Fiserv (FISV) 10-K risk factor changes: FY2020 vs FY2019

Our principal competitors include other vendors [added: and providers] of financial services technology and payment systems, data processing affiliates of large companies, processing centers owned [removed: and] [added: or] operated as user cooperatives, financial institutions, independent sales organizations (“ISOs”), independent software vendors, [removed: and] payments [removed: companies.][added: companies and payment network operators.]

As a result, we [removed: often] [added: may] compete against our existing or potential clients’ in-house capabilities.

In addition, participants in the financial services, payments and technology industries may merge, create joint ventures or [removed: form] [added: engage in] other business [removed: combinations] [added: combinations, alliances and consolidations] that may strengthen their existing business services or create new payment services that compete with our services.

If we fail to keep pace with technological [removed: change] [added: change,] we could lose clients or have trouble attracting new clients, and our ability to grow may be limited.

For example, our ability to provide innovative point-of-sale technology to our merchant clients could have an impact on our merchant acquiring business, and new services and technologies that we develop may be impacted by industry-wide solutions and standards related to tokenization or other [removed: safety] [added: safety, fraud prevention] and security technologies.

In addition, the success of certain of our products and services rely, in part, on financial institutions, [removed: billers] [added: corporate] and other third parties to promote the use of our products and services by their customers.

Some of our competitors may offer more attractive [removed: fees] [added: prices, features] or other services that we do not offer, and some clients may desire to perform the services themselves.

Further, our small merchant business clients may [removed: exert pricing pressure] [added: seek reduced fees] due to pricing [removed: competition or other economic needs] [added: competition, their own financial condition,] or pressures [removed: such clients experience] from their customers.

Our business depends, in part, on our merchant [removed: and financial institution] relationships and alliances, and if we are unable to maintain these relationships and alliances, our business may be adversely affected.

[removed: If] [added: If, for example,] such [removed: financial institutions] [added: third parties] stop providing clearing services or limit our [removed: volumes] [added: volumes,] we would need to find other financial institutions to provide those services.

The loss of merchant relationships or alliance [removed: and financial institution] partners could negatively impact our business and have a material adverse effect on our results of operations and financial condition.

It is also possible that the larger financial institutions that result from mergers or consolidations could have [removed: greater leverage in negotiating] [added: an increased ability to negotiate] terms with us or could decide to perform in-house some or all of the services which we currently provide or could provide.

Under the card network rules, various federal, state and international laws, and client contracts, we are responsible for information provided to us by financial institutions, merchants, [removed: independent sales organizations,] [added: ISOs,] third-party service providers and others.

The confidentiality of such sensitive business information and personal consumer information residing on [removed: our systems is critical to our business.]

[added: An operational failure could] involve the hardware, software, data, networks or systems upon which we rely to deliver our services and could be caused by our actions, the actions of third parties or events over which we may have limited or no control.

Events that could cause operational failures include, but are not limited to, hardware and software defects or malfunctions, computer denial-of-service and other cyberattacks, human error, earthquakes, hurricanes, floods, fires, natural disasters, [added: pandemics,] power losses, disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks, computer viruses or other malware, or other events.

In addition, if we are unable to renew our existing contracts with key [removed: vendors,] [added: vendors and service providers,] we might not be able to replace the related product or service at all or at the same cost, which would negatively impact our results of operations.

Failure to effectively manage risk and prevent fraud, or otherwise effectively administer our chargeback responsibilities, would increase our chargeback [removed: liability, exposure] [added: liability or expose us] to fines or other liabilities.

Our business may be adversely affected by geopolitical and other risks associated with operations outside of the [removed: United States] [added: U.S.] and, as we continue to expand internationally, we may incur higher than anticipated costs and may become more susceptible to these risks.

[removed: A disruptive implementation of the] [added: The] United Kingdom’s [removed: exit] [added: withdrawal] from the European Union [added: Single Market and Customs Union as part of the process known as “Brexit”] could adversely affect our results of operations.

From time to time, card associations and debit networks, including the card networks which we own and operate, increase the processing and other fees (including what is commonly [removed: known as] [added: called] “interchange fees”) that they charge.

It is possible that competitive [added: and other] pressures will result in us absorbing a portion of such increases in the future, or [removed: result in us] not being able to increase our own fees, which would increase our operating costs, reduce our profit margin, limit our growth, and adversely affect our business, results of operations and financial condition.

If we [added: or third parties with whom we partner or contract] fail to comply with laws and regulations applicable to our business, including [removed: payments industry, cybersecurity] [added: state] and [added: federal payment, cybersecurity, consumer protection, trade and] data privacy [added: laws and] regulations, we could be exposed to litigation or regulatory proceedings, our client relationships and reputation could be harmed, and our ability to obtain new clients could be inhibited, which could have a material adverse impact on our business, results of operations and financial condition.

[removed: Furthermore, these] [added: These] laws and regulations are [removed: constantly changing] [added: subject to frequent change,] with new [removed: laws and] [added: laws,] regulations and interpretations thereof being implemented.

We operate our business around the world, including in certain foreign countries with developing economies where companies often engage in business practices that are prohibited by laws applicable to us, including the [removed: United States] [added: U.S.] Foreign Corrupt Practices Act and the U.K. Bribery Act.

These laws [removed: prohibit] [added: prohibit, among other things,] improper payments or offers of payments to foreign governments and their officials and political parties for the purpose of obtaining or retaining business.

We are also subject to certain economic and trade sanctions [removed: programs] [added: programs, including those] that are administered by [removed: the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”),] [added: OFAC,] which prohibit or restrict transactions to or [removed: from] [added: from,] or dealings [removed: with] [added: with,] specified countries, their governments, individuals and entities that are specially-designated nationals of those countries, narcotics traffickers and terrorists or terrorist organizations.

Similar anti-money laundering, counter terrorist financing and proceeds of crime laws apply to movements of currency and payments through electronic transactions and to dealings with persons specified in lists equivalent to OFAC lists in several other countries [removed: and require specific data retention obligations to be observed by intermediaries in the payment process.]

[removed: In connection with such licensure, we] [added: Certain of our subsidiaries] are [removed: required] [added: licensed as money transmitters and are required, among other matters,] to demonstrate and maintain certain levels of net worth and liquidity and to file periodic reports.

Our [removed: subsidiary,] Money Network Financial, [removed: LLC,] [added: LLC subsidiary] provides prepaid access for various open loop prepaid programs for which it is the program manager and therefore must meet the requirements of the Financial Crimes Enforcement Network.

[removed: Certain of our businesses are also subject to anti-money laundering regulations outside the U.S.] The [added: volume and] complexity of these regulations will continue to increase our cost of doing business.

Failure to comply with [removed: any of] these laws and [removed: regulations] [added: regulations,] or changes in [removed: this] [added: the] regulatory environment, including changing interpretations and the implementation of new, varying or more restrictive laws and regulations by federal, state, local or foreign governments, may result in significant financial penalties, reputational harm, [added: suspension] or [added: termination of our ability to provide certain services, or] change [added: or restrict] the manner in which we currently conduct [removed: some aspects of] our business, all of which could have a material adverse impact on our business, results of operations and financial condition.

As such, we are subject to card association and network rules that could subject us or our clients to a variety of fines or penalties that may be levied by the card associations or networks for certain acts or omissions by us, acquiring clients, processing clients [removed: and] [added: or] merchants.

In addition, we are subject to [added: Nacha] rules [removed: of] [added: relating to payment transactions processed by us using] the [removed: National Automated Clearing House Association (“NACHA”)] [added: ACH network and to various federal and state laws regarding such operations, including laws pertaining to electronic benefits transactions,] as well as the Payment Card Industry Data Security Standard enforced by the major card brands.

Since the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), a number of substantial regulations affecting the supervision and operation of the financial services industry within the [removed: United States] [added: U.S.] have been adopted, including those that establish the Consumer Financial Protection Bureau (“CFPB”).

For example, the General Data Protection Regulation [removed: (“GDPR”), which became effective in 2018,] [added: (“GDPR”)] extends the scope of the E.U. data protection law to all companies processing data of [removed: E.U. residents, regardless of the company’s location, subject to certain limitations.]

Our efforts to comply with [removed: GDPR] [added: E.U., U.K.] and other privacy and data protection laws (such as the [removed: new] California Consumer Privacy [added: Act, the California Privacy Rights] Act [removed: effective as of] [added: taking effect in] January [removed: 2020 and] [added: 2023,] the Brazilian General Data Protection Law [removed: effective as] [added: and South Africa’s Protection] of [removed: February 2020)] [added: Personal Information Act)] could involve substantial expenses, divert resources from other initiatives and projects and limit the services we are able to offer.

[added: In addition,] U.S. banking agencies have proposed enhanced cyber risk management standards that would apply to us and our financial institution clients and that would address cyber risk governance and management, management of internal and external dependencies, and incident response, cyber resilience and situational awareness.

Legislation and regulations on [removed: cybersecurity and] [added: cybersecurity,] data privacy [added: and data localization] may compel us to enhance or modify our systems, invest in new systems or alter our business practices or our policies on data governance and privacy.

We [removed: may] expose ourselves to additional liability [removed: if] [added: when] we agree to [added: defend or] indemnify our clients against third-party infringement claims.

Competitive and Business Risks

Operational and Security Risks

our systems is critical to our business.

In the event of operational failures or damage or disruption to our business due to these occurrences, we may not be able to successfully or quickly recover all of our critical business functions, assets and data through our business continuity program.

As a provider of payments solutions and other financial services, clients, regulators and others may require specific business continuity and disaster recovery plans including frequent testing of such plans.

Meeting these various requirements may require a significant investment of time and money.

We rely on third parties to provide products and services and if we are unable to obtain such products or services in the future or if these third parties fail to perform these services adequately, our business may be materially and adversely affected.

We rely on third parties we do not control to provide us with products and services, including payment card networks, acquiring processors, payment card issuers, financial institutions and the Automated Clearing House (“ACH”) network which transmit transaction data, process chargebacks and refunds, and perform clearing services in connection with our settlement activities.

In the event these third parties fail to provide these services adequately or in a timely manner, including as a result of errors in their systems or events beyond their control, or refuse to provide these services on

terms acceptable to us or at all, and we are not able to find timely suitable alternatives, we may no longer be able to provide certain services to customers, which could expose us and our clients to information security, financial, compliance and reputational risks, among others, and have a material adverse effect on our results of operations and financial condition.

COVID-19 Pandemic Risks

Our business has been, and is likely to continue to be, adversely impacted by the coronavirus (COVID-19) pandemic.

In response to the COVID-19 pandemic, the governments of many countries, states, cities and other geographic regions have taken actions to prevent the spread of COVID-19, such as imposing travel restrictions and bans, quarantines, social distancing guidelines, shelter-in-place or lock-down orders and other similar limitations.

These measures have, among other matters, negatively impacted consumer and business spending and, as a result, our operating performance, primarily within our merchant acquiring and payment-related businesses, which earn transaction-based fees.

The pandemic may continue to negatively impact transaction volumes, create economic uncertainty and financial market volatility, reduce economic activity, increase unemployment and cause a decline in consumer and business confidence, and could in the future further negatively impact the demand for our products and services, including merchant acquiring and payment processing.

Ultimately, the extent of the impact of the COVID-19 pandemic on our future operational and financial performance will depend on, among other matters, the duration and intensity of the pandemic; the level of success of global vaccination efforts; governmental and private sector responses to the pandemic and the impact of such responses on us; and the impact of the pandemic on our employees, clients, vendors, operations and sales, all of which are uncertain and cannot be predicted.

Additional factors that could negatively impact us include:

- Payment processing risks associated with disruptions to merchant activity and business failures including chargeback risk.

As an unprecedented number of merchants have been required to suspend or terminate their operations, there may be an increase in consumer chargebacks associated with processed transactions that merchant clients have submitted but have not fulfilled.

Merchants may be unable to fund these chargebacks, potentially resulting in losses to us;

- Client payment risks.

Clients may require additional time to pay us or fail to pay us at all, which could significantly increase the amount of accounts receivable and require us to record additional allowances for doubtful accounts.

If clients cease operations or file for bankruptcy protection, we may experience lower revenue and earnings and have greater exposure to future transaction declines;

- Increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption given increased online banking, e-commerce and other online activity;

- Disruption to our supply chain and third-party delivery service providers, including if the factories that manufacture our point-of-sale devices are temporarily closed or experience workforce shortages, if shipping services are interrupted or delayed, or if there are workforce shortages at our or third-party customer support, software development or technology hosting facilities;

- Increased risk of failing to meet client contractual obligations, including due to government orders or other restrictions that limit or prohibit us from providing client-facing services from regular service locations or the failure of our business continuity plans, which could cause loss of revenue, contractual penalties or potential legal disputes and associated costs; and

- Challenges to the availability and reliability of our solutions and services due to changes to normal operations, including the possibility of one or more clusters of COVID-19 cases occurring at our data, call or operations centers,

affecting our employees or affecting the systems or employees of our clients or other third parties on which we depend.

The COVID-19 pandemic has caused us to modify our business practices, including requiring a majority of our employees to work remotely, suspending non-essential travel, suspending all non-essential visitors to our facilities, disinfecting facilities and workspaces extensively and frequently, providing personal protective equipment to associates and requiring employees who must be present at our facilities to adhere to a variety of safety protocols.

We expect to continue such safety measures for the foreseeable future and may take further actions, or adapt these existing policies, as government authorities may require or recommend or as we may determine to be in the best interest of our employees, clients and vendors.

Such measures may impact our productivity or effectiveness, and there is no certainty that such measures will be sufficient to mitigate the risks posed by the COVID-19 pandemic, including the risks to the health of our employees.

Further, the ability of our employees to get to work has been disrupted across multiple locations, both with respect to their own offices and client sites, due among other things to government work and travel restrictions, including mandatory shutdowns.

In response to the COVID-19 pandemic, federal, state, local and foreign governments have issued emergency orders and a significant number of new laws and regulations in a short period of time.

These actions have impacted our current operations, including with respect to collection and consumer credit reporting activities, and we have experienced an increased volume of client support requests because many of the new laws impact our clients.

We could be required to expend additional resources and incur additional costs to address regulatory requirements applicable to us or our clients, and we may not have the capacity to implement necessary changes within the times prescribed by applicable laws.

There could be government initiatives to reduce or eliminate payments, costs or fees to merchants, or fees or other sources of revenue to financial institutions.

Regulations may be unclear, difficult to interpret or in conflict with other applicable regulations.

As a result, we may have to make judgments about how to comply with these new laws and regulators may not ultimately agree with how we implement applicable regulations.

Failure to comply with any of these laws and regulations, including changing interpretations and the implementation of new, varying or more restrictive laws and regulations by federal, state, local or foreign governments, may result in financial penalties, lawsuits, reputational harm or change the manner in which we or our clients currently conduct some aspects of our business.

In addition, during times of economic stress, there tends to be greater regulatory and governmental scrutiny of actions taken in response to such stress and an increased risk of both governmental and third-party litigation.

Risks Relating to our Business

In addition, we rely on various financial institutions to provide clearing services in connection with our settlement activities.

An operational failure could

Because we rely on third parties to provide products and services, we could be adversely impacted if they fail to fulfill their obligations.

Our business depends on third parties to provide us with certain products and services.

The failure of these vendors to properly perform their obligations in a timely manner could expose us and our clients to information security, financial, compliance and reputational risks, among others, and adversely affect our business and results of operations.

We are monitoring developments related to the implementation of the decision of the U.K. to exit the European Union (the “E.U.”), referred to as “Brexit”, which could, among other outcomes, disrupt the free movement of goods, services, data and people between the U.K. and the E.U., undermine bilateral cooperation in key policy areas, and significantly disrupt trade between the U.K. and the E.U. The effects of Brexit will depend in part on any agreements the U.K. makes to retain access to E.U. markets.

These agreements could potentially disrupt the markets we serve and the tax jurisdictions in which we operate and adversely change tax benefits or liabilities in these or other jurisdictions.

In addition, Brexit could lead to legal uncertainty and potentially divergent national laws and regulations as the U.K. determines which E.U. laws to replace or replicate.

Our failure to comply with applicable complex laws and regulations could harm our businesses and subject us to liability.

Certain of our subsidiaries are licensed as money transmitters in jurisdictions where such licensure is required.

In addition, our direct-to-consumer payments businesses, including our walk-in bill payment, online bill payment, digital disbursements and Popmoney person-to-person payment services, are subject to federal regulation in the U.S., including anti-money laundering regulations and certain restrictions on transactions to or from certain individuals or entities.

In addition, any violations of law may result in civil or criminal penalties against us and our officers, or the prohibition against us providing merchant acquiring, money transmitter services or prepaid programs in particular jurisdictions.

Several states also have adopted or proposed cybersecurity laws targeting these issues.

Effective patent, trademark, service mark, copyright

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cause the expense associated with such payments to increase.

We may be unable to integrate the business of First Data successfully or realize the anticipated benefits of the acquisition.

The combination of two independent businesses is complex, costly and time consuming, and we will be required to devote significant management attention and resources to integrating our business practices and operations.

Potential difficulties that we may encounter as part of the integration process include the following:

| • | the inability to successfully combine the business of First Data in a manner that permits us to achieve, on a timely basis, or at all, the enhanced revenue opportunities and cost savings and other benefits anticipated to result from the acquisition; |

| • | complexities associated with managing the combined businesses, including difficulty addressing possible differences in corporate cultures and management philosophies and the challenge of integrating complex systems, technology, networks and other assets of each of the companies in a seamless manner that minimizes any adverse impact on customers, suppliers, employees and other constituencies; and |

| • | potential unknown liabilities and unforeseen increased expenses or delays associated with the acquisition. |

We believe that the addition of First Data will complement our strategy by providing scale and revenue diversity, accelerate our growth strategy and enable us to have a strong global footprint.

However, achieving these goals requires growth of the revenue of the combined company and realization of the targeted cost synergies expected from the acquisition.

There can be no assurances that we will be successful or that we will realize the expected operating efficiencies, cost savings, revenue enhancements or other benefits currently anticipated from the acquisition.

The First Data transaction may result in a loss of customers, distributors, suppliers, vendors, landlords, joint venture partners or other business partners and may result in the termination of existing contracts.

Some of our customers, distributors, suppliers, vendors, landlords, joint venture partners and other business partners may terminate or scale back their current or prospective business relationships with us as a result of the acquisition.

Some customers may not wish to source a larger percentage of their needs from a single company or may feel that we are too closely aligned with one of their competitors.

If relationships with customers, distributors, suppliers, vendors, landlords, joint venture partners and other business partners are adversely affected by the transaction, or if we lose the benefits of our contracts, our business and financial performance could suffer.

[removed: | • | *Overview*.] This section contains background information on our company and the services and products that we provide, acquisitions and dispositions, our enterprise priorities, and the trends affecting our industry in order to provide context for management’s discussion and analysis of our financial condition and results of operations. [removed: |]

[removed: | • | *Critical accounting policies and estimates*.] This section contains a discussion of the accounting policies that we believe are important to our financial condition and results of operations and that require judgment and estimates on the part of management in their application. [removed: In addition, all of our significant accounting policies, including critical accounting policies, are summarized in Note 1 to the accompanying consolidated financial statements. |]

[removed: | • | *Results of operations*.] This section contains an analysis of our results of operations presented in the accompanying consolidated statements of income by comparing the results for the year ended December 31, [added: 2020 to the results for the year ended December 31,] 2019 [added: and by comparing the results for the year ended December 31, 2019] to the results [removed: |][added: for the year ended December 31, 2018.]

[removed: | • | *Liquidity and capital resources*.] This section provides an analysis of our cash flows and a discussion of our outstanding debt and commitments at December 31, [removed: 2019. |][added: 2020.]

We are a leading global provider of [added: payments and] financial services [removed: technology.][added: technology solutions.]

We serve clients around the globe, including banks, credit unions, other financial [removed: institutions] [added: institutions, corporate clients] and merchants.

Our operations are comprised of the [removed: First Data] [added: Merchant Acceptance (“Acceptance”)] segment, the [removed: Payments and Industry Products (“Payments”)] [added: Financial Technology (“Fintech”)] segment and the [removed: Financial Institution Services (“Financial”)] [added: Payments and Network (“Payments”)] segment.

On July 29, 2019, we [removed: completed the acquisition of] [added: acquired] First Data Corporation (“First Data”), a global leader in commerce-enabling technology and solutions for merchants, financial institutions and card issuers.

The businesses in the [removed: First Data] [added: Acceptance] segment are subject to a modest level of seasonality, with the first quarter [added: generally] experiencing the lowest level of revenue and the fourth quarter experiencing the highest level of revenue.

Our businesses in this segment also provide [removed: card and print personalization services, and fraud] [added: products] and [removed: risk] [added: services to corporate clients to facilitate the] management [removed: products] [added: of financial processes] and [removed: services.][added: transactions.]

The [removed: Financial] [added: Fintech] segment [removed: primarily] provides financial institutions [added: around the world] with [removed: account processing services, item processing] [added: technology solutions that enable them to process customer deposit] and [removed: source capture services,] loan [removed: origination and servicing products, cash management] [added: accounts] and [removed: consulting services,] [added: manage general ledger] and [added: central information files, as well as] other products and services that support numerous types of financial [removed: transactions.][added: transactions such as digital banking, financial and risk management, cash management, professional services and consulting, and item processing and source capture services.]

[removed: Our Payments and Financial segment operations are principally located in the U.S.] The majority of our revenue [removed: within these segments] is generated from recurring account- and transaction-based fees under multi-year contracts with high renewal rates.

Corporate and Other [removed: primarily] [added: supports the reportable segments described above, and] consists of [removed: intercompany eliminations,] amortization of acquisition-related intangible assets, unallocated corporate expenses [removed: of the combined company] and other activities that are not considered when [removed: management evaluates] [added: we evaluate] segment performance, such as gains [added: or losses] on sales of [removed: businesses and] [added: businesses, costs] associated [removed: transition services.][added: with acquisition and divestiture activity, and our Output Solutions postage reimbursements.]

On July 29, 2019, we [removed: completed the acquisition of] [added: acquired] First Data [removed: Corporation] for a total purchase price of $46.5 billion by acquiring 100% of the First Data stock that was issued and outstanding as of the date of acquisition.

[added: As a result of the] acquisition, First Data stockholders received 286 million shares of common stock of Fiserv, Inc., at an exchange ratio of 0.303 shares of Fiserv, Inc. for each share of First Data common stock, with cash paid in lieu of fractional shares.

We funded the transaction-related expenses and the repayment of First Data debt through a combination of available cash on-hand, proceeds from the issuance of senior [removed: notes] [added: notes,] and term loan and revolving credit facility borrowings.

The acquisition of First [removed: Data] [added: Data, included within the Acceptance and Payments segments,] increases our footprint as a global payments and financial technology provider by expanding the portfolio of services provided to financial institutions, corporate and merchant clients and consumers.

[removed: In] [added: On] October [added: 31,] 2018, we acquired the debit card processing, ATM Managed Services, and MoneyPass® surcharge-free network of Elan Financial Services, a unit of U.S. Bancorp, for approximately $659 million including post-closing working capital adjustments, estimated contingent consideration related to earn-out provisions and future payments under a transition services agreement in excess of estimated fair value.

Our [removed: 40%] retained interest [removed: will be] [added: is] accounted for as an equity method investment.

[removed: In] [added: On] March [added: 29,] 2018, we sold a 55% [added: controlling] interest of our Lending Solutions business, which was reported within the [removed: Financial] [added: Fintech] segment, retaining 45% ownership interests in two joint ventures (the “Lending Joint Ventures”).

In August 2019, the Sagent Auto, LLC joint venture, formerly known as Fiserv Automotive Solutions, LLC, completed a merger with a [removed: third-party,] [added: third party,] resulting in the dilution of our ownership interest to 31% in the [removed: new] combined entity, defi SOLUTIONS Group, [removed: LLC (“defi SOLUTIONS”).][added: LLC.]

In addition, in January 2018, we completed the sale of the retail voucher business acquired in our 2017 acquisition of Monitise for proceeds of £37 million ($50 [removed: million), and in May 2017, we sold our Australian item processing business, which was reported within the Financial segment, for approximately $17 million.][added: million).]

[removed: Our] [added: We received] pre-tax [removed: share] [added: proceeds] of [removed: the] [added: $578 million, net of related expenses, resulting in a pre-tax] gain [removed: was $26] [added: on the sale of $428] million, with [added: a] related tax expense of [removed: $9] [added: $112] million.

[removed: These strategic initiatives include] [added: We achieve this through] active portfolio management of our [removed: businesses,] [added: business,] enhancing the overall value of our existing client relationships, improving operational effectiveness, being disciplined in our allocation of capital, and differentiating our [added: products and services through innovation.]

[removed: During 2019, our key enterprise] [added: Our long-term] priorities [removed: were] [added: are] to (i) deliver integration value from the First Data acquisition; (ii) continue to build high-quality revenue while meeting our earnings goals; (iii) enhance client relationships with an emphasis on digital and payment solutions; and (iv) deliver innovation and integration which enables differentiated value for our clients.

To meet these expectations, payments companies are focused on modernizing their technology, [removed: utilizing] [added: expanding the use of] data and enhancing the customer experience.

[removed: Additionally,] [added: In addition,] there are numerous software-as-a-service (“SaaS”) solutions in the industry, many of which have chosen to integrate merchant acquiring within their software [removed: in] [added: as] a way to further monetize their client relationships.

[added: SaaS solutions that] integrate payments are often referred to as Independent Software [removed: Vendors, or ISVs,] [added: Vendors (or “ISVs”),] and we believe there are thousands of these potential distribution partnership opportunities available to us.

Goodwill and [removed: Acquired] Intangible Assets

Goodwill is tested for impairment at a reporting unit level, [removed: determined to be at an operating segment level or] [added: which is] one level [removed: below.][added: below our reportable segments.]

When reviewing goodwill for impairment, we consider the [added: prior test’s] amount of excess fair value over the carrying value of each reporting unit, the period of time since a reporting unit’s last quantitative test, the extent a reorganization or disposition changes the composition of one or more of our reporting units, and other factors to determine whether or not to first perform a qualitative test.

Examples of qualitative factors that we assess include our share price, our financial performance, market and competitive factors in our [removed: industry,] [added: industry] and other events specific to our reporting units.

The quantitative impairment test compares the [added: estimated] fair value of the reporting unit to its carrying value, and recognizes an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit.

Our most recent [added: annual] impairment assessment of our reporting units in the fourth quarter of [removed: 2019] [added: 2020] determined that our goodwill [added: of $36 billion] was not impaired as the estimated fair values of the respective reporting units [removed: substantially] exceeded the carrying [removed: values except for the reporting units related to the acquisition of First Data.][added: values.]

We have no accumulated goodwill impairment through December 31, [removed: 2019.][added: 2020.]

We review [removed: acquired] intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable.

Recoverability [added: of intangible assets] is assessed by comparing the carrying amount of the asset to [added: either] the undiscounted future cash flows expected to be generated by the [added: asset or the net realizable value of the asset, depending on the type of] asset.

Measurement of any impairment loss is based on [added: estimated fair value.]

Processing and services revenue is generated from account- and transaction-based fees for data processing, [removed: transaction processing,] merchant [removed: acquiring] [added: transaction processing] and [removed: e-commerce,] [added: acquiring,] electronic billing and payment services, electronic funds transfer and [removed: debit] [added: debit/credit] processing services; consulting and professional services; and software maintenance for ongoing client support.

We recognize processing and services revenues in the period in which the specific service is performed unless they are not deemed distinct from other goods or [removed: services] [added: services,] in which [added: case] revenue would then be recognized as control is transferred of the combined goods and services.

- *Overview*.

- *Critical accounting policies and estimates*.

In addition, all of our significant accounting policies, including critical accounting policies, are summarized in Note 1 to the accompanying consolidated financial statements.

- *Results of operations*.

- *Liquidity and capital resources*.

We provide account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale (“POS”) solution.

Effective in the first quarter of 2020, we realigned our reportable segments to reflect our new management structure and organizational responsibilities (“Segment Realignment”) following the acquisition of First Data.

The consolidated financial statements include the financial results of First Data from the date of acquisition.

Segment results for the years ended December 31, 2019 and 2018 have been restated to reflect the Segment Realignment.

The Acceptance segment provides a wide range of commerce-enabling solutions to merchants of all sizes and types around the world.

These solutions include POS merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products and services; CaratSM, our omnichannel commerce solution; and our cloud-based Clover POS platform, which includes a marketplace for proprietary and third-party business applications.

The Payments segment primarily provides financial institutions and corporate clients with the products and services required to process digital payment transactions, including card transactions such as debit, credit and prepaid card processing and services, a range of network services, security and fraud protection products, card production and print services.

In addition, our businesses in this segment offer non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products.

Corporate and Other also includes the historical results of our Investment Services business, of which we sold a 60% controlling interest in February 2020, as well as certain transition services revenue associated with various dispositions.

On March 2, 2020, we acquired MerchantPro Express LLC (“MerchantPro”), an independent sales organization (“ISO”) that provides processing services, POS equipment and merchant cash advances to businesses across the United States.

MerchantPro is included within the Acceptance segment and further expands our merchant services business.

On March 18, 2020, we acquired Bypass Mobile, LLC (“Bypass”), an independent software vendor and innovator in enterprise POS systems for sports and entertainment venues, food service management providers and national restaurant chains.

Bypass is included within the Acceptance segment and further enhances our omni-commerce capabilities, enabling enterprise businesses to deliver a seamless customer experience that spans physical and digital channels.

On May 11, 2020, we acquired Inlet, LLC (“Inlet”), a provider of secure digital delivery solutions for enterprise and middle-market billers’ invoices and statements.

Inlet is included within the Payments segment and further enhances our digital bill payment strategy.

We acquired these businesses for an aggregate purchase price of $167 million, net of $2 million of acquired cash, and including earn-out provisions estimated at a fair value of $45 million.

On January 22, 2021, we acquired Ondot Systems, Inc., a digital experience platform provider for financial institutions.

This acquisition, to be included within the Payments segment, will further expand our digital capabilities, enhancing our suite of integrated solutions spanning card-based payments, digital banking platforms, core banking, and merchant solutions to enable clients of all sizes to deliver frictionless, digital-first and personalized experiences to their customers.

Effective July 1, 2020, we and Bank of America (“BANA”) dissolved the Banc of America Merchant Services joint venture (“BAMS” or the “joint venture”), of which we maintained a 51% controlling ownership interest.

Upon dissolution of the joint venture’s operations, the joint venture transferred a proportionate share of value, primarily the client contracts, to each party via

an agreed upon contractual separation.

The remaining activities of the joint venture will consist of supporting the transition of the business to each party and an orderly wind down of remaining BAMS assets and liabilities.

The revenues and expenses of the BAMS joint venture were consolidated into our financial results though the date of dissolution.

The business transferred to us will continue to be operated and managed within our Acceptance segment.

We will continue to provide merchant processing and related services to former BAMS clients allocated to BANA, at BAMS pricing, through June 2023.

We will also provide processing and other support services to new BANA merchant clients pursuant to a five-year non-exclusive agreement which, after June 2023, will also apply to the former BAMS clients allocated to BANA.

In addition, both companies are entitled to certain transition services, at fair value, from each other through June 2023.

On February 18, 2020, we sold a 60% controlling interest of our Investment Services business, subsequently renamed as Tegra118, LLC (“Tegra118”), which is reported within Corporate and Other following the Segment Realignment.

On February 2, 2021, Tegra118 completed a merger with a third party, resulting in a dilution of our ownership interest in the combined new entity, Wealthtech Holdings, LLC.

Our remaining ownership interest in the Lending Joint Ventures are accounted for as equity method investments.

We aspire to move money and information in a way that moves the world by delivering superior value for our clients through leading technology, targeted innovation and excellence in everything we do.

These fees can vary from period to period with the variance depending on the quantum of financial institution merger activity in a given period and whether or not our clients are involved in the activity.

We believe that our merchant acquiring products and solutions create compelling value propositions for merchant clients of all sizes, from small and mid-sized businesses (or “SMBs”) to medium-sized regional businesses to global enterprise merchants, and across all verticals.

Furthermore, we believe that our sizable and diverse client base, combined with valued partnerships with merchant acquiring businesses of small, medium and large financial institutions, and non-financial institutions, gives us a solid foundation for growth.

*Recent Market Conditions*

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for the year ended December 31, 2018 and by comparing the results for the year ended December 31, 2018 to the results for the year ended December 31, 2017.

We provide account processing systems; electronic payments processing products and services; internet and mobile banking systems; merchant transaction processing and acquiring, including the Clover® line of payment solutions and related applications; prepaid and payroll services; and check verification.

The First Data segment primarily provides merchant acquiring, e-commerce, mobile commerce, and other business solutions at the point-of-sale (“POS”) to businesses of all sizes and types; credit card and loan account processing, commercial payments, customer communications, plastics products and services, customer service, and other products to support issuers; and a range of network solutions and security, risk and fraud management products and services to business and financial institution clients, including U.S. debit card processing, our STAR® network, stored value commerce solutions (both closed-loop and open-loop), and our suite of security and fraud products and services.

The Payments segment primarily provides electronic bill payment and presentment services, internet and mobile banking software and services, account-to-account transfers, person-to-person payment services, debit and credit card processing and services, payments infrastructure services, and other electronic payments software and services.

We expect to realign our business segments in the first quarter of 2020 when our new reporting structure and First Data integration plans are finalized.

On February 21, 2018, our board of directors declared a two-for-one stock split of our common stock and a proportionate increase in the number of our authorized shares of common stock.

The additional shares were distributed on March 19, 2018 to shareholders of record at the close of business on March 5, 2018.

Our common stock began trading at the split-adjusted price on March 20, 2018.

All share and per share amounts are retroactively presented on a split-adjusted basis.

As a result of the

During 2017, we completed four acquisitions for an aggregate purchase price of $384 million, net of acquired cash, along with earn-out provisions.

In January 2017, we completed our acquisition of Online Banking Solutions, Inc. (“OBS”), a provider of cash management and digital business banking solutions that complement and enrich our existing solutions.

In July 2017, we acquired the assets of PCLender, LLC (“PCLender”), a leader in internet-based mortgage software and mortgage lending technology solutions.

The OBS and PCLender acquisitions are included in the Financial segment as their products are integrated across a number of our account processing solutions and enable our bank and credit union clients to better serve their commercial and mortgage customers.

In August 2017, we acquired Dovetail Group Limited (“Dovetail”), a leading provider of bank payments and liquidity management solutions.

In September 2017, we completed our acquisition of Monitise plc (“Monitise”), a provider of digital solutions that enables innovative digital banking experiences for leading financial institutions worldwide.

The Dovetail and Monitise acquisitions are included in the Payments segment and further enable us to help financial institutions around the world transform their payments infrastructure and to expand our digital leadership, respectively.

On December 4, 2019, we entered into a definitive agreement to sell a 60% controlling interest of our Investment Services business, which is reported within the Payments segment.

On February 18, 2020, we completed the sale of the 60% interest of this business to a group of investors for gross proceeds of $591 million, resulting in an estimated pre-tax gain, including the remeasurement of the Company’s retained interest, of approximately $430 million.

During 2017, StoneRiver Group, L.P. (“StoneRiver”), a joint venture in which we own a 49% interest and account for under the equity method, recognized a gain on the sale of a business.

In addition, we received cash distributions of $2 million and $45 million in 2018 and 2017, respectively, from StoneRiver, which were funded from sale transactions.

We continue to implement a series of strategic initiatives to move money and information in a way that moves the world.

products and services through innovation.

These fees can vary from period to period.

SaaS solutions that

We determine the fair value of a reporting unit based primarily on the present value of estimated future cash flows.

An assessment of qualitative factors, including the proximity of the acquisition date to the year end reporting period, did not identify indicators of impairment in relation to the First Data goodwill.

Goodwill recorded as a result of our acquisition of First Data is based on preliminary estimates and assumptions using information available at the reporting date, and therefore the potential for measurement period adjustments exists based on our continuing review of matters related to the acquisition.

See Note 8 for additional information.

estimated fair value.

We generate revenue from the delivery of processing, service and product solutions.

We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time.

the total transaction price and update our assumptions over the duration of the contract.

We believe that a significant portion of the deferred tax assets will be realized because of the existence of sufficient taxable income within the carryforward period available under the tax law; however, we have established valuation allowances for those deferred tax assets that in our judgment will not be realized.

In addition, effective January 1, 2018, we adopted ASU No. 2014-09, *Revenue from Contracts with Customers*, and its related amendments using the modified retrospective transition approach applied to all contracts.

Under this transition approach, prior period amounts have not been restated.

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Based on our outstanding debt balances and interest rates at December 31, [removed: 2019,] [added: 2020,] a [added: hypothetical] 1% increase in [removed: variable] [added: market] interest rates [added: related to our variable-rate debt] would increase annual interest expense by approximately [removed: $48] [added: $18] million.

A [added: hypothetical] 1% decrease in [removed: variable] [added: market] interest rates would decrease annual interest-related income related to settlement assets by approximately [removed: $32 million.]

[removed: In 2019, approximately 12% of our total revenue was generated outside the U.S.] The major currencies to which our revenues are exposed are the Euro, the British Pound, the Indian Rupee and the Argentine Peso.

A [removed: movement] [added: strengthening or weakening] of [removed: 10% in foreign currency rates against] the U.S. dollar relative to the currencies in which our revenue and profits are denominated [added: by 10% would have resulted in a decrease or increase , respectively, in our reported pre-tax income as follows] at [added: December 31:]

| (In millions) | | | [added: | | | | | | 2020 | | | | | |] 2019 | | | [added: | | | | | | | | | | | |]

| Euro | | | [added: | | | | | |] $ | 7 | | [added: | | | $ | 7 | | | | | | | | | | | | | |]

| British Pound | | | [added: | | | | | | 3 | | | | | |] 4 | | | [added: | | | | | | | | | | | |]

| Indian Rupee | | | [added: | | | | | | 2 | | | | | |] 3 | | | [added: | | | | | | | | | | | |]

| Argentine Peso | | | [added: | | | | | | 3 | | | | | |] 2 | | | [added: | | | | | | | | | | | |]

| Other | | | [added: | | | | | | 5 | | | | | |] 9 | | | [added: | | | | | | | | | | | |]

| Total increase or decrease | | | [added: | | | | | |] $ | [added: 20 | | | | | $ |] 25 | | [added: | | | | | | | | | | | |]

At December 31, [removed: 2019,] [added: 2020,] the notional amount of these derivatives was approximately [removed: $178] [added: $259 million, with a positive fair value of $9] million.

We are exposed to certain market risks, primarily from fluctuations in interest rates and foreign currency exchange rates.

In addition to existing cash balances and cash provided by operating activities, we use a combination of fixed- and variable-rate debt instruments to finance our operations.

We are exposed to interest rate risk on certain of these debt obligations.

We had fixed- and variable-rate debt, excluding finance leases and other financing obligations, with varying maturities for an aggregate carrying amount of $18.3 billion and $1.8 billion, respectively, at December 31, 2020.

Our fixed-rate debt at December 31, 2020 primarily consisted of fixed-rate senior notes with a fair value of $20.7 million, based on matrix pricing which considers readily observable inputs of comparable securities.

The potential change in fair value of our fixed-rate senior notes from a hypothetical 1% change in market interest rates would not alone impact any decisions to repurchase our outstanding fixed-rate debt instruments before their maturity.

Our variable-rate debt at December 31, 2020 primarily consisted of outstanding borrowings on our revolving credit facility, variable rate term loan, foreign lines of credit and debt associated with the receivables securitization agreement.

This sensitivity analysis assumes the outstanding debt balances at December 31, 2020 and the change in market interest rates is applicable for an entire year.

Fluctuations in market interest rates affect the interest-related income that we earn on these investments.

$30 million over the next twelve months.

This sensitivity analysis assumes the subscriber fund balances at December 31, 2020 and the change in market interest rates is applicable for an entire year.

Approximately 13% and 12% of our total revenue was generated outside the U.S in 2020 and 2019, respectively.

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Refer to Item 1A in Part I of this Annual Report on Form 10-K for an additional discussion of risks and potential risks of the COVID-19 pandemic on our business.

We are exposed primarily to interest rate risk and market price risk on outstanding debt, investments of subscriber funds and foreign currency.

We manage our debt structure and interest rate risk through the use of fixed- and floating-rate debt.

December 31, 2019, would have resulted in an increase or decrease in our reported pre-tax income, including the results of First Data from the date of acquisition, of approximately $25 million as follows:

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Fiserv, Inc. is a leading global provider of [added: payments and] financial services [removed: technology.][added: technology solutions.]

We serve clients around the globe, including banks, credit unions, other financial [removed: institutions] [added: institutions, corporate clients] and merchants.

In [removed: 2019,] [added: 2020,] we had [removed: $10.2] [added: $14.9] billion in total revenue, [removed: $1.6] [added: $1.9] billion in operating income and [removed: $2.8] [added: $4.1] billion of net cash provided by operating activities from continuing operations.

Processing and services revenue, which in [removed: 2019] [added: 2020] represented [removed: 84%] [added: 82%] of our total revenue, is primarily generated from account- and transaction-based fees under multi-year contracts that generally have high renewal rates.

| [added: (In millions)] | | [removed: 2019] | | | | [removed: 2018] [added: 2020] | | | | [removed: 2017] | | [added: 2019] | [added: | | | | | 2018 | | |]

| Total revenue | | [added: | | | |] $ | [removed: 10,187] [added: 14,852] | | | [added: | |] $ | [removed: 5,823] [added: 10,187] | | | [added: | |] $ | [removed: 5,696] [added: 5,823] | |

| Domestic | | [removed: 88] | | [added: | | 87 | |] % | | [removed: 94] | | [added: 88 | |] % | | [removed: 95] | | [added: 94 | |] % |

| International | | [removed: 12] | | [added: | | 13 | |] % | | [removed: 6] | | [added: 12 | |] % | | [removed: 5] | | [added: 6 | |] % |

We have grown our business by [removed: developing highly specialized product and service enhancements, extending our capabilities geographically and through innovation, welcoming] [added: signing] new clients, [removed: selling additional] [added: expanding the] products and services [added: we provide] to existing [removed: clients] [added: clients, offering new] and [removed: acquiring businesses that complement ours,] [added: enhanced products and services developed through innovation and acquisition, and extending our capabilities geographically,] all of which have enabled us to deliver a wide range of integrated products and services and [removed: have] created new opportunities for growth.

Our operations are comprised of the [removed: First Data] [added: Merchant Acceptance (“Acceptance”)] segment, the [removed: Payments and Industry Products (“Payments”)] [added: Financial Technology (“Fintech”)] segment and the [removed: Financial Institution Services (“Financial”)] [added: Payments and Network (“Payments”)] segment.

[removed: Businesses within GFS] [added: We] also provide financial institutions with [removed: a suite of account services including card personalization and embossing, customer communications,] professional services and customer servicing, including call center solutions and back-office processing.

The businesses in our Payments segment provide financial institutions and [removed: other companies] [added: corporate clients around the world] with the products and services required to process [removed: electronic payment transactions and to offer their customers access to financial services and transaction capability through] digital [removed: channels.][added: payment transactions.]

Our electronic payments business is comprised of electronic bill payment and presentment services and other electronic payment services for businesses and consumers, such as person-to-person payments, account-to-account transfers, and account [added: opening and funding.]

Our principal electronic bill payment and presentment product, CheckFree® RXP®, allows our clients’ [removed: customers: to] [added: customers to:] manage household bills via an easy-to-use, online tool; [removed: to] view billing and payment information; [removed: to] pay and manage all of their bills in one place; and [removed: to] complete same-day or next-day bill payments to a wide range of billers and others.

Our person-to-person payments and account-to-account [added: transfer] services allow consumers a convenient way to send and receive money while offering financial institutions the opportunity to generate new transaction-based revenue, attract new accounts and increase loyalty among existing customers.

In addition to [removed: Fiserv’s own service,] Popmoney®, [added: a solution owned by Fiserv,] we partner with Early Warning Services, LLC to offer a turnkey implementation of its Zelle® real-time person-to-person payments service.

This structure enables our clients to deploy new services by adding and integrating applications, such as electronic bill payment, person-to-person payments and personal financial management tools, to any [removed: internet connected] [added: internet-connected] point-of-presence.

Our Mobiliti product suite provides a variety of mobile banking and payments services to our clients and their customers via mobile browser, downloadable application for smartphones and tablets, text message, and Amazon® [removed: Alexa] [added: Alexa®] voice banking.

Each of these suites enables customers to complete balance inquiries, view their transaction history, make bill payments, and transfer funds between accounts and [added: to] other people.

Our SecureNow product delivers real-time cybersecurity defense [removed: capability designed specifically for digital financial services and] [added: capability,] integrates industry-leading controls into a single platform, and is pre-integrated with key Fiserv digital assets, including Corillian Online, Architect and other Fiserv [removed: platforms] [added: platforms,] for rapid deployment.

Our biller business provides electronic billing and payment services to companies that deliver bills to their [removed: customer base,] [added: customers,] such as utilities, telephone and cable companies, lending institutions, and insurance providers, enabling our biller clients to reduce costs, collect payments faster through multiple channels, increase customer satisfaction, and provide customers flexible, easy-to-use ways to view and pay their bills.

Our clients’ customers access our electronic billing and payment systems by viewing or paying a bill through a financial institution’s bill payment application, using a biller’s website, mobile application, automated phone system or customer service representative, [removed: leveraging] [added: through] www.mycheckfree.com, or by paying [removed: in person] [added: in-person] at one of more than 30,000 nationwide walk-in payment locations operated by our agents.

Our [removed: card services] [added: network and debit processing] business is a leader in electronic funds transfer services and provides a total payments solution through a variety of products and services.

We provide [removed: thousands of] financial institution clients with a full range of [removed: credit and] debit processing services, [removed: including:] [added: including] ATM [removed: driving,] [added: managed services;] tokenization, loyalty and reward [removed: programs, real-time person-to-person payments,] [added: programs;] customized authorization [removed: processing,] [added: processing;] gateway processing to payment [removed: networks,] [added: networks;] and risk management products.

We own and operate the [removed: Accel® network,] [added: Accel®, STAR® and MoneyPass® networks,] which [removed: serves more than 3,000] [added: serve] financial [removed: institutions with funds] [added: institutions, providing] access [added: to funds] at [removed: over 500,000 ATMs] [added: the point-of-sale] and [removed: which incorporates] [added: via ATMs, inclusive of] CardFree CashSM access as well as [removed: EMV™] [added: via EMV®] chip and traditional magnetic stripe cards.

Our [removed: Accel network] [added: networks’] POS support delivers comprehensive coverage of PIN and [removed: signature] [added: PIN-less] authentication support at physical and e-commerce merchants [removed: across the country.][added: domestically.]

Our products and services [removed: include:] [added: include] electronic document management through our electronic document delivery products and services; card manufacturing, personalization and mailing; statement production and mailing; design and fulfillment of direct mail services; forms distribution; laser printing and mailing; [removed: branded merchandise;] and [removed: office supplies.][added: branded merchandise.]

[removed: *Risk Management] [added: *Financial] and [removed: Other] [added: Risk Management] Solutions*

Our [removed: risk management] [added: Financial and Risk Management Solutions] business provides [removed: financial and risk management] products and services that deliver operating efficiencies and management insight that enable our clients to [removed: protect] [added: protect, manage] and grow their businesses.

Our [added: Digital Efficiency Solutions include Frontier™ (a reconciliation product), Nautilus® (a content management product) and Prologue™ Financials, which combines] enterprise performance management and financial control offerings [removed: include] [added: to deliver] budgeting and planning, financial accounting, and automated reconciliation and account certification tools to facilitate a robust assessment environment and efficient [removed: close process] [added: processes] for our clients.

These solutions are further complemented by fraud detection and mitigation through our [removed: predictive analytics service,] Fraud [removed: Risk] and [removed: Anti-Money Laundering Compliance Management.][added: Financial Crimes Risk Management Solutions.]

Our [removed: deposit liquidity solutions] [added: Deposit Liquidity Solutions] enable our clients to retain, monetize and grow their deposit account base while [removed: responding to increased] [added: analyzing customer] demand [added: and providing] for [added: customer] short-term liquidity.

Our [removed: enterprise payments business also provides] [added: Commercial Payments Solutions provide] financial institutions with the infrastructure they need to [removed: process] [added: process, route and settle] non-card-based electronic payments, including [removed: ACH,] [added: Automated Clearing House (“ACH”),] wire and instant payments, and to [added: efficiently] manage associated information flows.

Clients may use [removed: the Dovetail] payment platform applications on a licensed or hosted basis, and as an add-on to existing legacy technology or as a stand-alone comprehensive modern payments platform.

[removed: The investment services business] [added: Tegra118] provides technology products and services to financial service organizations, including broker dealers, registered investment advisors, banks, asset managers and insurance companies that deliver financial advice and managed account products to U.S. retail investors.

The businesses in our [removed: Financial] [added: Fintech] segment provide financial institutions [added: around the world] with the [removed: products and services] [added: technology solutions] they need to run their [removed: operations.][added: operations, including products and services that enable financial institutions to process customer deposit and loan accounts and manage an institution’s general ledger and central information files.]

[removed: Within] [added: As a complement to] the [removed: Financial segment, we provide financial institutions with] [added: core] account processing [removed: services,] [added: functionality, the businesses in the global Fintech segment also provide digital banking, financial and risk management, cash management, professional services and consulting,] item processing and source [removed: capture services, loan origination and servicing products, cash management and consulting services,] [added: capture,] and other products and services that support numerous types of financial transactions.

These solutions also include [removed: extensive] security, report generation and other features that financial institutions need to process transactions for their customers, as well as to facilitate compliance with applicable regulations.

Although many of our clients [removed: contract to] obtain a majority of their processing requirements from us, our software design allows clients to start with one application and, as needed, add applications and features developed by us or by third parties.

The principal account processing solutions primarily used by our credit union clients are [removed: DNA, Portico®, Spectrum®, XP2®,] [added: CharlotteSM, CubicsPlus®, CUnify™, CUSA®,] DataSafe®, [added: DNA,] Galaxy®, [removed: CUnify™, CharlotteSM,] OnCU®, [removed: CubicsPlus®, CUSA®] [added: Portico®, Reliance®, Spectrum®] and [removed: Reliance.][added: XP2®.]

We help clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale (“POS”) solution.

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Effective in the first quarter of 2020, we realigned our reportable segments to reflect our new management structure and organizational responsibilities (“Segment Realignment”) following the July 2019 acquisition of First Data.

Acceptance

The businesses in our Acceptance segment provide a wide range of commerce-enabling solutions and serve merchants of all sizes around the world.

These services include POS merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; CaratSM, our omnichannel commerce solution; and our cloud-based Clover POS platform.

We distribute the products and services in the global Acceptance businesses through a variety of channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors (“ISVs”), financial institutions, and other strategic partners in the form of joint venture alliances, revenue sharing alliances (“RSAs”), and referral agreements.

Merchants, financial institutions and distribution partners in the Acceptance segment are frequently clients of our other segments.

Acceptance solutions enable businesses to securely accept consumers’ electronic payment transactions online or in-person.

Payment transactions represent credit, debit, stored-value and loyalty payments, whether at a physical POS device, a mobile device such as a smart-phone or tablet, or an e-commerce transaction over the internet.

Services include payment authorization; settlement; charge-back management; and solutions that secure payment data from end-to-end, including TransArmor®, our encryption, tokenization, and PCI compliance solution for data in-transit.

*Omnichannel Commerce Solutions*

Our Carat solution is designed to enable large merchants to offer a simple and secure payment experience to their customers across multiple channels, including accepting e-commerce payments online or in-store and enabling consumer purchasing experiences such as curbside and in-store pickup (sometimes referred to as “omnichannel”).

Through a single interface with the merchant, a variety of our solutions can be integrated, including omnichannel gateway, global payments acceptance, open foreign exchange multi-currency, advanced artificial intelligence-powered authorization optimization, fraud detection, and digital payouts.

By offering a variety of payment and related services via a single interface, Carat enhances the payment experience for a customer, optimizes the value and quality of transactions for the merchant, and enables pioneering payment transactions such as voice-enabled commerce and payments via the connected car.

*Clover from Fiserv*

Built for small and mid-sized businesses (“SMBs”), our cloud-based Clover POS platform is a comprehensive business-management solution that enables businesses to maximize their operating efficiencies, while allowing their customers to pay using a debit or credit card or via mobile payment options.

The Clover platform includes hardware and software technology necessary to enable SMB merchants to accept payments, process transactions, provide online ordering, have an e-commerce presence, and generate consumer loyalty through Clover’s customer engagement tools.

Clover is one of the largest open architecture platforms of commerce-enabling solutions and applications in the world.

By integrating next-generation hardware and software applications, Clover has also become a leader in enabling omnichannel commerce solutions for SMBs, with touchless commerce through QR code-based payments, online ordering solutions, or a virtual terminal.

Clover solutions also help small business owners gain faster access to capital through advanced access to receivables.

*Distribution Channels and Partnerships*

Acceptance businesses distribute solutions and services through direct sales teams, as well as partnerships with hundreds of indirect non-bank sales forces, including independent sales agents, independent sales organizations (“ISOs”), ISVs, value-added retailers (“VARs”), and payment services providers (“PSPs”).

Partnerships with ISOs, ISVs, VARs and PSPs provide specialized sales capabilities and integrated merchant technology solutions to support our partners, help them grow their business and manage their portfolios.

Partner technology tools enable real-time access to portfolio activity and pricing management.

We also provide marketing services, data analytics and other tools that enable partners to further expand their businesses through local communities, e-commerce channels, and specific industry verticals.

In addition, the businesses in our Acceptance segment leverage powerful sales capabilities for hundreds of financial institution and non-financial institution partners to distribute their products and solutions through strategic arrangements including joint venture alliances (merchant alliances), RSAs, and referral agreements.

These strategic alliances combine our commerce-enabling technology, processing capabilities and management expertise with the distribution channels, footprint and customer relationships of our partners.

Fintech

Some of the businesses in the Fintech segment provide products or services to corporate clients to facilitate the management of financial processes and transactions.

Many of the products and services offered in the Fintech segment are integrated with products and services provided by our other segments.

This includes card transactions such as debit, credit and prepaid card processing and services; a range of network services, security and fraud protection products; card production and print services.

In addition, the Payments segment businesses offer non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products.

Clients of the global Payments segment businesses reflect a wide range of industries, including merchants, distribution partners and financial institution customers in our other segments.

*Network and Debit Processing*

Our debit processing also provides a range of security, risk and fraud management solutions, which incorporate machine-learning-based predictive

technology, that help financial institutions securely operate and grow their business by preventing fraud.

We provide account processing systems; electronic payments processing products and services, such as electronic bill payment and presentment services, account-to-account transfers, person-to-person payments, debit network solutions, debit card processing and services, general purpose credit, retail private label and commercial credit card processing and services, and payments infrastructure services; internet and mobile banking systems; and related services, including card and print personalization services, item processing and source capture services, loan origination and servicing products, stored value network solutions and fraud and risk management products and services.

We also provide retail point-of-sale (“POS”) merchant acquiring and e-commerce services as well as next-generation offerings such as mobile payment services, and our cloud-based Clover® line of payment solutions and related applications.

| | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

We originally incorporated in Delaware in 1984 and reincorporated as a Wisconsin corporation in 1992.

First Data

On July 29, 2019, we completed the acquisition of First Data Corporation (“First Data”), a global leader in commerce-enabling technology and solutions for merchants, financial institutions and card issuers.

The businesses in our First Data segment primarily provide merchant acquiring, e-commerce, mobile commerce and other business solutions at the point-of-sale to businesses of all sizes and types; credit card and loan account processing, commercial payments, customer communications, plastics solutions, customer service and other products to support issuers; and a range of network solutions and security, risk and fraud management solutions to business and financial institution clients, including U.S. debit card processing, our STAR® network, stored value commerce solutions (both closed-loop and open-loop), and our suite of security and fraud products and services.

The businesses in the First Data segment are subject to a modest level of seasonality, with the first quarter experiencing the lowest level of revenue and the fourth quarter experiencing the highest level of revenue.

Our products and services in the First Data segment include:

*Global Business Solutions (“GBS”)*

The businesses within GBS provide a wide range of solutions to merchants around the world, including physical retail POS merchant acquiring and e-commerce services, next-generation offerings such as mobile payment services, our cloud-based Clover® POS operating system, which includes a marketplace for proprietary and third-party business applications, and check validation.

We serve nearly six million business locations globally.

We typically provide these services as part of a broader commerce-enabling solution to our business clients across three primary channels:

| | |

| --- | --- |

| • | Retail POS - Physical businesses or storefront locations, such as retailers, supermarkets, restaurants and petroleum stations with brick and mortar facilities |

| • | Online POS (e-commerce) - Online businesses or website locations, such as retailers, digital content providers, and mobile application developers with Internet-based storefronts that can be accessed through a personal computer or a mobile device |

| • | Mobile POS - Physical businesses with remote or wireless storefront locations, such as retailers and service providers that use mobile devices to accept electronic payments |

Revenues within GBS are primarily derived from processing credit and debit card transactions for merchants and other business clients and include fees for providing processing, loyalty and software services and sales or leases of POS devices.

GBS revenues and earnings are impacted by the number of transactions and payment volume, the mix of consumer use of credit and debit cards and the size of the merchant or other business client.

*Global Financial Solutions (“GFS”)*

The businesses within GFS provide financial institutions, which include bank and non-bank issuers such as retailers with proprietary card portfolios, with a broad range of technology solutions that enable them to offer financial products and solutions to their customers.

These solutions include general purpose credit, retail private label, commercial card and loan processing globally, as well as licensed financial software systems, such as our VisionPLUS processing application.

Globally, GFS revenues are diversified across financial institutions of various sizes and geographies and are typically generated on the basis of number of total and active accounts on file, volume of customer communications, volume of plastics issued or license fees.

*Network & Security Solutions (“NSS”)*

The businesses within NSS provide a range of network services and security, risk and fraud management products to business and financial institution clients in our GBS and GFS businesses, and independently to financial institutions, businesses, governments, processors and other clients.

These products and services include our EFT network solutions (STAR® network and debit card processing), our stored value network solutions (Money Network® and gift solutions) and our security and fraud solutions (TransArmor® and TeleCheck®).

The businesses within NSS also support our other digital strategies, including online and mobile banking, and our business supporting mobile wallets.

Financial institutions and other companies have increasingly relied on third-party providers for those products and services, primarily on an outsourced basis.

This is driven by the increasing number of payment transactions being completed electronically as our clients’ customers seek the convenience of 24-hour digital access to their financial accounts.

Within the Payments segment, we primarily provide electronic bill payment and presentment services, internet and mobile banking software and services, account-to-account transfers, person-to-person payment services, debit and credit card processing and services, payments infrastructure services and other electronic payments software and services.

Our businesses in this segment also provide card and print personalization services, investment account processing services for separately managed accounts, and fraud and risk management products and services.

Our products and services in the Payments segment include:

opening and funding.

Approximately 2,500 financial institutions have agreed to offer person-to-person payments services through Fiserv to their customers as of December 31, 2019.

As of December 31, 2019, we had approximately 2,300 hosted Mobiliti clients.

*Card Services*

In 2018, we acquired the debit card processing, ATM Managed Services, and MoneyPass® surcharge-free network of Elan Financial Services, a unit of U.S. Bancorp, enabling access to over 61,000 surcharge-free ATMs.

On February 18, 2020, we completed the sale of a 60% interest in this business to a group of investors.

[removed: FORM 10-K][added: FORM 10-K]

| ☑ | [added: | |] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | [added: | | | |]

| For the fiscal year ended: | [added: | |] December 31, [removed: 2019] [added: 2020] | | [added: | | | |]

| ☐ | [added: | |] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | [added: | |]

| Wisconsin | | [added: | | | |] 39-1506125 | [added: | |]

| (State or Other Jurisdiction of Incorporation or Organization) | | [added: | | | |] (I. R. S. Employer Identification No.) | [added: | |]

| 255 Fiserv Drive | [added: | |] Brookfield, | [added: | |] WI | [added: | |] 53045 | [added: | |]

| (Address of Principal Executive Offices and zip code) | | | | [added: | | | | | | | |]

| Title of each class | | [added: | | | |] Trading Symbol(s) | | [added: | | | |] Name of each exchange on which registered | [added: | |]

| Common Stock, par value $0.01 per share | | [added: | | | |] FISV | | [added: | | | |] The NASDAQ Stock Market LLC | [added: | |]

| 0.375% Senior Notes due 2023 | | [added: | | | |] FISV23 | | [added: | | | |] The NASDAQ Stock Market LLC | [added: | |]

| 1.125% Senior Notes due 2027 | | [added: | | | |] FISV27 | | [added: | | | |] The NASDAQ Stock Market LLC | [added: | |]

| 1.625% Senior Notes due 2030 | | [added: | | | |] FISV30 | | [added: | | | |] The NASDAQ Stock Market LLC | [added: | |]

| 2.250% Senior Notes due 2025 | | [added: | | | |] FISV25 | | [added: | | | |] The NASDAQ Stock Market LLC | [added: | |]

| 3.000% Senior Notes due 2031 | | [added: | | | |] FISV31 | | [added: | | | |] The NASDAQ Stock Market LLC | [added: | |]

| Large accelerated filer | [added: | |] ☑ | | [added: | | | |] Accelerated filer | [added: | |] ☐ | [added: | |]

| Non-accelerated filer | [added: | |] ☐ | | [added: | | | |] Smaller reporting company | [added: | |] ☐ | [added: | |]

| | | | [added: | | | | | |] Emerging growth company | [added: | |] ☐ | [added: | |]

The aggregate market value of the common stock of the registrant held by non-affiliates as of June [removed: 28, 2019] [added: 30, 2020] (the last trading day of the second fiscal quarter) was [removed: $35,699,320,202] [added: $65,119,434,315] based on the closing price of the registrant’s common stock on the NASDAQ Global Select Market on that date.

The number of shares of the registrant’s common stock, $0.01 par value per share, outstanding at February [removed: 21, 2020] [added: 19, 2021] was [removed: 679,098,783.][added: 669,459,877.]

Part III of this report incorporates information by reference to the registrant’s proxy statement for its [removed: 2020] [added: 2021] annual meeting of shareholders, which proxy statement will be filed with the Securities and Exchange Commission no later than 120 days after the close of the fiscal year ended December 31, [removed: 2019.][added: 2020.]

| | | [added: | | | |] Page | [added: | |]

| PART I | | | [added: | | | | | |]

| Item 1. | [removed: [Business](#sAF9F6F8DF7FC558E9722A0E8FFF3C395)] | [removed: [2](#sAF9F6F8DF7FC558E9722A0E8FFF3C395)] | [added: [Business](#i7c30bafed6dd4fdeb6ca29b81af40f81_16) | | | [2](#i7c30bafed6dd4fdeb6ca29b81af40f81_16) | | |]

| Item 1A. | [added: | |] [Risk [removed: Factors](#s49F2B3407D8E59E7AE762751B50E4901)] [added: Factors](#i7c30bafed6dd4fdeb6ca29b81af40f81_19)] | [removed: [11](#s49F2B3407D8E59E7AE762751B50E4901)] | [added: | [12](#i7c30bafed6dd4fdeb6ca29b81af40f81_19) | | |]

| Item 1B. | [added: | |] [Unresolved Staff [removed: Comments](#sBD36C1478A5A58B9A96792E87AE4C427)] [added: Comments](#i7c30bafed6dd4fdeb6ca29b81af40f81_22)] | [removed: [21](#sBD36C1478A5A58B9A96792E87AE4C427)] | [added: | [24](#i7c30bafed6dd4fdeb6ca29b81af40f81_22) | | |]

| Item 2. | [removed: [Properties](#s8C826D2A902E5684AB6BE634D7C13541)] | [removed: [21](#s8C826D2A902E5684AB6BE634D7C13541)] | [added: [Properties](#i7c30bafed6dd4fdeb6ca29b81af40f81_25) | | | [24](#i7c30bafed6dd4fdeb6ca29b81af40f81_25) | | |]

| Item 3. | [added: | |] [Legal [removed: Proceedings](#sC5EB71667EE350A08340B9E3171BD319)] [added: Proceedings](#i7c30bafed6dd4fdeb6ca29b81af40f81_28)] | [removed: [21](#sC5EB71667EE350A08340B9E3171BD319)] | [added: | [25](#i7c30bafed6dd4fdeb6ca29b81af40f81_28) | | |]

| Item 4. | [added: | |] [Mine Safety [removed: Disclosures](#sA24614291D145789A3C44F779BEB4A50)] [added: Disclosures](#i7c30bafed6dd4fdeb6ca29b81af40f81_31)] | [removed: [21](#sA24614291D145789A3C44F779BEB4A50)] | [added: | [25](#i7c30bafed6dd4fdeb6ca29b81af40f81_31) | | |]

| | [added: | |] [Information About Our Executive [removed: Officers](#s115A18787902505E863E850F30D06333)] [added: Officers](#i7c30bafed6dd4fdeb6ca29b81af40f81_34)] | [removed: [22](#s115A18787902505E863E850F30D06333)] | [added: | [26](#i7c30bafed6dd4fdeb6ca29b81af40f81_34) | | |]

| PART II | | | [added: | | | | | |]

| Item 5. | [added: | |] [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#s427FF161FC35599EB54F56241E52FB0D)] [added: Securities](#i7c30bafed6dd4fdeb6ca29b81af40f81_40)] | [removed: [24](#s427FF161FC35599EB54F56241E52FB0D)] | [added: | [28](#i7c30bafed6dd4fdeb6ca29b81af40f81_40) | | |]

| Item 6. | [added: | |] [Selected Financial [removed: Data](#s18B7D0792A4D5752B0D799E9C8AFCC82)] [added: Data](#i7c30bafed6dd4fdeb6ca29b81af40f81_43)] | [removed: [26](#s18B7D0792A4D5752B0D799E9C8AFCC82)] | [added: | [30](#i7c30bafed6dd4fdeb6ca29b81af40f81_43) | | |]

| Item 7. | [added: | |] [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#s5227E3A888865F4A86C65CDC51C09AC4)] [added: Operations](#i7c30bafed6dd4fdeb6ca29b81af40f81_46)] | [removed: [26](#s5227E3A888865F4A86C65CDC51C09AC4)] | [added: | [31](#i7c30bafed6dd4fdeb6ca29b81af40f81_46) | | |]

| Item 7A. | [added: | |] [Quantitative and Qualitative Disclosures About Market [removed: Risk](#sDEC93ECFA5255B70A0F13D636AC64DD8)] [added: Risk](#i7c30bafed6dd4fdeb6ca29b81af40f81_49)] | [removed: [44](#sDEC93ECFA5255B70A0F13D636AC64DD8)] | [added: | [50](#i7c30bafed6dd4fdeb6ca29b81af40f81_49) | | |]

| Item 8. | [added: | |] [Financial Statements and Supplementary [removed: Data](#sD9FDEA8ECF4F5B1E87F8516C7EE27863)] [added: Data](#i7c30bafed6dd4fdeb6ca29b81af40f81_52)] | [removed: [46](#sD9FDEA8ECF4F5B1E87F8516C7EE27863)] | [added: | [52](#i7c30bafed6dd4fdeb6ca29b81af40f81_52) | | |]

| Item 9. | [added: | |] [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#sDD31C27E2C35595CB8149B575B6F1D7B)] [added: Disclosure](#i7c30bafed6dd4fdeb6ca29b81af40f81_175)] | [removed: [103](#sDD31C27E2C35595CB8149B575B6F1D7B)] | [added: | [109](#i7c30bafed6dd4fdeb6ca29b81af40f81_175) | | |]

| Item 9A. | [added: | |] [Controls and [removed: Procedures](#s34A4F9482953568EB2805F758DC5E405)] [added: Procedures](#i7c30bafed6dd4fdeb6ca29b81af40f81_178)] | [removed: [103](#s34A4F9482953568EB2805F758DC5E405)] | [added: | [109](#i7c30bafed6dd4fdeb6ca29b81af40f81_178) | | |]

| Item 9B. | [added: | |] [Other [removed: Information](#s5181EBC65A5C5465A83418EFC0F69FD6)] [added: Information](#i7c30bafed6dd4fdeb6ca29b81af40f81_184)] | [removed: [105](#s5181EBC65A5C5465A83418EFC0F69FD6)] | [added: | [111](#i7c30bafed6dd4fdeb6ca29b81af40f81_184) | | |]

| PART III | | | [added: | | | | | |]

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Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

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| | [Signatures](#s0EDB3FD07C1E5DE9A5A67F391DD8CF7A) | [112](#s0EDB3FD07C1E5DE9A5A67F391DD8CF7A) |

At December 31, [removed: 2019,] [added: 2020,] we owned 20 properties and leased [removed: over 200] [added: 161] properties globally.

As a normal part of our business operations, including in connection with the integration of companies that we acquire, we regularly review our real estate portfolio.

We may choose to acquire or dispose of properties in order to maintain a real estate footprint designed to maximize collaboration, innovation and communication in ways that enable us to best serve our clients and to create more opportunities for professional growth and development for our associates.

We believe these properties are suitable for our current business needs.

We periodically review our requirements and may choose to acquire properties to meet the needs of our business or consolidate existing operations to enhance business integration.

The names of our executive officers as of February [removed: 27, 2020,] [added: 26, 2021,] together with their ages, positions and business experience are described below:

| Name | [added: | |] Age | [added: | |] Title | [added: | |]

| Frank J. Bisignano | [removed: 60] | [removed: President,] [added: | 61 | | | President and] Chief [removed: Operating] [added: Executive] Officer [removed: and Director] | [added: | |]

| Guy Chiarello | [removed: 60] | [added: | 61 | | |] Chief Administrative Officer | [added: | |]

| Christopher M. Foskett | [removed: 62] | [added: | 63 | | |] Executive Vice President, Global Sales | [added: | |]

| Robert W. Hau | [removed: 54] | [added: | 55 | | |] Chief Financial Officer [removed: and Treasurer] | [added: | |]

| Lynn S. McCreary | [removed: 60] | [added: | 61 | | |] Chief Legal Officer and Secretary | [added: | |]

| Devin B. McGranahan | [removed: 50] | [added: | 51 | | |] Executive Vice President, Senior Group President | [added: | |]

*Mr. [removed: Yabuki*] [added: Bisignano*] has [removed: been a director and] [added: served as] Chief Executive Officer since [removed: 2005] [added: July 2020] and [removed: Chairman] [added: a director and President] since July 2019.

From 1985 to 2008, Mr. Chiarello served in various technology [added: and leadership] roles [added: including chief information officer] at Morgan Stanley, a global financial services firm.

*Mr. Hau* has served as Chief Financial Officer [removed: and Treasurer] since 2016.

He joined McKinsey [added: & Company] in 1992 and served in a variety of other leadership positions prior to 2009, including leader of the North American property and casualty practice and managing partner of the Pittsburgh office.

[removed: Mr. Vielehr joined Fiserv in 2013] [added: He previously served] as [removed: group president,] [added: Executive Vice President, Senior Group President from 2019 to January 2021, Chief Administrative Officer from 2018 to 2019, and as Group President,] Depository Institution Services [removed: Group, and] [added: Group] from [removed: 2018] [added: 2013] to [removed: 2019 served as chief administrative officer.][added: 2018.]

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| Byron C. Vielehr | | | 57 | | | Chief Digital and Data Officer | | |

He served as Chief Operating Officer from July 2019 until July 2020.

*Mr. Vielehr* has served as Chief Digital and Data Officer since January 2021.

| | | |

| --- | --- | --- |

| Jeffery W. Yabuki | 59 | Chairman, Chief Executive Officer and Director |

| Byron C. Vielehr | 56 | Executive Vice President, Senior Group President |

He served as president from 2005 until July 2019.

Before joining Fiserv, Mr. Yabuki served as executive vice president and chief operating officer of H&R Block, Inc., a financial services firm, from 2002 to 2005.

From 2001 to 2002, he served as executive vice president of H&R Block and from 1999 to 2001, he served as the president of H&R Block International.

From 1987 to 1999, Mr. Yabuki held various executive positions with the American Express Company, a financial services firm, including president and chief executive officer of American Express Tax and Business Services, Inc.

*Mr. Bisignano* has been a director, President and Chief Operating Officer since July 2019.

*Mr. Vielehr* has served as Executive Vice President, Senior Group President since July 2019.

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| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |

Market Price Information

Our common stock is traded on the NASDAQ Global Select Market under the symbol “FISV.” At December 31, 2019, our common stock was held by 1,732 shareholders of record and by a significantly greater number of shareholders who hold shares in nominee or street name accounts with brokers.

We have never paid dividends on our common stock and we do not anticipate paying dividends in the foreseeable future.

For additional information regarding our expected use of capital, refer to the discussion in this report under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”

Issuer Purchases of Equity Securities

The table below sets forth information with respect to purchases made by or on behalf of us or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934) of shares of our common stock during the three months ended December 31, 2019:

| | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 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) | |

| October 1-31, 2019 | | 985,000 | | | $ | 104.00 | | | 985,000 | | | 22,994,000 | |

| November 1-30, 2019 | | 630,000 | | | 111.08 | | | | 630,000 | | | 22,364,000 | |

| December 1-31, 2019 | | 567,000 | | | 115.39 | | | | 567,000 | | | 21,797,000 | |

| Total | | 2,182,000 | | | | | | | 2,182,000 | | | | |

| (1) | On August 8, 2018, our board of directors authorized the purchase of up to 30.0 million shares of our common stock. This authorization does not expire. |

In connection with the vesting of restricted stock awards, shares of common stock are delivered to the Company by employees to satisfy tax withholding obligations.

The following table summarizes such purchases of common stock during the three months ended December 31, 2019:

| Period | | Total Number of Shares Purchased | | | Average Price Paid per Share | | | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |

| October 1-31, 2019 | | — | | (1) | $ | — | | | — | | | — | |

| November 1-30, 2019 | | — | | | — | | | | — | | | — | |

| December 1-31, 2019 | | 23,368 | | (1) | 115.63 | | | | — | | | — | |

| Total | | 23,368 | | | | | | | — | | | | |

| (1) | Shares surrendered to us to satisfy tax withholding obligations in connection with the vesting of restricted stock awards issued to employees. |

Stock Performance Graph

The stock performance graph and related information presented below is not deemed to be “soliciting material” or to be “filed” with the Securities and Exchange Commission or subject to Regulation 14A or 14C under the Securities Exchange Act of 1934 or to the liabilities of Section 18 of the Securities Exchange Act of 1934 and will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent we specifically incorporate it by reference into such a filing.

The following graph compares the cumulative total shareholder return on our common stock for the five years ended December 31, 2019 with the S&P 500 Index and the NASDAQ US Benchmark Financial Administration Index.

The graph assumes that $100 was invested on December 31, 2014 in our common stock and each index and that all dividends were reinvested.

No cash dividends have been declared on our common stock.

Market Price Information

Our common stock is traded on the NASDAQ Global Select Market under the symbol “FISV.” At December 31, 2020, our common stock was held by 1,690 shareholders of record and by a significantly greater number of shareholders who hold shares in nominee or street name accounts with brokers.

We have never paid dividends on our common stock and we do not anticipate paying dividends in the foreseeable future.

For additional information regarding our expected use of capital, refer to the discussion in this report under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”

Issuer Purchases of Equity Securities

The table below sets forth information with respect to purchases made by or on behalf of us or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934) of shares of our common stock during the three months ended December 31, 2020:

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| 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) | | |

| October 1-31, 2020 | | | | | | — | | | | | | $ | — | | | | | — | | | | | | 7,486,000 | | |

| November 1-30, 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | 67,486,000 | | |

| December 1-31, 2020 | | | | | | 1,818,000 | | | | | | 110.04 | | | | | | 1,818,000 | | | | | | 65,668,000 | | |

| Total | | | | | | 1,818,000 | | | | | | | | | | | | 1,818,000 | | | | | | | | |

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(1)On August 8, 2018 and November 19, 2020, our board of directors authorized the purchase of up to 30.0 million and 60.0 million shares of our common stock, respectively.

These authorizations do not expire.

In connection with the vesting of restricted stock awards, shares of common stock are delivered to the Company by employees to satisfy tax withholding obligations.

The following table summarizes such purchases of common stock during the three months ended December 31, 2020:

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| Period | | | | | | Total Number of Shares Purchased | | | | | | Average Price Paid per Share | | | | | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | | | | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | | |

| October 1-31, 2020 | | | | | | — | | | | | | $ | — | | | | | — | | | | | | — | | |

| November 1-30, 2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |

| December 1-31, 2020 | | | | | | 30,900 | | | (1) | | | 113.86 | | | | | | — | | | | | | — | | |

| Total | | | | | | 30,900 | | | | | | | | | | | | — | | | | | | | | |

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(1)Shares surrendered to us to satisfy tax withholding obligations in connection with the vesting of restricted stock awards issued to employees.

Stock Performance Graph

The stock performance graph and related information presented below is not deemed to be “soliciting material” or to be “filed” with the Securities and Exchange Commission or subject to Regulation 14A or 14C under the Securities Exchange Act of 1934 or to the liabilities of Section 18 of the Securities Exchange Act of 1934 and will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent we specifically incorporate it by reference into such a filing.

The following graph compares the cumulative total shareholder return on our common stock for the five years ended December 31, 2020 with the S&P 500 Index and the NASDAQ US Benchmark Transaction Processing Services Index (the “Index”).

Prior to September 21, 2020, the Index was known as the NASDAQ US Benchmark Financial Administration Index.

The Index, as renamed, is identical to the NASDAQ US Benchmark Financial Administration Index prior to its name change on September 21, 2020.

The graph assumes that $100 was invested on December 31, 2015 in our common stock and each index and that all dividends were reinvested.

No cash dividends have been declared on our common stock.

The comparisons in the graph are required by the Securities and Exchange Commission and are not intended to forecast or be indicative of possible future performance of our common stock.


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[removed: In addition, effective] [added: Effective] January 1, 2019, we adopted [removed: Accounting Standards Update (“ASU”)] [added: ASU] No. 2016-02, *Leases (Topic 842),* and its related amendments using the optional transition method applied to all leases.

Under [removed: this] [added: the optional] transition approach, prior period amounts have not been restated.

| (In millions, except per share data) | [added: | | 2020 | | | | | |] 2019 | | | | [added: | |] 2018 | | | | [removed: 2017] | | [added: 2017] | | [removed: 2016] | | | | [removed: 2015] [added: 2016] | | |

| Total revenue | [added: | |] $ | [removed: 10,187] [added: 14,852] | | | [added: | |] $ | [removed: 5,823] [added: 10,187] | | | [added: | |] $ | [removed: 5,696] [added: 5,823] | | | [added: | |] $ | [removed: 5,505] [added: 5,696] | | | [added: | |] $ | [removed: 5,254] [added: 5,505] | |

| Income from continuing operations | [added: | |] $ | [removed: 914] [added: 975] | | | [added: | |] $ | [removed: 1,187] [added: 914] | | | [added: | |] $ | [removed: 1,232] [added: 1,187] | | | [added: | |] $ | [removed: 930] [added: 1,232] | | | [added: | |] $ | [removed: 712] [added: 930] | |

| Income from discontinued operations, net of income taxes | [added: | |] — | | | | [removed: —] | | [added: —] | | [removed: 14] | | | | — | | | | [added: | | 14 | | | | | |] — | | |

| Net income | [added: | | 975 | | | | | |] 914 | | | | [added: | |] 1,187 | | | | [removed: 1,246] | | [added: 1,246] | | [removed: 930] | | | | [removed: 712] [added: 930] | | |

| Less: [removed: Net] [added: net] income attributable to noncontrolling interests [added: and redeemable noncontrolling interests] | [removed: 21] | | [added: 17] | | [removed: —] | | | | [added: 21 | | | | | |] — | | | | [added: | |] — | | | | [added: | |] — | | |

| Net income attributable to Fiserv, Inc. | [added: | |] $ | [removed: 893] [added: 958] | | | [added: | |] $ | [removed: 1,187] [added: 893] | | | [added: | |] $ | [removed: 1,246] [added: 1,187] | | | [added: | |] $ | [removed: 930] [added: 1,246] | | | [added: | |] $ | [removed: 712] [added: 930] | |

| Net income attributable to Fiserv, Inc. per share [removed: -] [added: –] basic: | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | |]

| Continuing operations | [added: | |] $ | [removed: 1.74] [added: 1.42] | | | [added: | |] $ | [removed: 2.93] [added: 1.74] | | | [added: | |] $ | [removed: 2.92] [added: 2.93] | | | [added: | |] $ | [removed: 2.11] [added: 2.92] | | | [added: | |] $ | [removed: 1.52] [added: 2.11] | |

| Discontinued operations | [added: | |] — | | | | [removed: —] | | [added: —] | | [removed: 0.03] | | | | — | | | | [added: | | 0.03 | | | | | |] — | | |

| Total | [added: | |] $ | [removed: 1.74] [added: 1.42] | | | [added: | |] $ | [removed: 2.93] [added: 1.74] | | | [added: | |] $ | [removed: 2.95] [added: 2.93] | | | [added: | |] $ | [removed: 2.11] [added: 2.95] | | | [added: | |] $ | [removed: 1.52] [added: 2.11] | |

| Net income attributable to Fiserv, Inc. per share [removed: -] [added: –] diluted: | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | |]

| Continuing operations | [added: | |] $ | [removed: 1.71] [added: 1.40] | | | [added: | |] $ | [removed: 2.87] [added: 1.71] | | | [added: | |] $ | [removed: 2.86] [added: 2.87] | | | [added: | |] $ | [removed: 2.08] [added: 2.86] | | | [added: | |] $ | [removed: 1.49] [added: 2.08] | |

| Total | [added: | |] $ | [removed: 1.71] [added: 1.40] | | | [added: | |] $ | [removed: 2.87] [added: 1.71] | | | [added: | |] $ | [removed: 2.89] [added: 2.87] | | | [added: | |] $ | [removed: 2.08] [added: 2.89] | | | [added: | |] $ | [removed: 1.49] [added: 2.08] | |

| Total assets | [added: | |] $ | [removed: 77,539] [added: 74,619] | | | [added: | |] $ | [removed: 11,262] [added: 77,539] | | | [added: | |] $ | [removed: 10,289] [added: 11,262] | | | [added: | |] $ | [removed: 9,743] [added: 10,289] | | | [added: | |] $ | [removed: 9,340] [added: 9,743] | |

| Long-term debt (including short-term and current maturities) | [added: | | 20,684 | | | | | |] 21,899 | | | | [added: | |] 5,959 | | | | [removed: 4,900] | | [added: 4,900] | | [removed: 4,562] | | | | [removed: 4,293] [added: 4,562] | | |

| Fiserv, Inc. shareholders’ equity | [added: | | 32,330 | | | | | |] 32,979 | | | | [added: | |] 2,293 | | | | [removed: 2,731] | | [added: 2,731] | | [removed: 2,541] | | | | [removed: 2,660] [added: 2,541] | | |

In addition, effective January 1, 2020, we adopted Accounting Standards Update (“ASU”) No. 2016-13, *Financial Instruments - Credit Losses (Topic 326),* using the required modified retrospective approach, which resulted in a cumulative-effect decrease to beginning retained earnings of $45 million.

The adoption of the new lease standard resulted in the recognition of lease liabilities and right-of-use assets on the consolidated balance sheet beginning January 1, 2019.

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| Discontinued operations | | | — | | | | | | — | | | | | | — | | | | | | 0.03 | | | | | | — | | |

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| | [added: | |] Page | [added: | |]

| [Consolidated Statements of [removed: Income](#s60678D9640E35C8696EA07757B84C8CC)] [added: Income](#i7c30bafed6dd4fdeb6ca29b81af40f81_55)] | [removed: [47](#s60678D9640E35C8696EA07757B84C8CC)] | [added: | [53](#i7c30bafed6dd4fdeb6ca29b81af40f81_55) | | |]

| [Consolidated Statements of Comprehensive [removed: Income](#s4539B965A37F56649B645B51F18DEEB8)] [added: Income](#i7c30bafed6dd4fdeb6ca29b81af40f81_58)] | [removed: [48](#s4539B965A37F56649B645B51F18DEEB8)] | [added: | [54](#i7c30bafed6dd4fdeb6ca29b81af40f81_58) | | |]

| [Consolidated Balance [removed: Sheets](#sBBA9D5E055225DBA837C347E98E95CC3)] [added: Sheets](#i7c30bafed6dd4fdeb6ca29b81af40f81_64)] | [removed: [49](#sBBA9D5E055225DBA837C347E98E95CC3)] | [added: | [55](#i7c30bafed6dd4fdeb6ca29b81af40f81_64) | | |]

| [Consolidated Statements of [removed: Equity](#s1190756C0BB45061A629E740FEB05B39)] [added: Equity](#i7c30bafed6dd4fdeb6ca29b81af40f81_70)] | [removed: [50](#s1190756C0BB45061A629E740FEB05B39)] | [added: | [56](#i7c30bafed6dd4fdeb6ca29b81af40f81_70) | | |]

| [Consolidated Statements of Cash [removed: Flows](#s30A15C85B7AC55A580EF0450345C2301)] [added: Flows](#i7c30bafed6dd4fdeb6ca29b81af40f81_73)] | [removed: [51](#s30A15C85B7AC55A580EF0450345C2301)] | [added: | [57](#i7c30bafed6dd4fdeb6ca29b81af40f81_73) | | |]

| [Notes to Consolidated Financial [removed: Statements](#s80B4B58841CA5003B295E2B6E0DAC770)] [added: Statements](#i7c30bafed6dd4fdeb6ca29b81af40f81_76)] | [removed: [52](#s80B4B58841CA5003B295E2B6E0DAC770)] | [added: | [58](#i7c30bafed6dd4fdeb6ca29b81af40f81_76) | | |]

| [Schedule II - Valuation and Qualifying [removed: Accounts](#sae53ff26dff94149b74283bde931281a)] [added: Accounts](#i7c30bafed6dd4fdeb6ca29b81af40f81_169)] | [removed: [99](#sae53ff26dff94149b74283bde931281a)] | [added: | [104](#i7c30bafed6dd4fdeb6ca29b81af40f81_169) | | |]

| [Report of Independent Registered Public Accounting [removed: Firm](#sDCD0D1A7D105524B84B2D3A3E3BC4158)] [added: Firm](#i7c30bafed6dd4fdeb6ca29b81af40f81_172)] | [removed: [100](#sDCD0D1A7D105524B84B2D3A3E3BC4158)] | [added: | [105](#i7c30bafed6dd4fdeb6ca29b81af40f81_172) | | |]

| In millions, except per share data | | | | | | | | | | | | | [added: | | | | | | | |]

| Year [removed: ended] [added: Ended] December 31, | | [removed: 2019] | | | | [removed: 2018] [added: 2020] | | | | [removed: 2017] | | [added: 2019] | [added: | | | | | 2018 | | |]

| Revenue: | | | | | | | | | | | | | [added: | | | | | | | |]

| Processing and services (1) | | [added: | | | |] $ | [removed: 8,573] [added: 12,215] | | | [added: | |] $ | [removed: 4,975] [added: 8,573] | | | [added: | |] $ | [removed: 4,833] [added: 4,975] | |

| Product | | [removed: 1,614] | | | | [removed: 848] [added: 2,637] | | | | [removed: 863] | | [added: 1,614] | [added: | | | | | 848 | | |]

| Total revenue | | [removed: 10,187] | | | | [removed: 5,823] [added: 14,852] | | | | [removed: 5,696] | | [added: 10,187] | [added: | | | | | 5,823 | | |]

| Expenses: | | | | | | | | | | | | | [added: | | | | | | | |]

| Cost of processing and services | | [removed: 4,016] | | | | [removed: 2,324] [added: 5,841] | | | | [removed: 2,291] | | [added: 4,016] | [added: | | | | | 2,324 | | |]

| Cost of product | | [removed: 1,293] | | | | [removed: 745] [added: 1,971] | | | | [removed: 733] | | [added: 1,293] | [added: | | | | | 745 | | |]

| Selling, general and administrative | | [removed: 3,284] | | | | [removed: 1,228] [added: 5,652] | | | | [removed: 1,150] | | [added: 3,284] | [added: | | | | | 1,228 | | |]

| Gain on sale of businesses | | [removed: (15] | | [removed: )] | | [removed: (227] [added: (464)] | | [removed: )] | | [removed: (10] | | [removed: )] [added: (15)] | [added: | | | | | (227) | | |]

| Total expenses | | [removed: 8,578] | | | | [removed: 4,070] [added: 13,000] | | | | [removed: 4,164] | | [added: 8,578] | [added: | | | | | 4,070 | | |]

| Operating income | | [removed: 1,609] | | | | [removed: 1,753] [added: 1,852] | | | | [removed: 1,532] | | [added: 1,609] | [added: | | | | | 1,753 | | |]

| Interest expense, net | | [removed: (473] | | [removed: )] | | [removed: (189] [added: (709)] | | [removed: )] | | [removed: (175] | | [removed: )] [added: (473)] | [added: | | | | | (189) | | |]

| Debt financing activities | | [removed: (47] | | [removed: )] | | [removed: (14] [added: —] | | [removed: )] | | [removed: —] | | [added: (47)] | [added: | | | | | (14) | | |]

| Other [removed: (expense)] income [added: (expense)] | | [removed: (6] | | [removed: )] | | [removed: 5] [added: 28] | | | | [removed: 1] | | [added: (6)] | [added: | | | | | 5 | | |]

| Income [removed: from continuing operations] before income taxes and income from investments in unconsolidated affiliates | | [removed: 1,083] | | | | [removed: 1,555] [added: 1,171] | | | | [removed: 1,358] | | [added: 1,083] | [added: | | | | | 1,555 | | |]

| Income tax provision | | [removed: (198] | | [removed: )] | | [removed: (378] [added: (196)] | | [removed: )] | | [removed: (158] | | [removed: )] [added: (198)] | [added: | | | | | (378) | | |]

| Income from investments in unconsolidated affiliates | | [removed: 29] | | | | [removed: 10] [added: —] | | | | [removed: 32] | | [added: 29] | [added: | | | | | 10 | | |]

| [removed: Income] [added: Net cash flows] from discontinued [removed: operations, net of income taxes] [added: operations] | | [removed: —] | | | | — | | | | [removed: 14] | | [added: 133] | [added: | | | | | 43 | | |]

| Net income | | [removed: 914] | | | | [removed: 1,187] [added: 975] | | | | [removed: 1,246] | | [added: 914] | [added: | | | | | 1,187 | | |]

| Less: [removed: Net] [added: net] income attributable to noncontrolling interests and redeemable noncontrolling interests | | [removed: 21] | | | | [removed: —] [added: 17] | | | | [added: | | 21 | | | | | |] — | | |

| Net income attributable to Fiserv, Inc. | | [added: | | | |] $ | [removed: 893] [added: 958] | | | [added: | |] $ | [removed: 1,187] [added: 893] | | | [added: | |] $ | [removed: 1,246] [added: 1,187] | |

| Net income [added: per share] attributable to Fiserv, [removed: Inc. per share - basic: |] [added: Inc.:] | | | | | | | | | | | |

| Net income attributable to Fiserv, Inc. per [removed: share - diluted:] [added: share: (1)] | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | |]

| Shares used in computing net income attributable to Fiserv, Inc. per share: | | | | | | | | | | | | | [added: | | | | | | | |]

| Basic | | [removed: 512.3] | | | | [removed: 405.5] [added: 672.1] | | | | [removed: 422.3] | | [added: 512.3] | [added: | | | | | 405.5 | | |]

| Diluted | | [removed: 522.6] | | | | [removed: 413.7] [added: 683.4] | | | | [removed: 431.3] | | [added: 522.6] | [added: | | | | | 413.7 | | |]

[removed: | (1) | Includes] [added: (1)Includes] processing and other fees charged to related party investments accounted for under the equity method of [removed: $112] [added: $236] million, [removed: $28] [added: $112] million and [removed: $0] [added: $28] million for the years ended December 31, [removed: 2019, 2018] [added: 2020, 2019] and [removed: 2017,] [added: 2018,] respectively (see Notes 9 and 20). [removed: |]

| In millions | | | | | | | | | | | | | [added: | | | | | | | |]

| Net income | | [added: | | | |] $ | [removed: 914] [added: 975] | | | [added: | |] $ | [removed: 1,187] [added: 914] | | | [added: | |] $ | [removed: 1,246] [added: 1,187] | |

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| Net income attributable to Fiserv, Inc. per share – diluted | | | | | | $ | 1.40 | | | | | $ | 1.71 | | | | | $ | 2.87 | |

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| Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | | | | | | 17 | | | | | | 21 | | | | | | — | | |

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| Net income (loss) (1) | | | | | | | | | | | | | | | | | | | | | 958 | | | | | | (22) | | | 936 | | |

| Measurement period adjustments related to First Data acquisition (see Note 4) | | | | | | | | | | | | | | | | | | | | | | | | | | | (126) | | | (126) | | |

| Distributions paid to noncontrolling interests (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | (37) | | | (37) | | |

| Net adjustment to noncontrolling interests from dissolution (see Note 4) | | | | | | | | | | | | | | | (36) | | | | | | | | | | | | (726) | | | (762) | | |

| Other comprehensive (loss) income | | | | | | | | | | | | | | | | | | (207) | | | | | | | | | 35 | | | (172) | | |

| Retirement of treasury stock (see Note 20) | | | (2) | | | (2) | | | | | | | | | (200) | | | | | | | | | 200 | | | | | | — | | |

| Balance at December 31, 2020 | | | 789 | | | 121 | | | | | | $ | 8 | | $ | 23,643 | | $ | (387) | | $ | 13,441 | | $ | (4,375) | | $ | 740 | | $ | 33,070 | |

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In addition, the total distributions presented in the consolidated statements of equity for the year ended December 31, 2020 exclude $25 million in distributions to Bank of America related to the Banc of America Merchant Services Joint Venture (see Note 4) not included in equity.

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| | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Income from continuing operations | | 914 | | | | 1,187 | | | | 1,232 | | |

| Continuing operations | | $ | 1.74 | | | $ | 2.93 | | | $ | 2.92 | |

| Discontinued operations | | — | | | | — | | | | 0.03 | | |

| Total | | $ | 1.74 | | | $ | 2.93 | | | $ | 2.95 | |

| Continuing operations | | $ | 1.71 | | | $ | 2.87 | | | $ | 2.86 | |

| Total | | $ | 1.71 | | | $ | 2.87 | | | $ | 2.89 | |

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Balance at January 1, 2017 | 791 | | 360 | | | $ | 8 | | $ | 1,016 | | $ | (76 | ) | $ | 8,994 | | $ | (7,401 | ) | $ | — | | $ | 2,541 | |

| Adjustment for discontinued operations | | — | | | | — | | | | (14 | | ) |

| Net change in cash, cash equivalents and restricted cash from discontinued operations | | $ | 133 | | | $ | 43 | | | $ | 19 | |

The Company provides account processing systems; electronic payments processing products and services; internet and mobile banking systems; merchant transaction processing and acquiring; prepaid and payroll services; and check verification.

All share and per share amounts are retroactively presented on a split adjusted basis.

Prior period amounts have not been restated; however, certain prior period amounts have been reclassified to conform to current period presentation.

Effective January 1, 2019, the Company adopted ASU No. 2016-02, *Leases (Topic 842)*(“ASU 2016-02”), and its related amendments using the optional transition method applied to all leases.

experiences some level of losses due to merchant defaults.

| | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 2,660 | | | | 1,227 | | |

performance, market and competitive factors in its industry and other events specific to its reporting units.

An assessment of qualitative factors, including the proximity of the acquisition date to the year end reporting period, did not identify indicators of impairment in relation to the First Data goodwill.

Goodwill recorded as a result of the acquisition of First Data is based on preliminary estimates and assumptions using information available at the reporting date, and therefore the potential for measurement period adjustments exists based on the Company’s continuing review of matters related to the acquisition.

See Note 8 for additional information.

See Note 10 for additional information.

In connection with the acquisition of First Data, the Company acquired frozen defined benefit pension plans covering certain employees in Europe and the United States.

See Note 15 for additional information.

In June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-07, *Compensation - Stock Compensation (Topic 718): Improvements to* *Nonemployee Share-Based Payment Accounting* (“ASU 2018-07”), which simplifies the accounting for share-based payments granted to nonemployees by largely aligning it with the accounting for share-based payments to employees.

Entities must apply the standard using a modified retrospective transition approach, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for all liability-classified nonemployee awards that have not been settled as of the adoption date and equity-classified nonemployee awards for which a measurement date has not been established.

In February 2018, the FASB issued ASU No. 2018-02, *Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income* (“ASU 2018-02”), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects of the change in the U.S. federal corporate tax rate resulting from the Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017.

The Company early adopted ASU 2018-02 in the first quarter of 2018, and elected to reclassify the Tax Act income tax benefits of $3 million from accumulated other comprehensive loss to retained earnings.

In August 2017, the FASB issued ASU No. 2017-12, *Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities* (“ASU 2017-12”), which provides guidance designed to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements as well as to simplify the application of the hedge accounting guidance in current U.S. generally accepted accounting principles.

For cash flow and net investment hedges existing at the date of adoption, the standard requires a cumulative-effect adjustment to eliminate the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year of adoption.

The amended presentation and

disclosure guidance is required only prospectively.

The Company early adopted ASU 2017-12 in the first quarter of 2018, and recorded a cumulative-effect adjustment to accumulated other comprehensive loss of $3 million with a corresponding decrease in the opening balance of retained earnings.

In October 2016, the FASB issued ASU No. 2016-16, *Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory* (“ASU 2016-16”), which eliminates the current prohibition on immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory, with the intent of reducing complexity and diversity in practice.

[removed: | *(a)* | *Disclosure] [added: *(a)Disclosure] Controls and Procedures* [removed: |]

Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of December 31, [removed: 2019.][added: 2020.]

[removed: | *(b)* | *Management] [added: *(b)Management] Report on Internal Control Over Financial Reporting* [removed: |]

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, [removed: 2019.][added: 2020.]

Based on management’s assessment, our management believes that, as of December 31, [removed: 2019,] [added: 2020,] our internal control over financial reporting was effective based on those criteria.

[removed: | *(c)* | *Changes] [added: *(c)Changes] in Internal Control Over Financial Reporting* [removed: |]