Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

The Company generates revenue from the delivery of processing, service and product solutions. Revenue is measured based on consideration specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time.

Disaggregation of Revenue

The Company’s operations are comprised of the Acceptance segment, the Fintech segment and the Payments segment. Additional information regarding the Company’s business segments is included in Note 22. The tables below present the Company’s revenue disaggregated by type of revenue, including a reconciliation with its reportable segments. The Company’s disaggregation of revenue for the three months ended March 31, 2019 has been restated to reflect the Segment Realignment. The majority of the Company’s revenue is earned domestically, with revenue generated outside the United States comprising approximately 13% and 6% of total revenue for the three months ended March 31, 2020 and 2019, respectively.



(In millions)	Reportable Segments
Three Months Ended March 31, 2020	Acceptance		Fintech		Payments		Corporate and Other		Total

Type of Revenue
Processing	$	1,183	$	351	$	1,090	$	25	$	2,649
Hardware, print and card production	193		12		192		—		397
Professional services	3		112		57		1		173
Software maintenance	—		141		1		2		144
License and termination fees	6		46		22		—		74
Output solutions postage	—		—		—		236		236
Other	16		56		24		—		96
Total Revenue	$	1,401	$	718	$	1,386	$	264	$	3,769



(In millions)	Reportable Segments
Three Months Ended March 31, 2019	Fintech		Payments		Corporate and Other		Total

Type of Revenue
Processing	$	342	$	511	$	43	$	896
Hardware, print and card production	12		75		—		87
Professional services	113		23		2		138
Software maintenance	143		1		4		148
License and termination fees	60		13		—		73
Output solutions postage	—		—		77		77
Other	55		28		—		83
Total Revenue	$	725	$	651	$	126	$	1,502

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers.



(In millions)	March 31, 2020		December 31, 2019
Contract assets	$	385	$	382
Contract liabilities	660		647

Contract assets, reported within other long-term assets in the consolidated balance sheets, primarily result from revenue being recognized where payment is contingent upon the transfer of services to a customer over the contractual period. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue) for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $168 million of revenue during the three months ended March 31, 2020 that was included in the contract liability balance at the beginning of the period.

Transaction Price Allocated to Remaining Performance Obligations

The following table includes estimated processing, services and product revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at March 31, 2020:



(In millions)
Year ending December 31,
Remainder of 2020	$	1,451
2021	1,641
2022	1,262
2023	954
Thereafter	1,830

The Company applies the optional exemption under ASC Topic 606 (“ASC 606”) and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. These multi-year contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional exemptions under ASC 606 and does not disclose information for variable consideration that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year.