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Segment Information | 12 Months Ended
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Dec. 31, 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, finance, accounting, human resources, legal, compliance and internal audit functions as well as other costs, such as acquisition, integration and transformation-related expenses and amortization of acquisition-related intangibles, 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 for the years ended December 31, 2023, 2022 and 2021, comprised of the following (in millions):
|  | 2023 |  | 2022 |  | 2021
Acquisition and integration |  | $ | 48 |  |  | $ | 50 |  |  | $ | 79 |
Enterprise transformation, including Future Forward and platform modernization |  | 312 |  |  | 279 |  |  | 107 |
Severance and other termination expenses, including those associated with enterprise cost control initiatives and changes in senior management |  | 70 |  |  | 89 |  |  | 10 |
Pending separation of the Worldpay Merchant Solutions business |  | 17 |  |  | — |  |  | — |
Stock-based compensation, primarily from certain performance-based awards |  | 15 |  |  | 83 |  |  | — |
Accelerated stock compensation expense - qualified equity retirement program |  | — |  |  | — |  |  | 155 |
Other, including divestiture-related expenses and enterprise cost control and other initiatives |  | 20 |  |  | 80 |  |  | 160 |
Total acquisition, integration and other costs |  | $ | 482 |  |  | $ | 581 |  |  | $ | 511 |
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 9 and 10, impairment charges described in Notes 9 and 10 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), equity method investment earnings (loss), 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. 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. 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. As of and for the year ended December 31, 2023 (in millions):
| Banking Solutions |  | Capital Market Solutions |  | Corporate and Other |  | Total
Revenue | $ | 6,733 |  |  | $ | 2,766 |  |  | $ | 322 |  |  | $ | 9,821 |
Operating expenses | (4,403) |  |  | (1,730) |  |  | (2,221) |  |  | (8,354) |
Depreciation and amortization (including purchase accounting amortization) | 598 |  |  | 354 |  |  | 791 |  |  | 1,743 |
Acquisition, integration and other costs | — |  |  | — |  |  | 482 |  |  | 482 |
Asset impairments | — |  |  | — |  |  | 113 |  |  | 113 |
Indirect Worldpay business support costs | — |  |  | — |  |  | 167 |  |  | 167 |
Adjusted EBITDA | $ | 2,928 |  |  | $ | 1,390 |  |  | $ | (346) |  |  | $ | 3,972 |
Adjusted EBITDA |  |  |  |  |  |  | $ | 3,972 |
Depreciation and amortization |  |  |  |  |  |  | (1,047) |
Purchase accounting amortization |  |  |  |  |  |  | (696) |
Acquisition, integration and other costs |  |  |  |  |  |  | (482) |
Asset impairments |  |  |  |  |  |  | (113) |
Indirect Worldpay business support costs |  |  |  |  |  |  | (167) |
Interest expense, net |  |  |  |  |  |  | (621) |
Other income (expense), net |  |  |  |  |  |  | (183) |
(Provision) benefit for income taxes |  |  |  |  |  |  | (157) |
Net earnings (loss) from discontinued operations, net of tax |  |  |  |  |  |  | (7,153) |
Net earnings attributable to noncontrolling interest |  |  |  |  |  |  | (7) |
Net earnings (loss) attributable to FIS common stockholders |  |  |  |  |  |  | $ | (6,654) |
Capital expenditures (1) | $ | 433 |  |  | $ | 269 |  |  | $ | 131 |  |  | $ | 833 |
(1) Capital expenditures include $53 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2022 (in millions):
| Banking Solutions |  | Capital Market Solutions |  | Corporate and Other |  | Total
Revenue | $ | 6,624 |  |  | $ | 2,631 |  |  | $ | 464 |  |  | $ | 9,719 |
Operating expenses | (4,339) |  |  | (1,624) |  |  | (2,538) |  |  | (8,501) |
Depreciation and amortization (including purchase accounting amortization) | 597 |  |  | 331 |  |  | 951 |  |  | 1,879 |
Acquisition, integration and other costs | — |  |  | — |  |  | 581 |  |  | 581 |
Asset impairments | — |  |  | — |  |  | 103 |  |  | 103 |
Indirect Worldpay business support costs | — |  |  | — |  |  | 180 |  |  | 180 |
Adjusted EBITDA | $ | 2,882 |  |  | $ | 1,338 |  |  | $ | (259) |  |  | $ | 3,961 |
Adjusted EBITDA |  |  |  |  |  |  | $ | 3,961 |
Depreciation and amortization |  |  |  |  |  |  | (1,101) |
Purchase accounting amortization |  |  |  |  |  |  | (778) |
Acquisition, integration and other costs |  |  |  |  |  |  | (581) |
Asset impairments |  |  |  |  |  |  | (103) |
Indirect Worldpay business support costs |  |  |  |  |  |  | (180) |
Interest expense, net |  |  |  |  |  |  | (281) |
Other income (expense), net |  |  |  |  |  |  | 4 |
(Provision) benefit for income taxes |  |  |  |  |  |  | (325) |
Net earnings (loss) from discontinued operations, net of tax |  |  |  |  |  |  | (17,324) |
Net earnings attributable to noncontrolling interest |  |  |  |  |  |  | (12) |
Net earnings attributable to FIS common stockholders |  |  |  |  |  |  | $ | (16,720) |
Capital expenditures (1) | $ | 502 |  |  | $ | 271 |  |  | $ | 286 |  |  | $ | 1,059 |
(1) Capital expenditures include $63 million in other financing obligations for certain hardware and software. As of and for the year ended December 31, 2021 (in millions):
| Banking Solutions |  | Capital Market Solutions |  | Corporate and Other |  | Total
Revenue | $ | 6,361 |  |  | $ | 2,495 |  |  | $ | 483 |  |  | $ | 9,339 |
Operating expenses | (4,051) |  |  | (1,577) |  |  | (2,671) |  |  | (8,299) |
Depreciation and amortization (including purchase accounting amortization) | 584 |  |  | 317 |  |  | 970 |  |  | 1,871 |
Acquisition, integration and other costs | — |  |  | — |  |  | 511 |  |  | 511 |
Asset impairments | — |  |  | — |  |  | 194 |  |  | 194 |
Indirect Worldpay business support costs | — |  |  | — |  |  | 153 |  |  | 153 |
Adjusted EBITDA | $ | 2,894 |  |  | $ | 1,235 |  |  | $ | (360) |  |  | 3,769 |
Adjusted EBITDA |  |  |  |  |  |  | $ | 3,769 |
Depreciation and amortization |  |  |  |  |  |  | (1,035) |
Purchase accounting amortization |  |  |  |  |  |  | (836) |
Acquisition, integration and other costs |  |  |  |  |  |  | (511) |
Asset impairments |  |  |  |  |  |  | (194) |
Indirect Worldpay business support costs |  |  |  |  |  |  | (153) |
Interest expense, net |  |  |  |  |  |  | (212) |
Other income (expense), net |  |  |  |  |  |  | (109) |
(Provision) benefit for income taxes |  |  |  |  |  |  | (403) |
Net earnings (loss) from discontinued operations |  |  |  |  |  |  | 102 |
Equity method investment earnings (loss) |  |  |  |  |  |  | 6 |
Net earnings attributable to noncontrolling interest |  |  |  |  |  |  | (7) |
Net earnings attributable to FIS common stockholders |  |  |  |  |  |  | $ | 417 |
Capital expenditures (1) | $ | 446 |  |  | $ | 221 |  |  | $ | 286 |  |  | $ | 953 |
(1) Capital expenditures include $35 million in other financing obligations for certain hardware and software. Clients in the U.K., Germany, Brazil, Australia and Switzerland accounted for the majority of the revenue from clients based outside of North America for all periods presented. No individual country outside of North America accounted for more than 10% of total revenue for the years ended December 31, 2023, 2022 and 2021. Long-term assets, excluding goodwill and other intangible assets, located outside of the United States totaled $651 million and $632 million as of December 31, 2023 and 2022, respectively. These assets are predominantly located in the United Kingdom, Germany, India, France, Australia, and Switzerland..

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