Equity Method Investment

6 Months Ended

Jun. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

As discussed in Note 1, the Company completed the 2024 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. Beginning on February 1, 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 statements of earnings (loss). We received distributions from Worldpay of $22 million and $29 million, during the three months ended June 30, 2025 and 2024, and $66 million and $29 million, during the six months ended June 30, 2025, and five months ended June 30, 2024, respectively, which are recorded in Other investing activities, net in the consolidated statements of cash flows.

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


	Three months		Three months		Six months		Five months
	ended		ended		ended		ended
Statement of Earnings (Loss)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Revenue	$	1,487	$	1,349	$	2,768	$	2,181
Gross profit	$	721	$	668	$	1,333	$	1,053
Earnings (loss) before income taxes	$	(119)	$	3	$	(300)	$	(227)
Net earnings (loss) attributable to Worldpay	$	(140)	$	(28)	$	(357)	$	(271)
FIS share of net earnings (loss) attributable to Worldpay, net of tax (1)	$	(598)	$	10	$	(669)	$	(76)

(1)This amount is net of $(533) million and $22 million, for the three months ended June 30, 2025 and 2024, and $(511) million and $45 million for the six months ended June 30, 2025, and five months ended June 30, 2024, respectively, of investor-level tax (expense) 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. The investor-level tax for the three and six months ended June 30, 2025, includes $539 million of expense related to an increase in our deferred tax liability. This increase resulted from our agreement to sell our remaining interest in Worldpay, which constituted a change in our intent to hold the investment for the long term. In accordance with the provisions of ASC 740, the deferred tax liability recognized as of June 30, 2025, reflects the difference between the investment's current book value and its tax basis. The final tax due upon closing of the Worldpay Minority Interest Sale will be based on the excess of sales proceeds over the tax basis. The deferred tax liability will be adjusted in each reporting period until the closing of the transaction.


Balance Sheet	June 30, 2025		December 31, 2024
Current assets	$	9,990	$	8,126
Noncurrent assets	$	16,063	$	15,834
Current liabilities	$	7,805	$	5,979
Noncurrent liabilities	$	9,521	$	9,321
Noncontrolling interest	$	—	$	1

Continuing Involvement with Discontinued Operations and Related-Party Transactions

We have continuing involvement with Worldpay, primarily through our remaining interest, a transition services agreement ("TSA"), and various other commercial agreements. 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 January 31, 2024, subject to a six-month extension, and Worldpay is providing various corporate services to the Company, allowing us to maintain access to certain resources transferred in the 2024 Worldpay Sale. Contingent on the closing of the Worldpay Minority Interest Sale (the "Closing"), the TSA was amended to extend the term until June 30, 2027, subject to further extension for a period of up to 24 months following the Closing. Several of the commercial agreements between FIS and Worldpay were also amended to extend their services to Global Payments contingent on the Closing. The TSA and commercial agreement amendments also provide for certain annual purchase commitments.

Third-party pass-through costs of $22 million and $36 million, during the three months ended June 30, 2025 and 2024, and $42 million and $93 million, during the six months ended June 30, 2025, and five months ended June 30, 2024, respectively, were incurred under the TSA and were netted against the equal and offsetting reimbursement amounts due from Worldpay. Additionally, net TSA services income of $28 million and $40 million, during the three months ended June 30, 2025 and 2024, and $56 million and $73 million during the six months ended June 30, 2025, and five months ended June 30, 2024, respectively, 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 statements of earnings (loss). Revenue earned from various commercial services provided to Worldpay was $38 million and $32 million, during the three months ended June 30, 2025 and 2024, and $73 million and $55 million, during the six months ended June 30, 2025, and five months ended June 30, 2024, respectively. Under our former short-term employee leasing agreement ("ELA") with Worldpay, there were no pass-through costs during the three and six months ended June 30, 2025, and $132 million and $247 million of pass-through costs were incurred and netted against the equal and offsetting reimbursement amounts due from Worldpay during the three months ended June 30, 2024, and five months ended June 30, 2024, respectively.

We collected net cash of $82 million and $272 million during the three months ended June 30, 2025 and 2024, and $233 million and $411 million during the six months ended June 30, 2025, and five months ended June 30, 2024, respectively, related to the ELA, TSA and commercial agreements with Worldpay. As of June 30, 2025, and December 31, 2024, we recorded a receivable of $43 million and $84 million, respectively, in Receivable from related party on the consolidated balance sheets 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 June 30, 2025, and December 31, 2024, we also recorded other payables to Worldpay of $21 million and $25 million, respectively, in Accounts payable, accrued and other liabilities on the consolidated balance sheets. These amounts are generally payable within 30 days.

Prior to the 2024 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 2024 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 (the "Guarantee Period"), which will be extended to December 31, 2026, contingent on the closing of the Worldpay Minority Interest Sale, 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 was $299 million and $273 million as of June 30, 2025, and December 31, 2024, respectively. As of June 30, 2025 and December 31, 2024, there were no amounts drawn under the standby letters of credit. As of June 30, 2025, and December 31, 2024, Worldpay’s CVR liability due on October 12, 2027, was $378 million. There is no limitation to the maximum potential future payments under the other remaining Guarantees, and such maximum potential amount of future payments under the other remaining Guarantees 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 June 30, 2025, 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 2024 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.