Analysis of Reportable Segments
Fiserv Inc. operates in 3 segments: Merchant Acceptance (Acceptance); Financial Technology (Fintech); and Payments and Network (Payments).
Segment Profit Margin
Fiserv Inc., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 30.81% | 25.84% | 29.72% | — | — |
| Financial Technology (Fintech) | 35.77% | 34.20% | 30.08% | 29.17% | — |
| Payments and Network (Payments) | 43.84% | 42.90% | 42.41% | 44.89% | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Merchant Acceptance (Acceptance) | Merchant Acceptance (Acceptance) segment profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Financial Technology (Fintech) | Financial Technology (Fintech) segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. | |
| Payments and Network (Payments) | Payments and Network (Payments) segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Segment Profit Margin: Merchant Acceptance (Acceptance)
Fiserv Inc.; Merchant Acceptance (Acceptance); segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 1,996) | 1,427) | 764) | —) | —) |
| Revenue | 6,479) | 5,522) | 2,571) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 30.81% | 25.84% | 29.72% | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 1,996 ÷ 6,479 = 30.81%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Merchant Acceptance (Acceptance) | Merchant Acceptance (Acceptance) segment profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Segment Profit Margin: Financial Technology (Fintech)
Fiserv Inc.; Financial Technology (Fintech); segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 1,081) | 992) | 885) | 851) | —) |
| Revenue | 3,022) | 2,901) | 2,942) | 2,917) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 35.77% | 34.20% | 30.08% | 29.17% | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 1,081 ÷ 3,022 = 35.77%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Financial Technology (Fintech) | Financial Technology (Fintech) segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Segment Profit Margin: Payments and Network (Payments)
Fiserv Inc.; Payments and Network (Payments); segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 2,557) | 2,361) | 1,658) | 1,081) | —) |
| Revenue | 5,833) | 5,504) | 3,909) | 2,408) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 43.84% | 42.90% | 42.41% | 44.89% | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 2,557 ÷ 5,833 = 43.84%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Payments and Network (Payments) | Payments and Network (Payments) segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Segment Capital Expenditures to Depreciation
Fiserv Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 1.28 | 0.95 | 1.01 | — | — |
| Financial Technology (Fintech) | 0.98 | 0.91 | 0.95 | 0.83 | — |
| Payments and Network (Payments) | 1.07 | 0.98 | 0.96 | 0.83 | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Merchant Acceptance (Acceptance) | Merchant Acceptance (Acceptance) segment capital expenditures to depreciation ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Financial Technology (Fintech) | Financial Technology (Fintech) segment capital expenditures to depreciation ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. | |
| Payments and Network (Payments) | Payments and Network (Payments) segment capital expenditures to depreciation ratio improved from 2019 to 2020 and from 2020 to 2021. |
Segment Capital Expenditures to Depreciation: Merchant Acceptance (Acceptance)
Fiserv Inc.; Merchant Acceptance (Acceptance); segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures, including capitalized software and other intangibles | 314) | 227) | 147) | —) | —) |
| Depreciation and amortization expense | 245) | 239) | 146) | —) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.28 | 0.95 | 1.01 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Segment capital expenditures to depreciation = Capital expenditures, including capitalized software and other intangibles ÷ Depreciation and amortization expense
= 314 ÷ 245 = 1.28
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Merchant Acceptance (Acceptance) | Merchant Acceptance (Acceptance) segment capital expenditures to depreciation ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Segment Capital Expenditures to Depreciation: Financial Technology (Fintech)
Fiserv Inc.; Financial Technology (Fintech); segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures, including capitalized software and other intangibles | 222) | 183) | 182) | 153) | —) |
| Depreciation and amortization expense | 226) | 202) | 191) | 185) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.98 | 0.91 | 0.95 | 0.83 | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Segment capital expenditures to depreciation = Capital expenditures, including capitalized software and other intangibles ÷ Depreciation and amortization expense
= 222 ÷ 226 = 0.98
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Financial Technology (Fintech) | Financial Technology (Fintech) segment capital expenditures to depreciation ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Segment Capital Expenditures to Depreciation: Payments and Network (Payments)
Fiserv Inc.; Payments and Network (Payments); segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures, including capitalized software and other intangibles | 272) | 242) | 196) | 67) | —) |
| Depreciation and amortization expense | 254) | 248) | 204) | 81) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.07 | 0.98 | 0.96 | 0.83 | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Segment capital expenditures to depreciation = Capital expenditures, including capitalized software and other intangibles ÷ Depreciation and amortization expense
= 272 ÷ 254 = 1.07
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Payments and Network (Payments) | Payments and Network (Payments) segment capital expenditures to depreciation ratio improved from 2019 to 2020 and from 2020 to 2021. |
Revenue
Fiserv Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 6,479) | 5,522) | 2,571) | —) | —) |
| Financial Technology (Fintech) | 3,022) | 2,901) | 2,942) | 2,917) | —) |
| Payments and Network (Payments) | 5,833) | 5,504) | 3,909) | 2,408) | —) |
| Corporate and Other | 892) | 925) | 765) | 498) | —) |
| Total | 16,226) | 14,852) | 10,187) | 5,823) | —) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Operating income (loss)
Fiserv Inc., operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 1,996) | 1,427) | 764) | —) | —) |
| Financial Technology (Fintech) | 1,081) | 992) | 885) | 851) | —) |
| Payments and Network (Payments) | 2,557) | 2,361) | 1,658) | 1,081) | —) |
| Corporate and Other | (3,346) | (2,928) | (1,698) | (179) | —) |
| Total | 2,288) | 1,852) | 1,609) | 1,753) | —) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Capital expenditures, including capitalized software and other intangibles
Fiserv Inc., capital expenditures, including capitalized software and other intangibles by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 314) | 227) | 147) | —) | —) |
| Financial Technology (Fintech) | 222) | 183) | 182) | 153) | —) |
| Payments and Network (Payments) | 272) | 242) | 196) | 67) | —) |
| Corporate and Other | 352) | 248) | 196) | 140) | —) |
| Total | 1,160) | 900) | 721) | 360) | —) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Depreciation and amortization expense
Fiserv Inc., depreciation and amortization expense by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 245) | 239) | 146) | —) | —) |
| Financial Technology (Fintech) | 226) | 202) | 191) | 185) | —) |
| Payments and Network (Payments) | 254) | 248) | 204) | 81) | —) |
| Corporate and Other | 2,523) | 2,568) | 1,237) | 290) | —) |
| Total | 3,248) | 3,257) | 1,778) | 556) | —) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).