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Discontinued Operations | 6 Months Ended
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Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations Sale of Worldpay Merchant Solutions Business As discussed in Note 1, the Company completed the Worldpay Sale on January 31, 2024. The results of the Worldpay Merchant Solutions business prior to the completion of the Worldpay Sale have been presented as discontinued operations. The assets and liabilities of our Worldpay Brazil and RealNet subsidiaries, the value of which was included as part of the Worldpay Sale, were not conveyed in the closing and are expected to be transferred as soon as all regulatory approvals have been received. These assets and liabilities continue to be reported as assets held for sale, and their related earnings (loss) are reported in Earnings (loss) from discontinued operations, net of tax on the consolidated statements of earnings (loss). The following table represents a reconciliation of the major components of Earnings (loss) from discontinued operations, net of tax, presented in the consolidated statements of earnings (loss), reflecting activity for the three and six months ended June 30, 2024 (in millions). The Company's presentation of earnings (loss) from discontinued operations excludes general corporate overhead costs that were historically allocated to the Worldpay Merchant Solutions business. Additionally, beginning on July 5, 2023, the Company stopped amortization of long-lived assets held for sale in accordance with ASC 360.
|  | Three months ended June 30, |  | Six months ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Major components of earnings (loss) from discontinued operations before income taxes: |  |  |  |  |  |  |  |
Revenue |  | $ | 4 |  |  | $ | 1,322 |  |  | $ | 406 |  |  | $ | 2,435 |
Cost of revenue |  | (2) |  |  | (670) |  |  | (64) |  |  | (1,270) |
Selling, general, and administrative expenses |  | — |  |  | (479) |  |  | (155) |  |  | (965) |
Asset impairments |  | — |  |  | (6,840) |  |  | — |  |  | (6,840) |
Interest income (expense), net |  | — |  |  | 7 |  |  | 1 |  |  | 11 |
Other, net |  | (1) |  |  | 23 |  |  | (4) |  |  | 48 |
Earnings (loss) from discontinued operations related to major components of pretax earnings (loss) |  | 1 |  |  | (6,637) |  |  | 184 |  |  | (6,581) |
Loss on sale of disposal group |  | — |  |  | — |  |  | (466) |  |  | — |
Earnings (loss) from discontinued operations |  | 1 |  |  | (6,637) |  |  | (282) |  |  | (6,581) |
Provision (benefit) for income taxes |  | — |  |  | 43 |  |  | (991) |  |  | 55 |
Earnings (loss) from discontinued operations, net of tax attributable to FIS |  | $ | 1 |  |  | $ | (6,680) |  |  | $ | 709 |  |  | $ | (6,636) |
A loss on sale of disposal group of $466 million was recorded upon closing of the Worldpay Sale and reflects the impact of the excess of the carrying value of the disposal group over the estimated fair value less cost to sell. Upon closing of the Worldpay Sale, t he Company also recorded a tax benefit of $991 million primarily from the write-off of U.S. deferred tax liabilities that were not transferred in the Worldpay Sale, net of the estimated U.S. tax cost that the Company expects to incur as a result of the Worldpay Sale. The estimated U.S. tax cost remains unchanged from the amount recorded as of March 31, 2024, based on available data and management determinations as of June 30, 2024. Post-closing selling price adjustments and completion of other purchase agreement provisions in connection with the Worldpay Sale could result in further adjustments to the loss on sale amount and the estimated U.S. tax cost. The following table represents the major classes of assets and liabilities of the disposal group classified as held for sale presented in the consolidated balance sheets as of June 30, 2024, and December 31, 2023 (in millions). Assets held for sale are reported at the lower of their carrying value or fair value less cost to sell and are not depreciated or amortized.
| June 30, 2024 |  | December 31, 2023
Major classes of assets included in discontinued operations: |  |  |
Cash and cash equivalents | $ | 43 |  |  | $ | 1,380 |
Settlement assets | 951 |  |  | 6,727 |
Trade receivables, net of allowance for credit losses of $— and $52 | 3 |  |  | 1,843 |
Prepaid expenses and other current assets | — |  |  | 161 |
Total current assets | 997 |  |  | 10,111 |
Property and equipment, net | — |  |  | 207 |
Goodwill | 15 |  |  | 10,906 |
Intangible assets, net | — |  |  | 5,971 |
Software, net | — |  |  | 1,321 |
Other noncurrent assets | 2 |  |  | 613 |
Total noncurrent assets | 17 |  |  | 19,018 |
Less valuation allowance | — |  |  | (1,909) |
Total assets of the disposal group classified as held for sale | $ | 1,014 |  |  | $ | 27,220 |
Major classes of liabilities included in discontinued operations: |  |  |
Accounts payable, accrued and other liabilities | $ | 3 |  |  | $ | 998 |
Settlement payables (1) | 946 |  |  | 7,821 |
Other current liabilities | — |  |  | 65 |
Total current liabilities | 949 |  |  | 8,884 |
Deferred income taxes | — |  |  | 599 |
Other noncurrent liabilities | — |  |  | 494 |
Total noncurrent liabilities | — |  |  | 1,093 |
Total liabilities of the disposal group classified as held for sale | $ | 949 |  |  | $ | 9,977 |
(1)As of June 30, 2024, Settlement payables includes $116 million due to Worldpay, which is a related party. Settlement Assets The principal components of the Company's settlement assets of the disposal group are as follows (in millions):
| June 30, 2024 |  | December 31, 2023
Settlement assets |  |  |
Settlement deposits | $ | — |  |  | $ | 56 |
Merchant float | 821 |  |  | 2,594 |
Settlement receivables | 130 |  |  | 4,077 |
Total Settlement assets | $ | 951 |  |  | $ | 6,727 |
Held-for-sale Disposal Group Measurement The net assets held for sale as of June 30, 2024, consisting of the net assets of our Worldpay Brazil and RealNet subsidiaries, are recorded at carrying value less cost to sell.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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