x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended June 30, 2017 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Georgia | 37-1490331 | |
(State or other jurisdiction | (I.R.S. Employer Identification No.) | |
of incorporation or organization) | ||
601 Riverside Avenue | ||
Jacksonville, Florida | 32204 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o | Emerging growth company o |
Page | |
EX-31.1 | |
EX-31.2 | |
EX-32.1 | |
EX-32.2 | |
EX-101 INSTANCE DOCUMENT | |
EX-101 SCHEMA DOCUMENT | |
EX-101 CALCULATION LINKBASE DOCUMENT | |
EX-101 DEFINITION LINKBASE DOCUMENT | |
EX-101 LABELS LINKBASE DOCUMENT | |
EX-101 PRESENTATION LINKBASE DOCUMENT |
June 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 786 | $ | 683 | |||
Settlement deposits | 433 | 520 | |||||
Trade receivables, net of allowance for doubtful accounts of $39 and $41 as of June 30, 2017 and December 31, 2016, respectively | 1,456 | 1,639 | |||||
Settlement receivables | 199 | 175 | |||||
Other receivables | 164 | 65 | |||||
Prepaid expenses and other current assets | 271 | 236 | |||||
Deferred income taxes | — | 101 | |||||
Assets held for sale | 753 | 863 | |||||
Total current assets | 4,062 | 4,282 | |||||
Property and equipment, net | 584 | 626 | |||||
Goodwill | 13,645 | 14,178 | |||||
Intangible assets, net | 4,250 | 4,664 | |||||
Computer software, net | 1,706 | 1,608 | |||||
Deferred contract costs, net | 329 | 310 | |||||
Other noncurrent assets | 394 | 363 | |||||
Total assets | $ | 24,970 | $ | 26,031 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 969 | $ | 1,146 | |||
Settlement payables | 632 | 714 | |||||
Deferred revenues | 707 | 680 | |||||
Current portion of long-term debt | 297 | 332 | |||||
Liabilities held for sale | 124 | 279 | |||||
Total current liabilities | 2,729 | 3,151 | |||||
Long-term debt, excluding current portion | 9,415 | 10,146 | |||||
Deferred income taxes | 2,372 | 2,484 | |||||
Deferred revenues | 22 | 19 | |||||
Other long-term liabilities | 427 | 386 | |||||
Total liabilities | 14,965 | 16,186 | |||||
Equity: | |||||||
FIS stockholders’ equity: | |||||||
Preferred stock, $0.01 par value, 200 shares authorized, none issued and outstanding as of June 30, 2017 and December 31, 2016 | — | — | |||||
Common stock, $0.01 par value, 600 shares authorized, 432 and 431 shares issued as of June 30, 2017 and December 31, 2016 | 4 | 4 | |||||
Additional paid in capital | 10,447 | 10,380 | |||||
Retained earnings | 3,377 | 3,299 | |||||
Accumulated other comprehensive earnings (loss) | (385 | ) | (331 | ) | |||
Treasury stock, 100 and 103 shares as of June 30, 2017 and December 31, 2016, respectively, at cost | (3,552 | ) | (3,611 | ) | |||
Total FIS stockholders’ equity | 9,891 | 9,741 | |||||
Noncontrolling interest | 114 | 104 | |||||
Total equity | 10,005 | 9,845 | |||||
Total liabilities and equity | $ | 24,970 | $ | 26,031 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Processing and services revenues | $ | 2,341 | $ | 2,305 | $ | 4,596 | $ | 4,486 | |||||||
Cost of revenues | 1,612 | 1,600 | 3,195 | 3,153 | |||||||||||
Gross profit | 729 | 705 | 1,401 | 1,333 | |||||||||||
Selling, general, and administrative expenses | 370 | 422 | 783 | 866 | |||||||||||
Operating income | 359 | 283 | 618 | 467 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (91 | ) | (93 | ) | (183 | ) | (186 | ) | |||||||
Other income (expense), net | 4 | (1 | ) | 60 | (2 | ) | |||||||||
Total other income (expense), net | (87 | ) | (94 | ) | (123 | ) | (188 | ) | |||||||
Earnings from continuing operations before income taxes | 272 | 189 | 495 | 279 | |||||||||||
Provision for income taxes | 132 | 66 | 211 | 97 | |||||||||||
Earnings from continuing operations, net of tax | 140 | 123 | 284 | 182 | |||||||||||
Earnings (loss) from discontinued operations, net of tax | — | 1 | — | 1 | |||||||||||
Net earnings | 140 | 124 | 284 | 183 | |||||||||||
Net (earnings) loss attributable to noncontrolling interest | (8 | ) | (3 | ) | (14 | ) | (7 | ) | |||||||
Net earnings attributable to FIS common stockholders | $ | 132 | $ | 121 | $ | 270 | $ | 176 | |||||||
Net earnings per share — basic from continuing operations attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.82 | $ | 0.54 | |||||||
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders | — | — | — | — | |||||||||||
Net earnings per share — basic attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.82 | $ | 0.54 | |||||||
Weighted average shares outstanding — basic | 330 | 325 | 329 | 325 | |||||||||||
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders | $ | 0.40 | $ | 0.36 | $ | 0.81 | $ | 0.53 | |||||||
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders | — | — | — | — | |||||||||||
Net earnings per share — diluted attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.81 | $ | 0.54 | |||||||
Weighted average shares outstanding — diluted | 334 | 329 | 334 | 328 | |||||||||||
Cash dividends paid per share | $ | 0.29 | $ | 0.26 | $ | 0.58 | $ | 0.52 | |||||||
Amounts attributable to FIS common stockholders: | |||||||||||||||
Net earnings from continuing operations | $ | 132 | $ | 120 | $ | 270 | $ | 175 | |||||||
Net earnings (loss) from discontinued operations | — | 1 | — | 1 | |||||||||||
Net earnings attributable to FIS common stockholders | $ | 132 | $ | 121 | $ | 270 | $ | 176 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
Net earnings | $ | 140 | $ | 124 | $ | 284 | $ | 183 | |||||||||||||||||||||||
Other comprehensive earnings, before tax: | |||||||||||||||||||||||||||||||
Unrealized gain (loss) on investments and derivatives | $ | (33 | ) | $ | (3 | ) | $ | (33 | ) | $ | (9 | ) | |||||||||||||||||||
Reclassification adjustment for gains (losses) included in net earnings | — | 2 | — | 4 | |||||||||||||||||||||||||||
Unrealized gain (loss) on investments and derivatives, net | (33 | ) | (1 | ) | (33 | ) | (5 | ) | |||||||||||||||||||||||
Foreign currency translation adjustments | (62 | ) | (3 | ) | (26 | ) | 51 | ||||||||||||||||||||||||
Minimum pension liability adjustment | (10 | ) | — | (10 | ) | — | |||||||||||||||||||||||||
Other comprehensive earnings (loss), before tax: | (105 | ) | (4 | ) | (69 | ) | 46 | ||||||||||||||||||||||||
Provision for income tax expense (benefit) related to items of other comprehensive earnings | (13 | ) | (2 | ) | (13 | ) | (6 | ) | |||||||||||||||||||||||
Other comprehensive earnings (loss), net of tax | $ | (92 | ) | (92 | ) | $ | (2 | ) | (2 | ) | $ | (56 | ) | (56 | ) | $ | 52 | 52 | |||||||||||||
Comprehensive (loss) earnings: | 48 | 122 | 228 | 235 | |||||||||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (8 | ) | (3 | ) | (14 | ) | (7 | ) | |||||||||||||||||||||||
Other comprehensive (earnings) losses attributable to noncontrolling interest | 5 | (12 | ) | 2 | (19 | ) | |||||||||||||||||||||||||
Comprehensive earnings (loss) attributable to FIS common stockholders | $ | 45 | $ | 107 | $ | 216 | $ | 209 |
Amount | |||||||||||||||||||||||||||||||||
FIS Stockholders | |||||||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||||||
Number of shares | Additional | other | |||||||||||||||||||||||||||||||
Common | Treasury | Common | paid in | Retained | comprehensive | Treasury | Noncontrolling | Total | |||||||||||||||||||||||||
shares | shares | stock | capital | earnings | earnings | stock | interest | equity | |||||||||||||||||||||||||
Balances, December 31, 2016 | 431 | (103 | ) | $ | 4 | $ | 10,380 | $ | 3,299 | $ | (331 | ) | $ | (3,611 | ) | $ | 104 | $ | 9,845 | ||||||||||||||
Issuance of restricted stock | 1 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Exercise of stock options | — | 3 | — | 29 | — | — | 77 | — | 106 | ||||||||||||||||||||||||
Treasury shares held for taxes due upon exercise of stock options | — | — | — | (25 | ) | — | — | (18 | ) | — | (43 | ) | |||||||||||||||||||||
Stock-based compensation | — | — | — | 63 | — | — | — | — | 63 | ||||||||||||||||||||||||
Cash dividends paid ($0.29 per share per quarter) and other distributions | — | — | — | — | (192 | ) | — | — | (2 | ) | (194 | ) | |||||||||||||||||||||
Net earnings | — | — | — | — | 270 | — | — | 14 | 284 | ||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (54 | ) | — | (2 | ) | (56 | ) | |||||||||||||||||||||
Balances, June 30, 2017 | 432 | (100 | ) | $ | 4 | $ | 10,447 | $ | 3,377 | $ | (385 | ) | $ | (3,552 | ) | $ | 114 | $ | 10,005 |
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 284 | $ | 183 | |||
Adjustment to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 685 | 584 | |||||
Amortization of debt issue costs | 17 | 9 | |||||
Gain on sale of business | (88 | ) | — | ||||
Stock-based compensation | 61 | 68 | |||||
Deferred income taxes | (132 | ) | (82 | ) | |||
Excess income tax benefit from exercise of stock options | — | (19 | ) | ||||
Other operating activities | — | (2 | ) | ||||
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | |||||||
Trade receivables | 45 | 118 | |||||
Settlement activity | (19 | ) | 2 | ||||
Prepaid expenses and other assets | (52 | ) | (54 | ) | |||
Deferred contract costs | (70 | ) | (61 | ) | |||
Deferred revenue | 9 | 132 | |||||
Accounts payable, accrued liabilities, and other liabilities | (212 | ) | (58 | ) | |||
Net cash provided by operating activities | 528 | 820 | |||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | (69 | ) | (70 | ) | |||
Additions to computer software | (228 | ) | (223 | ) | |||
Proceeds from sale of business | 846 | — | |||||
Other investing activities, net | (3 | ) | (3 | ) | |||
Net cash provided by (used in) investing activities | 546 | (296 | ) | ||||
Cash flows from financing activities: | |||||||
Borrowings | 3,698 | 2,727 | |||||
Repayment of borrowings | (4,557 | ) | (3,060 | ) | |||
Excess income tax benefit from exercise of stock options | — | 19 | |||||
Proceeds from exercise of stock options | 109 | 68 | |||||
Treasury stock activity | (43 | ) | (26 | ) | |||
Dividends paid | (192 | ) | (171 | ) | |||
Other financing activities, net | (5 | ) | (18 | ) | |||
Net cash used in financing activities | (990 | ) | (461 | ) | |||
Effect of foreign currency exchange rate changes on cash | 19 | 20 | |||||
Net increase in cash and cash equivalents | 103 | 83 | |||||
Cash and cash equivalents, beginning of period | 683 | 682 | |||||
Cash and cash equivalents, end of period | $ | 786 | $ | 765 | |||
Supplemental cash flow information: | |||||||
Cash paid for interest | $ | 195 | $ | 183 | |||
Cash paid for income taxes | $ | 452 | $ | 141 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Cost | Accumulated depreciation and amortization | Net | Cost | Accumulated depreciation and amortization | Net | ||||||||||||||||||
Property and equipment | $ | 1,521 | $ | 937 | $ | 584 | $ | 1,488 | $ | 862 | $ | 626 | |||||||||||
Intangible assets | $ | 6,412 | $ | 2,162 | $ | 4,250 | $ | 6,547 | $ | 1,883 | $ | 4,664 | |||||||||||
Computer software | $ | 2,552 | $ | 846 | $ | 1,706 | $ | 2,376 | $ | 768 | $ | 1,608 |
Total | |||
Balance, December 31, 2016 | $ | 14,178 | |
Goodwill distributed through sale of non-strategic assets | (10 | ) | |
Goodwill relating to Capco included in assets held for sale | (474 | ) | |
Foreign currency adjustments | (49 | ) | |
Balance, June 30, 2017 | $ | 13,645 |
June 30, 2017 | December 31, 2016 | ||||||
2018 Term Loans (1) | $ | — | $ | 550 | |||
Senior Notes due June 2017, interest payable semi-annually at 1.450% | — | 300 | |||||
Senior Notes due April 2018, interest payable semi-annually at 2.000% | 250 | 250 | |||||
Senior Notes due October 2018, interest payable semi-annually at 2.850% | 750 | 750 | |||||
Senior Notes due October 2020, interest payable semi-annually at 3.625% | 1,750 | 1,750 | |||||
Senior Notes due August 2021, interest payable semi-annually at 2.250% | 750 | 750 | |||||
Senior Notes due March 2022, interest payable semi-annually at 5.000% | — | 700 | |||||
Senior Notes due October 2022, interest payable semi-annually at 4.500% | 500 | 500 | |||||
Senior Notes due April 2023, interest payable semi-annually at 3.500% | 1,000 | 1,000 | |||||
Senior Notes due June 2024, interest payable semi-annually at 3.875% | 700 | 700 | |||||
Senior Notes due October 2025, interest payable semi-annually at 5.000% | 1,500 | 1,500 | |||||
Senior Notes due August 2026, interest payable semi-annually at 3.000% | 1,250 | 1,250 | |||||
Senior Notes due August 2046, interest payable semi-annually at 4.500% | 500 | 500 | |||||
Revolving Loan (2) | 750 | 36 | |||||
Other | 12 | (58 | ) | ||||
9,712 | 10,478 | ||||||
Current portion | (297 | ) | (332 | ) | |||
Long-term debt, excluding current portion | $ | 9,415 | $ | 10,146 |
(1) | Interest on the 2018 Term Loans was generally payable at LIBOR plus an applicable margin of up to 1.75% based upon the Company's corporate credit ratings. The outstanding balance on the 2018 Term Loans was paid down as of June 30, 2017. |
(2) | Interest on the Revolving Loan is generally payable at LIBOR plus an applicable margin of up to 1.75% plus an unused commitment fee of up to 0.25%, each based upon the Company's corporate credit ratings. As of June 30, 2017, the weighted average interest rate on the Revolving Loan, excluding fees, was 2.44%. |
Total | ||||
2017 | $ | 31 | ||
2018 | 1,040 | |||
2019 | 37 | |||
2020 | 1,752 | |||
2021 | 1,501 | |||
Thereafter | 5,450 | |||
Total principal payments | 9,811 | |||
Debt issuance costs, net of accumulated amortization | (65 | ) | ||
Total long-term debt | $ | 9,746 |
June 30, | December 31, | |||||||||
Related Party | Balance sheet location | 2017 | 2016 | |||||||
Banco Bradesco | Trade receivables | $ | 55 | $ | 45 | |||||
Banco Bradesco | Accounts payable and accrued liabilities | 10 | 10 | |||||||
Banco Bradesco | Other long-term liabilities | 20 | 22 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net earnings from continuing operations attributable to FIS | $ | 132 | $ | 120 | $ | 270 | $ | 175 | |||||||
Net earnings (loss) from discontinued operations attributable to FIS | — | 1 | — | 1 | |||||||||||
Net earnings attributable to FIS common stockholders | $ | 132 | $ | 121 | $ | 270 | $ | 176 | |||||||
Weighted average shares outstanding — basic | 330 | 325 | 329 | 325 | |||||||||||
Plus: Common stock equivalent shares | 4 | 4 | 5 | 3 | |||||||||||
Weighted average shares outstanding — diluted | 334 | 329 | 334 | 328 | |||||||||||
Net earnings per share — basic from continuing operations attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.82 | $ | 0.54 | |||||||
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders | — | — | — | — | |||||||||||
Net earnings per share — basic attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.82 | $ | 0.54 | |||||||
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders | $ | 0.40 | $ | 0.36 | $ | 0.81 | $ | 0.53 | |||||||
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders | — | — | — | — | |||||||||||
Net earnings per share — diluted attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.81 | $ | 0.54 | |||||||
IFS | GFS | Corporate and Other | Total | ||||||||||||
Processing and services revenues | $ | 1,181 | $ | 1,076 | $ | 84 | $ | 2,341 | |||||||
Operating expenses | 792 | 812 | 378 | 1,982 | |||||||||||
Depreciation and amortization from continuing operations | 80 | 67 | 16 | 163 | |||||||||||
Purchase accounting amortization | — | — | 183 | 183 | |||||||||||
EBITDA | 469 | 331 | (95 | ) | 705 | ||||||||||
Acquisition deferred revenue adjustment | — | — | 2 | 2 | |||||||||||
Acquisition, integration and severance costs | — | — | 39 | 39 | |||||||||||
Adjusted EBITDA | $ | 469 | $ | 331 | $ | (54 | ) | 746 | |||||||
EBITDA | $ | 705 | |||||||||||||
Interest expense | 91 | ||||||||||||||
Depreciation and amortization from continuing operations | 163 | ||||||||||||||
Purchase accounting amortization | 183 | ||||||||||||||
Other income (expense) unallocated | 4 | ||||||||||||||
Provision for income taxes | 132 | ||||||||||||||
Net earnings attributable to noncontrolling interest | 8 | ||||||||||||||
Net earnings attributable to FIS common stockholders | $ | 132 | |||||||||||||
Capital expenditures (1) | $ | 81 | $ | 64 | $ | 2 | $ | 147 | |||||||
Total assets (2) | $ | 10,217 | $ | 9,172 | $ | 5,581 | $ | 24,970 | |||||||
Goodwill | $ | 7,662 | $ | 5,813 | $ | 170 | $ | 13,645 |
(1) | Capital expenditures for the three months ended June 30, 2017 include $5 million of capital leases. |
IFS | GFS | Corporate and Other | Total | ||||||||||||
Processing and services revenues | $ | 1,152 | $ | 1,048 | $ | 105 | $ | 2,305 | |||||||
Operating expenses | 771 | 822 | 429 | 2,022 | |||||||||||
Depreciation and amortization from continuing operations | 66 | 61 | 17 | 144 | |||||||||||
Purchase accounting amortization | — | — | 147 | 147 | |||||||||||
EBITDA | 447 | 287 | (160 | ) | 574 | ||||||||||
Acquisition deferred revenue adjustment | — | — | 59 | 59 | |||||||||||
Acquisition, integration and severance costs | — | — | 63 | 63 | |||||||||||
Adjusted EBITDA | $ | 447 | $ | 287 | $ | (38 | ) | $ | 696 | ||||||
EBITDA | $ | 574 | |||||||||||||
Interest expense | 93 | ||||||||||||||
Depreciation and amortization from continuing operations | 144 | ||||||||||||||
Purchase accounting amortization | 147 | ||||||||||||||
Other income (expense) unallocated | (1 | ) | |||||||||||||
Provision for income taxes | 66 | ||||||||||||||
Net earnings from discontinued operations | 1 | ||||||||||||||
Net earnings attributable to noncontrolling interest | 3 | ||||||||||||||
Net earnings attributable to FIS common stockholders | $ | 121 | |||||||||||||
Capital expenditures (1) | $ | 70 | $ | 67 | $ | 12 | $ | 149 | |||||||
Total assets (2) | $ | 10,179 | $ | 9,136 | $ | 7,065 | $ | 26,380 | |||||||
Goodwill | $ | 7,670 | $ | 6,440 | $ | 455 | $ | 14,565 |
(1) | Capital expenditures for the three months ended June 30, 2016 include $1 million of capital leases. |
(2) | Total assets as of June 30, 2016 exclude $4 million related to discontinued operations. |
IFS | GFS | Corporate and Other | Total | ||||||||||||
Processing and services revenues | $ | 2,310 | $ | 2,095 | $ | 191 | $ | 4,596 | |||||||
Operating expenses | 1,555 | 1,613 | 810 | 3,978 | |||||||||||
Depreciation and amortization from continuing operations | 156 | 132 | 32 | 320 | |||||||||||
Purchase accounting amortization | — | — | 366 | 366 | |||||||||||
EBITDA | 911 | 614 | (221 | ) | 1,304 | ||||||||||
Acquisition deferred revenue adjustment | — | — | 5 | 5 | |||||||||||
Acquisition, integration and severance costs | — | — | 119 | 119 | |||||||||||
Adjusted EBITDA | $ | 911 | $ | 614 | $ | (97 | ) | 1,428 | |||||||
EBITDA | $ | 1,304 | |||||||||||||
Interest expense | 183 | ||||||||||||||
Depreciation and amortization from continuing operations | 320 | ||||||||||||||
Purchase accounting amortization | 366 | ||||||||||||||
Other income (expense) unallocated | 60 | ||||||||||||||
Provision for income taxes | 211 | ||||||||||||||
Net earnings attributable to noncontrolling interest | 14 | ||||||||||||||
Net earnings attributable to FIS common stockholders | $ | 270 | |||||||||||||
Capital expenditures (1) | $ | 207 | $ | 158 | $ | 11 | $ | 376 |
(1) | Capital expenditures for the six months ended June 30, 2017 include $79 million of capital leases. |
IFS | GFS | Corporate and Other | Total | ||||||||||||
Processing and services revenues | $ | 2,264 | $ | 2,038 | $ | 184 | $ | 4,486 | |||||||
Operating expenses | 1,525 | 1,626 | 868 | 4,019 | |||||||||||
Depreciation and amortization from continuing operations | 131 | 120 | 32 | 283 | |||||||||||
Purchase accounting amortization | 1 | 6 | 294 | 301 | |||||||||||
EBITDA | 871 | 538 | (358 | ) | 1,051 | ||||||||||
Acquisition deferred revenue adjustment | — | — | 140 | 140 | |||||||||||
Acquisition, integration and severance costs | — | — | 142 | 142 | |||||||||||
Adjusted EBITDA | $ | 871 | $ | 538 | $ | (76 | ) | $ | 1,333 | ||||||
EBITDA | $ | 1,051 | |||||||||||||
Interest expense | 186 | ||||||||||||||
Depreciation and amortization from continuing operations | 283 | ||||||||||||||
Purchase accounting amortization | 301 | ||||||||||||||
Other income (expense) unallocated | (2 | ) | |||||||||||||
Provision for income taxes | 97 | ||||||||||||||
Net earnings from discontinued operations | 1 | ||||||||||||||
Net earnings attributable to noncontrolling interest | 7 | ||||||||||||||
Net earnings attributable to FIS common stockholders | $ | 176 | |||||||||||||
Capital expenditures (1) | $ | 130 | $ | 142 | $ | 23 | $ | 295 |
(1) | Capital expenditures for the six months ended June 30, 2016 include $2 million of capital leases. |
• | the risk that acquired businesses will not be integrated successfully, or that the integration will be more costly or more time-consuming and complex than anticipated; |
• | the risk that cost savings and other synergies anticipated to be realized from acquisitions may not be fully realized or may take longer to realize than expected; |
• | the risk of doing business internationally; |
• | changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, changes in either or both the United States and international lending, capital and financial markets and currency fluctuations; |
• | the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy regulations; |
• | the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting, the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries; |
• | changes in the growth rates of the markets for our solutions; |
• | failures to adapt our solutions to changes in technology or in the marketplace; |
• | internal or external security breaches of our systems, including those relating to unauthorized access, theft, corruption or loss of personal information and computer viruses and other malware affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events; |
• | the risk that implementation of software (including software updates) for customers or at customer locations may result in the corruption or loss of data or customer information, interruption of business operations, exposure to liability claims or loss of customers; |
• | the reaction of current and potential customers to communications from us or regulators regarding information security, risk management, internal audit or other matters; |
• | competitive pressures on pricing related to the decreasing number of community banks in the U.S., the development of new disruptive technologies competing with one or more of our solutions, increasing presence of international competitors in the U.S. market and the entry into the market by global banks and global companies with respect to certain competitive solutions, each of which may have the impact of unbundling individual solutions from a comprehensive suite of solutions we provide to many of our customers; |
• | the failure to innovate in order to keep up with new emerging technologies could impact our solutions, including the ability to attract new, or retain existing, customers; |
• | an operational or natural disaster at one of our major operations centers; and |
• | other risks detailed elsewhere in this document, and in our other filings with the Securities and Exchange Commission. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Processing and services revenues | $ | 2,341 | $ | 2,305 | $ | 4,596 | $ | 4,486 | |||||||
Cost of revenues | 1,612 | 1,600 | 3,195 | 3,153 | |||||||||||
Gross profit | 729 | 705 | 1,401 | 1,333 | |||||||||||
Selling, general, and administrative expenses | 370 | 422 | 783 | 866 | |||||||||||
Operating income | 359 | 283 | 618 | 467 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (91 | ) | (93 | ) | (183 | ) | (186 | ) | |||||||
Other income (expense), net | 4 | (1 | ) | 60 | (2 | ) | |||||||||
Total other income (expense), net | (87 | ) | (94 | ) | (123 | ) | (188 | ) | |||||||
Earnings from continuing operations before income taxes | 272 | 189 | 495 | 279 | |||||||||||
Provision for income taxes | 132 | 66 | 211 | 97 | |||||||||||
Earnings from continuing operations, net of tax | 140 | 123 | 284 | 182 | |||||||||||
Earnings (loss) from discontinued operations, net of tax | — | 1 | — | 1 | |||||||||||
Net earnings | 140 | 124 | 284 | 183 | |||||||||||
Net earnings attributable to noncontrolling interest | (8 | ) | (3 | ) | (14 | ) | (7 | ) | |||||||
Net earnings attributable to FIS common stockholders | $ | 132 | $ | 121 | $ | 270 | $ | 176 | |||||||
Net earnings per share — basic from continuing operations attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.82 | $ | 0.54 | |||||||
Net earnings (loss) per share — basic from discontinued operations attributable to FIS common stockholders | — | — | — | — | |||||||||||
Net earnings per share — basic attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.82 | $ | 0.54 | |||||||
Weighted average shares outstanding — basic | 330 | 325 | 329 | 325 | |||||||||||
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders | $ | 0.40 | $ | 0.36 | $ | 0.81 | $ | 0.53 | |||||||
Net earnings (loss) per share — diluted from discontinued operations attributable to FIS common stockholders | — | — | — | — | |||||||||||
Net earnings per share — diluted attributable to FIS common stockholders | $ | 0.40 | $ | 0.37 | $ | 0.81 | $ | 0.54 | |||||||
Weighted average shares outstanding — diluted | 334 | 329 | 334 | 328 | |||||||||||
Amounts attributable to FIS common stockholders: | |||||||||||||||
Net earnings from continuing operations | $ | 132 | $ | 120 | $ | 270 | $ | 175 | |||||||
Net earnings (loss) from discontinued operations | — | 1 | — | 1 | |||||||||||
Net earnings attributable to FIS | $ | 132 | $ | 121 | $ | 270 | $ | 176 |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Processing and services revenues | $ | 1,181 | $ | 1,152 | $ | 2,310 | $ | 2,264 | |||||||
Adjusted EBITDA | $ | 469 | $ | 447 | $ | 911 | $ | 871 |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Processing and services revenues | $ | 1,076 | $ | 1,048 | $ | 2,095 | $ | 2,038 | |||||||
Adjusted EBITDA | $ | 331 | $ | 287 | $ | 614 | $ | 538 |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Processing and services revenues | $ | 84 | $ | 105 | $ | 191 | $ | 184 | |||||||
Adjusted EBITDA | $ | (54 | ) | $ | (38 | ) | $ | (97 | ) | $ | (76 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
Currency | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Pound Sterling | $ | 11 | $ | 12 | $ | 22 | $ | 21 | ||||||||
Euro | 10 | 10 | 19 | 20 | ||||||||||||
Real | 10 | 7 | 19 | 14 | ||||||||||||
Indian Rupee | 3 | 3 | 7 | 6 | ||||||||||||
Total increase or decrease | $ | 34 | $ | 32 | $ | 67 | $ | 61 |
Incorporated by Reference | |||||||
Exhibit | SEC File | Filed/ Furnished | |||||
No. | Exhibit Description | Form | Number | Exhibit | Filing Date | Herewith | |
31.1 | Certification of Gary A. Norcross, President and Chief Executive Officer of Fidelity National Information Services, Inc., pursuant to rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | * | |||||
31.2 | Certification of James W. Woodall, Corporate Executive Vice President and Chief Financial Officer of Fidelity National Information Services, Inc., pursuant to rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | * | |||||
32.1 | Certification of Gary A. Norcross, President and and Chief Executive Officer of Fidelity National Information Services, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | * | |||||
32.2 | Certification of James W. Woodall, Corporate Executive Vice President and Chief Financial Officer of Fidelity National Information Services, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | * | |||||
101.INS+ | XBRL Instance Document. | * | |||||
101.SCH+ | XBRL Taxonomy Extension Schema Document. | * | |||||
101.CAL+ | XBRL Taxonomy Extension Calculation Linkbase Document. | * | |||||
101.DEF+ | XBRL Taxonomy Extension Definition Linkbase Document. | * | |||||
101.LAB+ | XBRL Taxonomy Extension Label Linkbase Document. | * | |||||
101.PRE+ | XBRL Taxonomy Extension Presentation Linkbase Document. | * |
FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||
Date:August 3, 2017 | By: | /s/ JAMES W. WOODALL |
James W. Woodall | ||
Corporate Executive Vice President and Chief Financial Officer (Principal Financial Officer ) |
FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||
Date: August 3, 2017 | By: | /s/ KATY T. THOMPSON |
Katy T. Thompson | ||
Corporate Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |
Incorporated by Reference | |||||||
Exhibit | SEC File | Filed/ Furnished | |||||
No. | Exhibit Description | Form | Number | Exhibit | Filing Date | Herewith | |
31.1 | Certification of Gary A. Norcross, President and Chief Executive Officer of Fidelity National Information Services, Inc., pursuant to rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | * | |||||
31.2 | Certification of James W. Woodall, Corporate Executive Vice President and Chief Financial Officer of Fidelity National Information Services, Inc., pursuant to rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | * | |||||
32.1 | Certification of Gary A. Norcross, President and Chief Executive Officer of Fidelity National Information Services, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | * | |||||
32.2 | Certification of James W. Woodall, Corporate Executive Vice President and Chief Financial Officer of Fidelity National Information Services, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | * | |||||
101.INS+ | XBRL Instance Document. | * | |||||
101.SCH+ | XBRL Taxonomy Extension Schema Document. | * | |||||
101.CAL+ | XBRL Taxonomy Extension Calculation Linkbase Document. | * | |||||
101.DEF+ | XBRL Taxonomy Extension Definition Linkbase Document. | * | |||||
101.LAB+ | XBRL Taxonomy Extension Label Linkbase Document. | * | |||||
101.PRE+ | XBRL Taxonomy Extension Presentation Linkbase Document. | * |
1. | I have reviewed this quarterly report on Form 10-Q of Fidelity National Information Services, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 3, 2017 | By: | /s/ GARY A. NORCROSS |
Gary A. Norcross | |||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Fidelity National Information Services, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 3, 2017 | By: | /s/ JAMES W. WOODALL |
James W. Woodall | |||
Corporate Executive Vice President and Chief Financial Officer | |||
(Principal Financial Officer) |
1. | The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934. |
2. | The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 3, 2017 | By: | /s/ GARY A. NORCROSS |
Gary A. Norcross | |||
President and Chief Executive Officer |
1. | The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934. |
2. | The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 3, 2017 | By: | /s/ JAMES W. WOODALL |
James W. Woodall | |||
Corporate Executive Vice President and Chief Financial Officer | |||
(Principal Financial Officer) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 31, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Fidelity National Information Services, Inc. | |
Entity Central Index Key | 0001136893 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 332,412,861 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Current assets: | ||
Trade receivables, net of allowance for doubtful accounts of $39 and $41 as of June 30, 2017 and December 31, 2016, respectively | $ 39 | $ 41 |
FIS stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 432,000,000 | 431,000,000 |
Treasury stock, shares (in shares) | 100,000,000 | 103,000,000 |
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid per share (in dollars per share) | $ 0.29 | $ 0.26 | $ 0.58 | $ 0.52 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited financial information included in this report includes the accounts of FIS and its subsidiaries prepared in accordance with U.S. generally accepted accounting principles and the instructions to Form 10-Q and Article 10 of Regulation S-X. All adjustments considered necessary for a fair presentation have been included. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The preparation of these Condensed Consolidated Financial Statements (Unaudited) in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements (Unaudited) and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Certain reclassifications have been made in the 2016 Condensed Consolidated Financial Statements (Unaudited) to conform to the classifications used in 2017. Amounts in tables in the financial statements and accompanying footnotes may not sum due to rounding. We report the results of our operations in three reporting segments: Integrated Financial Solutions (“IFS”), Global Financial Solutions (“GFS”) and Corporate and Other (Note 10). |
Acquisitions |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions SunGard FIS completed the SunGard acquisition on November 30, 2015, and SunGard's results of operations and financial position are included in the consolidated financial statements from and after the date of acquisition. In accordance with ASU 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments", the financial statements were not retrospectively adjusted for any measurement-period adjustments that occurred in subsequent periods. Rather, any adjustments to provisional amounts that were identified during the measurement period are recorded in the reporting period in which the adjustment was determined. During the year ended December 31, 2016, adjustments were recorded to increase the fair values assigned to intangible assets, deferred taxes, other liabilities and property and equipment and to reduce the value assigned to goodwill. We are also required to record, in the same period’s financial statements in which adjustments are recorded, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of any change to the provisional amounts, calculated as if the accounting adjustment had been completed at the acquisition date. Additional depreciation and amortization of $6 million that would have been recognized in 2015 was recorded during the six months ended June 30, 2016 related to the changes in provisional values of intangible assets. |
Condensed Consolidated Financial Statement Details |
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Condensed Consolidated Financial Statement Details [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following table shows the Company’s condensed consolidated financial statement details as of June 30, 2017 and December 31, 2016 (in millions):
The Company entered into capital lease obligations of $5 million and $1 million during the three months and $79 million and $2 million during the six months ended June 30, 2017 and 2016, respectively. The assets are included in property and equipment and the remaining capital lease obligations are classified as long-term debt on our Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2017. Periodic payments are included in repayment of borrowings on the Condensed Consolidated Statements of Cash Flows (Unaudited). Changes in goodwill during the six months ended June 30, 2017 are summarized as follows (in millions):
Foreign currency adjustments includes an immaterial prior period adjustment related to the allocation of goodwill to the appropriate foreign currency at the time of multi-currency entity acquisitions, with the related offset to accumulated other comprehensive earnings (loss). As of June 30, 2017, intangible assets, net of amortization, includes $4,152 million of customer relationships and $50 million of finite-lived trademarks, as well as $48 million of non-amortizable assets consisting mainly of indefinite-lived trademarks. Amortization expense for the quarter to these intangible assets was $166 million. Settlement Activity We manage certain integrated electronic payment services and programs and wealth management processes for our clients that require us to hold and manage client cash balances used to fund their daily settlement activity. Settlement deposits represent funds we hold that were drawn from our clients to facilitate settlement activities. Settlement receivables represent amounts funded by us. Settlement payables consist of settlement deposits from clients, settlement payables to third parties, and outstanding checks related to our settlement activities for which the right of offset does not exist or we do not intend to exercise our right of offset. Our accounting policy for such outstanding checks is to include them in settlement payables on the Condensed Consolidated Balance Sheets (Unaudited) and operating cash flows on the Condensed Consolidated Statements of Cash Flows (Unaudited). |
Long-Term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt as of June 30, 2017 and December 31, 2016, consisted of the following (in millions):
__________________________________________
FIS has a syndicated credit agreement (the "FIS Credit Agreement") that provides total committed capital of $3,000 million in the form of a revolving credit facility (the "Revolving Loan") maturing on August 10, 2021. As of June 30, 2017, the outstanding principal balance of the Revolving Loan was $750 million, with $2,243 million of borrowing capacity remaining thereunder (net of $7 million in outstanding letters of credit issued under the Revolving Loan). The obligations of FIS under the FIS Credit Agreement and under all of its outstanding senior notes rank equal in priority and are unsecured. The FIS Credit Agreement and the senior notes remain subject to customary covenants, including, among others, limitations on the payment of dividends by FIS, and customary events of default. On July 10, 2017, FIS issued €1,000 million and £300 million principal amount of new senior notes in an inaugural European bond offering. The new senior notes include €500 million of Senior Notes due in 2021 (the “2021 Euro Notes”) that bear interest at 0.400%, £300 million of Senior Notes due in 2022 (the “2022 GBP Notes”) that bear interest at 1.700% and €500 million of Senior Notes due in 2024 (the “2024 Euro Notes”) that bear interest at 1.100%. Net proceeds from the offering, after deducting discounts and underwriting fees, were $1,491 million using a conversion rate of 1.12 EUR/USD and 1.27 GBP/USD. The new senior notes include covenants and events of default customary for similar debt obligations. On July 25, 2017, pursuant to cash tender offers ("Tender Offers"), FIS repurchased approximately $2,000 million in aggregate principal of debt securities with a weighted average coupon of approximately 4%. The following approximate amounts of FIS's debt securities were repurchased: $600 million of its 3.625% notes due 2020, $600 million of its 5.000% notes due 2025, $200 million of its 4.500% notes due 2022, $300 million of its 3.875% due 2024 and $300 million of its 3.500% notes due 2023. The Company funded the Tender Offers with proceeds from the European bond offering and borrowings on its Revolving Loan, approximately $469 million of which were almost immediately repaid with proceeds from the sale of Capco Consulting, which was completed on July 31, 2017 (see Note 9). FIS paid approximately $150 million in tender premiums to par to purchase the notes in the Tender Offers. During the third quarter of 2017, due to the issuance of the 2021 and 2024 Euro Notes and 2022 GBP Notes, FIS expects to record approximately $13 million of deferred financing costs, which will be amortized into interest expense over the life of the notes. Also, as a result of the Tender Offers above, FIS expects to incur a pre-tax charge upon extinguishment of approximately $161 million in tender premiums and the write-off of previously capitalized debt issue costs. The following summarizes the aggregate maturities of our debt and capital leases on stated contractual maturities, excluding unamortized non-cash bond premiums and discounts, net of $34 million, as of June 30, 2017 (in millions).
There are no mandatory principal payments on the Revolving Loan and any balance outstanding on the Revolving Loan will be due and payable at its scheduled maturity date, which occurs at August 10, 2021. On March 15, 2017, FIS redeemed 100% of the outstanding aggregate principal amount of its $700 million 5.000% Senior Notes due March 2022 (the "Notes"). On February 1, 2017, the Company also paid down the outstanding balance on the 2018 Term Loans. The Notes and 2018 Term Loans were funded by borrowings under the Company’s Revolving Loan and cash proceeds from the sale of the Public Sector and Education ("PS&E") business. As a result of the redemption of the Notes and the pay down of the 2018 Term Loans, FIS incurred a pre-tax charge of approximately $25 million consisting of the call premium on the Notes and the write-off of previously capitalized debt issuance costs. FIS may redeem the April and October 2018 Notes, 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes, 2024 Notes, 2025 Notes, 2026 Notes, and 2046 Notes at its option in whole or in part, at any time and from time to time, at a redemption price equal to the greater of 100% of the principal amount to be redeemed and a make-whole amount calculated as described in the related indenture in each case plus accrued and unpaid interest to, but excluding, the date of redemption; provided no make-whole amount will be paid for redemptions of the 2020 Notes and the 2021 Notes during the one month prior to their maturity, the 2022 Notes during the two months prior to their maturity, the 2023 Notes, the 2024 Notes, the 2025 Notes, and the 2026 Notes during the three months prior to their maturity, and the 2046 Notes during the six months prior to their maturity. We monitor the financial stability of our counterparties on an ongoing basis. The lender commitments under the undrawn portions of the Revolving Loan are comprised of a diversified set of financial institutions, both domestic and international. The failure of any single lender to perform its obligations under the Revolving Loan would not adversely impact our ability to fund operations. The fair value of the Company’s long-term debt is estimated to be approximately $334 million higher than the carrying value as of June 30, 2017. This estimate is based on quoted prices of our senior notes and trades of our other debt in close proximity to June 30, 2017, which are considered Level 2-type measurements. This estimate is subjective in nature and involves uncertainties and significant judgment in the interpretation of current market data. Therefore, the values presented are not necessarily indicative of amounts the Company could realize or settle currently. |
Financial Instruments |
6 Months Ended |
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Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments As of June 30, 2017, we had no interest rate swap transactions and the Indian Rupee ("INR") forward contracts that managed our exposure to fluctuations in costs caused by variations in INR were all settled. Net Investment Hedges In June 2017, the Company entered into two Euro denominated foreign currency exchange forward contracts totaling €999 million and a GBP denominated foreign currency exchange forward contract of £298 million, which were designated as a net investment hedge of its investment in Euro and GBP denominated operations, respectively, which has a functional currency of the Euro and GBP, in order to reduce the volatility in the income statement caused by the changes in foreign currency exchange rates of the Euro and GBP with respect to the U.S. dollar. The change in fair value of the net investment hedges due to remeasurement of the effective portion is recorded in other comprehensive income (loss). The ineffective portion of these hedging instruments impacts net income when the ineffectiveness occurs. For the three months ended June 30, 2017, losses of $19 million, net of tax, respectively, were recognized in other comprehensive income and no ineffectiveness was recorded on the net investment hedges. In July 2017, the forward contracts above were terminated and the Company designated its Euro-denominated Senior Notes due 2021 (€500 million) and Senior Notes due 2024 (€500 million) and GBP-denominated Senior Notes due 2022 (£300 million) as a net investment hedge of its investment in Euro and GBP denominated operations, respectively. |
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, the Company is involved in various pending and threatened litigation matters related to operations, some of which include claims for punitive or exemplary damages. The Company believes no actions depart from customary litigation incidental to its business. The Company reviews all of its litigation on an on-going basis and follows the authoritative provisions for accounting for contingencies when making accrual and disclosure decisions. A liability must be accrued if (a) it is probable that a liability has been incurred and (b) the amount of loss can be reasonably estimated. If one of these criteria has not been met, disclosure is required when there is at least a reasonable possibility that a material loss may be incurred. When assessing reasonably possible and probable outcomes, the Company bases decisions on the assessment of the ultimate outcome following all appeals. Legal fees associated with defending litigation matters are expensed as incurred. Reliance Trust Claims Reliance Trust Company, the Company’s subsidiary, is named as a defendant in a class action arising out of its provision of services as the discretionary trustee for a 401(k) Plan for one of its customers. Plaintiffs in the action seek damages and attorneys’ fees, as well as equitable relief, for alleged breaches of fiduciary duty and prohibited transactions under the Employee Retirement Income Security Act of 1974. The action also makes claims against the Plan's sponsor and recordkeeper. Reliance Trust Company is vigorously defending the action and believes that it has meritorious defenses. While we believe that the ultimate resolution of the matter will not have a material impact on our financial condition, we are unable at this time to make an estimate of potential losses arising from the action because the matter is at an early stage and involves unresolved questions of fact and law. Brazilian Tax Authorities Claims In 2004, Proservvi Empreendimentos e Servicos, Ltda., the predecessor to Fidelity National Servicos de Tratamento de Documentos e Informatica Ltda. (“Servicos”), a subsidiary of Fidelity National Participacoes Ltda., our former item processing and remittance services operation in Brazil, acquired certain assets and employees and leased certain facilities from the Transpev Group (“Transpev”) in Brazil. Transpev’s remaining assets were later acquired by Prosegur, an unrelated third party. When Transpev discontinued its operations after the asset sale to Prosegur, it had unpaid federal taxes and social contributions owing to the Brazilian tax authorities. The Brazilian tax authorities brought a claim against Transpev and beginning in 2012 brought claims against Prosegur and Servicos on the grounds that Prosegur and Servicos were successors in interest to Transpev. To date, the Brazilian tax authorities filed 10 claims against Servicos asserting potential tax liabilities of approximately $14 million. There are potentially 25 additional claims against Transpev/Prosegur for which Servicos is named as a co-defendant or may be named, but for which Servicos has not yet been served. These additional claims amount to approximately $56 million making the total potential exposure for all 35 claims approximately $70 million. We do not believe a liability for these 35 total claims is probable or reasonably estimable and, therefore, have not recorded a liability for any of these claims. Acquired Contingencies (SunGard) The Company became responsible for certain contingencies which were assumed in the SunGard acquisition. The Condensed Consolidated Balance Sheet as of June 30, 2017 includes a liability of $100 million mostly related to unclaimed property examinations and tax compliance matters. Indemnifications and Warranties The Company generally indemnifies its clients, subject to certain limitations and exceptions, against damages and costs resulting from claims of patent, copyright, or trademark infringement associated solely with its customers' use of the Company's software applications or services. Historically, the Company has not made any material payments under such indemnifications, but continues to monitor the conditions that are subject to the indemnifications to identify whether it is probable that a loss has occurred, and would recognize any such losses when they are estimable. In addition, the Company warrants to customers that its software operates substantially in accordance with the software specifications. Historically, no material costs have been incurred related to software warranties and no accruals for warranty costs have been made. |
Related Party Transactions |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions The Company operates a joint venture ("Brazilian Venture") with Banco Bradesco S.A. ("Banco Bradesco"), in which we own a 51% controlling interest, to provide comprehensive, fully-outsourced transaction processing, call center, cardholder support and collection services to multiple card issuing clients in Brazil, including Banco Bradesco. The original accounting for this transaction resulted in the establishment of a contract intangible asset and a liability for amounts payable to the original partner banks upon final migration of their respective card portfolios and achieving targeted volumes (the “Brazilian Venture Notes”). The unamortized contract intangible asset balance as of June 30, 2017 was $77 million. The carrying value of the noncontrolling interest as of June 30, 2017 was $108 million. The Company recorded revenues of $89 million and $65 million during the three months and $169 million and $120 million during the six months ended June 30, 2017 and 2016, respectively, from Banco Bradesco. Revenues from Banco Bradesco included $7 million and $21 million of favorable currency impact during the three and six months ended June 30, 2017, respectively, resulting from foreign currency exchange rate fluctuations between the U.S. Dollar and Brazilian Real. A summary of the Company’s related party receivables and payables is as follows (in millions):
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Net Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings per Share | Net Earnings per Share The basic weighted average shares and common stock equivalents for the three and six months ended June 30, 2017 and 2016 are computed using the treasury stock method. The following table summarizes the earnings per share attributable to FIS common stockholders for the three and six months ended June 30, 2017 and 2016 (in millions, except per share amounts):
Options to purchase approximately 4 million and 7 million shares of our common stock for the three months and 4 million and 7 million for the six months ended June 30, 2017 and 2016, respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive. On July 20, 2017 our Board of Directors approved a plan authorizing repurchases of up to $4 billion of our outstanding common stock in the open market at prevailing market prices or in privately negotiated transactions through December 31, 2020. This share repurchase authorization replaced any existing share repurchase authorization. |
Divestitures |
6 Months Ended |
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Jun. 30, 2017 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |
Divestitures | Divestitures On May 23, 2017, FIS and Clayton, Dubilier & Rice, by and through certain funds that it manages ("CDR"), entered into a definitive agreement by which FIS sold a majority ownership stake in the Capco consulting business and risk and compliance consulting business for cash proceeds of approximately $441 million, net of taxes and deal related expenses. CDR acquired preferred units convertible into 60% of the common units of the venture and FIS obtained common units representing the remaining 40%, in each case before equity is issued to management. The businesses sold are included within the GFS and IFS segments. The transaction closed on July 31, 2017 and any pre-tax gain/loss recognized in the third quarter of 2017 is expected to be less than $10 million The sale did not meet the standard necessary to be reported as discontinued operations; therefore, any pre-tax gain/loss and related prior period earnings remain reported within earnings from continuing operations. On February 1, 2017, the Company closed on the sale of the SunGard Public Sector and Education ("PS&E") business for $850 million, resulting in a pre-tax gain of $85 million. The transaction included all PS&E solutions, which provided a comprehensive set of technology solutions to address public safety and public administration needs of government entities as well as the needs of K-12 school districts. The divestiture is consistent with our strategy to serve the financial services markets. Cash proceeds were used to reduce outstanding debt (see Note 4). Net cash proceeds, after payment of taxes and transaction-related expenses, were approximately $500 million. The PS&E business was included in the Corporate and Other segment. The sale did not meet the standard necessary to be reported as discontinued operations; therefore, the pre-tax gain and related prior period earnings remain reported within earnings from continuing operations. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Integrated Financial Solutions ("IFS") The IFS segment is focused primarily on serving the North American regional and community bank and savings institution market for transaction and account processing, payment solutions, channel solutions, lending and wealth management solutions, corporate liquidity, digital channels, risk and compliance solutions, and services, capitalizing on the continuing trend to outsource these solutions. IFS’ primary software applications function as the underlying infrastructure of a financial institution's processing environment. These applications include core bank processing software, which banks use to maintain the primary records of their customer accounts, and complementary applications and services that interact directly with the core processing applications. Clients in this segment include regional and community banks, credit unions and commercial lenders, as well as government institutions, merchants and other commercial organizations. This market is primarily served through integrated solutions and characterized by multi-year processing contracts that generate highly recurring revenues. The predictable nature of cash flows generated from this segment provides opportunities for further investments in innovation, product integration, information and security, and compliance in a cost effective manner. Global Financial Solutions ("GFS") The GFS segment is focused on serving the largest global financial institutions and/or international financial institutions with a broad array of capital markets and asset management and insurance solutions, as well as banking and payments solutions. GFS clients include the largest global financial institutions, including those headquartered in the United States, as well as all international financial institutions we serve as clients in more than 130 countries. These institutions face unique business and regulatory challenges and account for the majority of financial institution information technology spend globally. The purchasing patterns of GFS clients vary from those of IFS clients who typically purchase solutions on an outsourced basis. GFS clients purchase our solutions and services in various ways including licensing and managing technology “in-house”, fully outsourced end-to-end solutions, and using consulting and third party service providers. We have long-established relationships with many of these financial institutions that generate significant recurring revenue. GFS clients also include asset managers, buy- and sell-side securities and trading firms, insurers and private equity firms. This segment also includes the Company's consolidated Brazilian Venture (Note 7). Corporate and Other The Corporate and Other segment consists of corporate overhead expense, certain leveraged functions and miscellaneous expenses that are not included in the operating segments as well as certain non-strategic businesses. The business solutions in this segment included the PS&E business through its divestiture on February 1, 2017 (Note 9), commercial services and check authorization. The overhead and leveraged costs relate to marketing, corporate finance and accounting, human resources, legal, and amortization of acquisition-related intangibles and other costs that are not considered when management evaluates revenue-generating segment performance, such as acquisition integration and severance costs. The Corporate and Other segment also includes the impact on revenue for 2017 and 2016 of adjusting SunGard's deferred revenue to fair value. Adjusted EBITDA This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, Adjusted EBITDA, as it relates to our segments, is presented in conformity with Accounting Standards Codification Topic 280, "Segment Reporting". Adjusted EBITDA is defined as EBITDA (defined as net income (loss) before net interest expense, income tax provision (benefit) and depreciation and amortization, including amortization of purchased intangibles), plus certain non-operating items. The non-operating items affecting the segment profit measure generally include acquisition accounting adjustments, acquisition, integration and severance costs, and restructuring expenses. For consolidated reporting purposes, these costs and adjustments are recorded in the Corporate and Other segment for the periods discussed below. Adjusted EBITDA for the respective segments excludes the foregoing costs and adjustments. Summarized financial information for the Company’s segments is shown in the following tables. As of and for the three months ended June 30, 2017 (in millions):
As of and for the three months ended June 30, 2016 (in millions):
For the six months ended June 30, 2017 (in millions):
For the six months ended June 30, 2016 (in millions):
Clients in Brazil, the United Kingdom, Germany, Canada and India accounted for the majority of the revenues from clients based outside of the U.S. for all periods presented. Long-term assets, excluding goodwill and other intangible assets, located outside of the United States total $497 million and $515 million as of June 30, 2017 and 2016, respectively. These assets are predominantly located in Brazil, India, Germany and the United Kingdom. During the three and six months ended June 30, 2017 the Company recorded certain costs relating to integration and severance activity primarily from the SunGard acquisition of $39 million and $119 million, respectively. During the three and six months ended June 30, 2016 the Company recorded transaction and other costs, including integration activity, related to SunGard and other recent acquisitions and other severance costs of $63 million and $142 million. These costs for the 2017 and 2016 periods were recorded in the Corporate and Other segment. |
Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited financial information included in this report includes the accounts of FIS and its subsidiaries prepared in accordance with U.S. generally accepted accounting principles and the instructions to Form 10-Q and Article 10 of Regulation S-X. All adjustments considered necessary for a fair presentation have been included. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The preparation of these Condensed Consolidated Financial Statements (Unaudited) in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements (Unaudited) and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Certain reclassifications have been made in the 2016 Condensed Consolidated Financial Statements (Unaudited) to conform to the classifications used in 2017. Amounts in tables in the financial statements and accompanying footnotes may not sum due to rounding. We report the results of our operations in three reporting segments: Integrated Financial Solutions (“IFS”), Global Financial Solutions (“GFS”) and Corporate and Other (Note 10). |
Condensed Consolidated Financial Statement Details (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Consolidated Financial Statement Details [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Financial Statement Details | The following table shows the Company’s condensed consolidated financial statement details as of June 30, 2017 and December 31, 2016 (in millions):
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Schedule of Goodwill | Changes in goodwill during the six months ended June 30, 2017 are summarized as follows (in millions):
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Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt as of June 30, 2017 and December 31, 2016, consisted of the following (in millions):
__________________________________________
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Principal maturities of long-term debt | The following summarizes the aggregate maturities of our debt and capital leases on stated contractual maturities, excluding unamortized non-cash bond premiums and discounts, net of $34 million, as of June 30, 2017 (in millions).
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Related Party Transactions (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Receivables and Payables | A summary of the Company’s related party receivables and payables is as follows (in millions):
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Net Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share attributable to FIS common stockholders | The following table summarizes the earnings per share attributable to FIS common stockholders for the three and six months ended June 30, 2017 and 2016 (in millions, except per share amounts):
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Summarized financial information for the Company’s segments is shown in the following tables. As of and for the three months ended June 30, 2017 (in millions):
As of and for the three months ended June 30, 2016 (in millions):
For the six months ended June 30, 2017 (in millions):
For the six months ended June 30, 2016 (in millions):
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Basis of Presentation - (Narrative) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2017
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Acquisitions - (Narrative) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
SunGard | |
Business Acquisition [Line Items] | |
Increase (decrease) in income due to additional depreciation and amortization that would have been recognized in 2015 | $ (6) |
Condensed Consolidated Financial Statement Details - (Summary of Net Assets) (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Condensed Consolidated Financial Statement Details [Abstract] | ||
Property and equipment, cost | $ 1,521 | $ 1,488 |
Property and equipment, accumulated depreciation and amortization | 937 | 862 |
Property and equipment, net | 584 | 626 |
Intangible assets, cost | 6,412 | 6,547 |
Intangible assets, accumulated depreciation and amortization | 2,162 | 1,883 |
Intangible assets, net | 4,250 | 4,664 |
Computer software, cost | 2,552 | 2,376 |
Computer software, accumulated depreciation and amortization | 846 | 768 |
Computer software, net | $ 1,706 | $ 1,608 |
Condensed Consolidated Financial Statement Details - (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Property, Plant and Equipment [Line Items] | ||||
Capital lease obligations | $ 5 | $ 1 | $ 79 | $ 2 |
Amortization expense of intangible assets | 166 | |||
Customer Relationships | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-lived intangible assets, net | 4,152 | 4,152 | ||
Trademarks | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-lived intangible assets, net | 50 | 50 | ||
Trademarks | ||||
Property, Plant and Equipment [Line Items] | ||||
Indefinite-lived intangible assets | $ 48 | $ 48 |
Condensed Consolidated Financial Statement Details - (Goodwill) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 14,178 |
Goodwill distributed through sale of non-strategic assets | (10) |
Goodwill relating to Capco included in assets held for sale | (474) |
Foreign currency adjustments | (49) |
Ending balance | $ 13,645 |
Long-Term Debt - (Principal Maturities of Long-Term Debt) (Details) - FIS Credit Agreements $ in Millions |
Jun. 30, 2017
USD ($)
|
---|---|
Principal maturities of long-term debt | |
2017 | $ 31 |
2018 | 1,040 |
2019 | 37 |
2020 | 1,752 |
2021 | 1,501 |
Thereafter | 5,450 |
Total principal payments | 9,811 |
Debt issuance costs, net of accumulated amortization | (65) |
Total long-term debt | $ 9,746 |
Related Party Transactions - (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Banco Bradesco | ||||
Related Party Transaction [Line Items] | ||||
Revenues from related parties | $ 89 | $ 65 | $ 169 | $ 120 |
Banco Bradesco | Favorable (unfavorable) currency impact | ||||
Related Party Transaction [Line Items] | ||||
Revenues from related parties | 7 | $ 21 | ||
Corporate joint venture | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage of the Brazilian venture | 51.00% | |||
Corporate joint venture | Contract-based intangible assets | ||||
Related Party Transaction [Line Items] | ||||
Finite-lived intangible assets, net | 77 | $ 77 | ||
Noncontrolling interest in joint venture | $ 108 | $ 108 |
Related Party Transactions - (Receivables and Payables) (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Related Party Transaction [Line Items] | ||
Accounts payable and accrued liabilities | $ 969 | $ 1,146 |
Other long-term liabilities | 427 | 386 |
Affiliated entity | Banco Bradesco | ||
Related Party Transaction [Line Items] | ||
Trade receivables | 55 | 45 |
Accounts payable and accrued liabilities | 10 | 10 |
Other long-term liabilities | $ 20 | $ 22 |
Net Earnings per Share - (Narrative) (Details) - USD ($) shares in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jul. 20, 2017 |
|
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share | 4 | 7 | 4 | 7 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program authorized amount | $ 4,000,000,000 |
Segment Information - (Narrative) (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017
USD ($)
country
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
country
|
Jun. 30, 2016
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Acquisition, integration and severance costs | $ 39 | $ 63 | $ 119 | $ 142 |
Global Financial Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Number of countries we operate in (more than 130) | country | 130 | 130 | ||
Acquisition, integration and severance costs | $ 0 | 0 | $ 0 | 0 |
SunGard | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition, integration and severance costs | 39 | 119 | ||
Recent acquisitions | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition, integration and severance costs | 63 | 142 | ||
Geographic distribution, foreign | ||||
Segment Reporting Information [Line Items] | ||||
Long-term assets, excluding goodwill and other intangible assets | $ 497 | $ 515 | $ 497 | $ 515 |
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