Georgia | 37-1490331 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||
Emerging growth company o | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
Exhibit | Description | |
99.1 | Press release of Fidelity National Information Services, Inc. dated October 30, 2018 regarding financial results for the three and nine months ended September 30, 2018. |
Fidelity National Information Services, Inc. | ||||
Date: October 30, 2018 | By: | /s/ James W. Woodall | ||
Name: | James W. Woodall | |||
Title: | Corporate Executive Vice President and Chief Financial Officer | |||
Fidelity National Information Services, Inc. | ||||
Date: October 30, 2018 | By: | /s/ Katy T. Thompson | ||
Name: | Katy T. Thompson | |||
Title: | Corporate Senior Vice President and Chief Accounting Officer |
• | GAAP revenue decreased 0.6 percent; organic revenue increased 4.0 percent |
• | Diluted EPS increased 161.1 percent to $0.47; Adjusted EPS increased 13.7 percent to $1.33 |
• | Returned $570 million to shareholders; $465 million in share repurchases and $105 million in dividends |
• | IFS: |
• | GFS: |
• | Corporate / Other: |
• | Consolidated GAAP revenue decrease of approximately 2.5 percent, previously 1.5 to 2.5 percent; |
• | Net earnings margin of approximately 11.0 percent, previously approximately 13.0 percent |
• | Diluted EPS of $2.69 to $2.76, previously $3.08 to $3.39 |
• | Consolidated organic revenue increase of approximately 3.0 percent, previously 2.5 to 3.5 percent; |
• | Adjusted EBITDA margin of approximately 37.0 percent |
• | Adjusted EPS of $5.20 to $5.24, previously $5.18 to $5.34 |
• | the risk that acquired businesses will not be integrated successfully, or that the integration will be more costly or more time-consuming and complex than anticipated; |
• | the risk that cost savings and other synergies anticipated to be realized from acquisitions may not be fully realized or may take longer to realize than expected; |
• | the risk of doing business internationally; |
• | changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, changes in either or both the United States and international lending, capital and financial markets, and currency fluctuations; |
• | the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy and cybersecurity laws and regulations; |
• | the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting, the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries; |
• | changes in the growth rates of the markets for our solutions; |
• | failures to adapt our solutions to changes in technology or in the marketplace; |
• | internal or external security breaches of our systems, including those relating to unauthorized access, theft, corruption or loss of personal information and computer viruses and other malware affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events; |
• | the risk that implementation of software (including software updates) for customers or at customer locations or employee error in monitoring our software and platforms may result in the corruption or loss of data or customer information, interruption of business operations, outages, exposure to liability claims or loss of customers; |
• | the reaction of current and potential customers to communications from us or regulators regarding information security, risk management, internal audit or other matters; |
• | competitive pressures on pricing related to the decreasing number of community banks in the U.S., the development of new disruptive technologies competing with one or more of our solutions, increasing presence of international competitors in the U.S. market and the entry into the market by global banks and global companies with respect to certain competitive solutions, each of which may have the impact of unbundling individual solutions from a comprehensive suite of solutions we provide to many of our customers; |
• | the failure to innovate in order to keep up with new emerging technologies, which could impact our solutions and our ability to attract new, or retain existing, customers; |
• | the failure to meet financial goals to grow the business in Brazil after the unwinding of the Brazilian Venture; |
• | the risks of reduction in revenue from the loss of existing and/or potential customers in Brazil after the unwinding of the Brazilian Venture; |
• | an operational or natural disaster at one of our major operations centers; and |
• | other risks detailed under “Risk Factors” and other sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and other filings with the SEC. |
Ellyn Raftery, 904.438.6083 | Peter Gunnlaugsson, 904.438.6603 | |
Chief Marketing Officer | Senior Vice President | |
FIS Global Marketing and Corporate Communications | FIS Investor Relations | |
ellyn.raftery@fisglobal.com | pete.gunnlaugsson@fisglobal.com |
Exhibit A | Condensed Consolidated Statements of Earnings - Unaudited for the three and nine months ended September 30, 2018 and 2017 |
Exhibit B | Condensed Consolidated Balance Sheets - Unaudited as of September 30, 2018 and December 31, 2017 |
Exhibit C | Condensed Consolidated Statements of Cash Flows - Unaudited for the nine months ended September 30, 2018 and 2017 |
Exhibit D | Supplemental Non-GAAP Financial Information - Unaudited for the three and nine months ended September 30, 2018 and 2017 |
Exhibit E | Supplemental GAAP to Non-GAAP Reconciliations - Unaudited for the three and nine months ended September 30, 2018 and 2017 |
Exhibit F | Supplemental GAAP to Non-GAAP Reconciliations on Guidance - Unaudited for the year ended December 31, 2018 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 2,084 | $ | 2,096 | $ | 6,256 | $ | 6,502 | |||||||
Cost of revenue | 1,364 | 1,386 | 4,192 | 4,397 | |||||||||||
Gross profit | 720 | 710 | 2,064 | 2,105 | |||||||||||
Selling, general and administrative expenses | 283 | 325 | 980 | 1,104 | |||||||||||
Asset impairments | 95 | — | 95 | — | |||||||||||
Operating income | 342 | 385 | 989 | 1,001 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (80 | ) | (84 | ) | (225 | ) | (267 | ) | |||||||
Other income (expense), net | (58 | ) | (182 | ) | (60 | ) | (123 | ) | |||||||
Total other income (expense), net | (138 | ) | (266 | ) | (285 | ) | (390 | ) | |||||||
Earnings before income taxes and equity method investment earnings (loss) | 204 | 119 | 704 | 611 | |||||||||||
Provision (benefit) for income taxes | 37 | 50 | 122 | 260 | |||||||||||
Equity method investment earnings (loss) | (4 | ) | — | (11 | ) | — | |||||||||
Net earnings | 163 | 69 | 571 | 351 | |||||||||||
Net (earnings) loss attributable to noncontrolling interest | (9 | ) | (10 | ) | (23 | ) | (24 | ) | |||||||
Net earnings attributable to FIS common stockholders | $ | 154 | $ | 59 | $ | 548 | $ | 327 | |||||||
Net earnings per share-basic attributable to FIS common stockholders | $ | 0.47 | $ | 0.18 | $ | 1.67 | $ | 0.99 | |||||||
Weighted average shares outstanding-basic | 328 | 331 | 329 | 330 | |||||||||||
Net earnings per share-diluted attributable to FIS common stockholders | $ | 0.47 | $ | 0.18 | $ | 1.65 | $ | 0.98 | |||||||
Weighted average shares outstanding-diluted | 331 | 336 | 333 | 335 |
Exhibit B | |||||||
September 30, | December 31, | ||||||
2018 | 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 632 | $ | 665 | |||
Settlement deposits | 563 | 677 | |||||
Trade receivables, net | 1,398 | 1,624 | |||||
Contract assets | 115 | 108 | |||||
Settlement receivables | 386 | 291 | |||||
Other receivables | 198 | 70 | |||||
Prepaid expenses and other current assets | 252 | 253 | |||||
Assets held for sale | 53 | — | |||||
Total current assets | 3,597 | 3,688 | |||||
Property and equipment, net | 546 | 610 | |||||
Goodwill | 13,585 | 13,730 | |||||
Intangible assets, net | 3,304 | 3,885 | |||||
Computer software, net | 1,710 | 1,728 | |||||
Deferred contract costs, net | 442 | 354 | |||||
Other noncurrent assets | 510 | 531 | |||||
Total assets | $ | 23,694 | $ | 24,526 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 1,007 | $ | 1,241 | |||
Settlement payables | 925 | 949 | |||||
Deferred revenue | 692 | 776 | |||||
Current portion of long-term debt | 40 | 1,045 | |||||
Liabilities held for sale | 28 | — | |||||
Total current liabilities | 2,692 | 4,011 | |||||
Long-term debt, excluding current portion | 8,998 | 7,718 | |||||
Deferred income taxes | 1,402 | 1,468 | |||||
Deferred revenue | 61 | 106 | |||||
Other long-term liabilities | 375 | 403 | |||||
Total liabilities | 13,528 | 13,706 | |||||
Equity: | |||||||
FIS stockholders’ equity: | |||||||
Preferred stock $0.01 par value | — | — | |||||
Common stock $0.01 par value | 4 | 4 | |||||
Additional paid in capital | 10,715 | 10,534 | |||||
Retained earnings | 4,339 | 4,109 | |||||
Accumulated other comprehensive earnings (loss) | (433 | ) | (332 | ) | |||
Treasury stock, at cost | (4,544 | ) | (3,604 | ) | |||
Total FIS stockholders’ equity | 10,081 | 10,711 | |||||
Noncontrolling interest | 85 | 109 | |||||
Total equity | 10,166 | 10,820 | |||||
Total liabilities and equity | $ | 23,694 | $ | 24,526 |
Exhibit C | |||||||
Nine months ended September 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 571 | $ | 351 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 1,060 | 1,015 | |||||
Amortization of debt issue costs | 13 | 15 | |||||
Asset impairments | 95 | — | |||||
Loss (gain) on sale of businesses | 48 | (55 | ) | ||||
Loss on extinguishment of debt | 1 | 192 | |||||
Stock-based compensation | 66 | 86 | |||||
Deferred income taxes | (65 | ) | (196 | ) | |||
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | |||||||
Trade receivables | 151 | (187 | ) | ||||
Contract assets | (10 | ) | 77 | ||||
Settlement activity | (6 | ) | (27 | ) | |||
Prepaid expenses and other assets | 31 | (20 | ) | ||||
Deferred contract costs | (180 | ) | (111 | ) | |||
Deferred revenue | (122 | ) | (51 | ) | |||
Accounts payable, accrued liabilities and other liabilities | (365 | ) | (10 | ) | |||
Net cash provided by operating activities | 1,288 | 1,079 | |||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | (115 | ) | (98 | ) | |||
Additions to computer software | (349 | ) | (350 | ) | |||
Proceeds from sale of businesses | 58 | 1,307 | |||||
Other investing activities, net | (26 | ) | (3 | ) | |||
Net cash provided by (used in) investing activities | (432 | ) | 856 | ||||
Cash flows from financing activities: | |||||||
Borrowings | 8,068 | 7,900 | |||||
Repayment of borrowings and capital lease obligations | (7,725 | ) | (9,594 | ) | |||
Debt issuance costs | (30 | ) | (13 | ) | |||
Proceeds from exercise of stock options | 273 | 168 | |||||
Treasury stock activity | (1,038 | ) | (46 | ) | |||
Dividends paid | (316 | ) | (289 | ) | |||
Distribution to Brazilian Venture partner | (23 | ) | (23 | ) | |||
Other financing activities, net | (3 | ) | (36 | ) | |||
Net cash provided by (used in) financing activities | (794 | ) | (1,933 | ) | |||
Effect of foreign currency exchange rate changes on cash | (56 | ) | 35 | ||||
Less net change in cash balances classified as assets held for sale | (39 | ) | — | ||||
Net increase (decrease) in cash and cash equivalents | (33 | ) | 37 | ||||
Cash and cash equivalents, at beginning of period | 665 | 683 | |||||
Cash and cash equivalents, at end of period | $ | 632 | $ | 720 |
Exhibit D | |||||||||||||||
Three months ended September 30, 2018 | |||||||||||||||
Integrated Financial Solutions | Global Financial Solutions | Corporate and Other | Consolidated | ||||||||||||
Revenue | $ | 1,090 | $ | 916 | $ | 78 | $ | 2,084 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Acquisition deferred revenue adjustment (1) | — | — | 1 | 1 | |||||||||||
Adjusted revenue | $ | 1,090 | $ | 916 | $ | 79 | $ | 2,085 |
Nine months ended September 30, 2018 | |||||||||||||||
Integrated Financial Solutions | Global Financial Solutions | Corporate and Other | Consolidated | ||||||||||||
Revenue | $ | 3,275 | $ | 2,742 | $ | 239 | $ | 6,256 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Acquisition deferred revenue adjustment (1) | — | — | 4 | 4 | |||||||||||
Adjusted revenue | $ | 3,275 | $ | 2,742 | $ | 243 | $ | 6,260 |
Three months ended September 30, 2017 | |||||||||||||||
Integrated Financial Solutions | Global Financial Solutions | Corporate and Other | Consolidated | ||||||||||||
Revenue | $ | 1,038 | $ | 975 | $ | 83 | $ | 2,096 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Acquisition deferred revenue adjustment (1) | — | — | 2 | 2 | |||||||||||
Adjusted revenue | $ | 1,038 | $ | 975 | $ | 85 | $ | 2,098 |
Nine months ended September 30, 2017 | |||||||||||||||
Integrated Financial Solutions | Global Financial Solutions | Corporate and Other | Consolidated | ||||||||||||
Revenue | $ | 3,162 | $ | 3,064 | $ | 276 | $ | 6,502 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Acquisition deferred revenue adjustment (1) | — | — | 6 | 6 | |||||||||||
Adjusted revenue | $ | 3,162 | $ | 3,064 | $ | 282 | $ | 6,508 |
(1) | See note (4) to Exhibit E. |
Exhibit D (continued) | ||||||||||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||||
Constant | ||||||||||||||||||||||||||
Adjusted | Currency | Adjusted | In Year | Adjusted | Organic | |||||||||||||||||||||
Revenue | FX | Revenue | Revenue | Adjustments (1) | Base | Growth | ||||||||||||||||||||
Integrated Financial Solutions | $ | 1,090 | $ | — | $ | 1,090 | $ | 1,038 | $ | (5 | ) | $ | 1,033 | 5.6 | % | |||||||||||
Global Financial Solutions | 916 | 30 | 946 | 975 | (52 | ) | 923 | 2.5 | % | |||||||||||||||||
Corporate and Other | 79 | — | 79 | 85 | (7 | ) | 78 | 1.2 | % | |||||||||||||||||
Total | $ | 2,085 | $ | 30 | $ | 2,115 | $ | 2,098 | $ | (64 | ) | $ | 2,034 | 4.0 | % |
Nine months ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||||
Constant | ||||||||||||||||||||||||||
Adjusted | Currency | Adjusted | In Year | Adjusted | Organic | |||||||||||||||||||||
Revenue | FX | Revenue | Revenue | Adjustments (1) | Base | Growth | ||||||||||||||||||||
Integrated Financial Solutions | $ | 3,275 | $ | (2 | ) | $ | 3,273 | $ | 3,162 | $ | (25 | ) | $ | 3,137 | 4.3 | % | ||||||||||
Global Financial Solutions | 2,742 | 11 | 2,753 | 3,064 | (353 | ) | 2,711 | 1.6 | % | |||||||||||||||||
Corporate and Other | 243 | — | 243 | 282 | (25 | ) | 257 | (5.7 | )% | |||||||||||||||||
Total | $ | 6,260 | $ | 9 | $ | 6,269 | $ | 6,508 | $ | (403 | ) | $ | 6,105 | 2.7 | % |
(1) | In year adjustments primarily include removing revenue from the Public Sector and Education ("PS&E") businesses, Capco consulting business and risk and compliance consulting business, Kingstar and Certegy Check Services business unit divestitures, as well as removing revenue from other businesses divested by FIS. |
Exhibit D (continued) | |||||||
Three months ended | Nine months ended | ||||||
September 30, 2018 | September 30, 2018 | ||||||
Net cash provided by operating activities | $ | 464 | $ | 1,288 | |||
Non-GAAP adjustments: | |||||||
Acquisition, integration and other payments (1) | 16 | 76 | |||||
Tax payments on divestitures (2) | 5 | 24 | |||||
Debt financing activities (3) | — | 1 | |||||
Settlement activity | 19 | 6 | |||||
Adjusted cash flows from operations | 504 | 1,395 | |||||
Capital expenditures | (148 | ) | (464 | ) | |||
Free cash flow | $ | 356 | $ | 931 |
Three months ended | Nine months ended | ||||||
September 30, 2017 | September 30, 2017 | ||||||
Net cash provided by operating activities | $ | 534 | $ | 1,079 | |||
Non-GAAP adjustments: | |||||||
Acquisition, integration and other payments (1) | 11 | 74 | |||||
Tax payments on divestitures (2) | — | 312 | |||||
Settlement activity | 8 | 27 | |||||
Adjusted cash flows from operations | 553 | 1,492 | |||||
Capital expenditures | (151 | ) | (448 | ) | |||
Free cash flow | $ | 402 | $ | 1,044 |
(1) | Adjusted cash flows from operations and free cash flow for the three and nine months ended September 30, 2018 and 2017 exclude cash payments for certain acquisition, integration and other costs, net of related tax impact. The related tax impact totaled $4 million and $9 million for the three months and $19 million and $54 million for the nine months ended September 30, 2018 and 2017, respectively. |
(2) | Adjusted cash flows from operations and free cash flow exclude tax payments made in 2018 related to the sale of Capco consulting business and risk and compliance consulting business recognized during 2017 and other divestitures recognized during the first nine months of 2018. Adjusted cash flows from operations and free cash flow for the nine months ended September 30, 2017 exclude the second quarter tax payment related to the gain on the sale of PS&E and other divestitures, which were recognized during the first and second quarters of 2017. |
(3) | Adjusted cash flows from operations and free cash flow for the nine months ended September 30, 2018 exclude the $1 million one-time bond premium payment on the redemption of our senior notes due October 2018. |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net earnings attributable to FIS common stockholders | $ | 154 | $ | 59 | $ | 548 | $ | 327 | ||||||||
Provision (benefit) for income taxes | 37 | 50 | 122 | 260 | ||||||||||||
Interest expense, net | 80 | 84 | 225 | 267 | ||||||||||||
Other, net | 71 | 192 | 94 | 147 | ||||||||||||
Operating income, as reported | 342 | 385 | 989 | 1,001 | ||||||||||||
FIS depreciation and amortization, excluding purchase accounting amortization | 173 | 159 | 511 | 471 | ||||||||||||
FIS non-GAAP adjustments: | ||||||||||||||||
Purchase accounting amortization (1) | 181 | 183 | 549 | 544 | ||||||||||||
Acquisition, integration and other costs (2) | 16 | 22 | 122 | 141 | ||||||||||||
Asset impairments (3) | 95 | — | 95 | — | ||||||||||||
Acquisition deferred revenue adjustment (4) | 1 | 2 | 4 | 6 | ||||||||||||
Adjusted EBITDA | $ | 808 | $ | 751 | $ | 2,270 | $ | 2,163 |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Earnings before income taxes and equity method investment earnings (loss) | $ | 204 | $ | 119 | $ | 704 | $ | 611 | ||||||||
Provision (benefit) for income taxes | 37 | 50 | 122 | 260 | ||||||||||||
Equity method investment earnings (loss) | (4 | ) | — | (11 | ) | — | ||||||||||
Net (earnings) loss attributable to noncontrolling interest | (9 | ) | (10 | ) | (23 | ) | (24 | ) | ||||||||
Net earnings attributable to FIS common stockholders | 154 | 59 | 548 | 327 | ||||||||||||
FIS non-GAAP adjustments: | ||||||||||||||||
Purchase accounting amortization (1) | 181 | 183 | 549 | 544 | ||||||||||||
Acquisition, integration and other costs (2) | 16 | 22 | 122 | 141 | ||||||||||||
Asset impairments (3) | 95 | — | 95 | — | ||||||||||||
Acquisition deferred revenue adjustment (4) | 1 | 2 | 4 | 6 | ||||||||||||
Loss (gain) on businesses and investments (5) | 54 | 33 | 53 | (55 | ) | |||||||||||
Debt financing activities (6) | — | 167 | 1 | 196 | ||||||||||||
Equity method investment earnings (loss) (7) | 4 | — | 11 | — | ||||||||||||
Provision for income taxes on non-GAAP adjustments | (67 | ) | (73 | ) | (172 | ) | (143 | ) | ||||||||
Total non-GAAP adjustments | 284 | 334 | 663 | 689 | ||||||||||||
Adjusted net earnings, net of tax | $ | 438 | $ | 393 | $ | 1,211 | $ | 1,016 | ||||||||
Net earnings per share - diluted attributable to FIS common stockholders | $ | 0.47 | $ | 0.18 | $ | 1.65 | $ | 0.98 | ||||||||
FIS non-GAAP adjustments: | ||||||||||||||||
Purchase accounting amortization (1) | 0.55 | 0.54 | 1.65 | 1.62 | ||||||||||||
Acquisition, integration and other costs (2) | 0.05 | 0.07 | 0.37 | 0.42 | ||||||||||||
Asset impairments (3) | 0.29 | — | 0.29 | — | ||||||||||||
Acquisition deferred revenue adjustment (4) | — | 0.01 | 0.01 | 0.02 | ||||||||||||
Loss (gain) on businesses and investments (5) | 0.16 | 0.10 | 0.16 | (0.16 | ) | |||||||||||
Debt financing activities (6) | — | 0.50 | — | 0.59 | ||||||||||||
Equity method investment earnings (loss) (7) | 0.01 | — | 0.03 | — | ||||||||||||
Provision for income taxes on non-GAAP adjustments | (0.20 | ) | (0.22 | ) | (0.52 | ) | (0.43 | ) | ||||||||
Adjusted net earnings per share - diluted attributable to FIS common stockholders | $ | 1.33 | $ | 1.17 | $ | 3.64 | $ | 3.04 | ||||||||
Weighted average shares outstanding-diluted | 331 | 336 | 333 | 335 |
(1) | This item represents purchase price amortization expense on all intangible assets acquired through various Company acquisitions, including customer relationships, contract value, trademarks and tradenames, and non-compete agreements. Beginning with the 2015 acquisition of SunGard, this column also includes the incremental amortization associated with purchase price adjustments to technology assets acquired. |
(2) | This item represents acquisition and integration costs primarily related to the SunGard acquisition, and certain other costs including those associated with data center consolidation activities of $9 million in the third quarter of 2018. |
(3) | This item represents asset impairments for assets being held for sale that will be transferred to Banco Bradesco upon closing of the agreement to unwind the Brazilian Venture as well as impairments of the goodwill and contract intangible asset associated with the Brazilian Venture. |
(4) | This item represents the impact of the purchase accounting adjustment to reduce SunGard's deferred revenues to estimated fair value, determined as fulfillment cost plus a normal profit margin. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by SunGard under GAAP if the acquisition had not occurred, but was not recognized due to GAAP purchase accounting requirements. |
(5) | This item represents the pre-tax loss on businesses and investments during the first, second and third quarters of 2018, the pre-tax gain on the sale of PS&E businesses and other divestitures during the first quarter of 2017 and the pre-tax loss on the sale of the Capco consulting business and risk and compliance consulting business ("Capco") during the third quarter of 2017. |
(6) | This item represents the write-off of certain previously capitalized debt issuance costs and the payment of a bond premium associated with the early redemption of our senior notes due October 2018 during June 2018. For the third quarter of 2017, this item represents a pre-tax charge upon extinguishment of approximately $167 million in tender premiums and the write-off of previously capitalized debt issuance costs on the repurchase of approximately $2,000 million in aggregate principal of debt securities. For the nine months of 2017, this item also includes the write-off of certain previously capitalized debt issuance costs and the payment of an $18 million bond premium associated with the early redemption of our senior notes due March 2022 during March 2017 and other costs related to debt refinancing. |
(7) | This item represents our equity method investment earnings or loss. This is predominantly due to our equity ownership interest in Cardinal Holdings, LP and represents our portion of non-cash earnings or loss for the period presented. |
Year ended | |||
December 31, 2018 | |||
Consolidated GAAP revenue increase/(decrease) | (2.5 | )% | |
Estimated adjustments (1) | 5.5 | % | |
Consolidated organic revenue increase/(decrease) | 3.0 | % | |
Year ended | |||
December 31, 2018 | |||
IFS GAAP revenue increase/(decrease) | 3.5 | % | |
Estimated adjustments (1) | 0.5 | % | |
IFS organic revenue increase/(decrease) | 4.0 | % | |
Year ended | |||
December 31, 2018 | |||
GFS GAAP revenue increase/(decrease) | (7.5 | )% | |
Estimated adjustments (1) | 10.5 | % | |
GFS organic revenue increase/(decrease) | 3.0 | % |
(1) | Estimated adjustments for the full-year 2017 needed to create a comparable base year for organic revenue increase/decrease include the addition of deferred revenue adjustments, and the subtraction of pre-divestiture revenue, in the applicable periods, associated with the divestitures of PS&E, Capco consulting business and risk and compliance consulting business, Kingstar and Certegy Check Services business unit. Estimated adjustments for the full-year 2018 include the addition of deferred revenue adjustments and either the addition or subtraction of revenue associated with foreign currency translation. The effect of the foregoing estimated adjustments for 2018 are shown on a combined basis. |
Year ended | ||||||||
December 31, 2018 | ||||||||
Low | High | |||||||
Net earnings per share - diluted attributable to FIS common stockholders | $ | 2.69 | $ | 2.76 | ||||
Estimated adjustments (1) | 2.51 | 2.48 | ||||||
Adjusted net earnings per share - diluted attributable to FIS common stockholders | $ | 5.20 | $ | 5.24 |
(1) | Estimated adjustments for the full-year 2018 include purchase accounting amortization, acquisition, integration and other costs, acquisition deferred revenue adjustments, equity method investment earnings (loss), debt financing activities, asset impairments, loss (gain) on businesses and investments and other items, net of tax impact. |
Year ended | ||
December 31, 2018 | ||
Net earnings margin attributable to FIS common stockholders | 11.0 | % |
Estimated adjustments (1) | 26.0 | % |
Adjusted EBITDA margin | 37.0 | % |
(1) | Estimated adjustments for the full-year 2018 include purchase accounting amortization, acquisition, integration and other costs, acquisition deferred revenue adjustments, asset impairments and other items. |