EX-99.1 2 g24971exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(FIS LOGO)
News Release
FIS Reports Third Quarter 2010 Results
Third Quarter Highlights:
    Revenue of $1.29 billion, up 3.3%, as adjusted
 
    EPS of $0.52, as adjusted
 
    EBITDA margin of 33.1%, up 320 basis points, as adjusted
 
    Free cash flow of $220 million, as adjusted
JACKSONVILLE, Fla., October 26, 2010 — FIS (NYSE:FIS), one of the world’s largest global providers dedicated to banking and payments technologies, today reported financial results for the quarter ended September 30, 2010.
GAAP revenue in the third quarter of 2010 was $1.37 billion, compared to $828.7 million in the third quarter of 2009. GAAP net earnings from continuing operations attributable to common stockholders totaled $134.3 million, or $0.40 per diluted share, compared to $66.6 million, or $0.34 per diluted share, in the prior year quarter.
Adjusted revenue in the third quarter of 2010 increased 3.3% to $1.29 billion compared to pro forma revenue of $1.25 billion in the third quarter of 2009. Adjusted EBITDA increased 14.7% to $426.6 million, compared to pro forma adjusted EBITDA of $371.9 million in the 2009 quarter. The adjusted EBITDA margin expanded 320 basis points to 33.1%. Adjusted net earnings from continuing operations totaled $176.7 million or $0.52 per diluted share compared to adjusted net earnings from continuing operations of $89.2 million, or $0.46 per share, in the third quarter of 2009. Adjusted free cash flow increased to $220.4 million compared to adjusted free cash flow of $132.8 million in the prior year quarter. Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.
“We are very encouraged by the positive momentum in top-line growth. Our discussions with clients continue to trend towards solutions that support their growth initiatives and expansion strategies,” stated Frank Martire, president and chief executive officer of FIS. Martire continued, “On October 1, we celebrated the one-year anniversary of the combination of FIS and Metavante. We have made significant progress towards completing the integration, while remaining focused on serving our clients and executing our business plan.”

 


 

Third Quarter Highlights and Recent Developments
A summary of FIS’ recent key business developments and strategic initiatives include:
    The migration of Banco Bradesco’s 14 million bankcard portfolio to the FIS proprietary Base2000 card processing platform, which was completed on October 2
 
    The signing of a memorandum of understanding (“MOU”) with Banco Bradesco to continue the joint venture in Brazil
 
    A definitive agreement to acquire Capco, a global business and technology consultancy dedicated solely to the financial services industry
 
    The commencement of a process to pursue strategic alternatives for FIS’ item processing and remittance services subsidiary in Brazil, Fidelity National Participacoes Ltda. (formerly known as Proservvi Empreendimentos e Servicos Ltda.)
 
    Completion of a $2.5 billion recapitalization including the repurchase of 86.2 million shares at $29 per share
Acquisitions and Discontinued Operations
On October 1, 2009, FIS completed the acquisition of Metavante Technologies, Inc. The transaction was treated as a purchase and the results of Metavante are included in the consolidated results of FIS beginning October 1, 2009. For comparative purposes, in accordance with management’s desire to improve the understanding of the company’s operating performance, the supplemental information provided below assumes the merger was completed on January 1, 2009 and combines Metavante’s results with FIS’s historical results on a pro forma basis.
During the third quarter of 2010, FIS determined that it will pursue strategic alternatives for its item processing and remittance services subsidiary in Brazil, Fidelity National Participacoes Ltda., and intensify its focus on expanding its card processing operation in the region. The results of Fidelity National Participacoes Ltda. are reported as discontinued operations for all periods presented, along with the previously disclosed ClearPar business divestiture (revenues and expenses from discontinued operations are collapsed and classified as a separate line item on the income statement).
Segment Information
The following segment information is presented on an adjusted pro forma basis, which management believes provides meaningful comparisons between the periods presented. Reconciliations of non-GAAP measures to related GAAP measures are provided in the attached schedules and in the Investor Relations section of the FIS Web site, www.fisglobal.com.
    Financial Solutions revenue increased 10.5% to $485.5 million compared to $439.3 million in the 2009 quarter, driven by growth in professional services, software license sales and account processing revenue. Financial Solutions EBITDA increased 16.9% to $218.8 million, while the margin improved 250 basis points to 45.1% compared to 42.6% in the prior year quarter.
 
    Payment Solutions revenue of $600.6 million declined 1.9% compared to $612.2 million in the 2009 quarter as growth in electronic payment solutions was offset by lower item

 


 

      processing and retail check activity. Payment Solutions EBITDA increased 2.3% to $230.9 million, and the margin increased 150 basis points to 38.4% compared to 36.9% in the prior year.
 
    International Solutions revenue increased 2.3% to $199.4 million in U.S. dollars compared to $194.9 million in the 2009 quarter. The growth was driven by increased payment volumes in Brazil and Asia Pacific. Software and professional services revenue was comparable to prior year. International EBITDA decreased 4.1% to $46.5 million. The reported EBITDA margin was 23.3%, compared to 24.9% in the prior year quarter.
 
    Corporate overhead, which included a $10 million pre-tax benefit related to the favorable resolution of a legal matter, totaled $69.6 million, compared to $89.5 million in the prior year quarter. Interest expense, net of interest income, was $60.9 million compared to $31.8 million in the 2009 quarter. The increase in interest expense was due to the recapitalization completed in the third quarter of 2010.
Balance Sheet
Cash and cash equivalents totaled $389.4 million as of September 30, 2010. FIS began the quarter with approximately $3.0 billion in debt and incurred an additional $2.5 billion related to the leveraged recapitalization. The company subsequently repaid approximately $400 million resulting in debt outstanding of approximately $5.1 billion as of September 30. Capital expenditures in the third quarter of 2010 totaled $93.1 million, compared to $90.7 million in pro forma capital expenditures in the prior year.
2010 Outlook
FIS anticipates 2010 adjusted revenue to be at the high end of its guidance for 1% to 3% growth in constant currency. The company anticipates adjusted earnings per share from continuing operations of $1.95 to $1.99 in 2010, which is consistent with previous guidance of $1.91 to $2.01 per share, and expects to generate adjusted free cash flow in excess of $700 million. FIS is projecting average diluted shares of 353 million for the full year, and 307 million in the fourth quarter.
     “We are very pleased with the solid third quarter results and our financial performance through the first nine months of the year. We remain focused on our client relationships, growing the business and further extending our market leadership.” Martire added.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include adjusted revenue, adjusted earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted net earnings, and adjusted free cash flow. Adjusted revenue excludes a settlement related to the card processing joint venture in Brazil and the impact of deferred revenue purchase accounting. Adjusted EBITDA excludes the impact of merger and acquisition and integration expenses, accelerated stock compensation charges

 


 

associated with merger and acquisition activity, costs associated with the 2010 recapitalization plan, settlement revenue and an impairment charge related to the card processing joint venture in Brazil; deferred revenue purchase accounting and certain other costs. Adjusted net earnings exclude the after-tax impact of merger and acquisition and integration expenses, accelerated stock compensation charges associated with merger and acquisition activity, costs associated with the 2010 recapitalization plan, an impairment charge and settlement related to the card processing joint venture in Brazil, acquisition related amortization, deferred revenue purchase accounting and certain other costs. Adjusted free cash flow is GAAP operating cash flow less capital expenditures, acquisition related cash items and cash items associated with the 2010 recapitalization plan. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FIS’ non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided in the attached schedules and in the Investor Relations section of the FIS Web site, www.fisglobal.com.
Conference Call and Webcast
FIS will host a call with investors and analysts to discuss third quarter 2010 results on Tuesday, October 26, 2010 beginning at 8:30 a.m. Eastern daylight time. To register for the live event and to access a supplemental slide presentation, go to the Investor Relations section at www.fisglobal.com and click on “News and Events.” A webcast replay will be available on FIS’ Investor Relations website, and a telephone replay will be available through November 9, 2010, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 173869. To access a PDF version of this release and accompanying financial tables, go to http://www.investor.fisglobal.com.
About FIS
FIS (NYSE: FIS) is one of the world’s largest global providers dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 30,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. FIS is a member of Standard & Poor’s 500® Index and consistently holds a leading ranking in the annual FinTech 100 list. For more information about FIS, visit www.fisglobal.com.
Forward-Looking Statements
This news release and today’s conference call contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about 2010 adjusted revenue, earnings per share, margin expansion and cash flow, as well as other statements about our expectations, hopes, intentions, or strategies regarding the future, are forward-looking statements. These statements relate to future events and our future results, and involve a number of risks and uncertainties. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Any statements that refer to beliefs, expectations, projections or other characterizations of future events or circumstances and other statements that are not historical facts are forward-looking statements.

 


 

Actual results, performance or achievement could differ materially from those contained in these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to include without limitation: changes and conditions in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes and conditions in either or both the United States and international lending, capital and financial markets; the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy regulations; the effects of our substantial leverage which may limit the funds available to make acquisitions and invest in our business; the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in or new laws or regulations affecting the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries; changes in the growth rates of the markets for core processing, card issuer, and transaction processing services; failures to adapt our services and products to changes in technology or in the marketplace; internal or external security breaches of our systems, including those relating to the theft of personal information and computer viruses affecting our software; the failure to achieve some or all of the benefits that we expect from the Metavante Acquisition (as defined below), including the possibility that the Metavante Acquisition may not be accretive to our earnings due to undisclosed liabilities, management or integration issues, loss of customers, the inability to achieve targeted cost savings, or other factors; our potential inability to find suitable acquisition candidates or finance such acquisitions, which depends upon the availability of adequate cash reserves from operations or of acceptable financing terms and the variability of our stock price, or difficulties in integrating past and future acquired technology or business’ operations, services, clients and personnel; competitive pressures on product pricing and services including the ability to attract new, or retain existing, customers; an operational or natural disaster at one of our major operations centers; and Other risks detailed in “Risk Factors” and other sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and other filings with the SEC. Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition, results of operations and prospects. Accordingly, readers should not place undue reliance on these forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise.
FIS-e
SOURCE: Fidelity National Information Services, Inc.
     
Marcia Danzeisen, 904.854.5083
  Mary Waggoner, 904.854.3282
Senior Vice President
  Senior Vice President
FIS Global Marketing and Communications
  FIS Investor Relations
marcia.danzeisen@fisglobal.com
  mary.waggoner@fisglobal.com
###

 


 

Fidelity National Information Services, Inc.
Earnings Release Supplemental Financial Information
October 26, 2010
             
Exhibit A
  Consolidated Statements of Earnings — Unaudited for the three and nine months ended September 30, 2010 and 2009
 
   
Exhibit B
  Consolidated Balance Sheets — Unaudited as of September 30, 2010 and December 31, 2009
 
   
Exhibit C
  Consolidated Statements of Cash Flows — Unaudited for the nine months ended September 30, 2010 and 2009
 
   
Exhibit D
  Supplemental Non-GAAP Financial Information — Unaudited for the three and nine months ended September 30, 2010 and 2009
 
   
Exhibit E
  Supplemental GAAP to Non-GAAP Reconciliation — Unaudited for the three and nine months ended September 30, 2010 and 2009

1


 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
                                 
    Three months ended September 30,     Nine months ended September 30,  
    2010     2009     2010     2009  
Processing and services revenues
  $ 1,367.2     $ 828.7     $ 3,873.2     $ 2,428.1  
 
                               
Cost of revenues
    897.3       605.4       2,680.9       1,822.2  
Selling, general and administrative expenses
    138.9       89.4       489.8       275.7  
Impairment charges
    154.9             154.9        
 
                       
 
                               
Operating income
    176.1       133.9       547.6       330.2  
 
                       
 
                               
Other income (expense):
                               
Interest expense, net
    (60.9 )     (31.8 )     (108.4 )     (94.3 )
Other income (expense), net
    17.9       1.4             8.0  
 
                       
Total other income (expense)
    (43.0 )     (30.4 )     (108.4 )     (86.3 )
 
                       
 
                               
Earnings from continuing operations before income taxes
    133.1       103.5       439.2       243.9  
Provision for income taxes
    48.2       35.5       161.2       83.8  
 
                       
 
                               
Earnings from continuing operations, net of tax
    84.9       68.0       278.0       160.1  
Earnings (losses) from discontinued operations, net of tax
    (23.9 )     1.0       (32.4 )     1.2  
 
                       
 
                               
Net earnings
    61.0       69.0       245.6       161.3  
Net (earnings) loss attributable to noncontrolling interest
    49.4       (1.4 )     48.3       (1.5 )
 
                       
 
                               
Net earnings attributable to FIS common stockholders
  $ 110.4     $ 67.6     $ 293.9     $ 159.8  
 
                       
 
                               
Net earnings per share-basic from continuing operations attributable to FIS common stockholders *
  $ 0.40     $ 0.35     $ 0.91     $ 0.83  
Net earnings per share-basic from discontinued operations attributable to FIS common stockholders *
    (0.07 )     0.01       (0.09 )     0.01  
 
                       
Net earnings per share-basic attributable to FIS common stockholders *
  $ 0.33     $ 0.35     $ 0.82     $ 0.84  
 
                       
 
                               
Weighted average shares outstanding-basic
    332.2       191.1       360.5       190.5  
 
                       
 
                               
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders *
  $ 0.40     $ 0.34     $ 0.89     $ 0.82  
Net earnings per share-diluted from discontinued operations attributable to FIS common stockholders *
    (0.07 )     0.01       (0.09 )     0.01  
 
                       
Net earnings per share-diluted attributable to FIS common stockholders *
  $ 0.33     $ 0.35     $ 0.80     $ 0.83  
 
                       
 
                               
Weighted average shares outstanding-diluted
    339.2       194.6       367.7       193.0  
 
                       
 
                               
Amounts attributable to FIS common stockholders:
                               
Earnings from continuing operations, net of tax
  $ 134.3     $ 66.6     $ 326.3     $ 158.6  
Earnings (losses) from discontinued operations, net of tax
    (23.9 )     1.0       (32.4 )     1.2  
 
                       
Net earnings attributable to FIS common stockholders
  $ 110.4     $ 67.6     $ 293.9     $ 159.8  
 
                       
 
*   Amounts may not sum due to rounding.

2


 

Exhibit B
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In millions)
                 
    As of     As of  
    September 30,     December 31,  
    2010     2009  
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 389.4     $ 430.9  
Settlement deposits
    48.5       50.8  
Trade receivables, net
    736.6       765.4  
Settlement receivables
    40.3       62.5  
Other receivables
    26.8       30.9  
Receivable from related parties
    28.0       32.0  
Prepaid expenses and other current assets
    123.8       141.2  
Deferred income taxes
    75.1       80.9  
Assets held for sale
    15.0       71.5  
 
           
Total current assets
    1,483.5       1,666.1  
 
               
Property and equipment, net
    371.9       375.9  
Goodwill
    8,222.5       8,232.9  
Intangible assets, net
    2,105.3       2,396.8  
Computer software, net
    911.5       932.7  
Deferred contract costs
    252.5       261.4  
Other noncurrent assets
    208.5       131.8  
 
           
Total assets
  $ 13,555.7     $ 13,997.6  
 
           
 
               
Liabilities and Equity
               
Current liabilities:
               
Accounts payable and accrued liabilities
  $ 481.1     $ 523.2  
Due to Brazilian venture partners
    57.9       73.0  
Settlement payables
    103.3       122.3  
Current portion of long-term debt
    267.5       236.7  
Deferred revenues
    248.4       279.5  
Liabilities held for sale
    28.8        
 
           
Total current liabilities
    1,187.0       1,234.7  
 
Deferred revenues
    92.9       104.8  
Deferred income taxes
    800.2       915.9  
Long-term debt, excluding current portion
    4,828.8       3,016.6  
Other long-term liabilities
    225.9       207.0  
 
           
Total liabilities
    7,134.8       5,479.0  
 
           
 
               
Equity:
               
FIS stockholders’ equity:
               
Preferred stock $0.01 par value
           
Common stock $0.01 par value
    3.8       3.8  
Additional paid in capital
    7,194.1       7,345.1  
Retained earnings
    1,375.8       1,134.6  
Accumulated other comprehensive earnings
    70.2       82.2  
Treasury stock
    (2,383.2 )     (256.8 )
 
           
Total FIS stockholders’ equity
    6,260.7       8,308.9  
Noncontrolling interest
    160.2       209.7  
 
           
Total equity
    6,420.9       8,518.6  
 
           
 
               
Total liabilities and equity
  $ 13,555.7     $ 13,997.6  
 
           

3


 

Exhibit C
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(In millions)
                 
    Nine months ended September 30,  
    2010     2009  
Cash flows from operating activities:
               
Net earnings
  $ 245.6     $ 161.3  
Adjustment to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
    459.8       278.4  
Asset impairment charges
    179.9        
Stock-based compensation
    40.7       27.3  
Deferred income taxes
    (107.8 )     (24.6 )
Excess income tax benefit from exercise of stock options
    (20.8 )     (4.5 )
Other operating activities, net
    (5.8 )     2.5  
Net changes in assets and liabilities, net of effects from acquisitions:
               
Trade receivables
    33.7       134.4  
Settlement receivables
    5.4       4.7  
Prepaid expenses and other assets
    (3.4 )     27.2  
Deferred contract costs
    (36.7 )     (40.7 )
Deferred revenue
    (37.3 )     (13.7 )
Accounts payable, accrued liabilities and other liabilities
    32.6       (47.3 )
 
           
 
               
Net cash provided by operating activities
    785.9       505.0  
 
           
 
               
Cash flows from investing activities:
               
Additions to property and equipment
    (89.9 )     (34.5 )
Additions to computer software
    (137.4 )     (111.1 )
Net proceeds from sale of assets
    71.5        
Acquisitions, net of cash acquired
    (66.6 )     (3.8 )
Other investing activities
    1.5       5.9  
 
           
 
               
Net cash used in investing activities
    (220.9 )     (143.5 )
 
           
 
               
Cash flows from financing activities:
               
Borrowings
    8,067.0       2,147.2  
Repayment of borrowings
    (6,229.5 )     (2,517.0 )
Capitalized debt issuance costs
    (70.3 )      
Dividends paid and other distributions
    (55.1 )     (30.6 )
Excess income tax benefit from exercise of stock options
    20.8       4.5  
Proceeds from exercise of stock options
    198.8       11.6  
Treasury stock purchases
    (2,539.4 )      
Other financing activity
    3.3        
 
           
 
               
Net cash used in financing activities
    (604.4 )     (384.3 )
 
           
 
               
Effect of foreign currency exchange rate changes on cash
    (2.1 )     7.5  
 
           
 
               
Net increase in cash and cash equivalents
    (41.5 )     (15.3 )
 
               
Cash and cash equivalents, at beginning of period
    430.9       220.9  
 
           
 
               
Cash and cash equivalents, at end of period
  $ 389.4     $ 205.6  
 
           

4


 

Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
1. Revenue, Operating Income and EBITDA
                                         
    Three months ended September 30, 2010  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations, as adjusted
  $ 485.5     $ 600.6     $ 199.4     $ 1.6     $ 1,287.1  
 
                             
 
                                       
Operating income (loss)
  $ 179.8     $ 206.8     $ (38.6 )   $ (171.9 )   $ 176.1  
M&A, restructuring, integration and recapitalization costs
                      22.5       22.5  
Brazil joint venture
                  71.6             71.6  
Acquisition deferred revenue adjustments
                      3.2       3.2  
Purchase price amortization
          0.2       0.1       65.9       66.2  
 
                             
Non GAAP operating income (loss)
  $ 179.8     $ 207.0     $ 33.1     $ (80.3 )   $ 339.6  
 
                                       
Depreciation and amortization from continuing
                                       
Operations, as adjusted
    39.0       23.9       13.4       10.7       87.0  
 
                             
EBITDA, as adjusted
  $ 218.8     $ 230.9     $ 46.5     $ (69.6 )   $ 426.6  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    37.0 %     34.5 %     16.6 %     N/M %     26.4 %
 
                             
 
                                       
EBITDA margin, as adjusted
    45.1 %     38.4 %     23.3 %     N/M %     33.1 %
 
                             
                                         
    Three months ended September 30, 2009  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations
  $ 271.4     $ 368.8     $ 189.0     $ (0.5 )   $ 828.7  
Pro forma Metavante revenue and adjustments
    167.9       243.4       5.9       (0.1 )     417.1  
 
                             
Pro forma revenue from continuing operations
  $ 439.3     $ 612.2     $ 194.9     $ (0.6 )   $ 1,245.8  
 
                             
 
                                       
Operating income (loss)
  $ 97.1     $ 99.6     $ 32.8     $ (95.6 )   $ 133.9  
Pro forma Metavante operating income and adjustments
    52.4       98.0       1.9       (82.0 )     70.3  
 
                             
Pro forma operating Income (loss)
    149.5       197.6       34.7       (177.6 )     204.2  
M&A, restructuring and integration costs
                      10.2       10.2  
Purchase price amortization
                      67.5       67.5  
 
                             
Non GAAP operating income (loss)
  $ 149.5     $ 197.6     $ 34.7     $ (99.9 )   $ 281.9  
 
                                       
Depreciation and amortization from continuing
                                       
Operations, as adjusted
    37.7       28.1       13.8       10.4       90.0  
 
                             
EBITDA, as adjusted
  $ 187.2     $ 225.7     $ 48.5     $ (89.5 )   $ 371.9  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    34.0 %     32.3 %     17.8 %     N/M %     22.6 %
 
                             
 
                                       
EBITDA margin, as adjusted
    42.6 %     36.9 %     24.9 %     N/M %     29.9 %
 
                             
 
                                       
Total Revenue Growth from Prior Year Period
                                       
 
                                       
Three months ended September 30,2010
    10.5 %     -1.9 %     2.3 %     N/M %     3.3 %
 
                             
 
                                       

5


 

Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
1. Revenue, Operating Income and EBITDA
                                         
    Nine months ended September 30, 2010  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations, as adjusted
  $ 1,387.3     $ 1,850.0     $ 565.5     $ 4.7     $ 3,807.5  
 
                             
 
                                       
Operating income (loss)
  $ 490.2     $ 619.2     $ 9.4     $ (571.2 )   $ 547.6  
M&A, restructuring, integration and recapitalization costs
                      91.5       91.5  
Brazil joint venture
                71.6             71.6  
Acquisition deferred revenue adjustments
                      17.4       17.4  
Purchase price amortization
          0.7       0.4       196.1       197.2  
 
                             
Non GAAP operating income (loss)
  $ 490.2     $ 619.9     $ 81.4     $ (266.2 )   $ 925.3  
 
                                       
Depreciation and amortization from continuing
                                       
Operations, as adjusted
    114.7       72.8       41.4       29.0       257.9  
 
                             
EBITDA, as adjusted
  $ 604.9     $ 692.7     $ 122.8     $ (237.2 )   $ 1,183.2  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    35.3 %     33.5 %     14.4 %     N/M %     24.3 %
 
                             
 
                                       
EBITDA margin, as adjusted
    43.6 %     37.4 %     21.7 %     N/M %     31.1 %
 
                             
                                         
    Nine months ended September 30, 2009  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations
  $ 807.5     $ 1,112.3     $ 509.8     $ (1.5 )   $ 2,428.1  
Pro forma Metavante revenue and adjustments
    506.7       743.8       16.7       (0.2 )     1,267.0  
 
                             
Pro forma revenue from continuing operations
  $ 1,314.2     $ 1,856.1     $ 526.5     $ (1.7 )   $ 3,695.1  
 
                             
 
                                       
Operating income (loss)
  $ 259.6     $ 281.8     $ 70.1     $ (281.3 )   $ 330.2  
Pro forma Metavante operating income and adjustments
    166.7       288.2       6.3       (246.9 )     214.3  
 
                             
Pro forma operating Income (loss)
    426.3       570.0       76.4       (528.2 )     544.5  
M&A, restructuring and integration costs
                      26.1       26.1  
Purchase price amortization
                      203.3       203.3  
 
                             
Non GAAP operating income (loss)
  $ 426.3     $ 570.0     $ 76.4     $ (298.8 )   $ 773.9  
 
                                       
Depreciation and amortization from continuing
                                       
Operations, as adjusted
    114.8       85.6       39.6       27.1       267.1  
 
                             
EBITDA, as adjusted
  $ 541.1     $ 655.6     $ 116.0     $ (271.7 )   $ 1,041.0  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    32.4 %     30.7 %     14.5 %     N/M %     20.9 %
 
                             
 
                                       
EBITDA margin, as adjusted
    41.2 %     35.3 %     22.0 %     N/M %     28.2 %
 
                             
 
                                       
Total Revenue Growth from Prior Year Period
                                       
 
                                       
Nine months ended September 30, 2010
    5.6 %     -0.3 %     7.4 %     N/M %     3.0 %
 
                             

6


 

Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECONCILIATION OF CASH FLOW MEASURES — UNAUDITED
(In millions)
                                                 
    Three months ended September 30, 2010     Nine months ended September 30, 2010  
    GAAP     Adj     Adjusted     GAAP     Adj     Adjusted  
Cash flows from operating activities:
                                               
Net earnings (1)
  $ 61.0     $ 92.5     $ 153.5     $ 245.6     $ 238.2     $ 483.8  
Adjustments to reconcile net earnings
to net cash provided by operating activities:
                                               
Non-cash adjustments (2)
    253.2       (132.9 )     120.3       546.0       (209.4 )     336.6  
Working capital adjustments (3)
    26.5       13.2       39.7       (5.7 )     (18.2 )     (23.9 )
 
                                   
 
                                               
Net cash provided by operating activities
    340.7       (27.2 )     313.5       785.9       10.6       796.5  
 
                                               
Capital expenditures
    (93.1 )           (93.1 )     (227.3 )           (227.3 )
 
                                   
 
                                               
Free cash flow
  $ 247.6     $ (27.2 )   $ 220.4     $ 558.6     $ 10.6     $ 569.2  
 
                                   
 
                                               
                                                 
    Three months ended September 30, 2009     Nine months ended September 30, 2009  
    GAAP     Adj     Adjusted     GAAP     Adj     Adjusted  
Cash flows from operating activities:
                                               
Net earnings (1)
  $ 69.0     $ 3.5     $ 72.5     $ 161.3     $ 9.7     $ 171.0  
Adjustments to reconcile net earnings
to net cash provided by operating activities:
                                               
Non-cash adjustments (2)
    106.9             106.9       279.1             279.1  
Working capital adjustments (3)
    3.8       (1.0 )     2.8       64.6       2.0       66.6  
 
                                   
 
                                               
Net cash provided by operating activities
    179.7       2.5       182.2       505.0       11.7       516.7  
 
                                               
Capital expenditures
    (49.4 )           (49.4 )     (145.6 )           (145.6 )
 
                                   
 
                                               
Free cash flow
  $ 130.3     $ 2.5     $ 132.8     $ 359.4     $ 11.7     $ 371.1  
 
                                   
 
(1)   Adjustments to Net Earnings reflect the elimination of the after-tax impact of M&A and related integration costs, 2010 leveraged recapitalization plan costs, as well as, non-cash impairment, stock acceleration charges and purchase price amortization. For the 2010 periods, the adjustment also includes the removal of the impact of Santander’s exit from our Brazilian card processing venture.
 
(2)   Adjustments to Non Cash Adjustments reflects the after-tax impact of stock acceleration charges and purchase price amortization. For the 2010 periods, the adjustment also includes the removal of the impact of Santander’s exit from our Brazilian card processing venture.
 
(3)   Adjustments to working capital reflect elimination of settlement of various acquisition related liabilities and for the 2009 period, the elimination of accruals related to the acquisition of Metavante.
Cash flows generated by Metavante Operations are included prospectively beginning October 1, 2009 in the consolidated cash flows for FIS.

7


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
                                 
    Three months ended September 30,     Nine months ended September 30,  
    2010     2009     2010     2009  
Net earnings from continuing operations attributable to FIS
  $ 134.3     $ 66.6     $ 326.3     $ 158.6  
Provision for income taxes
    48.2       35.5       161.2       83.8  
 
                       
 
                               
Earnings from continuing operations before income taxes
    182.5       102.1       487.5       242.4  
Other, net
    (6.4 )     31.8       60.1       87.8  
 
                       
 
                               
Operating income
    176.1       133.9       547.6       330.2  
 
                               
Pro forma Metavante operating income and adjustments
          70.3             214.3  
M&A, restructuring and integration costs
    22.5       10.2       91.5       26.1  
Brazil joint venture
    71.6             71.6        
Acquisition deferred revenue adjustments
    3.2             17.4        
Purchase price amortization
    66.2       67.5       197.2       203.3  
 
                       
 
                               
Non GAAP operating income
    339.6       281.9       925.3       773.9  
 
                               
Depreciation and amortization from continuing operations, as adjusted
    87.0       90.0       257.9       267.1  
 
                       
EBITDA, as adjusted
  $ 426.6     $ 371.9     $ 1,183.2     $ 1,041.0  
 
                       

8


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                                         
    GAAP     M&A                                     Non-GAAP  
    Three Months     Restructuring,             Acquisition                     Three Months  
    Ended     Integration &     Brazil     Deferred             Purchase     Ended  
    September 30, 2010     Recapitalization     Joint     Revenue             Price     September 30, 2010  
    (Unaudited)     Costs (1)     Venture (2)     Adjustments (3)     Subtotal     Amortization (4)     (Unaudited)  
Processing and services revenue
  $ 1,367.2     $     $ (83.3 )   $ 3.2     $ 1,287.1     $     $ 1,287.1  
Cost of revenues
    897.3                         897.3       (66.2 )     831.1  
 
                                         
Gross profit
    469.9             (83.3 )     3.2       389.8       66.2       456.0  
 
                                         
 
                                                       
Selling, general and administrative
    138.9       (22.5 )                 116.4             116.4  
Impairment charges
    154.9             (154.9 )                        
 
                                         
Operating income
    176.1       22.5       71.6       3.2       273.4       66.2       339.6  
 
                                         
 
                                                       
Other income (expense):
                                                       
Interest income (expense), net
    (60.9 )                       (60.9 )           (60.9 )
Other income (expense), net
    17.9       2.7       (19.4 )           1.2             1.2  
 
                                         
Total other income (expense)
    (43.0 )     2.7       (19.4 )           (59.7 )           (59.7 )
 
                                         
 
                                                       
Earnings from continuing operations before income taxes
    133.1       25.2       52.2       3.2       213.7       66.2       279.9  
Provision for income taxes
    48.2       9.3       19.3       1.2       78.0       24.5       102.5  
 
                                         
 
                                                       
Earnings from continuing operations, net of tax
    84.9       15.9       32.9       2.0       135.7       41.7       177.4  
Earnings (losses) from discontinued operations, net of tax (5)
    (23.9 )                       (23.9 )           (23.9 )
 
                                         
Net earnings
    61.0       15.9       32.9       2.0       111.8       41.7       153.5  
Net (earnings) loss attributable to noncontrolling interest
    49.4             (50.1 )           (0.7 )           (0.7 )
 
                                         
 
                                                       
Net earnings attributable to FIS common stockholders
  $ 110.4     $ 15.9     $ (17.2 )   $ 2.0     $ 111.1     $ 41.7     $ 152.8  
 
                                         
 
                                                       
Amounts attributable to FIS common stockholders
                                                       
Earnings from continuing operations, net of tax
  $ 134.3     $ 15.9     $ (17.2 )   $ 2.0     $ 135.0     $ 41.7     $ 176.7  
Earnings (losses) from discontinued operations, net of tax
    (23.9 )                       (23.9 )           (23.9 )
 
                                         
Net earnings attributable to FIS common stockholders
  $ 110.4     $ 15.9     $ (17.2 )   $ 2.0     $ 111.1     $ 41.7     $ 152.8  
 
                                         
 
                                                       
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.40     $ 0.05     $ (0.05 )   $ 0.01     $ 0.40     $ 0.12     $ 0.52  
 
                                         
Weighted average shares outstanding — diluted
    339.2       339.2       339.2       339.2       339.2       339.2       339.2  
 
                                         
 
                                                       
Effective tax rate
    36 %                                             37 %
 
                                                   
 
                                                       
Supplemental Information:
                                                       
 
                                                       
Depreciation and amortization from continuing operations
                                  $ 153.2       (66.2 )   $ 87.0  
 
                                                 
 
                                                       
Stock compensation expense from continuing operations, excluding acceleration charges
                                                  $ 13.9  
Stock acceleration charges
                                                    0.4  
 
                                                     
Total stock compensation expense from continuing operations
                                                  $ 14.3  
 
                                                     
 
*   Amounts may not sum due to rounding.
See accompanying notes.

9


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                                         
    GAAP     M&A                                     Non-GAAP  
    Nine Months     Restructuring,             Acquisition                     Nine Months  
    Ended     Integration &     Brazil     Deferred             Purchase     Ended  
    September 30, 2010     Recapitalization     Joint     Revenue             Price     September 30, 2010  
    (Unaudited)     Costs (1)     Venture (2)     Adjustments (3)     Subtotal     Amortization (4)     (Unaudited)  
Processing and services revenue
  $ 3,873.2     $     $ (83.3 )   $ 17.4     $ 3,807.3     $     $ 3,807.3  
Cost of revenues
    2,680.9                         2,680.9       (197.2 )     2,483.7  
 
                                         
Gross profit
    1,192.3             (83.3 )     17.4       1,126.4       197.2       1,323.6  
 
                                         
 
                                                       
Selling, general and administrative
    489.8       (91.5 )                 398.3             398.3  
Impairment charges
    154.9             (154.9 )                        
 
                                         
Operating income
    547.6       91.5       71.6       17.4       728.1       197.2       925.3  
 
                                         
 
                                                       
Other income (expense):
                                                       
Interest income (expense), net
    (108.4 )                       (108.4 )           (108.4 )
Other income (expense), net
          19.5       (19.4 )           0.1             0.1  
 
                                         
Total other income (expense)
    (108.4 )     19.5       (19.4 )           (108.3 )           (108.3 )
 
                                         
 
                                                       
Earnings from continuing operations before income taxes
    439.2       111.0       52.2       17.4       619.8       197.2       817.0  
Provision for income taxes
    161.2       41.0       19.3       6.5       228.0       73.0       301.0  
 
                                         
 
                                                       
Earnings from continuing operations, net of tax
    278.0       70.0       32.9       10.9       391.8       124.2       516.0  
Earnings (losses) from discontinued operations, net of tax (5)
    (32.4 )                       (32.4 )           (32.4 )
 
                                         
Net earnings
    245.6       70.0       32.9       10.9       359.4       124.2       483.6  
Net (earnings) loss attributable to noncontrolling interest
    48.3             (50.1 )           (1.8 )           (1.8 )
 
                                         
 
                                                       
Net earnings attributable to FIS common stockholders
  $ 293.9     $ 70.0     $ (17.2 )   $ 10.9     $ 357.6     $ 124.2     $ 481.8  
 
                                         
 
                                                       
Amounts attributable to FIS common stockholders
                                                       
Earnings from continuing operations, net of tax
  $ 326.3     $ 70.0     $ (17.2 )   $ 10.9     $ 390.0     $ 124.2     $ 514.2  
Earnings (losses) from discontinued operations, net of tax
    (32.4 )                       (32.4 )           (32.4 )
 
                                         
Net earnings attributable to FIS common stockholders
  $ 293.9     $ 70.0     $ (17.2 )   $ 10.9     $ 357.6     $ 124.2     $ 481.8  
 
                                         
 
                                                       
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.89     $ 0.19     $ (0.05 )   $ 0.03     $ 1.06     $ 0.34     $ 1.40  
 
                                         
Weighted average shares outstanding — diluted
    367.7       367.7       367.7       367.7       367.7       367.7       367.7  
 
                                         
 
                                                       
Effective tax rate
    37 %                                             37 %
 
                                                   
 
                                                       
Supplemental Information:
                                                       
 
                                                       
Depreciation and amortization from continuing operations
                                  $ 455.1       (197.2 )   $ 257.9  
 
                                                 
 
                                                       
Stock compensation expense from continuing operations, excluding acceleration charges
                                                  $ 34.9  
Stock acceleration charges
                                                    5.8  
 
                                                     
Total stock compensation expense from continuing operations
                                                  $ 40.7  
 
                                                     
 
*   Amounts may not sum due to rounding.
See accompanying notes.

10


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                         
    GAAP     M&A                     Non-GAAP  
    Three Months     Restructuring                     Three Months  
    Ended     And             Purchase     Ended  
    September 30, 2009     Integration             Price     September 30, 2009  
    (Unaudited)     Costs (1)     Subtotal     Amortization (4)     (Unaudited)  
Processing and services revenue
  $ 828.7     $     $ 828.7     $     $ 828.7  
Cost of revenues
    605.4             605.4       (28.9 )     576.5  
 
                             
Gross profit
    223.3             223.3       28.9       252.2  
 
                             
 
                                       
Selling, general and administrative
    89.4       (5.3 )     84.1             84.1  
 
                             
 
                                       
Operating income
    133.9       5.3       139.2       28.9       168.1  
 
                             
 
                                       
Other income (expense):
                                       
Interest income (expense), net
    (31.8 )           (31.8 )           (31.8 )
Other income, net
    1.4             1.4             1.4  
 
                             
Total other income (expense)
    (30.4 )           (30.4 )           (30.4 )
 
                             
 
                                       
Earnings from continuing operations before income taxes
    103.5       5.3       108.8       28.9       137.7  
Provision for income taxes
    35.5       1.8       37.3       9.8       47.1  
 
                             
 
                                       
Earnings from continuing operations, net of tax
    68.0       3.5       71.5       19.1       90.6  
Earnings (losses) from discontinued operations, net of tax (5)
    1.0             1.0             1.0  
 
                             
Net earnings
    69.0       3.5       72.5       19.1       91.6  
Net (earnings) loss attributable to noncontrolling interest
    (1.4 )           (1.4 )           (1.4 )
 
                             
 
                                       
Net earnings attributable to FIS common stockholders
  $ 67.6     $ 3.5     $ 71.1     $ 19.1     $ 90.2  
 
                             
 
                                       
Amounts attributable to FIS common stockholders
                                       
Earnings from continuing operations, net of tax
  $ 66.6     $ 3.5     $ 70.1     $ 19.1     $ 89.2  
Earnings (losses) from discontinued operations, net of tax
    1.0             1.0             1.0  
 
                             
Net earnings attributable to FIS common stockholders
  $ 67.6     $ 3.5     $ 71.1     $ 19.1     $ 90.2  
 
                             
 
                                       
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.34     $ 0.02     $ 0.36     $ 0.10     $ 0.46  
 
                             
Weighted average shares outstanding — diluted
    194.6       194.6       194.6       194.6       194.6  
 
                             
 
                                       
Effective tax rate
    34 %                             34 %
 
                                   
 
                                       
Supplemental Information:
                                       
 
                                       
Depreciation and amortization from continuing operations
                  $ 91.9     $ (28.9 )   $ 63.0  
 
                                 
 
                                       
Stock compensation expense from continuing operations, excluding acceleration charges
                                  $ 9.0  
Stock acceleration charges
                                     
 
                                     
Total stock compensation expense from continuing operations
                                  $ 9.0  
 
                                     
 
*   Amounts may not sum due to rounding.
See accompanying notes.
GAAP results include Metavante’s operating results in the consolidated results of FIS beginning October 1, 2009 on a prospective basis.

11


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                         
    GAAP     M&A                     Non-GAAP  
    Nine months     Restructuring                     Nine months  
    Ended     And             Purchase     Ended  
    September 30, 2009     Integration             Price     September 30, 2009  
    (Unaudited)     Costs (1)     Subtotal     Amortization (4)     (Unaudited)  
 
                                       
Processing and services revenue
  $ 2,428.1     $     $ 2,428.1     $     $ 2,428.1  
Cost of revenues
    1,822.2             1,822.2       (88.0 )     1,734.2  
 
                             
Gross profit
    605.9             605.9       88.0       693.9  
 
                             
 
                                       
Selling, general and administrative
    275.7       (14.8 )     260.9             260.9  
 
                             
 
                                       
Operating income
    330.2       14.8       345.0       88.0       433.0  
 
                             
 
                                       
Other income (expense):
                                       
Interest income (expense), net
    (94.3 )           (94.3 )           (94.3 )
Other income, net
    8.0             8.0             8.0  
 
                             
Total other income (expense)
    (86.3 )           (86.3 )           (86.3 )
 
                             
 
                                       
Earnings from continuing operations before income taxes
    243.9       14.8       258.7       88.0       346.7  
Provision for income taxes
    83.8       5.1       88.9       30.1       119.0  
 
                             
 
                                       
Earnings from continuing operations, net of tax
    160.1       9.7       169.8       57.9       227.7  
Earnings (losses) from discontinued operations, net of tax (5)
    1.2             1.2             1.2  
 
                             
Net earnings
    161.3       9.7       171.0       57.9       228.9  
Net (earnings) loss attributable to noncontrolling interest
    (1.5 )           (1.5 )           (1.5 )
 
                             
 
                                       
Net earnings attributable to FIS common stockholders
  $ 159.8     $ 9.7     $ 169.5     $ 57.9     $ 227.4  
 
                             
 
                                       
Amounts attributable to FIS common stockholders
                                       
Earnings from continuing operations, net of tax
  $ 158.6     $ 9.7     $ 168.3     $ 57.9     $ 226.2  
Earnings (losses) from discontinued operations, net of tax
    1.2             1.2             1.2  
 
                             
Net earnings attributable to FIS common stockholders
  $ 159.8     $ 9.7     $ 169.5     $ 57.9     $ 227.4  
 
                             
 
                                       
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.82     $ 0.05     $ 0.87     $ 0.30     $ 1.17  
 
                             
Weighted average shares outstanding — diluted
    193.0       193.0       193.0       193.0       193.0  
 
                             
 
                                       
Effective tax rate
    34 %                             34 %
 
                                   
 
                                       
Supplemental Information:
                                       
 
                                       
Depreciation and amortization from continuing operations
                  $ 273.8     $ (88.0 )   $ 185.8  
 
                                 
 
                                       
Stock compensation expense from continuing operations, excluding acceleration charges
                                  $ 27.3  
Stock acceleration charges
                                     
 
                                     
Total stock compensation expense from continuing operations
                                  $ 27.3  
 
                                     
 
*   Amounts may not sum due to rounding.
See accompanying notes.
GAAP results include Metavante’s operating results in the consolidated results of FIS beginning October 1, 2009 on a prospective basis.

12


 

Notes to Unaudited — Supplemental GAAP to Non-GAAP Reconciliation for the Three and Nine
Months ended September 30, 2010 and 2009
The adjustments are as follows:
     
(1)   This column represents (1) charges for restructuring and integration costs relating to merger and acquisition activities and (2) costs associated with the 2010 leveraged recapitalization plan. For the three and nine months ended September 30, 2010 and 2009, the adjustments to “Selling, general and administrative” expenses primarily represent incremental transaction costs incurred by the Company related to the acquisition of Metavante Technologies, Inc., completed on October 1, 2009. The adjustments to “Other income (expense), net” represent certain costs associated with the leveraged recapitalization, the write-off of certain previously deferred debt issue costs associated with the amended and extended debt facility and the write-off of unamortized discount associated with the portion of the Metavante debt that was paid with the proceeds thereof.
 
(2)   In August 2010, all documents required to affect a mutually agreeable exit for Banco Santander from the Brazil card processing Joint Venture were executed. Banco Santander paid a termination fee of approximately $83.3 million directly to FIS, which is included in Processing and Services Revenues for the three months ended September 30, 2010. Notes payable representing additional consideration which was to be paid to the banks upon migration of their card portfolios were forgiven and reduced by $19.4 million, representing Banco Santander’s proportionate interest therein. Certain capitalized software development costs exclusively for use in processing Banco Santander card activity with a net unamortized balance of $14.6 million were written off. In addition, $140.3 million, representing the portion of the unamortized contract intangible asset recorded at the initiation of the Brazilian Venture that was attributable to Banco Santander was deemed impaired as a result of Santander’s exit and charged to amortization expense.
 
(3)   This column represents the impact of the purchase accounting adjustment to reduce Metavante’s deferred revenues to estimated fair value, determined as fulfillment cost plus a normal profit margin. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by Metavante but was not recognized due to GAAP purchase accounting requirements.
 
(4)   This column represents purchase price amortization expense on intangibles assets acquired through various Company acquisitions.
 
(5)   During the 2010 and 2009 periods certain operations are classified as discontinued operations. Reporting for discontinued operations classifies revenues and expenses as one line item net of tax in the statement of operations. During the third quarter 2010, we determined that we will pursue strategic alternatives for our item processing business in Brazil. In January 2010, we closed on the sale of ClearPar. The table below outlines the components of discontinued operations for the periods presented, net of tax:
                                 
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2010     2009     2010     2009  
Impairment charges — Brazil item processing
  $ (16.6 )   $     $ (16.6 )   $  
Brazil item processing operations
    (7.3 )     (1.2 )     (14.5 )     (3.2 )
ClearPar and other
          2.2       (1.3 )     4.4  
 
                       
Total discontinued operations
  $ (23.9 )   $ 1.0     $ (32.4 )   $ 1.2  
 
                       

13