8-KEarnings & ResultsExhibits & Filings

Fidelity National Information Services, Inc. 8-K Report, Financial Results (Jul 3, 2012)

Filed July 3, 2012For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) announced on July 3, 2012, that it has entered into a definitive agreement to sell its Healthcare Benefit Solutions business to Lightyear Capital. This strategic divestiture is expected to be completed by the end of the third quarter of 2012, pending regulatory approvals and customary closing conditions. As a result, the Healthcare Benefit Solutions business will be treated as a discontinued operation for all reporting periods, beginning with the second quarter of 2012, in accordance with U.S. GAAP. To provide investors with a clearer understanding of the company's ongoing operational performance, FIS is furnishing supplemental financial schedules. These schedules, included in Exhibit 99.1, recast historical operating results for various periods in 2011 and 2010, as well as the first quarter of 2012, to reflect the Healthcare Benefit Solutions business as a discontinued operation. The filing also highlights management's use of non-GAAP measures for internal planning and performance evaluation, which management believes are relevant and useful for investors, though they should be considered alongside GAAP measures.

Key Highlights

  • 1FIS is selling its Healthcare Benefit Solutions business to Lightyear Capital.
  • 2The sale is expected to close by the end of Q3 2012, subject to approvals.
  • 3The Healthcare Benefit Solutions business will be classified as a discontinued operation going forward.
  • 4FIS is providing recast historical financial data to show the impact of discontinued operations.
  • 5The recast data aims to enhance investor understanding of core operating performance.
  • 6Management uses non-GAAP financial measures for planning and performance evaluation, which are also being shared with investors.

Frequently Asked Questions

The filing states that FIS management desires to furnish timely information to investors to improve the understanding of the Company's operating performance. The sale of the Healthcare Benefit Solutions business is a strategic decision that will allow FIS to present its ongoing operating performance more clearly by classifying this segment as a discontinued operation.

When a business segment is classified as a discontinued operation, its revenues, expenses, and profit or loss are reported separately from the company's continuing operations on the income statement. This separation helps investors focus on the performance of the company's core, ongoing businesses.

The supplemental financial schedules are provided to recast historical financial results (2010, 2011, and Q1 2012) in a manner consistent with how FIS will report results beginning in Q2 2012. This means they show the Healthcare Benefit Solutions business as a discontinued operation, allowing for a more accurate comparison of historical performance with future, post-divestiture results.

Non-GAAP measures are financial metrics that are not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). FIS management uses these measures for internal planning, budgeting, and evaluating operating performance, believing they provide relevant and useful information for investors to assess business performance against competitors. However, investors are cautioned that these should not replace GAAP measures.