XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Revenue Recognition
 9 Months Ended
Sep. 30, 2020
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 Acceptance segment, the Fintech segment and the Payments segment. Additional information regarding the Company’s business segments is included in Note 22. The tables below present the
Company’s revenue disaggregated by type of revenue, including a reconciliation with its reportable segments. The Company’s disaggregation of revenue for the three and nine months ended September 30, 2019 have been restated to reflect the Segment Realignment. The majority of the Company’s revenue is earned domestically, with revenue generated outside the United States comprising approximately 14% of total revenue for both the three months ended September 30, 2020 and 2019, and 13% and 10% of total revenue for the nine months ended September 30, 2020 and 2019, respectively.
(In millions)Reportable Segments
Three Months Ended September 30, 2020 AcceptanceFintechPaymentsCorporate
and Other		Total
Type of Revenue
Processing$1,245 $364 $1,112 $9 $2,730 
Hardware, print and card production179 12 176 — 367 
Professional services9 120 59 — 188 
Software maintenance— 141 1 — 142 
License and termination fees7 41 21 — 69 
Output solutions postage— — — 207 207 
Other14 49 18 2 83 
Total Revenue$1,454 $727 $1,387 $218 $3,786 
(In millions)Reportable Segments
Three Months Ended September 30, 2019AcceptanceFintechPaymentsCorporate
and Other		Total
Type of Revenue
Processing$861 $346 $911 $40 $2,158 
Hardware, print and card production133 10 142 — 285 
Professional services3 126 56 3 188 
Software maintenance— 144 1 3 148 
License and termination fees4 61 16 1 82 
Output solutions postage— — — 180 180 
Other11 48 27 1 87 
Total Revenue$1,012 $735 $1,153 $228 $3,128 
(In millions)Reportable Segments
Nine Months Ended September 30, 2020 AcceptanceFintechPaymentsCorporate
and Other		Total
Type of Revenue
Processing$3,466 $1,064 $3,265 $47 $7,842 
Hardware, print and card production531 33 528 — 1,092 
Professional services20 347 174 1 542 
Software maintenance— 423 2 2 427 
License and termination fees19 139 61 — 219 
Output solutions postage— — — 640 640 
Other42 153 63 — 258 
Total Revenue$4,078 $2,159 $4,093 $690 $11,020 
(In millions)Reportable Segments
Nine Months Ended September 30, 2019AcceptanceFintechPaymentsCorporate
and Other		Total
Type of Revenue
Processing$861 $1,030 $1,938 $129 $3,958 
Hardware, print and card production133 33 292 — 458 
Professional services3 364 105 7 479 
Software maintenance— 430 2 11 443 
License and termination fees4 181 47 1 233 
Output solutions postage— — — 324 324 
Other11 153 82 1 247 
Total Revenue$1,012 $2,191 $2,466 $473 $6,142 
Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with customers:
(In millions)September 30, 2020December 31, 2019
Contract assets$383 $382 
Contract liabilities621 647 
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 $424 million of revenue during the nine months ended September 30, 2020 that was included in the contract liability balance at the beginning of the period.
Transaction Price Allocated to Remaining Performance Obligations
The following table includes estimated processing, services and product revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at September 30, 2020:
(In millions)
Year ending December 31,
Remainder of 2020$544 
20211,839 
20221,442 
20231,129 
Thereafter2,093 

The Company applies the optional exemption under ASC Topic 606 (“ASC 606”) and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. These multi-year contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional exemptions under ASC 606 and does not disclose information for variable consideration that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year.