Exhibit 99.1
Segment Realignment
Effective for the quarter ending
March 31, 2024, Fiserv, Inc. (the “Company”) is realigning its reportable segments to correspond with changes in its business designed to further enhance operational performance in the delivery of its integrated portfolio of products
and solutions to its financial institution clients (the “Segment Realignment”). As a result of the Segment Realignment, the Company is realigning its previous three reportable segments to form two new reportable segments, which are
Merchant Solutions and Financial Solutions.
Supplemental Financial Information
The Company is providing updated historical financial information in the attached schedules to enhance its shareholders’ ability to evaluate the
Company’s historical financial information under the Segment Realignment. The purpose of the attached schedules is to recalculate certain non-GAAP measures of the Company’s historical financial
information under the Segment Realignment for each of the quarters in 2022 and 2023 as well as the full year 2022 and 2023. The schedules have been prepared by making certain adjustments to the Company’s historical financial information
determined in accordance with generally accepted accounting principles (“GAAP”). The adjustments are discussed in the notes to the schedules.
Use of Non-GAAP Financial Measures
The Company supplements its reporting of financial information determined in accordance with GAAP, such as revenue, operating income and operating margin, with
non-GAAP financial measures, such as “adjusted revenue,” “organic revenue,” “organic revenue growth,” “adjusted operating income,” and “adjusted operating
margin.” Management believes that adjustments for certain non-cash or other items and the exclusion of certain pass-through revenue and expenses should enhance shareholders’ ability to evaluate the
Company’s performance, as such measures provide additional insights into the factors and trends affecting its business. Therefore, the Company excludes these items from its GAAP financial measures to calculate these non-GAAP measures. The corresponding reconciliations of these non-GAAP financial measures to the most comparable GAAP measures are included in the attached schedules.
Examples of non-cash or other items may include, but are not limited to,
non-cash intangible asset amortization expense associated with acquisitions; non-cash impairment charges; severance costs; merger and integration costs; gains or losses
from the sale of businesses, certain assets or investments; certain discrete tax benefits and expenses; and non-cash deferred revenue adjustments relating to the 2019 acquisition of First Data Corporation. The
Company excludes these items to more clearly focus on the factors management believes are pertinent to the Company’s operations, and management uses this information to make operating decisions, including the allocation of resources to the
Company’s various businesses.
The Company adjusts its non-GAAP results to exclude amortization of
acquisition-related intangible assets as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of acquisition-related intangible asset
amortization supplements GAAP information with a measure that can be used to assess the comparability of operating performance. Although the Company excludes amortization from acquisition-related intangible assets from its non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
Management believes organic revenue growth is useful because it presents adjusted revenue growth excluding the impact of foreign currency fluctuations,
acquisitions, dispositions and the Company’s postage reimbursements and including deferred revenue purchase accounting adjustments. Management believes this supplemental information enhances shareholders’ ability to evaluate and understand
the Company’s core business performance.
These non-GAAP financial measures may not be comparable to
similarly titled measures reported by other companies and should be considered in addition to, and not as a substitute for, revenue, operating income and operating margin determined in accordance with GAAP.
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