of period (in dollars per share) | $ / shares | $ 120.71 |
Performance Share Units | |
Shares (In thousands) | |
Balance at beginning of period (in shares) | shares | 3,219 |
Granted (in shares) | shares | 275 |
Forfeited (in shares) | shares | (50) |
Vested (in shares) | shares | (218) |
Balance at end of period (in shares) | shares | 3,226 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 104.09 |
Granted (in dollars per share) | $ / shares | 158.53 |
Forfeited (in dollars per share) | $ / shares | 114.35 |
Vested (in dollars per share) | $ / shares | 103.54 |
Balance at end of period (in dollars per share) | $ / shares | $ 108.08 |
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, 2024 USD ($) $ / shares shares | |
Shares | |
Stock options outstanding - balance at beginning of period (in shares) | shares | 3,865 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (10) |
Exercised (in shares) | shares | (1,994) |
Stock options outstanding - balance at end of period (in shares) | shares | 1,861 |
Stock options exercisable (in shares) | shares | 1,812 |
Weighted-Average Exercise Price | |
Stock options outstanding - balance at beginning of period (in dollars per shares) | $ / shares | $ 72.36 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 108.15 |
Exercised (in dollars per share) | $ / shares | 57.53 |
Stock options outstanding - balance at end of period (in dollars per shares) | $ / shares | 88.05 |
Stock options exercisable (in dollars per share) | $ / shares | $ 87.42 |
Weighted-Average Remaining Contractual Term (Years) | |
Stock options outstanding (in years) | 4 years 5 months 12 days |
Stock options exercisable (in years) | 4 years 4 months 17 days |
Aggregate Intrinsic Value (In millions) | |
Stock options outstanding | $ | $ 113 |
Stock options exercisable | $ | $ 112 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 221 | $ 181 | $ 374 | $ 305 |
Effective income tax rate | 19.40% | 20.70% | 18.20% | 19.20% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 19.40% | 20.70% | 18.20% | 19.20% |
Unrecognized tax benefits | $ 89 | $ 89 | ||
Decrease in unrecognized tax benefits reasonably possible | $ 5 | $ 5 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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) | 582.7 | 615.4 | 586.8 | 621.2 |
Common stock equivalents (in shares) | 2.7 | 3.8 | 3.3 | 4.1 |
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – diluted (in shares) | 585.4 | 619.2 | 590.1 | 625.3 |
Shares Used in Computing Net _4
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Stock options excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive (in shares) | 66 | 911 | 51 | 984 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 502 | $ 369 |
Income taxes paid | 1,277 | 882 |
Treasury stock purchases settled after the balance sheet date | 0 | 3 |
Software obtained under financing arrangements | 96 | 122 |
Right-of-use assets obtained in exchange for lease liabilities - operating leases | 66 | 59 |
Right-of-use assets obtained in exchange for lease liabilities - finance leases | $ 106 | $ 93 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Loss Contingencies [Line Items] | ||
Subscriber funds | $ 733 | $ 3,500 |
Subsidiary Merchant Matters | Minimum | ||
Loss Contingencies [Line Items] | ||
Estimated range of exposure | 0 | |
Subsidiary Merchant Matters | Maximum | ||
Loss Contingencies [Line Items] | ||
Estimated range of exposure | 100 | |
First Data | First Data Subsidiary Merchant Matters | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ 38 | $ 32 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||||
Processing, administrative, and other fees | $ 5,107 | $ 4,756 | $ 9,990 | $ 9,303 | |
Amounts due from unconsolidated merchant alliances | 3,744 | 3,744 | $ 3,582 | ||
Affiliated entities | |||||
Related Party Transaction [Line Items] | |||||
Processing, administrative, and other fees | 37 | $ 45 | 77 | $ 91 | |
Amounts due from unconsolidated merchant alliances | $ 31 | $ 31 | $ 38 |
Business Segment Information -
Business Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 5,107 | $ 4,756 | $ 9,990 | $ 9,303 | |
Operating income (loss) | 1,428 | 1,131 | 2,609 | 2,065 | |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 318 | 305 | 663 | 633 | |
Operating income (loss) | (547) | (642) | (1,143) | (1,243) | |
Merchant Segment | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,410 | 2,206 | 4,663 | 4,202 | |
Operating income (loss) | 882 | 745 | 1,651 | 1,337 | |
Financial Segment | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,379 | 2,245 | 4,664 | 4,468 | |
Operating income (loss) | 1,093 | 1,028 | 2,101 | 1,971 | |
Processing and services revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | [1] | 4,140 | 3,924 | 8,140 | 7,597 |
Processing and services revenue | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 5 | 7 | 10 | 13 | |
Processing and services revenue | Merchant Segment | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,132 | 1,940 | 4,142 | 3,667 | |
Processing and services revenue | Financial Segment | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,003 | 1,977 | 3,988 | 3,917 | |
Product revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 967 | 832 | 1,850 | 1,706 | |
Product revenue | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 313 | 298 | 653 | 620 | |
Product revenue | Merchant Segment | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 278 | 266 | 521 | 535 | |
Product revenue | Financial Segment | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 376 | $ 268 | $ 676 | $ 551 | |
[1] Includes processing and other fees charged to related party investments accounted for under the equity method of $36 million and $45 million for the three months ended June 30, 2024 and 2023, respectively, and $76 million and $91 million for the six months ended June 30, 2024 and 2023, respectively (see Note 19). |