Statement Of Income Alternative
Statement Of Income Alternative (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Revenues: | |||
Processing and services | $3,329 | $3,464 | $2,448 |
Product | 748 | 1,123 | 1,229 |
Total revenues | 4,077 | 4,587 | 3,677 |
Expenses: | |||
Cost of processing and services | 1,844 | 1,949 | 1,449 |
Cost of product | 536 | 917 | 979 |
Selling, general and administrative | 751 | 813 | 513 |
Total expenses | 3,131 | 3,679 | 2,941 |
Operating income | 946 | 908 | 736 |
Interest expense | (220) | (260) | (76) |
Interest income | 8 | 13 | 7 |
Loss on sale of businesses | 0 | (21) | 0 |
Income from continuing operations before income taxes and income from investment in unconsolidated affiliate | 734 | 640 | 667 |
Income tax provision | (273) | (288) | (255) |
Income from investment in unconsolidated affiliate, net of income taxes | 12 | 6 | 0 |
Income from continuing operations | 473 | 358 | 412 |
Income from discontinued operations, net of income taxes | 3 | 211 | 27 |
Net income | $476 | $569 | $439 |
Net income per share-basic: | |||
Continuing operations | 3.06 | 2.21 | 2.47 |
Discontinued operations | 0.02 | 1.3 | 0.16 |
Total | 3.08 | 3.51 | 2.64 |
Net income per share-diluted: | |||
Continuing operations | 3.04 | 2.2 | 2.44 |
Discontinued operations | 0.02 | 1.29 | 0.16 |
Total | 3.06 | 3.49 | 2.6 |
Shares used in computing net income per share: | |||
Basic | 154.5 | 162 | 166.6 |
Diluted | 155.4 | 163.1 | 168.8 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
ASSETS | ||
Cash and cash equivalents | $363 | $230 |
Trade accounts receivable, less allowance for doubtful accounts | 554 | 591 |
Deferred income taxes | 46 | 71 |
Prepaid expenses and other current assets | 314 | 294 |
Assets of discontinued operations held for sale | 0 | 1,016 |
Total current assets | 1,277 | 2,202 |
Property and equipment, net | 293 | 298 |
Intangible assets, net | 2,006 | 2,091 |
Goodwill | 4,371 | 4,387 |
Other long-term assets | 431 | 353 |
Total assets | 8,378 | 9,331 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 565 | 606 |
Deferred revenues | 337 | 338 |
Current maturities of long-term debt | 259 | 255 |
Liabilities of discontinued operations held for sale | 0 | 841 |
Total current liabilities | 1,161 | 2,040 |
Long-term debt | 3,382 | 3,850 |
Deferred income taxes | 580 | 537 |
Other long-term liabilities | 229 | 310 |
Total liabilities | 5,352 | 6,737 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, no par value: 25.0 million shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value: 450.0 million shares authorized; 197.9 million shares issued | 2 | 2 |
Additional paid-in capital | 727 | 706 |
Accumulated other comprehensive loss | (69) | (120) |
Accumulated earnings | 4,371 | 3,895 |
Treasury stock, at cost, 44.7 million and 42.0 million shares | (2,005) | (1,889) |
Total shareholders' equity | 3,026 | 2,594 |
Total liabilities and shareholders' equity | $8,378 | $9,331 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
Share data in Millions, except Per Share data | Dec. 31, 2009
| Dec. 31, 2008
|
Preferred stock, no par value | $0 | $0 |
Preferred stock, shares authorized | 25 | 25 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 450 | 450 |
Common stock, shares issued | 197.9 | 197.9 |
Treasury stock, shares | 44.7 | 42 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | ||||||
In Millions | Common Stock
| Additional Paid-In Capital
| Accumulated Other Comprehensive Loss
| Accumulated Earnings
| Treasury Stock
| Total
|
Beginning Balance at Dec. 31, 2006 | $2 | $700 | $0 | $2,887 | ($1,163) | |
Beginning Balance (in shares) at Dec. 31, 2006 | 198 | 27 | ||||
Net income | 439 | 439 | ||||
Foreign currency translation | 5 | |||||
Fair market value adjustment on cash flow hedges, net of tax | (46) | |||||
Share-based compensation | 26 | |||||
Shares issued under stock plans including income tax benefits (in shares) | (2) | |||||
Shares issued under stock plans including income tax benefits | (26) | 103 | ||||
Purchase of treasury stock (in shares) | 8 | |||||
Purchase of treasury stock | (460) | |||||
Ending Balance (in shares) at Dec. 31, 2007 | 198 | 33 | ||||
Ending Balance at Dec. 31, 2007 | 2 | 700 | (41) | 3,326 | (1,520) | |
Net income | 569 | 569 | ||||
Foreign currency translation | (14) | |||||
Unrealized loss on investments, net of tax | (5) | |||||
Fair market value adjustment on cash flow hedges, net of tax | (71) | |||||
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of tax | 11 | |||||
Share-based compensation | 34 | |||||
Shares issued under stock plans including income tax benefits (in shares) | (2) | |||||
Shares issued under stock plans including income tax benefits | (28) | 72 | ||||
Purchase of treasury stock (in shares) | 11 | |||||
Purchase of treasury stock | (441) | |||||
Ending Balance (in shares) at Dec. 31, 2008 | 198 | 42 | ||||
Ending Balance at Dec. 31, 2008 | 2 | 706 | (120) | 3,895 | (1,889) | 2,594 |
Net income | 476 | 476 | ||||
Foreign currency translation | 10 | |||||
Reclassification adjustment for net realized losses on investments included in income, net of tax | 3 | |||||
Fair market value adjustment on cash flow hedges, net of tax | (2) | |||||
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of tax | 40 | |||||
Share-based compensation | 36 | |||||
Shares issued under stock plans including income tax benefits (in shares) | (1) | |||||
Shares issued under stock plans including income tax benefits | (15) | 62 | ||||
Purchase of treasury stock (in shares) | 4 | |||||
Purchase of treasury stock | (178) | |||||
Ending Balance (in shares) at Dec. 31, 2009 | 198 | 45 | ||||
Ending Balance at Dec. 31, 2009 | $2 | $727 | ($69) | $4,371 | ($2,005) | $3,026 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Cash flows from operating activities: | |||
Net income | $476 | $569 | $439 |
Adjustment for discontinued operations | (3) | (211) | (27) |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||
Depreciation and other amortization | 188 | 200 | 143 |
Amortization of acquisition-related intangible assets | 145 | 150 | 33 |
Share-based compensation | 36 | 34 | 23 |
Deferred income taxes | 64 | (1) | 21 |
Loss on sale of businesses | 0 | 21 | 0 |
Settlement of interest rate hedge contracts | 0 | 0 | (30) |
Other non-cash items | (13) | (8) | (12) |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | |||
Trade accounts receivable | 44 | (39) | (41) |
Prepaid expenses and other assets | (9) | (4) | (32) |
Accounts payable and other liabilities | (71) | 44 | 22 |
Deferred revenues | (7) | 11 | 8 |
Net cash provided by operating activities from continuing operations | 850 | 766 | 547 |
Cash flows from investing activities: | |||
Capital expenditures, including capitalization of software costs | (198) | (198) | (152) |
Advances to unconsolidated affiliate | (57) | 0 | 0 |
Payment for acquisitions of businesses, net of cash acquired | 0 | (85) | (4,333) |
Proceeds from sale of businesses, net of cash sold and expenses paid | 0 | 497 | 0 |
Other investing activities | 7 | (9) | 19 |
Net cash (used in) provided by investing activities from continuing operations | (248) | 205 | (4,466) |
Cash flows from financing activities: | |||
(Repayments of) proceeds from revolving credit facility, net | (100) | (740) | 285 |
Repayments of long-term debt | (375) | (563) | (71) |
Proceeds from long-term debt | 0 | 0 | 4,248 |
Issuance of common stock and treasury stock | 45 | 37 | 50 |
Purchases of treasury stock | (175) | (441) | (469) |
Other financing activities | 4 | 2 | (9) |
Net cash (used in) provided by financing activities from continuing operations | (601) | (1,705) | 4,034 |
Net change in cash and cash equivalents from continuing operations | 1 | (734) | 115 |
Net cash transactions transferred from discontinued operations | 132 | 669 | 65 |
Beginning balance | 230 | 295 | 115 |
Ending balance | 363 | 230 | 295 |
Discontinued operations cash flow information: | |||
Net cash (used in) provided by operating activities | (6) | (312) | 116 |
Net cash provided by investing activities | 921 | 833 | 111 |
Net cash (used in) provided by financing activities | (821) | 35 | (68) |
Net change in cash and cash equivalents from discontinued operations | 94 | 556 | 159 |
Net cash transactions transferred to continuing operations | (132) | (669) | (65) |
Beginning balance-discontinued operations | 38 | 151 | 57 |
Ending balance-discontinued operations | $0 | $38 | $151 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Description of the Business Fiserv, Inc. and its subsidiaries (collectively, the Company) provide integrated information management and electronic commerce systems and services, including transaction processing, electronic bill payment and presentment, business process outsourcing, document distribution services, and software and systems solutions. The Companys operations are primarily in the United States and are comprised of the Financial Institution Services (Financial) segment, Payments and Industry Products (Payments) segment and Corporate and Other segment. The Financial segment provides banks, thrifts and credit unions with account processing services, item processing services, loan origination and servicing products, cash management and consulting services, and other products and services that support numerous types of financial transactions. The Payments segment primarily provides electronic bill payment and settlement, electronic funds transfer, and debit processing products and services to meet the electronic transaction processing needs of the financial services industry. The businesses in this segment also provide card and print personalization services, Internet banking, investment account processing services for separately managed accounts, and fraud and risk management products and services. The Corporate and Other segment primarily consists of unallocated corporate overhead expenses, amortization of acquisition-related intangible assets and intercompany eliminations. As discussed in Note 3, in 2009, the Company disposed of several businesses, and the financial results of these dispositions are reported as discontinued operations for all periods presented. As discussed in Note 4, in 2008, the Company completed the sale of a 51% interest in substantially all of the businesses in the Insurance Services segment. Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and all 100% owned subsidiaries. Investments in less than 50% owned affiliates in which the Company has significant influence are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ materially from those estimates. New Accounting Pronouncements In May 2009, the Financial Accounting Standards Board (FASB) issued new accounting guidance on subsequent events effective for interim and annual periods ending after June15, 2009. The new guidance establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The adoption of this new gui |
Acquisitions
Acquisitions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Acquisitions | 2. Acquisitions The Company did not complete an acquisition in 2009 after completing three and four acquisitions in 2008 and 2007, respectively, which were not material except for the December3, 2007 acquisition of CheckFree Corporation (CheckFree), a leading provider of electronic commerce services and products, including electronic bill payment and Internet banking. The $4.4 billion cash acquisition of CheckFree has enabled the Company to expand its client relationships with a leading platform in the growing electronic bill payment sector. The combination has enabled the Company to deliver a wider range of integrated product offerings, created new opportunities for growth, enhanced efficiency, and brought new products and services to market. The results of operations of all acquired businesses have been included in the accompanying consolidated statements of income from the dates of acquisition. |
Dispositions
Dispositions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Dispositions | 3. Dispositions Summarized financial information for discontinued operations was as follows for the years ended December31: (In millions) 2009 2008 2007 Total revenues $ 147 $ 286 $ 1,344 (Loss) income before income taxes (35 ) (29 ) 44 Income tax benefit (provision) 13 11 (17 ) Gain on sale, net of income taxes 25 229 Income from discontinued operations $ 3 $ 211 $ 27 Assets and liabilities of discontinued operations held for sale were as follows at December31, 2008 (in millions): Cash and cash equivalents $ 38 Trade accounts receivable, net 20 Mortgage-backed securities and other investments 891 Intangible assets, net 54 Other assets 13 Assets of discontinued operations held for sale $ 1,016 Accounts payable and other liabilities $ 12 Retirement account deposits 829 Liabilities of discontinued operations held for sale $ 841 Fiserv Health On January10, 2008, the Company completed the sale of a majority of its health businesses to UnitedHealthcare Services, Inc. for total cash proceeds of $735 million. In 2008, the Company recognized an after-tax gain on sale of $100 million, including income taxes of $220 million, for this transaction. Fiserv ISS On February4, 2008, the Company completed the sale of Fiserv Trust Company and the accounts of the Companys institutional retirement plan and advisor services operations to TD AMERITRADE Online Holdings, Inc. (TD) for $273 million in cash at closing. In 2008, the Company recognized an after-tax gain on sale of $130 million, including income taxes of $70 million, for this transaction. In 2009, the Company recognized an additional after-tax gain of $25 million, including income taxes of $15 million, with respect to the final contingent purchase price payment it received from TD. After obtaining the necessary regulatory approval in 2009, the Company completed the sale of the remaining operating assets of its investment support services business to Robert Beriault Holdings, Inc., an entity controlled by the president of that business, for net book value. Other In 2009, 2008 and 2007, the Company completed the sale of three lending services businesses in its Financial segment and two insurance businesses which did not result in a significant net gain or loss. |
Investment in and Advances to U
Investment in and Advances to Unconsolidated Affiliate | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Investment in and Advances to Unconsolidated Affiliate | 4. Investment in and Advances to Unconsolidated Affiliate On July14, 2008, the Company completed the sale of a 51% interest in substantially all of the businesses inits Insurance segment (Fiserv Insurance) to Trident IV, LP. The Company recognized an after-tax loss of $0.34per share on the sale. This loss on sale was comprised of a pre-tax loss of $21 million and income tax expense of $34 million which was incurred on sale due to a significantly lower tax basis in the stock compared to the book basis of the net assets sold (see Note 6). The Company received net cash proceeds of $497 million, net of cash sold and transaction expenses, and a $30 million note due in 2018. The Companys share of the net income of Fiserv Insurance (n/k/a StoneRiver, Inc. or StoneRiver) is reported as income from investment in unconsolidated affiliate, and the revenues and expenses of StoneRiver after July14, 2008 are not included in the Companys consolidated statements of income. The Companys consolidated financial statements for all periods prior to July14, 2008 include the revenues, expenses and cash flows of Fiserv Insurance. In July 2009, the Company loaned StoneRiver $67 million, with interest payable quarterly and the principal due in 2013. In December 2009, StoneRiver repaid $10 million of this loan. The Companys investment in and advances to StoneRiver, totaling $281 million and $211 million at December31, 2009 and 2008, respectively, are reported within other long-term assets in the consolidated balance sheets. |
Long-Term Debt
Long-Term Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Long-Term Debt | 5. Long-Term Debt The Companys outstanding long-term debt was as follows at December31: (In millions) 2009 2008 Senior term loan $ 1,880 $ 2,250 Senior notes 1,748 1,748 Revolving credit facility 100 Other borrowings 13 7 Total debt 3,641 4,105 Less: current maturities (259 ) (255 ) Long-term debt $ 3,382 $ 3,850 The estimated fair value of total debt was $3.8 billion and $3.9 billion at December31, 2009 and 2008, respectively. Annual principal payments required under the terms of the long-term debt agreements were as follows at December31, 2009 (in millions): Years ending December31, 2010 $ 259 2011 378 2012 2,502 2013 2 2014 Thereafter 500 Total $ 3,641 Senior Term Loan In December 2007, the Company entered into an unsecured senior term loan facility with a syndicate of banks. Term loan borrowings under this facility bear interest at a variable rate based on LIBOR plus a specified margin or the banks base rate and mature in November 2012. Principal payments of $255 million and $375 million are due in December 2010 and 2011, respectively, and the remaining principal of $1.25 billion is due in November 2012. The weighted-average variable interest rate on the term loan borrowings was 0.9% at December31, 2009. The term loan facility contains various restrictions and covenants substantially similar to those contained in the revolving credit facility described below. Senior Notes In November 2007, the Company issued $1.25 billion of 6.125% senior notes due in November 2012 and $500 million of 6.8% senior notes due in November 2017, which pay interest at the stated rate on May20 and November20 of each year. The interest rates applicable to these notes are subject to an increase of up to two percent in the event that the Companys credit rating is downgraded below investment grade. The indenture governing the senior notes contains covenants that, among other matters, limit: the Companys ability to consolidate or merge into, or convey, transfer or lease all or substantially all of its properties and assets to, another person; the Companys and certain of its subsidiaries ability to create or assume liens; and the Companys and certain of its subsidiaries ability to engage in sale and leaseback transactions. Revolving Credit Facility The Company maintains a $900 million unsecured revolving credit facility with a syndicate of banks. The facility bears interest at a variable rate based on LIBOR plus a specified margin or the banks base rate. There are no significant commitment fees or compensating balance requirements. The revolving credit facility, as amended, contains various restrictions and covenants that require the Company, among other things, to limit its consolidated indebtedness to no more than three and one-half times consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments, and to maintain consolidated net earnings |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes | 6. Income Taxes A reconciliation of the statutory federal income tax rate to the Companys effective income tax rate for continuing operations is as follows for the years ended December31: 2009 2008 2007 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal effect 2.9 % 3.8 % 3.1 % Basis difference on sale of businesses 6.6 % Other, net (0.7 %) (0.5 %) 0.1 % Effective income tax rate 37.2 % 44.9 % 38.2 % The income tax provision for continuing operations was as follows: (In millions) 2009 2008 2007 Current: Federal $ 176 $ 243 $ 198 State 29 43 31 Foreign 4 3 5 209 289 234 Deferred: Federal 57 (2 ) 25 State 7 2 2 Foreign (1 ) (6 ) 64 (1 ) 21 Income tax provision $ 273 $ 288 $ 255 Significant components of deferred tax assets and liabilities consisted of the following at December31: (In millions) 2009 2008 Accrued expenses $ 71 $ 69 Interest rate hedge contracts 45 59 Share-based compensation 30 21 Net operating loss and credit carry-forwards 33 49 Other 21 44 Total deferred tax assets 200 242 Software development costs (67 ) (54 ) Intangible assets (623 ) (631 ) Property and equipment (27 ) (10 ) Other (17 ) (13 ) Total deferred tax liabilities (734 ) (708 ) Total $ (534 ) $ (466 ) Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December31: (In millions) 2009 2008 Current assets $ 46 $ 71 Noncurrent liabilities (580 ) (537 ) Total $ (534 ) $ (466 ) Unrecognized tax benefits were as follows: (In millions) 2009 2008 2007 Unrecognized tax benefitsBeginning of year $ 77 $ 60 $ 23 Increases for tax positions taken during the current year 4 11 4 Increases for tax positions taken in prior years 1 1 4 Assumed in acquisitions 9 32 Decreases for settlements (34 ) (1 ) (1 ) Lapse of the statute of limitations (1 ) (3 ) (2 ) Unrecognized tax benefitsEnd of year $ 47 $ 77 $ 60 At December31, 2009, unrecognized tax benefits, net of federal and state benefits, of $29 million and $4 million would affect the effective tax rate from continuing operations and discontinued operations, respectively, if recognized. In |
Employee Stock and Savings Plan
Employee Stock and Savings Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Employee Stock and Savings Plans | 7. Employee Stock and Savings Plans Stock Plans The Company recognizes the fair value of share-based compensation expense for stock options, restricted stock awards, shares received by employees under the Companys employee stock purchase plan and similar awards in cost of processing and services, cost of product and selling, general and administrative expense in its consolidated statements of income on a straight-line basis over the vesting period of the underlying awards. The Companys share-based compensation primarily consists of the following: Stock OptionsThe Company generally grants stock options to employees and non-employee directors at exercise prices equal to the fair market value of the Companys stock on the dates of grant, which are typically in the first quarter of the year. Stock options generally vest over a three year period beginning on the first anniversary of the grant. All stock options expire ten years from the date of the award. The Company recognizes compensation expense for the fair value of the stock options over the requisite service period of the stock option award. Restricted Stock UnitsThe Company awards restricted stock units to employees and non-employee directors. The Company recognizes compensation expense for restricted stock units based on the market price on the date of award over the period during which the awards vest. Employee Stock Purchase PlanThe Company maintains an employee stock purchase plan that allows eligible employees to purchase a limited number of shares of common stock each quarter through payroll deductions at 85% of the closing price of the Companys common stock on the last business day of each calendar quarter. The Company recognizes compensation expense related to the 15% discount on the purchase date. Share-based compensation expense recorded for continuing operations was $36 million, $34 million and $23 million during 2009, 2008 and 2007, respectively. The income tax benefits in income from continuing operations related to share-based compensation totaled $12 million, $12 million and $8 million in 2009, 2008 and 2007, respectively. At December31, 2009, the total remaining unrecognized compensation cost related to continuing operations for unvested stock options and restricted stock awards, net of estimated forfeitures, of $48 million is expected to be recognized over a weighted-average period of 2.3 years. The weighted-average estimated fair value of stock options granted during 2009, 2008 and 2007 was $12.76, $20.56 and $21.07 per share, respectively. The fair values of stock options granted were estimated on the date of grant using a binomial option-pricing model with the following assumptions: 2009 2008 2007 Expected life (in years) 6.5 6.4 6.0 Average risk-free interest rate 2.3 % 3.2 % 4.6 % Expected volatility 33.7 % 31.1 % 30.7 % Expected dividend yield 0 % 0 % 0 % The Company determined the expected life of stock options using historical data adjusted for known factors that would alter historical exercise behavior. The risk-free interest rate is based on the U.S. |
Leases, Commitments and Conting
Leases, Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Leases, Commitments and Contingencies | 8. Leases, Commitments and Contingencies Leases The Company leases certain facilities and equipment under operating leases. Most leases contain renewal options for varying periods. Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December31, 2009 (in millions): Years Ending December31, 2010 $ 93 2011 76 2012 56 2013 40 2014 29 Thereafter 52 Total $ 346 Rent expense charged to continuing operations for all operating leases was $115 million, $124 million and $95 million during 2009, 2008 and 2007, respectively. Commitments and Contingencies Litigation In the normal course of business, the Company and its subsidiaries are named as defendants in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may ultimately result from such lawsuits are not expected to have a material adverse effect on the consolidated financial statements of the Company. Electronic Payments Transactions In connection with the Companys processing of electronic payments transactions, funds received from subscribers are invested from the time the Company collects the funds until payments are made to the applicable merchants. These subscriber funds are generally invested in short-term instruments that are guaranteed by the United States government. Subscriber funds, which are not included in the Companys consolidated balance sheets, can fluctuate significantly based on consumer bill payment activity, and totaled approximately $1.4 billion as of December31, 2009. Indemnifications and Warranties Subject to limitations and exclusions, the Company generally indemnifies its clients from certain costs resulting from claims of patent, copyright or trademark infringement associated with such clients use of its products or services. The Company may also warrant to clients that its products and services will operate substantially in accordance with identified specifications. From time to time, in connection with sales of businesses, the Company agrees to indemnify the buyers for liabilities associated with the businesses that are sold. Historically, payments under such indemnification or warranty provisions have not been significant. |
Business Segment Information
Business Segment Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Business Segment Information | 9. Business Segment Information The Companys ongoing operations are comprised of its Financial, Payments and Corporate and Other segments. The Financial segment provides banks, thrifts and credit unions with account processing services, item processing services, loan origination and servicing products, cash management and consulting services, and other products and services that support numerous types of financial transactions. The Payments segment primarily provides electronic bill payment and settlement, electronic funds transfer, and debit processing products and services to meet the electronic transaction processing needs of the financial services industry. The businesses in this segment also provide card and print personalization services, Internet banking, investment account processing services for separately managed accounts, and fraud and risk management products and services. The Corporate and Other segment primarily consists of unallocated corporate overhead expenses, amortization of acquisition-related intangible assets and intercompany eliminations. In July 2008, the Company completed the sale of a 51% interest in substantially all of the businesses in its Insurance Services (Insurance) segment. (In millions) Financial Payments Insurance Corporate andOther Total 2009 Processing and services revenue $ 1,747 $ 1,579 $ 3 $ 3,329 Product revenue 195 581 (28 ) 748 Total revenues 1,942 2,160 (25 ) 4,077 Operating income 569 617 (240 ) 946 Identifiable assets 2,145 5,762 471 8,378 Capital expenditures 89 103 6 198 Depreciation and amortization expense 86 87 160 333 2008 Processing and services revenue $ 1,808 $ 1,542 $ 121 $ (7 ) $ 3,464 Product revenue 184 589 392 (42 ) 1,123 Total revenues 1,992 2,131 513 (49 ) 4,587 Operating income 545 579 44 (260 ) 908 Identifiable assets 2,242 5,712 361 8,315 Capital expenditures 95 94 7 2 198 Depreciation and amortization expense 92 88 6 164 350 2007 Processing and services revenue $ 1,628 $ 594 $ 227 $ (1 ) $ 2,448 Product revenue 202 476 577 (26 ) 1,229 Total revenues 1,830 1,070 804 (27 ) 3,677 Operating income 506 253 78 (101 ) 736 Identifiable assets 2,201 5,888 795 183 9,067 Capital expenditures 79 55 10 8 152 Depreciation and amortization expense 86 45 9 36 176 A reconciliation of business segment identifiable assets to the consolidated balance sheets is as follows: (In millions) 2009 2008 Business segme |
Subsidiary Guarantors of Long-T
Subsidiary Guarantors of Long-Term Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Subsidiary Guarantors of Long-Term Debt | 10. Subsidiary Guarantors of Long-Term Debt Certain of the Companys 100% owned domestic subsidiaries (Guarantor Subsidiaries) jointly and severally, and fully and unconditionally guarantee the Companys indebtedness under its revolving credit facility, senior term loan, and senior notes. The following condensed consolidating financial information is presented on the equity method and reflects the summarized financial information for: (a)the Company; (b)the Guarantor Subsidiaries on a combined basis; and (c)the Companys non-guarantor subsidiaries on a combined basis. FISERV, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 2009 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Processing and services $ $ 2,346 $ 1,061 $ (78 ) $ 3,329 Product 631 146 (29 ) 748 Total revenues 2,977 1,207 (107 ) 4,077 Expenses: Cost of processing and services 2 1,277 643 (78 ) 1,844 Cost of product 1 472 89 (26 ) 536 Selling, general and administrative 100 427 224 751 Total expenses 103 2,176 956 (104 ) 3,131 Operating income (loss) (103 ) 801 251 (3 ) 946 Interest (expense) income, net 46 (252 ) (6 ) (212 ) Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate (57 ) 549 245 (3 ) 734 Income tax (provision) benefit 28 (209 ) (93 ) 1 (273 ) Income from investment in unconsolidated affiliate, net of income taxes 12 12 Income (loss) from continuing operations (29 ) 340 164 (2 ) 473 Equity in earnings of consolidated affiliates 505 (505 ) Income (loss) from discontinued operations, net of income taxes (15 ) 18 3 Net income $ 476 $ 325 $ 182 $ (507 ) $ 476 FISERV, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 2008 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Processing and services $ 1 $ 2,304 $ 1,232 $ (73 ) $ 3,464 Product 623 525 (25 ) 1,123 Total revenues 1 2,927 1,757 (98 ) 4,587 |
Quarterly Financial Data
Quarterly Financial Data (unaudited) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Quarterly Financial Data (unaudited) | 11. Quarterly Financial Data (unaudited) Quarterly financial data for 2009 and 2008 was as follows: Quarters (In millions, except per share data) First Second Third Fourth 2009 Total revenues $ 1,023 $ 1,000 $ 992 $ 1,062 Operating income 225 234 231 256 Income from continuing operations 106 115 124 128 Net income 103 140 115 118 Net income per sharecontinuing operations Basic $ 0.68 $ 0.74 $ 0.80 $ 0.84 Diluted $ 0.68 $ 0.74 $ 0.79 $ 0.83 2008 Total revenues $ 1,265 $ 1,244 $ 1,038 $ 1,040 Operating income 235 226 217 230 Income from continuing operations 102 101 75 80 Net income 329 100 78 62 Net income per sharecontinuing operations Basic $ 0.62 $ 0.62 $ 0.46 $ 0.50 Diluted $ 0.62 $ 0.62 $ 0.46 $ 0.50 |
SCHEDULE II Valuation and Quali
SCHEDULE II Valuation and Qualifying Accounts | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II Valuation and Qualifying Accounts Allowance for Doubtful Accounts (In millions) Beginning Balance Charged toExpense Write-offs Acquisitions Sale of Businesses Ending Balance 2009 $ 12 $ 2 $ (3 ) $ $ $ 11 2008 62 23 (26 ) (47 ) 12 2007 32 32 (29 ) 27 62 |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 24, 2010
| Jun. 30, 2009
| |
Trading Symbol | FISV | ||
Entity Registrant Name | FISERV INC | ||
Entity Central Index Key | 0000798354 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 152,320,404 | ||
Entity Public Float | $6,916,142,865 |