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 June 30, 2023

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.)
347 Riverside Avenue
Jacksonville	Florida	32202
(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
1.100% 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 July 31, 2023, 592,465,475 shares of the Registrant’s Common Stock were outstanding.

FORM 10-Q

QUARTERLY REPORT

Quarter Ended June 30, 2023

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	7
Notes to Condensed Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosure About Market Risks	35
Item 4. Controls and Procedures	37
Part II: OTHER INFORMATION
Item 1A. Risk Factors	37
Item 5. Other Information	38
Item 6. Exhibits	39
Signatures	40

1

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In millions, except per share amounts)

(Unaudited)

	June 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	1,982	$	2,188
Settlement assets	4,100		5,855
Trade receivables, net of allowance for credit losses of $91 and $75, respectively	3,402		3,699
Other receivables	493		493
Prepaid expenses and other current assets	673		583
Total current assets	10,650		12,818
Property and equipment, net	829		862
Goodwill	27,681		34,276
Intangible assets, net	8,084		8,956
Software, net	3,268		3,238
Other noncurrent assets	1,938		2,048
Deferred contract costs, net	1,124		1,080
Total assets	$	53,574	$	63,278
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current liabilities:
Accounts payable, accrued and other liabilities	$	2,646	$	2,754
Settlement payables	5,050		6,752
Deferred revenue	818		788
Short-term borrowings	5,144		3,797
Current portion of long-term debt	785		2,133
Total current liabilities	14,443		16,224
Long-term debt, excluding current portion	13,589		14,207
Deferred income taxes	3,376		3,550
Other noncurrent liabilities	1,893		1,891
Total liabilities	33,301		35,872
Redeemable noncontrolling interest	—		180
Equity:
FIS stockholders’ equity:
Preferred stock $0.01 par value; 200 shares authorized, none issued and outstanding as of June 30, 2023, and December 31, 2022	—		—
Common stock $0.01 par value, 750 shares authorized, 631 and 630 shares issued as of June 30, 2023, and December 31, 2022, respectively	6		6
Additional paid in capital	46,846		46,735
(Accumulated deficit) retained earnings	(22,048)		(14,971)
Accumulated other comprehensive earnings (loss)	(331)		(360)
Treasury stock, $0.01 par value, 39 and 39 common shares as of June 30, 2023, and December 31, 2022, respectively, at cost	(4,207)		(4,192)
Total FIS stockholders’ equity	20,266		27,218
Noncontrolling interest	7		8
Total equity	20,273		27,226
Total liabilities, redeemable noncontrolling interest and equity	$	53,574	$	63,278

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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Revenue	$	3,746	$	3,719	$	7,256	$	7,210
Cost of revenue	2,188		2,234		4,356		4,475
Gross profit	1,558		1,485		2,900		2,735
Selling, general, and administrative expenses	1,033		1,082		2,037		2,117
Asset impairments	6,841		29		6,841		87
Operating income (loss)	(6,316)		374		(5,978)		531
Other income (expense):
Interest expense, net	(153)		(47)		(291)		(90)
Other income (expense), net	(53)		30		(63)		92
Total other income (expense), net	(206)		(17)		(354)		2
Earnings (loss) before income taxes	(6,522)		357		(6,332)		533
Provision (benefit) for income taxes	72		77		121		132
Net earnings (loss)	(6,594)		280		(6,453)		401
Net (earnings) loss attributable to noncontrolling interest	(2)		(3)		(3)		(4)
Net earnings (loss) attributable to FIS common stockholders	$	(6,596)	$	277	$	(6,456)	$	397
Net earnings (loss) per share-basic attributable to FIS common stockholders	$	(11.14)	$	0.46	$	(10.91)	$	0.65
Weighted average shares outstanding-basic	592		608		592		609
Net earnings (loss) per share-diluted attributable to FIS common stockholders	$	(11.14)	$	0.45	$	(10.91)	$	0.65
Weighted average shares outstanding-diluted	592		611		592		612

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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Net earnings (loss)	$	(6,594)	$	280	$	(6,453)	$	401
Other comprehensive earnings (loss), before tax:
Foreign currency translation adjustments	$	182	$	(1,406)	439		(1,901)
Change in fair value of net investment hedges	(125)		1,177		(421)		1,528
Excluded components of fair value hedges	(23)		—		(23)		—
Other adjustments	1		1		1		5
Other comprehensive earnings (loss), before tax	35		(228)		(4)		(368)
Provision for income tax (expense) benefit related to items of other comprehensive earnings (loss)	(2)		(78)		33		(84)
Other comprehensive earnings (loss), net of tax	33		(306)		29		(452)
Comprehensive earnings (loss)	(6,561)		(26)		(6,424)		(51)
Net (earnings) loss attributable to noncontrolling interest	(2)		(3)		(3)		(4)
Comprehensive earnings (loss) attributable to FIS common stockholders	$	(6,563)	$	(29)	$	(6,427)	$	(55)

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 and six months ended June 30, 2023

(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, March 31, 2023	631	(39)	$	6	$	46,802	$	(15,141)	$	(364)	$	(4,206)	$	7	$	27,104
Treasury shares held for taxes due upon exercise of stock awards	—	—	—		—		—		—		(1)		—		(1)
Stock-based compensation	—	—	—		44		—		—		—		—		44
Cash dividends declared ($0.52 per share per quarter) and other distributions	—	—	—		—		(311)		—		—		(2)		(313)
Net earnings (loss)	—	—	—		—		(6,596)		—		—		2		(6,594)
Other comprehensive earnings (loss), net of tax	—	—	—		—		—		33		—		—		33
Balances, June 30, 2023	631	(39)	$	6	$	46,846	$	(22,048)	$	(331)	$	(4,207)	$	7	$	20,273

			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, 2022	630	(39)	$	6	$	46,735	$	(14,971)	$	(360)	$	(4,192)	$	8	$	27,226
Issuance of restricted stock	1	—	—		—		—		—		—		—		—
Exercise of stock options	—	—	—		40		—		—		—		—		40
Treasury shares held for taxes due upon exercise of stock awards	—	—	—		—		—		—		(15)		—		(15)
Stock-based compensation	—	—	—		64		—		—		—		—		64
Cash dividends declared ($0.52 per share per quarter) and other distributions	—	—	—		—		(621)		—		—		(4)		(625)
Other	—	—	—		7		—		—		—		—		7
Net earnings (loss)	—	—	—		—		(6,456)		—		—		3		(6,453)
Other comprehensive earnings (loss), net of tax	—	—	—		—		—		29		—		—		29
Balances, June 30, 2023	631	(39)	$	6	$	46,846	$	(22,048)	$	(331)	$	(4,207)	$	7	$	20,273

(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 Equity

Three and six months ended June 30, 2022

(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, March 31, 2022	628	(17)	$	6	$	46,536	$	2,721	$	106	$	(2,343)	$	10	$	47,036
Exercise of stock options	—	—	—		10		—		—		—		—		10
Purchases of treasury stock	—	(3)	—		—		—		—		(300)		—		(300)
Stock-based compensation	—	—	—		88		—		—		—		—		88
Cash dividends declared ($0.47 per share per quarter) and other distributions	—	—	—		—		(289)		—		—		(3)		(292)
Net earnings (loss)	—	—	—		—		277		—		—		2		279
Other comprehensive earnings (loss), net of tax	—	—	—		—		—		(306)		—		—		(306)
Balances, June 30, 2022	628	(20)	$	6	$	46,634	$	2,709	$	(200)	$	(2,643)	$	9	$	46,515

			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	—	—		—		—		—		—		—		—
Exercise of stock options	—	—	—		18		—		—		—		—		18
Purchases of treasury stock	—	(3)	—		—		—		—		(300)		—		(300)
Treasury shares held for taxes due upon exercise of stock awards	—	(1)	—		—		—		—		(77)		—		(77)
Stock-based compensation	—	—	—		145		—		—		—		—		145
Cash dividends declared ($0.47 per share per quarter) and other distributions	—	—	—		5		(577)		—		—		(5)		(577)
Net earnings (loss)	—	—	—		—		397		—		—		3		400
Other comprehensive earnings (loss), net of tax	—	—	—		—		—		(452)		—		—		(452)
Balances, June 30, 2022	628	(20)	$	6	$	46,634	$	2,709	$	(200)	$	(2,643)	$	9	$	46,515

(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.

6

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

	Six months ended June 30,
	2023		2022
Cash flows from operating activities:
Net earnings (loss)	$	(6,453)	$	401
Adjustment to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,782		1,988
Amortization of debt issuance costs	15		15
Asset impairments	6,841		87
Loss (gain) on sale of businesses, investments and other	(2)		(5)
Stock-based compensation	64		145
Deferred income taxes	(177)		(386)
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency:
Trade and other receivables	311		114
Settlement activity	(242)		(106)
Prepaid expenses and other assets	(139)		(250)
Deferred contract costs	(217)		(190)
Deferred revenue	5		(30)
Accounts payable, accrued liabilities and other liabilities	(69)		137
Net cash provided by operating activities	1,719		1,920
Cash flows from investing activities:
Additions to property and equipment	(79)		(173)
Additions to software	(467)		(579)
Settlement of net investment hedge cross-currency interest rate swaps	(17)		645
Other investing activities, net	(28)		(22)
Net cash provided by (used in) investing activities	(591)		(129)
Cash flows from financing activities:
Borrowings	43,750		30,789
Repayment of borrowings and other financing obligations	(44,541)		(31,358)
Debt issuance costs	(2)		—
Net proceeds from stock issued under stock-based compensation plans	40		15
Treasury stock activity	(15)		(378)
Dividends paid	(618)		(574)
Payments on tax receivable agreement	(128)		(92)
Purchase of noncontrolling interest	(173)		—
Other financing activities, net	(10)		(4)
Net cash provided by (used in) financing activities	(1,697)		(1,602)
Effect of foreign currency exchange rate changes on cash	117		(392)
Net increase (decrease) in cash, cash equivalents and restricted cash	(452)		(203)
Cash, cash equivalents and restricted cash, beginning of period	4,813		4,283
Cash, cash equivalents and restricted cash, end of period	$	4,361	$	4,080
Supplemental cash flow information:
Cash paid for interest	$	396	$	241
Cash paid for income taxes	$	269	$	323

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

7

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, 2022.

The preparation of these consolidated financial statements in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP") and the related rules and regulations of the U.S. Securities and Exchange Commission ("SEC" or "Commission") requires our management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related 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 inflation and economic growth rates. These estimates may change as new events occur and additional information is obtained. Future actual results could differ materially from these estimates. To the extent that there are differences between these estimates, judgments and assumptions and actual results, our consolidated financial statements will be affected.

Certain reclassifications have been made in the 2022 consolidated financial statements to conform to the classifications used in 2023. On the consolidated statements of comprehensive earnings, we reclassified the Change in fair value of net investment hedges from Foreign currency translation adjustments into its own classification. On the consolidated statements of cash flows, we reclassified Settlement of net investment hedges cross-currency interest rate swaps from Other investing activities to its own classification and Payments on tax receivable agreement from Other financing activities into its own classification.

FIS reports its financial performance based on the following segments: Banking Solutions, Merchant Solutions, Capital Market Solutions, and Corporate and Other. The Company regularly assesses its portfolio of assets and reclassified certain businesses from Capital Market Solutions to Banking Solutions and to the Corporate and Other segment in the quarter ended March 31, 2023, and recast all prior-period segment information presented. See Note 11 for more information regarding our segments and the related reclassification.

Amounts in tables in the financial statements and accompanying footnotes may not sum or calculate due to rounding.

(2)Divestitures

Planned Separation of Worldpay Merchant Solutions Business

On July 5, 2023, FIS signed a definitive agreement to sell a 55% equity interest in its Worldpay Merchant Solutions business to private equity funds managed by GTCR, LLC ("GTCR") in a transaction valuing the business at up to $18.5 billion, including potential consideration of $1.0 billion contingent on the returns realized by GTCR exceeding certain thresholds. We expect our net proceeds at closing from the sale to be approximately $11.7 billion, consisting of (i) $8.4 billion of proceeds from a pre-closing distribution from the Worldpay business (funded by new debt) and (ii) $5.0 billion from the sale of 55% of our ownership interest, net of estimated selling price adjustments, debt restructuring fees, taxes and transaction costs. FIS will retain a non-controlling 45% ownership interest in a new standalone joint venture.

Subsequent to June 30, 2023, the Merchant disposal group has met the accounting criteria to be classified as held for sale and will be presented as such beginning with the third quarter of 2023. The planned disposition of the Worldpay Merchant Solutions business represents a strategic shift that will have a major impact on the Company’s operations and financial results. Accordingly, the Company plans to present the operating results and cash flows of the Worldpay Merchant Solutions business as discontinued operations for all periods presented in the financial statements beginning in the third quarter of 2023.

The transaction is expected to close by the first quarter of 2024, subject to regulatory approvals and other customary closing conditions. Following the closing of this transaction, FIS' ownership interest in Worldpay is expected to be reported as income from minority interest.

8

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(3)       Acquisitions

Virtus Acquisition

On January 2, 2020, FIS acquired a majority interest in Virtus Partners ("Virtus"), previously a privately held company that provides high-value managed services and technology to the credit and loan market. The acquisition was accounted for as a business combination. FIS acquired a 70% voting and financial interest in Virtus with 30% interest retained by the founders of Virtus ("Founders"). The agreement between FIS and the Founders provided FIS with a call option to purchase, and the Founders with a put option requiring FIS to purchase, all of the Founders' retained interest in Virtus at a redemption value determined pursuant to performance goals stated in the agreement, exercisable at any time after two years and three years, respectively, following the acquisition date. In January 2023, the Founders exercised their put option, and as a result, FIS paid the $173 million redemption value, recorded as a financing activity in the consolidated statement of cash flows, and now owns 100% of Virtus.

(4)       Revenue

Disaggregation of Revenue

In the following tables, revenue is disaggregated by primary geographical market and type of revenue. The tables also include a reconciliation of the disaggregated revenue with the Company's reportable segments. Prior-period amounts have been reclassified to conform to the new reportable segment presentation as discussed in Note 11.

For the three months ended June 30, 2023 (in millions):

					Capital
	Banking		Merchant		Market		Corporate
	Solutions		Solutions		Solutions		and Other		Total
Primary Geographical Markets:
North America	$	1,456	$	954	$	424	$	27	$	2,861
All others	246		358		248		33		885
Total	$	1,702	$	1,312	$	672	$	60	$	3,746
Type of Revenue:
Recurring revenue:
Transaction processing and services	$	1,279	$	1,284	$	346	$	40	$	2,949
Software maintenance	91		1		130		—		222
Other recurring	62		20		20		10		112
Total recurring	1,432		1,305		496		50		3,283
Software license	19		—		79		—		98
Professional services	156		—		97		3		256
Other non-recurring fees	95		7		—		7		109
Total	$	1,702	$	1,312	$	672	$	60	$	3,746

9

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

For the three months ended June 30, 2022 (in millions):

					Capital
	Banking		Merchant		Market		Corporate
	Solutions		Solutions		Solutions		and Other		Total
Primary Geographical Markets:
North America	$	1,439	$	955	$	375	$	65	$	2,834
All others	239		347		257		42		885
Total	$	1,678	$	1,302	$	632	$	107	$	3,719
Type of Revenue:
Recurring revenue:
Transaction processing and services	$	1,254	$	1,276	$	314	$	83	$	2,927
Software maintenance	91		1		123		—		215
Other recurring	51		23		15		10		99
Total recurring	1,396		1,300		452		93		3,241
Software license	23		1		72		—		96
Professional services	154		—		106		2		262
Other non-recurring fees	105		1		2		12		120
Total	$	1,678	$	1,302	$	632	$	107	$	3,719

For the six months ended June 30, 2023 (in millions):

					Capital
	Banking		Merchant		Market		Corporate
	Solutions		Solutions		Solutions		and Other		Total
Primary Geographical Markets:
North America	$	2,895	$	1,730	$	849	$	54	$	5,528
All others	492		686		486		64		1,728
Total	$	3,387	$	2,416	$	1,335	$	118	$	7,256
Type of Revenue:
Recurring revenue:
Transaction processing and services	$	2,578	$	2,365	$	686	$	80	$	5,709
Software maintenance	181		1		260		1		443
Other recurring	116		41		39		20		216
Total recurring	2,875		2,407		985		101		6,368
Software license	30		2		152		—		184
Professional services	310		—		197		5		512
Other non-recurring fees	172		7		1		12		192
Total	$	3,387	$	2,416	$	1,335	$	118	$	7,256

10

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

For the six months ended June 30, 2022 (in millions):

					Capital
	Banking		Merchant		Market		Corporate
	Solutions		Solutions		Solutions		and Other		Total
Primary Geographical Markets:
North America	$	2,858	$	1,740	$	749	$	115	$	5,462
All others	479		674		510		85		1,748
Total	$	3,337	$	2,414	$	1,259	$	200	$	7,210
Type of Revenue:
Recurring revenue:
Transaction processing and services	$	2,508	$	2,364	$	621	$	158	$	5,651
Software maintenance	183		1		249		1		434
Other recurring	103		45		29		19		196
Total recurring	2,794		2,410		899		178		6,281
Software license	54		2		145		—		201
Professional services	298		—		213		4		515
Other non-recurring fees	191		2		2		18		213
Total	$	3,337	$	2,414	$	1,259	$	200	$	7,210

Contract Balances

The Company recognized revenue of $184 million and $189 million during the three months and $502 million and $499 million during the six months ended June 30, 2023 and 2022, 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 June 30, 2023, approximately $23.0 billion of revenue is estimated to be recognized in the future primarily from the Banking Solutions and Capital Market Solutions segments' remaining unfulfilled performance obligations, which are primarily comprised of recurring account- and volume-based processing services. This excludes the amount of anticipated recurring renewals not yet contractually obligated. The Company expects to recognize approximately 30% of the Banking Solutions and Capital Market Solutions segments' remaining performance obligations over the next 12 months, approximately another 22% 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, as its contracts either have an original duration of one year or less or contain variable consideration that is allocated entirely to the day of performance under its stand-ready performance obligations comprised of a series of distinct daily services. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material.

(5)       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

11

FIDELITY NATIONAL INFORMATION SERVICES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

restricted cash per the consolidated statements of cash flows is as follows (in millions):

	June 30, 2023		December 31, 2022
Cash and cash equivalents on the consolidated balance sheets	$	1,982	$	2,188
Merchant float (in Settlement assets)	2,379		2,625
Total Cash and cash equivalents and restricted cash per the consolidated statements of cash flows	$	4,361	$	4,813

Settlement Assets

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

	June 30, 2023		December 31, 2022
Settlement assets
Settlement deposits	$	443	$	492
Merchant float	2,379		2,625
Settlement receivables	1,278		2,738
Total Settlement assets	$	4,100	$	5,855

Intangible Assets, Software and Property and Equipment

The following table provides details of Intangible assets, Software and Property and equipment as of June 30, 2023, and December 31, 2022 (in millions):

	June 30, 2023						December 31, 2022
	Cost		Accumulated depreciation and amortization		Net		Cost		Accumulated depreciation and amortization		Net
Intangible assets	$	18,464	$	10,380	$	8,084	$	18,260	$	9,304	$	8,956
Software	$	6,827	$	3,559	$	3,268	$	6,607	$	3,369	$	3,238
Property and equipment	$	2,436	$	1,607	$	829	$	2,381	$	1,519	$	862

As of June 30, 2023, Intangible assets, net of amortization, includes $7,894 million of customer relationships and $190 million of trademarks and other intangible assets. Amortization expense with respect to Intangible assets was $499 million and $545 million for the three months and $996 million and $1,102 million for the six months ended June 30, 2023 and 2022, respectively.

Depreciation expense for property and equipment was $56 million and $64 million for the three months and $