Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Fidelity National Information Services, Inc. | a8-ktopic606recast.htm |
Fidelity National Information Services, Inc.
Supplemental Financial Information
March 6, 2018
Exhibit 99.1
Exhibit A | Supplemental GAAP to Non-GAAP Reconciliations - Unaudited for the three months ended March 31, June 30, September 30, and December 31, 2017 and the years ended December 31, 2017, 2016 and 2015. |
Exhibit B | Recast Condensed Consolidated Statements of Earnings - Unaudited for the three months ended March 31, June 30, September 30, and December 31, 2017 and the years ended December 31, 2017, 2016 and 2015. |
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED
(In millions)
Exhibit A
Three months ended | Years ended | |||||||||||||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | December 31, | ||||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2017 | 2016 | 2015 | ||||||||||||||||||||||
Per recast: | ||||||||||||||||||||||||||||
Net earnings from continuing operations attributable to FIS | $ | 129 | $ | 139 | $ | 59 | $ | 934 | $ | 1,261 | $ | 524 | $ | 631 | ||||||||||||||
Provision (benefit) for income taxes | 74 | 136 | 50 | (581 | ) | (321 | ) | 291 | 375 | |||||||||||||||||||
Equity method investment earnings | — | — | — | 2 | 3 | — | — | |||||||||||||||||||||
Interest expense, net | 93 | 91 | 84 | 70 | 337 | 383 | 183 | |||||||||||||||||||||
Other (gain/income) loss/expense, net | (50 | ) | 4 | 192 | 6 | 152 | 31 | (102 | ) | |||||||||||||||||||
Operating income | 246 | 370 | 385 | 431 | 1,432 | 1,229 | 1,087 | |||||||||||||||||||||
FIS depreciation and amortization from continuing operations, excluding purchase accounting amortization | 152 | 160 | 159 | 164 | 636 | 568 | 418 | |||||||||||||||||||||
FIS non-GAAP adjustments: | ||||||||||||||||||||||||||||
Purchase accounting amortization (1) | 180 | 180 | 183 | 187 | 731 | 585 | 238 | |||||||||||||||||||||
Acquisition, integration and severance (2) | 80 | 39 | 22 | 38 | 178 | 281 | 171 | |||||||||||||||||||||
Acquisition deferred revenue adjustment (3) | 3 | 2 | 2 | — | 7 | 192 | 48 | |||||||||||||||||||||
Global restructure (4) | — | — | — | — | — | — | 45 | |||||||||||||||||||||
Adjusted EBITDA | $ | 661 | $ | 751 | $ | 751 | $ | 820 | $ | 2,984 | $ | 2,855 | $ | 2,007 | ||||||||||||||
Historical SunGard operating income, as adjusted (5) | 488 | |||||||||||||||||||||||||||
Historical SunGard depreciation and amortization from continuing operations, as adjusted (5) | 132 | |||||||||||||||||||||||||||
Adjusted combined EBITDA | $ | 2,627 | ||||||||||||||||||||||||||
Amounts in table may not sum or calculate due to rounding.
(1)See note (1) to Notes to Exhibit A.
(2)See note (2) to Notes to Exhibit A.
(3)See note (3) to Notes to Exhibit A.
(4)See note (6) to Notes to Exhibit A.
(5)See note (8) to Notes to Exhibit A.
1
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED
(In millions)
Exhibit A (continued)
Three months ended | Years ended | |||||||||||||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | December 31, | ||||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2017 | 2016 | 2015 | ||||||||||||||||||||||
Per Recast: | ||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes and equity method investment earnings | $ | 209 | $ | 283 | $ | 119 | $ | 365 | $ | 976 | $ | 837 | $ | 1,025 | ||||||||||||||
Provision (benefit) for income taxes | 74 | 136 | 50 | (581 | ) | (321 | ) | 291 | 375 | |||||||||||||||||||
Equity method investment earnings | — | — | — | (2 | ) | (3 | ) | — | — | |||||||||||||||||||
Net earnings attributable to noncontrolling interest | (6 | ) | (8 | ) | (10 | ) | (10 | ) | (33 | ) | (22 | ) | (19 | ) | ||||||||||||||
Net earnings from continuing operations attributable to FIS | 129 | 139 | 59 | 934 | 1,261 | 524 | 631 | |||||||||||||||||||||
FIS non-GAAP adjustments: | ||||||||||||||||||||||||||||
Purchase accounting amortization (1) | 180 | 180 | 183 | 187 | 731 | 585 | 238 | |||||||||||||||||||||
Acquisition, integration and severance (2) | 80 | 39 | 22 | 39 | 180 | 281 | 191 | |||||||||||||||||||||
Acquisition deferred revenue adjustment (3) | 3 | 2 | 2 | — | 7 | 192 | 48 | |||||||||||||||||||||
Loss (gain) on sale of businesses and investments (4) | (85 | ) | (3 | ) | 33 | (7 | ) | (62 | ) | — | (139 | ) | ||||||||||||||||
Debt financing activities (5) | 25 | 4 | 167 | 4 | 199 | 4 | — | |||||||||||||||||||||
Global restructure (6) | — | — | — | — | — | — | 45 | |||||||||||||||||||||
Tax reform adjustments (7) | — | — | — | (760 | ) | (760 | ) | — | — | |||||||||||||||||||
Provision for income taxes on non-GAAP adjustments | (58 | ) | (13 | ) | (73 | ) | 22 | (123 | ) | (371 | ) | (92 | ) | |||||||||||||||
Total non-GAAP adjustments | 145 | 209 | 334 | (515 | ) | 172 | 691 | 291 | ||||||||||||||||||||
Adjusted net earnings (loss) from continuing operations, net of tax | $ | 274 | $ | 348 | $ | 393 | $ | 419 | $ | 1,433 | $ | 1,215 | $ | 922 | ||||||||||||||
Net earnings per share - diluted from continuing operations attributable to FIS common stockholders | $ | 0.39 | $ | 0.42 | $ | 0.18 | $ | 2.77 | $ | 3.75 | $ | 1.59 | $ | 2.18 | ||||||||||||||
FIS non-GAAP adjustments: | ||||||||||||||||||||||||||||
Purchase accounting amortization (1) | 0.54 | 0.54 | 0.54 | 0.55 | 2.18 | 1.77 | 0.82 | |||||||||||||||||||||
Acquisition, integration and severance (2) | 0.24 | 0.12 | 0.07 | 0.12 | 0.54 | 0.85 | 0.66 | |||||||||||||||||||||
Acquisition deferred revenue adjustment (3) | 0.01 | 0.01 | 0.01 | — | 0.02 | 0.58 | 0.17 | |||||||||||||||||||||
Loss (gain) on sale of businesses (4) | (0.26 | ) | (0.01 | ) | 0.10 | (0.02 | ) | (0.18 | ) | — | (0.48 | ) | ||||||||||||||||
Debt financing activities (5) | 0.08 | 0.01 | 0.50 | 0.01 | 0.59 | 0.01 | — | |||||||||||||||||||||
Global restructure (6) | — | — | — | — | — | — | 0.16 | |||||||||||||||||||||
Tax reform adjustments (7) | — | — | — | (2.26 | ) | (2.26 | ) | — | — | |||||||||||||||||||
Provision for income taxes on non-GAAP adjustments | (0.17 | ) | (0.04 | ) | (0.22 | ) | 0.07 | (0.37 | ) | (1.12 | ) | (0.32 | ) | |||||||||||||||
Adjusted net earnings (loss) per share - diluted from continuing operations attributable to FIS common stockholders | $ | 0.82 | $ | 1.04 | $ | 1.17 | $ | 1.24 | $ | 4.27 | $ | 3.68 | $ | 3.19 | ||||||||||||||
Weighted average shares outstanding-diluted | 333 | 334 | 336 | 337 | 336 | 330 | 289 | |||||||||||||||||||||
Amounts in table may not sum or calculate due to rounding.
(1)See note (1) to Notes to Exhibit A.
(2)See note (2) to Notes to Exhibit A.
(3)See note (3) to Notes to Exhibit A.
(4)See note (4) to Notes to Exhibit A.
(5)See note (5) to Notes to Exhibit A.
(6)See note (6) to Notes to Exhibit A.
(7)See note (7) to Notes to Exhibit A.
2
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED
(In millions)
Exhibit A (continued)
Three months ended | Years ended | |||||||||||||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | December 31, | ||||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2017 | 2016 | 2015 | ||||||||||||||||||||||
Processing and services revenue | $ | 2,255 | $ | 2,341 | $ | 2,198 | $ | 2,329 | $ | 9,123 | $ | 9,241 | $ | 6,596 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Acquisition deferred revenue adjustment (2) | 3 | 2 | 2 | — | 7 | 192 | 48 | |||||||||||||||||||||
Adjusted revenue | 2,258 | 2,343 | 2,200 | 2,329 | 9,130 | 9,433 | 6,644 | |||||||||||||||||||||
Topic 606 adjustments (1) | (107 | ) | (83 | ) | (102 | ) | (163 | ) | (455 | ) | (410 | ) | (336 | ) | ||||||||||||||
Recast adjusted revenue | $ | 2,151 | $ | 2,260 | $ | 2,098 | $ | 2,166 | $ | 8,675 | $ | 9,023 | 6,308 | |||||||||||||||
Historical SunGard revenue, as adjusted (3) | 2,489 | |||||||||||||||||||||||||||
Adjusted combined revenue | $ | 8,797 | ||||||||||||||||||||||||||
Amounts in table may not sum or calculate due to rounding.
(1) | These adjustments represent the impact of the retrospective application of ASC 606. |
(2) | See note (3) to Notes to Exhibit A. |
(3) | See note (8) to Notes to Exhibit A. |
3
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECAST CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
Exhibit B
As reported | GAAP Recast | ||||||||||
Three months ended | Topic | Three months ended | |||||||||
March 31, | 606 | March 31, | |||||||||
2017 | Adjustments (1) | 2017 | |||||||||
Processing and services revenues | $ | 2,255 | $ | (107 | ) | $ | 2,148 | ||||
Cost of revenues | 1,582 | (91 | ) | 1,491 | |||||||
Gross profit | 673 | (16 | ) | 657 | |||||||
Selling, general and administrative expenses | 413 | (2 | ) | 411 | |||||||
Operating income | 260 | (14 | ) | 246 | |||||||
Other income (expense): | |||||||||||
Interest expense, net | (93 | ) | — | (93 | ) | ||||||
Other income (expense), net | 56 | — | 56 | ||||||||
Total other income (expense), net | (37 | ) | — | (37 | ) | ||||||
Earnings from continuing operations before income taxes and equity method investment earnings | 223 | (14 | ) | 209 | |||||||
Provision (benefit) for income taxes | 79 | (5 | ) | 74 | |||||||
Equity method investment earnings | — | — | — | ||||||||
Earnings from continuing operations, net of tax | 144 | (9 | ) | 135 | |||||||
Earnings (loss) from discontinued operations, net of tax | — | — | — | ||||||||
Net earnings | 144 | (9 | ) | 135 | |||||||
Net earnings attributable to noncontrolling interest | (6 | ) | — | (6 | ) | ||||||
Net earnings attributable to FIS common stockholders | $ | 138 | $ | (9 | ) | $ | 129 | ||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 0.42 | $ | (0.03 | ) | $ | 0.39 | ||||
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-basic attributable to FIS common stockholders | $ | 0.42 | $ | (0.03 | ) | $ | 0.39 | ||||
Weighted average shares outstanding-basic | 328 | 328 | 328 | ||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 0.41 | $ | (0.03 | ) | $ | 0.39 | ||||
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-diluted attributable to FIS common stockholders | $ | 0.41 | $ | (0.03 | ) | $ | 0.39 | ||||
Weighted average shares outstanding-diluted | 333 | 333 | 333 | ||||||||
Amounts attributable to FIS common stockholders: | |||||||||||
Net earnings from continuing operations | $ | 138 | $ | (9 | ) | $ | 129 | ||||
Net earnings (loss) from discontinued operations | — | — | — | ||||||||
Net earnings attributable to FIS common stockholders | $ | 138 | $ | (9 | ) | $ | 129 | ||||
Amounts in table may not sum or calculate due to rounding.
(1) These adjustments represent the impact of the retrospective application of ASC 606.
4
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECAST CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
Exhibit B (continued)
As reported | GAAP Recast | ||||||||||
Three months ended | Topic | Three months ended | |||||||||
June 30, | 606 | June 30, | |||||||||
2017 | Adjustments (1) | 2017 | |||||||||
Processing and services revenues | $ | 2,341 | $ | (83 | ) | $ | 2,258 | ||||
Cost of revenues | 1,612 | (92 | ) | 1,520 | |||||||
Gross profit | 729 | 9 | 738 | ||||||||
Selling, general and administrative expenses | 370 | (2 | ) | 368 | |||||||
Operating income | 359 | 11 | 370 | ||||||||
Other income (expense): | |||||||||||
Interest expense, net | (91 | ) | — | (91 | ) | ||||||
Other income (expense), net | 4 | — | 4 | ||||||||
Total other income (expense), net | (87 | ) | — | (87 | ) | ||||||
Earnings from continuing operations before income taxes and equity method investment earnings | 272 | 11 | 283 | ||||||||
Provision (benefit) for income taxes | 132 | 4 | 136 | ||||||||
Equity method investment earnings | — | — | — | ||||||||
Earnings from continuing operations, net of tax | 140 | 7 | 147 | ||||||||
Earnings (loss) from discontinued operations, net of tax | — | — | — | ||||||||
Net earnings | 140 | 7 | 147 | ||||||||
Net earnings attributable to noncontrolling interest | (8 | ) | — | (8 | ) | ||||||
Net earnings attributable to FIS common stockholders | $ | 132 | $ | 7 | $ | 139 | |||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 0.40 | $ | 0.02 | $ | 0.42 | |||||
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-basic attributable to FIS common stockholders | $ | 0.40 | $ | 0.02 | $ | 0.42 | |||||
Weighted average shares outstanding-basic | 330 | 330 | 330 | ||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 0.40 | $ | 0.02 | $ | 0.42 | |||||
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-diluted attributable to FIS common stockholders | $ | 0.40 | $ | 0.02 | $ | 0.42 | |||||
Weighted average shares outstanding-diluted | 334 | 334 | 334 | ||||||||
Amounts attributable to FIS common stockholders: | |||||||||||
Net earnings from continuing operations | $ | 132 | $ | 7 | $ | 139 | |||||
Net earnings (loss) from discontinued operations | — | — | — | ||||||||
Net earnings attributable to FIS common stockholders | $ | 132 | $ | 7 | $ | 139 | |||||
Amounts in table may not sum or calculate due to rounding.
(1) These adjustments represent the impact of the retrospective application of ASC 606.
5
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECAST CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
Exhibit B (continued)
As reported | GAAP Recast | ||||||||||
Three months ended | Topic | Three months ended | |||||||||
September 30, | 606 | September 30, | |||||||||
2017 | Adjustments (1) | 2017 | |||||||||
Processing and services revenues | $ | 2,198 | $ | (102 | ) | $ | 2,096 | ||||
Cost of revenues | 1,483 | (97 | ) | 1,386 | |||||||
Gross profit | 715 | (5 | ) | 710 | |||||||
Selling, general and administrative expenses | 327 | (2 | ) | 325 | |||||||
Operating income | 388 | (3 | ) | 385 | |||||||
Other income (expense): | |||||||||||
Interest expense, net | (84 | ) | — | (84 | ) | ||||||
Other income (expense), net | (182 | ) | — | (182 | ) | ||||||
Total other income (expense), net | (266 | ) | — | (266 | ) | ||||||
Earnings from continuing operations before income taxes and equity method investment earnings | 122 | (3 | ) | 119 | |||||||
Provision (benefit) for income taxes | 51 | (1 | ) | 50 | |||||||
Equity method investment earnings | — | — | — | ||||||||
Earnings from continuing operations, net of tax | 71 | (2 | ) | 69 | |||||||
Earnings (loss) from discontinued operations, net of tax | — | — | — | ||||||||
Net earnings | 71 | (2 | ) | 69 | |||||||
Net earnings attributable to noncontrolling interest | (10 | ) | — | (10 | ) | ||||||
Net earnings attributable to FIS common stockholders | $ | 61 | $ | (2 | ) | $ | 59 | ||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 0.18 | $ | (0.01 | ) | $ | 0.18 | ||||
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-basic attributable to FIS common stockholders | $ | 0.18 | $ | (0.01 | ) | $ | 0.18 | ||||
Weighted average shares outstanding-basic | 331 | 331 | 331 | ||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 0.18 | $ | (0.01 | ) | $ | 0.18 | ||||
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-diluted attributable to FIS common stockholders | $ | 0.18 | $ | (0.01 | ) | $ | 0.18 | ||||
Weighted average shares outstanding-diluted | 336 | 336 | 336 | ||||||||
Amounts attributable to FIS common stockholders: | |||||||||||
Net earnings from continuing operations | $ | 61 | $ | (2 | ) | $ | 59 | ||||
Net earnings (loss) from discontinued operations | — | — | — | ||||||||
Net earnings attributable to FIS common stockholders | $ | 61 | $ | (2 | ) | $ | 59 | ||||
Amounts in table may not sum or calculate due to rounding.
(1) These adjustments represent the impact of the retrospective application of ASC 606.
6
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECAST CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
Exhibit B (continued)
As reported | GAAP Recast | ||||||||||
Three months ended | Topic | Three months ended | |||||||||
December 31, | 606 | December 31, | |||||||||
2017 | Adjustments (1) | 2017 | |||||||||
Processing and services revenues | $ | 2,329 | $ | (163 | ) | $ | 2,166 | ||||
Cost of revenues | 1,504 | (106 | ) | 1,398 | |||||||
Gross profit | 825 | (57 | ) | 768 | |||||||
Selling, general and administrative expenses | 340 | (3 | ) | 337 | |||||||
Operating income | 485 | (54 | ) | 431 | |||||||
Other income (expense): | |||||||||||
Interest expense, net | (70 | ) | — | (70 | ) | ||||||
Other income (expense), net | 4 | — | 4 | ||||||||
Total other income (expense), net | (66 | ) | — | (66 | ) | ||||||
Earnings from continuing operations before income taxes and equity method investment earnings | 419 | (54 | ) | 365 | |||||||
Provision (benefit) for income taxes | (581 | ) | — | (581 | ) | ||||||
Equity method investment earnings | (2 | ) | — | (2 | ) | ||||||
Earnings from continuing operations, net of tax | 998 | (54 | ) | 944 | |||||||
Earnings (loss) from discontinued operations, net of tax | — | — | — | ||||||||
Net earnings | 998 | (54 | ) | 944 | |||||||
Net earnings attributable to noncontrolling interest | (10 | ) | — | (10 | ) | ||||||
Net earnings attributable to FIS common stockholders | $ | 988 | $ | (54 | ) | $ | 934 | ||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 2.98 | $ | (0.16 | ) | $ | 2.81 | ||||
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-basic attributable to FIS common stockholders | $ | 2.98 | $ | (0.16 | ) | $ | 2.81 | ||||
Weighted average shares outstanding-basic | 332 | 332 | 332 | ||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 2.93 | $ | (0.16 | ) | $ | 2.77 | ||||
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-diluted attributable to FIS common stockholders | $ | 2.93 | $ | (0.16 | ) | $ | 2.77 | ||||
Weighted average shares outstanding-diluted | 337 | 337 | 337 | ||||||||
Amounts attributable to FIS common stockholders: | |||||||||||
Net earnings from continuing operations | $ | 988 | $ | (54 | ) | $ | 934 | ||||
Net earnings (loss) from discontinued operations | — | — | — | ||||||||
Net earnings attributable to FIS common stockholders | $ | 988 | $ | (54 | ) | $ | 934 | ||||
Amounts in table may not sum or calculate due to rounding.
(1) These adjustments represent the impact of the retrospective application of ASC 606.
7
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECAST CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
Exhibit B (continued)
As reported | GAAP Recast | ||||||||||
Year ended | Topic | Year ended | |||||||||
December 31, | 606 | December 31, | |||||||||
2017 | Adjustments (1) | 2017 | |||||||||
Processing and services revenues | $ | 9,123 | $ | (455 | ) | $ | 8,668 | ||||
Cost of revenues | 6,181 | (387 | ) | 5,794 | |||||||
Gross profit | 2,942 | (68 | ) | 2,874 | |||||||
Selling, general and administrative expenses | 1,450 | (8 | ) | 1,442 | |||||||
Operating income | 1,492 | (60 | ) | 1,432 | |||||||
Other income (expense): | |||||||||||
Interest expense, net | (337 | ) | — | (337 | ) | ||||||
Other income (expense), net | (119 | ) | — | (119 | ) | ||||||
Total other income (expense), net | (456 | ) | — | (456 | ) | ||||||
Earnings from continuing operations before income taxes and equity method investment earnings | 1,036 | (60 | ) | 976 | |||||||
Provision (benefit) for income taxes | (319 | ) | (2 | ) | (321 | ) | |||||
Equity method investment earnings | (3 | ) | — | (3 | ) | ||||||
Earnings from continuing operations, net of tax | 1,352 | (58 | ) | 1,294 | |||||||
Earnings (loss) from discontinued operations, net of tax | — | — | — | ||||||||
Net earnings | 1,352 | (58 | ) | 1,294 | |||||||
Net earnings attributable to noncontrolling interest | (33 | ) | — | (33 | ) | ||||||
Net earnings attributable to FIS common stockholders | $ | 1,319 | $ | (58 | ) | $ | 1,261 | ||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 4.00 | $ | (0.18 | ) | $ | 3.82 | ||||
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-basic attributable to FIS common stockholders | $ | 4.00 | $ | (0.18 | ) | $ | 3.82 | ||||
Weighted average shares outstanding-basic | 330 | 330 | 330 | ||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 3.93 | $ | (0.17 | ) | $ | 3.75 | ||||
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-diluted attributable to FIS common stockholders | $ | 3.93 | $ | (0.17 | ) | $ | 3.75 | ||||
Weighted average shares outstanding-diluted | 336 | 336 | 336 | ||||||||
Amounts attributable to FIS common stockholders: | |||||||||||
Net earnings from continuing operations | $ | 1,319 | $ | (58 | ) | $ | 1,261 | ||||
Net earnings (loss) from discontinued operations | — | — | — | ||||||||
Net earnings attributable to FIS common stockholders | $ | 1,319 | $ | (58 | ) | $ | 1,261 | ||||
Amounts in table may not sum or calculate due to rounding.
(1) These adjustments represent the impact of the retrospective application of ASC 606.
8
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECAST CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
Exhibit B (continued)
As reported | GAAP Recast | ||||||||||
Year ended | Topic | Year ended | |||||||||
December 31, | 606 | December 31, | |||||||||
2016 | Adjustments (1) | 2016 | |||||||||
Processing and services revenues | $ | 9,241 | $ | (410 | ) | $ | 8,831 | ||||
Cost of revenues | 6,233 | (338 | ) | 5,895 | |||||||
Gross profit | 3,008 | (72 | ) | 2,936 | |||||||
Selling, general and administrative expenses | 1,710 | (3 | ) | 1,707 | |||||||
Operating income | 1,298 | (69 | ) | 1,229 | |||||||
Other income (expense): | |||||||||||
Interest expense, net | (383 | ) | — | (383 | ) | ||||||
Other income (expense), net | (9 | ) | — | (9 | ) | ||||||
Total other income (expense), net | (392 | ) | — | (392 | ) | ||||||
Earnings from continuing operations before income taxes and equity method investment earnings | 906 | (69 | ) | 837 | |||||||
Provision (benefit) for income taxes | 317 | (26 | ) | 291 | |||||||
Equity method investment earnings | — | — | — | ||||||||
Earnings from continuing operations, net of tax | 589 | (43 | ) | 546 | |||||||
Earnings (loss) from discontinued operations, net of tax | 1 | — | 1 | ||||||||
Net earnings | 590 | (43 | ) | 547 | |||||||
Net earnings attributable to noncontrolling interest | (22 | ) | — | (22 | ) | ||||||
Net earnings attributable to FIS common stockholders | $ | 568 | $ | (43 | ) | $ | 525 | ||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 1.74 | $ | (0.13 | ) | $ | 1.61 | ||||
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-basic attributable to FIS common stockholders | $ | 1.74 | $ | (0.13 | ) | $ | 1.61 | ||||
Weighted average shares outstanding-basic | 326 | 326 | 326 | ||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 1.72 | $ | (0.13 | ) | $ | 1.59 | ||||
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders | — | — | — | ||||||||
Net earnings per share-diluted attributable to FIS common stockholders | $ | 1.72 | $ | (0.13 | ) | $ | 1.59 | ||||
Weighted average shares outstanding-diluted | 330 | 330 | 330 | ||||||||
Amounts attributable to FIS common stockholders: | |||||||||||
Net earnings from continuing operations | $ | 567 | $ | (43 | ) | $ | 524 | ||||
Net earnings (loss) from discontinued operations | 1 | — | 1 | ||||||||
Net earnings attributable to FIS common stockholders | $ | 568 | $ | (43 | ) | $ | 525 | ||||
Amounts in table may not sum or calculate due to rounding.
(1) These adjustments represent the impact of the retrospective application of ASC 606.
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FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECAST CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
Exhibit B (continued)
As reported | GAAP Recast | ||||||||||
Year ended | Topic | Year ended | |||||||||
December 31, | 606 | December 31, | |||||||||
2015 | Adjustments (1) | 2015 | |||||||||
Processing and services revenues | $ | 6,596 | $ | (336 | ) | $ | 6,260 | ||||
Cost of revenues | 4,395 | (324 | ) | 4,071 | |||||||
Gross profit | 2,201 | (12 | ) | 2,189 | |||||||
Selling, general and administrative expenses | 1,102 | — | 1,102 | ||||||||
Operating income | 1,099 | (12 | ) | 1,087 | |||||||
Other income (expense): | |||||||||||
Interest expense, net | (183 | ) | — | (183 | ) | ||||||
Other income (expense), net | 121 | — | 121 | ||||||||
Total other income (expense), net | (62 | ) | — | (62 | ) | ||||||
Earnings from continuing operations before income taxes and equity method investment earnings | 1,037 | (12 | ) | 1,025 | |||||||
Provision (benefit) for income taxes | 379 | (4 | ) | 375 | |||||||
Equity method investment earnings | — | — | — | ||||||||
Earnings from continuing operations, net of tax | 658 | (8 | ) | 650 | |||||||
Earnings (loss) from discontinued operations, net of tax | (7 | ) | — | (7 | ) | ||||||
Net earnings | 651 | (8 | ) | 643 | |||||||
Net earnings attributable to noncontrolling interest | (19 | ) | — | (19 | ) | ||||||
Net earnings attributable to FIS common stockholders | $ | 632 | $ | (8 | ) | $ | 624 | ||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 2.24 | $ | (0.03 | ) | $ | 2.21 | ||||
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders | (0.03 | ) | — | (0.03 | ) | ||||||
Net earnings per share-basic attributable to FIS common stockholders | $ | 2.22 | $ | (0.03 | ) | $ | 2.19 | ||||
Weighted average shares outstanding-basic | 285 | 285 | 285 | ||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 2.21 | $ | (0.03 | ) | $ | 2.18 | ||||
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders | (0.03 | ) | — | (0.03 | ) | ||||||
Net earnings per share-diluted attributable to FIS common stockholders | $ | 2.19 | $ | (0.03 | ) | $ | 2.16 | ||||
Weighted average shares outstanding-diluted | 289 | 289 | 289 | ||||||||
Amounts attributable to FIS common stockholders: | |||||||||||
Net earnings from continuing operations | $ | 639 | $ | (8 | ) | $ | 631 | ||||
Net earnings (loss) from discontinued operations | (7 | ) | — | (7 | ) | ||||||
Net earnings attributable to FIS common stockholders | $ | 632 | $ | (8 | ) | $ | 624 | ||||
Amounts in table may not sum or calculate due to rounding.
(1) These adjustments represent the impact of the retrospective application of ASC 606.
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FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED
(In millions)
Notes to Exhibit A for the three months ended March 31, June 30, September 30, and December 31, 2017 and the years ended December 31, 2017, 2016 and 2015.
The non-GAAP adjustments are as follows:
(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. |
(2) | This item represents certain costs and other transactions which management deems non-operational primarily related to integration and severance activity from the SunGard acquisition. |
(3) | 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. |
(4) | This item represents 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 and the pre-tax gain on the sale of the Public Sector and Education ("PS&E") businesses and other divestitures during the first half of 2017. For 2015, this item represents the gain on the sale of check warranty contracts and other assets in the gaming industry. |
(5) | This item represents: (1) a pre-tax charge upon extinguishment of approximately $171 million in tender premiums and the write-off of previously capitalized debt issuance costs and other costs related to debt refinancing on the repurchase of approximately $2,000 million in aggregate principal of debt securities during the 2017 third quarter; (2) the write-off of certain previously capitalized debt issuance costs; (3) the payment of an $18 million bond premium associated with the early redemption of our senior notes due March 2022 during March 2017; and (4) other costs related to debt refinancing. |
(6) | Global Restructure represents severance costs incurred during the first quarter of 2015 in connection with the reorganization and streamlining of operations in our Global Financial Solutions segment. |
(7) | This item represents adjustments due to "The Tax Cuts and Jobs Act" bill enacted on December 22, 2017. |
(8) | The unaudited historical SunGard financial information, as adjusted, is presented for illustrative purposes only. The adjusted financial information excludes amortization of purchased intangible assets, as well as the impact from the acquisition deferred revenue adjustment arising from the SunGard Acquisition as those impacts would be eliminated in the preparation of adjusted combined information. Pre-acquisition amounts related to SunGard have not been adjusted for the ASC 606 changes in the revenue recognition standards. |
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