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Revenue Recognition (Tables) | 12 Months Ended
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Dec. 31, 2018
Revenue from Contract with Customer [Abstract] |
Disaggregation of revenue | The table below present the Company’s revenue disaggregated by major business, including a reconciliation with its reportable segments. Most of the Company’s revenue is earned domestically within these major businesses with revenue from clients outside the United States comprising approximately 6% of total revenue.
(In millions) | Reportable Segments
Year Ended December 31, 2018 | Payments |  | Financial |  | Corporate and Other |  | Total
Major Business |  |  |  |  |  |  |
Digital Money Movement | $ | 1,460 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,460 |
Card and Related Services | 1,682 |  |  | — |  |  | — |  |  | 1,682 |
Other | 325 |  |  | — |  |  | — |  |  | 325 |
Total Payments | 3,467 |  |  | — |  |  | — |  |  | 3,467 |
Account and Item Processing | — |  |  | 2,094 |  |  | — |  |  | 2,094 |
Lending Solutions | — |  |  | 54 |  |  | — |  |  | 54 |
Other | — |  |  | 247 |  |  | — |  |  | 247 |
Total Financial | — |  |  | 2,395 |  |  | — |  |  | 2,395 |
Corporate and Other | — |  |  | — |  |  | (39 | ) |  | (39 | )
Total Revenue | $ | 3,467 |  |  | $ | 2,395 |  |  | $ | (39 | ) |  | $ | 5,823 |
Contract with customer, asset and liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers.
(In millions) | December 31, 2018 |  | January 1, 2018
Contract assets | $ | 171 |  |  | $ | 158 |
Contract liabilities | 469 |  |  | 520 |
Schedule of remaining performance obligations | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.
(In millions) |  |  |  |  |  |  |  |  |
December 31, 2018 | 2019 |  | 2020 |  | 2021 |  | 2022 |  | Thereafter
Processing and services | $ | 1,061 |  |  | $ | 836 |  |  | $ | 678 |  |  | $ | 480 |  |  | $ | 566 |
Product | 38 |  |  | 30 |  |  | 20 |  |  | 13 |  |  | 9 |
Schedule of effect of new accounting pronouncements | The following tables summarize the impacts of ASC 606 adoption on the Company’s consolidated financial statements as of and for the year ended December 31, 2018. Consolidated Statement of Income
(In millions) | Impact of changes in accounting policies
Year Ended December 31, 2018 | As reported |  | Adjustments |  | Balances without adoption of ASC 606
Revenue: |  |  |  |  |
Processing and services | $ | 4,975 |  |  | $ | (26 | ) |  | $ | 4,949 |
Product | 848 |  |  | (24 | ) |  | 824 |
Total revenue | 5,823 |  |  | (50 | ) |  | 5,773 |
Expenses: |  |  |  |  |
Cost of processing and services | 2,324 |  |  | 3 |  |  | 2,327 |
Cost of product | 745 |  |  | (2 | ) |  | 743 |
Selling, general and administrative | 1,228 |  |  | 16 |  |  | 1,244 |
Gain on sale of business | (227 | ) |  | (3 | ) |  | (230 | )
Total expenses | 4,070 |  |  | 14 |  |  | 4,084 |
Operating income | 1,753 |  |  | (64 | ) |  | 1,689 |
Interest expense | (193 | ) |  | — |  |  | (193 | )
Loss on early debt extinguishment | (14 | ) |  | — |  |  | (14 | )
Non-operating income | 9 |  |  | (1 | ) |  | 8 |
Income before income taxes and income from investments in unconsolidated affiliates | 1,555 |  |  | (65 | ) |  | 1,490 |
Income tax provision | (378 | ) |  | 14 |  |  | (364 | )
Income from investments in unconsolidated affiliates | 10 |  |  | — |  |  | 10 |
Net income | $ | 1,187 |  |  | $ | (51 | ) |  | $ | 1,136 |
Net income per share – basic | $ | 2.93 |  |  | $ | (0.13 | ) |  | $ | 2.80 |
Net income per share – diluted | $ | 2.87 |  |  | $ | (0.12 | ) |  | $ | 2.75 |
Shares used in computing net income per share: |  |  |  |  |
Basic | 405.5 |  |  | — |  |  | 405.5 |
Diluted | 413.7 |  |  | — |  |  | 413.7 |
Consolidated Statement of Comprehensive Income
(In millions) | Impact of changes in accounting policies
Year Ended December 31, 2018 | As reported |  | Adjustments |  | Balances without adoption of ASC 606
Net income | $ | 1,187 |  |  | $ | (51 | ) |  | $ | 1,136 |
Other comprehensive (loss) income: |  |  |  |  |
Fair market value adjustment on cash flow hedges, net of income tax benefit of $2 million | (5 | ) |  | — |  |  | (5 | )
Reclassification adjustment for net realized gains on cash flow hedges included in cost of processing and services, net of income tax benefit of $0 | (1 | ) |  | — |  |  | (1 | )
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of income tax provision of $2 million | 4 |  |  | — |  |  | 4 |
Foreign currency translation | (11 | ) |  | — |  |  | (11 | )
Total other comprehensive loss | (13 | ) |  | — |  |  | (13 | )
Comprehensive income | $ | 1,174 |  |  | $ | (51 | ) |  | $ | 1,123 |
Consolidated Balance Sheet
(In millions) | Impact of changes in accounting policies
December 31, 2018 | As reported |  | Adjustments |  | Balances without adoption of ASC 606
Assets |  |  |  |  |
Cash and cash equivalents | $ | 415 |  |  | $ | — |  |  | $ | 415 |
Trade accounts receivable, less allowance for doubtful accounts | 1,049 |  |  | (11 | ) |  | 1,038 |
Prepaid expenses and other current assets | 760 |  |  | 19 |  |  | 779 |
Total current assets | 2,224 |  |  | 8 |  |  | 2,232 |
Property and equipment, net | 398 |  |  | — |  |  | 398 |
Intangible assets, net | 2,143 |  |  | — |  |  | 2,143 |
Goodwill | 5,702 |  |  | — |  |  | 5,702 |
Contract costs, net | 419 |  |  | (339 | ) |  | 80 |
Other long-term assets | 376 |  |  | 102 |  |  | 478 |
Total assets | $ | 11,262 |  |  | $ | (229 | ) |  | $ | 11,033 |
Liabilities and Shareholders’ Equity |  |  |  |  |
Accounts payable and accrued expenses | $ | 1,626 |  |  | $ | (11 | ) |  | $ | 1,615 |
Current maturities of long-term debt | 4 |  |  | — |  |  | 4 |
Contract liabilities | 380 |  |  | 101 |  |  | 481 |
Total current liabilities | 2,010 |  |  | 90 |  |  | 2,100 |
Long-term debt | 5,955 |  |  | — |  |  | 5,955 |
Deferred income taxes | 745 |  |  | (82 | ) |  | 663 |
Long-term contract liabilities | 89 |  |  | 21 |  |  | 110 |
Other long-term liabilities | 170 |  |  | — |  |  | 170 |
Total liabilities | 8,969 |  |  | 29 |  |  | 8,998 |
Total shareholders’ equity | 2,293 |  |  | (258 | ) |  | 2,035 |
Total liabilities and shareholders’ equity | $ | 11,262 |  |  | $ | (229 | ) |  | $ | 11,033 |
Consolidated Statement of Cash Flows
(In millions) | Impact of changes in accounting policies
Year Ended December 31, 2018 | As reported |  | Adjustments |  | Balances without adoption of ASC 606
Cash flows from operating activities: |  |  |  |  |
Net income | $ | 1,187 |  |  | $ | (51 | ) |  | $ | 1,136 |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: |  |  |  |  |
Depreciation and other amortization | 393 |  |  | (74 | ) |  | 319 |
Amortization of acquisition-related intangible assets | 163 |  |  | — |  |  | 163 |
Share-based compensation | 73 |  |  | — |  |  | 73 |
Deferred income taxes | 133 |  |  | (14 | ) |  | 119 |
Gain on sale of businesses | (227 | ) |  | (3 | ) |  | (230 | )
Loss on early debt extinguishment | 14 |  |  | — |  |  | 14 |
Income from investments in unconsolidated affiliates | (10 | ) |  | — |  |  | (10 | )
Dividends from unconsolidated affiliates | 2 |  |  | — |  |  | 2 |
Non-cash impairment charges | 3 |  |  | — |  |  | 3 |
Other operating activities | (10 | ) |  | — |  |  | (10 | )
Changes in assets and liabilities, net of effects from acquisitions and dispositions: |  |  |  |  |
Trade accounts receivable | (108 | ) |  | 31 |  |  | (77 | )
Prepaid expenses and other assets | (6 | ) |  | (2 | ) |  | (8 | )
Contract costs | (137 | ) |  | 98 |  |  | (39 | )
Accounts payable and other liabilities | 116 |  |  | (4 | ) |  | 112 |
Contract liabilities | (34 | ) |  | 19 |  |  | (15 | )
Net cash provided by operating activities from continuing operations | 1,552 |  |  | — |  |  | 1,552 |
Cash flows from investing activities: |  |  |  |  |
Capital expenditures, including capitalization of software costs | (360 | ) |  | — |  |  | (360 | )
Proceeds from sale of businesses | 419 |  |  | — |  |  | 419 |
Payments for acquisitions of businesses, net of cash acquired | (712 | ) |  | — |  |  | (712 | )
Purchases of investments | (3 | ) |  | — |  |  | (3 | )
Other investing activities | (7 | ) |  | — |  |  | (7 | )
Net cash provided by investing activities from continuing operations | (663 | ) |  | — |  |  | (663 | )
Cash flows from financing activities: |  |  |  |  |
Debt proceeds | 5,039 |  |  | — |  |  | 5,039 |
Debt repayments, including redemption and other costs | (4,005 | ) |  | — |  |  | (4,005 | )
Proceeds from issuance of treasury stock | 75 |  |  | — |  |  | 75 |
Purchases of treasury stock, including employee shares withheld for tax obligations | (1,946 | ) |  | — |  |  | (1,946 | )
Other financing activities | (5 | ) |  | — |  |  | (5 | )
Net cash used in financing activities from continuing operations | (842 | ) |  | — |  |  | (842 | )
Net change in cash and cash equivalents from continuing operations | 47 |  |  | — |  |  | 47 |
Net change in cash and cash equivalents from discontinued operations | 43 |  |  | — |  |  | 43 |
Cash and cash equivalents, beginning balance | 325 |  |  | — |  |  | 325 |
Cash and cash equivalents, ending balance | $ | 415 |  |  | $ | — |  |  | $ | 415 |
Discontinued operations cash flow information: |  |  |  |  |
Net cash used in operating activities | $ | (7 | ) |  | $ | — |  |  | $ | (7 | )
Net cash provided by investing activities | 50 |  |  | — |  |  | 50 |
Net change in cash and cash equivalents from discontinued operations | $ | 43 |  |  | $ | — |  |  | $ | 43 |

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