Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-38962 | |
Entity Registrant Name | FISERV, INC. | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1506125 | |
Entity Address, Address Line One | 255 Fiserv Drive | |
Entity Address, City or Town | Brookfield, | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53045 | |
City Area Code | 262 | |
Local Phone Number | 879-5000 | |
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 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 660,231,928 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000798354 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock, par value $0.01 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | FISV | |
Security Exchange Name | NASDAQ | |
0.375% Senior Notes due 2023 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.375% Senior Notes due 2023 | |
Trading Symbol | FISV23 | |
Security Exchange Name | NASDAQ | |
1.125% Senior Notes due 2027 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.125% Senior Notes due 2027 | |
Trading Symbol | FISV27 | |
Security Exchange Name | NASDAQ | |
1.625% Senior Notes due 2030 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.625% Senior Notes due 2030 | |
Trading Symbol | FISV30 | |
Security Exchange Name | NASDAQ | |
2.250% Senior Notes due 2025 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.250% Senior Notes due 2025 | |
Trading Symbol | FISV25 | |
Security Exchange Name | NASDAQ | |
3.000% Senior Notes due 2031 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.000% Senior Notes due 2031 | |
Trading Symbol | FISV31 | |
Security Exchange Name | NASDAQ |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Revenue | $ 4,163 | $ 3,786 | $ 11,969 | $ 11,020 | |
Selling, general and administrative | 1,476 | 1,412 | 4,289 | 4,193 | |
Gain on sale of businesses | 0 | (36) | 0 | (464) | |
Total expenses | 3,527 | 3,244 | 10,214 | 9,684 | |
Operating income | 636 | 542 | 1,755 | 1,336 | |
Interest expense, net | (172) | (174) | (523) | (535) | |
Other income | 14 | 13 | 36 | 34 | |
Income before income taxes and income from investments in unconsolidated affiliates | 478 | 381 | 1,268 | 835 | |
Income tax provision | (54) | (124) | (300) | (176) | |
Income from investments in unconsolidated affiliates | 22 | 19 | 80 | 3 | |
Net income | 446 | 276 | 1,048 | 662 | |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | 18 | 12 | 47 | 4 | |
Net income attributable to Fiserv, Inc. | $ 428 | $ 264 | $ 1,001 | $ 658 | |
Net income attributable to Fiserv, Inc. per share – basic (in dollars per share) | $ 0.65 | $ 0.39 | $ 1.51 | $ 0.98 | |
Net income attributable to Fiserv, Inc. per share – diluted (in dollars per share) | $ 0.64 | $ 0.39 | $ 1.49 | $ 0.96 | |
Shares used in computing net income attributable to Fiserv, Inc. per share: | |||||
Basic (in shares) | 661.4 | 669.8 | 664.6 | 672.6 | |
Diluted (in shares) | 669.7 | 680.3 | 674.1 | 684.1 | |
Processing and services | |||||
Revenue | [1] | $ 3,407 | $ 3,153 | $ 9,822 | $ 9,118 |
Cost of goods sold and services | 1,530 | 1,387 | 4,425 | 4,488 | |
Product | |||||
Revenue | 756 | 633 | 2,147 | 1,902 | |
Cost of goods sold and services | $ 521 | $ 481 | $ 1,500 | $ 1,467 | |
[1] | Includes processing and other fees charged to related party investments accounted for under the equity method of $46 million and $62 million for the three months ended September 30, 2021 and 2020, respectively, and $160 million and $174 million for the nine months ended September 30, 2021 and 2020, respectively (see Note 18). |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Fees | Equity investments | ||||
Processing, administrative, and other fees | $ 46 | $ 62 | $ 160 | $ 174 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income | $ 446 | $ 276 | $ 1,048 | $ 662 |
Other comprehensive income (loss): | ||||
Fair market value adjustment on cash flow hedges, net of income tax provision of $1 million, $2 million, $1 million and $0 million | 3 | 6 | 4 | 1 |
Unrealized gain on defined benefit pension plans, net of income tax provision of $0 million | 0 | 0 | 1 | 0 |
Foreign currency translation | (349) | (180) | (298) | (636) |
Total other comprehensive loss | (344) | (170) | (287) | (623) |
Comprehensive income | 102 | 106 | 761 | 39 |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | 18 | 12 | 47 | 4 |
Less: other comprehensive (loss) income attributable to noncontrolling interests | (18) | 17 | (25) | 28 |
Comprehensive income attributable to Fiserv, Inc. | 102 | 77 | 739 | 7 |
Cost of Services | ||||
Other comprehensive income (loss): | ||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | (2) | 0 | (6) | 0 |
Interest Expense | ||||
Other comprehensive income (loss): | ||||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | $ 4 | $ 4 | $ 12 | $ 12 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income tax provision on fair market value adjustment on cash flow hedges | $ 1 | $ 2 | $ 1 | $ 0 |
Income tax provision on unrealized gain on defined benefit plans | 0 | |||
Cost of Services | ||||
Income tax provision (benefit) on reclassification adjustment for net realized (gains) losses on cash flow hedges | (1) | 0 | (2) | 0 |
Interest Expense | ||||
Income tax provision (benefit) on reclassification adjustment for net realized (gains) losses on cash flow hedges | $ 2 | $ 1 | $ 4 | $ 4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 933 | $ 906 |
Trade accounts receivable, less allowance for doubtful accounts | 2,793 | 2,482 |
Prepaid expenses and other current assets | 1,455 | 1,310 |
Settlement assets | 13,244 | 11,521 |
Total current assets | 18,425 | 16,219 |
Property and equipment, net | 1,717 | 1,628 |
Intangible assets, net | 14,268 | 15,358 |
Goodwill | 36,303 | 36,322 |
Contract costs, net | 782 | 692 |
Investments in unconsolidated affiliates | 2,602 | 2,756 |
Other long-term assets | 1,670 | 1,644 |
Total assets | 75,767 | 74,619 |
Liabilities and Equity | ||
Accounts payable and accrued expenses | 3,340 | 3,186 |
Short-term and current maturities of long-term debt | 449 | 384 |
Contract liabilities | 529 | 546 |
Settlement obligations | 13,244 | 11,521 |
Total current liabilities | 17,562 | 15,637 |
Long-term debt | 20,540 | 20,300 |
Deferred income taxes | 4,113 | 4,389 |
Long-term contract liabilities | 204 | 187 |
Other long-term liabilities | 764 | 777 |
Total liabilities | 43,183 | 41,290 |
Commitments and Contingencies (see Note 17) | ||
Redeemable Noncontrolling Interests | 260 | 259 |
Fiserv, Inc. Shareholders’ Equity: | ||
Preferred stock, no par value: 25 million shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value: 1,800 million shares authorized; 784 million and 789 million shares issued, respectively | 8 | 8 |
Additional paid-in capital | 22,974 | 23,643 |
Accumulated other comprehensive loss | (649) | (387) |
Retained earnings | 14,442 | 13,441 |
Treasury stock, at cost, 124 million and 121 million shares | (5,179) | (4,375) |
Total Fiserv, Inc. shareholders’ equity | 31,596 | 32,330 |
Noncontrolling interests | 728 | 740 |
Total equity | 32,324 | 33,070 |
Total liabilities and equity | 75,767 | 74,619 |
Customer relationships, net | ||
Assets | ||
Intangible assets, net | 10,347 | 11,603 |
Other intangible assets, net | ||
Assets | ||
Intangible assets, net | $ 3,921 | $ 3,755 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Fiserv, Inc. Shareholders’ Equity: | ||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
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) | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued (in shares) | 784,000,000 | 789,000,000 |
Treasury stock (in shares) | 124,000,000 | 121,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,048 | $ 662 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and other amortization | 861 | 833 |
Amortization of acquisition-related intangible assets | 1,554 | 1,603 |
Amortization of financing costs and debt discounts | 41 | 36 |
Share-based compensation | 190 | 286 |
Deferred income taxes | (266) | (125) |
Gain on sale of businesses | 0 | (464) |
Income from investments in unconsolidated affiliates | (80) | (3) |
Distributions from unconsolidated affiliates | 17 | 12 |
Non-cash impairment charges | 6 | 44 |
Other operating activities | (26) | (4) |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||
Trade accounts receivable | (298) | 460 |
Prepaid expenses and other assets | (242) | (150) |
Contract costs | (210) | (229) |
Accounts payable and other liabilities | 97 | 34 |
Contract liabilities | (1) | (34) |
Net cash provided by operating activities | 2,691 | 2,961 |
Cash flows from investing activities: | ||
Capital expenditures, including capitalized software and other intangibles | (814) | (689) |
Proceeds from sale of businesses | 0 | 578 |
Payments for acquisition of businesses, net of cash acquired | (495) | (137) |
Distributions from unconsolidated affiliates | 91 | 94 |
Purchases of investments | (250) | 0 |
Proceeds from sale of investments | 503 | 0 |
Net cash used in investing activities | (965) | (154) |
Cash flows from financing activities: | ||
Debt proceeds | 5,177 | 8,125 |
Debt repayments | (6,515) | (9,307) |
Net proceeds from (repayments of) commercial paper and short-term borrowings | 1,388 | (28) |
Payments of debt financing costs | 0 | (16) |
Proceeds from issuance of treasury stock | 105 | 108 |
Purchases of treasury stock, including employee shares withheld for tax obligations | (1,768) | (1,612) |
Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (41) | (61) |
Payments of acquisition-related contingent consideration | (36) | 0 |
Other financing activities | (2) | 6 |
Net cash used in financing activities | (1,692) | (2,785) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11) | (4) |
Net change in cash, cash equivalents and restricted cash | 23 | 18 |
Cash, cash equivalents and restricted cash, beginning balance | 919 | 933 |
Cash, cash equivalents and restricted cash, ending balance | $ 942 | $ 951 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements for the three and nine months ended September 30, 2021 and 2020 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a controlling financial interest. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Control is normally established when ownership and voting interests in an entity are greater than 50%. Investments in which the Company has significant influence but not control are accounted for using the equity method of accounting, for which the Company’s share of net income or loss is reported within income from investments in unconsolidated affiliates and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income. Significant influence over an affiliate’s operations generally coincides with an ownership interest in an entity of between 20% and 50%. The Company maintains a majority controlling interest in certain entities, mostly related to consolidated merchant alliances (see Note 18). Noncontrolling interests represent the minority shareholders’ share of the net income or loss and equity in consolidated subsidiaries. The Company’s noncontrolling interests presented in the consolidated statements of income include net income attributable to noncontrolling interests and redeemable noncontrolling interests. Noncontrolling interests are presented as a component of equity in the consolidated balance sheets. Noncontrolling interests that are redeemable upon the occurrence of an event that is not solely within the Company’s control are presented outside of equity and are carried at their estimated redemption value if it exceeds the initial carrying value of the redeemable interest (see Note 9). Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S.”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Risks and Uncertainties Since early 2020, the world has been, and continues to be, impacted by the novel strain of the coronavirus (“COVID-19”) pandemic. The COVID-19 pandemic, and various measures imposed by the governments of many countries, states, cities and other geographic regions to prevent its spread, have negatively impacted global economic and market conditions, including levels of consumer and business spending. Consequently, the Company’s operating performance, primarily within its merchant acquiring and payment-related businesses, which earn transaction-based fees, has been adversely affected, and may continue to be adversely affected, by the economic impact of the COVID-19 pandemic. The Company has continued to assess the impact of the COVID-19 pandemic on its consolidated financial statements and has determined that there have been no material changes to the significant accounting policies, including estimates and assumptions made by management, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The Company will continue to monitor developments related to the COVID-19 pandemic; however, the extent to which the COVID-19 pandemic may impact the Company’s future operational and financial performance remains uncertain and cannot be predicted. Changing conditions may also affect the estimates and assumptions made by management and may result in an impairment or other charge that, if incurred, could have a material adverse impact on the Company’s results of operations, total assets and total equity in the period recognized. Events and changes in circumstances arising subsequent to September 30, 2021, including those resulting from the impacts of the COVID-19 pandemic, will be reflected in management’s estimates for future periods. Cash and Cash Equivalents Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost in the consolidated balance sheets, which approximates market value. Cash and cash equivalents that were restricted from use due to regulatory or other requirements are included in other long-term assets in the consolidated balance sheets and totaled $9 million and $13 million at September 30, 2021 and December 31, 2020, respectively. Allowance for Doubtful Accounts The Company analyzes the collectability of trade accounts receivable by considering historical bad debts, client creditworthiness, current economic trends, changes in client payment terms and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. The allowance for doubtful accounts was $50 million and $48 million at September 30, 2021 and December 31, 2020, respectively. Settlement Assets and Obligations Settlement assets and obligations result from timing differences between collection and fulfillment of payment transactions primarily associated with the Company’s merchant acquiring services. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners or directly from consumers. Settlement obligations represent amounts payable to merchants and payees. Certain merchant settlement assets that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership but has the right to use the assets to satisfy the related settlement obligations. The Company records settlement obligations for amounts payable to merchants and for outstanding payment instruments issued to payees that have not yet been presented for settlement. Allowance for Merchant Credit Losses With respect to the Company’s merchant acquiring business, the Company’s merchant customers have the legal obligation to refund any charges properly reversed by the cardholder. However, in the event the Company is not able to collect the refunded amounts from the merchants, the Company may be liable for the reversed charges. The Company’s risk in this area primarily relates to situations where the cardholder has purchased goods or services to be delivered in the future. The Company requires cash deposits, guarantees, letters of credit or other types of collateral from certain merchants to minimize this obligation. Collateral held by the Company is classified within settlement assets and the obligation to repay the collateral is classified within settlement obligations in the consolidated balance sheets. The Company also utilizes a number of systems and procedures to manage merchant credit risk. Despite these efforts, the Company experiences some level of losses due to merchant defaults. The aggregate merchant credit loss expense, recognized by the Company within cost of processing and services in the consolidated statements of income, was not significant for the three months ended September 30, 2021. The Company recognized aggregate merchant credit loss expense of $35 million for the three months ended September 30, 2020. The Company recognized aggregate merchant credit loss expense of $31 million and $89 million for the nine months ended September 30, 2021 and 2020, respectively. The amount of collateral held by the Company was $2.6 billion and $1.2 billion at September 30, 2021 and December 31, 2020, respectively. The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of collateral held. The allowance includes estimated losses from anticipated chargebacks and fraud events that have been incurred on merchants’ payment transactions that have been processed but not yet reported to the Company, which is recorded within accounts payable and accrued expenses in the consolidated balance sheets, as well as estimated losses on refunded amounts to cardholders that have not yet been collected from the merchants, which is recorded within prepaid expenses and other current assets in the consolidated balance sheets. The allowance is based primarily on the Company’s historical experience of credit losses and other relevant factors such as changes in economic conditions or increases in merchant fraud. The aggregate merchant credit loss allowance was $45 million and $59 million at September 30, 2021 and December 31, 2020, respectively. Goodwill Goodwill represents the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis, or more frequently if circumstances indicate possible impairment. Goodwill is tested for impairment at a reporting unit level, which is one level below the Company’s reportable segments. The Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2020 determined that its goodwill was not impaired as the estimated fair values exceeded the carrying values. However, it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic on certain of the Company’s businesses acquired and recorded at fair value through the acquisition of First Data Corporation (“First Data”) in July 2019, s uch as an increased duration and intensity of the pandemic and/or government-imposed shutdowns, prolonged economic downturn or recession, or lack of governmental support for recovery, could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment. There is no accumulated goodwill impairment for the Company through September 30, 2021. Other Investments The Company maintains investments in various equity securities without a readily determinable fair value. Such investments totaled $95 million and $160 million at September 30, 2021 and December 31, 2020, respectively, and are included within other long-term assets in the consolidated balance sheets. The Company reviews these investments each reporting period to determine whether an impairment or observable price change for the investment has occurred. To the extent such events or changes occur, the Company evaluates the fair value compared to its cost basis in the investment. Gains or losses from a sale of these investments or a change in fair value are included within other income in the consolidated statements of income for the period. During the nine months ended September 30, 2021, the Company remeasured its equity interest in Ondot Systems, Inc. (“Ondot”) to fair value upon acquiring a remaining ownership interest in January 2021, resulting in the recognition of a pre-tax gain of $12 million (see Note 4). Other adjustments made to the values recorded for certain equity securities and gains and losses from sales of equity securities during the three and nine months ended September 30, 2021 and 2020, were not significant. Interest Expense, Net Interest expense, net consists of interest expense primarily associated with the Company’s outstanding borrowings and finance lease obligations, as well as interest income primarily associated with the Company’s investment securities. Interest expense, net consisted of the following: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Interest expense $ 173 $ 176 $ 526 $ 541 Interest income 1 2 3 6 Interest expense, net $ 172 $ 174 $ 523 $ 535 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”), which clarifies certain interactions between the guidance to account for certain equity securities, investments under the equity method of accounting, and forward contracts or purchased options to purchase securities under Topic 321, Topic 323 and Topic 815. For public entities, ASU 2020-01 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2020-01 effective January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which introduces a number of amendments that are designed to simplify the application of accounting for income taxes. Such amendments include removing certain exceptions for intraperiod tax allocation, interim reporting when a year-to-date loss exceeds the anticipated loss, reflecting the effect of an enacted change in tax laws or rates in the annual effective tax rate and recognition of deferred taxes related to outside basis differences for ownership changes in investments. ASU 2019-12 also provides clarification related to when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. In addition, ASU 2019-12 provides guidance on the recognition of a franchise tax (or similar tax) that is partially based on income as an income-based tax and accounting for any incremental amount incurred as a non-income-based tax. For public entities, ASU 2019-12 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 effective January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13” or “CECL”), which prescribes an impairment model for most financial instruments based on expected losses rather than incurred losses. Under this model, an estimate of expected credit losses over the contractual life of the instrument is to be recorded as of the end of a reporting period as an allowance to offset the amortized cost basis, resulting in a net presentation of the amount expected to be collected on the financial instrument. For public entities, ASU 2016-13 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. For most instruments, entities must apply the standard using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company adopted ASU 2016-13 effective January 1, 2020 using the required modified retrospective approach, which resulted in a cumulative-effect decrease to beginning retained earnings of $45 million. Financial assets and liabilities held by the Company subject to the “expected credit loss” model prescribed by CECL include trade and other receivables, net investments in leases, settlement assets and other credit exposures such as financial guarantees not accounted for as insurance. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company generates revenue from the delivery of processing, service and product solutions. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time. Disaggregation of Revenue The Company’s operations are comprised of the Merchant Acceptance (“Acceptance”) segment, the Financial Technology (“Fintech”) segment and the Payments and Network (“Payments”) segment. Additional information regarding the Company’s business segments is included in Note 19. The tables below present the Company’s revenue disaggregated by type of revenue, including a reconciliation with its reportable segments. The majority of the Company’s revenue is earned domestically, with revenue generated outside the U.S. comprising approximately 14% of total revenue for each of the three months ended September 30, 2021 and 2020, and 14% and 13% of total revenue for the nine months ended September 30, 2021 and 2020, respectively. (In millions) Reportable Segments Three Months Ended September 30, 2021 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 1,446 $ 389 $ 1,132 $ 4 $ 2,971 Hardware, print and card production 232 10 236 — 478 Professional services 12 124 66 — 202 Software maintenance — 139 2 — 141 License and termination fees 12 45 16 — 73 Output solutions postage — — — 209 209 Other 14 54 19 2 89 Total Revenue $ 1,716 $ 761 $ 1,471 $ 215 $ 4,163 (In millions) Reportable Segments Three Months Ended September 30, 2020 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 1,245 $ 364 $ 1,112 $ 9 $ 2,730 Hardware, print and card production 179 12 176 — 367 Professional services 9 120 59 — 188 Software maintenance — 141 1 — 142 License and termination fees 7 41 21 — 69 Output solutions postage — — — 207 207 Other 14 49 18 2 83 Total Revenue $ 1,454 $ 727 $ 1,387 $ 218 $ 3,786 (In millions) Reportable Segments Nine Months Ended September 30, 2021 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 4,044 $ 1,152 $ 3,331 $ 26 $ 8,553 Hardware, print and card production 636 33 667 — 1,336 Professional services 30 350 195 — 575 Software maintenance — 417 6 — 423 License and termination fees 33 133 43 — 209 Output solutions postage — — — 616 616 Other 36 166 55 — 257 Total Revenue $ 4,779 $ 2,251 $ 4,297 $ 642 $ 11,969 (In millions) Reportable Segments Nine Months Ended September 30, 2020 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 3,466 $ 1,064 $ 3,265 $ 47 $ 7,842 Hardware, print and card production 531 33 528 — 1,092 Professional services 20 347 174 1 542 Software maintenance — 423 2 2 427 License and termination fees 19 139 61 — 219 Output solutions postage — — — 640 640 Other 42 153 63 — 258 Total Revenue $ 4,078 $ 2,159 $ 4,093 $ 690 $ 11,020 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers: (In millions) September 30, 2021 December 31, 2020 Contract assets $ 531 $ 433 Contract liabilities 733 733 Contract assets, reported within other long-term assets in the consolidated balance sheets, primarily result from revenue being recognized where payment is contingent upon the transfer of services to a customer over the contractual period. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue) for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $469 million of revenue during the nine months ended September 30, 2021 that was included in the contract liability balance at the beginning of the period. Transaction Price Allocated to Remaining Performance Obligations The following table includes estimated processing, services and product revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at September 30, 2021: (In millions) Year Ending December 31, Remainder of 2021 $ 550 2022 1,997 2023 1,675 2024 1,288 Thereafter 2,216 The Company applies the optional exemption under Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”) and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. These multi-year contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional exemptions under ASC 606 and does not disclose information for variable consideration that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisition of Pineapple Payments On May 4, 2021, the Company acquired Pineapple Payments Holdings, LLC (“Pineapple Payments”), an independent sales organization that provides payment processing, proprietary technology, and payment acceptance solutions for merchants, for approximately $207 million, net of $6 million of acquired cash, and including earn-out provisions estimated at a fair value of $30 million (see Note 6). Pineapple Payments is included within the Acceptance segment, and expands the reach of the Company’s payment solutions through its technology- and relationship-led distribution channels. During the three months ended September 30, 2021, the Company identified and recorded measurement period adjustments to the preliminary Pineapple Payments purchase price allocation, which were the result of additional analysis performed and information identified based on facts and circumstances that existed as of the acquisition date. These measurement period adjustments resulted in a decrease to goodwill of $42 million. The offsetting amounts to the change in goodwill were related to an increase in identifiable intangible assets, including customer relationships and residual buyout intangible assets, of $46 million and a decrease in other net assets of $4 million. The Company recorded measurement period adjustments to the identifiable intangible assets as a result of additional refinements to valuations, including estimated future cash flows. Such measurement period adjustments did not have a material impact on the Company’s consolidated statements of income. The updated preliminary purchase price allocation resulted in the recognition of identifiable intangible assets of $127 million, goodwill of $82 million and other net assets of $4 million. The allocation of the purchase price is preliminary and is subject to further adjustment, pending additional refinement and final completion of valuations. Goodwill, of which $59 million is expected to be deductible for tax purposes, is primarily attributed to the anticipated value created by the accelerated delivery of new and innovative capabilities to merchant clients. The preliminary amounts allocated to identifiable intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 90 17 years Residual buyouts 20 8 years Acquired software and technology 6 7 years Non-compete agreements and other 11 5 years Total $ 127 14 years The results of operations for Pineapple Payments are included in the consolidated results of the Company from the date of acquisition. Pro forma information for this acquisition is not provided because it did not have a material effect on the Company’s consolidated results of operations. Acquisition of Ondot On January 22, 2021, the Company acquired a remaining ownership interest in Ondot, a digital experience platform provider for financial institutions, for approximately $271 million, net of $13 million of acquired cash. The Company previously held a noncontrolling equity interest in Ondot, which was accounted for at cost. The remeasurement of the Company’s previously held equity interest to its acquisition-date fair value resulted in the recognition of a pre-tax gain of $12 million included within other income in the consolidated statements of income during the nine months ended September 30, 2021. Ondot is included within the Payments segment and further expands the Company’s digital capabilities, enhancing its suite of integrated payments, banking and merchant solutions. During the nine months ended September 30, 2021, the Company identified and recorded measurement period adjustments to the preliminary Ondot purchase price allocation, which were the result of additional analysis performed and information identified based on facts and circumstances that existed as of the acquisition date. These measurement period adjustments resulted in a decrease to goodwill of $37 million. The offsetting amounts to the change in goodwill were related to an increase in acquired software and technology of $30 million, customer relationships of $15 million and deferred income tax liabilities of $8 million. The Company recorded measurement period adjustments to the intangible assets as a result of additional refinements to valuations, including estimated future cash flows. Such measurement period adjustments did not have a material impact on the Company’s consolidated statements of income. The allocation of purchase price recorded for Ondot was finalized in the third quarter of 2021 as follows: (In millions) Cash and cash equivalents $ 13 Receivables and other assets 9 Intangible assets 142 Goodwill 173 Payables and other liabilities (31) Total consideration $ 306 Less: Fair value of previously held equity interest (22) Total purchase price $ 284 Goodwill, not deductible for tax purposes, is primarily attributed to the anticipated value created by the combined scale of integrated digital solutions to consumers, merchants, acquirers, networks and card issuers. The amounts allocated to identifiable intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 90 6 years Customer relationships 35 6 years Non-compete agreements and other 17 4 years Total $ 142 6 years The results of operations for Ondot are included in the consolidated results of the Company from the date of acquisition. Pro forma information for this acquisition is not provided because it did not have a material effect on the Company’s consolidated results of operations. Other Acquisitions On June 14, 2021, the Company acquired Spend Labs Inc. (“SpendLabs”), a mobile-native, cloud-based software provider of commercial card payment solutions. SpendLabs is included within the Payments segment and further expands the Company’s digital capabilities across mobile and desktop devices for small and mid-sized businesses. On March 1, 2021, the Company acquired Radius8, Inc. (“Radius8”), a provider of a platform that uses consumer location and other information to drive incremental merchant transactions. Radius8 is included within the Acceptance segment and enhances the Company’s ability to help merchants increase sales, expand mobile application registration and improve one-to-one target marketing. The Company acquired these businesses for an aggregate purchase price of $46 million. The allocation of purchase price for these acquisitions resulted in the recognition of identifiable intangible assets, consisting primarily of acquired software and technology, of $19 million and goodwill of $28 million. The allocation of the purchase price for the SpendLabs acquisition is preliminary and is subject to further adjustment, pending additional refinement and final completion of valuations. The purchase price allocation for the Radius8 acquisition was finalized in the third quarter of 2021. Measurement period adjustments did not have a material impact on the consolidated statements of income. Goodwill, not expected to be deductible for tax purposes, is primarily attributed to the anticipated value created by advancing digital capabilities to the Company’s clients and the customers they serve. The results of operations for these acquired businesses are included in the consolidated results of the Company from the respective dates of acquisition. Pro forma information for these acquisitions is not provided because they did not have a material effect on the Company’s consolidated results of operations. On March 2, 2020, the Company acquired MerchantPro Express LLC (“MerchantPro”), an independent sales organization that provides processing services, point-of-sale equipment and merchant cash advances to businesses across the U.S. MerchantPro is included within the Acceptance segment and further expands the Company’s merchant services business. On March 18, 2020, the Company acquired Bypass Mobile, LLC (“Bypass”), an independent software vendor and innovator in enterprise point-of-sale systems for sports and entertainment venues, food service management providers and national restaurant chains. Bypass is included within the Acceptance segment and further enhances the Company’s ability to help businesses deliver seamless physical and digital customer experiences. On May 11, 2020, the Company acquired Inlet, LLC (“Inlet”), a provider of secure digital delivery solutions for enterprise and middle-market biller invoices and statements. Inlet is included within the Payments segment and further enhances the Company’s digital bill payment strategy. The Company acquired these businesses for an aggregate purchase price of $167 million, net of $2 million of acquired cash, and including earn-out provisions estimated at a fair value of $45 million (see Note 6). The purchase price allocations for these acquisitions resulted in the recognition of identifiable intangible assets totaling $81 million, goodwill of $90 million, and net assumed liabilities of $4 million. The purchase price allocation for the MerchantPro acquisition was finalized in the third quarter of 2020, and for the Bypass and Inlet acquisitions in the fourth quarter of 2020. Measurement period adjustments did not have a material impact on the consolidated statements of income. The goodwill recognized from these transactions, of which $36 million is deductible for tax purposes, is primarily attributed to synergies and the anticipated value created by selling the Company’s products and services to the acquired businesses’ existing client base. The amounts allocated to identifiable intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 32 14 years Residual buyouts 35 9 years Acquired software and technology 14 8 years Total $ 81 11 years The results of operations for these acquired businesses have been included in the consolidated results of the Company from the respective dates of acquisition. Pro forma information for these acquisitions is not provided because they did not have a material effect on the Company’s consolidated results of operations. On October 18, 2021, the Company entered into a definitive agreement to acquire BentoBox CMS, Inc. (“BentoBox”), a digital marketing and commerce platform that helps restaurants connect with their guests and that will expand the Company’s Clover ® dining solutions and commerce and business management capabilities. The Company expects the acquisition to close in the fourth quarter of 2021, subject to customary approvals and closing conditions. Upon closing of the acquisition, BentoBox will be included within the Acceptance segment. Dispositions Effective July 1, 2020, the Company and Bank of America (“BANA”) dissolved the Banc of America Merchant Services joint venture (“BAMS” or the “joint venture”), of which the Company maintained a 51% controlling ownership interest. Upon dissolution of the joint venture’s operations, the joint venture transferred a proportionate share of value, primarily the client contracts, to each party via an agreed upon contractual separation. The remaining activities of the joint venture consist of supporting the transition of the business to each party and an orderly wind down of remaining BAMS assets and liabilities. Pursuant to the separation agreement, the joint venture retains the responsibility for certain contingencies that may arise from pre-dissolution activities, including certain legal claims and contingencies. The Company may be obligated to fund a proportionate share of any such losses as incurred. The transfer of value to BANA was accounted for at fair value as a non pro rata distribution of nonmonetary assets, resulting in the recognition of a pre-tax gain of $36 million, with a related tax expense of $13 million. The pre-tax gain included the revaluation of client contracts allocated to BANA to a fair value of $700 million, as well as an estimated $24 million for certain additional consideration due from the Company to BANA in connection with the dissolution. The pre-tax net gain was recorded within gain on sale of businesses and the tax expense was recorded within the income tax provision in the consolidated statements of income. Noncontrolling interests of the Company were reduced by $726 million and the Company’s additional paid-in capital was reduced by $36 million to account for the wind down of the joint venture and the transfer of a proportionate share of the joint venture’s fair value to BANA (see Note 10). The transfer of value to the Company was accounted for at carryover basis as the Company maintains control of such assets. The business transferred to the Company continues to be operated and managed within the Company’s Acceptance segment. The fair value of the client contracts upon dissolution of the joint venture was determined using the Multi-Period Excess Earnings Method, a form of the income approach. The determination of the fair value required estimates about discount rates, growth and attrition rates, future expected cash flows and other future events that were judgmental in nature. The fair value measurements were primarily based on significant inputs that were not observable in the market and thus represented a Level 3 measurement of the fair value hierarchy as defined in ASC 820, Fair Value Measurements . The significant assumptions used included the estimated annual net cash flows (including appropriate revenue and profit attributable to the asset, retention rate, applicable tax rate, and contributory asset charges, among other factors), the discount rate, reflecting the risks inherent in the future cash flow stream, an assessment of the asset’s life cycle, and the tax amortization benefit, among other factors. The Company continues to provide merchant processing and related services to former BAMS clients allocated to BANA, at BAMS pricing, through June 2023. The Company also provides processing and other support services to new BANA merchant clients pursuant to a five-year non-exclusive agreement which, after June 2023, will also apply to the former BAMS clients allocated to BANA. In addition, both the Company and BANA are entitled to certain transition services, at fair value, from each other through June 2023. On February 18, 2020, the Company sold a 60% controlling interest of its Investment Services business, subsequently renamed as Tegra118, LLC (“Tegra118”). The Company received pre-tax proceeds of $578 million, net of related expenses, resulting in a pre-tax gain on the sale of $428 million, with the related tax expense of $112 million recorded through the income tax provision, in the consolidated statements of income for the nine months ended September 30, 2020. The pre-tax gain included $176 million related to the remeasurement of the Company’s 40% retained interest based upon the enterprise value of the business. The revenues, expenses and cash flows of the Investment Services business were consolidated into the Company’s financial results through the date of the sale transaction, and are reported within Corporate and Other (see Note 19). In conjunction with the sale transaction, the Company also entered into transition services agreements to provide, at fair value, various administration, business process outsourcing, technical and data center related services for defined periods to Tegra118. On February 2, 2021, Tegra118 completed a merger with a third party, resulting in a dilution of the Company’s ownership interest in the combined new entity, Wealthtech Holdings, LLC, which was subsequently renamed as InvestCloud Holdings, LLC (“InvestCloud”). In connection with the transaction, the Company made an additional capital contribution of $200 million into the combined entity and recognized a pre-tax gain of $28 million within income from investments in unconsolidated affiliates in the consolidated statements of income, with related tax expense of $6 million recorded through the income tax provision, during the nine months ended September 30, 2021. On June 30, 2021, the Company sold its entire ownership interest in InvestCloud for $466 million, resulting in a pre-tax gain of $33 million recorded within income from investments in unconsolidated affiliates in the consolidated statements of income, with related tax expense of $8 million recorded through the income tax provision, during the nine months ended September 30, 2021. The Company will continue to provide various technical and data center related services under the terms of a pre-existing transition services agreement with InvestCloud, as described above. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Identifiable intangible assets consisted of the following: (In millions) Gross Accumulated Net Book September 30, 2021 Customer relationships $ 15,059 $ 4,712 $ 10,347 Acquired software and technology 2,380 827 1,553 Trade names 614 213 401 Purchased software 1,132 443 689 Capitalized software and other intangibles 1,812 534 1,278 Total $ 20,997 $ 6,729 $ 14,268 (In millions) Gross Accumulated Net Book December 31, 2020 Customer relationships $ 15,271 $ 3,668 $ 11,603 Acquired software and technology 2,562 879 1,683 Trade names 618 172 446 Purchased software 913 207 706 Capitalized software and other intangibles 1,332 412 920 Total $ 20,696 $ 5,338 $ 15,358 Amortization expense associated with the above identifiable intangible assets was as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Amortization expense $ 642 $ 623 $ 1,937 $ 1,934 Amortization expense during the three and nine months ended September 30, 2020 included $18 million and $53 million, respectively, of accelerated amortization associated with the termination of certain vendor contracts (see Note 13). |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of cash equivalents, trade accounts receivable, settlement assets and obligations, accounts payable, and client deposits approximate their respective carrying values due to the short period of time to maturity. The Company’s derivative instruments are measured on a recurring basis based on foreign currency spot rates and forwards quoted by banks and foreign currency dealers and are marked to market each period (see Note 11). Contingent consideration related to certain of the Company’s acquisitions (see Note 4) is estimated based on the present value of a probability-weighted assessment approach derived from the likelihood of achieving the earn-out criteria. The fair value of the Company’s contingent liability for current expected credit losses associated with its debt guarantees, as further described below, is estimated based on assumptions of future risk of default and the corresponding level of credit losses at the time of default. Assets and liabilities measured at fair value on a recurring basis consisted of the following: Fair Value (In millions) Classification Fair Value Hierarchy September 30, December 31, Assets Cash flow hedges Prepaid expenses and other current assets Level 2 $ 6 $ 9 Liabilities Contingent consideration Accounts payable and accrued expenses Level 3 — 46 Contingent consideration Other long-term liabilities Level 3 30 — Contingent debt guarantee Other long-term liabilities Level 3 5 8 The Company’s senior notes are recorded at amortized cost but measured at fair value for disclosure purposes. The estimated fair value of senior notes was based on matrix pricing which considers readily observable inputs of comparable securities (Level 2 of the fair value hierarchy). The carrying value of the Company’s foreign lines of credit, debt associated with the receivables securitization agreement, term loan credit agreement, commercial paper notes and revolving credit facility borrowings approximates fair value as these instruments have variable interest rates and the Company has not experienced any change to its credit ratings (Level 2 of the fair value hierarchy). The estimated fair value of total debt, excluding finance leases and other financing obligations, was $21.7 billion and $22.5 billion at September 30, 2021 and December 31, 2020, respectively, and the carrying value was $20.1 billion and $19.9 billion at September 30, 2021 and December 31, 2020, respectively. The Company maintains noncontrolling ownership interests in defi SOLUTIONS Group, LLC and Sagent M&C, LLC, respectively, which are accounted for using the equity method of accounting. These joint ventures maintain variable-rate term loan facilities with aggregate outstanding borrowings of $370 million in senior unsecured debt at September 30, 2021 and variable-rate revolving credit facilities with an aggregate borrowing capacity of $45 million with a syndicate of banks, which mature in March 2023. Outstanding borrowings on the revolving credit facilities at September 30, 2021 were $13 million. The Company has guaranteed this debt and does not anticipate that the respective joint ventures will fail to fulfill their debt obligations. The Company maintains a liability for its non-contingent obligations to perform over the term of the guarantees, which is reported within accounts payable and accrued expenses and other long-term liabilities in the consolidated balance sheets. The non-contingent component of the Company’s debt guarantee arrangements is recorded at amortized cost but measured at fair value for disclosure purposes. The carrying value of the Company’s non-contingent liability of $12 million and $18 million approximates the fair value at September 30, 2021 and December 31, 2020, respectively (Level 3 of the fair value hierarchy). Such guarantees will be amortized in future periods over the contractual term. In addition, the Company maintains a contingent liability ($5 million and $8 million at September 30, 2021 and December 31, 2020, respectively, as reported within other long-term liabilities in the consolidated balance sheets), representing the current expected credit losses to which the Company is exposed. This contingent liability is estimated based on certain financial metrics of the respective joint ventures and historical industry data, which is used to develop assumptions of the likelihood the guaranteed parties will default and the level of credit losses in the event a default occurs (Level 3 of the fair value hierarchy). The Company recognized $3 million and $4 million during the three months ended September 30, 2021 and 2020, respectively, and recognized $9 million and $10 million during the nine months ended September 30, 2021 and 2020, respectively, within other income in its consolidated statements of income related to its release from risk under the non-contingent guarantees as well as a change in the provision of estimated credit losses associated with the indebtedness of the joint ventures. The Company has not made any payments under the guarantees, nor has it been called upon to do so. In addition, certain of the Company’s non-financial assets are measured at fair value on a non-recurring basis, including property and equipment, lease right-of-use (“ROU”) assets, equity securities without a readily determinable fair value, goodwill |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: (In millions) September 30, 2021 December 31, 2020 Trade accounts payable $ 496 $ 437 Client deposits 755 702 Accrued compensation and benefits 409 419 Accrued taxes 205 130 Accrued interest 172 220 Other accrued expenses 1,303 1,278 Total $ 3,340 $ 3,186 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt consisted of the following: (In millions) September 30, 2021 December 31, 2020 Short-term and current maturities of long-term debt: Foreign lines of credit $ 155 $ 144 Finance lease and other financing obligations 294 240 Total short-term and current maturities of long-term debt $ 449 $ 384 Long-term debt: 4.750% senior notes due June 2021 $ — $ 400 3.500% senior notes due October 2022 700 700 0.375% senior notes due July 2023 (Euro-denominated) 579 612 3.800% senior notes due October 2023 1,000 1,000 2.750% senior notes due July 2024 2,000 2,000 3.850% senior notes due June 2025 900 900 2.250% senior notes due July 2025 (British Pound-denominated) 707 709 3.200% senior notes due July 2026 2,000 2,000 2.250% senior notes due June 2027 1,000 1,000 1.125% senior notes due July 2027 (Euro-denominated) 579 612 4.200% senior notes due October 2028 1,000 1,000 3.500% senior notes due July 2029 3,000 3,000 2.650% senior notes due June 2030 1,000 1,000 1.625% senior notes due July 2030 (Euro-denominated) 579 612 3.000% senior notes due July 2031 (British Pound-denominated) 707 709 4.400% senior notes due July 2049 2,000 2,000 Receivable securitized loan 500 425 Term loan facility 355 1,250 Unamortized discount and deferred financing costs (131) (155) U.S. commercial paper notes 1,377 — Revolving credit facility 107 22 Finance lease and other financing obligations 581 504 Total long-term debt $ 20,540 $ 20,300 The Company was in compliance with all financial debt covenants during the first nine months of 2021. The Company maintains an amended and restated revolving credit facility, which matures in September 2023, with aggregate commitments available for $3.5 billion of total capacity. At September 30, 2021, the receivable securitized loan due in July 2022 was classified in the consolidated balance sheet as long-term, as the Company has the intent to refinance this debt on a long-term basis and the ability to do so under its revolving credit facility. In May 2021, the Company initiated a U.S. unsecured commercial paper notes program, the proceeds of which are to be used for general corporate purposes. The Company may issue, from time to time, commercial paper notes with maturities of up to 397 days from the date of issuance. Outstanding borrowings under the program were $1.4 billion at September 30, 2021, with a weighted average interest rate of 0.189%. The Company intends to maintain available capacity under its revolving credit facility in an amount at least equal to the outstanding borrowings under its commercial paper notes program. Outstanding borrowings under the commercial paper notes program are classified in the consolidated balance sheet as long-term, as the Company has the intent to refinance these notes on a long-term basis through the continued issuance of new commercial paper notes upon maturity, and the Company also has the ability to refinance such notes under its revolving credit facility. During the nine months ended September 30, 2021, the Company used the net proceeds from the issuance of commercial paper notes to repay borrowings outstanding under its amended and restated revolving credit facility as of the issuance date, to repay the 4.750% senior notes that matured in June 2021, and to pay down outstanding borrowings on its term loan facility. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests The minority partners in two of the Company’s merchant alliance joint ventures maintain redeemable noncontrolling interests which are presented outside of equity and carried at their estimated redemption values. Each minority partner owns 1% of the equity in the respective joint venture; in addition, each minority partner is entitled to a contractually determined share of the respective entity’s income. The agreements contain redemption features whereby interests held by the minority partner are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within the Company’s control. The joint ventures may be terminated by either party for convenience any time after September 1, 2021 and December 31, 2024, respectively. In the event of termination for cause, as a result of a change in control, or for convenience after the predetermined date, the Company may be required to purchase the minority partner membership interests at a price equal to the fair market value of the minority interest through a distribution in the form of cash, certain merchant contracts of the joint venture, or a combination thereof to the minority partner. In conjunction with the termination of the joint venture, the minority partner may also exercise an option to purchase certain additional merchant contracts at fair market value. In September 2021, the Company and a joint venture minority partner mutually agreed to terminate one of the Company’s merchant alliance joint ventures effective March 2022. The parties have commenced separation negotiations pursuant to the terms of the joint venture agreement. At September 30, 2021, redeemable noncontrolling interests had a total estimated redemption value of $260 million. The following table presents a summary of the redeemable noncontrolling interests activity during the nine months ended September 30: (In millions) 2021 2020 Balance at beginning of period $ 259 $ 262 Distributions paid to redeemable noncontrolling interests (32) (31) Share of income 33 29 Balance at end of period $ 260 $ 260 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity The following tables provide changes in equity during the three and nine months ended September 30, 2021 and 2020: Fiserv, Inc. Shareholders’ Equity Three Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Noncontrolling Interests Total Equity Balance at June 30, 2021 784 123 $ 8 $ 22,960 $ (323) $ 14,014 $ (4,866) $ 739 $ 32,532 Net income (1) 428 7 435 Distributions paid to noncontrolling interests (2) — — Other comprehensive loss (326) (18) (344) Share-based compensation 63 63 Shares issued under stock plans (2) (49) 52 3 Purchases of treasury stock 3 (365) (365) Balance at September 30, 2021 784 124 $ 8 $ 22,974 $ (649) $ 14,442 $ (5,179) $ 728 $ 32,324 (1) The total net income presented in equity for the three months ended September 30, 2021 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $11 million not included in equity. (2) The total distributions presented in equity for the three months ended September 30, 2021 excludes $12 million in distributions paid to redeemable noncontrolling interests and $8 million in distributions to BANA related to the BAMS dissolution (see Note 4) not included in equity. Fiserv, Inc. Shareholders’ Equity Three Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Total Equity Noncontrolling Interests Balance at June 30, 2020 791 122 $ 8 $ 23,771 $ (644) $ 12,877 $ (4,429) $ 1,445 $ 33,028 Net income (1) 264 1 265 Net adjustment to noncontrolling interests from dissolution (see Note 4) (36) (726) (762) Other comprehensive income (loss) (187) 17 (170) Share-based compensation 84 84 Shares issued under stock plans (1) (48) 32 (16) Balance at September 30, 2020 791 121 $ 8 $ 23,771 $ (831) $ 13,141 $ (4,397) $ 737 $ 32,429 (1) The total net income presented in equity for the three months ended September 30, 2020 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $11 million not included in equity. Fiserv, Inc. Shareholders’ Equity Nine Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Noncontrolling Interests Total Equity Balance at December 31, 2020 789 121 $ 8 $ 23,643 $ (387) $ 13,441 $ (4,375) $ 740 $ 33,070 Net income (1) 1,001 14 1,015 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive loss (262) (25) (287) Share-based compensation 190 190 Shares issued under stock plans (5) (271) 173 (98) Purchases of treasury stock 13 (1,565) (1,565) Retirement of treasury stock (see Note 18) (5) (5) (588) 588 — Balance at September 30, 2021 784 124 $ 8 $ 22,974 $ (649) $ 14,442 $ (5,179) $ 728 $ 32,324 (1) The total net income presented in equity for the nine months ended September 30, 2021 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $33 million not included in equity. (2) The total distributions presented in equity for the nine months ended September 30, 2021 excludes $32 million in distributions paid to redeemable noncontrolling interests and $8 million in distributions to BANA related to the BAMS dissolution (see Note 4) not included in equity. Fiserv, Inc. Shareholders’ Equity Nine Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Total Equity Noncontrolling Interests Balance at December 31, 2019 791 112 $ 8 $ 23,741 $ (180) $ 12,528 $ (3,118) $ 1,616 $ 34,595 Net income (loss) (1) 658 (25) 633 Measurement period adjustments related to First Data acquisition (3) (126) (126) Distributions paid to noncontrolling interests (2) (30) (30) Net adjustment to noncontrolling interests from dissolution (see Note 4) (36) (726) (762) Other comprehensive (loss) income (651) 28 (623) Share-based compensation 286 286 Shares issued under stock plans (5) (220) 156 (64) Purchases of treasury stock 14 (1,435) (1,435) Cumulative-effect adjustment of ASU 2016-13 adoption (45) (45) Balance at September 30, 2020 791 121 $ 8 $ 23,771 $ (831) $ 13,141 $ (4,397) $ 737 $ 32,429 (1) The total net income presented in equity for the nine months ended September 30, 2020 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $29 million not included in equity. (2) The total distributions presented in equity for the nine months ended September 30, 2020 excludes $31 million in distributions paid to redeemable noncontrolling interests not included in equity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: Three Months Ended September 30, 2021 (In millions) Cash Flow Foreign Pension Plans Total Balance at June 30, 2021 $ (116) $ (196) $ (11) $ (323) Other comprehensive income (loss) before reclassifications 3 (331) — (328) Amounts reclassified from accumulated other comprehensive loss 2 — — 2 Net current-period other comprehensive income (loss) 5 (331) — (326) Balance at September 30, 2021 $ (111) $ (527) $ (11) $ (649) Three Months Ended September 30, 2020 (In millions) Cash Flow Foreign Pension Plans Total Balance at June 30, 2020 $ (138) $ (500) $ (6) $ (644) Other comprehensive income (loss) before reclassifications 6 (197) — (191) Amounts reclassified from accumulated other comprehensive loss 4 — — 4 Net current-period other comprehensive income (loss) 10 (197) — (187) Balance at September 30, 2020 $ (128) $ (697) $ (6) $ (831) Nine Months Ended September 30, 2021 (In millions) Cash Flow Foreign Pension Plans Total Balance at December 31, 2020 $ (121) $ (254) $ (12) $ (387) Other comprehensive income (loss) before reclassifications 4 (273) 1 (268) Amounts reclassified from accumulated other comprehensive loss 6 — — 6 Net current-period other comprehensive income (loss) 10 (273) 1 (262) Balance at September 30, 2021 $ (111) $ (527) $ (11) $ (649) Nine Months Ended September 30, 2020 (In millions) Cash Flow Foreign Pension Plans Total Balance at December 31, 2019 $ (141) $ (33) $ (6) $ (180) Other comprehensive income (loss) before reclassifications 1 (664) — (663) Amounts reclassified from accumulated other comprehensive loss 12 — — 12 Net current-period other comprehensive income (loss) 13 (664) — (651) Balance at September 30, 2020 $ (128) $ (697) $ (6) $ (831) The Company has entered into forward exchange contracts, which have been designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. The notional amount of these derivatives was $280 million and $259 million, and the fair value totaling $6 million and $9 million is reported primarily within prepaid expenses and other current assets in the consolidated balance sheets at September 30, 2021 and December 31, 2020, respectively. Based on the amounts recorded in accumulated other comprehensive loss at September 30, 2021, the Company estimates that it will recognize gains of approximately $5 million in cost of processing and services during the next twelve months as foreign exchange forward contracts settle. The Company had previously entered into treasury lock agreements (“Treasury Locks”), designated as cash flow hedges, in the aggregate notional amount of $5.0 billion to manage exposure to fluctuations in benchmark interest rates in anticipation of the issuance of fixed rate debt in connection with the acquisition and refinancing of certain indebtedness of First Data and its subsidiaries. In June 2019, concurrent with the issuance of U.S dollar-denominated senior notes, the Treasury Locks were settled resulting in a payment of $183 million recorded in accumulated other comprehensive loss, net of income taxes, that will be amortized to earnings over the terms of the originally forecasted interest payments. Based on the amounts recorded in accumulated other comprehensive loss at September 30, 2021, the Company estimates that it will recognize approximately $20 million in interest expense, net during the next twelve months related to settled interest rate hedge contracts. To reduce exposure to changes in the value of the Company’s net investments in certain of its foreign currency-denominated subsidiaries due to changes in foreign currency exchange rates, the Company uses its foreign currency-denominated debt as an economic hedge of its net investments in such foreign currency-denominated subsidiaries. The Company has designated its Euro- and British Pound-denominated senior notes as net investment hedges to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro and the British Pound. Accordingly, foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss in the consolidated balance sheets until the sale or complete liquidation of the underlying foreign subsidiaries. The Company recorded a foreign currency translation gain (loss), net of tax, of $71 million and $(92) million in other comprehensive income (loss) during the three months ended September 30, 2021 and 2020 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company recognized $63 million and $84 million of share-based compensation expense during the three months ended September 30, 2021 and 2020, respectively, and $190 million and $286 million of share-based compensation expense during the nine months ended September 30, 2021 and 2020, respectively. The Company’s annual grant of share-based awards generally occurs in the first quarter. Grants of share-based awards may also occur throughout the year in conjunction with acquisitions of businesses. At September 30, 2021, the total remaining unrecognized compensation cost for unvested stock options, restricted stock units and awards and performance share units, net of estimated forfeitures, of $321 million is expected to be recognized over a weighted-average period of 2.1 years. During the nine months ended September 30, 2021 and 2020, stock options to purchase 3.5 million and 2.2 million shares, respectively, were exercised. A summary of stock option activity is as follows: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Stock options outstanding - December 31, 2020 14,689 $ 50.82 Granted 140 110.41 Forfeited (59) 107.83 Exercised (3,510) 36.45 Stock options outstanding - September 30, 2021 11,260 $ 55.75 4.41 $ 600 Stock options exercisable - September 30, 2021 9,692 $ 47.71 3.78 $ 591 A summary of restricted stock unit, restricted stock award and performance share unit activity is as follows: Restricted Stock Units and Awards Performance Share Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Units - December 31, 2020 4,797 $ 98.29 1,821 $ 95.20 Granted 2,410 104.92 255 108.68 Forfeited (279) 104.25 (92) 97.58 Vested (2,302) 98.94 (526) 92.72 Units - September 30, 2021 4,626 $ 100.96 1,458 $ 96.22 |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges In connection with the July 2019 acquisition of First Data, the Company continues to implement integration plans focused on reducing the Company’s overall cost structure, including reducing vendor spend and eliminating duplicate costs. The Company recorded restructuring charges related to certain of these integration activities of $30 million and $41 million, primarily reported in cost of processing and services and selling, general and administrative expenses within the consolidated statements of income, based upon committed actions during the three months ended September 30, 2021 and 2020, respectively, and $58 million and $181 million during the nine months ended September 30, 2021 and 2020, respectively. The Company expects to complete the above integration activities associated with the First Data acquisition by the end of 2021 and does not expect the remaining restructuring and other charges to be material. Employee Termination Costs The Company recorded $27 million and $28 million of employee termination costs related to severance and other separation costs for terminated employees in connection with the acquisition of First Data during the three months ended September 30, 2021 and 2020, respectively, and $45 million and $105 million during the nine months ended September 30, 2021 and 2020, respectively. The following table summarizes the changes in the reserve related to the Company’s employee severance and other separation costs: Nine Months Ended (In millions) 2021 2020 Balance at beginning of period $ 27 $ 14 Severance and other separation costs 45 105 Non-cash adjustments — (6) Cash payments (48) (88) Balance at end of period $ 24 $ 25 The employee severance and other separation costs accrual balance of $24 million at September 30, 2021 is expected to be paid within the next twelve months. In addition, the Company recorded share-based compensation costs of $2 million and $9 million during the three months ended September 30, 2021 and 2020, respectively, and $7 million and $32 million during the nine months ended September 30, 2021 and 2020, respectively, related to the accelerated vesting of equity awards for terminated employees. Facility Exit Costs The Company has identified certain leased facilities that have been or will be exited in the future as part of the Company’s efforts to reduce facility costs. During the first nine months of 2021 and 2020, the Company permanently vacated certain of these leased facilities in advance of the non-cancellable lease terms. In conjunction with the exit of these leased facilities, the Company assessed the respective operating lease ROU assets for impairment by comparing the carrying values of the ROU assets to the discounted cash flows from estimated sublease payments (Level 3 of the fair value hierarchy). In addition, the Company assessed certain property and equipment associated with the leased facilities for impairment. As a result, the Company recorded non-cash impairment charges of $1 million and $4 million, reported in selling, general and administrative expense within the consolidated statements of income during the three months ended September 30, 2021 and 2020, respectively, and $6 million and $44 million during the nine months ended September 30, 2021 and 2020, respectively, associated with the early exit of these leased facilities. Other Costs In connection with initiatives to reduce the Company’s overall cost structure following the acquisition of First Data, the Company terminated certain of its existing lease agreements to upgrade and consolidate its computing infrastructure. The Company upgraded or replaced certain leased hardware under separate, new lease agreements, resulting in the early termination and disposal of existing hardware under the current lease agreements. As such, the Company adjusted the amortization period for these existing lease agreements to coincide with the modified remaining term. Finance lease expense during the three and nine months ended September 30, 2020 included $17 million and $62 million, respectively, of accelerated amortization associated with the termination of these vendor contracts. In addition, the Company executed similar terminations to certain of its existing software financing agreements. Amortization expense during the three and nine months ended September 30, 2020 included $18 million and $53 million, respectively, of accelerated amortization associated with the termination of these vendor contracts. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax provision and effective income tax rate were as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Income tax provision $ 54 $ 124 $ 300 $ 176 Effective income tax rate 11.3 % 32.5 % 23.7 % 21.1 % The income tax provision as a percentage of income before income taxes and income from investments in unconsolidated affiliates was 11.3% and 32.5% for the three months ended September 30, 2021 and 2020, respectively, and was 23.7% and 21.1% for the nine months ended September 30, 2021 and 2020, respectively. The effective income tax rate for the three months ended September 30, 2021 includes discrete tax benefits from subsidiary restructurings and changes in uncertain tax positions. The effective income tax rate for the three months ended September 30, 2020 included $32 million of income tax expense related to the revaluation of certain net deferred tax liabilities as a result of an increase in the United Kingdom corporate income tax rate from 17% to 19% in the quarter. The effective income tax rate for the nine months ended September 30, 2021 includes $134 million of income tax expense attributed to the revaluation of certain net deferred tax liabilities, primarily related to intangible assets and investments in joint ventures recognized at fair value in connection with the acquisition of First Data, reflecting the effect of enacted corporate income tax rate changes in the United Kingdom (tax rate increase from 19% to 25% starting in 2023) and Argentina (tax rate increase from 25% to 35%), partially offset by discrete tax benefits from subsidiary restructurings, changes in uncertain tax positions and equity compensation related tax benefits. The effective income tax rate for the nine months ended September 30, 2020 included $112 million of income tax expense associated with the $428 million gain on the sale of a 60% interest of the Company’s Investment Services business (see Note 4) and $32 million of income tax expense noted above, partially offset by changes in uncertain tax positions and equity compensation related tax benefits. The Company’s potential liability for unrecognized tax benefits before interest and penalties was approximately $136 million at September 30, 2021. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $26 million over the next twelve months as a result of possible closure of federal tax audits, potential settlements with certain states, and the lapse of the statutes of limitation in various jurisdictions. |
Shares Used in Computing Net In
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. | Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. The computation of shares used in calculating basic and diluted net income per share is as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic 661.4 669.8 664.6 672.6 Common stock equivalents 8.3 10.5 9.5 11.5 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted 669.7 680.3 674.1 684.1 For the three months ended September 30, 2021 and 2020, stock options for 1.6 million and 2.6 million shares, respectively, were excluded from the calculation of weighted-average outstanding shares - diluted because their impact was anti-dilutive. For the nine months ended September 30, 2021 and 2020, stock options for 1.5 million and 2.0 million shares, respectively, were excluded from the calculation of weighted-average outstanding shares - diluted because their impact was anti-dilutive. |
Cash Flow Information
Cash Flow Information | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | Cash Flow Information Supplemental cash flow information consisted of the following: Nine Months Ended (In millions) 2021 2020 Interest paid $ 533 $ 548 Income taxes paid 555 143 Distribution of nonmonetary assets (see Notes 4 and 10) — 726 Software obtained under financing arrangements 143 130 Right-of-use assets obtained in exchange for lease liabilities - operating leases 75 2 Right-of-use assets obtained in exchange for lease liabilities - finance leases 183 331 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the normal course of business, the Company or its subsidiaries are named as defendants in lawsuits in which claims are asserted against the Company. In addition, the Company assumed certain legal proceedings in connection with the acquisition of First Data primarily associated with its merchant acquiring business and a tax matter. In the third quarter of 2021, the Company resolved a matter, for which the Company had previously accrued, with a class of merchants related to alleged violations by an independent sales organization resulting in a payment of $28 million. In the second quarter of 2020, the Company resolved a matter with the Federal Trade Commission related to a U.S.-based wholesale independent sales organization resulting in a payment of $40 million, for which the Company previously had accrued. The Company maintained reserves of $15 million and $32 million at September 30, 2021 and December 31, 2020, respectively, related to its various legal proceedings, primarily associated with the Company’s merchant acquiring business as described above. The Company’s estimate of the possible range of exposure for various litigation matters in excess of amounts accrued is $0 million to approximately $65 million. In the opinion of management, the liabilities, if any, which may ultimately result from such lawsuits are not expected to have a material adverse effect on the Company’s consolidated financial statements. Electronic Payments Transactions In connection with the Company’s processing of electronic payments transactions, funds received from subscribers are invested from the time the Company collects the funds until payments are made to the applicable recipients. These subscriber funds are invested in short-term, highly liquid investments. Subscriber funds, which are not included in the Company’s consolidated balance sheets, can fluctuate significantly based on consumer bill payment and debit card activity and totaled approximately $1.0 billion and $1.7 billion at September 30, 2021 and December 31, 2020, respectively. Indemnifications and Warranties The Company may indemnify its clients from certain costs resulting from claims of patent, copyright or trademark infringement associated with its clients’ use of the Company’s products or services. The Company may also warrant to clients that its products and services will operate substantially in accordance with identified specifications. From time to time, in connection with sales of businesses, the Company agrees to indemnify the buyers of such businesses for liabilities associated with the businesses that are sold. Payments, net of recoveries, under such indemnification or warranty provisions were not material to the Company’s consolidated financial statements. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Merchant Alliances The Company maintains ownership interests of significant influence in various merchant alliances and strategic investments in companies in related markets. A merchant alliance is an agreement between the Company and a financial institution that combines the processing capabilities and management expertise of the Company with the visibility and distribution channel of the financial institution. A merchant alliance acquires credit and debit card transactions from merchants. The Company provides processing and other services to the alliance and charges fees to the alliance primarily based on contractual pricing. A significant portion of the Company’s business is conducted through merchant alliances between the Company and financial institutions. To the extent the Company maintains a controlling financial interest in an alliance, the alliance’s financial statements are consolidated with those of the Company and the related processing fees are treated as an intercompany transaction and eliminated in consolidation. To the extent the Company has significant influence but not control in an alliance, the Company uses the equity method of accounting to account for its investment in the alliance. As a result, the processing and other service fees charged to merchant alliances accounted for under the equity method are recognized in the Company’s consolidated statements of income primarily as processing and services revenue. Such fees totaled $42 million and $47 million for the three months ended September 30, 2021 and 2020, respectively, and $132 million and $134 million for the nine months ended September 30, 2021 and 2020, respectively. No directors or officers of the Company have ownership interests in any of the alliances. The formation of each of these alliances generally involves the Company and the financial institution contributing contractual merchant relationships to the alliance and a cash payment from one owner to the other to achieve the desired ownership percentage for each. The Company and the financial institution enter into a long-term processing service agreement as part of the negotiation process. This agreement governs the Company’s provision of transaction processing services to the alliance. The Company had $38 million and $37 million of amounts due from unconsolidated merchant alliances included within trade accounts receivable, net in the consolidated balance sheets at September 30, 2021 and December 31, 2020, respectively. Joint Venture Transition Services Agreements Pursuant to certain transition services agreements, the Company provides, at fair value, various administration, business process outsourcing, and technical and data center related services for defined periods to certain joint ventures accounted for under the equity method. Amounts transacted through these agreements, including with InvestCloud through June 30, 2021, totaled $6 million and $16 million during the three months ended September 30, 2021 and 2020, respectively, and $32 million and $43 million during the nine months ended September 30, 2021 and 2020, respectively, and were primarily recognized as processing and services revenue in the consolidated statements of income. Share Repurchase |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s operations are comprised of the Acceptance segment, the Fintech segment and the Payments segment. The businesses in the Acceptance segment provide a wide range of commerce-enabling solutions and serve merchants of all sizes around the world. These services include point-of-sale merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Carat SM , the Company’s omnichannel commerce solution; and the Company’s cloud-based Clover ® point-of-sale platform. The Company distributes the products and services in the global Acceptance segment businesses through a variety of channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions and other strategic partners in the form of joint venture alliances, revenue sharing alliances and referral agreements. Merchants, financial institutions and distribution partners in the Acceptance segment are frequently clients of the Company’s other segments. The businesses in the Fintech segment provide financial institutions around the world with the technology solutions they need to run their operations, including products and services that enable financial institutions to process customer deposit and loan accounts and manage an institution’s general ledger and central information files. As a complement to the core account processing functionality, the global Fintech segment businesses also provide digital banking, financial and risk management, professional services and consulting, item processing and source capture, and other products and services that support numerous types of financial transactions. Certain of the businesses in the Fintech segment provide products or services to corporate clients to facilitate the management of financial processes and transactions. Many of the products and services offered in the Fintech segment are integrated with products and services provided by the Company’s other segments. The businesses in the Payments segment provide financial institutions and corporate clients around the world with the products and services required to process digital payment transactions. This includes card transactions such as debit, credit and prepaid card processing and services; a range of network services, security and fraud protection products; card production and print services. In addition, the global Payments segment businesses offer non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products. Clients of the Payments segment businesses reflect a wide range of industries, including merchants, distribution partners and financial institution customers in the Company’s other segments. Corporate and Other supports the reportable segments described above, and consists of amortization of acquisition-related intangible assets, unallocated corporate expenses and other activities that are not considered when management evaluates segment performance, such as gains or losses on sales of businesses or investments, costs associated with acquisition and divestiture activity, and the Company’s Output Solutions postage reimbursements. Corporate and Other also includes the historical results of the Company’s Investment Services business prior to the Company’s disposal of its controlling financial interest in February 2020 (see Note 4), as well as certain transition services revenue associated with various dispositions. Revenue and operating income (loss) for each reportable segment were as follows: Reportable Segments (In millions) Acceptance Fintech Payments Corporate Total Three Months Ended September 30, 2021 Processing and services revenue $ 1,458 $ 718 $ 1,227 $ 4 $ 3,407 Product revenue 258 43 244 211 756 Total revenue $ 1,716 $ 761 $ 1,471 $ 215 $ 4,163 Operating income (loss) $ 552 $ 275 $ 643 $ (834) $ 636 Three Months Ended September 30, 2020 Processing and services revenue $ 1,256 $ 684 $ 1,203 $ 10 $ 3,153 Product revenue 198 43 184 208 633 Total revenue $ 1,454 $ 727 $ 1,387 $ 218 $ 3,786 Operating income (loss) $ 423 $ 265 $ 599 $ (745) $ 542 Nine Months Ended September 30, 2021 Processing and services revenue $ 4,079 $ 2,115 $ 3,602 $ 26 $ 9,822 Product revenue 700 136 695 616 2,147 Total revenue $ 4,779 $ 2,251 $ 4,297 $ 642 $ 11,969 Operating income (loss) $ 1,463 $ 794 $ 1,850 $ (2,352) $ 1,755 Nine Months Ended September 30, 2020 Processing and services revenue $ 3,495 $ 2,032 $ 3,540 $ 51 $ 9,118 Product revenue 583 127 553 639 1,902 Total revenue $ 4,078 $ 2,159 $ 4,093 $ 690 $ 11,020 Operating income (loss) $ 985 $ 721 $ 1,712 $ (2,082) $ 1,336 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements for the three and nine months ended September 30, 2021 and 2020 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a controlling financial interest. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Control is normally established when ownership and voting interests in an entity are greater than 50%. Investments in which the Company has significant influence but not control are accounted for using the equity method of accounting, for which the Company’s share of net income or loss is reported within income from investments in unconsolidated affiliates and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income. Significant influence over an affiliate’s operations generally coincides with an ownership interest in an entity of between 20% and 50%. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S.”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost in the consolidated balance sheets, which approximates market value. Cash and cash equivalents that were restricted from use due to regulatory or other requirements are included in other long-term assets in the consolidated balance sheets |
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsThe Company analyzes the collectability of trade accounts receivable by considering historical bad debts, client creditworthiness, current economic trends, changes in client payment terms and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. |
Settlement Assets and Obligations | Settlement Assets and Obligations Settlement assets and obligations result from timing differences between collection and fulfillment of payment transactions primarily associated with the Company’s merchant acquiring services. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners or directly from consumers. Settlement obligations represent amounts payable to merchants and payees. Certain merchant settlement assets that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership but has the right to use the assets to satisfy the related settlement obligations. The Company records settlement obligations for amounts payable to merchants and for outstanding payment instruments issued to payees that have not yet been presented for settlement. |
Allowance for Merchant Credit Losses | Allowance for Merchant Credit Losses With respect to the Company’s merchant acquiring business, the Company’s merchant customers have the legal obligation to refund any charges properly reversed by the cardholder. However, in the event the Company is not able to collect the refunded amounts from the merchants, the Company may be liable for the reversed charges. The Company’s risk in this area primarily relates to situations where the cardholder has purchased goods or services to be delivered in the future. The Company requires cash deposits, guarantees, letters of credit or other types of collateral from certain merchants to minimize this obligation. Collateral held by the Company is classified within settlement assets and the obligation to repay the collateral is classified within settlement obligations in the consolidated balance sheets. The Company also utilizes a number of systems and procedures to manage merchant credit risk. Despite these efforts, the Company experiences some level of losses due to merchant defaults. |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis, or more frequently if circumstances indicate possible impairment. Goodwill is tested for impairment at a reporting unit level, which is one level below the Company’s reportable segments. The Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2020 determined that its goodwill was not impaired as the estimated fair values exceeded the carrying values. However, it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic on certain of the Company’s businesses acquired and recorded at fair value through the acquisition of First Data Corporation |
Other Investments | Other InvestmentsThe Company maintains investments in various equity securities without a readily determinable fair value. Such investments totaled $95 million and $160 million at September 30, 2021 and December 31, 2020, respectively, and are included within other long-term assets in the consolidated balance sheets. The Company reviews these investments each reporting period to determine whether an impairment or observable price change for the investment has occurred. To the extent such events or changes occur, the Company evaluates the fair value compared to its cost basis in the investment. Gains or losses from a sale of these investments or a change in fair value are included within other income in the consolidated statements of income for the period. During the nine months ended September 30, 2021, the Company remeasured its equity interest in Ondot Systems, Inc. (“Ondot”) to fair value upon acquiring a remaining ownership interest in January 2021, resulting in the recognition of a pre-tax gain of $12 million (see Note 4). Other adjustments made to the values recorded for certain equity securities and gains and losses from sales of equity securities during the three and nine months ended September 30, 2021 and 2020, were not significant. |
Interest Expense, Net | Interest Expense, NetInterest expense, net consists of interest expense primarily associated with the Company’s outstanding borrowings and finance lease obligations, as well as interest income primarily associated with the Company’s investment securities. |
Recent Accounting Pronouncements | In 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”), which clarifies certain interactions between the guidance to account for certain equity securities, investments under the equity method of accounting, and forward contracts or purchased options to purchase securities under Topic 321, Topic 323 and Topic 815. For public entities, ASU 2020-01 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2020-01 effective January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which introduces a number of amendments that are designed to simplify the application of accounting for income taxes. Such amendments include removing certain exceptions for intraperiod tax allocation, interim reporting when a year-to-date loss exceeds the anticipated loss, reflecting the effect of an enacted change in tax laws or rates in the annual effective tax rate and recognition of deferred taxes related to outside basis differences for ownership changes in investments. ASU 2019-12 also provides clarification related to when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. In addition, ASU 2019-12 provides guidance on the recognition of a franchise tax (or similar tax) that is partially based on income as an income-based tax and accounting for any incremental amount incurred as a non-income-based tax. For public entities, ASU 2019-12 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 effective January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13” or “CECL”), which prescribes an impairment model for most financial instruments based on expected losses rather than incurred losses. Under this model, an estimate of expected credit losses over the contractual life of the instrument is to be recorded as of the end of a reporting period as an allowance to offset the amortized cost basis, resulting in a net presentation of the amount expected to be collected on the financial instrument. For public entities, ASU 2016-13 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. For most instruments, entities must apply the standard using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company adopted ASU 2016-13 effective January 1, 2020 using the required modified retrospective approach, which resulted in a cumulative-effect decrease to beginning retained earnings of $45 million. Financial assets and liabilities held by the Company subject to the “expected credit loss” model prescribed by CECL include trade and other receivables, net investments in leases, settlement assets and other credit exposures such as financial guarantees not accounted for as insurance. |
Revenue from Contract with Customer | The Company generates revenue from the delivery of processing, service and product solutions. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time.Contract assets, reported within other long-term assets in the consolidated balance sheets, primarily result from revenue being recognized where payment is contingent upon the transfer of services to a customer over the contractual period. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue) for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.The Company applies the optional exemption under Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”) and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. These multi-year contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional exemptions under ASC 606 and does not disclose information for variable consideration that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year. |
Fair Value Measurements | The fair values of cash equivalents, trade accounts receivable, settlement assets and obligations, accounts payable, and client deposits approximate their respective carrying values due to the short period of time to maturity. The Company’s derivative instruments are measured on a recurring basis based on foreign currency spot rates and forwards quoted by banks and foreign currency dealers and are marked to market each period (see Note 11). Contingent consideration related to certain of the Company’s acquisitions (see Note 4) is estimated based on the present value of a probability-weighted assessment approach derived from the likelihood of achieving the earn-out criteria. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of interest expense, net | Interest expense, net consisted of the following: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Interest expense $ 173 $ 176 $ 526 $ 541 Interest income 1 2 3 6 Interest expense, net $ 172 $ 174 $ 523 $ 535 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The tables below present the Company’s revenue disaggregated by type of revenue, including a reconciliation with its reportable segments. The majority of the Company’s revenue is earned domestically, with revenue generated outside the U.S. comprising approximately 14% of total revenue for each of the three months ended September 30, 2021 and 2020, and 14% and 13% of total revenue for the nine months ended September 30, 2021 and 2020, respectively. (In millions) Reportable Segments Three Months Ended September 30, 2021 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 1,446 $ 389 $ 1,132 $ 4 $ 2,971 Hardware, print and card production 232 10 236 — 478 Professional services 12 124 66 — 202 Software maintenance — 139 2 — 141 License and termination fees 12 45 16 — 73 Output solutions postage — — — 209 209 Other 14 54 19 2 89 Total Revenue $ 1,716 $ 761 $ 1,471 $ 215 $ 4,163 (In millions) Reportable Segments Three Months Ended September 30, 2020 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 1,245 $ 364 $ 1,112 $ 9 $ 2,730 Hardware, print and card production 179 12 176 — 367 Professional services 9 120 59 — 188 Software maintenance — 141 1 — 142 License and termination fees 7 41 21 — 69 Output solutions postage — — — 207 207 Other 14 49 18 2 83 Total Revenue $ 1,454 $ 727 $ 1,387 $ 218 $ 3,786 (In millions) Reportable Segments Nine Months Ended September 30, 2021 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 4,044 $ 1,152 $ 3,331 $ 26 $ 8,553 Hardware, print and card production 636 33 667 — 1,336 Professional services 30 350 195 — 575 Software maintenance — 417 6 — 423 License and termination fees 33 133 43 — 209 Output solutions postage — — — 616 616 Other 36 166 55 — 257 Total Revenue $ 4,779 $ 2,251 $ 4,297 $ 642 $ 11,969 (In millions) Reportable Segments Nine Months Ended September 30, 2020 Acceptance Fintech Payments Corporate Total Type of Revenue Processing $ 3,466 $ 1,064 $ 3,265 $ 47 $ 7,842 Hardware, print and card production 531 33 528 — 1,092 Professional services 20 347 174 1 542 Software maintenance — 423 2 2 427 License and termination fees 19 139 61 — 219 Output solutions postage — — — 640 640 Other 42 153 63 — 258 Total Revenue $ 4,078 $ 2,159 $ 4,093 $ 690 $ 11,020 |
Contract with customer, asset and liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers: (In millions) September 30, 2021 December 31, 2020 Contract assets $ 531 $ 433 Contract liabilities 733 733 |
Schedule of remaining performance obligations | The following table includes estimated processing, services and product revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at September 30, 2021: (In millions) Year Ending December 31, Remainder of 2021 $ 550 2022 1,997 2023 1,675 2024 1,288 Thereafter 2,216 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of gross carrying amount and weighted-average useful life allocated to intangible assets | The preliminary amounts allocated to identifiable intangible assets are as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 90 17 years Residual buyouts 20 8 years Acquired software and technology 6 7 years Non-compete agreements and other 11 5 years Total $ 127 14 years (In millions) Gross Carrying Amount Weighted-Average Useful Life Acquired software and technology $ 90 6 years Customer relationships 35 6 years Non-compete agreements and other 17 4 years Total $ 142 6 years The amounts allocated to identifiable intangible assets were as follows: (In millions) Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 32 14 years Residual buyouts 35 9 years Acquired software and technology 14 8 years Total $ 81 11 years |
Schedule of purchase price allocation | The allocation of purchase price recorded for Ondot was finalized in the third quarter of 2021 as follows: (In millions) Cash and cash equivalents $ 13 Receivables and other assets 9 Intangible assets 142 Goodwill 173 Payables and other liabilities (31) Total consideration $ 306 Less: Fair value of previously held equity interest (22) Total purchase price $ 284 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets by class | Identifiable intangible assets consisted of the following: (In millions) Gross Accumulated Net Book September 30, 2021 Customer relationships $ 15,059 $ 4,712 $ 10,347 Acquired software and technology 2,380 827 1,553 Trade names 614 213 401 Purchased software 1,132 443 689 Capitalized software and other intangibles 1,812 534 1,278 Total $ 20,997 $ 6,729 $ 14,268 (In millions) Gross Accumulated Net Book December 31, 2020 Customer relationships $ 15,271 $ 3,668 $ 11,603 Acquired software and technology 2,562 879 1,683 Trade names 618 172 446 Purchased software 913 207 706 Capitalized software and other intangibles 1,332 412 920 Total $ 20,696 $ 5,338 $ 15,358 |
Schedule of amortization expense of intangible assets | Amortization expense associated with the above identifiable intangible assets was as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Amortization expense $ 642 $ 623 $ 1,937 $ 1,934 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | Assets and liabilities measured at fair value on a recurring basis consisted of the following: Fair Value (In millions) Classification Fair Value Hierarchy September 30, December 31, Assets Cash flow hedges Prepaid expenses and other current assets Level 2 $ 6 $ 9 Liabilities Contingent consideration Accounts payable and accrued expenses Level 3 — 46 Contingent consideration Other long-term liabilities Level 3 30 — Contingent debt guarantee Other long-term liabilities Level 3 5 8 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following: (In millions) September 30, 2021 December 31, 2020 Trade accounts payable $ 496 $ 437 Client deposits 755 702 Accrued compensation and benefits 409 419 Accrued taxes 205 130 Accrued interest 172 220 Other accrued expenses 1,303 1,278 Total $ 3,340 $ 3,186 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt, net of discounts and debt issuance costs | The Company’s debt consisted of the following: (In millions) September 30, 2021 December 31, 2020 Short-term and current maturities of long-term debt: Foreign lines of credit $ 155 $ 144 Finance lease and other financing obligations 294 240 Total short-term and current maturities of long-term debt $ 449 $ 384 Long-term debt: 4.750% senior notes due June 2021 $ — $ 400 3.500% senior notes due October 2022 700 700 0.375% senior notes due July 2023 (Euro-denominated) 579 612 3.800% senior notes due October 2023 1,000 1,000 2.750% senior notes due July 2024 2,000 2,000 3.850% senior notes due June 2025 900 900 2.250% senior notes due July 2025 (British Pound-denominated) 707 709 3.200% senior notes due July 2026 2,000 2,000 2.250% senior notes due June 2027 1,000 1,000 1.125% senior notes due July 2027 (Euro-denominated) 579 612 4.200% senior notes due October 2028 1,000 1,000 3.500% senior notes due July 2029 3,000 3,000 2.650% senior notes due June 2030 1,000 1,000 1.625% senior notes due July 2030 (Euro-denominated) 579 612 3.000% senior notes due July 2031 (British Pound-denominated) 707 709 4.400% senior notes due July 2049 2,000 2,000 Receivable securitized loan 500 425 Term loan facility 355 1,250 Unamortized discount and deferred financing costs (131) (155) U.S. commercial paper notes 1,377 — Revolving credit facility 107 22 Finance lease and other financing obligations 581 504 Total long-term debt $ 20,540 $ 20,300 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of redeemable noncontrolling interests activity | The following table presents a summary of the redeemable noncontrolling interests activity during the nine months ended September 30: (In millions) 2021 2020 Balance at beginning of period $ 259 $ 262 Distributions paid to redeemable noncontrolling interests (32) (31) Share of income 33 29 Balance at end of period $ 260 $ 260 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of stockholders equity | The following tables provide changes in equity during the three and nine months ended September 30, 2021 and 2020: Fiserv, Inc. Shareholders’ Equity Three Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Noncontrolling Interests Total Equity Balance at June 30, 2021 784 123 $ 8 $ 22,960 $ (323) $ 14,014 $ (4,866) $ 739 $ 32,532 Net income (1) 428 7 435 Distributions paid to noncontrolling interests (2) — — Other comprehensive loss (326) (18) (344) Share-based compensation 63 63 Shares issued under stock plans (2) (49) 52 3 Purchases of treasury stock 3 (365) (365) Balance at September 30, 2021 784 124 $ 8 $ 22,974 $ (649) $ 14,442 $ (5,179) $ 728 $ 32,324 (1) The total net income presented in equity for the three months ended September 30, 2021 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $11 million not included in equity. (2) The total distributions presented in equity for the three months ended September 30, 2021 excludes $12 million in distributions paid to redeemable noncontrolling interests and $8 million in distributions to BANA related to the BAMS dissolution (see Note 4) not included in equity. Fiserv, Inc. Shareholders’ Equity Three Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Total Equity Noncontrolling Interests Balance at June 30, 2020 791 122 $ 8 $ 23,771 $ (644) $ 12,877 $ (4,429) $ 1,445 $ 33,028 Net income (1) 264 1 265 Net adjustment to noncontrolling interests from dissolution (see Note 4) (36) (726) (762) Other comprehensive income (loss) (187) 17 (170) Share-based compensation 84 84 Shares issued under stock plans (1) (48) 32 (16) Balance at September 30, 2020 791 121 $ 8 $ 23,771 $ (831) $ 13,141 $ (4,397) $ 737 $ 32,429 (1) The total net income presented in equity for the three months ended September 30, 2020 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $11 million not included in equity. Fiserv, Inc. Shareholders’ Equity Nine Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Noncontrolling Interests Total Equity Balance at December 31, 2020 789 121 $ 8 $ 23,643 $ (387) $ 13,441 $ (4,375) $ 740 $ 33,070 Net income (1) 1,001 14 1,015 Distributions paid to noncontrolling interests (2) (1) (1) Other comprehensive loss (262) (25) (287) Share-based compensation 190 190 Shares issued under stock plans (5) (271) 173 (98) Purchases of treasury stock 13 (1,565) (1,565) Retirement of treasury stock (see Note 18) (5) (5) (588) 588 — Balance at September 30, 2021 784 124 $ 8 $ 22,974 $ (649) $ 14,442 $ (5,179) $ 728 $ 32,324 (1) The total net income presented in equity for the nine months ended September 30, 2021 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $33 million not included in equity. (2) The total distributions presented in equity for the nine months ended September 30, 2021 excludes $32 million in distributions paid to redeemable noncontrolling interests and $8 million in distributions to BANA related to the BAMS dissolution (see Note 4) not included in equity. Fiserv, Inc. Shareholders’ Equity Nine Months Ended Number of Shares Amount (In millions) Common Shares Treasury Shares Common Stock Additional Accumulated Retained Treasury Stock Total Equity Noncontrolling Interests Balance at December 31, 2019 791 112 $ 8 $ 23,741 $ (180) $ 12,528 $ (3,118) $ 1,616 $ 34,595 Net income (loss) (1) 658 (25) 633 Measurement period adjustments related to First Data acquisition (3) (126) (126) Distributions paid to noncontrolling interests (2) (30) (30) Net adjustment to noncontrolling interests from dissolution (see Note 4) (36) (726) (762) Other comprehensive (loss) income (651) 28 (623) Share-based compensation 286 286 Shares issued under stock plans (5) (220) 156 (64) Purchases of treasury stock 14 (1,435) (1,435) Cumulative-effect adjustment of ASU 2016-13 adoption (45) (45) Balance at September 30, 2020 791 121 $ 8 $ 23,771 $ (831) $ 13,141 $ (4,397) $ 737 $ 32,429 (1) The total net income presented in equity for the nine months ended September 30, 2020 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $29 million not included in equity. (2) The total distributions presented in equity for the nine months ended September 30, 2020 excludes $31 million in distributions paid to redeemable noncontrolling interests not included in equity. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive loss by component, net of income taxes | Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following: Three Months Ended September 30, 2021 (In millions) Cash Flow Foreign Pension Plans Total Balance at June 30, 2021 $ (116) $ (196) $ (11) $ (323) Other comprehensive income (loss) before reclassifications 3 (331) — (328) Amounts reclassified from accumulated other comprehensive loss 2 — — 2 Net current-period other comprehensive income (loss) 5 (331) — (326) Balance at September 30, 2021 $ (111) $ (527) $ (11) $ (649) Three Months Ended September 30, 2020 (In millions) Cash Flow Foreign Pension Plans Total Balance at June 30, 2020 $ (138) $ (500) $ (6) $ (644) Other comprehensive income (loss) before reclassifications 6 (197) — (191) Amounts reclassified from accumulated other comprehensive loss 4 — — 4 Net current-period other comprehensive income (loss) 10 (197) — (187) Balance at September 30, 2020 $ (128) $ (697) $ (6) $ (831) Nine Months Ended September 30, 2021 (In millions) Cash Flow Foreign Pension Plans Total Balance at December 31, 2020 $ (121) $ (254) $ (12) $ (387) Other comprehensive income (loss) before reclassifications 4 (273) 1 (268) Amounts reclassified from accumulated other comprehensive loss 6 — — 6 Net current-period other comprehensive income (loss) 10 (273) 1 (262) Balance at September 30, 2021 $ (111) $ (527) $ (11) $ (649) Nine Months Ended September 30, 2020 (In millions) Cash Flow Foreign Pension Plans Total Balance at December 31, 2019 $ (141) $ (33) $ (6) $ (180) Other comprehensive income (loss) before reclassifications 1 (664) — (663) Amounts reclassified from accumulated other comprehensive loss 12 — — 12 Net current-period other comprehensive income (loss) 13 (664) — (651) Balance at September 30, 2020 $ (128) $ (697) $ (6) $ (831) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock option activity | A summary of stock option activity is as follows: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Stock options outstanding - December 31, 2020 14,689 $ 50.82 Granted 140 110.41 Forfeited (59) 107.83 Exercised (3,510) 36.45 Stock options outstanding - September 30, 2021 11,260 $ 55.75 4.41 $ 600 Stock options exercisable - September 30, 2021 9,692 $ 47.71 3.78 $ 591 |
Summary of restricted stock and performance activity | A summary of restricted stock unit, restricted stock award and performance share unit activity is as follows: Restricted Stock Units and Awards Performance Share Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Units - December 31, 2020 4,797 $ 98.29 1,821 $ 95.20 Granted 2,410 104.92 255 108.68 Forfeited (279) 104.25 (92) 97.58 Vested (2,302) 98.94 (526) 92.72 Units - September 30, 2021 4,626 $ 100.96 1,458 $ 96.22 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of changes in reserves | The following table summarizes the changes in the reserve related to the Company’s employee severance and other separation costs: Nine Months Ended (In millions) 2021 2020 Balance at beginning of period $ 27 $ 14 Severance and other separation costs 45 105 Non-cash adjustments — (6) Cash payments (48) (88) Balance at end of period $ 24 $ 25 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision and effective income tax rate | The Company’s income tax provision and effective income tax rate were as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Income tax provision $ 54 $ 124 $ 300 $ 176 Effective income tax rate 11.3 % 32.5 % 23.7 % 21.1 % |
Shares Used in Computing Net _2
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of shares used in calculating basic and diluted net income per common share | The computation of shares used in calculating basic and diluted net income per share is as follows: Three Months Ended Nine Months Ended (In millions) 2021 2020 2021 2020 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic 661.4 669.8 664.6 672.6 Common stock equivalents 8.3 10.5 9.5 11.5 Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted 669.7 680.3 674.1 684.1 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Supplemental cash flow information consisted of the following: Nine Months Ended (In millions) 2021 2020 Interest paid $ 533 $ 548 Income taxes paid 555 143 Distribution of nonmonetary assets (see Notes 4 and 10) — 726 Software obtained under financing arrangements 143 130 Right-of-use assets obtained in exchange for lease liabilities - operating leases 75 2 Right-of-use assets obtained in exchange for lease liabilities - finance leases 183 331 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Revenue and operating income (loss) for each reportable segment were as follows: Reportable Segments (In millions) Acceptance Fintech Payments Corporate Total Three Months Ended September 30, 2021 Processing and services revenue $ 1,458 $ 718 $ 1,227 $ 4 $ 3,407 Product revenue 258 43 244 211 756 Total revenue $ 1,716 $ 761 $ 1,471 $ 215 $ 4,163 Operating income (loss) $ 552 $ 275 $ 643 $ (834) $ 636 Three Months Ended September 30, 2020 Processing and services revenue $ 1,256 $ 684 $ 1,203 $ 10 $ 3,153 Product revenue 198 43 184 208 633 Total revenue $ 1,454 $ 727 $ 1,387 $ 218 $ 3,786 Operating income (loss) $ 423 $ 265 $ 599 $ (745) $ 542 Nine Months Ended September 30, 2021 Processing and services revenue $ 4,079 $ 2,115 $ 3,602 $ 26 $ 9,822 Product revenue 700 136 695 616 2,147 Total revenue $ 4,779 $ 2,251 $ 4,297 $ 642 $ 11,969 Operating income (loss) $ 1,463 $ 794 $ 1,850 $ (2,352) $ 1,755 Nine Months Ended September 30, 2020 Processing and services revenue $ 3,495 $ 2,032 $ 3,540 $ 51 $ 9,118 Product revenue 583 127 553 639 1,902 Total revenue $ 4,078 $ 2,159 $ 4,093 $ 690 $ 11,020 Operating income (loss) $ 985 $ 721 $ 1,712 $ (2,082) $ 1,336 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Restricted cash and cash equivalents | $ 9,000,000 | $ 9,000,000 | $ 13,000,000 | ||
Allowance for doubtful accounts | 50,000,000 | 50,000,000 | 48,000,000 | ||
Accumulated impairment loss | 0 | 0 | |||
Equity securities without a readily determinable fair value | 95,000,000 | 95,000,000 | 160,000,000 | ||
Ondot | |||||
Business Acquisition [Line Items] | |||||
Pre-tax gain from remeasurement | 12,000,000 | ||||
Merchant credit losses | |||||
Business Acquisition [Line Items] | |||||
Aggregate merchant credit loss expense | 0 | $ 35,000,000 | 31,000,000 | $ 89,000,000 | |
Collateral held | 2,600,000,000 | 2,600,000,000 | 1,200,000,000 | ||
Merchant credit loss allowance | $ 45,000,000 | $ 45,000,000 | $ 59,000,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Interest expense | $ 173 | $ 176 | $ 526 | $ 541 |
Interest income | 1 | 2 | 3 | 6 |
Interest expense, net | $ 172 | $ 174 | $ 523 | $ 535 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative-effect decrease to beginning retained earnings | $ (32,324) | $ (32,532) | $ (33,070) | $ (32,429) | $ (33,028) | $ (34,595) | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative-effect decrease to beginning retained earnings | 45 | ||||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative-effect decrease to beginning retained earnings | $ (14,442) | $ (14,014) | $ (13,441) | $ (13,141) | $ (12,877) | (12,528) | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative-effect decrease to beginning retained earnings | $ 45 | ||||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative-effect decrease to beginning retained earnings | $ 45 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,163 | $ 3,786 | $ 11,969 | $ 11,020 |
Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,716 | 1,454 | 4,779 | 4,078 |
Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 761 | 727 | 2,251 | 2,159 |
Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,471 | 1,387 | 4,297 | 4,093 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 215 | $ 218 | $ 642 | $ 690 |
Geographic Concentration Risk | Non-US | Revenue from Contract with Customer Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of concentration risk | 14.00% | 14.00% | 14.00% | 13.00% |
Processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,971 | $ 2,730 | $ 8,553 | $ 7,842 |
Processing | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,446 | 1,245 | 4,044 | 3,466 |
Processing | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 389 | 364 | 1,152 | 1,064 |
Processing | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,132 | 1,112 | 3,331 | 3,265 |
Processing | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4 | 9 | 26 | 47 |
Hardware, print and card production | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 478 | 367 | 1,336 | 1,092 |
Hardware, print and card production | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 232 | 179 | 636 | 531 |
Hardware, print and card production | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10 | 12 | 33 | 33 |
Hardware, print and card production | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 236 | 176 | 667 | 528 |
Hardware, print and card production | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 202 | 188 | 575 | 542 |
Professional services | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12 | 9 | 30 | 20 |
Professional services | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 124 | 120 | 350 | 347 |
Professional services | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 66 | 59 | 195 | 174 |
Professional services | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 1 |
Software maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 141 | 142 | 423 | 427 |
Software maintenance | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Software maintenance | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 139 | 141 | 417 | 423 |
Software maintenance | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2 | 1 | 6 | 2 |
Software maintenance | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 2 |
License and termination fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 73 | 69 | 209 | 219 |
License and termination fees | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12 | 7 | 33 | 19 |
License and termination fees | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 45 | 41 | 133 | 139 |
License and termination fees | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16 | 21 | 43 | 61 |
License and termination fees | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Output solutions postage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 209 | 207 | 616 | 640 |
Output solutions postage | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Output solutions postage | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Output solutions postage | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Output solutions postage | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 209 | 207 | 616 | 640 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 89 | 83 | 257 | 258 |
Other | Operating segments | Acceptance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14 | 14 | 36 | 42 |
Other | Operating segments | Fintech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 54 | 49 | 166 | 153 |
Other | Operating segments | Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 19 | 18 | 55 | 63 |
Other | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2 | $ 2 | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 531 | $ 433 |
Contract liabilities | $ 733 | $ 733 |
Revenue Recognition - Revenue R
Revenue Recognition - Revenue Recognized (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized which was included in the contract liability balance | $ 469 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 550 |
Performance obligations expected to be satisfied, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,997 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,675 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,288 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 2,216 |
Performance obligations expected to be satisfied, expected timing |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | May 04, 2021 | Feb. 02, 2021 | Jan. 22, 2021 | Feb. 18, 2020 | May 11, 2021 | Sep. 30, 2021 | Jun. 14, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 36,303 | $ 36,303 | $ 36,322 | ||||||||||
Noncontrolling interest decrease | $ 762 | $ 762 | |||||||||||
Tax expense | 112 | ||||||||||||
Net pre-tax gain | 22 | 19 | 80 | 3 | |||||||||
Tax expense | 54 | 124 | 300 | 176 | |||||||||
Noncontrolling Interests | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Noncontrolling interest decrease | 726 | 726 | |||||||||||
Additional Paid-In Capital | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Noncontrolling interest decrease | 36 | 36 | |||||||||||
Banc of America Merchant Services | Corporate joint venture | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage of interest in joint venture | 51.00% | ||||||||||||
Banc of America Merchant Services Joint Venture | Bank Of America | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Pre-tax gain | 36 | ||||||||||||
Tax expense | 13 | ||||||||||||
Revaluation/Remeasurement gain | 700 | ||||||||||||
Additional consideration due from the Company | $ 24 | ||||||||||||
Processing and other support services agreement, term (in years) | 5 years | ||||||||||||
Banc of America Merchant Services Joint Venture | Bank Of America | Noncontrolling Interests | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Noncontrolling interest decrease | $ 726 | ||||||||||||
Banc of America Merchant Services Joint Venture | Bank Of America | Additional Paid-In Capital | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Noncontrolling interest decrease | $ 36 | ||||||||||||
Investment Services Business | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Controlling interest sold (as a percent) | 60.00% | ||||||||||||
Percentage of interest owned in affiliate | 40.00% | ||||||||||||
InvestCloud | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Capital contribution | $ 200 | ||||||||||||
Net pre-tax gain | 28 | ||||||||||||
Tax expense | 6 | ||||||||||||
Disposal Group, Disposed of by Sale | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revaluation/Remeasurement gain | 176 | ||||||||||||
Consideration from sale of business | $ 578 | ||||||||||||
Tax expense | 112 | ||||||||||||
Disposal Group, Disposed of by Sale | Investment Services Business | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Controlling interest sold (as a percent) | 60.00% | ||||||||||||
Pre-tax gain on sale | $ 428 | ||||||||||||
Disposal Group, Disposed of by Sale | InvestCloud | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Tax expense | 8 | ||||||||||||
Proceeds from sale of entire ownership interest | $ 466 | ||||||||||||
Pre-tax gain on sale | 33 | ||||||||||||
Pineapple Payments | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payments for acquisitions of businesses | $ 207 | ||||||||||||
Acquired cash | 6 | ||||||||||||
Earn-out provisions estimated fair value | 30 | ||||||||||||
Measurement period adjustments, decrease in goodwill | 42 | ||||||||||||
Measurement period adjustments, increase in intangible assets | 46 | ||||||||||||
Measurement period adjustments, decrease in other net assets | $ 4 | ||||||||||||
Intangible assets | 127 | ||||||||||||
Goodwill | 82 | ||||||||||||
Other net assets | 4 | ||||||||||||
Goodwill, expected tax deductible amount | 59 | ||||||||||||
Pineapple Payments | Acquired software and technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 6 | ||||||||||||
Pineapple Payments | Customer relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | $ 90 | ||||||||||||
Ondot | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payments for acquisitions of businesses | $ 271 | ||||||||||||
Acquired cash | 13 | ||||||||||||
Measurement period adjustments, decrease in goodwill | 37 | ||||||||||||
Intangible assets | 142 | ||||||||||||
Goodwill | 173 | ||||||||||||
Pre-tax gain from remeasurement | 12 | ||||||||||||
Measurement period adjustments, deferred income taxes | 8 | ||||||||||||
Ondot | Acquired software and technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Measurement period adjustments, increase in intangible assets | 30 | ||||||||||||
Intangible assets | 90 | ||||||||||||
Ondot | Customer relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Measurement period adjustments, increase in intangible assets | $ 15 | ||||||||||||
Intangible assets | $ 35 | ||||||||||||
SpendLabs and Radius8 | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payments for acquisitions of businesses | $ 46 | ||||||||||||
Intangible assets | 19 | ||||||||||||
Goodwill | $ 28 | ||||||||||||
MerchantPro, Bypass, and Inlet | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payments for acquisitions of businesses | $ 167 | ||||||||||||
Acquired cash | 2 | ||||||||||||
Earn-out provisions estimated fair value | 45 | ||||||||||||
Intangible assets | 81 | ||||||||||||
Goodwill | 90 | ||||||||||||
Goodwill, expected tax deductible amount | 36 | ||||||||||||
Net assumed liabilities | 4 | ||||||||||||
MerchantPro, Bypass, and Inlet | Acquired software and technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 14 | ||||||||||||
MerchantPro, Bypass, and Inlet | Customer relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | $ 32 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Gross Carrying Amount and Weighted-Average Useful Life Allocated to Intangible Assets (Details) - USD ($) $ in Millions | May 04, 2021 | Jan. 22, 2021 | May 11, 2021 |
Pineapple Payments | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 127 | ||
Weighted-Average Useful Life (in years) | 14 years | ||
Pineapple Payments | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 90 | ||
Weighted-Average Useful Life (in years) | 17 years | ||
Pineapple Payments | Residual buyouts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 20 | ||
Weighted-Average Useful Life (in years) | 8 years | ||
Pineapple Payments | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 6 | ||
Weighted-Average Useful Life (in years) | 7 years | ||
Pineapple Payments | Non-compete agreements and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 11 | ||
Weighted-Average Useful Life (in years) | 5 years | ||
Ondot | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 142 | ||
Weighted-Average Useful Life (in years) | 6 years | ||
Ondot | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 35 | ||
Weighted-Average Useful Life (in years) | 6 years | ||
Ondot | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 90 | ||
Weighted-Average Useful Life (in years) | 6 years | ||
Ondot | Non-compete agreements and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 17 | ||
Weighted-Average Useful Life (in years) | 4 years | ||
MerchantPro, Bypass, and Inlet | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 81 | ||
Weighted-Average Useful Life (in years) | 11 years | ||
MerchantPro, Bypass, and Inlet | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 32 | ||
Weighted-Average Useful Life (in years) | 14 years | ||
MerchantPro, Bypass, and Inlet | Residual buyouts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 35 | ||
Weighted-Average Useful Life (in years) | 9 years | ||
MerchantPro, Bypass, and Inlet | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 14 | ||
Weighted-Average Useful Life (in years) | 8 years |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Jan. 22, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 36,303 | $ 36,322 | |
Ondot | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 13 | ||
Receivables and other assets | 9 | ||
Intangible assets | 142 | ||
Goodwill | 173 | ||
Payables and other liabilities | (31) | ||
Total consideration | 306 | ||
Less: Fair value of previously held equity interest | (22) | ||
Total purchase price | $ 284 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets by Class (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 20,997 | $ 20,696 |
Accumulated Amortization | 6,729 | 5,338 |
Net Book Value | 14,268 | 15,358 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,059 | 15,271 |
Accumulated Amortization | 4,712 | 3,668 |
Net Book Value | 10,347 | 11,603 |
Acquired software and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,380 | 2,562 |
Accumulated Amortization | 827 | 879 |
Net Book Value | 1,553 | 1,683 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 614 | 618 |
Accumulated Amortization | 213 | 172 |
Net Book Value | 401 | 446 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,132 | 913 |
Accumulated Amortization | 443 | 207 |
Net Book Value | 689 | 706 |
Capitalized software and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,812 | 1,332 |
Accumulated Amortization | 534 | 412 |
Net Book Value | $ 1,278 | $ 920 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 642 | $ 623 | $ 1,937 | $ 1,934 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accelerated amortization expense | $ 18 | $ 53 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value On a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash flow hedges, assets | $ 6 | $ 9 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | 46 |
Contingent consideration | 30 | 0 |
Contingent debt guarantee | $ 5 | $ 8 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Carrying value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Total debt | $ 20,100,000,000 | $ 20,100,000,000 | $ 19,900,000,000 | ||
Fair Value, Inputs, Level 2 | Fair value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Total debt | 21,700,000,000 | 21,700,000,000 | 22,500,000,000 | ||
Fair Value, Inputs, Level 3 | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Contingent liability | 5,000,000 | 5,000,000 | 8,000,000 | ||
Line of Credit | Revolving credit facility | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Maximum borrowing capacity | 3,500,000,000 | 3,500,000,000 | |||
Lending Joint Ventures | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Other (expense) income | 3,000,000 | $ 4,000,000 | 9,000,000 | $ 10,000,000 | |
Variable-Rate Term Loan Facilities Due March 2023 | Line of Credit | Term loan facility | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Maximum borrowing capacity | 370,000,000 | 370,000,000 | |||
Variable-Rate Revolving Credit Facilities Due March 2023 | Line of Credit | Revolving credit facility | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Maximum borrowing capacity | 45,000,000 | 45,000,000 | |||
Outstanding borrowings | 13,000,000 | 13,000,000 | |||
Financial Guarantee | Lending Joint Ventures | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Carrying value of non-contingent liability | $ 12,000,000 | $ 12,000,000 | $ 18,000,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 496 | $ 437 |
Client deposits | 755 | 702 |
Accrued compensation and benefits | 409 | 419 |
Accrued taxes | 205 | 130 |
Accrued interest | 172 | 220 |
Other accrued expenses | 1,303 | 1,278 |
Total | $ 3,340 | $ 3,186 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Short-term debt and current maturities of long-term debt: | ||
Total short-term debt and current maturities of long-term debt | $ 449 | $ 384 |
Finance lease and other financing obligations | 294 | 240 |
Long-term debt: | ||
Unamortized discount and deferred financing costs | (131) | (155) |
Finance lease and other financing obligations | 581 | 504 |
Total long-term debt | 20,540 | 20,300 |
Line of Credit | Term loan facility | ||
Long-term debt: | ||
Long-term debt | 355 | 1,250 |
Line of Credit | Revolving credit facility | ||
Long-term debt: | ||
Long-term debt | $ 107 | 22 |
Senior Notes | 4.750% senior notes due June 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.75% | |
Long-term debt: | ||
Long-term debt | $ 0 | 400 |
Senior Notes | 3.500% senior notes due October 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.50% | |
Long-term debt: | ||
Long-term debt | $ 700 | 700 |
Senior Notes | 0.375% senior notes due July 2023 (Euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 0.375% | |
Long-term debt: | ||
Long-term debt | $ 579 | 612 |
Senior Notes | 3.800% senior notes due October 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.80% | |
Long-term debt: | ||
Long-term debt | $ 1,000 | 1,000 |
Senior Notes | 2.750% senior notes due July 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.75% | |
Long-term debt: | ||
Long-term debt | $ 2,000 | 2,000 |
Senior Notes | 3.850% senior notes due June 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.85% | |
Long-term debt: | ||
Long-term debt | $ 900 | 900 |
Senior Notes | 2.250% senior notes due July 2025 (British Pound-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.25% | |
Long-term debt: | ||
Long-term debt | $ 707 | 709 |
Senior Notes | 3.200% senior notes due July 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.20% | |
Long-term debt: | ||
Long-term debt | $ 2,000 | 2,000 |
Senior Notes | 2.250% senior notes due June 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.25% | |
Long-term debt: | ||
Long-term debt | $ 1,000 | 1,000 |
Senior Notes | 1.125% senior notes due July 2027 (Euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.125% | |
Long-term debt: | ||
Long-term debt | $ 579 | 612 |
Senior Notes | 4.200% senior notes due October 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.20% | |
Long-term debt: | ||
Long-term debt | $ 1,000 | 1,000 |
Senior Notes | 3.500% senior notes due July 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.50% | |
Long-term debt: | ||
Long-term debt | $ 3,000 | 3,000 |
Senior Notes | 2.650% senior notes due June 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.65% | |
Long-term debt: | ||
Long-term debt | $ 1,000 | 1,000 |
Senior Notes | 1.625% senior notes due July 2030 (Euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.625% | |
Long-term debt: | ||
Long-term debt | $ 579 | 612 |
Senior Notes | 3.000% senior notes due July 2031 (British Pound-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.00% | |
Long-term debt: | ||
Long-term debt | $ 707 | 709 |
Senior Notes | 4.400% senior notes due July 2049 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.40% | |
Long-term debt: | ||
Long-term debt | $ 2,000 | 2,000 |
Receivable securitized loan | ||
Long-term debt: | ||
Long-term debt | 500 | 425 |
U.S. commercial paper notes | ||
Long-term debt: | ||
Long-term debt | 1,377 | 0 |
Foreign lines of credit | ||
Short-term debt and current maturities of long-term debt: | ||
Total short-term debt and current maturities of long-term debt | $ 155 | $ 144 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | ||
May 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
U.S. commercial paper notes | |||
Debt Instrument [Line Items] | |||
Debt maturities (in days) | 397 days | ||
Outstanding borrowings | $ 1,377,000,000 | $ 0 | |
Weighted average interest rate | 0.189% | ||
Senior Notes | 4.750% senior notes due June 2021 | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 0 | 400,000,000 | |
Debt instrument, interest rate | 4.75% | ||
Revolving credit facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 3,500,000,000 | ||
Outstanding borrowings | $ 107,000,000 | $ 22,000,000 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Narrative (Details) $ in Millions | Sep. 30, 2021USD ($)noncontrollingInterest |
Noncontrolling Interest [Line Items] | |
Redemption value | $ | $ 260 |
First Data Joint Venture | |
Noncontrolling Interest [Line Items] | |
Ownership percentage by noncontrolling owner | 1.00% |
First Data | |
Noncontrolling Interest [Line Items] | |
Number of redeemable noncontrolling interests | noncontrollingInterest | 2 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interest Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Balance at beginning of period | $ 259 | $ 262 | |
Distributions paid to redeemable noncontrolling interests | $ (12) | (32) | (31) |
Share of income | 33 | 29 | |
Balance at end of period | $ 260 | $ 260 | $ 260 |
Equity (Details)
Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | $ 32,532 | $ 33,028 | $ 33,070 | $ 34,595 | |
Net income (loss) | 435 | 265 | 1,015 | 633 | |
Measurement period adjustments related to First Data acquisition | (126) | ||||
Distributions paid to noncontrolling interests | 0 | (1) | (30) | ||
Net adjustment to noncontrolling interests from dissolution | (762) | (762) | |||
Other comprehensive income (loss) | (344) | (170) | (287) | (623) | |
Share-based compensation | 63 | 84 | 190 | 286 | |
Shares issued under stock plans | 3 | (16) | (98) | (64) | |
Purchases of treasury stock | (365) | (1,565) | (1,435) | ||
Retirement of treasury stock | 0 | ||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 | ||||
Balance at end of period | 32,324 | 32,429 | 32,324 | 32,429 | $ 34,595 |
Net income attributable to redeemable noncontrolling interest | 11 | $ 11 | 33 | 29 | |
Distributions paid to redeemable noncontrolling interests | 12 | 32 | $ 31 | ||
Distributions to BANA related to the BAMS dissolution | $ 8 | $ 8 | |||
Common Shares | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period (in shares) | 784 | 791 | 789 | 791 | |
Balance at beginning of period | $ 8 | $ 8 | $ 8 | $ 8 | |
Retirement of treasury stock (in shares) | (5) | ||||
Balance at end of period (in shares) | 784 | 791 | 784 | 791 | 791 |
Balance at end of period | $ 8 | $ 8 | $ 8 | $ 8 | $ 8 |
Treasury Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period (in shares) | 123 | 122 | 121 | 112 | |
Balance at beginning of period | $ (4,866) | $ (4,429) | $ (4,375) | $ (3,118) | |
Shares issued under stock plans (in shares) | (2) | (1) | (5) | (5) | |
Shares issued under stock plans | $ 52 | $ 32 | $ 173 | $ 156 | |
Purchases of treasury stock (in shares) | 3 | 13 | 14 | ||
Purchases of treasury stock | $ (365) | $ (1,565) | $ (1,435) | ||
Retirement of treasury stock (in shares) | (5) | ||||
Retirement of treasury stock | $ 588 | ||||
Balance at end of period (in shares) | 124 | 121 | 124 | 121 | 112 |
Balance at end of period | $ (5,179) | $ (4,397) | $ (5,179) | $ (4,397) | $ (3,118) |
Additional Paid-In Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | 22,960 | 23,771 | 23,643 | 23,741 | |
Net adjustment to noncontrolling interests from dissolution | (36) | (36) | |||
Share-based compensation | 63 | 84 | 190 | 286 | |
Shares issued under stock plans | (49) | (48) | (271) | (220) | |
Retirement of treasury stock | (588) | ||||
Balance at end of period | 22,974 | 23,771 | 22,974 | 23,771 | 23,741 |
Accumulated Other Comprehensive Loss | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | (323) | (644) | (387) | (180) | |
Other comprehensive income (loss) | (326) | (187) | (262) | (651) | |
Balance at end of period | (649) | (831) | (649) | (831) | (180) |
Retained Earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | 14,014 | 12,877 | 13,441 | 12,528 | |
Net income (loss) | 428 | 264 | 1,001 | 658 | |
Balance at end of period | 14,442 | 13,141 | 14,442 | 13,141 | 12,528 |
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | 739 | 1,445 | 740 | 1,616 | |
Net income (loss) | 7 | 1 | 14 | (25) | |
Measurement period adjustments related to First Data acquisition | (126) | ||||
Distributions paid to noncontrolling interests | 0 | (1) | (30) | ||
Net adjustment to noncontrolling interests from dissolution | (726) | (726) | |||
Other comprehensive income (loss) | (18) | 17 | (25) | 28 | |
Balance at end of period | $ 728 | $ 737 | $ 728 | 737 | 1,616 |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | (45) | ||||
Balance at end of period | (45) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | $ (45) | ||||
Balance at end of period | $ (45) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 32,532 | $ 33,028 | $ 33,070 | $ 34,595 |
Total other comprehensive loss | (344) | (170) | (287) | (623) |
Balance at end of period | 32,324 | 32,429 | 32,324 | 32,429 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (323) | (644) | (387) | (180) |
Other comprehensive income (loss) before reclassifications | (328) | (191) | (268) | (663) |
Amounts reclassified from accumulated other comprehensive loss | 2 | 4 | 6 | 12 |
Total other comprehensive loss | (326) | (187) | (262) | (651) |
Balance at end of period | (649) | (831) | (649) | (831) |
Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (116) | (138) | (121) | (141) |
Other comprehensive income (loss) before reclassifications | 3 | 6 | 4 | 1 |
Amounts reclassified from accumulated other comprehensive loss | 2 | 4 | 6 | 12 |
Total other comprehensive loss | 5 | 10 | 10 | 13 |
Balance at end of period | (111) | (128) | (111) | (128) |
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (196) | (500) | (254) | (33) |
Other comprehensive income (loss) before reclassifications | (331) | (197) | (273) | (664) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive loss | (331) | (197) | (273) | (664) |
Balance at end of period | (527) | (697) | (527) | (697) |
Pension Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (11) | (6) | (12) | (6) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 1 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive loss | 0 | 0 | 1 | 0 |
Balance at end of period | $ (11) | $ (6) | $ (11) | $ (6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Estimate of gains related to foreign currency exchange contracts during the next 12 months | $ 5 | $ 5 | |||||
Payment from settlement of cash flow hedges, recorded in AOCL, net of tax | $ 183 | 3 | $ 6 | 4 | $ 1 | ||
Estimated interest expense related to settled interest rate hedge contracts during the next twelve months | 20 | 20 | |||||
Foreign currency translation adjustment | 71 | $ (92) | 77 | $ (38) | |||
Foreign currency forward exchange contracts | Indian Rupee | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Notional amount of derivatives | 280 | 280 | $ 259 | ||||
Total fair value of cash flow hedge derivatives | $ 6 | $ 6 | $ 9 | ||||
Treasury Lock | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Derivative liability, notional amount | $ 5,000 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 63 | $ 84 | $ 190 | $ 286 |
Unrecognized compensation cost | $ 321 | $ 321 | ||
Weighted-average period unrecognized compensation cost will be recognized (in years) | 2 years 1 month 6 days | |||
Share-based awards, stock options, exercised (in shares) | 3,510 | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based awards, stock options, exercised (in shares) | 3,500 | 2,200 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Shares | |
Stock options outstanding - balance at beginning of period (in shares) | shares | 14,689 |
Granted (in shares) | shares | 140 |
Forfeited (in shares) | shares | (59) |
Exercised (in shares) | shares | (3,510) |
Stock options outstanding - balance at end of period (in shares) | shares | 11,260 |
Stock options exercisable (in shares) | shares | 9,692 |
Weighted-Average Exercise Price | |
Stock options outstanding - balance at beginning of period (in dollars per shares) | $ / shares | $ 50.82 |
Granted (in dollars per share) | $ / shares | 110.41 |
Forfeited (in dollars per share) | $ / shares | 107.83 |
Exercised (in dollars per share) | $ / shares | 36.45 |
Stock options outstanding - balance at end of period (in dollars per shares) | $ / shares | 55.75 |
Stock options exercisable (in dollars per share) | $ / shares | $ 47.71 |
Weighted-Average Remaining Contractual Term (Years) | |
Stock options outstanding (in years) | 4 years 4 months 28 days |
Stock options exercisable (in years) | 3 years 9 months 10 days |
Aggregate Intrinsic Value (In millions) | |
Stock options outstanding | $ | $ 600 |
Stock options exercisable | $ | $ 591 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Restricted Stock and Performance Activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Restricted Stock Units and Awards | |
Shares | |
Balance at beginning of period (in shares) | shares | 4,797 |
Granted (in shares) | shares | 2,410 |
Forfeited (in shares) | shares | (279) |
Vested (in shares) | shares | (2,302) |
Balance at end of period (in shares) | shares | 4,626 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 98.29 |
Granted (in dollars per share) | $ / shares | 104.92 |
Forfeited (in dollars per share) | $ / shares | 104.25 |
Vested (in dollars per share) | $ / shares | 98.94 |
Balance at end of period (in dollars per share) | $ / shares | $ 100.96 |
Performance Share Units | |
Shares | |
Balance at beginning of period (in shares) | shares | 1,821 |
Granted (in shares) | shares | 255 |
Forfeited (in shares) | shares | (92) |
Vested (in shares) | shares | (526) |
Balance at end of period (in shares) | shares | 1,458 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 95.20 |
Granted (in dollars per share) | $ / shares | 108.68 |
Forfeited (in dollars per share) | $ / shares | 97.58 |
Vested (in dollars per share) | $ / shares | 92.72 |
Balance at end of period (in dollars per share) | $ / shares | $ 96.22 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Integration activities charges | $ 30 | $ 41 | $ 58 | $ 181 | ||
Non-cash impairment charge | 1 | 4 | 6 | 44 | ||
Accelerated amortization expense included within finance lease expense | 17 | 62 | ||||
Accelerated amortization expense | 18 | 53 | ||||
Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other separation costs | 27 | 28 | 45 | 105 | ||
Employee severance and other separation costs accrual | 24 | 25 | 24 | 25 | $ 27 | $ 14 |
Share-based compensation costs | $ 2 | $ 9 | $ 7 | $ 32 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Changes in Reserve (Details) - Employee Severance - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 27 | $ 14 | ||
Severance and other separation costs | $ 27 | $ 28 | 45 | 105 |
Non-cash adjustments | 0 | (6) | ||
Cash payments | (48) | (88) | ||
Restructuring reserve, ending balance | $ 24 | $ 25 | $ 24 | $ 25 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 54 | $ 124 | $ 300 | $ 176 |
Effective income tax rate | 11.30% | 32.50% | 23.70% | 21.10% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Feb. 18, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Schedule of Equity Method Investments [Line Items] | |||||
Effective income tax rate | 11.30% | 32.50% | 23.70% | 21.10% | |
Income tax expense related to the revaluation of certain net deferred tax liabilities | $ 32 | $ 134 | |||
Tax expense | $ 112 | ||||
Unrecognized tax benefits | $ 136 | 136 | |||
Decrease in unrecognized tax benefits reasonably possible | $ 26 | $ 26 | |||
Investment Services Business | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Controlling interest sold (as a percent) | 60.00% | ||||
Disposal Group, Disposed of by Sale | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Tax expense | 112 | ||||
Disposal Group, Disposed of by Sale | Investment Services Business | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Pre-tax gain on sale | $ 428 | ||||
Controlling interest sold (as a percent) | 60.00% |
Shares Used in Computing Net _3
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. - Schedule of Weighted-Average Number of Shares (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – basic (in shares) | 661.4 | 669.8 | 664.6 | 672.6 |
Common stock equivalents (in shares) | 8.3 | 10.5 | 9.5 | 11.5 |
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – diluted (in shares) | 669.7 | 680.3 | 674.1 | 684.1 |
Shares Used in Computing Net _4
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Stock options excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive (in shares) | 1.6 | 2.6 | 1.5 | 2 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 533 | $ 548 |
Income taxes paid | 555 | 143 |
Distribution of nonmonetary assets | 0 | 726 |
Software obtained under financing arrangements | 143 | 130 |
Right-of-use assets obtained in exchange for lease liabilities - operating leases | 75 | 2 |
Right-of-use assets obtained in exchange for lease liabilities - finance leases | $ 183 | $ 331 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | |||
Subscriber funds | $ 1,000 | $ 1,700 | |
First Data | First Data Subsidiary Merchant Matters | |||
Loss Contingencies [Line Items] | |||
Payment for legal settlement | 28 | $ 40 | |
Loss contingency accrual | 15 | $ 32 | |
Minimum | First Data | First Data Subsidiary Merchant Matters | |||
Loss Contingencies [Line Items] | |||
Estimated range of exposure | 0 | ||
Maximum | First Data | First Data Subsidiary Merchant Matters | |||
Loss Contingencies [Line Items] | |||
Estimated range of exposure | $ 65 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Millions, $ in Millions | May 03, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | May 04, 2021 | May 02, 2021 | Dec. 31, 2020 |
Equity investments | ||||||||
Related Party Transaction [Line Items] | ||||||||
Amounts due from unconsolidated merchant alliances | $ 38 | $ 38 | $ 37 | |||||
Related Party Fees | Equity investments | ||||||||
Related Party Transaction [Line Items] | ||||||||
Processing, administrative, and other fees | 46 | $ 62 | 160 | $ 174 | ||||
New Omaha | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares to be repurchased (in shares) | 5 | |||||||
Share repurchase amount | $ 588 | |||||||
New Omaha | Fiserv | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage by noncontrolling owner | 9.00% | 13.00% | ||||||
Merchant Alliances | Related Party Fees | Equity investments | ||||||||
Related Party Transaction [Line Items] | ||||||||
Processing, administrative, and other fees | 42 | 47 | 132 | 134 | ||||
Lending Solutions Business, Investment Services Business, and InvestCloud Holdings | Related Party Fees | Affiliated entities | ||||||||
Related Party Transaction [Line Items] | ||||||||
Processing, administrative, and other fees | $ 6 | $ 16 | $ 32 | $ 43 | ||||
Fiserv | New Omaha | ||||||||
Related Party Transaction [Line Items] | ||||||||
Secondary public offering (in shares) | 23 |
Business Segment Information -
Business Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 4,163 | $ 3,786 | $ 11,969 | $ 11,020 | |
Operating income (loss) | 636 | 542 | 1,755 | 1,336 | |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 215 | 218 | 642 | 690 | |
Operating income (loss) | (834) | (745) | (2,352) | (2,082) | |
Acceptance | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,716 | 1,454 | 4,779 | 4,078 | |
Operating income (loss) | 552 | 423 | 1,463 | 985 | |
Fintech | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 761 | 727 | 2,251 | 2,159 | |
Operating income (loss) | 275 | 265 | 794 | 721 | |
Payments | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,471 | 1,387 | 4,297 | 4,093 | |
Operating income (loss) | 643 | 599 | 1,850 | 1,712 | |
Processing and services revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | [1] | 3,407 | 3,153 | 9,822 | 9,118 |
Processing and services revenue | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 4 | 10 | 26 | 51 | |
Processing and services revenue | Acceptance | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,458 | 1,256 | 4,079 | 3,495 | |
Processing and services revenue | Fintech | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 718 | 684 | 2,115 | 2,032 | |
Processing and services revenue | Payments | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,227 | 1,203 | 3,602 | 3,540 | |
Product revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 756 | 633 | 2,147 | 1,902 | |
Product revenue | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 211 | 208 | 616 | 639 | |
Product revenue | Acceptance | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 258 | 198 | 700 | 583 | |
Product revenue | Fintech | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 43 | 43 | 136 | 127 | |
Product revenue | Payments | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 244 | $ 184 | $ 695 | $ 553 | |
[1] | Includes processing and other fees charged to related party investments accounted for under the equity method of $46 million and $62 million for the three months ended September 30, 2021 and 2020, respectively, and $160 million and $174 million for the nine months ended September 30, 2021 and 2020, respectively (see Note 18). |