Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

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 tables 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% and 5% of total revenue for the six months ended June 30, 2019 and 2018, respectively.



(In millions)	Reportable Segments
Three Months Ended June 30, 2019	Payments		Financial		Corporate and Other			Total

Major Business
Digital Money Movement	$	362	$	—	$	—		$	362
Card and Related Services	469		—		—			469
Other	86		—		—			86
Total Payments	917		—		—			917
Account and Item Processing	—		526		—			526
Other	—		78		—			78
Total Financial	—		604		—			604
Corporate and Other	—		—		(9		)	(9		)
Total Revenue	$	917	$	604	$	(9	)	$	1,512



(In millions)	Reportable Segments
Three Months Ended June 30, 2018	Payments		Financial		Corporate and Other			Total

Major Business
Digital Money Movement	$	356	$	—	$	—		$	356
Card and Related Services	400		—		—			400
Other	81		—		—			81
Total Payments	837		—		—			837
Account and Item Processing	—		530		—			530
Other	—		60		—			60
Total Financial	—		590		—			590
Corporate and Other	—		—		(7		)	(7		)
Total Revenue	$	837	$	590	$	(7	)	$	1,420



(In millions)	Reportable Segments
Six Months Ended June 30, 2019	Payments		Financial		Corporate and Other			Total

Major Business
Digital Money Movement	$	729	$	—	$	—		$	729
Card and Related Services	938		—		—			938
Other	164		—		—			164
Total Payments	1,831		—		—			1,831
Account and Item Processing	—		1,059		—			1,059
Other	—		143		—			143
Total Financial	—		1,202		—			1,202
Corporate and Other	—		—		(19		)	(19		)
Total Revenue	$	1,831	$	1,202	$	(19	)	$	3,014



(In millions)	Reportable Segments
Six Months Ended June 30, 2018	Payments		Financial		Corporate and Other			Total

Major Business
Digital Money Movement	$	708	$	—	$	—		$	708
Card and Related Services	814		—		—			814
Other	157		—		—			157
Total Payments	1,679		—		—			1,679
Account and Item Processing	—		1,036		—			1,036
Lending Solutions	—		56		—			56
Other	—		114		—			114
Total Financial	—		1,206		—			1,206
Corporate and Other	—		—		(25		)	(25		)
Total Revenue	$	1,679	$	1,206	$	(25	)	$	2,860

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers.



(In millions)	June 30, 2019		December 31, 2018
Contract assets	$	204	$	171
Contract liabilities	466		469

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 $248 million of revenue during the six months ended June 30, 2019 that was included in the contract liability balance at the beginning of the period, which exceeded advance cash receipts for services yet to be provided.

Transaction Price Allocated to 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)	Remainder of:
June 30, 2019	2019		2020		2021		2022		Thereafter
Processing and services	$	549	$	943	$	772	$	560	$	746
Product	16		31		22		12		11

The Company applies the optional exemption in paragraph 606-10-50-14(b) and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition in accordance with paragraph 606-10-55-18. These contracts generally have terms of three to five years, and 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 in paragraph 606-10-50-14A and does not disclose information for variable consideration, including additional seat licenses, 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.