Condensed Consolidated Financial Statement Details

6 Months Ended

Jun. 30, 2024

Condensed Consolidated Financial Statement Details [Abstract]

Condensed Consolidated Financial Statement Details

Cash and Cash Equivalents

The Company records restricted cash in captions other than Cash and cash equivalents in the consolidated balance sheets. The reconciliation between Cash and cash equivalents in the consolidated balance sheets and Cash, cash equivalents and restricted cash per the consolidated statements of cash flows is as follows (in millions):


	June 30, 2024		December 31, 2023
Cash and cash equivalents on the consolidated balance sheets	$	2,131	$	440
Merchant float from discontinued operations included in current assets held for sale	821		2,594
Cash from discontinued operations included in current assets held for sale	43		1,380
Total Cash, cash equivalents and restricted cash per the consolidated statements of cash flows	$	2,995	$	4,414

Settlement Assets

The principal components of the Company's settlement assets on the consolidated balance sheets are as follows (in millions):


	June 30, 2024		December 31, 2023
Settlement assets
Settlement deposits	$	343	$	463
Settlement receivables	187		154
Total Settlement assets	$	530	$	617

Intangible Assets, Software and Property and Equipment

The following table provides details of Intangible assets, Software and Property and equipment as of June 30, 2024, and December 31, 2023 (in millions):


	June 30, 2024						December 31, 2023
	Cost		Accumulated depreciation and amortization		Net		Cost		Accumulated depreciation and amortization		Net
Intangible assets	$	6,449	$	4,941	$	1,508	$	6,468	$	4,645	$	1,823
Software	$	4,219	$	2,041	$	2,178	$	4,162	$	2,047	$	2,115
Property and equipment	$	2,086	$	1,441	$	645	$	2,074	$	1,379	$	695

As of June 30, 2024, Intangible assets, net of amortization, includes $1.4 billion of customer relationships and $77 million of trademarks and other intangible assets. Amortization expense with respect to Intangible assets was $159 million and $171 million for the three months, and $320 million and $342 million for the six months, ended June 30, 2024 and 2023, respectively.

Depreciation expense for property and equipment was $44 million and $41 million for the three months, and $88 million and $83 million for the six months, ended June 30, 2024 and 2023, respectively.

Amortization expense with respect to software was $144 million and $152 million for the three months, and $286 million and $304 million for the six months, ended June 30, 2024 and 2023, respectively

The Company recorded software impairments totaling $4 million for the three months, and $15 million for the six months, ended June 30, 2024, primarily related to the termination of certain internally developed software projects. The Company recorded less than $1 million of software impairments during the corresponding 2023 periods.

Goodwill

Changes in goodwill during the six months ended June 30, 2024, are summarized below (in millions).


			Capital		Corporate
	Banking		Market		And
	Solutions		Solutions		Other		Total
Balance, December 31, 2023	$	12,588	$	4,363	$	20	$	16,971
Goodwill attributable to acquisitions	5		36		—		41
Foreign currency adjustments	(14)		(19)		—		(33)
Balance, June 30, 2024	$	12,579	$	4,380	$	20	$	16,979

We assess goodwill for impairment on an annual basis during the fourth quarter or more frequently if circumstances indicate potential impairment. We evaluated whether events and circumstances as of June 30, 2024, indicated potential impairment of our reporting units.

For our Banking and Capital Markets reporting units, we performed a qualitative assessment by examining factors most likely to affect our reporting units' fair values. The factors examined involve use of management judgment and included, among others, (1) forecast 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. Based on our interim impairment assessment as of June 30, 2024, we concluded that it remained more likely than not that the fair value continues to exceed the carrying amount for each of these reporting units; therefore, goodwill was not impaired. 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.

Equity Security Investments

The Company holds various equity securities without readily determinable fair values. These securities primarily represent strategic investments made by the Company, as well as investments obtained through acquisitions. Such investments totaled $197 million and $195 million at June 30, 2024, and December 31, 2023, respectively, and are included within Other noncurrent assets on the consolidated balance sheets. The Company accounts for these investments at cost, less impairment, and adjusts the carrying values for observable price changes from orderly transactions for identical or similar investments of the same issuer. These adjustments are generally considered Level 2-type fair value measurements. The Company records realized and unrealized gains and losses on these investments, as well as impairment losses, as Other income (expense), net on the consolidated statements of earnings (loss) and recorded net gains (losses) of $(3) million and $(32) million for the three months and $(4) million and $(34) million for the six months ended June 30, 2024 and 2023, respectively, related to these investments.

Accounts Payable, Accrued and Other Liabilities

Accounts payable, accrued and other liabilities as of June 30, 2024, and December 31, 2023, consisted of the following (in millions):


	June 30, 2024		December 31, 2023
Trade accounts payable	$	101	$	110
Accrued salaries and incentives	382		472
Accrued benefits and payroll taxes	105		106
Income taxes payables	203		17
Taxes other than income tax	306		301
Accrued interest payable	84		162
Operating lease liabilities	81		85
Related-party payables	36		—
Other accrued liabilities	556		606
Total Accounts payable, accrued and other liabilities	$	1,854	$	1,859