0001136893-18-000013.txt : 20180306 0001136893-18-000013.hdr.sgml : 20180306 20180306161803 ACCESSION NUMBER: 0001136893-18-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180306 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180306 DATE AS OF CHANGE: 20180306 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Fidelity National Information Services, Inc. CENTRAL INDEX KEY: 0001136893 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 371490331 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16427 FILM NUMBER: 18670093 BUSINESS ADDRESS: STREET 1: 601 RIVERSIDE AVENUE CITY: JACKSONVILLE STATE: FL ZIP: 32204 BUSINESS PHONE: 904-438-6365 MAIL ADDRESS: STREET 1: 601 RIVERSIDE AVENUE CITY: JACKSONVILLE STATE: FL ZIP: 32204 FORMER COMPANY: FORMER CONFORMED NAME: CERTEGY INC DATE OF NAME CHANGE: 20010607 FORMER COMPANY: FORMER CONFORMED NAME: EQUIFAX PS INC DATE OF NAME CHANGE: 20010315 8-K 1 a8-ktopic606recast.htm 8-K Document


 
 
 
 
 


United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):
March 6, 2018

Fidelity National Information Services, Inc.
(Exact name of Registrant as Specified in its Charter)

1-16427
(Commission File Number)
 
 
 
 
 
Georgia
 
37-1490331
(State or Other Jurisdiction of Incorporation or Organization)
 
(IRS Employer Identification Number)
601 Riverside Avenue
Jacksonville, Florida 32204
(Addresses of Principal Executive Offices)

(904) 438-6000
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
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

 
 
 
 
 




Item 7.01 Results of Operations and Financial Condition

Fidelity National Information Services, Inc. (“the Company”) is filing this Current Report on Form 8-K (this "Current Report") to recast certain prior period financial statements and schedules to reflect our retrospective application of a new revenue accounting standard.

The new revenue accounting standard is ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 amends substantially all authoritative literature related to revenue recognition, including industry-specific requirements, and converges the guidance under this topic with that of the International Financial Reporting Standards. It also includes guidance on accounting for the incremental costs of obtaining, and costs incurred to fulfill, a contract with a customer. ASU 2014-09 implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. We have adopted the new standard effective January 1, 2018 utilizing the full retrospective method with the application of certain practical expedients.

The Company will begin to report comparative results under the new accounting standard in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.

In addition to providing recast financial results in Exhibit 99.1, we have provided certain non-GAAP financial measures based on the recast results, as well as a reconciliation to the GAAP results. We believe these non-GAAP measures help investors better understand the underlying fundamentals of our business. Management uses these non-GAAP measures in its assessment and management of FIS' performance. Any non-GAAP measures should be considered in context with FIS' GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Further, FIS' non-GAAP measures may be calculated differently from similarly titled measures of other companies.

The information included in this Item 7.01, including the accompanying exhibits, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in this Item 7.01 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits
 
 
 
Exhibit
 
Description
99.1
 
Supplemental financial data.







SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
 
 
Fidelity National Information Services, Inc.
 
Date: March 6, 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: March 6, 2018
By:
/s/ Katy Thompson
 
 
 
Name:
Katy Thompson
 
 
 
Title:
Corporate Senior Vice President and Chief Accounting Officer
 







EXHIBIT INDEX
 
 
 
Exhibit
 
Description
99.1
 



 EX-99.1 2 ex991topic606recast.htm EXHIBIT 99.1 Exhibit


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.




9

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.



10

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.












11