filings.toolsItem 1. FINANCIAL STATEMENTS
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Item 1. FINANCIAL STATEMENTS
Fiserv, Inc.
Consolidated Statements of Income
(In millions, except per share data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Processing and services (1) | $ | 4,273 | $ | 4,237 | $ | 12,622 | $ | 12,377 | |||||||||||||||
| Product | 990 | 978 | 3,287 | 2,828 | |||||||||||||||||||
| Total revenue | 5,263 | 5,215 | 15,909 | 15,205 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Cost of processing and services | 1,486 | 1,346 | 4,287 | 4,043 | |||||||||||||||||||
| Cost of product | 679 | 661 | 2,057 | 1,951 | |||||||||||||||||||
| Selling, general and administrative | 1,762 | 1,606 | 5,155 | 5,000 | |||||||||||||||||||
| Net gain on sales and distribution of other assets | (100) | — | (117) | — | |||||||||||||||||||
| Total expenses | 3,827 | 3,613 | 11,382 | 10,994 | |||||||||||||||||||
| Operating income | 1,436 | 1,602 | 4,527 | 4,211 | |||||||||||||||||||
| Interest expense, net | (422) | (326) | (1,118) | (872) | |||||||||||||||||||
| Other expense, net | (50) | (5) | (107) | (17) | |||||||||||||||||||
| Income before income taxes and income (loss) from investments in unconsolidated affiliates | 964 | 1,271 | 3,302 | 3,322 | |||||||||||||||||||
| Income tax provision | (173) | (74) | (609) | (448) | |||||||||||||||||||
| Income (loss) from investments in unconsolidated affiliates | 8 | (626) | (16) | (642) | |||||||||||||||||||
| Net income | 799 | 571 | 2,677 | 2,232 | |||||||||||||||||||
| Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest | 7 | 7 | 8 | 39 | |||||||||||||||||||
| Net income attributable to Fiserv, Inc. | $ | 792 | $ | 564 | $ | 2,669 | $ | 2,193 | |||||||||||||||
| Net income attributable to Fiserv, Inc. per share: | |||||||||||||||||||||||
| Basic | $ | 1.46 | $ | 0.98 | $ | 4.85 | $ | 3.76 | |||||||||||||||
| Diluted | $ | 1.46 | $ | 0.98 | $ | 4.83 | $ | 3.74 | |||||||||||||||
| Shares used in computing net income attributable to Fiserv, Inc. per share: | |||||||||||||||||||||||
| Basic | 540.2 | 573.7 | 550.8 | 582.5 | |||||||||||||||||||
| Diluted | 541.8 | 576.9 | 553.0 | 585.7 |
(1)Includes processing and other fees charged to related party investments accounted for under the equity method of $21 million and $35 million for the three months ended September 30, 2025 and 2024, respectively, and $77 million and $111 million for the nine months ended September 30, 2025 and 2024, respectively (see Note 19).
See accompanying notes to consolidated financial statements.
Fiserv, Inc.
Consolidated Statements of Comprehensive Income
(In millions)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | 799 | $ | 571 | $ | 2,677 | $ | 2,232 | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Fair market value adjustment on derivatives | (11) | (7) | (7) | (5) | |||||||||||||||||||
| Reclassification adjustment for net realized losses (gains) on cash flow hedges included in cost of processing and services | 2 | (1) | 4 | (3) | |||||||||||||||||||
| Reclassification adjustment for net realized losses on cash flow hedges included in net interest expense | 3 | 3 | 10 | 11 | |||||||||||||||||||
| Tax impacts of derivatives | 1 | 1 | (2) | (1) | |||||||||||||||||||
| Unrealized loss on defined benefit pension plans (see Note 1) | — | — | — | (105) | |||||||||||||||||||
| Tax impacts of defined benefit pension plans | — | — | — | 26 | |||||||||||||||||||
| Foreign currency translation | (71) | 210 | 386 | (110) | |||||||||||||||||||
| Tax impacts of foreign currency translation | (6) | 56 | 132 | 17 | |||||||||||||||||||
| Total other comprehensive income (loss) | (82) | 262 | 523 | (170) | |||||||||||||||||||
| Comprehensive income | $ | 717 | $ | 833 | $ | 3,200 | $ | 2,062 | |||||||||||||||
| Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest | 7 | 7 | 8 | 39 | |||||||||||||||||||
| Less: other comprehensive income attributable to noncontrolling interests | 2 | 21 | 95 | 3 | |||||||||||||||||||
| Comprehensive income attributable to Fiserv, Inc. | $ | 708 | $ | 805 | $ | 3,097 | $ | 2,020 |
See accompanying notes to consolidated financial statements.
Fiserv, Inc.
Consolidated Balance Sheets
(In millions)
(Unaudited)
| September 30, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 1,068 | $ | 1,236 | |||||||
| Trade accounts receivable, less allowance for doubtful accounts | 3,957 | 3,725 | |||||||||
| Prepaid expenses and other current assets | 3,597 | 3,087 | |||||||||
| Settlement assets | 15,535 | 15,429 | |||||||||
| Total current assets | 24,157 | 23,477 | |||||||||
| Property and equipment, net | 2,968 | 2,374 | |||||||||
| Customer relationships, net | 5,270 | 5,868 | |||||||||
| Other intangible assets, net | 4,892 | 4,072 | |||||||||
| Goodwill | 37,449 | 36,584 | |||||||||
| Contract costs, net | 997 | 996 | |||||||||
| Investments in unconsolidated affiliates | 1,084 | 1,506 | |||||||||
| Other long-term assets | 2,553 | 2,299 | |||||||||
| Total assets | $ | 79,370 | $ | 77,176 | |||||||
| Liabilities and Equity | |||||||||||
| Accounts payable and other current liabilities | $ | 4,644 | $ | 4,799 | |||||||
| Short-term and current maturities of long-term debt | 1,323 | 1,110 | |||||||||
| Contract liabilities | 873 | 819 | |||||||||
| Settlement obligations | 15,535 | 15,429 | |||||||||
| Total current liabilities | 22,375 | 22,157 | |||||||||
| Long-term debt | 28,876 | 23,730 | |||||||||
| Deferred income taxes | 1,825 | 2,477 | |||||||||
| Long-term contract liabilities | 257 | 263 | |||||||||
| Other long-term liabilities | 893 | 863 | |||||||||
| Total liabilities | 54,226 | 49,490 | |||||||||
| Commitments and Contingencies (see Note 18) | |||||||||||
| Fiserv, Inc. Shareholders’ Equity: | |||||||||||
| Preferred stock, no par value: 25 million shares authorized; none issued | — | — | |||||||||
| Common stock, $0.01 par value: 1,800 million shares authorized; 784 million shares issued | 8 | 8 | |||||||||
| Additional paid-in capital | 23,219 | 23,080 | |||||||||
| Accumulated other comprehensive loss | (985) | (1,413) | |||||||||
| Retained earnings | 26,244 | 23,575 | |||||||||
| Treasury stock, at cost, 247 million and 220 million shares, respectively | (23,365) | (18,182) | |||||||||
| Total Fiserv, Inc. shareholders’ equity | 25,121 | 27,068 | |||||||||
| Noncontrolling interests | 23 | 618 | |||||||||
| Total equity | 25,144 | 27,686 | |||||||||
| Total liabilities and equity | $ | 79,370 | $ | 77,176 |
See accompanying notes to consolidated financial statements.
Fiserv, Inc.
Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 2,677 | $ | 2,232 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and other amortization | 1,365 | 1,248 | |||||||||
| Amortization of acquisition-related intangible assets | 993 | 1,089 | |||||||||
| Amortization of financing costs and debt discounts | 34 | 33 | |||||||||
| Share-based compensation | 302 | 273 | |||||||||
| Deferred income taxes | (589) | (539) | |||||||||
| Net gain on sales and distribution of other assets | (117) | — | |||||||||
| Loss from investments in unconsolidated affiliates | 16 | 642 | |||||||||
| Distributions from unconsolidated affiliates | 34 | 29 | |||||||||
| Non-cash foreign currency exchange losses | 118 | 112 | |||||||||
| Other operating activities | (5) | (19) | |||||||||
| Changes in assets and liabilities, net of effects from acquisitions: | |||||||||||
| Trade accounts receivable | (111) | (136) | |||||||||
| Prepaid expenses and other assets | (561) | (503) | |||||||||
| Contract costs | (179) | (189) | |||||||||
| Accounts payable and other liabilities | 117 | 134 | |||||||||
| Contract liabilities | 24 | 4 | |||||||||
| Net cash provided by operating activities | 4,118 | 4,410 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures, including capitalized software and other intangibles | (1,321) | (1,170) | |||||||||
| Payments for acquisition of businesses, net of cash acquired | (369) | — | |||||||||
| Merchant cash advances, net | (614) | (645) | |||||||||
| Distributions from unconsolidated affiliates | 17 | 59 | |||||||||
| Purchases of investments | (78) | (37) | |||||||||
| Proceeds from sale of investments | 486 | 53 | |||||||||
| Other investing activities | (18) | — | |||||||||
| Net cash used in investing activities | (1,897) | (1,740) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Debt proceeds | 5,753 | 6,141 | |||||||||
| Debt repayments | (3,352) | (4,665) | |||||||||
| Net borrowings from commercial paper and short-term borrowings | 1,169 | 345 | |||||||||
| Payments of debt financing costs | (20) | (28) | |||||||||
| Proceeds from issuance of treasury stock | 53 | 79 | |||||||||
| Purchases of treasury stock, including employee shares withheld for tax obligations | (5,695) | (4,491) | |||||||||
| Settlement activity, net | (74) | 487 | |||||||||
| Distributions paid to noncontrolling interests and redeemable noncontrolling interest | (2) | (48) | |||||||||
| Payments to acquire noncontrolling interests of consolidated subsidiaries | (436) | — | |||||||||
| Payments of acquisition-related contingent consideration | — | (3) | |||||||||
| Settlement of derivative contracts | 65 | — | |||||||||
| Other financing activities | 4 | (2) | |||||||||
| Net cash used in financing activities | (2,535) | (2,185) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 86 | 25 | |||||||||
| Net change in cash and cash equivalents | (228) | 510 | |||||||||
| Cash and cash equivalents, beginning balance | 2,993 | 2,963 | |||||||||
| Cash and cash equivalents, ending balance | $ | 2,765 | $ | 3,473 |
See accompanying notes to consolidated financial statements.
Fiserv, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
1. Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and accompanying notes are presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of Fiserv, Inc. (the “Company”). These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Principles of Consolidation
The consolidated financial statements include the accounts of Fiserv, Inc. and its subsidiaries in which the Company holds a majority controlling financial interest. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Control is typically established when ownership and voting interests in an entity are greater than 50%. Investments in which the Company has significant influence but not control are accounted for using the equity method of accounting, for which the Company’s share of net income or loss is reported within income (loss) 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. Significant influence over an affiliate’s operations generally coincides with an ownership interest of between 20% and 50%; for partnerships and limited liability companies, an ownership interest of between 3% and 50%; or board of director representation may also constitute significant influence.
Noncontrolling interests in entities of which the Company maintains a majority controlling financial interest represent the minority shareholders’ share of the net income or loss and equity in consolidated subsidiaries. The Company’s noncontrolling interests presented in the consolidated statements of income include net income (loss) attributable to noncontrolling interests and, in 2024, redeemable noncontrolling interest. Noncontrolling interests are presented as a component of equity in the consolidated balance sheets. Additional information regarding the Company’s redeemable noncontrolling interest is included in Note 11 to the consolidated financial statements.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash and investments with original maturities of 90 days or less and are stated at cost in the consolidated balance sheets, which approximates market value. Cash and cash equivalents held on behalf of merchants and other payees are included in settlement assets in the consolidated balance sheets. The changes in settlement cash and cash equivalents are included in settlement activity, net within cash flows from financing activities in the consolidated statements of cash flows. Cash and cash equivalents that are restricted from use due to contractual or legal restrictions are included in other long-term assets in the consolidated balance sheets.
The following table provides a reconciliation between cash and cash equivalents on the consolidated balance sheets and the consolidated statements of cash flows:
| (In millions) | September 30, 2025 | December 31, 2024 | September 30, 2024 | |||||||||||||||||||||||
| Cash and cash equivalents on the consolidated balance sheets | $ | 1,068 | $ | 1,236 | $ | 1,228 | ||||||||||||||||||||
| Cash and cash equivalents included in settlement assets | 1,682 | 1,756 | 2,243 | |||||||||||||||||||||||
| Restricted cash | 15 | 1 | 2 | |||||||||||||||||||||||
| Total cash and cash equivalents on the consolidated statements of cash flows | $ | 2,765 | $ | 2,993 | $ | 3,473 |
Allowance for Doubtful Accounts
The Company analyzes the collectability of trade accounts receivable by considering historical bad debts and issued client credits, client creditworthiness, current economic trends, changes in client payment terms and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. The allowance for doubtful accounts was $82 million and $71 million at September 30, 2025 and December 31, 2024, respectively.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
| (In millions) | September 30, 2025 | December 31, 2024 | ||||||||||||
| Prepaid maintenance, postage and insurance | $ | 302 | $ | 216 | ||||||||||
| Other prepaid expenses | 258 | 188 | ||||||||||||
| Total prepaid expenses (1) | 560 | 404 | ||||||||||||
| Income tax receivables (2) | 278 | 501 | ||||||||||||
| Clover Capital and other merchant cash advances, net | 513 | 381 | ||||||||||||
| Settlement advance cash payments | 1,372 | 1,101 | ||||||||||||
| Other current assets | 874 | 700 | ||||||||||||
| Total other current assets | 3,037 | 2,683 | ||||||||||||
| Total prepaid expenses and other current assets | $ | 3,597 | $ | 3,087 |
(1)Prepaid expenses represent advance payments for goods and services to be consumed in the future.
(2)Includes receivables associated with transferable federal tax credits (see Note 15).
The Company offers merchants advance access to capital, primarily through its Clover Capital program. Under this program, merchants sell fixed amounts of their future credit card receivables to the Company in exchange for an up-front purchase price payment. Future credit card receivables purchased by the Company under its merchant cash advance programs, including Clover Capital, were $544 million and $397 million at September 30, 2025 and December 31, 2024, respectively. The Company maintained a reserve of $31 million and $16 million at September 30, 2025 and December 31, 2024, respectively, based on an estimate of uncollectible amounts.
The Company also offers merchants within its international operations advance access to capital by providing them the opportunity to receive settlement cash payments in advance in exchange for their receivables from card issuers, including when cardholders have elected to pay over time in installments. These local currency denominated arrangements are primarily associated with the Company’s operations in Latin America, the most significant of which are denominated in Argentine Peso and Brazilian Real.
Settlement Assets and Obligations
Settlement assets and obligations represent intermediary balances arising from the settlement process, which involves the transfer of funds among card issuers, payment networks, processors, merchants and consumers, and collateral amounts held to manage merchant credit risk, primarily associated with the Company’s merchant acquiring services. As a processor, the Company facilitates the clearing and settlement activity for the merchant and records settlement assets and obligations upon
processing a payment transaction. Settlement assets represent cash received or amounts receivable from agents, payment networks, bank partners, merchants or direct consumers. Settlement obligations represent amounts payable to merchants and payees.
Certain merchant settlement assets (included within settlement receivables) that relate to settlement obligations are held by partner banks. Although the Company does not have legal ownership of these assets, it has the right to use them to satisfy the related settlement obligations. The Company records settlement obligations for amounts payable to merchants and for outstanding payment instruments issued to payees that have not yet been presented for settlement.
Allowance for Merchant Credit Losses
With respect to the Company’s merchant acquiring business, the Company’s merchant customers have the legal obligation to refund any charges properly reversed by the cardholder. However, in the event the Company is not able to collect the refunded amounts from the merchants, the Company may be liable for the reversed charges. The Company’s risk in this area primarily relates to situations where a cardholder has purchased goods or services to be delivered in the future. The Company requires cash deposits, guarantees, letters of credit or other types of collateral from certain merchants to mitigate this risk. Collateral held by the Company, or held by partner banks for the Company’s benefit, is classified within settlement assets, and the obligation to repay the collateral is classified within settlement obligations in the consolidated balance sheets. The amount of merchant collateral available to the Company was $605 million and $598 million at September 30, 2025 and December 31, 2024, respectively. The Company also utilizes a number of systems and procedures to manage merchant credit risk. Despite these efforts, the Company experiences losses due to merchant defaults. The aggregate merchant credit loss expense, recognized by the Company within cost of processing and services in the consolidated statements of income, was $32 million and $24 million for the three months ended September 30, 2025 and 2024, respectively, and $93 million and $77 million for the nine months ended September 30, 2025 and 2024, respectively.
The Company maintains an allowance for merchant credit losses that are expected to exceed the amount of merchant collateral. The allowance includes estimated losses from anticipated chargebacks and fraud events that have been incurred on merchant payment transactions that have been processed but not yet reported to the Company, which is recorded within accounts payable and other current liabilities in the consolidated balance sheets, as well as estimated losses on refunded amounts to cardholders that have not yet been collected from the merchants, which is recorded within prepaid expenses and other current assets in the consolidated balance sheets. The allowance is based primarily on the Company’s historical experience of credit losses and other factors such as changes in economic conditions or increases in merchant fraud. The aggregate merchant credit loss allowance was $44 million and $40 million at September 30, 2025 and December 31, 2024, respectively.
Goodwill
Goodwill represents the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis, or more frequently if circumstances indicate possible impairment. Goodwill is tested for impairment at a reporting unit level, which is one level below the Company’s operating segments. The Company’s most recent annual impairment assessment of its reporting units in the fourth quarter of 2024 determined that its goodwill was not impaired as the estimated fair values exceeded the carrying values for each of the Company’s reporting units. However, it is reasonably possible that future developments related to the interest or currency exchange rate environments; a shift in strategic initiatives; a deterioration in financial performance within a particular reporting unit(s); or significant changes in the composition of, or assumptions used in, the quantitative test for certain of the Company’s reporting units (such as an increase in risk-adjusted discount rates) could have a future material impact on one or more of the estimates and assumptions used to evaluate goodwill impairment. There is no accumulated goodwill impairment for the Company through September 30, 2025.
Foreign Currency
The U.S. dollar is the functional currency of the Company’s U.S.-based and certain foreign-based businesses. Where the functional currency of subsidiaries differs from the U.S. dollar, assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the reporting period. Gains and losses from foreign currency translation are recorded as a separate component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are included in determining net income for the reporting period.
Financial statements of subsidiaries located in highly inflationary economies outside of the U.S. are remeasured into U.S. dollars, and the foreign currency gains and losses from the remeasurement of monetary assets and liabilities are reflected in the consolidated statements of income, rather than as foreign currency translation within accumulated other comprehensive loss in the consolidated balance sheets. The remeasurement of monetary assets and liabilities in highly inflationary economies,
including Argentina, resulted in foreign currency exchange losses of $53 million and $22 million for the three months ended September 30, 2025 and 2024, respectively, and $117 million and $75 million for the nine months ended September 30, 2025 and 2024, respectively, which is included within other expense, net in the consolidated statements of income.
To reduce exposure to changes in the value of the Company’s net investments in certain of its foreign currency-denominated subsidiaries due to changes in foreign currency exchange rates, the Company uses fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries. Foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation, net of tax, within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss within the consolidated balance sheets until the sale or complete liquidation of the underlying foreign currency-denominated subsidiaries.
Derivatives
Derivatives are entered into for periods consistent with related underlying exposures and are recorded in the consolidated balance sheets as either an asset or liability measured at fair value. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive loss and recognized in the consolidated statements of income when the hedged item affects earnings. If the derivative is designated as a net investment hedge, changes in the fair value of the derivative, net of tax, are recorded in the foreign currency translation component of other comprehensive income (loss) until the sale or complete liquidation of the underlying net investment. If the derivative is designated as a fair value hedge, changes in the fair value of the derivative are recorded in the same line item as the changes in the fair value of the hedged item and recognized in the consolidated statements of income. To the extent a derivative is not designated as a hedge, changes in fair value are recognized in the consolidated statements of income. The Company’s policy is to enter into derivatives as economic hedges with creditworthy institutions to limit exposure to changing interest rates and foreign currency rate fluctuations, and not to enter into such derivatives for speculative purposes. Additional information regarding the Company’s derivatives and hedging instruments is included in Note 7 to the consolidated financial statements.
Defined Benefit Pension Plans
The Company maintained frozen noncontributory defined benefit pension plans covering certain of its employees in the U.S. and United Kingdom (“U.K.”), which were terminated in September 2023. In March 2024, the Company entered into a group annuity insurance contract to provide for the administration of future payments to eligible plan participants of the terminated U.K. plan. In connection with the buy-in of this insurance policy, the plan’s projected benefit obligation was remeasured in the first quarter of 2024 to the value of the group annuity insurance contract, resulting in an unrecognized loss, net of tax, of approximately $63 million recorded in accumulated other comprehensive loss within the consolidated balance sheet.
Upon the settlement of the terminated plans, which was completed in the fourth quarter of 2024, the Company funded a plan termination liability shortfall for the U.S. defined benefit pension plan of $20 million and recognized a non-cash pre-tax pension settlement charge for the U.S. and U.K. plans of $147 million. The Company received a refund, net of excise tax, of $43 million of residual surplus related to the U.K. plan in the second quarter of 2025.
Interest Expense, Net
Interest expense, net consists of interest expense primarily associated with the Company’s outstanding borrowings and finance lease obligations, as well as interest income primarily associated with the Company’s investment securities. Interest expense, net consisted of the following:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Interest expense | $ | (432) | $ | (339) | $ | (1,147) | $ | (904) | |||||||||||||||
| Interest income | 10 | 13 | 29 | 32 | |||||||||||||||||||
| Interest expense, net | $ | (422) | $ | (326) | $ | (1,118) | $ | (872) |
2. Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncement
In 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which enhances and
expands the current annual and interim requirements on segment information disclosures. Under the new disclosure requirements, entities are required to disclose, on an annual and interim basis: significant segment expense categories and amounts for each reportable segment that are included in the reported measure of segment profit or loss and regularly provided to the chief operating decision maker (“CODM”); an aggregate amount and qualitative description of other segment items included in each reported measure of segment profit or loss for each reportable segment; measures of a segment’s profit or loss that are used by the CODM to assess segment performance and decide how to allocate resources; and disclosure of the title and position of the individual or the name of the group identified as the CODM. For public entities, the provisions within ASU 2023-07 are to be applied retrospectively for all comparative periods and were effective for fiscal years beginning after December 15, 2023, and for interim periods of fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-07 effective for the year ended December 31, 2024, with retrospective application of the additional segment information for the years ended December 31, 2023 and 2022. Additional information regarding the Company’s reportable segments, including the application of the provisions of ASU 2023-07 for the three and nine months ended September 30, 2025 and 2024, is included in Note 20 to the consolidated financial statements.
Recently Issued Accounting Pronouncements
In 2023, the FASB issued ASU No. 2023-09*, Income Taxes (Topic 740) - Improvement to Income Tax Disclosures* (“ASU 2023-09”), which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. ASU 2023-09 requires entities to consistently categorize and provide greater disaggregation of information within the income tax reconciliation to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective and statutory tax rates. For public entities, the provisions within ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, and for interim periods of fiscal years beginning after December 15, 2025. The Company intends to adopt the new income tax disclosure requirements in accordance with the provisions of ASU 2023-09 on a prospective basis, effective for its fiscal year ending December 31, 2025.
In 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. Under ASU 2024-03, entities will be required to disaggregate information, in tabular format, about specific natural expense categories underlying certain income statement expense line items that are considered ‘relevant’, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. Additionally, ASU 2024-03 requires the disclosure of selling expenses, along with how an entity defines such expenses. For public entities, the provisions within ASU 2024-03 (as further clarified through ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)) are effective for the first annual reporting period beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. The provisions within ASU 2024-03 are required to be applied prospectively; however, such provisions may be applied retrospectively for all comparative periods following the effective date. The Company is currently assessing the impact the adoption of ASU 2024-03 will have on its consolidated financial statement disclosures.
In 2025, the FASB issued ASU No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), to modernize the accounting guidance for costs to develop software for internal use. ASU 2025-06 amends the existing standard that refers to various stages of a software development project to better align with current software development methods, such as agile programming. Under ASU 2025-06, cost capitalization begins when management has authorized and committed to funding the project, and it is probable the project will be completed and the software will be used to perform its intended function. For all entities, the provisions within ASU 2025-06 are effective for fiscal years beginning after December 15, 2027, and for interim reporting periods within those fiscal years. The provisions within ASU 2025-06 can be applied either retrospectively through a cumulative-effect adjustment, prospectively to software costs incurred after the adoption date (on existing, in-process software projects or new projects), or on a modified prospective basis. The Company is currently assessing the impact the adoption of ASU 2025-06 will have on its consolidated financial statements and disclosures.
3. Revenue Recognition
The Company generates revenue from the delivery of processing, service and product solutions. Revenue is measured based on consideration specified in a contract with a customer and excludes any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time.
Disaggregation of Revenue
The Company’s operations are comprised of the Merchant and the Financial reportable segments (see Note 20). The table below presents the Company’s revenue disaggregated by business line and includes a reconciliation with its reportable segments. The
Company serves its global client base by working among its geographic teams across various regions, including the U.S. and Canada; Europe, Middle East and Africa (“EMEA”); Latin America (“LATAM”); and Asia Pacific (“APAC”). The majority of the Company’s revenue is earned in the U.S., with revenue generated within its EMEA, LATAM and APAC regions comprising approximately 16% and 15% of total revenue for the three and nine months ended September 30, 2025, respectively, and approximately 15% of total revenue for each of the three and nine months ended September 30, 2024.
| (In millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| Revenue by Business Line | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Small Business | $ | 1,741 | $ | 1,627 | $ | 5,109 | $ | 4,719 | ||||||||||||||||||
| Enterprise | 580 | 558 | 1,669 | 1,563 | ||||||||||||||||||||||
| Processing | 265 | 284 | 824 | 850 | ||||||||||||||||||||||
| Total Merchant Solutions segment revenue | $ | 2,586 | $ | 2,469 | $ | 7,602 | $ | 7,132 | ||||||||||||||||||
| Digital Payments | $ | 939 | $ | 987 | $ | 2,985 | $ | 2,894 | ||||||||||||||||||
| Issuing | 802 | 789 | 2,492 | 2,316 | ||||||||||||||||||||||
| Banking | 592 | 636 | 1,825 | 1,866 | ||||||||||||||||||||||
| Total Financial Solutions segment revenue | $ | 2,333 | $ | 2,412 | $ | 7,302 | $ | 7,076 | ||||||||||||||||||
| Corporate and Other | $ | 344 | $ | 334 | $ | 1,005 | $ | 997 | ||||||||||||||||||
| Total Revenue | $ | 5,263 | $ | 5,215 | $ | 15,909 | $ | 15,205 |
Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with customers:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Contract assets | $ | 904 | $ | 832 | |||||||
| Contract liabilities | 1,130 | 1,082 |
Contract assets, reported within other long-term assets in the consolidated balance sheets, primarily relate to customer discounts (contract incentives) where revenue is recognized and payment of consideration under the contract is contingent upon the transfer of services to a customer over the contractual period. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue) for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $711 million of revenue during the nine months ended September 30, 2025 that was included in the contract liabilities balance at the beginning of the period.
Transaction Price Allocated to Remaining Performance Obligations
The following table includes estimated processing and services revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at September 30, 2025:
| (In millions) | |||||
| Year Ending December 31, | |||||
| Remainder of 2025 | $ | 655 | |||
| 2026 | 2,345 | ||||
| 2027 | 1,781 | ||||
| 2028 | 1,251 | ||||
| Thereafter | 1,385 |
The Company applies the optional exemption under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), and does not disclose information about remaining performance obligations for account- and transaction-based processing fees that qualify for recognition under the as-invoiced practical expedient. These multi-year contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon the customer’s request. The Company also applies the optional
exemptions under ASC 606 and does not disclose information for variable consideration that is a sales-based or usage-based royalty promised in exchange for a license of intellectual property or that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service in a series. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum processing fees and maintenance fees under contracts with an original expected duration of greater than one year.
4. Acquisitions
Acquisitions of Businesses
Acquisitions were accounted for as business combinations using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Purchase price was allocated to the respective identifiable assets acquired and liabilities assumed based on the estimated fair values at the date of acquisitions. The results of operations for the following acquired businesses are included in the consolidated results of the Company from the respective dates of acquisition. Pro forma information for these acquired businesses is not provided because they did not have a material effect, individually or in the aggregate, on the Company’s consolidated results of operations.
Acquisition of Payfare
On March 2, 2025, the Company acquired Payfare, Inc. (“Payfare”), a Canada-based provider of program management solutions powering instant access to earnings and banking solutions for workforces, for a purchase price of $95 million, net of $46 million of acquired cash. Payfare is included within the Financial Solutions (“Financial”) segment and expands the Company’s embedded finance capabilities.
The preliminary allocation of purchase price resulted in the recognition of identifiable intangible assets, including acquired software and technology, of approximately $37 million with an estimated useful life of 7 years, $55 million of goodwill and $49 million of other net assets, including acquired cash. The allocation of the purchase price is preliminary and is subject to further adjustment, pending additional refinement and final completion of valuations. Goodwill, which is not deductible for tax purposes, is primarily attributed to the anticipated value created by further enhancing the Company’s finance solutions in embedded banking, payments and lending for large enterprises and financial institutions.
Acquisition of CCV
On March 18, 2025, the Company acquired CCV Group B.V. (“CCV”), a Netherlands-based supplier of point-of sale (“POS”) payment solutions, for $226 million, net of $27 million of acquired cash. CCV is included within the Merchant Solutions (“Merchant”) segment and expands the Company’s network of payment solutions.
The preliminary allocation of purchase price resulted in the recognition of identifiable intangible assets, including customer relationships, of approximately $96 million with an estimated useful life of 5 years, $123 million of goodwill and $34 million of other net assets, including acquired cash. The allocation of the purchase price is preliminary and is subject to further adjustment, pending additional refinement and final completion of valuations. Goodwill, which is not deductible for tax purposes, is primarily attributed to the anticipated value created by enabling the Company’s ability to accelerate the deployment of its Clover® POS and business management platform, providing enhanced capabilities and innovation to an expansive combined merchant and partner base across Europe.
Other Acquisitions
On April 4, 2025, the Company acquired Pinch Payments NZ Limited (together with Zootive Pty Ltd, “Pinch Payments”), an Australia-based payment facilitator. Pinch Payments is included within the Merchant segment and expands the Company’s flexible payment services for its partners and clients, and presence within the Asia-Pacific region. On June 4, 2025, the Company acquired Money Money Serviços Financeiros S.A. (“Money Money”), a Brazil-based provider of risk analysis and credit decisioning solutions. Money Money is included within the Merchant segment and expands the Company’s payment and financial service capabilities, enabling access to working capital and other payment solutions for small and medium-sized businesses. On September 4, 2025, the Company acquired CardFree Inc. (“CardFree”), an all-in-one platform delivering integrated order, payment and loyalty solutions for merchants. CardFree is included within the Merchant segment and further expands the capabilities of the Company’s Clover® platform across the hospitality, restaurant and lodging industries. On September 25, 2025, the Company acquired the Smith Consulting Group, LLC business (“SCG”), an operational consulting service utilized by community banks and credit unions across the U.S. SCG is included within the Financial segment and supports the Company’s ability to provide consultative engagement to enhance community banks’ and credit unions’ strategic investments.
The Company acquired these businesses for an aggregate purchase price, including deferred payments, of $76 million, including earn-out provisions estimated at a fair value of $27 million (see Note 8). The allocation of purchase price for these acquisitions resulted in the recognition of identifiable intangible assets, including software and technology, of approximately $31 million with an estimated weighted average useful life of 7 years, $53 million of goodwill and $8 million of other net liabilities. The purchase price allocations for Pinch Payments and Money Money were finalized in the third quarter of 2025, and the measurement period adjustments did not have a material impact on the Company’s consolidated statements of income. The purchase price allocations for CardFree and SCG are preliminary and are subject to further adjustment, pending additional refinement and final completion of valuations. Goodwill for these acquisitions is primarily attributed to the anticipated value created by expanding the reach of the Company’s payment solutions and financial service capabilities, as well as enhancing the capabilities of Clover® and the expansion of advisory services for financial institutions. For tax purposes, goodwill related to the SCG acquisition is deductible; however, goodwill is not deductible in relation to the respective Pinch Payments, Money Money or CardFree acquisitions.
On September 26, 2025, the Company entered into definitive agreements to acquire StoneCastle Cash Management, LLC, INDX Processing, LLC and StoneCastle Trust Co. (collectively, “StoneCastle”). StoneCastle enables its network of depository institutions to easily access stable, cost-efficient deposit funding. StoneCastle will be included within the Financial segment and enables the Company to become a technology-enabled source of institutional deposits, helping financial institutions strengthen their balance sheets. This transaction is expected to close by the first quarter of 2026, subject to regulatory approval and other customary closing conditions. On October 1, 2025, the Company acquired a portion of The Toronto-Dominion Bank’s (“TD Bank”) merchant processing business in Canada. This business will be included within the Merchant segment and expands the footprint of the Company’s Clover® platform. The Company expects to acquire these businesses for an aggregate purchase price of approximately $460 million.
Other Transactions
On April 17, 2025, the Company acquired the remaining 19% ownership interest in ICICI Merchant Services Private Limited, an India-based merchant acceptance business, for $22 million. The Company previously held a majority controlling financial interest in this subsidiary, which continues to be consolidated and reported within the Merchant segment. On September 5, 2025, the Company acquired the remaining 49.9% ownership interest, including cash held of $195 million, in AIB Merchant Services (“AIBMS”), an Ireland-based payments solution provider, for $420 million. The Company previously held a majority controlling financial interest in this subsidiary, which continues to be consolidated and reported within the Merchant segment.
5. Intangible Assets
Identifiable intangible assets consisted of the following:
| (In millions) | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||
| September 30, 2025 | |||||||||||||||||
| Customer relationships | $ | 14,775 | $ | 9,505 | $ | 5,270 | |||||||||||
| Acquired software and technology | 1,993 | 1,298 | 695 | ||||||||||||||
| Trade names | 635 | 445 | 190 | ||||||||||||||
| Purchased software | 1,434 | 452 | 982 | ||||||||||||||
| Capitalized software and other intangibles | 4,820 | 1,795 | 3,025 | ||||||||||||||
| Total | $ | 23,657 | $ | 13,495 | $ | 10,162 | |||||||||||
| December 31, 2024 | |||||||||||||||||
| Customer relationships | $ | 14,488 | $ | 8,620 | $ | 5,868 | |||||||||||
| Acquired software and technology | 1,935 | 1,159 | 776 | ||||||||||||||
| Trade names | 635 | 410 | 225 | ||||||||||||||
| Purchased software | 1,019 | 517 | 502 | ||||||||||||||
| Capitalized software and other intangibles | 3,974 | 1,405 | 2,569 | ||||||||||||||
| Total | $ | 22,051 | $ | 12,111 | $ | 9,940 |
Amortization expense associated with the above identifiable intangible assets was $561 million and $566 million for the three months ended September 30, 2025 and 2024, respectively, and $1.7 billion for both the nine months ended September 30, 2025 and 2024.
6. Investments in Unconsolidated Affiliates
The Company maintains investments in various affiliates that are accounted for as equity method investments, the most significant of which are related to the Company’s merchant alliances. The Company’s share of net income or loss from these investments is reported within income (loss) 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. The Company reviews its equity method investments each reporting period for indications of an other-than-temporary decline in value, including any significant changes in business relationships with merchant alliances. A decline in value of an equity method investment determined to be other-than-temporary is recorded as a current-period impairment charge within income (loss) from investments in unconsolidated affiliates in the consolidated statements of income.
Merchant Alliances
The Company maintains ownership interests in certain merchant alliances. A merchant alliance is an agreement between the Company and a financial institution that combines the processing capabilities and management expertise of the Company with the visibility and distribution channel of the financial institution. A merchant alliance acquires credit and debit card transactions from merchants. The Company provides processing and other services to the merchant alliance and charges fees to the alliance based on contractual pricing (see Note 19). The Company’s investment in its merchant alliances was $762 million and $1.2 billion at September 30, 2025 and December 31, 2024, respectively, and is reported within investments in unconsolidated affiliates in the consolidated balance sheets.
The Company maintained a 40% ownership interest in the Wells Fargo Merchant Services merchant alliance (“WFMS”), which was accounted for as an equity method investment. The Company acquired its ownership, at fair value, in WFMS through its 2019 acquisition of First Data Corporation. In the third quarter of 2024, Wells Fargo Bank, National Association (“Wells Fargo”) provided the Company with a notice of non-renewal for WFMS. Upon the expiration of the joint venture on April 1, 2025, the Company received an initial cash payment of $453 million. Completion of the contractual valuation and separation process during the third quarter of 2025 did not result in a significant adjustment to the initial cash payment received.
During the year ended December 31, 2024, the Company recorded a $595 million non-cash impairment as a result of an other-than-temporary decline in the fair value of its equity method investment in WFMS within income (loss) from investments in unconsolidated affiliates, with the related tax benefit of $129 million recorded through the income tax provision, in the consolidated statement of income. The Company recorded an initial pre-tax impairment charge of $570 million in the third quarter of 2024 based upon the Company’s estimate of the fair value of its portion of WFMS, and an additional $25 million pre-tax impairment charge in the fourth quarter of 2024 based upon the expected cash payment as described above. An additional $4 million pre-tax impairment charge was recorded in the first nine months of 2025 upon completion of the contractual valuation and separation process.
Other Equity Investments
The Company also maintains investments, over which it does not have significant influence, in various equity securities without a readily determinable fair value. Such investments totaled $254 million and $250 million at September 30, 2025 and December 31, 2024, respectively, and are primarily included within other long-term assets in the consolidated balance sheets. The Company reviews these investments each reporting period to determine whether an impairment or observable price change for the investment has occurred. To the extent such events or changes occur, the Company evaluates the fair value compared to its cost basis in the investment. Gains or losses from a sale of these investments or a change in fair value are included within other expense, net in the consolidated statements of income for the period. Adjustments made to the values recorded for certain equity securities and net gains from sales of equity securities were not significant during the three and nine months ended September 30, 2025, and were $2 million and $29 million during the three and nine months ended September 30, 2024, respectively.
7. Derivatives and Hedging Instruments
In order to limit exposure to risk, the Company maintains derivative instruments with creditworthy institutions to hedge against changing interest rates and foreign currency rate fluctuations. The Company utilizes forward exchange contracts, fixed-to-fixed cross-currency rate swap contracts and other non-derivative hedging instruments to manage such risk. The Company has designated these instruments as cash flow hedges, net investment hedges, or fair value hedges, as further described below.
Derivative instruments maintained by the Company are measured on a recurring basis and are recorded at fair value either as an asset or liability in the consolidated balance sheets (see Note 8).
Cash Flow Hedges
The Company maintains forward exchange contracts, designated as cash flow hedges, to hedge foreign currency exposure to the Indian Rupee. The notional amount of these derivatives was $325 million and $481 million at September 30, 2025 and December 31, 2024, respectively. Based on the amounts recorded in accumulated other comprehensive loss at September 30, 2025, the Company estimates that it will recognize losses of approximately $9 million in cost of processing and services during the next twelve months as foreign exchange forward contracts settle.
The Company previously entered into treasury lock agreements (“Treasury Locks”), designated as cash flow hedges, to manage exposure to fluctuations in benchmark interest rates in anticipation of the issuance of fixed rate debt in connection with the acquisition and refinancing of certain indebtedness of First Data Corporation and its subsidiaries. In 2019, concurrent with the issuance of U.S. dollar-denominated senior notes, the Treasury Locks were settled resulting in a loss, net of income taxes, and recorded in accumulated other comprehensive loss that is being amortized to earnings over the terms of the originally forecast interest payments. The unamortized balance recorded in accumulated other comprehensive loss related to the Treasury Locks was $91 million and $101 million at September 30, 2025 and December 31, 2024, respectively. Based on the amounts recorded in accumulated other comprehensive loss at September 30, 2025, the Company estimates that it will recognize approximately $13 million in net interest expense during the next twelve months related to settled interest rate hedge contracts.
Net Investment Hedges
To reduce exposure to changes in the value of the Company’s net investments in certain of its foreign currency-denominated subsidiaries due to changes in foreign currency exchange rates, the Company uses fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt as economic hedges of its net investments in such foreign currency-denominated subsidiaries.
The aggregate notional amount of the fixed-to-fixed cross-currency rate swap contracts were as follows:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Currency | |||||||||||
| Euros | 440 | 600 | |||||||||
| Singapore Dollars | 828 | 841 | |||||||||
| Canadian Dollars | 405 | 259 |
These fixed-to-fixed cross-currency rate swaps have been designated as net investment hedges to hedge a portion of the Company’s net investment in certain subsidiaries whose functional currencies are the Euro, Singapore Dollar, and Canadian Dollar. The Company has also designated certain of its Euro- and British Pound-denominated senior notes and Euro commercial paper notes as net investment hedges to hedge a portion of its net investment in certain subsidiaries whose functional currencies are the Euro and the British Pound.
Foreign currency transaction gains or losses on the qualifying net investment hedge instruments are recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income and will remain in accumulated other comprehensive loss in the consolidated balance sheets until the sale or complete liquidation of the underlying foreign currency-denominated subsidiaries.
Foreign currency transaction gains (losses), net of income tax, related to net investment hedges that were recorded as foreign currency translation within other comprehensive income (loss) in the consolidated statements of comprehensive income were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Cross-currency rate swap contracts | $ | 11 | $ | (33) | $ | (82) | $ | (17) | |||||||||||||||
| Foreign currency-denominated debt | 10 | (134) | (313) | (33) |
The Company recorded income tax impacts of $(6) million and $56 million during the three months ended September 30, 2025 and 2024, respectively, and $132 million and $17 million during the nine months ended September 30, 2025 and 2024,
respectively, in other comprehensive income (loss) from the translation of foreign currency-denominated senior notes, Euro commercial paper notes and fixed-to-fixed cross-currency rate swap contracts.
Fair Value Hedges
The Company previously maintained a fixed-to-fixed cross-currency rate swap contract in the notional amount of 525 million British Pounds, designated as a fair value hedge, to mitigate the spot foreign exchange rate risk on the principal amount of its British Pound-denominated 2.250% senior notes, which matured in July 2025, as well as fixed-to-fixed cross-currency rate swap contracts on the principal amount of a Euro-denominated intercompany note, which was repaid in 2024. Net changes in the fair value of the cross-currency rate swaps ($0.3 million loss and $33 million gain for the three months ended September 30, 2025 and 2024, respectively, and $60 million and $33 million gain for the nine months ended September 30, 2025 and 2024, respectively), along with the offsetting change in the fair value of the hedged notes, attributable to fluctuations in the respective foreign currency spot rates were recognized in other expense, net within the consolidated statements of income.
8. Fair Value Measurements
The fair values of cash equivalents, trade accounts receivable, other current assets, settlement assets and obligations, accounts payable, and client deposits approximate their respective carrying values due to the short period of time to maturity. Derivative instruments maintained by the Company (see Note 7) are measured on a recurring basis based on foreign currency spot rates and forwards quoted by banks and foreign currency dealers and are marked to market each period. Contingent consideration related to certain of the Company’s acquisitions (see Note 4) is estimated using a probability-weighted assessment approach based on the likelihood of achieving the earn-out criteria. The Company’s obligation to satisfy the purchase of a redeemable noncontrolling interest in a previously terminated merchant alliance joint venture was measured at the estimated fair value of the minority interest. Such obligation was settled in the third quarter of 2025 through the distribution of certain merchant contracts to the minority partner (see Note 11). The fair value of the Company’s contingent liability for current expected credit losses associated with its debt guarantees, as further described below, is estimated based on assumptions of future risk of default and the corresponding level of credit losses at the time of default.
Assets and liabilities measured at fair value on a recurring basis consisted of the following:
| Fair Value | |||||||||||||||||||||||
| (In millions) | Classification | Fair Value Hierarchy | September 30, 2025 | December 31, 2024 | |||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cross-currency rate swap contract designated as net investment hedge | Prepaid expenses and other current assets | Level 2 | $ | — | $ | 2 | |||||||||||||||||
| Cross-currency rate swap contracts designated as net investment hedges | Other long-term assets | Level 2 | — | 6 | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Cross-currency rate swap contract designated as fair value hedge | Accounts payable and other current liabilities | Level 2 | $ | — | $ | 12 | |||||||||||||||||
| Cross-currency rate swap contracts designated as net investment hedges | Accounts payable and other current liabilities | Level 2 | 29 | 9 | |||||||||||||||||||
| Forward exchange contracts designated as cash flow hedges | Accounts payable and other current liabilities | Level 2 | 9 | 6 | |||||||||||||||||||
| Forward exchange contracts designated as cash flow hedges | Other long-term liabilities | Level 2 | 2 | 2 | |||||||||||||||||||
| Cross-currency rate swap contracts designated as net investment hedges | Other long-term liabilities | Level 2 | 76 | 17 | |||||||||||||||||||
| Contingent consideration | Accounts payable and other current liabilities | Level 3 | 6 | — | |||||||||||||||||||
| Contingent consideration | Other long-term liabilities | Level 3 | 21 | — | |||||||||||||||||||
| Obligation to purchase redeemable noncontrolling interest | Accounts payable and other current liabilities | Level 3 | — | 95 | |||||||||||||||||||
| Contingent debt guarantee | Other long-term liabilities | Level 3 | 8 | 15 |
Debt
The Company’s senior notes are recorded at amortized cost but measured at fair value for disclosure purposes. The estimated fair value of senior notes was based on matrix pricing which considers readily observable inputs of comparable securities (Level 2 of the fair value hierarchy). The carrying value of the Company’s foreign lines of credit and commercial paper notes approximates fair value as these instruments have variable interest rates and the Company has not experienced any change to its credit ratings (Level 2 of the fair value hierarchy). The estimated fair value of total debt, excluding finance leases and other financing obligations, was $28.0 billion and $23.2 billion at September 30, 2025 and December 31, 2024, respectively, and the carrying value was $28.2 billion and $23.9 billion at September 30, 2025 and December 31, 2024, respectively.
Debt Guarantee Arrangements
The Company maintains noncontrolling ownership interests in Sagent M&C, LLC and defi SOLUTIONS Group, LLC (collectively the “Lending Joint Ventures”), which are accounted for under the equity method. The Company’s net investment in the Lending Joint Ventures was $94 million and $49 million at September 30, 2025 and December 31, 2024, respectively. The Lending Joint Ventures maintain variable-rate term loan facilities with aggregate outstanding borrowings of $404 million in senior unsecured debt at September 30, 2025 and variable-rate revolving credit facilities with an aggregate borrowing capacity of $83 million with a syndicate of banks, which mature in April 2027. There were $21 million of aggregate outstanding borrowings on the revolving credit facilities at September 30, 2025. The Company has guaranteed the debt of the Lending Joint Ventures.
The Company maintains liabilities for its obligations to perform over the term of its debt guarantee arrangements with the Lending Joint Ventures, which are reported within other long-term liabilities in the consolidated balance sheets. The Company has provided aggregate guarantees of $487 million associated with the debt of the Lending Joint Ventures and is entitled to receive a defined fee in exchange for its guarantee of this indebtedness. The Company has not made any payments under the guarantees, nor has it been called upon to do so, and does not anticipate that the Lending Joint Ventures will fail to fulfill their debt obligations.
The non-contingent component of the Company’s debt guarantee arrangements is recorded at amortized cost, but measured at fair value for disclosure purposes. The carrying value of the Company’s non-contingent liability of $14 million and $21 million approximates the fair value at September 30, 2025 and December 31, 2024, respectively (Level 3 of the fair value hierarchy). Such guarantees will be amortized in future periods over the contractual term of the debt. The contingent component of the Company’s debt guarantee arrangements represents the current expected credit losses to which the Company is exposed. The amount of the liability, as reflected within the table above, is estimated based on certain financial metrics of the Lending Joint Ventures and historical industry data, which is used to develop assumptions of the likelihood the guaranteed parties will default and the level of credit losses in the event a default occurs. The Company recognized $5 million and $4 million during the three months ended September 30, 2025 and 2024, respectively, and $14 million and $13 million during the nine months ended September 30, 2025 and 2024, respectively, within other expense, net in its consolidated statements of income related to its release from risk under the non-contingent guarantees as well as a change in the provision of estimated credit losses associated with the indebtedness of the Lending Joint Ventures.
Other Non-Financial Assets
Certain of the Company’s non-financial assets are measured at fair value on a non-recurring basis, including property and equipment, lease right-of-use assets, equity securities without a readily determinable fair value, goodwill and other intangible assets, and are subject to fair value adjustment in certain circumstances.
9. Accounts Payable and Other Current Liabilities
Accounts payable and other current liabilities consisted of the following:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Trade accounts payable | $ | 717 | $ | 511 | |||||||
| Client deposits | 977 | 985 | |||||||||
| Transferable federal tax credits (see Note 15) | 569 | 866 | |||||||||
| Accrued compensation and benefits | 273 | 296 | |||||||||
| Accrued taxes | 307 | 261 | |||||||||
| Accrued interest | 212 | 335 | |||||||||
| Accrued payment network fees | 282 | 253 | |||||||||
| Operating lease liabilities | 120 | 116 | |||||||||
| Accrued professional fees | 128 | 102 | |||||||||
| Obligation to purchase redeemable noncontrolling interest (see Note 11) | — | 95 | |||||||||
| Other accrued expenses | 1,059 | 979 | |||||||||
| Total | $ | 4,644 | $ | 4,799 |
10. Debt
The Company’s debt consisted of the following:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Short-term and current maturities of long-term debt: | |||||||||||
| Foreign lines of credit | $ | 876 | $ | 784 | |||||||
| Finance lease and other financing obligations | 447 | 326 | |||||||||
| Total short-term and current maturities of long-term debt | $ | 1,323 | $ | 1,110 | |||||||
| Long-term debt: | |||||||||||
| 3.850% senior notes due June 2025 | $ | — | $ | 900 | |||||||
| 2.250% senior notes due July 2025 (British Pound-denominated) | — | 661 | |||||||||
| 3.200% senior notes due July 2026 | 2,000 | 2,000 | |||||||||
| 5.150% senior notes due March 2027 | 750 | 750 | |||||||||
| 2.250% senior notes due June 2027 | 1,000 | 1,000 | |||||||||
| 1.125% senior notes due July 2027 (Euro-denominated) | 585 | 521 | |||||||||
| 5.450% senior notes due March 2028 | 900 | 900 | |||||||||
| 2.875% senior notes due June 2028 (Euro-denominated) | 878 | — | |||||||||
| 5.375% senior notes due August 2028 | 700 | 700 | |||||||||
| 4.200% senior notes due October 2028 | 1,000 | 1,000 | |||||||||
| 3.500% senior notes due July 2029 | 3,000 | 3,000 | |||||||||
| 4.750% senior notes due March 2030 | 850 | 850 | |||||||||
| 2.650% senior notes due June 2030 | 1,000 | 1,000 | |||||||||
| 1.625% senior notes due July 2030 (Euro-denominated) | 585 | 521 | |||||||||
| 4.550% senior notes due February 2031 | 1,000 | — | |||||||||
| 5.350% senior notes due March 2031 | 500 | 500 | |||||||||
| 4.500% senior notes due May 2031 (Euro-denominated) | 936 | 835 | |||||||||
| 3.000% senior notes due July 2031 (British Pound-denominated) | 704 | 661 | |||||||||
| 3.500% senior notes due June 2032 (Euro-denominated) | 907 | — | |||||||||
| 5.600% senior notes due March 2033 | 900 | 900 | |||||||||
| 5.625% senior notes due August 2033 | 1,300 | 1,300 | |||||||||
| 5.450% senior notes due March 2034 | 750 | 750 | |||||||||
| 5.150% senior notes due August 2034 | 900 | 900 | |||||||||
| 5.250% senior notes due August 2035 | 1,000 | — | |||||||||
| 4.000% senior notes due June 2036 (Euro-denominated) | 761 | — | |||||||||
| 4.400% senior notes due July 2049 | 2,000 | 2,000 | |||||||||
| U.S. dollar commercial paper notes | 1,238 | 221 | |||||||||
| Euro commercial paper notes | 1,310 | 1,239 | |||||||||
| Revolving credit facility | — | 115 | |||||||||
| Unamortized discount and deferred financing costs | (178) | (150) | |||||||||
| Finance lease and other financing obligations | 1,600 | 656 | |||||||||
| Total long-term debt | $ | 28,876 | $ | 23,730 |
The Company was in compliance with all financial debt covenants during the nine months ended September 30, 2025.
Senior Notes
On August 11, 2025, the Company completed the public offering and issuance of $2.0 billion of senior notes, comprised of $1.0 billion aggregate principal amount of 4.550% senior notes due in February 2031 and $1.0 billion aggregate principal amount of 5.250% senior notes due in August 2035. Interest on these senior notes is paid semi-annually. The Company used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of a portion of the
Company’s commercial paper notes and for share repurchases.
On May 7, 2025, Fiserv Funding Unlimited Company, an indirect wholly owned subsidiary of the Company, completed the public offering and issuance of €2.175 billion of senior notes, comprised of €750 million aggregate principal amount of 2.875% senior notes due in June 2028, €775 million aggregate principal amount of 3.500% senior notes due in June 2032 and €650 million aggregate principal amount of 4.000% senior notes due in June 2036. These notes are fully and unconditionally guaranteed on a senior unsecured basis by the Company. Interest on these senior notes is paid annually. The Company used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of a portion of the Company’s commercial paper notes, 3.850% senior notes due in June 2025 and 2.250% senior notes due in July 2025.
In August 2024, the Company completed the public offering and issuance of $1.75 billion of senior notes, comprised of $850 million aggregate principal amount of 4.750% senior notes due in March 2030 and $900 million aggregate principal amount of 5.150% senior notes due in August 2034. Interest on these senior notes is paid semi-annually. The Company used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of a portion of the Company’s commercial paper notes and for share repurchases.
In March 2024, the Company completed the public offering and issuance of $2.0 billion of senior notes, comprised of $750 million aggregate principal amount of 5.150% senior notes due in March 2027, $500 million aggregate principal amount of 5.350% senior notes due in March 2031 and $750 million aggregate principal amount of 5.450% senior notes due in March 2034. Interest on these senior notes is paid semi-annually. The Company used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of a portion of the Company’s commercial paper notes and for share repurchases, and in July 2024, the repayment of a portion of its 2.750% senior notes.
At September 30, 2025, the 3.200% senior notes due July 2026 were classified in the consolidated balance sheet as long-term, as the Company has the ability to refinance such debt under its revolving credit facility.
The indentures governing the Company’s senior notes contain covenants that, among other matters, limit (i) the Company’s ability to consolidate or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, another person, (ii) the Company’s and certain of its subsidiaries’ ability to create or assume liens, and (iii) the Company’s and certain of its subsidiaries’ ability to engage in sale and leaseback transactions. The Company may, at its option, redeem the senior notes, in whole or in part, at any time and from time to time at the applicable redemption price.
Commercial Paper
The Company maintains unsecured U.S. dollar and Euro commercial paper programs. From time to time, the Company may issue under these programs U.S. dollar commercial paper with maturities of up to 397 days from the date of issuance and Euro commercial paper with maturities of up to 183 days from the date of issuance. Outstanding borrowings under the U.S. dollar program were $1.2 billion and $221 million at September 30, 2025 and December 31, 2024, with weighted average interest rates of 4.301% and 4.534%, respectively. Outstanding borrowings under the Euro program were $1.3 billion and $1.2 billion at September 30, 2025 and December 31, 2024, with weighted average interest rates of 2.135% and 3.115%, respectively. The Company intends to maintain available capacity under its revolving credit facility, as described below, in an amount at least equal to the aggregate outstanding borrowings under its commercial paper programs. Outstanding borrowings under the commercial paper programs are classified in the consolidated balance sheets as long-term as the Company has the intent to refinance this commercial paper on a long-term basis through the continued issuance of new commercial paper upon maturity, and the Company also has the ability to refinance such commercial paper under its revolving credit facility.
Revolving Credit Facility
On August 12, 2025, the Company entered into a new senior unsecured multicurrency revolving credit facility with substantially the same syndicate of banks that were lenders under its prior revolving credit facility, which the Company voluntarily terminated and replaced. The new credit facility matures in August 2030 and provides for a maximum aggregate principal amount of availability of $8.0 billion. Borrowings under the credit facility bear interest at a variable base rate, determined by the term and currency of the borrowing, plus a specified margin based on the Company’s long-term debt rating. There were no outstanding borrowings under the revolving credit facility at September 30, 2025. Outstanding borrowings under the previous revolving credit facility were $115 million at December 31, 2024, with a corresponding interest rate of 5.440%. The credit facility also requires the Company to pay a facility fee based on the aggregate commitments in effect under the agreement from time to time. The credit facility contains various restrictions and covenants that require the Company to, among other things, limit its consolidated indebtedness as of the end of each fiscal quarter to no more than 3.75 times the Company’s consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and expenses and certain other adjustments during the period of four fiscal quarters then ended, subject to certain exceptions.
Foreign Lines of Credit
The Company maintains various short-term lines of credit and other borrowing arrangements with foreign banks and alliance partners primarily to fund merchant settlement advances associated with operations in Latin America. The following table provides a summary of the outstanding borrowings and weighted average interest rates of the Company’s foreign lines of credit and other borrowing arrangements by country:
| Outstanding Borrowings (in millions) | Weighted-Average Interest Rate | |||||||||||||||||||||||||
| September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||
| Argentina | $ | 482 | $ | 597 | 55.552 | % | 38.470 | % | ||||||||||||||||||
| Brazil | 297 | 94 | 15.603 | % | 12.976 | % | ||||||||||||||||||||
| Uruguay and Other | 97 | 93 | 9.152 | % | 7.014 | % | ||||||||||||||||||||
| Total | $ | 876 | $ | 784 | 36.887 | % | 31.695 | % |
11. Redeemable Noncontrolling Interest
The minority partner in one of the Company’s merchant alliance joint ventures maintained a redeemable noncontrolling 1% interest which was presented outside of equity and carried at its estimated redemption value. The minority partner was entitled to a contractually determined share of the entity’s income, and the joint venture agreement contained redemption features whereby the interest held by the minority partner was redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that was not solely within the Company’s control.
Effective June 2024, the Company and the merchant alliance joint venture minority partner mutually agreed to terminate the joint venture agreement on September 1, 2024. Under the provisions of the separation agreement, the Company redeemed the minority partner’s membership interest in exchange for a future distribution of certain merchant contracts. The redeemable noncontrolling interest was adjusted in the second quarter of 2024 to reflect the estimated redemption value, with a corresponding adjustment recorded to additional paid-in capital. Additionally, as the redeemable noncontrolling interest became mandatorily redeemable, the Company’s obligation to satisfy the purchase of the interest was classified as a current liability in the consolidated balance sheet. The distribution of certain merchant contracts for the redemption of the minority partner’s membership interest was settled in the third quarter of 2025, resulting in a gain of $89 million within net gain on sales and distribution of other assets in the consolidated statements of income. There was no associated tax impact on this gain. The Company maintains an ongoing relationship with the former minority partner to provide processing and other support services following the termination of the joint venture agreement.
The following table presents a summary of the redeemable noncontrolling interest activity during the nine months ended September 30, 2024:
| (In millions) | ||||||||||||||
| Balance at beginning of period | $ | 161 | ||||||||||||
| Distributions paid to redeemable noncontrolling interest | (13) | |||||||||||||
| Share of income | 13 | |||||||||||||
| Adjustment to estimated redemption value of redeemable noncontrolling interest | (66) | |||||||||||||
| Reclassification to current liability | (95) | |||||||||||||
| Balance at end of period | $ | — |
12. Equity
The following tables provide changes in equity during the three and nine months ended September 30, 2025 and 2024:
| Fiserv, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2025 | Number of Shares | Amount | ||||||||||||||||||||||||||||||||||||
| (In millions) | Common Shares | Treasury Shares | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||
| Balance at June 30, 2025 | 784 | 240 | $ | 8 | $ | 23,004 | $ | (901) | $ | 25,452 | $ | (22,348) | $ | 548 | $ | 25,763 | ||||||||||||||||||||||
| Net income | 792 | 7 | 799 | |||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (84) | 2 | (82) | |||||||||||||||||||||||||||||||||||
| Share-based compensation | 87 | 87 | ||||||||||||||||||||||||||||||||||||
| Shares issued under stock plans | — | (13) | 22 | 9 | ||||||||||||||||||||||||||||||||||
| Purchases of treasury stock | 7 | (1,039) | (1,039) | |||||||||||||||||||||||||||||||||||
| Acquisition of noncontrolling interest of consolidated subsidiary (1) | 141 | (534) | (393) | |||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | 784 | 247 | $ | 8 | $ | 23,219 | $ | (985) | $ | 26,244 | $ | (23,365) | $ | 23 | $ | 25,144 |
(1)The Company acquired the remaining 49.9% ownership interest in AIBMS, an Ireland-based payment solutions provider, during the three months ended September 30, 2025. The Company previously held a majority controlling financial interest in this consolidated subsidiary (see Note 4).
| Fiserv, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | Number of Shares | Amount | ||||||||||||||||||||||||||||||
| (In millions) | Common Shares | Treasury Shares | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Equity | ||||||||||||||||||||||||
| Noncontrolling Interests | ||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | 784 | 207 | $ | 8 | $ | 23,014 | $ | (1,197) | $ | 22,073 | $ | (15,744) | $ | 624 | $ | 28,778 | ||||||||||||||||
| Net income | 564 | 7 | 571 | |||||||||||||||||||||||||||||
| Other comprehensive loss | 241 | 21 | 262 | |||||||||||||||||||||||||||||
| Share-based compensation | 88 | 88 | ||||||||||||||||||||||||||||||
| Shares issued under stock plans | (1) | (99) | 64 | (35) | ||||||||||||||||||||||||||||
| Purchases of treasury stock | 8 | (1,261) | (1,261) | |||||||||||||||||||||||||||||
| Balance at September 30, 2024 | 784 | 214 | $ | 8 | $ | 23,003 | $ | (956) | $ | 22,637 | $ | (16,941) | $ | 652 | $ | 28,403 |
| Fiserv, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2025 | Number of Shares | Amount | ||||||||||||||||||||||||||||||
| (In millions) | Common Shares | Treasury Shares | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||
| Balance at December 31, 2024 | 784 | 220 | $ | 8 | $ | 23,080 | $ | (1,413) | $ | 23,575 | $ | (18,182) | $ | 618 | $ | 27,686 | ||||||||||||||||
| Net income | 2,669 | 8 | 2,677 | |||||||||||||||||||||||||||||
| Other comprehensive income | 428 | 95 | 523 | |||||||||||||||||||||||||||||
| Share-based compensation | 302 | 302 | ||||||||||||||||||||||||||||||
| Shares issued under stock plans | (2) | (458) | 216 | (242) | ||||||||||||||||||||||||||||
| Purchases of treasury stock | 29 | (5,399) | (5,399) | |||||||||||||||||||||||||||||
| Capital contribution from noncontrolling interest | 5 | 5 | ||||||||||||||||||||||||||||||
| Acquisition of noncontrolling interests of consolidated subsidiaries (1) | 295 | (703) | (408) | |||||||||||||||||||||||||||||
| Balance at September 30, 2025 | 784 | 247 | $ | 8 | $ | 23,219 | $ | (985) | $ | 26,244 | $ | (23,365) | $ | 23 | $ | 25,144 |
(1)The Company acquired the remaining 19% ownership interest in ICICI Merchant Services Private Limited, an India-based merchant acceptance business, and the remaining 49.9% ownership interest in AIBMS, an Ireland-based payment solutions provider, during the nine months ended September 30, 2025. The Company previously held a majority controlling financial interest in each of these consolidated subsidiaries (see Note 4).
| Fiserv, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2024 | Number of Shares | Amount | ||||||||||||||||||||||||||||||
| (In millions) | Common Shares | Treasury Shares | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Equity | ||||||||||||||||||||||||
| Noncontrolling Interests | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | 784 | 190 | $ | 8 | $ | 23,103 | $ | (783) | $ | 20,444 | $ | (12,915) | $ | 651 | $ | 30,508 | ||||||||||||||||
| Net income (1) | 2,193 | 26 | 2,219 | |||||||||||||||||||||||||||||
| Distributions paid to noncontrolling interests (2) | (28) | (28) | ||||||||||||||||||||||||||||||
| Change in estimated redemption value of redeemable noncontrolling interest (see Note 11) | 66 | 66 | ||||||||||||||||||||||||||||||
| Other comprehensive (loss) income | (173) | 3 | (170) | |||||||||||||||||||||||||||||
| Share-based compensation | 273 | 273 | ||||||||||||||||||||||||||||||
| Shares issued under stock plans | (4) | (439) | 261 | (178) | ||||||||||||||||||||||||||||
| Purchases of treasury stock | 28 | (4,287) | (4,287) | |||||||||||||||||||||||||||||
| Balance at September 30, 2024 | 784 | 214 | $ | 8 | $ | 23,003 | $ | (956) | $ | 22,637 | $ | (16,941) | $ | 652 | $ | 28,403 |
(1)The total net income presented in equity for the nine months ended September 30, 2024 is different than the amount presented in the consolidated statement of income due to the net income attributable to redeemable noncontrolling interest of $13 million not included in equity.
(2)The total distributions presented in equity for the nine months ended September 30, 2024 excludes $13 million in distributions paid to redeemable noncontrolling interest not included in equity.
13. Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss by component, net of income taxes, consisted of the following:
| (In millions) | Derivatives | Foreign Currency Translation | Pension Plans | Total | |||||||||||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||||||||
| Balance at June 30, 2025 | $ | (69) | $ | (825) | $ | (7) | $ | (901) | |||||||||||||||
| Other comprehensive loss before reclassifications | (8) | (79) | — | (87) | |||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 3 | — | — | 3 | |||||||||||||||||||
| Net current-period other comprehensive income | (5) | (79) | — | (84) | |||||||||||||||||||
| Balance at September 30, 2025 | $ | (74) | $ | (904) | $ | (7) | $ | (985) | |||||||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||||||||||
| Balance at June 30, 2024 | $ | (72) | $ | (1,029) | $ | (96) | $ | (1,197) | |||||||||||||||
| Other comprehensive income (loss) before reclassifications | (6) | 245 | — | 239 | |||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 2 | — | — | 2 | |||||||||||||||||||
| Net current-period other comprehensive income (loss) | (4) | 245 | — | 241 | |||||||||||||||||||
| Balance at September 30, 2024 | $ | (76) | $ | (784) | $ | (96) | $ | (956) | |||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||
| Balance at December 31, 2024 | $ | (79) | $ | (1,327) | $ | (7) | $ | (1,413) | |||||||||||||||
| Other comprehensive income (loss) before reclassifications | (5) | 423 | — | 418 | |||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 10 | — | — | 10 | |||||||||||||||||||
| Net current-period other comprehensive income | 5 | 423 | — | 428 | |||||||||||||||||||
| Balance at September 30, 2025 | $ | (74) | $ | (904) | $ | (7) | $ | (985) | |||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
| Balance at December 31, 2023 | $ | (78) | $ | (688) | $ | (17) | $ | (783) | |||||||||||||||
| Other comprehensive loss before reclassifications (see Note 1) | (4) | (96) | (79) | (179) | |||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 6 | — | — | 6 | |||||||||||||||||||
| Net current-period other comprehensive income (loss) | 2 | (96) | (79) | (173) | |||||||||||||||||||
| Balance at September 30, 2024 | $ | (76) | $ | (784) | $ | (96) | $ | (956) |
14. Share-Based Compensation
The Company recognized $87 million and $88 million of share-based compensation expense during the three months ended September 30, 2025 and 2024, respectively, and $302 million and $273 million of share-based compensation during the nine months ended September 30, 2025 and 2024, respectively. The Company’s share-based compensation awards are typically granted in the first quarter of the year; however, grants may also occur throughout the year. At September 30, 2025, the total remaining unrecognized compensation cost for restricted stock units and awards and performance share units, net of estimated forfeitures, of $452 million is expected to be recognized over a weighted-average period of 1.8 years.
A summary of restricted stock unit, restricted stock award and performance share unit activity during the nine months ended September 30, 2025 is as follows:
| Restricted Stock Units and Awards | Performance Share Units | ||||||||||||||||||||||
| Shares (In thousands) | Weighted-Average Grant Date Fair Value | Shares (In thousands) | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
| Units and awards - December 31, 2024 | 4,716 | $ | 124.78 | 1,966 | $ | 116.62 | |||||||||||||||||
| Granted | 1,617 | 227.11 | 1,022 | 207.39 | |||||||||||||||||||
| Forfeited | (319) | 165.52 | (201) | 132.11 | |||||||||||||||||||
| Vested | (2,443) | 123.64 | (626) | 111.14 | |||||||||||||||||||
| Units and awards - September 30, 2025 | 3,571 | $ | 167.88 | 2,161 | $ | 142.47 |
A summary of stock option activity during the nine months ended September 30, 2025 is as follows:
| Shares (In thousands) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (In millions) | ||||||||||||||||||||
| Stock options outstanding - December 31, 2024 | 1,586 | $ | 89.65 | ||||||||||||||||||||
| Exercised | (820) | 88.86 | |||||||||||||||||||||
| Stock options outstanding - September 30, 2025 | 766 | $ | 90.50 | 3.51 | $ | 29 | |||||||||||||||||
| Stock options exercisable - September 30, 2025 | 766 | $ | 90.50 | 3.51 | $ | 29 |
15. Income Taxes
The Company’s income tax provision and effective income tax rate were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Income tax provision | $ | 173 | $ | 74 | $ | 609 | $ | 448 | ||||||||||||||||||
| Effective income tax rate | 17.9 | % | 5.8 | % | 18.4 | % | 13.5 | % |
The income tax provision as a percentage of income before income taxes and income (loss) from investments in unconsolidated affiliates was 17.9% and 5.8% for the three months ended September 30, 2025 and 2024, and 18.4% and 13.5% for the nine months ended September 30, 2025 and 2024, respectively. The effective income tax rate for each of the nine months ended September 30, 2025 and 2024 included discrete tax benefits from equity compensation, resulting in a lower effective income tax rate compared to the statutory income tax rate. The effective income tax rate for the three and nine months ended September 30, 2024 included a deferred tax benefit of $142 million recorded within the income tax provision associated with a non-cash impairment charge of $570 million recorded within income (loss) from investments in unconsolidated affiliates.
Pursuant to provisions under the Inflation Reduction Act, the Company purchased transferable federal tax credits from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit during both the nine months ended September 30, 2025 and 2024. Receivables associated with transferable federal tax credits are recorded within prepaid expenses and other current assets, and amounts owed to counterparties for the purchased credits are recorded within accounts payable and other current liabilities within the consolidated balance sheets at September 30, 2025 and December 31, 2024.
On July 4, 2025, the U.S. enacted tax legislation referred to as the One Big Beautiful Bill Act (the “Act”). The Act includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The Act contains multiple effective dates between 2025 and 2027. Provisions of the Act relevant to the Company are effective beginning in 2026. The Company is currently assessing the impact that these provisions will have on its consolidated financial statements.
The Company’s potential liability for unrecognized tax benefits before interest and penalties was approximately $82 million at September 30, 2025. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $6 million over the next twelve months as a result of possible closure of tax audits, audit settlements, and the lapse of the statutes of limitations in various jurisdictions.
As of September 30, 2025, the Company’s U.S. federal income tax returns for 2023 and 2024, and tax returns in certain states and foreign jurisdictions for 2017 through 2024, remain subject to examination by taxing authorities.
16. Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc.
The computation of shares used in calculating basic and diluted net income per share is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - basic | 540.2 | 573.7 | 550.8 | 582.5 | |||||||||||||||||||
| Common stock equivalents | 1.6 | 3.2 | 2.2 | 3.2 | |||||||||||||||||||
| Weighted-average common shares outstanding used for the calculation of net income attributable to Fiserv, Inc. per share - diluted | 541.8 | 576.9 | 553.0 | 585.7 |
For the three and nine months ended September 30, 2025, restricted stock units for 1.3 million and 956 thousand shares, respectively, were excluded from the calculation of weighted-average outstanding shares - diluted because their impact was anti-dilutive. For both the three and nine months ended September 30, 2024, restricted stock units excluded from the calculation of weighted-average outstanding shares - diluted were not significant.
17. Cash Flow Information
Supplemental cash flow information consisted of the following:
| Nine Months Ended September 30, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Interest paid | $ | 1,237 | $ | 983 | |||||||
| Net income taxes paid | 1,240 | 1,015 | |||||||||
| Treasury stock purchases settled after the balance sheet date | — | 39 | |||||||||
| Software obtained under financing arrangements | 554 | 96 | |||||||||
| Hardware obtained under financing arrangements | 202 | — | |||||||||
| Right-of-use assets obtained in exchange for lease liabilities - operating leases | 32 | 74 | |||||||||
| Right-of-use assets obtained in exchange for lease liabilities - finance leases | 763 | 197 |
18. Commitments and Contingencies
Litigation Matters
On July 24, 2025, a federal securities law complaint was filed by the City of Hollywood Police Officers’ Retirement System against the Company and Messrs. Bisignano, Lyons, Hau, and Best in the United States District Court for the Southern District of New York. The complaint is brought on behalf of a putative class of purchasers of Company securities from July 22, 2024 to July 24, 2025 and alleges violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act. The complaint alleges, among other things, that certain statements made by the Company about Clover’s growth were false and/or misleading and led to a decline in the Company’s stock price over the purported class period. The defendants have not yet answered or otherwise responded to the complaint in this action. We intend to vigorously defend this case. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Company has also received demands on the board of directors from purported Company shareholders that the Company pursue certain litigation against certain of its current and former directors and officers alleging, among other things, supposed breaches of duty based on the factual allegations made in the securities class action complaint. Such demands may precede derivative actions which name the Company as a nominal defendant. To date, no such litigation has been filed and the Company cannot predict with any degree of certainty whether derivative actions will be filed in the future.
In the normal course of business, the Company or its subsidiaries are named as defendants in lawsuits in which claims are asserted against the Company. The Company maintained an accrual of $38 million and $43 million at September 30, 2025 and December 31, 2024, respectively, related to its various legal proceedings. The Company’s estimate of the possible range of exposure for various legal proceedings in excess of amounts accrued is $0 million to approximately $120 million. In the opinion of management, the liabilities, if any, which may ultimately result from such legal proceedings are not expected to have a material adverse effect on the Company’s consolidated financial statements.
Electronic Payments Transactions
In connection with the Company’s processing of electronic payments transactions, which are separate and distinct from the settlement payment transactions described in Note 1, funds received from subscribers are invested from the time the Company collects the funds until payments are made to the applicable recipients. These subscriber funds are invested in short-term, highly liquid investments. Subscriber funds, which are not included in the Company’s consolidated balance sheets, can fluctuate significantly based on consumer bill payment and debit card activity and totaled $1.4 billion and $1.3 billion at September 30, 2025 and December 31, 2024, respectively.
Indemnifications and Warranties
The Company may indemnify its clients from certain costs resulting from claims of patent, copyright or trademark infringement associated with its clients’ use of the Company’s products or services. The Company may also warrant to clients that its products and services will operate in accordance with identified specifications. From time to time, in connection with sales of businesses, the Company agrees to indemnify the buyers of such businesses for liabilities associated with the businesses that are sold. Payments, net of recoveries, under such indemnification or warranty provisions were not material to the Company’s consolidated financial statements.
19. Related Party Transactions
Merchant Alliances
A portion of the Company’s business is conducted through merchant alliances between the Company and certain financial institutions (see Note 6). A merchant alliance is an agreement between the Company and a financial institution that combines the processing capabilities and management expertise of the Company with the visibility and distribution channel of the financial institution. A merchant alliance acquires credit and debit card transactions from merchants. The Company provides processing and other services to the alliance and charges fees to the alliance based on contractual pricing.
To the extent the Company maintains a controlling financial interest in an alliance, the alliance’s financial statements are consolidated with those of the Company and the related processing fees are treated as an intercompany transaction and eliminated in consolidation. To the extent the Company has significant influence in, but not control of, an alliance, the Company uses the equity method to account for its investment in the alliance. As a result, the processing and other service fees charged to merchant alliances accounted for under the equity method are recognized in the Company’s consolidated statements of income primarily as processing and services revenue. Such fees totaled $21 million and $36 million for the three months ended September 30, 2025 and 2024, respectively, and $72 million and $113 million for the nine months ended September 30, 2025 and 2024, respectively. No directors or officers of the Company have ownership interests in any of the alliances. The formation of each of these alliances generally involves the Company and the financial institution contributing contracts with merchants to the alliance and a cash payment from one owner to the other to achieve the desired ownership percentage for each. The Company and the financial institution enter into a long-term processing service agreement, which governs the Company’s provision of transaction processing services to the alliance. The Company had approximately $7 million and $21 million of amounts due from unconsolidated merchant alliances included within trade accounts receivable, net in the Company’s consolidated balance sheets at September 30, 2025 and December 31, 2024, respectively.
20. Business Segment Information
The Company’s operations are comprised of two reportable segments, the Merchant segment and the Financial segment. The businesses in the Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; and pay-by-bank solutions. The business lines (operating segments) aggregated within the Merchant segment consist of the following:
*•*Small Business – provides products and services to small businesses and independent software vendors, including Clover®, the Company’s POS and business management platform for small business clients
*•*Enterprise – provides products and services to large businesses, including the Company’s integrated omnichannel operating system for enterprise clients
*•*Processing – provides products and services to financial institutions, joint ventures, and other third party resellers which have direct relationships with merchants
The Company distributes the products and services in the Merchant 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.
The businesses in the Financial segment provide products and services to financial institution, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines (operating segments) aggregated within the Financial segment consist of the following:
*•*Digital Payments – provides debit card processing services; debit network services; security and fraud protection products; bill payment; person-to-person payments; and account-to-account transfers
*•*Issuing – provides credit card processing services; prepaid card processing services; card production services; print services; government payment processing; and student loan processing
*•*Banking – provides customer loan and deposit account processing; digital banking; financial and risk management; professional services and consulting; and check processing
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 management evaluates segment performance, such as gains or losses on sales of businesses, certain assets or investments; costs associated with acquisition and divestiture activity; certain services revenue associated with various dispositions; and postage reimbursements.
The Company’s Chief Executive Officer, who is also the Company’s CODM, assesses segment performance and makes strategic decisions on the allocation of resources. Additionally, the Company’s Chief Executive Officer provides oversight on business leadership and corporate strategy to the executive leadership team, who manages the day to day operations of the various business lines.
The CODM uses reportable segment operating income to evaluate segment performance and allocate resources, primarily during the annual budget and forecasting processes. The CODM regularly reviews variances between forecasted and actual results in assessing earnings, operational efficiency and growth performance, and allocating resources including personnel and capital allocations, to each reportable segment. There are no intersegment revenues contained within the respective reportable segment revenues.
Operating results for each reportable segment were as follows:
| Reportable Segments | |||||||||||||||||
| (In millions) | Merchant | Financial | Total | ||||||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Processing and services revenue | $ | 2,274 | $ | 1,999 | |||||||||||||
| Product revenue | 312 | 334 | |||||||||||||||
| Reportable segment revenue | $ | 2,586 | $ | 2,333 | $ | 4,919 | |||||||||||
| Corporate and Other revenue (1) | 344 | ||||||||||||||||
| Total Company revenue | $ | 5,263 | |||||||||||||||
| Expenses: | |||||||||||||||||
| Personnel expenses (2) | 352 | 498 | |||||||||||||||
| Direct costs (3) | 886 | 200 | |||||||||||||||
| Depreciation and amortization expense | 111 | 128 | |||||||||||||||
| Other operating expense (4) | 120 | 162 | |||||||||||||||
| Allocations from Corporate and Other (5) | 155 | 354 | |||||||||||||||
| Reportable segment operating income | $ | 962 | $ | 991 | $ | 1,953 | |||||||||||
| Corporate and Other operating loss (6) | (517) | ||||||||||||||||
| Interest expense, net | (422) | ||||||||||||||||
| Other expense, net (7) | (50) | ||||||||||||||||
| Income before income taxes and income (loss) from investments in unconsolidated affiliates | $ | 964 | |||||||||||||||
| Reportable Segments | |||||||||||||||||
| (In millions) | Merchant | Financial | Total | ||||||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Processing and services revenue | $ | 2,198 | $ | 2,036 | |||||||||||||
| Product revenue | 271 | 376 | |||||||||||||||
| Reportable segment revenue | $ | 2,469 | $ | 2,412 | $ | 4,881 | |||||||||||
| Corporate and Other revenue (1) | 334 | ||||||||||||||||
| Total Company revenue | $ | 5,215 | |||||||||||||||
| Expenses: | |||||||||||||||||
| Personnel expenses (2) | 325 | 496 | |||||||||||||||
| Direct costs (3) | 792 | 191 | |||||||||||||||
| Depreciation and amortization expense | 92 | 118 | |||||||||||||||
| Other operating expense (4) | 172 | 96 | |||||||||||||||
| Allocations from Corporate and Other (5) | 157 | 368 | |||||||||||||||
| Reportable segment operating income | $ | 931 | $ | 1,143 | $ | 2,074 | |||||||||||
| Corporate and Other operating loss (6) | (472) | ||||||||||||||||
| Interest expense, net | (326) | ||||||||||||||||
| Other expense, net (7) | (5) | ||||||||||||||||
| Income before income taxes and income (loss) from investments in unconsolidated affiliates | $ | 1,271 |
| Reportable Segments | |||||||||||||||||
| (In millions) | Merchant | Financial | Total | ||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Processing and services revenue | $ | 6,612 | $ | 6,010 | |||||||||||||
| Product revenue | 990 | 1,292 | |||||||||||||||
| Reportable segment revenue | $ | 7,602 | $ | 7,302 | $ | 14,904 | |||||||||||
| Corporate and Other revenue (1) | 1,005 | ||||||||||||||||
| Total Company revenue | $ | 15,909 | |||||||||||||||
| Expenses: | |||||||||||||||||
| Personnel expenses (2) | 1,031 | 1,500 | |||||||||||||||
| Direct costs (3) | 2,606 | 608 | |||||||||||||||
| Depreciation and amortization expense | 320 | 377 | |||||||||||||||
| Other operating expense (4) | 470 | 338 | |||||||||||||||
| Allocations from Corporate and Other (5) | 489 | 1,096 | |||||||||||||||
| Reportable segment operating income | $ | 2,686 | $ | 3,383 | $ | 6,069 | |||||||||||
| Corporate and Other operating loss (6) | (1,542) | ||||||||||||||||
| Interest expense, net | (1,118) | ||||||||||||||||
| Other expense, net (7) | (107) | ||||||||||||||||
| Income before income taxes and income (loss) from investments in unconsolidated affiliates | $ | 3,302 | |||||||||||||||
| Reportable Segments | |||||||||||||||||
| (In millions) | Merchant | Financial | Total | ||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Processing and services revenue | $ | 6,340 | $ | 6,024 | |||||||||||||
| Product revenue | 792 | 1,052 | |||||||||||||||
| Reportable segment revenue | $ | 7,132 | $ | 7,076 | $ | 14,208 | |||||||||||
| Corporate and Other revenue (1) | 997 | ||||||||||||||||
| Total Company revenue | $ | 15,205 | |||||||||||||||
| Expenses: | |||||||||||||||||
| Personnel expenses (2) | 1,013 | 1,466 | |||||||||||||||
| Direct costs (3) | 2,325 | 556 | |||||||||||||||
| Depreciation and amortization expense | 272 | 348 | |||||||||||||||
| Other operating expense (4) | 469 | 306 | |||||||||||||||
| Allocations from Corporate and Other (5) | 471 | 1,156 | |||||||||||||||
| Reportable segment operating income | $ | 2,582 | $ | 3,244 | $ | 5,826 | |||||||||||
| Corporate and Other operating loss (6) | (1,615) | ||||||||||||||||
| Interest expense, net | (872) | ||||||||||||||||
| Other expense, net (7) | (17) | ||||||||||||||||
| Income before income taxes and income (loss) from investments in unconsolidated affiliates | $ | 3,322 |
(1)Primarily includes postage reimbursements.
(2)Includes compensation and benefit costs of Company employees, as well as expenses paid to third parties for consulting and temporary help, net of capitalized software costs.
(3)Includes cost of goods sold, residual payments to channel partners and other reselling costs.
(4)Includes data processing, facility, and marketing costs that are directly charged to the reportable segments. Includes in the Merchant
segment a gain of $89 million related to the distribution of certain merchant contracts for the redemption of a minority partner’s membership interest in the third quarter and first nine months of 2025 (see Note 11).
(5)Represents centrally-managed costs, including sales, technology and administrative expenses, that are allocated to the reportable segments from Corporate and Other and are considered in the CODM’s evaluation of segment performance.
(6)Includes amortization of acquisition-related intangible assets; costs associated with acquisition and divestiture activity; unallocated corporate expenses; and gains or losses on sales of businesses.
(7)Includes foreign currency transaction gains and losses, gains or losses from a sale or change in fair value of investments in certain equity securities, and amounts related to debt guarantee arrangements of certain equity method investments.
Other significant items include:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Depreciation and amortization: | |||||||||||||||||||||||
| Merchant (1) | $ | 128 | $ | 114 | $ | 367 | $ | 320 | |||||||||||||||
| Financial (1) | 169 | 160 | 504 | 470 | |||||||||||||||||||
| Corporate and Other (2) | 503 | 515 | 1,521 | 1,580 | |||||||||||||||||||
| Total Company | $ | 800 | $ | 789 | $ | 2,392 | $ | 2,370 | |||||||||||||||
| Capital expenditures, including capitalized software and other intangibles: | |||||||||||||||||||||||
| Merchant | $ | 167 | $ | 147 | $ | 412 | $ | 404 | |||||||||||||||
| Financial | 181 | 153 | 493 | 456 | |||||||||||||||||||
| Corporate and Other | 159 | 102 | 416 | 310 | |||||||||||||||||||
| Total Company | $ | 507 | $ | 402 | $ | 1,321 | $ | 1,170 |
(1)Includes amortization associated with commissions, residual buyouts and deferred conversion costs included within personnel expenses, direct costs and other operating expenses, respectively, in the segment operating results tables above.
(2)Primarily includes amortization of acquisition-related intangible assets, such as customer relationships, software/technology and trade names.
The Company does not evaluate the performance of or allocate resources to its reportable segments using asset data.
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