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Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
As described in Note 1, effective as of the third quarter of 2023, the Company no longer reports the Merchant Solutions segment; it now reports its financial performance based on the following segments: Banking Solutions, Capital Market Solutions and Corporate and Other. Below is a summary of each segment.

Banking Solutions ("Banking")

The Banking segment is focused on serving financial institutions of all sizes with core processing software, transaction processing software and complementary applications and services, many of which interact directly with core processing software. We sell these solutions on either a bundled or stand-alone basis. Clients in this segment include global financial institutions, U.S. regional and community banks, credit unions and commercial lenders, as well as government institutions and other commercial organizations. We provide our clients integrated solutions characterized by multi-year processing contracts that generate recurring revenue. The predictable nature of cash flows generated from the Banking segment provides
opportunities for further investments in innovation, integration, information and security, and compliance in a cost-effective manner.

Capital Market Solutions ("Capital Markets")

The Capital Markets segment is focused on serving global financial services clients with a broad array of buy- and sell-side solutions. Clients in this segment include asset managers, buy- and sell-side securities brokerage and trading firms, insurers, private equity firms, and other commercial organizations. Our buy- and sell-side solutions include a variety of mission-critical applications for recordkeeping, data and analytics, trading, financing and risk management. Capital Markets clients purchase our solutions in various ways including licensing and managing technology "in-house," using consulting and third-party service providers, as well as procuring fully outsourced end-to-end solutions. Our long-established relationships with many of these financial and commercial institutions generate significant recurring revenue. We have made, and continue to make, investments in modern platforms, advanced technologies, open APIs, machine learning and artificial intelligence, and regulatory technology to support our Capital Markets clients.

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 that we plan to wind down or sell. The overhead and leveraged costs relate to corporate marketing, corporate finance and accounting, human resources, legal, and amortization of acquisition-related intangibles and other costs, such as acquisition, integration and transformation-related expenses, that are not considered when management evaluates revenue-generating segment performance.

In the Corporate and Other segment, the Company recorded acquisition, integration and other costs comprised of the following (in millions):

Three months endedNine months ended
September 30,September 30,
2023202220232022
Acquisition and integration$12 $14 $21 $33 
Enterprise transformation, including Future Forward and platform modernization79 55 223 191 
Severance and other termination expenses, including those associated with enterprise cost control initiatives and changes in senior management6 16 48 52 
Pending separation of the Worldpay Merchant Solutions business5 — 7 — 
Stock-based compensation, primarily from certain performance-based awards9 25 13 79 
Other, including divestiture-related expenses and enterprise cost control and other initiatives2 13 14 72 
Total acquisition, integration and other costs$113 $123 $326 $427 
Amounts in table may not sum due to rounding.

Other costs in Corporate and Other also include incremental amortization expense associated with shortened estimated useful lives and accelerated amortization methods for certain software and deferred contract cost assets resulting from the Company's platform modernization, as described in Notes 5 and 6, impairment charges described in Note 5 and costs that were previously incurred in support of the Worldpay Merchant Solutions business but are not directly attributable to it and thus were not recorded in discontinued operations.

Adjusted EBITDA

Adjusted EBITDA is a measure of segment profit or loss that 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 FASB ASC Topic 280, Segment Reporting. Adjusted
EBITDA is defined as net earnings (loss) before net interest expense, net other income (expense), income tax provision (benefit) and depreciation and amortization, and excludes certain costs and other transactions that management deems non-operational in nature or that otherwise improve the comparability of operating results across reporting periods by their exclusion. The items affecting the segment profit measure generally include the purchase price amortization of acquired intangible assets as well as acquisition, integration and certain other costs and asset impairments. 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. The Company does not evaluate performance or allocate resources based on segment asset data; therefore, such information is not presented.

For the three months ended September 30, 2023 (in millions):
Capital
BankingMarketCorporate
SolutionsSolutionsand OtherTotal
Revenue$1,756 $677 $56 $2,489 
Operating expenses(1,122)(432)(460)(2,014)
Depreciation and amortization (including purchase accounting amortization)149 87 199 435 
Acquisition, integration and other costs— — 113 113 
Asset impairments— — 7 7 
Indirect Worldpay business support costs— — 40 40 
Adjusted EBITDA$783 $332 $(45)$1,070 
Adjusted EBITDA$1,070 
Depreciation and amortization(262)
Purchase accounting amortization(173)
Acquisition, integration and other costs(113)
Asset impairments(7)
Indirect Worldpay business support costs(40)
Interest expense, net(162)
Other income (expense), net   22 
(Provision) benefit for income taxes(74)
Net earnings (loss) from discontinued operations, net of tax(708)
Net earnings attributable to noncontrolling interest(2)
Net earnings (loss) attributable to FIS common stockholders$(449)
Capital expenditures (1)$104 $63 $48 $215 
(1) Capital expenditures include $18 million in other financing obligations for certain hardware.
For the three months ended September 30, 2022 (in millions):
Capital
BankingMarketCorporate
SolutionsSolutionsand OtherTotal
Revenue$1,703 $633 $79 $2,415 
Operating expenses(1,113)(397)(521)(2,031)
Depreciation and amortization (including purchase accounting amortization)148 79 228 455 
Acquisition, integration and other costs— — 123 123 
Asset impairments— — 17 17 
Indirect Worldpay business support costs— — 43 43 
Adjusted EBITDA$738 $315 $(31)$1,022 
Adjusted EBITDA$1,022 
Depreciation and amortization(262)
Purchase accounting amortization(193)
Acquisition, integration and other costs(123)
Asset impairments(17)
Indirect Worldpay business support costs(43)
Interest expense, net(78)
Other income (expense), net   18 
(Provision) benefit for income taxes(102)
Net earnings (loss) from discontinued operations, net of tax32 
Net earnings attributable to noncontrolling interest(5)
Net earnings attributable to FIS common stockholders$249 
Capital expenditures$111 $60 $62 $233 
For the nine months ended September 30, 2023 (in millions):
Capital
BankingMarketCorporate
SolutionsSolutionsand OtherTotal
Revenue$5,144 $2,011 $156 $7,311 
Operating expenses(3,419)(1,291)(1,465)(6,175)
Depreciation and amortization (including purchase accounting amortization)458 268 596 1,322 
Acquisition, integration and other costs— — 326 326 
Asset impairments— — 8 8 
Indirect Worldpay business support costs— — 123 123 
Adjusted EBITDA$2,183 $988 $(256)$2,915 
Adjusted EBITDA$2,915 
Depreciation and amortization(798)
Purchase accounting amortization(524)
Acquisition, integration and other costs(326)
Asset impairments(8)
Indirect Worldpay business support costs(123)
Interest expense(464)
Other income (expense), net(91)
(Provision) benefit for income taxes(139)
Net earnings (loss) from discontinued operations, net of tax(7,342)
Net earnings attributable to noncontrolling interest(5)
Net earnings (loss) attributable to FIS common stockholders$(6,905)
Capital expenditures (1)$290 $186 $108 $584 

(1) Capital expenditures include $38 million in other financing obligations for certain hardware.
For the nine months ended September 30, 2022 (in millions):

Capital
BankingMarketCorporate
SolutionsSolutionsand OtherTotal
Revenue$5,039 $1,892 $263 $7,194 
Operating expenses(3,298)(1,215)(1,842)(6,355)
Depreciation and amortization (including purchase accounting amortization)451 249 726 1,426 
Acquisition, integration and other costs— — 427 427 
Asset impairments— — 86 86 
Indirect Worldpay business support costs— — 137 137 
Adjusted EBITDA$2,192 $926 $(203)$2,915 
Adjusted EBITDA$2,915 
Depreciation and amortization(837)
Purchase accounting amortization(589)
Acquisition, integration and other costs(427)
Asset impairments(86)
Indirect Worldpay business support costs(137)
Interest expense, net(169)
Other income (expense), net53 
(Provision) benefit for income taxes(218)
Net earnings (loss) from discontinued operations, net of tax150 
Net earnings attributable to noncontrolling interest(9)
Net earnings attributable to FIS common stockholders$646 
Capital expenditures$389 $201 $201 $791