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

Forward-Looking Statements

This quarterly report contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those that express a plan, belief, expectation, estimation, anticipation, intent, contingency, future development or similar expression, and can generally be identified as forward-looking because they include words such as “believes,” “anticipates,” “expects,” “could,” “should,” or words of similar meaning. Statements that describe our future plans, objectives or goals are also forward-looking statements.

The forward-looking statements in this report involve significant risks and uncertainties, and a number of factors, both foreseen and unforeseen, that could cause actual results to differ materially from our current expectations. The factors that may affect our results include, among others, the following, many of which are, and may continue to be, amplified by the COVID-19 pandemic: the duration and intensity of the COVID-19 pandemic, including how quickly the global economy recovers from the impact of the pandemic; governmental and private sector responses to the COVID-19 pandemic and the impact of such responses on us; the impact of the COVID-19 pandemic on our employees, clients, vendors, supply chain, operations and sales; the possibility that we may be unable to achieve expected synergies and operating efficiencies from the acquisition of First Data Corporation (“First Data”) within the expected time frames or that the integration of First Data may be more difficult, time-consuming or costly than expected; our ability to compete effectively against new and existing competitors and to continue to introduce competitive new products and services on a timely, cost-effective basis; changes in customer demand for our products and services; the ability of our technology to keep pace with a rapidly evolving marketplace; the successful management of our merchant alliance program which involves several alliances not under our sole control; the impact of a security breach or operational failure on our business including disruptions caused by other participants in the global financial system; the failure of our vendors and merchants to satisfy their obligations; the successful management of credit and fraud risks in our business and merchant alliances; changes in local, regional, national and international economic or political conditions and the impact they may have on us and our customers; the effect of proposed and enacted legislative and regulatory actions affecting us or the financial services industry as a whole; our ability to comply with government regulations and applicable card association and network rules; the protection and validity of intellectual property rights; the outcome of pending and future litigation and governmental proceedings; our ability to successfully identify, complete and integrate acquisitions, and to realize the anticipated benefits associated with the same; the impact of our strategic initiatives; our ability to attract and retain key personnel; volatility and disruptions in financial markets that may impact our ability to access preferred sources of financing and the terms on which we are able to obtain financing or increase our costs of borrowing; adverse impacts from currency exchange rates or currency controls; changes in corporate tax and interest rates; and other factors included in "Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and in other documents that we file with the Securities and Exchange Commission, which are available at http://www.sec.gov. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements, which speak only as of the date of this report. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this report.

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

• Overview. This section contains background information on our company and the services and products that we provide, acquisitions and dispositions, 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.

• Changes in critical accounting policies and estimates. This section contains a discussion of changes since our Annual Report on Form 10-K for the year ended December 31, 2020 in 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.

• Results of operations. This section contains an analysis of our results of operations presented in the accompanying unaudited consolidated statements of income by comparing the results for the three and nine months ended September 30, 2021 to the comparable periods in 2020.

• Liquidity and capital resources. This section provides an analysis of our cash flows and a discussion of our outstanding debt at September 30, 2021.

Overview

Company Background

We are a leading global provider of payments and financial services technology solutions. 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. We serve clients around the globe, including banks, credit unions, other financial institutions, corporate clients and merchants.

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. We are focused on driving growth and creating value by assembling a high-performing and diverse team, integrating our solutions, delivering operational excellence, allocating capital in a disciplined manner, including share repurchase and merger and acquisition activity, and delivering breakthrough innovation.

Our operations are comprised of the Merchant Acceptance (“Acceptance”) segment, the Financial Technology (“Fintech”) segment and the Payments and Network (“Payments”) segment.

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 segment businesses through a variety of channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions, and other strategic partners in the form of joint venture alliances, revenue sharing alliances, and referral agreements. Merchants, financial institutions and distribution partners in the Acceptance segment are frequently clients of our other segments.

The businesses in our Fintech segment provide financial institutions around the world with the technology solutions they need to run their 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. As a complement to the core account processing functionality, the global Fintech segment businesses also provide digital banking, financial and risk management, professional services and consulting, item processing and source capture, and other products and services that support numerous types of financial transactions. Certain 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.

The businesses in our Payments segment provide financial institutions and corporate clients around the world with the products and services required to process digital payment transactions. 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 global 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 Payments segment businesses reflect a wide range of industries, including merchants, distribution partners and financial institution customers in our other segments.

Corporate and Other supports the reportable segments described above, and consists of amortization of acquisition-related intangible assets, unallocated corporate expenses and other activities that are not considered when we evaluate segment performance, such as gains or losses on sales of businesses or investments, costs associated with acquisition and divestiture activity, and our Output Solutions postage reimbursements. Corporate and Other also includes the historical results of our Investment Services business prior to the disposition of our controlling financial interest in February 2020, as well as certain transition services revenue associated with various dispositions.

Acquisitions and Dispositions

We frequently review our portfolio to ensure we have the right set of businesses to execute on our strategy. We expect to acquire businesses when we identify: a compelling strategic need, such as a product, service or technology that helps meet client demand; an opportunity to change industry dynamics; a way to achieve business scale; or similar considerations. We expect to divest businesses that are not in line with our market, product or financial strategies.

Acquisitions

On June 14, 2021, we acquired Spend Labs Inc. (“SpendLabs”), a mobile-native, cloud-based software provider of commercial card payment solutions. SpendLabs is included within the Payments segment and further expands our digital capabilities across

mobile and desktop devices for small and mid-sized businesses. On May 4, 2021, we acquired Pineapple Payments Holdings, LLC (“Pineapple Payments”), an independent sales organization that provides payment processing, proprietary technology, and payment acceptance solutions for merchants. Pineapple Payments is included within the Acceptance segment, and expands the reach of our payment solutions through its technology- and relationship-led distribution channels. On March 1, 2021, we acquired Radius8, Inc. (“Radius8”), a provider of a platform that uses consumer location and other information to drive incremental merchant transactions. Radius8 is included within the Acceptance segment and enhances our ability to help merchants increase sales, expand mobile application registration and improve one-to-one target marketing. On January 22, 2021, we acquired a remaining ownership interest in Ondot Systems, Inc. (“Ondot”), a digital experience platform provider for financial institutions. We previously held a noncontrolling equity interest in Ondot, which was accounted for at cost. Ondot is included within the Payments segment and further expands our digital capabilities, enhancing our suite of integrated payments, banking and merchant solutions. We acquired these businesses for an aggregate purchase price of approximately $524 million, net of $19 million of acquired cash, and including earn-out provisions estimated at an aggregate fair value of $30 million. The results of operations for these acquired businesses are included in our consolidated results from the respective dates of acquisition.

On March 2, 2020, we acquired MerchantPro Express LLC (“MerchantPro”), an independent sales organization that provides processing services, point-of-sale 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 point-of-sale 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 ability to help businesses deliver seamless physical and digital customer experiences. On May 11, 2020, we acquired Inlet, LLC (“Inlet”), a provider of secure digital delivery solutions for enterprise and middle-market biller 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 an aggregate fair value of $45 million. The results of operations for these acquired businesses are included in our consolidated results from the respective dates of acquisition.

On October 18, 2021, we entered into a definitive agreement to acquire BentoBox CMS, Inc. (“BentoBox”), a digital marketing and commerce platform that helps restaurants connect with their guests and that will expand our Clover® dining solutions and commerce and business management capabilities. We expect the acquisition to close in the fourth quarter of 2021, subject to customary approvals and closing conditions. Upon closing of the acquisition, BentoBox will be included within the Acceptance segment.

Dispositions

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 transfer of value to BANA was accounted for at fair value, resulting in the recognition of a pre-tax gain of $36 million, with a related tax expense of $13 million. The remaining activities of the joint venture 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 through the date of dissolution. The business transferred to us is included within our Acceptance segment.

We continue to provide merchant processing and related services to former BAMS clients allocated to BANA, at BAMS pricing, through June 2023. We 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”). We received pre-tax proceeds of $578 million, net of related expenses, resulting in a pre-tax gain on the sale of $428 million, with a related tax expense of $112 million. The revenues, expenses and cash flows of the Investment Services business were consolidated into our financial results through the date of the sale transaction, and is reported within Corporate and Other. 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, which was subsequently renamed as InvestCloud Holdings, LLC (“InvestCloud”). In connection with the transaction, we made an additional capital contribution of $200 million into the combined entity and recognized a pre-tax gain of $28 million, with a related tax expense of $6 million. On June 30, 2021, we sold our entire ownership interest in InvestCloud for $466 million, resulting in a pre-tax gain of $33 million, with a related tax expense of $8 million. We will continue to provide various technical and data center related services for defined periods under the terms of a pre-existing transition services agreement.

Industry Trends

The global payments landscape continues to evolve, with rapidly advancing technologies and a steady expansion of digital payments, e-commerce, and innovation in real-time payments infrastructure. Because of this growth, competition also continues to evolve. Business and consumer expectations continue to rise, with a focus on convenience and security. To meet these expectations, payments companies are focused on modernizing their technology, expanding the use of data and enhancing the customer experience.

Merchants

The rapid growth in and globalization of mobile and e-commerce, driven by consumers’ desire for simpler, more efficient shopping experiences, has created an opportunity for merchants to reach consumers in high-growth online and mobile settings, which often requires a merchant acquiring provider to enable and optimize the acceptance of payments. Merchants are demanding simpler, integrated, and modern POS systems to help manage their everyday business operations. When combined with the ever-increasing ways a consumer can pay for goods and services, merchants have sought modern POS systems to streamline this complexity. Furthermore, merchants can now search, discover, compare, purchase and even install a new POS system through direct, digital-only experiences. This direct, digital-only channel is quickly becoming a source of new merchant acquisition opportunities, especially with respect to smaller merchants.

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 as a way to further monetize their client relationships. SaaS solutions that integrate payments are often referred to as independent software vendors, and we believe there are thousands of these potential distribution partnership opportunities available to us.

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 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.

Financial Institutions

The market for products and services offered by financial institutions continues to evolve rapidly. The traditional financial industry and other market entrants regularly introduce and implement new payment, deposit, risk management, lending and investment products, and the distinctions among the products and services traditionally offered by different types of financial institutions continue to narrow as they seek to serve the same customers. At the same time, the evolving global regulatory and cybersecurity landscape has continued to create a challenging operating environment for financial institutions. These conditions are driving heightened interest in solutions that help financial institutions win and retain customers, generate incremental revenue, comply with regulations and enhance operating efficiency. Examples of these solutions include electronic payments and delivery methods such as internet, mobile and tablet banking, sometimes referred to as “digital channels.”

The focus on digital channels by both financial institutions and their customers, as well as the growing volume and types of payment transactions in the marketplace, continues to elevate the data and transaction processing needs of financial institutions. We expect that financial institutions will continue to invest significant capital and human resources to process transactions, manage information, maintain regulatory compliance and offer innovative new services to their customers in this rapidly evolving and competitive environment. We anticipate that we will benefit over the long term from the trend of financial institutions moving from in-house technology to outsourced solutions as they seek to remain current on technology changes in an evolving marketplace. We believe that economies of scale in developing and maintaining the infrastructure, technology, products, services and networks necessary to be competitive in such an environment are essential to justify these investments, and we anticipate that demand for products that facilitate customer interaction with financial institutions, including electronic transactions through digital channels, will continue to increase, which we expect to create revenue opportunities for us.

In addition to the trends described above, the financial institutions marketplace has experienced change in composition as well. The number of financial institutions in the United States continues to decline, primarily as a result of voluntary mergers and acquisitions. Rather than reducing the overall market, these consolidations transfer accounts among financial institutions. If a client loss occurs due to merger or acquisition, we receive a contract termination fee based on the size of the client and how early in the contract term the contract is terminated. 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. Our focus on long-term client relationships and recurring, transaction-oriented products and services has also reduced the impact that consolidation in the financial services industry has had on us. We believe that the integration of our products and services creates a compelling value proposition for our clients by providing, among other things, new sources of revenue and

opportunities to reduce their costs. Furthermore, we believe that our sizable and diverse client base, combined with our position as a leading provider of non-discretionary, recurring revenue-based products and services, gives us a solid foundation for growth.

Recent Market Conditions

Since early 2020, the world has been, and continues to be, impacted by the novel strain of the coronavirus (“COVID-19”) pandemic. The COVID-19 pandemic, and various measures imposed by the governments of many countries, states, cities and other geographic regions to prevent its spread, have negatively impacted global economic and market conditions, including levels of consumer and business spending. Consequently, our operating performance, primarily within our merchant acquiring and payment-related businesses, which earn transaction-based fees, has been adversely affected, and may continue to be adversely affected, by the economic impact of the COVID-19 pandemic. Such uncertainty remains despite improving trends in global economic activity and market conditions.

We have taken several actions since the onset of the pandemic to protect the health, safety and well-being of our employees while maintaining business continuity. These actions include, among others, eliminating non-essential travel, limiting visitors to our facilities, disinfecting facilities and workspaces extensively and frequently, providing onsite COVID-19 testing and personal protective equipment to associates and requiring employees who are present at our facilities to adhere to a variety of safety protocols. In addition, we have expanded paid time-off for employees impacted by COVID-19, provided increased pay for certain employees involved in critical infrastructure, and expanded our Fiserv Cares program to benefit employees in need around the world. We have reopened our offices in the United States and certain other geographies during the third quarter of 2021 and expect to continue to reopen our facilities in remaining locations while observing appropriate safety measures.

Our operating performance is subject to global economic and market conditions, as well as their impacts on levels of consumer and business spending. As a result of the COVID-19 pandemic and the related decline in global economic activity, we experienced a significant decrease in payments volume and transactions beginning in late March 2020 that negatively impacted our merchant acquiring and payment-related businesses, which earn transaction-based fees, as well as modest declines in other businesses. Merchant acquiring transaction and payment volumes began to partially recover throughout the remainder of 2020 and have continued to grow through the third quarter of 2021. Accordingly, our merchant acquiring and payment-related businesses were less impacted by the COVID-19 pandemic during the first nine months of 2021 than they were throughout most of fiscal 2020. While this current business trend is positive, the uncertainty caused by the pandemic continues to create an economic environment where our future financial results remain difficult to anticipate. We currently expect payments volume and transactions to continue to improve throughout the remainder of 2021, consistent with consumer and business spending experienced to date.

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

In 2021, we began observing increasing shortages and delays in the global supply chain for components and inputs necessary to our businesses, such as semiconductors, paper and plastic, and may experience difficulty procuring those components and inputs in the future on a timely basis or at historical prices.

Changes in Critical Accounting Policies and Estimates

Our consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States, which require management to make estimates, judgments and assumptions that affect the reported amount of assets, liabilities, revenue and expenses. In our Annual Report on Form 10-K for the year ended December 31, 2020, we identified our critical accounting policies and estimates. We continually evaluate the accounting policies and estimates that we use to prepare our consolidated financial statements, including for recently adopted accounting pronouncements, and base our estimates on historical experience and assumptions that we believe are reasonable in light of current circumstances. Actual amounts and results could differ materially from these estimates. There have been no material changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020.

Results of Operations

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

together with the unaudited consolidated financial statements and accompanying notes. The unaudited financial results presented below have been affected by acquisitions, dispositions, and foreign currency fluctuations.

Following the acquisition of First Data, we have continued to implement our post-merger integration plans to achieve synergies and future expected economic benefits, including enhanced revenue growth from expanded capabilities and geographic presence as well as substantial cost savings from the elimination of duplicative overhead and enhanced operational efficiency. We expect to complete the integration activities associated with the achievement of cost synergies related to the First Data acquisition by the end of 2021 and therefore expect a reduction in the amount of acquisition and integration related expenses thereafter.

			Three Months Ended September 30,
			2021						2020						Percentage of Revenue (1)												Increase (Decrease)
(In millions)			2021						2020						$						%
Revenue:
Processing and services			$	3,407					$	3,153					81.8		%				83.3		%				$	254					8		%
Product			756						633						18.2		%				16.7		%				123						19		%
Total revenue			4,163						3,786						100.0		%				100.0		%				377						10		%
Expenses:
Cost of processing and services			1,530						1,387						44.9		%				44.0		%				143						10		%
Cost of product			521						481						68.9		%				76.0		%				40						8		%
Sub-total			2,051						1,868						49.3		%				49.3		%				183						10		%
Selling, general and administrative			1,476						1,412						35.5		%				37.3		%				64						5		%
Gain on sale of businesses			—						(36)						—		%				(1.0)		%				36						n/m
Total expenses			3,527						3,244						84.7		%				85.7		%				283						9		%
Operating income			636						542						15.3		%				14.3		%				94						17		%
Interest expense, net			(172)						(174)						(4.1)		%				(4.6)		%				(2)						(1)		%
Other income			14						13						0.3		%				0.3		%				1						8		%
Income before income taxes and income from investments in unconsolidated affiliates			478						381						11.5		%				10.1		%				97						25		%
Income tax provision			(54)						(124)						(1.3)		%				(3.3)		%				(70)						56		%
Income from investments in unconsolidated affiliates			22						19						0.5		%				0.5		%				3						16		%
Net income			446						276						10.7		%				7.3		%				170						62		%
Less: net income attributable to noncontrolling interests			18						12						0.4		%				0.3		%				6						50		%
Net income attributable to Fiserv, Inc.			$	428					$	264					10.3		%				7.0		%				$	164					62		%

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

			Nine Months Ended September 30,
			2021						2020						Percentage of Revenue (1)												Increase (Decrease)
(In millions)			2021						2020						$						%
Revenue:
Processing and services			$	9,822					$	9,118					82.1		%				82.7		%				$	704					8		%
Product			2,147						1,902						17.9		%				17.3		%				245						13		%
Total revenue			11,969						11,020						100.0		%				100.0		%				949						9		%
Expenses:
Cost of processing and services			4,425						4,488						45.1		%				49.2		%				(63)						(1)		%
Cost of product			1,500						1,467						69.9		%				77.1		%				33						2		%
Sub-total			5,925						5,955						49.5		%				54.0		%				(30)						(1)		%
Selling, general and administrative			4,289						4,193						35.8		%				38.0		%				96						2		%
Gain on sale of businesses			—						(464)						—		%				(4.2)		%				464						n/m
Total expenses			10,214						9,684						85.3		%				87.9		%				530						5		%
Operating income			1,755						1,336						14.7		%				12.1		%				419						31		%
Interest expense, net			(523)						(535)						(4.4)		%				(4.9)		%				12						2		%
Other income			36						34						0.3		%				0.3		%				2						6		%
Income before income taxes and income from investments in unconsolidated affiliates			1,268						835						10.6		%				7.6		%				433						52		%
Income tax provision			(300)						(176)						(2.5)		%				(1.6)		%				(124)						70		%
Income from investments in unconsolidated affiliates			80						3						0.7		%				—		%				77						n/m
Net income			1,048						662						8.8		%				6.0		%				386						58		%
Less: net income attributable to noncontrolling interests			47						4						0.4		%				—		%				43						n/m
Net income attributable to Fiserv, Inc.			$	1,001					$	658					8.4		%				6.0		%				$	343					52		%

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

			Three Months Ended September 30,
(In millions)			Acceptance									Fintech									Payments									Corporate and Other									Total
Total revenue:
2021			$	1,716								$	761								$	1,471								$	215								$	4,163
2020			1,454									727									1,387									218									3,786
Revenue growth			$	262								$	34								$	84								$	(3)								$	377
Revenue growth percentage			18		%							5		%							6		%																10		%
Operating income (loss):
2021			$	552								$	275								$	643								$	(834)								$	636
2020			423									265									599									(745)									542
Operating income growth			$	129								$	10								$	44								$	(89)								$	94
Operating income growth percentage			30		%							4		%							7		%																17		%
Operating margin:
2021			32.2		%							36.0		%							43.7		%																15.3		%
2020			29.1		%							36.4		%							43.2		%																14.3		%
Operating margin growth (1)			310			bps						(40)			bps						50			bps															100			bps

			Nine Months Ended September 30,
(In millions)			Acceptance									Fintech									Payments									Corporate and Other									Total
Total revenue:
2021			$	4,779								$	2,251								$	4,297								$	642								$	11,969
2020			4,078									2,159									4,093									690									11,020
Revenue growth			$	701								$	92								$	204								$	(48)								$	949
Revenue growth percentage			17		%							4		%							5		%																9		%
Operating income (loss):
2021			$	1,463								$	794								$	1,850								$	(2,352)								$	1,755
2020			985									721									1,712									(2,082)									1,336
Operating income growth			$	478								$	73								$	138								$	(270)								$	419
Operating income growth percentage			49		%							10		%							8		%																31		%
Operating margin:
2021			30.6		%							35.3		%							43.1		%																14.7		%
2020			24.1		%							33.4		%							41.8		%																12.1		%
Operating margin growth (1)			650			bps						190			bps						130			bps															260			bps

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

Operating margin percentages are calculated using actual, unrounded amounts.

Total Revenue

Total revenue increased $377 million, or 10%, in the third quarter of 2021 and increased $949 million, or 9%, in the first nine months of 2021 compared to 2020. The revenue increase was primarily due to improved payment and transaction volumes in our merchant acquiring and payment-related businesses, which were adversely affected by the economic impact of the COVID-19 pandemic during the prior year. This growth was partially offset by the loss of revenue attributable to dispositions that had revenue of $155 million in the first nine months of 2020.

Revenue in our Acceptance segment increased $262 million, or 18%, in the third quarter of 2021 and increased $701 million, or 17%, in the first nine months of 2021 compared to 2020. The revenue increase was primarily due to improved merchant

acquiring payment and transaction volumes, which were adversely affected in the prior year by the economic impact of the COVID-19 pandemic. Revenue increases from volume growth were partially offset by revenue reductions from the dissolution of the BAMS joint venture of 3% in the first nine months of 2021.

Revenue in our Fintech segment increased $34 million, or 5%, in the third quarter of 2021 and increased $92 million, or 4%, in the first nine months of 2021 compared to 2020, driven by recurring revenue growth from higher processing revenue across our Fintech businesses.

Revenue in our Payments segment increased $84 million, or 6%, in the third quarter of 2021 and increased $204 million, or 5%, in the first nine months of 2021 compared to 2020. Payments segment revenue growth was driven by revenue contributions of 3% from our debit processing business in both the third quarter and first nine months of 2021 primarily attributable to increased transaction volumes and favorable pricing. Increased volumes also drove favorable revenue growth across our remaining Payments segment businesses in 2021, other than reductions in our bill payment business which partially offset revenue growth by 1% in both the third quarter and first nine months of 2021.

Revenue at Corporate and Other decreased $3 million, or 1%, in the third quarter of 2021 and decreased $48 million, or 7%, in the first nine months of 2021 compared to 2020. Postage revenue declines and the disposition of a 60% controlling interest of our Investment Services business each reduced Corporate and Other revenue in the first nine months of 2021 by 3%.

Total Expenses

Total expenses increased $283 million, or 9%, in the third quarter of 2021 and increased $530 million, or 5%, in the first nine months of 2021 compared to 2020. Total expenses as a percentage of total revenue decreased 100 basis points to 84.7% in the third quarter and decreased 260 basis points to 85.3% in the first nine months of 2021 compared to 2020. Total expenses as a percentage of total revenue were favorably impacted in 2021 by operating leverage accompanying revenue growth. A reduction in acquisition and integration related expenses of $151 million and lower employee termination costs of $60 million favorably impacted total expenses as a percentage of total revenue in the first nine months of 2021.

Cost of processing and services as a percentage of processing and services revenue increased to 44.9% in the third quarter of 2021 compared to 44.0% in the third quarter of 2020 and decreased to 45.1% in the first nine months of 2021 compared to 49.2% in the first nine months of 2020. Cost of processing and services as a percentage of processing and services revenue was favorably impacted in the first nine months of 2021 primarily due to strong operating leverage across our businesses, along with approximately 40 basis points from decreased acquisition and integration related expenses and approximately 30 basis points from decreased employee termination costs compared to the first nine months of 2020, respectively.

Cost of product as a percentage of product revenue decreased to 68.9% in the third quarter of 2021 compared to 76.0% in the third quarter of 2020 and decreased to 69.9% in first nine months of 2021 compared to 77.1% in the first nine months of 2020. The cost of product as a percentage of product revenue improved in the third quarter and first nine months of 2021 as a result of revenue mix.

Selling, general and administrative expenses as a percentage of total revenue decreased to 35.5% in the third quarter of 2021 compared to 37.3% in the third quarter of 2020 and decreased to 35.8% in the first nine months of 2021 compared to 38.0% in the first nine months of 2020. The decrease in selling, general and administrative expenses as a percentage of total revenue in 2021 was primarily due to strong operating leverage across our businesses, along with approximately 110 basis points from decreased acquisition and integration related expenses and approximately 20 basis points from decreased employee termination costs in the first nine months of 2021.

The gains on sale of businesses in 2020 resulted from a gain of $428 million on the sale of a 60% interest of our Investment Services business in February 2020 and a gain of $36 million on the dissolution of BAMS in July 2020.

Operating Income and Operating Margin

Total operating income increased $94 million, or 17%, in the third quarter of 2021 and increased $419 million, or 31%, in the first nine months of 2021 compared to 2020. Total operating margin increased 100 basis points to 15.3% in the third quarter of 2021 and increased 260 basis points to 14.7% in the first nine months of 2021 compared to 2020. Total operating income and total operating margin benefited from improved operating leverage accompanying scalable revenue growth in the third quarter and first nine months of 2021 and benefited from a reduction in acquisition and integration related expenses and lower employee termination costs in the first nine months of 2021 as noted above. Total operating income and total operating margin were also impacted by a $428 million gain on sale of a 60% interest of our Investment Services business in February 2020 and a $36 million gain on the dissolution of BAMS in July 2020.

Operating income in our Acceptance segment increased $129 million, or 30%, in the third quarter of 2021 and increased $478 million, or 49%, in the first nine months of 2021 compared to 2020. Operating margin increased 310 basis points to 32.2% in the third quarter of 2021 and increased 650 basis points to 30.6% in the first nine months of 2021 compared to 2020. Acceptance operating margin growth in both the third quarter and first nine months of 2021 was primarily due to scalable revenue growth as discussed above.

Operating income in our Fintech segment increased $10 million, or 4%, in the third quarter of 2021 and increased $73 million, or 10% in the first nine months of 2021 compared to 2020. Operating margin decreased 40 basis points to 36.0% in the third quarter of 2021 and increased 190 basis points to 35.3% in the first nine months of 2021 compared to 2020. Operating margin improvement in the first nine months of 2021 was driven by scalable revenue growth discussed above and also reflects the impact of expense management initiatives across the segment, including lower personnel costs of approximately 80 basis points and additional expense reductions attributable to lower travel and marketing expenses of approximately 30 basis points.

Operating income in our Payments segment increased $44 million, or 7%, in the third quarter of 2021 and increased $138 million, or 8%, in the first nine months of 2021 compared to 2020. Operating margin increased 50 basis points to 43.7% in the third quarter of 2021 and increased 130 basis points to 43.1% in the first nine months of 2021 compared to 2020. Payments segment operating margin growth in both the third quarter and first nine months of 2021 was primarily attributable to scalable revenue growth as discussed above.

The operating loss in Corporate and Other increased $89 million in the third quarter of 2021 and increased $270 million in the first nine months of 2021 compared to 2020. Corporate and Other was unfavorably impacted by increases in acquisition and integration costs of $37 million in the third quarter of 2021 compared to 2020. Corporate and Other was favorably impacted by a reduction of acquisition and integration related costs of $151 million and lower employee termination costs of $60 million in the first nine months of 2021 compared to 2020. Additionally, Corporate and Other was favorably impacted by a $428 million gain on sale of a 60% interest of our Investment Services business in February 2020 and a $36 million gain on the dissolution of BAMS in July 2020.

Interest Expense, Net

Interest expense, net was relatively consistent in the third quarter of 2021 compared to 2020, and decreased $12 million, or 2%, in the first nine months of 2021 compared to 2020 primarily due to lower outstanding borrowings.

Other Income

Other income was relatively consistent through the first nine months of 2021 compared to 2020. Other income includes net foreign currency transaction gains and losses, gains or losses from a change in fair value of investments in certain equity securities, amounts related to the release of risk under our non-contingent guarantee arrangements and changes in the provision of estimated credit losses associated with indebtedness of certain joint ventures. Other income includes net foreign currency transaction gains of $8 million and $3 million in the first nine months of 2021 and 2020, respectively. In addition, other income includes $12 million in the first nine months of 2021 related to a pre-tax gain on the remeasurement of a previously held investment in Ondot to fair value upon acquiring the remaining ownership interest in that entity and $19 million in the first nine months of 2020 related to a pre-tax gain on the sale of certain lease receivables.

Income Tax Provision

Income tax provision as a percentage of income before income taxes and income from investments in unconsolidated affiliates was 11.3% and 32.5% for the three months ended September 30, 2021 and 2020, respectively, and was 23.7% and 21.1% for the nine months ended September 30, 2021 and 2020, respectively. The effective income tax rate for the three months ended September 30, 2021 includes discrete tax benefits from subsidiary restructurings and changes in uncertain tax positions. The effective income tax rate for the three months ended September 30, 2020 included $32 million of income tax expense related to the revaluation of certain net deferred tax liabilities as a result of an increase in the United Kingdom corporate income tax rate from 17% to 19% in the quarter.

The effective income tax rate for the nine months ended September 30, 2021 includes $134 million of income tax expense attributed to the revaluation of certain net deferred tax liabilities, primarily related to intangible assets and investments in joint ventures recognized at fair value in connection with the acquisition of First Data, reflecting the effect of enacted corporate income tax rate changes in the United Kingdom (tax rate increase from 19% to 25% starting in 2023) and Argentina (tax rate increase from 25% to 35%), partially offset by discrete tax benefits from subsidiary restructurings, changes in uncertain tax positions and equity compensation related tax benefits. The effective income tax rate for the nine months ended September 30, 2020 included $112 million of income tax expense associated with the $428 million gain on the sale of a 60% interest of our

Investment Services business and $32 million of income tax expense noted above, partially offset by changes in uncertain tax positions and equity compensation related tax benefits.

Income from Investments in Unconsolidated Affiliates

Our share of net income from affiliates accounted for using the equity method of accounting is reported as income from investments in unconsolidated affiliates and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income. Income from investments in unconsolidated affiliates, including acquired intangible asset amortization from valuations in purchase accounting, was $22 million and $19 million in the third quarter of 2021 and 2020, respectively, and $80 million and $3 million in the first nine months of 2021 and 2020, respectively*.* Income from investments in unconsolidated affiliates for the first nine months of 2021 included a $33 million pre-tax gain resulting from the sale of our remaining ownership interest in InvestCloud and a $28 million pre-tax gain resulting from the dilution of our ownership interest in connection with the Tegra118 merger with a third party.

Net Income Attributable to Noncontrolling Interests

Net income attributable to noncontrolling interests and redeemable noncontrolling interests relates to the ownership interest of our consolidated alliance partners in our consolidated results. Net income attributable to noncontrolling interests, including acquired intangible asset amortization from valuations in purchase accounting, was $18 million and $12 million in the third quarter of 2021 and 2020, respectively, and $47 million and $4 million in the first nine months of 2021 and 2020, respectively. Net income attributable to noncontrolling interests increased in the third quarter and first nine months of 2021 compared to 2020 due to improved operating results within the consolidating subsidiaries.

Net Income Per Share – Diluted

Net income attributable to Fiserv, Inc. per share-diluted was $0.64 and $0.39 in the third quarter of 2021 and 2020, respectively, and was $1.49 and $0.96 in the first nine months of 2021 and 2020, respectively. Net income attributable to Fiserv, Inc. per share-diluted increased in the third quarter and in the first nine months of 2021 primarily as a result of the improved operating results discussed above. Net income attributable to Fiserv, Inc. per share-diluted in the third quarter of 2021 also included lower tax expense due to subsidiary restructurings and changes in uncertain tax positions.

Liquidity and Capital Resources

General

Our primary liquidity needs in the ordinary course of business are to: (i) fund normal operating expenses; (ii) meet the interest and principal requirements of our outstanding indebtedness, including finance leases; and (iii) fund capital expenditures and operating lease payments. We believe these needs will be satisfied using cash flow generated by our operations, along with our cash and cash equivalents of $933 million, proceeds from the issuance of U.S. commercial paper notes, and available capacity under our revolving credit facility of $2.0 billion (net of outstanding balance and $1.4 billion of capacity designated for outstanding borrowings under our commercial paper notes program) at September 30, 2021.

The following table summarizes our operating cash flow and capital expenditure amounts for the nine months ended September 30, 2021 and 2020, respectively:

			Nine Months Ended September 30,												Increase (Decrease)
(In millions)			2021						2020						$						%
Net income			$	1,048					$	662					$	386
Depreciation and amortization			2,456						2,472						(16)
Share-based compensation			190						286						(96)
Deferred income taxes			(266)						(125)						(141)
Gain on sale of businesses			—						(464)						464
Income from investments in unconsolidated affiliates			(80)						(3)						(77)
Distributions from unconsolidated affiliates			17						12						5
Non-cash impairment charges			6						44						(38)
Net changes in working capital and other			(680)						77						(757)
Operating cash flow			$	2,691					$	2,961					$	(270)					(9)		%
Capital expenditures, including capitalized software and other intangibles			$	814					$	689					$	125					18		%

Our net cash provided by operating activities, or operating cash flow, was $2.7 billion in the first nine months of 2021, a decrease of 9% compared with $3.0 billion in the first nine months of 2020. This decrease was primarily attributable to higher working capital use compared to the prior period, including increased accounts receivable corresponding to revenue growth, and higher income tax payments following consumption of federal net operating loss carryforwards, partially offset by improved operating results.

Our current policy is to use our operating cash flow primarily to fund capital expenditures, share repurchases, acquisitions and to repay debt rather than to pay dividends. Our capital expenditures were approximately 7% and 6% of our total revenue for the first nine months of 2021 and 2020, respectively.

Share Repurchases

We repurchased $1.6 billion and $1.4 billion of our common stock during the first nine months of 2021 and 2020, respectively. As of September 30, 2021, we had approximately 52.3 million shares remaining under our current repurchase authorization. Shares repurchased are generally held for issuance in connection with our equity plans.

Acquisitions and Dispositions

Acquisitions

In June 2021 we acquired SpendLabs, in May 2021 we acquired Pineapple Payments, and in March 2021 we acquired Radius8. Additionally, in January 2021, we acquired a remaining ownership interest in Ondot, in which we previously held a noncontrolling equity interest. We acquired these businesses for an aggregate purchase price of $524 million, net of $19 million of acquired cash, and including earn-out provisions estimated at an aggregate fair value of $30 million. We funded these acquisitions by utilizing a combination of available cash and existing availability under our revolving credit facility. The results of operations for these acquired businesses are included in our consolidated results from the respective dates of acquisition.

In May 2020, we acquired Inlet and, in March 2020, we acquired MerchantPro and Bypass. 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. We funded these acquisitions by utilizing a combination of available cash and existing availability under our revolving credit facility. The results of operations for these acquired businesses are included in our consolidated results from the respective dates of acquisition.

On October 18, 2021, we entered into a definitive agreement to acquire BentoBox, which we expect to close in the fourth quarter of 2021, subject to customary approvals and closing conditions. We plan to fund this acquisition by utilizing a combination of available cash and available borrowing capacity.

Dispositions

Effective July 2020, we and BANA dissolved the BAMS 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 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 through the date of dissolution. The business transferred to us is included within our Acceptance segment. We continue to provide merchant processing and related services to former BAMS clients allocated to BANA, at BAMS pricing, through June 2023. We 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.

In February 2020, we sold a 60% controlling interest of our Investment Services business, subsequently renamed as Tegra118. We received pre-tax proceeds of $578 million, net of related expenses, resulting in a pre-tax gain on the sale of $428 million, with the related tax expense of $112 million. The revenues, expenses and cash flows of the Investment Services business were consolidated into our financial results through the date of the sale transaction. The net proceeds from the sale were primarily used to repurchase shares of our common stock. In February 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, which was subsequently renamed as InvestCloud. In connection with the transaction, we made an additional capital contribution, funded under our revolving credit facility, of $200 million into the combined entity and recognized a pre-tax gain of $28 million, with a related tax expense of $6 million. In June 2021, we sold our entire ownership interest in InvestCloud for $466 million, resulting in a pre-tax gain of $33 million, with a related tax expense of $8 million. The net proceeds from the sale were primarily used to pay down outstanding borrowings on our term loan facility.

Indebtedness

(In millions)			September 30, 2021						December 31, 2020
Short-term and current maturities of long-term debt:
Foreign lines of credit			$	155					$	144
Finance lease and other financing obligations			294						240
Total short-term and current maturities of long-term debt			$	449					$	384
Long-term debt:
4.750% senior notes due June 2021			$	—					$	400
3.500% senior notes due October 2022			700						700
0.375% senior notes due July 2023 (Euro-denominated)			579						612
3.800% senior notes due October 2023			1,000						1,000
2.750% senior notes due July 2024			2,000						2,000
3.850% senior notes due June 2025			900						900
2.250% senior notes due July 2025 (British Pound-denominated)			707						709
3.200% senior notes due July 2026			2,000						2,000
2.250% senior notes due June 2027			1,000						1,000
1.125% senior notes due July 2027 (Euro-denominated)			579						612
4.200% senior notes due October 2028			1,000						1,000
3.500% senior notes due July 2029			3,000						3,000
2.650% senior notes due June 2030			1,000						1,000
1.625% senior notes due July 2030 (Euro-denominated)			579						612
3.000% senior notes due July 2031 (British Pound-denominated)			707						709
4.400% senior notes due July 2049			2,000						2,000
Receivable securitized loan			500						425
Term loan facility			355						1,250
Unamortized discount and deferred financing costs			(131)						(155)
U.S. commercial paper notes			1,377						—
Revolving credit facility			107						22
Finance lease and other financing obligations			581						504
Total long-term debt			$	20,540					$	20,300

At September 30, 2021, our debt consisted primarily of $17.8 billion of fixed-rate senior notes and $1.4 billion of outstanding borrowings under our U.S. commercial paper notes program. Interest on our U.S. dollar-denominated senior notes is paid semi-annually, while interest on our Euro and British Pound-denominated senior notes is paid annually. Interest on our revolving credit facility and commercial paper notes is generally paid weekly, or more frequently on occasion, and interest on our term loan is paid monthly. Outstanding borrowings under the receivable securitized loan, which matures in July 2022, and U.S commercial paper notes program are classified in the consolidated balance sheet as long-term, as we have the intent to refinance these borrowings on a long-term basis through the continued issuance of new commercial paper notes upon maturity, and we also have the ability to refinance such borrowings under our revolving credit facility. We used the net proceeds from the issuance of U.S commercial paper notes to repay borrowings outstanding under our revolving credit facility as of the issuance date, to repay the 4.750% senior notes that matured in June 2021, and to pay down outstanding borrowings on our term loan facility.

The indentures governing our senior notes contain covenants that, among other matters, limit (i) our ability to consolidate or merge with or into, or convey, transfer or lease all or substantially all of our properties and assets to, another person, (ii) our and certain of our subsidiaries’ ability to create or assume liens, and (iii) our and certain of our subsidiaries’ ability to engage in sale and leaseback transactions. We may, at our option, redeem the senior notes, in whole or in part, at any time prior to the applicable maturity date.

The revolving credit facility and term loan facility contain various restrictions and covenants that require us, among other things, to (i) limit our consolidated indebtedness as of the end of each fiscal quarter to no more than three and one-half times our consolidated net earnings before interest, taxes, depreciation, amortization, non-cash charges and expenses and certain other adjustments (“EBITDA”) during the period of four fiscal quarters then ended, subject to certain exceptions, and (ii) maintain EBITDA of at least three times our consolidated interest expense as of the end of each fiscal quarter for the period of four fiscal quarters then ended.

During the first nine months of 2021, we were in compliance with all financial debt covenants. Our ability to meet future debt covenant requirements will depend on our continued ability to generate earnings and cash flows. We expect to remain in compliance with all terms and conditions associated with our outstanding debt, including financial debt covenants.

Variable Rate Debt

Our variable rate debt consisted of the following at September 30, 2021:

(In millions)			Maturity						Weighted-Average Interest Rate						Outstanding Borrowings
Foreign lines of credit			n/a						29.39%						$	155
Receivable securitized loan			July 2022						0.93%						500
Term loan facility			July 2024						1.34%						355
U.S. commercial paper notes			various						0.19%						1,377
Revolving credit facility			September 2023						1.17%						107
Total variable rate debt															$	2,494

We maintain short-term lines of credit with foreign banks and alliance partners primarily to fund settlement activity. These arrangements are primarily associated with our international operations and are in various functional currencies, the most significant of which is the Argentine peso.

We maintain a consolidated wholly-owned subsidiary, First Data Receivables, LLC (“FDR”). FDR is a party to certain receivables financing arrangements, including an agreement (“Receivables Financing Agreement”) with certain financial institutions and other persons from time to time party thereto as lenders and group agents, pursuant to which certain of our wholly-owned subsidiaries have agreed to transfer and contribute receivables to FDR, and FDR in turn may obtain borrowings from the financial institutions and other lender parties to the Receivables Financing Agreement secured by liens on those receivables. FDR’s assets are not available to satisfy the obligations of any other of our entities or affiliates, and FDR’s creditors would be entitled, upon its liquidation, to be satisfied out of FDR’s assets prior to any assets or value in FDR becoming available to us. FDR held $1.0 billion in receivables as part of the securitization program, and utilized the receivables as collateral in borrowings of $500 million at September 30, 2021. Outstanding borrowings bear interest at a variable rate based on LIBOR plus a specified margin. At September 30, 2021, the collateral capacity under the Receivables Financing Agreement was $766 million, and the maximum borrowing capacity was $500 million.

Beginning in May 2021, we have maintained a U.S. unsecured commercial paper notes program with various maturities generally ranging from one to four weeks. Outstanding borrowings under the commercial paper notes bear interest based on the prevailing rates at the time of issuance.

We maintain an amended and restated revolving credit facility with aggregate commitments available for $3.5 billion of total capacity. Outstanding borrowings under the revolving credit facility and term loan bear interest at a variable rate based on LIBOR or a base rate, plus, in each case, a specified margin based on our long-term debt rating in effect from time to time. There are no significant commitment fees and no compensating balance requirements on the revolving credit facility.

Cash and Cash Equivalents

Investments (other than those included in settlement assets) with original maturities of three months or less that are readily convertible to cash are considered to be cash equivalents. At September 30, 2021 and December 31, 2020, we held $933 million and $906 million in cash and cash equivalents, respectively.

The table below details the cash and cash equivalents at:

			September 30, 2021																		December 31, 2020
(In millions)			Domestic						International						Total						Domestic						International						Total
Available			$	276					$	251					$	527					$	337					$	177					$	514
Unavailable (1)			39						367						406						57						335						392
Total			$	315					$	618					$	933					$	394					$	512					$	906

(1)Represents cash held primarily by our joint ventures that is not available to fund operations outside of those entities unless the board of directors for said entities declares a dividend, as well as cash held by certain other entities that are subject to foreign exchange controls in certain countries or regulatory capital requirements.

Impact of COVID-19 Pandemic

The COVID-19 pandemic has created significant uncertainty as to general global economic and market conditions. We believe we have adequate capital resources and sufficient access to external financing sources to satisfy our current and reasonably anticipated requirements for funds to conduct our operations and meet other needs in the ordinary course of our business. However, as the impact of the pandemic on the economy and our operations further evolves, we will continue to assess our liquidity needs. The ability to continue to service debt and meet lease and other obligations as they come due depends on our continued ability to generate earnings and cash flows. A lack of continued recovery or further deterioration in economic and market conditions could materially affect our future access to our sources of liquidity, particularly our cash flows from operations.

We engage in regular communication with the banks that participate in our revolving credit facility. During these communications, none of the banks have indicated that they may be unable to perform on their commitments. We periodically review our banking and financing relationships, considering the stability of the institutions, pricing we receive on services, and other aspects of the relationships. Based on these communications and our monitoring activities, we believe the likelihood of one of our banks not performing on its commitment is remote. We maintain a U.S. commercial paper notes program to access funding for general corporate purposes at favorable rates and to provide a source of liquidity. As of September 30, 2021, we had a commercial paper credit rating of P-2 from Moody’s Investors Service, Inc. (“Moody’s”) and A-2 from Standard & Poor’s Rating Services (“S&P). Any downgrade to our commercial paper credit ratings or instability in the commercial paper markets may adversely impact our ability to access funding through our commercial paper notes program and require us to rely more heavily on more expensive financing arrangements, including our revolving credit facility. In addition, the long-term debt markets have historically provided us with a source of liquidity.

Although we do not currently anticipate an inability to obtain financing from long-term debt markets in the future, the COVID-19 pandemic could make financing more difficult and/or expensive to obtain. Our ability to access the long-term debt markets on favorable interest rates and other terms also depends on the ratings assigned by the credit rating agencies to our indebtedness. As of September 30, 2021, we had a corporate credit rating of Baa2 with a stable outlook from Moody’s and BBB with a stable outlook from S&P. In the event that the ratings of our outstanding long-term debt securities were substantially lowered or withdrawn for any reason, or if the ratings assigned to any new issue of long-term debt securities were significantly lower than those noted above, particularly if we no longer had investment grade ratings, our ability to access the debt markets could be adversely affected and our interest expense could increase under the terms of certain of our long-term debt securities.