UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________

Form 10-Q

_______________________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-16427

_______________________________________________

Fidelity National Information Services, Inc.

(Exact name of registrant as specified in its charter)

Georgia		37-1490331
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
601 Riverside Avenue
Jacksonville	Florida	32204
(Address of principal executive offices)		(Zip Code)

(904) 438-6000

(Registrant’s telephone number, including area code)

(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:
	Trading	Name of each exchange
Title of each class	Symbol(s)	on which registered
Common Stock, par value $0.01 per share	FIS	New York Stock Exchange
1.700% Senior Notes due 2022	FIS22B	New York Stock Exchange
0.125% Senior Notes due 2022	FIS22C	New York Stock Exchange
0.750% Senior Notes due 2023	FIS23A	New York Stock Exchange
1.100% Senior Notes due 2024	FIS24A	New York Stock Exchange
0.625% Senior Notes due 2025	FIS25B	New York Stock Exchange
1.500% Senior Notes due 2027	FIS27	New York Stock Exchange
1.000% Senior Notes due 2028	FIS28	New York Stock Exchange
2.250% Senior Notes due 2029	FIS29	New York Stock Exchange
2.000% Senior Notes due 2030	FIS30	New York Stock Exchange
3.360% Senior Notes due 2031	FIS31	New York Stock Exchange
2.950% Senior Notes due 2039	FIS39	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES ☐ NO ☒

As of May 2, 2022, 610,771,236 shares of the Registrant’s Common Stock were outstanding.

FORM 10-Q

QUARTERLY REPORT

Quarter Ended March 31, 2022

INDEX

	Page
Part I: FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Earnings (Loss)	3
Condensed Consolidated Statements of Comprehensive Earnings (Loss)	4
Condensed Consolidated Statements of Equity	5
Condensed Consolidated Statements of Cash Flows	6
Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3. Quantitative and Qualitative Disclosure About Market Risks	28
Item 4. Controls and Procedures	30
Part II: OTHER INFORMATION
Item 1A. Risk Factors	30
Item 6. Exhibits	32
Signatures	33

1

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In millions, except per share amounts)

(Unaudited)

	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	1,547	$	2,010
Settlement assets	4,062		4,020
Trade receivables, net of allowance for credit losses of $89 and $76, respectively	3,655		3,772
Other receivables	260		355
Prepaid expenses and other current assets	621		551
Total current assets	10,145		10,708
Property and equipment, net	901		949
Goodwill	52,988		53,330
Intangible assets, net	10,854		11,539
Software, net	3,235		3,299
Other noncurrent assets	2,132		2,137
Deferred contract costs, net	943		969
Total assets	$	81,198	$	82,931
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current liabilities:
Accounts payable, accrued and other liabilities	$	2,690	$	2,864
Settlement payables	5,228		5,295
Deferred revenue	847		779
Short-term borrowings	2,682		3,911
Current portion of long-term debt	2,330		1,617
Total current liabilities	13,777		14,466
Long-term debt, excluding current portion	14,208		14,825
Deferred income taxes	4,055		4,193
Other noncurrent liabilities	1,948		1,915
Total liabilities	33,988		35,399
Redeemable noncontrolling interest	174		174
Equity:
FIS stockholders’ equity:
Preferred stock $0.01 par value; 200 shares authorized, none issued and outstanding as of March 31, 2022, and December 31, 2021	—		—
Common stock $0.01 par value, 750 shares authorized, 628 and 625 shares issued as of March 31, 2022, and December 31, 2021, respectively	6		6
Additional paid in capital	46,536		46,466
Retained earnings	2,721		2,889
Accumulated other comprehensive earnings (loss)	106		252
Treasury stock, $0.01 par value, 17 and 16 common shares as of March 31, 2022, and December 31, 2021, respectively, at cost	(2,343)		(2,266)
Total FIS stockholders’ equity	47,026		47,347
Noncontrolling interest	10		11
Total equity	47,036		47,358
Total liabilities, redeemable noncontrolling interest and equity	$	81,198	$	82,931

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.

2

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Loss)

(In millions, except per share amounts)

(Unaudited)

	Three months ended March 31,
	2022		2021
Revenue	$	3,492	$	3,223
Cost of revenue	2,242		2,118
Gross profit	1,250		1,105
Selling, general, and administrative expenses	1,035		1,006
Asset impairments	58		—
Operating income	157		99
Other income (expense):
Interest expense, net	(43)		(74)
Other income (expense), net	61		(493)
Total other income (expense), net	18		(567)
Earnings (loss) before income taxes and equity method investment earnings (loss)	175		(468)
Provision (benefit) for income taxes	54		(97)
Equity method investment earnings (loss)	—		1
Net earnings (loss)	121		(370)
Net (earnings) loss attributable to noncontrolling interest	(1)		(3)
Net earnings (loss) attributable to FIS common stockholders	$	120	$	(373)
Net earnings (loss) per share-basic attributable to FIS common stockholders	$	0.20	$	(0.60)
Weighted average shares outstanding-basic	610		621
Net earnings (loss) per share-diluted attributable to FIS common stockholders	$	0.20	$	(0.60)
Weighted average shares outstanding-diluted	614		621

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.

3

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Earnings (Loss)

(In millions)

(Unaudited)

	Three months ended March 31,
	2022				2021
Net earnings (loss)			$	121			$	(370)
Other comprehensive earnings (loss), before tax:
Unrealized gain (loss) on derivatives	$	—			$	9
Foreign currency translation adjustments	(144)				185
Other adjustments	4				—
Other comprehensive earnings (loss), before tax	(140)				194
Provision for income tax (expense) benefit related to items of other comprehensive earnings	(6)				(127)
Other comprehensive earnings (loss), net of tax	$	(146)	(146)		$	67	67
Comprehensive earnings (loss)			(25)				(303)
Net (earnings) loss attributable to noncontrolling interest			(1)				(3)
Comprehensive earnings (loss) attributable to FIS common stockholders			$	(26)			$	(306)

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.

4

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Equity

Three months ended March 31, 2022, and March 31, 2021

(In millions, except per share amounts)

(Unaudited)

			Amount
			FIS Stockholders
									Accumulated
	Number of shares				Additional				other
	Common	Treasury	Common		paid in		Retained		comprehensive		Treasury		Noncontrolling		Total
	shares	shares	stock		capital		earnings		earnings (loss)		stock		interest (1)		equity
Balances, December 31, 2021	625	(16)	$	6	$	46,466	$	2,889	$	252	$	(2,266)	$	11	$	47,358
Issuance of restricted stock	3	—	—		5		—		—		—		—		5
Exercise of stock options	—	—	—		8		—		—		—		—		8
Treasury shares held for taxes due upon exercise of stock awards	—	(1)	—		—		—		—		(77)		—		(77)
Stock-based compensation	—	—	—		57		—		—		—		—		57
Cash dividends declared ($0.47 per share per quarter) and other distributions	—	—	—		—		(288)		—		—		(2)		(290)
Net earnings (loss)	—	—	—		—		120		—		—		1		121
Other comprehensive earnings (loss), net of tax	—	—	—		—		—		(146)		—		—		(146)
Balances, March 31, 2022	628	(17)	$	6	$	46,536	$	2,721	$	106	$	(2,343)	$	10	$	47,036

					Amount
					FIS Stockholders
											Accumulated
	Number of shares						Additional				other
	Common		Treasury		Common		paid in		Retained		comprehensive		Treasury		Noncontrolling		Total
	shares		shares		stock		capital		earnings		earnings (loss)		stock		interest (1)		equity
Balances, December 31, 2020	621		(1)		$	6	$	45,947	$	3,440	$	57	$	(150)	$	13	$	49,313
Issuance of restricted stock	3		—		—		1		—		—		—		—		1
Exercise of stock options	—		—		—		47		—		—		—		—		47
Purchases of treasury stock	—		(3)		—		—		—		—		(400)		—		(400)
Treasury shares held for taxes due upon exercise of stock awards	—		—		—		—		—		—		(95)		—		(95)
Stock-based compensation	—		—		—		157		—		—		—		—		157
Cash dividends declared ($0.39 per share per quarter) and other distributions	—		—		—		—		(244)		—		—		(1)		(245)
Net earnings	—		—		—		—		(373)		—		—		2		(371)
Other comprehensive earnings (loss), net of tax	—		—		—		—		—		67		—		—		67
Balances, March 31, 2021	$	624	$	(4)	$	6	$	46,152	$	2,823	$	124	$	(645)	$	14	$	48,474

(1)Excludes redeemable noncontrolling interest that is not considered equity.

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.

5

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

	Three months ended March 31,
	2022		2021
Cash flows from operating activities:
Net earnings (loss)	$	121	$	(370)
Adjustment to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization	1,013		953
Amortization of debt issuance costs	7		7
Asset impairments	58		—
Loss (gain) on sale of businesses, investments and other	—		(1)
Loss on extinguishment of debt	—		528
Stock-based compensation	57		157
Deferred income taxes	(112)		(22)
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency:
Trade and other receivables	62		(219)
Settlement activity	(162)		122
Prepaid expenses and other assets	(152)		(129)
Deferred contract costs	(73)		(113)
Deferred revenue	55		89
Accounts payable, accrued liabilities and other liabilities	22		(166)
Net cash provided by operating activities	896		836
Cash flows from investing activities:
Additions to property and equipment	(108)		(69)
Additions to software	(304)		(229)
Other investing activities, net	122		(23)
Net cash provided by (used in) investing activities	(290)		(321)
Cash flows from financing activities:
Borrowings	15,902		13,858
Repayment of borrowings and other financing obligations	(16,609)		(14,364)
Debt issuance costs	—		(74)
Net proceeds from stock issued under stock-based compensation plans	33		73
Treasury stock activity	(77)		(494)
Dividends paid	(287)		(244)
Other financing activities, net	(47)		(136)
Net cash provided by (used in) financing activities	(1,085)		(1,381)
Effect of foreign currency exchange rate changes on cash	(103)		(40)
Net increase (decrease) in cash, cash equivalents and restricted cash	(582)		(906)
Cash, cash equivalents and restricted cash, beginning of period	4,283		4,030
Cash, cash equivalents and restricted cash, end of period	$	3,701	$	3,124
Supplemental cash flow information:
Cash paid for interest	$	75	$	95
Cash paid for income taxes	$	46	$	68

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.

6

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Unless stated otherwise or the context otherwise requires, all references to "FIS," "we," "our," "us," the "Company" or the "registrant" are to Fidelity National Information Services, Inc., a Georgia corporation, and its subsidiaries.

(1)       Basis of Presentation

The unaudited financial information included in this report includes the accounts of FIS and its subsidiaries prepared in accordance with U.S. generally accepted accounting principles and the instructions to Form 10-Q and Article 10 of Regulation S-X. All adjustments considered necessary for a fair presentation have been included. This report should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported periods. The inputs into management's critical and significant accounting estimates consider the economic impact of the outbreak of the novel coronavirus ("COVID-19") and the subsequently declared COVID-19 pandemic ("the pandemic") by the World Health Organization on March 11, 2020. The extent to which the pandemic further affects our results of operations and financial position will depend on future developments, which are highly uncertain and are difficult to predict, including, but not limited to, the duration and spread of the pandemic and any recurrence or new strain of COVID-19, its severity, the success of vaccines or other actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Accordingly, our future results could be materially affected by changes in our estimates.

Certain reclassifications have been made in the 2021 consolidated financial statements to conform to the classifications used in 2022. Amounts in tables in the financial statements and accompanying footnotes may not sum or calculate due to rounding.

(2)       Acquisitions

Payrix Acquisition

On December 23, 2021, FIS acquired 100% of the equity of Payrix Holdings, LLC, and subsidiaries ("Payrix"), previously a privately held fintech company that specializes in embedding and monetizing payments in SaaS platforms to serve the eCommerce needs of small- to medium-sized businesses through a global card-not-present offering. The acquisition was accounted for as a business combination. We recorded a provisional allocation of the $777 million purchase price, primarily paid in cash, to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values, consisting primarily of $131 million in software assets. We also recorded adjustments to our provisional allocation of the purchase price as of March 31, 2022, resulting in $631 million in total goodwill. Our purchase price allocation is provisional as of March 31, 2022, and we expect to finalize as soon as practicable, but no later than one year from the date of acquisition.

(3)       Revenue

Disaggregation of Revenue

In the following tables, revenue is disaggregated by primary geographical market and type of revenue. The tables also include a reconciliation of the disaggregated revenue with the Company's reportable segments.

7

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

For the three months ended March 31, 2022 (in millions):

	Reportable Segments
					Capital
	Merchant		Banking		Market		Corporate
	Solutions		Solutions		Solutions		and Other		Total
Primary Geographical Markets:
North America	$	785	$	1,406	$	386	$	51	$	2,628
All others	327		239		272		26		864
Total	$	1,112	$	1,645	$	658	$	77	$	3,492
Type of Revenue:
Recurring revenue:
Transaction processing and services	$	1,087	$	1,248	$	321	$	70	$	2,726
Software maintenance	1		87		130		—		218
Other recurring	22		52		23		—		97
Total recurring	1,110		1,387		474		70		3,041
Software license	1		30		74		—		105
Professional services	—		142		110		1		253
Other non-recurring fees	1		86		—		6		93
Total	$	1,112	$	1,645	$	658	$	77	$	3,492

For the three months ended March 31, 2021 (in millions):

	Reportable Segments
					Capital
	Merchant		Banking		Market		Corporate
	Solutions		Solutions		Solutions		and Other		Total
Primary Geographical Markets:
North America	$	681	$	1,311	$	370	$	58	$	2,420
All others	285		229		255		34		803
Total	$	966	$	1,540	$	625	$	92	$	3,223
Type of Revenue:
Recurring revenue:
Transaction processing and services	$	943	$	1,164	$	291	$	84	$	2,482
Software maintenance	1		88		127		—		216
Other recurring	20		38		24		3		85
Total recurring	964		1,290		442		87		2,783
Software license	1		24		68		—		93
Professional services	—		146		106		1		253
Other non-recurring fees	1		80		9		4		94
Total	$	966	$	1,540	$	625	$	92	$	3,223

8

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Contract Balances

The Company recognized revenue of $310 million and $327 million during the three months ended March 31, 2022 and 2021, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

Transaction Price Allocated to the Remaining Performance Obligations

As of March 31, 2022, approximately $22.5 billion of revenue is estimated to be recognized in the future primarily from the Banking Solutions and Capital Market Solutions segments' remaining unfulfilled performance obligations, which are primarily comprised of recurring account- and volume-based processing services. This excludes the amount of anticipated recurring renewals not yet contractually obligated. The Company expects to recognize approximately 30% of the Banking Solutions and Capital Market Solutions segments' remaining performance obligations over the next 12 months, approximately another 21% over the next 13 to 24 months, and the balance thereafter.

As permitted by ASC 606, Revenue from Contracts with Customers, the Company has elected to exclude from this disclosure an estimate for the Merchant Solutions segment, which is primarily comprised of contracts with an original duration of one year or less or variable consideration that meet specific criteria. This segment's core performance obligations consist of variable consideration under a stand-ready series of distinct days of service, and revenue from the segment's products and service arrangements are generally billed and recognized as the services are performed. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material.

(4)       Condensed Consolidated Financial Statement Details

Cash and Cash Equivalents

The Company records restricted cash in captions other than Cash and cash equivalents in the consolidated balance sheets. The reconciliation between Cash and cash equivalents in the consolidated balance sheets and Cash, cash equivalents and restricted cash per the consolidated statements of cash flows is as follows (in millions):

	March 31, 2022		December 31, 2021
Cash and cash equivalents on the consolidated balance sheets	$	1,547	$	2,010
Merchant float (in Settlement assets)	2,154		2,273
Total Cash and cash equivalents and restricted cash per the consolidated statements of cash flows	$	3,701	$	4,283

Settlement Assets and Payables

The principal components of the Company's settlement assets and payables on the consolidated balance sheets are as follows (in millions):

	March 31, 2022		December 31, 2021
Settlement assets
Settlement deposits	$	527	$	530
Merchant float	2,154		2,273
Settlement receivables	1,381		1,217
Total Settlement assets	$	4,062	$	4,020
Settlement payables	$	5,228	$	5,295

9

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Allowance for Credit Losses

The Company monitors trade receivable balances and contract assets as well as other receivables and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. The allowance for credit losses is separate from the chargeback liability described in Note 8.

While the COVID-19 pandemic did not result in a significant increase in the Company's expected credit loss allowance recorded as of March 31, 2022, and December 31, 2021, it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic could have a material impact on management's estimates.

Property and Equipment, Intangible Assets and Software

The following table provides details of Property and equipment, Intangible assets and Software as of March 31, 2022, and December 31, 2021 (in millions):

	March 31, 2022						December 31, 2021
	Cost		Accumulated depreciation and amortization		Net		Cost		Accumulated depreciation and amortization		Net
Property and equipment	$	2,511	$	1,610	$	901	$	2,520	$	1,571	$	949
Intangible assets	$	18,734	$	7,880	$	10,854	$	18,919	$	7,380	$	11,539
Software	$	6,384	$	3,149	$	3,235	$	6,195	$	2,896	$	3,299

As of March 31, 2022, Intangible assets, net of amortization, includes $10,522 million of customer relationships and $332 million of trademarks and other intangible assets. Amortization expense with respect to Intangible assets was $557 million and $595 million for the three months ended March 31, 2022 and 2021, respectively.

During the three months ended March 31, 2022, the Company recorded $62 million of incremental software amortization expense driven by the Company's platform modernization. Platform modernization includes sunsetting certain technology platforms, which resulted in shortened estimated useful lives and accelerated amortization methods primarily impacting the associated assets over approximately three years, beginning in the third quarter of 2021.

Impairments

During the three months ended March 31, 2022, the Company recorded $58 million of impairments primarily related to real estate-related assets as a result of office space reductions.

Goodwill

Changes in goodwill during the three months ended March 31, 2022, are summarized below (in millions).

					Capital		Corporate
	Merchant		Banking		Market		And
	Solutions		Solutions		Solutions		Other		Total
Balance, December 31, 2021	$	36,403	$	12,244	$	4,663	$	20	$	53,330
Foreign currency adjustments	(323)		(7)		(23)		—		(353)
Goodwill attributable to acquisitions	11		—		—		—		11
Balance, March 31, 2022	$	36,091	$	12,237	$	4,640	$	20	$	52,988

We assess goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. Due to the continued economic impact of the COVID-19 pandemic, we evaluated if events and circumstances as of March 31, 2022, indicated potential impairment of our reporting units. We performed a qualitative assessment by examining factors most likely to affect our reporting units' fair values and considered the impact to our business from the COVID-19 pandemic. The factors examined involve significant use of management judgment and included, among

10

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

others, (1) forecast revenue, growth rates, operating margins, and capital expenditures used to calculate estimated future cash flows, (2) future economic and market conditions and (3) FIS' market capitalization. Based on our interim impairment assessment as of March 31, 2022, we concluded that it remained more likely than not that the fair value continues to exceed the carrying amount for each of our reporting units; therefore, goodwill was not impaired.

However, it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic on our Merchant Solutions business or other macroeconomic conditions could have a material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment and could result in future goodwill impairment.

Visa Europe and Contingent Value Rights

As part of the Worldpay acquisition, the Company acquired certain assets and liabilities related to the June 2016 Worldpay Group plc (Legacy Worldpay) disposal of its ownership interest in Visa Europe to Visa Inc. As part of the disposal, Legacy Worldpay received proceeds from Visa Inc. in the form of cash ("cash consideration") and convertible preferred stock ("preferred stock"), the value of which may be reduced by losses incurred relating to ongoing interchange-related litigation involving Visa Europe. Also in connection with the disposal and pursuant to the terms of an amendment executed on September 17, 2020, the Company will pay the former Legacy Worldpay owners 90% of the net-of-tax proceeds from the disposal, known as contingent value rights, which is recorded as a liability ("CVR liability") on the consolidated balance sheets.

The Company has elected the fair value option under ASC 825, Financial Instruments ("ASC 825"), for measuring its preferred stock asset and CVR liability. The fair value of the preferred stock was $213 million and $197 million at March 31, 2022, and December 31, 2021, respectively, recorded in Other noncurrent assets on the consolidated balance sheets. The fair value of the CVR liability was $469 million and $478 million at March 31, 2022, and December 31, 2021, respectively, recorded in Other noncurrent liabilities on the consolidated balance sheets. Pursuant to ASC 825, the Company remeasures the fair value of the preferred stock and CVR liability each reporting period. The net change in fair value was $25 million and $5 million for the three months ended March 31, 2022 and 2021, respectively, recorded in Other income (expense), net on the consolidated statements of earnings (loss).

Equity Security Investments

The Company holds various equity securities without readily determinable fair values that primarily represent strategic investments made through our FIS Impact Ventures program as well as investments obtained through acquisitions. Such investments totaled $409 million and $358 million at March 31, 2022, and December 31, 2021, respectively, and are included within Other noncurrent assets on the consolidated balance sheets. The Company accounts for these investments at cost, less impairment, and adjusts the carrying values for observable price changes from orderly transactions for identical or similar investments of the same issuer. The Company records gains and losses on these investments, realized and unrealized, as Other income (expense), net on the consolidated statements of earnings (loss) and recorded net gains of $41 million and $15 million for the three months ended March 31, 2022 and 2021, respectively, related to these investments.

(5)       Deferred Contract Costs

Origination and fulfillment costs from contracts with customers capitalized as of March 31, 2022, and December 31, 2021, consist of the following (in millions):

	March 31, 2022		December 31, 2021
Contract costs on implementations in progress	$	173	$	218
Contract origination costs on completed implementations, net	584		553
Contract fulfillment costs on completed implementations, net	186		198
Total Deferred contract costs, net	$	943	$	969

Amortization of deferred contract costs on completed implementations was $96 million and $68 million during the three months ended March 31, 2022 and 2021, respectively.

During the three months ended March 31, 2022, the Company recorded $16 million of incremental amortization expense related to deferred contract costs driven by the Company's platform modernization.

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FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(6)       Debt

Long-term debt as of March 31, 2022, and December 31, 2021, consists of the following (in millions):

	March 31, 2022
		Weighted
		Average
	Interest	Interest		March 31,		December 31,
	Rates	Rate (1)	Maturities	2022		2021
Fixed Rate Notes
Senior USD Notes	0.4% - 4.8%	1.9%	2023 - 2048	$	6,909	$	6,909
Senior Euro Notes	0.1% - 3.0%	1.2%	2022 - 2039	7,502		7,656
Senior GBP Notes	1.7% - 3.4%	1.6%	2022 - 2031	1,609		1,655
Revolving Credit Facility (2)		1.7%	2026	838		325
Other (3)				(320)		(103)
Total long-term debt, including current portion				16,538		16,442
Current portion of long-term debt				(2,330)		(1,617)
Long-term debt, excluding current portion				$	14,208	$	14,825

(1)The weighted average interest rate includes the impact of interest rate swaps (see Note 7).

(2)Interest on the Revolving Credit Facility is generally payable at LIBOR plus an applicable margin of up to 1.625% plus an unused commitment fee of up to 0.225%, each based upon the Company's corporate credit ratings. The weighted average interest rate on the Revolving Credit Facility excludes fees.

(3)Other includes financing obligations for certain hardware and software, the fair value of interest rate swaps (see Note 7), unamortized non-cash bond discounts and unamortized debt issuance costs.

Short-term borrowings as of March 31, 2022, and December 31, 2021, consist of the following (in millions):

	March 31, 2022
	Weighted
	Average
	Interest			March 31,		December 31,
	Rate		Maturities	2022		2021
Euro-commercial paper notes ("ECP Notes")	(0.3)	%	Up to 183 days	$	1,689	$	1,723
U.S. commercial paper notes ("USCP Notes")	0.8	%	Up to 397 days	993		2,087
Other				—		101
Total Short-term borrowings				$	2,682	$	3,911

As of March 31, 2022, the weighted average interest rate of the Company's outstanding debt was 1.0%, including the impact of interest rate swaps (see Note 7).

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FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The following summarizes the aggregate maturities of our long-term debt, including other financing obligations for certain hardware and software, based on stated contractual maturities, excluding the fair value of the interest rate swaps (see Note 7) and net unamortized non-cash bond discounts of $(324) million as of March 31, 2022 (in millions):

	Total
2022 remaining period	$	1,563
2023	2,163
2024	1,313
2025	701
2026	2,094
Thereafter	9,125
Total principal payments	16,959
Debt issuance costs, net of accumulated amortization	(97)
Total long-term debt	$	16,862

There are no mandatory principal payments on the Revolving Credit Facility, and any balance outstanding on the Revolving Credit Facility will be due and payable at its scheduled maturity date, which occurs on March 2, 2026.

Senior Notes

In March 2021, pursuant to cash tender offers and make-whole redemptions, FIS purchased and redeemed an aggregate principal amount of $5.1 billion in Senior Notes, comprised of $3,529 million in Senior USD Notes, $600 million in Senior Euro Notes, $871 million in Senior GBP Notes, and $66 million in Senior Euro Floating Rate Notes, with interest rates ranging from 0.0% to 5.0% and maturities ranging from 2021 to 2029, resulting in a loss on extinguishment of debt of approximately $528 million, recorded in Other income (expense), net on the consolidated statement of earnings (loss), relating to tender premiums, make-whole amounts, and fees; the write-off of unamortized bond discounts and debt issuance costs; and losses on related derivative instruments. The Company funded the purchase and redemption of the Senior Notes with proceeds on borrowings from the issuance and sale of Senior USD Notes on March 2, 2021.

On March 2, 2021, FIS completed the issuance and sale of Senior USD Notes with an aggregate principal amount of $5.5 billion with interest rates ranging from 0.4% to 3.1% and maturities ranging from 2023 to 2041 ("new Senior USD Notes"). The proceeds from the debt issuance were subsequently used to purchase and redeem the Senior Notes discussed above with the remainder used to repay a portion of our commercial paper notes. The new Senior USD Notes are subject to customary covenants, including, among others, customary events of default. The new Senior USD Notes also include redemption provisions at the option of FIS, similar to the other Senior Notes.

Revolving Credit Facility

On March 2, 2021, FIS entered into an amendment to the Revolving Credit Facility agreement to amend certain covenant provisions, revise lender commitments for certain counterparties, and extend the scheduled maturity date to March 2, 2026. As of March 31, 2022, the borrowing capacity under the Revolving Credit Facility was $1,980 million (net of $2,682 million of capacity backstopping our commercial paper notes).

Fair Value of Debt

The fair value of the Company's long-term debt is estimated to be approximately $437 million lower than the carrying value and $570 million higher than the carrying value, excluding the fair value of the interest rate swaps and unamortized discounts, as of March 31, 2022, and December 31, 2021, respectively.

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FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(7)       Financial Instruments

Fair Value Hedges

The Company holds interest rate swaps with aggregate notional amounts of $1,854 million, £925 million and €500