10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from             to             

Commission File Number 0-14948

FISERV, INC.

(Exact Name of Registrant as Specified in Its Charter)

WISCONSIN	39-1506125
(State or Other Jurisdiction of Incorporation or Organization)	(I. R. S. Employer Identification No.)
255 FISERV DRIVE, BROOKFIELD, WI	53045
(Address of Principal Executive Offices)	(Zip Code)

(262) 879-5000

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of July 25, 2013, there were 130,090,406 shares of common stock, $.01 par value, of the registrant outstanding.

INDEX

		Page
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Income		1
	Consolidated Statements of Comprehensive Income		2
	Consolidated Balance Sheets		3
	Consolidated Statements of Cash Flows		4
	Notes to Consolidated Financial Statements		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		25
Item 4.	Controls and Procedures		25
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings		26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		26
Item 6.	Exhibits		26
	Signatures
	Exhibit Index

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Fiserv, Inc.

Consolidated Statements of Income

(In millions, except per share data)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenue:
Processing and services	$	1,015		$	904		$	1,981		$	1,802
Product		183			183			369			382
Total revenue		1,198			1,087			2,350			2,184
Expenses:
Cost of processing and services		523			471			1,045			965
Cost of product		157			155			347			314
Selling, general and administrative		245			204			474			409
Total expenses		925			830			1,866			1,688
Operating income		273			257			484			496
Interest expense		(41	)		(44	)		(82	)		(87	)
Interest and investment income		—			6			—			6
Income from continuing operations before income taxes and income from investment in unconsolidated affiliate		232			219			402			415
Income tax provision		(81	)		(60	)		(139	)		(127	)
Income from investment in unconsolidated affiliate		1			3			6			6
Income from continuing operations		152			162			269			294
Loss from discontinued operations, net of income taxes		(1	)		(1	)		(1	)		(1	)
Net income	$	151		$	161		$	268		$	293
Net income (loss) per share—basic:
Continuing operations	$	1.15		$	1.19		$	2.02		$	2.13
Discontinued operations		(0.01	)		(0.01	)		(0.01	)		—
Total	$	1.14		$	1.18		$	2.02		$	2.13
Net income (loss) per share—diluted:
Continuing operations	$	1.13		$	1.17		$	2.00		$	2.11
Discontinued operations		(0.01	)		(0.01	)		(0.01	)		—
Total	$	1.13		$	1.17		$	1.99		$	2.10
Shares used in computing net income (loss) per share:
Basic		132.5			136.1			133.0			137.4
Diluted		134.3			137.8			134.7			139.1

See accompanying notes to consolidated financial statements.

1

Fiserv Inc.

Consolidated Statements of Comprehensive Income

(In millions)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Net income	$	151		$	161		$	268		$	293
Other comprehensive income (loss):
Fair market value adjustment on cash flow hedges, net of income taxes of $1 million, $9 million, $1 million and $7 million		(2	)		(14	)		(2	)		(10	)
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of income taxes of $1 million, $5 million, $3 million and $9 million		2			7			5			14
Foreign currency translation		(5	)		(4	)		(10	)		1
Total other comprehensive income (loss)		(5	)		(11	)		(7	)		5
Comprehensive income	$	146		$	150		$	261		$	298

See accompanying notes to consolidated financial statements.

2

Fiserv, Inc.

Consolidated Balance Sheets

(In millions)

(Unaudited)

	June 30, 2013			December 31, 2012
Assets
Cash and cash equivalents	$	320		$	358
Trade accounts receivable, net		691			661
Deferred income taxes		59			42
Prepaid expenses and other current assets		384			349
Assets of discontinued operations		—			33
Total current assets		1,454			1,443
Property and equipment, net		255			248
Intangible assets, net		2,209			1,744
Goodwill		5,231			4,705
Other long-term assets		285			357
Total assets	$	9,434		$	8,497
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	761		$	721
Current maturities of long-term debt		2			2
Deferred revenue		410			379
Liabilities of discontinued operations		—			3
Total current liabilities		1,173			1,105
Long-term debt		3,951			3,228
Deferred income taxes		694			638
Other long-term liabilities		153			109
Total liabilities		5,971			5,080
Commitments and contingencies
Shareholders’ equity:
Preferred stock, no par value: 25.0 million shares authorized; none issued		—			—
Common stock, $0.01 par value: 450.0 million shares authorized; 197.9 million shares issued		2			2
Additional paid-in capital		821			804
Accumulated other comprehensive loss		(67	)		(60	)
Retained earnings		6,218			5,950
Treasury stock, at cost, 66.8 million and 64.5 million shares		(3,511	)		(3,279	)
Total shareholders’ equity		3,463			3,417
Total liabilities and shareholders’ equity	$	9,434		$	8,497

See accompanying notes to consolidated financial statements.

3

Fiserv, Inc.

Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

	Six Months Ended June 30,
	2013			2012
Cash flows from operating activities:
Net income	$	268		$	293
Adjustment for discontinued operations		1			1
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and other amortization		97			93
Amortization of acquisition-related intangible assets		103			80
Share-based compensation		26			25
Deferred income taxes		(26	)		(2	)
Non-cash impairment charge		30			—
Dividend from unconsolidated affiliate		6			—
Other non-cash items		(12	)		(16	)
Changes in assets and liabilities, net of effects from acquisitions:
Trade accounts receivable		13			61
Prepaid expenses and other assets		(45	)		(42	)
Accounts payable and other liabilities		(40	)		(88	)
Deferred revenue		(24	)		(25	)
Net cash provided by operating activities from continuing operations		397			380
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(110	)		(101	)
Payment for acquisition of business, net of cash acquired		(16	)		—
Dividend from unconsolidated affiliate		116			—
Net proceeds from sale of investments		—			6
Other investing activities		—			(2	)
Net cash used in investing activities from continuing operations		(10	)		(97	)
Cash flows from financing activities:
Proceeds from long-term debt		1,210			156
Repayments of long-term debt		(1,444	)		(138	)
Issuance of treasury stock		24			52
Purchases of treasury stock		(254	)		(396	)
Other financing activities		7			7
Net cash used in financing activities from continuing operations		(457	)		(319	)
Net change in cash and cash equivalents from continuing operations		(70	)		(36	)
Net cash flows from discontinued operations		32			1
Beginning balance		358			337
Ending balance	$	320		$	302
Discontinued operations cash flow information:
Net cash (used in) provided by operating activities	$	(3	)	$	2
Net cash provided by (used in) investing activities		35			(1	)
Net change in cash and cash equivalents from discontinued operations		32			1
Net cash flows to continuing operations		(32	)		(1	)
Beginning balance—discontinued operations		—			—
Ending balance—discontinued operations	$	—		$	—

See accompanying notes to consolidated financial statements.

4

Fiserv, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

1. Principles of Consolidation

The consolidated financial statements for the three-month and six-month periods ended June 30, 2013 and 2012 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The consolidated financial statements include the accounts of Fiserv, Inc. and all 100% owned subsidiaries. Investments in less than 50% owned affiliates in which the Company has significant influence but not control are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation.

2. Fair Value Measurements

The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in its consolidated financial statements on a recurring basis. Fair value represents the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability.

The fair values of cash equivalents, trade accounts receivable, settlement assets and obligations, and accounts payable approximate their respective carrying values due to the short period of time to maturity. The estimated fair value of total debt was $4.1 billion at June 30, 2013 and $3.5 billion at December 31, 2012 and was estimated using discounted cash flows based on the Company’s current incremental borrowing rates or quoted prices in active markets (level 2 of the fair value hierarchy).

3. Acquisition

On January 14, 2013, the Company acquired Open Solutions Inc. (“Open Solutions”), a provider of account processing technology for financial institutions, for a cash purchase price of $55 million. The Company also assumed approximately $960 million of debt in connection with the acquisition. This acquisition advances the Company’s go-to-market strategies by adding a number of products and services and by expanding the number of account processing clients to which the Company can provide a broad array of its add-on solutions.

5

The preliminary allocation of purchase price recorded for Open Solutions is as follows:

(In millions)
Cash and cash equivalents	$	39
Trade accounts receivable		41
Prepaid expenses and other current assets		41
Intangible assets		571
Goodwill		531
Other long-term assets		18
Accounts payable and other current liabilities		(140	)
Long-term debt, less current maturities		(952	)
Other long-term liabilities		(94	)
Total cash purchase price	$	55

The cash purchase price and repayment of assumed debt were funded utilizing a combination of available cash and existing availability under the Company’s revolving credit facility. The amounts attributed to goodwill and intangible assets are based on preliminary valuations and are subject to final adjustment. The preliminary purchase price allocation resulted in goodwill, included within the Financial Institution Services (“Financial”) segment, of approximately $531 million, of which $161 million is expected to be deductible for tax purposes. Such goodwill is primarily attributable to synergies with the products and services that Open Solutions provides and the anticipated value of selling the Company’s products and services to Open Solutions’ existing client base. The preliminary values allocated to intangible assets are as follows:

(In millions)	Gross Carrying Amount		Weighted- Average Useful Life
Customer related intangible assets	$	460		20 years
Acquired software and technology		105		7 years
Trade name		6		10 years
	$	571

The results of operations for Open Solutions, including $76 million and $135 million of revenue, respectively, during the three and six months ended June 30, 2013, have been included within the Financial segment from the date of acquisition. As a result of the acquisition, the Company has incurred certain merger and integration costs, including a $30 million non-cash impairment charge related to the Company’s decision to replace its existing Acumen^® account processing platform with DNA^TM, an Open Solutions account processing platform. The Acumen platform costs were recorded as capitalized software and included in the Financial segment assets. The related impairment charge was recorded in cost of product within the Corporate and Other segment in the first quarter of 2013 as this charge is excluded from the Company’s measure of the Financial segment’s operating performance.

The following unaudited supplemental pro forma information presents the Company’s results of operations as though the acquisition of Open Solutions had occurred on January 1, 2012. This information is presented for informational purposes and is not necessarily indicative of the Company’s operating results which would have occurred had the acquisition been consummated as of that date. The pro forma information presented below does not include anticipated synergies, the impact of purchase accounting adjustments or certain other expected benefits of the acquisition and should not be used as a predictive measure of our future results of operations.

6

	(Pro Forma Unaudited)
(In millions, except per share data)	Three Months Ended June 30, 2012		Six Months Ended June 30, 2012
Total revenue	$	1,173	$	2,355
Net income	$	164	$	302
Net income per share—basic	$	1.20	$	2.20
Net income per share—diluted	$	1.19	$	2.17

4. Discontinued Operations

On March 14, 2013, the Company sold its club solutions business (“Club Solutions”) for approximately $37 million in cash at closing. The assets, liabilities, results of operations and cash flows of Club Solutions, which were previously included within the Payments and Industry Products (“Payments”) segment, have been reported as discontinued operations in the accompanying consolidated financial statements for all periods presented. During 2013, Club Solutions revenue was $10 million, and the Company recognized a $2 million loss, net of income taxes, on the sale of the business. Club Solutions revenue was $11 million and $23 million, during the three and six months ended June 30, 2012, respectively. The assets of discontinued operations at December 31, 2012 primarily consist of certain intangible assets, including software, customer related intangibles and goodwill.

5. Share-Based Compensation

The Company recognized $12 million and $26 million of share-based compensation expense during the three and six months ended June 30, 2013, respectively, and $11 million and $25 million of share-based compensation expense during the three and six months ended June 30, 2012, respectively. The Company’s annual grant of share-based awards generally occurs in the first quarter. During the six months ended June 30, 2013, the Company granted 1.0 million stock options and 0.4 million restricted stock units at weighted-average estimated fair values of $25.31 and $81.24, respectively. During the six months ended June 30, 2012, the Company granted 1.0 million stock options and 0.4 million restricted stock units at weighted-average estimated fair values of $21.58 and $65.33, respectively. During the six months ended June 30, 2013 and 2012, stock options to purchase 0.4 million shares and 1.0 million shares, respectively, were exercised.

6. Shares Used in Computing Net Income Per Share

The computation of shares used in calculating diluted net income per common share is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2013		2012		2013		2012
Weighted-average shares outstanding used for the calculation of net income per share—basic		132.5		136.1		133.0		137.4
Common stock equivalents		1.8		1.7		1.7		1.7
Total shares used for the calculation of net income per share—diluted		134.3		137.8		134.7		139.1

For the three months ended June 30, 2013 and 2012, stock options for 0.9 million and 1.7 million shares, respectively, were excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive. For the six months ended June 30, 2013 and 2012, stock options for 0.7 million and 1.5 million shares, respectively, were excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive.

7

7. Intangible Assets

Intangible assets consisted of the following:

(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
June 30, 2013
Customer related intangible assets	$	2,155	$	600	$	1,555
Acquired software and technology		483		255		228
Trade names		120		33		87
Capitalized software development costs		653		393		260
Purchased software		308		229		79
Total	$	3,719	$	1,510	$	2,209
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
December 31, 2012
Customer related intangible assets	$	1,695	$	534	$	1,161
Acquired software and technology		378		222		156
Trade names		114		29		85
Capitalized software development costs		667		398		269
Purchased software		325		252		73
Total	$	3,179	$	1,435	$	1,744

The Company estimates that annual amortization expense with respect to acquired intangible assets, which include customer related intangible assets, acquired software and technology, and trade names, will be approximately $210 million in 2013, approximately $200 million in 2014, approximately $190 million in 2015, approximately $150 million in 2016 and approximately $140 million in 2017. Annual amortization expense in 2013 with respect to capitalized and purchased software is estimated to approximate $110 million.

8. Investment in Unconsolidated Affiliate

The Company owns a 49% interest in StoneRiver Group, L.P. (“StoneRiver”), which is accounted for as an equity method investment, and reports its share of StoneRiver’s net income as income from investment in unconsolidated affiliate. The Company’s investment in StoneRiver was $78 million at December 31, 2012 and was reported within other long-term assets in the consolidated balance sheet. In the second quarter of 2013, the Company received a $122 million cash dividend from StoneRiver, distributed from excess proceeds from a recent recapitalization transaction. The dividend exceeded the Company’s investment carrying amount, resulting in the reduction of its investment balance to zero, with the excess cash dividend of $38 million recorded within other long-term liabilities in the consolidated balance sheet at June 30, 2013. Although the Company does not maintain a legal obligation to fund any of the liabilities or potential operating deficits of StoneRiver, it intends to provide future financial support, based upon its continuing assessment of various factors, should the need arise. A portion, or $6 million, of the dividend represents a return on the Company’s investment and was reported as cash flows from operating activities.

8

9. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	June 30,		December 31,
(In millions)	2013		2012
Trade accounts payable	$	58	$	97
Settlement obligations		220		216
Client deposits		167		147
Accrued compensation and benefits		110		144
Other accrued expenses		206		117
Total	$	761	$	721

10. Long-Term Debt

The Company maintains a $2.0 billion revolving credit facility with a syndicate of banks. Borrowings under this facility bear interest at a variable rate, 1.3% at June 30, 2013, based on LIBOR plus a specified margin or the bank’s base rate. There are no significant commitment fees and no compensating balance requirements. The facility expires on August 1, 2017 and contains various restrictions and covenants that require the Company, among other things, to (i) limit its consolidated indebtedness as of the end of each fiscal quarter to no more than three and one-half times consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments during the period of four fiscal quarters then ended, and (ii) maintain consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments of at least three times consolidated interest expense as of the end of each fiscal quarter for the period of four fiscal quarters then ended. During the first six months of 2013, the Company was in compliance with all financial debt covenants. As of June 30, 2013, borrowings outstanding under the facility approximated $1.0 billion, primarily related to the funding of assumed debt from the acquisition of Open Solutions.

11. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, net of income taxes, consisted of the following:

(In millions)	Cash Flow Hedges			Foreign Currency Translation			Other			Total
Balance at December 31, 2012	$	(57	)	$	(1	)	$	(2	)	$	(60	)
Other comprehensive loss before reclassifications		(2	)		(10	)		—			(12	)
Amounts reclassified from accumulated other comprehensive loss		5			—			—			5
Net current-period other comprehensive (loss) income		3			(10	)		—			(7	)
Balance at June 30, 2013	$	(54	)	$	(11	)	$	(2	)	$	(67	)

Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2013, the Company estimates that it will recognize approximately $14 million in interest expense during the next twelve months related to settled interest rate hedge contracts.

9

12. Cash Flow Information

Supplemental cash flow information was as follows:

	Six Months Ended June 30,
(In millions)	2013		2012
Interest paid, including on assumed debt	$	91	$	84
Income taxes paid from continuing operations		135		169
Liabilities assumed in acquisition of business		1,186		—
Treasury stock purchases settled after the balance sheet date		17		—

13. Business Segment Information

The Company’s operations are comprised of the Payments segment and the Financial segment. The Payments segment primarily provides electronic bill payment and presentment services, debit and other card-based payment products and services, internet and mobile banking software and services, and other electronic payments software and services, including account-to-account transfers and person-to-person payments. The businesses in this segment also provide investment account processing services for separately managed accounts, card and print personalization services, and fraud and risk management products and services. The Financial segment provides banks, thrifts and credit unions with account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services that support numerous types of financial transactions. The Corporate and Other segment primarily consists of unallocated corporate expenses, amortization of acquisition-related intangible assets, intercompany eliminations and other costs that are not considered when management evaluates segment performance.

10

					Corporate
(In millions)	Payments		Financial		and Other			Total
Three Months Ended June 30, 2013
Processing and services revenue	$	477	$	541	$	(3	)	$	1,015
Product revenue		149		43		(9	)		183
Total revenue	$	626	$	584	$	(12	)	$	1,198
Operating income	$	179	$	186	$	(92	)	$	273
Three Months Ended June 30, 2012
Processing and services revenue	$	438	$	469	$	(3	)	$	904
Product revenue		158		33		(8	)		183
Total revenue	$	596	$	502	$	(11	)	$	1,087
Operating income	$	157	$	163	$	(63	)	$	257
Six Months Ended June 30, 2013
Processing and services revenue	$	930	$	1,057	$	(6	)	$	1,981
Product revenue		313		76		(20	)		369
Total revenue	$	1,243	$	1,133	$	(26	)	$	2,350
Operating income	$	345	$	347	$	(208	)	$	484
Six Months Ended June 30, 2012
Processing and services revenue	$	873	$	934	$	(5	)	$	1,802
Product revenue		331		69		(18	)		382
Total revenue	$	1,204	$	1,003	$	(23	)	$	2,184
Operating income	$	315	$	314	$	(133	)	$	496

Goodwill in the Payments segment was $3.4 billion as of June 30, 2013 and December 31, 2012. Goodwill in the Financial segment was $1.8 billion and $1.3 billion as of June 30, 2013 and December 31, 2012, respectively.

14. Subsidiary Guarantors of Long-Term Debt

Certain of the Company’s 100% owned domestic subsidiaries (“Guarantor Subsidiaries”) jointly and severally, and fully and unconditionally, guarantee the Company’s indebtedness under its revolving credit facility and senior notes. Under the indentures governing the senior notes, a guarantee of a Guarantor Subsidiary will terminate upon the following customary circumstances: the sale of such Guarantor Subsidiary if such sale complies with the indenture; if such Guarantor Subsidiary no longer guarantees certain other indebtedness of the Company, including as a result of the release of the Guarantor Subsidiaries if Standard & Poor’s and Moody’s Investors Service, Inc. increase the Company’s credit rating to A- and A3, respectively; or the defeasance or discharge of the indenture. The following condensed consolidating financial information is presented on the equity method and reflects summarized financial information for: (a) the Company; (b) the Guarantor Subsidiaries on a combined basis; and (c) the Company’s non-guarantor subsidiaries on a combined basis. The following condensed consolidating financial information reflects the reporting of Club Solutions as a discontinued operation for all periods presented.

11

Condensed Consolidating Statement of Income and Comprehensive Income

Three Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	724		$	332		$	(41	)	$	1,015
Product		—			170			29			(16	)		183
Total revenue		—			894			361			(57	)		1,198
Expenses:
Cost of processing and services		—			356			208			(41	)		523
Cost of product		—			152			21			(16	)		157
Selling, general and administrative		31			160			54			—			245
Total expenses		31			668			283			(57	)		925
Operating income (loss)		(31	)		226			78			—			273
Interest expense, net		(32	)		(5	)		(4	)		—			(41	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(63	)		221			74			—			232
Income tax (provision) benefit		26			(82	)		(25	)		—			(81	)
Income from investment in unconsolidated affiliate		—			1			—			—			1
Equity in earnings of consolidated affiliates		189			—			—			(189	)		—
Income from continuing operations		152			140			49			(189	)		152
Loss from discontinued operations, net of income taxes		(1	)		—			—			—			(1	)
Net income	$	151		$	140		$	49		$	(189	)	$	151
Comprehensive income	$	146		$	140		$	44		$	(184	)	$	146

Condensed Consolidating Statement of Income and Comprehensive Income

Three Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	640		$	309		$	(45	)	$	904
Product		—			173			23			(13	)		183
Total revenue		—			813			332			(58	)		1,087
Expenses:
Cost of processing and services		—			338			178			(45	)		471
Cost of product		—			153			15			(13	)		155
Selling, general and administrative		26			123			55			—			204
Total expenses		26			614			248			(58	)		830
Operating income (loss)		(26	)		199			84			—			257
Interest (expense) income, net		(25	)		(16	)		3			—			(38	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(51	)		183			87			—			219
Income tax (provision) benefit		38			(65	)		(33	)		—			(60	)
Income from investment in unconsolidated affiliate		—			3			—			—			3
Equity in earnings of consolidated affiliates		175			—			—			(175	)		—
Income from continuing operations		162			121			54			(175	)		162
(Loss) income from discontinued operations, net of income taxes		(1	)		1			—			(1	)		(1	)
Net income	$	161		$	122		$	54		$	(176	)	$	161
Comprehensive income	$	150		$	122		$	50		$	(172	)	$	150

12

Condensed Consolidating Statement of Income and Comprehensive Income

Six Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	1,437		$	625		$	(81	)	$	1,981
Product		—			352			51			(34	)		369
Total revenue		—			1,789			676			(115	)		2,350
Expenses:
Cost of processing and services		—			740			386			(81	)		1,045
Cost of product		—			339			42			(34	)		347
Selling, general and administrative		59			304			111			—			474
Total expenses		59			1,383			539			(115	)		1,866
Operating income (loss)		(59	)		406			137			—			484
Interest expense, net		(64	)		(11	)		(7	)		—			(82	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(123	)		395			130			—			402
Income tax (provision) benefit		52			(144	)		(47	)		—			(139	)
Income from investment in unconsolidated affiliate		—			6			—			—			6
Equity in earnings of consolidated affiliates		340			—			—			(340	)		—
Income from continuing operations		269			257			83			(340	)		269
Loss from discontinued operations, net of income taxes		(1	)		—			—			—			(1	)
Net income	$	268		$	257		$	83		$	(340	)	$	268
Comprehensive income	$	261		$	257		$	73		$	(330	)	$	261

Condensed Consolidating Statement of Income and Comprehensive Income

Six Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	1,286		$	593		$	(77	)	$	1,802
Product		—			363			50			(31	)		382
Total revenue		—			1,649			643			(108	)		2,184
Expenses:
Cost of processing and services		—			685			357			(77	)		965
Cost of product		—			312			33			(31	)		314
Selling, general and administrative		49			246			114			—			409
Total expenses		49			1,243			504			(108	)		1,688
Operating income (loss)		(49	)		406			139			—			496
Interest expense, net		(52	)		(29	)		—			—			(81	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(101	)		377			139			—			415
Income tax (provision) benefit		63			(138	)		(52	)		—			(127	)
Income from investment in unconsolidated affiliate		—			6			—			—			6
Equity in earnings of consolidated affiliates		332			—			—			(332	)		—
Income from continuing operations		294			245			87			(332	)		294
(Loss) income from discontinued operations, net of income taxes		(1	)		2			—			(2	)		(1	)
Net income	$	293		$	247		$	87		$	(334	)	$	293
Comprehensive income	$	298		$	247		$	88		$	(335	)	$	298

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Condensed Consolidating Balance Sheet

June 30, 2013

(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	32	$	68		$	220		$	—		$	320
Trade accounts receivable, net		—		452			239			—			691
Prepaid expenses and other current assets		60		248			135			—			443
Total current assets		92		768			594			—			1,454
Investments in consolidated affiliates		9,839		—			—			(9,839	)		—
Intangible assets, net		22		1,960			227			—			2,209
Goodwill		—		4,171			1,060			—			5,231
Other long-term assets		50		387			103			—			540
Total assets	$	10,003	$	7,286		$	1,984		$	(9,839	)	$	9,434
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	109	$	456		$	196		$	—		$	761
Current maturities of long-term debt		—		2			—			—			2
Deferred revenue		—		254			156			—			410
Total current liabilities		109		712			352			—			1,173
Long-term debt		3,948		3			—			—			3,951
Due to (from) consolidated affiliates		1,725		(1,408	)		(317	)		—			—
Other long-term liabilities		758		60			29			—			847
Total liabilities		6,540		(633	)		64			—			5,971
Total shareholders’ equity		3,463		7,919			1,920			(9,839	)		3,463
Total liabilities and shareholders’ equity	$	10,003	$	7,286		$	1,984		$	(9,839	)	$	9,434

14

Condensed Consolidating Balance Sheet

December 31, 2012

(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	85	$	66		$	207		$	—		$	358
Trade accounts receivable, net		—		403			258			—			661
Prepaid expenses and other current assets		45		186			160			—			391
Assets of discontinued operations		—		33			—			—			33
Total current assets		130		688			625			—			1,443
Investments in consolidated affiliates		8,498		—			—			(8,498	)		—
Intangible assets, net		22		1,479			243			—			1,744
Goodwill		—		3,695			1,010			—			4,705
Other long-term assets		55		445			105			—			605
Total assets	$	8,705	$	6,307		$	1,983		$	(8,498	)	$	8,497
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	73	$	417		$	231		$	—		$	721
Current maturities of long-term debt		—		2			—			—			2
Deferred revenue		—		213			166			—			379
Liabilities of discontinued operations		—		3			—			—			3
Total current liabilities		73		635			397			—			1,105
Long-term debt		3,223		4			1			—			3,228
Due to (from) consolidated affiliates		1,295		(988	)		(307	)		—			—
Other long-term liabilities		697		22			28			—			747
Total liabilities		5,288		(327	)		119			—			5,080
Total shareholders’ equity		3,417		6,634			1,864			(8,498	)		3,417
Total liabilities and shareholders’ equity	$	8,705	$	6,307		$	1,983		$	(8,498	)	$	8,497

15

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(42	)	$	324		$	115		$	—		$	397
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(2	)		(79	)		(29	)		—			(110	)
Payment for acquisition of business, net of cash acquired		(55	)		39			—			—			(16	)
Other investing activities		508			120			(5	)		(507	)		116
Net cash (used in) provided by investing activities from continuing operations		451			80			(34	)		(507	)		(10	)
Cash flows from financing activities:
Proceeds from long-term debt		1,210			—			—			—			1,210
Repayments of long-term debt		(1,444	)		—			—			—			(1,444	)
Issuance of treasury stock		24			—			—			—			24
Purchases of treasury stock		(254	)		—			—			—			(254	)
Other financing activities		6			(438	)		(68	)		507			7
Net cash used in financing activities from continuing operations		(458	)		(438	)		(68	)		507			(457	)
Net change in cash and cash equivalents from continuing operations		(49	)		(34	)		13			—			(70	)
Net cash flows from (to) discontinued operations		(4	)		36			—			—			32
Beginning balance		85			66			207			—			358
Ending balance	$	32		$	68		$	220		$	—		$	320

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(70	)	$	330		$	120		$	—		$	380
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(3	)		(72	)		(26	)		—			(101	)
Other investing activities		335			(2	)		6			(335	)		4
Net cash (used in) provided by investing activities from continuing operations		332			(74	)		(20	)		(335	)		(97	)
Cash flows from financing activities:
Proceeds from long-term debt		156			—			—			—			156
Repayments of long-term debt		(136	)		(2	)		—			—			(138	)
Issuance of treasury stock		52			—			—			—			52
Purchases of treasury stock		(396	)		—			—			—			(396	)
Other financing activities		6			(257	)		(77	)		335			7
Net cash used in financing activities from continuing operations		(318	)		(259	)		(77	)		335			(319	)
Net change in cash and cash equivalents from continuing operations		(56	)		(3	)		23			—			(36	)
Net cash flows from (to) discontinued operations		(3	)		4			—			—			1
Beginning balance		73			71			193			—			337
Ending balance	$	14		$	72		$	216		$	—		$	302

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This quarterly report contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those that express a plan, belief, expectation, estimation, anticipation, intent, contingency, future development or similar expression, and can generally be identified as forward-looking because they include words such as “believes,” “anticipates,” “expects,” “could,” “should” or words of similar meaning. Statements that describe our future plans, objectives or goals are also forward-looking statements. The forward-looking statements in this report involve significant risks and uncertainties, and a number of factors, both foreseen and unforeseen, that could cause actual results to differ materially from our current expectations. The factors that may affect our results include, among others: the impact on our business of the current state of the economy, including the risk of reduction in revenue resulting from decreased spending on the products and services we offer; legislative and regulatory actions in the United States and internationally, including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations; our ability to successfully integrate acquisitions, including Open Solutions Inc., into our operations; changes in client demand for our products or services; pricing or other actions by competitors; the impact of our strategic initiatives; our ability to comply with government regulations, including privacy regulations; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2012 and in other documents that we file with the Securities and Exchange Commission. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements, which speak only as of the date of this report. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this report.

Management’s discussion and analysis of financial condition and results of operations is provided as a supplement to our unaudited consolidated financial statements and accompanying notes to help provide an understanding of our financial condition, the changes in our financial condition and our results of operations. Our discussion is organized as follows:

• Overview. This section contains background information on our company and the services and products that we provide, our enterprise priorities and the trends and business developments affecting our industry in order to provide context for management’s discussion and analysis of our financial condition and results of operations.

• Results of operations. This section contains an analysis of our results of operations presented in the accompanying unaudited consolidated statements of income by comparing the results for the three and six months ended June 30, 2013 to the comparable periods in 2012.

• Liquidity and capital resources. This section provides an analysis of our cash flows and a discussion of our outstanding debt as of June 30, 2013.

Overview

Company Background

We are a leading global provider of financial services technology. We provide account processing systems, electronic payments processing products and services, internet and mobile banking systems, and related services. We serve approximately 16,000 clients worldwide, including banks, thrifts, credit unions, investment management firms, leasing and finance companies, retailers, merchants and government agencies. The majority of our revenue is generated from recurring account- and transaction-based fees under contracts that generally have terms of three to five years. We also have had high contract renewal rates with our clients. The majority of the services we provide are necessary for our clients to operate their businesses and are, therefore, non-discretionary in nature.

Our operations are primarily in the United States and are comprised of the Payments and Industry Products (“Payments”) segment and the Financial Institution Services (“Financial”) segment. The Payments segment primarily provides electronic bill payment and presentment services, debit and other card-based payment products and services, internet and mobile banking software and services, and other electronic payments software and services, including account-to-account transfers and person-to-person payments. Our businesses in this segment also provide investment account processing services for separately managed accounts, card and print personalization services, and fraud and risk management products and services. The Financial segment provides banks, thrifts and credit unions with account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services that support numerous types of financial transactions. The Corporate and Other segment primarily consists of unallocated corporate expenses, amortization of acquisition-related intangible assets, intercompany eliminations and other costs that are not considered when management evaluates segment performance. On January 14, 2013, we acquired Open Solutions Inc. (“Open Solutions”), a provider of account processing technology for financial

17

institutions, for a cash purchase price of $55 million. We also assumed approximately $960 million of debt. With this acquisition, we added 3,300 clients, including 800 new account processing clients, as well as DNA™, a real-time, open technology account processing platform. The Open Solutions acquisition advances Fiserv’s go-to-market strategies by adding a number of products and services and by expanding the number of account processing clients to which we can provide a broad array of our add-on solutions.

Enterprise Priorities

We continue to implement a series of strategic initiatives to help accomplish our mission of providing integrated technology and services solutions that enable best-in-class results for our clients. These strategic initiatives include active portfolio management of our various businesses, enhancing the overall value of our existing client relationships, improving operational effectiveness, being disciplined in our allocation of capital, and differentiating our products and services through innovation. Our key enterprise priorities for 2013 are: (i) to continue to build high-quality revenue growth and meet our earnings goals; (ii) to extend market momentum into deeper client relationships and a larger share of our strategic solutions; and (iii) to deliver innovation and integration to enhance results for our clients, with an important focus on Open Solutions.

Industry Trends

Market and regulatory conditions have continued to create a difficult operating environment for financial institutions and other businesses in the United States and internationally. In particular, legislation such as the Dodd-Frank Wall Street Reform and Consumer Protection Act has generated, and will continue to generate, numerous new regulations that will impact the financial industry. Financial institutions have generally remained cautious in their information technology spending as a result. These conditions have, however, created interest in solutions that help financial institutions win and retain customers, generate incremental revenue and enhance operating efficiency. Examples of these solutions include our digital channels and electronic payments solutions, including mobile banking and person-to-person payments. Despite the difficult environment over the past several years, our revenue increased 3% in 2012 compared to 2011 and 8% in the first six months of 2013 compared to the same period in 2012; our net income per share from continuing operations increased to $4.30 for the full year of 2012; and our net cash provided by operating activities was $826 million for the full year of 2012. We believe these financial results demonstrate the resilience of our recurring, fee-based revenue model, the largely non-discretionary nature of our products and services, and mild improvement in the general condition of the financial industry. We anticipate that we will benefit over the long term from the trend of financial institutions moving from in-house technology solutions to outsourced solutions.

During the past 25 years, the number of financial institutions in the United States has declined at a relatively steady rate of approximately 3% per year, primarily as a result of voluntary mergers and acquisitions. An acquisition benefits us when a newly combined institution is processed on our platform, or elects to move to one of our platforms, and negatively impacts us when a competing platform is selected. Financial institution acquisitions also impact our financial results due to early contract termination fees in our multi-year client contracts. Contract termination fees are primarily generated when an existing client with a multi-year contract is acquired by another financial institution. These fees can vary from period to period based on the number and size of clients that are acquired and how early in the contract term the contract is terminated.

Business Developments

We continue to invest in the development of new and strategic products in categories such as payments, including Popmoney^® for person-to-person payments; Mobiliti^TM for mobile banking and payments services; and others that we believe will increase value to our clients and enhance the capabilities of our existing solutions. In January 2013, we acquired Open Solutions, a provider of account processing technology for financial institutions, which added DNA, a real-time, open technology account processing platform. We believe our wide range of market-leading solutions along with the investments we are making in new and differentiated products will favorably position us and our clients to capitalize on opportunities in the marketplace.

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Results of Operations

On March 14, 2013, the Company sold its club solutions business (“Club Solutions”). The results of operations and cash flows of Club Solutions, which were previously included within the Payments segment, have been reported as discontinued operations for all periods presented.

The following table presents certain amounts included in our consolidated statements of income, the relative percentage that those amounts represent to revenue and the change in those amounts from year to year. This information should be read together with the consolidated financial statements and accompanying notes.

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	Three Months Ended June 30,
(In millions)							Percentage of Revenue (1)						Increase (Decrease)
	2013			2012			2013			2012			$			%
Revenue:
Processing and services	$	1,015		$	904			84.7	%		83.2	%	$	111			12	%
Product		183			183			15.3	%		16.8	%		—			—
Total revenue		1,198			1,087			100.0	%		100.0	%		111			10	%
Expenses:
Cost of processing and services		523			471			51.5	%		52.1	%		52			11	%
Cost of product		157			155			85.8	%		84.7	%		2			1	%
Sub-total		680			626			56.8	%		57.6	%		54			9	%
Selling, general and administrative		245			204			20.5	%		18.8	%		41			20	%
Total expenses		925			830			77.2	%		76.4	%		95			11	%
Operating income		273			257			22.8	%		23.6	%		16			6	%
Interest expense		(41	)		(44	)		(3.4	%)		(4.0	%)		(3	)		(7	%)
Interest and investment income		—			6			—			0.6	%		(6	)		(100	%)
Income from continuing operations before income taxes and income from investment in unconsolidated affiliate	$	232		$	219			19.4	%		20.1	%	$	13			6	%

	Six Months Ended June 30,
(In millions)							Percentage of Revenue (1)						Increase (Decrease)
	2013			2012			2013			2012			$			%
Revenue:
Processing and services	$	1,981		$	1,802			84.3	%		82.5	%	$	179			10	%
Product		369			382			15.7	%		17.5	%		(13	)		(3	%)
Total revenue		2,350			2,184			100.0	%		100.0	%		166			8	%
Expenses:
Cost of processing and services		1,045			965			52.8	%		53.6	%		80			8	%
Cost of product		347			314			94.0	%		82.2	%		33			11	%
Sub-total		1,392			1,279			59.2	%		58.6	%		113			9	%
Selling, general and administrative		474			409			20.2	%		18.7	%		65			16	%
Total expenses		1,866			1,688			79.4	%		77.3	%		178			11	%
Operating income		484			496			20.6	%		22.7	%		(12	)		(2	%)
Interest expense		(82	)		(87	)		(3.5	%)		(4.0	%)		(5	)		(6	%)
Interest and investment income		—			6			—			0.3	%		(6	)		(100	%)
Income from continuing operations before income taxes and income from investment in unconsolidated affiliate	$	402		$	415			17.1	%		19.0	%	$	(13	)		(3	%)

⁽¹⁾  Percentage of revenue is calculated as the relevant revenue, expense or income amount divided by total revenue, except for cost of processing and services and cost of product amounts which are divided by the related component of revenue.

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	Three Months Ended June 30,
(In millions)	Payments			Financial			Corporate and Other			Total
Total revenue:
2013	$	626		$	584		$	(12	)	$	1,198
2012		596			502			(11	)		1,087
Revenue growth	$	30		$	82		$	(1	)	$	111
Revenue growth percentage		5	%		16	%					10	%
Operating income:
2013	$	179		$	186		$	(92	)	$	273
2012		157			163			(63	)		257
Operating income growth	$	22		$	23		$	(29	)	$	16
Operating income growth percentage		14	%		14	%					6	%
Operating margin:
2013		28.7	%		31.9	%					22.8	%
2012		26.4	%		32.5	%					23.6	%
Operating margin growth (1)		2.3	%		(0.6	%)					(0.8	%)

	Six Months Ended June 30,
(In millions)	Payments			Financial			Corporate and Other			Total
Total revenue:
2013	$	1,243		$	1,133		$	(26	)	$	2,350
2012		1,204			1,003			(23	)		2,184
Revenue growth	$	39		$	130		$	(3	)	$	166
Revenue growth percentage		3	%		13	%					8	%
Operating income:
2013	$	345		$	347		$	(208	)	$	484
2012		315			314			(133	)		496
Operating income growth	$	30		$	33		$	(75	)	$	(12	)
Operating income growth percentage		10	%		11	%					(2	%)
Operating margin:
2013		27.8	%		30.6	%					20.6	%
2012		26.2	%		31.3	%					22.7	%
Operating margin growth (1)		1.6	%		(0.7	%)					(2.1	%)

⁽¹⁾  Represents the percentage point growth or decline in operating margin.

21

Total Revenue

Total revenue increased $111 million, or 10%, in the second quarter of 2013 compared to 2012 and increased $166 million, or 8%, in the first six months of 2013 compared to 2012. Revenue growth was driven by both our Payments and Financial segments in 2013. Acquired revenue contributed $76 million of total revenue to the Financial segment in the second quarter of 2013 and $135 million in the first six months of 2013.

Revenue in our Payments segment during the second quarter and first six months of 2013 increased $30 million, or 5%, and $39 million, or 3%, respectively, compared to 2012. Payments segment revenue growth was primarily driven by our recurring revenue businesses as processing and services revenue increased $39 million, or 9%, and $57 million, or 7%, in the second quarter and first six months of 2013, respectively, over the prior year periods. This growth was primarily due to new clients and increased transaction volumes from existing clients in our card services business, biller solutions business, and digital channels business, which includes our online and mobile banking solutions, as well as growth in the second quarter associated with our bill payment business. Payments segment revenue growth was partially offset by approximately two percentage points and one percentage point in the second quarter and the first six months of 2013, respectively, due to lower postage pass-through revenue and a discount on a renewal of a bill payment contract.

Revenue in our Financial segment during the second quarter and first six months of 2013 increased $82 million, or 16%, and $130 million, or 13%, compared to 2012, driven by the acquisition of Open Solutions. Excluding the Open Solutions acquisition, revenue growth in the first six months of 2013 was flat compared to the prior year primarily due to the migration of an account processing client to its parent company’s account processing platform, which negatively impacted revenue growth by approximately two percentage points.

Total Expenses

Total expenses increased $95 million and $178 million, respectively, or 11%, in each of the second quarter and first six months of 2013 compared to 2012. Total expenses as a percentage of total revenue increased 80 basis points from 76.4% in the second quarter of 2012 to 77.2% in the second quarter of 2013 and increased 210 basis points from 77.3% in the first six months of 2012 to 79.4% in the first six months of 2013 due to merger and integration expenses totaling $16 million and $56 million in the second quarter and first six months of 2013, respectively, resulting from the acquisition of Open Solutions, which negatively impacted our operating margin by approximately 130 basis points and 240 basis points in the respective periods.

Cost of processing and services as a percentage of processing and services revenue decreased slightly to 51.5% in the second quarter of 2013 as compared to 52.1% in the second quarter of 2012 and to 52.8% in the first six months of 2013 as compared to 53.6% in the first six months of 2012. Cost of processing and services as a percentage of revenue was favorably impacted by increased operating leverage in our recurring revenue businesses.

Cost of product as a percentage of product revenue in the second quarter of 2013 increased slightly to 85.8% from 84.7% in the second quarter of 2012. Cost of product as a percentage of product revenue for the first six months of 2012 was 94.0% as compared to 82.2% in the first six months of 2012. The increase in cost of product as a percentage of product revenue in 2013 was primarily due to a $30 million non-cash impairment charge in the first quarter related to the replacement of our Acumen account processing platform with DNA, an Open Solutions account processing platform.

Selling, general and administrative expense as a percentage of total revenue was 20.5% in the second quarter of 2013 compared to 18.8% in the second quarter of 2012 and was 20.2% in the first six months of 2013 compared to 18.7% in the first six months of 2012. The increase in selling, general and administrative expense as a percentage of total revenue was primarily due to higher acquired intangible amortization and transaction expenses attributed to our acquisition of Open Solutions.

Operating Income and Operating Margin

Total operating income increased $16 million, or 6%, in the second quarter of 2013 compared to 2012 and decreased $12 million, or 2%, in the first six months of 2013 compared to 2012. Our total operating margin decreased 80 basis points to 22.8% in the second quarter of 2013 compared to the second quarter of 2012 and decreased 210 basis points to 20.6% in the first six months of 2013 compared to the same period in 2012. The decreases in operating margin are primarily due to our Corporate and Other segment, in which our operating loss increased $29 million in the second quarter of 2013 and $75 million in the first six months of 2013 compared

22

to the same periods in 2012, negatively impacting our operating margin by approximately 240 basis points and 320 basis points, respectively. The increases in the Corporate and Other segment’s operating losses were primarily attributable to merger and integration expenses totaling $16 million and $56 million in the second quarter and first six months of 2013, respectively, resulting from the acquisition of Open Solutions, including a $30 million non-cash impairment charge in the first quarter related to the replacement of our Acumen account processing platform with DNA. In addition, amortization expense, related to Open Solutions acquired intangible assets, increased $15 million and $23 million in the second quarter and first six months of 2013, respectively.

Operating income increased 14% in each of our Payments and Financial segments in the second quarter of 2013 as compared to the second quarter of 2012 and increased 10% and 11%, respectively, in the first six months of 2013 as compared to 2012.

Operating income in our Payments segment increased $22 million, or 14%, in the second quarter of 2013 as compared to 2012, and operating margin increased 230 basis points to 28.7% in the second quarter of 2013 compared to 2012. In the first six months of 2013 compared to 2012, operating income in the Payments segment increased $30 million, or 10%, and operating margin increased 160 basis points to 27.8%. The increases in operating income and margin in 2013 were primarily due to revenue growth and scale efficiencies in our card services and digital channels businesses, partially offset by the negative impact of a discount on a renewal of a bill payment contract.

Operating income in our Financial segment increased $23 million, or 14%, and $33 million, or 11%, in the second quarter and first six months of 2013, respectively, compared to 2012. Operating margin decreased 60 basis points to 31.9% in the second quarter of 2013 compared to 2012 and 70 basis points to 30.6% in the first six months of 2013 compared to 2012. The decreases in operating margin were primarily due to the migration of an account processing client to its parent company’s account processing platform and the impact of the Open Solutions acquisition.

Interest Expense

Interest expense decreased $3 million, or 7%, to $41 million in the second quarter of 2013 compared to 2012 and decreased $5 million, or 6%, to $82 million in the first six months of 2013 compared to 2012. The decrease was primarily due to lower average interest rates in 2013 compared to 2012, partially offset by additional debt assumed in connection with the acquisition of Open Solutions.

Interest and Investment Income

Interest and investment income decreased $6 million in the second quarter and first six months of 2013 as compared to 2012 due to a gain recognized on a sale of an investment in the prior year period.

Income Tax Provision

Our effective income tax rates for continuing operations were 35.0% and 34.6% in the second quarter and first six months of 2013, respectively, and were 27.5% and 30.6% in the second quarter and first six months of 2012, respectively. The lower effective tax rates in 2012 were primarily due to increased deductions resulting from federal tax planning initiatives including the associated discrete tax benefits.

Net Income Per Share – Diluted from Continuing Operations

Net income per share-diluted from continuing operations was $1.13 and $1.17 in the second quarter of 2013 and 2012, respectively, and was $2.00 and $2.11 in the first six months of 2013 and 2012, respectively. Amortization of acquisition-related intangible assets reduced net income per share-diluted from continuing operations by $0.27 per share and $0.19 per share in the second quarters of 2013 and 2012, respectively, and $0.50 per share and $0.37 per share for the first six months of 2013 and 2012, respectively. In addition, net income per share was negatively impacted by merger and integration costs in the second quarter and first six months of 2013 by $0.08 per share and $0.27 per share, respectively.

23

Liquidity and Capital Resources

General

Our primary liquidity needs are: (i) to fund normal operating expenses; (ii) to meet the interest and principal requirements of our outstanding indebtedness; and (iii) to fund capital expenditures and operating lease payments. We believe these needs will be satisfied using cash flow generated by our operations, our cash and cash equivalents of $320 million at June 30, 2013 and available borrowings under our revolving credit facility.

	Six Months Ended June 30,						Increase (Decrease)
(In millions)	2013			2012			$			%
Income from continuing operations	$	269		$	294		$	(25	)
Depreciation and amortization		200			173			27
Share-based compensation		26			25			1
Deferred income taxes		(26	)		(2	)		(24	)
Non-cash impairment charge		30			—			30
Dividend from unconsolidated affiliate		6			—			6
Net changes in working capital and other		(108	)		(110	)		2
Operating cash flow	$	397		$	380		$	17			4	%
Capital expenditures	$	110		$	101		$	9			9	%

Our net cash provided by operating activities, or operating cash flow, was $397 million in the first six months of 2013, an increase of 4% compared with $380 million in 2012. This increase was primarily due to lower tax payments in the first six months of 2013 as compared to the prior year, offset by payments for merger and integration costs and assumed liabilities on the opening balance sheet resulting from the acquisition of Open Solutions. Our current policy is to use our operating cash flow primarily to repay debt and fund capital expenditures, acquisitions and share repurchases, rather than to pay dividends. Our capital expenditures in the first six months of 2013 increased by $9 million, or 9%, compared to the same period in 2012, and were approximately 5% of our total revenue in each period.

On January 14, 2013, we acquired Open Solutions for a cash purchase price of $16 million, net of cash acquired. In the second quarter of 2013, we received a $122 million cash dividend from StoneRiver Group, L.P., a joint venture in which we own a 49% interest. A portion, or $6 million, of the dividend represents a return on our investment and was reported as cash flows from operating activities. Additionally, during the first six months of 2013, we purchased $254 million of our common stock. As of June 30, 2013, we had approximately 2.4 million shares remaining under our current share repurchase authorization. Shares repurchased are generally held for issuance in connection with our equity plans.

24

Long-Term Debt

	June 30,		December 31,
(In millions)	2013		2012
Revolving credit facility	$	1,004	$	280
3.125% senior notes due 2015		300		300
3.125% senior notes due 2016		600		600
6.8% senior notes due 2017		500		500
4.625% senior notes due 2020		449		449
4.75% senior notes due 2021		399		399
3.5% senior notes due 2022		697		697
Other borrowings		4		5
Long-term debt (including current maturities)	$	3,953	$	3,230

At June 30, 2013, our long-term debt consisted primarily of $2.95 billion of senior notes and $1.0 billion in borrowings under the revolving credit facility. Interest on our senior notes is paid semi-annually. During the first six months of 2013, we were in compliance with all financial debt covenants.

Revolving Credit Facility

We maintain a $2.0 billion revolving credit facility with a syndicate of banks. Borrowings under this facility bear interest at a variable rate, 1.3% at June 30, 2013, based on LIBOR plus a specified margin or the bank’s base rate. There are no significant commitment fees and no compensating balance requirements. The facility expires on August 1, 2017 and contains various restrictions and covenants that require us, among other things, to (i) limit our consolidated indebtedness as of the end of each fiscal quarter to no more than three and one-half times consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments during the period of four fiscal quarters then ended, and (ii) maintain consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments of at least three times consolidated interest expense as of the end of each fiscal quarter for the period of four fiscal quarters then ended. As of June 30, 2013, borrowings outstanding under the facility approximated $1.0 billion, primarily related to the funding of assumed debt from the acquisition of Open Solutions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The quantitative and qualitative disclosures about market risk required by this item are incorporated by reference to Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2012 and have not materially changed since December 31, 2012.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934 (the “Exchange Act”), our management, with the participation of our chief executive officer and chief financial officer, evaluated the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of June 30, 2013.

Changes in internal control over financial reporting

During the quarter ended June 30, 2013, we continued, as part of our ongoing integration activities related to our acquisition of Open Solutions, to incorporate our process-level and company-wide controls and procedures into this recently acquired business. We also continued to implement a billing module within our SAP enterprise resource planning (“ERP”) system, which we expect to further integrate our systems and improve the overall efficiency of our billing and collection processes. We expect the implementation of this module to continue in phases over the next few years, which we believe will reduce implementation risk. The design and documentation of our internal control processes and procedures related to billing will be appropriately modified to supplement

25

existing internal controls over financial reporting. As with any new technology, this module, and the internal controls over financial reporting included in the related processes, will be tested for effectiveness prior to and concurrent with the implementation. We believe the implementation of the billing module within our ERP system will further strengthen the related internal controls due to enhanced automation and integration of processes. There were no other changes in internal control over financial reporting that occurred during the quarter ended June 30, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the normal course of business, we and our subsidiaries are named as defendants in lawsuits in which claims are asserted against us. In the opinion of management, the liabilities, if any, which may ultimately result from such lawsuits are not expected to have a material adverse effect on our financial statements.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below sets forth information with respect to purchases made by or on behalf of the company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) of shares of our common stock during the quarter ended June 30, 2013:

Period	Total Number of Shares Purchased		Average Price Paid per  Share		Total Number of Shares  Purchased as Part of Publicly Announced Plans or Programs (1)		Maximum Number of Shares that May Yet Be Purchased Under  the Plans or Programs (1)
April 1-30, 2013		34,000	$	84.89		34,000		4,722,000
May 1-31, 2013		950,000		89.03		950,000		3,772,000
June 1-30, 2013		1,347,000		86.84		1,347,000		2,425,000
Total		2,331,000				2,331,000

⁽¹⁾  On February 22, 2012, our board of directors authorized the purchase of up to ten million shares of our common stock. This authorization does not expire.

ITEM 6. EXHIBITS

The exhibits listed in the accompanying exhibit index are filed as part of this Quarterly Report on Form 10-Q.

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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.

	FISERV, INC.
Date: July 31, 2013	By:	/s/ Thomas J. Hirsch
		Thomas J. Hirsch Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary

Exhibit Index

Exhibit Number	Exhibit Description
10.1	Amended and Restated Fiserv, Inc. 2007 Omnibus Incentive Plan (1)
10.2	Key Executive Employment and Severance Agreement, dated June 4, 2013, between Fiserv, Inc. and Michael P. Gianoni (2)
10.3	Non-Employee Director Compensation Schedule
31.1	Certification of the Chief Executive Officer, dated July 31, 2013
31.2	Certification of the Chief Financial Officer, dated July 31, 2013
32	Certification of the Chief Executive Officer and Chief Financial Officer, dated July 31, 2013
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed with this quarterly report on Form 10-Q are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Income for the three and six months ended June 30, 2013 and 2012, (ii) the Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2013 and 2012, (iii) the Consolidated Balance Sheets at June 30, 2013 and December 31, 2012, (iv) the Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and 2012, and (v) Notes to Consolidated Financial Statements.

⁽¹⁾  Previously filed as Annex A to the Company’s definitive proxy statement on Schedule 14A filed on April 12, 2013 (File No. 0-14948) and incorporated herein by reference.

⁽²⁾  Form of agreement previously filed as an exhibit to the Company’s Current Report on Form 8-K filed on December 23, 2008 (File No. 0-14948) and incorporated herein by reference.

EX-10.3

Exhibit 10.3

NON-EMPLOYEE DIRECTOR COMPENSATION SCHEDULE

Overview

A summary of our annual non-employee director compensation is provided below:

Board Retainer	$	60,000
Chairman’s Retainer	$	100,000	(1)
Meeting Fees		No separate fees for board or committee meetings
Committee Retainer
Audit	$	12,000
Compensation	$	10,000
Nominating and Corporate Governance	$	10,000
Committee Chair Retainer
Audit	$	7,500
Compensation	$	7,500
Nominating and Corporate Governance	$	7,500
Equity Awards
Stock Options	$	70,000	(2)
Restricted Stock Units	$	70,000	(3)

⁽¹⁾  The Chairman’s retainer includes, and is not in addition to, the standard board retainer.

⁽²⁾  Upon being elected or continuing as a director, each non-employee director will receive such number of restricted stock units as is determined by dividing $70,000 by the closing price of our common stock on the grant date.

⁽³⁾  Upon being elected or continuing as a director, each non-employee director will receive a stock option having $70,000 in value. The number of shares for which the option may be exercised will be determined by dividing $70,000 by a binomial valuation of an option of one share of our common stock on the grant date.

Vesting

Stock options and restricted stock units will vest 100% on the earlier of (i) the first anniversary of the grant date or (ii) immediately prior to the first annual meeting of shareholders following the grant date.

Deferred Compensation Plan

We have a non-employee director deferred compensation plan. This plan allows directors to defer all or a part of their cash retainers until their service on the board ends. Based on the deferral election, the director is credited with a number of share units which are equivalent to shares of our common stock with no voting rights. Upon cessation of service on the board, the director receives a share of common stock for each share unit in a lump sum distribution.

Restricted stock units are hypothetical shares of our common stock that are settled in shares of common stock on a one-for-one basis upon vesting. Under the deferred compensation plan, directors may defer receipt of shares issuable pursuant to the restricted stock units until their service on the board ends.

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Jeffery W. Yabuki, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Fiserv, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2013	By:	/s/ Jeffery W. Yabuki
		Jeffery W. Yabuki
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Thomas J. Hirsch, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Fiserv, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2013	By:	/s/ Thomas J. Hirsch
		Thomas J. Hirsch
		Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Fiserv, Inc. (the “Company”) for the quarter ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jeffery W. Yabuki, as President and Chief Executive Officer of the Company, and Thomas J. Hirsch, as Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary of the Company, each hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Jeffery W. Yabuki
	Jeffery W. Yabuki
	July 31, 2013

By:	/s/ Thomas J. Hirsch
	Thomas J. Hirsch
	July 31, 2013

XML

Long-Term Debt

6 Months Ended

Jun. 30, 2013

Long-Term Debt

10. Long-Term Debt

The Company maintains a $2.0 billion revolving credit facility with a syndicate of banks. Borrowings under this facility bear interest at a variable rate, 1.3% at June 30, 2013, based on LIBOR plus a specified margin or the bank’s base rate. There are no significant commitment fees and no compensating balance requirements. The facility expires on August 1, 2017 and contains various restrictions and covenants that require the Company, among other things, to (i) limit its consolidated indebtedness as of the end of each fiscal quarter to no more than three and one-half times consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments during the period of four fiscal quarters then ended, and (ii) maintain consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments of at least three times consolidated interest expense as of the end of each fiscal quarter for the period of four fiscal quarters then ended. During the first six months of 2013, the Company was in compliance with all financial debt covenants. As of June 30, 2013, borrowings outstanding under the facility approximated $1.0 billion, primarily related to the funding of assumed debt from the acquisition of Open Solutions.

XML

Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Fair market value adjustment on cash flow hedges, tax	$ 1	$ 9	$ 1	$ 7
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, tax	$ 1	$ 5	$ 3	$ 9

XML

Acquisition

6 Months Ended

Jun. 30, 2013

Acquisition

3. Acquisition

On January 14, 2013, the Company acquired Open Solutions Inc. (“Open Solutions”), a provider of account processing technology for financial institutions, for a cash purchase price of $55 million. The Company also assumed approximately $960 million of debt in connection with the acquisition. This acquisition advances the Company’s go-to-market strategies by adding a number of products and services and by expanding the number of account processing clients to which the Company can provide a broad array of its add-on solutions.

The preliminary allocation of purchase price recorded for Open Solutions is as follows:

(In millions)
Cash and cash equivalents	$	39
Trade accounts receivable		41
Prepaid expenses and other current assets		41
Intangible assets		571
Goodwill		531
Other long-term assets		18
Accounts payable and other current liabilities		(140	)
Long-term debt, less current maturities		(952	)
Other long-term liabilities		(94	)
Total cash purchase price	$	55

The cash purchase price and repayment of assumed debt were funded utilizing a combination of available cash and existing availability under the Company’s revolving credit facility. The amounts attributed to goodwill and intangible assets are based on preliminary valuations and are subject to final adjustment. The preliminary purchase price allocation resulted in goodwill, included within the Financial Institution Services (“Financial”) segment, of approximately $531 million, of which $161 million is expected to be deductible for tax purposes. Such goodwill is primarily attributable to synergies with the products and services that Open Solutions provides and the anticipated value of selling the Company’s products and services to Open Solutions’ existing client base. The preliminary values allocated to intangible assets are as follows:

(In millions)	Gross Carrying Amount		Weighted- Average Useful Life
Customer related intangible assets	$	460		20 years
Acquired software and technology		105		7 years
Trade name		6		10 years
	$	571

The results of operations for Open Solutions, including $76 million and $135 million of revenue, respectively, during the three and six months ended June 30, 2013, have been included within the Financial segment from the date of acquisition. As a result of the acquisition, the Company has incurred certain merger and integration costs, including a $30 million non-cash impairment charge related to the Company’s decision to replace its existing Acumen^® account processing platform with DNA^TM, an Open Solutions account processing platform. The Acumen platform costs were recorded as capitalized software and included in the Financial segment assets. The related impairment charge was recorded in cost of product within the Corporate and Other segment in the first quarter of 2013 as this charge is excluded from the Company’s measure of the Financial segment’s operating performance.

The following unaudited supplemental pro forma information presents the Company’s results of operations as though the acquisition of Open Solutions had occurred on January 1, 2012. This information is presented for informational purposes and is not necessarily indicative of the Company’s operating results which would have occurred had the acquisition been consummated as of that date. The pro forma information presented below does not include anticipated synergies, the impact of purchase accounting adjustments or certain other expected benefits of the acquisition and should not be used as a predictive measure of our future results of operations.

	(Pro Forma Unaudited)
(In millions, except per share data)	Three Months Ended June 30, 2012		Six Months Ended June 30, 2012
Total revenue	$	1,173	$	2,355
Net income	$	164	$	302
Net income per share—basic	$	1.20	$	2.20
Net income per share—diluted	$	1.19	$	2.17

XML

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Intangible Assets by Class

Intangible assets consisted of the following:

(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
June 30, 2013
Customer related intangible assets	$	2,155	$	600	$	1,555
Acquired software and technology		483		255		228
Trade names		120		33		87
Capitalized software development costs		653		393		260
Purchased software		308		229		79
Total	$	3,719	$	1,510	$	2,209
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
December 31, 2012
Customer related intangible assets	$	1,695	$	534	$	1,161
Acquired software and technology		378		222		156
Trade names		114		29		85
Capitalized software development costs		667		398		269
Purchased software		325		252		73
Total	$	3,179	$	1,435	$	1,744

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Loss

11. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, net of income taxes, consisted of the following:

(In millions)	Cash Flow Hedges			Foreign Currency Translation			Other			Total
Balance at December 31, 2012	$	(57	)	$	(1	)	$	(2	)	$	(60	)
Other comprehensive loss before reclassifications		(2	)		(10	)		—			(12	)
Amounts reclassified from accumulated other comprehensive loss		5			—			—			5
Net current-period other comprehensive (loss) income		3			(10	)		—			(7	)
Balance at June 30, 2013	$	(54	)	$	(11	)	$	(2	)	$	(67	)

Based on the amounts recorded in accumulated other comprehensive loss at June 30, 2013, the Company estimates that it will recognize approximately $14 million in interest expense during the next twelve months related to settled interest rate hedge contracts.

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Business Segment Information - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Goodwill	$ 5,231	$ 4,705
Payments
Segment Reporting Information [Line Items]
Goodwill	3,400	3,400
Financial
Segment Reporting Information [Line Items]
Goodwill	$ 1,800	$ 1,300

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Shares Used in Computing Net Income Per Share - Additional Information (Detail) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Line Items]
Stock options excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive	0.9	1.7	0.7	1.5

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Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2013

Schedule Of Supplemental Cash Flow Information

Supplemental cash flow information was as follows:

	Six Months Ended June 30,
(In millions)	2013		2012
Interest paid, including on assumed debt	$	91	$	84
Income taxes paid from continuing operations		135		169
Liabilities assumed in acquisition of business		1,186		—
Treasury stock purchases settled after the balance sheet date		17		—

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, net of income taxes, consisted of the following:

(In millions)	Cash Flow Hedges			Foreign Currency Translation			Other			Total
Balance at December 31, 2012	$	(57	)	$	(1	)	$	(2	)	$	(60	)
Other comprehensive loss before reclassifications		(2	)		(10	)		—			(12	)
Amounts reclassified from accumulated other comprehensive loss		5			—			—			5
Net current-period other comprehensive (loss) income		3			(10	)		—			(7	)
Balance at June 30, 2013	$	(54	)	$	(11	)	$	(2	)	$	(67	)

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Schedule of Supplemental Cash Flow Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash Flow Supplemental Disclosures [Line Items]
Interest paid, including on assumed debt	$ 91	$ 84
Income taxes paid from continuing operations	135	169
Liabilities assumed in acquisition of business	1,186
Treasury stock purchases settled after the balance sheet date	$ 17

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Supplemental Pro Forma Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Business Acquisition [Line Items]
Total revenue	$ 1,173	$ 2,355
Net income	$ 164	$ 302
Net income per share-basic	$ 1.20	$ 2.20
Net income per share-diluted	$ 1.19	$ 2.17

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Intangible Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013
Acquired Intangible Assets
Intangible Assets [Line Items]
2013	$ 210
2014	200
2015	190
2016	150
2017	140
Capitalized and Purchased Software
Intangible Assets [Line Items]
2013	$ 110

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Condensed Consolidating Statement of Income and Comprehensive Income (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenue:
Processing and services	$ 1,015	$ 904	$ 1,981	$ 1,802
Product	183	183	369	382
Total revenue	1,198	1,087	2,350	2,184
Expenses:
Cost of processing and services	523	471	1,045	965
Cost of product	157	155	347	314
Selling, general and administrative	245	204	474	409
Total expenses	925	830	1,866	1,688
Operating income (loss)	273	257	484	496
Interest (expense) income, net	(41)	(38)	(82)	(81)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate	232	219	402	415
Income tax (provision) benefit	(81)	(60)	(139)	(127)
Income from investment in unconsolidated affiliate	1	3	6	6
Income from continuing operations	152	162	269	294
(Loss) income from discontinued operations, net of income taxes	(1)	(1)	(1)	(1)
Net income	151	161	268	293
Comprehensive income	146	150	261	298
Parent Company
Expenses:
Selling, general and administrative	31	26	59	49
Total expenses	31	26	59	49
Operating income (loss)	(31)	(26)	(59)	(49)
Interest (expense) income, net	(32)	(25)	(64)	(52)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate	(63)	(51)	(123)	(101)
Income tax (provision) benefit	26	38	52	63
Equity in earnings of consolidated affiliates	189	175	340	332
Income from continuing operations	152	162	269	294
(Loss) income from discontinued operations, net of income taxes	(1)	(1)	(1)	(1)
Net income	151	161	268	293
Comprehensive income	146	150	261	298
Guarantor Subsidiaries
Revenue:
Processing and services	724	640	1,437	1,286
Product	170	173	352	363
Total revenue	894	813	1,789	1,649
Expenses:
Cost of processing and services	356	338	740	685
Cost of product	152	153	339	312
Selling, general and administrative	160	123	304	246
Total expenses	668	614	1,383	1,243
Operating income (loss)	226	199	406	406
Interest (expense) income, net	(5)	(16)	(11)	(29)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate	221	183	395	377
Income tax (provision) benefit	(82)	(65)	(144)	(138)
Income from investment in unconsolidated affiliate	1	3	6	6
Income from continuing operations	140	121	257	245
(Loss) income from discontinued operations, net of income taxes		1		2
Net income	140	122	257	247
Comprehensive income	140	122	257	247
Non-Guarantor Subsidiaries
Revenue:
Processing and services	332	309	625	593
Product	29	23	51	50
Total revenue	361	332	676	643
Expenses:
Cost of processing and services	208	178	386	357
Cost of product	21	15	42	33
Selling, general and administrative	54	55	111	114
Total expenses	283	248	539	504
Operating income (loss)	78	84	137	139
Interest (expense) income, net	(4)	3	(7)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate	74	87	130	139
Income tax (provision) benefit	(25)	(33)	(47)	(52)
Income from continuing operations	49	54	83	87
Net income	49	54	83	87
Comprehensive income	44	50	73	88
Eliminations
Revenue:
Processing and services	(41)	(45)	(81)	(77)
Product	(16)	(13)	(34)	(31)
Total revenue	(57)	(58)	(115)	(108)
Expenses:
Cost of processing and services	(41)	(45)	(81)	(77)
Cost of product	(16)	(13)	(34)	(31)
Total expenses	(57)	(58)	(115)	(108)
Equity in earnings of consolidated affiliates	(189)	(175)	(340)	(332)
Income from continuing operations	(189)	(175)	(340)	(332)
(Loss) income from discontinued operations, net of income taxes		(1)		(2)
Net income	(189)	(176)	(340)	(334)
Comprehensive income	$ (184)	$ (172)	$ (330)	$ (335)

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Acquisition - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended			3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2013 Open Solutions Inc	Jun. 30, 2013 Open Solutions Inc	Jan. 14, 2013 Open Solutions Inc
Business Acquisition [Line Items]
Total cash purchase price							$ 55
Assumption of debt								960
Goodwill	5,231		5,231		4,705			531
Goodwill deductible for tax purposes								161
Revenue	1,198	1,087	2,350	2,184		76	135
Non cash impairment charge associated with merger and integration			$ 30				$ 30

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Long-Term Debt - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Debt Instrument [Line Items]
Revolving credit facility with a syndicate of banks	$ 2.0
Borrowing Outstanding	$ 1.0
Variable interest rate on revolving credit facility	1.30%
Revolving credit facility, expiration date	Aug. 01, 2017
Consolidated net debt to consolidated net earnings before interest, taxes depreciation and amortization and other adjustments ratio	3.5
Consolidated earnings before interest, taxes depreciation and amortization and other adjustments to interest expense ratio	3

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Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	June 30,		December 31,
(In millions)	2013		2012
Trade accounts payable	$	58	$	97
Settlement obligations		220		216
Client deposits		167		147
Accrued compensation and benefits		110		144
Other accrued expenses		206		117
Total	$	761	$	721

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Preferred stock, no par value
Preferred stock, shares authorized	25.0	25.0
Preferred stock, issued
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	450.0	450.0
Common stock, shares issued	197.9	197.9
Treasury stock, shares	66.8	64.5

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Principles of Consolidation

6 Months Ended

Jun. 30, 2013

Principles of Consolidation

1. Principles of Consolidation

The consolidated financial statements for the three-month and six-month periods ended June 30, 2013 and 2012 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The consolidated financial statements include the accounts of Fiserv, Inc. and all 100% owned subsidiaries. Investments in less than 50% owned affiliates in which the Company has significant influence but not control are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation.

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Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations

4. Discontinued Operations

On March 14, 2013, the Company sold its club solutions business (“Club Solutions”) for approximately $37 million in cash at closing. The assets, liabilities, results of operations and cash flows of Club Solutions, which were previously included within the Payments and Industry Products (“Payments”) segment, have been reported as discontinued operations in the accompanying consolidated financial statements for all periods presented. During 2013, Club Solutions revenue was $10 million, and the Company recognized a $2 million loss, net of income taxes, on the sale of the business. Club Solutions revenue was $11 million and $23 million, during the three and six months ended June 30, 2012, respectively. The assets of discontinued operations at December 31, 2012 primarily consist of certain intangible assets, including software, customer related intangibles and goodwill.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Measurements

2. Fair Value Measurements

The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in its consolidated financial statements on a recurring basis. Fair value represents the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability.

The fair values of cash equivalents, trade accounts receivable, settlement assets and obligations, and accounts payable approximate their respective carrying values due to the short period of time to maturity. The estimated fair value of total debt was $4.1 billion at June 30, 2013 and $3.5 billion at December 31, 2012 and was estimated using discounted cash flows based on the Company’s current incremental borrowing rates or quoted prices in active markets (level 2 of the fair value hierarchy).

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Investment in Unconsolidated Affiliate - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Schedule of Equity Method Investments [Line Items]
Cash dividend from affiliate	$ 122
Percentage of interest owned in affiliate	49.00%
Other long term liabilities	153	109
Investments in affiliate		78
Dividend from unconsolidated affiliate that represents a return on investment	6
Long Term Liabilities
Schedule of Equity Method Investments [Line Items]
Other long term liabilities	$ 38

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Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Segment Reporting Information

					Corporate
(In millions)	Payments		Financial		and Other			Total
Three Months Ended June 30, 2013
Processing and services revenue	$	477	$	541	$	(3	)	$	1,015
Product revenue		149		43		(9	)		183
Total revenue	$	626	$	584	$	(12	)	$	1,198
Operating income	$	179	$	186	$	(92	)	$	273
Three Months Ended June 30, 2012
Processing and services revenue	$	438	$	469	$	(3	)	$	904
Product revenue		158		33		(8	)		183
Total revenue	$	596	$	502	$	(11	)	$	1,087
Operating income	$	157	$	163	$	(63	)	$	257
Six Months Ended June 30, 2013
Processing and services revenue	$	930	$	1,057	$	(6	)	$	1,981
Product revenue		313		76		(20	)		369
Total revenue	$	1,243	$	1,133	$	(26	)	$	2,350
Operating income	$	345	$	347	$	(208	)	$	484
Six Months Ended June 30, 2012
Processing and services revenue	$	873	$	934	$	(5	)	$	1,802
Product revenue		331		69		(18	)		382
Total revenue	$	1,204	$	1,003	$	(23	)	$	2,184
Operating income	$	315	$	314	$	(133	)	$	496

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Preliminary Allocation of Purchase Price for Open Solutions (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Jan. 14, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Intangible assets		$ 571
Goodwill	5,231		4,705
Open Solutions Inc
Business Acquisition [Line Items]
Cash and cash equivalents		39
Trade accounts receivable		41
Prepaid expenses and other current assets		41
Intangible assets		571
Goodwill		531
Other long-term assets		18
Accounts payable and other current liabilities		(140)
Long-term debt, less current maturities		(952)
Other long-term liabilities		(94)
Total cash purchase price		$ 55

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Schedule of Earnings Per Share Basic and Diluted (Detail) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Line Items]
Weighted-average shares outstanding used for the calculation of net income per share-basic	132.5	136.1	133.0	137.4
Common stock equivalents	1.8	1.7	1.7	1.7
Total shares used for the calculation of net income per share-diluted	134.3	137.8	134.7	139.1

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Condensed Consolidating Balance Sheet (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 320	$ 358	$ 302	$ 337
Trade accounts receivable, net	691	661
Prepaid expenses and other current assets	443	391
Assets of discontinued operations		33
Total current assets	1,454	1,443
Intangible assets, net	2,209	1,744
Goodwill	5,231	4,705
Other long-term assets	540	605
Total assets	9,434	8,497
Liabilities and Shareholders' Equity
Accounts payable and accrued expenses	761	721
Current maturities of long-term debt	2	2
Deferred revenue	410	379
Liabilities of discontinued operations		3
Total current liabilities	1,173	1,105
Long-term debt	3,951	3,228
Other long-term liabilities	847	747
Total liabilities	5,971	5,080
Total shareholders' equity	3,463	3,417
Total liabilities and shareholders' equity	9,434	8,497
Parent Company
Assets
Cash and cash equivalents	32	85	14	73
Prepaid expenses and other current assets	60	45
Total current assets	92	130
Investments in consolidated affiliates	9,839	8,498
Intangible assets, net	22	22
Other long-term assets	50	55
Total assets	10,003	8,705
Liabilities and Shareholders' Equity
Accounts payable and accrued expenses	109	73
Total current liabilities	109	73
Long-term debt	3,948	3,223
Due to (from) consolidated affiliates	1,725	1,295
Other long-term liabilities	758	697
Total liabilities	6,540	5,288
Total shareholders' equity	3,463	3,417
Total liabilities and shareholders' equity	10,003	8,705
Guarantor Subsidiaries
Assets
Cash and cash equivalents	68	66	72	71
Trade accounts receivable, net	452	403
Prepaid expenses and other current assets	248	186
Assets of discontinued operations		33
Total current assets	768	688
Intangible assets, net	1,960	1,479
Goodwill	4,171	3,695
Other long-term assets	387	445
Total assets	7,286	6,307
Liabilities and Shareholders' Equity
Accounts payable and accrued expenses	456	417
Current maturities of long-term debt	2	2
Deferred revenue	254	213
Liabilities of discontinued operations		3
Total current liabilities	712	635
Long-term debt	3	4
Due to (from) consolidated affiliates	(1,408)	(988)
Other long-term liabilities	60	22
Total liabilities	(633)	(327)
Total shareholders' equity	7,919	6,634
Total liabilities and shareholders' equity	7,286	6,307
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	220	207	216	193
Trade accounts receivable, net	239	258
Prepaid expenses and other current assets	135	160
Total current assets	594	625
Intangible assets, net	227	243
Goodwill	1,060	1,010
Other long-term assets	103	105
Total assets	1,984	1,983
Liabilities and Shareholders' Equity
Accounts payable and accrued expenses	196	231
Deferred revenue	156	166
Total current liabilities	352	397
Long-term debt		1
Due to (from) consolidated affiliates	(317)	(307)
Other long-term liabilities	29	28
Total liabilities	64	119
Total shareholders' equity	1,920	1,864
Total liabilities and shareholders' equity	1,984	1,983
Eliminations
Assets
Investments in consolidated affiliates	(9,839)	(8,498)
Total assets	(9,839)	(8,498)
Liabilities and Shareholders' Equity
Total shareholders' equity	(9,839)	(8,498)
Total liabilities and shareholders' equity	$ (9,839)	$ (8,498)

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Accumulated Other Comprehensive Loss - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013
Other Comprehensive Income (Loss) [Line Items]
Estimated interest expense related to interest rate hedge contracts during the next twelve months	$ 14

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net income	$ 151	$ 161	$ 268	$ 293
Other comprehensive income (loss):
Fair market value adjustment on cash flow hedges, net of income taxes of $1 million, $9 million, $1 million and $7 million	(2)	(14)	(2)	(10)
Reclassification adjustment for net realized losses on cash flow hedges included in interest expense, net of income taxes of $1 million, $5 million, $3 million and $9 million	2	7	5	14
Foreign currency translation	(5)	(4)	(10)	1
Total other comprehensive income (loss)	(5)	(11)	(7)	5
Comprehensive income	$ 146	$ 150	$ 261	$ 298

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Intangible Assets

6 Months Ended

Jun. 30, 2013

Intangible Assets

7. Intangible Assets

Intangible assets consisted of the following:

(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
June 30, 2013
Customer related intangible assets	$	2,155	$	600	$	1,555
Acquired software and technology		483		255		228
Trade names		120		33		87
Capitalized software development costs		653		393		260
Purchased software		308		229		79
Total	$	3,719	$	1,510	$	2,209
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
December 31, 2012
Customer related intangible assets	$	1,695	$	534	$	1,161
Acquired software and technology		378		222		156
Trade names		114		29		85
Capitalized software development costs		667		398		269
Purchased software		325		252		73
Total	$	3,179	$	1,435	$	1,744

The Company estimates that annual amortization expense with respect to acquired intangible assets, which include customer related intangible assets, acquired software and technology, and trade names, will be approximately $210 million in 2013, approximately $200 million in 2014, approximately $190 million in 2015, approximately $150 million in 2016 and approximately $140 million in 2017. Annual amortization expense in 2013 with respect to capitalized and purchased software is estimated to approximate $110 million.

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 320	$ 358
Trade accounts receivable, net	691	661
Deferred income taxes	59	42
Prepaid expenses and other current assets	384	349
Assets of discontinued operations		33
Total current assets	1,454	1,443
Property and equipment, net	255	248
Intangible assets, net	2,209	1,744
Goodwill	5,231	4,705
Other long-term assets	285	357
Total assets	9,434	8,497
Liabilities and Shareholders' Equity
Accounts payable and accrued expenses	761	721
Current maturities of long-term debt	2	2
Deferred revenue	410	379
Liabilities of discontinued operations		3
Total current liabilities	1,173	1,105
Long-term debt	3,951	3,228
Deferred income taxes	694	638
Other long-term liabilities	153	109
Total liabilities	5,971	5,080
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value: 25.0 million shares authorized; none issued
Common stock, $0.01 par value: 450.0 million shares authorized; 197.9 million shares issued	2	2
Additional paid-in capital	821	804
Accumulated other comprehensive loss	(67)	(60)
Retained earnings	6,218	5,950
Treasury stock, at cost, 66.8 million and 64.5 million shares	(3,511)	(3,279)
Total shareholders' equity	3,463	3,417
Total liabilities and shareholders' equity	$ 9,434	$ 8,497

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Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenue:
Processing and services	$ 1,015	$ 904	$ 1,981	$ 1,802
Product	183	183	369	382
Total revenue	1,198	1,087	2,350	2,184
Expenses:
Cost of processing and services	523	471	1,045	965
Cost of product	157	155	347	314
Selling, general and administrative	245	204	474	409
Total expenses	925	830	1,866	1,688
Operating income	273	257	484	496
Interest expense	(41)	(44)	(82)	(87)
Interest and investment income		6		6
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate	232	219	402	415
Income tax provision	(81)	(60)	(139)	(127)
Income from investment in unconsolidated affiliate	1	3	6	6
Income from continuing operations	152	162	269	294
Loss from discontinued operations, net of income taxes	(1)	(1)	(1)	(1)
Net income	$ 151	$ 161	$ 268	$ 293
Net income (loss) per share-basic:
Continuing operations	$ 1.15	$ 1.19	$ 2.02	$ 2.13
Discontinued operations	$ (0.01)	$ (0.01)	$ (0.01)
Total	$ 1.14	$ 1.18	$ 2.02	$ 2.13
Net income (loss) per share-diluted:
Continuing operations	$ 1.13	$ 1.17	$ 2.00	$ 2.11
Discontinued operations	$ (0.01)	$ (0.01)	$ (0.01)
Total	$ 1.13	$ 1.17	$ 1.99	$ 2.10
Shares used in computing net income (loss) per share:
Basic	132.5	136.1	133.0	137.4
Diluted	134.3	137.8	134.7	139.1

XML

Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$ 397	$ 380
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs	(110)	(101)
Payment for acquisition of business, net of cash acquired	(16)
Other investing activities	116	4
Net cash (used in) provided by investing activities from continuing operations	(10)	(97)
Cash flows from financing activities:
Proceeds from long-term debt	1,210	156
Repayments of long-term debt	(1,444)	(138)
Issuance of treasury stock	24	52
Purchases of treasury stock	(254)	(396)
Other financing activities	7	7
Net cash used in financing activities from continuing operations	(457)	(319)
Net change in cash and cash equivalents from continuing operations	(70)	(36)
Net cash flows from (to) discontinued operations	32	1
Beginning balance	358	337
Ending balance	320	302
Parent Company
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	(42)	(70)
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs	(2)	(3)
Payment for acquisition of business, net of cash acquired	(55)
Other investing activities	508	335
Net cash (used in) provided by investing activities from continuing operations	451	332
Cash flows from financing activities:
Proceeds from long-term debt	1,210	156
Repayments of long-term debt	(1,444)	(136)
Issuance of treasury stock	24	52
Purchases of treasury stock	(254)	(396)
Other financing activities	6	6
Net cash used in financing activities from continuing operations	(458)	(318)
Net change in cash and cash equivalents from continuing operations	(49)	(56)
Net cash flows from (to) discontinued operations	(4)	(3)
Beginning balance	85	73
Ending balance	32	14
Guarantor Subsidiaries
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	324	330
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs	(79)	(72)
Payment for acquisition of business, net of cash acquired	39
Other investing activities	120	(2)
Net cash (used in) provided by investing activities from continuing operations	80	(74)
Cash flows from financing activities:
Repayments of long-term debt		(2)
Other financing activities	(438)	(257)
Net cash used in financing activities from continuing operations	(438)	(259)
Net change in cash and cash equivalents from continuing operations	(34)	(3)
Net cash flows from (to) discontinued operations	36	4
Beginning balance	66	71
Ending balance	68	72
Non-Guarantor Subsidiaries
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	115	120
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs	(29)	(26)
Other investing activities	(5)	6
Net cash (used in) provided by investing activities from continuing operations	(34)	(20)
Cash flows from financing activities:
Other financing activities	(68)	(77)
Net cash used in financing activities from continuing operations	(68)	(77)
Net change in cash and cash equivalents from continuing operations	13	23
Beginning balance	207	193
Ending balance	220	216
Eliminations
Cash flows from investing activities:
Other investing activities	(507)	(335)
Net cash (used in) provided by investing activities from continuing operations	(507)	(335)
Cash flows from financing activities:
Other financing activities	507	335
Net cash used in financing activities from continuing operations	$ 507	$ 335

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Subsidiary Guarantors of Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2013

Condensed Consolidating Statement of Income and Comprehensive Income

Condensed Consolidating Statement of Income and Comprehensive Income

Three Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	724		$	332		$	(41	)	$	1,015
Product		—			170			29			(16	)		183
Total revenue		—			894			361			(57	)		1,198
Expenses:
Cost of processing and services		—			356			208			(41	)		523
Cost of product		—			152			21			(16	)		157
Selling, general and administrative		31			160			54			—			245
Total expenses		31			668			283			(57	)		925
Operating income (loss)		(31	)		226			78			—			273
Interest expense, net		(32	)		(5	)		(4	)		—			(41	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(63	)		221			74			—			232
Income tax (provision) benefit		26			(82	)		(25	)		—			(81	)
Income from investment in unconsolidated affiliate		—			1			—			—			1
Equity in earnings of consolidated affiliates		189			—			—			(189	)		—
Income from continuing operations		152			140			49			(189	)		152
Loss from discontinued operations, net of income taxes		(1	)		—			—			—			(1	)
Net income	$	151		$	140		$	49		$	(189	)	$	151
Comprehensive income	$	146		$	140		$	44		$	(184	)	$	146

Condensed Consolidating Statement of Income and Comprehensive Income

Three Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	640		$	309		$	(45	)	$	904
Product		—			173			23			(13	)		183
Total revenue		—			813			332			(58	)		1,087
Expenses:
Cost of processing and services		—			338			178			(45	)		471
Cost of product		—			153			15			(13	)		155
Selling, general and administrative		26			123			55			—			204
Total expenses		26			614			248			(58	)		830
Operating income (loss)		(26	)		199			84			—			257
Interest (expense) income, net		(25	)		(16	)		3			—			(38	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(51	)		183			87			—			219
Income tax (provision) benefit		38			(65	)		(33	)		—			(60	)
Income from investment in unconsolidated affiliate		—			3			—			—			3
Equity in earnings of consolidated affiliates		175			—			—			(175	)		—
Income from continuing operations		162			121			54			(175	)		162
(Loss) income from discontinued operations, net of income taxes		(1	)		1			—			(1	)		(1	)
Net income	$	161		$	122		$	54		$	(176	)	$	161
Comprehensive income	$	150		$	122		$	50		$	(172	)	$	150

Condensed Consolidating Statement of Income and Comprehensive Income

Six Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	1,437		$	625		$	(81	)	$	1,981
Product		—			352			51			(34	)		369
Total revenue		—			1,789			676			(115	)		2,350
Expenses:
Cost of processing and services		—			740			386			(81	)		1,045
Cost of product		—			339			42			(34	)		347
Selling, general and administrative		59			304			111			—			474
Total expenses		59			1,383			539			(115	)		1,866
Operating income (loss)		(59	)		406			137			—			484
Interest expense, net		(64	)		(11	)		(7	)		—			(82	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(123	)		395			130			—			402
Income tax (provision) benefit		52			(144	)		(47	)		—			(139	)
Income from investment in unconsolidated affiliate		—			6			—			—			6
Equity in earnings of consolidated affiliates		340			—			—			(340	)		—
Income from continuing operations		269			257			83			(340	)		269
Loss from discontinued operations, net of income taxes		(1	)		—			—			—			(1	)
Net income	$	268		$	257		$	83		$	(340	)	$	268
Comprehensive income	$	261		$	257		$	73		$	(330	)	$	261

Condensed Consolidating Statement of Income and Comprehensive Income

Six Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	1,286		$	593		$	(77	)	$	1,802
Product		—			363			50			(31	)		382
Total revenue		—			1,649			643			(108	)		2,184
Expenses:
Cost of processing and services		—			685			357			(77	)		965
Cost of product		—			312			33			(31	)		314
Selling, general and administrative		49			246			114			—			409
Total expenses		49			1,243			504			(108	)		1,688
Operating income (loss)		(49	)		406			139			—			496
Interest expense, net		(52	)		(29	)		—			—			(81	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(101	)		377			139			—			415
Income tax (provision) benefit		63			(138	)		(52	)		—			(127	)
Income from investment in unconsolidated affiliate		—			6			—			—			6
Equity in earnings of consolidated affiliates		332			—			—			(332	)		—
Income from continuing operations		294			245			87			(332	)		294
(Loss) income from discontinued operations, net of income taxes		(1	)		2			—			(2	)		(1	)
Net income	$	293		$	247		$	87		$	(334	)	$	293
Comprehensive income	$	298		$	247		$	88		$	(335	)	$	298

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

June 30, 2013

(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	32	$	68		$	220		$	—		$	320
Trade accounts receivable, net		—		452			239			—			691
Prepaid expenses and other current assets		60		248			135			—			443
Total current assets		92		768			594			—			1,454
Investments in consolidated affiliates		9,839		—			—			(9,839	)		—
Intangible assets, net		22		1,960			227			—			2,209
Goodwill		—		4,171			1,060			—			5,231
Other long-term assets		50		387			103			—			540
Total assets	$	10,003	$	7,286		$	1,984		$	(9,839	)	$	9,434
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	109	$	456		$	196		$	—		$	761
Current maturities of long-term debt		—		2			—			—			2
Deferred revenue		—		254			156			—			410
Total current liabilities		109		712			352			—			1,173
Long-term debt		3,948		3			—			—			3,951
Due to (from) consolidated affiliates		1,725		(1,408	)		(317	)		—			—
Other long-term liabilities		758		60			29			—			847
Total liabilities		6,540		(633	)		64			—			5,971
Total shareholders’ equity		3,463		7,919			1,920			(9,839	)		3,463
Total liabilities and shareholders’ equity	$	10,003	$	7,286		$	1,984		$	(9,839	)	$	9,434

Condensed Consolidating Balance Sheet

December 31, 2012

(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	85	$	66		$	207		$	—		$	358
Trade accounts receivable, net		—		403			258			—			661
Prepaid expenses and other current assets		45		186			160			—			391
Assets of discontinued operations		—		33			—			—			33
Total current assets		130		688			625			—			1,443
Investments in consolidated affiliates		8,498		—			—			(8,498	)		—
Intangible assets, net		22		1,479			243			—			1,744
Goodwill		—		3,695			1,010			—			4,705
Other long-term assets		55		445			105			—			605
Total assets	$	8,705	$	6,307		$	1,983		$	(8,498	)	$	8,497
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	73	$	417		$	231		$	—		$	721
Current maturities of long-term debt		—		2			—			—			2
Deferred revenue		—		213			166			—			379
Liabilities of discontinued operations		—		3			—			—			3
Total current liabilities		73		635			397			—			1,105
Long-term debt		3,223		4			1			—			3,228
Due to (from) consolidated affiliates		1,295		(988	)		(307	)		—			—
Other long-term liabilities		697		22			28			—			747
Total liabilities		5,288		(327	)		119			—			5,080
Total shareholders’ equity		3,417		6,634			1,864			(8,498	)		3,417
Total liabilities and shareholders’ equity	$	8,705	$	6,307		$	1,983		$	(8,498	)	$	8,497

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(42	)	$	324		$	115		$	—		$	397
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(2	)		(79	)		(29	)		—			(110	)
Payment for acquisition of business, net of cash acquired		(55	)		39			—			—			(16	)
Other investing activities		508			120			(5	)		(507	)		116
Net cash (used in) provided by investing activities from continuing operations		451			80			(34	)		(507	)		(10	)
Cash flows from financing activities:
Proceeds from long-term debt		1,210			—			—			—			1,210
Repayments of long-term debt		(1,444	)		—			—			—			(1,444	)
Issuance of treasury stock		24			—			—			—			24
Purchases of treasury stock		(254	)		—			—			—			(254	)
Other financing activities		6			(438	)		(68	)		507			7
Net cash used in financing activities from continuing operations		(458	)		(438	)		(68	)		507			(457	)
Net change in cash and cash equivalents from continuing operations		(49	)		(34	)		13			—			(70	)
Net cash flows from (to) discontinued operations		(4	)		36			—			—			32
Beginning balance		85			66			207			—			358
Ending balance	$	32		$	68		$	220		$	—		$	320

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(70	)	$	330		$	120		$	—		$	380
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(3	)		(72	)		(26	)		—			(101	)
Other investing activities		335			(2	)		6			(335	)		4
Net cash (used in) provided by investing activities from continuing operations		332			(74	)		(20	)		(335	)		(97	)
Cash flows from financing activities:
Proceeds from long-term debt		156			—			—			—			156
Repayments of long-term debt		(136	)		(2	)		—			—			(138	)
Issuance of treasury stock		52			—			—			—			52
Purchases of treasury stock		(396	)		—			—			—			(396	)
Other financing activities		6			(257	)		(77	)		335			7
Net cash used in financing activities from continuing operations		(318	)		(259	)		(77	)		335			(319	)
Net change in cash and cash equivalents from continuing operations		(56	)		(3	)		23			—			(36	)
Net cash flows from (to) discontinued operations		(3	)		4			—			—			1
Beginning balance		73			71			193			—			337
Ending balance	$	14		$	72		$	216		$	—		$	302

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Shares Used in Computing Net Income Per Share (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Earnings Per Share Basic and Diluted

The computation of shares used in calculating diluted net income per common share is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2013		2012		2013		2012
Weighted-average shares outstanding used for the calculation of net income per share—basic		132.5		136.1		133.0		137.4
Common stock equivalents		1.8		1.7		1.7		1.7
Total shares used for the calculation of net income per share—diluted		134.3		137.8		134.7		139.1

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Accumulated Other Comprehensive Loss (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Cash Flow Hedges	Jun. 30, 2013 Foreign Currency Translation	Jun. 30, 2013 Other	Dec. 31, 2012 Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning of the period			$ (60)		$ (57)	$ (1)	$ (2)	$ (2)
Other comprehensive loss before reclassifications			(12)		(2)	(10)
Amounts reclassified from accumulated other comprehensive loss			5		5
Total other comprehensive income (loss)	(5)	(11)	(7)	5	3	(10)
Balance at End of the period	$ (67)		$ (67)		$ (54)	$ (11)	$ (2)	$ (2)

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Schedule of Intangible Assets by Class (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,719	$ 3,179
Accumulated Amortization	1,510	1,435
Net Book Value	2,209	1,744
Customer Related Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,155	1,695
Accumulated Amortization	600	534
Net Book Value	1,555	1,161
Acquired Software and Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	483	378
Accumulated Amortization	255	222
Net Book Value	228	156
Trade Names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	120	114
Accumulated Amortization	33	29
Net Book Value	87	85
Capitalized Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	653	667
Accumulated Amortization	393	398
Net Book Value	260	269
Purchased software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	308	325
Accumulated Amortization	229	252
Net Book Value	$ 79	$ 73

XML

Discontinued Operations - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash Received from sale Of discontinued operations		$ 37
Total revenue	11	10	23
Loss on sale, net of income taxes		$ 2

XML

Share Based Compensation - Additional Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 12	$ 11	$ 26	$ 25
Share-based awards, stock options, granted			1.0	1.0
Share-based awards, restricted stock units, granted			0.4	0.4
Share-based awards, stock options, weighted-average estimated fair values			$ 25.31	$ 21.58
Share-based awards, restricted stock units, weighted-average estimated fair values			$ 81.24	$ 65.33
Share-based awards, stock options, exercised			0.4	1.0

XML

Shares Used in Computing Net Income Per Share

6 Months Ended

Jun. 30, 2013

Shares Used in Computing Net Income Per Share

6. Shares Used in Computing Net Income Per Share

The computation of shares used in calculating diluted net income per common share is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2013		2012		2013		2012
Weighted-average shares outstanding used for the calculation of net income per share—basic		132.5		136.1		133.0		137.4
Common stock equivalents		1.8		1.7		1.7		1.7
Total shares used for the calculation of net income per share—diluted		134.3		137.8		134.7		139.1

For the three months ended June 30, 2013 and 2012, stock options for 0.9 million and 1.7 million shares, respectively, were excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive. For the six months ended June 30, 2013 and 2012, stock options for 0.7 million and 1.5 million shares, respectively, were excluded from the calculation of diluted weighted-average outstanding shares because their impact was anti-dilutive.

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Fair Value Measurements - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of total debt	$ 4.1	$ 3.5

XML

Schedule of Accounts Payable and Accrued Expenses (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Accounts Payable and Accrued Liabilities [Line Items]
Trade accounts payable	$ 58	$ 97
Settlement obligations	220	216
Client deposits	167	147
Accrued compensation and benefits	110	144
Other accrued expenses	206	117
Total	$ 761	$ 721

XML

Accounts Payable and Accrued Expenses

6 Months Ended

Jun. 30, 2013

Accounts Payable and Accrued Expenses

9. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	June 30,		December 31,
(In millions)	2013		2012
Trade accounts payable	$	58	$	97
Settlement obligations		220		216
Client deposits		167		147
Accrued compensation and benefits		110		144
Other accrued expenses		206		117
Total	$	761	$	721

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Share-Based Compensation

6 Months Ended

Jun. 30, 2013

Share-Based Compensation

5. Share-Based Compensation

The Company recognized $12 million and $26 million of share-based compensation expense during the three and six months ended June 30, 2013, respectively, and $11 million and $25 million of share-based compensation expense during the three and six months ended June 30, 2012, respectively. The Company’s annual grant of share-based awards generally occurs in the first quarter. During the six months ended June 30, 2013, the Company granted 1.0 million stock options and 0.4 million restricted stock units at weighted-average estimated fair values of $25.31 and $81.24, respectively. During the six months ended June 30, 2012, the Company granted 1.0 million stock options and 0.4 million restricted stock units at weighted-average estimated fair values of $21.58 and $65.33, respectively. During the six months ended June 30, 2013 and 2012, stock options to purchase 0.4 million shares and 1.0 million shares, respectively, were exercised.

XML

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net income	$ 268	$ 293
Adjustment for discontinued operations	1	1
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and other amortization	97	93
Amortization of acquisition-related intangible assets	103	80
Share-based compensation	26	25
Deferred income taxes	(26)	(2)
Non-cash impairment charge	30
Dividend from unconsolidated affiliate	6
Other non-cash items	(12)	(16)
Changes in assets and liabilities, net of effects from acquisitions:
Trade accounts receivable	13	61
Prepaid expenses and other assets	(45)	(42)
Accounts payable and other liabilities	(40)	(88)
Deferred revenue	(24)	(25)
Net cash provided by operating activities from continuing operations	397	380
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs	(110)	(101)
Payment for acquisition of business, net of cash acquired	(16)
Dividend from unconsolidated affiliate	116
Net proceeds from sale of investments		6
Other investing activities		(2)
Net cash (used in) provided by investing activities from continuing operations	(10)	(97)
Cash flows from financing activities:
Proceeds from long-term debt	1,210	156
Repayments of long-term debt	(1,444)	(138)
Issuance of treasury stock	24	52
Purchases of treasury stock	(254)	(396)
Other financing activities	7	7
Net cash used in financing activities from continuing operations	(457)	(319)
Net change in cash and cash equivalents from continuing operations	(70)	(36)
Net cash flows from discontinued operations	32	1
Beginning balance	358	337
Ending balance	320	302
Discontinued operations cash flow information:
Net cash (used in) provided by operating activities	(3)	2
Net cash provided by (used in) investing activities	35	(1)
Net change in cash and cash equivalents from discontinued operations	32	1
Net cash flows to continuing operations	(32)	(1)
Beginning balance-discontinued operations
Ending balance-discontinued operations

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Schedule of Segment Reporting Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Processing and services revenue	$ 1,015	$ 904	$ 1,981	$ 1,802
Product revenue	183	183	369	382
Total revenue	1,198	1,087	2,350	2,184
Operating income	273	257	484	496
Payments
Segment Reporting Information [Line Items]
Processing and services revenue	477	438	930	873
Product revenue	149	158	313	331
Total revenue	626	596	1,243	1,204
Operating income	179	157	345	315
Financial
Segment Reporting Information [Line Items]
Processing and services revenue	541	469	1,057	934
Product revenue	43	33	76	69
Total revenue	584	502	1,133	1,003
Operating income	186	163	347	314
Corporate and Other
Segment Reporting Information [Line Items]
Processing and services revenue	(3)	(3)	(6)	(5)
Product revenue	(9)	(8)	(20)	(18)
Total revenue	(12)	(11)	(26)	(23)
Operating income	$ (92)	$ (63)	$ (208)	$ (133)

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Preliminary Values Allocated to Intangible Assets (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended
	Jan. 31, 2013	Jan. 14, 2013
Acquired Finite-Lived Intangible Assets
Intangible assets		$ 571
Customer Related Intangible Assets
Acquired Finite-Lived Intangible Assets
Intangible assets		460
Intangible Assets, Weighted average useful life	20 years
Acquired Software and Technology
Acquired Finite-Lived Intangible Assets
Intangible assets		105
Intangible Assets, Weighted average useful life	7 years
Trade Names
Acquired Finite-Lived Intangible Assets
Intangible assets		$ 6
Intangible Assets, Weighted average useful life	10 years

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Cash Flow Information

6 Months Ended

Jun. 30, 2013

Cash Flow Information

12. Cash Flow Information

Supplemental cash flow information was as follows:

	Six Months Ended June 30,
(In millions)	2013		2012
Interest paid, including on assumed debt	$	91	$	84
Income taxes paid from continuing operations		135		169
Liabilities assumed in acquisition of business		1,186		—
Treasury stock purchases settled after the balance sheet date		17		—

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Investment in Unconsolidated Affiliate

6 Months Ended

Jun. 30, 2013

Investment in Unconsolidated Affiliate

8. Investment in Unconsolidated Affiliate

The Company owns a 49% interest in StoneRiver Group, L.P. (“StoneRiver”), which is accounted for as an equity method investment, and reports its share of StoneRiver’s net income as income from investment in unconsolidated affiliate. The Company’s investment in StoneRiver was $78 million at December 31, 2012 and was reported within other long-term assets in the consolidated balance sheet. In the second quarter of 2013, the Company received a $122 million cash dividend from StoneRiver, distributed from excess proceeds from a recent recapitalization transaction. The dividend exceeded the Company’s investment carrying amount, resulting in the reduction of its investment balance to zero, with the excess cash dividend of $38 million recorded within other long-term liabilities in the consolidated balance sheet at June 30, 2013. Although the Company does not maintain a legal obligation to fund any of the liabilities or potential operating deficits of StoneRiver, it intends to provide future financial support, based upon its continuing assessment of various factors, should the need arise. A portion, or $6 million, of the dividend represents a return on the Company’s investment and was reported as cash flows from operating activities.

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Acquisition (Tables)

6 Months Ended

Jun. 30, 2013

Preliminary Allocation of Purchase Price for Open Solutions

The preliminary allocation of purchase price recorded for Open Solutions is as follows:

(In millions)
Cash and cash equivalents	$	39
Trade accounts receivable		41
Prepaid expenses and other current assets		41
Intangible assets		571
Goodwill		531
Other long-term assets		18
Accounts payable and other current liabilities		(140	)
Long-term debt, less current maturities		(952	)
Other long-term liabilities		(94	)
Total cash purchase price	$	55

Preliminary Values Allocated to Intangible Asset

The preliminary values allocated to intangible assets are as follows:

(In millions)	Gross Carrying Amount		Weighted- Average Useful Life
Customer related intangible assets	$	460		20 years
Acquired software and technology		105		7 years
Trade name		6		10 years
	$	571

Supplemental Pro Forma Information

The following unaudited supplemental pro forma information presents the Company’s results of operations as though the acquisition of Open Solutions had occurred on January 1, 2012. This information is presented for informational purposes and is not necessarily indicative of the Company’s operating results which would have occurred had the acquisition been consummated as of that date. The pro forma information presented below does not include anticipated synergies, the impact of purchase accounting adjustments or certain other expected benefits of the acquisition and should not be used as a predictive measure of our future results of operations.

	(Pro Forma Unaudited)
(In millions, except per share data)	Three Months Ended June 30, 2012		Six Months Ended June 30, 2012
Total revenue	$	1,173	$	2,355
Net income	$	164	$	302
Net income per share—basic	$	1.20	$	2.20
Net income per share—diluted	$	1.19	$	2.17

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Business Segment Information

6 Months Ended

Jun. 30, 2013

Business Segment Information

13. Business Segment Information

The Company’s operations are comprised of the Payments segment and the Financial segment. The Payments segment primarily provides electronic bill payment and presentment services, debit and other card-based payment products and services, internet and mobile banking software and services, and other electronic payments software and services, including account-to-account transfers and person-to-person payments. The businesses in this segment also provide investment account processing services for separately managed accounts, card and print personalization services, and fraud and risk management products and services. The Financial segment provides banks, thrifts and credit unions with account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services that support numerous types of financial transactions. The Corporate and Other segment primarily consists of unallocated corporate expenses, amortization of acquisition-related intangible assets, intercompany eliminations and other costs that are not considered when management evaluates segment performance.

					Corporate
(In millions)	Payments		Financial		and Other			Total
Three Months Ended June 30, 2013
Processing and services revenue	$	477	$	541	$	(3	)	$	1,015
Product revenue		149		43		(9	)		183
Total revenue	$	626	$	584	$	(12	)	$	1,198
Operating income	$	179	$	186	$	(92	)	$	273
Three Months Ended June 30, 2012
Processing and services revenue	$	438	$	469	$	(3	)	$	904
Product revenue		158		33		(8	)		183
Total revenue	$	596	$	502	$	(11	)	$	1,087
Operating income	$	157	$	163	$	(63	)	$	257
Six Months Ended June 30, 2013
Processing and services revenue	$	930	$	1,057	$	(6	)	$	1,981
Product revenue		313		76		(20	)		369
Total revenue	$	1,243	$	1,133	$	(26	)	$	2,350
Operating income	$	345	$	347	$	(208	)	$	484
Six Months Ended June 30, 2012
Processing and services revenue	$	873	$	934	$	(5	)	$	1,802
Product revenue		331		69		(18	)		382
Total revenue	$	1,204	$	1,003	$	(23	)	$	2,184
Operating income	$	315	$	314	$	(133	)	$	496

Goodwill in the Payments segment was $3.4 billion as of June 30, 2013 and December 31, 2012. Goodwill in the Financial segment was $1.8 billion and $1.3 billion as of June 30, 2013 and December 31, 2012, respectively.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Jul. 25, 2013
Document Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	FISV
Entity Registrant Name	FISERV INC
Entity Central Index Key	0000798354
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		130,090,406

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Subsidiary Guarantors of Long-Term Debt

6 Months Ended

Jun. 30, 2013

Subsidiary Guarantors of Long-Term Debt

14. Subsidiary Guarantors of Long-Term Debt

Certain of the Company’s 100% owned domestic subsidiaries (“Guarantor Subsidiaries”) jointly and severally, and fully and unconditionally, guarantee the Company’s indebtedness under its revolving credit facility and senior notes. Under the indentures governing the senior notes, a guarantee of a Guarantor Subsidiary will terminate upon the following customary circumstances: the sale of such Guarantor Subsidiary if such sale complies with the indenture; if such Guarantor Subsidiary no longer guarantees certain other indebtedness of the Company, including as a result of the release of the Guarantor Subsidiaries if Standard & Poor’s and Moody’s Investors Service, Inc. increase the Company’s credit rating to A- and A3, respectively; or the defeasance or discharge of the indenture. The following condensed consolidating financial information is presented on the equity method and reflects summarized financial information for: (a) the Company; (b) the Guarantor Subsidiaries on a combined basis; and (c) the Company’s non-guarantor subsidiaries on a combined basis. The following condensed consolidating financial information reflects the reporting of Club Solutions as a discontinued operation for all periods presented.

Condensed Consolidating Statement of Income and Comprehensive Income

Three Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	724		$	332		$	(41	)	$	1,015
Product		—			170			29			(16	)		183
Total revenue		—			894			361			(57	)		1,198
Expenses:
Cost of processing and services		—			356			208			(41	)		523
Cost of product		—			152			21			(16	)		157
Selling, general and administrative		31			160			54			—			245
Total expenses		31			668			283			(57	)		925
Operating income (loss)		(31	)		226			78			—			273
Interest expense, net		(32	)		(5	)		(4	)		—			(41	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(63	)		221			74			—			232
Income tax (provision) benefit		26			(82	)		(25	)		—			(81	)
Income from investment in unconsolidated affiliate		—			1			—			—			1
Equity in earnings of consolidated affiliates		189			—			—			(189	)		—
Income from continuing operations		152			140			49			(189	)		152
Loss from discontinued operations, net of income taxes		(1	)		—			—			—			(1	)
Net income	$	151		$	140		$	49		$	(189	)	$	151
Comprehensive income	$	146		$	140		$	44		$	(184	)	$	146

Condensed Consolidating Statement of Income and Comprehensive Income

Three Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	640		$	309		$	(45	)	$	904
Product		—			173			23			(13	)		183
Total revenue		—			813			332			(58	)		1,087
Expenses:
Cost of processing and services		—			338			178			(45	)		471
Cost of product		—			153			15			(13	)		155
Selling, general and administrative		26			123			55			—			204
Total expenses		26			614			248			(58	)		830
Operating income (loss)		(26	)		199			84			—			257
Interest (expense) income, net		(25	)		(16	)		3			—			(38	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(51	)		183			87			—			219
Income tax (provision) benefit		38			(65	)		(33	)		—			(60	)
Income from investment in unconsolidated affiliate		—			3			—			—			3
Equity in earnings of consolidated affiliates		175			—			—			(175	)		—
Income from continuing operations		162			121			54			(175	)		162
(Loss) income from discontinued operations, net of income taxes		(1	)		1			—			(1	)		(1	)
Net income	$	161		$	122		$	54		$	(176	)	$	161
Comprehensive income	$	150		$	122		$	50		$	(172	)	$	150

Condensed Consolidating Statement of Income and Comprehensive Income

Six Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	1,437		$	625		$	(81	)	$	1,981
Product		—			352			51			(34	)		369
Total revenue		—			1,789			676			(115	)		2,350
Expenses:
Cost of processing and services		—			740			386			(81	)		1,045
Cost of product		—			339			42			(34	)		347
Selling, general and administrative		59			304			111			—			474
Total expenses		59			1,383			539			(115	)		1,866
Operating income (loss)		(59	)		406			137			—			484
Interest expense, net		(64	)		(11	)		(7	)		—			(82	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(123	)		395			130			—			402
Income tax (provision) benefit		52			(144	)		(47	)		—			(139	)
Income from investment in unconsolidated affiliate		—			6			—			—			6
Equity in earnings of consolidated affiliates		340			—			—			(340	)		—
Income from continuing operations		269			257			83			(340	)		269
Loss from discontinued operations, net of income taxes		(1	)		—			—			—			(1	)
Net income	$	268		$	257		$	83		$	(340	)	$	268
Comprehensive income	$	261		$	257		$	73		$	(330	)	$	261

Condensed Consolidating Statement of Income and Comprehensive Income

Six Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	1,286		$	593		$	(77	)	$	1,802
Product		—			363			50			(31	)		382
Total revenue		—			1,649			643			(108	)		2,184
Expenses:
Cost of processing and services		—			685			357			(77	)		965
Cost of product		—			312			33			(31	)		314
Selling, general and administrative		49			246			114			—			409
Total expenses		49			1,243			504			(108	)		1,688
Operating income (loss)		(49	)		406			139			—			496
Interest expense, net		(52	)		(29	)		—			—			(81	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(101	)		377			139			—			415
Income tax (provision) benefit		63			(138	)		(52	)		—			(127	)
Income from investment in unconsolidated affiliate		—			6			—			—			6
Equity in earnings of consolidated affiliates		332			—			—			(332	)		—
Income from continuing operations		294			245			87			(332	)		294
(Loss) income from discontinued operations, net of income taxes		(1	)		2			—			(2	)		(1	)
Net income	$	293		$	247		$	87		$	(334	)	$	293
Comprehensive income	$	298		$	247		$	88		$	(335	)	$	298

Condensed Consolidating Balance Sheet

June 30, 2013

(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	32	$	68		$	220		$	—		$	320
Trade accounts receivable, net		—		452			239			—			691
Prepaid expenses and other current assets		60		248			135			—			443
Total current assets		92		768			594			—			1,454
Investments in consolidated affiliates		9,839		—			—			(9,839	)		—
Intangible assets, net		22		1,960			227			—			2,209
Goodwill		—		4,171			1,060			—			5,231
Other long-term assets		50		387			103			—			540
Total assets	$	10,003	$	7,286		$	1,984		$	(9,839	)	$	9,434
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	109	$	456		$	196		$	—		$	761
Current maturities of long-term debt		—		2			—			—			2
Deferred revenue		—		254			156			—			410
Total current liabilities		109		712			352			—			1,173
Long-term debt		3,948		3			—			—			3,951
Due to (from) consolidated affiliates		1,725		(1,408	)		(317	)		—			—
Other long-term liabilities		758		60			29			—			847
Total liabilities		6,540		(633	)		64			—			5,971
Total shareholders’ equity		3,463		7,919			1,920			(9,839	)		3,463
Total liabilities and shareholders’ equity	$	10,003	$	7,286		$	1,984		$	(9,839	)	$	9,434

Condensed Consolidating Balance Sheet

December 31, 2012

(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	85	$	66		$	207		$	—		$	358
Trade accounts receivable, net		—		403			258			—			661
Prepaid expenses and other current assets		45		186			160			—			391
Assets of discontinued operations		—		33			—			—			33
Total current assets		130		688			625			—			1,443
Investments in consolidated affiliates		8,498		—			—			(8,498	)		—
Intangible assets, net		22		1,479			243			—			1,744
Goodwill		—		3,695			1,010			—			4,705
Other long-term assets		55		445			105			—			605
Total assets	$	8,705	$	6,307		$	1,983		$	(8,498	)	$	8,497
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	73	$	417		$	231		$	—		$	721
Current maturities of long-term debt		—		2			—			—			2
Deferred revenue		—		213			166			—			379
Liabilities of discontinued operations		—		3			—			—			3
Total current liabilities		73		635			397			—			1,105
Long-term debt		3,223		4			1			—			3,228
Due to (from) consolidated affiliates		1,295		(988	)		(307	)		—			—
Other long-term liabilities		697		22			28			—			747
Total liabilities		5,288		(327	)		119			—			5,080
Total shareholders’ equity		3,417		6,634			1,864			(8,498	)		3,417
Total liabilities and shareholders’ equity	$	8,705	$	6,307		$	1,983		$	(8,498	)	$	8,497

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(42	)	$	324		$	115		$	—		$	397
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(2	)		(79	)		(29	)		—			(110	)
Payment for acquisition of business, net of cash acquired		(55	)		39			—			—			(16	)
Other investing activities		508			120			(5	)		(507	)		116
Net cash (used in) provided by investing activities from continuing operations		451			80			(34	)		(507	)		(10	)
Cash flows from financing activities:
Proceeds from long-term debt		1,210			—			—			—			1,210
Repayments of long-term debt		(1,444	)		—			—			—			(1,444	)
Issuance of treasury stock		24			—			—			—			24
Purchases of treasury stock		(254	)		—			—			—			(254	)
Other financing activities		6			(438	)		(68	)		507			7
Net cash used in financing activities from continuing operations		(458	)		(438	)		(68	)		507			(457	)
Net change in cash and cash equivalents from continuing operations		(49	)		(34	)		13			—			(70	)
Net cash flows from (to) discontinued operations		(4	)		36			—			—			32
Beginning balance		85			66			207			—			358
Ending balance	$	32		$	68		$	220		$	—		$	320

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(70	)	$	330		$	120		$	—		$	380
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(3	)		(72	)		(26	)		—			(101	)
Other investing activities		335			(2	)		6			(335	)		4
Net cash (used in) provided by investing activities from continuing operations		332			(74	)		(20	)		(335	)		(97	)
Cash flows from financing activities:
Proceeds from long-term debt		156			—			—			—			156
Repayments of long-term debt		(136	)		(2	)		—			—			(138	)
Issuance of treasury stock		52			—			—			—			52
Purchases of treasury stock		(396	)		—			—			—			(396	)
Other financing activities		6			(257	)		(77	)		335			7
Net cash used in financing activities from continuing operations		(318	)		(259	)		(77	)		335			(319	)
Net change in cash and cash equivalents from continuing operations		(56	)		(3	)		23			—			(36	)
Net cash flows from (to) discontinued operations		(3	)		4			—			—			1
Beginning balance		73			71			193			—			337
Ending balance	$	14		$	72		$	216		$	—		$	302