Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 21, 2022 | Jun. 30, 2021 | |
Cover | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-16427 | ||
Entity Registrant Name | Fidelity National Information Services, Inc. | ||
Entity Incorporation, State or Country Code | GA | ||
Entity Tax Identification Number | 37-1490331 | ||
Entity Address, Street Address | 601 Riverside Avenue | ||
Entity Address, City | Jacksonville | ||
Entity Address, State | FL | ||
Entity Address, Zip Code | 32204 | ||
City Area Code | 904 | ||
Local Phone Number | 438-6000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 87,314,922,669 | ||
Entity Common Stock, Shares Outstanding (in shares) | 609,590,707 | ||
Documents Incorporated by Reference | The information in Part III hereof is incorporated herein by reference to the registrant’s Proxy Statement on Schedule 14A for the fiscal year ended December 31, 2021, to be filed within 120 days after the close of the fiscal year that is the subject of this Report. | ||
Entity Central Index Key | 0001136893 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Common Stock, par value $0.01 per share | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | FIS | ||
Security Exchange Name | NYSE | ||
1.700% Senior Notes due 2022 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 1.700% Senior Notes due 2022 | ||
Trading Symbol | FIS22B | ||
Security Exchange Name | NYSE | ||
0.125% Senior Notes due 2022 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 0.125% Senior Notes due 2022 | ||
Trading Symbol | FIS22C | ||
Security Exchange Name | NYSE | ||
0.750% Senior Notes due 2023 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 0.750% Senior Notes due 2023 | ||
Trading Symbol | FIS23A | ||
Security Exchange Name | NYSE | ||
1.100% Senior Notes due 2024 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 1.100% Senior Notes due 2024 | ||
Trading Symbol | FIS24A | ||
Security Exchange Name | NYSE | ||
0.625% Senior Notes due 2025 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 0.625% Senior Notes due 2025 | ||
Trading Symbol | FIS25B | ||
Security Exchange Name | NYSE | ||
1.500% Senior Notes due 2027 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 1.500% Senior Notes due 2027 | ||
Trading Symbol | FIS27 | ||
Security Exchange Name | NYSE | ||
1.000% Senior Notes due 2028 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 1.000% Senior Notes due 2028 | ||
Trading Symbol | FIS28 | ||
Security Exchange Name | NYSE | ||
2.250% Senior Notes due 2029 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 2.250% Senior Notes due 2029 | ||
Trading Symbol | FIS29 | ||
Security Exchange Name | NYSE | ||
2.000% Senior Notes due 2030 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 2.000% Senior Notes due 2030 | ||
Trading Symbol | FIS30 | ||
Security Exchange Name | NYSE | ||
3.360% Senior Notes due 2031 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 3.360% Senior Notes due 2031 | ||
Trading Symbol | FIS31 | ||
Security Exchange Name | NYSE | ||
2.950% Senior Notes due 2039 | New York Stock Exchange | |||
Cover | |||
Title of 12(b) Security | 2.950% Senior Notes due 2039 | ||
Trading Symbol | FIS39 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Jacksonville, Florida |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,010 | $ 1,959 |
Settlement assets | 4,020 | 3,914 |
Trade receivables, net of allowance for credit losses of $76 and $82, respectively | 3,772 | 3,314 |
Other receivables | 355 | 317 |
Prepaid expenses and other current assets | 551 | 394 |
Total current assets | 10,708 | 9,898 |
Property and equipment, net | 949 | 887 |
Goodwill | 53,330 | 53,268 |
Intangible assets, net | 11,539 | 13,928 |
Software, net | 3,299 | 3,370 |
Other noncurrent assets | 2,137 | 1,574 |
Deferred contract costs, net | 969 | 917 |
Total assets | 82,931 | 83,842 |
Current liabilities: | ||
Accounts payable, accrued and other liabilities | 2,864 | 2,482 |
Settlement payables | 5,295 | 4,934 |
Deferred revenue | 779 | 881 |
Short-term borrowings | 3,911 | 2,750 |
Current portion of long-term debt | 1,617 | 1,314 |
Total current liabilities | 14,466 | 12,361 |
Long-term debt, excluding current portion | 14,825 | 15,951 |
Deferred income taxes | 4,193 | 4,017 |
Other noncurrent liabilities | 1,915 | 2,026 |
Total liabilities | 35,399 | 34,355 |
Redeemable noncontrolling interest | 174 | 174 |
FIS stockholders’ equity: | ||
Preferred stock, $0.01 par value, 200 shares authorized, none issued and outstanding as of December 31, 2021 and 2020 | 0 | 0 |
Common stock, $0.01 par value, 750 shares authorized, 625 and 621 shares issued as of December 31, 2021 and 2020, respectively | 6 | 6 |
Additional paid in capital | 46,466 | 45,947 |
Retained earnings | 2,889 | 3,440 |
Accumulated other comprehensive earnings (loss) | 252 | 57 |
Treasury stock, $0.01 par value, 16 and 1 common shares as of December 31, 2021 and 2020, respectively, at cost | (2,266) | (150) |
Total FIS stockholders’ equity | 47,347 | 49,300 |
Noncontrolling interest | 11 | 13 |
Total equity | 47,358 | 49,313 |
Total liabilities, redeemable noncontrolling interest and equity | $ 82,931 | $ 83,842 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Trade receivables, net | $ 76 | $ 82 |
FIS stockholders’ equity: | ||
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) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 625,000,000 | 621,000,000 |
Treasury stock, shares (in shares) | 16,000,000 | 1,000,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 13,877 | $ 12,552 | $ 10,333 |
Cost of revenue | 8,682 | 8,348 | 6,610 |
Gross profit | 5,195 | 4,204 | 3,723 |
Selling, general and administrative expenses | 3,938 | 3,516 | 2,667 |
Asset impairments | 202 | 136 | 87 |
Operating income | 1,055 | 552 | 969 |
Other income (expense): | |||
Interest income | 2 | 5 | 52 |
Interest expense | (216) | (339) | (389) |
Other income (expense), net | (52) | 48 | (219) |
Total other income (expense), net | (266) | (286) | (556) |
Earnings (loss) before income taxes and equity method investment earnings (loss) | 789 | 266 | 413 |
Provision (benefit) for income taxes | 371 | 96 | 100 |
Equity method investment earnings (loss) | 6 | (6) | (10) |
Net earnings | 424 | 164 | 303 |
Net (earnings) loss attributable to noncontrolling interest | (7) | (6) | (5) |
Net earnings attributable to FIS common stockholders | $ 417 | $ 158 | $ 298 |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | $ 0.68 | $ 0.26 | $ 0.67 |
Weighted average shares outstanding — basic (in shares) | 616 | 619 | 445 |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | $ 0.67 | $ 0.25 | $ 0.66 |
Weighted average shares outstanding — diluted (in shares) | 621 | 627 | 451 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 424 | $ 164 | $ 303 |
Other comprehensive earnings (loss), before tax: | |||
Unrealized gain (loss) on derivatives | 10 | 2 | (15) |
Foreign currency translation adjustments | 465 | (78) | 646 |
Other adjustments | 4 | 5 | (38) |
Other comprehensive earnings (loss), before tax | 479 | (71) | 593 |
Provision for income tax (expense) benefit related to items of other comprehensive earnings | (284) | 161 | (196) |
Other comprehensive earnings (loss), net of tax | 195 | 90 | 397 |
Comprehensive earnings (loss) | 619 | 254 | 700 |
Net (earnings) loss attributable to noncontrolling interest | (7) | (6) | (5) |
Comprehensive earnings (loss) attributable to FIS common stockholders | $ 612 | $ 248 | $ 695 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common shares | Treasury shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings (loss) | Noncontrolling interest | [1] |
Beginning balance (in shares) at Dec. 31, 2018 | 433 | (106) | ||||||
Beginning balance at Dec. 31, 2018 | $ 10,222 | $ 4 | $ (4,687) | $ 10,800 | $ 4,528 | $ (430) | $ 7 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Worldpay acquisition (in shares) | 180 | 109 | ||||||
Worldpay acquisition | $ 39,095 | $ 2 | $ 5,042 | 34,040 | 11 | |||
Issuance of restricted stock (in shares) | 1 | |||||||
Issuance of restricted stock | 2 | $ 2 | ||||||
Exercise of stock options (in shares) | 1 | 1 | ||||||
Exercise of stock options | 163 | $ 46 | 117 | |||||
Treasury shares held for taxes due upon exercise of stock awards | (56) | $ (55) | (1) | |||||
Purchases of treasury stock (in shares) | (4) | |||||||
Purchases of treasury stock | (400) | $ (400) | ||||||
Stock-based compensation | 402 | 402 | ||||||
Cash dividends declared and other distributions | (665) | (658) | (7) | |||||
Other | (7) | (7) | ||||||
Net earnings | 303 | 298 | 5 | |||||
Other comprehensive earnings (loss), net of tax | 397 | 397 | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 615 | 0 | ||||||
Ending balance at Dec. 31, 2019 | 49,456 | $ 6 | $ (52) | 45,358 | 4,161 | (33) | 16 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock (in shares) | 2 | |||||||
Issuance of restricted stock | 0 | 7 | (7) | |||||
Exercise of stock options (in shares) | 4 | |||||||
Exercise of stock options | 317 | $ 0 | 317 | |||||
Treasury shares held for taxes due upon exercise of stock options (in shares) | (1) | |||||||
Treasury shares held for taxes due upon exercise of stock awards | (112) | $ (105) | (7) | |||||
Stock-based compensation | 283 | 283 | ||||||
Cash dividends declared and other distributions | (880) | (873) | (7) | |||||
Other | (3) | 3 | (6) | |||||
Net earnings | 162 | 158 | 4 | |||||
Other comprehensive earnings (loss), net of tax | 90 | 90 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 621 | (1) | ||||||
Ending balance at Dec. 31, 2020 | 49,313 | $ 6 | $ (150) | 45,947 | 3,440 | 57 | 13 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock (in shares) | 4 | |||||||
Issuance of restricted stock | 2 | $ 0 | 2 | |||||
Exercise of stock options (in shares) | 0 | |||||||
Exercise of stock options | 128 | 128 | ||||||
Treasury shares held for taxes due upon exercise of stock options (in shares) | 0 | |||||||
Treasury shares held for taxes due upon exercise of stock awards | (120) | $ (120) | 0 | |||||
Purchases of treasury stock (in shares) | (15) | |||||||
Purchases of treasury stock | (1,996) | $ (1,996) | ||||||
Stock-based compensation | 383 | 383 | ||||||
Cash dividends declared and other distributions | (977) | (968) | (9) | |||||
Other | 6 | 6 | 0 | |||||
Net earnings | 424 | 417 | 7 | |||||
Other comprehensive earnings (loss), net of tax | 195 | 195 | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 625 | (16) | ||||||
Ending balance at Dec. 31, 2021 | $ 47,358 | $ 6 | $ (2,266) | $ 46,466 | $ 2,889 | $ 252 | $ 11 | |
[1] | Excludes redeemable noncontrolling interest that is not considered equity. See Note 3, Virtus Acquisition , for additional information. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 1.56 | $ 1.40 | $ 1.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net earnings | $ 424 | $ 164 | $ 303 |
Adjustment to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 4,015 | 3,714 | 2,444 |
Amortization of debt issue costs | 30 | 31 | 24 |
Acquisition-related financing foreign exchange | 0 | 0 | (125) |
Asset impairments | 202 | 136 | 87 |
Loss (gain) on sale of businesses, investments and other | (227) | 9 | 18 |
Loss on extinguishment of debt | 528 | 0 | 217 |
Stock-based compensation | 383 | 283 | 402 |
Deferred income taxes | (81) | (206) | (109) |
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | |||
Trade and other receivables | (552) | (75) | (161) |
Settlement activity | 653 | 862 | (165) |
Prepaid expenses and other assets | (526) | (278) | (112) |
Deferred contract costs | (453) | (473) | (379) |
Deferred revenue | 23 | 58 | 40 |
Accounts payable, accrued liabilities, and other liabilities | 391 | 217 | (74) |
Net cash provided by operating activities | 4,810 | 4,442 | 2,410 |
Cash flows from investing activities: | |||
Additions to property and equipment | (320) | (263) | (200) |
Additions to software | (931) | (866) | (628) |
Acquisitions, net of cash acquired | (767) | (469) | (6,632) |
Net proceeds from sale of businesses and investments | 370 | 0 | 49 |
Other investing activities, net | (123) | 684 | (90) |
Net cash provided by (used in) investing activities | (1,771) | (914) | (7,501) |
Cash flows from financing activities: | |||
Borrowings | 54,073 | 47,695 | 33,352 |
Repayment of borrowings and other financing obligations | (53,440) | (49,067) | (24,672) |
Debt issuance costs | (74) | 0 | (101) |
Net proceeds from stock issued under stock-based compensation plans | 121 | 332 | 161 |
Treasury stock activity | (2,114) | (112) | (453) |
Dividends paid | (961) | (868) | (656) |
Other financing activities, net | (143) | (731) | (50) |
Net cash provided by (used in) financing activities | (2,538) | (2,751) | 7,581 |
Effect of foreign currency exchange rate changes on cash | (248) | 42 | 18 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 253 | 819 | 2,508 |
Cash, cash equivalents and restricted cash, beginning of year | 4,030 | 3,211 | 703 |
Cash and cash equivalents, end of year | 4,283 | 4,030 | 3,211 |
Supplemental cash flow information: | |||
Cash paid for interest | 491 | 428 | 332 |
Cash paid for income taxes | $ 440 | $ 282 | $ 321 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. On July 31, 2019, FIS completed the acquisition of Worldpay Inc. ("Worldpay"), and Worldpay's results of operations and financial position are included in the consolidated financial statements from and after the date of acquisition. See Note 3 for additional discussion. FIS reports its financial performance based on the following segments: Merchant Solutions, Banking Solutions, Capital Market Solutions, and Corporate and Other. The Company regularly assesses its portfolio of assets and reclassified certain non-strategic businesses from the Merchant Solutions, Banking Solutions, and Capital Market Solutions segments into the Corporate and Other segment during the year ended December 31, 2020. These operations represented approximately 3% of 2020 revenue and were recast in all prior-period segment information presented. See Note 21 for a summary of each segment. Amounts in tables in the financial statements and accompanying footnotes may not sum or calculate due to rounding. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 and Management Estimates 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. 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. The inputs into management's critical and significant accounting estimates consider the economic impact of the outbreak of the novel coronavirus ("COVID-19") and the subsequently declared COVID-19 pandemic ("the pandemic") by the World Health Organization on March 11, 2020. The extent to which the pandemic further affects our results of operations and financial position will depend on future developments, which are highly uncertain and are difficult to predict, including, but not limited to, the duration and spread of the pandemic and any recurrence or new strain of COVID-19, its severity, the success of vaccines or other actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Accordingly, our future results could be materially affected by changes in our estimates. (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 electronic funds transfer and network 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 net in-transit balances due to the Company are included in Cash and cash equivalents on the consolidated balance sheets. The carrying amounts reported in the consolidated balance sheets for these instruments approximate their fair value. The Company records restricted cash in captions other than Cash and cash equivalents in the consolidated balance sheets. The reconciliation between Cash and cash equivalents in the consolidated balance sheets and Cash, cash equivalents and restricted cash per the consolidated statements of cash flows is as follows (in millions): December 31. 2021 2020 Cash and cash equivalents on the consolidated balance sheets $ 2,010 $ 1,959 Merchant float (in Settlement assets) (see Note 2(f)) 2,273 2,071 Total Cash, cash equivalents and restricted cash per the consolidated statements of cash flows $ 4,283 $ 4,030 (c) Fair Value Measurements Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations In a business combination transaction, an acquirer recognizes, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree and generally measures these items 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 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 also 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 acquisition 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. Contingent consideration liabilities or receivables recorded in connection with business acquisitions are also adjusted for changes in fair value until settled. Fair Value of Financial Instruments The carrying amounts reported in the consolidated balance sheets for settlement assets and payables as well as 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 based on quoted prices of our senior notes and trades of our debt in close proximity to year end, which are considered Level 2-type measurements. The Company also holds, or has held, certain derivative instruments, specifically interest rate swaps and foreign currency exchange forward contracts, which are also valued using Level 2-type measurements. 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. 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. (d) Derivative Financial Instruments The Company records all derivatives, whether designated in hedging relationships or not, on the consolidated balance sheets at fair value. During all periods presented, the Company used cross-currency interest rate swaps to engage in hedging activities relating to its investment in foreign-currency-denominated operations. The Company designated these cross-currency interest rate swaps as net investment hedges. The Company also used interest rate swaps to engage in hedging activities relating to changes in the fair value of its long-term debt. The Company designated these interest rate swaps as fair value hedges. During 2019, the Company entered into foreign currency forward contracts as well as treasury lock and interest rate swap contracts to reduce the volatility in the Company's cash flows during the period leading up to the Company's debt issuances related to the Worldpay acquisition. The Company designated these treasury lock and interest rate swap contracts as cash flow hedges. Derivative instruments are included in the accompanying consolidated balance sheets in Prepaid expenses and other current assets; Other noncurrent assets; Accounts payable, accrued and other liabilities; or Other noncurrent liabilities, as appropriate. Changes in fair value are recorded as a component of Accumulated other comprehensive earnings (loss), net of tax, for all derivative instruments except the fair value hedges, which are recorded as an adjustment to long-term debt, and the foreign currency forward contracts, which were recorded through Other income (expense), net. The amounts included in Accumulated other comprehensive earnings (loss) for the cash flow hedges are reclassified from comprehensive earnings (loss) as an adjustment to Unrealized gain (loss) on derivatives and into interest expense as yield adjustments over the periods in which the related interest payments that were hedged are made. As of December 31, 2021 and 2020, the Company had no outstanding cash flow hedge contracts. The Company also utilizes foreign-currency-denominated debt as 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 as a component of Accumulated other comprehensive earnings (loss). Any ineffective portion of these hedging instruments impacts net earnings when the ineffectiveness occurs. See Notes 13 and 19 for additional details. (e) Trade Receivables Change in Accounting Policy The Company adopted FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses ("Topic 326"), with an adoption date of January 1, 2020. As a result, the Company changed its accounting policy for allowance for credit losses. The accounting policy pursuant to Topic 326 for credit losses is disclosed below. The adoption of Topic 326 resulted in an immaterial cumulative effect adjustment recorded in retained earnings as of January 1, 2020. Allowance for Credit Losses The Company monitors trade receivable balances and contract assets as well as other receivables and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. The allowance for credit losses is separate from the chargeback liability described in Note 16. While the COVID-19 pandemic did not result in a significant increase in the Company's expected credit loss allowance recorded as of December 31, 2021 and 2020, it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic could have a material impact on management's estimates. (f) Settlement Assets and Payables The principal components of the Company's settlement assets and payables on the consolidated balance sheets are as follows (in millions): December 31, 2021 2020 Settlement assets Settlement deposits $ 530 $ 1,181 Merchant float 2,273 2,071 Settlement receivables 1,217 662 Total Settlement assets $ 4,020 $ 3,914 Settlement payables $ 5,295 $ 4,934 The payment solution services that give rise to the settlement balances described below 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. Banking Solutions We manage certain 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 or clients, 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. Merchant Solutions Settlement assets and payables represent intermediary balances arising from the settlement process which involves the transferring of funds between card issuers, merchants and various financial institutions ("Sponsoring Members"). Funds are processed under two models, a sponsorship model and a direct member model. In the U.S., the Company operates under the sponsorship model, and outside the U.S., the Company operates under the direct membership model. Under the sponsorship model, in order for the Company to provide electronic payment processing services, Visa, MasterCard and other payment networks require sponsorship by a member clearing bank. The Company has an agreement with Sponsoring Members to provide sponsorship services to the Company. Under the sponsorship agreements, the Company is registered as a Visa Third-Party Agent and a MasterCard Service Provider. The sponsorship services allow us to route transactions under the Sponsoring Members' membership to clear card transactions through Visa, MasterCard and other networks. Under this model, the standards of the payment networks restrict us from performing funds settlement and, as such, require that these funds be in the possession of the Sponsoring Member until the merchant is funded. Accordingly, settlement receivables and settlement payables resulting from the submission of settlement files to the network or cash received from the network in advance of funding the network are the responsibility of the Sponsoring Member and are not recorded on the Company's consolidated balance sheets. Settlement receivables and settlement payables are recorded in the U.S. as a result of intermediary balances due to/from the Sponsoring Member. The Company receives funds from certain networks which are owed to the Sponsoring Member for settlement. These funds are recorded in Cash and cash equivalents. In other cases, the Company transfers funds to the Sponsoring Member for settlement in advance of receiving funds from the network. These timing differences result in settlement receivables and settlement payables. The amounts are generally collected or paid the following one three Under the direct membership model, the Company is a direct member in Visa, MasterCard and other payment networks as third party sponsorship to the networks is not required. This results in the Company performing settlement between the networks and the merchant and requires adherence to the standards of the payment networks in which the Company is a direct member. Merchant float, settlement receivables and settlement payables result when the Company submits the merchant file to the network or when funds are received by the Company in advance of paying the funds to the merchant. The amounts are generally collected or paid the following one three (g) Contract Related Balances 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. Trade 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 trade 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. At December 31, 2021 and 2020, contract assets of $238 million and $186 million, respectively, are included in Prepaid expenses and other current assets and Other noncurrent assets on the consolidated balance sheets, and noncurrent deferred revenue is included in Other noncurrent liabilities as detailed in Note 11. Changes in the contract assets and deferred revenue balances for the years ended December 31, 2021 and 2020, were not materially impacted by any factors other than those described above. In some cases, signing bonuses are paid, or credits are offered, to customers in connection with the origination or renewal of customer contracts. These incentives are recorded as Other noncurrent assets on our consolidated balance sheets and amortized on a straight-line basis as a reduction of revenue over the lesser of the useful life of the solution or the expected customer relationship period for new contracts or over the contract period for renewal contracts. (h) Goodwill Goodwill represents the excess of cost over the fair value of identifiable assets acquired and liabilities assumed in business combinations. Goodwill is not amortized but is assessed for impairment by reporting unit. The Company assesses goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. An impairment charge is recognized when and to the extent a reporting unit's carrying amount is determined to exceed its fair value. Our reporting units are the same as our primary operating segments, with additional reporting units for certain non-strategic businesses within the Corporate and Other segment. The Company has the option to first assess qualitatively whether it is more likely than not that a reporting unit's carrying amount exceeds its fair value. The option of whether to perform the qualitative assessment is made annually and may vary by reporting unit. Events and circumstances that are considered in performing the qualitative assessment include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, events affecting the reporting unit or Company as a whole, including a sustained decrease in stock price. When performing the qualitative assessment, we examine those factors most likely to affect each reporting unit's fair value. If we conclude that it is more likely than not that the reporting unit's fair value is less than its carrying amount (that is, a likelihood of more than 50 percent) as a result of the qualitative assessment, or we elect to bypass the qualitative assessment for a reporting unit, then we must perform the quantitative assessment for that reporting unit. In applying the quantitative assessment, we typically engage third-party valuation specialists to assist us in determining the fair value of a reporting unit based on a weighted average of multiple valuation techniques, principally a combination of an income approach and a market approach, which are Level 3-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 the reporting unit determined using the quantitative analysis exceeds the carrying amount of the reporting unit's net assets, goodwill is not impaired. For each of 2021 and 2019, we began our annual assessment with the qualitative assessment and concluded that it remained more likely than not that the fair value of each of our reporting units continued to exceed the carrying amounts. For 2020, we began our annual assessment for the Banking Solutions and Capital Market Solutions reporting units with qualitative assessments and concluded that it remained more likely than not that the fair value of each of the reporting units continued to exceed their respective carrying amounts. For Merchant Solutions, we began our 2020 annual assessment with a quantitative assessment due to the economic impact of the COVID-19 pandemic on our Merchant Solutions business and its primary operations being recently acquired as part of the Worldpay acquisition. As a result of the assessment, the fair value of the reporting unit was estimated to be in excess of its carrying amount by approximately 4%. Based on the results of our assessments, $94 million of goodwill related to certain non-strategic businesses within the Corporate and Other segment was impaired in 2020. For all other reporting units for all periods presented, goodwill was not impaired. In addition, due to the continued economic impact of the COVID-19 pandemic, we evaluated if events and circumstances as of December 31, 2021, indicated potential impairment. We performed a qualitative assessment by examining factors most likely to affect our reporting units' fair values and considered the impact to our business from the COVID-19 pandemic. The factors examined involve significant use of management judgment and included, among others, (1) forecasted revenue, growth rates, operating margins, and capital expenditures used to calculate estimated future cash flows, (2) future economic and market conditions and (3) FIS' market capitalization. Based on our impairment assessment as of December 31, 2021, we concluded that it remained more likely than not that the fair value continues to exceed the carrying amount for each of our reporting units; therefore, goodwill was not impaired. However, it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic on our Merchant Solutions business, such as an extended duration of the pandemic and/or government-imposed shutdowns, prolonged economic downturn or recession, or lack of governmental support for recovery, could have a material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment and could result in future goodwill impairment. (i) 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. During 2020, the Company recognized impairment losses totaling $42 million on certain long-lived assets related to reducing office space, including $30 million for operating lease right-of-use assets. There were no significant long-lived asset impairment losses recognized during 2021 and 2019. (j) Intangible Assets The Company has intangible assets that consist primarily of customer relationships and trademarks (i.e., a collective term for trademarks, trade names, and related intellectual property rights) that are recorded in connection with acquisitions at their fair value based on the results of valuation analyses. Customer relationships and trademarks acquired in business combinations are generally valued using the multi-period excess earnings method and relief-from-royalty method, respectively, which are Level 3-type measurements. 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 with finite lives are amortized over periods ranging up to five years. Intangible assets with finite lives are reviewed for impairment following the same approach as long-lived assets. (k) Software 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, typically ranging from one The capitalization of software development costs is based on whether the software is to be sold, leased or otherwise marketed, or 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 solution-by-solution 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 typically ranges from three See Note 8 for software asset impairment losses recognized during 2021 and 2019, and incremental software amortization expense recognized during 2021. There were no material software asset impairment losses recognized during 2020. (l) 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. 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 or portfolio of similar contracts and amortized using an appropriate single measure of performance considering all of the performance obligations in the contracts. 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. See Note 9 for deferred contract cost asset impairment losses and incremental amortization expense recognized during 2021. There were no significant deferred contract cost asset impairment losses recognized during 2020 or 2019. (m) 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 typically as follows: 30 years for buildings and three (n) 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. Certain of the Company's earnings are indefinitely reinvested offshore and could be subject to additional income tax if repatriated. It is not practicable to determine the unrecognized deferred tax liability on a hypothetical distribution of those earnings. (o) Operating Leases The Company leases certain of its property, primarily real estate, under operating leases. Operating lease right-of-use ("ROU") assets are included in Other noncurrent assets, and operating lease liabilities are included in Accounts payable, accrued and other liabilities and Other noncurrent liabilities on the consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. Operating lease ROU assets also include any prepaid lease payments and exclude lease incentives received. The Company uses an incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Lease term for accounting purposes may include options to extend (generally ranging from one (p) 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"), c |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Payrix Acquisition On December 23, 2021, FIS acquired 100% of the equity of Payrix Holdings, LLC, and subsidiaries ("Payrix"), previously a privately held fintech company that specializes in embedding and monetizing payments in SaaS platforms to serve the eCommerce needs of small- to medium-sized businesses through a global card-not-present offering. The acquisition was accounted for as a business combination. We recorded a provisional allocation of the $777 million purchase price, primarily paid in cash, to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values, consisting primarily of $132 million in software assets. We also recorded $620 million in goodwill. Our purchase price allocation is provisional as of December 31, 2021, and we expect to finalize as soon as practicable, but no later than one year from the date of acquisition. Virtus Acquisition On January 2, 2020, FIS acquired a majority interest in Virtus Partners ("Virtus"), previously a privately held company that provides high-value managed services and technology to the credit and loan market. FIS acquired a 70% voting and financial interest in Virtus with 30% interest retained by the founders of Virtus ("Founders"). The acquisition was accounted for as a business combination. We recorded an allocation of the $404 million cash purchase price and the $173 million fair value of redeemable noncontrolling interest to tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values, consisting primarily of $254 million in customer relationships and $51 million in software assets. We also recorded $253 million in goodwill. The Company completed its assessment of the fair value of assets acquired and liabilities assumed within the one-year period from the date of acquisition. We recorded the 30% interest retained by the Founders at the acquisition date as redeemable noncontrolling interest, which is reflected outside of stockholders' equity on the consolidated balance sheet, given the agreement between FIS and the Founders that provides FIS with a call option and the Founders with a put option requiring FIS to purchase all of the Founders' retained interest in Virtus at a redemption value determined pursuant to performance goals stated in the agreement. The call option and put option are exercisable at any time after two years and three years, respectively, following the acquisition date. Changes in the estimated redemption value are accreted through equity from the acquisition date to the date the call option becomes exercisable, to the extent the estimated redemption value is greater than the initial redeemable noncontrolling interest value recorded, as adjusted for the Founders' share of the cumulative impact of net earnings (loss). Worldpay Acquisition On July 31, 2019, FIS completed the acquisition of Worldpay by acquiring 100 percent of Worldpay's equity. The Worldpay acquisition brought an integrated technology platform with a comprehensive suite of solutions and services serving merchants and financial institutions and provided FIS with enhanced global payment capabilities, robust risk and fraud solutions and advanced data analytics. The $48,245 million purchase price for the Worldpay acquisition was accounted for as a business combination. Unaudited Supplemental Pro Forma Results Giving Effect to the Worldpay Acquisition Worldpay's revenues and pre-tax loss of $1,880 million and $436 million, respectively, which include the impact of purchase accounting adjustments, are included in the consolidated statements of earnings for the period from July 31, 2019 through December 31, 2019. Unaudited supplemental pro forma results of operations for the years ended December 31, 2019, assuming the acquisition had occurred as of January 1, 2018, are presented below (in millions, except per share amounts): Year ended December 31, 2019 Revenue $ 12,724 Net earnings (loss) attributable to FIS common stockholders $ 254 Net earnings (loss) per share-basic attributable to FIS common stockholders $ 0.41 Net earnings (loss) per share-diluted attributable to FIS common stockholders $ 0.41 The unaudited pro forma results include certain pro forma adjustments to revenue and net earnings that were directly attributable to the acquisition, assuming the acquisition had occurred on January 1, 2018, including the following: • additional amortization expense that would have been recognized relating to the acquired intangible assets; • adjustment to interest expense to reflect the removal of Worldpay debt and the addition of borrowings of FIS in conjunction with the acquisition; and |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue In the following tables, revenue is disaggregated by primary geographical market and type of revenue. The tables also include a reconciliation of the disaggregated revenue with the Company's reportable segments. Prior-period amounts have been recast to conform to the reportable segment presentation changes made during the year ended December 31, 2020, as discussed in Note 21. For the year ended December 31, 2021 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 3,161 $ 5,454 $ 1,490 $ 228 $ 10,333 All others 1,335 942 1,134 133 3,544 Total $ 4,496 $ 6,396 $ 2,624 $ 361 $ 13,877 Type of Revenue: Recurring revenue: Transaction processing and services $ 4,370 $ 4,778 $ 1,183 $ 317 $ 10,648 Software maintenance 2 359 510 1 872 Other recurring 83 170 96 11 360 Total recurring 4,455 5,307 1,789 329 11,880 Software license 8 129 374 — 511 Professional services 1 591 451 5 1,048 Other non-recurring 32 369 10 27 438 Total $ 4,496 $ 6,396 $ 2,624 $ 361 $ 13,877 For the year ended December 31, 2020 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 2,719 $ 5,105 $ 1,453 $ 274 $ 9,551 All others 1,048 839 987 127 3,001 Total $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 Type of Revenue: Recurring revenue: Transaction processing and services $ 3,680 $ 4,443 $ 1,091 $ 374 $ 9,588 Software maintenance 2 352 493 1 848 Other recurring 77 165 99 2 343 Total recurring 3,759 4,960 1,683 377 10,779 Software license 2 89 328 6 425 Professional services 1 605 427 5 1,038 Other non-recurring 5 290 2 13 310 Total $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 For the year ended December 31, 2019 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 1,409 $ 4,738 $ 1,398 $ 314 $ 7,859 All others 533 854 920 167 2,474 Total $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Type of Revenue: Recurring revenue: Transaction processing and services $ 1,890 $ 4,056 $ 993 $ 420 $ 7,359 Software maintenance 2 360 482 — 844 Other recurring 37 177 106 — 320 Total recurring 1,929 4,593 1,581 420 8,523 Software license 8 150 328 13 499 Professional services 1 581 406 6 994 Other non-recurring 4 268 3 42 317 Total $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Contract Balances The Company recognized revenue of approximately $680 million, $764 million and $762 million, during the years ended December 31, 2021, 2020 and 2019, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2021, approximately $23.0 billion of revenue is estimated to be recognized in the future primarily from the Banking Solutions and Capital Market Solutions segments' 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 30% of the Banking Solutions and Capital Market Solutions segments' remaining performance obligations over the next 12 months, approximately another 21% over the next 13 to 24 months, and the balance thereafter. As permitted by ASC 606, Revenue from Contracts with Customers , the Company has elected to exclude from this disclosure an estimate for the Merchant Solutions segment, which is primarily comprised of contracts with an original duration of one year or less or variable consideration that meet specific criteria. This segment's core performance obligations consist of variable consideration under a stand-ready series of distinct days of service, and revenue from the segment's products and service arrangements are generally billed and recognized as the services are performed. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Land $ 46 $ 48 Buildings 397 295 Leasehold improvements 162 157 Computer equipment 1,754 1,622 Furniture, fixtures, and other equipment 161 170 2,520 2,292 Accumulated depreciation and amortization (1,571) (1,405) Total Property and equipment, net $ 949 $ 887 During the years ended December 31, 2021 and 2020, the Company entered into other financing obligations of $35 million and $21 million, respectively, for certain hardware and software. The assets are included in property and equipment and software and the 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. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GoodwillChanges in goodwill during the years ended December 31, 2021 and 2020, are summarized below (in millions). Prior-period amounts have been recast to conform to the reportable segment presentation changes made during the year ended December 31, 2020, as discussed in Note 21. Merchant Banking Capital Corporate and Other Total Balance, December 31, 2019 $ 35,553 $ 12,217 $ 4,358 $ 114 $ 52,242 Goodwill attributable to acquisitions (11) 57 253 — 299 Foreign currency adjustments 725 5 91 — 821 Asset impairments — — — (94) (94) Balance, December 31, 2020 36,267 12,279 4,702 20 53,268 Goodwill attributable to acquisitions 620 — — — 620 Foreign currency adjustments (484) (35) (39) — (558) Balance, December 31, 2021 $ 36,403 $ 12,244 $ 4,663 $ 20 $ 53,330 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets as of December 31, 2021, consist of the following (in millions): Cost Accumulated Net Customer relationships $ 18,410 $ (7,141) $ 11,269 Trademarks and other 509 (239) 270 Total Intangible assets, net $ 18,919 $ (7,380) $ 11,539 Intangible assets as of December 31, 2020, consist of the following (in millions): Cost Accumulated Net Customer relationships $ 18,586 $ (5,024) $ 13,562 Trademarks and other 555 (189) 366 Total Intangible assets, net $ 19,141 $ (5,213) $ 13,928 Amortization expense for intangible assets with finite lives was $2,383 million, $2,400 million and $1,444 million for the years ended December 31, 2021, 2020 and 2019, respectively. Estimated amortization of intangible assets for the next five years is as follows (in millions): 2022 $ 2,232 2023 2,042 2024 1,843 2025 1,675 2026 1,214 |
Software
Software | 12 Months Ended |
Dec. 31, 2021 | |
Research and Development [Abstract] | |
Software | Software Software as of December 31, 2021 and 2020, consists of the following (in millions): 2021 2020 Software from acquisitions $ 2,181 $ 2,077 Capitalized software development costs 3,286 2,826 Purchased software 728 632 6,195 5,535 Accumulated amortization (2,896) (2,165) Total Software, net $ 3,299 $ 3,370 |
Deferred Contract Costs
Deferred Contract Costs | 12 Months Ended |
Dec. 31, 2021 | |
Capitalized Contract Cost [Abstract] | |
Deferred Contract Costs | Deferred Contract Costs Origination and fulfillment costs from contracts with customers capitalized as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Contract costs on implementations in progress $ 218 $ 245 Contract origination costs on completed implementations, net 553 470 Contract fulfillment costs on completed implementations, net 198 202 Total Deferred contract costs, net $ 969 $ 917 For the years ended December 31, 2021, 2020 and 2019, amortization of deferred contract costs on completed implementations was $335 million, $225 million and $184 million. During the year ended December 31, 2021, the Company recorded $58 million of impairments and $38 million of incremental amortization expense related to deferred contract costs driven by the Company's platform modernization, also discussed in Note 8. |
Accounts Payable, Accrued and O
Accounts Payable, Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable, Accrued and Other Liabilities | Accounts Payable, Accrued and Other Liabilities Accounts payable, accrued and other liabilities as of December 31, 2021 and 2020, consists of the following (in millions): 2021 2020 Trade accounts payable and other accrued liabilities $ 1,829 $ 1,576 Salaries and incentives 403 261 Taxes other than income tax 299 236 Accrued benefits and payroll taxes 134 155 Operating lease liabilities 146 152 Accrued interest payable 53 102 Total Accounts payable, accrued and other liabilities $ 2,864 $ 2,482 |
Other Noncurrent Assets and Lia
Other Noncurrent Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Noncurrent Assets and Liabilities [Abstract] | |
Other Noncurrent Assets and Liabilities | Other Noncurrent Assets and Liabilities Other noncurrent assets as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Operating lease ROU assets (1) $ 462 $ 534 Equity security investments 358 81 Visa Europe and contingent value rights ("CVR") related assets 197 70 Other 1,120 889 Total Other noncurrent assets $ 2,137 $ 1,574 Other noncurrent liabilities as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Operating lease liabilities (1) $ 378 $ 453 Tax Receivable Agreement liability (2) 267 447 CVR liability 478 401 Deferred revenue 175 59 Other 617 666 Total Other noncurrent liabilities $ 1,915 $ 2,026 (1) See Note 14, Operating Leases (2) See Note 16, Commitments and Contingencies Visa Europe and Contingent Value Rights As part of the Worldpay acquisition, the Company acquired certain assets and liabilities related to the June 2016 Worldpay Group plc (Legacy Worldpay) disposal of its ownership interest in Visa Europe to Visa Inc. As part of the disposal, Legacy Worldpay received proceeds from Visa Inc. in the form of cash ("cash consideration") and convertible preferred stock ("preferred stock"), the value of which may be reduced by losses incurred relating to ongoing interchange-related litigation involving Visa Europe. The preferred stock becomes convertible into Visa Inc. Class A common stock ("common stock") in stages as determined by Visa Inc. in accordance with the relevant transaction documents pertaining to the aforementioned disposal of the Visa Europe ownership interest. The preferred stock becomes fully convertible no later than 2028 (subject to a holdback to cover any pending claims). Also in connection with the disposal and pursuant to the terms of an amendment discussed further below, Legacy Worldpay agreed to pay former Legacy Worldpay owners 90% of the net-of-tax proceeds from the disposal, known as contingent value rights, which is recorded as a liability ("CVR liability") on the consolidated balance sheets. On September 17, 2020, the Company executed an amendment with the former Legacy Worldpay owners to pay approximately one-third of the cash consideration component of the CVR liability, or $185 million, to the former Legacy Worldpay owners upon amendment execution and to pay the remaining approximately two-thirds of the cash consideration on October 12, 2027, subject to reduction due to losses incurred by Visa Inc. relating to the litigation. The partial payment of the cash consideration was reflected as Other financing activities, net, on the consolidated statement of cash flows for the year ended December 31, 2020. In the fourth quarter of 2020, Visa Inc. released a portion of the preferred stock that was converted into common stock. The Company sold the common stock for $552 million and paid 90% of the net-of-tax proceeds of $403 million to the former Legacy Worldpay owners. The sale of stock and related payment to the former Legacy Worldpay owners was reflected as Other investing activities, net and Other financing activities, net, respectively on the consolidated statement of cash flows for the year ended December 31, 2020. The Company has elected the fair value option under ASC 825, Financial Instruments ("ASC 825"), for measuring its preferred stock asset and CVR liability. The fair value of the preferred stock was $197 million and $70 million at December 31, 2021 and 2020, respectively, recorded in Other noncurrent assets on the consolidated balance sheets. The fair value of the CVR liability was $478 million and $401 million at December 31, 2021 and 2020, respectively, recorded in Other noncurrent liabilities on the consolidated balance sheets. Pursuant to ASC 825, the Company remeasures the fair value of the preferred stock and CVR liability each reporting period. The net change in fair value was $53 million, $78 million and $5 million for the years ended December 31, 2021, 2020 and 2019, respectively, recorded in Other income (expense), net on the consolidated statements of earnings. The estimated fair value of the preferred stock and related component of the CVR liability are determined using Level 3-type measurements. Significant inputs into the valuation of the preferred stock include the Visa Inc. Class A common stock price per share and the conversion ratio, which are observable, as well as the expected timing of future preferred stock releases for conversion into common stock and an estimate of the potential losses that will result from the ongoing litigation involving Visa Europe, which are unobservable. The estimated fair value of the cash consideration component of the CVR liability is determined using Level 3-type measurements, utilizing a discount rate based on the bond yield for the Company's credit rating and remaining payment term as the significant unobservable input. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt as of December 31, 2021 and 2020, consists of the following (in millions): December 31, 2021 Weighted Average Interest Interest December 31, Rates Rate (1) Maturities 2021 2020 Fixed Rate Notes Senior USD Notes 0.4% - 4.8% 1.8% 2023 - 2048 $ 6,909 $ 4,938 Senior Euro Notes 0.1% - 3.0% 1.3% 2022 - 2039 7,656 8,891 Senior GBP Notes 1.7% - 3.4% 1.6% 2022 - 2031 1,655 2,526 Senior Euro Floating Rate Notes N/A 2021 — 613 Revolving Credit Facility (2) 1.4% 2026 325 251 Other (3) (103) 46 Total long-term debt, including current portion 16,442 17,265 Current portion of long-term debt (1,617) (1,314) Long-term debt, excluding current portion $ 14,825 $ 15,951 (1) The weighted average interest rate includes the impact of interest rate swaps (see Note 13). (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. The weighted average interest rate on the Revolving Credit Facility excludes fees. (3) Other includes financing obligations for certain hardware and software, the fair value of interest rate swaps (see Note 13), unamortized non-cash bond discounts and unamortized debt issuance costs. Short-term borrowings as of December 31, 2021 and 2020, consist of the following (in millions): December 31, 2021 Weighted Average Interest December 31, Rate Maturities 2021 2020 Euro-commercial paper notes ("ECP Notes") (0.5) % Up to 183 days $ 1,723 $ 861 U.S. commercial paper notes ("USCP Notes") 0.4 % Up to 397 days 2,087 1,745 Other 101 144 Total Short-term borrowings $ 3,911 $ 2,750 As of December 31, 2021, the weighted average interest rate of the Company's outstanding debt was 0.9%, including the impact of interest rate swaps (see Note 13). The obligations of FIS under the Revolving Credit Facility, ECP Notes and USCP Notes, and all of its outstanding senior notes rank equal in priority and are unsecured. The following summarizes the aggregate maturities of our long-term debt, including other financing obligations for certain hardware and software, based on stated contractual maturities, excluding the fair value of the interest rate swaps (see Note 13) and net unamortized non-cash bond discounts of $(126) million as of December 31, 2021 (in millions): Total 2022 $ 1,620 2023 2,193 2024 1,325 2025 715 2026 1,581 Thereafter 9,237 Total principal payments 16,671 Debt issuance costs, net of accumulated amortization (103) Total long-term debt $ 16,568 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 on March 2, 2026. Senior Notes FIS may redeem the Senior USD Notes, Senior Euro Notes and Senior GBP Notes (collectively, the "Senior 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 Senior Notes during the period described in the related indenture (ranging from one On May 21, 2021, FIS repaid an aggregate principal amount of €446 million in Senior Euro Floating Rate Notes, on their due date, pursuant to the related indenture. In March 2021, pursuant to cash tender offers and make-whole redemptions, FIS purchased and redeemed an aggregate principal amount of $5.1 billion in Senior Notes, comprised of $3,529 million in Senior USD Notes, $600 million in Senior Euro Notes, $871 million in Senior GBP Notes, and $66 million in Senior Euro Floating Rate Notes, with interest rates ranging from 0.0% to 5.0% and maturities ranging from 2021 to 2029, resulting in a loss on extinguishment of debt of approximately $528 million, recorded in Other income (expense), net on the consolidated statement of earnings, relating to tender premiums, make-whole amounts, and fees; the write-off of unamortized bond discounts and debt issuance costs; and losses on related derivative instruments. The Company funded the purchase and redemption of the Senior Notes with proceeds on borrowings from the issuance and sale of Senior USD Notes on March 2, 2021. On March 2, 2021, FIS completed the issuance and sale of Senior USD Notes with an aggregate principal amount of $5.5 billion with interest rates ranging from 0.4% to 3.1% and maturities ranging from 2023 to 2041 ("new Senior USD Notes"). The proceeds from the debt issuance were subsequently used to purchase and redeem the Senior Notes discussed above with the remainder used to repay a portion of our commercial paper notes. On December 15, 2020, FIS redeemed an aggregate principal amount of €500 million in Senior Euro Notes, which were due in 2021, one month prior to maturity. The notes were redeemed pursuant to the related indenture allowing redemption without a make-whole payment. In December 2019, pursuant to cash tender offers, FIS purchased and redeemed an aggregate principal amount of $3.0 billion in Senior USD Notes, resulting in a pre-tax charge of approximately $217 million relating to tender premiums and fees as well as the write-off of previously capitalized debt issuance costs. The Senior Notes are subject to customary covenants, including, among others, customary events of default. Commercial Paper FIS has a Euro-commercial paper ("ECP") program for the issuance and sale of senior, unsecured commercial paper notes, up to a maximum aggregate amount outstanding at any time of $4.7 billion (or its equivalent in other currencies). The ECP program will generally be used for general corporate purposes. FIS has a U.S. commercial paper ("USCP") program for the issuance and sale of senior, unsecured commercial paper notes, up to a maximum aggregate amount outstanding at any time of $5.5 billion. The USCP program will generally be used for general corporate purposes. Revolving Credit Facility On March 2, 2021, FIS entered into an amendment to the Revolving Credit Facility agreement to amend certain covenant provisions, revise lender commitments for certain counterparties, and extend the scheduled maturity date to March 2, 2026. On May 29, 2019, FIS entered into an amendment to increase the revolving credit commitments outstanding under the Revolving Credit Facility from $4.0 billion to $5.5 billion. Borrowing under the Revolving Credit Facility will generally be used for general corporate purposes, including backstopping any notes that FIS may issue under the USCP and ECP programs described above. As of December 31, 2021, the borrowing capacity under the Revolving Credit Facility was $1,365 million (net of $3,810 million of capacity backstopping our commercial paper notes). The Revolving Credit Facility is subject to customary covenants, including, among others, customary events of default and limitations on the payment of dividends by FIS. 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. Fair Value of Debt The fair value of the Company's long-term debt is estimated to be approximately $570 million and $1,640 million higher than the carrying value, excluding the fair value of the interest rate swaps and unamortized discounts, as of December 31, 2021 and 2020, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Hedges The Company holds interest rate swaps with aggregate notional amounts of $1,854 million, £925 million and €500 million at December 31, 2021, and $1,000 million and €500 million at December 31, 2020, converting the interest rate exposure on certain of the Company's Senior USD Notes, Senior GBP Notes and Senior Euro Notes, as applicable, from fixed to variable. These swaps are designated as fair value hedges for accounting purposes with a net liability fair value of $(85) million reflected as a decrease in the long-term debt balance at December 31, 2021, and a net asset fair value of $10 million reflected as an increase in the long-term debt balance at December 31, 2020 (see Note 12). Net Investment Hedges The purpose of the Company's net investment hedges, as discussed below, is to reduce the volatility of FIS' net investment value in its Euro- and Pound Sterling-denominated operations due to changes in foreign currency exchange rates. The Company recorded net investment hedge aggregate gain (loss) for the change in fair value as Foreign currency translation adjustments and related income tax (expense) benefit within Other comprehensive earnings (loss), net of tax, on the consolidated statements of comprehensive earnings (loss) of $878 million, $(951) million and $(229) million, during the years ended December 31, 2021, 2020 and 2019, respectively. No ineffectiveness has been recorded on the net investment hedges. Foreign Currency-Denominated Debt Designations The Company designates certain foreign currency-denominated debt as net investment hedges of its investment in Euro- and Pound Sterling-denominated operations. As of December 31, 2021 and 2020, an aggregate €8,275 million and €7,466 million, respectively was designated as a net investment hedge of the Company's investment in Euro-denominated operations related to Senior Euro Notes with maturities ranging from 2022 to 2039 and ECP Notes. As of December 31, 2020, an additional €1,000 million was designated as a net investment hedge of the Company's investment in Euro-denominated operations related to the Senior Euro Floating Rate Notes and Senior Euro Notes with a 2021 maturity. As of December 31, 2021 and 2020, an aggregate £1,193 million and £1,850 million, respectively, was designated as a net investment hedge of the Company's Pound Sterling-denominated operations related to the Senior GBP Notes with maturities ranging from 2022 to 2031. Cross-Currency Interest Rate Swap Designations The Company holds cross-currency interest rate swaps and designates them as net investment hedges of its investment in Euro- and Pound Sterling-denominated operations. As of December 31, 2021 and 2020, aggregate notional amounts of €5,906 million and €4,508 million, respectively, were designated as net investment hedges of the Company's investment in Euro-denominated operations, and aggregate notional amounts of £2,345 million and £565 million, respectively, were designated as net investment hedges of the Company's Pound Sterling-denominated operations. The cross-currency interest rate swap fair values were net assets of $258 million and net liabilities of $(306) million at December 31, 2021 and 2020, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The classification of the Company's operating lease ROU assets and liabilities in the consolidated balance sheets as of December 31, 2021 and 2020, is as follows (in millions): December 31, Classification 2021 2020 Operating lease ROU assets Other noncurrent assets $ 462 $ 534 Operating lease liabilities Accounts payable, accrued and other liabilities $ 146 $ 152 Other noncurrent liabilities 378 453 Total operating lease liabilities $ 524 $ 605 Operating lease cost was $159 million and $210 million, and variable lease cost was $39 million and $39 million, for the years ended December 31, 2021 and 2020, respectively. Operating lease cost for the year ended December 31, 2020, included $30 million in ROU assets impairment charges. Cash paid for amounts included in the measurement of operating lease liabilities included in operating cash flows was $165 million and $165 million for the years ended December 31, 2021 and 2020, respectively. Operating lease ROU assets obtained in exchange for operating lease liabilities was $83 million and $138 million for the years ended December 31, 2021 and 2020, respectively. The weighted average remaining operating lease term was 5.5 years and 5.8 years and the weighted average operating lease discount rate was 3.0% and 3.2% as of December 31, 2021 and 2020, respectively. Maturities of operating lease liabilities, as of December 31, 2021, are as follows (in millions): 2022 $ 145 2023 121 2024 96 2025 67 2026 58 Thereafter 102 Total lease payments 589 Less: Imputed interest (65) Total operating lease liabilities $ 524 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2021, 2020 and 2019, consists of the following (in millions): 2021 2020 2019 Current provision (benefit): Federal $ 220 $ 81 $ 53 State 68 50 46 Foreign 172 176 116 Total current provision $ 460 $ 307 $ 215 Deferred provision (benefit): Federal $ (118) $ (53) $ (47) State (11) (28) 7 Foreign 40 (130) (75) Total deferred provision (89) (211) (115) Total provision for income taxes $ 371 $ 96 $ 100 The provision for income taxes is based on pre-tax income from continuing operations, which is as follows for the years ended December 31, 2021, 2020 and 2019 (in millions): 2021 2020 2019 United States $ 747 $ 441 $ 220 Foreign 42 (175) 193 Total $ 789 $ 266 $ 413 Total income tax expense for the years ended December 31, 2021, 2020 and 2019, is allocated as follows (in millions): 2021 2020 2019 Tax expense (benefit) per statements of earnings $ 371 $ 96 $ 100 Unrealized gain (loss) on derivatives 141 (7) (41) Foreign currency translation adjustments 143 (154) 240 Other components of other comprehensive earnings (loss) — — (3) Total income tax expense (benefit) allocated to other comprehensive earnings 284 (161) 196 Total income tax expense (benefit) $ 655 $ (65) $ 296 A reconciliation of the federal statutory income tax rate to the Company's effective income tax rate for the years ended December 31, 2021, 2020 and 2019, is as follows: 2021 2020 2019 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes 6.7 14.6 2.5 Federal benefit of state taxes (1.4) (3.1) (0.5) Foreign rate differential (4.5) (10.1) (1.7) U.K. tax rate adjustment 23.6 38.2 — Non-deductible executive compensation 3.5 9.0 10.6 Withholding tax on actual and estimated remittances 2.9 2.1 — Foreign-derived intangible income deduction (2.4) (7.2) (3.3) Tax benefit from stock-based compensation (2.2) (18.1) (8.1) CVR liability fair value and foreign currency adjustment 2.0 8.2 0.7 Research and development credit (1.6) (4.1) (2.4) Unrecognized tax benefits 0.6 0.3 (1.4) Return to provision adjustments (0.3) (4.9) (0.4) Acquisition-related items — (15.9) 1.8 Book basis in excess of tax basis for goodwill impairment and disposition — 9.2 — State tax rate adjustment — (2.8) 5.1 Cares Act net operating loss adjustment — (2.3) — Deferred tax and other rate adjustments — 1.1 0.2 Other (0.9) 0.8 0.1 Effective income tax rate 47.0 % 36.0 % 24.2 % The significant components of deferred income tax assets and liabilities as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Deferred income tax assets: Net operating loss carryforwards $ 194 $ 221 Employee benefit accruals 173 155 Other deferred tax assets 154 204 Total gross deferred income tax assets 521 580 Less valuation allowance (191) (204) Total deferred income tax assets 330 376 Deferred income tax liabilities: Amortization of goodwill and intangible assets (3,743) (3,945) Foreign currency translation adjustment (320) (95) Deferred contract costs (196) (173) Other deferred tax liabilities (215) (140) Total deferred income tax liabilities (4,474) (4,353) Net deferred income tax liability $ (4,144) $ (3,977) Deferred income taxes are classified in the consolidated balance sheets as of December 31, 2021 and 2020, as follows (in millions): 2021 2020 Noncurrent deferred income tax assets (included in Other noncurrent assets) $ 49 $ 40 Noncurrent deferred income tax liabilities (4,193) (4,017) Net deferred income tax liability $ (4,144) $ (3,977) 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 (net of valuation allowance). 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; these assessments 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, 2021 and 2020, the Company had net income taxes receivable of $132 million and $147 million, respectively. These amounts are included in Other receivables in the consolidated balance sheets. As of December 31, 2021 and 2020, the Company has federal, state and foreign net operating loss carryforwards resulting in deferred tax assets of $194 million and $221 million, respectively. The federal and state net operating losses result in deferred tax assets as of December 31, 2021 and 2020, of $69 million and $90 million, respectively, which expire between 2022 and 2041. The Company has a valuation allowance related to these deferred tax assets for net operating loss carryforwards in the amounts of $41 million and $48 million as of December 31, 2021 and 2020. The Company has foreign net operating loss carryforwards resulting in deferred tax assets as of December 31, 2021 and 2020, of $125 million and $131 million, respectively. The Company has a full valuation allowance against the foreign net operating losses as of December 31, 2021 and 2020. 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 2018. 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. Tax years that remain subject to examination by major foreign and state tax jurisdictions are 2014 and forward. As of December 31, 2021 and 2020, the Company had gross unrecognized tax benefits of $54 million and $44 million of which $47 million and $38 million, respectively, 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 December 31, 2019 $ 45 Amount of decreases due to lapse of the applicable statute of limitations (1) Amount of decreases due to settlements (9) Increases as a result of tax positions taken in the current period 9 Amount of unrecognized tax benefit as of December 31, 2020 44 Amount of decreases due to lapse of the applicable statute of limitations (4) Amount of decreases due to settlements (2) Increases as a result of tax positions taken in prior period 11 Increases as a result of tax positions taken in the current period 6 Foreign currency translation (1) Amount of unrecognized tax benefit as of December 31, 2021 $ 54 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Reliance Trust Claims Reliance Trust Company ("Reliance"), the Company's subsidiary, is 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. On behalf of the Plan participants, plaintiffs in the action, which was filed in December 2015, sought damages and attorneys' fees, as well as equitable relief, against Reliance and the Plan's sponsor and record-keeper for alleged breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974 ("ERISA"). At a non-jury trial conducted in March 2020, Reliance vigorously defended the action and contended that no breaches of fiduciary duty or prohibited transactions occurred and that Plan participants suffered no damages. At trial, Plaintiffs claimed damages of approximately $127 million against all defendants. On October 12, 2020, Reliance and plaintiffs entered into a settlement agreement, which was subject to final court approval, to settle all allegations and claims asserted in the action for $39.8 million without equitable relief. On October 14, 2020, the Court preliminarily approved the settlement agreement. In the settlement agreement, Reliance admitted no wrongdoing or liability with respect to any of the allegations or claims and maintains that the Plan was managed, operated, and administered during its tenure as the Plan's discretionary trustee in full compliance with ERISA and applicable regulations. The Company recorded a liability for the agreed settlement amount of $39.8 million and a corresponding loss in Other income (expense), net on the consolidated statement of earnings for the year ended December 31, 2020. On March 8, 2021, the Court entered an order approving the settlement and entered a final judgment dismissing the action with prejudice. Reliance paid the full settlement amount in April 2021 and has met its monetary obligations under the settlement agreement. 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 14 claims against Servicos asserting potential tax liabilities of approximately $11 million. There are potentially 24 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 $30 million, making the total potential exposure for all 38 claims approximately $41 million. We do not believe a liability for these 38 total claims is probable and, therefore, have not recorded a liability for any of these claims. Tax Receivable Agreement The Company assumed in the Worldpay acquisition a Tax Receivable Agreement ("TRA") under which the Company agreed to make payments to Fifth Third Bank ("Fifth Third") of 85% of the federal, state, local and foreign income tax benefits realized by the Company as a result of certain tax deductions. In December 2019, the Company entered into a Tax Receivable Purchase Addendum (the "Amendment") that provides written call and put options (collectively "the options") to terminate certain estimated obligations under the TRA in exchange for fixed cash payments. The remaining TRA obligations not subject to the Amendment are based on the cash savings realized by the Company by comparing the actual income tax liability of the Company to the amount of such taxes the Company would have been required to pay had there been no deductions related to the tax attributes. Under the TRA, in certain specified circumstances, such as certain changes of control, the Company may be required to make payments in excess of such cash savings. Obligations recorded in our consolidated financial statements pursuant to the TRA are based on estimates of future deductions and future tax rates and in the case of the obligations subject to the Amendment, reflect management's expectation that the options will be exercised. In January 2022, the Company exercised its second call option pursuant to the Amendment, which results in fixed cash payments to Fifth Third of $186 million. The timing and/or amount of aggregate payments due under the TRA may vary based on a number of factors, including the exercise of options, the amount and timing of taxable income the Company generates in the future and the tax rate then applicable, the use of loss carryforwards and amortizable basis. Each reporting period, the Company evaluates the assumptions underlying the TRA obligations. The consolidated balance sheet as of December 31, 2021 and 2020, includes a total liability of $451 million and $532 million, respectively, relating to the TRA. The following table summarizes our estimated payment obligation timing under the TRA as of December 31, 2021 (in millions): Payments Due in Total 2022 2023 2024 and After Obligations under TRA $ 451 $ 185 $ 197 $ 69 Chargeback Liability Through services offered in our Merchant Solutions segment, the Company is exposed to potential losses from merchant-related chargebacks. A chargeback occurs when a dispute between a cardholder and a merchant, including a claim for non-delivery of the product or service by the merchant, is not resolved in favor of the merchant and the transaction is charged back to the merchant resulting in a refund of the purchase price to the cardholder. If the Company is unable to collect this chargeback amount from the merchant due to closure, bankruptcy or other reasons, the Company bears the loss for the refund paid to the cardholder. The risk of chargebacks is typically greater for those merchants that promise future delivery of goods and services rather than delivering goods or rendering services at the time of payment. The economic impact of the COVID-19 pandemic has not resulted in material chargeback losses as of December 31, 2021; however, it is reasonably possible that the Company has incurred or may incur significant losses related to future chargebacks. Due to the unprecedented nature of the pandemic and the numerous current and future uncertainties that may impact any potential chargeback losses, and considering that the Company has no historical experience with similar uncertainties, a reasonable estimate of the possible accrual for future chargeback losses or range of losses cannot be made. 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, in which case it 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. Purchase Commitments The Company has agreements with various vendors, generally with one |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [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 $21 million, $20 million, and $15 million, respectively, for the years ended December 31, 2021, 2020 and 2019, 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 eligible compensation, up to the annual 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 $118 million, $107 million and $91 million, respectively, for the years ended December 31, 2021, 2020 and 2019, relating to the participation of FIS employees in the 401(k) plan. Stock Compensation Plans The Company grants equity awards pursuant to shares authorized under the FIS 2008 Omnibus Incentive Plan, as restated and amended in conjunction with certain acquisitions to register additional shares for issuance ("FIS Plan"). The number of shares available for future grants under the FIS Plan is 29 million as of December 31, 2021. On January 1, 2021, the Company established a Qualified Retirement Equity Program that modified our existing stock compensation plans. The modification implemented a new retirement policy that permits retirees that meet certain eligibility criteria to continue vesting in unvested equity awards in accordance with the terms of the respective grant agreements, resulting in accelerated stock compensation expense for those employees meeting the definition of retirement eligible. The Company recorded $104 million in accelerated stock compensation expense included in Selling, general, and administrative expenses in the consolidated statement of earnings to reflect the impact of the modification on unvested equity awards outstanding at January 1, 2021. During 2019, in conjunction with the Worldpay acquisition, the Company converted outstanding Worldpay equity awards into corresponding FIS equity awards, pursuant to the terms of the merger agreement. The converted equity awards are subject to time-based vesting criteria and include change in control provisions allowing for acceleration of unvested awards in the event of termination of employment without cause or for good reason. Stock Options The Company grants stock options to certain key employees, which typically vest annually over three years. All stock options are non-qualified stock options, the stock options granted by the Company expire on the seventh anniversary of the grant date, and the stock options converted through the Worldpay acquisition expire on the tenth anniversary of the grant date. The following table summarizes stock option activity for the year ended December 31, 2021 (in millions except for per share amounts): Options Weighted Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2020 8 $ 88.01 3.8 $ 464 Granted 2 142.92 Exercised (2) 72.67 $ 107 Cancelled — 126.64 Balance, December 31, 2021 8 $ 99.32 3.6 $ 143 Options exercisable at December 31, 2021 6 $ 84.91 2.6 $ 142 The intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019, was $107 million, $348 million and $189 million, respectively. The intrinsic value of the outstanding options and options exercisable is based on a closing stock price as of December 31, 2021, of $109.15. The Company issues authorized but unissued shares or shares from treasury stock to settle stock options exercised. The number of options granted for the years ended December 31, 2021, 2020 and 2019, was 2 million, 2 million and 1 million, respectively. The weighted average exercise price was $142.92, $120.47 and $113.48 for the years ended December 31, 2021, 2020 and 2019, respectively. The weighted average fair value of options granted during the years ended December 31, 2021, 2020 and 2019, was $29.01, $21.17 and $19.25, respectively, using the Black-Scholes option pricing model with the assumptions below: 2021 2020 2019 Risk free interest rate 0.6 % 0.4 % 2.2 % Volatility 27.6 % 24.7 % 20.1 % Dividend yield 1.1 % 1.2 % 1.2 % Weighted average expected life (years) 4.1 4.1 4.1 The options converted through the Worldpay acquisition on July 31, 2019, had a weighted average fair value of $71.05, a weighted average risk free interest rate of 1.9%, a weighted volatility of 18.6%, a weighted average dividend yield of 1.0% and a weighted average expected life of 3.9 years. The Company estimates future forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ significantly from those estimates. The Company bases the risk-free interest rate that is used in the Black-Scholes 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 of the common stock 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 future trends. Restricted Stock Units The Company issues restricted stock units, which typically vest annually over three years. The grant date fair value of the restricted stock units is based on the fair market value of our common stock on the grant date. The number of restricted stock units granted during the years ended December 31, 2021, 2020 and 2019, was 2 million, 1 million and 2 million, respectively. The weighted average grant date fair value of these awards granted during the years ended December 31, 2021, 2020 and 2019, was $136.69, $127.14 and $124.72, respectively. Certain restricted stock units granted in 2021, 2020 and 2019 are also subject to performance and/or market conditions, in addition to time-based vesting criteria. For the grants with performance conditions, participants typically have the right to earn 0% to 300% of the target number of shares of the Company's common stock, determined by the level of the financial performance measures achieved during the performance period. The total fair value of restricted stock units that vested was $298 million, $293 million and $169 million in 2021, 2020 and 2019, respectively. The following table summarizes the restricted stock units activity for the year ended December 31, 2021 (in millions except for per share amounts): Quantity Weighted Average Fair Value Balance December 31, 2020 5 $ 127.63 Granted 2 $ 136.69 Vested (2) $ 127.19 Forfeited — $ 126.34 Balance December 31, 2021 5 $ 132.60 Stock Compensation Cost The Company recorded total stock compensation expense of $383 million, $283 million and $402 million for the years ended December 31, 2021, 2020 and 2019, respectively, included in Selling, general, and administrative expenses in the consolidated statements of earnings. Stock compensation expense recorded related to the grants with performance conditions is based on management's expected level of achievement of the financial performance measures during the performance period and is adjusted as appropriate throughout the performance period based on the shares expected to be earned at that time. The 2021 stock compensation expense includes $104 million in accelerated stock compensation expense resulting from the Qualified Retirement Equity Program modification, described further above. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions The Company held a noncontrolling ownership stake in Cardinal Holdings ("Cardinal"), which operated the Capco consulting business, through April 29, 2021, when we sold our ownership stake due to an acquisition transaction of the Capco consulting business by Wipro Ltd. As a result of the transaction, we received net cash proceeds of approximately $367 million and recorded an approximate $225 million gain in Other income (expense), net on the consolidated statement of earnings. FIS' ownership stake in Cardinal was 36% at the date of sale and at December 31, 2020. Prior to the sale, the Company recorded the ownership stake in Cardinal as an equity method investment included within Other noncurrent assets on the consolidated balance sheet. The carrying value of this equity method investment was $137 million at December 31, 2020. FIS provides ongoing management consulting services and other services to Cardinal. FIS also purchases services and software licenses from Cardinal from time to time. Cardinal was a related party through April 29, 2021. Amounts transacted through these agreements were not significant to the 2021, 2020 and 2019 periods presented when Cardinal was a related party. |
Components of Other Comprehensi
Components of Other Comprehensive Earnings (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of Other Comprehensive Earnings (Loss) | Components of Other Comprehensive Earnings (Loss) The following table shows Accumulated other comprehensive earnings (loss) attributable to FIS by component, net of tax, for the years ended December 31, 2021, 2020 and 2019 (in millions): Interest Rate Swap Contracts Foreign Currency Translation Adjustments Other Total Balances, December 31, 2018 $ — $ (391) $ (39) $ (430) Other comprehensive earnings (loss) before reclassifications (127) 578 (56) 395 Amounts reclassified from accumulated other comprehensive earnings — — 2 2 Balances, December 31, 2019 (127) 187 (93) (33) Other comprehensive earnings (loss) before reclassifications (21) 106 3 88 Amounts reclassified from accumulated other comprehensive earnings — — 2 2 Balances, December 31, 2020 (148) 293 (88) 57 Other comprehensive earnings (loss) before reclassifications 392 (212) 5 185 Amounts reclassified from accumulated other comprehensive earnings — — 10 10 Balances, December 31, 2021 $ 244 $ 81 $ (73) $ 252 . See Note 15 for the tax provision associated with each component of other comprehensive earning (loss). |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Concentration of Risk The Company generates a significant amount of revenue from large clients; however, no individual client accounted for 10% or more of total revenue in the years ended December 31, 2021, 2020 and 2019. 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, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information FIS reports its financial performance based on the following segments: Merchant Solutions, Banking Solutions, Capital Market Solutions and Corporate and Other. The Company regularly assesses its portfolio of assets and reclassified certain non-strategic businesses from the Merchant Solutions, Banking Solutions, and Capital Market Solutions segments into the Corporate and Other segment during the year ended December 31, 2020, and recast all prior-period segment information presented. Below is a summary of each segment. Merchant Solutions ("Merchant") The Merchant segment is focused on serving merchants of all sizes globally, enabling them to accept, authorize and settle electronic payment transactions. Merchant includes all aspects of payment processing, including value-added services, such as security, fraud prevention, advanced data analytics, foreign currency management and numerous funding options. Merchant serves clients in over 100 countries. Our Merchant clients are highly-diversified, including global enterprises, national retailers and small- to medium-sized businesses. The Merchant segment utilizes broad and varied distribution channels, including direct sales forces and multiple referral partner relationships that provide us with access to new and existing markets. Banking Solutions ("Banking") The Banking segment is focused on serving financial institutions of all sizes with core processing software, transaction processing software and complementary applications and services, many of which interact directly with core processing software. We sell these solutions and services on either a bundled or stand-alone basis. Clients in this segment include global financial institutions, U.S. regional and community banks, credit unions and commercial lenders, as well as government institutions and other commercial organizations. Banking serves clients in more than 100 countries. We provide our clients integrated solutions characterized by multi-year processing contracts that generate highly recurring revenue. The predictable nature of cash flows generated from the Banking segment provides opportunities for further investments in innovation, integration, information and security, and compliance in a cost-effective manner. Capital Market Solutions ("Capital Markets") The Capital Markets segment is focused on serving global financial services clients with a broad array of buy- and sell-side solutions. Clients in this segment operate in more than 100 countries and include asset managers, buy- and sell-side securities brokerage and trading firms, insurers, private equity firms, and other commercial organizations. Our buy- and sell-side solutions include a variety of mission-critical applications for recordkeeping, data and analytics, trading, financing and risk management. Capital Markets 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 procuring fully outsourced end-to-end solutions. Our long-established relationships with many of these financial and commercial institutions generate significant recurring revenue. We have made, and continue to make, investments in modern platforms, advanced technologies, open APIs, machine learning and artificial intelligence, and regulatory technology to support our Capital Markets clients. 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 that we plan to wind down or sell. The overhead and leveraged costs relate to corporate marketing, corporate finance and accounting, human resources, legal, and amortization of acquisition-related intangibles and other costs, such as acquisition and integration expenses, that are not considered when management evaluates revenue-generating segment performance. The Company recorded acquisition and integration costs primarily related to the Worldpay acquisition as well as certain other costs, including cost associated with the Company's platform modernization totaling $139 million for the year ended December 31, 2021. The Company also recorded $202 million of asset impairments for certain software and deferred contract cost assets and $183 million of incremental amortization expense associated with shortened estimated useful lives and accelerated amortization methods for certain acquired software and deferred contract cost assets driven by the Company's platform modernization for the year ended December 31, 2021. The Company also recorded costs related to data center consolidation activities totaling $43 million, $88 million and $70 million, for the years ended December 31, 2021, 2020 and 2019, respectively. In addition, the Company recorded incremental costs directly related to COVID-19 of $44 million and $71 million for the years ended December 31, 2021 and 2020. For the year ended December 31, 2021, the Company also recorded $104 million in accelerated stock compensation expense to reflect the impact of establishing a Qualified Retirement Equity Program that modified unvested equity awards outstanding at January 1, 2021 (see Note 17). Adjusted EBITDA Adjusted EBITDA is a measure of segment profit or loss that 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 net earnings (loss) before net interest expense, net other income (expense), income tax provision (benefit), equity method investment earnings (loss), and depreciation and amortization, and excludes certain costs and other transactions that management deems non-operational in nature. The non-operational items affecting the segment profit measure generally include the purchase price amortization of acquired intangible assets as well as acquisition, integration and certain other costs and asset impairments. Adjusted EBITDA also excludes incremental and direct costs resulting from the COVID-19 pandemic. 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. The Company does not evaluate performance or allocate resources based on segment asset data; therefore, such information is not presented. As of and for the year ended December 31, 2021 (in millions): Merchant Banking Capital Corporate Total Revenue $ 4,496 $ 6,396 $ 2,624 $ 361 $ 13,877 Operating expenses (2,580) (4,105) (1,682) (4,455) (12,822) Depreciation and amortization (including purchase accounting amortization) 346 583 329 2,757 4,015 Acquisition, integration and other costs — — — 845 845 Asset impairments — — — 202 202 Adjusted EBITDA $ 2,262 $ 2,874 $ 1,271 $ (290) $ 6,117 Adjusted EBITDA $ 6,117 Depreciation and amortization (1,251) Purchase accounting amortization (2,764) Acquisition, integration and other costs (845) Asset impairments (202) Interest expense, net (214) Other income (expense), net (52) (Provision) benefit for income taxes (371) Equity method investment earnings (loss) 6 Net earnings attributable to noncontrolling interest (7) Net earnings attributable to FIS common stockholders $ 417 Capital expenditures (1) $ 401 $ 442 $ 229 $ 214 $ 1,286 (1) Capital expenditures include $35 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2020 (in millions): Merchant Banking Capital Corporate Total Revenue $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 Operating expenses (2,320) (3,901) (1,566) (4,213) (12,000) Depreciation and amortization (including purchase accounting amortization) 305 513 273 2,623 3,714 Acquisition, integration and other costs — — — 858 858 Asset impairments — — — 136 136 Adjusted EBITDA $ 1,752 $ 2,556 $ 1,147 $ (195) $ 5,260 Adjusted EBITDA $ 5,260 Depreciation and amortization (964) Purchase accounting amortization (2,750) Acquisition, integration and other costs (858) Asset impairments (136) Interest expense, net (334) Other income (expense), net 48 (Provision) benefit for income taxes (96) Equity method investment earnings (loss) (6) Net earnings attributable to noncontrolling interest (6) Net earnings attributable to FIS common stockholders $ 158 Capital expenditures (1) $ 365 $ 498 $ 223 $ 64 $ 1,150 (1) Capital expenditures include $21 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2019 (in millions): Merchant Banking Capital Corporate Total Revenue $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Operating expenses (1,090) (3,679) (1,458) (3,137) (9,364) Depreciation and amortization (including purchase accounting amortization) 115 489 213 1,627 2,444 Acquisition deferred revenue adjustment — — — — — Acquisition, integration and other costs — — — 704 704 Asset impairments — — — 87 87 Adjusted EBITDA $ 967 $ 2,402 $ 1,073 $ (238) 4,204 Adjusted EBITDA $ 4,204 Depreciation and amortization (809) Purchase accounting amortization (1,635) Acquisition, integration and other costs (704) Asset impairments (87) Interest expense, net (337) Other income (expense), net (219) (Provision) benefit for income taxes (100) Equity method investment earnings (loss) (10) Net earnings attributable to noncontrolling interest (5) Net earnings attributable to FIS common stockholders $ 298 Capital expenditures (1) $ 141 $ 612 $ 266 $ 24 $ 1,043 (1) Capital expenditures include $215 million in other financing obligations for certain hardware and software. Clients in the United Kingdom, Germany, Australia, Brazil, and India accounted for the majority of the revenue from clients based outside of North America for all periods presented. FIS conducts business in over 100 countries, with no individual country outside of North America accounting for more than 10% of total revenue for the years ended December 31, 2021, 2020 and 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Management Estimates | 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.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. The inputs into management's critical and significant accounting estimates consider the economic impact of the outbreak of the novel coronavirus ("COVID-19") and the subsequently declared COVID-19 pandemic ("the pandemic") by the World Health Organization on March 11, 2020. The extent to which the pandemic further affects our results of operations and financial position will depend on future developments, which are highly uncertain and are difficult to predict, including, but not limited to, the duration and spread of the pandemic and any recurrence or new strain of COVID-19, its severity, the success of vaccines or other actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Accordingly, our future results could be materially affected by changes in our estimates. |
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 electronic funds transfer and network 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 net in-transit balances due to the Company are included in Cash and cash equivalents on the consolidated balance sheets. 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 In a business combination transaction, an acquirer recognizes, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree and generally measures these items 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 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 also 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 acquisition 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. Contingent consideration liabilities or receivables recorded in connection with business acquisitions are also adjusted for changes in fair value until settled. Fair Value of Financial Instruments The carrying amounts reported in the consolidated balance sheets for settlement assets and payables as well as 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 based on quoted prices of our senior notes and trades of our debt in close proximity to year end, which are considered Level 2-type measurements. The Company also holds, or has held, certain derivative instruments, specifically interest rate swaps and foreign currency exchange forward contracts, which are also valued using Level 2-type measurements. 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. 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. |
Derivative Financial Instruments | The Company records all derivatives, whether designated in hedging relationships or not, on the consolidated balance sheets at fair value. During all periods presented, the Company used cross-currency interest rate swaps to engage in hedging activities relating to its investment in foreign-currency-denominated operations. The Company designated these cross-currency interest rate swaps as net investment hedges. The Company also used interest rate swaps to engage in hedging activities relating to changes in the fair value of its long-term debt. The Company designated these interest rate swaps as fair value hedges. During 2019, the Company entered into foreign currency forward contracts as well as treasury lock and interest rate swap contracts to reduce the volatility in the Company's cash flows during the period leading up to the Company's debt issuances related to the Worldpay acquisition. The Company designated these treasury lock and interest rate swap contracts as cash flow hedges. Derivative instruments are included in the accompanying consolidated balance sheets in Prepaid expenses and other current assets; Other noncurrent assets; Accounts payable, accrued and other liabilities; or Other noncurrent liabilities, as appropriate. Changes in fair value are recorded as a component of Accumulated other comprehensive earnings (loss), net of tax, for all derivative instruments except the fair value hedges, which are recorded as an adjustment to long-term debt, and the foreign currency forward contracts, which were recorded through Other income (expense), net. The amounts included in Accumulated other comprehensive earnings (loss) for the cash flow hedges are reclassified from comprehensive earnings (loss) as an adjustment to Unrealized gain (loss) on derivatives and into interest expense as yield adjustments over the periods in which the related interest payments that were hedged are made. As of December 31, 2021 and 2020, the Company had no outstanding cash flow hedge contracts. The Company also utilizes foreign-currency-denominated debt as 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 as a component of Accumulated other comprehensive earnings (loss). Any ineffective portion of these hedging instruments impacts net earnings when the ineffectiveness occurs. See Notes 13 and 19 for additional details. |
Trade Receivables | Change in Accounting Policy The Company adopted FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses ("Topic 326"), with an adoption date of January 1, 2020. As a result, the Company changed its accounting policy for allowance for credit losses. The accounting policy pursuant to Topic 326 for credit losses is disclosed below. The adoption of Topic 326 resulted in an immaterial cumulative effect adjustment recorded in retained earnings as of January 1, 2020. Allowance for Credit Losses |
Settlement Activity and Merchant Float | The payment solution services that give rise to the settlement balances described below 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. Banking Solutions We manage certain 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 or clients, 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. Merchant Solutions Settlement assets and payables represent intermediary balances arising from the settlement process which involves the transferring of funds between card issuers, merchants and various financial institutions ("Sponsoring Members"). Funds are processed under two models, a sponsorship model and a direct member model. In the U.S., the Company operates under the sponsorship model, and outside the U.S., the Company operates under the direct membership model. Under the sponsorship model, in order for the Company to provide electronic payment processing services, Visa, MasterCard and other payment networks require sponsorship by a member clearing bank. The Company has an agreement with Sponsoring Members to provide sponsorship services to the Company. Under the sponsorship agreements, the Company is registered as a Visa Third-Party Agent and a MasterCard Service Provider. The sponsorship services allow us to route transactions under the Sponsoring Members' membership to clear card transactions through Visa, MasterCard and other networks. Under this model, the standards of the payment networks restrict us from performing funds settlement and, as such, require that these funds be in the possession of the Sponsoring Member until the merchant is funded. Accordingly, settlement receivables and settlement payables resulting from the submission of settlement files to the network or cash received from the network in advance of funding the network are the responsibility of the Sponsoring Member and are not recorded on the Company's consolidated balance sheets. Settlement receivables and settlement payables are recorded in the U.S. as a result of intermediary balances due to/from the Sponsoring Member. The Company receives funds from certain networks which are owed to the Sponsoring Member for settlement. These funds are recorded in Cash and cash equivalents. In other cases, the Company transfers funds to the Sponsoring Member for settlement in advance of receiving funds from the network. These timing differences result in settlement receivables and settlement payables. The amounts are generally collected or paid the following one three one three |
Contract Related Balances and Revenue Recognition | 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. Trade 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 trade 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. At December 31, 2021 and 2020, contract assets of $238 million and $186 million, respectively, are included in Prepaid expenses and other current assets and Other noncurrent assets on the consolidated balance sheets, and noncurrent deferred revenue is included in Other noncurrent liabilities as detailed in Note 11. Changes in the contract assets and deferred revenue balances for the years ended December 31, 2021 and 2020, were not materially impacted by any factors other than those described above. In some cases, signing bonuses are paid, or credits are offered, to customers in connection with the origination or renewal of customer contracts. These incentives are recorded as Other noncurrent assets on our consolidated balance sheets and amortized on a straight-line basis as a reduction of revenue over the lesser of the useful life of the solution or the expected customer relationship period for new contracts or over the contract period for renewal contracts. 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. 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 third-party 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. The total transaction price of a contract 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 allocation adjustments from contract prices are made. Otherwise, the Company reallocates 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 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. 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 the standalone selling price for that particular solution or service is estimated using all information that is reasonably available and maximizing observable inputs using approaches including historical pricing, cost plus a margin, adjusted market assessment, and a 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. Transaction Processing and Services Revenue Transaction processing and services revenue is primarily comprised of payment processing, data processing, application management, and outsourced services, including our SaaS, BPaaS and cloud offerings. Revenue from transaction processing and services is recurring and is typically volume or activity based depending on factors such as the number of payments, transactions, accounts or trades processed, number of users, number of hours of services or amount of computer resources used. Fees 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 one or more years; however, when distinct hosting services are offered, they are often cancelable without a significant penalty with 30-days' notice. 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. Processing revenue also includes network, interchange, and other pass-through fees. Pass-through fees generally represent variable consideration and are allocated to, and recognized on, the day on which the related services are performed. Pass-through fees are billed monthly. Network and interchange fees are presented on a net basis; other pass through fees may be recorded on either a gross or a net basis depending on whether the Company is acting as a principal or an agent. Software Maintenance Revenue Software maintenance is comprised of technical support services and unspecified software updates and upgrades provided on a when-and-if-available basis. Software maintenance revenue is generally based on fixed fees. Payment terms are typically annually, quarterly, or monthly in advance. Contract terms vary and can span multiple years. The Company generally satisfies its maintenance-related performance obligations evenly using a time-elapsed output method over the contract term given there is no discernible pattern of performance. Other Recurring Revenue Other recurring revenue is comprised primarily of services provided by dedicated personnel resources who work full time at client sites and under the client's direction. Revenue from dedicated resource agreements is generally based on fixed monthly fees per resource. Payment terms are typically annually, quarterly, or monthly in advance. Contract terms vary and can span multiple years. The Company generally satisfies its dedicated resource obligations evenly using a time-elapsed output method over the contract term given there is no discernible pattern of performance. Software License 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. 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. Revenue allocated to software licenses is typically recognized at a point in time upon delivery of the license and is non-recurring. Contracts that contain software licenses often have non-standard terms that require significant judgments that may affect the amount and timing of revenue recognized. When a software license requires frequent updates that are integral to maintaining the utility of the license to the customer, the Company combines the software license and the maintenance into a single performance obligation, and revenue for the combined performance obligation is recognized in Other recurring revenue as the maintenance is provided, consistent with the treatment described for maintenance above. 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. 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 and classified as processing revenue. 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 wherein the customer generally pays for the software license and maintenance in monthly or quarterly installments as opposed to an upfront software license fee. Revenue recognition under these arrangements follows the same recognition pattern as the arrangements outlined above. 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, the degree to which financing is the reason for any such difference, and the overall impact of the time value of money on the transaction. If we conclude a significant financing component exists, then the transaction price is 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 the difference between the promised consideration and the cash selling price arises for reasons other than the provision of finance or 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 and implementation or installation services related to licensed software. Although this revenue is non-recurring in nature, it is generally recognized over time, with service durations spanning from several weeks to several years, depending on the scope and complexity of the work. 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., the customer can 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., the services are 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). Other Non-recurring Revenue Other non-recurring revenue is comprised primarily of hardware, one-time card production, and early termination fees. 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. Equipment and one-time card production revenue is generally recognized at a point in time upon delivery. Early contract terminations are treated as contract modifications. Early termination fees are added to a contract's transaction price once it becomes likely that liquidated damages will be charged to a customer, typically upon notification of early termination. Early termination fees are recognized over the remaining period of the related performance obligation(s). 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 if 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. |
Goodwill | Goodwill represents the excess of cost over the fair value of identifiable assets acquired and liabilities assumed in business combinations. Goodwill is not amortized but is assessed for impairment by reporting unit. The Company assesses goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. An impairment charge is recognized when and to the extent a reporting unit's carrying amount is determined to exceed its fair value. Our reporting units are the same as our primary operating segments, with additional reporting units for certain non-strategic businesses within the Corporate and Other segment. The Company has the option to first assess qualitatively whether it is more likely than not that a reporting unit's carrying amount exceeds its fair value. The option of whether to perform the qualitative assessment is made annually and may vary by reporting unit. Events and circumstances that are considered in performing the qualitative assessment include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, events affecting the reporting unit or Company as a whole, including a sustained decrease in stock price. When performing the qualitative assessment, we examine those factors most likely to affect each reporting unit's fair value. If we conclude that it is more likely than not that the reporting unit's fair value is less than its carrying amount (that is, a likelihood of more than 50 percent) as a result of the qualitative assessment, or we elect to bypass the qualitative assessment for a reporting unit, then we must perform the quantitative assessment for that reporting unit. In applying the quantitative assessment, we typically engage third-party valuation specialists to assist us in determining the fair value of a reporting unit based on a weighted average of multiple valuation techniques, principally a combination of an income approach and a market approach, which are Level 3-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 the reporting unit determined using the quantitative analysis exceeds the carrying amount of the reporting unit's net assets, goodwill is not impaired. For each of 2021 and 2019, we began our annual assessment with the qualitative assessment and concluded that it remained more likely than not that the fair value of each of our reporting units continued to exceed the carrying amounts. For 2020, we began our annual assessment for the Banking Solutions and Capital Market Solutions reporting units with qualitative assessments and concluded that it remained more likely than not that the fair value of each of the reporting units continued to exceed their respective carrying amounts. For Merchant Solutions, we began our 2020 annual assessment with a quantitative assessment due to the economic impact of the COVID-19 pandemic on our Merchant Solutions business and its primary operations being recently acquired as part of the Worldpay acquisition. As a result of the assessment, the fair value of the reporting unit was estimated to be in excess of its carrying amount by approximately 4%. Based on the results of our assessments, $94 million of goodwill related to certain non-strategic businesses within the Corporate and Other segment was impaired in 2020. For all other reporting units for all periods presented, goodwill was not impaired. In addition, due to the continued economic impact of the COVID-19 pandemic, we evaluated if events and circumstances as of December 31, 2021, indicated potential impairment. We performed a qualitative assessment by examining factors most likely to affect our reporting units' fair values and considered the impact to our business from the COVID-19 pandemic. The factors examined involve significant use of management judgment and included, among others, (1) forecasted revenue, growth rates, operating margins, and capital expenditures used to calculate estimated future cash flows, (2) future economic and market conditions and (3) FIS' market capitalization. Based on our impairment assessment as of December 31, 2021, we concluded that it remained more likely than not that the fair value continues to exceed the carrying amount for each of our reporting units; therefore, goodwill was not impaired. |
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. During 2020, the Company recognized impairment losses totaling $42 million on certain long-lived assets related to reducing office space, including $30 million for operating lease right-of-use assets. There were no significant long-lived asset impairment losses recognized during 2021 and 2019. |
Intangible Assets | The Company has intangible assets that consist primarily of customer relationships and trademarks (i.e., a collective term for trademarks, trade names, and related intellectual property rights) that are recorded in connection with acquisitions at their fair value based on the results of valuation analyses. Customer relationships and trademarks acquired in business combinations are generally valued using the multi-period excess earnings method and relief-from-royalty method, respectively, which are Level 3-type measurements. 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 with finite lives are amortized over periods ranging up to five years. Intangible assets with finite lives are reviewed for impairment following the same approach as long-lived assets. |
Software | 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, typically ranging from one The capitalization of software development costs is based on whether the software is to be sold, leased or otherwise marketed, or 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 solution-by-solution 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 typically ranges from three See Note 8 for software asset impairment losses recognized during 2021 and 2019, and incremental software amortization expense recognized during 2021. There were no material software asset impairment losses recognized during 2020. |
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. 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 or portfolio of similar contracts and amortized using an appropriate single measure of performance considering all of the performance obligations in the contracts. 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. See Note 9 for deferred contract cost asset impairment losses and incremental amortization expense recognized during 2021. There were no significant deferred contract cost asset impairment losses recognized during 2020 or 2019. |
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 typically as follows: 30 years for buildings and three |
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. Certain of the Company's earnings are indefinitely reinvested offshore and could be subject to additional income tax if repatriated. It is not practicable to determine the unrecognized deferred tax liability on a hypothetical distribution of those earnings. |
Operating Leases | The Company leases certain of its property, primarily real estate, under operating leases. Operating lease right-of-use ("ROU") assets are included in Other noncurrent assets, and operating lease liabilities are included in Accounts payable, accrued and other liabilities and Other noncurrent liabilities on the consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. Operating lease ROU assets also include any prepaid lease payments and exclude lease incentives received. The Company uses an incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Lease term for accounting purposes may include options to extend (generally ranging from one |
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, customer relationship and trademark 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 as well as advertising and other marketing-related program costs. |
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 is 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 measuring foreign currency transactions into the respective functional currency are included in Other income (expense), net in the consolidated statements of earnings. |
Net Earnings per Share | The basic weighted average shares and common stock equivalents for the years ended December 31, 2021, 2020 and 2019 are computed using the treasury stock method. |
Certain Reclassifications | Certain reclassifications have been made in the 2020 and 2019 consolidated financial statements to conform to the classifications used in 2021. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Restricted Cash and Cash Equivalents | The reconciliation between Cash and cash equivalents in the consolidated balance sheets and Cash, cash equivalents and restricted cash per the consolidated statements of cash flows is as follows (in millions): December 31. 2021 2020 Cash and cash equivalents on the consolidated balance sheets $ 2,010 $ 1,959 Merchant float (in Settlement assets) (see Note 2(f)) 2,273 2,071 Total Cash, cash equivalents and restricted cash per the consolidated statements of cash flows $ 4,283 $ 4,030 |
Schedule of Cash and Cash Equivalents | The reconciliation between Cash and cash equivalents in the consolidated balance sheets and Cash, cash equivalents and restricted cash per the consolidated statements of cash flows is as follows (in millions): December 31. 2021 2020 Cash and cash equivalents on the consolidated balance sheets $ 2,010 $ 1,959 Merchant float (in Settlement assets) (see Note 2(f)) 2,273 2,071 Total Cash, cash equivalents and restricted cash per the consolidated statements of cash flows $ 4,283 $ 4,030 |
Schedule of Settlement Assets and Payables | The principal components of the Company's settlement assets and payables on the consolidated balance sheets are as follows (in millions): December 31, 2021 2020 Settlement assets Settlement deposits $ 530 $ 1,181 Merchant float 2,273 2,071 Settlement receivables 1,217 662 Total Settlement assets $ 4,020 $ 3,914 Settlement payables $ 5,295 $ 4,934 |
Schedule of Net Earnings Per Share | Net earnings and earnings per share for the years ended December 31, 2021, 2020 and 2019 are as follows (in millions, except per share data): Year ended December 31, 2021 2020 2019 Net earnings attributable to FIS common stockholders $ 417 $ 158 $ 298 Weighted average shares outstanding-basic 616 619 445 Plus: Common stock equivalent shares 5 8 6 Weighted average shares outstanding-diluted 621 627 451 Net earnings per share-basic attributable to FIS common stockholders $ 0.68 $ 0.26 $ 0.67 Net earnings per share-diluted attributable to FIS common stockholders $ 0.67 $ 0.25 $ 0.66 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisition, Pro Forma Information | Unaudited supplemental pro forma results of operations for the years ended December 31, 2019, assuming the acquisition had occurred as of January 1, 2018, are presented below (in millions, except per share amounts): Year ended December 31, 2019 Revenue $ 12,724 Net earnings (loss) attributable to FIS common stockholders $ 254 Net earnings (loss) per share-basic attributable to FIS common stockholders $ 0.41 Net earnings (loss) per share-diluted attributable to FIS common stockholders $ 0.41 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | For the year ended December 31, 2021 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 3,161 $ 5,454 $ 1,490 $ 228 $ 10,333 All others 1,335 942 1,134 133 3,544 Total $ 4,496 $ 6,396 $ 2,624 $ 361 $ 13,877 Type of Revenue: Recurring revenue: Transaction processing and services $ 4,370 $ 4,778 $ 1,183 $ 317 $ 10,648 Software maintenance 2 359 510 1 872 Other recurring 83 170 96 11 360 Total recurring 4,455 5,307 1,789 329 11,880 Software license 8 129 374 — 511 Professional services 1 591 451 5 1,048 Other non-recurring 32 369 10 27 438 Total $ 4,496 $ 6,396 $ 2,624 $ 361 $ 13,877 For the year ended December 31, 2020 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 2,719 $ 5,105 $ 1,453 $ 274 $ 9,551 All others 1,048 839 987 127 3,001 Total $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 Type of Revenue: Recurring revenue: Transaction processing and services $ 3,680 $ 4,443 $ 1,091 $ 374 $ 9,588 Software maintenance 2 352 493 1 848 Other recurring 77 165 99 2 343 Total recurring 3,759 4,960 1,683 377 10,779 Software license 2 89 328 6 425 Professional services 1 605 427 5 1,038 Other non-recurring 5 290 2 13 310 Total $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 For the year ended December 31, 2019 (in millions): Reportable Segments Merchant Banking Capital Corporate and Other Total Primary Geographical Markets: North America $ 1,409 $ 4,738 $ 1,398 $ 314 $ 7,859 All others 533 854 920 167 2,474 Total $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Type of Revenue: Recurring revenue: Transaction processing and services $ 1,890 $ 4,056 $ 993 $ 420 $ 7,359 Software maintenance 2 360 482 — 844 Other recurring 37 177 106 — 320 Total recurring 1,929 4,593 1,581 420 8,523 Software license 8 150 328 13 499 Professional services 1 581 406 6 994 Other non-recurring 4 268 3 42 317 Total $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Land $ 46 $ 48 Buildings 397 295 Leasehold improvements 162 157 Computer equipment 1,754 1,622 Furniture, fixtures, and other equipment 161 170 2,520 2,292 Accumulated depreciation and amortization (1,571) (1,405) Total Property and equipment, net $ 949 $ 887 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes In Goodwill | Changes in goodwill during the years ended December 31, 2021 and 2020, are summarized below (in millions). Prior-period amounts have been recast to conform to the reportable segment presentation changes made during the year ended December 31, 2020, as discussed in Note 21. Merchant Banking Capital Corporate and Other Total Balance, December 31, 2019 $ 35,553 $ 12,217 $ 4,358 $ 114 $ 52,242 Goodwill attributable to acquisitions (11) 57 253 — 299 Foreign currency adjustments 725 5 91 — 821 Asset impairments — — — (94) (94) Balance, December 31, 2020 36,267 12,279 4,702 20 53,268 Goodwill attributable to acquisitions 620 — — — 620 Foreign currency adjustments (484) (35) (39) — (558) Balance, December 31, 2021 $ 36,403 $ 12,244 $ 4,663 $ 20 $ 53,330 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets as of December 31, 2021, consist of the following (in millions): Cost Accumulated Net Customer relationships $ 18,410 $ (7,141) $ 11,269 Trademarks and other 509 (239) 270 Total Intangible assets, net $ 18,919 $ (7,380) $ 11,539 Intangible assets as of December 31, 2020, consist of the following (in millions): Cost Accumulated Net Customer relationships $ 18,586 $ (5,024) $ 13,562 Trademarks and other 555 (189) 366 Total Intangible assets, net $ 19,141 $ (5,213) $ 13,928 Software as of December 31, 2021 and 2020, consists of the following (in millions): 2021 2020 Software from acquisitions $ 2,181 $ 2,077 Capitalized software development costs 3,286 2,826 Purchased software 728 632 6,195 5,535 Accumulated amortization (2,896) (2,165) Total Software, net $ 3,299 $ 3,370 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets as of December 31, 2021, consist of the following (in millions): Cost Accumulated Net Customer relationships $ 18,410 $ (7,141) $ 11,269 Trademarks and other 509 (239) 270 Total Intangible assets, net $ 18,919 $ (7,380) $ 11,539 Intangible assets as of December 31, 2020, consist of the following (in millions): Cost Accumulated Net Customer relationships $ 18,586 $ (5,024) $ 13,562 Trademarks and other 555 (189) 366 Total Intangible assets, net $ 19,141 $ (5,213) $ 13,928 |
Schedule of Estimated Amortization of Intangibles | Estimated amortization of intangible assets for the next five years is as follows (in millions): 2022 $ 2,232 2023 2,042 2024 1,843 2025 1,675 2026 1,214 |
Software (Tables)
Software (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Research and Development [Abstract] | |
Schedule of Software | Intangible assets as of December 31, 2021, consist of the following (in millions): Cost Accumulated Net Customer relationships $ 18,410 $ (7,141) $ 11,269 Trademarks and other 509 (239) 270 Total Intangible assets, net $ 18,919 $ (7,380) $ 11,539 Intangible assets as of December 31, 2020, consist of the following (in millions): Cost Accumulated Net Customer relationships $ 18,586 $ (5,024) $ 13,562 Trademarks and other 555 (189) 366 Total Intangible assets, net $ 19,141 $ (5,213) $ 13,928 Software as of December 31, 2021 and 2020, consists of the following (in millions): 2021 2020 Software from acquisitions $ 2,181 $ 2,077 Capitalized software development costs 3,286 2,826 Purchased software 728 632 6,195 5,535 Accumulated amortization (2,896) (2,165) Total Software, net $ 3,299 $ 3,370 |
Deferred Contract Costs (Tables
Deferred Contract Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capitalized Contract Cost [Abstract] | |
Schedule of Deferred Contract Costs | Origination and fulfillment costs from contracts with customers capitalized as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Contract costs on implementations in progress $ 218 $ 245 Contract origination costs on completed implementations, net 553 470 Contract fulfillment costs on completed implementations, net 198 202 Total Deferred contract costs, net $ 969 $ 917 |
Accounts Payable, Accrued and_2
Accounts Payable, Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable, accrued and other liabilities as of December 31, 2021 and 2020, consists of the following (in millions): 2021 2020 Trade accounts payable and other accrued liabilities $ 1,829 $ 1,576 Salaries and incentives 403 261 Taxes other than income tax 299 236 Accrued benefits and payroll taxes 134 155 Operating lease liabilities 146 152 Accrued interest payable 53 102 Total Accounts payable, accrued and other liabilities $ 2,864 $ 2,482 |
Other Noncurrent Assets and L_2
Other Noncurrent Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Noncurrent Assets and Liabilities [Abstract] | |
Schedule of Other Noncurrent Assets | Other noncurrent assets as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Operating lease ROU assets (1) $ 462 $ 534 Equity security investments 358 81 Visa Europe and contingent value rights ("CVR") related assets 197 70 Other 1,120 889 Total Other noncurrent assets $ 2,137 $ 1,574 |
Schedule of Other Noncurrent Liabilities | Other noncurrent liabilities as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Operating lease liabilities (1) $ 378 $ 453 Tax Receivable Agreement liability (2) 267 447 CVR liability 478 401 Deferred revenue 175 59 Other 617 666 Total Other noncurrent liabilities $ 1,915 $ 2,026 (1) See Note 14, Operating Leases (2) See Note 16, Commitments and Contingencies |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Long-term debt as of December 31, 2021 and 2020, consists of the following (in millions): December 31, 2021 Weighted Average Interest Interest December 31, Rates Rate (1) Maturities 2021 2020 Fixed Rate Notes Senior USD Notes 0.4% - 4.8% 1.8% 2023 - 2048 $ 6,909 $ 4,938 Senior Euro Notes 0.1% - 3.0% 1.3% 2022 - 2039 7,656 8,891 Senior GBP Notes 1.7% - 3.4% 1.6% 2022 - 2031 1,655 2,526 Senior Euro Floating Rate Notes N/A 2021 — 613 Revolving Credit Facility (2) 1.4% 2026 325 251 Other (3) (103) 46 Total long-term debt, including current portion 16,442 17,265 Current portion of long-term debt (1,617) (1,314) Long-term debt, excluding current portion $ 14,825 $ 15,951 (1) The weighted average interest rate includes the impact of interest rate swaps (see Note 13). (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. The weighted average interest rate on the Revolving Credit Facility excludes fees. (3) Other includes financing obligations for certain hardware and software, the fair value of interest rate swaps (see Note 13), unamortized non-cash bond discounts and unamortized debt issuance costs. |
Schedule of Short-term Debt | Short-term borrowings as of December 31, 2021 and 2020, consist of the following (in millions): December 31, 2021 Weighted Average Interest December 31, Rate Maturities 2021 2020 Euro-commercial paper notes ("ECP Notes") (0.5) % Up to 183 days $ 1,723 $ 861 U.S. commercial paper notes ("USCP Notes") 0.4 % Up to 397 days 2,087 1,745 Other 101 144 Total Short-term borrowings $ 3,911 $ 2,750 |
Schedule of Principal Maturities of Debt | The following summarizes the aggregate maturities of our long-term debt, including other financing obligations for certain hardware and software, based on stated contractual maturities, excluding the fair value of the interest rate swaps (see Note 13) and net unamortized non-cash bond discounts of $(126) million as of December 31, 2021 (in millions): Total 2022 $ 1,620 2023 2,193 2024 1,325 2025 715 2026 1,581 Thereafter 9,237 Total principal payments 16,671 Debt issuance costs, net of accumulated amortization (103) Total long-term debt $ 16,568 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Balance Sheet Classification | The classification of the Company's operating lease ROU assets and liabilities in the consolidated balance sheets as of December 31, 2021 and 2020, is as follows (in millions): December 31, Classification 2021 2020 Operating lease ROU assets Other noncurrent assets $ 462 $ 534 Operating lease liabilities Accounts payable, accrued and other liabilities $ 146 $ 152 Other noncurrent liabilities 378 453 Total operating lease liabilities $ 524 $ 605 |
Schedule of Operating Lease Liability Maturity Schedule | Maturities of operating lease liabilities, as of December 31, 2021, are as follows (in millions): 2022 $ 145 2023 121 2024 96 2025 67 2026 58 Thereafter 102 Total lease payments 589 Less: Imputed interest (65) Total operating lease liabilities $ 524 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2021, 2020 and 2019, consists of the following (in millions): 2021 2020 2019 Current provision (benefit): Federal $ 220 $ 81 $ 53 State 68 50 46 Foreign 172 176 116 Total current provision $ 460 $ 307 $ 215 Deferred provision (benefit): Federal $ (118) $ (53) $ (47) State (11) (28) 7 Foreign 40 (130) (75) Total deferred provision (89) (211) (115) Total provision for income taxes $ 371 $ 96 $ 100 Total income tax expense for the years ended December 31, 2021, 2020 and 2019, is allocated as follows (in millions): 2021 2020 2019 Tax expense (benefit) per statements of earnings $ 371 $ 96 $ 100 Unrealized gain (loss) on derivatives 141 (7) (41) Foreign currency translation adjustments 143 (154) 240 Other components of other comprehensive earnings (loss) — — (3) Total income tax expense (benefit) allocated to other comprehensive earnings 284 (161) 196 Total income tax expense (benefit) $ 655 $ (65) $ 296 |
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, 2021, 2020 and 2019 (in millions): 2021 2020 2019 United States $ 747 $ 441 $ 220 Foreign 42 (175) 193 Total $ 789 $ 266 $ 413 |
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, 2021, 2020 and 2019, is as follows: 2021 2020 2019 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes 6.7 14.6 2.5 Federal benefit of state taxes (1.4) (3.1) (0.5) Foreign rate differential (4.5) (10.1) (1.7) U.K. tax rate adjustment 23.6 38.2 — Non-deductible executive compensation 3.5 9.0 10.6 Withholding tax on actual and estimated remittances 2.9 2.1 — Foreign-derived intangible income deduction (2.4) (7.2) (3.3) Tax benefit from stock-based compensation (2.2) (18.1) (8.1) CVR liability fair value and foreign currency adjustment 2.0 8.2 0.7 Research and development credit (1.6) (4.1) (2.4) Unrecognized tax benefits 0.6 0.3 (1.4) Return to provision adjustments (0.3) (4.9) (0.4) Acquisition-related items — (15.9) 1.8 Book basis in excess of tax basis for goodwill impairment and disposition — 9.2 — State tax rate adjustment — (2.8) 5.1 Cares Act net operating loss adjustment — (2.3) — Deferred tax and other rate adjustments — 1.1 0.2 Other (0.9) 0.8 0.1 Effective income tax rate 47.0 % 36.0 % 24.2 % |
Schedule of Deferred Income Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities as of December 31, 2021 and 2020, consist of the following (in millions): 2021 2020 Deferred income tax assets: Net operating loss carryforwards $ 194 $ 221 Employee benefit accruals 173 155 Other deferred tax assets 154 204 Total gross deferred income tax assets 521 580 Less valuation allowance (191) (204) Total deferred income tax assets 330 376 Deferred income tax liabilities: Amortization of goodwill and intangible assets (3,743) (3,945) Foreign currency translation adjustment (320) (95) Deferred contract costs (196) (173) Other deferred tax liabilities (215) (140) Total deferred income tax liabilities (4,474) (4,353) Net deferred income tax liability $ (4,144) $ (3,977) Deferred income taxes are classified in the consolidated balance sheets as of December 31, 2021 and 2020, as follows (in millions): 2021 2020 Noncurrent deferred income tax assets (included in Other noncurrent assets) $ 49 $ 40 Noncurrent deferred income tax liabilities (4,193) (4,017) Net deferred income tax liability $ (4,144) $ (3,977) |
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 December 31, 2019 $ 45 Amount of decreases due to lapse of the applicable statute of limitations (1) Amount of decreases due to settlements (9) Increases as a result of tax positions taken in the current period 9 Amount of unrecognized tax benefit as of December 31, 2020 44 Amount of decreases due to lapse of the applicable statute of limitations (4) Amount of decreases due to settlements (2) Increases as a result of tax positions taken in prior period 11 Increases as a result of tax positions taken in the current period 6 Foreign currency translation (1) Amount of unrecognized tax benefit as of December 31, 2021 $ 54 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of TRA Obligation | The following table summarizes our estimated payment obligation timing under the TRA as of December 31, 2021 (in millions): Payments Due in Total 2022 2023 2024 and After Obligations under TRA $ 451 $ 185 $ 197 $ 69 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for the year ended December 31, 2021 (in millions except for per share amounts): Options Weighted Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2020 8 $ 88.01 3.8 $ 464 Granted 2 142.92 Exercised (2) 72.67 $ 107 Cancelled — 126.64 Balance, December 31, 2021 8 $ 99.32 3.6 $ 143 Options exercisable at December 31, 2021 6 $ 84.91 2.6 $ 142 |
Schedule of Stock Option Valuation Assumptions | The weighted average fair value of options granted during the years ended December 31, 2021, 2020 and 2019, was $29.01, $21.17 and $19.25, respectively, using the Black-Scholes option pricing model with the assumptions below: 2021 2020 2019 Risk free interest rate 0.6 % 0.4 % 2.2 % Volatility 27.6 % 24.7 % 20.1 % Dividend yield 1.1 % 1.2 % 1.2 % Weighted average expected life (years) 4.1 4.1 4.1 |
Schedule of Restricted Stock Unit, Activity | The following table summarizes the restricted stock units activity for the year ended December 31, 2021 (in millions except for per share amounts): Quantity Weighted Average Fair Value Balance December 31, 2020 5 $ 127.63 Granted 2 $ 136.69 Vested (2) $ 127.19 Forfeited — $ 126.34 Balance December 31, 2021 5 $ 132.60 |
Components of Other Comprehen_2
Components of Other Comprehensive Earnings (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Earnings | The following table shows Accumulated other comprehensive earnings (loss) attributable to FIS by component, net of tax, for the years ended December 31, 2021, 2020 and 2019 (in millions): Interest Rate Swap Contracts Foreign Currency Translation Adjustments Other Total Balances, December 31, 2018 $ — $ (391) $ (39) $ (430) Other comprehensive earnings (loss) before reclassifications (127) 578 (56) 395 Amounts reclassified from accumulated other comprehensive earnings — — 2 2 Balances, December 31, 2019 (127) 187 (93) (33) Other comprehensive earnings (loss) before reclassifications (21) 106 3 88 Amounts reclassified from accumulated other comprehensive earnings — — 2 2 Balances, December 31, 2020 (148) 293 (88) 57 Other comprehensive earnings (loss) before reclassifications 392 (212) 5 185 Amounts reclassified from accumulated other comprehensive earnings — — 10 10 Balances, December 31, 2021 $ 244 $ 81 $ (73) $ 252 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. The Company does not evaluate performance or allocate resources based on segment asset data; therefore, such information is not presented. As of and for the year ended December 31, 2021 (in millions): Merchant Banking Capital Corporate Total Revenue $ 4,496 $ 6,396 $ 2,624 $ 361 $ 13,877 Operating expenses (2,580) (4,105) (1,682) (4,455) (12,822) Depreciation and amortization (including purchase accounting amortization) 346 583 329 2,757 4,015 Acquisition, integration and other costs — — — 845 845 Asset impairments — — — 202 202 Adjusted EBITDA $ 2,262 $ 2,874 $ 1,271 $ (290) $ 6,117 Adjusted EBITDA $ 6,117 Depreciation and amortization (1,251) Purchase accounting amortization (2,764) Acquisition, integration and other costs (845) Asset impairments (202) Interest expense, net (214) Other income (expense), net (52) (Provision) benefit for income taxes (371) Equity method investment earnings (loss) 6 Net earnings attributable to noncontrolling interest (7) Net earnings attributable to FIS common stockholders $ 417 Capital expenditures (1) $ 401 $ 442 $ 229 $ 214 $ 1,286 (1) Capital expenditures include $35 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2020 (in millions): Merchant Banking Capital Corporate Total Revenue $ 3,767 $ 5,944 $ 2,440 $ 401 $ 12,552 Operating expenses (2,320) (3,901) (1,566) (4,213) (12,000) Depreciation and amortization (including purchase accounting amortization) 305 513 273 2,623 3,714 Acquisition, integration and other costs — — — 858 858 Asset impairments — — — 136 136 Adjusted EBITDA $ 1,752 $ 2,556 $ 1,147 $ (195) $ 5,260 Adjusted EBITDA $ 5,260 Depreciation and amortization (964) Purchase accounting amortization (2,750) Acquisition, integration and other costs (858) Asset impairments (136) Interest expense, net (334) Other income (expense), net 48 (Provision) benefit for income taxes (96) Equity method investment earnings (loss) (6) Net earnings attributable to noncontrolling interest (6) Net earnings attributable to FIS common stockholders $ 158 Capital expenditures (1) $ 365 $ 498 $ 223 $ 64 $ 1,150 (1) Capital expenditures include $21 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2019 (in millions): Merchant Banking Capital Corporate Total Revenue $ 1,942 $ 5,592 $ 2,318 $ 481 $ 10,333 Operating expenses (1,090) (3,679) (1,458) (3,137) (9,364) Depreciation and amortization (including purchase accounting amortization) 115 489 213 1,627 2,444 Acquisition deferred revenue adjustment — — — — — Acquisition, integration and other costs — — — 704 704 Asset impairments — — — 87 87 Adjusted EBITDA $ 967 $ 2,402 $ 1,073 $ (238) 4,204 Adjusted EBITDA $ 4,204 Depreciation and amortization (809) Purchase accounting amortization (1,635) Acquisition, integration and other costs (704) Asset impairments (87) Interest expense, net (337) Other income (expense), net (219) (Provision) benefit for income taxes (100) Equity method investment earnings (loss) (10) Net earnings attributable to noncontrolling interest (5) Net earnings attributable to FIS common stockholders $ 298 Capital expenditures (1) $ 141 $ 612 $ 266 $ 24 $ 1,043 (1) Capital expenditures include $215 million in other financing obligations for certain hardware and software. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent of revenue subject to segment reclassification of certain non-strategic businesses | 3.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents on the consolidated balance sheets | $ 2,010 | $ 1,959 | ||
Merchant float restricted cash (in Settlement asset) | 2,273 | 2,071 | ||
Total Cash, cash equivalents and restricted cash per the consolidated statements of cash flows | $ 4,283 | $ 4,030 | $ 3,211 | $ 703 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)contractshares | Dec. 31, 2020USD ($)contractshares | Dec. 31, 2019shares | |
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Cash flow hedge contracts | contract | 0 | 0 | |
Contract assets | $ 238 | $ 186 | |
Goodwill impairment loss | 94 | ||
Impairment of held for use assets | 42 | ||
Operating lease impairment loss | $ 30 | ||
Purchase of common shares (in shares) (current year less than) | shares | 2 | 1 | 1 |
Merchant Solutions | |||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Reporting unit, percentage of fair value in excess of carrying amount | 4.00% | ||
Goodwill impairment loss | $ 0 | ||
Corporate and Other | |||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Goodwill impairment loss | $ 94 | ||
Buildings | |||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Fixed asset, estimated useful life | 30 years | ||
Minimum | |||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Payment or collection period | 1 day | ||
Lease renewal term | 1 year | ||
Minimum | Furniture and fixture | |||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Fixed asset, estimated useful life | 3 years | ||
Maximum | |||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Payment or collection period | 3 days | ||
Lease renewal term | 5 years | ||
Maximum | Furniture and fixture | |||
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 | ||
Software | Minimum | |||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Intangible assets, estimated useful lives | 1 year | ||
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 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Settlement Assets and Payables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Settlement assets | ||
Settlement deposits | $ 530 | $ 1,181 |
Merchant float | 2,273 | 2,071 |
Settlement receivables | 1,217 | 662 |
Total Settlement assets | 4,020 | 3,914 |
Settlement payables | $ 5,295 | $ 4,934 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Earnings per Share | |||
Net earnings attributable to FIS common stockholders | $ 417 | $ 158 | $ 298 |
Weighted average shares outstanding — basic (in shares) | 616 | 619 | 445 |
Plus: Common stock equivalent shares (in shares) | 5 | 8 | 6 |
Weighted average shares outstanding — diluted (in shares) | 621 | 627 | 451 |
Net earnings per share — basic attributable to FIS common stockholders (in dollars per share) | $ 0.68 | $ 0.26 | $ 0.67 |
Net earnings per share — diluted attributable to FIS common stockholders (in dollars per share) | $ 0.67 | $ 0.25 | $ 0.66 |
Acquisitions - Payrix Acquisiti
Acquisitions - Payrix Acquisition Narrative (Details) - USD ($) $ in Millions | Dec. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition | ||||
Goodwill | $ 53,330 | $ 53,268 | $ 52,242 | |
Payrix Acquisition | ||||
Business Acquisition | ||||
Percentage of equity interests acquired | 100.00% | |||
Purchase price | $ 777 | |||
Goodwill | 620 | |||
Payrix Acquisition | Software | ||||
Business Acquisition | ||||
Identifiable finite lived intangibles assets acquired | $ 132 |
Acquisitions - Virtus Acquisiti
Acquisitions - Virtus Acquisition Narrative (Details) - USD ($) $ in Millions | Jan. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition | ||||
Goodwill | $ 53,330 | $ 53,268 | $ 52,242 | |
Virtus Partners | ||||
Business Acquisition | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 30.00% | |||
Virtus Partners | ||||
Business Acquisition | ||||
Percentage of equity interests acquired | 70.00% | |||
Cash purchase price | $ 404 | |||
Fair value of redeemable noncontrolling interest | 173 | |||
Goodwill | $ 253 | |||
Call option exercise period | 2 years | |||
Put option exercise period | 3 years | |||
Virtus Partners | Customer relationships | ||||
Business Acquisition | ||||
Identifiable finite lived intangibles assets acquired | $ 254 | |||
Virtus Partners | Software | ||||
Business Acquisition | ||||
Identifiable finite lived intangibles assets acquired | $ 51 |
Acquisitions - Worldpay Narrati
Acquisitions - Worldpay Narrative (Details) - Worldpay - USD ($) $ in Millions | Jul. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 |
Business Acquisition | |||
Percentage of equity interests acquired | 100.00% | ||
Purchase price | $ 48,245 | ||
Revenue since acquisition | $ 1,880 | ||
Pre-tax loss since acquisition | $ (436) | ||
Business acquisition cost | $ 260 |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Results of Operations (Details) - Worldpay $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / shares | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Revenue | $ | $ 12,724 |
Net earnings (loss) attributable to FIS common stockholders | $ | $ 254 |
Net earnings (loss) per share — basic attributable to FIS common stockholders (usd per share) | $ / shares | $ 0.41 |
Net earnings (loss) per share — diluted attributable to FIS common stockholders (usd per share) | $ / shares | $ 0.41 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | |||
Revenue | $ 13,877 | $ 12,552 | $ 10,333 |
Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 11,880 | 10,779 | 8,523 |
Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 10,648 | 9,588 | 7,359 |
Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 872 | 848 | 844 |
Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 360 | 343 | 320 |
Other non-recurring | Software license | |||
Disaggregation of Revenue | |||
Revenue | 511 | 425 | 499 |
Other non-recurring | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 1,048 | 1,038 | 994 |
Other non-recurring | Other non-recurring | |||
Disaggregation of Revenue | |||
Revenue | 438 | 310 | 317 |
North America | |||
Disaggregation of Revenue | |||
Revenue | 10,333 | 9,551 | 7,859 |
All others | |||
Disaggregation of Revenue | |||
Revenue | 3,544 | 3,001 | 2,474 |
Operating Segments | |||
Disaggregation of Revenue | |||
Revenue | 13,877 | 12,552 | 10,333 |
Operating Segments | Merchant Solutions | |||
Disaggregation of Revenue | |||
Revenue | 4,496 | 3,767 | 1,942 |
Operating Segments | Merchant Solutions | Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 4,455 | 3,759 | 1,929 |
Operating Segments | Merchant Solutions | Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 4,370 | 3,680 | 1,890 |
Operating Segments | Merchant Solutions | Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 2 | 2 | 2 |
Operating Segments | Merchant Solutions | Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 83 | 77 | 37 |
Operating Segments | Merchant Solutions | Other non-recurring | Software license | |||
Disaggregation of Revenue | |||
Revenue | 8 | 2 | 8 |
Operating Segments | Merchant Solutions | Other non-recurring | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 1 | 1 | 1 |
Operating Segments | Merchant Solutions | Other non-recurring | Other non-recurring | |||
Disaggregation of Revenue | |||
Revenue | 32 | 5 | 4 |
Operating Segments | Merchant Solutions | North America | |||
Disaggregation of Revenue | |||
Revenue | 3,161 | 2,719 | 1,409 |
Operating Segments | Merchant Solutions | All others | |||
Disaggregation of Revenue | |||
Revenue | 1,335 | 1,048 | 533 |
Operating Segments | Banking Solutions | |||
Disaggregation of Revenue | |||
Revenue | 6,396 | 5,944 | 5,592 |
Operating Segments | Banking Solutions | Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 5,307 | 4,960 | 4,593 |
Operating Segments | Banking Solutions | Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 4,778 | 4,443 | 4,056 |
Operating Segments | Banking Solutions | Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 359 | 352 | 360 |
Operating Segments | Banking Solutions | Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 170 | 165 | 177 |
Operating Segments | Banking Solutions | Other non-recurring | Software license | |||
Disaggregation of Revenue | |||
Revenue | 129 | 89 | 150 |
Operating Segments | Banking Solutions | Other non-recurring | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 591 | 605 | 581 |
Operating Segments | Banking Solutions | Other non-recurring | Other non-recurring | |||
Disaggregation of Revenue | |||
Revenue | 369 | 290 | 268 |
Operating Segments | Banking Solutions | North America | |||
Disaggregation of Revenue | |||
Revenue | 5,454 | 5,105 | 4,738 |
Operating Segments | Banking Solutions | All others | |||
Disaggregation of Revenue | |||
Revenue | 942 | 839 | 854 |
Operating Segments | Capital Market Solutions | |||
Disaggregation of Revenue | |||
Revenue | 2,624 | 2,440 | 2,318 |
Operating Segments | Capital Market Solutions | Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 1,789 | 1,683 | 1,581 |
Operating Segments | Capital Market Solutions | Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 1,183 | 1,091 | 993 |
Operating Segments | Capital Market Solutions | Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 510 | 493 | 482 |
Operating Segments | Capital Market Solutions | Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 96 | 99 | 106 |
Operating Segments | Capital Market Solutions | Other non-recurring | Software license | |||
Disaggregation of Revenue | |||
Revenue | 374 | 328 | 328 |
Operating Segments | Capital Market Solutions | Other non-recurring | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 451 | 427 | 406 |
Operating Segments | Capital Market Solutions | Other non-recurring | Other non-recurring | |||
Disaggregation of Revenue | |||
Revenue | 10 | 2 | 3 |
Operating Segments | Capital Market Solutions | North America | |||
Disaggregation of Revenue | |||
Revenue | 1,490 | 1,453 | 1,398 |
Operating Segments | Capital Market Solutions | All others | |||
Disaggregation of Revenue | |||
Revenue | 1,134 | 987 | 920 |
Operating Segments | Corporate and Other | |||
Disaggregation of Revenue | |||
Revenue | 361 | 401 | 481 |
Operating Segments | Corporate and Other | Total recurring | |||
Disaggregation of Revenue | |||
Revenue | 329 | 377 | 420 |
Operating Segments | Corporate and Other | Total recurring | Transaction processing and services | |||
Disaggregation of Revenue | |||
Revenue | 317 | 374 | 420 |
Operating Segments | Corporate and Other | Total recurring | Software maintenance | |||
Disaggregation of Revenue | |||
Revenue | 1 | 1 | 0 |
Operating Segments | Corporate and Other | Total recurring | Other recurring | |||
Disaggregation of Revenue | |||
Revenue | 11 | 2 | 0 |
Operating Segments | Corporate and Other | Other non-recurring | Software license | |||
Disaggregation of Revenue | |||
Revenue | 0 | 6 | 13 |
Operating Segments | Corporate and Other | Other non-recurring | Professional services | |||
Disaggregation of Revenue | |||
Revenue | 5 | 5 | 6 |
Operating Segments | Corporate and Other | Other non-recurring | Other non-recurring | |||
Disaggregation of Revenue | |||
Revenue | 27 | 13 | 42 |
Operating Segments | Corporate and Other | North America | |||
Disaggregation of Revenue | |||
Revenue | 228 | 274 | 314 |
Operating Segments | Corporate and Other | All others | |||
Disaggregation of Revenue | |||
Revenue | $ 133 | $ 127 | $ 167 |
Revenue - Narratives (Details)
Revenue - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue recognition previously deferred | $ 680 | $ 764 | $ 762 |
Remaining revenue recognition | $ 23,000 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 30.00% | ||
Performance obligations expected to be satisfied, expected timing | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 21.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Minimum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations expected to be satisfied, expected timing | 13 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Maximum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations expected to be satisfied, expected timing | 24 months |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment | ||
Property and equipment, gross | $ 2,520 | $ 2,292 |
Accumulated depreciation and amortization | (1,571) | (1,405) |
Total Property and equipment, net | 949 | 887 |
Land | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 46 | 48 |
Buildings | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 397 | 295 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 162 | 157 |
Computer equipment | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 1,754 | 1,622 |
Furniture, fixtures, and other equipment | ||
Property, Plant and Equipment | ||
Property and equipment, gross | $ 161 | $ 170 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | |||
Right-of-use asset obtained in exchange for finance lease liability | $ 21 | ||
Depreciation and amortization | $ 4,015 | 3,714 | $ 2,444 |
Property plant and equipment including that recorded under capital leases | |||
Property, Plant and Equipment | |||
Depreciation and amortization | $ 257 | $ 252 | $ 201 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | $ 53,268 | $ 52,242 |
Goodwill attributable to acquisitions | 620 | 299 |
Foreign currency adjustments | (558) | 821 |
Asset impairments | (94) | |
Ending balance | 53,330 | 53,268 |
Merchant Solutions | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 36,267 | 35,553 |
Goodwill attributable to acquisitions | 620 | (11) |
Foreign currency adjustments | (484) | 725 |
Asset impairments | 0 | |
Ending balance | 36,403 | 36,267 |
Banking Solutions | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 12,279 | 12,217 |
Goodwill attributable to acquisitions | 0 | 57 |
Foreign currency adjustments | (35) | 5 |
Asset impairments | 0 | |
Ending balance | 12,244 | 12,279 |
Capital Market Solutions | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 4,702 | 4,358 |
Goodwill attributable to acquisitions | 0 | 253 |
Foreign currency adjustments | (39) | 91 |
Asset impairments | 0 | |
Ending balance | 4,663 | 4,702 |
Corporate and Other | ||
Changes in goodwill, net of purchase accounting adjustments | ||
Beginning balance | 20 | 114 |
Goodwill attributable to acquisitions | 0 | 0 |
Foreign currency adjustments | 0 | 0 |
Asset impairments | (94) | |
Ending balance | $ 20 | $ 20 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible Assets | ||
Cost | $ 18,919 | $ 19,141 |
Accumulated Amortization | (7,380) | (5,213) |
Net | 11,539 | 13,928 |
Customer relationships | ||
Intangible Assets | ||
Cost | 18,410 | 18,586 |
Accumulated Amortization | (7,141) | (5,024) |
Net | 11,269 | 13,562 |
Trademarks and other | ||
Intangible Assets | ||
Cost | 509 | 555 |
Accumulated Amortization | (239) | (189) |
Net | $ 270 | $ 366 |
Intangible Assets - Narratives
Intangible Assets - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | |||
Amortization expense for intangible assets with finite lives | $ 2,383 | $ 2,400 | $ 1,444 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Amortization of Intangibles for the Next Five Years (Details) $ in Millions | Dec. 31, 2021USD ($) |
Estimated Amortization of Intangibles | |
2022 | $ 2,232 |
2023 | 2,042 |
2024 | 1,843 |
2025 | 1,675 |
2026 | $ 1,214 |
Software (Details)
Software (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Computer Software | ||
Gross capitalized computer software | $ 6,195 | $ 5,535 |
Accumulated amortization | (2,896) | (2,165) |
Total Software, net | 3,299 | 3,370 |
Software from acquisitions | ||
Computer Software | ||
Gross capitalized computer software | 2,181 | 2,077 |
Capitalized software development costs | ||
Computer Software | ||
Gross capitalized computer software | 3,286 | 2,826 |
Purchased software | ||
Computer Software | ||
Gross capitalized computer software | $ 728 | $ 632 |
Software - Narratives (Details)
Software - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Computer Software | |||
Impairment of computer software | $ 144 | $ 87 | |
incremental computer software amortization | 145 | ||
Amortization expense for intangible assets with finite lives | 2,383 | $ 2,400 | 1,444 |
Software | |||
Computer Software | |||
Amortization expense for intangible assets with finite lives | $ 1,041 | $ 837 | $ 616 |
Deferred Contract Costs (Detail
Deferred Contract Costs (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Capitalized Contract Cost | ||
Total Deferred contract costs, net | $ 969 | $ 917 |
Contract costs on implementations in progress | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | 218 | 245 |
Contract origination costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | 553 | 470 |
Contract fulfillment costs on completed implementations, net | ||
Capitalized Contract Cost | ||
Total Deferred contract costs, net | $ 198 | $ 202 |
Deferred Contract Costs - Narra
Deferred Contract Costs - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost | |||
Amortization of capitalized contract costs | $ 335 | $ 225 | $ 184 |
Platform Modernization | |||
Capitalized Contract Cost | |||
Amortization of capitalized contract costs | 38 | ||
Impairment loss | $ 58 |
Accounts Payable, Accrued and_3
Accounts Payable, Accrued and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Trade accounts payable and other accrued liabilities | $ 1,829 | $ 1,576 |
Salaries and incentives | 403 | 261 |
Taxes other than income tax | 299 | 236 |
Accrued benefits and payroll taxes | 134 | 155 |
Operating lease liabilities | 146 | 152 |
Accrued interest payable | 53 | 102 |
Total Accounts payable, accrued and other liabilities | $ 2,864 | $ 2,482 |
Other Noncurrent Assets and L_3
Other Noncurrent Assets and Liabilities - Other Noncurrent Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Noncurrent Assets and Liabilities [Abstract] | ||
Operating lease ROU assets | $ 462 | $ 534 |
Equity security investments | 358 | 81 |
Visa Europe and contingent value rights ("CVR") related assets | 197 | 70 |
Other | 1,120 | 889 |
Total Other noncurrent assets | $ 2,137 | $ 1,574 |
Other Noncurrent Assets and L_4
Other Noncurrent Assets and Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Noncurrent Assets and Liabilities [Abstract] | ||
Operating lease liabilities | $ 378 | $ 453 |
Tax Receivable Agreement liability | 267 | 447 |
CVR liability | 478 | 401 |
Deferred revenue | 175 | 59 |
Other | 617 | 666 |
Total Other noncurrent liabilities | $ 1,915 | $ 2,026 |
Other Noncurrent Assets and L_5
Other Noncurrent Assets and Liabilities - Narratives (Details) - USD ($) $ in Millions | Sep. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Noncurrent Assets and Liabilities | |||||
Contingent value rights, fair value | $ 401 | $ 478 | $ 401 | ||
Equity security investments | 81 | 358 | 81 | ||
Other Nonoperating Income (Expense) | |||||
Noncurrent Assets and Liabilities | |||||
Gain on equity securities | 218 | ||||
Other Noncurrent Assets | |||||
Noncurrent Assets and Liabilities | |||||
Equity security investments | 81 | 358 | 81 | ||
Convertible Preferred Stock | Visa, Inc. Released Preferred Stock | |||||
Noncurrent Assets and Liabilities | |||||
Contingent value rights, proceeds from common stock converted from preferred stock and sold, before tax | 552 | ||||
Contingent value rights, proceeds from common stock converted from preferred stock and sold, net of tax | 403 | ||||
Former Legacy Worldpay Owners | |||||
Noncurrent Assets and Liabilities | |||||
Contingent value rights, payment tranche one, percentage | 33.00% | ||||
Contingent value rights, payment tranche one | $ 185 | ||||
Contingent value rights, payment tranche two, percentage | 66.00% | ||||
Visa Europe to Visa, Inc. | |||||
Noncurrent Assets and Liabilities | |||||
Unrealized change in equity investments | 53 | 78 | $ 5 | ||
Visa Europe to Visa, Inc. | Preferred Stock | |||||
Noncurrent Assets and Liabilities | |||||
Contingent value rights, fair value | $ 70 | $ 197 | $ 70 | ||
Visa Europe to Visa, Inc. | Former Legacy Worldpay Owners | Convertible Preferred Stock | |||||
Noncurrent Assets and Liabilities | |||||
Percentage of net proceeds from disposal due to previous owner per contingent value right | 90.00% | 90.00% |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 02, 2021 | Dec. 31, 2020 | |
Debt Instrument | |||
Other | $ (103) | $ 46 | |
Total long-term debt, including current portion | 16,442 | 17,265 | |
Current portion of long-term debt | (1,617) | (1,314) | |
Long-term debt, excluding current portion | $ 14,825 | 15,951 | |
Revolving Credit Facility | |||
Debt Instrument | |||
Weighted average interest rate | 1.40% | ||
Credit facility outstanding amount | $ 325 | 251 | |
Revolving loan unused commitment fee | 0.225% | ||
Revolving Credit Facility | LIBOR | Maximum | |||
Debt Instrument | |||
Applicable margin | 1.625% | ||
Senior Notes | Senior USD Notes | |||
Debt Instrument | |||
Weighted average interest rate | 1.80% | ||
Senior notes | $ 6,909 | 4,938 | |
Senior Notes | Senior USD Notes | Minimum | |||
Debt Instrument | |||
Debt instrument, stated percentage | 0.40% | 0.40% | |
Senior Notes | Senior USD Notes | Maximum | |||
Debt Instrument | |||
Debt instrument, stated percentage | 4.80% | 3.10% | |
Senior Notes | Senior Euro Notes | |||
Debt Instrument | |||
Weighted average interest rate | 1.30% | ||
Senior notes | $ 7,656 | 8,891 | |
Senior Notes | Senior Euro Notes | Minimum | |||
Debt Instrument | |||
Debt instrument, stated percentage | 0.10% | ||
Senior Notes | Senior Euro Notes | Maximum | |||
Debt Instrument | |||
Debt instrument, stated percentage | 3.00% | ||
Senior Notes | Senior GBP Notes | |||
Debt Instrument | |||
Weighted average interest rate | 1.60% | ||
Senior notes | $ 1,655 | 2,526 | |
Senior Notes | Senior GBP Notes | Minimum | |||
Debt Instrument | |||
Debt instrument, stated percentage | 1.70% | ||
Senior Notes | Senior GBP Notes | Maximum | |||
Debt Instrument | |||
Debt instrument, stated percentage | 3.40% | ||
Senior Notes | Senior Euro Floating Rate Notes | |||
Debt Instrument | |||
Senior notes | $ 0 | $ 613 |
Debt - Short Term Debt (Details
Debt - Short Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt | ||
Other | $ 101 | $ 144 |
Total Short-term borrowings | $ 3,911 | 2,750 |
Senior Commercial Paper Notes | FIS Credit Agreement | ECP Notes | ||
Short-term Debt | ||
Weighted average interest rate | (0.50%) | |
Commercial paper | $ 1,723 | 861 |
Senior Commercial Paper Notes | FIS Credit Agreement | USCP Notes | ||
Short-term Debt | ||
Weighted average interest rate | 0.40% | |
Commercial paper | $ 2,087 | $ 1,745 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Dec. 15, 2020USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 29, 2021USD ($) | May 28, 2021USD ($) | May 21, 2021EUR (€) | Mar. 02, 2021USD ($) |
Debt Instrument | ||||||||||
Weighted average interest rate | 0.90% | |||||||||
Principal amount of debt redeemed | $ 53,440,000,000 | $ 49,067,000,000 | $ 24,672,000,000 | |||||||
Loss on extinguishment of debt | 528,000,000 | 0 | $ 217,000,000 | |||||||
Difference in carrying value and fair value of long term debt | 570,000,000 | $ 1,640,000,000 | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument | ||||||||||
Outstanding credit agreement | $ 5,500,000,000 | $ 4,000,000,000 | ||||||||
Additional term and revolving loan capacity in the future | 1,365,000,000 | |||||||||
Line of credit facility, capacity backstopped | 3,810,000,000 | |||||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument | ||||||||||
Mandatory principal payment | $ 0 | |||||||||
Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Senior note redemption price, percentage | 100.00% | |||||||||
Principal amount of debt redeemed | $ 5,100,000,000 | |||||||||
Loss on extinguishment of debt | 528,000,000 | |||||||||
Senior Notes | Minimum | ||||||||||
Debt Instrument | ||||||||||
Make whole amount, trigger period prior to maturity | 1 month | |||||||||
Senior Notes | Maximum | ||||||||||
Debt Instrument | ||||||||||
Make whole amount, trigger period prior to maturity | 6 months | |||||||||
FIS Credit Agreement | ||||||||||
Debt Instrument | ||||||||||
Unamortized discount (premium), net | $ (126,000,000) | |||||||||
Senior Euro Floating Rates Notes | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Face amount of debt | € | € 446,000,000 | |||||||||
Principal amount of debt redeemed | $ 66,000,000 | |||||||||
Senior Euro Floating Rates Notes | Senior Notes | Minimum | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, stated percentage | 0.00% | |||||||||
Senior Euro Floating Rates Notes | Senior Notes | Maximum | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, stated percentage | 5.00% | |||||||||
Senior USD Notes | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Face amount of debt | $ 5,500,000,000 | |||||||||
Principal amount of debt redeemed | $ 3,529,000,000 | |||||||||
Senior USD Notes | Senior Notes | Minimum | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, stated percentage | 0.40% | 0.40% | ||||||||
Senior USD Notes | Senior Notes | Maximum | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, stated percentage | 4.80% | 3.10% | ||||||||
Senior Euro Notes | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Principal amount of debt redeemed | 600,000,000 | |||||||||
Early repayment of senior debt | $ 500,000,000 | |||||||||
Senior Euro Notes | Senior Notes | Minimum | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, stated percentage | 0.10% | |||||||||
Senior Euro Notes | Senior Notes | Maximum | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, stated percentage | 3.00% | |||||||||
Senior GBP Notes | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Principal amount of debt redeemed | $ 871,000,000 | |||||||||
Senior GBP Notes | Senior Notes | Minimum | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, stated percentage | 1.70% | |||||||||
Senior GBP Notes | Senior Notes | Maximum | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, stated percentage | 3.40% | |||||||||
Any And All Notes And Maximum Tender Offer Notes | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Principal amount of debt redeemed | $ 3,000,000,000 | |||||||||
Extinguishment of tender premium | $ 217,000,000 | |||||||||
ECP Notes | Senior Commercial Paper Notes | FIS Credit Agreement | ||||||||||
Debt Instrument | ||||||||||
Outstanding credit agreement | $ 4,700,000,000 | |||||||||
USCP Notes | FIS Credit Agreement | ||||||||||
Debt Instrument | ||||||||||
Outstanding credit agreement | $ 5,500,000,000 |
Debt - Schedule of Principal Ma
Debt - Schedule of Principal Maturities of Long-term Debt (Details) - FIS Credit Agreement $ in Millions | Dec. 31, 2021USD ($) |
Debt Instrument | |
2022 | $ 1,620 |
2023 | 2,193 |
2024 | 1,325 |
2025 | 715 |
2026 | 1,581 |
Thereafter | 9,237 |
Total principal payments | 16,671 |
Debt issuance costs, net of accumulated amortization | (103) |
Total long-term debt | $ 16,568 |
Financial Instruments - Narrati
Financial Instruments - Narratives (Details) € in Millions, £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021GBP (£) | Dec. 31, 2021EUR (€) | Dec. 31, 2020GBP (£) | Dec. 31, 2020EUR (€) | |
Net Investment Hedging | Senior Euro Notes Maturing 2022 to 2039 and ECP Notes | Senior Notes | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||
Notional amount | € | € 8,275 | € 7,466 | |||||
Net Investment Hedging | Senior EURO Floating Rate Notes And Senior Euro Notes Maturing 2021 | Senior Notes | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||
Notional amount | € | 1,000 | ||||||
Interest rate swap | Fair Value Hedging | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||
Notional amount | $ 1,854,000,000 | $ 1,000,000,000 | £ 925 | 500 | 500 | ||
Derivative liability fair value | (85,000,000) | ||||||
Derivative asset fair value | 10,000,000 | ||||||
Interest rate swap | Net Investment Hedging | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||
Derivative liability fair value | (306,000,000) | ||||||
Derivative asset fair value | 258,000,000 | ||||||
Currency forward contract | Net Investment Hedging | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||
Notional amount | £ | 1,193 | £ 1,850 | |||||
Loss on net investment hedge | $ 878,000,000 | $ (951,000,000) | $ (229,000,000) | ||||
Cross currency swap | Net Investment Hedging | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||
Notional amount | £ 2,345 | € 5,906 | £ 565 | € 4,508 |
Operating Leases - Balance Shee
Operating Leases - Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 462 | $ 534 |
Operating lease liabilities | 146 | 152 |
Operating lease liabilities, noncurrent | 378 | 453 |
Total operating lease liabilities | $ 524 | $ 605 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | Other noncurrent liabilities |
Operating Leases - Narratives (
Operating Leases - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 159 | $ 210 |
Variable lease cost | 39 | 39 |
Operating lease impairment loss | 30 | |
Operating lease payments | 165 | 165 |
Right of use asset obtained in exchange for operating lease liability | $ 83 | $ 138 |
Weighted average lease term | 5 years 6 months | 5 years 9 months 18 days |
Weighted average discount rate | 3.00% | 3.20% |
Operating Leases - Maturities o
Operating Leases - Maturities of Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due | ||
2022 | $ 145 | |
2023 | 121 | |
2024 | 96 | |
2025 | 67 | |
2026 | 58 | |
Thereafter | 102 | |
Total lease payments | 589 | |
Less: Imputed interest | (65) | |
Total operating lease liabilities | $ 524 | $ 605 |
Income Taxes - Schedule of Comp
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current provision (benefit): | |||
Federal | $ 220 | $ 81 | $ 53 |
State | 68 | 50 | 46 |
Foreign | 172 | 176 | 116 |
Total current provision | 460 | 307 | 215 |
Deferred provision (benefit): | |||
Federal | (118) | (53) | (47) |
State | (11) | (28) | 7 |
Foreign | 40 | (130) | (75) |
Total deferred provision | (89) | (211) | (115) |
Total provision for income taxes | 371 | 96 | 100 |
Provision for income taxes is based on pre-tax income from continuing operations | |||
United States | 747 | 441 | 220 |
Foreign | 42 | (175) | 193 |
Total | $ 789 | $ 266 | $ 413 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Income Tax Expense (Benefit)) - Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense (Benefit), Intraperiod Tax Allocation [Abstract] | |||
Tax expense (benefit) per statements of earnings | $ 371 | $ 96 | $ 100 |
Unrealized gain (loss) on derivatives | 141 | (7) | (41) |
Foreign currency translation adjustments | 143 | (154) | 240 |
Other components of other comprehensive earnings (loss) | 0 | 0 | (3) |
Total income tax expense (benefit) allocated to other comprehensive earnings | 284 | (161) | 196 |
Total income tax expense (benefit) | $ 655 | $ (65) | $ 296 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes | 6.70% | 14.60% | 2.50% |
Federal benefit of state taxes | (1.40%) | (3.10%) | (0.50%) |
Foreign rate differential | (4.50%) | (10.10%) | (1.70%) |
U.K. tax rate adjustment | 23.60% | 38.20% | 0.00% |
Non-deductible executive compensation | 3.50% | 9.00% | 10.60% |
Withholding tax on actual and estimated remittances | 2.90% | 2.10% | 0.00% |
Foreign-derived intangible income deduction | (2.40%) | (7.20%) | (3.30%) |
Tax benefit from stock-based compensation | (2.20%) | (18.10%) | (8.10%) |
CVR liability fair value and foreign currency adjustment | 2.00% | 8.20% | 0.70% |
Research and development credit | (1.60%) | (4.10%) | (2.40%) |
Unrecognized tax benefits | 0.60% | 0.30% | (1.40%) |
Return to provision adjustments | (0.30%) | (4.90%) | (0.40%) |
Acquisition-related items | 0.00% | (15.90%) | 1.80% |
Book basis in excess of tax basis for goodwill impairment and disposition | 0.00% | 9.20% | 0.00% |
State tax rate adjustment | 0.00% | (2.80%) | 5.10% |
Cares Act net operating loss adjustment | 0.00% | (2.30%) | 0.00% |
Deferred tax and other rate adjustments | 0.00% | 1.10% | 0.20% |
Other | (0.90%) | 0.80% | 0.10% |
Effective income tax rate | 47.00% | 36.00% | 24.20% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 194 | $ 221 |
Employee benefit accruals | 173 | 155 |
Other deferred tax assets | 154 | 204 |
Total gross deferred income tax assets | 521 | 580 |
Less valuation allowance | (191) | (204) |
Total deferred income tax assets | 330 | 376 |
Deferred income tax liabilities: | ||
Amortization of goodwill and intangible assets | (3,743) | (3,945) |
Foreign currency translation adjustment | (320) | (95) |
Deferred contract costs | (196) | (173) |
Other deferred tax liabilities | (215) | (140) |
Total deferred income tax liabilities | (4,474) | (4,353) |
Net deferred income tax liability | $ (4,144) | $ (3,977) |
Income Taxes - Schedule of De_2
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities - Classification (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Noncurrent deferred income tax assets (included in Other noncurrent assets) | $ 49 | $ 40 |
Noncurrent deferred income tax liabilities | (4,193) | (4,017) |
Net deferred income tax liability | $ (4,144) | $ (3,977) |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination | |||
Income taxes receivable | $ 132 | $ 147 | |
Net operating loss carryforwards | 194 | 221 | |
Unrecognized tax benefits | 54 | 44 | $ 45 |
Unrecognized tax benefits that would impact tax rate | 47 | 38 | |
Tax benefits interest expense for unpaid taxes | 3 | 3 | $ 3 |
Unrecognized tax benefits interest and penalties accrued | 16 | 15 | |
Federal and State | |||
Income Tax Examination | |||
Net operating loss carryforwards | 69 | 90 | |
State | |||
Income Tax Examination | |||
Valuation allowance against net operating loss deferred tax assets | 41 | 48 | |
Foreign | |||
Income Tax Examination | |||
Foreign net operating loss carryforwards resulting in deferred tax assets | $ 125 | $ 131 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of gross amounts of unrecognized gross tax benefits | ||
Amount of unrecognized tax benefits, beginning balance | $ 44 | $ 45 |
Amount of decreases due to lapse of the applicable statute of limitations | (4) | (1) |
Amount of decreases due to settlements | (2) | (9) |
Increases as a result of tax positions taken in prior period | 11 | |
Increases as a result of tax positions taken in the current period | 6 | 9 |
Foreign currency translation | (1) | |
Amount of unrecognized tax benefits, ending balance | $ 54 | $ 44 |
Commitments and Contingencies -
Commitments and Contingencies - Narratives (Details) $ in Millions | Oct. 12, 2020USD ($) | Jan. 31, 2022USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)claimcustomer | Dec. 31, 2020USD ($) |
Loss Contingencies | |||||
Tax receivable agreement commitment (percent) | 85.00% | ||||
Tax receivable agreement commitment | $ 451 | $ 532 | |||
Subsequent Event | |||||
Loss Contingencies | |||||
Payments from the exercise of call options | $ 186 | ||||
Pending litigation | Secretariat of the Federal Revenue Bureau of Brazil | Potential tax liability | |||||
Loss Contingencies | |||||
Loss contingency, value of damages sought | $ 11 | ||||
Loss contingency, number of claims pending | claim | 14 | ||||
Loss contingency, number of additional claims filed | claim | 24 | ||||
Loss contingency, potential additional claims amount sought | $ 30 | ||||
Number of total pending and potential pending claims | claim | 38 | ||||
Pending litigation | Secretariat of the Federal Revenue Bureau of Brazil | Potential tax liability | Maximum | |||||
Loss Contingencies | |||||
Loss contingency, estimate of possible loss | $ 41 | ||||
Reliance Trust Claims | |||||
Loss Contingencies | |||||
Number of customers | customer | 1 | ||||
Reliance Trust Claims | Settled Litigation | |||||
Loss Contingencies | |||||
Litigation settlement, amount awarded to other party | $ 39.8 | ||||
Loss contingency accrual | $ 39.8 | ||||
Reliance | Pending litigation | |||||
Loss Contingencies | |||||
Loss contingency, value of damages sought | $ 127 |
Commitments and Contingencies_2
Commitments and Contingencies - Commitments Maturity Schedule (Details) - Tax Receivable Agreement $ in Millions | Dec. 31, 2020USD ($) |
Other Commitments | |
Total | $ 451 |
2022 | 185 |
2023 | 197 |
2024 and After | $ 69 |
Commitments and Contingencies_3
Commitments and Contingencies - Purchase Commitments Narrative (Details) - Computer data processing operations and related functions $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Other Commitments | |
Contractual obligation | $ 795 |
Minimum | |
Other Commitments | |
Purchase commitment term | 1 year |
Maximum | |
Other Commitments | |
Purchase commitment term | 5 years |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2021 | Jul. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation | |||||
Employer matching contribution, percent of match | 50.00% | ||||
Profit sharing expenses | $ 118 | $ 107 | $ 91 | ||
Employee contribution of pretax annual compensation | 40.00% | ||||
Employee matching contribution, percent of employees' gross pay | 6.00% | ||||
Accelerated stock compensation expense | $ 104 | ||||
Weighted average fair value of options granted (in dollars per share) | $ 29.01 | $ 21.17 | $ 19.25 | ||
Total unrecognized compensation cost related to non-vested stock awards | $ 181 | $ 304 | |||
Weighted average period over which compensation cost is expected to be recognized | 1 year 6 months | 1 year 2 months 12 days | |||
Selling, General and Administrative Expenses | |||||
Share-based Compensation | |||||
Compensation expense | $ 383 | $ 283 | $ 402 | ||
FIS Plan amended and restated | |||||
Share-based Compensation | |||||
Shares available for grant, ending (in shares) | 29,000,000 | ||||
Qualified Retirement Equity Program | |||||
Share-based Compensation | |||||
Accelerated stock compensation expense | $ 104 | $ 104 | |||
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% | ||||
Profit sharing expenses | $ 21 | 20 | 15 | ||
Vesting period | 3 years | ||||
Intrinsic value of options exercised | $ 107 | $ 348 | $ 189 | ||
Closing stock price (in dollars per share) | $ 109.15 | ||||
Granted (in shares) | 2,000,000 | 2,000,000 | 1,000,000 | ||
Granted (in dollars per share) | $ 142.92 | $ 120.47 | $ 113.48 | ||
Risk free interest rate | 0.60% | 0.40% | 2.20% | ||
Volatility | 27.60% | 24.70% | 20.10% | ||
Dividend yield | 1.10% | 1.20% | 1.20% | ||
Weighted average expected life | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days | ||
Stock Options | Worldpay | |||||
Share-based Compensation | |||||
Weighted average fair value of options granted (in dollars per share) | $ 71.05 | ||||
Risk free interest rate | 1.90% | ||||
Volatility | 18.60% | ||||
Dividend yield | 1.00% | ||||
Weighted average expected life | 3 years 10 months 24 days | ||||
Restricted Stock | |||||
Share-based Compensation | |||||
Vesting period | 3 years | ||||
Restricted stock, shares granted (in shares) | 2,000,000 | 1,000,000 | 2,000,000 | ||
Restricted stock weighted average grant price (in dollars per share) | $ 136.69 | ||||
Fair value of vested stock | $ 298 | $ 293 | $ 169 | ||
Restricted Stock | Minimum | |||||
Share-based Compensation | |||||
Restricted stock weighted average grant price (in dollars per share) | $ 136.69 | $ 127.14 | $ 124.72 | ||
Restricted Stock | FIS Plan amended and restated | Minimum | |||||
Share-based Compensation | |||||
Participant earning potential of target common stock | 0.00% | ||||
Restricted Stock | FIS Plan amended and restated | Maximum | |||||
Share-based Compensation | |||||
Participant earning potential of target common stock | 300.00% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 8 | ||
Granted (in shares) | 2 | 2 | 1 |
Exercised (in shares) | (2) | ||
Cancelled (in shares) | 0 | ||
Ending balance (in shares) | 8 | 8 | |
Options exercisable (shares) | 6 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning balance (in dollars per share) | $ 88.01 | ||
Granted (in dollars per share) | 142.92 | $ 120.47 | $ 113.48 |
Exercised (in dollars per share) | 72.67 | ||
Cancelled (in dollars per share) | 126.64 | ||
Ending balance (in dollars per share) | 99.32 | $ 88.01 | |
Options exercisable (in dollars per share) | $ 84.91 | ||
Weighted Average Remaining Contractual Term (Years) | 3 years 7 months 6 days | 3 years 9 months 18 days | |
Weighted average remaining contractual term, options exercisable | 2 years 7 months 6 days | ||
Aggregate intrinsic value | $ 143 | $ 464 | |
Aggregate intrinsic value, exercised | 107 | $ 348 | $ 189 |
Aggregate intrinsic value, options exercisable | $ 142 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Stock Option Valuation Assumptions (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average fair value of options | |||
Risk free interest rate | 0.60% | 0.40% | 2.20% |
Volatility | 27.60% | 24.70% | 20.10% |
Dividend yield | 1.10% | 1.20% | 1.20% |
Weighted average expected life (years) | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Restricted Stock Activity (Details) - Restricted Stock - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quantity | |||
Beginning balance outstanding (in shares) | 5 | ||
Granted (in shares) | 2 | 1 | 2 |
Vested (in shares) | (2) | ||
Forfeited (in shares) | 0 | ||
Ending balance outstanding (in shares) | 5 | 5 | |
Weighted Average Fair Value | |||
Beginning balance (in dollars per share) | $ 127.63 | ||
Granted (in dollars per share) | 136.69 | ||
Vested (in dollars per share) | 127.19 | ||
Forfeited (in dollars per share) | 126.34 | ||
Ending balance (in dollars per share) | $ 132.60 | $ 127.63 |
Related Party Transactions - Na
Related Party Transactions - Narratives (Details) - USD ($) $ in Millions | Apr. 29, 2021 | Dec. 31, 2020 |
Cardinal Holdings | ||
Related Party Transaction | ||
Ownership percentage | 36.00% | |
Equity method investments | $ 137 | |
Cardinal Holdings | Discontinued Operations, Disposed of by Sale | ||
Related Party Transaction | ||
Cash proceeds | $ 367 | |
Gain in other income (expense) | $ 225 |
Components of Other Comprehen_3
Components of Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | $ 49,313 | $ 49,456 | $ 10,222 |
Other comprehensive earnings (loss) before reclassifications | 185 | 88 | 395 |
Amounts reclassified from accumulated other comprehensive earnings | 10 | 2 | 2 |
Ending balance | 47,358 | 49,313 | 49,456 |
Accumulated other comprehensive earnings (loss) | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | 57 | (33) | (430) |
Ending balance | 252 | 57 | (33) |
Interest Rate Swap Contracts | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | (148) | (127) | 0 |
Other comprehensive earnings (loss) before reclassifications | 392 | (21) | (127) |
Amounts reclassified from accumulated other comprehensive earnings | 0 | 0 | 0 |
Ending balance | 244 | (148) | (127) |
Foreign Currency Translation Adjustments | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | 293 | 187 | (391) |
Other comprehensive earnings (loss) before reclassifications | (212) | 106 | 578 |
Amounts reclassified from accumulated other comprehensive earnings | 0 | 0 | 0 |
Ending balance | 81 | 293 | 187 |
Other | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | (88) | (93) | (39) |
Other comprehensive earnings (loss) before reclassifications | 5 | 3 | (56) |
Amounts reclassified from accumulated other comprehensive earnings | 10 | 2 | 2 |
Ending balance | $ (73) | $ (88) | $ (93) |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)country | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information | |||
Number of countries in which entity operates (more than) | country | 100 | ||
Asset impairments | $ 202 | $ 136 | $ 87 |
Data center consolidation costs | 43 | 88 | $ 70 |
Accelerated stock compensation expense | 104 | ||
Foreign Entities | |||
Segment Reporting Information | |||
Long-term assets, excluding goodwill and other intangible assets | 1,608 | 1,772 | |
COVID-19 Pandemic | |||
Segment Reporting Information | |||
Incremental charges | 44 | $ 71 | |
Platform Modernization | |||
Segment Reporting Information | |||
Modernization of Technology Platforms, Process Automation Costs | 139 | ||
Incremental charges | 183 | ||
Platform Modernization | Software and Deferred Contract Cost Assets | |||
Segment Reporting Information | |||
Asset impairments | $ 202 | ||
Merchant Solutions | Minimum | |||
Segment Reporting Information | |||
Number of countries in which entity operates (more than) | country | 100 | ||
Banking Solutions | Minimum | |||
Segment Reporting Information | |||
Number of countries in which entity operates (more than) | country | 100 | ||
Capital Market Solutions | Minimum | |||
Segment Reporting Information | |||
Number of countries in which entity operates (more than) | country | 100 |
Segment Information - Schedule
Segment Information - Schedule of Financial Information for the Company's Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information | |||
Revenue | $ 13,877 | $ 12,552 | $ 10,333 |
Depreciation and amortization (including purchase accounting amortization) | 4,015 | 3,714 | 2,444 |
Asset impairments | 202 | 136 | 87 |
Asset impairments | (202) | (136) | (87) |
Other income (expense), net | (52) | 48 | (219) |
Provision (benefit) for income taxes | (371) | (96) | (100) |
Equity method investment earnings (loss) | 6 | (6) | (10) |
Net earnings attributable to noncontrolling interest | 7 | 6 | 5 |
Net earnings attributable to FIS common stockholders | 417 | 158 | 298 |
Capital expenditures | 1,286 | 1,150 | 1,043 |
Capital lease obligations | 35 | 21 | 215 |
Merchant Solutions | |||
Segment Reporting Information | |||
Capital expenditures | 401 | 365 | 141 |
Banking Solutions | |||
Segment Reporting Information | |||
Capital expenditures | 442 | 498 | 612 |
Capital Market Solutions | |||
Segment Reporting Information | |||
Capital expenditures | 229 | 223 | 266 |
Corporate and Other | |||
Segment Reporting Information | |||
Capital expenditures | 214 | 64 | 24 |
Operating Segments | |||
Segment Reporting Information | |||
Revenue | 13,877 | 12,552 | 10,333 |
Operating expenses | (12,822) | (12,000) | (9,364) |
Depreciation and amortization (including purchase accounting amortization) | 4,015 | 3,714 | 2,444 |
Acquisition deferred revenue adjustment | 0 | ||
Acquisition, integration and other costs | 845 | 858 | 704 |
Asset impairments | 202 | 136 | 87 |
Adjusted EBITDA | 6,117 | 5,260 | 4,204 |
Acquisition, integration and other costs | (845) | (858) | (704) |
Asset impairments | (202) | (136) | (87) |
Operating Segments | Merchant Solutions | |||
Segment Reporting Information | |||
Revenue | 4,496 | 3,767 | 1,942 |
Operating expenses | (2,580) | (2,320) | (1,090) |
Depreciation and amortization (including purchase accounting amortization) | 346 | 305 | 115 |
Acquisition deferred revenue adjustment | 0 | ||
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Adjusted EBITDA | 2,262 | 1,752 | 967 |
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Operating Segments | Banking Solutions | |||
Segment Reporting Information | |||
Revenue | 6,396 | 5,944 | 5,592 |
Operating expenses | (4,105) | (3,901) | (3,679) |
Depreciation and amortization (including purchase accounting amortization) | 583 | 513 | 489 |
Acquisition deferred revenue adjustment | 0 | ||
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Adjusted EBITDA | 2,874 | 2,556 | 2,402 |
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Operating Segments | Capital Market Solutions | |||
Segment Reporting Information | |||
Revenue | 2,624 | 2,440 | 2,318 |
Operating expenses | (1,682) | (1,566) | (1,458) |
Depreciation and amortization (including purchase accounting amortization) | 329 | 273 | 213 |
Acquisition deferred revenue adjustment | 0 | ||
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Adjusted EBITDA | 1,271 | 1,147 | 1,073 |
Acquisition, integration and other costs | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Operating Segments | Corporate and Other | |||
Segment Reporting Information | |||
Revenue | 361 | 401 | 481 |
Operating expenses | (4,455) | (4,213) | (3,137) |
Depreciation and amortization (including purchase accounting amortization) | 2,757 | 2,623 | 1,627 |
Acquisition deferred revenue adjustment | 0 | ||
Acquisition, integration and other costs | 845 | 858 | 704 |
Asset impairments | 202 | 136 | 87 |
Adjusted EBITDA | (290) | (195) | (238) |
Acquisition, integration and other costs | (845) | (858) | (704) |
Asset impairments | (202) | (136) | (87) |
Segment reconciling items | |||
Segment Reporting Information | |||
Acquisition, integration and other costs | 845 | 858 | |
Asset impairments | 202 | 136 | 87 |
Adjusted EBITDA | 6,117 | 5,260 | 4,204 |
Depreciation and amortization | (1,251) | (964) | (809) |
Purchase accounting amortization | (2,764) | (2,750) | (1,635) |
Acquisition, integration and other costs | (845) | (858) | |
Asset impairments | (202) | (136) | (87) |
Interest expense, net | 214 | 334 | 337 |
Other income (expense), net | (52) | 48 | (219) |
Provision (benefit) for income taxes | $ (371) | $ (96) | $ (100) |