Financial Instruments |
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Instruments | Financial Instruments Cash Flow Hedges During the quarter ended March 31, 2026, the Company entered into interest rate swaps with an aggregate notional amount of $500 million and designated the swaps as cash flow hedges of the variability in forecasted interest payments on its Senior USD Floating Rate Notes. Changes in the fair value of the swaps that are determined to be effective are recorded in Accumulated other comprehensive earnings (loss) ("AOCI") and are reclassified into Interest expense in the periods the hedged forecasted interest payments affect earnings. During the three and six months ended June 30, 2026, the Company recorded $4 million and $7 million, respectively, in Other comprehensive earnings (loss) related to these cash flow hedges and classified nil as Interest expense. Cash payments or receipts related to the periodic interest settlements of these swaps are reflected in operating activities in the consolidated statements of cash flows. The fair value of these swaps totaled assets of $7 million as of June 30, 2026. Fair Value Hedges The Company held fixed-to-variable interest rate swaps with aggregate notional amounts of $1,854 million and £925 million at both June 30, 2026, and December 31, 2025. Prior to the quarter ended September 30, 2023, these swaps were designated as fair value hedges for accounting purposes, converting the interest rate exposure on certain of the Company's Senior Notes from fixed to variable. While designated as fair value hedges, changes in fair value of these interest rate swaps were recorded as an adjustment to long-term debt. During the quarter ended September 30, 2023, the Company de-designated these swaps as fair value hedges. As a result of the de-designations, the final fair value basis adjustments recorded through the dates of de-designation as a decrease of the long-term debt are subsequently amortized as interest expense using the effective interest method over the remaining periods to maturity of the respective long-term debt. The remaining unamortized fair value basis adjustments recorded as a decrease of the long-term debt totaled $173 million and $192 million at June 30, 2026, and December 31, 2025, respectively. We amortized $10 million and $9 million of these balances as Interest expense during the three months, and $19 million and $18 million during the six months, ended June 30, 2026 and 2025, respectively (see Note 7). Concurrently with the de-designations described above, the Company entered into new offsetting variable-to-fixed interest rate swaps. The Company held variable-to-fixed interest rate swaps with aggregate notional amounts of $1,854 million and £925 million at both June 30, 2026, and December 31, 2025. The Company accounts for the de-designated fixed-to-variable and offsetting variable-to-fixed interest rate swaps as economic hedges; as such, effective as of the de-designation dates, changes in interest rates associated with the variable leg of the interest rate swaps do not affect the interest expense recognized on a net basis, eliminating variable-rate risk on the fixed-to-variable interest rate swaps. The terms of the new interest rate swaps when matched against the terms of the existing fixed-to-variable interest rate swaps result in a net fixed coupon spread payable by the Company. The impact of the go-forward changes in fair values of the new and existing interest rate swaps, including the impact of the coupons, is recorded as Other income (expense), net pursuant to accounting for economic hedges and totaled $(6) million and $(27) million for the three months and $(1) million and $(45) million for the six months ended June 30, 2026 and 2025, respectively. The coupon payments are recorded within Cash flows from investing activities in the consolidated statements of cash flows and totaled $64 million and $64 million in cash outflows for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, and December 31, 2025, the aggregate fair value of the Company's new and existing interest rate swaps included derivative assets of $15 million and $15 million and liabilities of $(454) million and $(517) million, respectively. The Company held fixed-for-fixed cross-currency interest rate swaps with aggregate notional amounts of approximately €3,375 million associated with its Senior Euro Notes and £170 million associated with its Senior GBP Notes at both June 30, 2026, and December 31, 2025, to hedge its exposure to foreign currency risk. These swaps are designated as fair value hedges for accounting purposes. The aggregate fair value of these outstanding cross-currency interest rate swaps totaled assets of $197 million and $278 million and liabilities of $0 million and $0 million at June 30, 2026, and December 31, 2025, respectively. Changes in the swap fair values attributable to changes in spot foreign currency exchange rates are recorded in Other income (expense), net and totaled $(32) million and $324 million for the three months, and $(116) million and $478 million for the six months, ended June 30, 2026 and 2025, respectively. This amount offset the impact of changes in spot foreign currency exchange rates on the Senior GBP Notes and Senior Euro Notes also recorded to Other income (expense), net during the hedge period. Changes in swap fair values attributable to excluded components, such as changes in fair value due to forward foreign currency exchange rates and cross-currency basis spreads, are recorded in Accumulated other comprehensive earnings (loss) ("AOCI"). The Company recorded $38 million and $1 million for the three months, and $36 million and $(68) million for the six months, ended June 30, 2026 and 2025, respectively, through Other comprehensive earnings (loss) for the changes in swap fair values attributable to excluded components. The amounts recorded in AOCI generally affect net earnings (loss) through Interest expense using the amortization approach. The Company recognized Interest expense of $10 million and $10 million during the three months, and $21 million and $22 million during the six months, ended June 30, 2026 and 2025, respectively, using the amortization approach. Net Investment Hedges The purpose of the Company's net investment hedges, as discussed below, is to reduce the volatility of FIS' net investment in its Euro- and Pound Sterling-denominated operations due to changes in foreign currency exchange rates. Changes in fair value of the net investment hedging instruments attributable to changes in spot foreign currency exchange rates, representing the effective portion of the hedges, are recorded as a component of AOCI for net investment hedges. The amounts included in AOCI for the net investment hedges will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. The Company assesses effectiveness of cross-currency interest rate swap hedging instruments using the spot method. Under this method, any ineffective portion of these hedging instruments impacts net earnings when the ineffectiveness occurs, while periodic interest settlements are recorded through Interest expense as excluded components (see Note 7). The Company recorded net investment hedge aggregate gain (loss) for the change in fair value and related income tax (expense) benefit within Other comprehensive earnings (loss), net of tax, in the consolidated statements of comprehensive earnings (loss) for its designated net investment hedges as follows (in millions). No ineffectiveness has been recorded on the net investment hedges.
Foreign Currency-Denominated Debt Designations The Company designates certain foreign currency-denominated debt as net investment hedges. An aggregate of €1,000 million and €0 million of Senior Euro Notes with maturities ranging from 2028 to 2030 was designated as a net investment hedge of the Company's investment in Euro-denominated operations as of June 30, 2026, and December 31, 2025, respectively. An aggregate of €100 million of ECP Notes was designated as a net investment hedge of the Company's investment in Euro-denominated operations as of both June 30, 2026, and December 31, 2025. Cross-Currency Interest Rate Swap Designations The Company designates certain cross-currency interest rate swaps as net investment hedges. As of June 30, 2026, and December 31, 2025, an aggregate notional amount of €6,295 million and €6,045 million was designated as a net investment hedge of the Company's investment in Euro-denominated operations, respectively. The cross-currency interest rate swap fair values totaled assets of $28 million and $5 million and liabilities of $(364) million and $(490) million as of June 30, 2026, and December 31, 2025, respectively. During the six months ended June 30, 2026 and 2025, there were no net cash payments or receipts from the settlement of the cross‑currency interest rate swaps. Contingent Consideration The Company has contingent consideration obligations in connection with a business combination. The fair value of the related liabilities was $105 million as of June 30, 2026, estimated using a valuation model that incorporates significant unobservable inputs, including projected financial performance, volatility assumptions, and a risk-adjusted discount rate. During the three and six months ended June 30, 2026, changes in the estimated fair value of the contingent consideration resulted in a gain of $5 million, which was recorded in Other income (expense), net in the consolidated statement of earnings (loss).
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