Business Context and Reporting Period
This Form 8-K was filed by Fidelity National Information Services, Inc. (FIS) on August 1, 2008. The report addresses the completion of the spin-off of Lender Processing Services, Inc. (LPS) on July 2, 2008. While the spin-off occurred after the June 30, 2008 reporting period, GAAP rules prevent LPS from being classified as a discontinued operation in periodic filings until the third quarter of 2008 results are reported.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it serves as a disclosure notice regarding the presentation of financial data. The company is furnishing supplemental schedules (Exhibit 99.1) that recast 2007 quarterly and annual results, as well as the first quarter of 2008, to reflect LPS and other exited operations as discontinued operations. These schedules utilize non-GAAP measures to exclude items management deems not indicative of core operating results.
Material Changes
- Spin-off Completion: FIS completed the separation of LPS on July 2, 2008.
- Accounting Reclassification: Management is voluntarily providing information to treat LPS as a discontinued operation for the 2007 and Q1 2008 periods, despite GAAP restrictions on formal presentation until Q3 2008.
- Reporting Methodology: The filing introduces non-GAAP financial measures to better evaluate operating performance and compare with competitors, excluding certain non-core items.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, specific risk factors, or management commentary on future outlook beyond the explanation of the accounting treatment for the spin-off. The primary purpose is to clarify how historical data will be presented to investors to improve understanding of the company's operating performance post-spin-off. The document explicitly states that the information in Items 2.02 and 9.01 is "furnished" and not "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Review Exhibit 99.1 for the specific recasted financial schedules showing LPS as a discontinued operation.
- Verify the reconciliation between the non-GAAP measures provided and the GAAP financial statements.
- Confirm the impact of the LPS spin-off on the company's future quarterly reporting starting in Q3 2008.
- Note that the supplemental data is not subject to the liabilities of Section 18 of the Exchange Act.