Related Party Transactions

12 Months Ended

Dec. 31, 2016

The Company operates a joint venture ("Brazilian Venture") with Banco Bradesco S.A. ("Banco Bradesco") in which we own a 51% controlling interest, to provide comprehensive, fully outsourced transaction processing, call center, cardholder support and collection services to multiple card issuing clients in Brazil, including Banco Bradesco. The original accounting for this transaction resulted in the establishment of a contract intangible asset and a liability for amounts payable to the original partner banks upon final migration of their respective card portfolios and achieving targeted volumes (the “Brazilian Venture Notes”). The unamortized contract intangible asset balance as of December 31, 2016 was $88 million. Upon the exit of one partner bank, certain terms of the Brazilian Venture were subsequently renegotiated between Banco Bradesco and FIS and were memorialized in an Amended Association Agreement in November 2010. Among other things, the payout for the Brazilian Venture Notes was extended over a ten-year period. Additional performance remuneration provisions upon the achievement of targeted account and transaction volumes were renegotiated, for which additional related party payables were recorded as of December 31, 2011, based on management's expectation that the targets will be met. The passage of time and the achievement of certain targets triggered payments to Banco Bradesco of $6 million and $5 million in 2016 and 2015, respectively. In addition, the board of directors for the Brazilian Venture declared a dividend during the years ended December 31, 2016 and 2015, resulting in payments of $20 million and $24 million respectively, to Banco Bradesco. The carrying value of the noncontrolling interest as of December 31, 2016 was $99 million.

The Company recorded revenues of $272 million, $237 million and $281 million during the years ended December 31, 2016, 2015 and 2014, respectively, from Banco Bradesco. Revenues included $12 million and $96 million of unfavorable currency impact during the years ended December 31, 2016 and 2015, respectively, resulting from foreign currency exchange rate fluctuations between the U.S. Dollar and Brazilian Real in 2016 as compared to 2015 and 2015 as compared to 2014.

The Brazilian Venture currently processes approximately 80 million cards for clients in Brazil and provides call center, cardholder support and collection services for their card portfolios.

A summary of the Company’s related party receivables and payables is as follows (in millions):



		December 31,
Related Party	Balance sheet location	2016		2015
Banco Bradesco	Trade receivables	$	45	$	31
Banco Bradesco	Accounts payable and accrued liabilities	10		9
Banco Bradesco	Other long-term liabilities	22		24