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Acquisitions and Dispositions (Tables) | 9 Months Ended
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Sep. 30, 2020
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.
Schedule of purchase price allocation | The allocation of purchase price recorded for First Data was finalized in the third quarter of 2020 as follows:
(In millions) |
Assets acquired (1) |
Cash and cash equivalents | $ | 310 |
Trade accounts receivable | 1,747 |
Prepaid expenses and other current assets | 1,047 |
Settlement assets | 10,398 |
Property and equipment | 1,156 |
Customer relationships | 13,458 |
Other intangible assets | 2,814 |
Goodwill | 30,811 |
Investments in unconsolidated affiliates | 2,676 |
Other long-term assets | 1,191 |
Total assets acquired | $ | 65,608 |
Liabilities assumed (1) |
Accounts payable and accrued expenses | $ | 1,613 |
Short-term and current maturities of long-term debt (2) | 243 |
Contract liabilities | 71 |
Settlement obligations | 10,398 |
Deferred income taxes | 3,671 |
Long-term contract liabilities | 16 |
Long-term debt and other long-term liabilities (3) | 1,261 |
Total liabilities assumed | $ | 17,273 |
Net assets acquired | $ | 48,335 |
Redeemable noncontrolling interests | 252 |
Noncontrolling interests | 1,608 |
Total purchase price | $ | 46,475 |
(1)In connection with the acquisition of First Data, the Company acquired two businesses which it intended to sell and subsequently sold 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 allocation of purchase price. (2)Includes foreign lines of credit, current portion of finance lease obligations and other financing obligations. (3)Includes the receivable securitized loan and the long-term portion of finance lease obligations.
Schedule of gross carrying amount and weighted-average useful life allocated to intangible assets | The amounts allocated to intangible assets are as follows:
(In millions) | Gross Carrying Amount |  | Weighted-Average Useful Life
Customer relationships | $ | 13,458 |  |  | 15 years
Acquired software and technology | 2,324 |  |  | 7 years
Trade names | 490 |  |  | 9 years
Total | $ | 16,272 |  |  | 14 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 nine months ended September 30, 2019 as if the acquisition of First Data had occurred on January 1, 2019. 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, 2019. 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) |  |  |  | Nine Months Ended September 30, 2019
Total revenue |  |  |  | $ | 11,730 |
Net income |  |  |  | 463 |
Net income attributable to Fiserv, Inc. |  |  |  | 400 |
Net income per share attributable to Fiserv, Inc.: |  |  |  |
Basic |  |  |  | $ | 0.59 |
Diluted |  |  |  | $ | 0.58 |

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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121647850&loc=d3e4845-128472 + Details
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