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Revenue Recognition | 9 Months Ended
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Sep. 30, 2023
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition 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 Company’s operations are comprised of the Merchant Acceptance (“Acceptance”) segment, the Financial Technology (“Fintech”) segment and the Payments and Network (“Payments”) segment. Additional information regarding the Company’s business segments is included in Note 20. The tables below present the Company’s revenue disaggregated by type of revenue, including a reconciliation with its reportable segments. The majority of the Company’s revenue is earned domestically, with revenue generated outside the U.S. comprising approximately 15% and 14% of total revenue for the three months ended September 30, 2023 and 2022, respectively, and 14% of total revenue for each of the nine months ended September 30, 2023 and 2022.
(In millions) |  | Reportable Segments |  |  |  |
Type of Revenue |  | Acceptance |  | Fintech |  | Payments |  | Corporate and Other |  | Total
Three Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |  |
Processing |  | $ | 1,796 |  |  | $ | 421 |  |  | $ | 1,237 |  |  | $ | 5 |  |  | $ | 3,459 |
Hardware, print and card production |  | 257 |  |  | 19 |  |  | 258 |  |  | — |  |  | 534 |
Professional services |  | 6 |  |  | 119 |  |  | 76 |  |  | — |  |  | 201 |
Software maintenance |  | — |  |  | 128 |  |  | 9 |  |  | — |  |  | 137 |
License and termination fees |  | 10 |  |  | 46 |  |  | 72 |  |  | — |  |  | 128 |
Output Solutions postage |  | — |  |  | — |  |  | — |  |  | 263 |  |  | 263 |
Other |  | 37 |  |  | 62 |  |  | 52 |  |  | — |  |  | 151 |
Total Revenue |  | $ | 2,106 |  |  | $ | 795 |  |  | $ | 1,704 |  |  | $ | 268 |  |  | $ | 4,873 |
Three Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |
Processing |  | $ | 1,586 |  |  | $ | 407 |  |  | $ | 1,218 |  |  | $ | 6 |  |  | $ | 3,217 |
Hardware, print and card production |  | 254 |  |  | 9 |  |  | 271 |  |  | — |  |  | 534 |
Professional services |  | 5 |  |  | 119 |  |  | 74 |  |  | — |  |  | 198 |
Software maintenance |  | — |  |  | 138 |  |  | 7 |  |  | — |  |  | 145 |
License and termination fees |  | 15 |  |  | 36 |  |  | 19 |  |  | — |  |  | 70 |
Output Solutions postage |  | — |  |  | — |  |  | — |  |  | 251 |  |  | 251 |
Other |  | 18 |  |  | 57 |  |  | 28 |  |  | — |  |  | 103 |
Total Revenue |  | $ | 1,878 |  |  | $ | 766 |  |  | $ | 1,617 |  |  | $ | 257 |  |  | $ | 4,518 |
(In millions) |  | Reportable Segments |  |  |  |
Type of Revenue |  | Acceptance |  | Fintech |  | Payments |  | Corporate and Other |  | Total
Nine Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |  |
Processing |  | $ | 5,122 |  |  | $ | 1,251 |  |  | $ | 3,637 |  |  | $ | 18 |  |  | $ | 10,028 |
Hardware, print and card production |  | 744 |  |  | 42 |  |  | 814 |  |  | — |  |  | 1,600 |
Professional services |  | 16 |  |  | 348 |  |  | 224 |  |  | — |  |  | 588 |
Software maintenance |  | — |  |  | 403 |  |  | 28 |  |  | — |  |  | 431 |
License and termination fees |  | 31 |  |  | 145 |  |  | 145 |  |  | — |  |  | 321 |
Output Solutions postage |  | — |  |  | — |  |  | — |  |  | 791 |  |  | 791 |
Other |  | 105 |  |  | 182 |  |  | 130 |  |  | — |  |  | 417 |
Total Revenue |  | $ | 6,018 |  |  | $ | 2,371 |  |  | $ | 4,978 |  |  | $ | 809 |  |  | $ | 14,176 |
Nine Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |
Processing |  | $ | 4,649 |  |  | $ | 1,210 |  |  | $ | 3,486 |  |  | $ | 18 |  |  | $ | 9,363 |
Hardware, print and card production |  | 694 |  |  | 28 |  |  | 744 |  |  | — |  |  | 1,466 |
Professional services |  | 15 |  |  | 366 |  |  | 203 |  |  | — |  |  | 584 |
Software maintenance |  | — |  |  | 415 |  |  | 18 |  |  | — |  |  | 433 |
License and termination fees |  | 43 |  |  | 152 |  |  | 79 |  |  | — |  |  | 274 |
Output Solutions postage |  | — |  |  | — |  |  | — |  |  | 712 |  |  | 712 |
Other |  | 31 |  |  | 176 |  |  | 67 |  |  | — |  |  | 274 |
Total Revenue |  | $ | 5,432 |  |  | $ | 2,347 |  |  | $ | 4,597 |  |  | $ | 730 |  |  | $ | 13,106 |
Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers:
(In millions) | September 30, 2023 |  | December 31, 2022
Contract assets | $ | 602 |  |  | $ | 551 |
Contract liabilities | 852 |  |  | 860 |
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 $539 million of revenue during the nine months ended September 30, 2023 that was included in the contract liabilities balance at the beginning of the period. Transaction Price Allocated to Remaining Performance Obligations The following table includes estimated processing, services and product revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at September 30, 2023:
(In millions) |
Year Ending December 31, |
Remainder of 2023 | $ | 603 |
2024 | 2,226 |
2025 | 1,744 |
2026 | 1,206 |
Thereafter | 1,643 |
The Company applies the optional exemption under ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. 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 under ASC 606 and does not disclose information for variable consideration that is a sales- 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.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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