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SEC Filings

425
FIDELITY NATIONAL INFORMATION SERVICES, INC. filed this Form 425 on 05/13/2019
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Other Tax Adjustments

In addition to the adjustment described above, income tax expense is also adjusted for the cash tax benefits resulting from certain tax attributes, primarily the amortization of tax intangible assets resulting from or acquired with our acquisitions, the tax basis step up associated with our separation from Fifth Third and the purchase or exchange of units of Worldpay Holding, net of payment obligations under tax receivable agreements (“TRAs”). The estimate of the cash tax benefits is based on the consistent and highly predictable realization of the underlying tax attributes.

The following table provides a schedule of the tax adjustments discussed above which are reflected in the adjusted net income table below (in millions):

 

     Year Ended December 31,  
     2018 (d)      2017  

TRA Tax Benefits (a)

   $ 9.2      $ 5.4  

Acquired Tax Benefits (b)

     89.8        124.9  
  

 

 

    

 

 

 

Adjusted Tax Benefits (c)

   $ 99.0      $ 130.3  
  

 

 

    

 

 

 

 

(a)

Represents the 15% benefit that we retain for the shared tax benefits related to the TRAs.

(b)

Represents the tax benefits wholly owned by us, acquired through acquisition or termination of TRAs in which we retain 100% of the benefit.

(c)

Represents the net cash tax benefit retained by us from the use of the tax attributes, as reflected in the Tax Adjustments.

(d)

The tax benefits for the year ended December 31, 2018 were impacted by the Tax Reform.

The table below provides a reconciliation of GAAP income before applicable income taxes to the adjusted net income for the years ended December 31, 2018 and 2017 (in millions):

 

     Year Ended December 31,  
     2018      2017  

(Loss) income before applicable income taxes

   $ (8.1    $ 813.7  

Non-GAAP Adjustments:

     

Transition, acquisition and integration costs

     336.7        130.1  

Share-based compensation

     124.8        47.9  

Intangible amortization

     938.4        217.8  

Non-operating expenses (income)

     41.8        (432.8
  

 

 

    

 

 

 

Non-GAAP Adjusted Income Before Applicable Taxes

     1,433.6        776.7  

Less: Tax Adjustments

     

Adjusted tax expense

     184.9        133.8  

JV non-controlling interest

     2.0        1.8  
  

 

 

    

 

 

 

Adjusted Net Income

   $ 1,246.7      $ 641.1  
  

 

 

    

 

 

 

 

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