Business Segment Information

12 Months Ended

Dec. 31, 2019

The Company’s operations are comprised of the First Data segment, the Payments segment and the Financial segment. Since the Company’s acquisition of First Data on July 29, 2019 (see Note 4), the chief operating decision maker of the Company has managed the operations of First Data as a separate business segment while evaluating its organizational structure and related integration plans, including the allocation of resources and the assessment of performance. The Company expects that it will realign its business segments in the first quarter of 2020 when its new reporting structure and First Data integration plans are finalized.

The First Data segment provides a wide-range of solutions to merchants, including retail point-of-sale merchant transaction processing and acquiring, e-commerce services, mobile payment services and the cloud-based Clover^® point-of-sale operating system. The businesses in this segment also provide technology solutions for bank and non-bank issuers and a wide range of value-added solutions complementing the merchant and issuer technology solutions.

The Payments segment provides electronic bill payment and presentment services, internet and mobile banking software and services, account-to-account transfers, person-to-person payment services, debit and credit card processing and services, payments infrastructure services and other electronic payments software and services. The businesses in this segment also provide card and print personalization services, investment account processing services for separately managed accounts and fraud and risk management products and services.

The Financial segment provides financial institutions with account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services and other products and services that support numerous types of financial transactions.

Corporate and Other primarily consists of intercompany eliminations, amortization of acquisition-related intangible assets, unallocated corporate expenses of the combined company and other activities that are not considered when management evaluates segment performance, such as gains on sales of businesses and associated transition services.

Operating results for each segment are presented below. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore such information is not presented.



(In millions)	First Data ⁽¹⁾		Payments		Financial		Corporate and Other			Total
2019
Processing and services revenue	$	3,291	$	2,993	$	2,240	$	49		$	8,573
Product revenue	787		751		167		(91		)	1,614
Total revenue	4,078		3,744		2,407		(42		)	10,187
Operating income	1,031		1,252		805		(1,479		)	1,609
Capital expenditures	250		265		131		75			721
Depreciation and amortization expense	421		253		149		955			1,778

2018
Processing and services revenue	$	—	$	2,728	$	2,204	$	43		$	4,975
Product revenue	—		739		191		(82		)	848
Total revenue	—		3,467		2,395		(39		)	5,823
Operating income⁽²⁾	—		1,122		798		(167		)	1,753
Capital expenditures	—		239		115		6			360
Depreciation and amortization expense	—		225		145		186			556

2017
Processing and services revenue	$	—	$	2,476	$	2,347	$	10		$	4,833
Product revenue	—		758		183		(78		)	863
Total revenue	—		3,234		2,530		(68		)	5,696
Operating income	—		1,034		849		(351		)	1,532
Capital expenditures	—		182		95		10			287
Depreciation and amortization expense	—		169		92		183			444


⁽¹⁾	Includes the results of First Data from July 29, 2019, the date of acquisition.


⁽²⁾	A gain of $227 million from the sale of a 55% interest of the Company’s Lending Solutions business is included within Corporate and Other.

Revenue generated outside the United States comprised approximately 12%, 6% and 5% of total revenue in 2019, 2018 and 2017, respectively.