XML 37 R21.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2018
Segment Reporting [Abstract] |
Segment Information | Segment Information Integrated Financial Solutions ("IFS") The IFS segment is focused primarily on serving North American clients for transaction and account processing, payment solutions, channel solutions, lending and wealth and retirement solutions, corporate liquidity, digital channels, risk and compliance solutions, and services, capitalizing on the continuing trend to outsource these solutions. Clients in this segment include regional and community banks, credit unions and commercial lenders, as well as government institutions, merchants and other commercial organizations. IFS’ primary software applications function as the underlying infrastructure of a financial institution's processing environment. These applications include core bank processing software, which banks use to maintain the primary records of their customer accounts, and complementary applications and services that interact directly with the core processing applications. This market is primarily served through integrated solutions and characterized by multi-year processing contracts that generate highly recurring revenues. The predictable nature of cash flows generated from this segment provides opportunities for further investments in innovation, integration, information and security, and compliance in a cost effective manner. The business solutions in this segment included the risk and compliance consulting business through its divestiture on July 31, 2017 (Note 12). Global Financial Solutions ("GFS") The GFS segment is focused on serving the largest global financial institutions and/or international financial institutions with a broad array of capital markets and asset management and insurance solutions, as well as banking and payments solutions. GFS clients include the largest global financial institutions, including those headquartered in the United States, as well as all international financial institutions we serve as clients in more than 130 countries. These institutions face unique business and regulatory challenges and account for the majority of financial institution information technology spend globally. The purchasing patterns of GFS clients vary from those of IFS clients who typically purchase solutions on an outsourced basis. GFS clients purchase our solutions and services in various ways including licensing and managing technology “in-house”, fully outsourced end-to-end solutions, and using consulting and third-party service providers. We have long-established relationships with many of these financial institutions that generate significant recurring revenue. GFS clients also include asset managers, buy- and sell-side securities and trading firms, insurers and private equity firms. This segment also includes the Company's consolidated Brazilian Venture (Note 10). The business solutions in this segment included the Capco consulting business through its divestiture on July 31, 2017 (Note 12). Corporate and Other The Corporate and Other segment consists of corporate overhead expense, certain leveraged functions and miscellaneous expenses that are not included in the operating segments as well as certain non-strategic businesses. The non-strategic businesses in this segment include the PS&E business through its divestiture on February 1, 2017 (Note 12), the global commercial services business and retail check processing business. The overhead and leveraged costs relate to marketing, corporate finance and accounting, human resources, legal, and amortization of acquisition-related intangibles and other costs that are not considered when management evaluates revenue-generating segment performance, such as acquisition integration and severance costs. The Corporate and Other segment also includes the impact on revenue for 2018 and 2017 of adjusting SunGard's deferred revenue to fair value. During the three and six months ended June 30, 2018 the Company recorded certain costs relating to integration and severance activity primarily from the SunGard acquisition of $49 million and $106 million, respectively. During the three and six months ended June 30, 2017 the Company recorded certain costs relating to integration and severance activity primarily from the SunGard acquisition of $39 million and $119 million, respectively. Adjusted EBITDA This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, Adjusted EBITDA, as it relates to our segments, is presented in conformity with Accounting Standards Codification Topic 280, "Segment Reporting." Adjusted EBITDA is defined as EBITDA (defined as net income (loss) before net interest expense, income tax provision (benefit) and depreciation and amortization, including amortization of purchased intangibles), plus certain non-operating items. The non-operating items affecting the segment profit measure generally include acquisition accounting adjustments, acquisition, integration and severance costs, and restructuring expenses. For consolidated reporting purposes, these costs and adjustments are recorded in the Corporate and Other segment for the periods discussed below. Adjusted EBITDA for the respective segments excludes the foregoing costs and adjustments. Summarized financial information for the Company’s segments is shown in the following tables. As of and for the three months ended June 30, 2018 (in millions):
| IFS |  | GFS |  | Corporate and Other |  | Total
Revenues | $ | 1,124 |  |  | $ | 899 |  |  | $ | 83 |  |  | $ | 2,106 |
Operating expenses | 719 |  |  | 655 |  |  | 379 |  |  | 1,753 |
Depreciation and amortization | 87 |  |  | 70 |  |  | 12 |  |  | 169 |
Purchase accounting amortization | — |  |  | — |  |  | 185 |  |  | 185 |
EBITDA | 492 |  |  | 314 |  |  | (99 | ) |  | 707 |
Acquisition deferred revenue adjustment | — |  |  | — |  |  | 1 |  |  | 1 |
Acquisition, integration and severance costs | — |  |  | — |  |  | 49 |  |  | 49 |
Adjusted EBITDA | $ | 492 |  |  | $ | 314 |  |  | $ | (49 | ) |  | 757 |
EBITDA |  |  |  |  |  |  | $ | 707 |
Interest expense, net |  |  |  |  |  |  | 73 |
Depreciation and amortization |  |  |  |  |  |  | 169 |
Purchase accounting amortization |  |  |  |  |  |  | 185 |
Other income (expense) unallocated |  |  |  |  |  |  |  |  |  | (11 | )
Provision (benefit) for income taxes |  |  |  |  |  |  | 51 |
Net (earnings) loss attributable to noncontrolling interest |  |  |  |  |  |  | 6 |
Net earnings attributable to FIS common stockholders |  |  |  |  |  |  | $ | 212 |
Capital expenditures | $ | 76 |  |  | $ | 64 |  |  | $ | 4 |  |  | $ | 144 |
Total assets | $ | 10,570 |  |  | $ | 8,118 |  |  | $ | 5,180 |  |  | $ | 23,868 |
Goodwill | $ | 7,662 |  |  | $ | 5,834 |  |  | $ | 170 |  |  | $ | 13,666 |
As of and for the three months ended June 30, 2017 (in millions):
| IFS |  | GFS |  | Corporate and Other |  | Total
Revenues | $ | 1,087 |  |  | $ | 1,086 |  |  | $ | 85 |  |  | $ | 2,258 |
Operating expenses | 699 |  |  | 813 |  |  | 376 |  |  | 1,888 |
Depreciation and amortization | 78 |  |  | 66 |  |  | 16 |  |  | 160 |
Purchase accounting amortization | — |  |  | — |  |  | 180 |  |  | 180 |
EBITDA | 466 |  |  | 339 |  |  | (95 | ) |  | 710 |
Acquisition deferred revenue adjustment | — |  |  | — |  |  | 2 |  |  | 2 |
Acquisition, integration and severance costs | — |  |  | — |  |  | 39 |  |  | 39 |
Adjusted EBITDA | $ | 466 |  |  | $ | 339 |  |  | $ | (54 | ) |  | $ | 751 |
EBITDA |  |  |  |  |  |  | $ | 710 |
Interest expense, net |  |  |  |  |  |  | 91 |
Depreciation and amortization |  |  |  |  |  |  | 160 |
Purchase accounting amortization |  |  |  |  |  |  | 180 |
Other income (expense) unallocated |  |  |  |  |  |  | 4 |
Provision (benefit) for income taxes |  |  |  |  |  |  | 136 |
Net (earnings) loss attributable to noncontrolling interest |  |  |  |  |  |  | 8 |
Net earnings attributable to FIS common stockholders |  |  |  |  |  |  | $ | 139 |
Capital expenditures (1) | $ | 81 |  |  | $ | 64 |  |  | $ | 2 |  |  | $ | 147 |
Total assets | $ | 10,205 |  |  | $ | 9,250 |  |  | $ | 5,518 |  |  | $ | 24,973 |
Goodwill | $ | 7,662 |  |  | $ | 5,813 |  |  | $ | 170 |  |  | $ | 13,645 |
(1) | Capital expenditures for the three months ended June 30, 2017 include $5 million of capital leases.
As of and for the six months ended June 30, 2018 (in millions):
| IFS |  | GFS |  | Corporate and Other |  | Total
Revenues | $ | 2,185 |  |  | $ | 1,826 |  |  | $ | 161 |  |  | $ | 4,172 |
Operating expenses | 1,414 |  |  | 1,345 |  |  | 766 |  |  | 3,525 |
Depreciation and amortization | 172 |  |  | 137 |  |  | 29 |  |  | 338 |
Purchase accounting amortization | — |  |  | — |  |  | 368 |  |  | 368 |
EBITDA | 943 |  |  | 618 |  |  | (208 | ) |  | 1,353 |
Acquisition deferred revenue adjustment | — |  |  | — |  |  | 3 |  |  | 3 |
Acquisition, integration and severance costs | — |  |  | — |  |  | 106 |  |  | 106 |
Adjusted EBITDA | $ | 943 |  |  | $ | 618 |  |  | $ | (99 | ) |  | 1,462 |
EBITDA |  |  |  |  |  |  | $ | 1,353 |
Interest expense, net |  |  |  |  |  |  | 144 |
Depreciation and amortization |  |  |  |  |  |  | 338 |
Purchase accounting amortization |  |  |  |  |  |  | 368 |
Other income (expense) unallocated |  |  |  |  |  |  |  |  |  | (10 | )
Provision (benefit) for income taxes |  |  |  |  |  |  | 85 |
Net (earnings) loss attributable to noncontrolling interest |  |  |  |  |  |  | 14 |
Net earnings attributable to FIS common stockholders |  |  |  |  |  |  | $ | 394 |
Capital expenditures | $ | 175 |  |  | $ | 135 |  |  | $ | 6 |  |  | $ | 316 |
As of and for the six months ended June 30, 2017 (in millions):
| IFS |  | GFS |  | Corporate and Other |  | Total
Revenues | $ | 2,124 |  |  | $ | 2,089 |  |  | $ | 193 |  |  | $ | 4,406 |
Operating expenses | 1,370 |  |  | 1,615 |  |  | 805 |  |  | 3,790 |
Depreciation and amortization | 151 |  |  | 129 |  |  | 32 |  |  | 312 |
Purchase accounting amortization | — |  |  | — |  |  | 360 |  |  | 360 |
EBITDA | 905 |  |  | 603 |  |  | (220 | ) |  | 1,288 |
Acquisition deferred revenue adjustment | — |  |  | — |  |  | 5 |  |  | 5 |
Acquisition, integration and severance costs | — |  |  | — |  |  | 119 |  |  | 119 |
Adjusted EBITDA | $ | 905 |  |  | $ | 603 |  |  | $ | (96 | ) |  | $ | 1,412 |
EBITDA |  |  |  |  |  |  | $ | 1,288 |
Interest expense, net |  |  |  |  |  |  | 183 |
Depreciation and amortization |  |  |  |  |  |  | 312 |
Purchase accounting amortization |  |  |  |  |  |  | 360 |
Other income (expense) unallocated |  |  |  |  |  |  | 60 |
Provision (benefit) for income taxes |  |  |  |  |  |  | 210 |
Net (earnings) loss attributable to noncontrolling interest |  |  |  |  |  |  | 14 |
Net earnings attributable to FIS common stockholders |  |  |  |  |  |  | $ | 269 |
Capital expenditures (1) | $ | 207 |  |  | $ | 158 |  |  | $ | 11 |  |  | $ | 376 |
(1) | Capital expenditures for the six months ended June 30, 2017 include $79 million of capital leases.
Clients in Brazil, the United Kingdom, Germany, India, Australia, France and Switzerland accounted for the majority of the revenues from clients based outside of North America for all periods presented. Long-term assets, excluding goodwill and other intangible assets, located outside of the United States total $541 million and $515 million as of June 30, 2018 and 2017, respectively. These assets are predominantly located in the United Kingdom, India, Belgium, Germany, France, Australia and Brazil.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration