| Item 2.02. | Results of Operations and Financial Condition. |
Segment Realignment
Effective for the quarter ending March 31, 2024, Fiserv, Inc. (the “Company”) is realigning its reportable segments to correspond with changes in its business designed to further enhance operational performance in the delivery of its integrated portfolio of products and solutions to its financial institution clients (the “Segment Realignment”). As further described below under Item 8.01 of this Current Report on Form 8-K, the Company’s new reportable segments are Merchant Solutions and Financial Solutions.
Supplemental Financial Information
The Company is providing updated information in the schedules included in Exhibit 99.1 to recalculate certain non-GAAP measures of its historical financial performance under the new segment reporting structure for each of the quarters in 2023 and 2022 as well as the full year 2023 and 2022. The schedules have been prepared by making certain adjustments to the underlying composition of the Company’s historical financial information. The adjustments are discussed in the notes to the schedules.
The Company’s new reportable segments are:
Merchant Solutions (“Merchant”)
The businesses in the Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; and pay-by-bank solutions. The businesses within the Merchant segment consist of the following:
| | • | | Small Business – provides products and services to small businesses and independent software vendors, including Clover®, the Company’s point-of-sale integrated commerce operating system for small business clients |
| | • | | Enterprise – provides products and services to large businesses, including CaratSM, the Company’s integrated commerce operating system for enterprise clients |
| | • | | Processing – provides products and services to financial institutions, joint ventures, and other third party resellers which have direct relationships with merchants |
Financial Solutions (“Financial”)
The businesses in the Financial segment provide products and services to financial institution, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The businesses within the Financial segment consist of the following:
| | • | | Banking – provides customer loan and deposit account processing; digital banking; financial and risk management; professional services and consulting; and check processing |
| | • | | Digital Payments – provides debit card processing services; debit network services; security and fraud protection products; bill payment; person-to-person payments; and account-to-account transfers |
| | • | | Issuing – provides credit card processing services; prepaid card processing services; card production services; print services; government payment processing; and student loan processing |
Corporate and Other
Corporate and Other supports the Company’s reportable segments, and consists of amortization of acquisition-related intangible assets, unallocated corporate expenses, and other activities that are not considered when management evaluates segment performance, such as gains or losses on sales of businesses, certain assets or investments; costs associated with acquisition and divestiture activity; certain services revenue associated with various dispositions; and postage reimbursements.
The Company will begin reporting its financial results based on the Segment Realignment with the filing of its Quarterly Report on Form 10-Q for the quarter ending March 31, 2024, with prior periods adjusted accordingly.
| Item 9.01. | Financial Statements and Exhibits. |
