Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 19, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Fidelity National Information Services, Inc. | ||
Entity Central Index Key | 1,136,893 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 34,947,896,958 | ||
Entity Common Stock, Shares Outstanding | 322,920,584 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 703 | $ 665 |
Settlement deposits | 700 | 677 |
Trade receivables, net | 1,472 | 1,624 |
Contract assets | 123 | 108 |
Settlement receivables | 281 | 291 |
Other receivables | 166 | 70 |
Prepaid expenses and other current assets | 288 | 253 |
Total current assets | 3,733 | 3,688 |
Property and equipment, net | 587 | 610 |
Goodwill | 13,545 | 13,730 |
Intangible assets, net | 3,132 | 3,885 |
Computer software, net | 1,795 | 1,728 |
Deferred contract costs, net | 475 | 354 |
Other noncurrent assets | 503 | 531 |
Total assets | 23,770 | 24,526 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,099 | 1,241 |
Settlement payables | 972 | 949 |
Deferred revenue | 739 | 776 |
Short-term borrowings | 267 | 0 |
Current portion of long-term debt | 48 | 1,045 |
Total current liabilities | 3,125 | 4,011 |
Long-term debt, excluding current portion | 8,670 | 7,718 |
Deferred income taxes | 1,360 | 1,468 |
Deferred revenue | 67 | 106 |
Other long-term liabilities | 326 | 403 |
Total liabilities | 13,548 | 13,706 |
FIS stockholders’ equity: | ||
Preferred stock, $0.01 par value, 200 shares authorized, none issued and outstanding as of December 31, 2018 and 2017 | 0 | 0 |
Common stock, $0.01 par value, 600 shares authorized, 433 and 432 shares issued as of December 31, 2018 and 2017, respectively | 4 | 4 |
Additional paid in capital | 10,800 | 10,534 |
Retained earnings | 4,528 | 4,109 |
Accumulated other comprehensive earnings (loss) | (430) | (332) |
Treasury stock, $0.01 par value, 106 and 99 common shares as of December 31, 2018 and 2017, respectively, at cost | (4,687) | (3,604) |
Total FIS stockholders’ equity | 10,215 | 10,711 |
Noncontrolling interest | 7 | 109 |
Total equity | 10,222 | 10,820 |
Total liabilities and equity | $ 23,770 | $ 24,526 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 433,000,000 | 432,000,000 |
Treasury stock, shares (in shares) | 106,000,000 | 99,000,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Statement [Abstract] | ||||
Revenue (for related party activity, see Note 15) | $ 8,423,000,000 | $ 8,668,000,000 | $ 8,831,000,000 | |
Cost of revenue (for related party activity, see Note 15) | 5,569,000,000 | 5,794,000,000 | 5,895,000,000 | |
Gross profit | 2,854,000,000 | 2,874,000,000 | 2,936,000,000 | |
Selling, general and administrative expenses (for related party activity, see Note 15) | 1,301,000,000 | 1,442,000,000 | 1,707,000,000 | |
Asset impairments | 95,000,000 | 0 | 0 | |
Operating income | 1,458,000,000 | 1,432,000,000 | 1,229,000,000 | |
Other income (expense): | ||||
Interest income | 17,000,000 | 22,000,000 | 20,000,000 | |
Interest expense | (314,000,000) | (359,000,000) | (403,000,000) | |
Other income (expense), net | (57,000,000) | (119,000,000) | (9,000,000) | |
Total other income (expense), net | (354,000,000) | (456,000,000) | (392,000,000) | |
Earnings from continuing operations before income taxes and equity method investment earnings (loss) | 1,104,000,000 | 976,000,000 | 837,000,000 | |
Provision (benefit) for income taxes | 208,000,000 | (321,000,000) | 291,000,000 | |
Equity method investment earnings (loss) | (15,000,000) | (3,000,000) | 0 | |
Earnings from continuing operations, net of tax | 881,000,000 | 1,294,000,000 | 546,000,000 | |
Earnings (loss) from discontinued operations, net of tax | 0 | 0 | 1,000,000 | |
Net earnings | 881,000,000 | 1,294,000,000 | 547,000,000 | |
Net (earnings) loss attributable to noncontrolling interest | (35,000,000) | (33,000,000) | (22,000,000) | |
Net earnings attributable to FIS common stockholders | $ 846,000,000 | $ 1,261,000,000 | $ 525,000,000 | |
Net earnings per share — basic from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 2.58 | $ 3.82 | $ 1.61 | |
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders (in dollars per share) | 0 | 0 | 0 | |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | [1] | $ 2.58 | $ 3.82 | $ 1.61 |
Weighted average shares outstanding — basic (in shares) | 328 | 330 | 326 | |
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 2.55 | $ 3.75 | $ 1.59 | |
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders (in dollars per share) | 0 | 0 | 0 | |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | [1] | $ 2.55 | $ 3.75 | $ 1.59 |
Weighted average shares outstanding — diluted (in shares) | 332 | 336 | 330 | |
Amounts attributable to FIS common stockholders: | ||||
Earnings from continuing operations, net of tax | $ 846,000,000 | $ 1,261,000,000 | $ 524,000,000 | |
Earnings (loss) from discontinued operations, net of tax | 0 | 0 | 1,000,000 | |
Net earnings attributable to FIS common stockholders | $ 846,000,000 | $ 1,261,000,000 | $ 525,000,000 | |
[1] | Amounts may not sum due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 881 | $ 1,294 | $ 547 |
Other comprehensive earnings, before tax: | |||
Unrealized gain (loss) on investments and derivatives | 0 | (28) | (4) |
Reclassification adjustment for gains (losses) included in net earnings | 0 | 0 | 9 |
Unrealized gain (loss) on investments and derivatives, net | 0 | (28) | 5 |
Foreign currency translation adjustments | (120) | 23 | (7) |
Minimum pension liability adjustments | 5 | (8) | (1) |
Other comprehensive earnings (loss), before tax | (115) | (13) | (3) |
Provision for income tax expense (benefit) related to items of other comprehensive earnings | 1 | (11) | 31 |
Other comprehensive earnings (loss), net of tax | (116) | (2) | (34) |
Comprehensive earnings | 765 | 1,292 | 513 |
Net (earnings) loss attributable to noncontrolling interest | (35) | (33) | (22) |
Other comprehensive (earnings) losses attributable to noncontrolling interest | 18 | 1 | (19) |
Comprehensive earnings attributable to FIS common stockholders | $ 748 | $ 1,260 | $ 472 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings | Treasury shares | Noncontrolling interest |
Beginning balance at Dec. 31, 2015 | $ 9,384 | $ 4 | $ 10,210 | $ 3,050 | $ (279) | $ (3,687) | $ 86 |
Beginning balance (in shares) at Dec. 31, 2015 | 430 | 106 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of restricted stock | 0 | ||||||
Issuance of restricted stock (in shares) | 1 | ||||||
Exercise of stock options | 109 | 21 | $ 88 | ||||
Exercise of stock options (in shares) | 3 | ||||||
Treasury shares held for taxes due upon exercise of stock options | (40) | (24) | $ (16) | ||||
Excess income tax benefit from exercise of stock options | 32 | 32 | |||||
Stock-based compensation | 137 | 137 | |||||
Cash dividends declared and other distributions | (365) | (342) | (23) | ||||
Other | 8 | 4 | 4 | ||||
Net earnings | 547 | 525 | 22 | ||||
Other comprehensive earnings, net of tax | (33) | (52) | 19 | ||||
Other comprehensive earnings, net of tax | (34) | ||||||
Ending balance at Dec. 31, 2016 | 9,779 | $ 4 | 10,380 | 3,233 | (331) | $ (3,611) | 104 |
Ending balance (in shares) at Dec. 31, 2016 | 431 | 103 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of restricted stock | 0 | ||||||
Issuance of restricted stock (in shares) | 1 | ||||||
Exercise of stock options | 210 | 73 | $ 137 | ||||
Exercise of stock options (in shares) | 5 | ||||||
Treasury shares held for taxes due upon exercise of stock options | (53) | (28) | $ (25) | ||||
Stock-based compensation | 109 | 109 | |||||
Cash dividends declared and other distributions | (412) | (385) | (27) | ||||
Purchases of treasury stock | (105) | $ (105) | |||||
Purchases of treasury stock (in shares) | (1) | ||||||
Net earnings | 1,294 | 1,261 | 33 | ||||
Other comprehensive earnings, net of tax | (2) | (1) | (1) | ||||
Ending balance at Dec. 31, 2017 | 10,820 | $ 4 | 10,534 | 4,109 | (332) | $ (3,604) | 109 |
Ending balance (in shares) at Dec. 31, 2017 | 432 | 99 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of restricted stock | 0 | ||||||
Issuance of restricted stock (in shares) | 1 | ||||||
Exercise of stock options | 290 | 135 | $ 155 | ||||
Exercise of stock options (in shares) | 4 | ||||||
Treasury shares held for taxes due upon exercise of stock options | (32) | (10) | $ (22) | ||||
Stock-based compensation | 84 | 84 | |||||
Cash dividends declared and other distributions | (451) | (422) | (29) | ||||
Purchases of treasury stock | (1,216) | $ (1,216) | |||||
Purchases of treasury stock (in shares) | (11) | ||||||
Brazilian Venture divestiture | (33) | 57 | (90) | ||||
Other | (5) | (5) | |||||
Net earnings | 881 | 846 | 35 | ||||
Other comprehensive earnings, net of tax | (116) | (98) | (18) | ||||
Ending balance at Dec. 31, 2018 | $ 10,222 | $ 4 | $ 10,800 | $ 4,528 | $ (430) | $ (4,687) | $ 7 |
Ending balance (in shares) at Dec. 31, 2018 | 433 | 106 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 1.28 | $ 1.16 | $ 1.04 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net earnings | $ 881,000,000 | $ 1,294,000,000 | $ 547,000,000 |
Adjustment to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 1,420,000,000 | 1,366,000,000 | 1,153,000,000 |
Amortization of debt issue costs | 17,000,000 | 19,000,000 | 19,000,000 |
Asset impairments | 95,000,000 | 0 | 0 |
Loss (gain) on sale of businesses and investments | 50,000,000 | (62,000,000) | 0 |
Loss on extinguishment of debt | 1,000,000 | 196,000,000 | 0 |
Stock-based compensation | 84,000,000 | 107,000,000 | 137,000,000 |
Deferred income taxes | (116,000,000) | (985,000,000) | (190,000,000) |
Excess income tax benefit from exercise of stock options | 0 | 0 | (32,000,000) |
Other operating activities, net | 0 | 0 | (2,000,000) |
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | |||
Trade and other receivables | 78,000,000 | (232,000,000) | 42,000,000 |
Contract assets | (20,000,000) | 62,000,000 | 19,000,000 |
Settlement activity | 9,000,000 | (51,000,000) | 15,000,000 |
Prepaid expenses and other assets | 4,000,000 | (2,000,000) | (8,000,000) |
Deferred contract costs | (248,000,000) | (153,000,000) | (121,000,000) |
Deferred revenue | (100,000,000) | 67,000,000 | 251,000,000 |
Accounts payable, accrued liabilities, and other liabilities | (162,000,000) | 115,000,000 | 95,000,000 |
Net cash provided by operating activities | 1,993,000,000 | 1,741,000,000 | 1,925,000,000 |
Cash flows from investing activities: | |||
Additions to property and equipment | (127,000,000) | (145,000,000) | (145,000,000) |
Additions to computer software | (495,000,000) | (468,000,000) | (471,000,000) |
Net proceeds from sale of businesses and investments | (16,000,000) | ||
Net proceeds from sale of businesses and investments | 1,307,000,000 | 0 | |
Other investing activities, net | (30,000,000) | (4,000,000) | (3,000,000) |
Net cash provided by (used in) investing activities | (668,000,000) | 690,000,000 | (619,000,000) |
Cash flows from financing activities: | |||
Borrowings | 26,371,000,000 | 9,615,000,000 | 7,745,000,000 |
Repayment of borrowings and capital lease obligations | (26,148,000,000) | (11,689,000,000) | (8,749,000,000) |
Debt issuance costs | (30,000,000) | (13,000,000) | (25,000,000) |
Excess income tax benefit from exercise of stock options | 0 | 32,000,000 | |
Proceeds from exercise of stock options | 288,000,000 | 208,000,000 | 112,000,000 |
Treasury stock activity | (1,255,000,000) | (153,000,000) | (40,000,000) |
Dividends paid | (421,000,000) | (385,000,000) | (341,000,000) |
Distributions to Brazilian Venture partner | (26,000,000) | (23,000,000) | (20,000,000) |
Other financing activities, net | (15,000,000) | (40,000,000) | (23,000,000) |
Net cash provided by (used in) financing activities | (1,236,000,000) | (2,480,000,000) | (1,309,000,000) |
Effect of foreign currency exchange rate changes on cash | (51,000,000) | 31,000,000 | 4,000,000 |
Net increase (decrease) in cash and cash equivalents | 38,000,000 | (18,000,000) | 1,000,000 |
Cash and cash equivalents, beginning of year | 665,000,000 | 683,000,000 | 682,000,000 |
Cash and cash equivalents, end of year | 703,000,000 | 665,000,000 | 683,000,000 |
Supplemental cash flow information: | |||
Cash paid for interest | 298,000,000 | 354,000,000 | 351,000,000 |
Cash paid for income taxes | $ 503,000,000 | $ 545,000,000 | $ 341,000,000 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation FIS is a global leader in financial services technology with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting and outsourcing solutions. We report the results of our operations in three reporting segments: Integrated Financial Solutions ("IFS"), Global Financial Solutions ("GFS") and Corporate and Other (see Note 19). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The following describes the significant accounting policies of the Company used in preparing the accompanying Consolidated Financial Statements. (a) Principles of Consolidation The Consolidated Financial Statements include the accounts of FIS, its wholly-owned subsidiaries and subsidiaries that are majority-owned. All significant intercompany profits, transactions and balances have been eliminated in consolidation. (b) Cash and Cash Equivalents The Company considers all cash on hand, money market funds and other highly liquid investments with original maturities of three months or less to be cash and cash equivalents. As part of the Company’s payment processing business, the Company provides cash settlement services to financial institutions and state and local governments. These services involve the movement of funds between the various parties associated with automated teller machines ("ATM"), point-of-sale or electronic benefit transactions ("EBT"), and this activity results in a balance due to the Company at the end of each business day that it recoups over the next few business days. The in-transit balances due to the Company are included in cash and cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair value. As of December 31, 2018 , we had cash and cash equivalents of $703 million of which approximately $340 million is held by our foreign entities. (c) Fair Value Measurements Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations, requires an acquirer to recognize, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree, and to measure these items generally at their acquisition date fair values. Goodwill is recorded as the residual amount by which the purchase price exceeds the fair value of the net assets acquired. Fair values are determined using the framework outlined below under Fair Value Hierarchy and the methodologies addressed in the individual subheadings. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we are required to report provisional amounts in the financial statements for the items for which the accounting is incomplete. Adjustments to provisional amounts initially recorded that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we are also required to recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the combination date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. Fair Value of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for receivables, accounts payable, and short-term borrowings approximate their fair values because of their immediate or short-term maturities. The fair value of the Company’s long-term debt is estimated to be approximately $140 million lower and $156 million higher than the carrying value as of December 31, 2018 and 2017 , respectively. These estimates are based on values of trades of our debt in close proximity to year end, which are considered Level 2-type measurements, as discussed below. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. Therefore, the values presented are not necessarily indicative of amounts the Company could realize or settle currently. The Company holds, or has held, certain derivative instruments, specifically interest rate swaps and foreign exchange forward contracts. Derivative instruments are valued using Level 2-type measurements. Fair Value Hierarchy The authoritative accounting literature defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy based on the quality of inputs used to measure fair value. The fair value hierarchy includes three levels that are based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). If the inputs used to measure the fair value fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the asset or liability. The three levels of the fair value hierarchy are described below: Level 1. Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2. Inputs to the valuation methodology include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Fair Value Measurements Generally accepted accounting principles require that, subsequent to their initial recognition, certain assets be reviewed for impairment on a nonrecurring basis by comparison to their fair value. As more fully discussed in their respective subheadings below, this includes goodwill, long-lived assets, intangible assets, computer software and investments. During the third quarter of 2018, as a result of entering into an agreement to unwind the joint venture ("Brazilian Venture") that the Company operated with Banco Bradesco, S.A. ("Banco Bradesco"), the Company recorded pre-tax asset impairments totaling $95 million , including $42 million for the Brazilian Venture contract intangible asset, $25 million for goodwill, and $28 million for assets held for sale during the third quarter (see Notes 15 and 16). The impairment charges are included in the Corporate and Other segment results. There were no significant fair value measurement impairments for 2017 or 2016 . Contingent consideration liabilities or receivables recorded in connection with business acquisitions must also be adjusted for changes in fair value until settled. (d) Derivative Financial Instruments The Company accounts for derivative financial instruments in accordance with FASB ASC Topic 815, Derivatives and Hedging. During 2018, the Company used interest rate swaps to engage in hedging activities relating to its investment in foreign denominated operations and to changes in fair value of its foreign currency denominated debt. The Company designated these interest rate swaps as net investment hedges and a fair value hedge, respectively. During 2017 and 2016 , the Company engaged in hedging activities relating to its variable-rate debt through the use of interest rate swaps. The Company designated these interest rate swaps as cash flow hedges. The estimated fair values of the derivative instruments are determined using Level 2-type measurements. They are recorded as an asset or liability of the Company and are included in the accompanying Consolidated Balance Sheets in prepaid expenses and other current assets, other non-current assets, accounts payable and accrued liabilities, or other long-term liabilities, as appropriate, and as a component of accumulated other comprehensive earnings, net of deferred taxes, for all derivative instruments except the fair value hedge, which is recorded as an adjustment to long-term debt. A portion of the amount included in accumulated other comprehensive earnings for the cash flow hedges is recorded in interest expense as a yield adjustment as interest payments are made on the Company’s Revolving Credit Facility (see Note 10). The Company also utilizes non-derivative net investment hedges in order to reduce the volatility of the net investment value of its foreign currency denominated operations. The change in fair value of the net investment hedges due to remeasurement of the effective portion, net of tax, is recorded in other comprehensive income (loss). The ineffective portion of these hedging instruments impacts net income when the ineffectiveness occurs. We also have used currency forward contracts to manage our exposure to fluctuations in costs caused by variations in Indian Rupee ("INR") exchange rates, however, we terminated those contracts in 2017. These INR forward contracts were designated as cash flow hedges. The fair value of these currency forward contracts was determined using currency exchange market rates, obtained from reliable, independent, third party banks, at the balance sheet date. The fair value of forward contracts was subject to changes in currency exchange rates. The Company had no ineffectiveness related to its use of currency forward contracts in connection with INR cash flow hedges. In September 2015, the Company entered into treasury lock hedges with a total notional amount of $1.0 billion , reducing the risk of changes in the benchmark index component of the 10-year treasury yield. The Company designated these derivatives as cash flow hedges. On October 13, 2015, in conjunction with the pricing of the $4.5 billion senior notes, the Company terminated these treasury lock contracts for a cash settlement payment of $16 million , which was recorded as a component of Other Comprehensive Earnings and will be reclassified as an adjustment to interest expense over the 10 years during which the related interest payments that were hedged will be recognized in income. (e) Trade Receivables A summary of trade receivables, net, as of December 31, 2018 and 2017 is as follows (in millions): 2018 2017 Trade receivables $ 1,489 $ 1,687 Allowance for doubtful accounts (17 ) (63 ) Total trade receivables, net $ 1,472 $ 1,624 The company records allowance for doubtful accounts when it is probable that a trade receivable balance will not be collected. The Company writes-off a trade receivable balance when the likelihood of collection is considered remote. A summary roll forward of the allowance for doubtful accounts for 2018 , 2017 and 2016 is as follows (in millions): Allowance for doubtful accounts as of December 31, 2015 $ (16 ) Bad debt expense (29 ) Write-offs, net of recoveries 4 Allowance for doubtful accounts as of December 31, 2016 (41 ) Bad debt expense (26 ) Write-offs, net of recoveries 4 Allowance for doubtful accounts as of December 31, 2017 (63 ) Bad debt expense (13 ) Write-offs, net of recoveries 59 Allowance for doubtful accounts as of December 31, 2018 $ (17 ) (f) Settlement Deposits, Receivables and Payables We manage certain integrated electronic payment services and programs and wealth management processes for our clients that require us to hold and manage client cash balances used to fund their daily settlement activity. Settlement deposits represent funds we hold that were drawn from our clients to facilitate settlement activities. Settlement receivables represent amounts funded by us. Settlement payables consist of settlement deposits from clients, settlement payables to third parties and outstanding checks related to our settlement activities for which the right of offset does not exist or we do not intend to exercise our right of offset. Our accounting policy for such outstanding checks is to include them in settlement payables on the Consolidated Balance Sheets and operating cash flows on the Consolidated Statements of Cash Flows. The payment solution services that give rise to these settlement balances are separate and distinct from those settlement activities referred to under (b) Cash and Cash Equivalents , where the services we provide primarily facilitate the movement of funds. (g) Goodwill Goodwill represents the excess of cost over the fair value of identifiable assets acquired and liabilities assumed in business combinations. FASB ASC Topic 350, Intangibles - Goodwill and Other, requires that goodwill and other intangible assets with indefinite useful lives not be amortized, but rather be tested for impairment annually, or more frequently if circumstances indicate potential impairment. The guidance allows an entity first to assess qualitatively whether it is more likely than not that a reporting unit's carrying amount exceeds its fair value, referred to as "step zero." If an entity concludes that it is more likely than not that a reporting unit's fair value is less than its carrying amount (that is, a likelihood of more than 50 percent), the "step one" quantitative assessment must be performed for that reporting unit. FASB ASC Topic 350 provides examples of events and circumstances that should be considered in performing the step zero qualitative assessment, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, events affecting a reporting unit or the entity as a whole and a sustained decrease in share price. In applying the quantitative analysis, we determine the fair value of our reporting units based on a weighted average of multiple valuation techniques, principally a combination of an income approach and a market approach, which are Level 3- and Level 2-type measurements. The income approach calculates a value based upon the present value of estimated future cash flows, while the market approach uses earnings multiples of similarly situated guideline public companies. If the fair value of a reporting unit exceeds the carrying value of the reporting unit’s net assets, goodwill is not impaired and further testing is not required. The Company assesses goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. For each of 2018 , 2017 , and 2016 , we began our assessment with the step zero qualitative assessment. In performing the step zero qualitative assessment for each year, examining those factors most likely to affect our valuations, we concluded that it remained more likely than not that the fair value of each of our reporting units continued to exceed their carrying amounts. Consequently, we did not perform a step one quantitative assessment specifically for the purpose of our annual impairment test in any year presented in these financial statements. (h) Long-Lived Assets Long-lived assets and intangible assets with finite useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset, which are Level 3-type measurements. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. (i) Intangible Assets The Company has intangible assets that consist primarily of customer relationships and trademarks that are recorded in connection with acquisitions at their fair value based on the results of valuation analyses. Customer relationships are amortized over their estimated useful lives using an accelerated method that takes into consideration expected customer attrition rates up to a 10 -year period. Trademarks determined to have indefinite lives are not amortized. Trademarks with finite lives are amortized over periods ranging up to 5 years . Intangible assets with finite lives (principally customer relationships and certain trademarks) are reviewed for impairment in accordance with FASB ASC Subtopic 360-10-35, Impairment or Disposal of Long-Lived Assets , while certain trademarks determined to have indefinite lives are reviewed for impairment at least annually in accordance with FASB ASC Topic 350. Similar to the guidance for goodwill, ASC Topic 350 allows an organization to first perform a qualitative assessment of whether it is more likely than not that an indefinite-lived intangible asset has been impaired. The Company assesses indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. For 2016, we engaged independent specialists to perform a valuation of our indefinite-lived intangible assets, using a form of income approach valuation known as the relief-from-royalty method, which is a Level 3-type measurement. There was substantial excess of fair value over carrying value for our indefinite-lived intangible assets in the 2016 independent valuations. Based upon this quantitative assessment performed, there was no impairment for 2016. For each of 2018 and 2017 , we performed a qualitative assessment examining those factors most likely to affect our valuations and concluded that it remained more likely than not that our indefinite-lived intangible assets were not impaired. Consequently, we did not perform a quantitative impairment assessment specifically for the purpose of our annual impairment tests for 2018 and 2017. (j) Computer Software Computer software includes software acquired in business combinations, purchased software and capitalized software development costs. Software acquired in business combinations is generally valued using the relief-from-royalty method, a Level 3-type measurement. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life and software acquired in business combinations is recorded at its fair value and amortized using straight-line or accelerated methods over its estimated useful life, ranging from three to 10 years. The capitalization of software development costs is governed by FASB ASC Subtopic 985-20 if the software is to be sold, leased or otherwise marketed, or by FASB ASC Subtopic 350-40 if the software is for internal use. After the technological feasibility of the software has been established (for software to be marketed) or at the beginning of application development (for internal-use software), software development costs, which primarily include salaries and related payroll costs and costs of independent contractors incurred during development, are capitalized. Research and development costs incurred prior to the establishment of technological feasibility (for software to be marketed) or prior to application development (for internal-use software), are expensed as incurred. Software development costs are amortized on a product-by-product basis commencing on the date of general release (for software to be marketed) or the date placed in service (for internal-use software). Software development costs for software to be marketed are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three to 10 years, or (2) the ratio of current revenues to total anticipated revenues over its useful life. (k) Deferred Contract Costs The Company incurs costs as a result of both the origination and fulfillment of our contracts with customers. Origination costs relate primarily to the payment of sales commissions that are directly related to sales transactions. Fulfillment costs include the cost of implementation services related to software as a service ("SaaS") and other cloud-based arrangements when the implementation service is not distinct from the ongoing service. When origination costs and fulfillment costs that will be used to satisfy future performance obligations are directly related to the execution of our contracts with customers, and the costs are recoverable under the contract, the costs are capitalized as a deferred contract cost. Impairment losses are recognized if the carrying amounts of the deferred contract costs are not recoverable. There were no significant impairment losses recognized on deferred contract costs for 2018, 2017, or 2016. Origination costs for contracts that contain a distinct software license recognized at a point in time are allocated between the license and all other performance obligations of the contract and amortized according to the pattern of performance for the respective obligations. Otherwise, origination costs are capitalized as a single asset for each contract and amortized using an appropriate single measure of performance considering all of the performance obligations in the contract. The Company amortizes origination costs over the expected benefit period to which the deferred contract cost relates. Origination costs related to initial contracts with a customer are amortized over the lesser of the useful life of the solution or the expected customer relationship period. Commissions paid on renewals are amortized over the renewal period. Capitalized fulfillment costs are amortized over the lesser of the useful life of the solution or the expected customer relationship period. (l) Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed primarily using the straight-line method based on the estimated useful lives of the related assets as follows: 30 years for buildings and three to seven years for furniture, fixtures and computer equipment. Leasehold improvements are amortized using the straight-line method over the lesser of the initial term of the applicable lease or the estimated useful lives of such assets. (m) Income Taxes The Company recognizes deferred income tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and expected benefits of using net operating loss and credit carryforwards. Deferred income 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. The impact on deferred income taxes of changes in tax rates and laws, if any, is reflected in the Consolidated Financial Statements in the period enacted. A valuation allowance is established for any portion of a deferred income tax asset for which management believes it is more likely than not that the Company will not be able to realize the benefits of all or a portion of that deferred income tax asset. (n) Revenue Recognition The Company generates revenue in a number of ways, including from the delivery of account- or transaction-based processing, SaaS, business process as a service ("BPaaS"), cloud offerings, software licensing, software-related services and professional services. The Company enters into arrangements with customers to provide services, software and software-related services such as maintenance, implementation and training either individually or as part of an integrated offering of multiple services. At contract inception, the Company assesses the solutions and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a solution or service (or bundle of solutions or services) that is distinct - i.e., if a solution or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. To identify its performance obligations, the Company considers all of the solutions or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company recognizes revenue when or as it satisfies a performance obligation by transferring control of a solution or service to a customer. Revenue is measured based on the consideration that the Company expects to receive in a contract with a customer. The Company’s contracts with its customers frequently contain variable consideration. Variable consideration exists when the amount which the Company expects to receive in a contract is based on the occurrence or non-occurrence of future events, such as processing services performed under usage-based pricing arrangements or professional services billed on a time and materials basis. Variable consideration is also present in certain transactions in the form of discounts, credits, price concessions, penalties, and similar items. If the amount of a discount or rebate in a contract is fixed and not contingent, that discount or rebate is not variable consideration. The Company estimates variable consideration in its contracts primarily using the expected value method. In some contracts, the Company applies the most likely amount method by considering the single most likely amount in a limited range of possible consideration amounts. The Company develops estimates of variable consideration on the basis of both historical information and current trends. Variable consideration included in the transaction price is constrained such that a significant revenue reversal is not probable. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Postage costs associated with print and mail services are accounted for as a fulfillment cost and are included in cost of revenue. Technology or service components from third parties are frequently embedded in or combined with our applications or service offerings. We are often responsible for billing the client in these arrangements and transmitting the applicable fees to the third party. The Company determines whether it is responsible for providing the actual solution or service as a principal, or for arranging for the solution or service to be provided by the third party as an agent. Judgment is applied to determine whether we are the principal or the agent by evaluating whether the Company has control of the solution or service prior to it being transferred to the customer. The principal versus agent assessment is performed at the performance obligation level. Indicators that the Company considers in determining if it has control include whether the Company is primarily responsible for fulfilling the promise to provide the specified solution or service to the customer, the Company has inventory risk and the Company has discretion in establishing the price the customer ultimately pays for the solution or service. Depending upon the level of our contractual responsibilities and obligations for delivering solutions to end customers, we have arrangements where we are the principal and recognize the gross amount billed to the customer and other arrangements where we are the agent and recognize the net amount retained. Once the Company has determined the transaction price, the total transaction price is allocated to each performance obligation in a manner depicting the amount of consideration to which the Company expects to be entitled in exchange for transferring the solution(s) or service(s) to the customer (the "allocation objective"). If the allocation objective is met at contractual prices, no allocations are made. Otherwise, the Company allocates the transaction price to each performance obligation identified in the contract on a relative standalone selling price basis, except when the criteria are met for allocating variable consideration or a discount to one or more, but not all, performance obligations in the contract. The Company allocates variable consideration to one or more, but not all performance obligations when the terms of the variable payment relate specifically to the Company’s efforts to satisfy the performance obligation (or transfer the distinct solution or service) and when such allocation is consistent with the allocation objective when considering all performance obligations in the contract. Determining whether the criteria for allocating variable consideration to one or more, but not all, performance obligations in the contract requires significant judgment and may affect the timing and amount of revenue recognized. The Company does not typically meet the requirements to allocate discounts to one or more, but not all, performance obligations in a contract. In order to determine the standalone selling price of its promised solutions or services, the Company conducts a regular analysis to determine whether various solutions or services have an observable standalone selling price. If the Company does not have an observable standalone selling price for a particular solution or service, then standalone selling price for that particular solution or service is estimated using all information that is reasonably available and maximizing observable inputs with approaches including historical pricing, cost plus a margin, adjusted market assessment, and residual approach. The following describes the nature of the Company’s primary types of revenue and the revenue recognition policies and significant payment terms as they pertain to the types of transactions the Company enters into with its customers. Processing Services Revenue Processing services are primarily comprised of data processing and application management, including our SaaS, BPaaS and cloud offerings. Revenue from processing services are typically volume- or activity-based depending on factors such as the number of accounts processed, transactions or trades processed, users, number of hours of services or computer resources used. The payment terms may include tiered pricing structures with the base tier representing a minimum monthly usage fee. Pricing within the tiers typically resets on a monthly basis, and minimum monthly volumes are generally met or exceeded. Contract lengths for processing services typically span multiple years. Payment is generally due in advance or in arrears on a monthly or quarterly basis and may include fixed or variable payment amounts depending on the specific payment terms and activity in the period. For processing services revenue, the nature of the Company’s promise to the customer is to stand ready to provide continuous access to the Company’s processing platforms and perform an unspecified quantity of outsourced and transaction-processing services for a specified term or terms. Accordingly, processing services are generally viewed as a stand-ready performance obligation comprised of a series of distinct daily services. The Company typically satisfies its processing services performance obligations over time as the services are provided. A time-elapsed output method is used to measure progress because the Company’s efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. The Company has evaluated its variable payment terms related to its processing services revenue accounted for as a series of distinct days of service and concluded that they generally meet the criteria for allocating variable consideration entirely to one or more, but not all, performance obligations in a contract. Accordingly, when the criteria are met, variable amounts based on the number and type of services performed during a period are allocated to and recognized on the day in which the Company performs the related services. Fixed fees for processing services are generally recognized ratably over the contract period. License and Software Related Revenue The Company’s software licenses general |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue In the following tables, revenue is disaggregated by primary geographical market, type of revenue, and recurring nature of revenue recognized. The tables also include a reconciliation of the disaggregated revenue with the Company’s reportable segments. For the year ended December 31, 2018 (in millions): Reportable Segments Corporate IFS GFS and Other Total Primary Geographical Markets: North America $ 4,222 $ 1,808 $ 253 $ 6,283 All others 179 1,910 51 2,140 Total $ 4,401 $ 3,718 $ 304 $ 8,423 Type of Revenue: Processing and services $ 3,582 $ 2,095 $ 276 $ 5,953 License and software related 375 1,001 1 1,377 Professional services 170 603 9 782 Hardware and other 274 19 18 311 Total $ 4,401 $ 3,718 $ 304 $ 8,423 Recurring Nature of Revenue Recognized: Recurring fees $ 3,890 $ 2,718 $ 278 $ 6,886 Non-recurring fees 511 1,000 26 1,537 Total $ 4,401 $ 3,718 $ 304 $ 8,423 For the year ended December 31, 2017 (in millions): Reportable Segments Corporate IFS GFS and Other Total Primary Geographical Markets: North America $ 4,091 $ 1,899 $ 306 $ 6,296 All others 169 2,151 52 2,372 Total $ 4,260 $ 4,050 $ 358 $ 8,668 Type of Revenue: Processing and services $ 3,433 $ 2,206 $ 320 $ 5,959 License and software related 402 957 14 1,373 Professional services 195 896 13 1,104 Hardware and other 230 (9 ) 11 232 Total $ 4,260 $ 4,050 $ 358 $ 8,668 Recurring Nature of Revenue Recognized: Recurring fees $ 3,704 $ 2,809 $ 330 $ 6,843 Non-recurring fees 556 1,241 28 1,825 Total $ 4,260 $ 4,050 $ 358 $ 8,668 For the year ended December 31, 2016 (in millions): Reportable Segments Corporate IFS GFS and Other Total Primary Geographical Markets: North America $ 4,022 $ 1,889 $ 370 $ 6,281 All others 156 2,294 100 2,550 Total $ 4,178 $ 4,183 $ 470 $ 8,831 Type of Revenue: Processing and services $ 3,288 $ 2,163 $ 246 $ 5,697 License and software related 387 941 150 1,478 Professional services 286 1,080 57 1,423 Hardware and other 217 (1 ) 17 233 Total $ 4,178 $ 4,183 $ 470 $ 8,831 Recurring Nature of Revenue Recognized: Recurring fees $ 3,584 $ 2,778 $ 377 $ 6,739 Non-recurring fees 594 1,405 93 2,092 Total $ 4,178 $ 4,183 $ 470 $ 8,831 Contract Balances The following table provides information about trade receivables, contract assets, and deferred revenues from contracts with customers (in millions). As of December 31, 2018 2017 2016 Trade receivables, net $ 1,472 $ 1,624 $ 1,550 Contract assets (current) 123 108 168 Contract assets (non-current), included in other noncurrent assets 91 118 135 Deferred revenue (current) 739 776 741 Deferred revenue (non-current) 67 106 58 The payment terms and conditions in our customer contracts may vary. In some cases, customers pay in advance of our delivery of solutions or services; in other cases, payment is due as services are performed or in arrears following the delivery of the solutions or services. Differences in timing between revenue recognition and invoicing result in accrued trade receivables, contract assets, or deferred revenue on our Consolidated Balance Sheets. Receivables are accrued when revenue is recognized prior to invoicing but the right to payment is unconditional (i.e., only the passage of time is required). This occurs most commonly when software term licenses recognized at a point in time are paid for periodically over the license term. Contract assets result when amounts allocated to distinct performance obligations are recognized when or as control of a solution or service is transferred to the customer but invoicing is contingent on performance of other performance obligations or on completion of contractual milestones. Contract assets are transferred to receivables when the rights become unconditional, typically upon invoicing of the related performance obligations in the contract or upon achieving the requisite project milestone. Deferred revenue results from customer payments in advance of our satisfaction of the associated performance obligation(s) and relates primarily to prepaid maintenance or other recurring services. Deferred revenue is relieved as revenue is recognized. Contract assets and deferred revenue are reported on a contract-by-contract basis at the end of each reporting period. Changes in the contract assets and deferred revenue balances for the years ended December 31, 2018 and 2017 were not materially impacted by any factors other than those described above, aside from the disposition of the Public Sector and Education ("PS&E") business, which reduced the December 31, 2017 contract asset balance by $2 million and the deferred revenue balance by $105 million . The Company recognized revenue of $740 million , $741 million and $718 million , during the years ended December 31, 2018 , 2017 and 2016 , respectively, that was included in the corresponding deferred revenue balance at the beginning of the period. During the years ended December 31, 2018 , 2017 and 2016 , respectively, amounts recognized from performance obligations satisfied (or partially satisfied) in prior periods were insignificant. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2018 , approximately $20.5 billion of revenue is estimated to be recognized in the future from the Company’s remaining unfulfilled performance obligations, which are primarily comprised of recurring account- and volume-based processing services. This excludes the amount of anticipated recurring renewals not yet contractually obligated. The Company expects to recognize approximately 35% of our remaining performance obligations over the next 12 months, approximately another 25% over the next 13 to 24 months, and the balance thereafter. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Land $ 31 $ 31 Buildings 235 228 Leasehold improvements 135 158 Computer equipment 1,047 1,073 Furniture, fixtures, and other equipment 197 167 1,645 1,657 Accumulated depreciation and amortization (1,058 ) (1,047 ) Total property and equipment, net $ 587 $ 610 During the years ended December 31, 2018 and 2017 , the Company entered into capital lease and other financing obligations of $91 million and $84 million , respectively, for certain computer hardware and software. The assets are included in property and equipment and computer software and the remaining capital lease and other financing obligations are classified as long-term debt on our Consolidated Balance Sheets. Periodic payments are included in repayment of borrowings on the Consolidated Statements of Cash Flows. Depreciation and amortization expense on property and equipment, including that recorded under capital leases, amounted to $184 million , $180 million and $185 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in goodwill during the years ended December 31, 2018 and 2017 are summarized as follows (in millions): IFS GFS Corporate & Other Total Balance, December 31, 2016 $ 7,676 $ 6,332 $ 170 $ 14,178 Goodwill distributed through sale of businesses (14 ) (473 ) — (487 ) Foreign currency adjustments — 39 — 39 Balance, December 31, 2017 7,662 5,898 170 13,730 Goodwill distributed through sale of businesses (14 ) (24 ) (43 ) (81 ) Brazilian Venture impairment — (25 ) — (25 ) Foreign currency adjustments — (79 ) — (79 ) Balance, December 31, 2018 $ 7,648 $ 5,770 $ 127 $ 13,545 During 2017, foreign currency adjustments includes an immaterial prior period adjustment related to the allocation of goodwill to the appropriate foreign currency at the time of multi-currency entity acquisitions, with the related offset to accumulated other comprehensive earnings (loss). Effective August 31, 2018, FIS sold substantially all the assets of the Certegy Check Services business unit in North America, resulting in a pre-tax loss of $54 million , including goodwill distributed through the sale of business of $43 million . |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets as of December 31, 2018 consist of the following (in millions): Cost Accumulated Amortization Net Customer relationships and other $ 6,011 $ (2,944 ) $ 3,067 Finite-lived trademarks 68 (46 ) 22 Indefinite-lived trademarks 43 — 43 Total intangible assets, net $ 6,122 $ (2,990 ) $ 3,132 Intangible assets as of December 31, 2017 consist of the following (in millions): Cost Accumulated Amortization Net Customer relationships and other $ 6,220 $ (2,427 ) $ 3,793 Finite-lived trademarks 101 (57 ) 44 Indefinite-lived trademarks 48 — 48 Total intangible assets, net $ 6,369 $ (2,484 ) $ 3,885 Amortization expense for intangible assets with finite lives, including the contract intangible in our Brazilian Venture, which was amortized as a reduction of revenue until impaired (see Note 16), was $659 million , $670 million and $518 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Estimated amortization of intangible assets for the next five years is as follows (in millions): 2019 $ 626 2020 458 2021 443 2022 426 2023 405 |
Computer Software
Computer Software | 12 Months Ended |
Dec. 31, 2018 | |
Research and Development [Abstract] | |
Computer Software | Computer Software Computer software as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Software from business acquisitions $ 1,116 $ 1,130 Capitalized software development costs 1,624 1,422 Purchased software 363 310 Computer software 3,103 2,862 Accumulated amortization (1,308 ) (1,134 ) Total computer software, net $ 1,795 $ 1,728 Amortization expense for computer software was $468 million , $436 million and $396 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Deferred Contract Costs
Deferred Contract Costs | 12 Months Ended |
Dec. 31, 2018 | |
Capitalized Contract Cost [Abstract] | |
Deferred Contract Costs | Deferred Contract Costs Origination and fulfillment costs from contracts with customers capitalized as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Contract costs on implementations in progress $ 93 $ 104 Incremental contract origination costs on completed implementations, net 219 127 Contract fulfillment costs on completed implementations, net 163 123 Total deferred contract costs, net $ 475 $ 354 For the years ended December 31, 2018 , 2017 and 2016 , amortization of deferred contract costs on completed amortizations was $123 million , $102 million and $71 million . |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Salaries and incentives $ 218 $ 265 Accrued benefits and payroll taxes 66 71 Trade accounts payable and other accrued liabilities 687 776 Accrued interest payable 71 70 Taxes other than income tax 57 59 Total accounts payable and accrued liabilities $ 1,099 $ 1,241 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Senior Notes due April 2018, interest payable semi-annually at 2.000% (1) $ — $ 250 Senior Notes due October 2018, interest payable semi-annually at 2.850% — 750 Senior Notes due October 2020, interest payable semi-annually at 3.625% ("2020 Notes") 1,150 1,150 Senior Euro Notes due January 2021, interest payable annually at 0.400% ("2021 Euro Notes") 572 599 Senior Notes due August 2021, interest payable semi-annually at 2.250% ("2021 Notes") 750 750 Senior GBP Notes due June 2022, interest payable annually at 1.700% ("2022 GBP Notes") 382 405 Senior Notes due October 2022, interest payable semi-annually at 4.500% ("2022 Notes") 300 300 Senior Notes due April 2023, interest payable semi-annually at 3.500% ("2023 Notes") 700 700 Senior Notes due June 2024, interest payable semi-annually at 3.875% ("2024 Notes") 400 400 Senior Euro Notes due July 2024, interest payable annually at 1.100% ("2024 Euro Notes") 572 599 Senior Notes due October 2025, interest payable semi-annually at 5.000% ("2025 Notes") 900 900 Senior Notes due August 2026, interest payable semi-annually at 3.000% ("2026 Notes") 1,250 1,250 Senior Notes due May 2028, interest payable semi-annually at 4.250% ("2028 Notes") 400 — Senior Notes due August 2046, interest payable semi-annually at 4.500% ("2046 Notes") 500 500 Senior Notes due May 2048, interest payable semi-annually at 4.750% ("2048 Notes") 600 — Revolving Credit Facility (2) 208 195 Other 34 15 8,718 8,763 Current portion of long-term debt (48 ) (1,045 ) Long-term debt, excluding current portion $ 8,670 $ 7,718 __________________________________________ (1) These Senior Notes were repaid on April 13, 2018 with borrowings on the Revolving Credit Facility. (2) Interest on the Revolving Credit Facility is generally payable at LIBOR plus an applicable margin of up to 1.625% plus an unused commitment fee of up to 0.225% , each based upon the Company's corporate credit ratings. As of December 31, 2018 , the weighted-average interest rate on the Revolving Credit Facility, excluding fees, was 3.65% . On December 21, 2018, FIS entered into an interest rate swap that effectively converted the 2024 Euro Notes from a fixed-rate to a floating rate debt obligation. This derivative instrument was designated as a fair value hedge of the debt obligation. The fair value of the interest rate swap was $1 million at December 31, 2018 , recorded as a decrease in the hedged debt balance. On September 21, 2018, FIS established a U.S. commercial paper program (the "Commercial Paper Program") for the issuance and sale of senior, unsecured commercial paper notes (the “Notes”), up to a maximum aggregate amount outstanding at any time of $4 billion . The Notes have maturities of up to 397 days from the date of issue. The proceeds of the Notes are expected to be used for general corporate purposes. As of December 31, 2018, the outstanding principal balance of the Commercial Paper Program was $250 million with a weighted-average rate of 2.91% recorded as short-term borrowings on the Consolidated Balance Sheet. On September 21, 2018, FIS entered into a Seventh Amendment and Restatement Agreement ("Credit Facility Agreement"), which amends and restates FIS' existing credit agreement (as amended, the "Restated Credit Agreement"). The Credit Facility Agreement increases the revolving credit commitments outstanding under the Revolving Credit Facility ("Revolving Credit Facility") existing under the Restated Credit Agreement from $3 billion to $4 billion and extends the term of the Restated Credit Agreement to September 21, 2023. Borrowing under the Revolving Credit Facility will be used for general corporate purposes, including backstopping any Notes that FIS may issue under the Commercial Paper Program described above. As of December 31, 2018 , the outstanding principal balance of the Revolving Credit Facility was $208 million , with $3,786 million of borrowing capacity remaining thereunder (net of $6 million in outstanding letters of credit issued under the Revolving Credit Facility). The obligations of FIS under the Revolving Credit Facility, Commercial Paper Program and under all of its outstanding senior notes rank equal in priority and are unsecured. The Revolving Credit Facility and the senior notes are subject to customary covenants, including, among others, limitations under the Revolving Credit Facility on the payment of dividends by FIS, and customary events of default. On June 15, 2018, FIS redeemed 100% of the outstanding aggregate principal amount of its $750 million 2.850% Senior Notes due October 2018. As a result of the redemption, FIS incurred a pre-tax charge of approximately $1 million consisting of the call premium and the write-off of previously capitalized debt issuance costs. On May 16, 2018, FIS issued $1,000 million principal amount of new senior notes, including $400 million of Senior Notes due in 2028 that bear interest at 4.250% and $600 million of Senior Notes due in 2048 that bear interest at 4.750% . Net proceeds from the offering, after deducting discounts and underwriting fees, were $979 million . FIS used the proceeds to partially repay its Revolving Credit Facility. On July 25, 2017, pursuant to cash tender offers ("Tender Offers"), FIS repurchased approximately $2,000 million in aggregate principal of amount of debt securities with a weighted average coupon of approximately 4.0% . The following approximate amounts of FIS's debt securities were repurchased: $600 million of its 3.625% notes due 2020, $600 million of its 5.000% notes due 2025, $200 million of its 4.500% notes due 2022, $300 million of its 3.875% notes due 2024 and $300 million of its 3.500% notes due 2023. The Company funded the Tender Offers with proceeds from the European bond offering and borrowings on its Revolving Credit Facility, approximately $469 million of which were almost immediately repaid with proceeds from the sale of a majority ownership stake in the Capco consulting business and risk and compliance consulting business, which was completed on July 31, 2017 (see Note 16). FIS paid approximately $150 million in tender premiums to par to purchase the notes in the Tender Offers and incurred a pre-tax charge upon extinguishment of approximately $171 million , in tender premiums, the write-off of previously capitalized debt issue costs and other direct costs. On July 10, 2017, FIS issued €1,000 million and £300 million principal amount of senior notes in an inaugural European bond offering. The senior notes include €500 million of Senior Notes due in 2021 that bear interest at 0.400% , £300 million of Senior Notes due in 2022 that bear interest at 1.700% and €500 million of Senior Notes due in 2024 that bear interest at 1.100% . Net proceeds from the offering, after deducting discounts and underwriting fees, were $1,491 million using a conversion rate of 1.12 EUR/USD and 1.27 GBP/USD. On March 15, 2017, FIS redeemed 100% of the outstanding aggregate principal amount of its $700 million 5.000% Senior Notes due March 2022 (the "March 2022 Notes"). On February 1, 2017, the Company also paid down the outstanding balance on the syndicated term loan agreement ("2018 Term Loans"). The redemption of the March 2022 Notes and the repayment of the 2018 Term Loans were funded by borrowings under the Revolving Credit Facility and cash proceeds from the sale of the PS&E business. As a result of the redemption of the March 2022 Notes and the repayment of the 2018 Term Loans, FIS incurred a pre-tax charge of approximately $25 million consisting of the call premium on the March 2022 Notes and the write-off of previously capitalized debt issuance costs. The following summarizes the aggregate maturities of our long-term debt, capital leases, and other financing obligations based on stated contractual maturities, excluding net unamortized non-cash bond premiums and discounts of $40 million as of December 31, 2018 (in millions): Total 2019 $ 48 2020 1,193 2021 1,363 2022 682 2023 908 Thereafter 4,622 Total principal payments 8,816 Debt issuance costs, net of accumulated amortization (58 ) Total long-term debt $ 8,758 There are no mandatory principal payments on the Revolving Credit Facility and any balance outstanding on the Revolving Credit Facility will be due and payable at its scheduled maturity date, which occurs at September 21, 2023. FIS may redeem the 2020 Notes, 2021 Euro Notes, 2021 Notes, 2022 GBP Notes, 2022 Notes, 2023 Notes, 2024 Notes, 2024 Euro Notes, 2025 Notes, 2026 Notes, 2028 Notes, 2046 Notes and 2048 Notes at its option in whole or in part, at any time and from time to time, at a redemption price equal to the greater of 100% of the principal amount to be redeemed and a make-whole amount calculated as described in the related indenture in each case plus accrued and unpaid interest to, but excluding, the date of redemption, provided no make-whole amount will be paid for redemptions of the 2020 Notes, the 2021 Notes, the 2021 Euro Notes and the 2022 GBP Notes during the one month prior to their maturity, the 2022 Notes during the two months prior to their maturity, the 2023 Notes, the 2024 Notes, the 2024 Euro Notes, the 2025 Notes, the 2026 Notes and the 2028 Notes during the three months prior to their maturity, and the 2046 Notes and 2048 Notes during the six months prior to their maturity. Debt issuance costs of $58 million , net of accumulated amortization, remain capitalized as of December 31, 2018 , related to all of the above outstanding debt. We monitor the financial stability of our counterparties on an ongoing basis. The lender commitments under the undrawn portions of the Revolving Credit Facility are comprised of a diversified set of financial institutions, both domestic and international. The failure of any single lender to perform its obligations under the Revolving Credit Facility would not adversely impact our ability to fund operations. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments As of December 31, 2018 and 2017, we had no significant forward contracts. Fair Value Hedge During the fourth quarter of 2018, the Company entered into an interest rate swap with a €500 million notional value converting the interest rate exposure on the Company's 2024 Euro Notes from fixed to variable. We designated this interest rate swap as a fair value hedge for accounting purposes. The fair value of the interest rate swap was a $1 million liability at December 31, 2018 , recorded as a decrease in the hedged debt balance (see Note 10). Cash Flow Hedges Interest rate swaps designated as cash flow hedges with aggregate notional amounts of $500 million and $1,250 million were terminated as of December 31, 2017 and 2016, respectively. As a result, FIS recognized approximately $1 million and $2 million before tax loss due to the release of fair value changes from other comprehensive earnings during the years ended December 31, 2017 and 2016, respectively. As of December 31, 2018 and 2017, we had no outstanding cash flow hedges. The amount of gain (loss) recognized in accumulated other comprehensive earnings related to interest rate swap cash flow hedges was $0 million , $0 million and $(7) million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The amount of gain (loss) reclassified from accumulated other comprehensive earnings into income was $(1) million , $(1) million and $(9) million during the years ended December 31, 2018 , 2017 and 2016 , respectively. Net Investment Hedges During the fourth quarter of 2018, the Company entered into cross-currency interest rate swaps with an aggregate notional amount of $716 million , which were designated as net investment hedges of its investment in Euro and GBP denominated operations. The fair value of the cross-currency interest rate swaps was a $2 million asset at December 31, 2018 . During the third quarter of 2017, the Company designated its Euro-denominated Senior Notes due 2021 ( €500 million ) and Senior Notes due 2024 ( €500 million ) and GBP-denominated Senior Notes due 2022 ( £300 million ) as net investment hedges of its investment in Euro and GBP denominated operations, respectively. The purpose of the Company's net investment hedges is to reduce the volatility of FIS' net investment value in its Euro- and GBP-denominated operations due to changes in foreign currency exchange rates. During the years ended December 31, 2018 and 2017 , net investment hedge aggregate gain (loss) of $59 million and $(63) million , net of tax, respectively, for the change in fair value was recorded in other comprehensive income as a component of foreign currency translation adjustments. No ineffectiveness was recorded on the net investment hedges. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2018 , 2017 and 2016 consists of the following (in millions): 2018 2017 2016 Current provision: Federal $ 169 $ 476 $ 308 State 50 81 54 Foreign 105 127 131 Total current provision $ 324 $ 684 $ 493 Deferred provision (benefit): Federal $ (95 ) $ (979 ) $ (171 ) State (11 ) (24 ) (14 ) Foreign (10 ) (2 ) (17 ) Total deferred provision (116 ) (1,005 ) (202 ) Total provision for income taxes $ 208 $ (321 ) $ 291 The provision for income taxes is based on pre-tax income from continuing operations, which is as follows for the years ended December 31, 2018 , 2017 and 2016 (in millions): 2018 2017 2016 United States $ 744 $ 530 $ 503 Foreign 360 446 334 Total $ 1,104 $ 976 $ 837 Total income tax expense for the years ended December 31, 2018 , 2017 and 2016 is allocated as follows (in millions): 2018 2017 2016 Tax expense (benefit) per statement of earnings $ 208 $ (321 ) $ 291 Tax expense (benefit) attributable to discontinued operations (1 ) — 1 Unrealized (loss) gain on foreign currency translation — — 30 Other components of other comprehensive income 1 (11 ) 1 Total income tax expense (benefit) allocated to other comprehensive income 1 (11 ) 31 Tax benefit from exercise of stock options — — (32 ) Total income tax expense (benefit) $ 208 $ (332 ) $ 291 A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2018 , 2017 and 2016 is as follows: 2018 2017 2016 Federal statutory income tax rate 21.0 % 35.0 % 35.0 % State income taxes 3.0 2.4 2.9 Federal benefit of state taxes (0.6 ) (0.8 ) (1.0 ) Foreign rate differential — (5.1 ) (3.1 ) Tax benefit from stock-based compensation (5.2 ) (6.7 ) — Book basis in excess of tax basis for dispositions 3.0 18.5 — Tax Cuts and Jobs Act of 2017 — (73.1 ) — Foreign-derived intangible income deduction (1.8 ) — — Other (0.6 ) (3.1 ) 1.0 Effective income tax rate 18.8 % (32.9 )% 34.8 % The significant components of deferred income tax assets and liabilities as of December 31, 2018 and 2017 consist of the following (in millions): 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 108 $ 130 Employee benefit accruals 58 69 Other deferred tax assets 105 128 Total gross deferred income tax assets 271 327 Less valuation allowance (116 ) (129 ) Total deferred income tax assets 155 198 Deferred income tax liabilities: Amortization of goodwill and intangible assets 1,291 1,452 Deferred contract costs 109 94 Other deferred tax liabilities 83 90 Total deferred income tax liabilities 1,483 1,636 Net deferred income tax liability $ 1,328 $ 1,438 Deferred income taxes are classified in the Consolidated Balance Sheets as of December 31, 2018 and 2017 as follows (in millions): 2018 2017 Noncurrent assets (included in other noncurrent assets) $ 32 $ 30 Total deferred income tax assets 32 30 Noncurrent liabilities (1,360 ) (1,468 ) Total deferred income tax liabilities (1,360 ) (1,468 ) Net deferred income tax liability $ (1,328 ) $ (1,438 ) We believe that based on our historical pattern of taxable income, projections of future income, tax planning strategies and other relevant evidence, the Company will produce sufficient income in the future to realize its deferred income tax assets. A valuation allowance is established for any portion of a deferred income tax asset for which we believe it is more likely than not that the Company will not be able to realize the benefits of all or a portion of that deferred income tax asset. We also receive periodic assessments from taxing authorities challenging our positions that must be taken into consideration in determining our tax accruals. Resolving these assessments, which may or may not result in additional taxes due, may require an extended period of time. Adjustments to the valuation allowance will be made if there is a change in our assessment of the amount of deferred income tax asset that is realizable. As of December 31, 2018 and 2017 , the Company had net income taxes receivable (payable) of $30 million and $(141) million , respectively. These amounts are included in other receivables and other long-term liabilities as of December 31, 2018 and accounts payable and accrued liabilities and other long-term liabilities as of December 31, 2017 , in the Consolidated Balance Sheets. As of December 31, 2018 and 2017 , the Company has federal, state and foreign net operating loss carryforwards resulting in deferred tax assets of $108 million and $130 million , respectively. The federal and state net operating losses result in deferred tax assets as of December 31, 2018 and 2017 of $42 million and $44 million , respectively, which expire between 2020 and 2038. The Company has a valuation allowance related to these deferred tax assets for net operating loss carryforwards in the amounts of $36 million and $37 million as of December 31, 2018 and 2017 . The Company has foreign net operating loss carryforwards resulting in deferred tax assets as of December 31, 2018 and 2017 of $66 million and $86 million , respectively. The Company has a full valuation allowance against the net operating losses as of December 31, 2018 and December 31, 2017 . As of December 31, 2018 and 2017 , the Company had foreign tax credit carryforwards of $0 million and $3 million , respectively. The Company participates in the IRS' Compliance Assurance Process ("CAP"), which is a real-time continuous audit. The IRS has completed its review for years through 2016. Currently, we believe the ultimate resolution of the IRS examinations will not result in a material adverse effect to the Company's financial position or results of operations. Substantially all material foreign income tax return matters have been concluded through 2011. Substantially all state income tax returns have been concluded through 2011. As of December 31, 2018 and 2017 , the Company had gross unrecognized tax benefits of $61 million and $75 million of which $52 million and $56 million would favorably impact our income tax rate in the event that the unrecognized tax benefits are recognized. The following table reconciles the gross amounts of unrecognized tax benefits at the beginning and end of the period (in millions): Gross Amount Amounts of unrecognized tax benefits as of January 1, 2017 $ 87 Amount of decreases due to lapse of the applicable statute of limitations (12 ) Amount of decreases due to settlements (19 ) Increases as a result of tax positions taken in the current period 5 Increases as a result of tax positions taken in a prior period 14 Amount of unrecognized tax benefit as of December 31, 2017 75 Amount of decreases due to lapse of the applicable statute of limitations (4 ) Amount of decreases due to settlements (12 ) Increases as a result of tax positions taken in the current period 1 Increases as a result of tax positions taken in a prior period 1 Amount of unrecognized tax benefit as of December 31, 2018 $ 61 The total amount of interest expense recognized in the Consolidated Statements of Earnings for unpaid taxes is $4 million , $5 million and $6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The total amount of interest and penalties included in the Consolidated Balance Sheets is $24 million and $22 million as of December 31, 2018 and 2017 , respectively. Interest and penalties are recorded as a component of income tax expense in the Consolidated Statements of Earnings. Due to the expiration of various statutes of limitation in the next 12 months, an estimated $15 million of gross unrecognized tax benefits may be recognized during that 12 -month period. On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act (the "Act") was signed into law. The Act included significant changes to the Internal Revenue Code. Changes impacting the Company were the decrease in the corporate Federal rate from 35% to 21% , the transition to a territorial system of taxation from a worldwide system, and a one-time tax on the deemed repatriation of cumulative foreign earnings and profits. In 2017, the Company recorded provisional amounts for certain enactment-date effects of the Act by applying the guidance in SEC Staff Accounting Bulletin No. 118 ("SAB 118"). At December 31, 2018, the Company has completed the accounting for all of the enactment-date income tax effects of the Act and has confirmed the accuracy of the provisional amounts initially determined. Due to changes introduced by the Act, the Company provided for U.S. income tax on its deemed repatriation of accumulated foreign earnings in 2017. Those historic earnings are indefinitely reinvested offshore, however, those undistributed earnings could still be subject to additional income tax if repatriated. Due to changes introduced by the Act, and in the absence of final guidance, it is not practicable to determine the unrecognized deferred tax liability on a hypothetical distribution of those earnings. The Act also includes provisions for Global Low-Taxed Income ("GILTI") that imposes a minimum tax liability on foreign earnings. The Company has made the policy election to account for GILTI as a component of income taxes in the period incurred (the period cost method). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Reliance Trust Claims Reliance Trust Company ("Reliance"), the Company’s subsidiary, is named as a defendant in a class action arising out of its provision of services as the discretionary trustee for a 401(k) Plan (the "Plan") for one of its customers. Plaintiffs in the action seek damages and attorneys’ fees, as well as equitable relief, on behalf of Plan participants for alleged breaches of fiduciary duty and prohibited transactions under the Employee Retirement Income Security Act of 1974. The action also makes claims against the Plan's sponsor and record-keeper. Reliance is vigorously defending the action and believes that it has meritorious defenses. Pre-trial discovery has now been completed. Reliance contends that no breaches of fiduciary duty or prohibited transactions occurred and that the Plan suffered no damages. Plaintiffs allege damages of approximately $125 million . While we are unable at this time to estimate more precisely the potential loss or range of loss because of unresolved questions of fact and law, we believe that the ultimate resolution of the matter will not have a material impact on our financial condition. We do not believe a liability for this action is probable and, therefore, have not recorded a liability for this action. Brazilian Tax Authorities Claims In 2004, Proservvi Empreendimentos e Servicos, Ltda., the predecessor to Fidelity National Servicos de Tratamento de Documentos e Informatica Ltda. ("Servicos"), a subsidiary of Fidelity National Participacoes Ltda., our former item processing and remittance services operation in Brazil, acquired certain assets and employees and leased certain facilities from the Transpev Group ("Transpev") in Brazil. Transpev’s remaining assets were later acquired by Prosegur, an unrelated third party. When Transpev discontinued its operations after the asset sale to Prosegur, it had unpaid federal taxes and social contributions owing to the Brazilian tax authorities. The Brazilian tax authorities brought a claim against Transpev and beginning in 2012 brought claims against Prosegur and Servicos on the grounds that Prosegur and Servicos were successors in interest to Transpev. To date, the Brazilian tax authorities filed 12 claims against Servicos asserting potential tax liabilities of approximately $14 million . There are potentially 25 additional claims against Transpev/Prosegur for which Servicos is named as a co-defendant or may be named, but for which Servicos has not yet been served. These additional claims amount to approximately $50 million making the total potential exposure for all 37 claims approximately $64 million . We do not believe a liability for these 37 total claims is probable and, therefore, have not recorded a liability for any of these claims. Acquired Contingencies FIS and certain of its wholly owned subsidiaries acquired SunGard and SunGard Capital Corp. II (collectively, "SunGard") on November 30, 2015 (the "SunGard acquisition"). As part of the SunGard acquisition, the Company became responsible for certain contingencies that were assumed. The Consolidated Balance Sheet as of December 31, 2018 includes a liability of $64 million largely related to tax compliance matters. Indemnifications and Warranties The Company generally indemnifies its clients, subject to certain limitations and exceptions, against damages and costs resulting from claims of patent, copyright, or trademark infringement associated solely with its customers' use of the Company's software applications or services. Historically, the Company has not made any material payments under such indemnifications, but continues to monitor the conditions that are subject to the indemnifications to identify whether it is probable that a loss has occurred, and would recognize any such losses when they are estimable. In addition, the Company warrants to customers that its software operates substantially in accordance with the software specifications. Historically, no material costs have been incurred related to software warranties and no accruals for warranty costs have been made. Leases The Company leases certain of its property under leases which expire at various dates. Several of these agreements include escalation clauses and provide for renewal options for periods generally ranging from one to five years. Future minimum operating lease payments for each of the years in the five years ending December 31, 2023, and thereafter, in the aggregate, are as follows (in millions): 2019 $ 121 2020 104 2021 80 2022 51 2023 38 Thereafter 86 Total $ 480 Rent expense incurred under all operating leases during the years ended December 31, 2018 , 2017 and 2016 , was $147 million , $134 million and $143 million , respectively. See Note 4 for information on the Company's capital lease obligations. Recent Accounting Guidance Not Yet Adopted On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU No. 2018-10, Codification Improvements to Topic 842, Leases ; ASU No. 2018-11, Targeted Improvements ; and ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors (collectively, the "new standard"). The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Under the new standard, lessor accounting is largely unchanged. The new standard is effective for public business entities on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We will adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. We expect to elect the "package of practical expedients," which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We do not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the practical expedient to not separate lease and non-lease components for all of our leases. We do not currently expect to elect the short-term lease recognition exemption. We expect that this standard will have an immaterial effect on results of operations. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to the recognition of new ROU assets and lease liabilities on our balance sheet for our real estate operating leases and providing new disclosures about our leasing activities. On adoption, we currently expect to recognize additional ROU assets and lease liabilities for operating leases ranging from $400 million to $500 million . Data Processing, Maintenance and Other Service Agreements The Company has agreements with various vendors, which expire between 2019 and 2024, principally for portions of its computer data processing operations and related functions. The Company’s estimated aggregate contractual obligation remaining under these agreements is approximately $372 million as of December 31, 2018 . However, this amount could be more or less depending on various factors such as the inflation rate, foreign exchange rates, the introduction of significant new technologies, or changes in the Company’s data processing needs. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Stock Purchase Plan FIS employees participate in an Employee Stock Purchase Plan ("ESPP"). Eligible employees may voluntarily purchase, at current market prices, shares of FIS’ common stock through payroll deductions. Pursuant to the ESPP, employees may contribute an amount between 3% and 15% of their base salary and certain commissions. Shares purchased are allocated to employees based upon their contributions. The Company contributes a matching amount as specified in the ESPP of 25% of the employee's contribution. The Company recorded expense of $14 million , $14 million and $19 million , respectively, for the years ended December 31, 2018 , 2017 and 2016 , relating to the participation of FIS employees in the ESPP. 401(k) Profit Sharing Plans The Company’s U.S. employees are covered by a qualified 401(k) plan. Eligible employees may contribute up to 40% of their pretax annual compensation, up to the amount allowed pursuant to the Internal Revenue Code. The Company generally matches 50% of each dollar of employee contribution up to 6% of the employee’s total eligible compensation. The Company recorded expense of $82 million , $80 million and $80 million , respectively, for the years ended December 31, 2018 , 2017 and 2016 , relating to the participation of FIS employees in the 401(k) plan. Stock Compensation Plans In 2008 , the Company adopted the FIS 2008 Omnibus Incentive Plan ("FIS Plan"). In May 2013, the FIS Plan was combined with a plan assumed in conjunction with the 2009 Metavante acquisition ("FIS Restated Plan"). The restatement authorized an additional 6 million shares for issuances, which was approved by stockholders in 2013. In May 2015, another 12 million shares were authorized for issuance under the FIS Restated Plan and approved by stockholders. Restricted stock awards and options granted under the FIS Restated Plan for the year ended 2018 are subject to time-based vesting criteria as well as market conditions for certain grants. Restricted stock awards and options granted under the FIS Restated Plan for the years ended 2017 and 2016 are subject to time- and performance-based vesting criteria. On November 30, 2015, in conjunction with the SunGard acquisition, the Company registered an additional 10 million shares, representing the remaining shares available for issuance under the SunGard 2005 Management Incentive Plan, as amended ("the SG Plan"), immediately prior to the consummation of the SunGard acquisition. These shares are now available for grant under the FIS Restated Plan for legacy SunGard employees and new FIS employees. Also on November 30, 2015, in conjunction with the SunGard acquisition, the Company registered up to approximately 2 million shares of FIS common stock on a Post-Effective Amendment on Form S-8, reserved for issuance with respect to converted restricted stock units ("RSU's") under the SG Plan. This SG Plan will remain in existence until such time as these RSU's vest and the shares are exercised or the SG Plan is otherwise terminated. A summary of the stock options granted (all of which vest over three years and, for the 2017 and 2016 grants, are also subject to performance-based vesting criteria), o utstanding and shares available for grant under the FIS Restated Plan follows (in millions): FIS Restated Plan Available for grant as of December 31, 2016 21 Granted in 2017 4 Outstanding as of December 31, 2017 15 Available for grant as of December 31, 2017 17 Granted in 2018 1 Outstanding as of December 31, 2018 10 Available for grant as of December 31, 2018 15 The following schedule summarizes the stock option activity for the years ended December 31, 2018 , 2017 and 2016 (in millions except for per share amounts): Shares Weighted Average Exercise Price Balance, December 31, 2015 16 $ 47.19 Granted 5 63.58 Exercised (3 ) 36.15 Cancelled (1 ) 62.25 Balance, December 31, 2016 17 53.21 Granted 4 80.05 Exercised (5 ) 44.75 Cancelled (1 ) 70.50 Balance, December 31, 2017 15 61.97 Granted 1 96.49 Exercised (5 ) 54.19 Cancelled (1 ) 74.76 Balance, December 31, 2018 10 70.03 The intrinsic value of options exercised during the years ended December 31, 2018 , 2017 and 2016 was $257 million , $196 million and $103 million , respectively. The Company generally issues shares from treasury stock for stock options exercised. The following table summarizes information related to stock options outstanding and exercisable as of December 31, 2018 : Outstanding Options Exercisable Options Range of Exercise Price Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Intrinsic Value as of December 31, 2018 (a) Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Intrinsic Value as of December 31, 2018 (a) (In millions) (In millions) (In millions) (In millions) $ 0.00 - $ 59.91 3 2.23 $ 52.50 $ 136 3 2.23 $ 52.49 $ 136 $ 59.92 - $ 62.92 2 4.15 62.92 75 1 4.08 62.92 44 $ 62.93 - $ 66.62 1 3.62 65.73 51 1 3.52 65.56 35 $ 66.63 - $ 80.03 3 5.06 80.00 66 1 4.69 79.97 21 $ 80.04 - $ 102.55 1 6.23 96.24 9 — 3.51 91.68 — $ 102.56 - $ 107.45 — 6.73 104.75 — — 0.00 — — $ 0.00 - $ 107.45 10 4.10 70.03 $ 337 6 3.21 61.26 $ 236 (a) Intrinsic value is based on a closing stock price as of December 31, 2018 of $102.55 . The weighted average fair value of options granted during the years ended December 31, 2018 , 2017 and 2016 was estimated to be $16.07 , $12.78 and $9.35 , respectively, using the Black-Scholes option pricing model with the assumptions below: 2018 2017 2016 Risk free interest rate 2.5 % 1.8 % 1.2 % Volatility 19.2 % 20.1 % 20.4 % Dividend yield 1.3 % 1.4 % 1.6 % Weighted average expected life (years) 4.2 4.2 4.2 The Company estimates future forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company bases the risk-free interest rate that is used in the stock option valuation model on U.S. Treasury securities issued with maturities similar to the expected term of the options. The expected stock volatility factor is determined using historical daily price changes of the Company's common stock over the most recent period commensurate with the expected term of the option and the impact of any expected trends. The dividend yield assumption is based on the current dividend yield at the grant date or management's forecasted expectations. The expected life assumption is determined by calculating the average term from the Company's historical stock option activity and considering the impact of expected future trends. The Company granted a total of 1 million restricted stock shares at prices ranging from $94.71 to $110.12 on various dates in 2018 . The Company granted a total of 1 million restricted stock shares at prices ranging from $79.44 to $93.36 on various dates in 2017 . The Company granted a total of 1 million restricted stock shares at prices ranging from $56.44 to $79.41 on various dates in 2016 . The restricted stock shares were granted at the closing market price on the date of grant and vest annually over three years. The restricted stock shares granted in 2017 and 2016 are also subject to performance-based vesting criteria. Certain of the restricted stock shares granted in 2018 are also subject to market conditions. As of December 31, 2018 and 2017 , we have approximately 1 million and 2 million unvested restricted shares remaining. The Company has provided for total stock compensation expense of $84 million , $107 million and $137 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, which is included in selling, general, and administrative expense in the Consolidated Statements of Earnings, unless the expense is attributable to a discontinued operation. As of December 31, 2018 and 2017 , the total unrecognized compensation cost related to non-vested stock awards is $106 million and $111 million , respectively, which is expected to be recognized in pre-tax income over a weighted-average period of 1.5 years and 1.5 years, respectively. German Pension Plans Our German operations have unfunded, defined benefit plan obligations. These obligations relate to benefits to be paid to German employees upon retirement. The accumulated benefit obligation as of December 31, 2018 and 2017 , was $54 million and $57 million , respectively, and the projected benefit obligation was $54 million and $57 million , respectively. The plan remains unfunded as of December 31, 2018 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Cardinal Holdings On July 31, 2017, FIS closed on the sale of a majority ownership stake in its Capco consulting business and risk and compliance consulting business to Clayton, Dubilier & Rice L.P., by and through certain funds that it manages ("CD&R"). CD&R acquired a 60% interest in the entity, Cardinal, and FIS obtained the remaining 40% interest, in each case before equity issued to management (see Note 16). Cardinal became a related party effective July 31, 2017. Upon closing on the sale of the Capco consulting business and risk and compliance consulting business, FIS and Cardinal entered into a short-term Transition Services Agreement, whereby FIS provides various agreed upon services to Cardinal. FIS also provides ongoing management consulting services and other services to Cardinal. Amounts transacted through these agreements were not significant to the 2018 and 2017 periods presented. Capco provided Banco Bradesco with consulting services. Capco revenue and related party receivables from Banco Bradesco through the July 31, 2017 closing are included below under Brazilian Venture revenue and trade receivables from Banco Bradesco. Brazilian Venture The Company operated the Brazilian Venture with Banco Bradesco in which FIS owned a 51% controlling interest through December 31, 2018, and provided comprehensive, fully outsourced transaction processing, call center, cardholder support and collection services to multiple card issuing clients in Brazil, including Banco Bradesco. The original accounting for the Brazilian Venture transaction resulted in the establishment of a contract intangible asset and a liability for amounts payable to the original partner banks upon final migration of their respective card portfolios and achieving targeted volumes. FIS closed a transaction with Banco Bradesco on December 31, 2018 to unwind the Brazilian Venture pursuant to the agreement entered into September 28, 2018 (see Note 16). Banco Bradesco was a related party through December 31, 2018. During the third quarter of 2018, FIS incurred impairment charges of $95 million related to the disposal, including impairments of its contract intangible asset, goodwill and its assets held for sale to fair value less cost to sell (see Note 2 (c)). The carrying value of the noncontrolling interest as of December 31, 2018 was $0 million as a result of the transaction. The board of directors for the Brazilian Venture declared a dividend during the years ended December 31, 2018 and 2017 , resulting in payments to Banco Bradesco of $26 million and $23 million respectively. The Company recorded revenue of $332 million , $329 million and $272 million during the years ended December 31, 2018 , 2017 and 2016 , respectively, from Banco Bradesco. Revenue from Banco Bradesco included $46 million of unfavorable and $24 million of favorable currency impact during the years ended December 31, 2018 and 2017 , respectively, resulting from foreign currency exchange rate fluctuations between the U.S. Dollar and Brazilian Real in 2018 as compared to 2017 and 2017 as compared to 2016 . A summary of the Company’s related party receivables and payables is as follows (in millions): December 31, Related Party Balance Sheet Location 2018 2017 Banco Bradesco Trade receivables $ — $ 47 Banco Bradesco Contract assets — 5 Banco Bradesco Accounts payable and accrued liabilities — 10 Banco Bradesco Other long-term liabilities — 17 |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On September 28, 2018, FIS entered into an agreement with Banco Bradesco to unwind the Brazilian Venture. The transaction closed on December 31, 2018. As a result of the transaction, the Brazilian Venture spun-off certain assets of the business that also provide services to non-Bradesco clients to a new wholly-owned FIS subsidiary. The subsidiary entered into a long-term commercial agreement to provide current and new services to Banco Bradesco effective January 1, 2019 that include software licensing, maintenance, application management, card portfolio migration, business process outsourcing, fraud management and professional services. As a result of the transaction, Banco Bradesco owns 100% of the entity that previously housed the Brazilian Venture and its remaining assets that relate to card processing for Banco Bradesco, which Banco Bradesco will perform internally. During the third quarter of 2018, FIS incurred impairment charges of $95 million related to the expected disposal, including impairments of its contract intangible asset, goodwill and its assets held for sale to fair value less cost to sell (see Note 2 (c)). Upon closing of the transaction, FIS recorded an additional pre-tax loss of $12 million related to the business divested, removed FIS' noncontrolling interest balance of $90 million , and recorded a $57 million increase to additional paid in capital for the business spun-off into the new wholly-owned FIS subsidiary. The impairment loss and pre-tax loss on disposal were recorded in the Corporate and Other segment. The Brazilian Venture business divested was included within the GFS segment as part of the consolidated Brazilian Venture results recorded by FIS through the transaction date. The transaction did not meet the standard necessary to be reported as discontinued operations; therefore, the impairment loss, pre-tax loss and related prior period earnings remain reported within earnings from continuing operations. On July 31, 2017, FIS closed on the sale of a majority ownership stake in its Capco consulting business and risk and compliance consulting business to CD&R, for cash proceeds of approximately $469 million , resulting in a pre-tax loss of approximately $41 million . The divestiture is consistent with our strategy to focus on our IP-led businesses. CD&R acquired preferred units convertible into 60% of the common units of the venture, Cardinal Holdings, L.P. ("Cardinal") and FIS obtained common units representing the remaining 40% , in each case before equity is issued to management. The preferred units are entitled to a quarterly dividend at an annual rate of 12% , payable in cash (if available) or additional preferred units at FIS' option. The businesses sold were included within the GFS and IFS segments. The sale did not meet the standard necessary to be reported as discontinued operations; therefore, the pre-tax loss and related prior period earnings remain reported within earnings from continuing operations. Prior to the sale, the Capco consulting business and risk and compliance consulting business' pre-tax earnings (loss), excluding certain unallocated corporate costs, for the periods ended December 31, 2017 and 2016 were $14 million , and $55 million , respectively. FIS' 40% ownership stake in Cardinal was initially valued at $172 million and is recorded as an equity method investment included within other noncurrent assets on the Consolidated Balance Sheet. After the sale on July 31, 2017, FIS began to recognize after-tax equity method investment earnings (loss) outside of operating income and segment Adjusted EBITDA. FIS' ownership stake in Cardinal at December 31, 2018 and 2017 was 38% and 40% , respectively. The carrying value of this equity method investment as of December 31, 2018 and 2017 was $151 million and $171 million , respectively. For periods prior to July 31, 2017, the Capco consulting business and risk and compliance consulting business were included within operating income and segment Adjusted EBITDA. On February 1, 2017, the Company closed on the sale of the PS&E business for $850 million , resulting in a pre-tax gain of $85 million . The transaction included all PS&E solutions, which provided a comprehensive set of technology solutions to address public safety and public administration needs of government entities as well as the needs of K-12 school districts. The divestiture is consistent with our strategy to serve the financial services markets. Cash proceeds were used to reduce outstanding debt (see Note 10). Net cash proceeds after payment of taxes and transaction-related expenses were approximately $500 million . The PS&E business was included in the Corporate and Other segment. The sale did not meet the standard necessary to be reported as discontinued operations; therefore, the gain and related prior period earnings remain reported within earnings from continuing operations. Prior to the sale, PS&E's pre-tax earnings, excluding certain unallocated corporate costs, for the periods ended December 31, 2017 and 2016 were $3 million and $42 million , respectively. |
Components of Other Comprehensi
Components of Other Comprehensive Earnings | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Components of Other Comprehensive Earnings | Components of Other Comprehensive Earnings The following table shows accumulated other comprehensive earnings attributable to FIS by component, net of tax, for the year ended December 31, 2018 (in millions): Foreign Currency Translation Adjustments Other (1) Total Balances, December 31, 2017 $ (289 ) $ (43 ) $ (332 ) Other comprehensive gain (loss) before reclassifications (102 ) 4 (98 ) Balances, December 31, 2018 $ (391 ) $ (39 ) $ (430 ) (1) Includes the minimum pension liability adjustment and the cash settlement payment on treasury lock contracts associated with bridge financing for the SunGard acquisition. This amount will be amortized as an adjustment to interest expense over the 10 years in which the related interest payments that were hedged are recognized in income. See Note 12 for the tax provision associated with each component of other comprehensive income. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Concentration of Risk The Company generates a significant amount of revenues from large clients, however, no individual client accounted for 10% or more of total revenues in the years ended December 31, 2018 , 2017 and 2016 . Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. The Company places its cash equivalents with high credit-quality financial institutions and, by policy, limits the amount of credit exposure with any one financial institution. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse clients make up the Company’s client base, thus spreading the trade receivables credit risk. The Company controls credit risk through monitoring procedures. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Integrated Financial Solutions ("IFS") The IFS segment is focused primarily on serving North American clients for transaction and account processing, payment solutions, channel solutions, lending and wealth and retirement solutions, corporate liquidity, digital channels, risk and compliance solutions, and services, capitalizing on the continuing trend to outsource these solutions. Clients in this segment include regional and community banks, credit unions and commercial lenders, as well as government institutions, merchants and other commercial organizations. IFS’ primary software applications function as the underlying infrastructure of a financial institution's processing environment. These applications include core bank processing software, which banks use to maintain the primary records of their customer accounts, and complementary applications and services that interact directly with the core processing applications. These markets are primarily served through integrated solutions and characterized by multi-year processing contracts that generate highly recurring revenue. The predictable nature of cash flows generated from this segment provides opportunities for further investments in innovation, integration, information and security, and compliance in a cost effective manner. The business solutions in this segment included the risk and compliance consulting business through its divestiture on July 31, 2017 (see Note 16). Global Financial Solutions ("GFS") The GFS segment is focused on serving the largest global financial institutions and/or international financial institutions with a broad array of capital markets and asset management and insurance solutions, as well as banking and payments solutions. GFS clients include the largest global financial institutions, including those headquartered in the United States, as well as all international financial institutions we serve as clients in more than 130 countries around the world, and asset managers, buy- and sell-side securities and trading firms, insurers and private equity firms. These institutions face unique business and regulatory challenges and account for the majority of financial institution information technology spend globally. The purchasing patterns of GFS clients vary from those of IFS clients who typically purchase solutions on an outsourced basis. GFS clients purchase our solutions and services in various ways including licensing and managing technology "in-house," using consulting and third-party service providers as well as fully outsourced end-to-end solutions. We have long-established relationships with many of these financial institutions that generate significant recurring revenue. The business solutions in this segment included the Capco consulting business through its divestiture on July 31, 2017 and the Company's Brazilian Venture business divested as part of the joint venture unwinding transaction through December 31, 2018 (see Note 16). Corporate and Other The Corporate and Other segment consists of corporate overhead expense, certain leveraged functions and miscellaneous expenses that are not included in the operating segments, as well as certain non-strategic businesses. At the end of 2018, the only business unit remaining in this segment is the Global Commercial Services business, as the non-strategic businesses were divested. In particular, the PS&E business was divested on February 1, 2017 (see Note 16) and the Certegy Check Services business unit in North America was divested on August 31, 2018 (see Note 5). The overhead and leveraged costs relate to marketing, corporate finance and accounting, human resources, legal, and amortization of acquisition-related intangibles and other costs that are not considered when management evaluates revenue generating segment performance, such as acquisition, integration and certain other costs. The Corporate and Other segment also includes the impact on revenue for 2018, 2017 and 2016 of adjusting deferred revenue from the SunGard acquisition to fair value. During 2018 the Company recorded acquisition and integration costs primarily related to the SunGard acquisition and certain other costs including those associated with data center consolidation activities of $156 million . During 2017 and 2016 the Company recorded acquisition and integration costs primarily related to the SunGard acquisition of $178 million and $281 million , respectively. Adjusted EBITDA This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, Adjusted EBITDA, as it relates to our segments, is presented in conformity with FASB ASC Topic 280, Segment Reporting . Adjusted EBITDA is defined as EBITDA (defined as net earnings (loss) before net interest expense, income tax provision (benefit) and depreciation and amortization) plus certain non-operating items. The non-operating items affecting the segment profit measure generally include acquisition accounting adjustments; acquisition, integration and certain other costs; and asset impairments. For consolidated reporting purposes, these costs and adjustments are recorded in the Corporate and Other segment for the periods discussed below. Adjusted EBITDA for the respective segments excludes the foregoing costs and adjustments. Summarized financial information for the Company’s segments is shown in the following tables. As of and for the year ended December 31, 2018 (in millions): IFS GFS Corporate and Other Total Revenue $ 4,401 $ 3,718 $ 304 $ 8,423 Operating expenses 2,788 2,611 1,566 6,965 Depreciation and amortization 349 284 787 1,420 EBITDA 1,962 1,391 (475 ) 2,878 Acquisition deferred revenue adjustment — — 4 4 Acquisition, integration and other costs — — 156 156 Asset impairments — — 95 95 Adjusted EBITDA $ 1,962 $ 1,391 $ (220 ) $ 3,133 EBITDA $ 2,878 Interest expense, net 297 Depreciation and amortization 1,420 Other income (expense) unallocated (72 ) Provision (benefit) for income taxes 208 Net earnings attributable to noncontrolling interest 35 Net earnings attributable to FIS common stockholders $ 846 Capital expenditures (1) $ 385 $ 306 $ 22 $ 713 Total assets $ 10,940 $ 8,123 $ 4,707 $ 23,770 Goodwill $ 7,648 $ 5,770 $ 127 $ 13,545 (1) Capital expenditures include $91 million in capital leases and other financing obligations. As of and for the year ended December 31, 2017 (in millions): IFS GFS Corporate and Other Total Revenue $ 4,260 $ 4,050 $ 358 $ 8,668 Operating expenses 2,692 2,990 1,554 7,236 Depreciation and amortization 306 263 798 1,367 EBITDA 1,874 1,323 (398 ) 2,799 Acquisition deferred revenue adjustment — — 7 7 Acquisition, integration and other costs — — 178 178 Adjusted EBITDA $ 1,874 $ 1,323 $ (213 ) $ 2,984 EBITDA $ 2,799 Interest expense, net 337 Depreciation and amortization 1,367 Other income (expense) unallocated (122 ) Provision (benefit) for income taxes (321 ) Net earnings attributable to noncontrolling interest 33 Net earnings attributable to FIS common stockholders $ 1,261 Capital expenditures (1) $ 374 $ 301 $ 22 $ 697 Total assets $ 10,663 $ 8,437 $ 5,424 $ 24,524 Goodwill $ 7,662 $ 5,898 $ 170 $ 13,730 (1) Capital expenditures include $84 million in capital leases and other financing obligations. As of and for the year ended December 31, 2016 (in millions): IFS GFS Corporate and Other Total Revenue $ 4,178 $ 4,183 $ 470 $ 8,831 Operating expenses 2,649 3,219 1,734 7,602 Depreciation and amortization 263 247 643 1,153 EBITDA 1,792 1,211 (621 ) 2,382 Acquisition deferred revenue adjustment — — 192 192 Acquisition, integration and other costs — — 281 281 Adjusted EBITDA $ 1,792 $ 1,211 $ (148 ) 2,855 EBITDA $ 2,382 Interest expense, net 383 Depreciation and amortization 1,153 Other income (expense) unallocated (9 ) Provision (benefit) for income taxes 291 Net earnings (loss) from discontinued operations 1 Net earnings attributable to noncontrolling interest 22 Net earnings attributable to FIS common stockholders $ 525 Capital expenditures (1) $ 294 $ 317 $ 48 $ 659 Total assets $ 10,231 $ 9,106 $ 6,683 $ 26,020 Goodwill $ 7,676 $ 6,332 $ 170 $ 14,178 (1) Capital expenditures include $43 million in capital leases and other financing obligations. Total assets as of December 31, 2018 , 2017 and 2016 exclude $0 million , $2 million and $6 million , respectively, related to discontinued operations. Clients in Brazil, the United Kingdom, Germany, India and Australia accounted for the majority of the revenue from clients based outside of North America for all periods presented. FIS conducts business in over 130 countries, with no individual country outside of North America accounting for more than 10% of total revenue for the years ended December 31, 2018 , 2017 and 2016 . Long-term assets, excluding goodwill and other intangible assets, located outside of the United States totaled $560 million and $559 million as of December 31, 2018 and 2017 , respectively. These assets are predominantly located in the United Kingdom, India, Belgium, Germany, France and Brazil. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The Consolidated Financial Statements include the accounts of FIS, its wholly-owned subsidiaries and subsidiaries that are majority-owned. All significant intercompany profits, transactions and balances have been eliminated in consolidation. |
Cash and Cash Equivalents | The Company considers all cash on hand, money market funds and other highly liquid investments with original maturities of three months or less to be cash and cash equivalents. As part of the Company’s payment processing business, the Company provides cash settlement services to financial institutions and state and local governments. These services involve the movement of funds between the various parties associated with automated teller machines ("ATM"), point-of-sale or electronic benefit transactions ("EBT"), and this activity results in a balance due to the Company at the end of each business day that it recoups over the next few business days. The in-transit balances due to the Company are included in cash and cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair value. |
Fair Value Measurements | Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations, requires an acquirer to recognize, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree, and to measure these items generally at their acquisition date fair values. Goodwill is recorded as the residual amount by which the purchase price exceeds the fair value of the net assets acquired. Fair values are determined using the framework outlined below under Fair Value Hierarchy and the methodologies addressed in the individual subheadings. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we are required to report provisional amounts in the financial statements for the items for which the accounting is incomplete. Adjustments to provisional amounts initially recorded that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we are also required to recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the combination date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. Fair Value of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for receivables, accounts payable, and short-term borrowings approximate their fair values because of their immediate or short-term maturities. The fair value of the Company’s long-term debt is estimated to be approximately $140 million lower and $156 million higher than the carrying value as of December 31, 2018 and 2017 , respectively. These estimates are based on values of trades of our debt in close proximity to year end, which are considered Level 2-type measurements, as discussed below. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. Therefore, the values presented are not necessarily indicative of amounts the Company could realize or settle currently. The Company holds, or has held, certain derivative instruments, specifically interest rate swaps and foreign exchange forward contracts. Derivative instruments are valued using Level 2-type measurements. Fair Value Hierarchy The authoritative accounting literature defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy based on the quality of inputs used to measure fair value. The fair value hierarchy includes three levels that are based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). If the inputs used to measure the fair value fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the asset or liability. The three levels of the fair value hierarchy are described below: Level 1. Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2. Inputs to the valuation methodology include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Fair Value Measurements Generally accepted accounting principles require that, subsequent to their initial recognition, certain assets be reviewed for impairment on a nonrecurring basis by comparison to their fair value. As more fully discussed in their respective subheadings below, this includes goodwill, long-lived assets, intangible assets, computer software and investments. During the third quarter of 2018, as a result of entering into an agreement to unwind the joint venture ("Brazilian Venture") that the Company operated with Banco Bradesco, S.A. ("Banco Bradesco"), the Company recorded pre-tax asset impairments totaling $95 million , including $42 million for the Brazilian Venture contract intangible asset, $25 million for goodwill, and $28 million for assets held for sale during the third quarter (see Notes 15 and 16). The impairment charges are included in the Corporate and Other segment results. There were no significant fair value measurement impairments for 2017 or 2016 . Contingent consideration liabilities or receivables recorded in connection with business acquisitions must also be adjusted for changes in fair value until settled. |
Derivative Financial Instruments | The Company accounts for derivative financial instruments in accordance with FASB ASC Topic 815, Derivatives and Hedging. During 2018, the Company used interest rate swaps to engage in hedging activities relating to its investment in foreign denominated operations and to changes in fair value of its foreign currency denominated debt. The Company designated these interest rate swaps as net investment hedges and a fair value hedge, respectively. During 2017 and 2016 , the Company engaged in hedging activities relating to its variable-rate debt through the use of interest rate swaps. The Company designated these interest rate swaps as cash flow hedges. The estimated fair values of the derivative instruments are determined using Level 2-type measurements. They are recorded as an asset or liability of the Company and are included in the accompanying Consolidated Balance Sheets in prepaid expenses and other current assets, other non-current assets, accounts payable and accrued liabilities, or other long-term liabilities, as appropriate, and as a component of accumulated other comprehensive earnings, net of deferred taxes, for all derivative instruments except the fair value hedge, which is recorded as an adjustment to long-term debt. A portion of the amount included in accumulated other comprehensive earnings for the cash flow hedges is recorded in interest expense as a yield adjustment as interest payments are made on the Company’s Revolving Credit Facility (see Note 10). The Company also utilizes non-derivative net investment hedges in order to reduce the volatility of the net investment value of its foreign currency denominated operations. The change in fair value of the net investment hedges due to remeasurement of the effective portion, net of tax, is recorded in other comprehensive income (loss). The ineffective portion of these hedging instruments impacts net income when the ineffectiveness occurs. We also have used currency forward contracts to manage our exposure to fluctuations in costs caused by variations in Indian Rupee ("INR") exchange rates, however, we terminated those contracts in 2017. These INR forward contracts were designated as cash flow hedges. The fair value of these currency forward contracts was determined using currency exchange market rates, obtained from reliable, independent, third party banks, at the balance sheet date. The fair value of forward contracts was subject to changes in currency exchange rates. The Company had no ineffectiveness related to its use of currency forward contracts in connection with INR cash flow hedges. In September 2015, the Company entered into treasury lock hedges with a total notional amount of $1.0 billion , reducing the risk of changes in the benchmark index component of the 10-year treasury yield. The Company designated these derivatives as cash flow hedges. On October 13, 2015, in conjunction with the pricing of the $4.5 billion senior notes, the Company terminated these treasury lock contracts for a cash settlement payment of $16 million , which was recorded as a component of Other Comprehensive Earnings and will be reclassified as an adjustment to interest expense over the 10 years during which the related interest payments that were hedged will be recognized in income. |
Trade Receivables | The company records allowance for doubtful accounts when it is probable that a trade receivable balance will not be collected. The Company writes-off a trade receivable balance when the likelihood of collection is considered remote. |
Settlement Deposits, Receivables and Payables | We manage certain integrated electronic payment services and programs and wealth management processes for our clients that require us to hold and manage client cash balances used to fund their daily settlement activity. Settlement deposits represent funds we hold that were drawn from our clients to facilitate settlement activities. Settlement receivables represent amounts funded by us. Settlement payables consist of settlement deposits from clients, settlement payables to third parties and outstanding checks related to our settlement activities for which the right of offset does not exist or we do not intend to exercise our right of offset. Our accounting policy for such outstanding checks is to include them in settlement payables on the Consolidated Balance Sheets and operating cash flows on the Consolidated Statements of Cash Flows. The payment solution services that give rise to these settlement balances are separate and distinct from those settlement activities referred to under (b) Cash and Cash Equivalents , where the services we provide primarily facilitate the movement of funds. |
Goodwill | Goodwill represents the excess of cost over the fair value of identifiable assets acquired and liabilities assumed in business combinations. FASB ASC Topic 350, Intangibles - Goodwill and Other, requires that goodwill and other intangible assets with indefinite useful lives not be amortized, but rather be tested for impairment annually, or more frequently if circumstances indicate potential impairment. The guidance allows an entity first to assess qualitatively whether it is more likely than not that a reporting unit's carrying amount exceeds its fair value, referred to as "step zero." If an entity concludes that it is more likely than not that a reporting unit's fair value is less than its carrying amount (that is, a likelihood of more than 50 percent), the "step one" quantitative assessment must be performed for that reporting unit. FASB ASC Topic 350 provides examples of events and circumstances that should be considered in performing the step zero qualitative assessment, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, events affecting a reporting unit or the entity as a whole and a sustained decrease in share price. In applying the quantitative analysis, we determine the fair value of our reporting units based on a weighted average of multiple valuation techniques, principally a combination of an income approach and a market approach, which are Level 3- and Level 2-type measurements. The income approach calculates a value based upon the present value of estimated future cash flows, while the market approach uses earnings multiples of similarly situated guideline public companies. If the fair value of a reporting unit exceeds the carrying value of the reporting unit’s net assets, goodwill is not impaired and further testing is not required. The Company assesses goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. For each of 2018 , 2017 , and 2016 , we began our assessment with the step zero qualitative assessment. In performing the step zero qualitative assessment for each year, examining those factors most likely to affect our valuations, we concluded that it remained more likely than not that the fair value of each of our reporting units continued to exceed their carrying amounts. Consequently, we did not perform a step one quantitative assessment specifically for the purpose of our annual impairment test in any year presented in these financial statements. |
Long-Lived Assets | Long-lived assets and intangible assets with finite useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset, which are Level 3-type measurements. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Intangible Assets | The Company has intangible assets that consist primarily of customer relationships and trademarks that are recorded in connection with acquisitions at their fair value based on the results of valuation analyses. Customer relationships are amortized over their estimated useful lives using an accelerated method that takes into consideration expected customer attrition rates up to a 10 -year period. Trademarks determined to have indefinite lives are not amortized. Trademarks with finite lives are amortized over periods ranging up to 5 years . Intangible assets with finite lives (principally customer relationships and certain trademarks) are reviewed for impairment in accordance with FASB ASC Subtopic 360-10-35, Impairment or Disposal of Long-Lived Assets , while certain trademarks determined to have indefinite lives are reviewed for impairment at least annually in accordance with FASB ASC Topic 350. Similar to the guidance for goodwill, ASC Topic 350 allows an organization to first perform a qualitative assessment of whether it is more likely than not that an indefinite-lived intangible asset has been impaired. The Company assesses indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. For 2016, we engaged independent specialists to perform a valuation of our indefinite-lived intangible assets, using a form of income approach valuation known as the relief-from-royalty method, which is a Level 3-type measurement. There was substantial excess of fair value over carrying value for our indefinite-lived intangible assets in the 2016 independent valuations. Based upon this quantitative assessment performed, there was no impairment for 2016. For each of 2018 and 2017 , we performed a qualitative assessment examining those factors most likely to affect our valuations and concluded that it remained more likely than not that our indefinite-lived intangible assets were not impaired. Consequently, we did not perform a quantitative impairment assessment specifically for the purpose of our annual impairment tests for 2018 and 2017. |
Computer Software | Computer software includes software acquired in business combinations, purchased software and capitalized software development costs. Software acquired in business combinations is generally valued using the relief-from-royalty method, a Level 3-type measurement. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life and software acquired in business combinations is recorded at its fair value and amortized using straight-line or accelerated methods over its estimated useful life, ranging from three to 10 years. The capitalization of software development costs is governed by FASB ASC Subtopic 985-20 if the software is to be sold, leased or otherwise marketed, or by FASB ASC Subtopic 350-40 if the software is for internal use. After the technological feasibility of the software has been established (for software to be marketed) or at the beginning of application development (for internal-use software), software development costs, which primarily include salaries and related payroll costs and costs of independent contractors incurred during development, are capitalized. Research and development costs incurred prior to the establishment of technological feasibility (for software to be marketed) or prior to application development (for internal-use software), are expensed as incurred. Software development costs are amortized on a product-by-product basis commencing on the date of general release (for software to be marketed) or the date placed in service (for internal-use software). Software development costs for software to be marketed are amortized using the greater of (1) the straight-line method over its estimated useful life, which ranges from three to 10 years, or (2) the ratio of current revenues to total anticipated revenues over its useful life. |
Deferred Contract Costs | The Company incurs costs as a result of both the origination and fulfillment of our contracts with customers. Origination costs relate primarily to the payment of sales commissions that are directly related to sales transactions. Fulfillment costs include the cost of implementation services related to software as a service ("SaaS") and other cloud-based arrangements when the implementation service is not distinct from the ongoing service. When origination costs and fulfillment costs that will be used to satisfy future performance obligations are directly related to the execution of our contracts with customers, and the costs are recoverable under the contract, the costs are capitalized as a deferred contract cost. Impairment losses are recognized if the carrying amounts of the deferred contract costs are not recoverable. There were no significant impairment losses recognized on deferred contract costs for 2018, 2017, or 2016. Origination costs for contracts that contain a distinct software license recognized at a point in time are allocated between the license and all other performance obligations of the contract and amortized according to the pattern of performance for the respective obligations. Otherwise, origination costs are capitalized as a single asset for each contract and amortized using an appropriate single measure of performance considering all of the performance obligations in the contract. The Company amortizes origination costs over the expected benefit period to which the deferred contract cost relates. Origination costs related to initial contracts with a customer are amortized over the lesser of the useful life of the solution or the expected customer relationship period. Commissions paid on renewals are amortized over the renewal period. Capitalized fulfillment costs are amortized over the lesser of the useful life of the solution or the expected customer relationship period. |
Property and Equipment | Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed primarily using the straight-line method based on the estimated useful lives of the related assets as follows: 30 years for buildings and three to seven years for furniture, fixtures and computer equipment. Leasehold improvements are amortized using the straight-line method over the lesser of the initial term of the applicable lease or the estimated useful lives of such assets. |
Income Taxes | The Company recognizes deferred income tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and expected benefits of using net operating loss and credit carryforwards. Deferred income 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. The impact on deferred income taxes of changes in tax rates and laws, if any, is reflected in the Consolidated Financial Statements in the period enacted. A valuation allowance is established for any portion of a deferred income tax asset for which management believes it is more likely than not that the Company will not be able to realize the benefits of all or a portion of that deferred income tax asset. |
Revenue Recognition | The Company generates revenue in a number of ways, including from the delivery of account- or transaction-based processing, SaaS, business process as a service ("BPaaS"), cloud offerings, software licensing, software-related services and professional services. The Company enters into arrangements with customers to provide services, software and software-related services such as maintenance, implementation and training either individually or as part of an integrated offering of multiple services. At contract inception, the Company assesses the solutions and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a solution or service (or bundle of solutions or services) that is distinct - i.e., if a solution or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. To identify its performance obligations, the Company considers all of the solutions or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company recognizes revenue when or as it satisfies a performance obligation by transferring control of a solution or service to a customer. Revenue is measured based on the consideration that the Company expects to receive in a contract with a customer. The Company’s contracts with its customers frequently contain variable consideration. Variable consideration exists when the amount which the Company expects to receive in a contract is based on the occurrence or non-occurrence of future events, such as processing services performed under usage-based pricing arrangements or professional services billed on a time and materials basis. Variable consideration is also present in certain transactions in the form of discounts, credits, price concessions, penalties, and similar items. If the amount of a discount or rebate in a contract is fixed and not contingent, that discount or rebate is not variable consideration. The Company estimates variable consideration in its contracts primarily using the expected value method. In some contracts, the Company applies the most likely amount method by considering the single most likely amount in a limited range of possible consideration amounts. The Company develops estimates of variable consideration on the basis of both historical information and current trends. Variable consideration included in the transaction price is constrained such that a significant revenue reversal is not probable. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Postage costs associated with print and mail services are accounted for as a fulfillment cost and are included in cost of revenue. Technology or service components from third parties are frequently embedded in or combined with our applications or service offerings. We are often responsible for billing the client in these arrangements and transmitting the applicable fees to the third party. The Company determines whether it is responsible for providing the actual solution or service as a principal, or for arranging for the solution or service to be provided by the third party as an agent. Judgment is applied to determine whether we are the principal or the agent by evaluating whether the Company has control of the solution or service prior to it being transferred to the customer. The principal versus agent assessment is performed at the performance obligation level. Indicators that the Company considers in determining if it has control include whether the Company is primarily responsible for fulfilling the promise to provide the specified solution or service to the customer, the Company has inventory risk and the Company has discretion in establishing the price the customer ultimately pays for the solution or service. Depending upon the level of our contractual responsibilities and obligations for delivering solutions to end customers, we have arrangements where we are the principal and recognize the gross amount billed to the customer and other arrangements where we are the agent and recognize the net amount retained. Once the Company has determined the transaction price, the total transaction price is allocated to each performance obligation in a manner depicting the amount of consideration to which the Company expects to be entitled in exchange for transferring the solution(s) or service(s) to the customer (the "allocation objective"). If the allocation objective is met at contractual prices, no allocations are made. Otherwise, the Company allocates the transaction price to each performance obligation identified in the contract on a relative standalone selling price basis, except when the criteria are met for allocating variable consideration or a discount to one or more, but not all, performance obligations in the contract. The Company allocates variable consideration to one or more, but not all performance obligations when the terms of the variable payment relate specifically to the Company’s efforts to satisfy the performance obligation (or transfer the distinct solution or service) and when such allocation is consistent with the allocation objective when considering all performance obligations in the contract. Determining whether the criteria for allocating variable consideration to one or more, but not all, performance obligations in the contract requires significant judgment and may affect the timing and amount of revenue recognized. The Company does not typically meet the requirements to allocate discounts to one or more, but not all, performance obligations in a contract. In order to determine the standalone selling price of its promised solutions or services, the Company conducts a regular analysis to determine whether various solutions or services have an observable standalone selling price. If the Company does not have an observable standalone selling price for a particular solution or service, then standalone selling price for that particular solution or service is estimated using all information that is reasonably available and maximizing observable inputs with approaches including historical pricing, cost plus a margin, adjusted market assessment, and residual approach. The following describes the nature of the Company’s primary types of revenue and the revenue recognition policies and significant payment terms as they pertain to the types of transactions the Company enters into with its customers. Processing Services Revenue Processing services are primarily comprised of data processing and application management, including our SaaS, BPaaS and cloud offerings. Revenue from processing services are typically volume- or activity-based depending on factors such as the number of accounts processed, transactions or trades processed, users, number of hours of services or computer resources used. The payment terms may include tiered pricing structures with the base tier representing a minimum monthly usage fee. Pricing within the tiers typically resets on a monthly basis, and minimum monthly volumes are generally met or exceeded. Contract lengths for processing services typically span multiple years. Payment is generally due in advance or in arrears on a monthly or quarterly basis and may include fixed or variable payment amounts depending on the specific payment terms and activity in the period. For processing services revenue, the nature of the Company’s promise to the customer is to stand ready to provide continuous access to the Company’s processing platforms and perform an unspecified quantity of outsourced and transaction-processing services for a specified term or terms. Accordingly, processing services are generally viewed as a stand-ready performance obligation comprised of a series of distinct daily services. The Company typically satisfies its processing services performance obligations over time as the services are provided. A time-elapsed output method is used to measure progress because the Company’s efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. The Company has evaluated its variable payment terms related to its processing services revenue accounted for as a series of distinct days of service and concluded that they generally meet the criteria for allocating variable consideration entirely to one or more, but not all, performance obligations in a contract. Accordingly, when the criteria are met, variable amounts based on the number and type of services performed during a period are allocated to and recognized on the day in which the Company performs the related services. Fixed fees for processing services are generally recognized ratably over the contract period. License and Software Related Revenue The Company’s software licenses generally have significant stand-alone functionality to the customer upon delivery and are considered to be functional intellectual property ("IP"). Additionally, the nature of the Company’s promise in granting these software licenses to a customer is typically to provide the customer a right to use the Company’s intellectual property. The Company’s software licenses are generally considered distinct performance obligations, and revenue allocated to the software license is typically recognized at a point in time upon delivery of the license. In conjunction with software licenses, the Company commonly provides the customer with additional services such as maintenance as well as associated implementation and other professional services related to the software license. Payments for maintenance are typically due annually, quarterly, or monthly in advance. Maintenance is typically comprised of technical support and unspecified updates and upgrades. The Company generally satisfies these performance obligations evenly using a time-elapsed output method over the contract term given there is no discernible pattern of performance. When a software license contract also includes professional services that provide significant modification or customization of the software license, the Company combines the software license and professional services into a single performance obligation, and revenue for the combined performance obligation is recognized as the professional services are provided consistent with the methods described below for professional services revenue. The Company has contracts where the licensed software is offered in conjunction with hosting services. The licensed software may be considered a separate performance obligation from the hosting services if the customer can take possession of the software during the contractual term without incurring a significant penalty and if it is feasible for the customer to run the software on its own infrastructure or hire a third party to host the software. If the licensed software and hosting services are separately identifiable, license revenue is recognized when the hosting services commence and it is within the customer's control to obtain a copy of the software, and hosting revenue is recognized using the time-elapsed output method as the service is provided. If the software license is not separately identifiable from the hosting service, then the related revenue for the combined performance obligation is recognized ratably over the hosting period. Occasionally, the Company offers extended payment terms on its license transactions and evaluates whether any potential significant financing components exist. For certain of its business units, the Company will provide a software license through a rental model for customers who would prefer a periodic fee instead of a larger upfront payment. Revenue recognition under these arrangements follows the same recognition pattern as the arrangements outlined above; however, the customer generally pays for the software license and maintenance in monthly or quarterly installments as opposed to an upfront software license fee. Judgment is required to determine whether these arrangements contain a significant financing component. The Company evaluates whether there is a significant difference between the amount of promised consideration over the rental term and the cash selling price of the software license, and the overall impact of the time value of money on the transaction. Rental software license arrangements that include a significant financing component are adjusted for the time value of money at the Company’s incremental borrowing rate by recording a contract asset and interest income. The Company does not adjust the promised amount of consideration for the effects of the time value of money if it is expected, at contract inception, that the period between when the Company transfers a promised solution or service to a customer and when the customer pays for that solution or service will be one year or less. Professional Services Revenue Professional services revenue is comprised of implementation, conversion, and programming services associated with the Company’s data processing and application management agreements, implementation or installation services related to licensed software, and other consulting services. A significant portion of our professional services revenue is derived from contracts for dedicated personnel resources who are often working full-time at a client site and under the client's direction. This revenue generally re-occurs as contracts are renewed. Payment terms for professional services may be based on an upfront fixed fee, fixed upon the achievement of milestones, or on a time and materials basis. In assessing whether implementation services provided on data processing, application management or software agreements are a distinct performance obligation, the Company considers whether the services are both capable of being distinct (i.e., can the customer benefit from the services alone or in combination with other resources that are readily available to the customer) and distinct within the context of the contract (i.e., separately identifiable from the other performance obligations in the contract). Implementation services and other professional services are typically considered distinct performance obligations. However, when these services involve significant customization or modification of an underlying solution or offering, or if the services are complex and not available from a third-party provider and must be completed prior to a customer having the ability to benefit from a solution or offering, then such services and the underlying solution or offering will be accounted for as a combined performance obligation. The Company’s professional services that are accounted for as distinct performance obligations and that are billed on a fixed fee basis are typically satisfied as services are rendered; thus, the Company uses a cost-based input method, such as cost-to-cost or efforts expended (labor hours), to provide a faithful depiction of the transfer of those services. For professional services that are distinct and billed on a time and materials basis, revenue is generally recognized using an output method that corresponds with the time and materials billed and delivered, which is reflective of the transfer of the services to the customer. Professional services that are not distinct from an associated solution or offering are recognized over the common measure of progress for the overall performance obligation (typically a time-elapsed output measure that corresponds to the period over which the solution or offering is made available to the customer). Hardware and Other Revenue Hardware and other miscellaneous revenue is generally recognized at a point in time upon delivery. The Company typically does not stock in inventory the hardware solutions sold but arranges for delivery of hardware from third-party suppliers. The Company determines whether hardware delivered from third-party suppliers should be recognized on a gross or net basis by evaluating whether the Company has control of the solution or service prior to it being transferred to the customer. Material Rights Some of the Company’s contracts with customers include options for the customer to acquire additional solutions or services in the future, including options to renew existing services. Options may represent a material right to acquire solutions or services if the discount is incremental to the range of discounts typically given for those solutions or services to that class of customer in that geographical area or market, and the customer would not have obtained the option without entering into the contract. If deemed to be a material right, the Company will account for the material right as a separate performance obligation and determine the standalone selling price based on directly observable prices when available. If the standalone selling price is not directly observable, then the Company estimates the standalone selling price to be equal to the discount that the customer would obtain by exercising the option, as adjusted for any discount that the customer would receive without exercising the option and for the likelihood that the option will be exercised. |
Cost of Revenue and Selling, General and Administrative Expenses | Cost of revenue includes payroll, employee benefits, occupancy costs and other costs associated with personnel employed in customer service and service delivery roles, including program design and development and professional services. Cost of revenue also includes data processing costs, amortization of software and customer relationship intangible assets, and depreciation on operating assets. Selling, general and administrative expenses include payroll, employee benefits, occupancy and other costs associated with personnel employed in sales, marketing, human resources, finance, risk management and other administrative roles. Selling, general and administrative expenses also include depreciation on non-operating corporate assets, advertising costs and other marketing-related programs. |
Stock-Based Compensation Plans | The Company accounts for stock-based compensation plans using the fair value method. Thus, compensation cost is measured based on the fair value of the award at the grant date and is recognized over the service period. Certain of our stock awards also contain performance conditions. In those circumstances, compensation cost is recognized over the service period when it is probable the outcome of that performance condition will be achieved. If the Company concludes at any point prior to completion of the requisite service period that it is not probable that the performance condition will be met, any previously recorded expense would be reversed. Certain of our stock awards contain market conditions. In those circumstances, compensation cost is recognized over the service period and is not reversed even if the award does not become exercisable because the market condition is not achieved. |
Foreign Currency Translation | The functional currency for the foreign operations of the Company is either the U.S. Dollar or the local foreign currency. For foreign operations where the local currency is the functional currency, the translation into U.S. Dollars for consolidation is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using the average exchange rate during the period. The adjustments resulting from the translation are included in accumulated other comprehensive earnings (loss) in the Consolidated Statements of Equity and Consolidated Statements of Comprehensive Earnings and are excluded from net earnings. Gains or losses resulting from foreign currency transactions are included in other income (expense). |
Management Estimates | The preparation of these Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles 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 Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Net Earnings per Share | The basic weighted average shares and common stock equivalents for the years ended December 31, 2018 , 2017 and 2016 are computed using the treasury stock method. |
Certain Reclassifications | Certain reclassifications have been made in the 2017 and 2016 Consolidated Financial Statements to conform to the classifications used in 2018 . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Trade Receivables | A summary of trade receivables, net, as of December 31, 2018 and 2017 is as follows (in millions): 2018 2017 Trade receivables $ 1,489 $ 1,687 Allowance for doubtful accounts (17 ) (63 ) Total trade receivables, net $ 1,472 $ 1,624 |
Schedule of Allowance for Doubtful Accounts | A summary roll forward of the allowance for doubtful accounts for 2018 , 2017 and 2016 is as follows (in millions): Allowance for doubtful accounts as of December 31, 2015 $ (16 ) Bad debt expense (29 ) Write-offs, net of recoveries 4 Allowance for doubtful accounts as of December 31, 2016 (41 ) Bad debt expense (26 ) Write-offs, net of recoveries 4 Allowance for doubtful accounts as of December 31, 2017 (63 ) Bad debt expense (13 ) Write-offs, net of recoveries 59 Allowance for doubtful accounts as of December 31, 2018 $ (17 ) |
Schedule of Net Earnings Per Share | Net earnings and earnings per share for the years ended December 31, 2018 , 2017 and 2016 are as follows (in millions, except per share data): Year ended December 31, 2018 2017 2016 Earnings from continuing operations attributable to FIS, net of tax $ 846 $ 1,261 $ 524 Earnings (loss) from discontinued operations attributable to FIS, net of tax — — 1 Net earnings attributable to FIS common stockholders $ 846 $ 1,261 $ 525 Weighted average shares outstanding — basic 328 330 326 Plus: Common stock equivalent shares 4 6 4 Weighted average shares outstanding — diluted 332 336 330 Net earnings per share — basic from continuing operations attributable to FIS common stockholders $ 2.58 $ 3.82 $ 1.61 Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders — — — Net earnings per share — basic attributable to FIS common stockholders * $ 2.58 $ 3.82 $ 1.61 Net earnings per share — diluted from continuing operations attributable to FIS common stockholders $ 2.55 $ 3.75 $ 1.59 Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders — — — Net earnings per share — diluted attributable to FIS common stockholders * $ 2.55 $ 3.75 $ 1.59 * Amounts may not sum due to rounding. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the year ended December 31, 2018 (in millions): Reportable Segments Corporate IFS GFS and Other Total Primary Geographical Markets: North America $ 4,222 $ 1,808 $ 253 $ 6,283 All others 179 1,910 51 2,140 Total $ 4,401 $ 3,718 $ 304 $ 8,423 Type of Revenue: Processing and services $ 3,582 $ 2,095 $ 276 $ 5,953 License and software related 375 1,001 1 1,377 Professional services 170 603 9 782 Hardware and other 274 19 18 311 Total $ 4,401 $ 3,718 $ 304 $ 8,423 Recurring Nature of Revenue Recognized: Recurring fees $ 3,890 $ 2,718 $ 278 $ 6,886 Non-recurring fees 511 1,000 26 1,537 Total $ 4,401 $ 3,718 $ 304 $ 8,423 For the year ended December 31, 2017 (in millions): Reportable Segments Corporate IFS GFS and Other Total Primary Geographical Markets: North America $ 4,091 $ 1,899 $ 306 $ 6,296 All others 169 2,151 52 2,372 Total $ 4,260 $ 4,050 $ 358 $ 8,668 Type of Revenue: Processing and services $ 3,433 $ 2,206 $ 320 $ 5,959 License and software related 402 957 14 1,373 Professional services 195 896 13 1,104 Hardware and other 230 (9 ) 11 232 Total $ 4,260 $ 4,050 $ 358 $ 8,668 Recurring Nature of Revenue Recognized: Recurring fees $ 3,704 $ 2,809 $ 330 $ 6,843 Non-recurring fees 556 1,241 28 1,825 Total $ 4,260 $ 4,050 $ 358 $ 8,668 For the year ended December 31, 2016 (in millions): Reportable Segments Corporate IFS GFS and Other Total Primary Geographical Markets: North America $ 4,022 $ 1,889 $ 370 $ 6,281 All others 156 2,294 100 2,550 Total $ 4,178 $ 4,183 $ 470 $ 8,831 Type of Revenue: Processing and services $ 3,288 $ 2,163 $ 246 $ 5,697 License and software related 387 941 150 1,478 Professional services 286 1,080 57 1,423 Hardware and other 217 (1 ) 17 233 Total $ 4,178 $ 4,183 $ 470 $ 8,831 Recurring Nature of Revenue Recognized: Recurring fees $ 3,584 $ 2,778 $ 377 $ 6,739 Non-recurring fees 594 1,405 93 2,092 Total $ 4,178 $ 4,183 $ 470 $ 8,831 |
Contract Balances | The following table provides information about trade receivables, contract assets, and deferred revenues from contracts with customers (in millions). As of December 31, 2018 2017 2016 Trade receivables, net $ 1,472 $ 1,624 $ 1,550 Contract assets (current) 123 108 168 Contract assets (non-current), included in other noncurrent assets 91 118 135 Deferred revenue (current) 739 776 741 Deferred revenue (non-current) 67 106 58 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Land $ 31 $ 31 Buildings 235 228 Leasehold improvements 135 158 Computer equipment 1,047 1,073 Furniture, fixtures, and other equipment 197 167 1,645 1,657 Accumulated depreciation and amortization (1,058 ) (1,047 ) Total property and equipment, net $ 587 $ 610 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | Changes in goodwill during the years ended December 31, 2018 and 2017 are summarized as follows (in millions): IFS GFS Corporate & Other Total Balance, December 31, 2016 $ 7,676 $ 6,332 $ 170 $ 14,178 Goodwill distributed through sale of businesses (14 ) (473 ) — (487 ) Foreign currency adjustments — 39 — 39 Balance, December 31, 2017 7,662 5,898 170 13,730 Goodwill distributed through sale of businesses (14 ) (24 ) (43 ) (81 ) Brazilian Venture impairment — (25 ) — (25 ) Foreign currency adjustments — (79 ) — (79 ) Balance, December 31, 2018 $ 7,648 $ 5,770 $ 127 $ 13,545 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets as of December 31, 2018 consist of the following (in millions): Cost Accumulated Amortization Net Customer relationships and other $ 6,011 $ (2,944 ) $ 3,067 Finite-lived trademarks 68 (46 ) 22 Indefinite-lived trademarks 43 — 43 Total intangible assets, net $ 6,122 $ (2,990 ) $ 3,132 Intangible assets as of December 31, 2017 consist of the following (in millions): Cost Accumulated Amortization Net Customer relationships and other $ 6,220 $ (2,427 ) $ 3,793 Finite-lived trademarks 101 (57 ) 44 Indefinite-lived trademarks 48 — 48 Total intangible assets, net $ 6,369 $ (2,484 ) $ 3,885 Computer software as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Software from business acquisitions $ 1,116 $ 1,130 Capitalized software development costs 1,624 1,422 Purchased software 363 310 Computer software 3,103 2,862 Accumulated amortization (1,308 ) (1,134 ) Total computer software, net $ 1,795 $ 1,728 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets as of December 31, 2018 consist of the following (in millions): Cost Accumulated Amortization Net Customer relationships and other $ 6,011 $ (2,944 ) $ 3,067 Finite-lived trademarks 68 (46 ) 22 Indefinite-lived trademarks 43 — 43 Total intangible assets, net $ 6,122 $ (2,990 ) $ 3,132 Intangible assets as of December 31, 2017 consist of the following (in millions): Cost Accumulated Amortization Net Customer relationships and other $ 6,220 $ (2,427 ) $ 3,793 Finite-lived trademarks 101 (57 ) 44 Indefinite-lived trademarks 48 — 48 Total intangible assets, net $ 6,369 $ (2,484 ) $ 3,885 |
Schedule of Estimated Amortization of Intangibles | Estimated amortization of intangible assets for the next five years is as follows (in millions): 2019 $ 626 2020 458 2021 443 2022 426 2023 405 |
Computer Software (Tables)
Computer Software (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Research and Development [Abstract] | |
Computer Software | Intangible assets as of December 31, 2018 consist of the following (in millions): Cost Accumulated Amortization Net Customer relationships and other $ 6,011 $ (2,944 ) $ 3,067 Finite-lived trademarks 68 (46 ) 22 Indefinite-lived trademarks 43 — 43 Total intangible assets, net $ 6,122 $ (2,990 ) $ 3,132 Intangible assets as of December 31, 2017 consist of the following (in millions): Cost Accumulated Amortization Net Customer relationships and other $ 6,220 $ (2,427 ) $ 3,793 Finite-lived trademarks 101 (57 ) 44 Indefinite-lived trademarks 48 — 48 Total intangible assets, net $ 6,369 $ (2,484 ) $ 3,885 Computer software as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Software from business acquisitions $ 1,116 $ 1,130 Capitalized software development costs 1,624 1,422 Purchased software 363 310 Computer software 3,103 2,862 Accumulated amortization (1,308 ) (1,134 ) Total computer software, net $ 1,795 $ 1,728 |
Deferred Contract Costs (Tables
Deferred Contract Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capitalized Contract Cost [Abstract] | |
Schedule of Deferred Contract Costs | Origination and fulfillment costs from contracts with customers capitalized as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Contract costs on implementations in progress $ 93 $ 104 Incremental contract origination costs on completed implementations, net 219 127 Contract fulfillment costs on completed implementations, net 163 123 Total deferred contract costs, net $ 475 $ 354 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Salaries and incentives $ 218 $ 265 Accrued benefits and payroll taxes 66 71 Trade accounts payable and other accrued liabilities 687 776 Accrued interest payable 71 70 Taxes other than income tax 57 59 Total accounts payable and accrued liabilities $ 1,099 $ 1,241 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Long-term debt as of December 31, 2018 and 2017 consists of the following (in millions): 2018 2017 Senior Notes due April 2018, interest payable semi-annually at 2.000% (1) $ — $ 250 Senior Notes due October 2018, interest payable semi-annually at 2.850% — 750 Senior Notes due October 2020, interest payable semi-annually at 3.625% ("2020 Notes") 1,150 1,150 Senior Euro Notes due January 2021, interest payable annually at 0.400% ("2021 Euro Notes") 572 599 Senior Notes due August 2021, interest payable semi-annually at 2.250% ("2021 Notes") 750 750 Senior GBP Notes due June 2022, interest payable annually at 1.700% ("2022 GBP Notes") 382 405 Senior Notes due October 2022, interest payable semi-annually at 4.500% ("2022 Notes") 300 300 Senior Notes due April 2023, interest payable semi-annually at 3.500% ("2023 Notes") 700 700 Senior Notes due June 2024, interest payable semi-annually at 3.875% ("2024 Notes") 400 400 Senior Euro Notes due July 2024, interest payable annually at 1.100% ("2024 Euro Notes") 572 599 Senior Notes due October 2025, interest payable semi-annually at 5.000% ("2025 Notes") 900 900 Senior Notes due August 2026, interest payable semi-annually at 3.000% ("2026 Notes") 1,250 1,250 Senior Notes due May 2028, interest payable semi-annually at 4.250% ("2028 Notes") 400 — Senior Notes due August 2046, interest payable semi-annually at 4.500% ("2046 Notes") 500 500 Senior Notes due May 2048, interest payable semi-annually at 4.750% ("2048 Notes") 600 — Revolving Credit Facility (2) 208 195 Other 34 15 8,718 8,763 Current portion of long-term debt (48 ) (1,045 ) Long-term debt, excluding current portion $ 8,670 $ 7,718 __________________________________________ (1) These Senior Notes were repaid on April 13, 2018 with borrowings on the Revolving Credit Facility. (2) Interest on the Revolving Credit Facility is generally payable at LIBOR plus an applicable margin of up to 1.625% plus an unused commitment fee of up to 0.225% , each based upon the Company's corporate credit ratings. As of December 31, 2018 , the weighted-average interest rate on the Revolving Credit Facility, excluding fees, was 3.65% . |
Schedule of Principal Maturities of Debt | The following summarizes the aggregate maturities of our long-term debt, capital leases, and other financing obligations based on stated contractual maturities, excluding net unamortized non-cash bond premiums and discounts of $40 million as of December 31, 2018 (in millions): Total 2019 $ 48 2020 1,193 2021 1,363 2022 682 2023 908 Thereafter 4,622 Total principal payments 8,816 Debt issuance costs, net of accumulated amortization (58 ) Total long-term debt $ 8,758 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Total income tax expense for the years ended December 31, 2018 , 2017 and 2016 is allocated as follows (in millions): 2018 2017 2016 Tax expense (benefit) per statement of earnings $ 208 $ (321 ) $ 291 Tax expense (benefit) attributable to discontinued operations (1 ) — 1 Unrealized (loss) gain on foreign currency translation — — 30 Other components of other comprehensive income 1 (11 ) 1 Total income tax expense (benefit) allocated to other comprehensive income 1 (11 ) 31 Tax benefit from exercise of stock options — — (32 ) Total income tax expense (benefit) $ 208 $ (332 ) $ 291 Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2018 , 2017 and 2016 consists of the following (in millions): 2018 2017 2016 Current provision: Federal $ 169 $ 476 $ 308 State 50 81 54 Foreign 105 127 131 Total current provision $ 324 $ 684 $ 493 Deferred provision (benefit): Federal $ (95 ) $ (979 ) $ (171 ) State (11 ) (24 ) (14 ) Foreign (10 ) (2 ) (17 ) Total deferred provision (116 ) (1,005 ) (202 ) Total provision for income taxes $ 208 $ (321 ) $ 291 |
Schedule of Pre-tax Income from Continuing Operations | The provision for income taxes is based on pre-tax income from continuing operations, which is as follows for the years ended December 31, 2018 , 2017 and 2016 (in millions): 2018 2017 2016 United States $ 744 $ 530 $ 503 Foreign 360 446 334 Total $ 1,104 $ 976 $ 837 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2018 , 2017 and 2016 is as follows: 2018 2017 2016 Federal statutory income tax rate 21.0 % 35.0 % 35.0 % State income taxes 3.0 2.4 2.9 Federal benefit of state taxes (0.6 ) (0.8 ) (1.0 ) Foreign rate differential — (5.1 ) (3.1 ) Tax benefit from stock-based compensation (5.2 ) (6.7 ) — Book basis in excess of tax basis for dispositions 3.0 18.5 — Tax Cuts and Jobs Act of 2017 — (73.1 ) — Foreign-derived intangible income deduction (1.8 ) — — Other (0.6 ) (3.1 ) 1.0 Effective income tax rate 18.8 % (32.9 )% 34.8 % |
Schedule of Deferred Income Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities as of December 31, 2018 and 2017 consist of the following (in millions): 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 108 $ 130 Employee benefit accruals 58 69 Other deferred tax assets 105 128 Total gross deferred income tax assets 271 327 Less valuation allowance (116 ) (129 ) Total deferred income tax assets 155 198 Deferred income tax liabilities: Amortization of goodwill and intangible assets 1,291 1,452 Deferred contract costs 109 94 Other deferred tax liabilities 83 90 Total deferred income tax liabilities 1,483 1,636 Net deferred income tax liability $ 1,328 $ 1,438 Deferred income taxes are classified in the Consolidated Balance Sheets as of December 31, 2018 and 2017 as follows (in millions): 2018 2017 Noncurrent assets (included in other noncurrent assets) $ 32 $ 30 Total deferred income tax assets 32 30 Noncurrent liabilities (1,360 ) (1,468 ) Total deferred income tax liabilities (1,360 ) (1,468 ) Net deferred income tax liability $ (1,328 ) $ (1,438 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table reconciles the gross amounts of unrecognized tax benefits at the beginning and end of the period (in millions): Gross Amount Amounts of unrecognized tax benefits as of January 1, 2017 $ 87 Amount of decreases due to lapse of the applicable statute of limitations (12 ) Amount of decreases due to settlements (19 ) Increases as a result of tax positions taken in the current period 5 Increases as a result of tax positions taken in a prior period 14 Amount of unrecognized tax benefit as of December 31, 2017 75 Amount of decreases due to lapse of the applicable statute of limitations (4 ) Amount of decreases due to settlements (12 ) Increases as a result of tax positions taken in the current period 1 Increases as a result of tax positions taken in a prior period 1 Amount of unrecognized tax benefit as of December 31, 2018 $ 61 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Operating Lease Payments for Leases | Future minimum operating lease payments for each of the years in the five years ending December 31, 2023, and thereafter, in the aggregate, are as follows (in millions): 2019 $ 121 2020 104 2021 80 2022 51 2023 38 Thereafter 86 Total $ 480 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Options Granted | A summary of the stock options granted (all of which vest over three years and, for the 2017 and 2016 grants, are also subject to performance-based vesting criteria), o utstanding and shares available for grant under the FIS Restated Plan follows (in millions): FIS Restated Plan Available for grant as of December 31, 2016 21 Granted in 2017 4 Outstanding as of December 31, 2017 15 Available for grant as of December 31, 2017 17 Granted in 2018 1 Outstanding as of December 31, 2018 10 Available for grant as of December 31, 2018 15 |
Schedule of Stock Option Activity | The following schedule summarizes the stock option activity for the years ended December 31, 2018 , 2017 and 2016 (in millions except for per share amounts): Shares Weighted Average Exercise Price Balance, December 31, 2015 16 $ 47.19 Granted 5 63.58 Exercised (3 ) 36.15 Cancelled (1 ) 62.25 Balance, December 31, 2016 17 53.21 Granted 4 80.05 Exercised (5 ) 44.75 Cancelled (1 ) 70.50 Balance, December 31, 2017 15 61.97 Granted 1 96.49 Exercised (5 ) 54.19 Cancelled (1 ) 74.76 Balance, December 31, 2018 10 70.03 |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information related to stock options outstanding and exercisable as of December 31, 2018 : Outstanding Options Exercisable Options Range of Exercise Price Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Intrinsic Value as of December 31, 2018 (a) Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Intrinsic Value as of December 31, 2018 (a) (In millions) (In millions) (In millions) (In millions) $ 0.00 - $ 59.91 3 2.23 $ 52.50 $ 136 3 2.23 $ 52.49 $ 136 $ 59.92 - $ 62.92 2 4.15 62.92 75 1 4.08 62.92 44 $ 62.93 - $ 66.62 1 3.62 65.73 51 1 3.52 65.56 35 $ 66.63 - $ 80.03 3 5.06 80.00 66 1 4.69 79.97 21 $ 80.04 - $ 102.55 1 6.23 96.24 9 — 3.51 91.68 — $ 102.56 - $ 107.45 — 6.73 104.75 — — 0.00 — — $ 0.00 - $ 107.45 10 4.10 70.03 $ 337 6 3.21 61.26 $ 236 (a) Intrinsic value is based on a closing stock price as of December 31, 2018 of $102.55 . |
Schedule of Stock Option Valuation Assumptions | The weighted average fair value of options granted during the years ended December 31, 2018 , 2017 and 2016 was estimated to be $16.07 , $12.78 and $9.35 , respectively, using the Black-Scholes option pricing model with the assumptions below: 2018 2017 2016 Risk free interest rate 2.5 % 1.8 % 1.2 % Volatility 19.2 % 20.1 % 20.4 % Dividend yield 1.3 % 1.4 % 1.6 % Weighted average expected life (years) 4.2 4.2 4.2 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | A summary of the Company’s related party receivables and payables is as follows (in millions): December 31, Related Party Balance Sheet Location 2018 2017 Banco Bradesco Trade receivables $ — $ 47 Banco Bradesco Contract assets — 5 Banco Bradesco Accounts payable and accrued liabilities — 10 Banco Bradesco Other long-term liabilities — 17 |
Components of Other Comprehen_2
Components of Other Comprehensive Earnings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Earnings | The following table shows accumulated other comprehensive earnings attributable to FIS by component, net of tax, for the year ended December 31, 2018 (in millions): Foreign Currency Translation Adjustments Other (1) Total Balances, December 31, 2017 $ (289 ) $ (43 ) $ (332 ) Other comprehensive gain (loss) before reclassifications (102 ) 4 (98 ) Balances, December 31, 2018 $ (391 ) $ (39 ) $ (430 ) (1) Includes the minimum pension liability adjustment and the cash settlement payment on treasury lock contracts associated with bridge financing for the SunGard acquisition. This amount will be amortized as an adjustment to interest expense over the 10 years in which the related interest payments that were hedged are recognized in income. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for the Company's Segments | Summarized financial information for the Company’s segments is shown in the following tables. As of and for the year ended December 31, 2018 (in millions): IFS GFS Corporate and Other Total Revenue $ 4,401 $ 3,718 $ 304 $ 8,423 Operating expenses 2,788 2,611 1,566 6,965 Depreciation and amortization 349 284 787 1,420 EBITDA 1,962 1,391 (475 ) 2,878 Acquisition deferred revenue adjustment — — 4 4 Acquisition, integration and other costs — — 156 156 Asset impairments — — 95 95 Adjusted EBITDA $ 1,962 $ 1,391 $ (220 ) $ 3,133 EBITDA $ 2,878 Interest expense, net 297 Depreciation and amortization 1,420 Other income (expense) unallocated (72 ) Provision (benefit) for income taxes 208 Net earnings attributable to noncontrolling interest 35 Net earnings attributable to FIS common stockholders $ 846 Capital expenditures (1) $ 385 $ 306 $ 22 $ 713 Total assets $ 10,940 $ 8,123 $ 4,707 $ 23,770 Goodwill $ 7,648 $ 5,770 $ 127 $ 13,545 (1) Capital expenditures include $91 million in capital leases and other financing obligations. As of and for the year ended December 31, 2017 (in millions): IFS GFS Corporate and Other Total Revenue $ 4,260 $ 4,050 $ 358 $ 8,668 Operating expenses 2,692 2,990 1,554 7,236 Depreciation and amortization 306 263 798 1,367 EBITDA 1,874 1,323 (398 ) 2,799 Acquisition deferred revenue adjustment — — 7 7 Acquisition, integration and other costs — — 178 178 Adjusted EBITDA $ 1,874 $ 1,323 $ (213 ) $ 2,984 EBITDA $ 2,799 Interest expense, net 337 Depreciation and amortization 1,367 Other income (expense) unallocated (122 ) Provision (benefit) for income taxes (321 ) Net earnings attributable to noncontrolling interest 33 Net earnings attributable to FIS common stockholders $ 1,261 Capital expenditures (1) $ 374 $ 301 $ 22 $ 697 Total assets $ 10,663 $ 8,437 $ 5,424 $ 24,524 Goodwill $ 7,662 $ 5,898 $ 170 $ 13,730 (1) Capital expenditures include $84 million in capital leases and other financing obligations. As of and for the year ended December 31, 2016 (in millions): IFS GFS Corporate and Other Total Revenue $ 4,178 $ 4,183 $ 470 $ 8,831 Operating expenses 2,649 3,219 1,734 7,602 Depreciation and amortization 263 247 643 1,153 EBITDA 1,792 1,211 (621 ) 2,382 Acquisition deferred revenue adjustment — — 192 192 Acquisition, integration and other costs — — 281 281 Adjusted EBITDA $ 1,792 $ 1,211 $ (148 ) 2,855 EBITDA $ 2,382 Interest expense, net 383 Depreciation and amortization 1,153 Other income (expense) unallocated (9 ) Provision (benefit) for income taxes 291 Net earnings (loss) from discontinued operations 1 Net earnings attributable to noncontrolling interest 22 Net earnings attributable to FIS common stockholders $ 525 Capital expenditures (1) $ 294 $ 317 $ 48 $ 659 Total assets $ 10,231 $ 9,106 $ 6,683 $ 26,020 Goodwill $ 7,676 $ 6,332 $ 170 $ 14,178 (1) Capital expenditures include $43 million in capital leases and other financing obligations. |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Millions | Oct. 13, 2015 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Cash and cash equivalents | $ 703,000,000 | $ 665,000,000 | $ 683,000,000 | $ 682,000,000 | |||
Fair value of long-term debt | 140,000,000 | 156,000,000 | |||||
Asset impairments | 95,000,000 | $ 0 | $ 0 | ||||
Goodwill, impairment loss | $ 25,000,000 | ||||||
Senior notes | $ 4,500,000,000 | ||||||
Purchase of common shares (in shares) | 1 | 4 | 3 | ||||
Buildings | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Fixed asset, estimated useful life | 30 years | ||||||
Minimum | Furniture and fixture | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Fixed asset, estimated useful life | 3 years | ||||||
Minimum | Computer equipment | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Fixed asset, estimated useful life | 3 years | ||||||
Maximum | Furniture and fixture | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Fixed asset, estimated useful life | 7 years | ||||||
Maximum | Computer equipment | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Fixed asset, estimated useful life | 7 years | ||||||
Customer relationships | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Intangible assets, estimated useful lives | 10 years | ||||||
Trademarks | Maximum | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Intangible assets, estimated useful lives | 5 years | ||||||
Computer software | Minimum | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Intangible assets, estimated useful lives | 3 years | ||||||
Computer software | Maximum | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Intangible assets, estimated useful lives | 10 years | ||||||
Internally developed software | Minimum | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Intangible assets, estimated useful lives | 3 years | ||||||
Internally developed software | Maximum | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Intangible assets, estimated useful lives | 10 years | ||||||
Treasury lock hedge | Cash Flow Hedge | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Derivative, notional amount | $ 1,000,000,000 | ||||||
Settlement of derivative contract | $ 16,000,000 | ||||||
Interest expense recognition period | 10 years | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Brazilian Venture | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Asset impairments | $ 95,000,000 | ||||||
Impairment of intangible assets | 42,000,000 | ||||||
Goodwill, impairment loss | 25,000,000 | ||||||
Impairment of assets held for sale | $ 28,000,000 | ||||||
Foreign Entities | |||||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||||
Cash and cash equivalents | $ 340,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Trade Receivable) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of trade receivables, net | ||||
Trade receivables | $ 1,489 | $ 1,687 | ||
Allowance for doubtful accounts | (17) | (63) | $ (41) | $ (16) |
Total trade receivables, net | $ 1,472 | $ 1,624 | $ 1,550 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Roll Forward of the Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts beginning | $ (63) | $ (41) | $ (16) |
Bad debt expense | (13) | (26) | (29) |
Write-offs, net of recoveries | 59 | 4 | 4 |
Allowance for doubtful accounts ending | $ (17) | $ (63) | $ (41) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Schedule of Net Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net Earnings per Share | ||||
Earnings from continuing operations attributable to FIS, net of tax | $ 846 | $ 1,261 | $ 524 | |
Earnings (loss) from discontinued operations attributable to FIS, net of tax | 0 | 0 | 1 | |
Net earnings attributable to FIS common stockholders | $ 846 | $ 1,261 | $ 525 | |
Weighted average shares outstanding — basic (in shares) | 328 | 330 | 326 | |
Plus: Common stock equivalent shares (in shares) | 4 | 6 | 4 | |
Weighted average shares outstanding — diluted (in shares) | 332 | 336 | 330 | |
Net earnings per share — basic from continuing operations attributable to FIS common stockholders (in dollars per share) | $ 2.58 | $ 3.82 | $ 1.61 | |
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders (in dollars per share) | 0 | 0 | 0 | |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | [1] | 2.58 | 3.82 | 1.61 |
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders (in dollars per share) | 2.55 | 3.75 | 1.59 | |
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders (in dollars per share) | 0 | 0 | 0 | |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | [1] | $ 2.55 | $ 3.75 | $ 1.59 |
[1] | Amounts may not sum due to rounding. |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue | |||
Revenues | $ 8,423 | $ 8,668 | $ 8,831 |
Recurring fees | |||
Disaggregation of Revenue | |||
Revenues | 6,886 | 6,843 | 6,739 |
Non-recurring fees | |||
Disaggregation of Revenue | |||
Revenues | 1,537 | 1,825 | 2,092 |
Processing and services | |||
Disaggregation of Revenue | |||
Revenues | 5,953 | 5,959 | 5,697 |
License and software related | |||
Disaggregation of Revenue | |||
Revenues | 1,377 | 1,373 | 1,478 |
Professional services | |||
Disaggregation of Revenue | |||
Revenues | 782 | 1,104 | 1,423 |
Hardware and other | |||
Disaggregation of Revenue | |||
Revenues | 311 | 232 | 233 |
Corporate and Other | |||
Disaggregation of Revenue | |||
Revenues | 304 | 358 | 470 |
Corporate and Other | Recurring fees | |||
Disaggregation of Revenue | |||
Revenues | 278 | 330 | 377 |
Corporate and Other | Non-recurring fees | |||
Disaggregation of Revenue | |||
Revenues | 26 | 28 | 93 |
Corporate and Other | Processing and services | |||
Disaggregation of Revenue | |||
Revenues | 276 | 320 | 246 |
Corporate and Other | License and software related | |||
Disaggregation of Revenue | |||
Revenues | 1 | 14 | 150 |
Corporate and Other | Professional services | |||
Disaggregation of Revenue | |||
Revenues | 9 | 13 | 57 |
Corporate and Other | Hardware and other | |||
Disaggregation of Revenue | |||
Revenues | 18 | 11 | 17 |
North America | |||
Disaggregation of Revenue | |||
Revenues | 6,283 | 6,296 | 6,281 |
North America | Corporate and Other | |||
Disaggregation of Revenue | |||
Revenues | 253 | 306 | 370 |
All others | |||
Disaggregation of Revenue | |||
Revenues | 2,140 | 2,372 | 2,550 |
All others | Corporate and Other | |||
Disaggregation of Revenue | |||
Revenues | 51 | 52 | 100 |
Operating Segments | |||
Disaggregation of Revenue | |||
Revenues | 8,423 | 8,668 | 8,831 |
Operating Segments | IFS | |||
Disaggregation of Revenue | |||
Revenues | 4,401 | 4,260 | 4,178 |
Operating Segments | IFS | Recurring fees | |||
Disaggregation of Revenue | |||
Revenues | 3,890 | 3,704 | 3,584 |
Operating Segments | IFS | Non-recurring fees | |||
Disaggregation of Revenue | |||
Revenues | 511 | 556 | 594 |
Operating Segments | IFS | Processing and services | |||
Disaggregation of Revenue | |||
Revenues | 3,582 | 3,433 | 3,288 |
Operating Segments | IFS | License and software related | |||
Disaggregation of Revenue | |||
Revenues | 375 | 402 | 387 |
Operating Segments | IFS | Professional services | |||
Disaggregation of Revenue | |||
Revenues | 170 | 195 | 286 |
Operating Segments | IFS | Hardware and other | |||
Disaggregation of Revenue | |||
Revenues | 274 | 230 | 217 |
Operating Segments | GFS | |||
Disaggregation of Revenue | |||
Revenues | 3,718 | 4,050 | 4,183 |
Operating Segments | GFS | Recurring fees | |||
Disaggregation of Revenue | |||
Revenues | 2,718 | 2,809 | 2,778 |
Operating Segments | GFS | Non-recurring fees | |||
Disaggregation of Revenue | |||
Revenues | 1,000 | 1,241 | 1,405 |
Operating Segments | GFS | Processing and services | |||
Disaggregation of Revenue | |||
Revenues | 2,095 | 2,206 | 2,163 |
Operating Segments | GFS | License and software related | |||
Disaggregation of Revenue | |||
Revenues | 1,001 | 957 | 941 |
Operating Segments | GFS | Professional services | |||
Disaggregation of Revenue | |||
Revenues | 603 | 896 | 1,080 |
Operating Segments | GFS | Hardware and other | |||
Disaggregation of Revenue | |||
Revenues | 19 | (9) | (1) |
Operating Segments | Corporate and Other | |||
Disaggregation of Revenue | |||
Revenues | 304 | 358 | 470 |
Operating Segments | North America | IFS | |||
Disaggregation of Revenue | |||
Revenues | 4,222 | 4,091 | 4,022 |
Operating Segments | North America | GFS | |||
Disaggregation of Revenue | |||
Revenues | 1,808 | 1,899 | 1,889 |
Operating Segments | All others | IFS | |||
Disaggregation of Revenue | |||
Revenues | 179 | 169 | 156 |
Operating Segments | All others | GFS | |||
Disaggregation of Revenue | |||
Revenues | $ 1,910 | $ 2,151 | $ 2,294 |
Revenue (Contract Balances) (De
Revenue (Contract Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables, net | $ 1,472 | $ 1,624 | $ 1,550 |
Contract assets (current) | 123 | 108 | 168 |
Contract assets (non-current), included in other noncurrent assets | 91 | 118 | 135 |
Deferred revenue (current) | 739 | 776 | 741 |
Deferred revenue (non-current) | $ 67 | $ 106 | $ 58 |
Revenue (Narratives) (Details)
Revenue (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition | |||
Deferred revenue | $ 67 | $ 106 | $ 58 |
Remaining revenue recognition | 740 | 741 | $ 718 |
Remaining performance obligation | $ 20,500 | ||
Adjustments | ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition | |||
Contract assets | 2 | ||
Deferred revenue | $ 105 |
Revenue (Transaction Price Allo
Revenue (Transaction Price Allocated to Remaining Performance Obligation) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 35.00% |
Performance obligations expected to be satisfied, expected timing | P1Y |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 25.00% |
Performance obligations expected to be satisfied, expected timing | P1Y |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Capital lease and other financing obligations incurred | $ 91 | $ 84 | $ 43 |
Depreciation and amortization | 1,420 | 1,366 | 1,153 |
Property plant and equipment including that recorded under capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 184 | $ 180 | $ 185 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,645 | $ 1,657 |
Accumulated depreciation and amortization | (1,058) | (1,047) |
Total property and equipment, net | 587 | 610 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 31 | 31 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 235 | 228 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 135 | 158 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,047 | 1,073 |
Furniture, fixtures, and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 197 | $ 167 |
Goodwill (Changes in Goodwill)
Goodwill (Changes in Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | $ 13,730 | $ 14,178 |
Goodwill distributed through sale of businesses | (81) | (487) |
Brazilian Venture impairment | (25) | |
Foreign currency adjustments | (79) | 39 |
Ending balance | 13,545 | 13,730 |
IFS | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 7,662 | 7,676 |
Goodwill distributed through sale of businesses | (14) | (14) |
Brazilian Venture impairment | 0 | |
Foreign currency adjustments | 0 | 0 |
Ending balance | 7,648 | 7,662 |
GFS | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 5,898 | 6,332 |
Goodwill distributed through sale of businesses | (24) | (473) |
Brazilian Venture impairment | (25) | |
Foreign currency adjustments | (79) | 39 |
Ending balance | 5,770 | 5,898 |
Corporate and Other | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 170 | 170 |
Goodwill distributed through sale of businesses | (43) | 0 |
Brazilian Venture impairment | 0 | |
Foreign currency adjustments | 0 | 0 |
Ending balance | $ 127 | $ 170 |
Intangible Assets (Narratives)
Intangible Assets (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |||
Amortization expense for intangible assets with finite lives | $ 659 | $ 670 | $ 518 |
Goodwill (Narratives) (Details)
Goodwill (Narratives) (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill | |||
Goodwill distributed through sale of businesses | $ 81 | $ 487 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | North America | |||
Goodwill | |||
Loss on sale of asset | $ 54 | ||
Goodwill distributed through sale of businesses | $ 43 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible Assets | ||
Cost | $ 6,122 | $ 6,369 |
Accumulated Amortization | (2,990) | (2,484) |
Net | 3,132 | 3,885 |
Trademarks | ||
Intangible Assets | ||
Cost | 43 | 48 |
Accumulated Amortization | 0 | 0 |
Net | 43 | 48 |
Customer relationships and other | ||
Intangible Assets | ||
Cost | 6,011 | 6,220 |
Accumulated Amortization | (2,944) | (2,427) |
Net | 3,067 | 3,793 |
Trademarks | ||
Intangible Assets | ||
Cost | 68 | 101 |
Accumulated Amortization | (46) | (57) |
Net | $ 22 | $ 44 |
Intangible Assets (Schedule o_2
Intangible Assets (Schedule of Estimated Amortization of Intangibles for the Next Five Years) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Estimated Amortization of Intangibles | |
2,019 | $ 626 |
2,020 | 458 |
2,021 | 443 |
2,022 | 426 |
2,023 | $ 405 |
Computer Software (Details)
Computer Software (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Computer Software | ||
Computer software | $ 3,103 | $ 2,862 |
Accumulated amortization | (1,308) | (1,134) |
Total computer software, net | 1,795 | 1,728 |
Software from business acquisitions | ||
Computer Software | ||
Computer software | 1,116 | 1,130 |
Capitalized software development costs | ||
Computer Software | ||
Computer software | 1,624 | 1,422 |
Purchased software | ||
Computer Software | ||
Computer software | $ 363 | $ 310 |
Computer Software (Narratives)
Computer Software (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Computer Software | |||
Amortization expense for intangible assets with finite lives | $ 659 | $ 670 | $ 518 |
Computer software | |||
Computer Software | |||
Amortization expense for intangible assets with finite lives | $ 468 | $ 436 | $ 396 |
Deferred Contract Costs (Detail
Deferred Contract Costs (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Capitalized Contract Cost | ||
Total deferred contract costs, net | $ 475 | $ 354 |
Contract costs on implementations in progress | ||
Capitalized Contract Cost | ||
Total deferred contract costs, net | 93 | 104 |
Incremental contract origination costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Total deferred contract costs, net | 219 | 127 |
Contract fulfillment costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Total deferred contract costs, net | $ 163 | $ 123 |
Deferred Contract Costs (Narrat
Deferred Contract Costs (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capitalized Contract Cost [Abstract] | |||
Amortization of capitalized contract costs | $ 123 | $ 102 | $ 71 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Salaries and incentives | $ 218 | $ 265 |
Accrued benefits and payroll taxes | 66 | 71 |
Trade accounts payable and other accrued liabilities | 687 | 776 |
Accrued interest payable | 71 | 70 |
Taxes other than income tax | 57 | 59 |
Total accounts payable and accrued liabilities | $ 1,099 | $ 1,241 |
Debt (Schedule of Outstanding D
Debt (Schedule of Outstanding Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Jun. 15, 2018 | May 16, 2018 | Dec. 31, 2017 | Jul. 25, 2017 | Jul. 10, 2017 | Oct. 13, 2015 | |
Debt Instrument | |||||||
Senior notes | $ 4,500 | ||||||
Other | $ 34 | $ 15 | |||||
Total principal payments | 8,718 | 8,763 | |||||
Current portion of long-term debt | (48) | (1,045) | |||||
Long-term debt, excluding current portion | 8,670 | 7,718 | |||||
Revolving Credit Facility | |||||||
Debt Instrument | |||||||
Credit facility outstanding amount | $ 208 | 195 | |||||
Revolving loan unused commitment fee percentage | 0.225% | ||||||
Weighted average interest rate (percent) | 3.65% | ||||||
Revolving Credit Facility | LIBOR | Maximum | |||||||
Debt Instrument | |||||||
Applicable margin | 1.625% | ||||||
Senior Notes | |||||||
Debt Instrument | |||||||
Weighted average interest rate (percent) | 4.00% | ||||||
Senior Notes | Senior Notes due April 2018, interest payable semi-annually at 2.000% | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 2.00% | ||||||
Senior notes | $ 0 | 250 | |||||
Senior Notes | Senior Notes due October 2018, interest payable semi-annually at 2.850% | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 2.85% | 2.85% | |||||
Senior notes | $ 0 | 750 | |||||
Senior Notes | Senior Notes due October 2020, interest payable semi-annually at 3.625% (2020 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 3.625% | 3.625% | |||||
Senior notes | $ 1,150 | 1,150 | |||||
Senior Notes | Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 0.40% | 0.40% | |||||
Senior notes | $ 572 | 599 | |||||
Senior Notes | Senior Notes due August 2021, interest payable semi-annually at 2.250% (2021 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 2.25% | ||||||
Senior notes | $ 750 | 750 | |||||
Senior Notes | Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 1.70% | 1.70% | |||||
Senior notes | $ 382 | 405 | |||||
Senior Notes | Senior Notes due October 2022, interest payable semi-annually at 4.500% (2022 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 4.50% | 4.50% | |||||
Senior notes | $ 300 | 300 | |||||
Senior Notes | Senior Notes due April 2023, interest payable semi-annually at 3.500% (2023 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 3.50% | 3.50% | |||||
Senior notes | $ 700 | 700 | |||||
Senior Notes | Senior Notes due June 2024, interest payable semi-annually at 3.875% (2024 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 3.875% | 3.875% | |||||
Senior notes | $ 400 | 400 | |||||
Senior Notes | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 1.10% | 1.10% | |||||
Senior notes | $ 572 | 599 | |||||
Senior Notes | Senior Notes due October 2025, interest payable semi-annually at 5.000% (2025 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 5.00% | 5.00% | |||||
Senior notes | $ 900 | 900 | |||||
Senior Notes | Senior Notes due August 2026, interest payable semi-annually at 3.000% (2026 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 3.00% | ||||||
Senior notes | $ 1,250 | 1,250 | |||||
Senior Notes | Senior Notes due May 2028, interest payable semi-annually at 4.250% (2028 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 4.25% | 4.25% | |||||
Senior notes | $ 400 | 0 | |||||
Senior Notes | Senior Notes due August 2046, interest payable semi-annually at 4.500% (2046 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 4.50% | ||||||
Senior notes | $ 500 | 500 | |||||
Senior Notes | Senior Notes due May 2048, interest payable semi-annually at 4.750% (2048 Notes) | |||||||
Debt Instrument | |||||||
Debt instrument, stated percentage | 4.75% | 4.75% | |||||
Senior notes | $ 600 | $ 0 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Sep. 21, 2018USD ($) | Jun. 15, 2018USD ($) | May 16, 2018USD ($) | Jul. 25, 2017USD ($) | Jul. 10, 2017USD ($) | Mar. 15, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017GBP (£) | Sep. 30, 2017EUR (€) | Jul. 10, 2017GBP (£)£ / $€ / $ | Jul. 10, 2017EUR (€)£ / $€ / $ |
Debt Instrument | ||||||||||||||
Loss on extinguishment of debt | $ 1,000,000 | $ 196,000,000 | $ 0 | |||||||||||
Debt issuance costs | $ 58,000,000 | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Debt Instrument | ||||||||||||||
Weighted average interest rate (percent) | 3.65% | |||||||||||||
Additional term and revolving loan capacity in the future | $ 3,786,000,000 | |||||||||||||
Credit facility outstanding amount | $ 208,000,000 | $ 195,000,000 | ||||||||||||
Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Weighted average interest rate (percent) | 4.00% | |||||||||||||
Amount redeemed | $ 2,000,000,000 | |||||||||||||
Face amount of debt | $ 1,000,000,000 | £ 300,000,000 | € 1,000,000,000 | |||||||||||
Net proceeds from offering | $ 979,000,000 | $ 1,491,000,000 | ||||||||||||
Tender offer costs | 150,000,000 | |||||||||||||
Extinguishment of tender premium | 171,000,000 | |||||||||||||
Senior Notes | Revolving Credit Facility | ||||||||||||||
Debt Instrument | ||||||||||||||
Repayments of revolving loan | 469,000,000 | |||||||||||||
Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument, stated percentage | 1.10% | 1.10% | 1.10% | |||||||||||
Face amount of debt | € | € 500,000,000 | € 500,000,000 | ||||||||||||
Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 3 months | |||||||||||||
Senior Notes due October 2018, interest payable semi-annually at 2.850% | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Percentage of principal amount redeemed | 100.00% | |||||||||||||
Amount redeemed | $ 750,000,000 | |||||||||||||
Debt instrument, stated percentage | 2.85% | 2.85% | ||||||||||||
Write off of capitalized debt issuance costs | $ 1,000,000 | |||||||||||||
FIS Credit Agreement | ||||||||||||||
Debt Instrument | ||||||||||||||
Unamortized discount (premium), net | $ 40,000,000 | |||||||||||||
Debt issuance costs | $ 58,000,000 | |||||||||||||
Senior Notes due May 2028, interest payable semi-annually at 4.250% (2028 Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument, stated percentage | 4.25% | 4.25% | ||||||||||||
Face amount of debt | $ 400,000,000 | |||||||||||||
Senior Notes due May 2028, interest payable semi-annually at 4.250% (2028 Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 3 months | |||||||||||||
Senior Notes due May 2048, interest payable semi-annually at 4.750% (2048 Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument, stated percentage | 4.75% | 4.75% | ||||||||||||
Face amount of debt | $ 600,000,000 | |||||||||||||
Senior Notes due May 2048, interest payable semi-annually at 4.750% (2048 Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 6 months | |||||||||||||
Senior Notes due October 2020, interest payable semi-annually at 3.625% (2020 Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Amount redeemed | $ 600,000,000 | |||||||||||||
Debt instrument, stated percentage | 3.625% | 3.625% | ||||||||||||
Senior Notes due October 2020, interest payable semi-annually at 3.625% (2020 Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 1 month | |||||||||||||
Senior Notes due October 2025, interest payable semi-annually at 5.000% (2025 Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Amount redeemed | $ 600,000,000 | |||||||||||||
Debt instrument, stated percentage | 5.00% | 5.00% | ||||||||||||
Senior Notes due October 2025, interest payable semi-annually at 5.000% (2025 Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 3 months | |||||||||||||
Senior Notes due October 2022, interest payable semi-annually at 4.500% (2022 Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Amount redeemed | $ 200,000,000 | |||||||||||||
Debt instrument, stated percentage | 4.50% | 4.50% | ||||||||||||
Senior Notes due October 2022, interest payable semi-annually at 4.500% (2022 Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 2 months | |||||||||||||
Senior Notes due June 2024, interest payable semi-annually at 3.875% (2024 Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Amount redeemed | $ 300,000,000 | |||||||||||||
Debt instrument, stated percentage | 3.875% | 3.875% | ||||||||||||
Senior Notes due June 2024, interest payable semi-annually at 3.875% (2024 Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 3 months | |||||||||||||
Senior Notes due April 2023, interest payable semi-annually at 3.500% (2023 Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Amount redeemed | $ 300,000,000 | |||||||||||||
Debt instrument, stated percentage | 3.50% | 3.50% | ||||||||||||
Senior Notes due April 2023, interest payable semi-annually at 3.500% (2023 Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 3 months | |||||||||||||
Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument, stated percentage | 0.40% | 0.40% | 0.40% | |||||||||||
Face amount of debt | € | € 500,000,000 | € 500,000,000 | ||||||||||||
Currency conversion rate (per unit) | € / $ | 1.12 | 1.12 | ||||||||||||
Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 1 month | |||||||||||||
Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Debt instrument, stated percentage | 1.70% | 1.70% | 1.70% | |||||||||||
Face amount of debt | £ | £ 300,000,000 | £ 300,000,000 | ||||||||||||
Currency conversion rate (per unit) | £ / $ | 1.27 | 1.27 | ||||||||||||
Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | Senior Notes | Minimum | ||||||||||||||
Debt Instrument | ||||||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||||||
Make whole amount, trigger period prior to maturity | 1 month | |||||||||||||
March 2022 Notes | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Percentage of principal amount redeemed | 100.00% | |||||||||||||
Amount redeemed | $ 700,000,000 | |||||||||||||
Debt instrument, stated percentage | 5.00% | |||||||||||||
Loss on extinguishment of debt | $ 25,000,000 | |||||||||||||
FIS Credit Agreement | Revolving Credit Facility | ||||||||||||||
Debt Instrument | ||||||||||||||
Total committed capital, credit agreement | $ 4,000,000,000 | $ 3,000,000,000 | ||||||||||||
Letter of Credit | ||||||||||||||
Debt Instrument | ||||||||||||||
Credit facility outstanding amount | $ 6,000,000 | |||||||||||||
Senior Commercial Paper Notes | FIS Credit Agreement | ||||||||||||||
Debt Instrument | ||||||||||||||
Total committed capital, credit agreement | $ 4,000,000,000 | |||||||||||||
Debt instrument term | 397 days | |||||||||||||
Commercial paper | $ 250,000,000 | |||||||||||||
Weighted average interest rate (percent) | 2.91% | |||||||||||||
Fair Value Hedging | Interest rate swap | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | Senior Notes | ||||||||||||||
Debt Instrument | ||||||||||||||
Derivative fair value | $ 1,000,000 |
Debt (Schedule of Principal Mat
Debt (Schedule of Principal Maturities of Long-term Debt) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Principal maturities of long-term debt | |
Debt issuance costs, net of accumulated amortization | $ (58) |
FIS Credit Agreement | |
Principal maturities of long-term debt | |
2,019 | 48 |
2,020 | 1,193 |
2,021 | 1,363 |
2,022 | 682 |
2,023 | 908 |
Thereafter | 4,622 |
Total principal payments | 8,816 |
Debt issuance costs, net of accumulated amortization | (58) |
Total long-term debt | $ 8,758 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Hedge) (Details) - Dec. 31, 2018 - Fair Value Hedging - Interest rate swap $ in Millions | USD ($) | EUR (€) |
Derivative | ||
Derivative, notional amount | € | € 500,000,000 | |
Senior Notes | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | ||
Derivative | ||
Derivative fair value | $ | $ 1 |
Financial Instruments (Cash Flo
Financial Instruments (Cash Flows Hedge) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative | |||
Fair value changes reclassified from other comprehensive earnings | $ 0 | $ 0 | $ 9,000,000 |
Cash Flow Hedge | Interest rate swap | |||
Derivative | |||
Notional amount of derivatives terminated | 500,000,000 | 1,250,000,000 | |
Fair value changes reclassified from other comprehensive earnings | 1,000,000 | 2,000,000 | |
Gain (loss) on interest rate derivative | 0 | 0 | (7,000,000) |
Gain (loss) reclassified from accumulated other comprehensive earnings into income | $ (1,000,000) | $ (1,000,000) | $ (9,000,000) |
Financial Instruments (Net Inve
Financial Instruments (Net Investment Hedges) (Details) | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 16, 2018USD ($) | Sep. 30, 2017GBP (£) | Sep. 30, 2017EUR (€) | Jul. 10, 2017GBP (£) | Jul. 10, 2017EUR (€) | |
Senior Notes | |||||||
Derivative Instruments, Gain (Loss) | |||||||
Face amount of debt | $ 1,000,000,000 | £ 300,000,000 | € 1,000,000,000 | ||||
Senior Notes | Senior Euro Notes due January 2021, interest payable annually at 0.400% (2021 Euro Notes) | |||||||
Derivative Instruments, Gain (Loss) | |||||||
Face amount of debt | € | € 500,000,000 | 500,000,000 | |||||
Senior Notes | Senior Euro Notes due July 2024, interest payable annually at 1.100% (2024 Euro Notes) | |||||||
Derivative Instruments, Gain (Loss) | |||||||
Face amount of debt | € | € 500,000,000 | € 500,000,000 | |||||
Senior Notes | Senior GBP Notes due June 2022, interest payable annually at 1.700% (2022 GBP Notes) | |||||||
Derivative Instruments, Gain (Loss) | |||||||
Face amount of debt | £ | £ 300,000,000 | £ 300,000,000 | |||||
Net investment hedging | Interest rate swap | |||||||
Derivative Instruments, Gain (Loss) | |||||||
Derivative, notional amount | $ 716,000,000 | ||||||
Derivative fair value | 2,000,000 | ||||||
Net investment hedging | Foreign exchange forward | |||||||
Derivative Instruments, Gain (Loss) | |||||||
Gain (loss) on net investment hedge | $ 59,000,000 | $ (63,000,000) |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit) and Pre-tax Income from Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision: | |||
Federal | $ 169 | $ 476 | $ 308 |
State | 50 | 81 | 54 |
Foreign | 105 | 127 | 131 |
Total current provision | 324 | 684 | 493 |
Deferred provision (benefit): | |||
Federal | (95) | (979) | (171) |
State | (11) | (24) | (14) |
Foreign | (10) | (2) | (17) |
Total deferred provision | (116) | (1,005) | (202) |
Total provision for income taxes | 208 | (321) | 291 |
Provision for income taxes is based on pre-tax income from continuing operations | |||
United States | 744 | 530 | 503 |
Foreign | 360 | 446 | 334 |
Earnings from continuing operations before income taxes and equity method investment earnings (loss) | $ 1,104 | $ 976 | $ 837 |
Income Taxes (Schedule of Com_2
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Allocation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Intraperiod Tax Allocation [Abstract] | |||
Tax expense (benefit) per statement of earnings | $ 208 | $ (321) | $ 291 |
Tax expense (benefit) attributable to discontinued operations | (1) | 0 | 1 |
Unrealized (loss) gain on foreign currency translation | 0 | 0 | 30 |
Other components of other comprehensive income | 1 | (11) | 1 |
Total income tax expense (benefit) allocated to other comprehensive income | 1 | (11) | 31 |
Tax benefit from exercise of stock options | 0 | 0 | (32) |
Total income tax expense (benefit) | $ 208 | $ (332) | $ 291 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal statutory income tax rate | 21.00% | 35.00% | 35.00% |
State income taxes | 3.00% | 2.40% | 2.90% |
Federal benefit of state taxes | (0.60%) | (0.80%) | (1.00%) |
Foreign rate differential | 0.00% | (5.10%) | (3.10%) |
Tax benefit from stock-based compensation | (5.20%) | (6.70%) | 0.00% |
Book basis in excess of tax basis for dispositions | 3.00% | 18.50% | 0.00% |
Tax Cuts and Jobs Act of 2017 | 0.00% | (73.10%) | 0.00% |
Foreign-derived intangible income deduction | (1.80%) | 0.00% | 0.00% |
Other | (0.60%) | (3.10%) | 1.00% |
Effective income tax rate | 18.80% | (32.90%) | 34.80% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 108 | $ 130 |
Employee benefit accruals | 58 | 69 |
Other deferred tax assets | 105 | 128 |
Total gross deferred income tax assets | 271 | 327 |
Less valuation allowance | (116) | (129) |
Total deferred income tax assets | 155 | 198 |
Deferred income tax liabilities: | ||
Amortization of goodwill and intangible assets | 1,291 | 1,452 |
Deferred contract costs | 109 | 94 |
Other deferred tax liabilities | 83 | 90 |
Total deferred income tax liabilities | 1,483 | 1,636 |
Net deferred income tax liability | $ 1,328 | $ 1,438 |
Income Taxes (Schedule of Def_2
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilities) (Classification) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Noncurrent assets (included in other noncurrent assets) | $ 32 | $ 30 |
Total deferred income tax assets | 32 | 30 |
Noncurrent liabilities | (1,360) | (1,468) |
Total deferred income tax liabilities | (1,360) | (1,468) |
Net deferred income tax liability | $ (1,328) | $ (1,438) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits Roll Forward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of gross amounts of unrecognized gross tax benefits | ||
Amount of unrecognized tax benefits, beginning balance | $ 75 | $ 87 |
Amount of decreases due to lapse of the applicable statute of limitations | (4) | (12) |
Amount of decreases due to settlements | (12) | (19) |
Increases as a result of tax positions taken in the current period | 1 | 5 |
Increases as a result of tax positions taken in a prior period | 1 | 14 |
Amount of unrecognized tax benefits, ending balance | $ 61 | $ 75 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Examination | |||
Income taxes receivable | $ 30 | ||
Income tax payable | $ (141) | ||
Net operating loss carryforwards | 108 | 130 | |
Unrecognized tax benefits | 61 | 75 | $ 87 |
Unrecognized tax benefits that would impact tax rate | 52 | 56 | |
Tax benefits interest expense for unpaid taxes | 4 | 5 | $ 6 |
Unrecognized tax benefits interest and penalties accrued | 24 | 22 | |
Unrecognized tax benefits that may be recognized during the next twelve month period | $ 15 | ||
Recognition period | 12 months | ||
Federal and State | |||
Income Tax Examination | |||
Net operating loss carryforwards | $ 42 | 44 | |
State | |||
Income Tax Examination | |||
Valuation allowance against net operating loss deferred tax assets | 36 | 37 | |
Foreign | |||
Income Tax Examination | |||
Foreign net operating loss carryforwards resulting in deferred tax assets | 66 | 86 | |
Foreign tax credit carryforwards | $ 0 | $ 3 |
Commitments and Contingencies_2
Commitments and Contingencies (Narratives) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)claim | Jan. 01, 2019USD ($) | |
SunGard | ||
Loss Contingencies | ||
Liability for acquired contingencies | $ 64 | |
Maximum | Subsequent Event | Scenario, Forecast | ||
Loss Contingencies | ||
Right of use asset | $ 500 | |
Operating lease liability | 500 | |
Minimum | Subsequent Event | Scenario, Forecast | ||
Loss Contingencies | ||
Right of use asset | 400 | |
Operating lease liability | $ 400 | |
Pending litigation | Secretariat of the Federal Revenue Bureau of Brazil | Potential tax liability | ||
Loss Contingencies | ||
Loss contingency, number of claims pending | claim | 12 | |
Loss contingency, value of damages sought | $ 14 | |
Loss contingency, number of additional claims filed | claim | 25 | |
Loss contingency, potential additional claims amount sought | $ 50 | |
Number of total pending and potential pending claims | claim | 37 | |
Pending litigation | Secretariat of the Federal Revenue Bureau of Brazil | Potential tax liability | Maximum | ||
Loss Contingencies | ||
Loss contingency, estimate of possible loss | $ 64 | |
Reliance | Pending litigation | ||
Loss Contingencies | ||
Loss contingency, value of damages sought | $ 125 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Future Minimum Operating Lease Payments for Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Future minimum operating lease payments for leases | |||
2,019 | $ 121 | ||
2,020 | 104 | ||
2,021 | 80 | ||
2,022 | 51 | ||
2,023 | 38 | ||
Thereafter | 86 | ||
Total | 480 | ||
Rent expense incurred under all operating leases | $ 147 | $ 134 | $ 143 |
Minimum | |||
Operating Leased Assets | |||
Operating leases, purchase option and renewal period | 1 year | ||
Maximum | |||
Operating Leased Assets | |||
Operating leases, purchase option and renewal period | 5 years |
Commitments and Contingencies_4
Commitments and Contingencies (Data Processing, Maintenance and Other Services Agreements Narrative) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Computer data processing operations and related functions | |
Other Commitments | |
Contractual obligation | $ 372 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narratives) (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 30, 2015 | May 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 |
Share-based Compensation | ||||||
Employer matching contribution, percent of match | 50.00% | |||||
Employee contribution of pretax annual compensation | 40.00% | |||||
Employee matching contribution, percent of employees' gross pay | 6.00% | |||||
Profit sharing expenses | $ 82 | $ 80 | $ 80 | |||
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 | ||||
Weighted average fair value of options granted (in dollars per share) | $ 16.07 | $ 12.78 | $ 9.35 | |||
Total unrecognized compensation cost related to non-vested stock awards | $ 106 | $ 111 | ||||
Weighted average period over which compensation cost is expected to be recognized | 1 year 6 months | 1 year 6 months | ||||
Accumulated benefit obligation | $ 54 | $ 57 | ||||
Projected benefit plan, plan obligation | 54 | 57 | ||||
Selling, General and Administrative Expenses | ||||||
Share-based Compensation | ||||||
Compensation expense | $ 84 | 107 | $ 137 | |||
FIS Plan amended and restated | ||||||
Share-based Compensation | ||||||
Stock vesting period | 3 years | |||||
SunGard 2005 Management Incentive Plan | ||||||
Share-based Compensation | ||||||
Common stock, shares authorized (in shares) | 2,000,000 | |||||
Stock Options | ||||||
Share-based Compensation | ||||||
Minimum percentage contribution made by employees of their salary to employee benefit plan | 3.00% | |||||
Maximum percentage contribution made by employees of their salary to employee benefit plan | 15.00% | |||||
Employer matching contribution, percent of match | 25.00% | |||||
Compensation expense | $ 14 | 14 | 19 | |||
Intrinsic value of options exercised | $ 257 | $ 196 | $ 103 | |||
Stock Options | FIS Plan amended and restated | ||||||
Share-based Compensation | ||||||
Number of additional shares authorized (in shares) | 10,000,000 | 12,000,000 | 6,000,000 | |||
Restricted Stock | ||||||
Share-based Compensation | ||||||
Stock vesting period | 3 years | |||||
Restricted stock, shares granted (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | |||
Unvested restricted shares outstanding (in shares) | 1,000,000 | 2,000,000 | ||||
Restricted Stock | Minimum | ||||||
Share-based Compensation | ||||||
Restricted stock weighted average grant price (in dollars per share) | $ 94.71 | $ 79.44 | $ 56.44 | |||
Restricted Stock | Maximum | ||||||
Share-based Compensation | ||||||
Restricted stock weighted average grant price (in dollars per share) | $ 110.12 | $ 93.36 | $ 79.41 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Options Granted) (Details) - Stock Options - shares shares in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPtion Available for Grant | ||||
Options outstanding (in shares) | 10 | 15 | 17 | 16 |
FIS Plan amended and restated | ||||
OPtion Available for Grant | ||||
Options available for grant, beginning (in shares) | 17 | 21 | ||
Options granted in period (in shares) | 1 | 4 | ||
Options outstanding (in shares) | 10 | 15 | ||
Options available for grant, ending (in shares) | 15 | 17 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Stock Option Activity) (Details) - Stock Options - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning Balance (in shares) | 15 | 17 | 16 |
Granted (in shares) | 1 | 4 | 5 |
Exercised (in shares) | (5) | (5) | (3) |
Cancelled (in shares) | (1) | (1) | (1) |
Ending Balance (in shares) | 10 | 15 | 17 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning Balance (in dollars per share) | $ 61.97 | $ 53.21 | $ 47.19 |
Granted (in dollars per share) | 96.49 | 80.05 | 63.58 |
Exercised (in dollars per share) | 54.19 | 44.75 | 36.15 |
Cancelled (in dollars per share) | 74.76 | 70.50 | 62.25 |
Ending Balance (in dollars per share) | $ 70.03 | $ 61.97 | $ 53.21 |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Stock Options Outstanding and Exercisable) (Details) - Stock Options $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Stock options outstanding and exercisable | |
Exercise price range lower limit (in dollars per share) | $ 0 |
Exercise price range upper limit (in dollars per share) | $ 107.45 |
Number of Options (in shares) | shares | 10 |
Weighted Average Remaining Contractual Life | 4 years 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 70.03 |
Intrinsic Value | $ | $ 337 |
Number of Options (in shares) | shares | 6 |
Weighted Average Remaining Contractual Life | 3 years 2 months 15 days |
Weighted Average Exercise Price (in dollars per share) | $ 61.26 |
Intrinsic Value | $ | $ 236 |
Closing stock price (in dollars per share) | $ 102.55 |
$ 0.00 - $ 59.91 | |
Stock options outstanding and exercisable | |
Exercise price range lower limit (in dollars per share) | 0 |
Exercise price range upper limit (in dollars per share) | $ 59.91 |
Number of Options (in shares) | shares | 3 |
Weighted Average Remaining Contractual Life | 2 years 2 months 22 days |
Weighted Average Exercise Price (in dollars per share) | $ 52.50 |
Intrinsic Value | $ | $ 136 |
Number of Options (in shares) | shares | 3 |
Weighted Average Remaining Contractual Life | 2 years 2 months 22 days |
Weighted Average Exercise Price (in dollars per share) | $ 52.49 |
Intrinsic Value | $ | $ 136 |
$ 59.92 - $ 62.92 | |
Stock options outstanding and exercisable | |
Exercise price range lower limit (in dollars per share) | $ 59.92 |
Exercise price range upper limit (in dollars per share) | $ 62.92 |
Number of Options (in shares) | shares | 2 |
Weighted Average Remaining Contractual Life | 4 years 1 month 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 62.92 |
Intrinsic Value | $ | $ 75 |
Number of Options (in shares) | shares | 1 |
Weighted Average Remaining Contractual Life | 4 years 28 days |
Weighted Average Exercise Price (in dollars per share) | $ 62.92 |
Intrinsic Value | $ | $ 44 |
$ 62.93 - $ 66.62 | |
Stock options outstanding and exercisable | |
Exercise price range lower limit (in dollars per share) | $ 62.93 |
Exercise price range upper limit (in dollars per share) | $ 66.62 |
Number of Options (in shares) | shares | 1 |
Weighted Average Remaining Contractual Life | 3 years 7 months 13 days |
Weighted Average Exercise Price (in dollars per share) | $ 65.73 |
Intrinsic Value | $ | $ 51 |
Number of Options (in shares) | shares | 1 |
Weighted Average Remaining Contractual Life | 3 years 6 months 7 days |
Weighted Average Exercise Price (in dollars per share) | $ 65.56 |
Intrinsic Value | $ | $ 35 |
$ 66.63 - $ 80.03 | |
Stock options outstanding and exercisable | |
Exercise price range lower limit (in dollars per share) | $ 66.63 |
Exercise price range upper limit (in dollars per share) | $ 80.03 |
Number of Options (in shares) | shares | 3 |
Weighted Average Remaining Contractual Life | 5 years 21 days |
Weighted Average Exercise Price (in dollars per share) | $ 80 |
Intrinsic Value | $ | $ 66 |
Number of Options (in shares) | shares | 1 |
Weighted Average Remaining Contractual Life | 4 years 8 months 8 days |
Weighted Average Exercise Price (in dollars per share) | $ 79.97 |
Intrinsic Value | $ | $ 21 |
$ 80.04 - $ 102.55 | |
Stock options outstanding and exercisable | |
Exercise price range lower limit (in dollars per share) | $ 80.04 |
Exercise price range upper limit (in dollars per share) | $ 102.55 |
Number of Options (in shares) | shares | 1 |
Weighted Average Remaining Contractual Life | 6 years 2 months 23 days |
Weighted Average Exercise Price (in dollars per share) | $ 96.24 |
Intrinsic Value | $ | $ 9 |
Number of Options (in shares) | shares | 0 |
Weighted Average Remaining Contractual Life | 3 years 6 months 2 days |
Weighted Average Exercise Price (in dollars per share) | $ 91.68 |
Intrinsic Value | $ | $ 0 |
$ 102.56 - $ 107.45 | |
Stock options outstanding and exercisable | |
Exercise price range lower limit (in dollars per share) | $ 102.56 |
Exercise price range upper limit (in dollars per share) | $ 107.45 |
Number of Options (in shares) | shares | 0 |
Weighted Average Remaining Contractual Life | 6 years 8 months 22 days |
Weighted Average Exercise Price (in dollars per share) | $ 104.75 |
Intrinsic Value | $ | $ 0 |
Number of Options (in shares) | shares | 0 |
Weighted Average Remaining Contractual Life | 0 years |
Weighted Average Exercise Price (in dollars per share) | $ 0 |
Intrinsic Value | $ | $ 0 |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule of Stock Option Valuation Assumptions) (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average fair value of options | |||
Risk free interest rate | 2.50% | 1.80% | 1.20% |
Volatility | 19.20% | 20.10% | 20.40% |
Dividend yield | 1.30% | 1.40% | 1.60% |
Weighted average expected life (years) | 4 years 2 months 12 days | 4 years 2 months 18 days | 4 years 2 months 12 days |
Related Party Transactions (Nar
Related Party Transactions (Narratives) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2017 | |
Related Party Transaction | |||||
Asset impairments | $ 95,000,000 | $ 0 | $ 0 | ||
Dividends paid | $ 421,000,000 | 385,000,000 | 341,000,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Brazilian Venture | |||||
Related Party Transaction | |||||
Asset impairments | $ 95,000,000 | ||||
Cardinal Holdings | |||||
Related Party Transaction | |||||
Ownership percentage (percent) | 40.00% | ||||
Banco Bradesco | Joint venture | |||||
Related Party Transaction | |||||
Ownership percentage (percent) | 51.00% | ||||
Capco Consulting Business | Cardinal Holdings | Joint venture | |||||
Related Party Transaction | |||||
Ownership percentage (percent) | 60.00% | ||||
Banco Bradesco | Joint venture | |||||
Related Party Transaction | |||||
Dividends paid | $ 26,000,000 | 23,000,000 | |||
Noncontrolling interest value | 0 | ||||
Total related party revenues | 332,000,000 | 329,000,000 | $ 272,000,000 | ||
Banco Bradesco | Joint venture | Favorable (unfavorable) Currency Impact | |||||
Related Party Transaction | |||||
Total related party revenues | $ (46,000,000) | $ 24,000,000 | |||
Banco Bradesco | Brazilian Venture | |||||
Related Party Transaction | |||||
Ownership percentage (percent) | 100.00% |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Related Party Receivables and Payables) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction | ||
Accounts payable and accrued liabilities | $ 1,099 | $ 1,241 |
Other long-term liabilities | 326 | 403 |
Joint venture | Banco Bradesco | ||
Related Party Transaction | ||
Trade receivables | 0 | 47 |
Contract assets | 0 | 5 |
Accounts payable and accrued liabilities | 0 | 10 |
Other long-term liabilities | $ 0 | $ 17 |
Divestitures (Narrative) (Detai
Divestitures (Narrative) (Details) - USD ($) | Jul. 31, 2017 | Feb. 01, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Asset impairments | $ 95,000,000 | $ 0 | $ 0 | |||
Decrese in noncontrolling interest as a result of divestiture | 33,000,000 | |||||
Proceeds from sale of businesses | 1,307,000,000 | 0 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Brazilian Venture | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Asset impairments | $ 95,000,000 | |||||
Pre-tax (loss) gain on sale of businesses | (12,000,000) | |||||
Decrese in noncontrolling interest as a result of divestiture | 90,000,000 | |||||
Increase to additional paid in capital from as a result of divestitures | $ 57,000,000 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Capco Consulting Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage (percent) | 40.00% | |||||
Pre-tax (loss) gain on sale of businesses | $ (41,000,000) | |||||
Proceeds from sale of businesses | $ 469,000,000 | |||||
Ownership percentage by non-controlling interest | 60.00% | |||||
Preferred unit dividend rate | 12.00% | |||||
Pre-tax earnings | 14,000,000 | 55,000,000 | ||||
Equity method investments | $ 172,000,000 | $ 151,000,000 | 171,000,000 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | PS&E | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of businesses | $ 500,000,000 | |||||
Pre-tax earnings | $ 3,000,000 | $ 42,000,000 | ||||
Consideration received | 850,000,000 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | PS&E | Minimum | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Pre-tax (loss) gain on sale of businesses | $ 85,000,000 | |||||
Cardinal Member | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage (percent) | 38.00% | 40.00% | ||||
Banco Bradesco | Brazilian Venture | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage (percent) | 100.00% |
Components of Other Comprehen_3
Components of Other Comprehensive Earnings (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Increase (Decrease) in Stockholders' Equity | |
Beginning balance | $ 10,820 |
Ending balance | 10,222 |
Accumulated other comprehensive earnings | |
Increase (Decrease) in Stockholders' Equity | |
Beginning balance | (332) |
Other comprehensive gain (loss) before reclassifications | (98) |
Ending balance | (430) |
Foreign Currency Translation Adjustments | |
Increase (Decrease) in Stockholders' Equity | |
Beginning balance | (289) |
Other comprehensive gain (loss) before reclassifications | (102) |
Ending balance | (391) |
Other | |
Increase (Decrease) in Stockholders' Equity | |
Beginning balance | (43) |
Other comprehensive gain (loss) before reclassifications | 4 |
Ending balance | $ (39) |
Interest expense recognition period | 10 years |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)country | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information | |||
Assets from discontinued operations, excluded from total assets | $ 0 | $ 2 | $ 6 |
Foreign Entities | |||
Segment Reporting Information | |||
Long-term assets, excluding goodwill and other intangible assets | 560 | 559 | |
SunGard | |||
Segment Reporting Information | |||
Acquisition, integration and other costs | $ 156 | $ 178 | $ 281 |
GFS | |||
Segment Reporting Information | |||
Number of countries in which entity operates (more than) | country | 130 |
Segment Information (Schedule o
Segment Information (Schedule of Financial Information for the Company's Segments) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information | |||
Revenues | $ 8,423,000,000 | $ 8,668,000,000 | $ 8,831,000,000 |
Asset impairments | 95,000,000 | 0 | 0 |
Other income (expense), net | (57,000,000) | (119,000,000) | (9,000,000) |
Provision (benefit) for income taxes | 208,000,000 | (321,000,000) | 291,000,000 |
Net earnings (loss) from discontinued operations | 0 | 0 | 1,000,000 |
Net earnings attributable to noncontrolling interest | 35,000,000 | 33,000,000 | 22,000,000 |
Net earnings attributable to FIS common stockholders | 846,000,000 | 1,261,000,000 | 525,000,000 |
Capital expenditures | 713,000,000 | 697,000,000 | 659,000,000 |
Total assets | 23,770,000,000 | 24,524,000,000 | 26,020,000,000 |
Goodwill | 13,545,000,000 | 13,730,000,000 | 14,178,000,000 |
Capital expenditures | 91,000,000 | 84,000,000 | 43,000,000 |
IFS | |||
Segment Reporting Information | |||
Capital expenditures | 385,000,000 | 374,000,000 | 294,000,000 |
Total assets | 10,940,000,000 | 10,663,000,000 | 10,231,000,000 |
Goodwill | 7,648,000,000 | 7,662,000,000 | 7,676,000,000 |
GFS | |||
Segment Reporting Information | |||
Capital expenditures | 306,000,000 | 301,000,000 | 317,000,000 |
Total assets | 8,123,000,000 | 8,437,000,000 | 9,106,000,000 |
Goodwill | 5,770,000,000 | 5,898,000,000 | 6,332,000,000 |
Corporate and Other | |||
Segment Reporting Information | |||
Revenues | 304,000,000 | 358,000,000 | 470,000,000 |
Capital expenditures | 22,000,000 | 22,000,000 | 48,000,000 |
Total assets | 4,707,000,000 | 5,424,000,000 | 6,683,000,000 |
Goodwill | 127,000,000 | 170,000,000 | 170,000,000 |
Operating Segments | |||
Segment Reporting Information | |||
Revenues | 8,423,000,000 | 8,668,000,000 | 8,831,000,000 |
Operating expenses | 6,965,000,000 | 7,236,000,000 | 7,602,000,000 |
Depreciation and amortization | 1,420,000,000 | 1,367,000,000 | 1,153,000,000 |
EBITDA | 2,878,000,000 | 2,799,000,000 | 2,382,000,000 |
Acquisition deferred revenue adjustment | 192,000,000 | ||
Acquisition deferred revenue adjustment | 4,000,000 | 7,000,000 | |
Acquisition, integration and other costs | 156,000,000 | 178,000,000 | 281,000,000 |
Asset impairments | 95,000,000 | ||
Adjusted EBITDA | 3,133,000,000 | 2,984,000,000 | 2,855,000,000 |
Operating Segments | IFS | |||
Segment Reporting Information | |||
Revenues | 4,401,000,000 | 4,260,000,000 | 4,178,000,000 |
Operating expenses | 2,788,000,000 | 2,692,000,000 | 2,649,000,000 |
Depreciation and amortization | 349,000,000 | 306,000,000 | 263,000,000 |
EBITDA | 1,962,000,000 | 1,874,000,000 | 1,792,000,000 |
Acquisition deferred revenue adjustment | 0 | ||
Acquisition deferred revenue adjustment | 0 | 0 | |
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | ||
Adjusted EBITDA | 1,962,000,000 | 1,874,000,000 | 1,792,000,000 |
Operating Segments | GFS | |||
Segment Reporting Information | |||
Revenues | 3,718,000,000 | 4,050,000,000 | 4,183,000,000 |
Operating expenses | 2,611,000,000 | 2,990,000,000 | 3,219,000,000 |
Depreciation and amortization | 284,000,000 | 263,000,000 | 247,000,000 |
EBITDA | 1,391,000,000 | 1,323,000,000 | 1,211,000,000 |
Acquisition deferred revenue adjustment | 0 | ||
Acquisition deferred revenue adjustment | 0 | 0 | |
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | ||
Adjusted EBITDA | 1,391,000,000 | 1,323,000,000 | 1,211,000,000 |
Operating Segments | Corporate and Other | |||
Segment Reporting Information | |||
Revenues | 304,000,000 | 358,000,000 | 470,000,000 |
Operating expenses | 1,566,000,000 | 1,554,000,000 | 1,734,000,000 |
Depreciation and amortization | 787,000,000 | 798,000,000 | 643,000,000 |
EBITDA | (475,000,000) | (398,000,000) | (621,000,000) |
Acquisition deferred revenue adjustment | 192,000,000 | ||
Acquisition deferred revenue adjustment | 4,000,000 | 7,000,000 | |
Acquisition, integration and other costs | 156,000,000 | 178,000,000 | 281,000,000 |
Asset impairments | 95,000,000 | ||
Adjusted EBITDA | (220,000,000) | (213,000,000) | (148,000,000) |
Segment reconciling items | |||
Segment Reporting Information | |||
Depreciation and amortization | 1,420,000,000 | 1,367,000,000 | 1,153,000,000 |
EBITDA | 2,878,000,000 | 2,799,000,000 | 2,382,000,000 |
Interest expense, net | 297,000,000 | 337,000,000 | 383,000,000 |
Other income (expense), net | (72,000,000) | (122,000,000) | (9,000,000) |
Provision (benefit) for income taxes | 208,000,000 | (321,000,000) | 291,000,000 |
Net earnings attributable to noncontrolling interest | $ 35,000,000 | $ 33,000,000 | $ 22,000,000 |