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SEC Filings

425
FIDELITY NATIONAL INFORMATION SERVICES, INC. filed this Form 425 on 05/13/2019
Entire Document
 


Worldpay, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

Preferred Stock

Under the Company’s amended and restated certificate of incorporation, the Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.00001 per share. As of December 31, 2018, there was no preferred stock outstanding.

Dividend Restrictions

The Company does not intend to pay cash dividends on its Class A common stock in the foreseeable future. Worldpay, Inc. is a holding company that does not conduct any business operations of its own. As a result, Worldpay, Inc.’s ability to pay cash dividends on its common stock, if any, is dependent upon cash dividends and distributions and other transfers from Worldpay Holding. The amounts available to Worldpay, Inc. to pay cash dividends are subject to the covenants and distribution restrictions in its subsidiaries’ loan agreements. As a result of the restrictions on distributions from Worldpay Holding and its subsidiaries, essentially all of the Company’s consolidated net assets are held at the subsidiary level and are restricted as of December 31, 2018.

Controlling and Non-controlling Interests

The Company accounts for non-controlling interests in accordance with ASC 810, Consolidation. Worldpay, Inc. owns a controlling interest in Worldpay Holding, and therefore consolidates the financial results of Worldpay Holding and its subsidiaries and records non-controlling interest for the economic interests in Worldpay Holding held by Fifth Third, which primarily represents Fifth Third’s minority share of net income or loss of equity in Worldpay Holding. The Exchange Agreement entered into prior to the IPO provides for a 1 to 1 ratio between the units of Worldpay Holding and the common stock of Worldpay, Inc. Net income attributable to non-controlling interests does not include expenses incurred directly by Worldpay, Inc., including income tax expense attributable to Worldpay, Inc. Non-controlling interests are presented as a component of equity in the accompanying Consolidated Statements of Financial Position.

The Company also records non-controlling interest relating to its 51% ownership in a joint venture.

As of December 31, 2018, Worldpay, Inc. and Fifth Third owned interests in Worldpay Holding of 96.70% and 3.30%, respectively. Changes in units and related ownership interest in Worldpay Holding are summarized as follows:

 

     Worldpay, Inc.     Fifth Third     Total  

As of December 31, 2016

     161,134,831       35,042,826       196,177,657  

% of ownership

     82.14     17.86  

Fifth Third exchange of Worldpay Holding units for shares of Class A common stock

     19,790,000       (19,790,000     —    

Purchase and cancellation of Class A common stock

     (19,790,000     —         (19,790,000

Equity plan activity(1)

     1,461,150       —         1,461,150  
  

 

 

   

 

 

   

 

 

 

As of December 31, 2017

     162,595,981       15,252,826       177,848,807  
  

 

 

   

 

 

   

 

 

 

% of ownership

     91.42     8.58  

Shares issued for acquisition

     133,567,146       —         133,567,146  

Fifth Third exchange of Worldpay Holding units for shares of Class A common stock

     5,000,000       (5,000,000     —    

Share repurchases

     (1,791,967     —         (1,791,967

Equity plan activity(1)

     1,083,430       —         1,083,430  
  

 

 

   

 

 

   

 

 

 

As of December 31, 2018

     300,454,590       10,252,826       310,707,416  
  

 

 

   

 

 

   

 

 

 

% of ownership

     96.70     3.30  

 

(1) 

Includes stock issued under the equity plans less Class A common stock withheld to satisfy employee tax withholding obligations upon vesting or exercise of employee equity awards and forfeitures of restricted Class A common stock awards.

The Company issued 134.4 million shares of Class A common stock and acquired approximately 833,000 treasury shares held in a trust for reissuance, in connection with its acquisition of 100% of the issued and outstanding shares of Legacy Worldpay on January 16, 2018.

 

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