Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 23, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FISV | |
Entity Registrant Name | FISERV INC | |
Entity Central Index Key | 798,354 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 234,577,658 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Processing and services | $ 1,109 | $ 1,051 | $ 2,176 | $ 2,078 |
Product | 189 | 202 | 397 | 409 |
Total revenue | 1,298 | 1,253 | 2,573 | 2,487 |
Expenses: | ||||
Cost of processing and services | 542 | 532 | 1,084 | 1,073 |
Cost of product | 168 | 171 | 349 | 351 |
Selling, general and administrative | 262 | 243 | 500 | 485 |
Total expenses | 972 | 946 | 1,933 | 1,909 |
Operating income | 326 | 307 | 640 | 578 |
Interest expense | (49) | (41) | (90) | (82) |
Interest and investment income | 1 | 1 | 1 | |
Loss on early debt extinguishment | (85) | (85) | ||
Income from continuing operations before income taxes and income from investment in unconsolidated affiliate | 192 | 267 | 466 | 497 |
Income tax provision | (66) | (101) | (162) | (167) |
Income from investment in unconsolidated affiliate | 1 | 1 | 4 | |
Income from continuing operations | 127 | 166 | 305 | 334 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 |
Net income | $ 127 | $ 166 | $ 305 | $ 334 |
Net income per share - basic: | ||||
Continuing operations | $ 0.54 | $ 0.66 | $ 1.28 | $ 1.33 |
Discontinued operations | 0 | 0 | 0 | 0 |
Total | 0.54 | 0.66 | 1.28 | 1.33 |
Net income per share - diluted: | ||||
Continuing operations | 0.53 | 0.65 | 1.26 | 1.31 |
Discontinued operations | 0 | 0 | 0 | 0 |
Total | $ 0.53 | $ 0.65 | $ 1.26 | $ 1.30 |
Shares used in computing net income per share: | ||||
Basic | 236.5 | 249.3 | 237.6 | 251.9 |
Diluted | 240.4 | 253.4 | 241.7 | 256 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 127 | $ 166 | $ 305 | $ 334 |
Other comprehensive income (loss): | ||||
Fair market value adjustment on cash flow hedges, net of income tax provision of $1 million | 2 | |||
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of income tax provision of $3 million, $1 million, $4 million and $2 million | 5 | 2 | 7 | 4 |
Foreign currency translation | 3 | (10) | 5 | |
Total other comprehensive income (loss) | 5 | 5 | (3) | 11 |
Comprehensive income | $ 132 | $ 171 | $ 302 | $ 345 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Fair market value adjustment on cash flow hedges, tax provision | $ 1 | |||
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, tax provision | $ 3 | $ 1 | $ 4 | $ 2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 530 | $ 294 |
Trade accounts receivable, net | 746 | 798 |
Deferred income taxes | 40 | 42 |
Prepaid expenses and other current assets | 398 | 352 |
Total current assets | 1,714 | 1,486 |
Property and equipment, net | 382 | 317 |
Intangible assets, net | 1,940 | 2,003 |
Goodwill | 5,204 | 5,209 |
Other long-term assets | 348 | 322 |
Total assets | 9,588 | 9,337 |
Liabilities and Shareholders' Equity | ||
Accounts payable and accrued expenses | 898 | 905 |
Current maturities of long-term debt | 5 | 92 |
Deferred revenue | 433 | 489 |
Total current liabilities | 1,336 | 1,486 |
Long-term debt | 4,231 | 3,711 |
Deferred income taxes | 712 | 716 |
Other long-term liabilities | 166 | 129 |
Total liabilities | $ 6,445 | $ 6,042 |
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 | 920 | 897 |
Accumulated other comprehensive loss | (66) | (63) |
Retained earnings | 7,657 | 7,352 |
Treasury stock, at cost, 160.5 million and 155.4 million shares | (5,372) | (4,895) |
Total shareholders' equity | 3,143 | 3,295 |
Total liabilities and shareholders' equity | $ 9,588 | $ 9,337 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value | ||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, issued | 0 | 0 |
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 | 160,500,000 | 155,400,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 305 | $ 334 |
Adjustment for discontinued operations | 0 | 0 |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | ||
Depreciation and other amortization | 107 | 96 |
Amortization of acquisition-related intangible assets | 99 | 103 |
Share-based compensation | 36 | 27 |
Excess tax benefits from share-based awards | (29) | (12) |
Deferred income taxes | (9) | (27) |
Income from investment in unconsolidated affiliate | (1) | (4) |
Loss on early debt extinguishment | 85 | |
Dividends from unconsolidated affiliate | 45 | |
Other operating activities | 1 | |
Changes in assets and liabilities: | ||
Trade accounts receivable | 53 | 25 |
Prepaid expenses and other assets | (40) | (24) |
Accounts payable and other liabilities | 38 | 46 |
Deferred revenue | (45) | (40) |
Net cash provided by operating activities from continuing operations | 600 | 569 |
Cash flows from investing activities: | ||
Capital expenditures, including capitalization of software costs | (203) | (150) |
Other investing activities | 1 | |
Net cash used in investing activities from continuing operations | (203) | (149) |
Cash flows from financing activities: | ||
Debt proceeds | 2,392 | 544 |
Debt repayments, including redemption and other costs | (2,055) | (544) |
Proceeds from issuance of treasury stock | 47 | 26 |
Purchases of treasury stock, including employee shares withheld for tax obligations | (574) | (528) |
Excess tax benefits from share-based awards | 29 | 12 |
Other financing activities | (1) | |
Net cash used in financing activities from continuing operations | (161) | (491) |
Net change in cash and cash equivalents from continuing operations | 236 | (71) |
Net cash flows from (to) discontinued operations | 0 | 0 |
Beginning balance | 294 | 400 |
Ending balance | $ 530 | $ 329 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The consolidated financial statements for the three-month and six-month periods ended June 30, 2015 and 2014 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. 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 total debt was $4.3 billion at June 30, 2015 and $3.9 billion at December 31, 2014 and was estimated using quoted prices in inactive 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). |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
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 $22 million and $21 million at June 30, 2015 and December 31, 2014, 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. During the second quarter of 2014, the Company received a $45 million cash dividend from StoneRiver, funded from a capital transaction. The entire dividend represented a return on the Company’s investment and was reported as cash flows from operating activities. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 5. Share-Based Compensation The Company recognized $18 million and $36 million of share-based compensation expense during the three and six months ended June 30, 2015, respectively, and $12 million and $27 million of share-based compensation expense during the three and six months ended June 30, 2014, respectively. The Company’s annual grant of share-based awards generally occurs in the first quarter. During the six months ended June 30, 2015, the Company granted 1.1 million stock options and 0.3 million restricted stock units at weighted-average estimated fair values of $25.43 and $79.06, respectively. During the six months ended June 30, 2014, the Company granted 1.3 million stock options and 0.5 million restricted stock units at weighted-average estimated fair values of $18.80 and $57.08, respectively. During the six months ended June 30, 2015 and 2014, stock options to purchase 1.7 million and 0.8 million shares, respectively, were exercised. |
Shares Used in Computing Net In
Shares Used in Computing Net Income Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Shares Used in Computing Net Income Per Share | 6. Shares Used in Computing Net Income Per Share The computation of shares used in calculating basic and diluted net income per common share is as follows: Three Months June 30, Six Months June 30, (In millions) 2015 2014 2015 2014 Weighted-average common shares outstanding used for the calculation of net income per share – basic 236.5 249.3 237.6 251.9 Common stock equivalents 3.9 4.1 4.1 4.1 Weighted-average common shares outstanding used for the calculation of net income per share – diluted 240.4 253.4 241.7 256.0 For the three months ended June 30, 2015 and 2014, stock options for 1.1 million and 1.4 million shares, respectively, were excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive. For the six months ended June 30, 2015 and 2014, stock options for 0.8 million and 1.1 million shares, respectively, were excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets Intangible assets consisted of the following: (In millions) June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Value Customer related intangible assets $ 2,155 $ 860 $ 1,295 Acquired software and technology 493 388 105 Trade names 120 50 70 Capitalized software development costs 557 199 358 Purchased software 259 147 112 Total $ 3,584 $ 1,644 $ 1,940 (In millions) December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Value 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 The Company estimates that annual amortization expense with respect to acquired intangible assets, which include customer related intangible assets, acquired software and technology, and trade names, 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 is estimated to approximate $115 million. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 8. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: (In millions) June 30, 2015 December 31, 2014 Trade accounts payable $ 77 $ 61 Client deposits 302 261 Settlement obligations 191 176 Accrued compensation and benefits 133 192 Other accrued expenses 195 215 Total $ 898 $ 905 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt In April 2015, the Company entered into an amended and restated revolving credit agreement that restated its existing $2.0 billion revolving credit agreement with a syndicate of banks and extended its maturity from October 2018 to April 2020. The amended and restated credit agreement also provided that the Company’s subsidiaries that were guaranteeing its obligations under the revolving credit facility were released from their respective guarantees. Borrowings under the amended revolving credit facility continue to bear interest at a variable rate based on LIBOR or on a base rate, plus a specified margin based on the Company’s long-term debt rating in effect from time to time. There are no significant commitment fees and no compensating balance requirements. The amended revolving credit facility contains various restrictions and covenants that are substantially similar to those under the Company’s previously existing credit agreement. In April 2015, the Company also entered into an amendment to its term loan facility to conform certain of its terms to those in the amended and restated credit agreement, including providing that its subsidiaries that were guaranteeing its obligations under the term loan facility were released from their respective guarantees. In addition, in April 2015, the Company provided notice to the trustee under the indenture and supplemental indentures governing its outstanding senior notes that the subsidiary guarantors of the outstanding senior notes were automatically released from all of their obligations under the supplemental indentures and their respective guarantees. In May 2015, the Company completed an offering of $1.75 billion of senior notes comprised of $850 million aggregate principal amount of 2.7% senior notes due in June 2020 and $900 million aggregate principal amount of 3.85% senior notes due in June 2025. The notes pay interest semi-annually on June 1 and December 1, commencing on December 1, 2015. The interest rate applicable to these notes is subject to an increase of up to two percent in the event that the Company’s credit rating is downgraded below investment grade. The indentures governing the senior notes contain 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. The Company used the net proceeds from this offering to redeem its $600 million aggregate principal amount of 3.125% senior notes due in June 2016 and $500 million aggregate principal amount of 6.8% senior notes due in November 2017. The Company recorded a pre-tax loss on early debt extinguishment of $85 million related to make-whole payments and other costs associated with this redemption. In addition, the Company paid scheduled December 2015 and December 2016 principal payments on the term loan totaling $180 million and repaid outstanding borrowings under the amended and restated revolving credit facility. At June 30, 2015 and December 31, 2014, the Company’s $300 million aggregate principal amount of 3.125% senior notes due in October 2015 were classified in the consolidated balance sheets as long-term as the Company has the intent to refinance this debt on a long-term basis and the ability to do so under its amended and restated revolving credit facility. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 10. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: (In millions) Cash Hedges Foreign Currency Translation Other Total Balance at December 31, 2014 $ (41 ) $ (20 ) $ (2 ) $ (63 ) Other comprehensive loss before reclassifications — (10 ) — (10 ) Amounts reclassified from accumulated other comprehensive loss 7 — — 7 Net current-period other comprehensive (loss) income 7 (10 ) — (3 ) Balance at June 30, 2015 $ (34 ) $ (30 ) $ (2 ) $ (66 ) (In millions) Cash Hedges Foreign Currency Translation Other Total Balance at December 31, 2013 $ (49 ) $ (9 ) $ (2 ) $ (60 ) Other comprehensive income before reclassifications 2 5 — 7 Amounts reclassified from accumulated other comprehensive loss 4 — — 4 Net current-period other comprehensive income 6 5 — 11 Balance at June 30, 2014 $ (43 ) $ (4 ) $ (2 ) $ (49 ) Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2015, the Company estimates that it will recognize approximately $12 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 June 30, 2015, the notional amount of these derivatives was approximately $57 million, and the fair value was nominal. As of December 31, 2014, the notional amount of these derivatives was approximately $73 million, and the fair value totaling approximately $1 million was recorded within current accrued expenses in the consolidated balance sheet. |
Cash Flow Information
Cash Flow Information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | 11. Cash Flow Information Supplemental cash flow information was as follows: Six Months June 30, (In millions) 2015 2014 Interest paid $ 75 $ 72 Income taxes paid from continuing operations 150 137 Treasury stock purchases settled after the balance sheet date 15 — |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | 12. Business Segment Information The Company’s operations are comprised of the Payments and Industry Products (“Payments”) segment and the Financial Institution Services (“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 and Other Total Three Months Ended June 30, 2015 Processing and services revenue $ 540 $ 570 $ (1 ) $ 1,109 Product revenue 161 38 (10 ) 189 Total revenue $ 701 $ 608 $ (11 ) $ 1,298 Operating income $ 208 $ 209 $ (91 ) $ 326 Three Months Ended June 30, 2014 Processing and services revenue $ 501 $ 551 $ (1 ) $ 1,051 Product revenue 168 44 (10 ) 202 Total revenue $ 669 $ 595 $ (11 ) $ 1,253 Operating income $ 185 $ 203 $ (81 ) $ 307 Six Months Ended June 30, 2015 Processing and services revenue $ 1,056 $ 1,122 $ (2 ) $ 2,176 Product revenue 341 79 (23 ) 397 Total revenue $ 1,397 $ 1,201 $ (25 ) $ 2,573 Operating income $ 399 $ 413 $ (172 ) $ 640 Six Months Ended June 30, 2014 Processing and services revenue $ 992 $ 1,090 $ (4 ) $ 2,078 Product revenue 350 80 (21 ) 409 Total revenue $ 1,342 $ 1,170 $ (25 ) $ 2,487 Operating income $ 365 $ 388 $ (175 ) $ 578 As of both June 30, 2015 and December 31, 2014, goodwill was $3.4 billion and $1.8 billion in the Payments and Financial segments, respectively. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
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. |
Shares Used in Computing Net 21
Shares Used in Computing Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Number of Shares | The computation of shares used in calculating basic and diluted net income per common share is as follows: Three Months June 30, Six Months June 30, (In millions) 2015 2014 2015 2014 Weighted-average common shares outstanding used for the calculation of net income per share – basic 236.5 249.3 237.6 251.9 Common stock equivalents 3.9 4.1 4.1 4.1 Weighted-average common shares outstanding used for the calculation of net income per share – diluted 240.4 253.4 241.7 256.0 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets by Class | Intangible assets consisted of the following: (In millions) June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Value Customer related intangible assets $ 2,155 $ 860 $ 1,295 Acquired software and technology 493 388 105 Trade names 120 50 70 Capitalized software development costs 557 199 358 Purchased software 259 147 112 Total $ 3,584 $ 1,644 $ 1,940 (In millions) December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Value 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 |
Accounts Payable and Accrued 23
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: (In millions) June 30, 2015 December 31, 2014 Trade accounts payable $ 77 $ 61 Client deposits 302 261 Settlement obligations 191 176 Accrued compensation and benefits 133 192 Other accrued expenses 195 215 Total $ 898 $ 905 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
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 Hedges Foreign Currency Translation Other Total Balance at December 31, 2014 $ (41 ) $ (20 ) $ (2 ) $ (63 ) Other comprehensive loss before reclassifications — (10 ) — (10 ) Amounts reclassified from accumulated other comprehensive loss 7 — — 7 Net current-period other comprehensive (loss) income 7 (10 ) — (3 ) Balance at June 30, 2015 $ (34 ) $ (30 ) $ (2 ) $ (66 ) (In millions) Cash Hedges Foreign Currency Translation Other Total Balance at December 31, 2013 $ (49 ) $ (9 ) $ (2 ) $ (60 ) Other comprehensive income before reclassifications 2 5 — 7 Amounts reclassified from accumulated other comprehensive loss 4 — — 4 Net current-period other comprehensive income 6 5 — 11 Balance at June 30, 2014 $ (43 ) $ (4 ) $ (2 ) $ (49 ) |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information was as follows: Six Months June 30, (In millions) 2015 2014 Interest paid $ 75 $ 72 Income taxes paid from continuing operations 150 137 Treasury stock purchases settled after the balance sheet date 15 — |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | (In millions) Payments Financial Corporate and Other Total Three Months Ended June 30, 2015 Processing and services revenue $ 540 $ 570 $ (1 ) $ 1,109 Product revenue 161 38 (10 ) 189 Total revenue $ 701 $ 608 $ (11 ) $ 1,298 Operating income $ 208 $ 209 $ (91 ) $ 326 Three Months Ended June 30, 2014 Processing and services revenue $ 501 $ 551 $ (1 ) $ 1,051 Product revenue 168 44 (10 ) 202 Total revenue $ 669 $ 595 $ (11 ) $ 1,253 Operating income $ 185 $ 203 $ (81 ) $ 307 Six Months Ended June 30, 2015 Processing and services revenue $ 1,056 $ 1,122 $ (2 ) $ 2,176 Product revenue 341 79 (23 ) 397 Total revenue $ 1,397 $ 1,201 $ (25 ) $ 2,573 Operating income $ 399 $ 413 $ (172 ) $ 640 Six Months Ended June 30, 2014 Processing and services revenue $ 992 $ 1,090 $ (4 ) $ 2,078 Product revenue 350 80 (21 ) 409 Total revenue $ 1,342 $ 1,170 $ (25 ) $ 2,487 Operating income $ 365 $ 388 $ (175 ) $ 578 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Billions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Fair value of total debt | $ 4.3 | $ 3.9 |
Investment in Unconsolidated 28
Investment in Unconsolidated Affiliate - Additional Information (Detail) - StoneRiver Group, L.P. [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Percentage of interest owned in affiliate | 49.00% | ||
Investments in affiliate | $ 22 | $ 21 | |
Cash dividends on capital transactions from affiliate | $ 45 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 18 | $ 12 | $ 36 | $ 27 |
Share-based awards, stock options, granted | 1.1 | 1.3 | ||
Share-based awards, stock options, weighted-average estimated fair values | $ 25.43 | $ 18.80 | ||
Share-based awards, stock options, exercised | 1.7 | 0.8 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based awards, restricted stock units, granted | 0.3 | 0.5 | ||
Share-based awards, restricted stock units, weighted-average estimated fair values | $ 79.06 | $ 57.08 |
Shares Used in Computing Net 30
Shares Used in Computing Net Income Per Share - Schedule of Weighted-Average Number of Shares (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding used for the calculation of net income per share - basic | 236.5 | 249.3 | 237.6 | 251.9 |
Common stock equivalents | 3.9 | 4.1 | 4.1 | 4.1 |
Weighted-average common shares outstanding used for the calculation of net income per share - diluted | 240.4 | 253.4 | 241.7 | 256 |
Shares Used in Computing Net 31
Shares Used in Computing Net Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Stock options excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive | 1.1 | 1.4 | 0.8 | 1.1 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets by Class (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,584 | $ 3,576 |
Accumulated Amortization | 1,644 | 1,573 |
Net Book Value | 1,940 | 2,003 |
Customer Related Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,155 | 2,155 |
Accumulated Amortization | 860 | 797 |
Net Book Value | 1,295 | 1,358 |
Acquired Software and Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 493 | 493 |
Accumulated Amortization | 388 | 356 |
Net Book Value | 105 | 137 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 120 | 120 |
Accumulated Amortization | 50 | 46 |
Net Book Value | 70 | 74 |
Capitalized Software Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 557 | 574 |
Accumulated Amortization | 199 | 240 |
Net Book Value | 358 | 334 |
Purchased Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 259 | 234 |
Accumulated Amortization | 147 | 134 |
Net Book Value | $ 112 | $ 100 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) $ in Millions | Jun. 30, 2015USD ($) |
Acquired Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2,015 | $ 190 |
2,016 | 150 |
2,017 | 140 |
2,018 | 140 |
2,019 | 130 |
Capitalized and Purchased Software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2,015 | $ 115 |
Accounts Payable and Accrued 34
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 77 | $ 61 |
Client deposits | 302 | 261 |
Settlement obligations | 191 | 176 |
Accrued compensation and benefits | 133 | 192 |
Other accrued expenses | 195 | 215 |
Total | $ 898 | $ 905 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Apr. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||||
Senior notes | $ 1,750,000,000 | |||||
Loss on early debt extinguishment | $ (85,000,000) | $ (85,000,000) | ||||
2.7% Senior Notes Due June 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 850,000,000 | |||||
Debt interest rate | 2.70% | |||||
Debt maturity date | 2020-06 | |||||
Senior notes, interest rate increase in the event the Company's credit rating is downgraded below investment grade | 2.00% | |||||
2.7% Senior Notes Due June 2020 [Member] | First Installment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, interest payment date | --06-01 | |||||
2.7% Senior Notes Due June 2020 [Member] | Second Installment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, interest payment date | --12-01 | |||||
3.85% Senior Notes Due June 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 900,000,000 | |||||
Debt interest rate | 3.85% | |||||
Debt maturity date | 2025-06 | |||||
Senior notes, interest rate increase in the event the Company's credit rating is downgraded below investment grade | 2.00% | |||||
3.85% Senior Notes Due June 2025 [Member] | First Installment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, interest payment date | --06-01 | |||||
3.85% Senior Notes Due June 2025 [Member] | Second Installment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, interest payment date | --12-01 | |||||
3.125% Senior Notes Due June 2016 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 3.125% | 3.125% | ||||
Face value of the debt repaid | $ 600,000,000 | |||||
6.8% Senior Notes Due November 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 6.80% | 6.80% | ||||
Face value of the debt repaid | $ 500,000,000 | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of debt | 180,000,000 | |||||
3.125% Senior Notes Due October 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||
Debt interest rate | 3.125% | 3.125% | 3.125% | |||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility with a syndicate of banks | $ 2,000,000,000 | $ 2,000,000,000 | ||||
Commitment fees | 0 | |||||
Compensating balance requirements | $ 0 | $ 0 | ||||
Revolving Credit Facility [Member] | After Amendment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, expiration date | Apr. 30, 2020 | |||||
Revolving Credit Facility [Member] | Before Amendment [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, expiration date | Oct. 25, 2018 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at Beginning of the period | $ (63) | $ (60) | ||
Other comprehensive income (loss) before reclassifications | (10) | 7 | ||
Amounts reclassified from accumulated other comprehensive loss | 7 | 4 | ||
Total other comprehensive income (loss) | $ 5 | $ 5 | (3) | 11 |
Balance at End of the period | (66) | (49) | (66) | (49) |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at Beginning of the period | (41) | (49) | ||
Other comprehensive income (loss) before reclassifications | 2 | |||
Amounts reclassified from accumulated other comprehensive loss | 7 | 4 | ||
Total other comprehensive income (loss) | 7 | 6 | ||
Balance at End of the period | (34) | (43) | (34) | (43) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at Beginning of the period | (20) | (9) | ||
Other comprehensive income (loss) before reclassifications | (10) | 5 | ||
Total other comprehensive income (loss) | (10) | 5 | ||
Balance at End of the period | (30) | (4) | (30) | (4) |
Other [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at Beginning of the period | (2) | (2) | ||
Balance at End of the period | $ (2) | $ (2) | $ (2) | $ (2) |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Estimated interest expense related to settled interest rate hedge contracts during the next twelve months | $ 12 | |
Foreign Currency Forward Exchange Contracts [Member] | India, Rupees | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Notional amount of derivative | $ 57 | $ 73 |
Total fair value of cash flow hedge derivatives | $ 1 |
Cash Flow Information - Schedul
Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 75 | $ 72 |
Income taxes paid from continuing operations | 150 | $ 137 |
Treasury stock purchases settled after the balance sheet date | $ 15 |
Business Segment Information -
Business Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Processing and services revenue | $ 1,109 | $ 1,051 | $ 2,176 | $ 2,078 |
Product revenue | 189 | 202 | 397 | 409 |
Total revenue | 1,298 | 1,253 | 2,573 | 2,487 |
Operating income | 326 | 307 | 640 | 578 |
Payments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Processing and services revenue | 540 | 501 | 1,056 | 992 |
Product revenue | 161 | 168 | 341 | 350 |
Total revenue | 701 | 669 | 1,397 | 1,342 |
Operating income | 208 | 185 | 399 | 365 |
Financial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Processing and services revenue | 570 | 551 | 1,122 | 1,090 |
Product revenue | 38 | 44 | 79 | 80 |
Total revenue | 608 | 595 | 1,201 | 1,170 |
Operating income | 209 | 203 | 413 | 388 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Processing and services revenue | (1) | (1) | (2) | (4) |
Product revenue | (10) | (10) | (23) | (21) |
Total revenue | (11) | (11) | (25) | (25) |
Operating income | $ (91) | $ (81) | $ (172) | $ (175) |
Business Segment Information 40
Business Segment Information - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 5,204 | $ 5,209 |
Payments [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 3,400 | 3,400 |
Financial [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 1,800 | $ 1,800 |