XML 57 R26.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Employee Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2021
Share-based Payment Arrangement [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Stock Purchase Plan FIS employees participate in an Employee Stock Purchase Plan ("ESPP"). Eligible employees may voluntarily purchase, at current market prices, shares of FIS' common stock through payroll deductions. Pursuant to the ESPP, employees may contribute an amount between 3% and 15% of their base salary and certain commissions. Shares purchased are allocated to employees based upon their contributions. The Company contributes a matching amount as specified in the ESPP of 25% of the employee's contribution. The Company recorded expense of $21 million, $20 million, and $15 million, respectively, for the years ended December 31, 2021, 2020 and 2019, relating to the participation of FIS employees in the ESPP. 401(k) Profit Sharing Plans The Company's U.S. employees are covered by a qualified 401(k) plan. Eligible employees may contribute up to 40% of their eligible compensation, up to the annual amount allowed pursuant to the Internal Revenue Code. The Company generally matches 50% of each dollar of employee contribution up to 6% of the employee's total eligible compensation. The Company recorded expense of $118 million, $107 million and $91 million, respectively, for the years ended December 31, 2021, 2020 and 2019, relating to the participation of FIS employees in the 401(k) plan. Stock Compensation Plans The Company grants equity awards pursuant to shares authorized under the FIS 2008 Omnibus Incentive Plan, as restated and amended in conjunction with certain acquisitions to register additional shares for issuance ("FIS Plan"). The number of shares available for future grants under the FIS Plan is 29 million as of December 31, 2021. On January 1, 2021, the Company established a Qualified Retirement Equity Program that modified our existing stock compensation plans. The modification implemented a new retirement policy that permits retirees that meet certain eligibility criteria to continue vesting in unvested equity awards in accordance with the terms of the respective grant agreements, resulting in accelerated stock compensation expense for those employees meeting the definition of retirement eligible. The Company recorded $104 million in accelerated stock compensation expense included in Selling, general, and administrative expenses in the consolidated statement of earnings to reflect the impact of the modification on unvested equity awards outstanding at January 1, 2021. During 2019, in conjunction with the Worldpay acquisition, the Company converted outstanding Worldpay equity awards into corresponding FIS equity awards, pursuant to the terms of the merger agreement. The converted equity awards are subject to time-based vesting criteria and include change in control provisions allowing for acceleration of unvested awards in the event of termination of employment without cause or for good reason. Stock Options The Company grants stock options to certain key employees, which typically vest annually over three years. All stock options are non-qualified stock options, the stock options granted by the Company expire on the seventh anniversary of the grant date, and the stock options converted through the Worldpay acquisition expire on the tenth anniversary of the grant date. The following table summarizes stock option activity for the year ended December 31, 2021 (in millions except for per share amounts):
| Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Balance, December 31, 2020 | 8 |  |  | $ | 88.01 |  |  | 3.8 |  | $ | 464 |
Granted | 2 |  |  | 142.92 |  |  |  |  |
Exercised | (2) |  |  | 72.67 |  |  |  |  | $ | 107 |
Cancelled | — |  |  | 126.64 |  |  |  |  |
Balance, December 31, 2021 | 8 |  |  | $ | 99.32 |  |  | 3.6 |  | $ | 143 |
Options exercisable at December 31, 2021 | 6 |  |  | $ | 84.91 |  |  | 2.6 |  | $ | 142 |
The intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019, was $107 million, $348 million and $189 million, respectively. The intrinsic value of the outstanding options and options exercisable is based on a closing stock price as of December 31, 2021, of $109.15. The Company issues authorized but unissued shares or shares from treasury stock to settle stock options exercised. The number of options granted for the years ended December 31, 2021, 2020 and 2019, was 2 million, 2 million and 1 million, respectively. The weighted average exercise price was $142.92, $120.47 and $113.48 for the years ended December 31, 2021, 2020 and 2019, respectively. The weighted average fair value of options granted during the years ended December 31, 2021, 2020 and 2019, was $29.01, $21.17 and $19.25, respectively, using the Black-Scholes option pricing model with the assumptions below:
| 2021 |  | 2020 |  | 2019
Risk free interest rate | 0.6 | % |  | 0.4 | % |  | 2.2 | %
Volatility | 27.6 | % |  | 24.7 | % |  | 20.1 | %
Dividend yield | 1.1 | % |  | 1.2 | % |  | 1.2 | %
Weighted average expected life (years) | 4.1 |  | 4.1 |  | 4.1
The options converted through the Worldpay acquisition on July 31, 2019, had a weighted average fair value of $71.05, a weighted average risk free interest rate of 1.9%, a weighted volatility of 18.6%, a weighted average dividend yield of 1.0% and a weighted average expected life of 3.9 years. The Company estimates future forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ significantly from those estimates. The Company bases the risk-free interest rate that is used in the Black-Scholes model on U.S. Treasury securities issued with maturities similar to the expected term of the options. The expected stock volatility factor is determined using historical daily price of the common stock and the impact of any expected trends. The dividend yield assumption is based on the current dividend yield at the grant date or management's forecasted expectations. The expected life assumption is determined by calculating the average term from the Company's historical stock option activity and considering the impact of future trends. Restricted Stock Units The Company issues restricted stock units, which typically vest annually over three years. The grant date fair value of the restricted stock units is based on the fair market value of our common stock on the grant date. The number of restricted stock units granted during the years ended December 31, 2021, 2020 and 2019, was 2 million, 1 million and 2 million, respectively. The weighted average grant date fair value of these awards granted during the years ended December 31, 2021, 2020 and 2019, was $136.69, $127.14 and $124.72, respectively. Certain restricted stock units granted in 2021, 2020 and 2019 are also subject to performance and/or market conditions, in addition to time-based vesting criteria. For the grants with performance conditions, participants typically have the right to earn 0% to 300% of the target number of shares of the Company's common stock, determined by the level of the financial performance measures achieved during the performance period. The total fair value of restricted stock units that vested was $298 million, $293 million and $169 million in 2021, 2020 and 2019, respectively. The following table summarizes the restricted stock units activity for the year ended December 31, 2021 (in millions except for per share amounts):
|  | Quantity |  | Weighted Average Fair Value
Balance December 31, 2020 |  | 5 |  |  | $ | 127.63 |
Granted |  | 2 |  |  | $ | 136.69 |
Vested |  | (2) |  |  | $ | 127.19 |
Forfeited |  | — |  |  | $ | 126.34 |
Balance December 31, 2021 |  | 5 |  |  | $ | 132.60 |
Stock Compensation Cost The Company recorded total stock compensation expense of $383 million, $283 million and $402 million for the years ended December 31, 2021, 2020 and 2019, respectively, included in Selling, general, and administrative expenses in the consolidated statements of earnings. Stock compensation expense recorded related to the grants with performance conditions is based on management's expected level of achievement of the financial performance measures during the performance period and is adjusted as appropriate throughout the performance period based on the shares expected to be earned at that time. The 2021 stock compensation expense includes $104 million in accelerated stock compensation expense resulting from the Qualified Retirement Equity Program modification, described further above. As of December 31, 2021 and 2020, the total unrecognized compensation cost related to non-vested stock awards is $181 million and $304 million, respectively, which is expected to be recognized in pre-tax income over a weighted average period of 1.5 years and 1.2 years, respectively.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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