Equity Method Investment

12 Months Ended

Dec. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

As discussed in Note 1, the Company completed the Worldpay Sale on January 31, 2024, retaining a non-controlling equity interest in Worldpay. We account for our 45% minority ownership in Worldpay using the equity method of accounting. This investment is reflected in Equity method investment on our December 31, 2024, consolidated balance sheet. During the eleven-month period from February 1, 2024, through December 31, 2024, the Company's share of the net income of Worldpay and our investor-level tax impact is reported as Equity method investment earnings (loss), net of tax, in the consolidated statement of earnings (loss). During the year ended December 31, 2024, we received distributions of $47 million from Worldpay, which are recorded in Other investing activities, net on the consolidated statement of cash flows for the year ended December 31, 2024.

Summary Worldpay financial information is as follows (in millions):


	Eleven months
	ended
Statement of Earnings (Loss)	December 31, 2024
Revenue	$	4,732
Gross profit	$	2,422
Earnings (loss) before income taxes	$	(342)
Net earnings (loss) attributable to Worldpay	$	(444)
FIS share of net earnings (loss) attributable to Worldpay, net of tax (1)	$	(145)

(1)For the eleven months ended December 31, 2024, this amount is net of $67 million of investor-level tax benefit, as well as intra-entity eliminations for timing differences between the Company and Worldpay's recognition of profits and losses on related-party transactions.


Balance Sheet	December 31, 2024
Current assets	$	8,126
Noncurrent assets	$	15,834
Current liabilities	$	5,979
Noncurrent liabilities	$	9,321
Noncontrolling interest	$	1

Continuing Involvement with Discontinued Operations and Related-Party Transactions

In connection with the closing of the Worldpay Sale, the Company entered into, and subsequently amended, an LLCA with respect to Worldpay, and a registration rights agreement with respect to the Company's retained equity interest in Worldpay. The LLCA provides that FIS has the right to appoint a minority of the board of managers of Worldpay and that FIS has customary consent and consultation rights with respect to certain material actions of Worldpay, in each case, subject to ownership stepdown thresholds. The LLCA contains, among other things, covenants and restrictions relating to other governance, liquidity and tax matters, including non-solicitation and noncompetition covenants, distribution mechanics, preemptive rights and follow-on equity funding commitments of the Buyer, and restrictions on transfer and associated tag-along and drag-along rights. Neither FIS nor the Buyer may transfer any of its interest in Worldpay prior to January 31, 2026, without the other's prior written consent. Each of FIS and the Buyer will have the right to require Worldpay to consummate an initial public offering ("IPO") or sale transaction after the fourth anniversary of the closing, subject to certain return hurdles and (in the case of an IPO) public float requirements, which requirements will fall away following the sixth anniversary of the closing.

We have continuing involvement with Worldpay, primarily through our remaining interest, an employee leasing agreement ("ELA"), a transition services agreement ("TSA"), and various other commercial agreements. Under the terms of the ELA, which was substantially completed by July 1, 2024, the Company leased certain employees to Worldpay in the United States, China, Colombia and South Korea. The compensation and benefit costs paid by the Company for the leased employees was billed to and reimbursed by Worldpay. Under the terms of the TSA, the Company is procuring certain third-party services on behalf of Worldpay and providing technology infrastructure, risk and security, accounting and various other corporate services to Worldpay for a period of up to 24 months after the closing, subject to a six-month extension, and Worldpay is providing various corporate services to the Company, allowing it to maintain access to certain resources transferred in the Worldpay Sale.

During the eleven months ended December 31, 2024, pass-through costs of $247 million were incurred under the ELA, and third-party pass-through costs of $159 million were incurred under the TSA, and were netted against the equal and offsetting reimbursement amounts due from Worldpay. Additionally, during the eleven months ended December 31, 2024, net TSA services income of $142 million was recognized in Other operating (income) expense, net - related party, with approximately two-thirds of the corresponding expense recorded in Cost of revenue and the remainder recorded in Selling, general and administrative expense in the consolidated statement of earnings (loss). Revenue earned during the eleven months ended December 31, 2024, from various commercial services provided to Worldpay was $140 million.

For the eleven months ended December 31, 2024, we collected net cash of $704 million related to the ELA, TSA and commercial agreements with Worldpay. As of December 31, 2024, we recorded a receivable of $84 million in Receivable from

related party on the consolidated balance sheet in connection with the TSA and commercial agreements. Under the TSA and commercial agreements, amounts are generally invoiced monthly in arrears and are payable by electronic transfer within 30 days of invoice. As of December 31, 2024, we recorded a settlement payable of $134 million in Current liabilities held for sale on the consolidated balance sheet for amounts to be settled to Worldpay. The settlement payable is generally paid within five business days. As of December 31, 2024, we also recorded other payables to Worldpay of $25 million in Accounts payable, accrued and other liabilities on the consolidated balance sheet. These amounts are generally payable within 30 days.

Prior to the Worldpay Sale, the Company issued standby letters of credit and made parental guarantees (collectively "Guarantees") in the ordinary course of its business to various counterparties on behalf of certain former subsidiaries included in the Worldpay Sale, including a guarantee of a liability that a Worldpay subsidiary owes to the former owners of Worldpay Group plc (the "CVR Liability"). FIS and Worldpay have agreed to maintain these Guarantees through January 31, 2026, affording Worldpay time to arrange for alternatives to the Guarantees. Worldpay’s aggregate amount of borrowing capacity under the standby letters of credit guaranteed by FIS is $273 million. As of December 31, 2024, there were no amounts outstanding under the standby letters of credit. As of December 31, 2024, Worldpay’s CVR liability was $378 million and is due on October 12, 2027. There is no limitation to the maximum potential future payments under the other remaining Guarantees, and such maximum potential amount of future payments cannot be estimated due to the conditional nature of the Company's obligations and the unique facts and circumstances involved in each agreement. As of December 31, 2024, there are no amounts drawn under any of the Guarantees. In the event a Worldpay subsidiary were to default on a performance obligation covered by the Guarantees, the Company could be required to make payment or be subject to claims; however, in any such case, Worldpay is required under the terms of the agreement governing the Worldpay Sale to fully reimburse and indemnify the Company. The Company considers the likelihood of incurring a loss under the Guarantees to be remote, and no amounts have been accrued with respect to these Guarantees.