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Goodwill | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill | Goodwill Changes in goodwill during the years ended December 31, 2022 and 2021, are summarized below (in millions).
| Banking Solutions |  | Merchant Solutions |  | Capital Market Solutions |  | Corporate and Other |  | Total
Balance, December 31, 2020 | $ | 12,279 |  |  | $ | 36,267 |  |  | $ | 4,702 |  |  | $ | 20 |  |  | $ | 53,268 |
Goodwill attributable to acquisitions | — |  |  | 620 |  |  | — |  |  | — |  |  | 620 |
Foreign currency adjustments | (35) |  |  | (484) |  |  | (39) |  |  | — |  |  | (558) |
Balance, December 31, 2021 | 12,244 |  |  | 36,403 |  |  | 4,663 |  |  | 20 |  |  | 53,330 |
Asset impairments | — |  |  | (17,588) |  |  | — |  |  | — |  |  | (17,588) |
Goodwill attributable to acquisitions | — |  |  | 11 |  |  | — |  |  | — |  |  | 11 |
Foreign currency adjustments | (30) |  |  | (1,366) |  |  | (81) |  |  | — |  |  | (1,477) |
Balance, December 31, 2022 | $ | 12,214 |  |  | $ | 17,460 |  |  | $ | 4,582 |  |  | $ | 20 |  |  | $ | 34,276 |
Banking Solutions and Capital Market Solutions For our Banking and Capital Markets reporting units, for which previous quantitative assessments have historically indicated substantial excess of fair value over carrying amounts, our 2020 qualitative annual assessment concluded that it remained more likely than not that the fair value of each of the reporting units continued to exceed their respective carrying amounts. For 2021, we again performed a qualitative annual assessment of these reporting units and concluded that it remained more likely than not that the fair values of these reporting units continued to exceed their respective carrying amounts. For 2022, we performed a quantitative annual assessment which again concluded that the fair values of these reporting units substantially exceeded their respective carrying amounts. Given the substantial excess of fair value over carrying amounts, we believe the likelihood of obtaining materially different results based on a change of assumptions to be low. Merchant Solutions 2022 Goodwill impairment testing We elected to begin our 2022 annual Merchant reporting unit assessment with a quantitative assessment as of October 1, 2022, that took into account the projected impact of worsening macroeconomic conditions, including rising interest rates, inflation, and slowing growth in the U.S. and Europe, as well as a sustained decline in our market capitalization and the effects of changing market dynamics affecting our SMB portfolio, which is migrating from card-present offerings to embedded payments. Our assessment was based on a 50/50 weighting of the income approach and market approach and incorporated information that was known as of October 1, 2022. This analysis indicated an impairment related to our Merchant reporting unit. As a result of continued deterioration in the macroeconomic outlook, a further decline in our market capitalization and slowing growth in our Merchant business during the fourth quarter of 2022, we thereafter reperformed our quantitative goodwill impairment analysis as of December 31, 2022, using updated internal forecasts of future cash flows, considering fourth quarter operating performance, expected impact of planned business initiatives and revised expectations of economic conditions, as well as our then-current market capitalization and other updated relevant assumptions. The fair values estimated during our assessments were determined with the assistance of third-party valuation specialists. At December 31, 2022, the fair value of the Merchant reporting unit was estimated to be less than its carrying value, and we recorded a total goodwill impairment charge of $17.6 billion in the fourth quarter of 2022. 2021 Goodwill impairment testing We began our 2021 annual assessment of the Merchant reporting unit with a qualitative assessment and concluded that it remained more likely than not that the fair value of the reporting unit continued to exceed its carrying amount. Our 2021 qualitative assessment examined factors most likely to affect our reporting units' fair value and considered the impact to our business from the COVID-19 pandemic. The factors examined involved significant use of management judgment and included, among others, (1) forecasted revenue, growth rates, operating margins, and capital expenditures used to calculate estimated future cash flows, (2) future economic and market conditions and (3) FIS' market capitalization. We also considered our actual Merchant segment operating results and updated internal forecasts as compared to prior internal forecasts and other assumptions used in the 2020 quantitative assessment and estimated that the fair value of the reporting unit was likely in excess of its carrying amount by a similar percentage as determined by the prior year’s quantitative assessment. Thus, no impairment was recorded. 2020 Goodwill impairment testing We began our 2020 annual assessment of the Merchant reporting unit with a quantitative assessment due to the economic impact of the COVID-19 pandemic on our Merchant business and its primary operations being recently acquired as part of the Worldpay acquisition. As a result of the assessment, which was performed with the assistance of third-party valuation specialists, the fair value of the reporting unit was estimated to be in excess of its carrying amount by approximately 4%. The total carrying amount of goodwill as of December 31, 2022, is net of accumulated impairment charges of $17.7 billion. Of this amount, $17.6 billion relates to the Merchant Solutions reporting unit which was impaired during the fourth quarter of 2022, and $94 million relates to non-strategic businesses within Corporate and Other which were impaired during the fourth quarter of 2020. The total carrying amount of goodwill as of December 31, 2021 and 2020, is net of accumulated impairment expenses of $94 million which relate to non-strategic businesses within Corporate and Other which were impaired during the fourth quarter of 2020.

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