Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2025 Wisconsin 39-1506125 (State or Other Jurisdiction of Incorporation or Organization) (I. R. S. Employer Identification No.) 600 N. Vel R. Phillips Avenue, Milwaukee, WI 53203 (Address of Principal Executive Offices and zip code) (262) 879-5000 (Registrant's Telephone Number, In ...

Market Performance - Nasdaq 100 index increased by over 2%, with Microchip Technology rising by 9.6% and ON Semiconductor by 7.5% [1] - Other notable gainers include Marvell Technology, Analog Devices, Texas Instruments, Atlassian, Lam Research, NXP Semiconductors, AppLovin, Arm Holdings, and others, with increases up to 6.96% [1] - S&P 500 index rose by 1.4%, Nasdaq by 1.98%, and Philadelphia Semiconductor index by 4.6% [1] Individual Stock Performance - Microchip Technology Inc price at $45.96, up by $4.03 [2] - ON Semiconductor Corp price at $39.36, up by $2.73 [2] - Marvell Technology Inc price at $57.51, up by $3.74 [2] - Analog Devices Inc price at $195.61, up by $12.49 [2] - Texas Instruments Inc price at $162.24, up by $10.09 [2] - Atlassian Corp price at $221.16, up by $12.89 [2] - Lam Research Corp price at $70.82, up by $4.09 [2] - NXP Semiconductors NV price at $191.20, up by $10.33 [2] - AppLovin Corp price at $266.10, up by $13.75 [2] - Arm Holdings PLC price at $110.55, up by $5.39 [2] - Other companies like MongoDB, Broadcom, CrowdStrike, and Zscaler also showed significant gains [2]

[Executive Summary & Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Highlights) This section provides an overview of Fiserv's strong first-quarter 2025 financial performance, key growth metrics, and strategic commentary from both the current and incoming CEOs [First Quarter 2025 Key Highlights](index=1&type=section&id=1.1%20First%20Quarter%202025%20Key%20Highlights) Fiserv reported strong first-quarter 2025 results, with GAAP revenue increasing 5% and organic revenue growing 7% Q1 2025 Key Highlights | Metric | Q1 2025 Growth | 2025 Outlook Growth | | :----------------------- | :------------- | :------------------ | | GAAP Revenue | 5% | - | | Organic Revenue | 7% | 10% - 12% | | GAAP EPS | 22% | - | | Adjusted EPS | 14% | 15% - 17% | [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) Chairman and CEO Frank Bisignano highlighted that first-quarter adjusted EPS exceeded expectations, demonstrating the resilience, consistency, and sustainable growth of Fiserv - Frank Bisignano, Chairman and CEO, noted that adjusted EPS results exceeded expectations, showcasing the resilience, consistency, and sustainable growth of the Fiserv franchise He attributed the company's success to its differentiated structure with two market-leading segments, Merchant and Financial Solutions, which are well-positioned to serve interconnected business and financial institution clients[4](index=4&type=chunk) [Incoming CEO Commentary](index=2&type=section&id=1.3%20Incoming%20CEO%20Commentary) Mike Lyons, President and incoming CEO, reported a strong start to 2025, marked by significant client wins, four strategic acquisitions, and a focus on execution and growth - Mike Lyons, President and incoming CEO, stated that Fiserv had a good start to 2025, characterized by a series of large client wins, four strategic acquisitions, and a strong focus on execution and growth[7](index=7&type=chunk) - The company is maintaining its guidance for 2025, with an anticipated acceleration in the back-half of the year, reflecting the timing of key strategic initiatives[7](index=7&type=chunk) [First Quarter 2025 Financial Performance](index=1&type=section&id=2.%20First%20Quarter%202025%20Financial%20Performance) This section details Fiserv's financial results for the first quarter of 2025, presenting both GAAP and non-GAAP metrics, including revenue, EPS, operating margins, and cash flow performance [GAAP Results](index=1&type=section&id=2.1%20GAAP%20Results) Fiserv's GAAP revenue increased 5% to $5.13 billion in Q1 2025, driven by growth in both Merchant Solutions (5%) and Financial Solutions (6%) Q1 2025 GAAP Financial Highlights | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Revenue | $5.13B | $4.88B | +5% | | EPS | $1.51 | $1.24 | +22% | | Operating Margin | 27.2% | 24.2% | +300 bps | | Net Cash from Operating Activities | $648M | $831M | -22.1% | Q1 2025 GAAP Segment Performance (Revenue & Operating Margin) | Segment | Q1 2025 Revenue Growth | Q1 2025 Operating Margin | Q1 2024 Operating Margin | | :------------------ | :--------------------- | :----------------------- | :----------------------- | | Merchant Solutions | 5% | 34.2% | 34.1% | | Financial Solutions | 6% | 47.5% | 44.1% | [Non-GAAP Results](index=2&type=section&id=2.2%20Non-GAAP%20Results) In Q1 2025, adjusted revenue grew 5% to $4.79 billion, with organic revenue growth at 7%, led by Merchant Solutions (8%) and Financial Solutions (6%) Q1 2025 Non-GAAP Financial Highlights | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :------------------- | :-------- | :-------- | :----------- | | Adjusted Revenue | $4.79B | $4.54B | +5% | | Organic Revenue Growth | 7% | - | - | | Adjusted EPS | $2.14 | $1.88 | +14% | | Adjusted Operating Margin | 37.8% | 35.8% | +200 bps | | Free Cash Flow | $371M | $454M | -18.2% | Q1 2025 Non-GAAP Segment Performance (Organic Revenue Growth & Adjusted Operating Margin) | Segment | Organic Revenue Growth | Adjusted Operating Margin (Q1 2025) | Adjusted Operating Margin (Q1 2024) | | :------------------ | :--------------------- | :---------------------------------- | :---------------------------------- | | Merchant Solutions | 8% | 34.2% | 34.1% | | Financial Solutions | 6% | 47.5% | 44.1% | [Segment Performance](index=8&type=section&id=3.%20Segment%20Performance) This section analyzes the financial performance of Fiserv's Merchant Solutions, Financial Solutions, and Corporate and Other segments, highlighting revenue growth and operating margin trends [Merchant Solutions Segment](index=8&type=section&id=3.1%20Merchant%20Solutions%20Segment) The Merchant Solutions segment reported a 5% increase in GAAP revenue to $2.37 billion and an 8% organic revenue growth in Q1 2025 Merchant Solutions Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $2,372M | $2,253M | +5% | | Operating Income | $810M | $769M | +5.3% | | Operating Margin | 34.2% | 34.1% | +10 bps | | Organic Revenue Growth | 8% | - | - | [Financial Solutions Segment](index=8&type=section&id=3.2%20Financial%20Solutions%20Segment) The Financial Solutions segment saw a 6% increase in GAAP revenue to $2.42 billion and a 6% organic revenue growth in Q1 2025 Financial Solutions Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $2,417M | $2,285M | +6% | | Operating Income | $1,148M | $1,008M | +13.9% | | Operating Margin | 47.5% | 44.1% | +340 bps | | Organic Revenue Growth | 6% | - | - | [Corporate and Other](index=8&type=section&id=3.3%20Corporate%20and%20Other) The Corporate and Other segment reported revenue of $341 million in Q1 2025, with an adjusted revenue of $0 million after accounting for postage reimbursements Corporate and Other Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------- | :-------- | :-------- | :----------- | | Revenue | $341M | $345M | -1.2% | | Adjusted Revenue | $0M | $5M | -100% | | Operating Loss | $(563)M | $(596)M | +5.5% | | Adjusted Operating Loss | $(150)M | $(148)M | -1.4% | [Business Updates & Strategic Initiatives](index=2&type=section&id=4.%20Business%20Updates%20%26%20Strategic%20Initiatives) This section outlines Fiserv's recent strategic acquisitions and operational initiatives aimed at expanding its market presence and enhancing its fintech capabilities [Strategic Acquisitions](index=2&type=section&id=4.1%20Strategic%20Acquisitions) Fiserv completed four strategic acquisitions in Q1 2025, expanding its capabilities in instant earnings access, point-of-sale solutions, payment facilitation, and small business working capital - In March 2025, Fiserv acquired Payfare Inc., a Canada-based provider of program management solutions for instant access to earnings and banking solutions for workforces[8](index=8&type=chunk) - Also in March 2025, Fiserv acquired CCV Group B.V., a Netherlands-based supplier of point-of-sale payment solutions[8](index=8&type=chunk) - In April 2025, Fiserv reached agreements to acquire Pinch Payments NZ Limited, an Australia-based solutions provider for payment facilitators, and Money Money Serviços Financeiros S.A., a Brazil-based fintech that enables small businesses to access working capital[8](index=8&type=chunk) [Operational Initiatives](index=2&type=section&id=4.2%20Operational%20Initiatives) Fiserv announced plans to open a new 2,000-employee fintech hub in Overland Park, Kansas, as part of its ongoing operational expansion and strategic growth initiatives - In April 2025, Fiserv announced a plan to open a 2,000-employee fintech hub in Overland Park, Kansas[8](index=8&type=chunk) [Financial Outlook for 2025](index=2&type=section&id=5.%20Financial%20Outlook%20for%202025) This section presents Fiserv's reaffirmed full-year 2025 financial guidance, including organic revenue growth and adjusted EPS targets, along with detailed reconciliations of non-GAAP measures [Full Year 2025 Guidance](index=2&type=section&id=5.1%20Full%20Year%202025%20Guidance) Fiserv reaffirmed its full-year 2025 financial guidance, expecting organic revenue growth of 10% to 12% and adjusted earnings per share between $10.10 and $10.30, representing a growth of 15% to 17% Full Year 2025 Financial Outlook | Metric | 2025 Outlook | | :------------------- | :------------- | | Organic Revenue Growth | 10% to 12% | | Adjusted EPS | $10.10 to $10.30 | | Adjusted EPS Growth | 15% to 17% | [Forward-Looking Non-GAAP Measures](index=14&type=section&id=5.2%20Forward-Looking%20Non-GAAP%20Measures) The company provided details on its forward-looking non-GAAP measures for 2025, including organic revenue growth and adjusted EPS 2025 Revenue Growth Components (Outlook) | Metric | Growth | | :-------------------- | :----- | | 2025 Revenue | 10% - 12% | | Postage reimbursements | (0.5)% | | 2025 Adjusted revenue | 9.5% - 11.5% | | Currency impact | 1.5% | | Acquisition adjustments | (1.0)% | | Divestiture adjustments | —% | | 2025 Organic revenue | 10% - 12% | 2024 GAAP to Adjusted EPS Reconciliation and 2025 Outlook | Metric | Amount (in millions, except per share) | | :------------------------------------------ | :----------------------------------- | | 2024 GAAP net income attributable to Fiserv | $3,131 | | Adjustments (net of income taxes): | | | Merger and integration costs | $0.11 | | Severance costs | $0.22 | | Amortization of acquisition-related intangibles | $1.95 | | Non wholly-owned entity activities | $0.14 | | Impairment of equity method investments | $0.85 | | Non-cash settlement charge for pension plans | $0.16 | | 2024 adjusted earnings per share | $8.80 | | 2025 adjusted earnings per share outlook | $10.10 - $10.30 | | 2025 adjusted earnings per share growth outlook | 15% - 17% | - The company estimates that amortization expense in 2025 with respect to acquired intangible assets will decrease approximately 5% compared to the amount incurred in 2024[45](index=45&type=chunk) [Company Information](index=3&type=section&id=6.%20Company%20Information) This section provides essential company information, including its business overview, the rationale for non-GAAP financial measures, and a discussion of forward-looking statements and risk factors [About Fiserv](index=3&type=section&id=6.1%20About%20Fiserv) Fiserv, Inc. is a Fortune 500™ company and a global leader in payments and financial technology, providing solutions to help clients achieve best-in-class results through innovation and excellence - Fiserv, Inc. (NYSE: FI) is a Fortune 500™ company and a global leader in payments and financial technology, aspiring to move money and information to move the world[9](index=9&type=chunk) - The company helps clients achieve best-in-class results through innovation and excellence in areas such as account processing, digital banking, card issuer processing, payments, e-commerce, merchant acquiring, and the Clover cloud-based point-of-sale and business management platform[9](index=9&type=chunk) - Fiserv is a member of the S&P 500 Index and recognized as one of Fortune World's Most Admired Companies™[9](index=9&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=6.2%20Use%20of%20Non-GAAP%20Financial%20Measures) Fiserv supplements its GAAP reporting with non-GAAP measures like adjusted revenue, organic revenue, adjusted operating income/margin, adjusted net income/EPS, and free cash flow - Fiserv uses non-GAAP financial measures such as "adjusted revenue," "organic revenue," "adjusted operating income," "adjusted operating margin," "adjusted net income," "adjusted earnings per share," and "free cash flow" to supplement its GAAP reporting[10](index=10&type=chunk) - Management believes these adjustments enhance shareholders' ability to evaluate performance by providing insights into factors and trends affecting the business, excluding items like non-cash intangible asset amortization, impairment charges, severance, and merger and integration costs[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) - The company stresses that these unaudited non-GAAP measures are not comparable to similarly titled measures reported by other companies and should be considered in addition to, not as a substitute for, GAAP measures[14](index=14&type=chunk) [Forward-Looking Statements & Risk Factors](index=4&type=section&id=6.3%20Forward-Looking%20Statements%20%26%20Risk%20Factors) This news release contains forward-looking statements regarding future financial performance, which are subject to assumptions, risks, and uncertainties that could cause actual results to differ materially - The news release contains forward-looking statements, identifiable by words like "believes," "anticipates," "expects," and similar meanings, regarding future financial performance, including organic revenue growth and adjusted EPS[15](index=15&type=chunk) - These statements are subject to assumptions, risks, and uncertainties that may cause actual results to differ materially, including factors such as competition, customer demand, technology, security breaches, economic conditions (e.g., inflation, interest rates, recession), regulatory actions, intellectual property rights, litigation, successful acquisition integration, and personnel retention[16](index=16&type=chunk) - Investors are cautioned not to place undue reliance on forward-looking statements, and the company assumes no obligation to update them[18](index=18&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=7.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Fiserv's unaudited condensed consolidated financial statements for Q1 2025, including income, cash flow, and balance sheets, along with non-GAAP reconciliations [Condensed Consolidated Statements of Income](index=6&type=section&id=7.1%20Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income show Fiserv's GAAP financial performance for the three months ended March 31, 2025, compared to the prior year Condensed Consolidated Statements of Income (Three Months Ended March 31) | Metric | 2025 (in millions) | 2024 (in millions) | | :------------------------------------------------- | :----------------- | :----------------- | | Revenue: | | | | Processing and services | $4,045 | $4,000 | | Product | $1,085 | $883 | | **Total revenue** | **$5,130** | **$4,883** | | Expenses: | | | | Cost of processing and services | $1,389 | $1,354 | | Cost of product | $684 | $651 | | Selling, general and administrative | $1,682 | $1,697 | | Net gain on sale of other assets | $(20) | — | | **Total expenses** | **$3,735** | **$3,702** | | **Operating income** | **$1,395** | **$1,181** | | Interest expense, net | $(331) | $(261) | | Other expense, net | $(18) | $(7) | | Income before income taxes and loss from investments | $1,046 | $913 | | Income tax provision | $(190) | $(153) | | Loss from investments in unconsolidated affiliates | $(8) | $(8) | | **Net income** | **$848** | **$752** | | Less: net (loss) income attributable to noncontrolling interests | $(3) | $17 | | **Net income attributable to Fiserv** | **$851** | **$735** | | GAAP earnings per share attributable to Fiserv — diluted | $1.51 | $1.24 | | Diluted shares used in computing earnings per share | 564.7 | 594.8 | [Reconciliation of GAAP to Adjusted Net Income and Adjusted Earnings Per Share](index=7&type=section&id=7.2%20Reconciliation%20of%20GAAP%20to%20Adjusted%20Net%20Income%20and%20EPS) This section provides a reconciliation of GAAP net income and EPS to their adjusted non-GAAP counterparts for Q1 2025 and Q1 2024 Reconciliation of GAAP to Adjusted Net Income and EPS (Three Months Ended March 31) | Metric | 2025 (in millions, except per share) | 2024 (in millions, except per share) | | :------------------------------------------ | :----------------------------------- | :----------------------------------- | | GAAP net income attributable to Fiserv | $851 | $735 | | Adjustments: | | | | Merger and integration costs | $15 | $37 | | Severance costs | $15 | $42 | | Amortization of acquisition-related intangibles | $331 | $369 | | Non wholly-owned entity activities | $20 | $28 | | Tax impact of adjustments | $(74) | $(95) | | Incremental executive compensation | $52 | — | | **Adjusted net income** | **$1,210** | **$1,116** | | GAAP earnings per share attributable to Fiserv - diluted | $1.51 | $1.24 | | Adjustments - net of income taxes: | | | | Merger and integration costs | $0.02 | $0.05 | | Severance costs | $0.02 | $0.06 | | Amortization of acquisition-related intangibles | $0.47 | $0.50 | | Non wholly-owned entity activities | $0.03 | $0.04 | | Incremental executive compensation | $0.09 | — | | **Adjusted earnings per share** | **$2.14** | **$1.88** | | GAAP earnings per share attributable to Fiserv growth | 22% | | | Adjusted earnings per share growth | 14% | | [Financial Results by Segment](index=8&type=section&id=7.3%20Financial%20Results%20by%20Segment) This section details the financial results by segment for Q1 2025, including total company, Merchant Solutions, Financial Solutions, and Corporate and Other Financial Results by Segment (Three Months Ended March 31, in millions) | Metric | Total Company | Merchant Solutions | Financial Solutions | Corporate and Other | | :-------------------------------- | :------------ | :----------------- | :------------------ | :------------------ | | **2025 Revenue** | $5,130 | $2,372 | $2,417 | $341 | | Postage reimbursements | $(341) | — | — | $(341) | | **2025 Adjusted revenue** | $4,789 | $2,372 | $2,417 | $0 | | **2025 Operating income** | $1,395 | $810 | $1,148 | $(563) | | Adjustments: | | | | | | Merger and integration costs | $15 | — | — | $15 | | Severance costs | $15 | — | — | $15 | | Amortization of acquisition-related intangibles | $331 | — | — | $331 | | Incremental executive compensation | $52 | — | — | $52 | | **2025 Adjusted operating income** | $1,808 | $810 | $1,148 | $(150) | | **2025 Operating margin** | 27.2% | 34.2% | 47.5% | - | | **2025 Adjusted operating margin** | 37.8% | 34.2% | 47.5% | - | | **2024 Revenue** | $4,883 | $2,253 | $2,285 | $345 | | Postage reimbursements | $(340) | — | — | $(340) | | **2024 Adjusted revenue** | $4,543 | $2,253 | $2,285 | $5 | | **2024 Operating income** | $1,181 | $769 | $1,008 | $(596) | | Adjustments: | | | | | | Merger and integration costs | $37 | — | — | $37 | | Severance costs | $42 | — | — | $42 | | Amortization of acquisition-related intangibles | $369 | — | — | $369 | | Incremental executive compensation | — | — | — | — | | **2024 Adjusted operating income** | $1,629 | $769 | $1,008 | $(148) | | **2024 Operating margin** | 24.2% | 34.1% | 44.1% | - | | **2024 Adjusted operating margin** | 35.8% | 34.1% | 44.1% | - | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=7.4%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Fiserv's condensed consolidated statements of cash flows for Q1 2025 show a decrease in net cash provided by operating activities to $648 million from $831 million in the prior year Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31, in millions) | Cash Flow Activity | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Net cash provided by operating activities | $648 | $831 | | Net cash used in investing activities | $(925) | $(397) | | Net cash provided by (used in) financing activities | $627 | $(189) | | Effect of exchange rate changes on cash | $26 | $(17) | | Net change in cash and cash equivalents | $376 | $228 | | Cash and cash equivalents, beginning balance | $2,993 | $2,963 | | Cash and cash equivalents, ending balance | $3,369 | $3,191 | - Payments for acquisition of businesses, net of cash acquired, amounted to **$316 million** in Q1 2025, contributing to the increase in net cash used in investing activities[30](index=30&type=chunk) - Net borrowings from commercial paper and short-term borrowings were **$2,696 million** in Q1 2025, significantly impacting net cash provided by financing activities[30](index=30&type=chunk) [Condensed Consolidated Balance Sheets](index=11&type=section&id=7.5%20Condensed%20Consolidated%20Balance%20Sheets) Fiserv's condensed consolidated balance sheet as of March 31, 2025, shows total assets increased to $80.40 billion from $77.18 billion at December 31, 2024 Condensed Consolidated Balance Sheets (in millions) | Asset/Liability/Equity | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $1,177 | $1,236 | | Total current assets | $25,591 | $23,477 | | Property and equipment – net | $2,427 | $2,374 | | Customer relationships – net | $5,737 | $5,868 | | Other intangible assets – net | $4,765 | $4,072 | | Goodwill | $36,983 | $36,584 | | **Total assets** | **$80,402** | **$77,176** | | **Liabilities:** | | | | Total current liabilities | $23,293 | $22,157 | | Long-term debt | $27,016 | $23,730 | | Deferred income taxes | $2,427 | $2,477 | | **Total liabilities** | **$53,881** | **$49,490** | | **Total equity** | **$26,521** | **$27,686** | [Selected Non-GAAP Financial Measures and Additional Information](index=12&type=section&id=7.6%20Selected%20Non-GAAP%20Financial%20Measures%20and%20Additional%20Information) This section provides detailed calculations for key non-GAAP financial measures, including organic revenue growth, free cash flow, and total amortization [Organic Revenue Growth](index=12&type=section&id=7.6.1%20Organic%20Revenue%20Growth) This subsection details the calculation of organic revenue growth for the total company and its segments, adjusting for currency impact and acquisition/divestiture effects Organic Revenue Growth (Three Months Ended March 31, in millions) | Metric | Total Company | Merchant | Financial | Corporate and Other | | :-------------------- | :------------ | :------- | :-------- | :------------------ | | 2025 Adjusted revenue | $4,789 | $2,372 | $2,417 | $0 | | Currency impact | $77 | $69 | $8 | — | | Acquisition adjustments | $(11) | $(8) | $(3) | — | | Divestiture adjustments | — | — | — | — | | **2025 Organic revenue** | **$4,855** | **$2,433** | **$2,422** | **$0** | | **2024 Adjusted revenue** | $4,543 | $2,253 | $2,285 | $5 | | Divestiture adjustments | $(5) | — | — | $(5) | | **2024 Organic revenue** | **$4,538** | **$2,253** | **$2,285** | **$0** | | **Organic Revenue Growth** | **7%** | **8%** | **6%** | **—** | [Free Cash Flow](index=13&type=section&id=7.6.2%20Free%20Cash%20Flow) This subsection reconciles net cash provided by operating activities to free cash flow, detailing adjustments for capital expenditures, distributions, and severance payments Free Cash Flow (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Net cash provided by operating activities | $648 | $831 | | Capital expenditures | $(335) | $(420) | | Adjustments: | | | | Distributions paid to noncontrolling interests | — | $(34) | | Distributions from unconsolidated affiliates | — | $22 | | Severance, merger and integration payments | $69 | $68 | | Tax payments on adjustments | $(11) | $(13) | | **Free cash flow** | **$371** | **$454** | [Total Amortization](index=13&type=section&id=7.6.3%20Total%20Amortization) This subsection presents a breakdown of total amortization expenses, including acquisition-related intangibles, capitalized software, and financing costs Total Amortization (Three Months Ended March 31, in millions) | Amortization Type | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Acquisition-related intangible assets | $331 | $373 | | Capitalized software and other intangibles | $176 | $144 | | Purchased software | $52 | $59 | | Financing costs and debt discounts | $11 | $11 | | Sales commissions | $28 | $28 | | Deferred conversion costs | $27 | $24 | | **Total amortization** | **$625** | **$639** | - The company adjusts its non-GAAP results to exclude amortization of acquisition-related intangible assets due to their inconsistent amount and frequency, which are significantly impacted by the timing and size of acquisitions[40](index=40&type=chunk)

FORM 10-K Cover Page [Filing Information](index=1&type=section&id=Filing%20Information) Fiserv, Inc. files its 2024 Annual Report on Form 10-K as a well-known seasoned issuer with securities on NYSE - Fiserv, Inc. files its Annual Report on Form 10-K for the fiscal year ended **December 31, 2024**[2](index=2&type=chunk) - The company is a **well-known seasoned issuer** and a **large accelerated filer**[3](index=3&type=chunk)[4](index=4&type=chunk) Securities Registered on NYSE | Title of each class | Trading Symbol(s) | | :------------------------------ | :---------------- | | Common Stock, par value $0.01 | FI | | 1.125% Senior Notes due 2027 | FI27 | | 1.625% Senior Notes due 2030 | FI30 | | 2.250% Senior Notes due 2025 | FI25 | | 3.000% Senior Notes due 2031 | FI31 | | 4.500% Senior Notes due 2031 | FI31A | [Market Value and Shares Outstanding](index=2&type=section&id=Market%20Value%20and%20Shares%20Outstanding) Non-affiliate common stock market value was **$85.5 billion** as of June 28, 2024, with **561 million shares outstanding** by February 14, 2025 Market Value and Shares Outstanding (as of June 28, 2024 / Feb 14, 2025) | Metric | Value | | :----------------------------------------- | :---------------- | | Aggregate market value (non-affiliates) | $85,486,940,134 | | Common stock shares outstanding (Feb 2025) | 561,288,944 | [Documents Incorporated by Reference](index=2&type=section&id=DOCUMENTS%20INCORPORATED%20BY%20REFERENCE) Part III incorporates information from the 2025 proxy statement, to be filed within 120 days post-fiscal year-end - Part III incorporates information from the **2025 annual meeting proxy statement**, to be filed within **120 days** after December 31, 2024[8](index=8&type=chunk) Forward-Looking Statements [Nature of Forward-Looking Statements](index=4&type=section&id=Nature%20of%20Forward-Looking%20Statements) The report contains forward-looking statements, identified by specific keywords, qualifying for safe harbor under the Private Securities Litigation Reform Act of 1995 - The report contains forward-looking statements, identified by specific keywords, intended to qualify for the **safe harbor from liability** established by the Private Securities Litigation Reform Act of 1995[12](index=12&type=chunk) [Risks and Uncertainties](index=4&type=section&id=Risks%20and%20Uncertainties) Forward-looking statements are subject to significant risks and uncertainties, including competition, technological changes, security breaches, economic conditions, and regulatory actions - Actual results may differ materially from forward-looking statements due to significant risks and uncertainties, including **competition, technological changes, security breaches, economic conditions, and regulatory actions**[13](index=13&type=chunk) PART I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Fiserv is a leading global provider of payments and financial services technology, reporting **$20.5 billion** revenue in 2024, with segments realigned to Merchant and Financial Solutions - Fiserv, Inc. is a leading global provider of payments and financial services technology solutions, serving merchants, banks, credit unions, and other financial institutions[17](index=17&type=chunk) Key Financial Highlights (2024) | Metric | Amount (in billions) | | :----------------------------------- | :------------------- | | Total Revenue | $20.5 | | Operating Income | $5.9 | | Net Cash Provided by Operating Activities | $6.6 | | Processing and Services Revenue | 81% of total revenue | - Effective in Q1 2024, Fiserv realigned its reportable segments into **Merchant Solutions** and **Financial Solutions** to enhance operational performance[19](index=19&type=chunk) [Merchant Solutions](index=5&type=section&id=Merchant%20Solutions) The Merchant Solutions segment offers global commerce-enabling products, including acquiring, digital commerce, and POS devices, distributed via Small Business, Enterprise, and Processing lines - The Merchant segment offers commerce-enabling products and services globally, including **merchant acquiring, digital commerce, mobile payments, and POS devices**[20](index=20&type=chunk) - Key business lines are **Small Business** (including Clover POS), **Enterprise** (integrated omnichannel operating system), and **Processing** (for financial institutions and third-party resellers)[20](index=20&type=chunk)[21](index=21&type=chunk) - Distribution channels include **direct sales, strategic partnerships** with agent sales forces, ISVs, ISOs, financial institutions, and other strategic partners[21](index=21&type=chunk) [Financial Solutions](index=6&type=section&id=Financial%20Solutions) The Financial Solutions segment serves global financial institutions and public sector clients, providing digital payments, issuing, and banking solutions for loan, deposit, and card transactions - The Financial segment provides products and services to financial institutions, corporate, and public sector clients globally, enabling processing of **loan/deposit accounts, digital payments, and card transactions**[27](index=27&type=chunk) - Digital Payments offers **debit card processing, network services** (Accel, STAR, MoneyPass), security/fraud protection, bill payment, and **P2P services (Zelle)**[27](index=27&type=chunk)[29](index=29&type=chunk) - Issuing provides **credit card processing, card production, prepaid card services** (Money Network), government payment processing, and student loan processing[30](index=30&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - Banking solutions include **customer loan and deposit account processing** (e.g., Cleartouch, DNA, Finxact), digital banking (Experience Digital), financial/risk management, and check processing[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Our Strategy](index=8&type=section&id=Our%20Strategy) Fiserv's strategy focuses on enhancing client value, operational effectiveness, disciplined portfolio management, and prudent capital allocation for long-term growth - Strategic pillars include enhancing **client relationship value**, improving **operational effectiveness**, disciplined **portfolio management** (acquisitions/divestitures), and **capital discipline**[38](index=38&type=chunk)[43](index=43&type=chunk) - The company aims to be an **innovation leader**, leveraging assets and capabilities to deliver best-in-class results for clients[38](index=38&type=chunk) [Product Development and Resources](index=9&type=section&id=Product%20Development%20and%20Resources) Fiserv continuously develops products using modern software and AI for customer service and fraud mitigation, relying on human capital, networks, and equipment - Product development focuses on meeting evolving client needs through continuous enhancement, using modern software development principles, and responsibly applying **AI for customer service, analytics, and fraud mitigation**[40](index=40&type=chunk) - Key resources include **human capital, financial and telecommunication networks, computer equipment, and POS devices**, with ongoing efforts to review resource requirements and vendor relationships[41](index=41&type=chunk) [Intellectual Property](index=9&type=section&id=Intellectual%20Property) Fiserv protects its proprietary hardware, software, and services through patent, copyright, trademark, trade secret laws, and confidentiality agreements - Fiserv protects its proprietary hardware, software, and services using **patent, copyright, trademark, and trade secret laws**, internal security, and confidentiality agreements[42](index=42&type=chunk) [Competition](index=10&type=section&id=Competition) The highly competitive financial technology market sees Fiserv competing against diverse players, with intensifying competition driven by new entrants and consolidations, focusing on quality, security, and innovation - The financial technology market is highly competitive, with Fiserv facing competition from **large integrated providers, financial institutions, and emerging technology companies**[44](index=44&type=chunk) - Competitive factors include **quality, security, innovation, breadth of features, client satisfaction, and global reach**[44](index=44&type=chunk) - Competition is expected to increase due to **new market entrants, expansion, and consolidation** of product lines and services[44](index=44&type=chunk) [Government Regulation](index=10&type=section&id=Government%20Regulation) Fiserv's operations are subject to extensive U.S. and international regulations, including financial institution oversight, payment network rules, and stringent privacy and cybersecurity laws, with non-compliance risking significant penalties - Fiserv is subject to various **U.S. federal, state, local, and international regulations**, as well as non-government rules from payment networks like Visa and Mastercard[47](index=47&type=chunk)[52](index=52&type=chunk) - Key regulatory areas include **financial institution regulations** (e.g., Bank Service Company Act, Dodd-Frank, CFPB), **privacy and cybersecurity laws** (e.g., GLBA, HIPAA, GDPR), money transmission licensing, credit reporting, anti-money laundering, and unfair trade practices[48](index=48&type=chunk)[49](index=49&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - Non-compliance can result in **license suspension, service termination, civil/criminal penalties**, and significant investments for compliance[47](index=47&type=chunk) [Human Capital](index=12&type=section&id=Human%20Capital) Fiserv employs over **38,000** globally, focusing on talent attraction, development, and retention through career programs, pay-for-performance, comprehensive benefits, and employee engagement - Fiserv had over **38,000 employees worldwide** as of December 31, 2024[65](index=65&type=chunk) - The company focuses on **talent development and retention** through e-learning platforms, leadership programs, and internal mobility[67](index=67&type=chunk) - A **pay-for-performance philosophy**, fair pay audits, and **comprehensive benefits** (medical, dental, mental health, caregiver support) are key to employee compensation and well-being[68](index=68&type=chunk)[73](index=73&type=chunk) - Employee engagement is fostered through **regular communication, feedback surveys** (**94% participation in 2024**), and a global safety program[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [Available Information](index=13&type=section&id=Available%20Information) Fiserv provides its annual, quarterly, and current SEC reports and amendments free on its website (www.fiserv.com) post-filing - Fiserv provides its SEC filings (**10-K, 10-Q, 8-K**) free of charge on its website (www.fiserv.com)[74](index=74&type=chunk) [Item 1A. Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) Fiserv faces significant risks from intense competition, rapid technological change, operational failures, global market conditions, extensive regulatory compliance, and organizational and financial challenges - The company operates in a highly competitive environment and faces risks from **new and existing competitors**, as well as potential in-house solutions by clients[76](index=76&type=chunk) - Failure to keep pace with rapid technological change, including the successful integration and responsible use of **artificial intelligence**, could lead to client loss and limit growth[77](index=77&type=chunk)[78](index=78&type=chunk) - **Security incidents, operational failures, and disruptions** in the global financial system pose significant threats to business continuity, reputation, and financial stability[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - Extensive government regulations (**financial, privacy, cybersecurity, money transmission, antitrust**) and payment network rules create compliance burdens and potential liabilities[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[104](index=104&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk) - Financial risks include **high leverage** (approximately **$25 billion debt** at Dec 31, 2024), **interest rate fluctuations, foreign currency exchange rate changes**, and potential losses from chargebacks or acquisition integration challenges[118](index=118&type=chunk)[120](index=120&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) [Competitive and Business Risks](index=14&type=section&id=Competitive%20and%20Business%20Risks) Fiserv faces intense competition, risks from rapid technological change (especially AI), challenges in contract renewals, and impacts from card association fees and merchant relationship maintenance - The market is highly competitive, with new and existing competitors, including **large technology companies** and in-house client capabilities[76](index=76&type=chunk) - Failure to keep pace with technological change, including **AI**, could lead to client loss and limit growth[77](index=77&type=chunk)[78](index=78&type=chunk) - Inability to renew contracts on favorable terms or premature terminations, especially with government clients, could adversely affect **revenue and financial condition**[79](index=79&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - Changes in **card association and debit network fees**, or the inability to maintain merchant relationships and alliances, could increase costs or limit operations[83](index=83&type=chunk)[84](index=84&type=chunk) [Operational and Security Risks](index=15&type=section&id=Operational%20and%20Security%20Risks) Fiserv's business relies on system security and reliability; security incidents, operational failures, and third-party disruptions could lead to significant financial liability, reputational damage, and service interruptions - **Security incidents** (e.g., unauthorized access, cyberattacks) involving Fiserv's or third-party systems could lead to liability, reputational damage, and loss of client confidence[86](index=86&type=chunk)[87](index=87&type=chunk) - **Operational failures** (e.g., hardware/software defects, natural disasters, human error) could interrupt services, cause data loss, and incur substantial expenses, harming business and reputation[88](index=88&type=chunk) - Disruptions in the operations of other global financial system participants or failures of **third-party product/service providers** could prevent service delivery and adversely affect the business[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - **Software defects, development delays, or installation difficulties** could harm business, reputation, and expose the company to liability claims[92](index=92&type=chunk) [Global Market Risks](index=18&type=section&id=Global%20Market%20Risks) Fiserv's global operations face geopolitical risks, U.S. and global economic conditions (inflation, interest rates, consumer spending), and potential tariffs, all impacting costs and competitiveness - Operations outside the U.S. are subject to **geopolitical risks** (e.g., natural disasters, political instability, war), which can increase costs and challenges[93](index=93&type=chunk) - **Global economic conditions**, including inflation, rising interest rates, and changes in consumer spending, can adversely affect revenue and financial performance[94](index=94&type=chunk)[96](index=96&type=chunk) - Potential **tariffs or trade wars** could increase product costs, impacting competitiveness and financial results[97](index=97&type=chunk) [Regulatory and Compliance Risks](index=19&type=section&id=Regulatory%20and%20Compliance%20Risks) Fiserv navigates a complex regulatory landscape, including payment, cybersecurity, data privacy, and anti-money laundering laws, with non-compliance or payment network rule violations risking litigation, fines, and operational restrictions - Failure to comply with **state, federal, and foreign laws and regulations** (e.g., payment, cybersecurity, data privacy, anti-money laundering) could result in litigation, fines, and reputational harm[98](index=98&type=chunk)[99](index=99&type=chunk) - Non-compliance with **payment card network rules** (Visa, Mastercard, Nacha) could lead to fines, suspension, or termination of registrations, limiting transaction processing capabilities[100](index=100&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - A heightened regulatory environment, including new **cybersecurity and data privacy laws** (e.g., GDPR, DORA), increases compliance costs and may require significant changes to business practices[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk) - Risks also include potential lawsuits for **intellectual property infringement** and the misappropriation of Fiserv's own intellectual property[110](index=110&type=chunk)[111](index=111&type=chunk) [Organizational and Financial Risks](index=21&type=section&id=Organizational%20and%20Financial%20Risks) Fiserv faces organizational risks in talent retention and financial risks from chargebacks, acquisition integration, goodwill impairment, and substantial debt (**$25 billion**), exposing it to leverage and interest rate fluctuations - Failure to attract and retain **key personnel** with specialized industry and technical knowledge could materially harm the business[117](index=117&type=chunk) - The company is exposed to losses from **chargebacks, refunds, or fraudulent transactions** if merchants or other parties fail to satisfy their obligations[118](index=118&type=chunk)[119](index=119&type=chunk) - Acquisitions, while a growth driver, subject Fiserv to risks like **unforeseen liabilities, integration difficulties**, and failure to realize expected benefits[120](index=120&type=chunk)[121](index=121&type=chunk) - **Goodwill and intangible assets** represent **60% of total assets** at December 31, 2024, and their impairment could negatively affect results of operations[123](index=123&type=chunk) - **High leverage** (approximately **$25 billion of debt** at December 31, 2024) and variable interest rates expose the company to financial condition and operating results risks[125](index=125&type=chunk)[126](index=126&type=chunk) [Item 1B. Unresolved Staff Comments](index=24&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments from the SEC - No unresolved staff comments[128](index=128&type=chunk) [Item 1C. Cybersecurity](index=24&type=section&id=Item%201C.%20Cybersecurity) Fiserv manages cybersecurity threats through a board-overseen ERM program and a dedicated global team, investing significantly in defenses and training, acknowledging material impact on business strategy - Fiserv maintains an **Enterprise Risk Management (ERM) program** to identify and manage cybersecurity threats, overseen by the board of directors' risk committee[129](index=129&type=chunk)[131](index=131&type=chunk) - A global cybersecurity services team, led by the **CISO**, is responsible for assessing threats, implementing defenses, monitoring incidents, and providing mandatory employee training[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) - The board and risk committee receive regular updates and reports on **cybersecurity risks and incidents**[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - Cybersecurity threats have not materially affected financial results to date, but the company continues to invest significant resources in security, acknowledging their **material impact on business strategy and processes**[140](index=140&type=chunk) [Item 2. Properties](index=26&type=section&id=Item%202.%20Properties) As of December 31, 2024, Fiserv owned **17** and leased **108 properties globally**, including strategic campus environments, with ongoing portfolio review - As of December 31, 2024, Fiserv owned **17** and leased **108 properties globally**[142](index=142&type=chunk) - Properties are used for operational, data center, sales, management, and administrative purposes, with a strategy to develop **centralized campus environments** in strategic locations[142](index=142&type=chunk) [Item 3. Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) Fiserv is involved in routine lawsuits, but management expects no material adverse effect on consolidated financial statements - Fiserv is involved in lawsuits in the normal course of business, but management does not expect them to have a **material adverse effect on consolidated financial statements**[143](index=143&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Fiserv, Inc - Item 4. Mine Safety Disclosures is not applicable[144](index=144&type=chunk) [Information About Our Executive Officers](index=27&type=section&id=Information%20About%20Our%20Executive%20Officers) This section lists Fiserv's executive officers as of February 20, 2025, including Michael P. Lyons as President and CEO-Elect, and Frank J. Bisignano's transition Executive Officers (as of Feb 20, 2025) | Name | Age | Title | | :---------------- | :-- | :------------------------------------- | | Frank J. Bisignano | 65 | Chairman and Chief Executive Officer | | Guy Chiarello | 65 | Chief Operating Officer | | John Gibbons | 65 | Head of Financial Institutions Group | | Robert W. Hau | 59 | Chief Financial Officer | | Jennifer LaClair | 53 | Head of Merchant Solutions | | Michael P. Lyons | 54 | President and CEO-Elect | | Adam L. Rosman | 59 | Chief Administrative Officer and Chief Legal Officer | - **Michael P. Lyons** was appointed President and CEO-Elect in January 2025, with current CEO **Frank J. Bisignano** transitioning to Chairman and CEO until his potential departure by June 30, 2025[155](index=155&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Fiserv's common stock trades on NYSE (FI), with **1,479 shareholders**; no dividends are anticipated. In Q4 2024, **6.1 million shares** were repurchased for **$1.2 billion** - Fiserv's common stock is traded on the **New York Stock Exchange (NYSE)** under the symbol 'FI'[157](index=157&type=chunk) - As of December 31, 2024, there were **1,479 shareholders of record**[157](index=157&type=chunk) - The company has never paid dividends on its common stock and does not anticipate paying them in the foreseeable future[157](index=157&type=chunk) Issuer Purchases of Equity Securities (Q4 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :----------------- | :--------------------- | :--------------------------- | | October 1-31, 2024 | 2,155,547 | $192.86 | | November 1-30, 2024| 1,810,500 | $214.25 | | December 1-31, 2024| 2,156,806 | $206.95 | | Total | 6,122,853 | | - As of December 31, 2024, approximately **18.0 million shares** remained under existing repurchase authorization[158](index=158&type=chunk) [Stock Performance Graph](index=29&type=section&id=Stock%20Performance%20Graph) The stock performance graph compares Fiserv's cumulative total shareholder return against the S&P 500 and S&P 500 Financials Indices for the five years ended December 31, 2024 - The graph compares Fiserv's **cumulative total shareholder return** against the S&P 500 Index and S&P 500 Financials Index for the five years ended December 31, 2024[160](index=160&type=chunk) Cumulative Total Shareholder Return (Indexed to $100 at Dec 31, 2019) | Index / Company | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | | :---------------------- | :--- | :--- | :--- | :--- | :--- | :--- | | Fiserv, Inc. | $100 | $98 | $90 | $87 | $115 | $178 | | S&P 500 Index | $100 | $118 | $152 | $125 | $158 | $197 | | S&P 500 Financials Index| $100 | $98 | $133 | $119 | $133 | $174 | [Item 6. [Reserved]](index=30&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Fiserv's financial condition and results, including recast segment performance, strategic priorities, industry trends, critical accounting policies, and detailed financial performance for 2024 and 2023 - Fiserv realigned its reportable segments to **Merchant Solutions** and **Financial Solutions** in Q1 2024, with prior periods recast for comparability[163](index=163&type=chunk) - The company is a leading global provider of payments and financial services technology solutions, with most products being **non-discretionary for clients**[165](index=165&type=chunk) - Fiserv's enterprise priorities include **driving growth, building high-quality revenue, deepening client relationships, delivering innovation, and disciplined capital allocation**[176](index=176&type=chunk) - Industry trends show rapid growth in **digital payments, e-commerce, and real-time payments**, intensifying competition and increasing demand for modern, integrated solutions[177](index=177&type=chunk)[178](index=178&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk) [Overview](index=31&type=section&id=Overview) Fiserv, a global leader in payments and financial services technology, realigned its segments, manages its portfolio through M&A, and prioritizes client value, innovation, and operational effectiveness amid industry trends - Fiserv is a leading global provider of payments and financial services technology solutions, serving merchants, banks, credit unions, and public sector clients[165](index=165&type=chunk) - The company realigned its reportable segments to **Merchant Solutions** and **Financial Solutions** in Q1 2024[165](index=165&type=chunk)[167](index=167&type=chunk) - Strategic acquisitions in 2023 included Skytef and Sled for **$17 million**, expanding distribution and instant payment capabilities; pending 2024 acquisitions (CCV and Payfare) are valued at approximately **$360 million**[171](index=171&type=chunk)[172](index=172&type=chunk) - In 2023, Fiserv sold its financial reconciliation business for **$235 million**, recognizing a **$172 million pre-tax gain**[173](index=173&type=chunk) - The Wells Fargo Merchant Services (WFMS) joint venture is expected to expire on April 1, 2025, leading to a **$595 million non-cash impairment** in 2024[174](index=174&type=chunk) - **Global macroeconomic conditions**, including interest rates, inflation, and geopolitical events, continue to impact business operations and financial results[186](index=186&type=chunk) [Critical Accounting Policies and Estimates](index=34&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Fiserv's financial statements rely on critical accounting policies and estimates for acquisitions, goodwill, intangible assets, revenue recognition, and income taxes, requiring significant judgment and impacting financial results - Acquisitions require significant judgment in allocating purchase price to assets and liabilities at fair value, including complex estimates for **intangible assets and their useful lives**[190](index=190&type=chunk) - Goodwill is tested for impairment annually at the reporting unit level, using discounted cash flow and market approaches, with the lowest reporting unit having a **29% excess fair value** over carrying value in 2024[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) - Revenue recognition involves significant judgment in identifying distinct performance obligations, determining transaction prices (including variable consideration), and allocating prices in **multi-element arrangements and contract modifications**[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk) - Income tax provision requires judgment in estimating **deferred tax assets/liabilities** and assessing the likelihood of realizing tax benefits, with potential significant impact on the effective income tax rate[203](index=203&type=chunk)[204](index=204&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Fiserv reported **7%** revenue growth to **$20.5 billion** in 2024, with operating income up **17%** to **$5.9 billion** and operating margin at **28.7%**, leading to **$3.13 billion** net income and **$5.38** diluted EPS Consolidated Statements of Income Highlights (2024 vs. 2023) | Metric | 2024 ($M) | 2023 ($M) | Change ($M) | Change (%) | | :----------------------------------------- | :-------- | :-------- | :---------- | :--------- | | Total revenue | 20,456 | 19,093 | 1,363 | 7% | | Processing and services revenue | 16,637 | 15,630 | 1,007 | 6% | | Product revenue | 3,819 | 3,463 | 356 | 10% | | Total expenses | 14,577 | 14,079 | 498 | 4% | | Operating income | 5,879 | 5,014 | 865 | 17% | | Operating margin | 28.7% | 26.3% | 240 bps | | | Net income attributable to Fiserv, Inc. | 3,131 | 3,068 | 63 | 2% | | Net income attributable to Fiserv, Inc. per share - Diluted | $5.38 | $4.98 | $0.40 | 8% | Segment Revenue and Operating Income Growth (2024 vs. 2023) | Segment | Revenue Growth ($M) | Revenue Growth (%) | Operating Income Growth ($M) | Operating Income Growth (%) | | :------------------ | :------------------ | :----------------- | :--------------------------- | :-------------------------- | | Merchant Solutions | 909 | 10% | 587 | 20% | | Financial Solutions | 376 | 4% | 307 | 7% | | Corporate and Other | 78 | 6% | (29) | | - Total revenue increased **7%** in 2024, primarily due to higher global processing revenue, partially offset by foreign currency exchange rate fluctuations[213](index=213&type=chunk) - Merchant segment revenue grew **10%** in 2024, driven by Small Business (**8% contribution**) and Enterprise (**3% contribution**) due to increased payment volumes and new client wins[214](index=214&type=chunk) - Financial segment revenue grew **4%** in 2024, with Digital Payments contributing **2%** (driven by Zelle transactions and network routing) and Issuing contributing **1%** (due to active accounts)[215](index=215&type=chunk) - Total expenses as a percentage of total revenue decreased by **240 basis points** to **71.3%** in 2024, favorably impacted by operating leverage and reduced amortization of acquisition-related intangible assets[216](index=216&type=chunk)[219](index=219&type=chunk) - Interest expense, net, increased by **$219 million** (**22%**) in 2024 due to higher fixed-rate outstanding borrowings from new senior note issuances[224](index=224&type=chunk) - Other expense, net, increased by **$38 million** in 2024, including a **$147 million non-cash settlement charge** for terminated pension plans, partially offset by gains on equity securities[225](index=225&type=chunk) - Loss from investments in unconsolidated affiliates was **$685 million** in 2024, primarily due to a **$595 million non-cash impairment** related to the Wells Fargo Merchant Services merchant alliance[228](index=228&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) Fiserv's liquidity is driven by operating cash flow (**$6.6 billion**, up **28%** in 2024), cash, commercial paper, and a **$6.0 billion** credit facility, with **$5.5 billion** in share repurchases and **$24.84 billion** total debt - Primary liquidity needs are funded by operating cash flow, cash and cash equivalents (**$1.2 billion** at Dec 31, 2024), commercial paper, and a **$2.8 billion** available capacity under the revolving credit facility[231](index=231&type=chunk) Net Cash Provided by Operating Activities and Capital Expenditures | Metric | 2024 ($M) | 2023 ($M) | Change ($M) | Change (%) | | :------------------------------------------------------------------ | :-------- | :-------- | :---------- | :--------- | | Net cash provided by operating activities | 6,631 | 5,162 | 1,469 | 28% | | Capital expenditures, including capitalized software and other intangibles | 1,569 | 1,388 | 181 | 13% | - The company's policy is to use operating cash flow for **capital expenditures, merchant cash advances, share repurchases, and debt repayment**, rather than dividends[233](index=233&type=chunk) Future Cash Requirements (as of Dec 31, 2024) | Obligation | Total ($M) | Less than 1 year ($M) | 1-3 years ($M) | 3-5 years ($M) | More than 5 years ($M) | | :------------------------------ | :--------- | :-------------------- | :------------- | :------------- | :--------------------- | | Long-term debt, including interest | 30,812 | 2,025 | 9,165 | 6,738 | 12,884 | | Minimum finance lease payments | 699 | 238 | 339 | 101 | 21 | | Minimum operating lease payments| 933 | 133 | 265 | 167 | 368 | | Purchase obligations | 2,181 | 872 | 880 | 275 | 154 | | Unrecognized income tax obligations | 85 | 7 | 8 | 22 | 48 | | Total | 34,710 | 3,275 | 10,657 | 7,303 | 13,475 | - Fiserv repurchased **$5.5 billion** of common stock in 2024, with **18.0 million shares** remaining under authorization[235](index=235&type=chunk)[236](index=236&type=chunk) - In 2024, Fiserv issued **$3.75 billion** in senior notes to fund general corporate purposes, including commercial paper repayment and share repurchases[242](index=242&type=chunk)[243](index=243&type=chunk) Total Debt (as of Dec 31, 2024) | Debt Type | Amount ($M) | | :-------------------------------------- | :---------- | | Fixed-rate senior notes | 21,600 | | Commercial paper programs (outstanding) | 1,500 | | Total Debt (carrying value) | 24,840 | - The company was in compliance with all financial debt covenants during 2024[253](index=253&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Fiserv manages interest rate and foreign currency risks using derivatives; a **1%** variable interest rate increase would raise annual interest expense by **$24 million**, largely mitigated, and foreign currency changes are not expected to materially impact pre-tax income - Fiserv manages market risks from **interest rates and foreign currency exchange rates** using derivative instruments[259](index=259&type=chunk) - A hypothetical **1% increase in variable interest rates** would increase annual interest expense by approximately **$24 million**, largely mitigated by interest earned on subscriber funds and intermediary settlement cash[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk) - Foreign currency risk arises from non-U.S. dollar-denominated investments and transactions, with **15% of total revenue** generated internationally in 2024[263](index=263&type=chunk)[264](index=264&type=chunk) - A **10% strengthening or weakening of the U.S. dollar** is not expected to materially impact reported pre-tax income[265](index=265&type=chunk) - The company uses **forward exchange contracts** and **fixed-to-fixed cross-currency rate swap contracts** as cash flow and net investment hedges[266](index=266&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=49&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Fiserv's audited consolidated financial statements for 2024-2022, including income, comprehensive income, balance sheets, equity, and cash flows, with detailed notes and an unqualified auditor's opinion - The section includes the audited consolidated financial statements for the years ended **December 31, 2024, 2023, and 2022**[268](index=268&type=chunk)[270](index=270&type=chunk)[272](index=272&type=chunk)[275](index=275&type=chunk)[277](index=277&type=chunk)[279](index=279&type=chunk) - Key financial statements presented are **Consolidated Statements of Income, Comprehensive Income, Balance Sheets, Equity, and Cash Flows**[268](index=268&type=chunk) - Detailed Notes to Consolidated Financial Statements cover **significant accounting policies, recent pronouncements, revenue recognition, acquisitions**, and other financial details[268](index=268&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk)[286](index=286&type=chunk)[333](index=333&type=chunk)[353](index=353&type=chunk)[366](index=366&type=chunk)[368](index=368&type=chunk)[370](index=370&type=chunk)[372](index=372&type=chunk)[381](index=381&type=chunk)[390](index=390&type=chunk)[397](index=397&type=chunk)[410](index=410&type=chunk)[420](index=420&type=chunk)[423](index=423&type=chunk)[424](index=424&type=chunk)[436](index=436&type=chunk)[440](index=440&type=chunk)[448](index=448&type=chunk)[452](index=452&type=chunk)[455](index=455&type=chunk) - The Report of Independent Registered Public Accounting Firm provides an **unqualified opinion** on the financial statements and discusses critical audit matters related to revenue and goodwill impairment[468](index=468&type=chunk)[472](index=472&type=chunk)[475](index=475&type=chunk)[476](index=476&type=chunk) [Index to Consolidated Financial Statements](index=49&type=section&id=Index%20to%20Consolidated%20Financial%20Statements) This index lists all consolidated financial statements and accompanying notes included in the report, starting from page 46 - The index provides a list of all consolidated financial statements and notes, starting from **page 46**[268](index=268&type=chunk) [Consolidated Statements of Income](index=50&type=section&id=Consolidated%20Statements%20of%20Income) The Consolidated Statements of Income detail Fiserv's financial performance for 2024, 2023, and 2022, including revenue, expenses, operating income, net income, and diluted EPS Consolidated Statements of Income (in millions, except per share data) | Metric | 2024 | 2023 | 2022 | | :----------------------------------------- | :------ | :------ | :------ | | Processing and services revenue | $16,637 | $15,630 | $14,460 | | Product revenue | $3,819 | $3,463 | $3,277 | | **Total revenue** | **$20,456** | **$19,093** | **$17,737** | | Cost of processing and services | $5,363 | $5,332 | $5,771 | | Cost of product | $2,650 | $2,338 | $2,221 | | Selling, general and administrative | $6,564 | $6,576 | $6,059 | | Net gain on sale of businesses and other assets | $— | $(167) | $(54) | | **Total expenses** | **$14,577** | **$14,079** | **$13,997** | | **Operating income** | **$5,879** | **$5,014** | **$3,740** | | Interest expense, net | $(1,195)| $(976) | $(733) | | Other expense, net | $(178) | $(140) | $(94) | | Income before income taxes and (loss) income from investments in unconsolidated affiliates | $4,506 | $3,898 | $2,913 | | Income tax provision | $(641) | $(754) | $(551) | | (Loss) income from investments in unconsolidated affiliates | $(685) | $(15) | $220 | | **Net income** | **$3,180** | **$3,129** | **$2,582** | | Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | $49 | $61 | $52 | | **Net income attributable to Fiserv, Inc.**| **$3,131** | **$3,068** | **$2,530** | | Net income attributable to Fiserv, Inc. per share: Basic | $5.41 | $5.02 | $3.94 | | Net income attributable to Fiserv, Inc. per share: Diluted | $5.38 | $4.98 | $3.91 | [Consolidated Statements of Comprehensive Income](index=51&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The Consolidated Statements of Comprehensive Income present Fiserv's net income and other comprehensive income/loss components for 2024, 2023, and 2022, including derivatives, pension plans, and foreign currency impacts Consolidated Statements of Comprehensive Income (in millions) | Metric | 2024 | 2023 | 2022 | | :------------------------------------------------------------------------------------------------- | :------ | :------ | :------ | | Net income | $3,180 | $3,129 | $2,582 | | Other comprehensive (loss) income: | | | | | Fair market value adjustment on derivatives | $(13) | $14 | $(15) | | Reclassification adjustment for net realized (gains) losses on cash flow hedges included in cost of processing and services | $(3) | $4 | $2 | | Reclassification adjustment for net realized losses on cash flow hedges included in net interest expense | $14 | $15 | $19 | | Tax impacts of derivatives | $1 | $(8) | $(2) | | Unrealized (loss) gain on defined benefit pension plans | $(117) | $7 | $(78) | | Realized loss due to settlement of terminated defined benefit pension plans | $132 | $— | $— | | Tax impacts of defined benefit pension plans | $(5) | $(2) | $18 | | Foreign currency translation | $(607) | $288 | $(421) | | Reclassification adjustment for accumulated foreign currency translation impacts from the sale of foreign entities included in net gain on sale of businesses and other assets | $— | $10 | $56 | | Tax impacts of foreign currency translation | $(66) | $68 | $(73) | | **Total other comprehensive (loss) income** | **$(664)** | **$396** | **$(494)** | | **Comprehensive income** | **$2,516** | **$3,525** | **$2,088** | | Less: net income attributable to noncontrolling interests and redeemable noncontrolling interests | $49 | $61 | $52 | | Less: other comprehensive loss attributable to noncontrolling interests | $(34) | $(10) | $(50) | | **Comprehensive income attributable to Fiserv, Inc.** | **$2,501** | **$3,474** | **$2,086** | [Consolidated Balance Sheets](index=52&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets show Fiserv's financial position as of December 31, 2024, with **$77.18 billion** in total assets and **$49.49 billion** in total liabilities, including significant goodwill and intangibles Consolidated Balance Sheets (in millions) | Asset / Liability / Equity | Dec 31, 2024 | Dec 31, 2023 | | :----------------------------------------- | :----------- | :----------- | | Cash and cash equivalents | $1,236 | $1,204 | | Trade accounts receivable, net | $3,725 | $3,582 | | Prepaid expenses and other current assets | $3,087 | $2,344 | | Settlement assets | $15,429 | $27,681 | | **Total current assets** | **$23,477** | **$34,811** | | Property and equipment, net | $2,374 | $2,161 | | Customer relationships, net | $5,868 | $7,075 | | Other intangible assets, net | $4,072 | $4,135 | | Goodwill | $36,584 | $37,205 | | Investments in unconsolidated affiliates | $1,506 | $2,262 | | **Total assets** | **$77,176** | **$90,890** | | Accounts payable and other current liabilities | $4,799 | $4,355 | | Short-term and current maturities of long-term debt | $1,110 | $755 | | Settlement obligations | $15,429 | $27,681 | | **Total current liabilities** | **$22,157** | **$33,552** | | Long-term debt | $23,730 | $22,363 | | Deferred income taxes | $2,477 | $3,078 | | **Total liabilities** | **$49,490** | **$60,221** | | Total Fiserv, Inc. shareholders' equity | $27,068 | $29,857 | | Noncontrolling interests | $618 | $651 | | **Total equity** | **$27,686** | **$30,508** | [Consolidated Statements of Equity](index=53&type=section&id=Consolidated%20Statements%20of%20Equity) The Consolidated Statements of Equity detail changes in Fiserv's shareholders' equity for 2024, 2023, and 2022, including net income, comprehensive loss, share-based compensation, and **$5.55 billion** in 2024 treasury stock repurchases Consolidated Statements of Equity Highlights (in millions) | Metric | 2024 | 2023 | 2022 | | :----------------------------------------- | :-------- | :-------- | :-------- | | Balance at January 1 | $30,508 | $31,527 | $31,672 | | Net income | $3,131 | $3,068 | $2,530 | | Other comprehensive (loss) income | $(630) | $406 | $(494) | | Share-based compensation | $367 | $342 | $323 | | Purchases of treasury stock | $(5,549) | $(4,744) | $(2,500) | | Balance at December 31 | $27,686 | $30,508 | $31,527 | [Consolidated Statements of Cash Flows](index=54&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows detail Fiserv's cash generation and usage for 2024, 2023, and 2022, with net cash from operating activities increasing to **$6.63 billion** in 2024 Consolidated Statements of Cash Flows (in millions) | Activity | 2024 | 2023 | 2022 | | :----------------------------------------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $6,631 | $5,162 | $4,618 | | Net cash used in investing activities | $(2,404) | $(1,068) | $(2,112) | | Net cash used in financing activities | $(4,165) | $(4,356) | $(2,478) | | Effect of exchange rate changes | $(32) | $33 | $(41) | | Net change in cash and cash equivalents | $30 | $(229) | $(13) | | Cash and cash equivalents, ending balance | $2,993 | $2,963 | $3,192 | - Net cash provided by operating activities increased by **28%** to **$6.63 billion** in 2024, primarily due to increased profitability and working capital improvements[232](index=232&type=chunk)[280](index=280&type=chunk) - Capital expenditures, including capitalized software, increased by **13%** to **$1.57 billion** in 2024[232](index=232&type=chunk)[280](index=280&type=chunk) - Purchases of treasury stock, including employee shares withheld for tax obligations, amounted to **$5.84 billion** in 2024[280](index=280&type=chunk) [Notes to Consolidated Financial Statements](index=56&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The Notes to Consolidated Financial Statements provide detailed disclosures on accounting policies, pronouncements, revenue, acquisitions, assets, debt, employee benefits, share-based compensation, income taxes, and business segments - Note 1 outlines **significant accounting policies**, including business description, principles of consolidation, use of estimates, revenue recognition, cash and cash equivalents, allowance for doubtful accounts, leases, settlement assets and obligations, allowance for merchant credit losses, property and equipment, intangible assets, and goodwill[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk)[295](index=295&type=chunk)[297](index=297&type=chunk)[299](index=299&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk) - Note 2 details recently adopted accounting pronouncements (**ASU 2023-07 on Segment Reporting, ASU 2022-03 on Fair Value Measurement**) and recently issued pronouncements (**ASU 2023-09 on Income Tax Disclosures, ASU 2024-03 on Expense Disaggregation Disclosures**)[328](index=328&type=chunk)[329](index=329&type=chunk)[330](index=330&type=chunk)[332](index=332&type=chunk) - Note 3 provides detailed information on **revenue recognition policies**, including identification of performance obligations, determination and allocation of transaction price, and contract modifications, with revenue disaggregated by business line and geographic region[333](index=333&type=chunk)[334](index=334&type=chunk)[335](index=335&type=chunk)[336](index=336&type=chunk)[338](index=338&type=chunk)[341](index=341&type=chunk)[342](index=342&type=chunk)[343](index=343&type=chunk)[344](index=344&type=chunk)[345](index=345&type=chunk)[346](index=346&type=chunk)[347](index=347&type=chunk) - Note 4 covers **acquisitions** (Merchant One, Finxact, Skytef, Sled, Yacaré, NexTable, City POS) and **dispositions** (financial reconciliation business, Fiserv Costa Rica, Korea operations), including purchase prices, gains/losses, and goodwill allocation[353](index=353&type=chunk)[354](index=354&type=chunk)[356](index=356&type=chunk)[359](index=359&type=chunk)[360](index=360&type=chunk)[362](index=362&type=chunk)[363](index=363&type=chunk)[364](index=364&type=chunk)[365](index=365&type=chunk) - Note 7 details changes in goodwill, including a reallocation due to the Segment Realignment in Q1 2024, with a total goodwill balance of **$36.58 billion** at December 31, 2024[370](index=370&type=chunk)[371](index=371&type=chunk) - Note 8 discusses investments in unconsolidated affiliates, including merchant alliances (e.g., WFMS, which incurred a **$595 million non-cash impairment** in 2024) and Lending Joint Ventures[372](index=372&type=chunk)[373](index=373&type=chunk)[374](index=374&type=chunk)[375](index=375&type=chunk)[376](index=376&type=chunk)[377](index=377&type=chunk)[378](index=378&type=chunk) - Note 12 provides a detailed breakdown of Fiserv's debt, including short-term and long-term debt, senior notes, commercial paper, revolving credit facility, and foreign lines of credit, totaling **$24.84 billion** at December 31, 2024[410](index=410&type=chunk)[411](index=411&type=chunk)[412](index=412&type=chunk)[413](index=413&type=chunk)[414](index=414&type=chunk)[415](index=415&type=chunk)[416](index=416&type=chunk)[417](index=417&type=chunk)[418](index=418&type=chunk) - Note 15 details employee benefit plans, including defined contribution plans and the termination of U.K. and U.S. defined benefit pension plans in 2023/2024, resulting in a **$147 million non-cash settlement charge**[424](index=424&type=chunk)[425](index=425&type=chunk)[426](index=426&type=chunk)[428](index=428&type=chunk) - Note 16 outlines share-based compensation activity, including restricted stock units, performance share units, and stock options, with **$367 million** in expense recognized in 2024[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk) - Note 17 provides income tax details, including the provision for income taxes, reconciliation of statutory to effective tax rates (**14.2% in 2024**), deferred tax assets/liabilities, and unrecognized tax benefits[440](index=440&type=chunk)[441](index=441&type=chunk)[442](index=442&type=chunk)[443](index=443&type=chunk)[445](index=445&type=chunk) - Note 20 provides detailed business segment information for **Merchant and Financial segments**, including revenues, personnel expenses, direct costs, depreciation, and operating income[455](index=455&type=chunk)[456](index=456&type=chunk)[457](index=457&type=chunk)[458](index=458&type=chunk)[459](index=459&type=chunk)[460](index=460&type=chunk)[461](index=461&type=chunk)[462](index=462&type=chunk)[463](index=463&type=chunk) [Schedule II - Valuation and Qualifying Accounts](index=98&type=section&id=Schedule%20II%20-%20Valuation%20and%20Qualifying%20Accounts) This schedule details changes in Fiserv's deferred tax asset valuation allowance for 2024, 2023, and 2022, showing a decrease primarily due to subsidiary restructurings Deferred Tax Asset Valuation Allowance (in millions) | Year Ended December 31, | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions Charged to Other Accounts | Deductions | Balance at End of Period | | :---------------------- | :----------------------------- | :-------------------------------------- | :---------------------------------- | :--------- | :----------------------- | | 2024 | $467 | $15 | $(20) | $(58) | $404 | | 2023 | $620 | $2 | $(125) | $(30) | $467 | | 2022 | $697 | $33 | $(41) | $(69) | $620 | - The decrease in the deferred tax asset valuation allowance is primarily due to **subsidiary restructurings**[466](index=466&type=chunk) [Report of Independent Registered Public Accounting Firm](index=99&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued an unqualified opinion on Fiserv's 2024 consolidated financial statements, highlighting critical audit matters in revenue recognition and goodwill impairment - Deloitte & Touche LLP issued an **unqualified opinion** on Fiserv's consolidated financial statements for the period ended December 31, 2024, confirming fair presentation in conformity with GAAP[468](index=468&type=chunk) - Critical audit matters include the complexity of **revenue processing and recognition**, particularly customer contract modifications, due to extensive IT systems and management judgment[473](index=473&type=chunk)[475](index=475&type=chunk) - Another critical audit matter is the annual **goodwill impairment test** for a specific reporting unit with a **29% excess fair value** over carrying value, due to significant estimates and sensitivity to macroeconomic conditions[476](index=476&type=chunk)[477](index=477&type=chunk)[478](index=478&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=96&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - No changes in or disagreements with accountants on accounting and financial disclosure[482](index=482&type=chunk) [Item 9A. Controls and Procedures](index=96&type=section&id=Item%209A.%20Controls%20and%20Procedures) Fiserv's management, with CEO and CFO, concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes - **Disclosure controls and procedures** were effective as of December 31, 2024[483](index=483&type=chunk) - Management assessed and concluded that **internal control over financial reporting** was effective as of December 31, 2024, based on the COSO framework[484](index=484&type=chunk)[486](index=486&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended **December 31, 2024**[487](index=487&type=chunk) - The independent registered public accounting firm issued an **unqualified opinion** on the effectiveness of internal control over financial reporting[490](index=490&type=chunk) [Item 9B. Other Information](index=98&type=section&id=Item%209B.%20Other%20Information) Adam Rosman, CAO and CLO, adopted a Rule 10b5-1 Trading Plan on November 11, 2024, for the sale of up to **17,906 shares** by February 27, 2027 - **Adam Rosman**, Chief Administrative Officer and Chief Legal Officer, adopted a **Rule 10b5-1 Trading Plan** on November 11, 2024[498](index=498&type=chunk) - The plan provides for the sale of up to **17,906 shares of common stock** until February 27, 2027[498](index=498&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=98&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to Fiserv, Inc - Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections is not applicable[499](index=499&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=98&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance, including the Code of Conduct, is incorporated by reference from the 2025 proxy statement - Information on directors, executive officers (excluding Part I details), and corporate governance is incorporated by reference from the **2025 proxy statement**[501](index=501&type=chunk) - Fiserv has a **Code of Conduct and Business Ethics** applicable to all directors and employees, available on its website[502](index=502&type=chunk) [Item 11. Executive Compensation](index=98&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation, including board compensation and pay ratio, is incorporated by reference from the 2025 proxy statement - Information on executive compensation is incorporated by reference from the **2025 proxy statement**[503](index=503&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=98&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated from the 2025 proxy statement, with equity compensation plans showing **3.58 million shares** issuable at **$94.15** weighted-average exercise price and **18.01 million shares** available - Security ownership information is incorporated by reference from the **2025 proxy statement**[504](index=504&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2024) | Plan Category | Number of shares to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of shares remaining available for future issuance | | :------------------------------------------ | :------------------------------------------------------------------------------------ | :---------------------------------------------------------- | :------------------------------------------------------- | | Equity compensation plans approved by shareholders | 3,583,029 | $94.15 | 18,013,195 | | Equity compensation plans not approved by shareholders | N/A | N/A | N/A | | Total | 3,583,029 | $94.15 | 18,013,195 | - The table excludes **4,540,827 unvested restricted stock units** and **22,679,972 shares** authorized under the Employee Stock Purchase Plan[507](index=507&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=105&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2025 proxy statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the **2025 proxy statement**[508](index=508&type=chunk) [Item 14. Principal Accounting Fees and Services](index=105&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services and the audit committee pre-approval policy is incorporated by reference from the 2025 proxy statement - Information on principal accounting fees and services and the audit committee pre-approval policy is incorporated by reference from the **2025 proxy statement**[509](index=509&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=106&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including corporate documents, debt instruments, and certifications; financial statement schedules are omitted - Financial statement schedules are omitted as the required information is presented in the consolidated financial statements or accompanying notes[512](index=512&type=chunk) - The exhibit index lists various documents, including **corporate governance doc

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Fourth Quarter and Full Year 2024 Highlights](index=1&type=section&id=Fourth%20Quarter%20and%20Full%20Year%202024%20Highlights) Fiserv achieved strong Q4 and full-year 2024 financial results, with consistent GAAP revenue and double-digit adjusted EPS growth Fourth Quarter and Full Year 2024 Key Financial Highlights | Metric | Q4 2024 | Full Year 2024 | | :-------------------------------- | :------ | :------------- | | **GAAP Revenue Growth** | 7% | 7% | | **GAAP EPS Growth** | 13% | 8% | | **Operating Cash Flow** | N/A | $6.63 billion | | **Organic Revenue Growth** | 13% | 16% | | **Adjusted EPS Growth** | 15% | 17% | | **Free Cash Flow** | N/A | $5.23 billion | - Fiserv achieved its **fourth consecutive year of double-digit organic revenue growth** and **39th consecutive year of double-digit adjusted earnings per share growth**[7](index=7&type=chunk) - The company repurchased **6.1 million shares** of common stock for **$1.3 billion** in Q4 2024 and **33.9 million shares** for **$5.5 billion** in full year 2024[10](index=10&type=chunk) [2025 Outlook](index=3&type=section&id=2025%20Outlook) Fiserv projects strong organic revenue and adjusted EPS growth for 2025, driven by ongoing initiatives in its key segments 2025 Financial Outlook | Metric | Range | | :-------------------- | :---------- | | Organic Revenue Growth | 10% to 12% | | Adjusted EPS | $10.10 to $10.30 | | Adjusted EPS Growth | 15% to 17% | - The 2025 guidance reflects a continuation of product, client, and distribution strategies, along with a commitment to operational excellence[10](index=10&type=chunk) [GAAP Financial Results](index=1&type=section&id=GAAP%20Financial%20Results) [Consolidated GAAP Performance](index=1&type=section&id=Consolidated%20GAAP%20Performance) Fiserv's consolidated GAAP results for Q4 and full year 2024 show consistent revenue growth, improved operating margins, and increased net income Consolidated GAAP Financial Performance (Q4 & Full Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | YoY Change (Q4) | FY 2024 | FY 2023 | YoY Change (FY) | | :-------------------------------- | :------ | :------ | :-------------- | :-------- | :-------- | :-------------- | | **Revenue** | $5.25B | $4.92B | 7% | $20.46B | $19.09B | 7% | | **GAAP EPS** | $1.64 | $1.45 | 13% | $5.38 | $4.98 | 8% | | **GAAP Operating Margin** | 31.8% | 29.4% | +2.4 pp | 28.7% | 26.3% | +2.4 pp | | **Net Income Attributable to Fiserv** | $938M | $870M | 7.8% | $3,131M | $3,068M | 2.1% | - Full year 2024 GAAP EPS included a **$595 million** non-cash impairment charge related to an equity method investment and a **$147 million** non-cash settlement charge for terminated pension plans[3](index=3&type=chunk) [Segment GAAP Performance](index=1&type=section&id=Segment%20GAAP%20Performance) Both Merchant Solutions and Financial Solutions segments contributed to GAAP revenue growth and saw improvements in GAAP operating margins for both the fourth quarter and full year 2024 [Merchant Solutions Segment](index=1&type=section&id=Merchant%20Solutions%20Segment) The Merchant Solutions segment achieved strong GAAP revenue growth and significant operating margin expansion in Q4 and full year 2024 Merchant Solutions Segment GAAP Performance (Q4 & Full Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | YoY Change (Q4) | FY 2024 | FY 2023 | YoY Change (FY) | | :-------------------- | :------ | :------ | :-------------- | :-------- | :-------- | :-------------- | | **Revenue Growth** | 11% | N/A | N/A | 10% | N/A | N/A | | **Operating Margin** | 39.2% | 37.7% | +1.5 pp | 37.0% | 34.1% | +2.9 pp | [Financial Solutions Segment](index=3&type=section&id=Financial%20Solutions%20Segment) The Financial Solutions segment experienced GAAP revenue growth and improved GAAP operating margins in Q4 and full year 2024 Financial Solutions Segment GAAP Performance (Q4 & Full Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | YoY Change (Q4) | FY 2024 | FY 2023 | YoY Change (FY) | | :-------------------- | :------ | :------ | :-------------- | :-------- | :-------- | :-------------- | | **Revenue Growth** | 3% | N/A | N/A | 4% | N/A | N/A | | **Operating Margin** | 51.7% | 48.4% | +3.3 pp | 47.3% | 45.9% | +1.4 pp | [Non-GAAP Financial Results and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Results%20and%20Reconciliations) [Adjusted Net Income and Earnings Per Share](index=3&type=section&id=Adjusted%20Net%20Income%20and%20Earnings%20Per%20Share) Fiserv's adjusted net income and EPS demonstrated robust growth, reflecting core operational performance after non-GAAP adjustments Adjusted Net Income and EPS (Q4 & Full Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | YoY Change (Q4) | FY 2024 | FY 2023 | YoY Change (FY) | | :-------------------- | :------ | :------ | :-------------- | :-------- | :-------- | :-------------- | | **Adjusted Net Income** | $1,437M | $1,321M | 8.8% | $5,123M | $4,632M | 10.6% | | **Adjusted EPS** | $2.51 | $2.19 | 15% | $8.80 | $7.52 | 17% | - Key adjustments include merger and integration costs, severance costs, amortization of acquisition-related intangible assets, impairment of equity method investments, and non-cash settlement charges for terminated pension plans[27](index=27&type=chunk)[29](index=29&type=chunk)[32](index=32&type=chunk) [Adjusted Operating Margins](index=3&type=section&id=Adjusted%20Operating%20Margins) Adjusted operating margins significantly improved across the company and key segments, indicating enhanced operational efficiency Adjusted Operating Margins (Q4 & Full Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | Change (Q4) | FY 2024 | FY 2023 | Change (FY) | | :-------------------------------- | :------ | :------ | :---------- | :-------- | :-------- | :---------- | | **Total Company Adjusted Operating Margin** | 42.9% | 41.1% | +180 bps | 39.4% | 37.7% | +170 bps | | **Merchant Solutions Adjusted Operating Margin** | 39.2% | 37.7% | +150 bps | 37.0% | 34.1% | +290 bps | | **Financial Solutions Adjusted Operating Margin** | 51.7% | 48.5% | +320 bps | 47.3% | 46.0% | +130 bps | [Organic Revenue Growth](index=3&type=section&id=Organic%20Revenue%20Growth) Fiserv achieved strong organic revenue growth, especially in Merchant Solutions, reflecting robust underlying business performance Organic Revenue Growth (Q4 & Full Year 2024) | Segment | Q4 2024 Growth | FY 2024 Growth | | :-------------------- | :------------- | :------------- | | **Total Company** | 13% | 16% | | **Merchant Solutions** | 23% | 27% | | **Financial Solutions** | 4% | 6% | - Organic revenue growth excludes the impact of foreign currency fluctuations, acquisitions, dispositions, and postage reimbursements, providing a clearer view of core business expansion[18](index=18&type=chunk)[46](index=46&type=chunk) [Free Cash Flow](index=1&type=section&id=Free%20Cash%20Flow) Fiserv generated substantial free cash flow in 2024, significantly increasing from prior year, available for strategic capital decisions Free Cash Flow (Full Year 2024 vs. 2023) | Metric | FY 2024 | FY 2023 | | :-------------- | :-------- | :-------- | | **Free Cash Flow** | $5,233M | $4,016M | | **Net Cash Provided by Operating Activities** | $6,631M | $5,162M | - Free cash flow is calculated by adjusting net cash provided by operating activities for capital expenditures and other items like distributions to noncontrolling interests, severance, and merger/integration payments[18](index=18&type=chunk)[50](index=50&type=chunk) [Total Amortization](index=16&type=section&id=Total%20Amortization) Total amortization expenses for 2024 remained substantial, primarily from acquisition-related intangibles and software Total Amortization (Full Year 2024 vs. 2023) | Category | FY 2024 | FY 2023 | | :-------------------------------- | :-------- | :-------- | | **Acquisition-related intangible assets** | $1,423M | $1,642M | | **Capitalized software and other intangibles** | $631M | $493M | | **Purchased software** | $232M | $225M | | **Financing costs and debt discounts** | $43M | $41M | | **Sales commissions** | $113M | $110M | | **Deferred conversion costs** | $108M | $85M | | **Total Amortization** | $2,550M | $2,596M | - Amortization of acquisition-related intangible assets is excluded from non-GAAP results to provide a comparable measure of operating performance, though these assets contribute to revenue generation[17](index=17&type=chunk)[51](index=51&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The statements of income detail Fiserv's Q4 and full-year 2024 revenue, expenses, and net income, showing growth in total revenue and operating income Condensed Consolidated Statements of Income (Selected Data, FY 2024 vs. 2023) | Metric | FY 2024 | FY 2023 | | :-------------------------------- | :-------- | :-------- | | **Total Revenue** | $20,456M | $19,093M | | **Operating Income** | $5,879M | $5,014M | | **Net Income Attributable to Fiserv** | $3,131M | $3,068M | | **GAAP Diluted EPS** | $5.38 | $4.98 | - Loss from investments in unconsolidated affiliates significantly increased in 2024 to **$685 million** from **$15 million** in 2023, primarily due to an impairment charge[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement highlights increased net cash from operating activities, increased investing, and decreased financing activities in 2024 Condensed Consolidated Statements of Cash Flows (Selected Data, FY 2024 vs. 2023) | Activity | FY 2024 | FY 2023 | | :-------------------------------- | :-------- | :-------- | | **Net cash provided by operating activities** | $6,631M | $5,162M | | **Net cash used in investing activities** | $(2,404)M | $(1,068)M | | **Net cash used in financing activities** | $(4,165)M | $(4,356)M | | **Net change in cash and cash equivalents** | $30M | $(229)M | - Capital expenditures, including capitalized software and other intangibles, increased to **$1,569 million** in 2024 from **$1,388 million** in 2023[41](index=41&type=chunk) - Purchases of treasury stock, including employee shares withheld for tax obligations, amounted to **$5,837 million** in 2024[41](index=41&type=chunk) [Condensed Consolidated Balance Sheets](index=14&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows decreased total assets and liabilities from 2023 to 2024, driven by reduced settlement assets and obligations Condensed Consolidated Balance Sheets (Selected Data, as of Dec 31, 2024 vs. 2023) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------------- | :----------- | :----------- | | **Total Assets** | $77,176M | $90,890M | | **Total Liabilities** | $49,490M | $60,221M | | **Fiserv Shareholders' Equity** | $27,068M | $29,857M | | **Settlement Assets** | $15,429M | $27,681M | | **Settlement Obligations** | $15,429M | $27,681M | - Goodwill remained the largest asset at **$36,584 million**, while customer relationships decreased to **$5,868 million**[43](index=43&type=chunk) [Company Information and Disclosures](index=4&type=section&id=Company%20Information%20and%20Disclosures) [Segment Realignment](index=4&type=section&id=Segment%20Realignment) Fiserv realigned segments in Q1 2024 into Merchant and Financial Solutions to enhance operational performance, with prior periods recast - The realignment aims to further enhance operational performance in delivering integrated products and solutions to financial institution clients[11](index=11&type=chunk) - Segment results for the three months and full year ended December 31, 2023, have been recast to reflect the new structure[11](index=11&type=chunk) [About Fiserv](index=4&type=section&id=About%20Fiserv) Fiserv is a global leader in payments and financial technology, a Fortune 500 and S&P 500 company, recognized for innovation - Fiserv is a global leader in payments and financial technology, helping clients achieve best-in-class results through innovation and excellence[13](index=13&type=chunk) - The company's offerings include account processing, digital banking, card issuer processing, payments, e-commerce, merchant acquiring, and the Clover cloud-based platform[13](index=13&type=chunk) - Fiserv was named one of Fortune World's Most Admired Companies for **10 of the last 11 years**[10](index=10&type=chunk)[13](index=13&type=chunk) [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Fiserv uses non-GAAP measures to supplement GAAP reporting, enhancing performance evaluation by excluding certain non-cash or other items - Non-GAAP measures like adjusted revenue, organic revenue, adjusted EPS, and free cash flow are used to provide additional insights into business performance[14](index=14&type=chunk) - Adjustments typically exclude non-cash intangible asset amortization, impairment charges, severance, merger/integration costs, gains/losses from asset sales, and certain tax benefits/expenses[16](index=16&type=chunk) - These non-GAAP measures are not comparable to similarly titled measures from other companies and should not be considered substitutes for GAAP measures[19](index=19&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements about future financial performance, subject to risks and uncertainties that may cause actual results to differ - Forward-looking statements are identified by words such as 'believes,' 'anticipates,' 'expects,' and describe future plans, outlook, objectives, or goals[20](index=20&type=chunk) - Key risk factors include competition, changes in customer demand, technology evolution, security breaches, economic conditions, regulatory actions, and the ability to integrate acquisitions[21](index=21&type=chunk) - The company assumes no obligation to update any forward-looking statements[21](index=21&type=chunk) [Full Year Forward-Looking Non-GAAP Financial Measures](index=17&type=section&id=Full%20Year%20Forward-Looking%20Non-GAAP%20Financial%20Measures) Fiserv's 2025 outlook for organic revenue growth and adjusted EPS uses non-GAAP measures, with specific exclusions and no GAAP reconciliation due to variability 2025 Organic Revenue Growth Components | Component | Growth Impact | | :-------------------- | :------------ | | **2025 Revenue** | 9% - 11% | | **Postage reimbursements** | (0.5)% | | **2025 Adjusted revenue** | 8.5% - 10.5% | | **Currency impact** | 1.5% | | **Acquisition adjustments** | —% | | **Divestiture adjustments** | —% | | **2025 Organic revenue** | 10% - 12% | - The adjusted EPS outlook for 2025 excludes non-cash intangible asset amortization, impairment charges, merger and integration costs, severance costs, and gains/losses from asset sales[55](index=55&type=chunk) - Amortization expense for acquired intangible assets is estimated to decrease by **approximately 10%** in 2025 compared to 2024[55](index=55&type=chunk)

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This part presents Fiserv, Inc.'s unaudited consolidated financial statements and management's discussion and analysis for the period [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Fiserv, Inc.'s unaudited consolidated financial statements for the three and nine months ended September 30, 2024 and 2023, including statements of income, comprehensive income, balance sheets, cash flows, and detailed notes. Key financial highlights include a decrease in net income attributable to Fiserv, Inc. for Q3 2024 compared to Q3 2023, primarily due to a significant non-cash impairment charge related to an unconsolidated affiliate, while total revenue saw growth. The balance sheet shows a decrease in total assets, largely driven by settlement assets, and a corresponding decrease in total liabilities. Operating cash flow significantly increased for the nine-month period [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the company's consolidated statements of income for the specified periods, detailing key financial figures | Metric (In millions, except per share data) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | **Revenue:** | | | | | | Processing and services | $4,237 | $4,008 | $12,377 | $11,605 | | Product | $978 | $865 | $2,828 | $2,571 | | **Total revenue** | **$5,215** | **$4,873** | **$15,205** | **$14,176** | | **Operating income** | **$1,602** | **$1,503** | **$4,211** | **$3,568** | | Interest expense, net | $(326) | $(258) | $(872) | $(692) | | Other expense, net | $(5) | $(35) | $(17) | $(81) | | Income before income taxes | $1,271 | $1,210 | $3,322 | $2,795 | | Income tax provision | $(74) | $(239) | $(448) | $(544) | | Loss from investments in unconsolidated affiliates | $(626) | $(2) | $(642) | $(11) | | **Net income** | **$571** | **$969** | **$2,232** | **$2,240** | | Net income attributable to Fiserv, Inc. | $564 | $952 | $2,193 | $2,198 | | **Net income attributable to Fiserv, Inc. per share:** | | | | | | Basic | $0.98 | $1.57 | $3.76 | $3.57 | | Diluted | $0.98 | $1.56 | $3.74 | $3.54 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's consolidated statements of comprehensive income for the specified periods, detailing key financial figures | Metric (In millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income | $571 | $969 | $2,232 | $2,240 | | Other comprehensive (loss) income: | | | | | | Foreign currency translation | $210 | $(261) | $(110) | $(11) | | Total other comprehensive (loss) income | $262 | $(283) | $(170) | $21 | | Comprehensive income | $833 | $686 | $2,062 | $2,261 | | Comprehensive income attributable to Fiserv, Inc. | $805 | $686 | $2,020 | $2,221 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's consolidated balance sheets for the specified periods, detailing key financial figures | Metric (In millions) | September 30, 2024 | December 31, 2023 | | :------------------- | :----------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $1,228 | $1,204 | | Trade accounts receivable, net | $3,714 | $3,582 | | Prepaid expenses and other current assets | $2,749 | $2,344 | | Settlement assets | $17,434 | $27,681 | | **Total current assets** | **$25,125** | **$34,811** | | Property and equipment, net | $2,377 | $2,161 | | Customer relationships, net | $6,218 | $7,075 | | Other intangible assets, net | $4,104 | $4,135 | | Goodwill | $37,133 | $37,205 | | Investments in unconsolidated affiliates | $1,585 | $2,262 | | **Total assets** | **$79,792** | **$90,890** | | **Liabilities and Equity** | | | | Accounts payable and other current liabilities | $4,161 | $4,355 | | Short-term and current maturities of long-term debt | $1,200 | $755 |\ | Contract liabilities | $770 | $761 | | Settlement obligations | $17,434 | $27,681 | | **Total current liabilities** | **$23,565** | **$33,552** | | Long-term debt | $24,085 | $22,363 | | Deferred income taxes | $2,526 | $3,078 | | **Total liabilities** | **$51,389** | **$60,221** | | Total Fiserv, Inc. shareholders' equity | $27,751 | $29,857 | | Noncontrolling interests | $652 | $651 | | **Total equity** | **$28,403** | **$30,508** | | **Total liabilities and equity** | **$79,792** | **$90,890** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's consolidated statements of cash flows for the specified periods, detailing key financial figures | Metric (In millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------- | :----------------------------- | :----------------------------- | | Net income | $2,232 | $2,240 | | Net cash provided by operating activities | $4,410 | $3,567 | | Net cash used in investing activities | $(1,740) | $(710) | | Net cash used in financing activities | $(2,185) | $(3,036) | | Net change in cash and cash equivalents | $510 | $(187) | | Cash and cash equivalents, ending balance | $3,473 | $3,005 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes to the consolidated financial statements, offering further context and breakdowns of accounting policies, financial instruments, and segment information [1. Basis of Presentation and Summary of Significant Accounting Policies](index=8&type=section&id=1.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis for preparing the unaudited interim financial statements, emphasizing that they include all necessary adjustments for fair presentation and should be read in conjunction with the annual 10-K. It details the segment realignment effective Q1 2024, consolidating principles, use of estimates, and accounting policies for cash, receivables, settlement assets, goodwill, foreign currency, derivatives, defined benefit plans, and interest expense - The Company realigned its reportable segments in Q1 2024 into Merchant Solutions and Financial Solutions to enhance operational performance and delivery of integrated products[20](index=20&type=chunk) - Foreign currency remeasurement losses from highly inflationary economies (e.g., Argentina) were **$22 million for Q3 2024** (vs **$38 million in Q3 2023**) and **$75 million for 9M 2024** (vs **$88 million in 9M 2023**), included in other expense, net[38](index=38&type=chunk) - The Company terminated its U.K. and U.S. defined benefit pension plans effective September 30, 2023, and expects to recognize a net non-cash pre-tax pension settlement charge of approximately **$140 million** upon completion in Q4 2024[41](index=41&type=chunk)[42](index=42&type=chunk) [2. Recent Accounting Pronouncements](index=12&type=section&id=2.%20Recent%20Accounting%20Pronouncements) This note discusses recently adopted and issued accounting pronouncements. The Company adopted ASU 2022-03 (Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions) effective January 1, 2024, with no material impact. It is currently assessing the impact of ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Tax Disclosures), effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively - ASU 2022-03, Fair Value Measurement, was adopted effective January 1, 2024, with no material impact on financial statements[44](index=44&type=chunk) - The Company is assessing the impact of ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Tax Disclosures), which will enhance and expand disclosure requirements[45](index=45&type=chunk)[46](index=46&type=chunk) [3. Revenue Recognition](index=12&type=section&id=3.%20Revenue%20Recognition) This note details the Company's revenue recognition policies, disaggregating revenue by business line and reportable segment (Merchant and Financial). It also provides information on contract balances and transaction prices allocated to remaining performance obligations, noting that the majority of revenue is earned domestically Revenue by Business Line (In millions) | Business Line | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :-------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Small Business | $1,627 | $1,492 | $4,719 | $4,201 | | Enterprise | $558 | $478 | $1,563 | $1,410 | | Processing | $284 | $289 | $850 | $850 | | **Total Merchant segment revenue** | **$2,469** | **$2,259** | **$7,132** | **$6,461** | | Digital Payments | $987 | $940 | $2,894 | $2,724 | | Issuing | $789 | $756 | $2,316 | $2,217 | | Banking | $636 | $606 | $1,866 | $1,829 | | **Total Financial segment revenue** | **$2,412** | **$2,302** | **$7,076** | **$6,770** | | Corporate and Other | $334 | $312 | $997 | $945 | | **Total Revenue** | **$5,215** | **$4,873** | **$15,205** | **$14,176** | - The Company recognized **$659 million of revenue** during the nine months ended September 30, 2024, that was included in the contract liabilities balance at the beginning of the period[50](index=50&type=chunk) Estimated Processing and Services Revenue from Remaining Performance Obligations (In millions) | Year Ending December 31, | Amount | | :----------------------- | :----- | | Remainder of 2024 | $632 | | 2025 | $2,283 | | 2026 | $1,739 | | 2027 | $1,226 | | Thereafter | $1,412 | [4. Acquisitions and Dispositions](index=14&type=section&id=4.%20Acquisitions%20and%20Dispositions) This note summarizes the Company's acquisition and disposition activities. In late 2023, Fiserv acquired Skytef and Sled for an aggregate of $17 million, expanding its Merchant segment in Latin America. In July 2023, the Company sold its financial reconciliation business for $232 million, recognizing a pre-tax gain of $177 million - Acquired Skytef and Sled in late 2023 for an aggregate of **$17 million**, expanding the Merchant segment's distribution network and payment service capabilities in Latin America[53](index=53&type=chunk) - Sold its financial reconciliation business in July 2023 for **$232 million cash**, recognizing a pre-tax gain of **$177 million**[54](index=54&type=chunk) [5. Intangible Assets](index=15&type=section&id=5.%20Intangible%20Assets) This note provides a breakdown of identifiable intangible assets, including customer relationships, acquired software and technology, trade names, purchased software, and capitalized software. Total net book value of intangible assets decreased from $11,210 million at December 31, 2023, to $10,322 million at September 30, 2024, primarily due to amortization Identifiable Intangible Assets (In millions) | Category | September 30, 2024 Net Book Value | December 31, 2023 Net Book Value | | :-------------------------- | :-------------------------------- | :------------------------------- | | Customer relationships | $6,218 | $7,075 | | Acquired software and technology | $831 | $1,000 | | Trade names | $241 | $285 | | Purchased software | $501 | $567 | | Capitalized software and other intangibles | $2,531 | $2,283 | | **Total** | **$10,322** | **$11,210** | - Amortization expense for identifiable intangible assets was **$566 million for Q3 2024** (vs **$579 million in Q3 2023**) and **$1.7 billion for 9M 2024** (vs **$1.8 billion in 9M 2023**)[55](index=55&type=chunk) [6. Investments in Unconsolidated Affiliates](index=15&type=section&id=6.%20Investments%20in%20Unconsolidated%20Affiliates) This note details the Company's equity method investments, primarily in merchant alliances. In Q3 2024, the Company recorded a $570 million non-cash impairment charge on its 40% ownership interest in the Wells Fargo Merchant Services (WFMS) alliance due to a non-renewal notice from Wells Fargo, effective April 1, 2025. The Company expects to receive a cash payment or assets equal to the fair value of its share of WFMS upon expiration - Wells Fargo provided notice of non-renewal for the WFMS merchant alliance, effective April 1, 2025, leading to an expected cash payment or assets for Fiserv's **40% ownership**[58](index=58&type=chunk)[129](index=129&type=chunk) - A **$570 million non-cash impairment charge** was recorded in Q3 2024 due to an other-than-temporary decline in the carrying value of the WFMS equity method investment[59](index=59&type=chunk)[129](index=129&type=chunk) - The Company's investment in merchant alliances decreased from **$1.9 billion at December 31, 2023, to $1.3 billion at September 30, 2024**[60](index=60&type=chunk) [7. Derivatives and Hedging Instruments](index=16&type=section&id=7.%20Derivatives%20and%20Hedging%20Instruments) This note describes the Company's use of derivative instruments to manage exposure to interest rate and foreign currency fluctuations. It utilizes cash flow hedges (forward exchange contracts for Indian Rupee, Treasury Locks for interest rates), net investment hedges (fixed-to-fixed cross-currency rate swaps and foreign currency-denominated debt for Euro, Singapore Dollar, Canadian Dollar, British Pound), and fair value hedges (fixed-to-fixed cross-currency rate swaps for British Pound and Euro-denominated debt) - The Company uses forward exchange contracts as cash flow hedges for Indian Rupee exposure, with a notional amount of **$451 million at September 30, 2024**[63](index=63&type=chunk) - Fixed-to-fixed cross-currency rate swap contracts and foreign currency-denominated debt are designated as net investment hedges for Euro, Singapore Dollar, Canadian Dollar, and British Pound exposures[65](index=65&type=chunk)[66](index=66&type=chunk) - Fair value hedges include fixed-to-fixed cross-currency rate swap contracts to mitigate spot foreign exchange rate risk on British Pound and Euro-denominated senior notes[69](index=69&type=chunk) [8. Fair Value Measurements](index=17&type=section&id=8.%20Fair%20Value%20Measurements) This note outlines the fair value measurements for various assets and liabilities, including derivative instruments, contingent consideration, and the obligation to purchase a redeemable noncontrolling interest. It also provides fair value disclosures for debt and details the Company's debt guarantee arrangements for its Lending Joint Ventures Assets and Liabilities Measured at Fair Value on a Recurring Basis (In millions) | Item | Classification | Fair Value Hierarchy | Sep 30, 2024 | Dec 31, 2023 | | :---------------------------------------- | :---------------------------------------- | :------------------- | :----------- | :----------- | | **Assets:** | | | | | | Forward exchange contracts (cash flow hedges) | Prepaid expenses and other current assets | Level 2 | $1 | $2 | | Cross-currency rate swap contract (fair value hedge) | Prepaid expenses and other current assets | Level 2 | $31 | — | | Cross-currency rate swap contract (fair value hedge) | Other long-term assets | Level 2 | — | $3 | | **Liabilities:** | | | | | | Cross-currency rate swap contracts (fair value hedges) | Accounts payable and other current liabilities | Level 2 | $2 | — | | Cross-currency rate swap contracts (net investment hedges) | Accounts payable and other current liabilities | Level 2 | $27 | — | | Cross-currency rate swap contracts (fair value hedges) | Other long-term liabilities | Level 2 | $2 | $1 | | Cross-currency rate swap contracts (net investment hedges) | Other long-term liabilities | Level 2 | $57 | $61 | | Contingent consideration | Accounts payable and other current liabilities | Level 3 | — | $2 | | Obligation to purchase redeemable noncontrolling interest | Accounts payable and other current liabilities | Level 3 | $95 | — | | Contingent debt guarantee | Other long-term liabilities | Level 3 | $17 | $23 | - The estimated fair value of total debt (excluding finance leases) was **$24.1 billion at September 30, 2024**, compared to a carrying value of **$24.3 billion**[73](index=73&type=chunk) - The Company guarantees **$509 million of debt** for its Lending Joint Ventures, with a non-contingent liability of **$24 million** and a contingent liability for expected credit losses of **$17 million at September 30, 2024**[75](index=75&type=chunk)[76](index=76&type=chunk)[192](index=192&type=chunk) [9. Accounts Payable and Other Current Liabilities](index=20&type=section&id=9.%20Accounts%20Payable%20and%20Other%20Current%20Liabilities) This note provides a detailed breakdown of accounts payable and other current liabilities. Total current liabilities decreased from $4,355 million at December 31, 2023, to $4,161 million at September 30, 2024, primarily due to a decrease in transferable federal tax credits and accrued interest, partially offset by an increase in other accrued expenses and client deposits Accounts Payable and Other Current Liabilities (In millions) | Category | September 30, 2024 | December 31, 2023 | | :---------------------------------------- | :----------------- | :---------------- | | Trade accounts payable | $483 | $449 | | Client deposits | $984 | $931 | | Transferable federal tax credits | $337 | $804 | | Accrued compensation and benefits | $303 | $344 | | Accrued taxes | $267 | $203 | | Accrued interest | $183 | $298 | | Accrued payment network fees | $276 | $232 | | Operating lease liabilities | $109 | $118 | | Accrued professional fees | $114 | $96 | | Obligation to purchase redeemable noncontrolling interest | $95 | — | | Other accrued expenses | $1,010 | $880 | | **Total** | **$4,161** | **$4,355** | [10. Debt](index=21&type=section&id=10.%20Debt) This note details the Company's debt structure, including short-term and long-term debt. Total debt increased from $23,118 million at December 31, 2023, to $25,285 million at September 30, 2024, driven by new senior note issuances in March and August 2024 totaling $3.75 billion, used for general corporate purposes, commercial paper repayment, and share repurchases. The Company was in compliance with all financial debt covenants Company Debt (In millions) | Category | September 30, 2024 | December 31, 2023 | | :---------------------------------------- | :----------------- | :---------------- | | Short-term and current maturities of long-term debt: | | | | Foreign lines of credit | $868 | $442 | | Finance lease and other financing obligations | $332 | $313 | | **Total short-term and current maturities** | **$1,200** | **$755** | | Long-term debt: | | | | Senior notes (various maturities) | $21,917 | $19,888 | | U.S. dollar commercial paper notes | $317 | $418 | | Euro commercial paper notes | $1,329 | $1,321 | | Revolving credit facility | $70 | $74 | | Unamortized discount and deferred financing costs | $(160) | $(145) | | Finance lease and other financing obligations | $659 | $652 | | **Total long-term debt** | **$24,085** | **$22,363** | | **Total Debt** | **$25,285** | **$23,118** | - Issued **$1.75 billion in senior notes in August 2024** and **$2.0 billion in senior notes in March 2024**, with proceeds used for general corporate purposes, commercial paper repayment, and share repurchases[80](index=80&type=chunk)[81](index=81&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - Foreign lines of credit, primarily in Latin America, increased to **$868 million at September 30, 2024**, from **$442 million at December 31, 2023**, with a weighted-average interest rate of **34.503%**[88](index=88&type=chunk)[185](index=185&type=chunk) [11. Redeemable Noncontrolling Interest](index=23&type=section&id=11.%20Redeemable%20Noncontrolling%20Interest) This note describes the activity related to a redeemable noncontrolling interest in a merchant alliance joint venture. Effective June 2024, the joint venture agreement was terminated, and the Company redeemed the minority partner's 1% interest in exchange for future distribution of certain merchant contracts. This resulted in a reclassification of the obligation to a current liability and an adjustment to additional paid-in capital - The Company terminated a merchant alliance joint venture agreement in June 2024, redeeming a **1% redeemable noncontrolling interest** in exchange for future merchant contracts[90](index=90&type=chunk) - The redeemable noncontrolling interest balance decreased from **$161 million at the beginning of 2024 to $0 at September 30, 2024**, due to reclassification to a current liability (**$95 million**) and an adjustment to estimated redemption value (**$66 million**)[91](index=91&type=chunk) [12. Equity](index=24&type=section&id=12.%20Equity) This note provides detailed tables showing changes in Fiserv, Inc. shareholders' equity and noncontrolling interests for the three and nine months ended September 30, 2024 and 2023. Key movements include net income, other comprehensive income/loss, share-based compensation, and significant treasury stock purchases Fiserv, Inc. Shareholders' Equity (In millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :---------------------------------------- | :----------- | :----------- | | Common Stock | $8 | $8 | | Additional Paid-In Capital | $23,003 | $23,103 | | Accumulated Other Comprehensive Loss | $(956) | $(783) | | Retained Earnings | $22,637 | $20,444 | | Treasury Stock | $(16,941) | $(12,915) | | **Total Fiserv, Inc. Shareholders' Equity** | **$27,751** | **$29,857** | | Noncontrolling Interests | $652 | $651 | | **Total Equity** | **$28,403** | **$30,508** | - Treasury stock increased by **$4,026 million** from December 31, 2023, to September 30, 2024, reflecting significant share repurchases[15](index=15&type=chunk)[93](index=93&type=chunk) - Accumulated other comprehensive loss increased from **$(783) million at December 31, 2023, to $(956) million at September 30, 2024**, primarily due to other comprehensive loss before reclassifications[15](index=15&type=chunk)[93](index=93&type=chunk) [13. Accumulated Other Comprehensive Loss](index=26&type=section&id=13.%20Accumulated%20Other%20Comprehensive%20Loss) This note provides a detailed breakdown of changes in accumulated other comprehensive loss by component (derivatives, foreign currency translation, pension plans). The total accumulated other comprehensive loss increased from $(783) million at December 31, 2023, to $(956) million at September 30, 2024, primarily driven by foreign currency translation losses and pension plan adjustments Changes in Accumulated Other Comprehensive Loss (In millions) | Component | Balance at Dec 31, 2023 | Net current-period other comprehensive income (loss) 9M 2024 | Balance at Sep 30, 2024 | | :---------------- | :---------------------- | :----------------------------------------------------------- | :---------------------- | | Derivatives | $(78) | $2 | $(76) | | Foreign Currency Translation | $(688) | $(96) | $(784) | | Pension Plans | $(17) | $(79) | $(96) | | **Total** | **$(783)** | **$(173)** | **$(956)** | [14. Share-Based Compensation](index=26&type=section&id=14.%20Share-Based%20Compensation) This note details the Company's share-based compensation expense and activity. Share-based compensation expense was $88 million for Q3 2024 (vs $76 million in Q3 2023) and $273 million for 9M 2024 (vs $275 million in 9M 2023). The remaining unrecognized compensation cost is $412 million, expected to be recognized over 1.9 years - Share-based compensation expense was **$88 million for Q3 2024** (up from **$76 million in Q3 2023**) and **$273 million for 9M 2024** (down from **$275 million in 9M 2023**)[95](index=95&type=chunk) - Total remaining unrecognized compensation cost for share-based awards is **$412 million**, with a weighted-average recognition period of **1.9 years**[95](index=95&type=chunk) Share-Based Compensation Activity (Nine Months Ended Sep 30, 2024) | Category | Restricted Stock Units and Awards (Shares in thousands) | Performance Share Units (Shares in thousands) | Stock Options (Shares in thousands) | | :-------------------------------- | :-------------------------------------------- | :------------------------------------ | :---------------------------------- | | Units/options - Dec 31, 2023 | 5,419 | 3,219 | 3,865 | | Granted | 2,243 | 334 | — | | Forfeited | (333) | (512) | (10) | | Vested/Exercised | (2,446) | (1,052) | (2,153) | | Units/options - Sep 30, 2024 | 4,883 | 1,989 | 1,702 | [15. Income Taxes](index=27&type=section&id=15.%20Income%20Taxes) This note outlines the Company's income tax provision and effective income tax rate. The effective income tax rate significantly decreased to 5.8% for Q3 2024 (vs 19.8% in Q3 2023) and 13.5% for 9M 2024 (vs 19.5% in 9M 2023), primarily due to a $142 million deferred tax benefit associated with a $570 million non-cash impairment charge on investments in unconsolidated affiliates Income Tax Provision and Effective Income Tax Rate (In millions) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :---------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Income tax provision | $74 | $239 | $448 | $544 | | Effective income tax rate | 5.8% | 19.8% | 13.5% | 19.5% | - The lower effective tax rate in 2024 was driven by a **$142 million deferred tax benefit** related to a **$570 million non-cash impairment charge** on unconsolidated affiliates[97](index=97&type=chunk) - The Company's potential liability for unrecognized tax benefits was approximately **$88 million at September 30, 2024**, with a possible decrease of up to **$5 million** over the next twelve months[99](index=99&type=chunk) [16. Shares Used in Computing Net Income Per Share Attributable to Fiserv, Inc.](index=28&type=section&id=16.%20Shares%20Used%20in%20Computing%20Net%20Income%20Per%20Share%20Attributable%20to%20Fiserv,%20Inc.) This note provides the weighted-average common shares outstanding used for basic and diluted net income per share calculations. Diluted shares decreased by 5% for Q3 2024 and 6% for 9M 2024 compared to the prior year, primarily due to the Company's share repurchase program Shares Used in Computing Net Income Per Share (In millions) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Weighted-average common shares outstanding - basic | 573.7 | 606.2 | 582.5 | 616.2 | | Common stock equivalents | 3.2 | 4.1 | 3.2 | 4.1 | | Weighted-average common shares outstanding - diluted | 576.9 | 610.3 | 585.7 | 620.3 | - Diluted weighted-average outstanding shares decreased by **5% in Q3 2024** and **6% in 9M 2024** compared to 2023, driven by the share repurchase program[101](index=101&type=chunk)[168](index=168&type=chunk) [17. Cash Flow Information](index=28&type=section&id=17.%20Cash%20Flow%20Information) This note provides supplemental cash flow information, including interest and income taxes paid, and non-cash investing and financing activities. Interest paid increased to $983 million for 9M 2024 (vs $703 million in 9M 2023), and net income taxes paid increased to $1,015 million (vs $966 million in 9M 2023) Supplemental Cash Flow Information (In millions) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Interest paid | $983 | $703 | | Net income taxes paid | $1,015 | $966 | | Treasury stock purchases settled after balance sheet date | $39 | $6 | | Software obtained under financing arrangements | $96 | $175 | | Right-of-use assets obtained for operating leases | $74 | $69 | | Right-of-use assets obtained for finance leases | $197 | $242 | [18. Commitments and Contingencies](index=28&type=section&id=18.%20Commitments%20and%20Contingencies) This note addresses the Company's commitments and contingencies, including legal proceedings, electronic payments transactions, and indemnifications. The Company maintains an accrual of $29 million for legal proceedings, with a possible exposure range of $0 to $110 million, which management does not expect to materially impact financial statements. Subscriber funds for electronic payments, not on the balance sheet, totaled $677 million at September 30, 2024 - The Company has an accrual of **$29 million for legal proceedings**, with a possible exposure range of **$0 to $110 million**, not expected to materially impact financial statements[103](index=103&type=chunk)[199](index=199&type=chunk) - Subscriber funds for electronic payments, held off-balance sheet, totaled **$677 million at September 30, 2024**, a significant decrease from **$3.5 billion at December 31, 2023**[104](index=104&type=chunk) [19. Related Party Transactions](index=29&type=section&id=19.%20Related%20Party%20Transactions) This note details related party transactions, primarily with merchant alliances and a share repurchase from an affiliate of a board member. Processing and other service fees charged to equity method merchant alliances were $36 million for Q3 2024 (vs $44 million in Q3 2023) and $113 million for 9M 2024 (vs $135 million in 9M 2023). In August 2023, the Company repurchased $500 million of common stock from ValueAct Capital Master Fund, L.P - Processing and other service fees charged to equity method merchant alliances were **$36 million for Q3 2024** (down from **$44 million in Q3 2023**) and **$113 million for 9M 2024** (down from **$135 million in 9M 2023**)[108](index=108&type=chunk) - In August 2023, the Company repurchased **4.1 million shares of common stock for $500 million** from ValueAct Capital Master Fund, L.P., an affiliate of a board member[109](index=109&type=chunk) [20. Business Segment Information](index=29&type=section&id=20.%20Business%20Segment%20Information) This note provides detailed financial information for the Company's two reportable segments: Merchant Solutions and Financial Solutions, following a realignment in Q1 2024. It also describes the Corporate and Other segment, which includes unallocated expenses and certain gains/losses. Both Merchant and Financial segments showed revenue and operating income growth for the three and nine months ended September 30, 2024 - The Company's operations are comprised of two reportable segments: Merchant Solutions and Financial Solutions, following a Q1 2024 realignment[110](index=110&type=chunk)[121](index=121&type=chunk) Segment Revenue and Operating Income (In millions) | Segment | Total Revenue Q3 2024 | Total Revenue Q3 2023 | Operating Income Q3 2024 | Operating Income Q3 2023 | | :---------------- | :-------------------- | :-------------------- | :----------------------- | :----------------------- | | Merchant | $2,469 | $2,259 | $931 | $786 | | Financial | $2,412 | $2,302 | $1,143 | $1,079 | | Corporate and Other | $334 | $312 | $(472) | $(362) | | **Total** | **$5,215** | **$4,873** | **$1,602** | **$1,503** | | Segment | Total Revenue 9M 2024 | Total Revenue 9M 2023 | Operating Income 9M 2024 | Operating Income 9M 2023 | | :---------------- | :-------------------- | :-------------------- | :----------------------- | :----------------------- | | Merchant | $7,132 | $6,461 | $2,582 | $2,123 | | Financial | $7,076 | $6,770 | $3,244 | $3,050 | | Corporate and Other | $997 | $945 | $(1,615) | $(1,605) | | **Total** | **$15,205** | **$14,176** | **$4,211** | **$3,568** | - Merchant segment operating margin increased by **290 basis points to 37.7% in Q3 2024** and **330 basis points to 36.2% in 9M 2024**, driven by operating leverage and productivity[149](index=149&type=chunk)[159](index=159&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Fiserv's financial condition and results of operations for the three and nine months ended September 30, 2024. It covers an overview of the company, recent acquisitions and dispositions, industry trends, critical accounting policies, detailed results of operations, and liquidity and capital resources. The discussion highlights revenue growth driven by both Merchant and Financial segments, improved operating margins, and significant share repurchases, alongside the impact of a non-cash impairment charge and increased interest expenses [Forward-Looking Statements](index=31&type=section&id=Forward-Looking%20Statements) This section outlines the inherent risks and uncertainties associated with forward-looking statements in the report, covering various operational and market factors - The report contains forward-looking statements subject to significant risks and uncertainties, including competition, customer demand, technology evolution, security breaches, economic conditions, regulatory actions, and acquisition integration[117](index=117&type=chunk) [Overview](index=31&type=section&id=Overview) This section provides a high-level description of Fiserv's business as a global provider of payments and financial services technology solutions, highlighting key industry trends and segment realignment - Fiserv is a global provider of payments and financial services technology solutions, serving merchants, banks, credit unions, and public sector clients with non-discretionary products and services[118](index=118&type=chunk)[120](index=120&type=chunk) - The Company realigned its reportable segments in Q1 2024 into Merchant Solutions and Financial Solutions to enhance operational performance[121](index=121&type=chunk) - Key industry trends include the rapid growth of digital payments, e-commerce, real-time payments, and increasing demand for integrated, flexible systems from merchants and financial institutions[131](index=131&type=chunk)[132](index=132&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) [Changes in Critical Accounting Policies and Estimates](index=35&type=section&id=Changes%20in%20Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the ongoing evaluation of accounting policies and estimates, noting a new critical policy for equity method investments due to a material impairment charge - The Company continually evaluates accounting policies and estimates, with a new critical accounting policy identified for equity method investments due to a material impairment charge[143](index=143&type=chunk)[144](index=144&type=chunk) - A **$570 million pre-tax non-cash impairment charge** was recorded in Q3 2024 for an equity method investment (WFMS) due to an other-than-temporary decline in value[145](index=145&type=chunk)[146](index=146&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing revenue growth, operating income, and the impact of a significant non-cash impairment charge on net income and diluted EPS Key Financial Performance (In millions, except percentages) | Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) | 9M 2024 | 9M 2023 | Change ($) | Change (%) | | :---------------------------------------- | :------ | :------ | :--------- | :--------- | :------ | :------ | :--------- | :--------- | | Total Revenue | $5,215 | $4,873 | $342 | 7% | $15,205 | $14,176 | $1,029 | 7% | | Operating Income | $1,602 | $1,503 | $99 | 7% | $4,211 | $3,568 | $643 | 18% | | Operating Margin | 30.7% | 30.8% | (10) bps | | 27.7% | 25.2% | 250 bps | | | Net Income attributable to Fiserv, Inc. | $564 | $952 | $(388) | (41)% | $2,193 | $2,198 | $(5) | —% | | Diluted EPS | $0.98 | $1.56 | | | $3.74 | $3.54 | | | - Total revenue increased by **7% for both Q3 and 9M 2024**, driven by higher processing revenue in Merchant and Financial segments, partially offset by foreign currency fluctuations[151](index=151&type=chunk) - Net income attributable to Fiserv, Inc. decreased by **41% in Q3 2024**, primarily due to a **$570 million non-cash impairment charge** related to the Wells Fargo Merchant Services alliance[148](index=148&type=chunk)[166](index=166&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) This section examines the company's cash flow generation, capital allocation strategies, including share repurchases, and overall financial flexibility to meet its operational and investment needs - Operating cash flow increased by **24% to $4.4 billion** for the first nine months of 2024, driven by increased profitability and favorable working capital fluctuations[170](index=170&type=chunk) - The Company repurchased **$4.3 billion of common stock** during the first nine months of 2024, with approximately **24.2 million shares** remaining under the existing repurchase authorization[173](index=173&type=chunk)[174](index=174&type=chunk) Cash and Cash Equivalents (In millions) | Category | September 30, 2024 | December 31, 2023 | | :--------- | :----------------- | :---------------- | | Available | $617 | $450 | | Unavailable | $611 | $754 | | **Total** | **$1,228** | **$1,204** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily from fluctuations in interest rates and foreign currency exchange rates. Fiserv uses derivative instruments like forward exchange contracts and cross-currency rate swap contracts to manage these risks. Major currency exposures include the Argentine Peso, Brazilian Real, British Pound, Euro, and Indian Rupee, with particular concern for devaluation in highly inflationary economies like Argentina - The Company is exposed to market risks from interest rate and foreign currency exchange rate fluctuations, managed through derivative instruments[194](index=194&type=chunk) - Major currency exposures include Argentine Peso, Brazilian Real, British Pound, Euro, and Indian Rupee, with risks from devaluation in highly inflationary economies[195](index=195&type=chunk) - No significant changes to quantitative and qualitative analyses about market risk occurred during the nine months ended September 30, 2024[196](index=196&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of September 30, 2024, based on an evaluation by management, including the CEO and CFO. It also states that there were no material changes in internal control over financial reporting during the three months ended September 30, 2024 [Evaluation of Disclosure Controls and Procedures](index=45&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of September 30, 2024, following evaluation by management - The CEO and CFO evaluated and concluded that the Company's disclosure controls and procedures were effective as of September 30, 2024[197](index=197&type=chunk) [Changes in Internal Control Over Financial Reporting](index=45&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section states that no material changes in internal control over financial reporting occurred during the third quarter of 2024 - There were no changes in internal control over financial reporting during Q3 2024 that materially affected or are reasonably likely to materially affect the Company's internal control[198](index=198&type=chunk) [PART II – OTHER INFORMATION](index=45&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This part covers legal proceedings, equity security sales, other information, exhibits, and official signatures [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the Company is involved in various lawsuits in the normal course of business. Management believes that any liabilities resulting from these legal proceedings are not expected to have a material adverse effect on the consolidated financial statements - The Company is a defendant in lawsuits in the normal course of business[199](index=199&type=chunk) - Management does not expect liabilities from legal proceedings to have a material adverse effect on consolidated financial statements[199](index=199&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides information on the Company's common stock repurchases during the three months ended September 30, 2024. Fiserv repurchased 7,618,298 shares at an average price of $164.81 per share, with 24,157,625 shares remaining under the existing authorization Common Stock Repurchases (Three Months Ended Sep 30, 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | :---------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------- | | July 1-31, 2024 | 2,540,854 | $154.47 | 2,540,854 | | August 1-31, 2024 | 2,990,000 | $164.81 | 2,990,000 | | September 1-30, 2024 | 2,087,444 | $174.71 | 2,087,444 | | **Total** | **7,618,298** | | **7,618,298** | - As of September 30, 2024, approximately **24.2 million shares** remained under the Company's existing repurchase authorization, approved on February 22, 2023[201](index=201&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section states that none of the Company's directors or Section 16 officers adopted or terminated a Rule 10b5-1 Trading Plan or "non-Rule 10b5-1 trading arrangement" during the three months ended September 30, 2024 - No directors or Section 16 officers adopted or terminated Rule 10b5-1 Trading Plans or non-Rule 10b5-1 trading arrangements during Q3 2024[202](index=202&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including supplemental indentures for senior notes, certifications from the CEO and CFO, and various Inline XBRL documents - Exhibits include supplemental indentures for senior notes issued in August 2024, certifications (302 and 906) from the CEO and CFO, and Inline XBRL documents for financial statements[205](index=205&type=chunk)[206](index=206&type=chunk) [Signatures](index=48&type=section&id=Signatures) This section contains the signatures of the registrant's Chief Financial Officer, Robert W. Hau, and Chief Accounting Officer, Kenneth F. Best, certifying the filing of the report on October 23, 2024 - The report was signed by Robert W. Hau, Chief Financial Officer, and Kenneth F. Best, Chief Accounting Officer, on October 23, 2024[210](index=210&type=chunk)

[Third Quarter 2024 Financial Highlights](index=1&type=section&id=1.%20Third%20Quarter%202024%20Financial%20Highlights) Fiserv achieved strong organic revenue and adjusted EPS growth in Q3 and year-to-date, despite a Q3 GAAP EPS decline due to a non-cash impairment [Key Financial Metrics (GAAP & Adjusted)](index=1&type=section&id=1.1%20Key%20Financial%20Metrics%20(GAAP%20%26%20Adjusted)) Fiserv achieved 7% GAAP revenue growth in Q3 and year-to-date, with strong organic revenue and adjusted EPS growth despite a Q3 GAAP EPS decline due to a non-cash impairment Overview of Key Financial Metrics for Q3 2024 and Year-to-Date | Metric | Q3 2024 | YTD 2024 | | :--- | :--- | :--- | | GAAP Revenue Growth | 7% | 7% | | GAAP EPS Change | -37% | +6% | | Organic Revenue Growth | 15% | 17% | | Adjusted EPS Growth | 17% | 18% | | Operating Cash Flow Growth (YTD) | - | +24% | | Free Cash Flow Growth (YTD) | - | +23% | - Q3 GAAP EPS decreased 37% to **$0.98**, primarily due to a **$570 million** non-cash equity method investment impairment charge[1](index=1&type=chunk)[3](index=3&type=chunk) - Year-to-date operating cash flow increased 24% to **$4.41 billion**, and free cash flow increased 23% to **$3.34 billion**[1](index=1&type=chunk) [2024 Outlook Revision](index=1&type=section&id=1.2%202024%20Outlook%20Revision) Fiserv raised its full-year 2024 organic revenue growth outlook to 16% to 17% and adjusted EPS outlook to $8.73 to $8.80, reflecting confidence in future performance - The company raised its 2024 organic revenue growth outlook to **16% to 17%**[1](index=1&type=chunk)[9](index=9&type=chunk) - The company raised its 2024 adjusted EPS outlook to **$8.73 to $8.80**, representing **16% to 17%** growth[1](index=1&type=chunk)[9](index=9&type=chunk) [GAAP Financial Performance](index=1&type=section&id=2.%20GAAP%20Financial%20Performance) Fiserv's Q3 2024 GAAP revenue increased to $5.215 billion, but net income attributable to Fiserv decreased due to a significant loss from equity method investments [Consolidated Income Statement](index=7&type=section&id=2.1%20Consolidated%20Income%20Statement) In Q3 2024, Fiserv's total GAAP revenue grew to $5.215 billion and operating income increased to $1.602 billion, but net income attributable to Fiserv declined to $564 million due to a significant $626 million loss from equity method investments Summary of Consolidated Income Statement for Q3 2024 and Year-to-Date (in millions USD) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $5,215 | $4,873 | $15,205 | $14,176 | | Operating Income | $1,602 | $1,503 | $4,211 | $3,568 | | Net Income Attributable to Fiserv | $564 | $952 | $2,193 | $2,198 | | GAAP Diluted EPS | $0.98 | $1.56 | $3.74 | $3.54 | - In Q3 2024, loss from equity method investments was **$626 million**, compared to **$2 million** in Q3 2023, which was the primary reason for the decline in net income[26](index=26&type=chunk) [Segment-wise GAAP Performance](index=1&type=section&id=2.2%20Segment-wise%20GAAP%20Performance) Both Merchant Solutions and Financial Solutions segments achieved strong GAAP revenue growth and improved operating margins in Q3 2024 and year-to-date [Merchant Solutions Segment](index=1&type=section&id=2.2.1%20Merchant%20Solutions%20Segment) The Merchant Solutions segment achieved 9% GAAP revenue growth in Q3 and 10% year-to-date, with significant improvements in GAAP operating margin for both periods - Merchant Solutions segment GAAP revenue grew **9%** in Q3 and **10%** year-to-date[2](index=2&type=chunk) Merchant Solutions Segment GAAP Operating Margin | Period | 2024 | 2023 | | :--- | :--- | :--- | | Q3 | 37.7% | 34.8% | | YTD | 36.2% | 32.9% | [Financial Solutions Segment](index=1&type=section&id=2.2.2%20Financial%20Solutions%20Segment) The Financial Solutions segment achieved 5% GAAP revenue growth in Q3 and year-to-date, with slight improvements in GAAP operating margin for both periods - Financial Solutions segment GAAP revenue grew **5%** in Q3 and year-to-date[2](index=2&type=chunk) Financial Solutions Segment GAAP Operating Margin | Period | 2024 | 2023 | | :--- | :--- | :--- | | Q3 | 47.4% | 46.9% | | YTD | 45.8% | 45.1% | [Cash Flow from Operations](index=3&type=section&id=2.3%20Cash%20Flow%20from%20Operations) Net cash provided by operating activities increased 24% to $4.41 billion in the first nine months of 2024, demonstrating strong operational cash generation - Net cash provided by operating activities increased **24%** to **$4.41 billion** in the first nine months of 2024, compared to **$3.57 billion** in the prior year period[7](index=7&type=chunk)[43](index=43&type=chunk) [Non-GAAP Financial Performance and Reconciliations](index=3&type=section&id=3.%20Non-GAAP%20Financial%20Performance%20and%20Reconciliations) Fiserv's non-GAAP financial performance highlights strong adjusted net income and EPS growth, robust organic revenue, and significant free cash flow generation, with detailed reconciliations provided [Adjusted Earnings Per Share Reconciliation](index=8&type=section&id=3.1%20Adjusted%20Earnings%20Per%20Share%20Reconciliation) Q3 2024 adjusted net income was $1.325 billion, with adjusted EPS of $2.30, a 17% increase year-over-year, primarily due to adjustments for acquisition-related intangible asset amortization and a non-cash equity method investment impairment Adjusted Net Income and EPS (in millions USD, except per share amounts) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | GAAP Net Income Attributable to Fiserv | $564 | $952 | $2,193 | $2,198 | | Total Adjustments (after tax) | $761 | $244 | $1,493 | $1,113 | | Adjusted Net Income | $1,325 | $1,196 | $3,686 | $3,311 | | GAAP Diluted EPS | $0.98 | $1.56 | $3.74 | $3.54 | | Adjusted EPS | $2.30 | $1.96 | $6.29 | $5.34 | - A **$610 million** non-cash equity method investment impairment in Q3 2024 (primarily related to the Wells Fargo Merchant Services joint venture) was a significant adjustment[30](index=30&type=chunk)[31](index=31&type=chunk) [Adjusted Operating Metrics](index=3&type=section&id=3.2%20Adjusted%20Operating%20Metrics) Fiserv achieved strong adjusted operating margin expansion across the company and its segments, with the total company adjusted operating margin increasing by 170 basis points in both Q3 and year-to-date [Total Company Adjusted Operating Metrics](index=3&type=section&id=3.2.1%20Total%20Company%20Adjusted%20Operating%20Metrics) Total company adjusted revenue grew 7% in Q3 and year-to-date, with adjusted operating margin expanding by 170 basis points in both periods to 40.2% and 38.2% respectively Total Company Adjusted Revenue (in millions USD) | Period | 2024 | 2023 | Growth | | :--- | :--- | :--- | :--- | | Q3 | $4,884 | $4,571 | 7% | | YTD | $14,221 | $13,265 | 7% | Total Company Adjusted Operating Margin | Period | 2024 | 2023 | Growth | | :--- | :--- | :--- | :--- | | Q3 | 40.2% | 38.5% | +170 bps | | YTD | 38.2% | 36.5% | +170 bps | [Merchant Solutions Adjusted Operating Metrics](index=3&type=section&id=3.2.2%20Merchant%20Solutions%20Adjusted%20Operating%20Metrics) The Merchant Solutions segment's adjusted operating margin increased by 290 basis points to 37.7% in Q3 and by 330 basis points to 36.2% year-to-date Merchant Solutions Segment Adjusted Operating Margin | Period | 2024 | 2023 | Growth | | :--- | :--- | :--- | :--- | | Q3 | 37.7% | 34.8% | +290 bps | | YTD | 36.2% | 32.9% | +330 bps | [Financial Solutions Adjusted Operating Metrics](index=3&type=section&id=3.2.3%20Financial%20Solutions%20Adjusted%20Operating%20Metrics) The Financial Solutions segment's adjusted operating margin increased by 40 basis points to 47.4% in Q3 and by 60 basis points to 45.8% year-to-date Financial Solutions Segment Adjusted Operating Margin | Period | 2024 | 2023 | Growth | | :--- | :--- | :--- | :--- | | Q3 | 47.4% | 47.0% | +40 bps | | YTD | 45.8% | 45.2% | +60 bps | [Corporate and Other Adjusted Operating Metrics](index=12&type=section&id=3.2.4%20Corporate%20and%20Other%20Adjusted%20Operating%20Metrics) Corporate and Other adjusted revenue decreased in both Q3 and year-to-date, with adjusted operating losses expanding in both periods Corporate and Other Adjusted Revenue (in millions USD) | Period | 2024 | 2023 | | :--- | :--- | :--- | | Q3 | $3 | $5 | | YTD | $13 | $18 | Corporate and Other Adjusted Operating Loss (in millions USD) | Period | 2024 | 2023 | | :--- | :--- | :--- | | Q3 | $(112) | $(110) | | YTD | $(394) | $(349) | [Organic Revenue Growth](index=3&type=section&id=3.3%20Organic%20Revenue%20Growth) The company achieved strong organic revenue growth of 15% in Q3 and 17% year-to-date, with the Merchant Solutions segment showing exceptional performance at 24% growth in Q3 and 29% year-to-date Organic Revenue Growth Rates | Segment | Q3 2024 Growth | YTD 2024 Growth | | :--- | :--- | :--- | | Total Company | 15% | 17% | | Merchant Solutions | 24% | 29% | | Financial Solutions | 6% | 6% | [Free Cash Flow](index=3&type=section&id=3.4%20Free%20Cash%20Flow) Free cash flow increased 23% to $3.34 billion in the first nine months of 2024, indicating strong cash generation capability after capital expenditures - Free cash flow increased **23%** to **$3.34 billion** in the first nine months of 2024, compared to **$2.72 billion** in the prior year period[10](index=10&type=chunk)[51](index=51&type=chunk) [Total Amortization](index=16&type=section&id=3.5%20Total%20Amortization) Total amortization expenses remained largely consistent in Q3 2024 and year-to-date compared to the prior year, with acquisition-related intangible asset amortization being the largest component Total Amortization Expenses (in millions USD) | Amortization Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Acquisition-related Intangible Assets | $345 | $393 | $1,089 | $1,261 | | Capitalized Software and Other Intangible Assets | $164 | $133 | $464 | $360 | | Purchased Software | $57 | $53 | $175 | $167 | | Financing Costs and Debt Discount | $11 | $10 | $33 | $30 | | Sales Commissions | $29 | $28 | $84 | $83 | | Deferred Conversion Costs | $33 | $21 | $82 | $61 | | **Total Amortization** | **$639** | **$638** | **$1,927** | **$1,962** | [Financial Position](index=14&type=section&id=4.%20Financial%20Position) The company's financial position as of September 30, 2024, shows a decrease in total assets and liabilities, primarily driven by a significant reduction in settlement assets and obligations [Condensed Consolidated Balance Sheets](index=14&type=section&id=4.1%20Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets decreased to $79.792 billion from $90.890 billion at December 31, 2023, mainly due to a substantial reduction in settlement assets, with total liabilities also decreasing due to reduced settlement obligations Condensed Consolidated Balance Sheets (in millions USD) | Metric | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $79,792 | $90,890 | | Total Liabilities | $51,389 | $60,221 | | Fiserv Shareholders' Equity | $27,751 | $29,857 | | Settlement Assets | $17,434 | $27,681 | | Settlement Obligations | $17,434 | $27,681 | - Settlement assets and settlement obligations both significantly decreased from **$27.681 billion** at the end of 2023 to **$17.434 billion** as of September 30, 2024[46](index=46&type=chunk) [2024 Financial Outlook](index=3&type=section&id=5.%202024%20Financial%20Outlook) Fiserv has revised its 2024 financial outlook upwards, projecting stronger organic revenue growth and adjusted EPS, while anticipating a reduction in acquisition-related intangible asset amortization [Revised Outlook for Organic Revenue Growth](index=3&type=section&id=5.1%20Revised%20Outlook%20for%20Organic%20Revenue%20Growth) Fiserv raised its full-year 2024 organic revenue growth outlook to 16% to 17%, driven by strong performance and confidence in future growth - The 2024 organic revenue growth outlook has been raised to **16% to 17%**[9](index=9&type=chunk)[56](index=56&type=chunk) Composition of 2024 Organic Revenue Growth Outlook | Metric | Growth Rate | | :--- | :--- | | 2024 Revenue | 7.5% - 8.5% | | Postage Reimbursement | (0.5)% | | 2024 Adjusted Revenue | 7% - 8% | | Foreign Currency Impact | 8.5% | | Acquisition Adjustment | 0.0% | | Divestiture Adjustment | 0.5% | | **2024 Organic Revenue** | **16% - 17%** | [Revised Outlook for Adjusted EPS](index=3&type=section&id=5.2%20Revised%20Outlook%20for%20Adjusted%20EPS) The company raised its 2024 adjusted EPS outlook to $8.73 to $8.80, representing an anticipated 16% to 17% growth over 2023 adjusted EPS, with acquisition-related intangible asset amortization expected to decrease by approximately 15% compared to 2023 - The 2024 adjusted EPS outlook is **$8.73 to $8.80**[9](index=9&type=chunk)[60](index=60&type=chunk) - The 2024 adjusted EPS growth outlook is **16% to 17%**[60](index=60&type=chunk) - Acquisition-related intangible asset amortization is expected to decrease by approximately **15%** in 2024 compared to 2023[56](index=56&type=chunk) [2023 Adjusted Financials Baseline](index=18&type=section&id=5.3%202023%20Adjusted%20Financials%20Baseline) The 2024 adjusted EPS outlook is benchmarked against the 2023 adjusted EPS of $7.52, which is reconciled from GAAP net income by excluding several non-GAAP items 2023 GAAP to Adjusted Net Income and EPS (in millions USD, except per share amounts) | Metric | 2023 Amount | | :--- | :--- | | 2023 GAAP Net Income Attributable to Fiserv | $3,068 | | Total Adjustments (after tax) | $1,564 | | 2023 Adjusted Net Income | $4,632 | | 2023 GAAP Diluted EPS | $4.98 | | **2023 Adjusted EPS** | **$7.52** | [Company Information and Disclosures](index=4&type=section&id=6.%20Company%20Information%20and%20Disclosures) This section provides an overview of Fiserv, details its segment realignment, explains the use of non-GAAP financial measures, and includes important forward-looking statements and risk factors [About Fiserv](index=4&type=section&id=6.1%20About%20Fiserv) Fiserv, Inc. is a Fortune 500 company and a leading global provider of payments and financial technology solutions, offering a wide range of services including account processing, digital banking, card issuing, payments, e-commerce, merchant acquiring, and the Clover cloud-based point-of-sale platform, consistently recognized as a top fintech provider and one of Fortune's World's Most Admired Companies - Fiserv is a leading global provider of payments and financial technology solutions, offering a wide range of services including account processing, digital banking, card issuing processing, payments, e-commerce, merchant acquiring, and the Clover platform[13](index=13&type=chunk) - Ranked **No. 1** on the IDC FinTech Top 100 list for 2024 for the second consecutive year[10](index=10&type=chunk) - Named one of Fortune's "World's Most Admired Companies" for **nine of the past 10 years**[13](index=13&type=chunk) [Segment Realignment](index=4&type=section&id=6.2%20Segment%20Realignment) Fiserv realigned its reportable segments in Q1 2024 to better reflect business changes and enhance operational performance in delivering integrated products and solutions to financial institution clients, with 2023 comparative period results restated accordingly - The company realigned its reportable segments in Q1 2024 to enhance operational performance[11](index=11&type=chunk) - The new reportable segments are Merchant Solutions and Financial Solutions[11](index=11&type=chunk) - Segment results for the three and nine months ended September 30, 2023, have been restated to reflect this realignment[11](index=11&type=chunk) [Use of Non-GAAP Financial Measures](index=4&type=section&id=6.3%20Use%20of%20Non-GAAP%20Financial%20Measures) Fiserv utilizes non-GAAP financial measures such as adjusted revenue, organic revenue growth, adjusted operating income, adjusted EPS, and free cash flow to provide additional performance insights by excluding certain non-cash or other items, noting that these metrics are not substitutes for GAAP results and may not be comparable to similar measures reported by other companies - Non-GAAP financial measures are used to enhance shareholders' ability to assess the company's performance by excluding certain non-cash or other items[14](index=14&type=chunk) - Adjustments include acquisition-related intangible asset amortization, non-cash impairment charges, severance costs, acquisition and integration costs, gains or losses on business dispositions, and certain discrete tax benefits and expenses[16](index=16&type=chunk) - Organic revenue growth excludes the impact of foreign currency fluctuations, acquisitions, and dispositions; free cash flow measures funds available for debt service and strategic capital decisions[18](index=18&type=chunk) - These non-GAAP measures may not be comparable to similar measures reported by other companies and should not be considered a substitute for GAAP measures[19](index=19&type=chunk) [Forward-Looking Statements](index=5&type=section&id=6.4%20Forward-Looking%20Statements) This press release contains forward-looking statements subject to assumptions, risks, and uncertainties that could cause actual results to differ materially from expectations, and the company undertakes no obligation to update any such statements - Forward-looking statements in the press release relate to future financial performance, including anticipated organic revenue growth and adjusted EPS[20](index=20&type=chunk) - These statements are subject to assumptions, risks, and uncertainties that could cause actual results to differ materially from forward-looking statements[21](index=21&type=chunk) - Risk factors include competition, changes in client demand, technological advancements, security breaches, economic conditions, regulatory actions, litigation, acquisition integration, and financial market volatility[22](index=22&type=chunk) - The company undertakes no obligation to update any forward-looking statements[22](index=22&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission File Number 1-38962 FISERV, INC. (Exact Name of Registrant as Specified in Its Charter) Wisconsin 39-1506125 (State or Other Jurisdiction ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission File Number 1-38962 FISERV, INC. (Exact Name of Registrant as Specified in Its Charter) Wisconsin 39-1506125 (State or Other Jurisdiction ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-38962 Fiserv, Inc. (Exact Name of Registrant as Specified in Its Charter) Wisconsin 39-1506125 (State or Other Jurisdiction of I ...