Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Document Information | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FISV | ||
Entity Registrant Name | FISERV INC | ||
Entity Central Index Key | 798354 | ||
Current Fiscal Year End Date | -19 | ||
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 | 238,692,815 | ||
Entity Public Float | $15,009,388,624 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenue: | |||||
Processing and services | $4,219 | $4,035 | $3,663 | ||
Product | 847 | 779 | 773 | ||
Total revenue | 5,066 | 4,814 | 4,436 | ||
Expenses: | |||||
Cost of processing and services | 2,164 | 2,081 | 1,936 | ||
Cost of product | 717 | 695 | 628 | ||
Selling, general and administrative | 975 | 977 | 824 | ||
Total expenses | 3,856 | 3,753 | 3,388 | ||
Operating income | 1,210 | 1,061 | 1,048 | ||
Interest expense | -164 | -164 | -174 | ||
Interest and investment income | 1 | 1 | 7 | ||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | 1,047 | 898 | 881 | ||
Income tax provision | -384 | -328 | -300 | ||
Income from investment in unconsolidated affiliate | 91 | 80 | 11 | ||
Income from continuing operations | 754 | 650 | 592 | ||
(Loss) income from discontinued operations, net of income taxes | -2 | 19 | |||
Net income | $754 | $648 | $611 | ||
Net income (loss) per share - basic: | |||||
Continuing operations | $3.04 | [1] | $2.48 | [1] | $2.18 |
Discontinued operations | ($0.01) | $0.07 | |||
Total | $3.03 | $2.47 | $2.25 | ||
Net income (loss) per share - diluted: | |||||
Continuing operations | $2.99 | [1] | $2.44 | [1] | $2.15 |
Discontinued operations | ($0.01) | $0.07 | |||
Total | $2.98 | $2.44 | $2.22 | ||
Shares used in computing net income (loss) per share: | |||||
Basic | 248.6 | 262.4 | 271.6 | ||
Diluted | 252.7 | 266.1 | 275 | ||
[1] | Net income per share in each period is calculated using actual, unrounded amounts. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $754 | $648 | $611 |
Other comprehensive (loss) income: | |||
Fair market value adjustment on cash flow hedges, net of income tax benefit of $(1) million and $(8) million | -1 | -12 | |
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of income tax provision of $6 million, $6 million and $17 million | 8 | 9 | 26 |
Foreign currency translation | -11 | -8 | 4 |
Total other comprehensive (loss) income | -3 | 18 | |
Comprehensive income | $751 | $648 | $629 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair market value adjustment on cash flow hedges, tax benefit | $0 | ($1) | ($8) |
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, tax provision | $6 | $6 | $17 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $294 | $400 |
Trade accounts receivable, less allowance for doubtful accounts | 798 | 751 |
Deferred income taxes | 42 | 55 |
Prepaid expenses and other current assets | 352 | 366 |
Total current assets | 1,486 | 1,572 |
Property and equipment, net | 317 | 266 |
Intangible assets, net | 2,003 | 2,142 |
Goodwill | 5,209 | 5,216 |
Other long-term assets | 322 | 317 |
Total assets | 9,337 | 9,513 |
Liabilities and Shareholders' Equity | ||
Accounts payable and accrued expenses | 905 | 756 |
Current maturities of long-term debt | 92 | 92 |
Deferred revenue | 489 | 484 |
Total current liabilities | 1,486 | 1,332 |
Long-term debt | 3,711 | 3,756 |
Deferred income taxes | 716 | 713 |
Other long-term liabilities | 129 | 127 |
Total liabilities | 6,042 | 5,928 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Preferred stock, no par value: 25.0 million shares authorized; none issued | ||
Common stock, $0.01 par value: 900.0 million shares authorized; 395.7 million shares issued | 4 | 4 |
Additional paid-in capital | 897 | 844 |
Accumulated other comprehensive loss | -63 | -60 |
Retained earnings | 7,352 | 6,598 |
Treasury stock, at cost, 155.4 million and 139.0 million shares | -4,895 | -3,801 |
Total shareholders' equity | 3,295 | 3,585 |
Total liabilities and shareholders' equity | $9,337 | $9,513 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred stock, no par value | ||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, issued | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 395,700,000 | 395,700,000 |
Treasury stock, shares | 155,400,000 | 139,000,000 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock |
In Millions | ||||||
Beginning Balance at Dec. 31, 2011 | $4 | $775 | ($78) | $5,339 | ($2,782) | |
Beginning Balance (in shares) at Dec. 31, 2011 | 396 | 116 | ||||
Net income | 611 | 611 | ||||
Other comprehensive income (loss) | 18 | 18 | ||||
Share-based compensation | 44 | |||||
Shares issued under stock plans including income tax benefits (in shares) | -5 | |||||
Shares issued under stock plans including income tax benefits | -17 | 128 | ||||
Purchases of treasury stock (in shares) | 18 | |||||
Purchases of treasury stock | -625 | |||||
Ending Balance at Dec. 31, 2012 | 4 | 802 | -60 | 5,950 | -3,279 | |
Ending Balance (in shares) at Dec. 31, 2012 | 396 | 129 | ||||
Net income | 648 | 648 | ||||
Share-based compensation | 46 | |||||
Shares issued under stock plans including income tax benefits (in shares) | -3 | |||||
Shares issued under stock plans including income tax benefits | -4 | 65 | ||||
Purchases of treasury stock (in shares) | 13 | |||||
Purchases of treasury stock | -587 | |||||
Ending Balance at Dec. 31, 2013 | 3,585 | 4 | 844 | -60 | 6,598 | -3,801 |
Ending Balance (in shares) at Dec. 31, 2013 | 396 | 139 | ||||
Net income | 754 | 754 | ||||
Other comprehensive income (loss) | -3 | -3 | ||||
Share-based compensation | 49 | |||||
Shares issued under stock plans including income tax benefits (in shares) | -2 | |||||
Shares issued under stock plans including income tax benefits | 4 | 64 | ||||
Purchases of treasury stock (in shares) | 18 | |||||
Purchases of treasury stock | -1,158 | |||||
Ending Balance at Dec. 31, 2014 | $3,295 | $4 | $897 | ($63) | $7,352 | ($4,895) |
Ending Balance (in shares) at Dec. 31, 2014 | 396 | 155 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $754 | $648 | $611 |
Adjustment for discontinued operations | 2 | -19 | |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||
Depreciation and other amortization | 200 | 193 | 190 |
Amortization of acquisition-related intangible assets | 204 | 210 | 160 |
Share-based compensation | 49 | 46 | 44 |
Deferred income taxes | 3 | -9 | 5 |
Income from investment in unconsolidated affiliate | -91 | -80 | -11 |
Dividends from unconsolidated affiliate | 110 | 6 | 23 |
Non-cash impairment charge | 30 | ||
Settlement of interest rate hedge contracts | -88 | ||
Other non-cash items | -18 | -11 | -11 |
Changes in assets and liabilities, net of effects from acquisitions: | |||
Trade accounts receivable | -42 | -47 | -12 |
Prepaid expenses and other assets | -39 | -48 | -85 |
Accounts payable and other liabilities | 168 | 37 | |
Deferred revenue | 9 | 62 | 19 |
Net cash provided by operating activities from continuing operations | 1,307 | 1,039 | 826 |
Cash flows from investing activities: | |||
Capital expenditures, including capitalization of software costs | -292 | -236 | -193 |
Payments for acquisitions of businesses, net of cash acquired | -30 | ||
Dividends from unconsolidated affiliate | 116 | 32 | |
Net proceeds from investments | 7 | 4 | 28 |
Other investing activities | -1 | -2 | -3 |
Net cash used in investing activities from continuing operations | -286 | -148 | -136 |
Cash flows from financing activities: | |||
Debt proceeds | 604 | 2,252 | 1,469 |
Debt repayments | -653 | -2,590 | -1,642 |
Issuance of treasury stock | 53 | 49 | 96 |
Purchases of treasury stock | -1,148 | -578 | -634 |
Other financing activities | 18 | -6 | 5 |
Net cash used in financing activities from continuing operations | -1,126 | -873 | -706 |
Net change in cash and cash equivalents from continuing operations | -105 | 18 | -16 |
Net cash flows (to) from discontinued operations | -1 | 24 | 37 |
Beginning balance | 400 | 358 | 337 |
Ending balance | 294 | 400 | 358 |
Discontinued operations cash flow information: | |||
Net cash (used in) provided by operating activities | -1 | -11 | 39 |
Net cash provided by (used in) investing activities | 35 | -2 | |
Net change in cash and cash equivalents from discontinued operations | -1 | 24 | 37 |
Net cash flows from (to) continuing operations | 1 | -24 | -37 |
Beginning balance - discontinued operations | |||
Ending balance - discontinued operations |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies | ||||||||||||||||
Description of the Business | |||||||||||||||||
Fiserv, Inc. and its subsidiaries (collectively, the “Company”) provide financial services technology to clients worldwide, including banks, thrifts, credit unions, investment management firms, leasing and finance companies, retailers, and merchants. The Company provides account processing systems, electronic payments processing products and services, internet and mobile banking systems, and related services. The Company is principally located in the United States where it operates data and transaction processing centers, provides technology support, develops software and payment solutions, and offers consulting services. | |||||||||||||||||
The Company’s operations are comprised of the Payments and Industry Products (“Payments”) segment and the Financial Institution Services (“Financial”) segment. Additional information regarding the Company’s business segments is included in Note 10. | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The consolidated financial statements include the accounts of Fiserv, Inc. and all 100% owned subsidiaries. Investments in less than 50% owned affiliates in which the Company has significant influence but not control are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||||||
Stock Split | |||||||||||||||||
On November 20, 2013, the Company’s Board of Directors declared a two-for-one stock split of the Company’s common stock and a proportionate increase in the number of its authorized shares of common stock. The additional shares were distributed on December 16, 2013 to shareholders of record at the close of business on December 2, 2013. The Company’s common stock began trading at the split-adjusted price on December 17, 2013. All share and per share amounts are retroactively presented on a split-adjusted basis. The impact on the consolidated balance sheets of the stock split was an increase of $2 million to common stock and an offsetting reduction in additional paid-in capital, which has been retroactively restated. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), to clarify the principles of recognizing revenue and to create common revenue recognition guidance between U.S. generally accepted accounting principles and International Financial Reporting Standards. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This model involves a five-step process for achieving that core principle, along with comprehensive disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 will be effective for annual and interim periods after December 15, 2016; early application is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt this new guidance. The Company is currently assessing the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements. | |||||||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the amendments in ASU 2014-08, only those disposals that represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results will be reported as discontinued operations in the financial statements. ASU 2014-08 will be effective prospectively for annual and interim periods after December 15, 2014. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in its consolidated financial statements on a recurring basis. Fair value represents the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability. | |||||||||||||||||
The fair values of cash equivalents, trade accounts receivable, settlement assets and obligations, and accounts payable approximate their respective carrying values due to the short period of time to maturity. The estimated fair value of debt is described in Note 5 and was estimated using quoted prices in active markets (level 2 of the fair value hierarchy) or using discounted cash flows based on the Company’s current incremental borrowing rates (level 3 of the fair value hierarchy). | |||||||||||||||||
Derivatives | |||||||||||||||||
Derivatives are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. If the derivative is designated as a cash flow hedge, the effective portions of the changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative are recognized in earnings. To the extent the fair value hedge is effective, there is an offsetting adjustment to the basis of the item being hedged. Ineffective portions of changes in the fair value of hedges are recognized in earnings. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. | |||||||||||||||||
Foreign Currency | |||||||||||||||||
Foreign currency denominated assets and liabilities, where the functional currency is the local currency, are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company generates revenue from the delivery of processing, service and product solutions. Revenue is recognized when written contracts are signed, delivery has occurred, the fees are fixed or determinable, and collectability is reasonably assured. | |||||||||||||||||
Processing and services revenue is recognized as services are provided and is primarily derived from single element individual contracts that generate account- and transaction-based fees for data processing, transaction processing, electronic billing and payment services, electronic funds transfer, debit processing services, and consulting services. To a lesser extent, certain of the Company’s revenue is generated from multiple element arrangements involving various combinations of product and service deliverables. The deliverables within these arrangements are evaluated at contract inception to determine whether they represent separate units of accounting, and if so, contract consideration is allocated to each deliverable based on relative selling price. The relative selling price is determined using vendor specific objective evidence of fair value, third-party evidence or best estimate of selling price. Revenue is then recognized in accordance with the appropriate revenue recognition guidance applicable to the respective elements. Also included in processing and services revenue is software maintenance fee revenue for ongoing client support, which is recognized ratably over the term of the applicable support period, which is generally 12 months. Deferred revenue consists primarily of advance cash receipts for services and is recognized as revenue when the services are provided. | |||||||||||||||||
Product revenue is primarily derived from integrated print and card production sales, as well as software license sales which represented less than 4% of consolidated revenue. For software license agreements that do not require significant customization or modification, the Company recognizes software license revenue upon delivery, assuming persuasive evidence of an arrangement exists, the license fee is fixed or determinable, and collection is reasonably assured. Arrangements with customers that include significant customization, modification or production of software are accounted for under contract accounting, with revenue recognized using the percentage-of-completion method based upon efforts-expended, such as labor hours, to measure progress towards completion. Changes in estimates for revenues, costs and profits are recognized in the period in which they are determinable. | |||||||||||||||||
The Company includes reimbursements from clients, such as postage and telecommunication costs, in processing and services revenue and product revenue, while the related costs are included in cost of processing and services and cost of product. | |||||||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||
Selling, general and administrative expenses primarily consist of: salaries, wages and related expenses paid to sales personnel, administrative employees and management; advertising and promotional costs; depreciation and amortization; and other selling and administrative expenses. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less. | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
The Company analyzes the collectibility of trade accounts receivable by considering historical bad debts, client creditworthiness, current economic trends, changes in client payment terms and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. The allowance for doubtful accounts was $11 million and $15 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||
Prepaid Expenses | |||||||||||||||||
Prepaid expenses represent advance payments for goods and services to be consumed in the future, such as maintenance, postage and insurance, and totaled $132 million and $122 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||
Settlement Assets and Obligations | |||||||||||||||||
Settlement assets of $182 million and $189 million were included in prepaid expenses and other current assets at December 31, 2014 and 2013, respectively, and settlement obligations of $176 million and $184 million were included in accrued expenses at December 31, 2014 and 2013, respectively. Settlement assets and obligations result from timing differences between collection and fulfillment of payment transactions primarily associated with the Company’s walk-in and expedited bill payment service businesses. Settlement assets represent cash received or amounts receivable from agents, payment networks or directly from consumers. Settlement obligations represent amounts payable to clients and payees. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are reported at cost. Depreciation of property and equipment is computed primarily using the straight-line method over the shorter of the estimated useful life of the asset or the leasehold period, if applicable. Property and equipment consisted of the following at December 31: | |||||||||||||||||
(In millions) | Estimated | 2014 | 2013 | ||||||||||||||
Useful Lives | |||||||||||||||||
Land | - | $ | 23 | $ | 23 | ||||||||||||
Data processing equipment | 3 to 7 years | 657 | 587 | ||||||||||||||
Buildings and leasehold improvements | 5 to 40 years | 209 | 202 | ||||||||||||||
Furniture and equipment | 3 to 10 years | 165 | 140 | ||||||||||||||
1,054 | 952 | ||||||||||||||||
Less: accumulated depreciation | (737 | ) | (686 | ) | |||||||||||||
Total | $ | 317 | $ | 266 | |||||||||||||
Depreciation expense for all property and equipment totaled $71 million, $70 million and $72 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
Intangible assets consisted of the following at December 31: | |||||||||||||||||
(In millions) | Gross | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Value | |||||||||||||||
2014 | Amount | ||||||||||||||||
Customer related intangible assets | $ | 2,155 | $ | 797 | $ | 1,358 | |||||||||||
Acquired software and technology | 493 | 356 | 137 | ||||||||||||||
Trade names | 120 | 46 | 74 | ||||||||||||||
Capitalized software development costs | 574 | 240 | 334 | ||||||||||||||
Purchased software | 234 | 134 | 100 | ||||||||||||||
Total | $ | 3,576 | $ | 1,573 | $ | 2,003 | |||||||||||
(In millions) | Gross | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Value | |||||||||||||||
2013 | Amount | ||||||||||||||||
Customer related intangible assets | $ | 2,155 | $ | 667 | $ | 1,488 | |||||||||||
Acquired software and technology | 493 | 289 | 204 | ||||||||||||||
Trade names | 120 | 39 | 81 | ||||||||||||||
Capitalized software development costs | 635 | 348 | 287 | ||||||||||||||
Purchased software | 277 | 195 | 82 | ||||||||||||||
Total | $ | 3,680 | $ | 1,538 | $ | 2,142 | |||||||||||
Customer related intangible assets represent customer contracts and relationships obtained as part of acquired businesses and are amortized over their estimated useful lives, generally 10 to 20 years. Acquired software and technology represents software and technology intangible assets obtained as part of acquired businesses and are amortized over their estimated useful lives, generally four to eight years. Trade names are amortized over their estimated useful lives, generally 10 to 20 years. Amortization expense for acquired intangible assets, which include customer related intangible assets, acquired software and technology, and trade names, totaled $204 million, $210 million and $160 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||
The Company continually develops, maintains and enhances its products and systems. In each of 2014, 2013 and 2012, product development expenditures represented approximately 9% of the Company’s total revenue. Research and development costs incurred prior to the establishment of technological feasibility are expensed as incurred. Routine maintenance of software products, design costs and other development costs incurred prior to the establishment of a product’s technological feasibility are also expensed as incurred. Costs are capitalized commencing when the technological feasibility of the software has been established. | |||||||||||||||||
Capitalized software development costs represent the capitalization of certain costs incurred to develop new software or to enhance existing software which is marketed externally or utilized by the Company to process client transactions. Capitalized software development costs are amortized over their estimated useful lives, generally five years. Gross software development costs capitalized for new products and enhancements to existing products totaled $129 million, $120 million and $102 million in 2014, 2013 and 2012, respectively. Amortization of previously capitalized software development costs that have been placed into service was $82 million, $72 million and $73 million in 2014, 2013 and 2012, respectively. During 2013, the Company incurred a $30 million non-cash impairment charge to capitalized software development costs as a result of the acquisition of Open Solutions, Inc. (“Open Solutions”). See Note 2. | |||||||||||||||||
Purchased software represents software licenses purchased from third parties and is amortized over their estimated useful lives, generally three to five years. Amortization of purchased software totaled $29 million, $32 million and $34 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||
The Company estimates that annual amortization expense with respect to acquired intangible assets recorded at December 31, 2014 will be approximately $190 million in 2015, $150 million in 2016, $140 million in each of 2017 and 2018, and $130 million in 2019. Annual amortization expense in 2015 with respect to capitalized and purchased software recorded at December 31, 2014 is estimated to approximate $115 million. | |||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis, or more frequently if circumstances indicate possible impairment. Goodwill is tested for impairment at a reporting unit level, determined to be at an operating segment level or one level below. When reviewing goodwill for impairment, the Company considers the amount of excess fair value over the carrying value of each reporting unit, the period of time since a reporting unit’s last quantitative test, the extent a reorganization or disposition changes the composition of one or more of the reporting units, and other factors to determine whether or not to first perform a qualitative test. When performing a qualitative test, the Company assesses numerous factors to determine whether it is more likely than not that the fair value of its reporting units are less than their respective carrying values. Examples of qualitative factors that the Company assesses include its share price, its financial performance, market and competitive factors in its industry, and other events specific to its reporting units. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company performs a two-step quantitative impairment test by comparing reporting unit carrying values to estimated fair values. No impairment was identified in the Company’s annual impairment assessment in the fourth quarter of 2014 as the estimated fair values of the respective reporting units exceeded the carrying values. In addition, there is no accumulated impairment loss through December 31, 2014. The changes in goodwill during 2014 and 2013 were as follows: | |||||||||||||||||
(In millions) | Payments | Financial | Total | ||||||||||||||
Goodwill - December 31, 2012 | $ | 3,442 | $ | 1,263 | $ | 4,705 | |||||||||||
Acquired goodwill | 2 | 517 | 519 | ||||||||||||||
Foreign currency adjustments and other | - | (8 | ) | (8 | ) | ||||||||||||
Goodwill - December 31, 2013 | 3,444 | 1,772 | 5,216 | ||||||||||||||
Foreign currency adjustments | (4 | ) | (3 | ) | (7 | ) | |||||||||||
Goodwill - December 31, 2014 | $ | 3,440 | $ | 1,769 | $ | 5,209 | |||||||||||
Asset Impairment | |||||||||||||||||
The Company reviews property and equipment, intangible assets and its investment in unconsolidated affiliate for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company reviews capitalized software development costs for impairment at each balance sheet date. Recoverability of property and equipment, capitalized software development costs, and intangible assets is assessed by comparing the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. The Company’s investment in unconsolidated affiliate is assessed by comparing the carrying amount of the investment to its estimated fair value and is impaired if any decline in fair value is determined to be other than temporary. Measurement of any impairment loss is based on estimated fair value. | |||||||||||||||||
Deferred Financing Costs | |||||||||||||||||
Deferred financing costs related to the Company’s long-term debt totaled $19 million and $24 million at December 31, 2014 and 2013, respectively, net of accumulated amortization of $31 million and $26 million, respectively. Deferred financing costs are reported in other long-term assets in the consolidated balance sheets and are amortized over the term of the underlying debt using the interest method as a component of interest expense. | |||||||||||||||||
Accounts Payable and Accrued Expenses | |||||||||||||||||
Accounts payable and accrued expenses consisted of the following at December 31: | |||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||
Trade accounts payable | $ | 61 | $ | 67 | |||||||||||||
Client deposits | 261 | 190 | |||||||||||||||
Accrued compensation and benefits | 192 | 165 | |||||||||||||||
Settlement obligations | 176 | 184 | |||||||||||||||
Other accrued expenses | 215 | 150 | |||||||||||||||
Total | $ | 905 | $ | 756 | |||||||||||||
Income Taxes | |||||||||||||||||
Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance, if necessary, is recorded against deferred tax assets for which utilization of the asset is not likely. | |||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: | |||||||||||||||||
(In millions) | Cash Flow | Foreign | Other | Total | |||||||||||||
Hedges | Currency | ||||||||||||||||
Translation | |||||||||||||||||
Balance at December 31, 2013 | $ | (49 | ) | $ | (9 | ) | $ | (2 | ) | $ | (60 | ) | |||||
Other comprehensive loss before reclassifications | - | (11 | ) | - | (11 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 8 | - | - | 8 | |||||||||||||
Net current-period other comprehensive (loss) income | 8 | (11 | ) | - | (3 | ) | |||||||||||
Balance at December 31, 2014 | $ | (41 | ) | $ | (20 | ) | $ | (2 | ) | $ | (63 | ) | |||||
(In millions) | Cash Flow | Foreign | Other | Total | |||||||||||||
Hedges | Currency | ||||||||||||||||
Translation | |||||||||||||||||
Balance at December 31, 2012 | $ | (57 | ) | $ | (1 | ) | $ | (2 | ) | $ | (60 | ) | |||||
Other comprehensive loss before reclassifications | (1 | ) | (8 | ) | - | (9 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 9 | - | - | 9 | |||||||||||||
Net current-period other comprehensive income (loss) | 8 | (8 | ) | - | - | ||||||||||||
Balance at December 31, 2013 | $ | (49 | ) | $ | (9 | ) | $ | (2 | ) | $ | (60 | ) | |||||
Net Income Per Share | |||||||||||||||||
Net income per share in each period is calculated using actual, unrounded amounts. Basic net income per share is computed using the weighted-average number of common shares outstanding during the year. Diluted net income per share is computed using the weighted-average number of common shares and common stock equivalents outstanding during the year. Common stock equivalents consist of stock options and restricted stock units and are computed using the treasury stock method. In 2014, 2013 and 2012, the Company excluded 1.2 million, 1.5 million and 1.7 million weighted-average shares, respectively, from the calculations of common stock equivalents for anti-dilutive stock options. | |||||||||||||||||
The computation of shares used in calculating basic and diluted net income per share is as follows: | |||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||
Weighted-average common shares outstanding used for the calculation of net income per share - basic | 248.6 | 262.4 | 271.6 | ||||||||||||||
Common stock equivalents | 4.1 | 3.7 | 3.4 | ||||||||||||||
Weighted-average common shares outstanding used for the calculation of net income per share - diluted | 252.7 | 266.1 | 275 | ||||||||||||||
Supplemental Cash Flow Information | |||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||
Interest paid, including on assumed debt | $ | 144 | $ | 165 | $ | 158 | |||||||||||
Income taxes paid from continuing operations | 336 | 299 | 321 | ||||||||||||||
Treasury stock purchases settled after the balance sheet date | 19 | 9 | - | ||||||||||||||
Liabilities assumed in acquisitions of businesses | - | 1,176 | - |
Acquisition
Acquisition | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Acquisition | 2. Acquisition | ||||||
On January 14, 2013, the Company acquired Open Solutions, a provider of account processing technology for financial institutions, for a cash purchase price of $55 million and the assumption of approximately $960 million of debt. This acquisition, included within the Financial segment, advanced the Company’s go-to-market strategies by adding a number of products and services and by expanding the number of account processing clients to which the Company can provide its broad array of add-on products and services. | |||||||
The allocation of purchase price for Open Solutions was finalized in 2013 and recorded as follows: | |||||||
(In millions) | |||||||
Cash and cash equivalents | $ | 39 | |||||
Trade accounts receivable | 41 | ||||||
Deferred income tax assets | 29 | ||||||
Prepaid expenses and other assets | 30 | ||||||
Intangible assets | 571 | ||||||
Goodwill | 517 | ||||||
Accounts payable and other liabilities | (140 | ) | |||||
Long-term debt | (958 | ) | |||||
Deferred income tax liabilities | (74 | ) | |||||
Total cash purchase price | $ | 55 | |||||
The cash purchase price and repayment of assumed debt were funded utilizing a combination of available cash and existing availability under the Company’s revolving credit facility. The final purchase price allocation did not materially change from the preliminary allocation. The purchase price allocation resulted in goodwill, included within the Financial segment, of approximately $517 million, of which $161 million is deductible for tax purposes. Such goodwill was primarily attributed to synergies with the products and services that Open Solutions provides and the anticipated value created by selling the Company’s products and services to Open Solutions’ existing client base. The values allocated to intangible assets were as follows: | |||||||
(In millions) | Gross | Weighted- | |||||
Carrying | Average | ||||||
Amount | Useful Life | ||||||
Customer related intangible assets | $ | 460 | 20 years | ||||
Acquired software and technology | 105 | 7 years | |||||
Trade name | 6 | 10 years | |||||
$ | 571 | ||||||
In 2013, the results of operations for Open Solutions, $270 million of revenue and $12 million of operating income, which included purchase accounting adjustments such as deferred revenue measured at fair value and acquired intangible asset amortization, had been included within the Company’s consolidated statement of income from the date of acquisition. As a result of the acquisition, the Company has incurred merger and integration costs, including a $30 million non-cash impairment charge in 2013 related to the Company’s decision to replace its Acumen account processing system with DNA, an Open Solutions’ account processing system. | |||||||
The following unaudited supplemental pro forma information presents the Company’s results of operations as though the acquisition of Open Solutions had occurred on January 1, 2012. This information is presented for informational purposes and is not necessarily indicative of the Company’s operating results which would have occurred had the acquisition been consummated as of that date. The pro forma information presented below does not include anticipated synergies, the impact of purchase accounting adjustments or certain other expected benefits of the acquisition and should not be used as a predictive measure of our future results of operations. | |||||||
(In millions, except per share data) | (Pro Forma | ||||||
Unaudited) | |||||||
2012 | |||||||
Total revenue | $ | 4,764 | |||||
Income from continuing operations | $ | 602 | |||||
Net income | $ | 621 | |||||
Net income per share - basic | $ | 2.29 | |||||
Net income per share - diluted | $ | 2.26 |
Discontinued_Operation
Discontinued Operation | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operation | 3. Discontinued Operation |
On March 14, 2013, the Company sold its club solutions business (“Club Solutions”) for approximately $35 million in cash. The 2013 and 2012 results of operations and cash flows of Club Solutions, which were previously included within the Payments segment, have been reported as discontinued operations in the accompanying consolidated financial statements. Club Solutions revenue was $10 million and $46 million in 2013 and 2012, respectively, and the Company recognized a $4 million loss, net of income taxes, on the sale of the business during 2013. |
Investment_in_Unconsolidated_A
Investment in Unconsolidated Affiliate | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investment in Unconsolidated Affiliate | 4. Investment in Unconsolidated Affiliate | ||||||||||||
The Company owns a 49% interest in StoneRiver Group, L.P. (“StoneRiver”), which is accounted for as an equity method investment, and reports its share of StoneRiver’s net income as income from investment in unconsolidated affiliate. The Company’s investment in StoneRiver was $21 million and $39 million at December 31, 2014 and 2013, respectively, and was reported within other long-term assets in the consolidated balance sheets. To the extent that the Company’s cost basis is different than the basis reflected at the unconsolidated affiliate level, the basis difference is generally amortized over the lives of the related assets and included in the Company’s share of equity in earnings of the unconsolidated affiliate. In 2014, 2013 and 2012, the Company received cash dividends, funded from capital transactions, from StoneRiver of $110 million, $122 million and $55 million, respectively, which were recorded as reductions in the Company’s investment in StoneRiver. The portions of these dividends that represented returns on the Company’s investment were $110 million in 2014, $6 million in 2013 and $23 million in 2012 and are reported in cash flows from operating activities. | |||||||||||||
During 2014, StoneRiver recognized net gains on the sales of subsidiary businesses, and in 2013, completed a transaction which reduced its ownership interest in another subsidiary business, resulting in a gain associated with the deconsolidation. The Company’s share of the net gains and related expenses on these transactions of $87 million in 2014 and $71 million in 2013 was recorded within income from investment in unconsolidated affiliate, with the related tax expenses of $36 million and $17 million, respectively, recorded through the income tax provision, in the accompanying consolidated statements of income. | |||||||||||||
Due to the significant income attributable to the 2013 gain on deconsolidation, summarized StoneRiver financial information is presented below and reflects certain of the 2014 dispositions as discontinued operations within the statements of income for all periods presented. | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Statements of income for the years ended December 31, | |||||||||||||
Total revenue | $ | 140 | $ | 606 | $ | 722 | |||||||
Operating (loss) income | (3 | ) | 8 | 39 | |||||||||
Income from continuing operations | 5 | 242 | 17 | ||||||||||
Net income | 138 | 243 | 16 | ||||||||||
Balance sheet as of December 31, | |||||||||||||
Current assets | $ | 82 | $ | 74 | |||||||||
Noncurrent assets | 198 | 629 | |||||||||||
Current liabilities | 47 | 97 | |||||||||||
Noncurrent liabilities | 254 | 527 |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long-Term Debt | 5. Long-Term Debt | ||||||||
The Company’s long-term debt consisted of the following at December 31: | |||||||||
(In millions) | 2014 | 2013 | |||||||
Term loan | $ | 810 | $ | 900 | |||||
Revolving credit facility | 42 | - | |||||||
3.125% senior notes due 2015 | 300 | 300 | |||||||
3.125% senior notes due 2016 | 600 | 600 | |||||||
6.8% senior notes due 2017 | 500 | 500 | |||||||
4.625% senior notes due 2020 | 449 | 449 | |||||||
4.75% senior notes due 2021 | 399 | 399 | |||||||
3.5% senior notes due 2022 | 697 | 697 | |||||||
Other borrowings | 6 | 3 | |||||||
Total debt | 3,803 | 3,848 | |||||||
Less: current maturities | (92 | ) | (92 | ) | |||||
Long-term debt | $ | 3,711 | $ | 3,756 | |||||
The estimated fair value of total debt was $3.9 billion at December 31, 2014 and 2013. The Company was in compliance with all financial debt covenants during 2014. Annual maturities of the Company’s total debt were as follows at December 31, 2014: | |||||||||
(In millions) | |||||||||
Year ending December 31, | |||||||||
2015 | $ | 92 | |||||||
2016 | 691 | ||||||||
2017 | 591 | ||||||||
2018 | 883 | ||||||||
2019 | 1 | ||||||||
Thereafter | 1,545 | ||||||||
Total | $ | 3,803 | |||||||
Term Loan | |||||||||
On October 25, 2013, the Company obtained a $900 million term loan under a new loan agreement with a syndicate of banks and used the net proceeds to repay outstanding borrowings under the revolving credit facility. This term loan bears interest at a variable rate based on LIBOR or the bank’s base rate, plus a specified margin based on the Company’s long-term debt rating in effect from time to time, and matures in October 2018. The variable interest rate on the term loan borrowings was 1.4% at December 31, 2014. Scheduled principal payments of $90 million commenced on December 31, 2014 and are due on the last business day of December of each year, with the remaining principal balance of $540 million due in October 2018. The term loan facility contains various restrictions and covenants substantially similar to those contained in the revolving credit facility described below. | |||||||||
Revolving Credit Facility | |||||||||
In connection with the term loan financing described above, on October 25, 2013, the Company entered into an amendment to its existing $2.0 billion revolving credit agreement with a syndicate of banks that conformed certain of its provisions to those in the new term loan agreement and extended its maturity to October 25, 2018. Borrowings under the amended revolving credit facility bear interest at a variable rate based on LIBOR or the bank’s base rate, plus a specified margin based on the Company’s long-term debt rating in effect from time to time. The weighted average variable interest rate on the revolving credit facility borrowings was 1.15% at December 31, 2014. There are no significant commitment fees and no compensating balance requirements. The revolving credit facility contains various restrictions and covenants that require the Company, among other things, to (i) limit its consolidated indebtedness as of the end of each fiscal quarter to no more than three and one-half times consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments during the period of four fiscal quarters then ended, and (ii) maintain consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments of at least three times consolidated interest expense as of the end of each fiscal quarter for the period of four fiscal quarters then ended. | |||||||||
Senior Notes | |||||||||
In September 2012, the Company issued $700 million aggregate principal amount of 3.5% senior notes due in October 2022. These senior notes, along with the Company’s 3.125% senior notes due in October 2015 and its 4.625% senior notes due in October 2020, pay interest at the stated rates on April 1 and October 1 of each year. The Company’s 3.125% senior notes due in June 2016 and 4.75% senior notes due in June 2021 pay interest at the stated rates on June 15 and December 15 of each year, and the Company’s 6.8% senior notes due in November 2017 pay interest at the stated rate on May 20 and November 20 of each year. The interest rates applicable to the senior notes are subject to an increase of up to two percent in the event that the Company’s credit rating is downgraded below investment grade. The indenture governing the senior notes contains covenants that, among other matters, limit (i) the Company’s ability to consolidate or merge 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. At December 31, 2014, the Company’s 3.125% senior notes due in October 2015 were classified in the consolidated balance sheet as long-term and within the debt maturity schedule above as maturing in October 2018, the date that the Company’s revolving credit facility expires, as the Company has the intent to refinance this debt on a long-term basis and the ability to do so under its revolving credit facility. |
Derivative_Hedge_Contracts
Derivative Hedge Contracts | 12 Months Ended |
Dec. 31, 2014 | |
Derivative Hedge Contracts | 6. Derivative Hedge Contracts |
The Company maintained forward-starting interest rate swap agreements (“Forward-Starting Swaps”), designated as cash flow hedges, with a total notional value of $550 million to hedge against changes in interest rates applicable to forecasted five-year and ten-year fixed rate borrowings. Upon the issuance of senior notes in September 2012, the Company paid $88 million, included in cash flows from operating activities, to settle the Forward-Starting Swaps and recognized approximately $4 million of interest expense due to hedge ineffectiveness. The remaining $84 million was recorded in accumulated other comprehensive loss, net of income taxes of $33 million, and is being recognized as interest expense over the terms of the originally forecasted interest payments. | |
The components of other comprehensive income pertaining to interest rate hedge contracts are presented in the consolidated statements of comprehensive income. Based on the amounts recorded in accumulated other comprehensive loss at December 31, 2014, the Company estimates that it will recognize approximately $14 million in interest expense during the next twelve months related to settled interest rate hedge contracts. | |
The Company has entered into foreign currency forward exchange contracts, which have been designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. As of December 31, 2014 and 2013, the notional amount of these derivatives was approximately $73 million and $53 million, respectively, and the fair value totaling approximately $1 million was recorded in current accrued expenses in the consolidated balance sheets at December 31, 2014 and 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | 7. Income Taxes | ||||||||||||
A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for continuing operations is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal effect | 2.6 | % | 2.5 | % | 2.5 | % | |||||||
Unconsolidated affiliate tax | 3.4 | % | 1.9 | % | - | ||||||||
Domestic production activities deduction | (4.1 | %) | (1.3 | %) | (4.2 | %) | |||||||
Other, net | (0.3 | %) | (1.6 | %) | 0.7 | % | |||||||
Effective income tax rate | 36.6 | % | 36.5 | % | 34 | % | |||||||
The income tax provision for continuing operations was as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Federal | $ | 331 | $ | 290 | $ | 250 | |||||||
State | 40 | 35 | 36 | ||||||||||
Foreign | 10 | 12 | 9 | ||||||||||
381 | 337 | 295 | |||||||||||
Deferred: | |||||||||||||
Federal | (4 | ) | (12 | ) | 3 | ||||||||
State | 6 | 1 | - | ||||||||||
Foreign | 1 | 2 | 2 | ||||||||||
3 | (9 | ) | 5 | ||||||||||
Income tax provision | $ | 384 | $ | 328 | $ | 300 | |||||||
Significant components of deferred tax assets and liabilities consisted of the following at December 31: | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Accrued expenses | $ | 37 | $ | 35 | |||||||||
Interest rate hedge contracts | 28 | 34 | |||||||||||
Share-based compensation | 46 | 41 | |||||||||||
Net operating loss and credit carry-forwards | 123 | 158 | |||||||||||
Deferred revenue | 47 | 40 | |||||||||||
Other | 28 | 16 | |||||||||||
Subtotal | 309 | 324 | |||||||||||
Valuation allowance | (42 | ) | (42 | ) | |||||||||
Total deferred tax assets | 267 | 282 | |||||||||||
Capital software development costs | (127 | ) | (109 | ) | |||||||||
Intangible assets | (737 | ) | (763 | ) | |||||||||
Property and equipment | (42 | ) | (31 | ) | |||||||||
Other | (35 | ) | (37 | ) | |||||||||
Total deferred tax liabilities | (941 | ) | (940 | ) | |||||||||
Total | $ | (674 | ) | $ | (658 | ) | |||||||
Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31: | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Current assets | $ | 42 | $ | 55 | |||||||||
Noncurrent liabilities | (716 | ) | (713 | ) | |||||||||
Total | $ | (674 | ) | $ | (658 | ) | |||||||
Unrecognized tax benefits were as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits - Beginning of year | $ | 60 | $ | 56 | $ | 27 | |||||||
Increases for tax positions taken during the current year | 9 | 9 | 12 | ||||||||||
Increases for tax positions taken in prior years | 10 | 6 | 19 | ||||||||||
Decreases for tax positions taken in prior years | (21 | ) | (7 | ) | - | ||||||||
Decreases for settlements | (1 | ) | (2 | ) | (1 | ) | |||||||
Lapse of the statute of limitations | (2 | ) | (2 | ) | (1 | ) | |||||||
Unrecognized tax benefits - End of year | $ | 55 | $ | 60 | $ | 56 | |||||||
At December 31, 2014, unrecognized tax benefits of $44 million, net of federal and state benefits, would affect the effective income tax rate from continuing operations if recognized. In 2015, reductions to unrecognized tax benefits for decreases in tax positions taken in prior years, settlements and the lapse of statutes of limitations are estimated to total approximately $3 million. The Company classifies interest expense and penalties related to income taxes as components of its income tax provision. The income tax provision from continuing operations included interest expense and penalties on unrecognized tax benefits of less than $1 million in each of 2014, 2013 and 2012. Accrued interest expense and penalties related to unrecognized tax benefits totaled $5 million and $4 million at December 31, 2014 and 2013, respectively. | |||||||||||||
The Company’s federal tax returns for 2009 through 2014 and tax returns in certain states and foreign jurisdictions for 2006 through 2014 remain subject to examination by taxing authorities. At December 31, 2014, the Company had federal net operating loss carry-forwards of $193 million, which expire in 2015 through 2031, state net operating loss carry-forwards of $574 million, which expire in 2015 through 2034, and foreign net operating loss carry-forwards of $83 million, $51 million of which expire in 2017 through 2034, and the remainder of which do not expire. |
Employee_Stock_and_Savings_Pla
Employee Stock and Savings Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Employee Stock and Savings Plans | 8. Employee Stock and Savings Plans | ||||||||||||||||
Stock Plans | |||||||||||||||||
The Company recognizes the fair value of share-based compensation awards granted to employees in cost of processing and services, cost of product, and selling, general and administrative expense in its consolidated statements of income. | |||||||||||||||||
The Company’s share-based compensation primarily consists of the following: | |||||||||||||||||
Stock Options – The Company grants stock options to employees and non-employee directors at exercise prices equal to the fair market value of the Company’s stock on the dates of grant, which are typically in the first quarter of the year. Stock options generally vest over a three-year period beginning on the first anniversary of the grant. All stock options expire ten years from the date of the award. The Company recognizes compensation expense for the fair value of the stock options over the requisite service period of the stock option award. | |||||||||||||||||
Restricted Stock Units – The Company awards restricted stock units to employees and non-employee directors. The Company recognizes compensation expense for restricted stock units based on the market price of the common stock on the date of award over the period during which the awards vest. | |||||||||||||||||
Employee Stock Purchase Plan – The Company maintains an employee stock purchase plan that allows eligible employees to purchase a limited number of shares of common stock each quarter through payroll deductions at 85% of the closing price of the Company’s common stock on the last business day of each calendar quarter. The Company recognizes compensation expense related to the 15% discount on the purchase date. | |||||||||||||||||
Share-based compensation expense was $49 million in 2014, $46 million in 2013 and $44 million in 2012. The income tax benefits related to share-based compensation totaled $17 million, $16 million and $15 million in 2014, 2013 and 2012, respectively. At December 31, 2014, the total remaining unrecognized compensation cost for unvested stock options and restricted stock units, net of estimated forfeitures, of $71 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 2014, 2013 and 2012 was $18.90, $13.00 and $10.86 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: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected life (in years) | 6.3 | 6.4 | 6.5 | ||||||||||||||
Average risk-free interest rate | 2 | % | 0.9 | % | 1.3 | % | |||||||||||
Expected volatility | 29.6 | % | 29.9 | % | 31.1 | % | |||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
The Company determined the expected life of stock options using historical data adjusted for known factors that could alter historical exercise behavior. The risk-free interest rate is based on the U.S. treasury yield curve in effect as of the grant date. Expected volatility is determined using weighted-average implied market volatility combined with historical volatility. The Company believes that a blend of historical volatility and implied volatility better reflects future market conditions and better indicates expected volatility than purely historical volatility. | |||||||||||||||||
A summary of stock option activity is as follows: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
(In thousands) | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (In millions) | |||||||||||||||
Term (Years) | |||||||||||||||||
Stock options outstanding - December 31, 2013 | 10,080 | $ | 28.97 | ||||||||||||||
Granted | 1,357 | 57.29 | |||||||||||||||
Forfeited | (288 | ) | 40.6 | ||||||||||||||
Exercised | (1,275 | ) | 27.65 | ||||||||||||||
Stock options outstanding - December 31, 2014 | 9,874 | $ | 32.69 | 5.7 | $ | 378 | |||||||||||
Stock options exercisable - December 31, 2014 | 6,838 | $ | 26.4 | 4.4 | $ | 305 | |||||||||||
A summary of restricted stock unit activity is as follows: | |||||||||||||||||
Shares | Weighted- | ||||||||||||||||
(In thousands) | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Restricted stock units - December 31, 2013 | 2,157 | $ | 34.92 | ||||||||||||||
Granted | 539 | 58.87 | |||||||||||||||
Forfeited | (240 | ) | 39.86 | ||||||||||||||
Vested | (594 | ) | 32.16 | ||||||||||||||
Restricted stock units - December 31, 2014 | 1,862 | $ | 42.02 | ||||||||||||||
The table below presents additional information related to stock option and restricted stock unit activity: | |||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||
Total intrinsic value of stock options exercised | $ | 43 | $ | 27 | $ | 51 | |||||||||||
Cash received from stock option exercises | 33 | 32 | 80 | ||||||||||||||
Gross income tax benefit from stock option exercises | 16 | 10 | 20 | ||||||||||||||
Fair value of restricted stock units upon vesting | 35 | 31 | 29 | ||||||||||||||
As of December 31, 2014, 21.6 million share-based awards were available for grant under the Fiserv, Inc. 2007 Omnibus Incentive Plan. Under its employee stock purchase plan, the Company issued 0.6 million, 0.7 million and 0.8 million shares in 2014, 2013 and 2012, respectively. As of December 31, 2014, there were 6.4 million shares available for issuance under the employee stock purchase plan. The number of shares remaining available for future issuance under the employee stock purchase plan is subject to an annual increase on the first day of each fiscal year equal to the lesser of (i) 2.0 million shares, (ii) 1% of the shares of the Company’s common stock outstanding on such date or (iii) a lesser amount determined by the Company’s board of directors. | |||||||||||||||||
Employee Savings Plans | |||||||||||||||||
The Company and its subsidiaries have defined contribution savings plans covering substantially all employees. Under the plans, eligible participants may elect to contribute a specified percentage of their salaries and the Company makes matching contributions, each subject to certain limitations. Expenses for company contributions under these plans totaled $37 million, $36 million and $33 million in 2014, 2013 and 2012, respectively. |
Leases_Commitments_and_Conting
Leases, Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases, Commitments and Contingencies | 9. Leases, Commitments and Contingencies | ||||
Leases | |||||
The Company leases certain facilities and equipment under operating leases. Most leases contain renewal options for varying periods. Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2014: | |||||
(In millions) | |||||
Year ending December 31, | |||||
2015 | $ | 93 | |||
2016 | 77 | ||||
2017 | 60 | ||||
2018 | 40 | ||||
2019 | 27 | ||||
Thereafter | 86 | ||||
Total | $ | 383 | |||
Rent expense for all operating leases was $108 million, $105 million and $110 million during 2014, 2013 and 2012, respectively. | |||||
Commitments and Contingencies | |||||
Litigation | |||||
In the normal course of business, the Company and its subsidiaries are named as defendants in lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may ultimately result from such lawsuits are not expected to have a material adverse effect on the Company’s consolidated financial statements. | |||||
Electronic Payments Transactions | |||||
In connection with the Company’s processing of electronic payments transactions, funds received from subscribers are invested from the time the Company collects the funds until payments are made to the applicable recipients. These subscriber funds are invested in short-term, highly liquid investments. Subscriber funds, which are not included in the Company’s consolidated balance sheets, can fluctuate significantly based on consumer bill payment and debit card activity and totaled approximately $1.4 billion at December 31, 2014. | |||||
Indemnifications and Warranties | |||||
Subject to limitations and exclusions, the Company may indemnify its clients from certain costs resulting from claims of patent, copyright or trademark infringement associated with its clients’ use of the Company’s products or services. The Company may also warrant to clients that its products and services will operate substantially in accordance with identified specifications. From time to time, in connection with sales of businesses, the Company agrees to indemnify the buyers for liabilities associated with the businesses that are sold. Payments, net of recoveries, under such indemnification or warranty provisions were not material to the Company’s consolidated results of operations or financial position. |
Business_Segment_Information
Business Segment Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Business Segment Information | 10. Business Segment Information | ||||||||||||||||
The Company’s operations are comprised of the Payments segment and the Financial segment. The Payments segment primarily provides debit, credit and prepaid card processing and services, electronic bill payment and presentment services, internet and mobile banking software and services, person-to-person payment services, and other electronic payments software and services. The businesses in this segment also provide card and print personalization services, investment account processing services for separately managed accounts, and fraud and risk management products and services. The Financial segment provides banks, thrifts, credit unions, and leasing and finance companies with account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services that support numerous types of financial transactions. The Corporate and Other segment primarily consists of unallocated corporate expenses, amortization of acquisition-related intangible assets, intercompany eliminations and other costs that are not considered when management evaluates segment performance. | |||||||||||||||||
(In millions) | Payments | Financial | Corporate | Total | |||||||||||||
and Other | |||||||||||||||||
2014 | |||||||||||||||||
Processing and services revenue | $ | 2,030 | $ | 2,195 | $ | (6 | ) | $ | 4,219 | ||||||||
Product revenue | 717 | 172 | (42 | ) | 847 | ||||||||||||
Total revenue | 2,747 | 2,367 | (48 | ) | 5,066 | ||||||||||||
Operating income | 768 | 773 | (331 | ) | 1,210 | ||||||||||||
Total assets | 5,850 | 3,225 | 262 | 9,337 | |||||||||||||
Capital expenditures | 176 | 107 | 9 | 292 | |||||||||||||
Depreciation and amortization expense | 102 | 71 | 231 | 404 | |||||||||||||
2013 | |||||||||||||||||
Processing and services revenue | $ | 1,902 | $ | 2,143 | $ | (10 | ) | $ | 4,035 | ||||||||
Product revenue | 650 | 166 | (37 | ) | 779 | ||||||||||||
Total revenue | 2,552 | 2,309 | (47 | ) | 4,814 | ||||||||||||
Operating income | 702 | 745 | (386 | ) | 1,061 | ||||||||||||
Total assets | 5,985 | 3,220 | 308 | 9,513 | |||||||||||||
Capital expenditures | 131 | 87 | 18 | 236 | |||||||||||||
Depreciation and amortization expense | 93 | 71 | 239 | 403 | |||||||||||||
2012 | |||||||||||||||||
Processing and services revenue | $ | 1,788 | $ | 1,887 | $ | (12 | ) | $ | 3,663 | ||||||||
Product revenue | 655 | 153 | (35 | ) | 773 | ||||||||||||
Total revenue | 2,443 | 2,040 | (47 | ) | 4,436 | ||||||||||||
Operating income | 657 | 652 | (261 | ) | 1,048 | ||||||||||||
Total assets | 6,109 | 2,094 | 294 | 8,497 | |||||||||||||
Capital expenditures | 107 | 76 | 10 | 193 | |||||||||||||
Depreciation and amortization expense | 97 | 73 | 180 | 350 | |||||||||||||
Revenue to clients outside the United States comprised approximately 6% of total revenue in 2014 and 7% in each of 2013 and 2012. |
Subsidiary_Guarantors_of_LongT
Subsidiary Guarantors of Long-Term Debt | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Subsidiary Guarantors of Long-Term Debt | 11. Subsidiary Guarantors of Long-Term Debt | ||||||||||||||||||||
Certain of the Company’s 100% owned domestic subsidiaries (“Guarantor Subsidiaries”) jointly and severally, and fully and unconditionally, guarantee the Company’s indebtedness under its senior notes. Under the indentures governing the senior notes, a guarantee of a Guarantor Subsidiary will terminate upon the following customary circumstances: the sale of such Guarantor Subsidiary if such sale complies with the indenture; if such Guarantor Subsidiary no longer guarantees certain other indebtedness of the Company, including as a result of the release of the Guarantor Subsidiaries if Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc. increase the Company’s credit rating to A- and A3, respectively; or the defeasance or discharge of the indenture. The following condensed consolidating financial information is presented on the equity method and reflects summarized financial information for: (i) the Company; (ii) the Guarantor Subsidiaries on a combined basis; and (iii) the Company’s non-guarantor subsidiaries on a combined basis. The following condensed consolidating financial information for 2013 and 2012 reflects the reporting of Club Solutions as a discontinued operation. Certain intercompany amounts reported in the prior periods within the condensed consolidating balance sheet and condensed consolidating statements of cash flows have been reclassified to conform to the current period presentation and are not considered to be material by the Company. | |||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenue: | |||||||||||||||||||||
Processing and services | $ | - | $ | 3,077 | $ | 1,318 | $ | (176 | ) | $ | 4,219 | ||||||||||
Product | - | 810 | 108 | (71 | ) | 847 | |||||||||||||||
Total revenue | - | 3,887 | 1,426 | (247 | ) | 5,066 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Cost of processing and services | - | 1,587 | 753 | (176 | ) | 2,164 | |||||||||||||||
Cost of product | - | 681 | 107 | (71 | ) | 717 | |||||||||||||||
Selling, general and administrative | 95 | 657 | 223 | - | 975 | ||||||||||||||||
Total expenses | 95 | 2,925 | 1,083 | (247 | ) | 3,856 | |||||||||||||||
Operating income (loss) | (95 | ) | 962 | 343 | - | 1,210 | |||||||||||||||
Interest expense, net | (130 | ) | (25 | ) | (8 | ) | - | (163 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | (225 | ) | 937 | 335 | - | 1,047 | |||||||||||||||
Income tax (provision) benefit | 109 | (373 | ) | (120 | ) | - | (384 | ) | |||||||||||||
Income from investment in unconsolidated affiliate | - | 91 | - | - | 91 | ||||||||||||||||
Equity in earnings of consolidated affiliates | 870 | - | - | (870 | ) | - | |||||||||||||||
Income from continuing operations | 754 | 655 | 215 | (870 | ) | 754 | |||||||||||||||
Income (loss) from discontinued operations, net of income taxes | - | - | - | - | - | ||||||||||||||||
Net income | $ | 754 | $ | 655 | $ | 215 | $ | (870 | ) | $ | 754 | ||||||||||
Comprehensive income | $ | 751 | $ | 655 | $ | 204 | $ | (859 | ) | $ | 751 | ||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenue: | |||||||||||||||||||||
Processing and services | $ | - | $ | 2,919 | $ | 1,281 | $ | (165 | ) | $ | 4,035 | ||||||||||
Product | - | 734 | 109 | (64 | ) | 779 | |||||||||||||||
Total revenue | - | 3,653 | 1,390 | (229 | ) | 4,814 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Cost of processing and services | - | 1,481 | 765 | (165 | ) | 2,081 | |||||||||||||||
Cost of product | - | 667 | 92 | (64 | ) | 695 | |||||||||||||||
Selling, general and administrative | 110 | 632 | 235 | - | 977 | ||||||||||||||||
Total expenses | 110 | 2,780 | 1,092 | (229 | ) | 3,753 | |||||||||||||||
Operating income (loss) | (110 | ) | 873 | 298 | - | 1,061 | |||||||||||||||
Interest expense, net | (129 | ) | (20 | ) | (14 | ) | - | (163 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | (239 | ) | 853 | 284 | - | 898 | |||||||||||||||
Income tax (provision) benefit | 102 | (327 | ) | (103 | ) | - | (328 | ) | |||||||||||||
Income from investment in unconsolidated affiliate | - | 80 | - | - | 80 | ||||||||||||||||
Equity in earnings of consolidated affiliates | 787 | - | - | (787 | ) | - | |||||||||||||||
Income from continuing operations | 650 | 606 | 181 | (787 | ) | 650 | |||||||||||||||
Loss from discontinued operations, net of income taxes | (2 | ) | - | - | - | (2 | ) | ||||||||||||||
Net income | $ | 648 | $ | 606 | $ | 181 | $ | (787 | ) | $ | 648 | ||||||||||
Comprehensive income | $ | 648 | $ | 606 | $ | 173 | $ | (779 | ) | $ | 648 | ||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenue: | |||||||||||||||||||||
Processing and services | $ | - | $ | 2,596 | $ | 1,226 | $ | (159 | ) | $ | 3,663 | ||||||||||
Product | - | 717 | 114 | (58 | ) | 773 | |||||||||||||||
Total revenue | - | 3,313 | 1,340 | (217 | ) | 4,436 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Cost of processing and services | - | 1,385 | 710 | (159 | ) | 1,936 | |||||||||||||||
Cost of product | - | 615 | 71 | (58 | ) | 628 | |||||||||||||||
Selling, general and administrative | 104 | 499 | 221 | - | 824 | ||||||||||||||||
Total expenses | 104 | 2,499 | 1,002 | (217 | ) | 3,388 | |||||||||||||||
Operating income (loss) | (104 | ) | 814 | 338 | - | 1,048 | |||||||||||||||
Interest expense, net | (104 | ) | (57 | ) | (6 | ) | - | (167 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | (208 | ) | 757 | 332 | - | 881 | |||||||||||||||
Income tax (provision) benefit | 103 | (280 | ) | (123 | ) | - | (300 | ) | |||||||||||||
Income from investment in unconsolidated affiliate | - | 11 | - | - | 11 | ||||||||||||||||
Equity in earnings of consolidated affiliates | 697 | - | - | (697 | ) | - | |||||||||||||||
Income from continuing operations | 592 | 488 | 209 | (697 | ) | 592 | |||||||||||||||
Income from discontinued operations, net of income taxes | 19 | 5 | - | (5 | ) | 19 | |||||||||||||||
Net income | $ | 611 | $ | 493 | $ | 209 | $ | (702 | ) | $ | 611 | ||||||||||
Comprehensive income | $ | 629 | $ | 493 | $ | 213 | $ | (706 | ) | $ | 629 | ||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 21 | $ | 80 | $ | 193 | $ | - | $ | 294 | |||||||||||
Trade accounts receivable, net | - | 510 | 288 | - | 798 | ||||||||||||||||
Deferred income taxes | 40 | - | 2 | - | 42 | ||||||||||||||||
Prepaid expenses and other current assets | 8 | 209 | 135 | - | 352 | ||||||||||||||||
Total current assets | 69 | 799 | 618 | - | 1,486 | ||||||||||||||||
Due from consolidated affiliates | - | 2,467 | 670 | (3,137 | ) | - | |||||||||||||||
Investments in consolidated affiliates | 10,987 | - | - | (10,987 | ) | - | |||||||||||||||
Intangible assets, net | 23 | 1,734 | 246 | - | 2,003 | ||||||||||||||||
Goodwill | - | 4,154 | 1,055 | - | 5,209 | ||||||||||||||||
Other long-term assets | 36 | 496 | 107 | - | 639 | ||||||||||||||||
Total assets | $ | 11,115 | $ | 9,650 | $ | 2,696 | $ | (14,124 | ) | $ | 9,337 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Accounts payable and accrued expenses | $ | 119 | $ | 586 | $ | 200 | $ | - | $ | 905 | |||||||||||
Current maturities of long-term debt | 90 | 2 | - | - | 92 | ||||||||||||||||
Deferred revenue | - | 285 | 204 | - | 489 | ||||||||||||||||
Total current liabilities | 209 | 873 | 404 | - | 1,486 | ||||||||||||||||
Long-term debt | 3,707 | 4 | - | - | 3,711 | ||||||||||||||||
Due to consolidated affiliates | 3,137 | - | - | (3,137 | ) | - | |||||||||||||||
Other long-term liabilities | 767 | 31 | 47 | - | 845 | ||||||||||||||||
Total liabilities | 7,820 | 908 | 451 | (3,137 | ) | 6,042 | |||||||||||||||
Total shareholders’ equity | 3,295 | 8,742 | 2,245 | (10,987 | ) | 3,295 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 11,115 | $ | 9,650 | $ | 2,696 | $ | (14,124 | ) | $ | 9,337 | ||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 139 | $ | 76 | $ | 185 | $ | - | $ | 400 | |||||||||||
Trade accounts receivable, net | - | 465 | 286 | - | 751 | ||||||||||||||||
Deferred income taxes | 54 | - | 1 | - | 55 | ||||||||||||||||
Prepaid expenses and other current assets | 27 | 195 | 144 | - | 366 | ||||||||||||||||
Total current assets | 220 | 736 | 616 | - | 1,572 | ||||||||||||||||
Due from consolidated affiliates | - | 1,683 | 425 | (2,108 | ) | - | |||||||||||||||
Investments in consolidated affiliates | 10,122 | - | - | (10,122 | ) | - | |||||||||||||||
Intangible assets, net | 22 | 1,866 | 254 | - | 2,142 | ||||||||||||||||
Goodwill | - | 4,150 | 1,066 | - | 5,216 | ||||||||||||||||
Other long-term assets | 33 | 448 | 102 | - | 583 | ||||||||||||||||
Total assets | $ | 10,397 | $ | 8,883 | $ | 2,463 | $ | (12,230 | ) | $ | 9,513 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Accounts payable and accrued expenses | $ | 87 | $ | 463 | $ | 206 | $ | - | $ | 756 | |||||||||||
Current maturities of long-term debt | 90 | 2 | - | - | 92 | ||||||||||||||||
Deferred revenue | - | 292 | 192 | - | 484 | ||||||||||||||||
Total current liabilities | 177 | 757 | 398 | - | 1,332 | ||||||||||||||||
Long-term debt | 3,754 | 2 | - | - | 3,756 | ||||||||||||||||
Due to consolidated affiliates | 2,108 | - | - | (2,108 | ) | - | |||||||||||||||
Other long-term liabilities | 773 | 25 | 42 | - | 840 | ||||||||||||||||
Total liabilities | 6,812 | 784 | 440 | (2,108 | ) | 5,928 | |||||||||||||||
Total shareholders’ equity | 3,585 | 8,099 | 2,023 | (10,122 | ) | 3,585 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 10,397 | $ | 8,883 | $ | 2,463 | $ | (12,230 | ) | $ | 9,513 | ||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | (34 | ) | $ | 1,029 | $ | 312 | $ | - | $ | 1,307 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures, including capitalization of software costs | (3 | ) | (205 | ) | (84 | ) | - | (292 | ) | ||||||||||||
Net proceeds from investments | - | - | 7 | - | 7 | ||||||||||||||||
Other investing activities | (13 | ) | (856 | ) | (240 | ) | 1,108 | (1 | ) | ||||||||||||
Net cash used in investing activities from continuing operations | (16 | ) | (1,061 | ) | (317 | ) | 1,108 | (286 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Debt proceeds | 604 | - | - | - | 604 | ||||||||||||||||
Debt repayments | (653 | ) | - | - | - | (653 | ) | ||||||||||||||
Issuance of treasury stock | 53 | - | - | - | 53 | ||||||||||||||||
Purchases of treasury stock | (1,148 | ) | - | - | - | (1,148 | ) | ||||||||||||||
Other financing activities | 1,077 | 36 | 13 | (1,108 | ) | 18 | |||||||||||||||
Net cash used in financing activities from continuing operations | (67 | ) | 36 | 13 | (1,108 | ) | (1,126 | ) | |||||||||||||
Net change in cash and cash equivalents from continuing operations | (117 | ) | 4 | 8 | - | (105 | ) | ||||||||||||||
Net cash flows to discontinued operations | (1 | ) | - | - | - | (1 | ) | ||||||||||||||
Beginning balance | 139 | 76 | 185 | - | 400 | ||||||||||||||||
Ending balance | $ | 21 | $ | 80 | $ | 193 | $ | - | $ | 294 | |||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | (61 | ) | $ | 842 | $ | 258 | $ | - | $ | 1,039 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures, including capitalization of software costs | (3 | ) | (169 | ) | (64 | ) | - | (236 | ) | ||||||||||||
Payments for acquisitions of businesses, net of cash acquired | (55 | ) | 25 | - | - | (30 | ) | ||||||||||||||
Dividend from unconsolidated affiliate | - | 116 | - | - | 116 | ||||||||||||||||
Net proceeds from investments | - | 2 | 2 | - | 4 | ||||||||||||||||
Other investing activities | (2 | ) | (839 | ) | (204 | ) | 1,043 | (2 | ) | ||||||||||||
Net cash used in investing activities from continuing operations | (60 | ) | (865 | ) | (266 | ) | 1,043 | (148 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Debt proceeds | 2,252 | - | - | - | 2,252 | ||||||||||||||||
Debt repayments | (2,589 | ) | (1 | ) | - | - | (2,590 | ) | |||||||||||||
Issuance of treasury stock | 49 | - | - | - | 49 | ||||||||||||||||
Purchases of treasury stock | (578 | ) | - | - | - | (578 | ) | ||||||||||||||
Other financing activities | 1,050 | 1 | (14 | ) | (1,043 | ) | (6 | ) | |||||||||||||
Net cash (used in) provided by financing activities from continuing operations | 184 | - | (14 | ) | (1,043 | ) | (873 | ) | |||||||||||||
Net change in cash and cash equivalents from continuing operations | 63 | (23 | ) | (22 | ) | - | 18 | ||||||||||||||
Net cash flows from (to) discontinued operations | (9 | ) | 33 | - | - | 24 | |||||||||||||||
Beginning balance | 85 | 66 | 207 | - | 358 | ||||||||||||||||
Ending balance | $ | 139 | $ | 76 | $ | 185 | $ | - | $ | 400 | |||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | (168 | ) | $ | 722 | $ | 272 | $ | - | $ | 826 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures, including capitalization of software costs | (4 | ) | (142 | ) | (47 | ) | - | (193 | ) | ||||||||||||
Dividend from unconsolidated affiliate | - | 32 | - | - | 32 | ||||||||||||||||
Net proceeds from investments | - | 2 | 26 | - | 28 | ||||||||||||||||
Other investing activities | (2 | ) | (621 | ) | (197 | ) | 817 | (3 | ) | ||||||||||||
Net cash used in investing activities from continuing operations | (6 | ) | (729 | ) | (218 | ) | 817 | (136 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Debt proceeds | 1,469 | - | - | - | 1,469 | ||||||||||||||||
Debt repayments | (1,592 | ) | (6 | ) | (44 | ) | - | (1,642 | ) | ||||||||||||
Issuance of treasury stock | 96 | - | - | - | 96 | ||||||||||||||||
Purchases of treasury stock | (634 | ) | - | - | - | (634 | ) | ||||||||||||||
Other financing activities | 817 | 1 | 4 | (817 | ) | 5 | |||||||||||||||
Net cash (used in) provided by financing activities from continuing operations | 156 | (5 | ) | (40 | ) | (817 | ) | (706 | ) | ||||||||||||
Net change in cash and cash equivalents from continuing operations | (18 | ) | (12 | ) | 14 | - | (16 | ) | |||||||||||||
Net cash flows from discontinued operations | 30 | 7 | - | - | 37 | ||||||||||||||||
Beginning balance | 73 | 71 | 193 | - | 337 | ||||||||||||||||
Ending balance | $ | 85 | $ | 66 | $ | 207 | $ | - | $ | 358 | |||||||||||
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Data (unaudited) | 12. Quarterly Financial Data (unaudited) | ||||||||||||||||||||
Quarterly financial data for 2014 and 2013 was as follows: | |||||||||||||||||||||
(In millions, except per share data) | |||||||||||||||||||||
First | Second | Third | Fourth | Full | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||||||
2014 | |||||||||||||||||||||
Total revenue | $ | 1,234 | $ | 1,253 | $ | 1,263 | $ | 1,316 | $ | 5,066 | |||||||||||
Cost of processing and services | 541 | 532 | 537 | 554 | 2,164 | ||||||||||||||||
Cost of product | 180 | 171 | 168 | 198 | 717 | ||||||||||||||||
Selling, general and administrative expenses | 242 | 243 | 243 | 247 | 975 | ||||||||||||||||
Total expenses | 963 | 946 | 948 | 999 | 3,856 | ||||||||||||||||
Operating income | 271 | 307 | 315 | 317 | 1,210 | ||||||||||||||||
Income from continuing operations | 168 | 166 | 239 | 181 | 754 | ||||||||||||||||
Net income | 168 | 166 | 239 | 181 | 754 | ||||||||||||||||
Comprehensive income | 174 | 171 | 231 | 175 | 751 | ||||||||||||||||
Net income per share - continuing operations: (1) | |||||||||||||||||||||
Basic | $ | 0.66 | $ | 0.66 | $ | 0.96 | $ | 0.75 | $ | 3.04 | |||||||||||
Diluted | $ | 0.65 | $ | 0.65 | $ | 0.95 | $ | 0.73 | $ | 2.99 | |||||||||||
2013 | |||||||||||||||||||||
Total revenue | $ | 1,152 | $ | 1,198 | $ | 1,201 | $ | 1,263 | $ | 4,814 | |||||||||||
Cost of processing and services | 522 | 523 | 520 | 516 | 2,081 | ||||||||||||||||
Cost of product | 190 | 157 | 164 | 184 | 695 | ||||||||||||||||
Selling, general and administrative expenses | 229 | 245 | 237 | 266 | 977 | ||||||||||||||||
Total expenses | 941 | 925 | 921 | 966 | 3,753 | ||||||||||||||||
Operating income | 211 | 273 | 280 | 297 | 1,061 | ||||||||||||||||
Income from continuing operations | 117 | 152 | 161 | 220 | 650 | ||||||||||||||||
Net income | 117 | 151 | 159 | 221 | 648 | ||||||||||||||||
Comprehensive income | 115 | 146 | 163 | 224 | 648 | ||||||||||||||||
Net income per share - continuing operations: (1) | |||||||||||||||||||||
Basic | $ | 0.44 | $ | 0.57 | $ | 0.62 | $ | 0.85 | $ | 2.48 | |||||||||||
Diluted | $ | 0.43 | $ | 0.57 | $ | 0.61 | $ | 0.84 | $ | 2.44 | |||||||||||
-1 | Net income per share in each period is calculated using actual, unrounded amounts. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||||
The consolidated financial statements include the accounts of Fiserv, Inc. and all 100% owned subsidiaries. Investments in less than 50% owned affiliates in which the Company has significant influence but not control are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||
Stock Split | |||||||||||||
On November 20, 2013, the Company’s Board of Directors declared a two-for-one stock split of the Company’s common stock and a proportionate increase in the number of its authorized shares of common stock. The additional shares were distributed on December 16, 2013 to shareholders of record at the close of business on December 2, 2013. The Company’s common stock began trading at the split-adjusted price on December 17, 2013. All share and per share amounts are retroactively presented on a split-adjusted basis. The impact on the consolidated balance sheets of the stock split was an increase of $2 million to common stock and an offsetting reduction in additional paid-in capital, which has been retroactively restated. | |||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. | |||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), to clarify the principles of recognizing revenue and to create common revenue recognition guidance between U.S. generally accepted accounting principles and International Financial Reporting Standards. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This model involves a five-step process for achieving that core principle, along with comprehensive disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 will be effective for annual and interim periods after December 15, 2016; early application is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt this new guidance. The Company is currently assessing the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements. | |||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the amendments in ASU 2014-08, only those disposals that represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results will be reported as discontinued operations in the financial statements. ASU 2014-08 will be effective prospectively for annual and interim periods after December 15, 2014. | |||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||
The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in its consolidated financial statements on a recurring basis. Fair value represents the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability. | |||||||||||||
The fair values of cash equivalents, trade accounts receivable, settlement assets and obligations, and accounts payable approximate their respective carrying values due to the short period of time to maturity. The estimated fair value of debt is described in Note 5 and was estimated using quoted prices in active markets (level 2 of the fair value hierarchy) or using discounted cash flows based on the Company’s current incremental borrowing rates (level 3 of the fair value hierarchy). | |||||||||||||
Derivatives | Derivatives | ||||||||||||
Derivatives are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. If the derivative is designated as a cash flow hedge, the effective portions of the changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative are recognized in earnings. To the extent the fair value hedge is effective, there is an offsetting adjustment to the basis of the item being hedged. Ineffective portions of changes in the fair value of hedges are recognized in earnings. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. | |||||||||||||
Foreign Currency | Foreign Currency | ||||||||||||
Foreign currency denominated assets and liabilities, where the functional currency is the local currency, are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
The Company generates revenue from the delivery of processing, service and product solutions. Revenue is recognized when written contracts are signed, delivery has occurred, the fees are fixed or determinable, and collectability is reasonably assured. | |||||||||||||
Processing and services revenue is recognized as services are provided and is primarily derived from single element individual contracts that generate account- and transaction-based fees for data processing, transaction processing, electronic billing and payment services, electronic funds transfer, debit processing services, and consulting services. To a lesser extent, certain of the Company’s revenue is generated from multiple element arrangements involving various combinations of product and service deliverables. The deliverables within these arrangements are evaluated at contract inception to determine whether they represent separate units of accounting, and if so, contract consideration is allocated to each deliverable based on relative selling price. The relative selling price is determined using vendor specific objective evidence of fair value, third-party evidence or best estimate of selling price. Revenue is then recognized in accordance with the appropriate revenue recognition guidance applicable to the respective elements. Also included in processing and services revenue is software maintenance fee revenue for ongoing client support, which is recognized ratably over the term of the applicable support period, which is generally 12 months. Deferred revenue consists primarily of advance cash receipts for services and is recognized as revenue when the services are provided. | |||||||||||||
Product revenue is primarily derived from integrated print and card production sales, as well as software license sales which represented less than 4% of consolidated revenue. For software license agreements that do not require significant customization or modification, the Company recognizes software license revenue upon delivery, assuming persuasive evidence of an arrangement exists, the license fee is fixed or determinable, and collection is reasonably assured. Arrangements with customers that include significant customization, modification or production of software are accounted for under contract accounting, with revenue recognized using the percentage-of-completion method based upon efforts-expended, such as labor hours, to measure progress towards completion. Changes in estimates for revenues, costs and profits are recognized in the period in which they are determinable. | |||||||||||||
The Company includes reimbursements from clients, such as postage and telecommunication costs, in processing and services revenue and product revenue, while the related costs are included in cost of processing and services and cost of product. | |||||||||||||
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | ||||||||||||
Selling, general and administrative expenses primarily consist of: salaries, wages and related expenses paid to sales personnel, administrative employees and management; advertising and promotional costs; depreciation and amortization; and other selling and administrative expenses. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less. | |||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||||||||||||
The Company analyzes the collectibility of trade accounts receivable by considering historical bad debts, client creditworthiness, current economic trends, changes in client payment terms and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. The allowance for doubtful accounts was $11 million and $15 million at December 31, 2014 and 2013, respectively. | |||||||||||||
Prepaid Expenses | Prepaid Expenses | ||||||||||||
Prepaid expenses represent advance payments for goods and services to be consumed in the future, such as maintenance, postage and insurance, and totaled $132 million and $122 million at December 31, 2014 and 2013, respectively. | |||||||||||||
Settlement Assets and Obligations | Settlement Assets and Obligations | ||||||||||||
Settlement assets of $182 million and $189 million were included in prepaid expenses and other current assets at December 31, 2014 and 2013, respectively, and settlement obligations of $176 million and $184 million were included in accrued expenses at December 31, 2014 and 2013, respectively. Settlement assets and obligations result from timing differences between collection and fulfillment of payment transactions primarily associated with the Company’s walk-in and expedited bill payment service businesses. Settlement assets represent cash received or amounts receivable from agents, payment networks or directly from consumers. Settlement obligations represent amounts payable to clients and payees. | |||||||||||||
Property and Equipment | Property and Equipment | ||||||||||||
Property and equipment are reported at cost. Depreciation of property and equipment is computed primarily using the straight-line method over the shorter of the estimated useful life of the asset or the leasehold period, if applicable. Property and equipment consisted of the following at December 31: | |||||||||||||
(In millions) | Estimated | 2014 | 2013 | ||||||||||
Useful Lives | |||||||||||||
Land | - | $ | 23 | $ | 23 | ||||||||
Data processing equipment | 3 to 7 years | 657 | 587 | ||||||||||
Buildings and leasehold improvements | 5 to 40 years | 209 | 202 | ||||||||||
Furniture and equipment | 3 to 10 years | 165 | 140 | ||||||||||
1,054 | 952 | ||||||||||||
Less: accumulated depreciation | (737 | ) | (686 | ) | |||||||||
Total | $ | 317 | $ | 266 | |||||||||
Depreciation expense for all property and equipment totaled $71 million, $70 million and $72 million in 2014, 2013 and 2012, respectively. | |||||||||||||
Intangible Assets | Intangible Assets | ||||||||||||
Intangible assets consisted of the following at December 31: | |||||||||||||
(In millions) | Gross | Accumulated | Net Book | ||||||||||
Carrying | Amortization | Value | |||||||||||
2014 | Amount | ||||||||||||
Customer related intangible assets | $ | 2,155 | $ | 797 | $ | 1,358 | |||||||
Acquired software and technology | 493 | 356 | 137 | ||||||||||
Trade names | 120 | 46 | 74 | ||||||||||
Capitalized software development costs | 574 | 240 | 334 | ||||||||||
Purchased software | 234 | 134 | 100 | ||||||||||
Total | $ | 3,576 | $ | 1,573 | $ | 2,003 | |||||||
(In millions) | Gross | Accumulated | Net Book | ||||||||||
Carrying | Amortization | Value | |||||||||||
2013 | Amount | ||||||||||||
Customer related intangible assets | $ | 2,155 | $ | 667 | $ | 1,488 | |||||||
Acquired software and technology | 493 | 289 | 204 | ||||||||||
Trade names | 120 | 39 | 81 | ||||||||||
Capitalized software development costs | 635 | 348 | 287 | ||||||||||
Purchased software | 277 | 195 | 82 | ||||||||||
Total | $ | 3,680 | $ | 1,538 | $ | 2,142 | |||||||
Customer related intangible assets represent customer contracts and relationships obtained as part of acquired businesses and are amortized over their estimated useful lives, generally 10 to 20 years. Acquired software and technology represents software and technology intangible assets obtained as part of acquired businesses and are amortized over their estimated useful lives, generally four to eight years. Trade names are amortized over their estimated useful lives, generally 10 to 20 years. Amortization expense for acquired intangible assets, which include customer related intangible assets, acquired software and technology, and trade names, totaled $204 million, $210 million and $160 million in 2014, 2013 and 2012, respectively. | |||||||||||||
The Company continually develops, maintains and enhances its products and systems. In each of 2014, 2013 and 2012, product development expenditures represented approximately 9% of the Company’s total revenue. Research and development costs incurred prior to the establishment of technological feasibility are expensed as incurred. Routine maintenance of software products, design costs and other development costs incurred prior to the establishment of a product’s technological feasibility are also expensed as incurred. Costs are capitalized commencing when the technological feasibility of the software has been established. | |||||||||||||
Capitalized software development costs represent the capitalization of certain costs incurred to develop new software or to enhance existing software which is marketed externally or utilized by the Company to process client transactions. Capitalized software development costs are amortized over their estimated useful lives, generally five years. Gross software development costs capitalized for new products and enhancements to existing products totaled $129 million, $120 million and $102 million in 2014, 2013 and 2012, respectively. Amortization of previously capitalized software development costs that have been placed into service was $82 million, $72 million and $73 million in 2014, 2013 and 2012, respectively. During 2013, the Company incurred a $30 million non-cash impairment charge to capitalized software development costs as a result of the acquisition of Open Solutions, Inc. (“Open Solutions”). See Note 2. | |||||||||||||
Purchased software represents software licenses purchased from third parties and is amortized over their estimated useful lives, generally three to five years. Amortization of purchased software totaled $29 million, $32 million and $34 million in 2014, 2013 and 2012, respectively. | |||||||||||||
The Company estimates that annual amortization expense with respect to acquired intangible assets recorded at December 31, 2014 will be approximately $190 million in 2015, $150 million in 2016, $140 million in each of 2017 and 2018, and $130 million in 2019. Annual amortization expense in 2015 with respect to capitalized and purchased software recorded at December 31, 2014 is estimated to approximate $115 million. | |||||||||||||
Goodwill | Goodwill | ||||||||||||
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis, or more frequently if circumstances indicate possible impairment. Goodwill is tested for impairment at a reporting unit level, determined to be at an operating segment level or one level below. When reviewing goodwill for impairment, the Company considers the amount of excess fair value over the carrying value of each reporting unit, the period of time since a reporting unit’s last quantitative test, the extent a reorganization or disposition changes the composition of one or more of the reporting units, and other factors to determine whether or not to first perform a qualitative test. When performing a qualitative test, the Company assesses numerous factors to determine whether it is more likely than not that the fair value of its reporting units are less than their respective carrying values. Examples of qualitative factors that the Company assesses include its share price, its financial performance, market and competitive factors in its industry, and other events specific to its reporting units. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company performs a two-step quantitative impairment test by comparing reporting unit carrying values to estimated fair values. No impairment was identified in the Company’s annual impairment assessment in the fourth quarter of 2014 as the estimated fair values of the respective reporting units exceeded the carrying values. In addition, there is no accumulated impairment loss through December 31, 2014. The changes in goodwill during 2014 and 2013 were as follows: | |||||||||||||
(In millions) | Payments | Financial | Total | ||||||||||
Goodwill - December 31, 2012 | $ | 3,442 | $ | 1,263 | $ | 4,705 | |||||||
Acquired goodwill | 2 | 517 | 519 | ||||||||||
Foreign currency adjustments and other | - | (8 | ) | (8 | ) | ||||||||
Goodwill - December 31, 2013 | 3,444 | 1,772 | 5,216 | ||||||||||
Foreign currency adjustments | (4 | ) | (3 | ) | (7 | ) | |||||||
Goodwill - December 31, 2014 | $ | 3,440 | $ | 1,769 | $ | 5,209 | |||||||
Asset Impairment | Asset Impairment | ||||||||||||
The Company reviews property and equipment, intangible assets and its investment in unconsolidated affiliate for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company reviews capitalized software development costs for impairment at each balance sheet date. Recoverability of property and equipment, capitalized software development costs, and intangible assets is assessed by comparing the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. The Company’s investment in unconsolidated affiliate is assessed by comparing the carrying amount of the investment to its estimated fair value and is impaired if any decline in fair value is determined to be other than temporary. Measurement of any impairment loss is based on estimated fair value. | |||||||||||||
Deferred Financing Costs | Deferred Financing Costs | ||||||||||||
Deferred financing costs related to the Company’s long-term debt totaled $19 million and $24 million at December 31, 2014 and 2013, respectively, net of accumulated amortization of $31 million and $26 million, respectively. Deferred financing costs are reported in other long-term assets in the consolidated balance sheets and are amortized over the term of the underlying debt using the interest method as a component of interest expense. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance, if necessary, is recorded against deferred tax assets for which utilization of the asset is not likely. | |||||||||||||
Net Income Per Share | Net Income Per Share | ||||||||||||
Net income per share in each period is calculated using actual, unrounded amounts. Basic net income per share is computed using the weighted-average number of common shares outstanding during the year. Diluted net income per share is computed using the weighted-average number of common shares and common stock equivalents outstanding during the year. Common stock equivalents consist of stock options and restricted stock units and are computed using the treasury stock method. In 2014, 2013 and 2012, the Company excluded 1.2 million, 1.5 million and 1.7 million weighted-average shares, respectively, from the calculations of common stock equivalents for anti-dilutive stock options. | |||||||||||||
The computation of shares used in calculating basic and diluted net income per share is as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Weighted-average common shares outstanding used for the calculation of net income per share - basic | 248.6 | 262.4 | 271.6 | ||||||||||
Common stock equivalents | 4.1 | 3.7 | 3.4 | ||||||||||
Weighted-average common shares outstanding used for the calculation of net income per share - diluted | 252.7 | 266.1 | 275 | ||||||||||
Supplemental Cash Flow Information | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Interest paid, including on assumed debt | $ | 144 | $ | 165 | $ | 158 | |||||||
Income taxes paid from continuing operations | 336 | 299 | 321 | ||||||||||
Treasury stock purchases settled after the balance sheet date | 19 | 9 | - | ||||||||||
Liabilities assumed in acquisitions of businesses | - | 1,176 | - |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Property and Equipment | Property and equipment consisted of the following at December 31: | ||||||||||||||||
(In millions) | Estimated | 2014 | 2013 | ||||||||||||||
Useful Lives | |||||||||||||||||
Land | - | $ | 23 | $ | 23 | ||||||||||||
Data processing equipment | 3 to 7 years | 657 | 587 | ||||||||||||||
Buildings and leasehold improvements | 5 to 40 years | 209 | 202 | ||||||||||||||
Furniture and equipment | 3 to 10 years | 165 | 140 | ||||||||||||||
1,054 | 952 | ||||||||||||||||
Less: accumulated depreciation | (737 | ) | (686 | ) | |||||||||||||
Total | $ | 317 | $ | 266 | |||||||||||||
Schedule of Intangible Assets by Class | Intangible assets consisted of the following at December 31: | ||||||||||||||||
(In millions) | Gross | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Value | |||||||||||||||
2014 | Amount | ||||||||||||||||
Customer related intangible assets | $ | 2,155 | $ | 797 | $ | 1,358 | |||||||||||
Acquired software and technology | 493 | 356 | 137 | ||||||||||||||
Trade names | 120 | 46 | 74 | ||||||||||||||
Capitalized software development costs | 574 | 240 | 334 | ||||||||||||||
Purchased software | 234 | 134 | 100 | ||||||||||||||
Total | $ | 3,576 | $ | 1,573 | $ | 2,003 | |||||||||||
(In millions) | Gross | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Value | |||||||||||||||
2013 | Amount | ||||||||||||||||
Customer related intangible assets | $ | 2,155 | $ | 667 | $ | 1,488 | |||||||||||
Acquired software and technology | 493 | 289 | 204 | ||||||||||||||
Trade names | 120 | 39 | 81 | ||||||||||||||
Capitalized software development costs | 635 | 348 | 287 | ||||||||||||||
Purchased software | 277 | 195 | 82 | ||||||||||||||
Total | $ | 3,680 | $ | 1,538 | $ | 2,142 | |||||||||||
Schedule of Goodwill | The changes in goodwill during 2014 and 2013 were as follows: | ||||||||||||||||
(In millions) | Payments | Financial | Total | ||||||||||||||
Goodwill - December 31, 2012 | $ | 3,442 | $ | 1,263 | $ | 4,705 | |||||||||||
Acquired goodwill | 2 | 517 | 519 | ||||||||||||||
Foreign currency adjustments and other | - | (8 | ) | (8 | ) | ||||||||||||
Goodwill - December 31, 2013 | 3,444 | 1,772 | 5,216 | ||||||||||||||
Foreign currency adjustments | (4 | ) | (3 | ) | (7 | ) | |||||||||||
Goodwill - December 31, 2014 | $ | 3,440 | $ | 1,769 | $ | 5,209 | |||||||||||
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following at December 31: | ||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||
Trade accounts payable | $ | 61 | $ | 67 | |||||||||||||
Client deposits | 261 | 190 | |||||||||||||||
Accrued compensation and benefits | 192 | 165 | |||||||||||||||
Settlement obligations | 176 | 184 | |||||||||||||||
Other accrued expenses | 215 | 150 | |||||||||||||||
Total | $ | 905 | $ | 756 | |||||||||||||
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: | ||||||||||||||||
(In millions) | Cash Flow | Foreign | Other | Total | |||||||||||||
Hedges | Currency | ||||||||||||||||
Translation | |||||||||||||||||
Balance at December 31, 2013 | $ | (49 | ) | $ | (9 | ) | $ | (2 | ) | $ | (60 | ) | |||||
Other comprehensive loss before reclassifications | - | (11 | ) | - | (11 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 8 | - | - | 8 | |||||||||||||
Net current-period other comprehensive (loss) income | 8 | (11 | ) | - | (3 | ) | |||||||||||
Balance at December 31, 2014 | $ | (41 | ) | $ | (20 | ) | $ | (2 | ) | $ | (63 | ) | |||||
(In millions) | Cash Flow | Foreign | Other | Total | |||||||||||||
Hedges | Currency | ||||||||||||||||
Translation | |||||||||||||||||
Balance at December 31, 2012 | $ | (57 | ) | $ | (1 | ) | $ | (2 | ) | $ | (60 | ) | |||||
Other comprehensive loss before reclassifications | (1 | ) | (8 | ) | - | (9 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 9 | - | - | 9 | |||||||||||||
Net current-period other comprehensive income (loss) | 8 | (8 | ) | - | - | ||||||||||||
Balance at December 31, 2013 | $ | (49 | ) | $ | (9 | ) | $ | (2 | ) | $ | (60 | ) | |||||
Schedule of Weighted Average Number of Shares | The computation of shares used in calculating basic and diluted net income per share is as follows: | ||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||
Weighted-average common shares outstanding used for the calculation of net income per share - basic | 248.6 | 262.4 | 271.6 | ||||||||||||||
Common stock equivalents | 4.1 | 3.7 | 3.4 | ||||||||||||||
Weighted-average common shares outstanding used for the calculation of net income per share - diluted | 252.7 | 266.1 | 275 | ||||||||||||||
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information | ||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||
Interest paid, including on assumed debt | $ | 144 | $ | 165 | $ | 158 | |||||||||||
Income taxes paid from continuing operations | 336 | 299 | 321 | ||||||||||||||
Treasury stock purchases settled after the balance sheet date | 19 | 9 | - | ||||||||||||||
Liabilities assumed in acquisitions of businesses | - | 1,176 | - |
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Allocation of Purchase Price Recorded for Open Solutions | The allocation of purchase price for Open Solutions was finalized in 2013 and recorded as follows: | ||||||
(In millions) | |||||||
Cash and cash equivalents | $ | 39 | |||||
Trade accounts receivable | 41 | ||||||
Deferred income tax assets | 29 | ||||||
Prepaid expenses and other assets | 30 | ||||||
Intangible assets | 571 | ||||||
Goodwill | 517 | ||||||
Accounts payable and other liabilities | (140 | ) | |||||
Long-term debt | (958 | ) | |||||
Deferred income tax liabilities | (74 | ) | |||||
Total cash purchase price | $ | 55 | |||||
Values Allocated to Intangible Asset | The values allocated to intangible assets were as follows: | ||||||
(In millions) | Gross | Weighted- | |||||
Carrying | Average | ||||||
Amount | Useful Life | ||||||
Customer related intangible assets | $ | 460 | 20 years | ||||
Acquired software and technology | 105 | 7 years | |||||
Trade name | 6 | 10 years | |||||
$ | 571 | ||||||
Supplemental Pro Forma Information | The following unaudited supplemental pro forma information presents the Company’s results of operations as though the acquisition of Open Solutions had occurred on January 1, 2012. This information is presented for informational purposes and is not necessarily indicative of the Company’s operating results which would have occurred had the acquisition been consummated as of that date. The pro forma information presented below does not include anticipated synergies, the impact of purchase accounting adjustments or certain other expected benefits of the acquisition and should not be used as a predictive measure of our future results of operations. | ||||||
(In millions, except per share data) | (Pro Forma | ||||||
Unaudited) | |||||||
2012 | |||||||
Total revenue | $ | 4,764 | |||||
Income from continuing operations | $ | 602 | |||||
Net income | $ | 621 | |||||
Net income per share - basic | $ | 2.29 | |||||
Net income per share - diluted | $ | 2.26 |
Investment_in_Unconsolidated_A1
Investment in Unconsolidated Affiliate (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summarized StoneRiver Financial Information | summarized StoneRiver financial information is presented below and reflects certain of the 2014 dispositions as discontinued operations within the statements of income for all periods presented. | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Statements of income for the years ended December 31, | |||||||||||||
Total revenue | $ | 140 | $ | 606 | $ | 722 | |||||||
Operating (loss) income | (3 | ) | 8 | 39 | |||||||||
Income from continuing operations | 5 | 242 | 17 | ||||||||||
Net income | 138 | 243 | 16 | ||||||||||
Balance sheet as of December 31, | |||||||||||||
Current assets | $ | 82 | $ | 74 | |||||||||
Noncurrent assets | 198 | 629 | |||||||||||
Current liabilities | 47 | 97 | |||||||||||
Noncurrent liabilities | 254 | 527 |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Schedule of Outstanding Long-Term Debt | The Company’s long-term debt consisted of the following at December 31: | ||||||||
(In millions) | 2014 | 2013 | |||||||
Term loan | $ | 810 | $ | 900 | |||||
Revolving credit facility | 42 | - | |||||||
3.125% senior notes due 2015 | 300 | 300 | |||||||
3.125% senior notes due 2016 | 600 | 600 | |||||||
6.8% senior notes due 2017 | 500 | 500 | |||||||
4.625% senior notes due 2020 | 449 | 449 | |||||||
4.75% senior notes due 2021 | 399 | 399 | |||||||
3.5% senior notes due 2022 | 697 | 697 | |||||||
Other borrowings | 6 | 3 | |||||||
Total debt | 3,803 | 3,848 | |||||||
Less: current maturities | (92 | ) | (92 | ) | |||||
Long-term debt | $ | 3,711 | $ | 3,756 | |||||
Schedule of Annual Maturities of Total Debt | Annual maturities of the Company’s total debt were as follows at December 31, 2014: | ||||||||
(In millions) | |||||||||
Year ending December 31, | |||||||||
2015 | $ | 92 | |||||||
2016 | 691 | ||||||||
2017 | 591 | ||||||||
2018 | 883 | ||||||||
2019 | 1 | ||||||||
Thereafter | 1,545 | ||||||||
Total | $ | 3,803 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Reconciliation of Statutory Federal Income Tax Rate | A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for continuing operations is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal effect | 2.6 | % | 2.5 | % | 2.5 | % | |||||||
Unconsolidated affiliate tax | 3.4 | % | 1.9 | % | - | ||||||||
Domestic production activities deduction | (4.1 | %) | (1.3 | %) | (4.2 | %) | |||||||
Other, net | (0.3 | %) | (1.6 | %) | 0.7 | % | |||||||
Effective income tax rate | 36.6 | % | 36.5 | % | 34 | % | |||||||
Schedule of Income Tax Provision | The income tax provision for continuing operations was as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Federal | $ | 331 | $ | 290 | $ | 250 | |||||||
State | 40 | 35 | 36 | ||||||||||
Foreign | 10 | 12 | 9 | ||||||||||
381 | 337 | 295 | |||||||||||
Deferred: | |||||||||||||
Federal | (4 | ) | (12 | ) | 3 | ||||||||
State | 6 | 1 | - | ||||||||||
Foreign | 1 | 2 | 2 | ||||||||||
3 | (9 | ) | 5 | ||||||||||
Income tax provision | $ | 384 | $ | 328 | $ | 300 | |||||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities consisted of the following at December 31: | ||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Accrued expenses | $ | 37 | $ | 35 | |||||||||
Interest rate hedge contracts | 28 | 34 | |||||||||||
Share-based compensation | 46 | 41 | |||||||||||
Net operating loss and credit carry-forwards | 123 | 158 | |||||||||||
Deferred revenue | 47 | 40 | |||||||||||
Other | 28 | 16 | |||||||||||
Subtotal | 309 | 324 | |||||||||||
Valuation allowance | (42 | ) | (42 | ) | |||||||||
Total deferred tax assets | 267 | 282 | |||||||||||
Capital software development costs | (127 | ) | (109 | ) | |||||||||
Intangible assets | (737 | ) | (763 | ) | |||||||||
Property and equipment | (42 | ) | (31 | ) | |||||||||
Other | (35 | ) | (37 | ) | |||||||||
Total deferred tax liabilities | (941 | ) | (940 | ) | |||||||||
Total | $ | (674 | ) | $ | (658 | ) | |||||||
Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31: | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Current assets | $ | 42 | $ | 55 | |||||||||
Noncurrent liabilities | (716 | ) | (713 | ) | |||||||||
Total | $ | (674 | ) | $ | (658 | ) | |||||||
Schedule of Unrecognized Tax Benefits | Unrecognized tax benefits were as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits - Beginning of year | $ | 60 | $ | 56 | $ | 27 | |||||||
Increases for tax positions taken during the current year | 9 | 9 | 12 | ||||||||||
Increases for tax positions taken in prior years | 10 | 6 | 19 | ||||||||||
Decreases for tax positions taken in prior years | (21 | ) | (7 | ) | - | ||||||||
Decreases for settlements | (1 | ) | (2 | ) | (1 | ) | |||||||
Lapse of the statute of limitations | (2 | ) | (2 | ) | (1 | ) | |||||||
Unrecognized tax benefits - End of year | $ | 55 | $ | 60 | $ | 56 | |||||||
Employee_Stock_and_Savings_Pla1
Employee Stock and Savings Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Estimation Assumptions Used | The fair values of stock options granted were estimated on the date of grant using a binomial option-pricing model with the following assumptions: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected life (in years) | 6.3 | 6.4 | 6.5 | ||||||||||||||
Average risk-free interest rate | 2 | % | 0.9 | % | 1.3 | % | |||||||||||
Expected volatility | 29.6 | % | 29.9 | % | 31.1 | % | |||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Summary of Stock Option Activity | A summary of stock option activity is as follows: | ||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
(In thousands) | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (In millions) | |||||||||||||||
Term (Years) | |||||||||||||||||
Stock options outstanding - December 31, 2013 | 10,080 | $ | 28.97 | ||||||||||||||
Granted | 1,357 | 57.29 | |||||||||||||||
Forfeited | (288 | ) | 40.6 | ||||||||||||||
Exercised | (1,275 | ) | 27.65 | ||||||||||||||
Stock options outstanding - December 31, 2014 | 9,874 | $ | 32.69 | 5.7 | $ | 378 | |||||||||||
Stock options exercisable - December 31, 2014 | 6,838 | $ | 26.4 | 4.4 | $ | 305 | |||||||||||
Summary of Restricted Stock Unit Activity | A summary of restricted stock unit activity is as follows: | ||||||||||||||||
Shares | Weighted- | ||||||||||||||||
(In thousands) | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Restricted stock units - December 31, 2013 | 2,157 | $ | 34.92 | ||||||||||||||
Granted | 539 | 58.87 | |||||||||||||||
Forfeited | (240 | ) | 39.86 | ||||||||||||||
Vested | (594 | ) | 32.16 | ||||||||||||||
Restricted stock units - December 31, 2014 | 1,862 | $ | 42.02 | ||||||||||||||
Schedule of Additional Information Related to Stock Option and Restricted Stock Unit Activity | The table below presents additional information related to stock option and restricted stock unit activity: | ||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||
Total intrinsic value of stock options exercised | $ | 43 | $ | 27 | $ | 51 | |||||||||||
Cash received from stock option exercises | 33 | 32 | 80 | ||||||||||||||
Gross income tax benefit from stock option exercises | 16 | 10 | 20 | ||||||||||||||
Fair value of restricted stock units upon vesting | 35 | 31 | 29 |
Leases_Commitments_and_Conting1
Leases, Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Schedule of Operating Lease Minimum Rental Payments | Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2014: | ||||
(In millions) | |||||
Year ending December 31, | |||||
2015 | $ | 93 | |||
2016 | 77 | ||||
2017 | 60 | ||||
2018 | 40 | ||||
2019 | 27 | ||||
Thereafter | 86 | ||||
Total | $ | 383 | |||
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Segment Reporting Information | |||||||||||||||||
(In millions) | Payments | Financial | Corporate | Total | |||||||||||||
and Other | |||||||||||||||||
2014 | |||||||||||||||||
Processing and services revenue | $ | 2,030 | $ | 2,195 | $ | (6 | ) | $ | 4,219 | ||||||||
Product revenue | 717 | 172 | (42 | ) | 847 | ||||||||||||
Total revenue | 2,747 | 2,367 | (48 | ) | 5,066 | ||||||||||||
Operating income | 768 | 773 | (331 | ) | 1,210 | ||||||||||||
Total assets | 5,850 | 3,225 | 262 | 9,337 | |||||||||||||
Capital expenditures | 176 | 107 | 9 | 292 | |||||||||||||
Depreciation and amortization expense | 102 | 71 | 231 | 404 | |||||||||||||
2013 | |||||||||||||||||
Processing and services revenue | $ | 1,902 | $ | 2,143 | $ | (10 | ) | $ | 4,035 | ||||||||
Product revenue | 650 | 166 | (37 | ) | 779 | ||||||||||||
Total revenue | 2,552 | 2,309 | (47 | ) | 4,814 | ||||||||||||
Operating income | 702 | 745 | (386 | ) | 1,061 | ||||||||||||
Total assets | 5,985 | 3,220 | 308 | 9,513 | |||||||||||||
Capital expenditures | 131 | 87 | 18 | 236 | |||||||||||||
Depreciation and amortization expense | 93 | 71 | 239 | 403 | |||||||||||||
2012 | |||||||||||||||||
Processing and services revenue | $ | 1,788 | $ | 1,887 | $ | (12 | ) | $ | 3,663 | ||||||||
Product revenue | 655 | 153 | (35 | ) | 773 | ||||||||||||
Total revenue | 2,443 | 2,040 | (47 | ) | 4,436 | ||||||||||||
Operating income | 657 | 652 | (261 | ) | 1,048 | ||||||||||||
Total assets | 6,109 | 2,094 | 294 | 8,497 | |||||||||||||
Capital expenditures | 107 | 76 | 10 | 193 | |||||||||||||
Depreciation and amortization expense | 97 | 73 | 180 | 350 |
Subsidiary_Guarantors_of_LongT1
Subsidiary Guarantors of Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | Condensed Consolidating Statement of Income and Comprehensive Income | ||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenue: | |||||||||||||||||||||
Processing and services | $ | - | $ | 3,077 | $ | 1,318 | $ | (176 | ) | $ | 4,219 | ||||||||||
Product | - | 810 | 108 | (71 | ) | 847 | |||||||||||||||
Total revenue | - | 3,887 | 1,426 | (247 | ) | 5,066 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Cost of processing and services | - | 1,587 | 753 | (176 | ) | 2,164 | |||||||||||||||
Cost of product | - | 681 | 107 | (71 | ) | 717 | |||||||||||||||
Selling, general and administrative | 95 | 657 | 223 | - | 975 | ||||||||||||||||
Total expenses | 95 | 2,925 | 1,083 | (247 | ) | 3,856 | |||||||||||||||
Operating income (loss) | (95 | ) | 962 | 343 | - | 1,210 | |||||||||||||||
Interest expense, net | (130 | ) | (25 | ) | (8 | ) | - | (163 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | (225 | ) | 937 | 335 | - | 1,047 | |||||||||||||||
Income tax (provision) benefit | 109 | (373 | ) | (120 | ) | - | (384 | ) | |||||||||||||
Income from investment in unconsolidated affiliate | - | 91 | - | - | 91 | ||||||||||||||||
Equity in earnings of consolidated affiliates | 870 | - | - | (870 | ) | - | |||||||||||||||
Income from continuing operations | 754 | 655 | 215 | (870 | ) | 754 | |||||||||||||||
Income (loss) from discontinued operations, net of income taxes | - | - | - | - | - | ||||||||||||||||
Net income | $ | 754 | $ | 655 | $ | 215 | $ | (870 | ) | $ | 754 | ||||||||||
Comprehensive income | $ | 751 | $ | 655 | $ | 204 | $ | (859 | ) | $ | 751 | ||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenue: | |||||||||||||||||||||
Processing and services | $ | - | $ | 2,919 | $ | 1,281 | $ | (165 | ) | $ | 4,035 | ||||||||||
Product | - | 734 | 109 | (64 | ) | 779 | |||||||||||||||
Total revenue | - | 3,653 | 1,390 | (229 | ) | 4,814 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Cost of processing and services | - | 1,481 | 765 | (165 | ) | 2,081 | |||||||||||||||
Cost of product | - | 667 | 92 | (64 | ) | 695 | |||||||||||||||
Selling, general and administrative | 110 | 632 | 235 | - | 977 | ||||||||||||||||
Total expenses | 110 | 2,780 | 1,092 | (229 | ) | 3,753 | |||||||||||||||
Operating income (loss) | (110 | ) | 873 | 298 | - | 1,061 | |||||||||||||||
Interest expense, net | (129 | ) | (20 | ) | (14 | ) | - | (163 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | (239 | ) | 853 | 284 | - | 898 | |||||||||||||||
Income tax (provision) benefit | 102 | (327 | ) | (103 | ) | - | (328 | ) | |||||||||||||
Income from investment in unconsolidated affiliate | - | 80 | - | - | 80 | ||||||||||||||||
Equity in earnings of consolidated affiliates | 787 | - | - | (787 | ) | - | |||||||||||||||
Income from continuing operations | 650 | 606 | 181 | (787 | ) | 650 | |||||||||||||||
Loss from discontinued operations, net of income taxes | (2 | ) | - | - | - | (2 | ) | ||||||||||||||
Net income | $ | 648 | $ | 606 | $ | 181 | $ | (787 | ) | $ | 648 | ||||||||||
Comprehensive income | $ | 648 | $ | 606 | $ | 173 | $ | (779 | ) | $ | 648 | ||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Revenue: | |||||||||||||||||||||
Processing and services | $ | - | $ | 2,596 | $ | 1,226 | $ | (159 | ) | $ | 3,663 | ||||||||||
Product | - | 717 | 114 | (58 | ) | 773 | |||||||||||||||
Total revenue | - | 3,313 | 1,340 | (217 | ) | 4,436 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Cost of processing and services | - | 1,385 | 710 | (159 | ) | 1,936 | |||||||||||||||
Cost of product | - | 615 | 71 | (58 | ) | 628 | |||||||||||||||
Selling, general and administrative | 104 | 499 | 221 | - | 824 | ||||||||||||||||
Total expenses | 104 | 2,499 | 1,002 | (217 | ) | 3,388 | |||||||||||||||
Operating income (loss) | (104 | ) | 814 | 338 | - | 1,048 | |||||||||||||||
Interest expense, net | (104 | ) | (57 | ) | (6 | ) | - | (167 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | (208 | ) | 757 | 332 | - | 881 | |||||||||||||||
Income tax (provision) benefit | 103 | (280 | ) | (123 | ) | - | (300 | ) | |||||||||||||
Income from investment in unconsolidated affiliate | - | 11 | - | - | 11 | ||||||||||||||||
Equity in earnings of consolidated affiliates | 697 | - | - | (697 | ) | - | |||||||||||||||
Income from continuing operations | 592 | 488 | 209 | (697 | ) | 592 | |||||||||||||||
Income from discontinued operations, net of income taxes | 19 | 5 | - | (5 | ) | 19 | |||||||||||||||
Net income | $ | 611 | $ | 493 | $ | 209 | $ | (702 | ) | $ | 611 | ||||||||||
Comprehensive income | $ | 629 | $ | 493 | $ | 213 | $ | (706 | ) | $ | 629 | ||||||||||
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 21 | $ | 80 | $ | 193 | $ | - | $ | 294 | |||||||||||
Trade accounts receivable, net | - | 510 | 288 | - | 798 | ||||||||||||||||
Deferred income taxes | 40 | - | 2 | - | 42 | ||||||||||||||||
Prepaid expenses and other current assets | 8 | 209 | 135 | - | 352 | ||||||||||||||||
Total current assets | 69 | 799 | 618 | - | 1,486 | ||||||||||||||||
Due from consolidated affiliates | - | 2,467 | 670 | (3,137 | ) | - | |||||||||||||||
Investments in consolidated affiliates | 10,987 | - | - | (10,987 | ) | - | |||||||||||||||
Intangible assets, net | 23 | 1,734 | 246 | - | 2,003 | ||||||||||||||||
Goodwill | - | 4,154 | 1,055 | - | 5,209 | ||||||||||||||||
Other long-term assets | 36 | 496 | 107 | - | 639 | ||||||||||||||||
Total assets | $ | 11,115 | $ | 9,650 | $ | 2,696 | $ | (14,124 | ) | $ | 9,337 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Accounts payable and accrued expenses | $ | 119 | $ | 586 | $ | 200 | $ | - | $ | 905 | |||||||||||
Current maturities of long-term debt | 90 | 2 | - | - | 92 | ||||||||||||||||
Deferred revenue | - | 285 | 204 | - | 489 | ||||||||||||||||
Total current liabilities | 209 | 873 | 404 | - | 1,486 | ||||||||||||||||
Long-term debt | 3,707 | 4 | - | - | 3,711 | ||||||||||||||||
Due to consolidated affiliates | 3,137 | - | - | (3,137 | ) | - | |||||||||||||||
Other long-term liabilities | 767 | 31 | 47 | - | 845 | ||||||||||||||||
Total liabilities | 7,820 | 908 | 451 | (3,137 | ) | 6,042 | |||||||||||||||
Total shareholders’ equity | 3,295 | 8,742 | 2,245 | (10,987 | ) | 3,295 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 11,115 | $ | 9,650 | $ | 2,696 | $ | (14,124 | ) | $ | 9,337 | ||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 139 | $ | 76 | $ | 185 | $ | - | $ | 400 | |||||||||||
Trade accounts receivable, net | - | 465 | 286 | - | 751 | ||||||||||||||||
Deferred income taxes | 54 | - | 1 | - | 55 | ||||||||||||||||
Prepaid expenses and other current assets | 27 | 195 | 144 | - | 366 | ||||||||||||||||
Total current assets | 220 | 736 | 616 | - | 1,572 | ||||||||||||||||
Due from consolidated affiliates | - | 1,683 | 425 | (2,108 | ) | - | |||||||||||||||
Investments in consolidated affiliates | 10,122 | - | - | (10,122 | ) | - | |||||||||||||||
Intangible assets, net | 22 | 1,866 | 254 | - | 2,142 | ||||||||||||||||
Goodwill | - | 4,150 | 1,066 | - | 5,216 | ||||||||||||||||
Other long-term assets | 33 | 448 | 102 | - | 583 | ||||||||||||||||
Total assets | $ | 10,397 | $ | 8,883 | $ | 2,463 | $ | (12,230 | ) | $ | 9,513 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Accounts payable and accrued expenses | $ | 87 | $ | 463 | $ | 206 | $ | - | $ | 756 | |||||||||||
Current maturities of long-term debt | 90 | 2 | - | - | 92 | ||||||||||||||||
Deferred revenue | - | 292 | 192 | - | 484 | ||||||||||||||||
Total current liabilities | 177 | 757 | 398 | - | 1,332 | ||||||||||||||||
Long-term debt | 3,754 | 2 | - | - | 3,756 | ||||||||||||||||
Due to consolidated affiliates | 2,108 | - | - | (2,108 | ) | - | |||||||||||||||
Other long-term liabilities | 773 | 25 | 42 | - | 840 | ||||||||||||||||
Total liabilities | 6,812 | 784 | 440 | (2,108 | ) | 5,928 | |||||||||||||||
Total shareholders’ equity | 3,585 | 8,099 | 2,023 | (10,122 | ) | 3,585 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 10,397 | $ | 8,883 | $ | 2,463 | $ | (12,230 | ) | $ | 9,513 | ||||||||||
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | (34 | ) | $ | 1,029 | $ | 312 | $ | - | $ | 1,307 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures, including capitalization of software costs | (3 | ) | (205 | ) | (84 | ) | - | (292 | ) | ||||||||||||
Net proceeds from investments | - | - | 7 | - | 7 | ||||||||||||||||
Other investing activities | (13 | ) | (856 | ) | (240 | ) | 1,108 | (1 | ) | ||||||||||||
Net cash used in investing activities from continuing operations | (16 | ) | (1,061 | ) | (317 | ) | 1,108 | (286 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Debt proceeds | 604 | - | - | - | 604 | ||||||||||||||||
Debt repayments | (653 | ) | - | - | - | (653 | ) | ||||||||||||||
Issuance of treasury stock | 53 | - | - | - | 53 | ||||||||||||||||
Purchases of treasury stock | (1,148 | ) | - | - | - | (1,148 | ) | ||||||||||||||
Other financing activities | 1,077 | 36 | 13 | (1,108 | ) | 18 | |||||||||||||||
Net cash used in financing activities from continuing operations | (67 | ) | 36 | 13 | (1,108 | ) | (1,126 | ) | |||||||||||||
Net change in cash and cash equivalents from continuing operations | (117 | ) | 4 | 8 | - | (105 | ) | ||||||||||||||
Net cash flows to discontinued operations | (1 | ) | - | - | - | (1 | ) | ||||||||||||||
Beginning balance | 139 | 76 | 185 | - | 400 | ||||||||||||||||
Ending balance | $ | 21 | $ | 80 | $ | 193 | $ | - | $ | 294 | |||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | (61 | ) | $ | 842 | $ | 258 | $ | - | $ | 1,039 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures, including capitalization of software costs | (3 | ) | (169 | ) | (64 | ) | - | (236 | ) | ||||||||||||
Payments for acquisitions of businesses, net of cash acquired | (55 | ) | 25 | - | - | (30 | ) | ||||||||||||||
Dividend from unconsolidated affiliate | - | 116 | - | - | 116 | ||||||||||||||||
Net proceeds from investments | - | 2 | 2 | - | 4 | ||||||||||||||||
Other investing activities | (2 | ) | (839 | ) | (204 | ) | 1,043 | (2 | ) | ||||||||||||
Net cash used in investing activities from continuing operations | (60 | ) | (865 | ) | (266 | ) | 1,043 | (148 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Debt proceeds | 2,252 | - | - | - | 2,252 | ||||||||||||||||
Debt repayments | (2,589 | ) | (1 | ) | - | - | (2,590 | ) | |||||||||||||
Issuance of treasury stock | 49 | - | - | - | 49 | ||||||||||||||||
Purchases of treasury stock | (578 | ) | - | - | - | (578 | ) | ||||||||||||||
Other financing activities | 1,050 | 1 | (14 | ) | (1,043 | ) | (6 | ) | |||||||||||||
Net cash (used in) provided by financing activities from continuing operations | 184 | - | (14 | ) | (1,043 | ) | (873 | ) | |||||||||||||
Net change in cash and cash equivalents from continuing operations | 63 | (23 | ) | (22 | ) | - | 18 | ||||||||||||||
Net cash flows from (to) discontinued operations | (9 | ) | 33 | - | - | 24 | |||||||||||||||
Beginning balance | 85 | 66 | 207 | - | 358 | ||||||||||||||||
Ending balance | $ | 139 | $ | 76 | $ | 185 | $ | - | $ | 400 | |||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | (168 | ) | $ | 722 | $ | 272 | $ | - | $ | 826 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures, including capitalization of software costs | (4 | ) | (142 | ) | (47 | ) | - | (193 | ) | ||||||||||||
Dividend from unconsolidated affiliate | - | 32 | - | - | 32 | ||||||||||||||||
Net proceeds from investments | - | 2 | 26 | - | 28 | ||||||||||||||||
Other investing activities | (2 | ) | (621 | ) | (197 | ) | 817 | (3 | ) | ||||||||||||
Net cash used in investing activities from continuing operations | (6 | ) | (729 | ) | (218 | ) | 817 | (136 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Debt proceeds | 1,469 | - | - | - | 1,469 | ||||||||||||||||
Debt repayments | (1,592 | ) | (6 | ) | (44 | ) | - | (1,642 | ) | ||||||||||||
Issuance of treasury stock | 96 | - | - | - | 96 | ||||||||||||||||
Purchases of treasury stock | (634 | ) | - | - | - | (634 | ) | ||||||||||||||
Other financing activities | 817 | 1 | 4 | (817 | ) | 5 | |||||||||||||||
Net cash (used in) provided by financing activities from continuing operations | 156 | (5 | ) | (40 | ) | (817 | ) | (706 | ) | ||||||||||||
Net change in cash and cash equivalents from continuing operations | (18 | ) | (12 | ) | 14 | - | (16 | ) | |||||||||||||
Net cash flows from discontinued operations | 30 | 7 | - | - | 37 | ||||||||||||||||
Beginning balance | 73 | 71 | 193 | - | 337 | ||||||||||||||||
Ending balance | $ | 85 | $ | 66 | $ | 207 | $ | - | $ | 358 | |||||||||||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Schedule of Quarterly Financial Data | Quarterly financial data for 2014 and 2013 was as follows: | ||||||||||||||||||||
(In millions, except per share data) | |||||||||||||||||||||
First | Second | Third | Fourth | Full | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||||||
2014 | |||||||||||||||||||||
Total revenue | $ | 1,234 | $ | 1,253 | $ | 1,263 | $ | 1,316 | $ | 5,066 | |||||||||||
Cost of processing and services | 541 | 532 | 537 | 554 | 2,164 | ||||||||||||||||
Cost of product | 180 | 171 | 168 | 198 | 717 | ||||||||||||||||
Selling, general and administrative expenses | 242 | 243 | 243 | 247 | 975 | ||||||||||||||||
Total expenses | 963 | 946 | 948 | 999 | 3,856 | ||||||||||||||||
Operating income | 271 | 307 | 315 | 317 | 1,210 | ||||||||||||||||
Income from continuing operations | 168 | 166 | 239 | 181 | 754 | ||||||||||||||||
Net income | 168 | 166 | 239 | 181 | 754 | ||||||||||||||||
Comprehensive income | 174 | 171 | 231 | 175 | 751 | ||||||||||||||||
Net income per share - continuing operations: (1) | |||||||||||||||||||||
Basic | $ | 0.66 | $ | 0.66 | $ | 0.96 | $ | 0.75 | $ | 3.04 | |||||||||||
Diluted | $ | 0.65 | $ | 0.65 | $ | 0.95 | $ | 0.73 | $ | 2.99 | |||||||||||
2013 | |||||||||||||||||||||
Total revenue | $ | 1,152 | $ | 1,198 | $ | 1,201 | $ | 1,263 | $ | 4,814 | |||||||||||
Cost of processing and services | 522 | 523 | 520 | 516 | 2,081 | ||||||||||||||||
Cost of product | 190 | 157 | 164 | 184 | 695 | ||||||||||||||||
Selling, general and administrative expenses | 229 | 245 | 237 | 266 | 977 | ||||||||||||||||
Total expenses | 941 | 925 | 921 | 966 | 3,753 | ||||||||||||||||
Operating income | 211 | 273 | 280 | 297 | 1,061 | ||||||||||||||||
Income from continuing operations | 117 | 152 | 161 | 220 | 650 | ||||||||||||||||
Net income | 117 | 151 | 159 | 221 | 648 | ||||||||||||||||
Comprehensive income | 115 | 146 | 163 | 224 | 648 | ||||||||||||||||
Net income per share - continuing operations: (1) | |||||||||||||||||||||
Basic | $ | 0.44 | $ | 0.57 | $ | 0.62 | $ | 0.85 | $ | 2.48 | |||||||||||
Diluted | $ | 0.43 | $ | 0.57 | $ | 0.61 | $ | 0.84 | $ | 2.44 | |||||||||||
-1 | Net income per share in each period is calculated using actual, unrounded amounts. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 16, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Stock split ratio | 2 | |||
Increase in common stock value due to stock split | $2,000,000 | |||
Offsetting reduction in additional paid-in capital | -2,000,000 | |||
Applicable client support period for software maintenance fee revenue recognition, months | 12 months | |||
Allowance for doubtful accounts | 11,000,000 | 15,000,000 | ||
Prepaid expenses | 132,000,000 | 122,000,000 | ||
Settlement assets | 182,000,000 | 189,000,000 | ||
Settlement obligations | 176,000,000 | 184,000,000 | ||
Depreciation expense | 71,000,000 | 70,000,000 | 72,000,000 | |
Amortization expense for acquired intangible assets | 204,000,000 | 210,000,000 | 160,000,000 | |
Product development expenditures as percentage of total revenue | 9.00% | 9.00% | 9.00% | |
Non cash impairment charge associated with merger and integration | 30,000,000 | |||
Goodwill impairment | 0 | |||
Accumulated goodwill impairment | 0 | |||
Deferred financing costs | 19,000,000 | 24,000,000 | ||
Accumulated amortization, deferred financing costs | 31,000,000 | 26,000,000 | ||
Stock options excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive | 1.2 | 1.5 | 1.7 | |
Open Solutions Inc | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Non cash impairment charge associated with merger and integration | 30,000,000 | |||
Capitalized Software Development Costs | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 5 years | |||
Capitalized computer software, additions | 129,000,000 | 120,000,000 | 102,000,000 | |
Capitalized computer software, amortization | 82,000,000 | 72,000,000 | 73,000,000 | |
Purchased Software | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Amortization expense for intangible assets | 29,000,000 | 32,000,000 | 34,000,000 | |
Acquired Intangible Assets | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Amortization expense for acquired intangible assets | 204,000,000 | 210,000,000 | 160,000,000 | |
2015 | 190,000,000 | |||
2016 | 150,000,000 | |||
2017 | 140,000,000 | |||
2018 | 140,000,000 | |||
2019 | 130,000,000 | |||
Capitalized And Purchased Software | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
2015 | $115,000,000 | |||
Minimum | Purchased Software | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 3 years | |||
Minimum | Customer Related Intangible Assets | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 10 years | |||
Minimum | Acquired Software and Technology | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 4 years | |||
Minimum | Trade Names | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 10 years | |||
Maximum | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
License revenue as a percentage of total revenue | 4.00% | 4.00% | 4.00% | |
Maximum | Purchased Software | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 5 years | |||
Maximum | Customer Related Intangible Assets | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 20 years | |||
Maximum | Acquired Software and Technology | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 8 years | |||
Maximum | Trade Names | ||||
Schedule Of Significant Accounting Policies Summary [Line Items] | ||||
Finite-lived intangible assets, useful life | 20 years |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,054 | $952 |
Less: accumulated depreciation | -737 | -686 |
Total | 317 | 266 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 23 | 23 |
Data Processing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 657 | 587 |
Buildings and Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 209 | 202 |
Furniture And Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 165 | $140 |
Minimum | Data Processing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Minimum | Buildings and Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Minimum | Furniture And Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Maximum | Data Processing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Maximum | Buildings and Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Maximum | Furniture And Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years |
Schedule_of_Intangible_Assets_
Schedule of Intangible Assets by Class (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $3,576 | $3,680 |
Accumulated Amortization | 1,573 | 1,538 |
Net Book Value | 2,003 | 2,142 |
Customer Related Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,155 | 2,155 |
Accumulated Amortization | 797 | 667 |
Net Book Value | 1,358 | 1,488 |
Acquired Software and Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 493 | 493 |
Accumulated Amortization | 356 | 289 |
Net Book Value | 137 | 204 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 120 | 120 |
Accumulated Amortization | 46 | 39 |
Net Book Value | 74 | 81 |
Capitalized Software Development Costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 574 | 635 |
Accumulated Amortization | 240 | 348 |
Net Book Value | 334 | 287 |
Purchased Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 234 | 277 |
Accumulated Amortization | 134 | 195 |
Net Book Value | $100 | $82 |
Schedule_of_Goodwill_Detail
Schedule of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Goodwill, beginning balance | $5,216 | $4,705 |
Foreign currency adjustments | -7 | |
Acquired goodwill | 519 | |
Foreign currency adjustments and other | -8 | |
Goodwill, ending balance | 5,209 | 5,216 |
Payments | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 3,444 | 3,442 |
Foreign currency adjustments | -4 | |
Acquired goodwill | 2 | |
Goodwill, ending balance | 3,440 | 3,444 |
Financial | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 1,772 | 1,263 |
Foreign currency adjustments | -3 | |
Acquired goodwill | 517 | |
Foreign currency adjustments and other | -8 | |
Goodwill, ending balance | $1,769 | $1,772 |
Schedule_of_Accounts_Payable_a
Schedule of Accounts Payable and Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Trade accounts payable | $61 | $67 |
Client deposits | 261 | 190 |
Accrued compensation and benefits | 192 | 165 |
Settlement obligations | 176 | 184 |
Other accrued expenses | 215 | 150 |
Total | $905 | $756 |
Schedule_of_Accumulated_Other_
Schedule of Accumulated Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at Beginning of the period | ($60) | ($60) | |
Other comprehensive loss before reclassifications | -11 | -9 | |
Amounts reclassified from accumulated other comprehensive loss | 8 | 9 | |
Total other comprehensive (loss) income | -3 | 18 | |
Balance at End of the period | -63 | -60 | -60 |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at Beginning of the period | -49 | -57 | |
Other comprehensive loss before reclassifications | -1 | ||
Amounts reclassified from accumulated other comprehensive loss | 8 | 9 | |
Total other comprehensive (loss) income | 8 | 8 | |
Balance at End of the period | -41 | -49 | |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at Beginning of the period | -9 | -1 | |
Other comprehensive loss before reclassifications | -11 | -8 | |
Total other comprehensive (loss) income | -11 | -8 | |
Balance at End of the period | -20 | -9 | |
Other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at Beginning of the period | -2 | -2 | |
Other comprehensive loss before reclassifications | |||
Amounts reclassified from accumulated other comprehensive loss | |||
Total other comprehensive (loss) income | |||
Balance at End of the period | ($2) | ($2) |
Schedule_of_Weighted_Average_N
Schedule of Weighted Average Number of Shares (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted Average Number of Shares Outstanding [Line Items] | |||
Weighted-average common shares outstanding used for the calculation of net income per share - basic | 248.6 | 262.4 | 271.6 |
Common stock equivalents | 4.1 | 3.7 | 3.4 |
Weighted-average common shares outstanding used for the calculation of net income per share - diluted | 252.7 | 266.1 | 275 |
Schedule_of_Supplemental_Cash_
Schedule of Supplemental Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flow Supplemental Disclosures [Line Items] | |||
Interest paid, including on assumed debt | $144 | $165 | $158 |
Income taxes paid from continuing operations | 336 | 299 | 321 |
Treasury stock purchases settled after the balance sheet date | 19 | 9 | |
Liabilities assumed in acquisitions of businesses | $1,176 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jan. 14, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ||||
Goodwill | $5,216 | $5,209 | $4,705 | |
Non cash impairment charge associated with merger and integration | 30 | |||
Open Solutions Inc | ||||
Business Acquisition [Line Items] | ||||
Total cash purchase price | 55 | |||
Assumption of debt | 960 | |||
Goodwill | 517 | |||
Goodwill deductible for tax purposes | 161 | |||
Revenue | 270 | |||
Operating Income | 12 | |||
Non cash impairment charge associated with merger and integration | $30 |
Allocation_of_Purchase_Price_R
Allocation of Purchase Price Recorded for Open Solutions (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 14, 2013 |
In Millions, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $5,209 | $5,216 | $4,705 | |
Open Solutions Inc | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 39 | |||
Trade accounts receivable | 41 | |||
Deferred income tax assets | 29 | |||
Prepaid expenses and other assets | 30 | |||
Intangible assets | 571 | |||
Goodwill | 517 | |||
Accounts payable and other liabilities | -140 | |||
Long-term debt | -958 | |||
Deferred income tax liabilities | -74 | |||
Total cash purchase price | $55 |
Values_Allocated_to_Intangible
Values Allocated to Intangible Assets (Detail) (Open Solutions Inc, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jan. 14, 2013 | Jan. 14, 2013 |
Acquired Finite-Lived Intangible Assets | ||
Intangible assets | $571 | $571 |
Customer Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets | ||
Intangible assets | 460 | 460 |
Intangible Assets, Weighted average useful life | 20 years | |
Acquired Software and Technology | ||
Acquired Finite-Lived Intangible Assets | ||
Intangible assets | 105 | 105 |
Intangible Assets, Weighted average useful life | 7 years | |
Trade Names | ||
Acquired Finite-Lived Intangible Assets | ||
Intangible assets | $6 | $6 |
Intangible Assets, Weighted average useful life | 10 years |
Supplemental_Pro_Forma_Informa
Supplemental Pro Forma Information (Detail) (Open Solutions Inc, USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2012 |
Open Solutions Inc | |
Business Acquisition [Line Items] | |
Total revenue | $4,764 |
Income from continuing operations | 602 |
Net income | $621 |
Net income per share - basic | $2.29 |
Net income per share - diluted | $2.26 |
Discontinued_Operation_Additio
Discontinued Operation - Additional Information (Detail) (Club Solutions Business, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Club Solutions Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash Received from sale of discontinued operations | $35 | |
Total revenue | 10 | 46 |
Loss on sale, net of income taxes | ($4) |
Investment_in_Unconsolidated_A2
Investment in Unconsolidated Affiliate - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
Dividend from unconsolidated affiliate that represents a return on investment | $110 | $6 | $23 |
StoneRiver Group, L.P. | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of interest owned in affiliate | 49.00% | ||
Investments in affiliate | 21 | 39 | |
Cash dividends on capital transactions from affiliate | 110 | 122 | 55 |
Dividend from unconsolidated affiliate that represents a return on investment | 110 | 6 | 23 |
Company's share of net transaction gains at unconsolidated affiliate | 87 | 71 | |
Company's share of net transaction gains at unconsolidated affiliate, tax expense | $36 | $17 |
Summarized_StoneRiver_Financia
Summarized StoneRiver Financial Information (Detail) (StoneRiver Group, L.P., USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
StoneRiver Group, L.P. | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenue | $140 | $606 | $722 |
Operating (loss) income | -3 | 8 | 39 |
Income from continuing operations | 5 | 242 | 17 |
Net income | 138 | 243 | 16 |
Current assets | 82 | 74 | |
Noncurrent assets | 198 | 629 | |
Current liabilities | 47 | 97 | |
Noncurrent liabilities | $254 | $527 |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 25, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Other borrowings | $6 | $3 | ||
Total | 3,803 | 3,848 | ||
Less: current maturities | -92 | -92 | ||
Long-term debt | 3,711 | 3,756 | ||
Total debt | 3,803 | 3,848 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | 42 | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Term loan | 810 | 900 | 900 | |
3.125% senior notes due 2015 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 300 | 300 | ||
3.125% senior notes due 2016 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 600 | 600 | ||
6.8% senior notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 500 | 500 | ||
4.625% senior notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 449 | 449 | ||
4.75% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 399 | 399 | ||
3.5% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $697 | $697 | $700 |
LongTerm_Debt_Parenthetical_De
Long-Term Debt (Parenthetical) (Detail) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
3.125% senior notes due 2015 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 3.13% | 3.13% | |
Debt maturity date | 2015-10 | 2015-10 | |
3.125% senior notes due 2016 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 3.13% | 3.13% | |
Debt maturity date | 2016-06 | 2016-06 | |
6.8% senior notes due 2017 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6.80% | 6.80% | |
Debt maturity date | 2017-11 | 2017-11 | |
4.625% senior notes due 2020 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 4.63% | 4.63% | |
Debt maturity date | 2020-10 | 2020-10 | |
4.75% senior notes due 2021 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 4.75% | 4.75% | |
Debt maturity date | 2021-06 | 2021-06 | |
3.5% senior notes due 2022 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 3.50% | 3.50% | 3.50% |
Debt maturity date | 2022-10 | 2022-10 | 2022-10 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Sep. 30, 2012 | Dec. 31, 2013 | Oct. 25, 2013 | |
Debt Instrument [Line Items] | ||||
Fair value of total debt | $3,900,000,000 | $3,900,000,000 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate | 1.15% | |||
Revolving credit facility with a syndicate of banks | 2,000,000,000 | |||
Revolving credit facility, expiration date | 25-Oct-18 | |||
Commitment fees | 0 | |||
Compensating balance requirements | 0 | |||
Consolidated net debt to consolidated net earnings before interest, taxes depreciation and amortization and other adjustments ratio | 350.00% | |||
Consolidated earnings before interest, taxes depreciation and amortization and other adjustments to interest expense ratio | 300.00% | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Term loan | 810,000,000 | 900,000,000 | 900,000,000 | |
Debt maturity date | 2018-10 | |||
Variable interest rate | 1.40% | |||
Term loan annual principal payments | 90,000,000 | |||
Principal payment commencement date | 31-Dec-14 | |||
Final payment amount for term loan agreement | 540,000,000 | |||
3.5% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2022-10 | 2022-10 | 2022-10 | |
Senior notes | 697,000,000 | 700,000,000 | 697,000,000 | |
Debt interest rate | 3.50% | 3.50% | 3.50% | |
Senior notes, interest rate increase in the event the Company's credit rating is downgraded below investment grade | 2.00% | |||
3.5% senior notes due 2022 | First Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | 3 | |||
3.5% senior notes due 2022 | Second Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | 9 | |||
3.125% senior notes due 2015 | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2015-10 | 2015-10 | ||
Senior notes | 300,000,000 | 300,000,000 | ||
Debt interest rate | 3.13% | 3.13% | ||
Senior notes, interest rate increase in the event the Company's credit rating is downgraded below investment grade | 2.00% | |||
3.125% senior notes due 2015 | First Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | 3 | |||
3.125% senior notes due 2015 | Second Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | 9 | |||
4.625% senior notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2020-10 | 2020-10 | ||
Senior notes | 449,000,000 | 449,000,000 | ||
Debt interest rate | 4.63% | 4.63% | ||
Senior notes, interest rate increase in the event the Company's credit rating is downgraded below investment grade | 2.00% | |||
4.625% senior notes due 2020 | First Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | 3 | |||
4.625% senior notes due 2020 | Second Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | 9 | |||
3.125% senior notes due 2016 | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2016-06 | 2016-06 | ||
Senior notes | 600,000,000 | 600,000,000 | ||
Debt interest rate | 3.13% | 3.13% | ||
Senior notes, interest rate increase in the event the Company's credit rating is downgraded below investment grade | 2.00% | |||
3.125% senior notes due 2016 | First Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | -9 | |||
3.125% senior notes due 2016 | Second Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | -3 | |||
4.75% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2021-06 | 2021-06 | ||
Senior notes | 399,000,000 | 399,000,000 | ||
Debt interest rate | 4.75% | 4.75% | ||
Senior notes, interest rate increase in the event the Company's credit rating is downgraded below investment grade | 2.00% | |||
4.75% senior notes due 2021 | First Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | -9 | |||
4.75% senior notes due 2021 | Second Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | -3 | |||
6.8% senior notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2017-11 | 2017-11 | ||
Senior notes | $500,000,000 | $500,000,000 | ||
Debt interest rate | 6.80% | 6.80% | ||
Senior notes, interest rate increase in the event the Company's credit rating is downgraded below investment grade | 2.00% | |||
6.8% senior notes due 2017 | First Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | -15 | |||
6.8% senior notes due 2017 | Second Installment | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest payment date | -9 |
Annual_Maturities_of_Total_Deb
Annual Maturities of Total Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
2015 | $92 | |
2016 | 691 | |
2017 | 591 | |
2018 | 883 | |
2019 | 1 | |
Thereafter | 1,545 | |
Total | $3,803 | $3,848 |
Derivative_Hedge_Contracts_Add
Derivative Hedge Contracts - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative | ||||
Payment for settlement of interest rate hedges | $88 | |||
Estimated interest expense related to settled interest rate hedge contracts during the next twelve months | 14 | |||
Forward Starting Swaps | ||||
Derivative | ||||
Notional value of derivative | 550 | |||
Minimum borrowing term | 5 years | |||
Maximum borrowing term | 10 years | |||
Payment for settlement of interest rate hedges | 88 | |||
Recognized hedge ineffectiveness as interest expense | 4 | |||
Accumulated other comprehensive loss | 84 | |||
Accumulated other comprehensive loss, income taxes | 33 | |||
Foreign currency forward exchange contracts | India, Rupees | ||||
Derivative | ||||
Notional value of derivative | 73 | 53 | ||
Total fair value of cash flow hedge derivatives | $1 | $1 |
Reconciliation_of_Statutory_Fe
Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal effect | 2.60% | 2.50% | 2.50% |
Unconsolidated affiliate tax | 3.40% | 1.90% | |
Domestic production activities deduction | -4.10% | -1.30% | -4.20% |
Other, net | -0.30% | -1.60% | 0.70% |
Effective income tax rate | 36.60% | 36.50% | 34.00% |
Income_Tax_Provision_Detail
Income Tax Provision (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current, Federal | $331 | $290 | $250 |
Current, State | 40 | 35 | 36 |
Current, Foreign | 10 | 12 | 9 |
Current income tax provision | 381 | 337 | 295 |
Deferred, Federal | -4 | -12 | 3 |
Deferred, State | 6 | 1 | |
Deferred, Foreign | 1 | 2 | 2 |
Deferred income taxes | 3 | -9 | 5 |
Income tax provision | $384 | $328 | $300 |
Significant_Components_of_Defe
Significant Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Accrued expenses | $37 | $35 |
Interest rate hedge contracts | 28 | 34 |
Share-based compensation | 46 | 41 |
Net operating loss and credit carry-forwards | 123 | 158 |
Deferred revenue | 47 | 40 |
Other | 28 | 16 |
Subtotal | 309 | 324 |
Valuation allowance | -42 | -42 |
Total deferred tax assets | 267 | 282 |
Capital software development costs | -127 | -109 |
Intangible assets | -737 | -763 |
Property and equipment | -42 | -31 |
Other | -35 | -37 |
Total deferred tax liabilities | -941 | -940 |
Total | ($674) | ($658) |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities on Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Current assets | $42 | $55 |
Noncurrent liabilities | -716 | -713 |
Total | ($674) | ($658) |
Unrecognized_Tax_Benefits_Deta
Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits - Beginning of year | $60 | $56 | $27 |
Increases for tax positions taken during the current year | 9 | 9 | 12 |
Increases for tax positions taken in prior years | 10 | 6 | 19 |
Decreases for tax positions taken in prior years | -21 | -7 | |
Decreases for settlements | -1 | -2 | -1 |
Lapse of the statute of limitations | -2 | -2 | -1 |
Unrecognized tax benefits - End of year | $55 | $60 | $56 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | $44 | ||
Expected significant change in unrecognized tax benefits | 3 | ||
Interest expense and penalties accrued | 5 | 4 | |
Maximum | |||
Income Tax Contingency [Line Items] | |||
Interest expense and penalties expense | 1 | 1 | 1 |
Federal | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carry-forwards | 193 | ||
Federal | Minimum | |||
Income Tax Contingency [Line Items] | |||
Expiration of net operating loss carry-forwards | 2015 | ||
Federal | Maximum | |||
Income Tax Contingency [Line Items] | |||
Expiration of net operating loss carry-forwards | 2031 | ||
State | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carry-forwards | 574 | ||
State | Minimum | |||
Income Tax Contingency [Line Items] | |||
Expiration of net operating loss carry-forwards | 2015 | ||
State | Maximum | |||
Income Tax Contingency [Line Items] | |||
Expiration of net operating loss carry-forwards | 2034 | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carry-forwards | 83 | ||
Foreign Carryforwards Subject To Expiration | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carry-forwards | $51 | ||
Foreign Carryforwards Subject To Expiration | Minimum | |||
Income Tax Contingency [Line Items] | |||
Expiration of net operating loss carry-forwards | 2017 | ||
Foreign Carryforwards Subject To Expiration | Maximum | |||
Income Tax Contingency [Line Items] | |||
Expiration of net operating loss carry-forwards | 2034 |
Employee_Stock_and_Savings_Pla2
Employee Stock and Savings Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $49 | $46 | $44 |
Income tax benefits from share-based compensation | 17 | 16 | 15 |
Unrecognized compensation cost | 71 | ||
Period over which unrecognized cost will be recognized, years | 2 years 3 months 18 days | ||
Weighted-average estimated fair value per share of stock options granted | $18.90 | $13 | $10.86 |
Share-based awards, shares available for grant | 21,600,000 | ||
Defined contribution plan expense | $37 | $36 | $33 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Expiration of awards, years after date of awards | 10 years | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee purchase percentage of the closing price of common stock | 85.00% | ||
Compensation cost recognized related to discount on purchase date | 15.00% | ||
Share-based awards, shares available for grant | 6,400,000 | ||
Shares issued under equity plan | 600,000 | 700,000 | 800,000 |
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual increase in number of shares available for future issue | 2,000,000 | ||
Annual increase in number of shares available for future issue as percentage of common stock outstanding | 1.00% |
Schedule_of_Estimation_Assumpt
Schedule of Estimation Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 6 years 3 months 18 days | 6 years 4 months 24 days | 6 years 6 months |
Average risk-free interest rate | 2.00% | 0.90% | 1.30% |
Expected volatility | 29.60% | 29.90% | 31.10% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options outstanding, Shares, Beginning balance | 10,080 |
Stock options, Granted | 1,357 |
Stock options, Forfeited | -288 |
Stock options, Exercised | -1,275 |
Stock options outstanding, Shares, Ending balance | 9,874 |
Stock options exercisable | 6,838 |
Weighted-Average Exercise Price, Stock options outstanding, Beginning balance | $28.97 |
Weighted-Average Exercise Price, Stock options, Granted | $57.29 |
Weighted-Average Exercise Price, Stock options, Forfeited | $40.60 |
Weighted-Average Exercise Price, Stock options, Exercised | $27.65 |
Weighted-Average Exercise Price, Stock options outstanding, Ending balance | $32.69 |
Weighted-Average Exercise Price, Stock options exercisable | $26.40 |
Weighted-Average Remaining Contractual Term, Stock options outstanding, in Years | 5 years 8 months 12 days |
Weighted-Average Remaining Contractual Term, Stock options exercisable, in Years | 4 years 4 months 24 days |
Aggregate Intrinsic Value, Stock options outstanding | $378 |
Aggregate Intrinsic Value, Stock options exercisable | $305 |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Unit Activity (Detail) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Restricted stock units, Beginning balance | 2,157 |
Shares, Granted | 539 |
Shares, Forfeited | -240 |
Shares, Vested | -594 |
Shares, Restricted stock units, Ending balance | 1,862 |
Weighted-Average Grant Date Fair Value, Restricted stock units, Beginning balance | $34.92 |
Weighted-Average Grant Date Fair Value, Granted | $58.87 |
Weighted-Average Grant Date Fair Value, Forfeited | $39.86 |
Weighted-Average Grant Date Fair Value, Vested | $32.16 |
Weighted-Average Grant Date Fair Value, Restricted stock units, Ending balance | $42.02 |
Schedule_of_Additional_Informa
Schedule of Additional Information Related to Stock Option and Restricted Stock Unit Activity (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of stock options exercised | $43 | $27 | $51 |
Cash received from stock option exercises | 33 | 32 | 80 |
Gross income tax benefit from stock option exercises | 16 | 10 | 20 |
Fair value of restricted stock units upon vesting | $35 | $31 | $29 |
Schedule_of_Operating_Lease_Mi
Schedule of Operating Lease Minimum Rental Payments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $93 |
2016 | 77 |
2017 | 60 |
2018 | 40 |
2019 | 27 |
Thereafter | 86 |
Total | $383 |
Leases_Commitments_and_Conting2
Leases, Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Lease Commitments And Contingencies [Line Items] | |||
Rent expense | $108,000,000 | $105,000,000 | $110,000,000 |
Subscriber funds held | $1,400,000,000 |
Schedule_of_Segment_Reporting_
Schedule of Segment Reporting Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Processing and services revenue | $4,219 | $4,035 | $3,663 | ||||||||
Product revenue | 847 | 779 | 773 | ||||||||
Total revenue | 1,316 | 1,263 | 1,253 | 1,234 | 1,263 | 1,201 | 1,198 | 1,152 | 5,066 | 4,814 | 4,436 |
Operating income | 317 | 315 | 307 | 271 | 297 | 280 | 273 | 211 | 1,210 | 1,061 | 1,048 |
Total assets | 9,337 | 9,513 | 9,337 | 9,513 | 8,497 | ||||||
Capital expenditures | 292 | 236 | 193 | ||||||||
Depreciation and amortization expense | 404 | 403 | 350 | ||||||||
Payments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Processing and services revenue | 2,030 | 1,902 | 1,788 | ||||||||
Product revenue | 717 | 650 | 655 | ||||||||
Total revenue | 2,747 | 2,552 | 2,443 | ||||||||
Operating income | 768 | 702 | 657 | ||||||||
Total assets | 5,850 | 5,985 | 5,850 | 5,985 | 6,109 | ||||||
Capital expenditures | 176 | 131 | 107 | ||||||||
Depreciation and amortization expense | 102 | 93 | 97 | ||||||||
Financial | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Processing and services revenue | 2,195 | 2,143 | 1,887 | ||||||||
Product revenue | 172 | 166 | 153 | ||||||||
Total revenue | 2,367 | 2,309 | 2,040 | ||||||||
Operating income | 773 | 745 | 652 | ||||||||
Total assets | 3,225 | 3,220 | 3,225 | 3,220 | 2,094 | ||||||
Capital expenditures | 107 | 87 | 76 | ||||||||
Depreciation and amortization expense | 71 | 71 | 73 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Processing and services revenue | -6 | -10 | -12 | ||||||||
Product revenue | -42 | -37 | -35 | ||||||||
Total revenue | -48 | -47 | -47 | ||||||||
Operating income | -331 | -386 | -261 | ||||||||
Total assets | 262 | 308 | 262 | 308 | 294 | ||||||
Capital expenditures | 9 | 18 | 10 | ||||||||
Depreciation and amortization expense | $231 | $239 | $180 |
Business_Segment_Information_A
Business Segment Information - Additional Information (Detail) (Sales Revenue, Net, Geographic Concentration Risk, Foreign Tax Authority) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Sales Revenue, Net | Geographic Concentration Risk | Foreign Tax Authority | |||
Segment Reporting Information [Line Items] | |||
Clients outside the U.S., percentage of total revenue | 6.00% | 7.00% | 7.00% |
Condensed_Consolidating_Statem
Condensed Consolidating Statement of Income and Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||||||||||
Processing and services | $4,219 | $4,035 | $3,663 | ||||||||
Product | 847 | 779 | 773 | ||||||||
Total revenue | 1,316 | 1,263 | 1,253 | 1,234 | 1,263 | 1,201 | 1,198 | 1,152 | 5,066 | 4,814 | 4,436 |
Expenses: | |||||||||||
Cost of processing and services | 554 | 537 | 532 | 541 | 516 | 520 | 523 | 522 | 2,164 | 2,081 | 1,936 |
Cost of product | 198 | 168 | 171 | 180 | 184 | 164 | 157 | 190 | 717 | 695 | 628 |
Selling, general and administrative | 247 | 243 | 243 | 242 | 266 | 237 | 245 | 229 | 975 | 977 | 824 |
Total expenses | 999 | 948 | 946 | 963 | 966 | 921 | 925 | 941 | 3,856 | 3,753 | 3,388 |
Operating income (loss) | 317 | 315 | 307 | 271 | 297 | 280 | 273 | 211 | 1,210 | 1,061 | 1,048 |
Interest expense, net | -163 | -163 | -167 | ||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | 1,047 | 898 | 881 | ||||||||
Income tax (provision) benefit | -384 | -328 | -300 | ||||||||
Income from investment in unconsolidated affiliate | 91 | 80 | 11 | ||||||||
Income from continuing operations | 181 | 239 | 166 | 168 | 220 | 161 | 152 | 117 | 754 | 650 | 592 |
Income (loss) from discontinued operations, net of income taxes | -2 | 19 | |||||||||
Net income | 181 | 239 | 166 | 168 | 221 | 159 | 151 | 117 | 754 | 648 | 611 |
Comprehensive income | 175 | 231 | 171 | 174 | 224 | 163 | 146 | 115 | 751 | 648 | 629 |
Parent Company | |||||||||||
Expenses: | |||||||||||
Selling, general and administrative | 95 | 110 | 104 | ||||||||
Total expenses | 95 | 110 | 104 | ||||||||
Operating income (loss) | -95 | -110 | -104 | ||||||||
Interest expense, net | -130 | -129 | -104 | ||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | -225 | -239 | -208 | ||||||||
Income tax (provision) benefit | 109 | 102 | 103 | ||||||||
Equity in earnings of consolidated affiliates | 870 | 787 | 697 | ||||||||
Income from continuing operations | 754 | 650 | 592 | ||||||||
Income (loss) from discontinued operations, net of income taxes | -2 | 19 | |||||||||
Net income | 754 | 648 | 611 | ||||||||
Comprehensive income | 751 | 648 | 629 | ||||||||
Guarantor Subsidiaries | |||||||||||
Revenue: | |||||||||||
Processing and services | 3,077 | 2,919 | 2,596 | ||||||||
Product | 810 | 734 | 717 | ||||||||
Total revenue | 3,887 | 3,653 | 3,313 | ||||||||
Expenses: | |||||||||||
Cost of processing and services | 1,587 | 1,481 | 1,385 | ||||||||
Cost of product | 681 | 667 | 615 | ||||||||
Selling, general and administrative | 657 | 632 | 499 | ||||||||
Total expenses | 2,925 | 2,780 | 2,499 | ||||||||
Operating income (loss) | 962 | 873 | 814 | ||||||||
Interest expense, net | -25 | -20 | -57 | ||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | 937 | 853 | 757 | ||||||||
Income tax (provision) benefit | -373 | -327 | -280 | ||||||||
Income from investment in unconsolidated affiliate | 91 | 80 | 11 | ||||||||
Income from continuing operations | 655 | 606 | 488 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 5 | ||||||||||
Net income | 655 | 606 | 493 | ||||||||
Comprehensive income | 655 | 606 | 493 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Revenue: | |||||||||||
Processing and services | 1,318 | 1,281 | 1,226 | ||||||||
Product | 108 | 109 | 114 | ||||||||
Total revenue | 1,426 | 1,390 | 1,340 | ||||||||
Expenses: | |||||||||||
Cost of processing and services | 753 | 765 | 710 | ||||||||
Cost of product | 107 | 92 | 71 | ||||||||
Selling, general and administrative | 223 | 235 | 221 | ||||||||
Total expenses | 1,083 | 1,092 | 1,002 | ||||||||
Operating income (loss) | 343 | 298 | 338 | ||||||||
Interest expense, net | -8 | -14 | -6 | ||||||||
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | 335 | 284 | 332 | ||||||||
Income tax (provision) benefit | -120 | -103 | -123 | ||||||||
Income from continuing operations | 215 | 181 | 209 | ||||||||
Net income | 215 | 181 | 209 | ||||||||
Comprehensive income | 204 | 173 | 213 | ||||||||
Eliminations | |||||||||||
Revenue: | |||||||||||
Processing and services | -176 | -165 | -159 | ||||||||
Product | -71 | -64 | -58 | ||||||||
Total revenue | -247 | -229 | -217 | ||||||||
Expenses: | |||||||||||
Cost of processing and services | -176 | -165 | -159 | ||||||||
Cost of product | -71 | -64 | -58 | ||||||||
Total expenses | -247 | -229 | -217 | ||||||||
Equity in earnings of consolidated affiliates | -870 | -787 | -697 | ||||||||
Income from continuing operations | -870 | -787 | -697 | ||||||||
Income (loss) from discontinued operations, net of income taxes | -5 | ||||||||||
Net income | -870 | -787 | -702 | ||||||||
Comprehensive income | ($859) | ($779) | ($706) |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $294 | $400 | $358 | $337 |
Trade accounts receivable, net | 798 | 751 | ||
Deferred income taxes | 42 | 55 | ||
Prepaid expenses and other current assets | 352 | 366 | ||
Total current assets | 1,486 | 1,572 | ||
Intangible assets, net | 2,003 | 2,142 | ||
Goodwill | 5,209 | 5,216 | 4,705 | |
Other long-term assets | 639 | 583 | ||
Total assets | 9,337 | 9,513 | 8,497 | |
Liabilities and Shareholders' Equity | ||||
Accounts payable and accrued expenses | 905 | 756 | ||
Current maturities of long-term debt | 92 | 92 | ||
Deferred revenue | 489 | 484 | ||
Total current liabilities | 1,486 | 1,332 | ||
Long-term debt | 3,711 | 3,756 | ||
Other long-term liabilities | 845 | 840 | ||
Total liabilities | 6,042 | 5,928 | ||
Total shareholders' equity | 3,295 | 3,585 | ||
Total liabilities and shareholders' equity | 9,337 | 9,513 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 21 | 139 | 85 | 73 |
Deferred income taxes | 40 | 54 | ||
Prepaid expenses and other current assets | 8 | 27 | ||
Total current assets | 69 | 220 | ||
Investments in consolidated affiliates | 10,987 | 10,122 | ||
Intangible assets, net | 23 | 22 | ||
Other long-term assets | 36 | 33 | ||
Total assets | 11,115 | 10,397 | ||
Liabilities and Shareholders' Equity | ||||
Accounts payable and accrued expenses | 119 | 87 | ||
Current maturities of long-term debt | 90 | 90 | ||
Total current liabilities | 209 | 177 | ||
Long-term debt | 3,707 | 3,754 | ||
Due to consolidated affiliates | 3,137 | 2,108 | ||
Other long-term liabilities | 767 | 773 | ||
Total liabilities | 7,820 | 6,812 | ||
Total shareholders' equity | 3,295 | 3,585 | ||
Total liabilities and shareholders' equity | 11,115 | 10,397 | ||
Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 80 | 76 | 66 | 71 |
Trade accounts receivable, net | 510 | 465 | ||
Prepaid expenses and other current assets | 209 | 195 | ||
Total current assets | 799 | 736 | ||
Due from consolidated affiliates | 2,467 | 1,683 | ||
Intangible assets, net | 1,734 | 1,866 | ||
Goodwill | 4,154 | 4,150 | ||
Other long-term assets | 496 | 448 | ||
Total assets | 9,650 | 8,883 | ||
Liabilities and Shareholders' Equity | ||||
Accounts payable and accrued expenses | 586 | 463 | ||
Current maturities of long-term debt | 2 | 2 | ||
Deferred revenue | 285 | 292 | ||
Total current liabilities | 873 | 757 | ||
Long-term debt | 4 | 2 | ||
Other long-term liabilities | 31 | 25 | ||
Total liabilities | 908 | 784 | ||
Total shareholders' equity | 8,742 | 8,099 | ||
Total liabilities and shareholders' equity | 9,650 | 8,883 | ||
Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 193 | 185 | 207 | 193 |
Trade accounts receivable, net | 288 | 286 | ||
Deferred income taxes | 2 | 1 | ||
Prepaid expenses and other current assets | 135 | 144 | ||
Total current assets | 618 | 616 | ||
Due from consolidated affiliates | 670 | 425 | ||
Intangible assets, net | 246 | 254 | ||
Goodwill | 1,055 | 1,066 | ||
Other long-term assets | 107 | 102 | ||
Total assets | 2,696 | 2,463 | ||
Liabilities and Shareholders' Equity | ||||
Accounts payable and accrued expenses | 200 | 206 | ||
Deferred revenue | 204 | 192 | ||
Total current liabilities | 404 | 398 | ||
Other long-term liabilities | 47 | 42 | ||
Total liabilities | 451 | 440 | ||
Total shareholders' equity | 2,245 | 2,023 | ||
Total liabilities and shareholders' equity | 2,696 | 2,463 | ||
Eliminations | ||||
Assets | ||||
Due from consolidated affiliates | -3,137 | -2,108 | ||
Investments in consolidated affiliates | -10,987 | -10,122 | ||
Total assets | -14,124 | -12,230 | ||
Liabilities and Shareholders' Equity | ||||
Due to consolidated affiliates | -3,137 | -2,108 | ||
Total liabilities | -3,137 | -2,108 | ||
Total shareholders' equity | -10,987 | -10,122 | ||
Total liabilities and shareholders' equity | ($14,124) | ($12,230) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities from continuing operations | $1,307 | $1,039 | $826 |
Cash flows from investing activities: | |||
Capital expenditures, including capitalization of software costs | -292 | -236 | -193 |
Payments for acquisitions of businesses, net of cash acquired | -30 | ||
Dividend from unconsolidated affiliate | 116 | 32 | |
Net proceeds from investments | 7 | 4 | 28 |
Other investing activities | -1 | -2 | -3 |
Net cash used in investing activities from continuing operations | -286 | -148 | -136 |
Cash flows from financing activities: | |||
Debt proceeds | 604 | 2,252 | 1,469 |
Debt repayments | -653 | -2,590 | -1,642 |
Issuance of treasury stock | 53 | 49 | 96 |
Purchases of treasury stock | -1,148 | -578 | -634 |
Other financing activities | 18 | -6 | 5 |
Net cash (used in) provided by financing activities from continuing operations | -1,126 | -873 | -706 |
Net change in cash and cash equivalents from continuing operations | -105 | 18 | -16 |
Net cash flows from (to) discontinued operations | -1 | 24 | 37 |
Beginning balance | 400 | 358 | 337 |
Ending balance | 294 | 400 | 358 |
Parent Company | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities from continuing operations | -34 | -61 | -168 |
Cash flows from investing activities: | |||
Capital expenditures, including capitalization of software costs | -3 | -3 | -4 |
Payments for acquisitions of businesses, net of cash acquired | -55 | ||
Other investing activities | -13 | -2 | -2 |
Net cash used in investing activities from continuing operations | -16 | -60 | -6 |
Cash flows from financing activities: | |||
Debt proceeds | 604 | 2,252 | 1,469 |
Debt repayments | -653 | -2,589 | -1,592 |
Issuance of treasury stock | 53 | 49 | 96 |
Purchases of treasury stock | -1,148 | -578 | -634 |
Other financing activities | 1,077 | 1,050 | 817 |
Net cash (used in) provided by financing activities from continuing operations | -67 | 184 | 156 |
Net change in cash and cash equivalents from continuing operations | -117 | 63 | -18 |
Net cash flows from (to) discontinued operations | -1 | -9 | 30 |
Beginning balance | 139 | 85 | 73 |
Ending balance | 21 | 139 | 85 |
Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities from continuing operations | 1,029 | 842 | 722 |
Cash flows from investing activities: | |||
Capital expenditures, including capitalization of software costs | -205 | -169 | -142 |
Payments for acquisitions of businesses, net of cash acquired | 25 | ||
Dividend from unconsolidated affiliate | 116 | 32 | |
Net proceeds from investments | 2 | 2 | |
Other investing activities | -856 | -839 | -621 |
Net cash used in investing activities from continuing operations | -1,061 | -865 | -729 |
Cash flows from financing activities: | |||
Debt repayments | -1 | -6 | |
Other financing activities | 36 | 1 | 1 |
Net cash (used in) provided by financing activities from continuing operations | 36 | -5 | |
Net change in cash and cash equivalents from continuing operations | 4 | -23 | -12 |
Net cash flows from (to) discontinued operations | 33 | 7 | |
Beginning balance | 76 | 66 | 71 |
Ending balance | 80 | 76 | 66 |
Non-Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities from continuing operations | 312 | 258 | 272 |
Cash flows from investing activities: | |||
Capital expenditures, including capitalization of software costs | -84 | -64 | -47 |
Net proceeds from investments | 7 | 2 | 26 |
Other investing activities | -240 | -204 | -197 |
Net cash used in investing activities from continuing operations | -317 | -266 | -218 |
Cash flows from financing activities: | |||
Debt repayments | -44 | ||
Other financing activities | 13 | -14 | 4 |
Net cash (used in) provided by financing activities from continuing operations | 13 | -14 | -40 |
Net change in cash and cash equivalents from continuing operations | 8 | -22 | 14 |
Beginning balance | 185 | 207 | 193 |
Ending balance | 193 | 185 | 207 |
Eliminations | |||
Cash flows from investing activities: | |||
Other investing activities | 1,108 | 1,043 | 817 |
Net cash used in investing activities from continuing operations | 1,108 | 1,043 | 817 |
Cash flows from financing activities: | |||
Other financing activities | -1,108 | -1,043 | -817 |
Net cash (used in) provided by financing activities from continuing operations | ($1,108) | ($1,043) | ($817) |
Schedule_of_Quarterly_Financia
Schedule of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Total revenue | $1,316 | $1,263 | $1,253 | $1,234 | $1,263 | $1,201 | $1,198 | $1,152 | $5,066 | $4,814 | $4,436 | ||||||||||
Cost of processing and services | 554 | 537 | 532 | 541 | 516 | 520 | 523 | 522 | 2,164 | 2,081 | 1,936 | ||||||||||
Cost of product | 198 | 168 | 171 | 180 | 184 | 164 | 157 | 190 | 717 | 695 | 628 | ||||||||||
Selling, general and administrative expenses | 247 | 243 | 243 | 242 | 266 | 237 | 245 | 229 | 975 | 977 | 824 | ||||||||||
Total expenses | 999 | 948 | 946 | 963 | 966 | 921 | 925 | 941 | 3,856 | 3,753 | 3,388 | ||||||||||
Operating income | 317 | 315 | 307 | 271 | 297 | 280 | 273 | 211 | 1,210 | 1,061 | 1,048 | ||||||||||
Income from continuing operations | 181 | 239 | 166 | 168 | 220 | 161 | 152 | 117 | 754 | 650 | 592 | ||||||||||
Net income | 181 | 239 | 166 | 168 | 221 | 159 | 151 | 117 | 754 | 648 | 611 | ||||||||||
Comprehensive income | $175 | $231 | $171 | $174 | $224 | $163 | $146 | $115 | $751 | $648 | $629 | ||||||||||
Net income per share - continuing operations basic | $0.75 | [1] | $0.96 | [1] | $0.66 | [1] | $0.66 | [1] | $0.85 | [1] | $0.62 | [1] | $0.57 | [1] | $0.44 | [1] | $3.04 | [1] | $2.48 | [1] | $2.18 |
Net income per share - continuing operations diluted | $0.73 | [1] | $0.95 | [1] | $0.65 | [1] | $0.65 | [1] | $0.84 | [1] | $0.61 | [1] | $0.57 | [1] | $0.43 | [1] | $2.99 | [1] | $2.44 | [1] | $2.15 |
[1] | Net income per share in each period is calculated using actual, unrounded amounts. |