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Revenue Recognition (Tables)
 12 Months Ended
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