Filing Summary: Fidelity National Information Services, Inc. (8-K)
Business Context and Reporting Period
This Form 8-K was filed on March 6, 2018, by Fidelity National Information Services, Inc. (FIS). The report addresses the retrospective application of a new revenue accounting standard, ASU No. 2014-09 ("Revenue from Contracts with Customers" or Topic 606), effective January 1, 2018. The filing serves to recast prior period financial statements to align with this new standard.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it announces the methodology for recasting historical data. The company states it will report comparative results under the new standard in its upcoming Form 10-Q for the quarter ended March 31, 2018. Supplemental financial data and non-GAAP reconciliations are referenced in Exhibit 99.1 but are not detailed within the body of this text.
Material Changes Versus Prior Period
- Accounting Standard Change: The primary material change is the adoption of ASU 2014-09 using the full retrospective method with certain practical expedients.
- Recognition Methodology: Revenue recognition now focuses on the transfer of control rather than the transfer of risk and rewards, implementing a five-step process.
- Historical Recasting: Prior period financial statements and schedules have been recast to reflect the new standard, ensuring comparability with future reporting periods.
Guidance, Outlook, and Management Commentary
Management utilizes non-GAAP financial measures based on the recast results to assess performance and believes these measures help investors understand underlying business fundamentals. The company cautions that non-GAAP measures should be considered in context with GAAP results and may differ from similarly titled measures used by other companies. No specific forward-looking guidance or risk factors regarding future operations were detailed in this specific text, other than the transition to the new accounting standard.
Investor Verification Checklist
- Review Exhibit 99.1 for the specific supplemental financial data and recasted historical figures.
- Examine the reconciliation between GAAP and non-GAAP measures provided in the exhibit to understand the impact of the accounting change.
- Monitor the upcoming Form 10-Q for the quarter ended March 31, 2018, for the first official comparative results under the new standard.
- Verify the specific practical expedients applied during the retrospective adoption of ASU 2014-09.