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Acquisitions and Dispositions (Tables) | 12 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Schedule of total purchase price paid | The total purchase price paid for First Data is as follows:
(In millions) |
Fair value of stock exchanged for shares of Fiserv, Inc. (1) | $ | 29,293 |
Repayment of First Data debt | 16,414 |
Fair value of vested portion of First Data stock awards exchanged for Fiserv, Inc. awards (2) | 768 |
Total purchase price | $ | 46,475 |
(1) | The fair value of the 286 million shares of the Company’s common stock issued as of the acquisition date was determined based on a per share price of $102.30, which was the closing price of the Company’s common stock on July 26, 2019, the last trading day before the acquisition closed the morning of July 29, 2019. This includes a nominal amount of cash paid in lieu of fractional shares.
(2) Represents the portion of the fair value of the replacement awards related to services provided prior to the acquisition. The remaining portion of the fair value is associated with future service and will be recognized as expense over the future service period. See Note 16 for additional information.
Schedule of purchase price allocation | The following allocation of purchase price for Elan was finalized in the third quarter of 2019:
(In millions) |
Trade accounts receivable | $ | 20 |
Prepaid expenses and other current assets | 98 |
Property and equipment | 9 |
Intangible assets | 373 |
Goodwill | 214 |
Accounts payable and other current liabilities | (55 | )
Total purchase price | $ | 659 |
The updated preliminary allocation of purchase price recorded for First Data was as follows:
(In millions) |
Assets acquired (1) |
Cash and cash equivalents | $ | 310 |
Trade accounts receivable | 1,747 |
Prepaid expenses and other current assets | 1,046 |
Settlement assets | 10,398 |
Property and equipment | 1,181 |
Customer relationships | 13,613 |
Other intangible assets | 2,811 |
Goodwill | 30,507 |
Investments in unconsolidated affiliates | 2,699 |
Other long-term assets | 1,228 |
Total assets acquired | $ | 65,540 |
Liabilities assumed (1) |
Accounts payable and accrued expenses | $ | 1,576 |
Short-term and current maturities of long-term debt (2) | 243 |
Contract liabilities | 74 |
Settlement obligations | 10,398 |
Deferred income taxes | 3,535 |
Long-term contract liabilities | 16 |
Long-term debt and other long-term liabilities (3) | 1,240 |
Total liabilities assumed | $ | 17,082 |
Net assets acquired | $ | 48,458 |
Redeemable noncontrolling interests | 252 |
Noncontrolling interests | 1,731 |
Total purchase price | $ | 46,475 |
(1) | In connection with the acquisition of First Data, the Company acquired two businesses, which it intended to and subsequently did sell in October 2019. Therefore, such businesses were classified as held for sale and were included within prepaid expenses and other current assets and accounts payable and accrued expenses in the above preliminary allocation of purchase price (see Note 5).
(2) | Includes foreign lines of credit, current portion of finance lease obligations and other financing obligations (see Note 12).
(3) Includes the receivable securitized loan and the long-term portion of finance lease obligations (see Note 12).
Schedule of values and weighted-average useful life allocated to intangible assets | The amounts, based on preliminary valuations and subject to final adjustment, allocated to intangible assets are as follows:
(In millions) | Gross Carrying Amount |  | Weighted-Average Useful Life
Customer relationships | $ | 13,613 |  |  | 15 years
Acquired software and technology | 2,321 |  |  | 7 years
Trade names | 490 |  |  | 9 years
Total | $ | 16,424 |  |  | 14 years
The values allocated to intangible assets are as follows:
(In millions) | Gross Carrying Amount |  | Weighted-Average Useful Life
Customer relationships | $ | 370 |  |  | 15 years
Trade name | 3 |  |  | 8 years
Total | $ | 373 |  |  | 15 years
The values allocated to intangible assets were as follows:
(In millions) | Gross Carrying Amount |  | Weighted-Average Useful Life
Customer relationships | $ | 92 |  |  | 15 years
Acquired software and technology | 71 |  |  | 7 years
Total | $ | 163 |  |  | 12 years
Schedule of pro forma combined financial information | The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the years ended December 31, 2019 and 2018 as if the acquisition of First Data had occurred on January 1, 2018. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the Company’s operating results that may have actually occurred had the acquisition of First Data been completed on January 1, 2018. In addition, the unaudited pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of First Data.
(In millions, except for per share data) | 2019 |  | 2018
Total revenue | $ | 15,775 |  |  | $ | 15,284 |
Net income | 1,520 |  |  | 1,125 |
Net income attributable to Fiserv, Inc. | 1,457 |  |  | 1,040 |
Net income per share attributable to Fiserv, Inc.: |  |  |
Basic | $ | 2.14 |  |  | $ | 1.50 |
Diluted | $ | 2.10 |  |  | $ | 1.47 |

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