QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
(State or Other Jurisdiction of Incorporation or Organization) | (I. R. S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Revenue: | |||||||||||
Processing and services (1) | $ | $ | |||||||||
Product | |||||||||||
Total revenue | |||||||||||
Expenses: | |||||||||||
Cost of processing and services | |||||||||||
Cost of product | |||||||||||
Selling, general and administrative | |||||||||||
Net loss (gain) on sale of businesses and other assets | ( | ||||||||||
Total expenses | |||||||||||
Operating income | |||||||||||
Interest expense, net | ( | ( | |||||||||
Other expense | ( | ( | |||||||||
Income before income taxes and (loss) income from investments in unconsolidated affiliates | |||||||||||
Income tax provision | ( | ( | |||||||||
(Loss) income from investments in unconsolidated affiliates | ( | ||||||||||
Net income | |||||||||||
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | |||||||||||
Net income attributable to Fiserv, Inc. | $ | $ | |||||||||
Net income attributable to Fiserv, Inc. per share – basic | $ | $ | |||||||||
Net income attributable to Fiserv, Inc. per share – diluted | $ | $ | |||||||||
Shares used in computing net income attributable to Fiserv, Inc. per share: | |||||||||||
Basic | |||||||||||
Diluted |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income: | |||||||||||
Fair market value adjustment on cash flow hedges | ( | ||||||||||
Reclassification adjustment for net realized losses (gains) on cash flow hedges included in cost of processing and services | ( | ||||||||||
Reclassification adjustment for net realized losses on cash flow hedges included in net interest expense | |||||||||||
Tax impacts of cash flow hedges, net | ( | ( | |||||||||
Unrealized gain (loss) on defined benefit pension plans | ( | ||||||||||
Tax impacts of defined benefit pension plans, net | ( | ||||||||||
Foreign currency translation | |||||||||||
Tax impacts of foreign currency translation, net | ( | ||||||||||
Total other comprehensive income | |||||||||||
Comprehensive income | $ | $ | |||||||||
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | |||||||||||
Less: other comprehensive income (loss) attributable to noncontrolling interests | ( | ||||||||||
Comprehensive income attributable to Fiserv, Inc. | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowance for doubtful accounts | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Settlement assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Customer relationships, net | |||||||||||
Other intangible assets, net | |||||||||||
Goodwill | |||||||||||
Contract costs, net | |||||||||||
Investments in unconsolidated affiliates | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Equity | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Short-term and current maturities of long-term debt | |||||||||||
Contract liabilities | |||||||||||
Settlement obligations | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred income taxes | |||||||||||
Long-term contract liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and Contingencies (see Note 17) | |||||||||||
Redeemable Noncontrolling Interests | |||||||||||
Fiserv, Inc. Shareholders’ Equity: | |||||||||||
Preferred stock, no par value: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Total Fiserv, Inc. shareholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and other amortization | |||||||||||
Amortization of acquisition-related intangible assets | |||||||||||
Amortization of financing costs and debt discounts | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Net loss (gain) on sale of businesses and other assets | ( | ||||||||||
Loss (income) from investments in unconsolidated affiliates | ( | ||||||||||
Distributions from unconsolidated affiliates | |||||||||||
Other operating activities | ( | ||||||||||
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
Trade accounts receivable | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Contract costs | ( | ( | |||||||||
Accounts payable and other liabilities | ( | ( | |||||||||
Contract liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures, including capitalized software and other intangibles | ( | ( | |||||||||
Net proceeds from sale of businesses and other assets | |||||||||||
Distributions from unconsolidated affiliates | |||||||||||
Purchases of investments | ( | ( | |||||||||
Proceeds from sale of investments | |||||||||||
Other investing activities | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Debt proceeds | |||||||||||
Debt repayments | ( | ( | |||||||||
Net (repayments of) proceeds from commercial paper and short-term borrowings | ( | ||||||||||
Payments of debt financing costs | ( | ||||||||||
Proceeds from issuance of treasury stock | |||||||||||
Purchases of treasury stock, including employee shares withheld for tax obligations | ( | ( | |||||||||
Settlement activity, net | ( | ( | |||||||||
Distributions paid to noncontrolling interests and redeemable noncontrolling interests | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net change in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning balance | |||||||||||
Cash and cash equivalents, ending balance | $ | $ | |||||||||
(In millions) | March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||||||
Cash and cash equivalents on the consolidated balance sheets | $ | $ | $ | ||||||||||||||
Cash and cash equivalents included in settlement assets | |||||||||||||||||
Other restricted cash | |||||||||||||||||
Total cash and cash equivalents on the consolidated statements of cash flows | $ | $ | $ | ||||||||||||||
Three Months Ended March 31, | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Interest expense | $ | ( | $ | ( | |||||||
Interest income | |||||||||||
Interest expense, net | $ | ( | $ | ( | |||||||
(In millions) | Reportable Segments | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | Acceptance | Fintech | Payments | Corporate and Other | Total | ||||||||||||||||||||||||
Type of Revenue | |||||||||||||||||||||||||||||
Processing | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Hardware, print and card production | |||||||||||||||||||||||||||||
Professional services | |||||||||||||||||||||||||||||
Software maintenance | |||||||||||||||||||||||||||||
License and termination fees | |||||||||||||||||||||||||||||
Output Solutions postage | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total Revenue | $ | $ | $ | $ | $ |
(In millions) | Reportable Segments | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | Acceptance | Fintech | Payments | Corporate and Other | Total | ||||||||||||||||||||||||
Type of Revenue | |||||||||||||||||||||||||||||
Processing | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Hardware, print and card production | |||||||||||||||||||||||||||||
Professional services | |||||||||||||||||||||||||||||
Software maintenance | |||||||||||||||||||||||||||||
License and termination fees | |||||||||||||||||||||||||||||
Output Solutions postage | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total Revenue | $ | $ | $ | $ | $ |
(In millions) | March 31, 2023 | December 31, 2022 | |||||||||
Contract assets | $ | $ | |||||||||
Contract liabilities |
(In millions) | |||||
Year Ending December 31, | |||||
Remainder of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter |
(In millions) | Gross Carrying Amount | Weighted-Average Useful Life | |||||||||
Residual buyouts | |||||||||||
Customer relationships | |||||||||||
Total | $ |
(In millions) | |||||
Cash | $ | ||||
Other net assets | |||||
Intangible assets | |||||
Goodwill | |||||
Total consideration | $ | ||||
Less: Fair value of previously held equity interest | ( | ||||
Total purchase price | $ |
(In millions) | Gross Carrying Amount | Weighted-Average Useful Life | |||||||||
Acquired software and technology | $ | ||||||||||
Trade name | |||||||||||
Customer relationships | |||||||||||
Total | $ |
(In millions) | Gross Carrying Amount | Weighted-Average Useful Life | |||||||||
Acquired software and technology | $ | ||||||||||
Customer relationships | |||||||||||
Total | $ | ||||||||||
(In millions) | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||
March 31, 2023 | |||||||||||||||||
Customer relationships | $ | $ | $ | ||||||||||||||
Acquired software and technology | |||||||||||||||||
Trade names | |||||||||||||||||
Purchased software | |||||||||||||||||
Capitalized software and other intangibles | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
(In millions) | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||
December 31, 2022 | |||||||||||||||||
Customer relationships | $ | $ | $ | ||||||||||||||
Acquired software and technology | |||||||||||||||||
Trade names | |||||||||||||||||
Purchased software | |||||||||||||||||
Capitalized software and other intangibles | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Amortization expense | $ | $ | ||||||||||||
Fair Value | ||||||||||||||||||||
(In millions) | Classification | Fair Value Hierarchy | March 31, 2023 | December 31, 2022 | ||||||||||||||||
Forward exchange contracts designated as cash flow hedges | Accounts payable and accrued expenses | Level 2 | $ | $ | ||||||||||||||||
Forward exchange contracts designated as cash flow hedges | Other long-term liabilities | Level 2 | ||||||||||||||||||
Cross-currency rate swap contracts designated as net investment hedges | Other long-term liabilities | Level 2 | ||||||||||||||||||
Contingent consideration | Accounts payable and accrued expenses | Level 3 | ||||||||||||||||||
Contingent consideration | Other long-term liabilities | Level 3 | ||||||||||||||||||
Contingent debt guarantee | Other long-term liabilities | Level 3 | ||||||||||||||||||
(In millions) | March 31, 2023 | December 31, 2022 | ||||||||||||
Trade accounts payable | $ | $ | ||||||||||||
Client deposits | ||||||||||||||
Accrued compensation and benefits | ||||||||||||||
Accrued taxes | ||||||||||||||
Accrued interest | ||||||||||||||
Accrued payment network fees | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Accrued professional fees | ||||||||||||||
Other accrued expenses | ||||||||||||||
Total | $ | $ |
(In millions) | March 31, 2023 | December 31, 2022 | ||||||||||||
Short-term and current maturities of long-term debt: | ||||||||||||||
Foreign lines of credit | $ | $ | ||||||||||||
Finance lease and other financing obligations | ||||||||||||||
Total short-term and current maturities of long-term debt | $ | $ | ||||||||||||
Long-term debt: | ||||||||||||||
U.S. dollar commercial paper notes | ||||||||||||||
Euro commercial paper notes | ||||||||||||||
Revolving credit facility | ||||||||||||||
Term loan facility | ||||||||||||||
Unamortized discount and deferred financing costs | ( | ( | ||||||||||||
Finance lease and other financing obligations | ||||||||||||||
Total long-term debt | $ | $ |
(In millions) | 2023 | 2022 | ||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Distributions paid to redeemable noncontrolling interests | ( | ( | ||||||||||||
Share of income | ||||||||||||||
Derecognition of redeemable noncontrolling interest | ( | |||||||||||||
Balance at end of period | $ | $ | ||||||||||||
Fiserv, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | Number of Shares | Amount | ||||||||||||||||||||||||||||||
(In millions) | Common Shares | Treasury Shares | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Net income (1) | ||||||||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||
Shares issued under stock plans | ( | ( | ( | |||||||||||||||||||||||||||||
Purchases of treasury stock | ( | ( | ||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Fiserv, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | Number of Shares | Amount | ||||||||||||||||||||||||||||||
(In millions) | Common Shares | Treasury Shares | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Equity | ||||||||||||||||||||||||
Noncontrolling Interests | ||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Net income (1) | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | |||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||
Shares issued under stock plans | ( | ( | ( | |||||||||||||||||||||||||||||
Purchases of treasury stock | ( | ( | ||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
(In millions) | Cash Flow Hedges | Foreign Currency Translation | Pension Plans | Total | |||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||
Net current-period other comprehensive income | |||||||||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||
(In millions) | Cash Flow Hedges | Foreign Currency Translation | Pension Plans | Total | |||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance at March 31, 2022 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Effective Date of Contract | Maturity Date of Contract | Notional Amount (EUR) | Fixed Rate Paid (EUR) | Fixed Rate Received (USD) | ||||||||||||||||||||||
September 1, 2022 | June 1, 2025 | million | % | % | ||||||||||||||||||||||
September 15, 2022 | July 1, 2026 | million | % | % | ||||||||||||||||||||||
October 6, 2022 | June 1, 2025 | million | % | % | ||||||||||||||||||||||
October 27, 2022 | July 1, 2026 | million | % | % | ||||||||||||||||||||||
November 10, 2022 | June 1, 2025 | million | % | % | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Cross-currency rate swap contracts | $ | ( | $ | ||||||||
Foreign currency-denominated debt | ( |
Restricted Stock Units and Awards | Performance Share Units | ||||||||||||||||||||||
Shares (In thousands) | Weighted-Average Grant Date Fair Value | Shares (In thousands) | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Units and awards - December 31, 2022 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Vested | ( | ||||||||||||||||||||||
Units and awards - March 31, 2023 | $ | $ | |||||||||||||||||||||
Shares (In thousands) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (In millions) | ||||||||||||||||||||
Stock options outstanding - December 31, 2022 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Stock options outstanding - March 31, 2023 | $ | $ | |||||||||||||||||||||
Stock options exercisable - March 31, 2023 | $ | $ | |||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Income tax provision | $ | $ | ||||||||||||
Effective income tax rate | % | % | ||||||||||||
Three Months Ended March 31, | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic | |||||||||||
Common stock equivalents | |||||||||||
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted | |||||||||||
Three Months Ended March 31, | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid | |||||||||||
Treasury stock purchases settled after the balance sheet date | |||||||||||
Distribution of nonmonetary assets (see Note 10) | |||||||||||
Software obtained under financing arrangements | |||||||||||
Right-of-use assets obtained in exchange for lease liabilities - operating leases | |||||||||||
Right-of-use assets obtained in exchange for lease liabilities - finance leases | |||||||||||
Reportable Segments | |||||||||||||||||||||||||||||
(In millions) | Acceptance | Fintech | Payments | Corporate and Other | Total | ||||||||||||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Processing and services revenue | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Product revenue | |||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Operating income (loss) | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
Processing and services revenue | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Product revenue | |||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Operating income (loss) | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Percentage of Revenue (1) | Increase (Decrease) | ||||||||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Processing and services | $ | 3,673 | $ | 3,364 | 80.8 | % | 81.3 | % | $ | 309 | 9 | % | |||||||||||||||||||||||
Product | 874 | 774 | 19.2 | % | 18.7 | % | 100 | 13 | % | ||||||||||||||||||||||||||
Total revenue | 4,547 | 4,138 | 100.0 | % | 100.0 | % | 409 | 10 | % | ||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Cost of processing and services | 1,405 | 1,436 | 38.3 | % | 42.7 | % | (31) | (2) | % | ||||||||||||||||||||||||||
Cost of product | 600 | 536 | 68.6 | % | 69.3 | % | 64 | 12 | % | ||||||||||||||||||||||||||
Sub-total | 2,005 | 1,972 | 44.1 | % | 47.7 | % | 33 | 2 | % | ||||||||||||||||||||||||||
Selling, general and administrative | 1,604 | 1,467 | 35.3 | % | 35.5 | % | 137 | 9 | % | ||||||||||||||||||||||||||
Net loss (gain) on sale of businesses and other assets | 4 | (147) | 0.1 | % | (3.6) | % | 151 | 103 | % | ||||||||||||||||||||||||||
Total expenses | 3,613 | 3,292 | 79.5 | % | 79.6 | % | 321 | 10 | % | ||||||||||||||||||||||||||
Operating income | 934 | 846 | 20.5 | % | 20.5 | % | 88 | 10 | % | ||||||||||||||||||||||||||
Interest expense, net | (202) | (168) | (4.4) | % | (4.1) | % | 34 | 20 | % | ||||||||||||||||||||||||||
Other expense | (20) | (4) | (0.4) | % | (0.1) | % | 16 | n/m | |||||||||||||||||||||||||||
Income before income taxes and (loss) income from investments in unconsolidated affiliates | 712 | 674 | 15.7 | % | 16.3 | % | 38 | 6 | % | ||||||||||||||||||||||||||
Income tax provision | (124) | (98) | (2.7) | % | (2.4) | % | 26 | 27 | % | ||||||||||||||||||||||||||
(Loss) income from investments in unconsolidated affiliates | (12) | 106 | (0.3) | % | 2.6 | % | (118) | n/m | |||||||||||||||||||||||||||
Net income | 576 | 682 | 12.7 | % | 16.5 | % | (106) | (16) | % | ||||||||||||||||||||||||||
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | 13 | 13 | 0.3 | % | 0.3 | % | — | — | % | ||||||||||||||||||||||||||
Net income attributable to Fiserv, Inc. | $ | 563 | $ | 669 | 12.4 | % | 16.2 | % | $ | (106) | (16) | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
(In millions) | Acceptance | Fintech | Payments | Corporate and Other | Total | ||||||||||||||||||||||||
Total revenue: | |||||||||||||||||||||||||||||
2023 | $ | 1,847 | $ | 792 | $ | 1,629 | $ | 279 | $ | 4,547 | |||||||||||||||||||
2022 | 1,653 | 778 | 1,462 | 245 | 4,138 | ||||||||||||||||||||||||
Revenue growth | $ | 194 | $ | 14 | $ | 167 | $ | 34 | $ | 409 | |||||||||||||||||||
Revenue growth percentage | 12 | % | 2 | % | 11 | % | 10 | % | |||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||
2023 | $ | 562 | $ | 280 | $ | 711 | $ | (619) | $ | 934 | |||||||||||||||||||
2022 | 470 | 275 | 618 | (517) | 846 | ||||||||||||||||||||||||
Operating income growth (decline) | $ | 92 | $ | 5 | $ | 93 | $ | (102) | $ | 88 | |||||||||||||||||||
Operating income growth (decline) percentage | 20 | % | 2 | % | 15 | % | 10 | % | |||||||||||||||||||||
Operating margin: | |||||||||||||||||||||||||||||
2023 | 30.5 | % | 35.4 | % | 43.6 | % | 20.5 | % | |||||||||||||||||||||
2022 | 28.4 | % | 35.4 | % | 42.3 | % | 20.5 | % | |||||||||||||||||||||
Operating margin growth (decline) (1) | 210 | bps | — | bps | 130 | bps | — | bps |
Three Months Ended March 31, | Increase (Decrease) | ||||||||||||||||||||||
(In millions) | 2023 | 2022 | $ | % | |||||||||||||||||||
Net income | $ | 576 | $ | 682 | $ | (106) | |||||||||||||||||
Depreciation and amortization | 795 | 810 | (15) | ||||||||||||||||||||
Share-based compensation | 93 | 61 | 32 | ||||||||||||||||||||
Deferred income taxes | (87) | (183) | 96 | ||||||||||||||||||||
Net loss (gain) on sale of businesses and other assets | 4 | (147) | 151 | ||||||||||||||||||||
Loss (income) from investments in unconsolidated affiliates | 12 | (106) | 118 | ||||||||||||||||||||
Distributions from unconsolidated affiliates | 11 | 19 | (8) | ||||||||||||||||||||
Net changes in working capital and other | (274) | (321) | 47 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 1,130 | $ | 815 | $ | 315 | 39 | % | |||||||||||||||
Capital expenditures, including capitalized software and other intangibles | $ | 339 | $ | 331 | $ | 8 | 2 | % |
(In millions) | March 31, 2023 | December 31, 2022 | |||||||||
Short-term and current maturities of long-term debt: | |||||||||||
Foreign lines of credit | $ | 221 | $ | 198 | |||||||
Finance lease and other financing obligations | 240 | 270 | |||||||||
Total short-term and current maturities of long-term debt | $ | 461 | $ | 468 | |||||||
Long-term debt: | |||||||||||
0.375% senior notes due July 2023 (Euro-denominated) | 542 | 531 | |||||||||
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) | 646 | 632 | |||||||||
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) | 542 | 531 | |||||||||
5.450% senior notes due March 2028 | 900 | — | |||||||||
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) | 542 | 531 | |||||||||
3.000% senior notes due July 2031 (British Pound-denominated) | 646 | 632 | |||||||||
5.600% senior notes due March 2033 | 900 | — | |||||||||
4.400% senior notes due July 2049 | 2,000 | 2,000 | |||||||||
U.S. dollar commercial paper notes | 1,418 | 2,329 | |||||||||
Euro commercial paper notes | 1,265 | 1,210 | |||||||||
Revolving credit facility | 47 | 35 | |||||||||
Term loan facility | 200 | 200 | |||||||||
Unamortized discount and deferred financing costs | (123) | (120) | |||||||||
Finance lease and other financing obligations | 518 | 539 | |||||||||
Total long-term debt | $ | 21,943 | $ | 20,950 | |||||||
(In millions) | Maturity | Weighted-Average Interest Rate | Outstanding Borrowings | ||||||||||||||
Foreign lines of credit | n/a | 40.08% | $ | 221 | |||||||||||||
U.S. dollar commercial paper notes | various | 5.24% | 1,418 | ||||||||||||||
Euro commercial paper notes | various | 2.85% | 1,265 | ||||||||||||||
Revolving credit facility | June 2027 | 5.94% | 47 | ||||||||||||||
Term loan facility | July 2024 | 6.09% | 200 | ||||||||||||||
Total variable rate debt | 6.79% | $ | 3,151 | ||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
(In millions) | Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||
Available | $ | 181 | $ | 225 | $ | 406 | $ | 135 | $ | 153 | $ | 288 | |||||||||||||||||||||||
Unavailable (1) | 209 | 431 | 640 | 178 | 436 | 614 | |||||||||||||||||||||||||||||
Total | $ | 390 | $ | 656 | $ | 1,046 | $ | 313 | $ | 589 | $ | 902 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||||||||||||||
January 1-31, 2023 | 2,785,000 | $ | 103.18 | 2,785,000 | 14,145,604 | ||||||||||||||||||
February 1-28, 2023 | 3,089,300 | 113.55 | 3,089,300 | 86,056,304 | |||||||||||||||||||
March 1-31, 2023 | 7,401,012 | 112.50 | 7,401,012 | 78,655,292 | |||||||||||||||||||
Total | 13,275,312 | 13,275,312 |
Exhibit Number | Exhibit Description | |||||||
4.1 | ||||||||
4.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS* | Inline XBRL Instance Document - The XBRL Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL Document | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
FISERV, INC. | ||||||||||||||
Date: | April 26, 2023 | By: | /s/ Robert W. Hau | |||||||||||
Robert W. Hau | ||||||||||||||
Chief Financial Officer | ||||||||||||||
Date: | April 26, 2023 | By: | /s/ Kenneth F. Best | |||||||||||
Kenneth F. Best | ||||||||||||||
Chief Accounting Officer |
Date: | April 26, 2023 | By: | /s/ Frank J. Bisignano | ||||||||||||||
Frank J. Bisignano | |||||||||||||||||
Chairman, President and Chief Executive Officer |
Date: | April 26, 2023 | By: | /s/ Robert W. Hau | ||||||||||||||
Robert W. Hau | |||||||||||||||||
Chief Financial Officer |
By: | /s/ Frank J. Bisignano | ||||||||||
Frank J. Bisignano | |||||||||||
Chairman, President and Chief Executive Officer | |||||||||||
April 26, 2023 |
By: | /s/ Robert W. Hau | |||||||
Robert W. Hau | ||||||||
Chief Financial Officer | ||||||||
April 26, 2023 |
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Related Party Fees | Equity investments | ||
Processing, administrative, and other fees | $ 46 | $ 51 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Net income | $ 576 | $ 682 |
Other comprehensive income: | ||
Fair market value adjustment on cash flow hedges | 5 | (1) |
Tax impacts of cash flow hedges, net | (3) | (1) |
Unrealized gain (loss) on defined benefit pension plans | 3 | (1) |
Tax impacts of defined benefit pension plans, net | (1) | 0 |
Foreign currency translation | 115 | 109 |
Tax impacts of foreign currency translation, net | 22 | (22) |
Total other comprehensive income | 147 | 88 |
Comprehensive income | 723 | 770 |
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | 13 | 13 |
Less: other comprehensive income (loss) attributable to noncontrolling interests | 12 | (17) |
Comprehensive income attributable to Fiserv, Inc. | 698 | 774 |
Cost of Services | ||
Other comprehensive income: | ||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | 1 | (1) |
Interest Expense | ||
Other comprehensive income: | ||
Reclassification adjustment for net realized (gains) losses on cash flow hedges | $ 5 | $ 5 |
Consolidated Balance Sheets - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets | ||
Cash and cash equivalents | $ 1,046 | $ 902 |
Trade accounts receivable, less allowance for doubtful accounts | 3,340 | 3,585 |
Prepaid expenses and other current assets | 1,762 | 1,575 |
Settlement assets | 14,141 | 21,482 |
Total current assets | 20,289 | 27,544 |
Property and equipment, net | 2,002 | 1,958 |
Intangible assets, net | 11,994 | 12,415 |
Goodwill | 37,017 | 36,811 |
Contract costs, net | 912 | 905 |
Investments in unconsolidated affiliates | 2,362 | 2,403 |
Other long-term assets | 1,972 | 1,833 |
Total assets | 76,548 | 83,869 |
Liabilities and Equity | ||
Accounts payable and accrued expenses | 3,569 | 3,883 |
Short-term and current maturities of long-term debt | 461 | 468 |
Contract liabilities | 692 | 625 |
Settlement obligations | 14,141 | 21,482 |
Total current liabilities | 18,863 | 26,458 |
Long-term debt | 21,943 | 20,950 |
Deferred income taxes | 3,520 | 3,602 |
Long-term contract liabilities | 273 | 235 |
Other long-term liabilities | 995 | 936 |
Total liabilities | 45,594 | 52,181 |
Commitments and Contingencies (see Note 17) | ||
Redeemable Noncontrolling Interests | 160 | 161 |
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 shares issued | 8 | 8 |
Additional paid-in capital | 22,946 | 23,011 |
Accumulated other comprehensive loss | (1,054) | (1,189) |
Retained earnings | 17,939 | 17,376 |
Treasury stock, at cost, 165 million and 154 million shares | (9,762) | (8,378) |
Total Fiserv, Inc. shareholders’ equity | 30,077 | 30,828 |
Noncontrolling interests | 717 | 699 |
Total equity | 30,794 | 31,527 |
Total liabilities and equity | 76,548 | 83,869 |
Customer relationships, net | ||
Assets | ||
Intangible assets, net | 7,973 | 8,424 |
Other intangible assets, net | ||
Assets | ||
Intangible assets, net | $ 4,021 | $ 3,991 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
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 | 784,000,000 |
Treasury stock (in shares) | 165,000,000 | 154,000,000 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Cash flows from operating activities: | ||
Net income | $ 576 | $ 682 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and other amortization | 352 | 313 |
Amortization of acquisition-related intangible assets | 433 | 486 |
Amortization of financing costs and debt discounts | 10 | 11 |
Share-based compensation | 93 | 61 |
Deferred income taxes | (87) | (183) |
Net loss (gain) on sale of businesses and other assets | 4 | (147) |
Loss (income) from investments in unconsolidated affiliates | 12 | (106) |
Distributions from unconsolidated affiliates | 11 | 19 |
Other operating activities | (1) | 3 |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||
Trade accounts receivable | 255 | (60) |
Prepaid expenses and other assets | (224) | (130) |
Contract costs | (66) | (88) |
Accounts payable and other liabilities | (336) | (78) |
Contract liabilities | 98 | 32 |
Net cash provided by operating activities | 1,130 | 815 |
Cash flows from investing activities: | ||
Capital expenditures, including capitalized software and other intangibles | (339) | (331) |
Net proceeds from sale of businesses and other assets | 0 | 175 |
Distributions from unconsolidated affiliates | 34 | 61 |
Purchases of investments | (5) | (8) |
Proceeds from sale of investments | 0 | 3 |
Other investing activities | (4) | 0 |
Net cash used in investing activities | (314) | (100) |
Cash flows from financing activities: | ||
Debt proceeds | 2,071 | 705 |
Debt repayments | (424) | (1,086) |
Net (repayments of) proceeds from commercial paper and short-term borrowings | (781) | 218 |
Payments of debt financing costs | (15) | 0 |
Proceeds from issuance of treasury stock | 29 | 43 |
Purchases of treasury stock, including employee shares withheld for tax obligations | (1,530) | (544) |
Settlement activity, net | (460) | (400) |
Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (8) | (13) |
Other financing activities | (31) | 0 |
Net cash used in financing activities | (1,149) | (1,077) |
Effect of exchange rate changes on cash and cash equivalents | 17 | (10) |
Net change in cash and cash equivalents | (316) | (372) |
Cash and cash equivalents, beginning balance | 3,192 | 3,205 |
Cash and cash equivalents, ending balance | $ 2,876 | $ 2,833 |
Basis of Presentation and Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 months ended March 31, 2023 and 2022 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, 2022. Principles of Consolidation The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a majority controlling financial interest. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Control is typically 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 (loss) 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 of between 20% and 50%; however, for partnerships and limited liability companies, an ownership interest of between 3% and 50% or board of director representation may also constitute significant influence. The Company maintains a majority controlling financial 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 10). 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. Cash and Cash Equivalents Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less and 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. Cash and cash equivalents held on behalf of merchants and other payees are included in settlement assets in the consolidated balance sheets. The changes in settlement cash and cash equivalents are included in settlement activity, net within cash flows from financing activities in the consolidated statements of cash flows. The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows at:
Allowance for Doubtful Accounts The Company analyzes the collectability of trade accounts receivable by considering historical bad debts and issued client credits, 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 $60 million and $52 million at March 31, 2023 and December 31, 2022, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses represent advance payments for goods and services to be consumed in the future, such as maintenance, postage and insurance, and totaled $507 million and $431 million at March 31, 2023 and December 31, 2022, respectively. Other current assets, including Clover Capital cash advances and settlement advance cash payments, totaled $1,255 million and $1,144 million at March 31, 2023 and December 31, 2022, respectively. The Company offers merchants advance access to capital through its Clover Capital cash advance program. Under this program, merchants sell fixed amounts of their future credit card receivables to the Company in exchange for an up-front purchase price payment. Future credit card receivables purchased by the Company under the Clover Capital program were $175 million and $164 million at March 31, 2023 and December 31, 2022, respectively. The Company maintained a reserve of $8 million and $7 million at March 31, 2023 and December 31, 2022, respectively, based on an estimate of uncollectible amounts. The Company also offers merchants within its international operations the opportunity to receive settlement advance cash payments for their receivables, including when the cardholders have elected to pay such merchants over time in installments. The Company maintains short-term lines of credit with foreign banks and alliance partners to fund such anticipated settlement activity (see Note 9). These local functional currency arrangements are primarily associated with the Company’s operations in Latin America, the most significant of which are denominated in Argentine peso and Brazilian real. The Company’s outstanding cash advances from card issuers related to this settlement funding activity were $286 million and $264 million at March 31, 2023 and December 31, 2022, respectively. Settlement Assets and Obligations Settlement assets and obligations represent intermediary balances arising from the settlement process which involves the transferring of funds between card issuers, payment networks, processors, merchants and consumers, and collateral amounts held to manage merchant credit risk, primarily associated with the Company’s merchant acquiring services. As a processor, the Company facilitates the clearing and settlement activity for the merchant and records settlement assets and obligations upon processing a payment transaction. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners, merchants or direct consumers. Settlement obligations represent amounts payable to merchants and payees. Certain merchant settlement assets (included within settlement receivables) that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership, but which the Company has the right to use, 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 a 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 mitigate this risk. Collateral held by the Company, or held by partner banks for the Company’s benefit, 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 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 $15 million and $8 million for the three months ended March 31, 2023 and 2022, respectively. The amount of collateral available to the Company was $1.3 billion and $1.5 billion at March 31, 2023 and December 31, 2022, respectively. The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of merchant collateral. 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 factors such as changes in economic conditions or increases in merchant fraud. The aggregate merchant credit loss allowance was $33 million and $29 million at March 31, 2023 and December 31, 2022, 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 2022 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 interest or currency exchange rate environments; a shift in strategic initiatives; a deterioration in financial performance or in the success of merchant alliances and relationships within a particular reporting unit; or significant changes in the composition of, or assumptions used in, the quantitative test on certain of the Company’s reporting units (such as an increase in risk-adjusted discount rates) could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment. Additionally, a significant change in a merchant alliance business relationship or operating performance could result in a material goodwill impairment charge. There is no accumulated goodwill impairment for the Company through March 31, 2023. Other Equity Investments The Company maintains investments, of which it does not have significant influence, in various equity securities without a readily determinable fair value. Such investments totaled $137 million and $135 million at March 31, 2023 and December 31, 2022, 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 expense in the consolidated statements of income for the period. Adjustments made to the values recorded for certain equity securities and gains and losses from sales of equity securities during the three months ended March 31, 2023 and 2022, were not significant. Foreign Currency The U.S. dollar is the functional currency of the Company’s U.S.-based businesses and certain foreign-based businesses. Where the functional currency differs from the U.S. dollar, assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the reporting period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are included in determining net income for the reporting period. Financial statements of subsidiaries located in highly inflationary economies outside of the U.S. are remeasured into U.S. dollars, and the foreign currency gains and losses from the remeasurement of monetary assets and liabilities are reflected in the consolidated statements of income, rather than as foreign currency translation within accumulated other comprehensive loss in the consolidated balance sheets. The remeasurement of monetary assets and liabilities in highly inflationary economies, primarily Argentina, resulted in foreign currency exchange losses of $18 million and $5 million for the three months ended March 31, 2023 and 2022, respectively. 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 fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries (see Note 12). Accordingly, foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation, net of tax, within other comprehensive income in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss within the consolidated balance sheets until the sale or complete liquidation of the underlying foreign subsidiaries. Derivatives Derivatives are entered into for periods consistent with related underlying exposures and are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a net investment hedge, changes in the fair value of the derivative, net of tax, are recorded in the foreign currency translation component of other comprehensive income until the sale or complete liquidation of the underlying net investment. If the derivative is designated as a fair value hedge, changes in the fair value or the derivative are recorded in the same line item as the changes in the fair value of the hedged item and recognized in the consolidated statements of income. To the extent a derivative is not designated as a hedge, changes in fair value are recognized in the consolidated statements of income. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes. 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:
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Recent Accounting Pronouncements |
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Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which among other items, requires that entities disclose current period gross write-offs by year of origination for financing receivables and net investments in leases. For public entities, the provisions within ASU 2022-02 are to be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2022-02 effective January 1, 2023, and the adoption did not have a material impact on the Company’s financial statement disclosures for the three months ended March 31, 2023. In 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”), which clarifies the guidance in Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“Topic 820”), when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with ASC Topic 820. For public entities, ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The provisions within ASU 2022-03 are to be applied prospectively with any adjustments from the adoption recognized in earnings and disclosed on the date of adoption. The Company is currently assessing the impact the adoption of ASU 2022-03 will have on its consolidated financial statements and disclosures.
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Revenue Recognition |
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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 13% and 14% of total revenue during the three months ended March 31, 2023 and 2022, respectively.
Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers:
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 $223 million of revenue during the three months ended March 31, 2023 that was included in the contract liabilities 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 March 31, 2023:
The Company applies the optional exemption under ASC Topic 606, Revenue from Contracts with Customers (“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.
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Acquisitions and Dispositions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions were accounted for as business combinations using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Purchase price was allocated to the respective identifiable assets acquired and liabilities assumed based on the estimated fair values at the date of acquisitions. The results of operations for the following acquired and divested businesses are included in the consolidated results of the Company from the respective dates of acquisition and through the respective dates of disposition. Pro forma information for these acquired businesses is not provided because they did not have a material effect, individually or in the aggregate, on the Company’s consolidated results of operations. Acquisitions Acquisition of Merchant One On December 20, 2022, the Company acquired Merchant One, Inc. (“Merchant One”), an independent sales organization focused on acquiring merchants in the restaurant, retail and e-commerce industries using an innovative mix of direct and digital marketing strategies, for approximately $302 million, net of $1 million of acquired cash. Merchant One is included within the Acceptance segment and enhances the Company’s merchant distribution and sales force channels. During the three months ended March 31, 2023, the Company identified and recorded measurement period adjustments to the preliminary Merchant One purchase price allocation, including refinements to valuations of acquired intangible assets, 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 an increase to goodwill of approximately $61 million and a decrease in identifiable intangible assets, including customer relationships. Such measurement period adjustments did not have a material impact on the Company’s consolidated statement of income. The updated preliminary allocation of purchase price resulted in the recognition of identifiable intangible assets of approximately $118 million, goodwill of approximately $179 million and other net assets acquired of approximately $6 million. The allocation of the purchase price is preliminary and is subject to further adjustment, pending additional refinement and final completion of valuations. Goodwill, which is deductible for tax purposes, is primarily attributed to the anticipated value created by expanding the reach of the Clover® cloud-based POS and business management platform, and select value-added services that enable the Company to deliver new and innovative capabilities to Merchant One’s clients. The preliminary amounts allocated to identifiable intangible assets are as follows:
Acquisition of Finxact On April 1, 2022, the Company acquired a remaining ownership interest in Finxact, Inc. (“Finxact”), a developer of cloud-native banking solutions powering digital transformation throughout the financial services sector, for $645 million, net of $27 million of acquired cash. The Company previously held a noncontrolling equity interest in Finxact, which was accounted for under the equity method. 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 $110 million, included within income from investments in unconsolidated affiliates in the consolidated statement of income during the three months ended June 30, 2022. Finxact is included within the Fintech segment and advances the Company’s digital banking strategy, expanding its account processing, digital, and payments solutions. The allocation of purchase price recorded for Finxact was finalized in the fourth quarter of 2022 as follows:
Goodwill, which is not deductible for tax purposes, is primarily attributed to the anticipated value created by the combined scale, core platform modernization, and accelerated delivery of enhanced digital banking solutions offered to financial institutions of all sizes. The amounts allocated to identifiable intangible assets were as follows:
Other Acquisitions On December 29, 2022, the Company acquired OrangeData S.A. (“Yacaré”), an Argentina-based payment service provider that enables customers to transact at merchant locations using QR codes. Yacaré is included within the Acceptance segment and enhances the Company’s instant payment transaction capabilities. On September 1, 2022, the Company acquired NexTable, Inc. (“NexTable”), a provider of cloud-based reservation and table management solutions for restaurants. NexTable is included within the Acceptance segment and expands the Company’s end-to-end restaurant solutions. On June 1, 2022, the Company acquired The LR2 Group, LLC (“City POS”), an independent sales organization that promotes payment processing services and facilitates the sale of POS equipment for merchants. City POS is included within the Acceptance segment and expands the Company’s merchant services business. The Company acquired these businesses for an aggregate purchase price of $44 million, including earn-out provisions estimated at a fair value of $6 million (see Note 7). The allocation of purchase price for these acquisitions resulted in the recognition of identifiable intangible assets of $23 million, goodwill of $22 million and other net assumed liabilities of $1 million. The purchase price allocations for the CityPOS and NexTable acquisitions were finalized in the third and fourth quarters of 2022, respectively. The allocation of the purchase price for Yacaré is preliminary and is subject to further adjustment. Goodwill for these acquisitions, of which $17 million is deductible for tax purposes, is primarily attributed to the value created by expanding the reach of the Company’s payment solutions and enhancing omnichannel capabilities. The amounts allocated to identifiable intangible assets for other acquisitions acquired in 2022 were as follows:
Dispositions Disposition of Fiserv Costa Rica and Systems Integration Services On October 17, 2022, the Company sold Fiserv Costa Rica, S.A. and its Systems Integration Services (“SIS”) operations, which provides information technology engineering services in the U.S. and India, to a single buyer, for an aggregate sales price of $49 million. The Company recognized a pre-tax gain of $44 million on the sales, recorded within net gain on sale of businesses and other assets, with a related tax expense of $8 million recorded within the income tax provision, in the consolidated statement of income for the year ended December 31, 2022. The Company recognized a pre-tax loss of $3 million, recorded within net loss (gain) on sale of businesses and other assets in the three months ended March 31, 2023, associated with final working capital adjustments related to the disposition of Fiserv Costa Rica, S.A. Fiserv Costa Rica, S.A. and SIS were reported primarily within the Fintech segment. Disposition of Korea Operations On September 30, 2022, the Company sold its Korea operations, which were reported within the Acceptance segment, for total consideration of $50 million, consisting of $43 million in net cash and an equity interest in the buyer of $7 million. The Company recognized a pre-tax loss of $127 million on the sale, recorded within net gain on sale of businesses and other assets in the consolidated statement of income for the year ended December 31, 2022. The loss was comprised of the difference between the consideration received and the net carrying amount of the business, including $40 million of allocated goodwill, $48 million of customer relationship net intangible assets and $56 million of accumulated foreign currency translation losses, which were reclassified from accumulated other comprehensive loss.
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Identifiable intangible assets consisted of the following:
Amortization expense associated with the above identifiable intangible assets was as follows:
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Investments in Unconsolidated Affiliates |
3 Months Ended |
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Mar. 31, 2023 | |
Investments in and Advances to Affiliates [Abstract] | |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates The Company maintains investments in various affiliates that are accounted for as equity method investments, the most significant of which are related to the Company’s merchant alliances. The Company’s share of net income or loss from these investments is reported within (loss) 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. The Company maintains noncontrolling ownership interests in Sagent M&C, LLC (“Sagent”) and defi SOLUTIONS Group, LLC (collectively the “Lending Joint Ventures”), which are accounted for under the equity method. In March 2022, Sagent completed a transaction with a third party for the contribution from and the sale by such third party to Sagent of certain intangible and tangible personal property rights, resulting in a dilution of the Company’s ownership interest in Sagent. As a result of the transaction, the Company recognized a pre-tax gain of $80 million within (loss) income from investments in unconsolidated affiliates, with related tax expense of $19 million recorded through the income tax provision, in the consolidated statement of income during the three months ended March 31, 2022. The Company’s remaining noncontrolling ownership interest in Sagent continues to be accounted for as an equity method investment. The Lending Joint Ventures maintain, as amended in April 2022, variable-rate term loan facilities with aggregate outstanding borrowings of $437 million in senior unsecured debt at March 31, 2023 and variable-rate revolving credit facilities with an aggregate borrowing capacity of $83 million with a syndicate of banks, which mature in April 2027. There were $28 million of aggregate outstanding borrowings on the revolving credit facilities at March 31, 2023. The Company has guaranteed the debt of the Lending Joint Ventures and does not anticipate that the Lending Joint Ventures will fail to fulfill their debt obligations (see Note 7).
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value MeasurementsThe 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 maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure. The Company also maintains cross-currency rate swap contracts, designated as net investment hedges, to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro. These 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 12). Contingent consideration related to certain of the Company’s acquisitions (see Note 4) is estimated using the present value of a probability-weighted assessment approach based on 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:
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, 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 $20.6 billion and $19.2 billion at March 31, 2023 and December 31, 2022, respectively, and the carrying value was $21.6 billion and $20.6 billion at March 31, 2023 and December 31, 2022, respectively. The Company maintains liabilities for its obligations to perform over the term of its debt guarantee arrangements with the Lending Joint Ventures (see Note 6), which are reported within other long-term liabilities in the consolidated balance sheets. In April 2022, the Lending Joint Ventures amended their respective term loans and revolving credit facilities, increasing aggregate borrowing capacity by $75 million and extending the maturity to April 2027. The Company elected to guarantee this incremental indebtedness, resulting in aggregate guarantees of $520 million. The Company is entitled to receive a defined fee in exchange for its incremental guarantee of this indebtedness. The Company has not made any payments under the guarantees, nor has it been called upon to do so, and does not anticipate that the Lending Joint Ventures will fail to fulfill their debt obligations. 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 $38 million and $40 million approximates the fair value at March 31, 2023 and December 31, 2022, respectively (Level 3 of the fair value hierarchy). Such guarantees will be amortized in future periods over the contractual term of the debt. The contingent component of the Company’s debt guarantee arrangements represents the current expected credit losses to which the Company is exposed. The amount of the liability is estimated based on certain financial metrics of the Lending 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. The Company recognized $2 million and $3 million during the three months ended March 31, 2023 and 2022, respectively, within other expense 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. 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 and other intangible assets, and are subject to fair value adjustment in certain circumstances.
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Accounts Payable and Accrued Expenses |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following:
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The Company’s debt consisted of the following:
The Company was in compliance with all financial debt covenants during the first three months of 2023. The Company maintains a senior unsecured multicurrency revolving credit facility, which matures in June 2027 and provides for a maximum aggregate principal amount of availability of $6.0 billion. Borrowings under the credit facility bear interest at a variable rate based on a Secured Overnight Financing Rate (“SOFR”), or a base rate in the case of U.S. dollar borrowings, in each case, plus a specified margin based on the Company’s long-term debt rating in effect from time to time (5.940% at March 31, 2023). At March 31, 2023, the 0.375% Euro-denominated senior notes due in July 2023 and 3.800% senior notes due in October 2023 were 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. The Company maintains certain short-term lines of credit with foreign banks and alliance partners primarily to fund settlement activity associated with operations in Latin America. Weighted-average interest rates under the foreign lines of credit were 40.076% and 30.578% at March 31, 2023 and December 31, 2022, respectively. The Company also maintains a term loan credit agreement with a syndicate of financial institutions. Borrowings under the term loan facility bear interest at a variable rate based on one-month LIBOR or on a base rate, plus, in each case, a specified margin based on the Company’s long-term debt rating in effect from time to time, and mature in July 2024. The variable interest rate on the term loan facility borrowings was 6.090% and 5.639% at March 31, 2023 and December 31, 2022, respectively. On March 2, 2023, the Company completed the public offering and issuance of $1.8 billion of senior notes, comprised of $900 million aggregate principal amount of 5.45% senior notes due in March 2028 and $900 million aggregate principal amount of 5.60% senior notes due in March 2033. The indentures governing these senior notes contain covenants that, among other matters, limit (i) the Company’s ability to consolidate or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, another person, (ii) the Company’s and certain of its subsidiaries’ ability to create or assume liens, and (iii) the Company’s and certain of its subsidiaries’ ability to engage in sale and leaseback transactions. The Company may, at its option, redeem these senior notes, in whole or in part, at any time and from time to time at the applicable redemption price. Interest on these senior notes are paid semi-annually. The Company used the net proceeds from these senior notes offerings for general corporate purposes, including the repayment of U.S. commercial paper notes. The Company maintains unsecured U.S. dollar and Euro commercial paper programs. From time to time, the Company may issue under these programs U.S. dollar commercial paper with maturities of up to 397 days from the date of issuance and Euro commercial paper with maturities of up to 183 days from the date of issuance. Outstanding borrowings under the U.S. dollar program were $1.4 billion and $2.3 billion at March 31, 2023 and December 31, 2022, respectively, with weighted average interest rates of 5.242% and 4.818%, respectively. Outstanding borrowings under the Euro program were $1.3 billion and $1.2 billion at March 31, 2023 and December 31, 2022, respectively, with weighted average interest rates of 2.850% and 1.918%, respectively. The Company intends to maintain available capacity under its revolving credit facility in an amount at least equal to the aggregate outstanding borrowings under its commercial paper programs. Outstanding borrowings under the commercial paper programs are classified in the consolidated balance sheets as long-term as the Company has the intent to refinance this commercial paper on a long-term basis through the continued issuance of new commercial paper upon maturity, and the Company also has the ability to refinance such commercial paper under its revolving credit facility.
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Redeemable Noncontrolling Interests |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests The minority partner in one of the Company’s existing merchant alliance joint ventures maintains a redeemable noncontrolling interest which is presented outside of equity and carried at its estimated redemption value. The minority partner owns 1% of the equity in the joint venture; in addition, the minority partner is entitled to a contractually determined share of the entity’s income. The agreement contains redemption features whereby the interest held by the minority partner is 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 venture may be terminated by either party for convenience any time after December 31, 2024. 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 interest 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 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. In conjunction with the termination, the joint venture minority partner elected to exercise its option to purchase certain additional merchant contracts of the joint venture. The Company received proceeds of $175 million from the sale of such merchant contracts of the joint venture, resulting in the recognition of a pre-tax gain of $147 million within net loss (gain) on sale of businesses and other assets, with related tax expense of $9 million recorded through the income tax provision, in the consolidated statement of income during the three months ended March 31, 2022. The following table presents a summary of the redeemable noncontrolling interests activity during the three months ended March 31:
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Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity The following tables provide changes in equity during the three months ended March 31, 2023 and 2022:
(1)The total net income presented in equity for the three months ended March 31, 2023 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $7 million not included in equity.
(1)The total net income presented in equity for the three months ended March 31, 2022 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $10 million not included in equity.
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Accumulated Other Comprehensive Loss |
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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:
Cash Flow Hedges The Company maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure (see Note 7) to the Indian Rupee. The notional amount of these derivatives was $356 million and $346 million at March 31, 2023 and December 31, 2022, respectively. Based on the amounts recorded in accumulated other comprehensive loss at March 31, 2023, the Company estimates that it will recognize losses of approximately $2 million in cost of processing and services during the next twelve months as foreign exchange forward contracts settle. The Company previously entered into treasury lock agreements (“Treasury Locks”), designated as cash flow hedges 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 Corporation (“First Data”) and its subsidiaries. In 2019, concurrent with the issuance of U.S dollar-denominated senior notes, the Treasury Locks were settled resulting in a loss, net of income taxes, and recorded in accumulated other comprehensive loss that is being amortized to earnings over the terms of the originally forecasted interest payments. The unamortized balance recorded in accumulated other comprehensive loss related to the Treasury Locks was $127 million and $130 million at March 31, 2023 and December 31, 2022, respectively. Based on the amounts recorded in accumulated other comprehensive loss at March 31, 2023, the Company estimates that it will recognize approximately $15 million in net interest expense during the next twelve months related to settled interest rate hedge contracts. Net Investment Hedges 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 fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries. At March 31, 2023, aggregate notional cross-currency rate swaps of 400 million Euro were designated as net investment hedges to hedge a portion of the Company’s net investment in certain subsidiaries whose functional currency is the Euro. The Company has designated its Euro- and British Pound-denominated senior notes and Euro commercial paper 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. The following table outlines the terms of the Company’s cross-currency rate swap contracts at March 31, 2023:
Foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation within other comprehensive income 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. Foreign currency transaction (losses) gains, net of income tax, related to net investment hedges that were recorded in other comprehensive income in the consolidated statements of comprehensive income were as follows:
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based CompensationThe Company recognized $93 million and $61 million of share-based compensation expense during the three months ended March 31, 2023 and 2022, respectively. The Company’s share-based compensation awards are typically granted in the first quarter of the year, and may also occur throughout the year in conjunction with acquisitions of businesses. At March 31, 2023, the total remaining unrecognized compensation cost for restricted stock units and awards, performance share units, and unvested stock options, net of estimated forfeitures, of $669 million is expected to be recognized over a weighted-average period of 2.2 years. A summary of restricted stock unit, restricted stock award and performance share unit activity during the three months ended March 31, 2023 is as follows:
A summary of stock option activity during the three months ended March 31, 2023 is as follows:
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Income Taxes |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company’s income tax provision and effective income tax rate were as follows:
The income tax provision as a percentage of income before income taxes and (loss) income from investments in unconsolidated affiliates was 17.4% and 14.5% for the three months ended March 31, 2023 and 2022, respectively. The effective income tax rate for the three months ended March 31, 2023 and 2022 includes discrete tax benefits from subsidiary restructurings and equity compensation related tax benefits. The Company’s potential liability for unrecognized tax benefits before interest and penalties was approximately $95 million at March 31, 2023. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $10 million over the next twelve months as a result of possible closure of tax audits, potential audit settlements, and the lapse of the statutes of limitations in various jurisdictions. As of March 31, 2023, the Company’s U.S. federal income tax return for 2021 and 2022, and tax returns in certain states and foreign jurisdictions for 2015 through 2022, remain subject to examination by taxing authorities.
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Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
For the three months ended March 31, 2023 and 2022, stock options for 2.2 million and 2.0 million shares, respectively, were excluded from the calculation of weighted-average outstanding shares - diluted because their impact was anti-dilutive.
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Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Information | Cash Flow Information Supplemental cash flow information consisted of the following:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2023 | |
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. The Company maintained accruals of $21 million at both March 31, 2023 and December 31, 2022, related to its various legal proceedings, primarily associated with the Company’s merchant acquiring business and certain tax matters. The Company’s estimate of the possible range of exposure for various litigation matters in excess of amounts accrued is $0 million to approximately $60 million. In the opinion of management, the liabilities, if any, which may ultimately result from such legal proceedings 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, which are separate and distinct from the settlement payment transactions described in Note 1, 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 $1.5 billion and $1.7 billion at March 31, 2023 and December 31, 2022, 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.
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Merchant Alliances A portion of the Company’s business is conducted through merchant alliances between the Company and financial institutions. 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 based on contractual pricing. 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 in, but not control of, an alliance, the Company uses the equity method 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 $46 million and $47 million for the three months ended March 31, 2023 and 2022, 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 contracts with merchants 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, which governs the Company’s provision of transaction processing services to the alliance. The Company had approximately $43 million of amounts due from unconsolidated merchant alliances included within trade accounts receivable, net in the Company’s consolidated balance sheets at both March 31, 2023 and December 31, 2022. 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 totaled $1 million and $5 million during the three months ended March 31, 2023 and 2022, respectively, and were primarily recognized as processing and services revenue in the consolidated statements of income.
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Business Segment Information |
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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 solutions include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Clover®, the Company’s cloud-based POS and integrated commerce operating system for small and mid-sized businesses and independent software vendors; and CaratSM, the Company’s integrated operating system for large businesses. 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 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 global 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, certain assets or investments, costs associated with acquisition and divestiture activity, certain transition services revenue associated with various dispositions, and the Company’s Output Solutions postage reimbursements. Operating results for each segment were as follows:
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Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements for the three months ended March 31, 2023 and 2022 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, 2022.
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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 majority controlling financial interest. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Control is typically 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 (loss) 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 of between 20% and 50%; however, for partnerships and limited liability companies, an ownership interest of between 3% and 50% or board of director representation may also constitute significant influence. The Company maintains a majority controlling financial 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
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Use of Estimates | 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.
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Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents consist of cash and investments with original maturities of 90 days or less and 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. Cash and cash equivalents held on behalf of merchants and other payees are included in settlement 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 and issued client credits, 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 represent intermediary balances arising from the settlement process which involves the transferring of funds between card issuers, payment networks, processors, merchants and consumers, and collateral amounts held to manage merchant credit risk, primarily associated with the Company’s merchant acquiring services. As a processor, the Company facilitates the clearing and settlement activity for the merchant and records settlement assets and obligations upon processing a payment transaction. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners, merchants or direct consumers. Settlement obligations represent amounts payable to merchants and payees. Certain merchant settlement assets (included within settlement receivables) that relate to settlement obligations are held by partner banks to which the Company does not have legal ownership, but which the Company has the right to use, 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.
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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 a 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 mitigate this risk. Collateral held by the Company, or held by partner banks for the Company’s benefit, 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 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 $15 million and $8 million for the three months ended March 31, 2023 and 2022, respectively. The amount of collateral available to the Company was $1.3 billion and $1.5 billion at March 31, 2023 and December 31, 2022, respectively. The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of merchant collateral. 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 factors such as changes in economic conditions or increases in merchant fraud.
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Goodwill | GoodwillGoodwill 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 2022 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 interest or currency exchange rate environments; a shift in strategic initiatives; a deterioration in financial performance or in the success of merchant alliances and relationships within a particular reporting unit; or significant changes in the composition of, or assumptions used in, the quantitative test on certain of the Company’s reporting units (such as an increase in risk-adjusted discount rates) could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment. |
Other Equity Investments | Other Equity Investments The Company maintains investments, of which it does not have significant influence, in various equity securities without a readily determinable fair value. Such investments totaled $137 million and $135 million at March 31, 2023 and December 31, 2022, 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 expense in the consolidated statements of income for the period. Adjustments made to the values recorded for certain equity securities and gains and losses from sales of equity securities during the three months ended March 31, 2023 and 2022, were not significant.
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Foreign Currency | Foreign Currency The U.S. dollar is the functional currency of the Company’s U.S.-based businesses and certain foreign-based businesses. Where the functional currency differs from the U.S. dollar, assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the reporting period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are included in determining net income for the reporting period. Financial statements of subsidiaries located in highly inflationary economies outside of the U.S. are remeasured into U.S. dollars, and the foreign currency gains and losses from the remeasurement of monetary assets and liabilities are reflected in the consolidated statements of income, rather than as foreign currency translation within accumulated other comprehensive loss in the consolidated balance sheets. The remeasurement of monetary assets and liabilities in highly inflationary economies, primarily Argentina, resulted in foreign currency exchange losses of $18 million and $5 million for the three months ended March 31, 2023 and 2022, respectively. 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 fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries (see Note 12). Accordingly, foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation, net of tax, within other comprehensive income in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss within the consolidated balance sheets until the sale or complete liquidation of the underlying foreign subsidiaries.
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Derivatives | Derivatives Derivatives are entered into for periods consistent with related underlying exposures and are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a net investment hedge, changes in the fair value of the derivative, net of tax, are recorded in the foreign currency translation component of other comprehensive income until the sale or complete liquidation of the underlying net investment. If the derivative is designated as a fair value hedge, changes in the fair value or the derivative are recorded in the same line item as the changes in the fair value of the hedged item and recognized in the consolidated statements of income. To the extent a derivative is not designated as a hedge, changes in fair value are recognized in the consolidated statements of income. The Company’s policy is to enter into derivatives with creditworthy institutions and not to enter into such derivatives for speculative purposes.
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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 | Recent Accounting Pronouncements In 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which among other items, requires that entities disclose current period gross write-offs by year of origination for financing receivables and net investments in leases. For public entities, the provisions within ASU 2022-02 are to be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2022-02 effective January 1, 2023, and the adoption did not have a material impact on the Company’s financial statement disclosures for the three months ended March 31, 2023. In 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”), which clarifies the guidance in Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“Topic 820”), when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with ASC Topic 820. For public entities, ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The provisions within ASU 2022-03 are to be applied prospectively with any adjustments from the adoption recognized in earnings and disclosed on the date of adoption. The Company is currently assessing the impact the adoption of ASU 2022-03 will have on its consolidated financial statements and disclosures.
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Revenue Recognition | Revenue RecognitionThe 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 ASC Topic 606, Revenue from Contracts with Customers (“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 | Fair Value MeasurementsThe 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 maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure. The Company also maintains cross-currency rate swap contracts, designated as net investment hedges, to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro. These 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 12). Contingent consideration related to certain of the Company’s acquisitions (see Note 4) is estimated using the present value of a probability-weighted assessment approach based on 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. |
Basis of Presentation and Summary of Significant Accounting Policies (Tables) |
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Restrictions on cash and cash equivalents | The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows at:
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Schedule of cash and cash equivalents | The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows at:
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Schedule of interest expense, net | Interest expense, net consisted of the following:
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Revenue Recognition (Tables) |
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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 13% and 14% of total revenue during the three months ended March 31, 2023 and 2022, respectively.
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Contract with customer, asset and liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers:
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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 March 31, 2023:
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Acquisitions and Dispositions (Tables) |
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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:
The amounts allocated to identifiable intangible assets for other acquisitions acquired in 2022 were as follows:
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Schedule of purchase price allocation | The allocation of purchase price recorded for Finxact was finalized in the fourth quarter of 2022 as follows:
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Intangible Assets (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets by class | Identifiable intangible assets consisted of the following:
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Schedule of amortization expense of intangible assets | Amortization expense associated with the above identifiable intangible assets was as follows:
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Accounts Payable and Accrued Expenses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following:
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt, net of discounts and debt issuance costs | The Company’s debt consisted of the following:
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Redeemable Noncontrolling Interests (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of redeemable noncontrolling interests activity | The following table presents a summary of the redeemable noncontrolling interests activity during the three months ended March 31:
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Equity (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stockholders equity | The following tables provide changes in equity during the three months ended March 31, 2023 and 2022:
(1)The total net income presented in equity for the three months ended March 31, 2023 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $7 million not included in equity.
(1)The total net income presented in equity for the three months ended March 31, 2022 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interests of $10 million not included in equity.
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Disclosure of derivative terms | The following table outlines the terms of the Company’s cross-currency rate swap contracts at March 31, 2023:
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Schedule of net investment hedges in accumulated other comprehensive income (loss) | Foreign currency transaction (losses) gains, net of income tax, related to net investment hedges that were recorded in other comprehensive income in the consolidated statements of comprehensive income were as follows:
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Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock and performance activity | A summary of restricted stock unit, restricted stock award and performance share unit activity during the three months ended March 31, 2023 is as follows:
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Summary of stock option activity | A summary of stock option activity during the three months ended March 31, 2023 is as follows:
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Cash Flow Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow information | Supplemental cash flow information consisted of the following:
|
Business Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information | Operating results for each segment were as follows:
|
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Business Acquisition [Line Items] | |||
Allowance for doubtful accounts | $ 60,000,000 | $ 52,000,000 | |
Prepaid expenses | 507,000,000 | 431,000,000 | |
Other current assets | 1,255,000,000 | 1,144,000,000 | |
Accumulated impairment loss | 0 | ||
Equity securities without a readily determinable fair value | 137,000,000 | 135,000,000 | |
Foreign currency translation loss | 18,000,000 | $ 5,000,000 | |
Merchants Utilizing Clover Capital Cash Advance Program | |||
Business Acquisition [Line Items] | |||
Receivable, before allowance for credit loss, current | 175,000,000 | 164,000,000 | |
Allowance for credit loss, current | 8,000,000 | 7,000,000 | |
Foreign Banks and Alliance Partners | |||
Business Acquisition [Line Items] | |||
Receivable, before allowance for credit loss, current | 286,000,000 | 264,000,000 | |
Merchant credit losses | |||
Business Acquisition [Line Items] | |||
Aggregate merchant credit loss expense | 15,000,000 | $ 8,000,000 | |
Collateral held | 1,300,000,000 | 1,500,000,000 | |
Loss contingency accrual | $ 33,000,000 | $ 29,000,000 |
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Accounting Policies [Abstract] | |||
Cash and cash equivalents on the consolidated balance sheets | $ 1,046 | $ 902 | $ 863 |
Cash and cash equivalents included in settlement assets | 1,823 | 2,283 | 1,961 |
Other restricted cash | 7 | 7 | 9 |
Total cash and cash equivalents on the consolidated statements of cash flows | $ 2,876 | $ 3,192 | $ 2,833 |
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Accounting Policies [Abstract] | ||
Interest expense | $ (210) | $ (171) |
Interest income | 8 | 3 |
Interest expense, net | $ (202) | $ (168) |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,547 | $ 4,138 |
Operating segments | Acceptance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,847 | 1,653 |
Operating segments | Fintech | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 792 | 778 |
Operating segments | Payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,629 | 1,462 |
Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 279 | $ 245 |
Geographic Concentration Risk | Non-US | Revenue from Contract with Customer Benchmark | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of concentration risk | 13.00% | 14.00% |
Processing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,163 | $ 2,927 |
Processing | Operating segments | Acceptance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,554 | 1,403 |
Processing | Operating segments | Fintech | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 416 | 405 |
Processing | Operating segments | Payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,187 | 1,113 |
Processing | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6 | 6 |
Hardware, print and card production | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 545 | 470 |
Hardware, print and card production | Operating segments | Acceptance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 246 | 225 |
Hardware, print and card production | Operating segments | Fintech | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12 | 9 |
Hardware, print and card production | Operating segments | Payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 287 | 236 |
Hardware, print and card production | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Professional services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 196 | 183 |
Professional services | Operating segments | Acceptance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4 | 5 |
Professional services | Operating segments | Fintech | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 112 | 116 |
Professional services | Operating segments | Payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 80 | 62 |
Professional services | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Software maintenance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 143 | 144 |
Software maintenance | Operating segments | Acceptance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Software maintenance | Operating segments | Fintech | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 137 | 138 |
Software maintenance | Operating segments | Payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6 | 6 |
Software maintenance | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
License and termination fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 92 | 88 |
License and termination fees | Operating segments | Acceptance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10 | 14 |
License and termination fees | Operating segments | Fintech | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 53 | 48 |
License and termination fees | Operating segments | Payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 29 | 26 |
License and termination fees | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Output Solutions postage | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 273 | 239 |
Output Solutions postage | Operating segments | Acceptance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Output Solutions postage | Operating segments | Fintech | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Output Solutions postage | Operating segments | Payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Output Solutions postage | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 273 | 239 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 135 | 87 |
Other | Operating segments | Acceptance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 33 | 6 |
Other | Operating segments | Fintech | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 62 | 62 |
Other | Operating segments | Payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 40 | 19 |
Other | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | $ 0 |
Revenue Recognition - Contract with Customer, Assets and Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 595 | $ 551 |
Contract liabilities | $ 965 | $ 860 |
Revenue Recognition - Revenue Recognized (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized which was included in the contract liability balance | $ 223 |
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions |
Mar. 31, 2023
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,722 |
Performance obligations expected to be satisfied, expected timing | 9 months |
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 | $ 1,955 |
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 | $ 1,526 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 970 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,294 |
Performance obligations expected to be satisfied, expected timing |
Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 20, 2022 |
Oct. 17, 2022 |
Sep. 30, 2022 |
Apr. 01, 2022 |
Mar. 31, 2023 |
Sep. 01, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 37,017 | $ 36,811 | |||||||
Tax expense | 124 | $ 98 | |||||||
Part noncash divestiture, amount of consideration received | 0 | $ 111 | |||||||
Disposal Group, Disposed of by Sale | Fiserv Costa Rica, S.A. | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration from sale of business | $ 49 | ||||||||
Gain (loss) on disposition of business | 44 | (3) | |||||||
Tax expense | $ 8 | ||||||||
Disposal Group, Disposed of by Sale | Korea Operations | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration from sale of business | $ 50 | ||||||||
Gain (loss) on disposition of business | (127) | ||||||||
Net proceeds from sale of businesses and other assets | 43 | ||||||||
Part noncash divestiture, amount of consideration received | 7 | ||||||||
Disposal group, including discontinued operation, goodwill | 40 | ||||||||
Disposal group, including discontinued operation, intangible assets | 48 | ||||||||
Disposal group, including discontinued operation, accumulated foreign currency translation loss | $ 56 | ||||||||
Merchant One, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Initial cash payment, net of acquired cash | $ 302 | ||||||||
Acquired cash | 1 | ||||||||
Increase (decrease) in goodwill | $ 61 | ||||||||
Intangible assets | 118 | ||||||||
Goodwill | 179 | ||||||||
Other net assets | $ 6 | ||||||||
Finxact, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 105 | ||||||||
Goodwill | 670 | ||||||||
Other net assets | 1 | ||||||||
Payments for acquisitions of businesses | $ 645 | ||||||||
Pre-tax gain from remeasurement | $ 110 | ||||||||
Other Acquisitions | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 23 | ||||||||
Goodwill | 22 | ||||||||
Payments for acquisitions of businesses | 44 | ||||||||
Earn-out provisions estimated fair value | 6 | ||||||||
Other net assumed liabilities | (1) | ||||||||
Goodwill, expected tax deductible amount | $ 17 |
Acquisitions and Dispositions - Purchase Price Allocation (Details) - USD ($) $ in Millions |
Apr. 01, 2022 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 37,017 | $ 36,811 | |
Finxact, Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 27 | ||
Other net assets | 1 | ||
Intangible assets | 105 | ||
Goodwill | 670 | ||
Total consideration | 803 | ||
Less: Fair value of previously held equity interest | (131) | ||
Total purchase price | $ 672 |
Acquisitions and Dispositions - Gross Carrying Amount and Weighted-Average Useful Life Allocated to Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 20, 2022 |
Apr. 01, 2022 |
Sep. 01, 2022 |
|
Merchant One, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 118 | ||
Weighted-Average Useful Life | 9 years | ||
Merchant One, Inc. | Residual buyouts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 83 | ||
Weighted-Average Useful Life | 9 years | ||
Merchant One, Inc. | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 35 | ||
Weighted-Average Useful Life | 10 years | ||
Finxact, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 105 | ||
Weighted-Average Useful Life | 6 years | ||
Finxact, Inc. | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 6 | ||
Weighted-Average Useful Life | 8 years | ||
Finxact, Inc. | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 90 | ||
Weighted-Average Useful Life | 6 years | ||
Finxact, Inc. | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 9 | ||
Weighted-Average Useful Life | 5 years | ||
Other Acquisitions | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 23 | ||
Weighted-Average Useful Life | 9 years | ||
Other Acquisitions | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 11 | ||
Weighted-Average Useful Life | 10 years | ||
Other Acquisitions | Acquired software and technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 12 | ||
Weighted-Average Useful Life | 7 years |
Intangible Assets - Schedule of Intangible Assets by Class (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,595 | $ 21,685 |
Accumulated Amortization | 9,601 | 9,270 |
Net Book Value | 11,994 | 12,415 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,644 | 14,795 |
Accumulated Amortization | 6,671 | 6,371 |
Net Book Value | 7,973 | 8,424 |
Acquired software and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,360 | 2,510 |
Accumulated Amortization | 1,162 | 1,234 |
Net Book Value | 1,198 | 1,276 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 635 | 633 |
Accumulated Amortization | 310 | 295 |
Net Book Value | 325 | 338 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,109 | 1,146 |
Accumulated Amortization | 605 | 595 |
Net Book Value | 504 | 551 |
Capitalized software and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,847 | 2,601 |
Accumulated Amortization | 853 | 775 |
Net Book Value | $ 1,994 | $ 1,826 |
Intangible Assets - Schedule of Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 595 | $ 625 |
Investments in Unconsolidated Affiliates (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Investments in and Advances to Affiliates [Line Items] | ||
(Loss) income from investments in unconsolidated affiliates | $ (12,000,000) | $ 106,000,000 |
Tax expense | 124,000,000 | 98,000,000 |
Term loan facility | Variable-Rate Term Loan Facilities Due March 2023 | Line of Credit | Lending Joint Ventures | ||
Investments in and Advances to Affiliates [Line Items] | ||
Maximum borrowing capacity | 437,000,000 | |
Long-term debt | 28,000,000 | |
Revolving Credit Facility | Line of Credit | ||
Investments in and Advances to Affiliates [Line Items] | ||
Maximum borrowing capacity | 6,000,000,000 | |
Revolving Credit Facility | Variable-Rate Revolving Credit Facilities Due March 2023 | Line of Credit | Lending Joint Ventures | ||
Investments in and Advances to Affiliates [Line Items] | ||
Maximum borrowing capacity | $ 83,000,000 | |
defi SOLUTIONS Group | ||
Investments in and Advances to Affiliates [Line Items] | ||
(Loss) income from investments in unconsolidated affiliates | 80,000,000 | |
Tax expense | $ 19,000,000 |
Fair Value Measurements - Assets and Liabilities Measured at Fair Value On a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swap contracts designated as net investment hedges | $ 26 | $ 23 |
Level 2 | Accounts payable and accrued expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward exchange contracts designated as cash flow hedges | 2 | 7 |
Level 2 | Other long-term liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward exchange contracts designated as cash flow hedges | 0 | 1 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 6 | 6 |
Contingent consideration | 2 | 2 |
Level 3 | Other long-term liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent debt guarantee | $ 21 | $ 21 |
Fair Value Measurements - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Revolving Credit Facility | Variable-Rate Revolving Credit Facilities Due March 2023 | Line of Credit | Lending Joint Ventures | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Line of credit facility, borrowing capacity increase | $ 75,000,000 | |||
Carrying value | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Total debt | $ 21,600,000,000 | $ 20,600,000,000 | ||
Level 2 | Fair value | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Total debt | 20,600,000,000 | 19,200,000,000 | ||
Financial Guarantee | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Carrying value of non-contingent liability | 520,000,000 | |||
Financial Guarantee | Lending Joint Ventures | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Carrying value of non-contingent liability | 38,000,000 | $ 40,000,000 | ||
Other (expense) income | $ 2,000,000 | $ 3,000,000 |
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 425 | $ 652 |
Client deposits | 899 | 871 |
Accrued compensation and benefits | 229 | 279 |
Accrued taxes | 312 | 432 |
Accrued interest | 194 | 216 |
Accrued payment network fees | 224 | 219 |
Operating lease liabilities | 125 | 124 |
Accrued professional fees | 126 | 108 |
Other accrued expenses | 1,035 | 982 |
Total | $ 3,569 | $ 3,883 |
Debt - Schedule of Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Mar. 02, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Short-term and current maturities of long-term debt: | |||
Total short-term and current maturities of long-term debt | $ 461 | $ 468 | |
Finance lease and other financing obligations | 240 | 270 | |
Long-term debt: | |||
Unamortized discount and deferred financing costs | (123) | (120) | |
Finance lease and other financing obligations | 518 | 539 | |
Total long-term debt | $ 21,943 | 20,950 | |
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 | $ 542 | 531 | |
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 | $ 646 | 632 | |
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 | $ 542 | 531 | |
Senior Notes | 5.450% senior notes due March 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 0.00055% | 5.45% | |
Long-term debt: | |||
Long-term debt | $ 900 | 0 | |
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 | $ 542 | 531 | |
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 | $ 646 | 632 | |
Senior Notes | 5.600% senior notes due March 2033 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 0.00056% | 5.60% | |
Long-term debt: | |||
Long-term debt | $ 900 | 0 | |
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 | |
Commercial Paper | U.S. dollar commercial paper notes | |||
Long-term debt: | |||
Long-term debt | 1,418 | 2,329 | |
Commercial Paper | Euro commercial paper notes | |||
Long-term debt: | |||
Long-term debt | 1,265 | 1,210 | |
Line of Credit | Revolving credit facility | |||
Long-term debt: | |||
Long-term debt | 47 | 35 | |
Line of Credit | Term loan facility | |||
Long-term debt: | |||
Long-term debt | 200 | 200 | |
Foreign lines of credit | |||
Short-term and current maturities of long-term debt: | |||
Total short-term and current maturities of long-term debt | $ 221 | $ 198 |
Debt - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 02, 2023 |
Dec. 31, 2022 |
|
Foreign lines of credit | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 40.076% | 30.578% | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,800,000,000 | ||
Senior Notes | 5.450% senior notes due March 2028 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 0.00055% | 5.45% | |
Debt instrument, face amount | $ 900,000,000 | ||
Outstanding borrowings | $ 900,000,000 | $ 0 | |
Senior Notes | 5.600% senior notes due March 2033 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 0.00056% | 5.60% | |
Debt instrument, face amount | $ 900,000,000 | ||
Outstanding borrowings | $ 900,000,000 | $ 0 | |
Commercial Paper | U.S. dollar commercial paper notes | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 5.242% | 4.818% | |
Debt maturities (in days) | 397 days | ||
Outstanding borrowings | $ 1,418,000,000 | $ 2,329,000,000 | |
Commercial Paper | Euro commercial paper notes | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.85% | 1.918% | |
Debt maturities (in days) | 183 days | ||
Outstanding borrowings | $ 1,265,000,000 | $ 1,210,000,000 | |
Revolving credit facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 6,000,000,000 | ||
Line of credit facility, interest rate at period end | 5.94% | ||
Outstanding borrowings | $ 47,000,000 | $ 35,000,000 | |
Term loan facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest rate at period end | 6.09% | 5.639% | |
Outstanding borrowings | $ 200,000,000 | $ 200,000,000 |
Redeemable Noncontrolling Interests - Narrative (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023
USD ($)
noncontrollingInterest
|
Mar. 31, 2022
USD ($)
|
|
Noncontrolling Interest [Line Items] | ||
Net proceeds from sale of businesses and other assets | $ 0 | $ 175 |
Tax expense | $ 124 | 98 |
First Data Joint Venture | ||
Noncontrolling Interest [Line Items] | ||
Net proceeds from sale of businesses and other assets | 175 | |
Pre-tax gain | 147 | |
Tax expense | $ 9 | |
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 | 1 |
Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interest Activity (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Balance at beginning of period | $ 161 | $ 278 |
Distributions paid to redeemable noncontrolling interests | (8) | (13) |
Share of income | 7 | 10 |
Derecognition of redeemable noncontrolling interest | 0 | (111) |
Balance at end of period | $ 160 | $ 164 |
Equity (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period (in shares) | 154,000,000 | |
Balance at beginning of period | $ 31,527 | $ 31,672 |
Net income (loss) | 569 | 672 |
Other comprehensive income | 147 | 88 |
Share-based compensation | 93 | 61 |
Shares issued under stock plans | (59) | (15) |
Purchases of treasury stock | $ (1,483) | (500) |
Balance at end of period (in shares) | 165,000,000 | |
Balance at end of period | $ 30,794 | 31,978 |
Net income attributable to redeemable noncontrolling interest | $ 7 | $ 10 |
Common Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period (in shares) | 784,000,000 | 784,000,000 |
Balance at beginning of period | $ 8 | $ 8 |
Balance at end of period (in shares) | 784,000,000 | 784,000,000 |
Balance at end of period | $ 8 | $ 8 |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period (in shares) | 154,000,000 | 134,000,000 |
Balance at beginning of period | $ (8,378) | $ (6,140) |
Shares issued under stock plans (in shares) | (2,000,000) | (2,000,000) |
Shares issued under stock plans | $ 99 | $ 79 |
Purchases of treasury stock (in shares) | 13,000,000 | 5,000,000 |
Purchases of treasury stock | $ (1,483) | $ (500) |
Balance at end of period (in shares) | 165,000,000 | 137,000,000 |
Balance at end of period | $ (9,762) | $ (6,561) |
Additional Paid-In Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 23,011 | 22,983 |
Share-based compensation | 93 | 61 |
Shares issued under stock plans | (158) | (94) |
Balance at end of period | 22,946 | 22,950 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (1,189) | (745) |
Other comprehensive income | 135 | 105 |
Balance at end of period | (1,054) | (640) |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 17,376 | 14,846 |
Net income (loss) | 563 | 669 |
Balance at end of period | 17,939 | 15,515 |
Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 699 | 720 |
Net income (loss) | 6 | 3 |
Other comprehensive income | 12 | (17) |
Balance at end of period | $ 717 | $ 706 |
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 31,527 | $ 31,672 |
Total other comprehensive income | 147 | 88 |
Balance at end of period | 30,794 | 31,978 |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,189) | (745) |
Other comprehensive income (loss) before reclassifications | 132 | 102 |
Amounts reclassified from accumulated other comprehensive loss | 3 | 3 |
Total other comprehensive income | 135 | 105 |
Balance at end of period | (1,054) | (640) |
Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (103) | (107) |
Other comprehensive income (loss) before reclassifications | 5 | (1) |
Amounts reclassified from accumulated other comprehensive loss | 3 | 3 |
Total other comprehensive income | 8 | 2 |
Balance at end of period | (95) | (105) |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,064) | (676) |
Other comprehensive income (loss) before reclassifications | 125 | 104 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive income | 125 | 104 |
Balance at end of period | (939) | (572) |
Pension Plans | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (22) | 38 |
Other comprehensive income (loss) before reclassifications | 2 | (1) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive income | 2 | (1) |
Balance at end of period | $ (20) | $ 37 |
Accumulated Other Comprehensive Loss - Narrative (Details) € in Millions, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2023
USD ($)
|
Mar. 31, 2022
USD ($)
|
Mar. 31, 2023
EUR (€)
|
Dec. 31, 2022
USD ($)
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Estimate of gains (losses) related to foreign currency exchange contracts during the next 12 months | $ (2) | |||
Accumulated other comprehensive loss | 1,054 | $ 1,189 | ||
Estimated interest expense related to settled interest rate hedge contracts during the next twelve months | 15 | |||
Foreign currency translation adjustment, tax | (22) | $ 22 | ||
Net Investment Hedging | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation adjustment, tax | 22 | $ (22) | ||
Foreign currency forward exchange contracts | Indian Rupee | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Notional amount of derivatives | 356 | 346 | ||
Treasury Lock | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 127 | $ 130 | ||
Cross-currency rate swap contracts | Euro Member Countries, Euro | Net Investment Hedging | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Notional amount of derivatives | € | € 400 |
Accumulated Other Comprehensive Loss - Disclosure of Derivative Terms (Details) - Net Investment Hedging € in Millions |
Mar. 31, 2023
EUR (€)
|
---|---|
Cross Currency Interest Rate Contract 1 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 1 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 2.096% |
Cross Currency Interest Rate Contract 1 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.85% |
Cross Currency Interest Rate Contract 2 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 2 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 1.635% |
Cross Currency Interest Rate Contract 2 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.20% |
Cross Currency Interest Rate Contract 3 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 3 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 1.922% |
Cross Currency Interest Rate Contract 3 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.85% |
Cross Currency Interest Rate Contract 4 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 4 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 1.458% |
Cross Currency Interest Rate Contract 4 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.20% |
Cross Currency Interest Rate Contract 5 | |
Derivative [Line Items] | |
Notional Amount (EUR) | € 80 |
Cross Currency Interest Rate Contract 5 | Euro Member Countries, Euro | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 1.816% |
Cross Currency Interest Rate Contract 5 | United States of America, Dollars | |
Derivative [Line Items] | |
Fixed Rate Paid (EUR)/Received (USD) | 3.85% |
Accumulated Other Comprehensive Loss - Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) (Details) - Net Investment Hedging - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Cross-currency rate swap contracts | ||
Derivative [Line Items] | ||
Foreign currency transaction gains related to net investment hedges recorded in other comprehensive loss | $ (2) | $ 0 |
Foreign currency-denominated debt | ||
Derivative [Line Items] | ||
Foreign currency transaction gains related to net investment hedges recorded in other comprehensive loss | $ (64) | $ 67 |
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 93 | $ 61 |
Unrecognized compensation cost | $ 669 | |
Weighted-average period unrecognized compensation cost will be recognized (in years) | 2 years 2 months 12 days |
Share-Based Compensation - Summary of Restricted Stock and Performance Activity (Details) shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
$ / shares
shares
| |
Restricted Stock Units and Awards | |
Shares (In thousands) | |
Balance at beginning of period (in shares) | shares | 5,530 |
Granted (in shares) | shares | 2,357 |
Forfeited (in shares) | shares | (124) |
Vested (in shares) | shares | (1,824) |
Balance at end of period (in shares) | shares | 5,939 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 96.88 |
Granted (in dollars per share) | $ / shares | 112.97 |
Forfeited (in dollars per share) | $ / shares | 98.77 |
Vested (in dollars per share) | $ / shares | 98.71 |
Balance at end of period (in dollars per share) | $ / shares | $ 102.66 |
Performance Share Units | |
Shares (In thousands) | |
Balance at beginning of period (in shares) | shares | 3,243 |
Granted (in shares) | shares | 311 |
Forfeited (in shares) | shares | (3) |
Vested (in shares) | shares | 0 |
Balance at end of period (in shares) | shares | 3,551 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 100.93 |
Granted (in dollars per share) | $ / shares | 131.38 |
Forfeited (in dollars per share) | $ / shares | 101.56 |
Vested (in dollars per share) | $ / shares | 0 |
Balance at end of period (in dollars per share) | $ / shares | $ 103.40 |
Share-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
$ / shares
shares
| |
Shares | |
Stock options outstanding - balance at beginning of period (in shares) | shares | 6,336 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (20) |
Exercised (in shares) | shares | (735) |
Stock options outstanding - balance at end of period (in shares) | shares | 5,581 |
Stock options exercisable (in shares) | shares | 5,202 |
Weighted-Average Exercise Price | |
Stock options outstanding - balance at beginning of period (in dollars per shares) | $ / shares | $ 62.91 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 112.87 |
Exercised (in dollars per share) | $ / shares | 41.16 |
Stock options outstanding - balance at end of period (in dollars per shares) | $ / shares | 65.59 |
Stock options exercisable (in dollars per share) | $ / shares | $ 62.21 |
Weighted-Average Remaining Contractual Term (Years) | |
Stock options outstanding (in years) | 3 years 10 months 24 days |
Stock options exercisable (in years) | 3 years 7 months 24 days |
Aggregate Intrinsic Value (In millions) | |
Stock options outstanding | $ | $ 253 |
Stock options exercisable | $ | $ 253 |
Income Taxes - Income Tax Provision and Effective Income Tax Rate (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 124 | $ 98 |
Effective income tax rate | 17.40% | 14.50% |
Income Taxes - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 17.40% | 14.50% |
Unrecognized tax benefits | $ 95 | |
Decrease in unrecognized tax benefits reasonably possible | $ 10 |
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 | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
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) | 626.9 | 650.8 |
Common stock equivalents (in shares) | 4.4 | 6.4 |
Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share – diluted (in shares) | 631.3 | 657.2 |
Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc. - Narrative (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Earnings Per Share [Abstract] | ||
Stock options excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive (in shares) | 2.2 | 2.0 |
Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 222 | $ 178 |
Income taxes paid | 291 | 43 |
Treasury stock purchases settled after the balance sheet date | 33 | 14 |
Distribution of nonmonetary assets (see Note 10) | 0 | 111 |
Software obtained under financing arrangements | 8 | 52 |
Right-of-use assets obtained in exchange for lease liabilities - operating leases | 39 | 27 |
Right-of-use assets obtained in exchange for lease liabilities - finance leases | $ 29 | $ 16 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Loss Contingencies [Line Items] | ||
Subscriber funds | $ 1,500 | $ 1,700 |
First Data | First Data Subsidiary Merchant Matters | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | 21 | $ 21 |
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 | $ 60 |
Related Party Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Equity investments | |||
Related Party Transaction [Line Items] | |||
Amounts due from unconsolidated merchant alliances | $ 43 | $ 43 | |
Related Party Fees | Equity investments | |||
Related Party Transaction [Line Items] | |||
Processing, administrative, and other fees | 46 | $ 51 | |
Merchant Alliances | Related Party Fees | Equity investments | |||
Related Party Transaction [Line Items] | |||
Processing, administrative, and other fees | 46 | 47 | |
Lending Solutions Business, Investment Services Business, and InvestCloud Holdings | Related Party Fees | Affiliated entities | |||
Related Party Transaction [Line Items] | |||
Processing, administrative, and other fees | $ 1 | $ 5 |
Business Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 4,547 | $ 4,138 | ||
Operating income (loss) | 934 | 846 | ||
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 279 | 245 | ||
Operating income (loss) | (619) | (517) | ||
Acceptance | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,847 | 1,653 | ||
Operating income (loss) | 562 | 470 | ||
Fintech | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 792 | 778 | ||
Operating income (loss) | 280 | 275 | ||
Payments | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,629 | 1,462 | ||
Operating income (loss) | 711 | 618 | ||
Processing and services revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 3,673 | 3,364 | |
Processing and services revenue | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 6 | 4 | ||
Processing and services revenue | Acceptance | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,587 | 1,410 | ||
Processing and services revenue | Fintech | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 751 | 735 | ||
Processing and services revenue | Payments | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,329 | 1,215 | ||
Product revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 874 | 774 | ||
Product revenue | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 273 | 241 | ||
Product revenue | Acceptance | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 260 | 243 | ||
Product revenue | Fintech | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 41 | 43 | ||
Product revenue | Payments | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 300 | $ 247 | ||
|
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