Revenue Recognition

9 Months Ended

Sep. 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 14% and 6% of total revenue for the three months ended September 30, 2019 and 2018, respectively, and approximately 10% and 5% of total revenue for the nine months ended September 30, 2019 and 2018, respectively.



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

Major Business
Global Business Solutions	$	992	$	—	$	—	$	—		$	992
Global Financial Solutions	375		—		—		—			375
Network & Security Solutions	247		—		—		—			247
Total First Data	1,614		—		—		—			1,614
Digital Money Movement	—		376		—		—			376
Card and Related Services	—		470		—		—			470
Other	—		80		—		—			80
Total Payments	—		926		—		—			926
Account and Item Processing	—		—		533		—			533
Other	—		—		63		—			63
Total Financial	—		—		596		—			596
Corporate and Other	—		—		—		(8		)	(8		)
Total Revenue	$	1,614	$	926	$	596	$	(8	)	$	3,128



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

Major Business
Digital Money Movement	$	363	$	—	$	—		$	363
Card and Related Services	401		—		—			401
Other	80		—		—			80
Total Payments	844		—		—			844
Account and Item Processing	—		516		—			516
Other	—		58		—			58
Total Financial	—		574		—			574
Corporate and Other	—		—		(6		)	(6		)
Total Revenue	$	844	$	574	$	(6	)	$	1,412



(In millions)	Reportable Segments
Nine Months Ended September 30, 2019	First Data		Payments		Financial		Corporate and Other			Total

Major Business
Global Business Solutions	$	992	$	—	$	—	$	—		$	992
Global Financial Solutions	375		—		—		—			375
Network & Security Solutions	247		—		—		—			247
Total First Data	1,614		—		—		—			1,614
Digital Money Movement	—		1,105		—		—			1,105
Card and Related Services	—		1,408		—		—			1,408
Other	—		244		—		—			244
Total Payments	—		2,757		—		—			2,757
Account and Item Processing	—		—		1,592		—			1,592
Other	—		—		206		—			206
Total Financial	—		—		1,798		—			1,798
Corporate and Other	—		—		—		(27		)	(27		)
Total Revenue	$	1,614	$	2,757	$	1,798	$	(27	)	$	6,142



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

Major Business
Digital Money Movement	$	1,071	$	—	$	—		$	1,071
Card and Related Services	1,215		—		—			1,215
Other	237		—		—			237
Total Payments	2,523		—		—			2,523
Account and Item Processing	—		1,552		—			1,552
Lending Solutions	—		56		—			56
Other	—		172		—			172
Total Financial	—		1,780		—			1,780
Corporate and Other	—		—		(31		)	(31		)
Total Revenue	$	2,523	$	1,780	$	(31	)	$	4,272

Contract Balances

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



(In millions)	September 30, 2019		December 31, 2018
Contract assets	$	361	$	171
Contract liabilities	541		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 $327 million of revenue during the nine months ended September 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. See Note 4 for contract liabilities assumed in connection with the acquisition of First Data.

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:
September 30, 2019	2019		2020		2021		2022		Thereafter
Processing and services	$	618	$	2,211	$	1,787	$	1,332	$	2,478
Product	9		38		24		14		13

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 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 in paragraph 606-10-50-14A 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.