Table	of	Contents

# UNITED	STATES	SECURITIES	AND	EXCHANGE	COMMISSION

# ANNUAL	REPORT	PURSUANT	TO	SECTION	13	OR	15(d)	OF	THE	SECURITIES	EXCHANGE	ACT	OF	1934

# For	the	fiscal	year	ended	December	31,	2016

o TRANSITION	REPORT	PURSUANT	TO	SECTION	13	OR	15(d)	OF	THE	SECURITIES	EXCHANGE	ACT	OF	1934

# For	the	transition	period	from										to

# Fidelity	National	Information	Services,	Inc.

(Exact	name	of	registrant	as	specified	in	its	charter)

Georgia

(State	or	other	jurisdiction	of	incorporation	or	organization)

601	Riverside	Avenue Jacksonville,	Florida

(Address	of	principal	executive	offices)

(I.R.S.	Employer	Identification	No.)

(Zip	Code)

(Registrant's	telephone	number,	including	area	code)

# Securities	registered	pursuant	to	Section	12(b)	of	the	Act:

# Title	of	Each	Class:

Common	Stock,	par	value	$0.01	per	share

# Name	of	Each	Exchange	on	Which	Registered:

New	York	Stock	Exchange

# Securities	registered	pursuant	to	Section	12(g)	of	the	Act:	None

(Title	of	Class)

Indicate	by	check	mark	if	the	registrant	is	a	well-known	seasoned	issuer,	as	defined	in	Rule	405	of	the	Securities	Act.		Yes	x					No	o

Indicate	by	check	mark	if	the	registrant	is	not	required	to	file	reports	pursuant	to	Section	13	or	Section	15(d)	of	the	Act.		Yes	o					No	x

Indicate	by	check	mark	whether	the	registrant	(1)	has	filed	all	reports	required	to	be	filed	by	Section	13	or	15(d)	of	the	Securities	Exchange	Act	of	1934	during	the	preceding 12	months	(or	for	such	shorter	period	that	the	registrant	was	required	to	file	such	reports),	and	(2)	has	been	subject	to	such	filing	requirements	for	the	past	90	days.		Yes	x					No	o Indicate	by	check	mark	whether	the	registrant	has	submitted	electronically	and	posted	on	its	corporate	Web	site,	if	any,	every	Interactive	Data	File	required	to	be	submitted	and posted	pursuant	to	Rule	405	of	Regulation	S-T	(§	232.405	of	this	chapter)	during	the	preceding	12	months	(or	for	such	shorter	period	that	the	registrant	was	required	to	submit	and	post such	files).		Yes	x	No	o

Indicate	by	check	mark	if	disclosure	of	delinquent	filers	pursuant	to	Item	405	of	Regulation	S-K	is	not	contained	herein,	and	will	not	be	contained,	to	the	best	of	registrant's knowledge,	in	definitive	proxy	or	information	statements	incorporated	by	reference	in	Part	III	of	this	Form	10-K	or	any	amendment	to	this	Form	10-K.		x

Indicate	by	check	mark	whether	the	registrant	is	a	large	accelerated	filer,	an	accelerated	filer,	a	non-accelerated	filer,	or	a	smaller	reporting	company.	See	the	definitions	of "large	accelerated	filer,"	"accelerated	filer"	and	"smaller	reporting	company"	in	Rule	12b-2	of	the	Exchange	Act.	(Check	one):

Large	accelerated	filer	x

Accelerated	filer	o

Non-accelerated	filer	o

Smaller	reporting	company	o

(Do	not	check	if	a	smaller	reporting	company)

Indicate	by	check	mark	whether	the	registrant	is	a	shell	company	(as	defined	in	Rule	12b-2	of	the	Exchange	Act)	Yes	o			No	x

As	of	June	30,	2016,	the	last	business	day	of	the	registrant's	most	recently	completed	second	fiscal	quarter,	the	aggregate	market	value	of	the	registrant's	common	stock	held	by nonaffiliates	was	$23,928,436,456	based	on	the	closing	sale	price	of	$73.68	on	that	date	as	reported	by	the	New	York	Stock	Exchange.	For	the	purposes	of	the	foregoing	sentence only,	all	directors	and	executive	officers	of	the	registrant	were	assumed	to	be	affiliates.	The	number	of	shares	outstanding	of	the	registrant's	common	stock,	$0.01	par	value	per	share, was	328,780,510	as	of	January	31,	2017.

The	information	in	Part	III	hereof	is	incorporated	herein	by	reference	to	the	registrant's	Proxy	Statement	on	Schedule	14A	for	the	fiscal	year	ended	 December	31,	2016,	to	be filed	within	120	days	after	the	close	of	the	fiscal	year	that	is	the	subject	of	this	Report.

|  | PART	I |  |
| :--- | :--- | :--- |
| Item\t1. | Business | 2 |
| Item\t1A. | Risk\tFactors | 11 |
| Item\t1B. | Unresolved\tStaff\tComments | 24 |
| Item\t2. | Properties | 24 |
| Item\t3. | Legal\tProceedings | 24 |
| Item\t4. | Mine\tSafety\tDisclosures | 25 |
|  | PART\tII |  |
| Item\t5. | Market\tfor\tRegistrant's\tCommon\tEquity,\tRelated\tStockholder\tMatters\tand\tIssuer\tPurchases\tof\tEquity\tSecurities | 25 |
| Item\t6. | Selected\tFinancial\tData | 27 |
| Item\t7. | Management's\tDiscussion\tand\tAnalysis\tof\tFinancial\tCondition\tand\tResults\tof\tOperations | 30 |
| Item\t7A. | Quantitative\tand\tQualitative\tDisclosure\tAbout\tMarket\tRisks | 44 |
| Item\t8. | Financial\tStatements\tand\tSupplementary\tData | 47 |
| Item\t9. | Changes\tin\tand\tDisagreements\twith\tAccountants\ton\tAccounting\tand\tFinancial\tDisclosure | 88 |
| Item\t9A. | Controls\tand\tProcedures | 88 |
| Item\t9B. | Other\tInformation | 88 |
|  | PART\tIII |  |
| Item\t10. | Directors\tand\tExecutive\tOfficers\tof\tthe\tRegistrant | 88 |
| Item\t11. | Executive\tCompensation | 88 |
| Item\t12. | Security\tOwnership\tof\tCertain\tBeneficial\tOwners\tand\tManagement\tand\tRelated\tStockholder\tMatters | 88 |
| Item\t13. | Certain\tRelationships\tand\tRelated\tTransactions | 88 |
| Item\t14. | Principal\tAccounting\tFees\tand\tServices | 88 |
|  | PART\tIV |  |
| Item\t15. | Exhibits\tand\tFinancial\tStatement\tSchedules | 88 |
| Signatures |  | 98 |

EX-31.2 EX-32.1 EX-32.2 EX-101	INSTANCE	DOCUMENT EX-101	SCHEMA	DOCUMENT EX-101	CALCULATION	LINKBASE	DOCUMENT EX-101	DEFINITION	LINKBASE	DOCUMENT EX-101	LABELS	LINKBASE	DOCUMENT EX-101	PRESENTATION	LINKBASE	DOCUMENT

Unless	stated	otherwise	or	the	context	otherwise	requires,	all	references	to	"FIS,"	"we,"	the	"Company"	or	the	"registrant"	are	to	Fidelity	National	Information Services,	Inc.,	a	Georgia	corporation,	and	its	subsidiaries.

# PART	I

# Overview

FIS	is	a	global	leader	in	financial	services	technology	with	a	focus	on	retail	and	institutional	banking,	payments,	asset	and	wealth	management,	risk	and	compliance, consulting	and	outsourcing	solutions.	Through	the	depth	and	breadth	of	our	solutions	portfolio,	global	capabilities	and	domain	expertise,	FIS	serves	more	than	20,000 clients	in	over	130	countries.	Headquartered	in	Jacksonville,	Florida,	FIS	employs	more	than	55,000	people	worldwide	and	holds	global	leadership	positions	in	payment processing,	financial	software	and	banking	solutions.	Providing	software,	services	and	outsourcing	of	the	technology	that	empowers	the	financial	world,	FIS	is	a	Fortune 500	company	and	is	a	member	of	Standard	&	Poor's	500®	Index.

FIS	is	incorporated	under	the	laws	of	the	State	of	Georgia	as	Fidelity	National	Information	Services,	Inc.	and	our	stock	is	traded	on	the	New	York	Stock	Exchange under	the	trading	symbol	"FIS".

We	have	grown	organically,	as	well	as	through	acquisitions,	which	have	contributed	critical	applications	and	services	that	complement	or	enhance	our	existing offerings,	diversifying	our	revenues	by	customer,	geography	and	service	offering.	These	acquired	offerings	include	integrated	core	banking	and	payment	solutions, mobile	banking	solutions,	item	processing	services,	card	issuer	services,	consulting	services,	risk	management	solutions,	electronic	loan	amendment	applications	and services,	electronic	funds	transfer	("EFT")	services,	merchant	acquiring	services,	and	prepaid/gift	card	processing	for	community	banks,	credit	unions,	and	other financial	institutions.	We	sell	many	of	these	solutions	to	domestic	companies,	as	well	as	to	global	organizations	and	companies	domiciled	both	within	and	outside	of North	America,	where	our	solutions	are	able	to	be	deployed	across	multiple	regions.	Our	strategic	acquisitions	have	enabled	us	to	broaden	our	available	solution	sets, scale	our	operations,	develop	our	global	consulting	expertise,	expand	and	diversify	our	customer	base	and	strengthen	our	competitive	position.

On	November	30,	2015,	FIS	acquired	SunGard	(the	"SunGard	acquisition").	The	SunGard	acquisition	increased	our	existing	portfolio	of	solutions	to	automate	a wide	range	of	complex	business	processes	to	financial	services	institutions	and	corporate	and	government	treasury	departments,	adding	solutions	for	trading,	securities operations,	administering	investment	portfolios,	accounting	for	investment	assets,	and	managing	risk	and	compliance	requirements.

The	combination	of	FIS	and	SunGard	brings	together	complementary	technology	solutions	and	services	to	enable	a	much	broader	technology	platform	serving	our existing	and	future	clients.	The	combination	also	enables	greater	economies	of	scale,	which	has	contributed	to	improving	operating	income	margins	as	we	integrate operations	across	the	business.	We	expect	this	improvement	to	continue	as	integration	efforts	continue.

# Financial	Information	About	Operating	Segments	and	Geographic	Areas

In	2015,	FIS	finalized	a	reorganization	and	began	reporting	its	financial	performance	based	on	three	segments:	Integrated	Financial	Solutions	("IFS"),	Global Financial	Solutions	("GFS")	and	Corporate	and	Other.	We	recast	all	previous	periods	to	conform	to	the	new	segment	presentation.	Following	our	November	30,	2015 acquisition	of	SunGard,	the	SunGard	business	was	included	within	the	GFS	segment	as	its	economic	characteristics,	international	business	model,	and	various	other factors	largely	aligned	with	those	of	our	GFS	segment.	As	we	further	integrated	the	acquired	SunGard	businesses	through	March	31,	2016,	we	have	reclassified	certain SunGard	businesses	(corporate	liquidity	and	wealth	management)	that	are	oriented	more	to	the	retail	banking	and	payments	activities	of	IFS	into	that	segment.	Certain other	businesses	from	both	SunGard	(the	public	sector	and	education	businesses,	which	were	divested	in	February	2017),	and	legacy	FIS	(global	commercial	services and	retail	check	processing)	were	reclassified	to	the	Corporate	and	Other	segment,	as	have	SunGard	administrative	expenses.	Prior	periods	have	also	been	reclassified	to conform	to	the	current	segment	presentation.	For	information	about	our	revenues	and	assets	by	geographic	area	see	Notes	2(n)	and	19	of	the	Notes	to	Consolidated Financial	Statements.

# Competitive	Strengths

We	believe	our	competitive	strengths	include	the	following:

•Brand	-	FIS	has	built	a	global	brand	known	for	innovation	and	thought	leadership	in	the	financial	services	sector.	Our	Capco	subsidiary	extends	the	strong brand	through	consulting	and	technology	services	in	this	sector,	and	the	completion	of	the	SunGard	acquisition	has	helped	us	expand	our	brand	through	the relationships	SunGard	built	across	14,000	customers	in	more	than	100	countries.

•Global	Distribution	and	Scale	-	Our	worldwide	presence,	array	of	solution	offerings,	customer	breadth,	established	infrastructure	and	employee	depth	enable	us to	leverage	our	client	relationships	and	global	scale	to	drive	revenue	growth	and	operating	efficiency.			We	are	a	global	leader	in	the	markets	we	serve, supported	by	a	large,	knowledgeable	talent	pool	of	employees	around	the	world.

•Extensive	Domain	Expertise	and	Extended	Portfolio	Depth	-	FIS	has	a	significant	number	and	wide	range	of	high-quality	software	applications	and	service offerings	that	have	been	developed	over	many	years	with	substantial	input	from	our	customers.	With	a	business	model	founded	on	software	and	addressing industry	verticals	that	are	largely	complementary	to	ours,	the	SunGard	acquisition	has	allowed	us	to	extend	our	breadth	of	applications	and	service	offerings	to financial	institutions	and	other	customers.	Our	broad	portfolio	of	solutions	includes	a	wide	range	of	flexible	service	arrangements	for	the	deployment	and support	of	our	software,	from	managed	processing	arrangements,	either	at	the	customer's	site	or	at	an	FIS	location,	to	traditional	license	and	maintenance	fee approaches.	This	broad	solution	set	allows	us	to	bundle	tailored	or	integrated	services	to	compete	effectively.	In	addition,	FIS	is	able	to	use	the	modular	nature of	our	software	applications	and	our	ability	to	integrate	many	of	our	services	with	the	services	of	others	to	provide	customized	solutions	that	respond	to individualized	customer	needs.	We	understand	the	needs	of	our	customers	and	have	developed	and	acquired	innovative	solutions	that	can	give	them	a competitive	advantage	and	reduce	their	operating	costs.

•Excellent	Relationship	with	Customers	-	A	significant	percentage	of	FIS'	business	with	our	customers	relates	to	applications	and	services	provided	under	multi- year,	recurring	contracts.	The	nature	of	these	relationships	allows	us	to	develop	close	partnerships	with	these	customers,	resulting	in	high	client	retention	rates. As	the	breadth	of	FIS'	service	offerings	has	expanded,	we	have	found	that	our	access	to	key	customer	personnel	is	increasing,	presenting	greater	opportunities for	cross-selling	and	providing	integrated,	total	solutions	to	our	customers.

# Strategy

Our	mission	is	to	deliver	superior	solutions	and	services	to	our	clients,	which	will	result	in	sustained	revenue	and	earnings	growth	for	our	shareholders.	Our	strategy to	achieve	this	goal	has	been	and	continues	to	be	built	on	the	following	pillars:

•Build,	Buy,	or	Partner	to	Add	Solutions	to	Cross-Sell		-	We	continue	to	invest	in	growth	through	internal	product	development,	as	well	as	through	acquisitions and	equity	investments	that	complement	and	extend	our	existing	solutions	and	capabilities,	providing	us	with	additional	solutions	to	cross-sell.	The	SunGard acquisition	added	a	significant	incremental	solution	set	to	our	portfolio	of	offerings.	We	also	partner	from	time	to	time	with	other	entities	to	provide comprehensive	offerings	to	our	prospects	and	customers.	By	investing	in	solution	innovation	and	integration,	we	continue	to	expand	our	value	proposition	to our	prospects	and	clients.

•Support	Our	Clients	Through	Innovation	-	Changing	market	dynamics,	particularly	in	the	areas	of	information	security,	regulation	and	innovation,	are transforming	the	way	our	clients	operate,	which	is	driving	incremental	demand	for	our	leveraged	solutions,	consulting	expertise,	and	services	around	our intellectual	property.	As	prospects	and	customers	evaluate	technology,	business	process	changes	and	vendor	risks,	our	depth	of	services	capabilities	enables	us to	become	involved	earlier	in	their	planning	and	design	process	and	assist	them	as	they	manage	through	these	changes.

•Continually	Improve	to	Drive	Margin	Expansion		-	We	strive	to	optimize	our	performance	through	investments	in	infrastructure	enhancements,	our	workforce and	other	measures	that	are	designed	to	create	organic	revenue	and	margin	expansion.	With	the	SunGard	acquisition	and	the	resulting	extended	economies	of scale,	we	are	pursuing	further	margin	expansion	as	we	integrate	our	operations	globally.

•Expand	Client	Relationships	-	The	overall	market	we	serve	continues	to	gravitate	beyond	single-product	purchases	to	multi-solution	partnerships.	As	the market	dynamics	shift,	we	expect	our	clients	and	prospects	to	rely	more	on	our	multidimensional	service	offerings.	Our	leveraged	solutions	and	processing expertise	can	produce	meaningful	value	and	cost	savings	for	our	clients	through	more	efficient	operating	processes,	improved	service	quality	and	convenience

for	our	clients'	customers.		The	complementary	solution	set	acquired	from	SunGard	helps	to	expand	these	relationships.

•Build	Global	Diversification	-	We	continue	to	deploy	resources	in	global	markets	where	we	expect	to	achieve	meaningful	scale.	The	SunGard	acquisition	added significant	customers,	resources	and	solutions	globally.

# Revenues	by	Segment

The	table	below	summarizes	our	revenues	by	reporting	segment	(in	millions):

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| IFS | $4,566 | $3,846 | $3,679 |
| GFS | 4,250 | 2,360 | 2,198 |
| Corporate\t&\tOther | 425 | 390 | 536 |
| Total\tConsolidated\tRevenues | $9,241 | $6,596 | $6,413 |

# Integrated	Financial	Solutions	("IFS")

The	IFS	segment	is	focused	primarily	on	serving	the	North	American	regional	and	community	bank	and	savings	institutions	market	for	transaction	and	account processing,	payment	solutions,	channel	solutions,	lending	and	wealth	management	solutions,	digital	channels,	risk	and	compliance	solutions,	and	services,	capitalizing on	the	continuing	trend	to	outsource	these	solutions.	IFS	also	includes	corporate	liquidity	and	wealth	management	solutions	acquired	in	the	SunGard	acquisition.	Clients in	this	segment	include	regional	and	community	banks,	credit	unions	and	commercial	lenders,	as	well	as	government	institutions,	merchants	and	other	commercial organizations.	This	market	is	primarily	served	through	integrated	solutions	and	characterized	by	multi-year	processing	contracts	that	generate	highly	recurring	revenues. The	predictable	nature	of	cash	flows	generated	from	this	segment	provides	opportunities	for	further	investments	in	innovation,	product	integration,	information	and security,	and	compliance	in	a	cost	effective	manner.

# Our	solutions	in	this	segment	include:

•Core	Processing	and	Ancillary	Applications.		Our	core	processing	software	applications	are	designed	to	run	banking	processes	for	our	financial	institution clients,	including	deposit	and	lending	systems,	customer	management,	and	other	central	management	systems,	serving	as	the	system	of	record	for	processed activity.	Our	diverse	selection	of	market-focused	core	systems	enables	FIS	to	compete	effectively	in	a	wide	range	of	markets.	We	also	offer	a	number	of services	that	are	ancillary	to	the	primary	applications	listed	above,	including	branch	automation,	back	office	support	systems	and	compliance	support.

•Digital	Solutions,	Including	Internet,	Mobile	and	eBanking.		Our	comprehensive	suite	of	retail	delivery	applications	enables	financial	institutions	to	integrate and	streamline	customer-facing	operations	and	back-office	processes,	thereby	improving	customer	interaction	across	all	channels	(e.g.,	branch	offices,	Internet, ATM,	Mobile,	call	centers).	FIS'	focus	on	consumer	access	has	driven	significant	market	innovation	in	this	area,	with	multi-channel	and	multi-host	solutions and	a	strategy	that	provides	tight	integration	of	services	and	a	seamless	customer	experience.	FIS	is	a	leader	in	mobile	banking	solutions	and	electronic	banking enabling	clients	to	manage	banking	and	payments	through	the	Internet,	mobile	devices,	accounting	software	and	telephone.	Our	corporate	electronic	banking solutions	provide	commercial	treasury	capabilities	including	cash	management	services	and	multi-bank	collection	and	disbursement	services	that	address	the specialized	needs	of	corporate	clients.	FIS	systems	provide	full	accounting	and	reconciliation	for	such	transactions,	serving	also	as	the	system	of	record.

•Fraud,	Risk	Management	and	Compliance	Solutions.		Our	decision	solutions	offer	a	spectrum	of	options	that	cover	the	account	lifecycle	from	helping	to identify	qualified	account	applicants	to	managing	existing	customer	accounts	and	fraud.	Our	applications	include	know-your-customer,	new	account decisioning	and	opening,	account	and	transaction	management,	fraud	management	and	collections.	Our	risk	management	services	use	our	proprietary	risk management	models	and	data	sources	to	assist	in	detecting	fraud	and	assessing	the	risk	of	opening	a	new	account.	Our	systems	use	a	combination	of	advanced authentication	procedures,	predictive	analytics,	artificial	intelligence	modeling	and	proprietary	and	shared	databases	to	assess	and	detect	fraud	risk	for	deposit transactions	for	financial	institutions.	We

also	provide	outsourced	risk	management	and	compliance	solutions	that	are	configurable	to	a	client's	regulatory	and	risk	management	requirements.

•Electronic	Funds	Transfer	and	Network	Services.		Our	electronic	funds	transfer	and	debit	card	processing	businesses	offer	settlement	and	card	management solutions	for	financial	institution	card	issuers.	We	provide	traditional	ATM-based	debit	network	access	through	NYCE	and	emerging	real-time	payment alternatives.	NYCE	connects	millions	of	cards	and	point-of-sale	locations	nationwide,	providing	consumers	with	secure,	real-time	access	to	their	money.	Also through	NYCE,	clients	such	as	financial	institutions,	retailers	and	independent	ATM	operators	can	capitalize	on	the	efficiency,	consumer	convenience	and security	of	electronic	real-time	payments,	real-time	account-to-account	transfers,	and	strategic	alliances	such	as	surcharge-free	ATM	network	arrangements.

•Card	and	Retail	Solutions.		Approximately	5,900	financial	institutions	use	a	combination	of	our	technology	and/or	services	to	issue	VISA®,	MasterCard®	or American	Express®	branded	credit	and	debit	cards	or	other	electronic	payment	cards	for	use	by	both	consumer	and	business	accounts.	Card	transactions continue	to	increase	as	a	percentage	of	total	point-of-sale	payments,	which	fuels	continuing	demand	for	card-related	services.	We	offer	Europay,	MasterCard and	VISA	("EMV")	integrated	circuit	cards,	often	referred	to	as	smart	cards	or	chip	cards,	as	well	as	a	variety	of	stored-value	card	types	and	loyalty/reward programs.	Our	integrated	services	range	from	card	production	and	activation	to	processing	to	an	extensive	range	of	fraud	management	services	and	value-added loyalty	programs	designed	to	increase	card	usage	and	fee-based	revenues	for	financial	institutions	and	merchants.	The	majority	of	our	programs	are	full	service, including	most	of	the	operations	and	support	necessary	for	an	issuer	to	operate	a	credit	card	program.	We	do	not	make	credit	decisions	for	our	card	issuing clients.	We	are	also	a	leading	provider	of	prepaid	card	services,	which	include	gift	cards	and	reloadable	cards,	with	end-to-end	solutions	for	development, processing	and	administration	of	stored-value	programs.	Our	closed	loop	gift	card	solutions	and	loyalty	programs	provide	merchants	compelling	solutions	to drive	consumer	loyalty.	In	addition,	our	merchant	processing	service	provides	a	merchant	or	financial	institution	a	comprehensive	solution	to	manage	its merchant	card	activities,	including	point-of-sale	equipment,	transaction	authorization,	draft	capture,	settlement,	charge-back	processing	and	reporting.

•Corporate	Liquidity.	Our	corporate	liquidity	solutions	help	chief	financial	officers	and	treasurers	manage	working	capital	by	increasing	visibility	to	cash, reducing	risk	and	improving	communication	and	response	time	between	a	company's	buyers,	suppliers,	banks	and	other	stakeholders.	Our	end-to-end collaborative	financial	management	framework	helps	bring	together	receivables,	treasury	and	payments	for	a	single	view	of	cash	and	risk,	which	helps	our clients	optimize	business	processes	for	enhanced	liquidity	management.

•Wealth	Management.	We	provide	wealth	management	solutions	that	help	banks,	trust	companies,	brokerage	firms,	insurance	firms,	benefit	administrators	and independent	advisors	acquire,	service	and	grow	their	client	relationships.	We	provide	solutions	for	client	acquisition,	transaction	management,	trust	accounting and	recordkeeping	that	can	be	deployed	as	stand-alone	products	or	as	part	of	an	integrated	wealth	management	platform.

•Item	Processing	and	Output	Services.		Our	item	processing	services	furnish	financial	institutions	with	the	technology	needed	to	capture	data	from	checks, transaction	tickets	and	other	items;	image	and	sort	items;	process	exceptions	through	keying;	and	perform	balancing,	archiving	and	the	production	of statements.	Our	item	processing	services	are	performed	at	one	of	our	multiple	item	processing	centers	located	throughout	the	U.S.	or	on-site	at	client	locations. Our	extensive	solutions	include	distributed	(i.e.,	non-centralized)	data	capture,	mobile	deposit	capture,	check	and	remittance	processing,	fraud	detection,	and document	and	report	management.	Clients	encompass	banks	and	corporations	of	all	sizes,	from	de	novo	banks	to	the	largest	financial	institutions	and corporations.	We	offer	a	number	of	output	services	that	are	ancillary	to	the	primary	solutions	we	provide,	including	print	and	mail	capabilities,	document composition	software	and	solutions,	and	card	personalization	fulfillment	services.	Our	print	and	mail	services	offer	complete	computer	output	solutions	for	the creation,	management	and	delivery	of	print	and	fulfillment	needs.	We	provide	our	card	personalization	fulfillment	services	for	branded	credit	cards	and branded	and	non-branded	debit	and	prepaid	cards.

•Government	Payments	Solutions.		We	provide	comprehensive,	customized	electronic	service	applications	for	government	agencies,	including	Internal	Revenue Service	(IRS)	payment	services,	government	food	stamp	and	nutrition	programs	known	as	Supplemental	Nutrition	Assistance	Program	("SNAP")	and	Women, Infants	and	Children	("WIC").	We	also	facilitate	the	collection	of	state	income	taxes,	real	estate	taxes,	utility	bills,	vehicle	registration	fees,	driver's	license renewal	fees,	parking	tickets,	traffic	citations,	tuition	payments,	court	fees	and	fines,	hunting	and	fishing	license	fees,	as	well	as	various	business	licenses.

•ePayment	Solutions.		We	provide	reliable	and	scalable	bill	publishing	and	bill	consolidation	technology	for	our	clients,	generating	and	facilitating	the	payment of	millions	of	monthly	bills,	servicing	both	billers	and	financial	institution	clients.	Online	bill	payment	functionality	includes	credit	and	debit	card-based expedited	payments.	Our	end-to-end	presentment	and	payment	solution	provides	an	all-in-one	solution	to	meet	billers'	needs	for	the	distribution	and	collection of	bills	and	other	customer	documents.	FIS	also	provides	Automated	Clearing	House	("ACH")	processing.

# Global	Financial	Solutions	("GFS")

The	GFS	segment	is	focused	on	serving	the	largest	global	financial	institutions	and/or	international	financial	institutions	with	a	broad	array	of	capital	markets	and asset	management	and	insurance	solutions,	as	well	as	banking	and	payments	solutions	and	consulting	and	transformation	services.

GFS	clients	include	the	largest	global	financial	institutions,	including	those	headquartered	in	the	United	States,	as	well	as	all	international	financial	institutions	we serve	as	clients	in	more	than	130	countries	around	the	world.	These	institutions	face	unique	business	and	regulatory	challenges	and	account	for	the	majority	of	financial institution	information	technology	spend	globally.	The	purchasing	patterns	of	GFS	clients	vary	from	those	of	IFS	clients	who	typically	purchase	solutions	on	an outsourced	basis.	GFS	clients	purchase	our	solutions	and	services	in	various	ways	including	licensing	and	managing	technology	"in-house",	using	consulting	and	third party	service	providers	as	well	as	fully	outsourced	end-to-end	solutions.	We	have	long-established	relationships	with	many	of	these	financial	institutions	that	generate significant	recurring	revenue.	GFS	clients	now	also	include	asset	managers,	buy-	and	sell-side	securities	and	trading	firms,	insurers	and	private	equity	firms	due	to	the addition	of	SunGard.	This	segment	also	includes	the	Company's	consolidated	Brazilian	Venture	(see	Note	17	of	the	Notes	to	Consolidated	Financial	Statements).	Our solutions	in	this	segment	include:

•Securities	Processing	and	Finance.	Our	offerings	help	financial	institutions	to	increase	the	efficiency,	transparency	and	control	of	their	back-office	trading operations,	post-trade	processing	and	settlement,	risk	management,	securities	lending,	syndicated	lending,	tax	processing,	and	regulatory	compliance.	The breadth	of	our	offerings	also	facilitates	advanced	business	intelligence	and	market	data	distribution	based	on	our	extensive	market	data	access.

•Global	Trading.	Our	trading	solutions	provide	trade	execution,	data	and	network	solutions	to	financial	institutions,	corporations	and	municipalities	in	North America,	Europe	and	other	global	markets	across	a	variety	of	asset	classes.	Our	trade	execution	and	network	solutions	help	both	buy-	and	sell-side	firms improve	execution	quality,	decrease	overall	execution	costs	and	address	today's	trade	connectivity	challenges.

•Asset	Management	and	Insurance.	We	offer	solutions	that	help	institutional	investors,	insurance	companies,	hedge	funds,	private	equity	firms,	fund administrators	and	securities	transfer	agents	improve	both	investment	decision-making	and	operational	efficiency,	while	managing	risk	and	increasing transparency.	Our	Asset	Management	solutions	support	every	stage	of	the	investment	process,	from	research	and	portfolio	management,	to	valuation,	risk management,	compliance,	investment	accounting,	transfer	agency	and	client	reporting.	Our	Insurance	solutions	help	support	front	office	and	back	office functions	including	actuarial	risk	calculations,	policy	administration	and	financial	and	investment	accounting	and	reporting	for	a	variety	of	insurance	lines, including	life	and	health,	annuities	and	pensions,	property	and	casualty,	reinsurance,	and	asset	management.

•Retail	Banking	and	Payments	Services.	Our	GFS	operations	leverage	existing	applications	and	provide	services	for	the	specific	business	needs	of	our	customers in	targeted	global	markets.	Services	are	delivered	from	our	operation	centers	around	the	world.	Our	banking	solution	services	include	fully	outsourced	core bank	processing	arrangements,	application	management,	software	licensing	and	maintenance	and	facilities	management.	Our	payment	solution	services	include fully	outsourced	card-issuer	services	and	customer	support,	payment	processing	(including	real-time	payments)	and	switching	services,	prepaid	and	debit	card processing,	software	licensing	and	maintenance,	outsourced	ATM	management	and	retail	point-of-sale	check	warranty	services.

•Strategic	Consulting	Services.	We	provide	complex	consulting,	technology	and	large-scale	IT	transformation	services	to	financial	institutions.	Our	consultants work	with	financial	institutions	to	design	and	implement	improvements	in	their	information	technology	architecture,	providing	design,	digital	strategy consulting,	program	and	change	management	and	delivery	services.	Global	financial	institutions	in	particular	can	benefit	from	the	combination	of	our	expertise and	our	broad	solution	set	as	they	transform	in	the	evolving	marketplace	to	restore	customer	confidence,	reduce	their	cost	structure	and	provide	innovative solutions	to	their	customers.

# Corporate	and	Other	Segment

The	Corporate	and	Other	segment	consists	of	corporate	overhead	expense,	certain	leveraged	functions	and	miscellaneous	expenses	that	are	not	included	in	the operating	segments,	as	well	as	certain	non-strategic	businesses.	The	overhead	and	leveraged	costs	relate	to	marketing,	corporate	finance	and	accounting,	human resources,	legal,	and	amortization	of	acquisition-related	intangibles	and	other	costs	that	are	not	considered	when	management	evaluates	revenue	generating	segment performance,	such	as	acquisition	integration	and	severance	costs.	The	business	solutions	in	this	segment	include:

•Public	Sector	and	Education.	Our	solutions	provide	domain-specific,	mission	critical	enterprise	resource	planning	and	administrative	software	to	domestic	state and	local	governments	and	K-12	educational	institutions.	Our	public	sector	offerings	are	designed	to	meet	the	specialized	needs	of	local	and	state	governments, public	safety	and	justice	agencies,	and	K-12	educational	institutions.	These	offerings	include	software	and	technology	services	supporting	a	range	of	specialized enterprise	resource	planning	and	administrative	processes	for	functions	such	as	accounting,	human	resources,	emergency	dispatch	operations,	the	operation	of courts	and	jails,	and	K-12	student	information	systems.	We	completed	the	sale	of	our	Public	Sector	and	Education	business	to	portfolio	companies	of	Vista Equity	Partners	on	February	1,	2017.	(see	Note	15	of	the	Notes	to	the	Consolidated	Financial	Statements).

•Global	Commercial	Services.		Our	global	commercial	services	include	solutions,	both	onshore	and	offshore,	designed	to	meet	the	technology	challenges	facing clients,	large	or	small,	including	financial	institutions	and	non-financial	institutions.	These	solutions	range	in	scope	from	operations	support	for	a	single application	to	full	management	of	information	technology	infrastructures.	We	also	provide	outsourcing	teams	to	manage	costs,	improve	operational	efficiency and	transform	our	clients'	back	office	and	customer	service	processes.

•Retail	Check	Processing.	Our	check	authorization	business	provides	check	risk	management	and	related	services	to	businesses	accepting	or	cashing	checks. Our	services	assess	the	likelihood	(and	often	provide	a	guarantee)	that	a	check	will	clear.	Our	check	authorization	system	uses	artificial	intelligence	modeling and	other	state-of-the-art	technology	to	deliver	accuracy,	convenience	and	simplicity	to	retailers.

# Sales	and	Marketing

We	have	experienced	sales	personnel	with	expertise	in	particular	services	and	markets,	as	well	as	in	the	needs	of	particular	types	of	customers.	We	believe	that focusing	our	expertise	in	specific	markets	(e.g.,	global	financial	institutions,	North	American	financial	institutions)	and	tailoring	integrated	solution	sets	of	particular value	to	participants	in	those	markets	enables	us	to	leverage	opportunities	to	cross-sell	and	up-sell.	As	a	result	of	the	SunGard	acquisition,	we	continue	to	realign	our sales	teams	to	better	match	our	solution	expertise	with	the	market	opportunity	and	customer	demand.	We	target	the	majority	of	our	potential	customers	via	direct	and/or indirect	field	sales,	as	well	as	inbound	and	outbound	lead	generation	and	telesales	efforts.

Our	global	marketing	strategy	is	to	develop	and	lead	the	execution	of	the	IFS	and	GFS	strategic	marketing	plans	in	support	of	their	revenue	and	profitability	goals and	the	FIS	brand.	Key	components	include	thought	leadership,	integrated	programs	with	consistent	message	development,	internal	and	external	communications,	client conference	content	management,	web	content	creation	and	management,	trade	shows,	demand	generation	campaigns	and	collateral	development	and	management.

# Patents,	Copyrights,	Trademarks	and	Other	Intellectual	Property

The	Company	owns	intellectual	property,	including	trademarks,	trade	names,	copyrights	and	patents,	which	we	believe	is	important	to	our	future	success.	Although we	acquired	the	trademarks	and	trade	names	used	by	SunGard,	we	note	that	following	the	split-off	of	the	Availability	Services	("AS")	business	by	SunGard	in	2014,	AS has	the	right	to	use	the	Sungard	Availability	Services	name,	which	does	not	include	the	right	to	use	the	SunGard	name	or	its	derivatives.

We	rely	on	a	combination	of	contractual	restrictions,	internal	security	practices,	patents,	copyrights	and	applicable	law	to	establish	and	protect	our	software, technology	and	expertise	worldwide.	We	rely	on	trademark	law	to	protect	our	rights	in	our	brands.	We	intend	to	continue	taking	appropriate	measures	to	protect	our intellectual	property	rights,	including	by	legal	action	when	necessary	and	appropriate.	In	general,	we	own	the	proprietary	rights	necessary	for	the	conduct	of	our business,	although	we	do	license	certain	items	from	third	parties	under	arms-length	agreements	for	varying	terms,	including	some	"open	source"	licenses.

# Competition

The	markets	for	our	solutions	and	services	are	intensely	competitive.	Depending	on	the	business	line,	in	both	our	IFS	and	GFS	segments,	our	primary	competitors include	internal	technology	departments	within	financial	institutions	and	retailers,	data	processing	or	software	development	departments	of	large	companies	or	large computer	manufacturers	and	companies	that	deliver	software	and	integrated	services	to	the	financial	services	industry,	third-party	payment	processors,	securities exchanges,	asset	managers,	card	associations,	clearing	networks	or	associations,	trust	companies,	independent	computer	services	firms,	companies	that	develop	and deploy	software	applications,	companies	owned	by	global	banks	selling	new	competitive	solutions,	companies	that	provide	customized	development,	implementation and	support	services,	strategic	consulting	and	technology	consulting	firms,	disruptive	technology	innovators,	and	business	process	outsourcing	companies.	Many	of	these companies	compete	with	us	across	multiple	solutions,	markets	and	geographies.	Some	of	these	competitors	possess	greater	financial,	sales	and	marketing	resources	than we	do.	Competitive	factors	impacting	the	success	of	our	services	across	our	segments	include	the	quality	of	the	technology-based	application	or	service,	application features	and	functions,	ease	of	delivery	and	integration,	the	ability	of	the	provider	to	maintain,	enhance	and	support	the	applications	or	services,	price	and	overall relationship	management.	We	believe	we	compete	favorably	in	each	of	these	categories.	In	addition,	we	believe	our	financial	services	industry	expertise,	combined	with our	ability	to	offer	multiple	applications,	services	and	integrated	solutions	to	individual	clients,	enhances	our	competitiveness	against	companies	with	more	limited offerings.

# Research	and	Development

Our	research	and	development	activities	have	related	primarily	to	the	design	and	development	of	processing	systems	and	related	software	applications	and	risk management	platforms.	We	expect	to	continue	our	practice	of	investing	an	appropriate	level	of	resources	to	maintain,	enhance	and	extend	the	functionality	of	our proprietary	systems	and	existing	software	applications,	to	develop	new	and	innovative	software	applications	and	systems	to	address	emerging	technology	trends	in response	to	the	needs	of	our	clients	and	to	enhance	the	capabilities	of	our	outsourcing	infrastructure.	In	addition,	we	intend	to	offer	services	compatible	with	new	and emerging	delivery	channels.

As	part	of	our	research	and	development	process,	we	evaluate	current	and	emerging	technology	for	compatibility	with	our	existing	and	future	software	platforms.	To this	end,	we	engage	with	various	hardware	and	software	vendors	in	evaluation	of	various	infrastructure	components.	Where	appropriate,	we	use	third-party	technology components	in	the	development	of	our	software	applications	and	service	offerings.	In	the	case	of	nearly	all	of	our	third-party	software,	enterprise	license	agreements exist	for	the	third-party	component	and	either	alternative	suppliers	exist	or	transfer	rights	exist	to	ensure	the	continuity	of	supply.	As	a	result,	we	are	not	materially dependent	upon	any	third-party	technology	components.	Third-party	software	may	be	used	for	highly	specialized	business	functions,	which	we	may	not	be	able	to develop	internally	within	time	and	budget	constraints.	Additionally,	third-party	software	may	be	used	for	commodity-type	functions	within	a	technology	platform environment.	We	work	with	our	clients	to	determine	the	appropriate	timing	and	approach	to	introducing	technology	or	infrastructure	changes	to	our	applications	and services.	In	each	of	the	years	ended	December	31,	2015,	and	2014,	approximately	2%	to	3%	of	revenues	were	invested	in	research	and	development	efforts.	During	the year	ended	December	31,	2016	approximately	4%	to	5%	of	revenues	were	invested	in	research	and	development	efforts.

# Government	Regulation

Our	services	are	subject	to	a	broad	range	of	complex	federal,	state,	and	foreign	regulation	and	requirements,	as	well	as	requirements	under	the	rules	of	self- regulatory	organizations,	including	federal	truth-in-lending	and	truth-in-savings	rules,	Regulation	AA	(Unfair	or	Deceptive	Acts	or	Practices),	privacy	laws,	usury	laws, laws	governing	state	trust	charters,	the	Equal	Credit	Opportunity	Act,	the	Electronic	Funds	Transfer	Act,	the	Fair	Credit	Reporting	Act,	the	Fair	Debt	Collection Practices	Act,	the	Bank	Secrecy	Act,	the	USA	Patriot	Act,	the	Internal	Revenue	Code,	the	Employee	Retirement	Income	Security	Act,	the	Health	Insurance	Portability and	Accountability	Act,	the	Community	Reinvestment	Act	and	the	Dodd-Frank	Wall	Street	Reform	and	Consumer	Protection	Act	(the	"Dodd-Frank	Act"),	the	Securities Exchange	Act	of	1934	(the	"1934	Act"),	the	Investment	Advisors	Act	of	1940	(the	"1940	Act"),	the	U.S.	Foreign	Corrupt	Practices	Act,	and	the	rules	and	regulations	of the	Financial	Industry	Regulatory	Authority	("FINRA"),	the	Securities	and	Exchange	Commission	("SEC")	and	the	Financial	Conduct	Authority	in	the	U.K.	("FCA"). The	compliance	of	our	services	and	applications	with	these	and	other	applicable	laws	and	regulations	depends	on	a	variety	of	factors,	including	the	manner	in	which	our clients	use	them.	In	some	cases,	we	are	directly	subject	to	regulatory	oversight	and	examination.	In	other	cases,	our	clients	are	contractually	responsible	for	determining what	is	required	of	them	under	applicable	laws	and	regulations	so	that	we	can	assist	them	in	their	compliance	efforts.	In	either	case,	the	failure	of	our	services	to	comply with	applicable	laws	and	regulations	may	result	in	restrictions	on	our	ability	to	provide	them	and/or	the	imposition	of	civil	fines	and/or	criminal	penalties.	The	principal areas	of	regulation	impacting	our	business	are:

•Oversight	by	Banking	Regulators.	As	a	provider	of	electronic	data	processing	and	back-office	services	to	financial	institutions,	FIS	is	subject	to	regulatory oversight	and	examination	by	the	Federal	Banking	Agencies	("FBA"),

including	the	Federal	Deposit	Insurance	Corporation	("FDIC"),	the	Office	of	the	Comptroller	of	the	Currency	("OCC"),	the	Board	of	Governors	of	the	Federal Reserve	System	("FRB"),	the	National	Credit	Union	Administration	("NCUA")	and	the	Consumer	Financial	Protection	Bureau	("CFPB")	as	part	of	the	Multi- Regional	Data	Processing	Servicer	Program	("MDPS").	The	MDPS	program	includes	technology	suppliers	that	provide	mission	critical	applications	for	a	large number	of	financial	institutions	that	are	regulated	by	multiple	regulatory	agencies.	Periodic	information	technology	examination	assessments	are	performed using	FBA	Interagency	guidelines	to	identify	potential	risks	that	could	adversely	affect	serviced	financial	institutions,	determine	compliance	with	applicable laws	and	regulations	that	affect	the	services	provided	to	financial	institutions	and	ensure	the	services	we	provide	to	financial	institutions	do	not	create	systemic risk	to	the	banking	system	or	impact	the	safe	and	sound	operation	of	the	financial	institutions	we	process.	In	addition,	independent	auditors	annually	review several	of	our	operations	to	provide	reports	on	internal	controls	for	our	clients'	auditors	and	regulators.	We	are	also	subject	to	review	and	examination	by	state and	international	regulatory	authorities	under	state	and	foreign	laws	and	rules	that	regulate	many	of	the	same	activities	that	are	described	above,	including electronic	data	processing,	payments	and	back-office	services	for	financial	institutions	and	the	use	of	consumer	information.

Our	U.S.-based	wealth	management	business	holds	charters	in	the	states	of	Georgia	and	Delaware,	which	makes	us	subject	to	the	regulatory	compliance requirements	of	the	Georgia	Department	of	Banking	and	Finance	and	the	State	of	Delaware	Office	of	the	State	Bank	Commissioner.	As	a	result,	we	are	also authorized	to	provide	trust	services	in	various	additional	states	subject	to	additional	applicable	state	regulations.

•Oversight	by	Securities	Regulators.	Our	subsidiary	that	conducts	our	broker-dealer	business	in	the	U.S.	is	registered	as	a	broker-dealer	with	the	SEC,	is	a member	of	FINRA,	and	is	registered	as	a	broker-dealer	in	numerous	states.	Our	broker-dealer	is	subject	to	regulation	and	oversight	by	the	SEC.	In	addition, FINRA,	a	self-regulatory	organization	that	is	subject	to	oversight	by	the	SEC,	adopts	and	enforces	rules	governing	the	conduct,	and	examines	the	activities,	of its	member	firms,	including	our	broker-dealer.	State	securities	regulators	also	have	regulatory	or	oversight	authority	over	our	broker-dealer.	Broker-dealers	are subject	to	regulations	that	cover	all	aspects	of	the	securities	business,	including	sales	methods,	trade	practices	among	broker-dealers,	public	and	private securities	offerings,	use	and	safekeeping	of	customers'	funds	and	securities,	capital	structure,	record	keeping,	the	financing	of	customers'	purchases	and	the conduct	and	qualifications	of	directors,	officers	and	employees.	In	particular,	as	a	registered	broker-dealer	and	member	of	a	self-regulatory	organization,	we	are subject	to	the	SEC's	uniform	net	capital	rule,	Rule	15c3-1.	Rule	15c3-1	specifies	the	minimum	level	of	net	capital	a	broker-dealer	must	maintain	and	also requires	that	a	significant	part	of	a	broker-dealer's	assets	be	kept	in	relatively	liquid	form.	The	SEC	and	various	self-regulatory	organizations	impose	rules	that require	notification	when	net	capital	falls	below	certain	predefined	criteria,	limit	the	ratio	of	subordinated	debt	to	equity	in	the	regulatory	capital	composition	of a	broker-dealer	and	constrain	the	ability	of	a	broker-dealer	to	expand	its	business	under	certain	circumstances.	Additionally,	the	SEC's	uniform	net	capital	rule imposes	certain	requirements	that	may	have	the	effect	of	prohibiting	a	broker-dealer	from	distributing	or	withdrawing	capital	and	requiring	prior	notice	to	the SEC	for	certain	withdrawals	of	capital.

Our	subsidiaries	also	include	an	SEC-registered	investment	adviser	and	SEC-registered	transfer	agent.	Our	registered	investment	adviser	is	subject	to	the fiduciary	and	other	obligations	imposed	on	investment	advisors	under	the	1940	Act,	and	the	rules	and	regulations	promulgated	thereunder,	as	well	as	various state	securities	laws.	Our	registered	transfer	agent	is	subject	to	the	1934	Act	and	the	rules	and	regulations	promulgated	thereunder.	These	laws	and	regulations generally	grant	the	SEC	and	other	supervisory	bodies	broad	administrative	powers	to	address	non-compliance	with	regulatory	requirements.	Sanctions	that	may be	imposed	for	non-compliance	with	these	requirements	include	the	suspension	of	individual	employees,	limitations	on	engaging	in	certain	activities	for specified	periods	of	time	or	for	specified	types	of	clients,	the	revocation	of	registrations,	other	censures	and	significant	fines.

Subsidiaries	engaged	in	activities	outside	the	U.S.	are	regulated	by	various	government	agencies	in	the	particular	jurisdiction	where	they	are	chartered, incorporated	and/or	conduct	their	business	activity.	For	example,	pursuant	to	the	U.K.	Financial	Services	and	Markets	Act	2000	("FSMA"),	certain	of	our subsidiaries	are	subject	to	regulations	promulgated	and	administered	by	the	FCA.	The	FSMA	and	rules	promulgated	thereunder	govern	all	aspects	of	the	U.K. investment	business,	including	sales,	research	and	trading	practices,	provision	of	investment	advice,	use	and	safekeeping	of	client	funds	and	securities, regulatory	capital,	record	keeping,	margin	practices	and	procedures,	approval	standards	for	individuals,	anti-money	laundering,	periodic	reporting	and settlement	procedures.

•Privacy.		Our	financial	institution	clients	are	required	to	comply	with	privacy	regulations	imposed	under	the	Gramm-Leach-Bliley	Act.	These	regulations	place restrictions	on	the	use	of	non-public	personal	information.	All	financial	institutions	must	disclose	detailed	privacy	policies	to	their	customers	and	offer	them	the opportunity	to	direct	the

financial	institution	not	to	share	information	with	third	parties.	The	regulations,	however,	permit	financial	institutions	to	share	information	with	non-affiliated parties	who	perform	services	for	the	financial	institutions.	As	a	provider	of	services	to	financial	institutions,	we	are	required	to	comply	with	the	privacy regulations	and	are	bound	by	the	same	limitations	on	disclosure	of	the	information	received	from	our	clients	as	apply	to	the	financial	institutions	themselves. Our	businesses	operating	outside	of	the	U.S.	are	subject	to	other	legal	requirements	concerning	the	use	and	protection	of	certain	customer	information, including	the	E.U.	Data	Protection	Directive	and	various	laws	in	Asia,	including	the	Japanese	Personal	Information	(Protection)	Law,	the	Hong	Kong	Personal Data	(Protection)	Ordinance	and	the	Australian	Privacy	Act.	FIS	has	adopted	measures	designed	to	comply	with	these	and	related	applicable	requirements	in	all relevant	jurisdictions.

•Money	Transfer.		Elements	of	our	cash	access	and	money	transmission	businesses	are	registered	as	a	Money	Services	Business	and	are	subject	to	the	USA Patriot	Act	and	reporting	requirements	of	the	Bank	Secrecy	Act	and	U.S.	Treasury	Regulations.	These	businesses	may	also	be	subject	to	certain	state,	local	and licensing	requirements.	In	applicable	states,	we	have	obtained	money	transmitter	licenses.	The	Financial	Crimes	Enforcement	Network,	state	attorneys	general, and	other	agencies	have	enforcement	responsibility	over	laws	relating	to	money	laundering,	currency	transmission,	and	licensing.	In	addition,	most	states	have enacted	statutes	that	require	entities	engaged	in	money	transmission	and	the	sale	of	stored	value	cards	to	register	as	a	money	transmitter	with	that	jurisdiction's banking	department.	Outside	the	U.S.,	applicable	laws,	rules	and	regulations	similarly	require	designated	types	of	financial	institutions	to	implement	anti- money	laundering	programs.	We	have	implemented	policies,	procedures	and	internal	controls	that	are	designed	to	comply	with	all	applicable	anti-money laundering	laws	and	regulations.	FIS	has	also	implemented	policies,	procedures,	and	internal	controls	that	are	designed	to	comply	with	the	regulations	and economic	sanctions	programs	administered	by	the	U.S.	Treasury's	Office	of	Foreign	Assets	Control	("OFAC"),	which	enforces	economic	and	trade	sanctions against	targeted	foreign	countries,	entities	and	individuals	based	on	external	threats	to	the	U.S.	foreign	policy,	national	security,	or	economy;	by	other governments;	or	by	global	or	regional	multilateral	organizations,	such	as	the	United	Nations	Security	Council	and	the	European	Union.

•Consumer	Reporting	and	Protection.		Our	retail	check	authorization	services	(Certegy	Check	Services)	and	account	opening	services,	including	credit	scoring analysis	(ChexSystems),	maintain	databases	of	consumer	information	and,	as	a	consequence,	are	subject	to	the	Federal	Fair	Credit	Reporting	Act	and	similar state	laws.	Among	other	things,	the	Federal	Fair	Credit	Reporting	Act	imposes	requirements	on	us	concerning	data	accuracy,	and	provides	that	consumers	have the	right	to	know	the	contents	of	their	files,	to	dispute	their	accuracy,	and	to	require	verification	or	removal	of	disputed	information.	The	Federal	Trade Commission,	as	well	as	state	attorneys	general	and	other	agencies,	have	enforcement	responsibility	over	the	collection	laws,	as	well	as	the	various	credit reporting	laws.	In	furtherance	of	our	objectives	of	data	accuracy,	fair	treatment	of	consumers,	protection	of	consumers'	personal	information,	and	compliance with	these	laws,	we	strive	to,	and	have	made	considerable	investment	to,	maintain	a	high	level	of	security	for	our	computer	systems	in	which	consumer	data resides,	and	we	maintain	consumer	relations	call	centers	to	facilitate	efficient	handling	of	consumer	requests	for	information	and	handling	disputes.	We	also	are focused	on	ensuring	our	operating	environments	safeguard	and	protect	consumer's	personal	information	in	compliance	with	these	laws.

The	Dodd-Frank	Act	was	enacted	and	signed	into	law	on	July	21,	2010.	Among	other	provisions,	this	legislation	created	the	Consumer	Financial	Protection Bureau	(the	"CFPB"),	whose	sole	focus	is	to	develop,	implement	and,	with	respect	to	financial	institutions	with	more	than	$10	billion	in	assets,	enforce consumer	protection	rules	promulgated	by	the	CFPB,	including	enhanced	oversight	of	non-financial	institutions	providing	financial	services.	For	financial institutions	with	less	than	$10	billion	in	assets,	enforcement	of	the	rules	will	be	carried	out	by	such	institution's	primary	federal	regulator.	Certain	of	our businesses	that	affect	end	consumers	are	subject	to	examination	by	these	regulators	from	time	to	time.

Our	consumer	reporting	and	facing	businesses	are	subject	to	CFPB	bulletin	2013-7	(an	update	to	the	former	Regulation	A-	Unfair	Deceptive	Acts	or	Practices), which	states	the	definition	of	Unfair,	Deceptive	or	Abusive	Acts	or	Practices	(UDAAP).	This	specific	bulletin	states	that	UDAAPs	can	cause	significant financial	injury	to	consumers,	erode	consumer	confidence,	and	undermine	fair	competition	in	the	financial	marketplace.	Original	creditors	and	other	covered persons	and	service	providers	under	the	Dodd-Frank	Act	involved	in	collecting	debt	related	to	any	consumer	financial	product	or	service	are	subject	to	the prohibition	against	UDAAPs	in	the	Dodd-Frank	Act.

•Debt	Collection.		Our	collection	services	supporting	our	check,	card	and	payment	environments	are	subject	to	the	Federal	Fair	Debt	Collection	Practices	Act and	various	state	collection	laws	and	licensing	requirements.	The	Federal	Trade	Commission,	as	well	as	state	attorneys	general	and	other	agencies,	have enforcement	responsibility	over	the	collection	laws,	as	well	as	the	various	credit	reporting	laws.

•Anti-Corruption.	FIS	is	subject	to	applicable	anti-corruption	laws,	such	as	the	U.S.	Foreign	Corrupt	Practices	Act	and	the	U.K.	Bribery	Act,	in	the	jurisdictions in	which	it	operates.	Anti-corruption	laws	generally	prohibit	offering,	promising,	giving,	or	authorizing	others	to	give	anything	of	value,	either	directly	or indirectly,	to	a	government	official	or	private	party	in	order	to	influence	official	action	or	otherwise	gain	an	unfair	business	advantage,	such	as	to	obtain	or retain	business.	FIS	has	implemented	policies,	procedures,	and	internal	controls	that	are	designed	to	comply	with	such	laws,	rules	and	regulations.

The	foregoing	list	of	laws	and	regulations	to	which	our	Company	is	subject	is	not	exhaustive,	and	the	regulatory	framework	governing	our	operations	changes continuously.	Enactment	of	new	laws	and	regulations	may	increasingly	affect	the	operations	of	our	business,	directly	and	indirectly,	which	could	result	in	substantial regulatory	compliance	costs,	litigation	expense,	adverse	publicity,	and/or	loss	of	revenue.

# Information	Security

Globally,	attacks	on	information	technology	systems	continue	to	grow	in	frequency,	complexity	and	sophistication.	Such	attacks	have	become	a	point	of	focus	for individuals,	businesses	and	governmental	entities.	The	objectives	of	these	attacks	include,	among	other	things,	gaining	unauthorized	access	to	systems	to	facilitate financial	fraud,	disrupt	operations,	cause	denial	of	service	events,	corrupt	data,	and	steal	non-public,	sensitive	information.	These	circumstances	present	both	a	threat	and an	opportunity	for	FIS.	As	part	of	our	business,	we	electronically	receive,	process,	store	and	transmit	a	wide	range	of	confidential	information,	including	sensitive customer	information	and	personal	consumer	data.	We	also	operate	payment,	cash	access	and	prepaid	card	systems.

FIS	remains	focused	on	making	strategic	investments	in	information	security	to	protect	our	clients	and	our	information	systems.	This	includes	both	capital expenditures	and	operating	expenses	on	hardware,	software,	personnel	and	consulting	services.	We	also	participate	in	industry	and	governmental	initiatives	to	improve information	security	for	our	clients.	Through	the	expertise	we	have	gained	with	this	ongoing	focus	and	involvement,	we	have	developed	fraud,	security,	risk management	and	compliance	solutions	to	target	this	growth	opportunity	in	the	financial	services	industry.

For	more	information	on	Information	Security,	see	"Item	7.	Management's	Discussion	and	Analysis	of	Financial	Condition	and	Results	of	Operations."

# Employees

As	of	December	31,	2016,	we	had	more	than	55,000	employees,	including	approximately	37,000	employees	principally	employed	outside	of	the	U.S.	None	of	our U.S.	workforce	currently	is	unionized.	Approximately	13,000	of	our	employees,	primarily	in	Brazil,	Germany,	Tunisia,	France,	Italy	and	Chile,	are	represented	by	labor unions	or	works	councils.	We	consider	our	relations	with	our	employees	to	be	good.

# Available	Information

Our	Internet	website	address	is	www.fisglobal.com.	We	make	our	Annual	Reports	on	Form	10-K,	Quarterly	Reports	on	Form	10-Q,	and	Current	Reports	on Form	8-K,	and	any	amendments	to	those	reports,	available,	free	of	charge,	on	that	website	as	soon	as	reasonably	practicable	after	we	file	or	furnish	them	to	the	Securities and	Exchange	Commission.	Our	Corporate	Governance	Policy	and	Code	of	Business	Conduct	and	Ethics	are	also	available	on	our	website	and	are	available	in	print,	free of	charge,	to	any	shareholder	who	mails	a	request	to	the	Corporate	Secretary,	Fidelity	National	Information	Services,	Inc.,	601	Riverside	Avenue,	Jacksonville,	FL 32204	USA.	Other	corporate	governance-related	documents	can	be	found	at	our	website	as	well.	However,	the	information	found	on	our	website	is	not	a	part	of	this	or any	other	report.

# Item	1A. Risk	Factors

In	addition	to	the	normal	risks	of	business,	we	are	subject	to	significant	risks	and	uncertainties,	including	those	listed	below	and	others	described	elsewhere	in	this Annual	Report	on	Form	10-K.	Any	of	the	risks	described	herein	could	result	in	a	significant	adverse	effect	on	our	results	of	operations	and	financial	condition.

# Risks	Related	to	Our	Business	and	Operations

# Entity	mergers	or	consolidations	and	business	failures	in	the	banking	and	financial	services	industry	could	adversely	affect	our	business	by	eliminating	some	of our	existing	and	potential	clients	and	making	us	more	dependent	on	a	more	limited	number	of	clients.

There	has	been	and	continues	to	be	substantial	consolidation	activity	in	the	banking	and	financial	services	industry.	In	addition,	many	financial	institutions	that experienced	negative	operating	results,	including	some	of	our	clients,	have	failed.	These	consolidations	and	failures	reduce	our	number	of	potential	clients	and	may reduce	our	number	of	existing	clients,	which	could	adversely	affect	our	revenues,	even	if	the	events	do	not	reduce	the	aggregate	activities	of	the	consolidated	entities. Further,	if	our	clients	fail	and/or	merge	with	or	are	acquired	by	other	entities	that	are	not	our	clients,	or	that	use	fewer	of	our	services,	they	may	discontinue	or	reduce use	of	our	services.	It	is	also	possible	that	larger	financial	institutions	resulting	from	consolidations	would	have	greater	leverage	in	negotiating	terms	or	could	decide	to perform	in-house	some	or	all	of	the	services	we	currently	provide	or	could	provide.	Any	of	these	developments	could	have	an	adverse	effect	on	our	business,	results	of operations	and	financial	condition.

# If	we	fail	to	innovate	or	adapt	our	services	to	changes	in	technology	or	in	the	marketplace,	or	if	our	ongoing	efforts	to	upgrade	our	technology	are	not	successful, we	could	lose	clients	or	our	clients	could	lose	customers	and	have	difficulty	attracting	new	clients	for	our	services.

The	markets	for	our	services	are	characterized	by	constant	technological	changes,	frequent	introductions	of	new	services	and	evolving	industry	standards.	Our	future success	will	be	significantly	affected	by	our	ability	to	enhance	our	current	solutions	and	develop	and	introduce	new	solutions	and	services	that	address	the	increasingly sophisticated	needs	of	our	clients	and	their	customers.	In	addition,	as	more	of	our	revenue	and	market	demand	shifts	to	SaaS,	cloud,	BPaaS	and	new	disruptive technologies,	the	need	to	keep	pace	with	rapid	technology	changes	becomes	more	acute.	These	initiatives	carry	the	risks	associated	with	any	new	solution	development effort,	including	cost	overruns,	delays	in	delivery,	and	performance	issues.	There	can	be	no	assurance	that	we	will	be	successful	in	developing,	marketing	and	selling new	solutions	that	meet	these	changing	demands,	that	we	will	not	experience	difficulties	that	could	delay	or	prevent	the	successful	development,	introduction,	and marketing	of	these	solutions,	or	that	our	new	solutions	and	their	enhancements	will	adequately	meet	the	demands	of	the	marketplace	and	achieve	market	acceptance. Any	of	these	developments	could	have	an	adverse	impact	on	our	future	revenues	and/or	business	prospects.

# We	operate	in	a	competitive	business	environment	and	if	we	are	unable	to	compete	effectively	our	results	of	operations	and	financial	condition	may	be	adversely affected.

The	market	for	our	services	is	intensely	competitive.	Our	competitors	vary	in	size	and	in	the	scope	and	breadth	of	the	solutions	and	services	they	offer.	Some	of	our competitors	have	substantial	resources.	We	face	direct	competition	from	third	parties,	and	since	many	of	our	larger	potential	clients	have	historically	developed	their key	applications	in-house	and	therefore	view	their	system	requirements	from	a	make-versus-buy	perspective,	we	also	often	compete	against	our	potential	clients'	in- house	capacities.	In	addition,	the	markets	in	which	we	compete	have	recently	attracted	increasing	competition	from	smaller	start-ups	with	disruptive	technologies,	which are	receiving	increasing	investments,	global	banks	(and	businesses	controlled	by	a	combination	of	global	banks)	and	global	internet	companies	that	are	introducing competitive	products	and	services	into	the	marketplace,	particularly	in	the	payments	area.	Emerging	technologies	and	increased	competition	may	also	have	the	effect	of unbundling	bank	solutions	and	result	in	picking	off	solutions	we	are	currently	providing	from	our	legacy	systems.	International	competitors	are	also	now	targeting	and entering	the	U.S.	market	with	greater	force.	There	can	be	no	assurance	that	we	will	be	able	to	compete	successfully	against	current	or	future	competitors	or	that	the competitive	pressures	we	face	in	the	markets	in	which	we	operate	will	not	materially	adversely	affect	our	business,	financial	condition,	and	results	of	operations.	See "Item	I.	Business.	Competition."

# Global	economic,	political	and	other	conditions,	including	business	cycles	and	consumer	confidence,	may	adversely	affect	our	clients	or	trends	in	consumer spending,	which	may	adversely	impact	the	demand	for	our	services	and	our	revenue	and	profitability.

A	significant	portion	of	our	revenue	is	derived	from	transaction	processing	fees.	The	global	transaction	processing	industries	depend	heavily	upon	the	overall	level of	consumer,	business	and	government	spending.	Any	change	in	economic	factors,	including	a	sustained	deterioration	in	general	economic	conditions	or	consumer confidence,	particularly	in	the	United	States,	or	increases	in	interest	rates	in	key	countries	in	which	we	operate	may	adversely	affect	consumer	spending,	including related	consumer	debt,	further	reduce	check	writing	and	change	credit	and	debit	card	usage,	and	as	a	result,	adversely	affect	our	financial	performance	by	reducing	the number	or	average	purchase	amount	of	transactions	that	we	service.

When	there	is	a	slowdown	or	downturn	in	the	economy,	a	drop	in	stock	market	levels	or	trading	volumes,	or	an	event	that	disrupts	the	financial	markets,	our business	and	financial	results,	particularly	with	respect	to	our	capital	markets	businesses,	may	suffer	for	a	number	of	reasons.	Customers	may	react	to	worsening conditions	by	reducing	their	capital	expenditures	in	general	or	by	specifically	reducing	their	information	technology	spending.	In	addition,	customers	may	curtail	or discontinue	trading	operations,	delay	or	cancel	information	technology	projects,	or	seek	to	lower	their	costs	by	renegotiating	vendor	contracts.	Moreover,	competitors may	respond	to	market	conditions	by	lowering	prices	and	attempting	to	lure	away	our	customers	to	lower	cost	solutions.	Any	more	protective	trade	policies	or	actions taken	by	the	U.S.	may	also	result	in	other	countries	reducing	or	making	more	expensive	services	permitted	to	be	provided	by	U.S.	based	companies.	If	any	of	these circumstances	remain	in	effect	for	an	extended	period	of	time,	there	could	be	a	material	adverse	effect	on	our	financial	results.

# Constraints	within	global	financial	markets	or	international	regulatory	requirements	could	constrain	our	financial	institution	clients'	ability	to	purchase	our services,	impacting	our	future	growth	and	profitability.

A	significant	number	of	our	clients	and	potential	clients	may	hold	sovereign	debt	of	economically	struggling	nations	or	be	subject	to	emerging	international requirements	such	as	Basel	III,	which	could	require	changes	in	their	capitalization	and	hence	the	amount	of	their	working	capital	available	to	purchase	our	services. These	potential	constraints	could	alter	the	ability	of	clients	or	potential	clients	to	purchase	our	services	and	thus	could	have	a	significant	impact	on	our	future	growth	and profitability.

The	sales	and	implementation	cycles	for	many	of	our	software	and	service	offerings	can	be	lengthy	and	require	significant	investment	from	both	our	clients	and FIS.	If	we	fail	to	close	sales	or	if	a	client	chooses	not	to	complete	an	installation	after	expending	significant	time	and	resources	to	do	so,	our	business,	financial condition,	and	results	of	operations	may	be	adversely	affected.

The	sales	and	associated	deployment	of	many	of	our	software	or	service	offerings	often	involve	significant	capital	commitments	by	our	clients	and/or	FIS.	Potential clients	generally	commit	significant	resources	to	an	evaluation	of	available	software	and	services	and	require	us	to	expend	substantial	time,	effort,	and	money	educating them	prior	to	sales.	Further,	as	part	of	the	sale	or	deployment	of	our	software	and	services,	clients	may	also	require	FIS	to	perform	significant	related	services	to complete	a	proof	of	concept	or	custom	development	to	meet	their	needs.	All	of	the	aforementioned	activities	may	expend	significant	funds	and	management	resources and,	ultimately,	the	client	may	determine	not	to	close	the	sale	or	complete	the	implementation.	If	we	are	unsuccessful	in	closing	sales	or	if	the	client	decides	not	to complete	an	implementation	after	we	expend	significant	funds	and	management	resources	or	we	experience	delays,	it	could	have	an	adverse	effect	on	our	business, financial	condition,	and	results	of	operations.

# Our	results	may	fluctuate	from	period	to	period	because	of	the	lengthy	and	unpredictable	sales	cycle	for	our	software,	changes	in	our	mix	of	licenses	and	services, activity	by	competitors,	and	customer	budgeting,	operational	requirements	or	renewal	cycles.

Particularly	with	respect	to	GFS,	our	operating	results	may	fluctuate	from	period	to	period	and	be	difficult	to	predict	in	a	particular	period	due	to	the	timing	and magnitude	of	software	license	sales	and	other	factors.	We	offer	a	number	of	our	software	solutions	on	a	license	basis,	which	means	that	the	customer	has	the	right	to	run the	software	on	its	own	computers.	The	customer	usually	makes	a	significant	up-front	payment	to	license	software,	which	we	generally	recognize	as	revenue	when	the license	contract	is	signed	and	the	software	is	delivered.	The	size	of	the	up-front	payment	often	depends	on	a	number	of	factors	that	are	different	for	each	customer,	such as	the	number	of	customer	locations,	users	or	accounts.	The	sales	cycle	for	a	software	license	may	be	lengthy	and	take	unexpected	turns.	Further,	our	customers' business	models	are	shifting	away	from	paying	upfront	license	fees	to	paying	periodic	rental	fees	for	services.	Thus,	it	is	difficult	to	predict	when	software	sales	will occur	or	how	much	revenue	they	will	generate.	Since	there	are	few	incremental	costs	associated	with	software	sales,	our	operating	results	may	fluctuate	from	quarter	to quarter	and	year	to	year	due	to	the	timing	and	magnitude	of	software	sales.	Our	results	may	also	vary	as	a	result	of	pricing	pressures,	increased	cost	of	equipment,	the evolving	and	unpredictable	markets	in	which	our	solutions	and	services	are	sold,	changes	in	accounting	principles,	and	competitors'	new	solutions	or	services.

In	addition,	there	are	a	number	of	other	factors	that	could	cause	our	sales	and	results	of	operation	to	fluctuate	from	period	to	period,	including:

•customers	periodically	renew	or	upgrade	their	installed	base	of	our	solutions,	which	trigger	buying	cycles	for	current	or	new	versions	of	our	solutions	and our	revenue	generally	fluctuates	with	these	refresh	cycles	as	a	result;

•the	budgeting	cycles	and	purchasing	practices	of	customers,	particularly	large

customers;

•changes	in	customer,	distributor	or	reseller	requirements	or	market	needs;

•deferral	of	orders	from	customers	in	anticipation	of	new	solutions	or	offerings	announced	by	us	or	our	competitors	or	otherwise	anticipated	by	the market;

•our	ability	to	successfully	expand	our	business	domestically	and	internationally;

•insolvency	or	credit	difficulties	confronting	our	customers,	which	could	adversely	affect	their	ability	to	purchase	or	pay	for	our

solutions.

# Failure	to	obtain	new	clients	or	renew	client	contracts	on	favorable	terms	could	adversely	affect	results	of	operations	and	financial	condition.

We	may	face	pricing	pressure	in	obtaining	and	retaining	our	clients.	Larger	clients	may	be	able	to	seek	price	reductions	from	us	when	they	renew	a	contract,	when	a contract	is	extended,	or	when	the	client's	business	has	significant	volume	changes.	They	may	also	reduce	services	if	they	decide	to	move	services	in-house.	Further,	our smaller	and	mid-size	clients	may	also	exert	pricing	pressure,	particularly	on	renewal,	due	to	pricing	competition	or	other	economic	needs	or	pressures	being	experienced by	the	client.	On	some	occasions,	this	pricing	pressure	results	in	lower	revenue	from	a	client	than	we	had	anticipated	based	on	our	previous	agreement	with	that	client. This	reduction	in	revenue	could	result	in	an	adverse	effect	on	our	business,	operating	results	and	financial	condition.

Further,	failure	to	renew	client	contracts	on	favorable	terms	could	have	an	adverse	effect	on	our	business.	Our	contracts	with	clients	generally	run	for	several	years and	include	liquidated	damage	provisions	that	provide	for	early	termination	fees.	Terms	are	generally	renegotiated	prior	to	the	end	of	a	contract's	term.	If	we	are	not successful	in	achieving	a	high	rate	of	contract	renewals	on	favorable	terms,	our	results	of	operations	and	financial	condition	could	be	adversely	affected.

Our	business	and	operating	results	could	be	adversely	affected	if	we	experience	business	interruptions,	errors	or	failure	in	connection	with	our	or	third-party information	technology	and	communication	systems	and	other	software	and	hardware	used	in	connection	with	our	business,	if	we	experience	defects	or	design errors	in	the	software	solutions	we	offer,	or	more	generally,	if	the	third-party	vendors	we	rely	upon	are	unwilling	or	unable	to	provide	the	services	we	need	to effectively	operate	our	business.

Many	of	our	services,	including	our	transformation	services,	are	based	on	sophisticated	software	and	computing	systems,	and	we	may	encounter	delays	when developing	new	technology	solutions	and	services.	Further,	the	technology	solutions	underlying	our	services	have	occasionally	contained	and	may	in	the	future	contain undetected	errors	or	defects	when	first	introduced	or	when	new	versions	are	released.	In	addition,	we	may	experience	difficulties	in	installing	or	integrating	our technologies	on	platforms	used	by	our	clients	or	our	clients	may	cancel	a	project	after	we	have	expended	significant	effort	and	resources	to	complete	an	installation. Finally,	our	systems	and	operations	could	be	exposed	to	damage	or	interruption	from	fire,	natural	disaster,	power	loss,	telecommunications	failure,	unauthorized	entry and	computer	viruses.	Defects	in	our	technology	solutions,	errors	or	delays	in	the	processing	of	electronic	transactions,	or	other	difficulties	could	result	in:

(i)	interruption	of	business	operations;	(ii)	delay	in	market	acceptance;	(iii)	additional	development	and	remediation	costs;	(iv)	diversion	of	technical	and	other	resources; (v)	loss	of	clients;	(vi)	negative	publicity;	or	(vii)	exposure	to	liability	claims.	Any	one	or	more	of	the	foregoing	could	have	an	adverse	effect	on	our	business,	financial condition	and	results	of	operations.	Although	we	attempt	to	limit	our	potential	liability	through	controls,	including	system	redundancies,	security	controls,	application development	and	testing	controls,	and	disclaimers	and	limitation-of-liability	provisions	in	our	license	and	client	agreements,	we	cannot	be	certain	that	these	measures will	always	be	successful	in	preventing	disruption	or	limiting	our	liability.

Further,	most	of	the	solutions	we	offer	are	very	complex	software	systems	that	are	regularly	updated.	No	matter	how	careful	the	design	and	development,	complex software	often	contains	errors	and	defects	when	first	introduced	and	when	major	new	updates	or	enhancements	are	released.	If	errors	or	defects	are	discovered	in	current or	future	solutions,	we	may	not	be	able	to	correct	them	in	a	timely	manner,	if	at	all.	In	our	development	of	updates	and	enhancements	to	our	software	solutions,	we	may make	a	major	design	error	that	makes	the	solution	operate	incorrectly	or	less	efficiently.	The	failure	of	software	to	properly	perform	could	result	in	the	Company	and	its clients	being	subjected	to	losses	or	liability,	including	censures,	fines,	or	other	sanctions	by	the	applicable	regulatory	authorities,	and	we	could	be	liable	to	parties	who are	financially	harmed	by	those	errors.	In	addition,	such	errors	could	cause	the	Company	to	lose	revenues,	lose	clients	or	damage	its	reputation.

In	addition,	we	generally	depend	on	a	number	of	third	parties,	both	in	the	United	States	and	internationally,	to	supply	elements	of	our	systems,	computers,	research and	market	data,	connectivity,	communication	network	infrastructure,	other	equipment	and	related	support	and	maintenance.	We	cannot	be	certain	that	any	of	these	third parties	will	be	able	to	continue	providing	these	services	to	effectively	meet	our	evolving	needs.	If	our	vendors,	or	in	certain	cases	vendors	of	our	customers,	fail	to	meet their	obligations,	provide	poor	or	untimely	service,	or	we	are	unable	to	make	alternative	arrangements	for	the	provision	of	these	services,	we	may	in	turn	fail	to	provide our	services	or	to	meet	our	obligations	to	our	customers,	and	our	business,	financial	condition	and	operating	results	could	be	materially	harmed.

# The	Dodd-Frank	Act	may	result	in	business	changes	for	our	clients	that	have	or	could	have	an	adverse	effect	on	our	financial	condition,	revenues,	results	of operations,	or	prospects	for	future	growth	and	overall	business.

Our	clients	are	required	to	comply	with	numerous	regulations.	The	Dodd-Frank	Act	and	associated	Durbin	Amendment	were	passed	and	signed	into	law	in	2010. The	Dodd-Frank	Act	represents	a	comprehensive	overhaul	of	the	regulations	governing	the	financial	services	industry	within	the	United	States.	The	Dodd-Frank	Act established	the	CFPB	and	requires	this	and	other	federal	agencies	to	implement	many	new	regulations,	which	have	the	potential	to	increase	the	amount	and	types	of regulation	on	areas	of	our	business	that	were	not	previously	regulated.

Several	regulations	and	rules	have	or	will	be	written	and	implemented	as	directed	by	the	Dodd-Frank	Act.	These	rules	and	regulations	have	or	will	require	our clients	or	potential	clients	to	comply	with	requirements	and	could	require	us	to	directly	comply	with	regulations.	These	requirements	have	or	could	result	in	the	need	for FIS	to	make	capital	investments	to	modify	our	solutions	and	services	to	facilitate	our	clients'	and	potential	clients'	compliance,	as	well	as	to	deploy	additional	processes or	reporting	to	comply	with	regulations.	Further,	requirements	of	the	regulations	have	or	could	result	in	changes	in	our	clients'	business	practices	and	those	of	other marketplace	participants	that	may	alter	the	delivery	of	services	to	consumers,	which	have	or	could	impact	the	demand	for	our	software	and	services	as	well	as	alter	the type	or	volume	of	transactions	that	we	process	on	behalf	of	our	clients.	As	a	result,	these	requirements	have	or	could	have	an	adverse	impact	on	our	financial	condition, revenues,	results	of	operations,	prospects	for	future	growth	and	overall	business.

Many	of	our	clients	are	subject	to	a	regulatory	environment	and	to	industry	standards	that	may	change	in	a	manner	that	reduces	the	types	or	volume	of	solutions or	services	we	provide,	or	may	reduce	the	type	or	number	of	transactions	in	which	our	clients	engage,	and	therefore,	reduces	our	revenues.

Our	clients	are	subject	to	a	number	of	government	regulations	and	industry	standards	with	which	our	services	must	comply.	Our	clients	must	ensure	that	our services	and	related	solutions	work	within	the	extensive	and	evolving	regulatory	and	industry	requirements	applicable	to	them.	Federal,	state,	foreign	or	industry authorities	could	adopt	laws,	rules	or	regulations	affecting	our	clients'	businesses	that	could	lead	to	increased	operating	costs	and	could	reduce	the	convenience	and functionality	of	our	services,	possibly	resulting	in	reduced	market	acceptance.	In	addition,	action	by	regulatory	authorities	relating	to	credit	availability,	data	usage, privacy,	or	other	related	regulatory	developments	could	have	an	adverse	effect	on	our	clients	and,	therefore,	could	have	a	material	adverse	effect	on	our	financial condition,	revenues,	results	of	operations,	prospects	for	future	growth	and	overall	business.	Elimination	of	regulatory	requirements	could	also	adversely	affect	the	sales of	our	solutions	designed	to	help	clients	comply	with	complex	regulatory	environments.

# Regulations	enacted	by	the	CFPB	or	state	regulatory	authorities,	such	as	the	New	York	State	Department	of	Financial	Services,	may	require	FIS	to	adopt	new business	practices	which	may	require	capital	investment	and/or	incremental	expenses	which	could	impact	our	future	operating	results.

The	CFPB	regulates	financial	and	non-financial	institutions	and	providers	to	those	institutions.	The	CFPB	continues	to	establish	rules	for	regulating	non-financial institution	providers	to	ensure	adequate	protection	of	consumer	privacy	and	to	ensure	consumers	are	not	impacted	by	deceptive	business	practices.	The	New	York Department	of	Financial	Services	has	proposed	new	rules	that	would	require	covered	financial	institutions	to	establish	and	maintain	cyber	security	programs.	The	impact of	these	rules	and	proposed	rules	may	require	FIS	to	be	subject	to	additional	regulation	and	adopt	additional	business	practices	that	could	require	additional	capital expenditures	or	impact	our	operating	results.

# Our	revenues	from	the	sale	of	services	to	members	of	VISA,	MasterCard,	American	Express,	Discover	and	other	similar	organizations	are	dependent	upon	our continued	certification	and	sponsorship,	and	the	loss	or	suspension	of	certification	or	sponsorship	could	adversely	affect	our	business.

In	order	to	provide	our	card	processing	services,	we	must	be	certified	(including	applicable	sponsorship)	by	VISA,	MasterCard,	American	Express,	Discover	and other	similar	organizations.	These	certifications	are	dependent	upon	our	continued	adherence	to	the	standards	of	the	issuing	bodies	and	sponsoring	member	banks.	The member	financial	institutions,	some	of	which	are	our	competitors,	set	the	standards	with	which	we	must	comply.	If	we	fail	to	comply	with	these	standards	we	could	be fined,	our	certifications	could	be	suspended,	or	our	registration	could	be	terminated.	The	suspension	or	termination	of	our	certifications,	or	any	changes	in	the	rules	and regulations	governing	VISA,	MasterCard,	American	Express,	Discover,	or	other	similar	organizations,	could	result	in	a	reduction	in	revenue	or	increased	costs	of operation,	which	in	turn	could	have	a	material	adverse	effect	on	our	business.

# Changes	in	card	association	and	debit	network	fees	or	products	could	increase	costs	or	otherwise	limit	our	operations.

From	time	to	time,	card	associations	and	debit	networks	increase	the	interchange	fees	that	they	charge.	It	is	possible	that	competitive	pressures	will	result	in	our absorption	of	a	portion	of	such	increases	in	the	future,	which	would	increase	our	operating	costs,	reduce	our	profit	margin	and	adversely	affect	our	business,	financial condition,	and	results	of	operations.	Furthermore,	the	rules	and	regulations	of	the	various	card	associations	and	networks	prescribe	certain	capital	requirements.	Any increase	in	the	capital	level	required	would	further	limit	our	use	of	capital	for	other	purposes.

Interchange	fees	and	related	practices	have	been	receiving	significant	legal	and	regulatory	scrutiny	worldwide.	The	resulting	regulatory	changes	that	could	occur from	proposed	regulations	could	alter	the	fees	charged	by	card	associations	and	debit	networks	worldwide.	Such	changes	could	have	an	adverse	impact	on	our	business or	financial	condition	due	to	reductions	or	changes	in	types	of	transactions	processed	on	behalf	of	our	clients.

# Our	securities	brokerage	operations	are	highly	regulated	and	subject	to	risks	that	are	not	encountered	in	our	other	businesses.

One	of	our	subsidiaries	is	an	SEC	registered	broker-dealer	in	the	U.S.	and	others	are	authorized	by	the	FCA	to	conduct	certain	regulated	business	in	the	U.K. Domestic	and	foreign	regulatory	and	self-regulatory	organizations,	such	as	the	SEC,	the	FINRA,	and	the	FCA	can,	among	other	things,	fine,	censure,	issue	cease-and- desist	orders	against,	and	suspend	or	expel	a	broker-dealer	or	its	officers	or	employees	for	failure	to	comply	with	the	many	laws	and	regulations	that	govern	brokerage activities.	Such	sanctions	may	arise	out	of	currently-conducted	activities	or	those	conducted	in	prior	periods.	Our	ability	to	comply	with	these	laws	and	regulations	is largely	dependent	on	our	establishment,	maintenance,	and	enforcement	of	an	effective	brokerage	compliance	program.	Failure	to	establish,	maintain,	and	enforce	the required	brokerage	compliance	procedures,	even	if	unintentional,	could	subject	us	to	significant	losses,	lead	to	disciplinary	or	other	actions,	and	tarnish	our	reputation. Regulations	affecting	the	brokerage	industry	may	change,	which	could	adversely	affect	our	financial	results.

We	are	exposed	to	certain	risks	relating	to	the	execution	services	provided	by	our	brokerage	operations	to	our	customers	and	counterparties,	which	include	other broker-dealers,	active	traders,	hedge	funds,	asset	managers,	and	other	institutional	and	non-institutional	clients.	These	risks	include,	but	are	not	limited	to,	customers	or counterparties	failing	to	pay	for	or	deliver	securities,	trading	errors,	the	inability	or	failure	to	settle	trades,	and	trade	execution	system	failures.	In	our	other	businesses, we	generally	can	disclaim	liability	for	trading	losses	that	may	be	caused	by	our	software,	but	in	our	brokerage	operations,	we	may	not	be	able	to	limit	our	liability	for trading	losses	or	failed	trades	even	when	we	are	not	at	fault.	As	a	result,	we	may	suffer	losses	that	are	disproportionately	large	compared	to	the	relatively	modest	profit contributions	of	our	brokerage	operations.

# If	we	fail	to	comply	with	applicable	regulations	or	to	meet	regulatory	expectations,	our	business,	results	of	operations	or	financial	condition	could	be	adversely impacted.

The	majority	of	our	data	processing	services	for	financial	institutions	are	not	directly	subject	to	Federal	or	State	regulations	specifically	applicable	to	financial institutions	such	as	banks,	thrifts	and	credit	unions.	However,	as	a	provider	of	services	to	these	financial	institutions,	our	data	processing	operations	are	examined	on	a regular	basis	by	various	federal	and	state	regulatory	authorities	and	by	international	regulatory	authorities,	such	as	the	FCA,	in	certain	jurisdictions.	If	we	fail	to	comply with	any	applicable	regulations	or	guidelines	for	operations	of	a	data	services	provider,	we	could	be	subject	to	regulatory	actions	or	rating	changes,	may	not	meet contractual	obligations,	and	may	suffer	harm	to	our	client	relationships	or	reputation.	Failure	to	meet	the	aforementioned	requirements	or	to	adapt	to	new	requirements	at the	Federal,	State	or	international	level	could	inhibit	our	ability	to	retain	existing	clients	or	obtain	new	clients,	which	could	have	an	adverse	impact	on	our	business, results	of	operations	and	financial	condition.

In	addition	to	our	data	processing	services	described	above,	we	also	have	business	operations	that	store,	process	or	transmit	consumer	information	or	have	direct relationships	with	consumers	that	are	obligated	to	comply	with	regulations,	including,	but	not	limited	to,	the	Federal	Fair	Credit	Reporting	Act,	the	Federal	Fair	Debt Collection	Practices	Act	and	applicable	privacy	requirements.	Further,	our	international	businesses	must	comply	with	applicable	laws	such	as	the	U.S.	Foreign	Corrupt Practices	Act.	Failure	to	maintain	compliance	with	or	adapt	to	changes	in	any	of	the	aforementioned	requirements	could	result	in	fines,	penalties	or	regulatory	actions that	could	have	an	adverse	impact	on	our	business,	results	of	operations	and	financial	condition.

Security	breaches	or	attacks,	or	our	failure	to	comply	with	information	security	laws,	or	regulations	or	industry	security	requirements,	could	harm	our	business by	disrupting	our	delivery	of	services	and	damaging	our	reputation	and	could	result	in	a	breach	of	one	or	more	client	contracts.

We	electronically	receive,	process,	store	and	transmit	sensitive	business	information	of	our	clients.	In	addition,	we	collect	personal	consumer	data,	such	as	names and	addresses,	social	security	numbers,	driver's	license	numbers,	cardholder	data	and	payment	history	records.	Such	information	is	necessary	to	support	our	clients' transaction	processing	and	to	conduct	our	check	authorization	and	collection	businesses.	The	uninterrupted	operation	of	our	information	systems,	as	well	as	the confidentiality	of	the	customer/consumer	information	that	resides	on	such	systems,	is	critical	to	our	successful	operation.	If	we	fail	to	maintain	an	adequate	security infrastructure,	adapt	to	emerging	security	threats,	or	implement	sufficient	security	standards	and	technology	to	protect	against	security	breaches,	the	confidentiality	of	the information	we	secure	could	be	compromised.	Unauthorized	access	to	our	computer	systems	or	databases	could	result	in	the	theft	or	publication	of	confidential information,	the	deletion	or	modification	of	records,	or	could	otherwise	cause	interruptions	in	our	operations.	These	risks	are	greater	with	increased	information transmission	over	the	Internet	and	the	increasing	level	of	sophistication	posed	by	cyber	criminals.

As	a	provider	of	services	to	financial	institutions	and	a	provider	of	card	processing	services,	we	are	bound	by	the	same	limitations	on	disclosure	of	the	information we	receive	from	our	clients	as	apply	to	the	clients	themselves.	If	we	fail	to	comply	with	these	regulations	and	industry	security	requirements,	we	could	be	exposed	to suits	for	breach	of	contract,	governmental	proceedings,	and	the	imposition	of	fines,	or	prohibitions	on	card	processing	services.	In	addition,	if	more	restrictive	privacy laws,	rules	or	industry	security	requirements	are	adopted	in	the	future	on	the	Federal	or	State	level,	or	by	a	specific	industry	body,	they	could	have	an	adverse	impact	on us	through	increased	costs	or	restrictions	on	business	processes.	Any	inability	to	prevent	security	or	privacy	breaches,	or	the	perception	that	such	breaches	may	occur, could	cause	our	existing	clients	to	lose	confidence	in	our	systems	and	terminate	their	agreements	with	us,	inhibit	our	ability	to	attract	new	clients,	result	in	increasing regulation,	or	bring	about	other	adverse	consequences	from	the	government	agencies	that	regulate	our	business.

# High	profile	payment	card	industry	or	digital	banking	security	breaches	could	impact	consumer	payment	behavior	patterns	in	the	future	and	reduce	our	card payment	transaction	volumes.

We	are	unable	to	predict	whether	or	when	high	profile	card	payment	or	digital	banking	security	breaches	will	occur	and	if	they	occur,	whether	consumers	will transact	less	on	their	payment	cards	or	reduce	their	digital	banking	service.	If	consumers	transact	less	on	cards	issued	by	our	clients	or	reduce	digital	banking	services and	we	are	not	able	to	adapt	to	offer	our	clients	alternative	technologies,	it	could	have	a	significant	adverse	impact	on	our	revenue	and	related	earnings.

# Misappropriation	of	our	intellectual	property	and	proprietary	rights	or	a	finding	that	our	patents	are	invalid	could	impair	our	competitive	position.

Our	ability	to	compete	depends	in	some	part	upon	our	proprietary	solutions	and	technology.	Despite	our	efforts	to	protect	our	proprietary	rights,	unauthorized	parties may	attempt	to	copy	aspects	of	our	services	or	to	obtain	and	use	information	that	we	regard	as	proprietary	or	challenge	the	validity	of	our	patents	with	governmental authorities.	Policing	unauthorized	use	of	our	proprietary	rights	is	difficult.	We	cannot	make	any	assurances	that	the	steps	we	have	taken	will	prevent	misappropriation	of technology	or	that	the	agreements	entered	into	for	that	purpose	will	be	enforceable.	Effective	patent,	trademark,	service	mark,	copyright,	and	trade	secret	protection	may not	be	available	in	every	country	in	which	our	applications	and	services	are	made	available	online.	Misappropriation	of	our	intellectual	property	or	potential	litigation concerning	such	matters	could	have	an	adverse	effect	on	our	results	of	operations	or	financial	condition.

# If	our	applications	or	services	are	found	to	infringe	the	proprietary	rights	of	others,	we	may	be	required	to	change	our	business	practices	and	may	also	become subject	to	significant	costs	and	monetary	penalties.

As	our	information	technology	applications	and	services	develop,	we	are	increasingly	subject	to	infringement	claims.	Any	claims,	whether	with	or	without	merit, could:	(i)	be	expensive	and	time-consuming	to	defend;	(ii)	result	in	an	injunction	or	other	equitable	relief	which	could	cause	us	to	cease	making,	licensing	or	using applications	that	incorporate	the	challenged	intellectual	property;	(iii)	require	us	to	redesign	our	applications,	if	feasible;	(iv)	divert	management's	attention	and resources;	and	(v)	require	us	to	enter	into	royalty	or	licensing	agreements	in	order	to	obtain	the	right	to	use	necessary	technologies	or	pay	damages	resulting	from	any infringing	use.

# Some	of	our	solutions	contain	"open	source"	software,	and	any	failure	to	comply	with	the	terms	of	one	or	more	of	these	open	source	licenses	could	negatively affect	our	business.

We	use	a	limited	amount	of	software	licensed	by	its	authors	or	other	third	parties	under	so-called	"open	source"	licenses	and	may	continue	to	use	such	software	in the	future.	Some	of	these	licenses	contain	requirements	that	we	make	available	source	code	for	modifications	or	derivative	works	we	create	based	upon	the	open	source software,	and	that	we	license	such	modifications	or	derivative	works	under	the	terms	of	a	particular	open	source	license	or	other	license	granting	third	parties	certain rights	of	further	use.	By	the	terms	of	certain	open	source	licenses,	we	could	be	required	to	release	the	source	code	of	our

proprietary	software	if	we	combine	our	proprietary	software	with	open	source	software	in	a	certain	manner.	Additionally,	the	terms	of	many	open	source	licenses	have not	been	interpreted	by	United	States	or	other	courts,	and	there	is	a	risk	that	these	licenses	could	be	construed	in	a	manner	that	could	impose	unanticipated	conditions	or restrictions	on	our	ability	to	commercialize	our	solutions.	In	addition	to	risks	related	to	license	requirements,	usage	of	open	source	software	can	lead	to	greater	risks	than use	of	third-party	commercial	software,	as	open	source	licensors	generally	do	not	provide	warranties	or	controls	on	origin	of	the	software.	We	have	established	processes to	help	alleviate	these	risks,	including	a	review	process	for	screening	requests	from	our	development	organizations	for	the	use	of	open	source,	but	we	cannot	be	sure	that all	open	source	is	submitted	for	approval	prior	to	use	in	our	solutions.	In	addition,	many	of	the	risks	associated	with	usage	of	open	source	cannot	be	eliminated,	and could,	if	not	properly	addressed,	negatively	affect	our	business.

# We	face	liability	to	our	merchant	clients	if	checks	that	we	have	guaranteed	are	dishonored	by	the	check	writer's	bank.

If	checks	that	we	have	guaranteed	are	dishonored	by	the	check	writers'	banks,	we	must	reimburse	our	merchant	clients	for	the	checks'	face	value	and	pursue collection	from	the	check	writers.	In	some	cases,	we	recognize	a	liability	to	our	merchant	clients	for	estimated	check	returns	and	a	receivable	for	amounts	we	estimate we	will	recover	from	the	check	writers,	based	on	historical	experience	and	other	relevant	factors.	The	estimated	check	returns	and	recovery	amounts	are	subject	to	the risk	that	actual	amounts	returned	may	exceed	our	estimates	and	actual	amounts	recovered	by	us	may	be	less	than	our	estimates.	Changes	in	economic	conditions,	the risk	characteristics	and	composition	of	our	clients	and	other	factors	could	impact	our	actual	and	projected	amounts.

# Lack	of	system	integrity,	fraudulent	payments,	credit	quality,	and	undetected	errors	related	to	funds	settlement	or	the	availability	of	clearing	services	could	result in	a	financial	loss.

We	settle	funds	on	behalf	of	financial	institutions,	other	businesses	and	consumers	and	receive	funds	from	clients,	card	issuers,	payment	networks	and	consumers on	a	daily	basis	for	a	variety	of	transaction	types.	Transactions	facilitated	by	us	include	debit	card,	credit	card,	electronic	bill	payment	transactions,	banking	payments and	check	clearing	that	supports	consumers,	financial	institutions	and	other	businesses.	These	payment	activities	rely	upon	the	technology	infrastructure	that	facilitates the	verification	of	activity	with	counterparties,	the	facilitation	of	the	payment	as	well	as	the	detection	or	prevention	of	fraudulent	payments.	If	our	continuity	of operations,	integrity	of	processing,	or	ability	to	detect	or	prevent	fraudulent	payments	were	compromised,	this	could	result	in	a	financial	loss	to	us.	In	addition,	we	rely	on various	financial	institutions	to	provide	ACH	services	in	support	of	funds	settlement	for	certain	of	our	solutions.	If	we	are	unable	to	obtain	such	ACH	services	in	the future,	that	could	have	a	material	adverse	effect	on	our	business,	financial	position	and	results	of	operations.	In	addition,	we	may	issue	credit	to	consumers,	financial institutions	or	other	businesses	as	part	of	the	funds	settlement.	A	default	on	this	credit	by	a	counterparty	could	result	in	a	financial	loss	to	us.	Furthermore,	if	one	of	our clients	for	which	we	facilitate	settlement	suffers	a	fraudulent	event	due	to	an	error	of	their	controls,	we	may	suffer	a	financial	loss	if	the	client	does	not	have	sufficient capital	to	cover	the	loss.

# Failure	to	properly	manage	or	mitigate	risks	in	the	operation	of	our	wealth	management	businesses	in	the	U.S	and	the	U.K	could	have	adverse	liability consequences.

We	have	wealth	management	businesses	in	the	U.S.	and	U.K.	engaged	in	processing	securities	transactions	on	behalf	of	clients	and	serving	as	a	custodian.	Failure	to properly	manage	or	mitigate	risks	in	those	operations	and	increased	volatility	in	the	financial	markets	may	increase	the	potential	for	and	magnitude	of	resulting	losses, including	those	that	may	arise	from	human	errors	or	omissions,	defects	or	interruptions	in	computer	or	communications	systems	or		breakdowns	in	processes	or	in internal	controls.		Human	errors	or	omissions	may	include	failures	to	comply	with	applicable	laws	or	corporate	policies	and	procedures,	theft,	fraud	or	misappropriation of	assets,	whether	arising	from	the	intentional	actions	of	internal	personnel	or	external	third	parties.		In	addition,	the	U.S.-based	business	holds	charters	in	the	states	of Georgia	and	Delaware	which	exposes	us	to	further	regulatory	compliance	requirements	of	the	Georgia	Department	of	Banking	and	Finance	and	the	Office	of	the Commissioner	of	Banking	in	the	State	of	Delaware.	The	U.S.	wealth	management	business	is	required	to	hold	certain	levels	of	regulatory	capital	as	defined	by	the	state banking	regulators	in	the	states	in	which	they	hold	a	bank	or	trust	charter	(Delaware	and	Georgia).	In	the	U.K.,	our	Platform	Securities	and	broker	dealer	businesses	are regulated	by	the	FCA	and	are	subject	to	further	regulatory	capital	requirements.	We	also	have	registered	investment	advisor	and	transfer	agent	businesses	regulated	by the	SEC	and	subject	to	further	regulatory	requirements.

# Our	business	is	subject	to	the	risks	of	international	operations,	including	movements	in	foreign	currency	exchange	rates.

The	international	operations	of	FIS	represented	approximately	24%	of	our	total	2016	revenues,	and	are	largely	conducted	in	currencies	other	than	the	U.S.	Dollar,

including	the	Brazilian	Real,	British	Pound,	Euro	and	Indian	Rupee.	Our	business	and	financial	results	could	be	adversely	affected	due	to	a	variety	of	factors,	including:

•changes	in	a	specific	country	or	region's	political	and	cultural	climate	or	economic	condition,	including	change	in	governmental

regime;

•unexpected	or	unfavorable	changes	in	foreign	laws,	regulatory	requirements	and	related	interpretations;

•difficulty	of	effective	enforcement	of	contractual	provisions	in	local	jurisdictions;

•inadequate	intellectual	property	protection	in	foreign	countries;

•trade-protection	measures,	import	or	export	licensing	requirements	such	as	Export	Administration	Regulations	promulgated	by	the	U.S.	Department	of Commerce	and	fines,	penalties	or	suspension	or	revocation	of	export	privileges;

•trade	sanctions	imposed	by	the	United	States	or	other	governments	with	jurisdictional	authority	over	our	business operations;

•the	effects	of	applicable	and	potentially	adverse	foreign	tax	law changes;

•significant	adverse	changes	in	foreign	currency	exchange

rates;

•longer	accounts	receivable

•managing	a	geographically	dispersed	workforce;	and

•compliance	with	the	U.S.	Foreign	Corrupt	Practices	Act,	or	FCPA,	and	the	Office	of	Foreign

# Assets

Control	regulations,	particularly	in	emerging	markets.

In	foreign	countries,	particularly	in	those	with	developing	economies,	certain	business	practices	may	exist	that	are	prohibited	by	laws	and	regulations	applicable	to us,	such	as	the	U.S.	Foreign	Corrupt	Practices	Act,	the	U.K.	Bribery	Act	and	other	anti-corruption	laws.	Although	our	policies	and	procedures	require	compliance	with these	laws	and	are	designed	to	facilitate	compliance	with	these	laws,	our	employees,	contractors	and	agents	may	take	actions	in	violation	of	applicable	laws	or	our policies.	Any	such	violation,	even	if	prohibited	by	our	policies,	could	have	a	material	adverse	effect	on	our	business	and reputation.

As	we	expand	our	international	operations,	more	of	our	clients	may	pay	us	in	foreign	currencies.	Conducting	business	in	currencies	other	than	U.S.	Dollars	subjects us	to	fluctuations	in	currency	exchange	rates	that	can	negatively	impact	our	results,	period	to	period,	including	relative	to	analyst	estimates	or	guidance.	Our	primary exposure	to	movements	in	foreign	currency	exchange	rates	relates	to	foreign	currencies	in	Brazil,	Europe,	including	the	United	Kingdom,	Australia	and	parts	of	Asia. The	U.S.	Dollar	value	of	our	net	investments	in	foreign	operations,	the	periodic	conversion	of	foreign-denominated	earnings	to	the	U.S.	Dollar	(our	reporting	currency), and	our	results	of	operations	and,	in	some	cases,	cash	flows,	could	be	adversely	affected	in	a	material	manner	by	movements	in	foreign	currency	exchange	rates.	These risks	could	cause	an	adverse	effect	on	the	business,	financial	position	and	results	of	operations	of	the	Company.

# The	Referendum	on	the	United	Kingdom's	Membership	in	the	European	Union	could	cause	disruption	to	and	create	uncertainty	surrounding	our	business.

The	referendum	on	the	United	Kingdom's	(the	U.K.)	membership	in	the	European	Union	(the	E.U.)	(referred	to	as	"Brexit"),	approving	the	exit	of	the	United Kingdom	from	the	European	Union	could	cause	disruptions	to	and	create	uncertainty	surrounding	our	business,	including	affecting	our	relationships	with	our	existing and	future	clients,	suppliers	and	employees,	which	could	have	an	adverse	effect	on	our	business,	financial	results	and	operations.	While	the	referendum	is	non-binding, the	U.K.	Government	has	announced	that	it	intends	to	commence	negotiations	to	determine	the	future	terms	of	the	U.K.'s	relationship	with	the	E.U.,	including	the	terms of	trade	between	the	U.K.	and	the	E.U.	and	other	nations.	The	effects	of	Brexit	will	depend	on	any	agreements	the	U.K.	makes	to	retain	access	to	E.U.	markets	either during	a	transitional	period	or	more	permanently.	In	addition,	because	the	terms	of	trade	between	the	U.K.	and	jurisdictions	other	than	the	E.U.	may	be	currently governed	by	trade	agreements	between	the	E.U.	and	such	other	jurisdictions,	the	U.K.	may	be	required	to	negotiate	new	terms	of	trade	with	such	other	jurisdictions. These	potential	measures	could	disrupt	the	markets	we	serve	and	the	tax	jurisdictions	in	which	we	operate	and	adversely	change	tax	benefits	or	liabilities	in	these	or	other jurisdictions,	and	may	cause	us	to	lose	clients,	suppliers,	and	employees.	In	addition,	Brexit	could	lead	to	legal	uncertainty	and	potentially	divergent	national	laws	and regulations	as	the	U.K.	determines	which	E.U.	laws	to	replace	or	replicate.

The	announcement	of	Brexit	caused	initial	volatility	in	global	stock	markets	and	currency	exchange	rate	fluctuations	that	resulted	in	the	strengthening	of	the	U.S. dollar	against	foreign	currencies	in	which	we	conduct	business.	The	strengthening	of	the	U.S.	dollar	relative	to	other	currencies	may	adversely	affect	our	results	of operations,	in	a	number	of	ways,	including:

•Our	international	sales	are	denominated	in	both	the	U.S.	dollar	and	currencies	other	than	U.S.	dollars.	A	fluctuation	of	currency	exchange	rates	may	expose	us to	gains	and	losses	on	non-U.S.	currency	transactions	and	a	potential	devaluation	of	the	local	currencies	of	our	clients	relative	to	the	U.S.	dollar	may	impair	the purchasing	power	of	our	clients	and	could	cause	clients	to	decrease	or	cancel	orders	or	default	on	payment;	and

•We	translate	sales	and	other	results	denominated	in	non-U.S.	foreign	currency	into	U.S.	dollars	for	our	financial	statements.	During	periods	of	a	strengthening dollar,	our	reported	international	sales	and	earnings	could	be	reduced	because	foreign	currencies	may	translate	into	fewer	U.S.	dollars.

Actions	to	implement	Brexit	may	also	create	global	economic	uncertainty,	which	may	cause	our	clients	to	closely	monitor	their	costs	and	reduce	their	spending	on our	solutions	and	services.

Any	of	these	effects	of	Brexit,	among	others,	could	materially	adversely	affect	our	business,	business	opportunities,	results	of	operations,	financial	condition	and cash	flows.

# We	have	businesses	in	emerging	markets	that	may	experience	significant	economic	volatility.

We	have	operations	in	emerging	markets,	primarily	in	Brazil,	India,	Southeast	Asia,	the	Middle	East	and	Africa.	These	emerging	market	economies	tend	to	be	more volatile	than	the	more	established	markets	we	serve	in	North	America	and	Europe,	which	could	add	volatility	to	our	future	revenues	and	earnings.

# Failure	to	attract	and	retain	skilled	technical	employees	or	senior	management	personnel	could	harm	our	ability	to	grow.

Our	future	success	depends	upon	our	ability	to	attract	and	retain	highly-skilled	technical	personnel.	Because	the	development	of	our	solutions	and	services	requires knowledge	of	computer	hardware,	operating	system	software,	system	management	software	and	application	software,	our	technical	personnel	must	be	proficient	in	a number	of	disciplines.	Competition	for	such	technical	personnel	is	intense,	and	our	failure	to	hire	and	retain	talented	personnel	could	have	a	material	adverse	effect	on our	business,	operating	results	and	financial	condition.

Our	future	growth	will	also	require	sales	and	marketing,	financial	and	administrative	personnel	to	develop	and	support	new	solutions	and	services,	to	enhance	and support	current	solutions	and	services	and	to	expand	operational	and	financial	systems.	There	can	be	no	assurance	that	we	will	be	able	to	attract	and	retain	the	necessary personnel	to	accomplish	our	growth	strategies	and	we	may	experience	constraints	that	could	adversely	affect	our	ability	to	satisfy	client	demand	in	a	timely	fashion.

Our	ability	to	maintain	compliance	with	applicable	laws,	rules	and	regulations	and	to	manage	and	monitor	the	risks	facing	our	business	relies	upon	the	ability	to maintain	skilled	compliance,	security,	risk	and	audit	professionals.	Competition	for	such	skillsets	is	intense,	and	our	failure	to	hire	and	retain	talented	personnel	could have	an	adverse	effect	on	our	internal	control	environment	and	impact	our	operating	results.

Our	senior	management	team	has	significant	experience	in	the	financial	services	industry	and	the	loss	of	this	leadership	could	have	an	adverse	effect	on	our business,	operating	results	and	financial	condition.	Further,	the	loss	of	this	leadership	may	have	an	adverse	impact	on	senior	management's	ability	to	provide	effective oversight	and	strategic	direction	for	all	key	functions	within	the	Company,	which	could	impact	our	future	business,	operating	results	and	financial	condition.

# We	are	the	subject	of	various	legal	proceedings	that	could	have	a	material	adverse	effect	on	our	revenue	and	profitability.

We	are	involved	in	various	litigation	matters,	including	in	some	cases	class-action	and	patent	infringement	litigation.	If	we	are	unsuccessful	in	our	defense	of litigation	matters,	we	may	be	forced	to	pay	damages	and/or	change	our	business	practices,	any	of	which	could	have	a	material	adverse	effect	on	our	business	and	results of	operations.

# Unfavorable	resolution	of	tax	contingencies	or	unfavorable	future	tax	law	changes	could	adversely	affect	our	tax	expense.

Our	tax	returns	and	positions	are	subject	to	review	and	audit	by	Federal,	state,	local	and	international	taxing	authorities.	An	unfavorable	outcome	to	a	tax	audit	could result	in	higher	tax	expense,	and	could	negatively	impact	our	effective	tax	rate,	financial	position,	results	of	operations	and	cash	flows	in	the	current	and/or	future periods.	Unfavorable	future	tax	law	changes	could	also	result	in	these	negative	impacts.	In	addition,	tax-law	amendments	in	the	United	States	and	other	jurisdictions could	significantly	impact	how	United	States	multinational	corporations	are	taxed.	Although	we	cannot	predict	whether	or	in	what	form	such	legislation	will	pass,	if enacted	it	could	have	a	material	adverse	effect	on	our	business	and	financial	results.

# A	material	weakness	in	our	internal	controls	could	have	a	material	adverse	effect	on	us.

Effective	internal	controls	are	necessary	for	us	to	provide	reasonable	assurance	with	respect	to	our	financial	reports	and	to	adequately	mitigate	risk	of	fraud.	If	we cannot	provide	reasonable	assurance	with	respect	to	our	financial	reports	and	adequately	mitigate	risk	of	fraud,	our	reputation	and	operating	results	could	be	harmed. Internal	control	over	financial	reporting	may	not	prevent	or	detect	misstatements	because	of	its	inherent	limitations,	including	the	possibility	of	human	error,	the circumvention	or	overriding	of	controls,	or	fraud.	Therefore,	even	effective	internal	controls	can	provide	only	reasonable	assurance	with	respect	to	the	preparation	and fair	presentation	of	financial	statements.	In	addition,	projections	of	any	evaluation	of	effectiveness	of	internal	control	over	financial	reporting	to	future	periods	are subject	to	the	risk	that	the	control	may	become	inadequate	because	of	changes	in	conditions,	or	that	the	degree	of	compliance	with	the	policies	or	procedures	may deteriorate.

A	material	weakness	is	a	deficiency,	or	combination	of	deficiencies,	in	internal	control	over	financial	reporting,	such	that	there	is	a	reasonable	possibility	that	a material	misstatement	of	the	Company's	annual	or	interim	financial	statements	will	not	be	prevented	or	detected	on	a	timely	basis.	A	material	weakness	in	our	internal control	over	financial	reporting	could	adversely	impact	our	ability	to	provide	timely	and	accurate	financial	information.	If	we	are	unable	to	report	financial	information timely	and	accurately	or	to	maintain	effective	disclosure	controls	and	procedures,	we	could	be	subject	to,	among	other	things,	regulatory	or	enforcement	actions	by	the SEC,	any	one	of	which	could	adversely	affect	our	business	prospects.

# Risks	Related	to	Business	Combinations	and	Ventures

# We	continue	to	incur	substantial	expenses	related	to	the	SunGard	acquisition,	which	was	completed	on	November	30,	2015,	and	the	integration	of	SunGard.

We	continue	to	incur	substantial	expenses	in	connection	with	the	integration	of	SunGard.	We	continue	to	integrate	a	large	number	of	processes,	policies,	procedures, operations,	technologies	and	systems,	including	information	technology,	data	centers,	purchasing,	accounting	and	finance,	sales,	billing,	information	security,	risk,	legal, marketing	and	human	resources,	including	payroll	and	employee	benefits.	While	we	have	attempted	to	estimate	the	after-tax	integration	and	restructuring	costs	and	other costs	incurred	to	execute	the	transaction	following	completion	of	the	SunGard	acquisition,	many	of	the	expenses	that	will	be	incurred	are,	by	their	nature,	difficult	to estimate	accurately.	Although	we	expect	that	the	realization	of	efficiencies	related	to	the	integration	of	the	businesses	will	offset	incremental	transaction,	merger-related and	restructuring	costs	over	time,	we	cannot	give	any	assurance	that	this	net	benefit	will	be	achieved	in	the	near	term,	or	at	all.

# There	could	be	significant	liability	for	us	if	all	or	part	of	the	AS	Split-Off	were	determined	to	be	taxable	for	U.S.	federal	or	state	income	tax	purposes.

On	March	31,	2014,	SunGard	completed	the	split-off	of	its	Availability	Services	("AS")	business	to	its	existing	stockholders,	including	its	private	equity	owners,	on a	tax-free	and	pro-rata	basis	(the	"AS	Split-Off").	At	the	time	SunGard	received	opinions	from	outside	tax	counsel	to	the	effect	that	the	AS	Split-Off	should	qualify	for tax-free	treatment	as	transactions	described	in	Section	355	and	related	provisions	of	the	Internal	Revenue	Code,	as	amended	(the	"Code").	In	addition,	actions	taken following	the	AS	Split-Off,	including	the	SunGard	acquisition	and	certain	50	percent	or	greater	changes	by	vote	or	value	of	the	stock	ownership	of	the	new	entity conducting	the	AS	business,	may	cause	the	AS	Split-Off	to	be	taxable	to	FIS.	In	connection	with	the	SunGard	acquisition,	we	and	SunGard	received	opinions	of	outside tax	counsel	to	the	effect	that	the	SunGard	acquisition	should	not	cause	the	AS	Split-off	to	fail	to	so	qualify.

Notwithstanding	the	receipt	of	tax	opinions,	the	tax-free	treatment	of	the	AS	Split-off	is	not	free	from	doubt,	and	there	is	a	risk	that	the	Internal	Revenue	Service (the	"IRS"),	a	state	taxing	authority	or	a	court	could	conclude	to	the	contrary	that	the	separation	of	the	AS	business	from	SunGard	may	not	qualify	as	tax-free transactions.	An	opinion	of	tax	counsel	is	not	binding	on	the	IRS,	state	taxing	authorities	or	any	court	and	as	a	result	there	can	be	no	assurance	that	a	tax	authority	will not	challenge	the	tax-free	treatment	of	all	or	part	of	the	AS	Split-Off	or	that,	if	litigated,	a	court	would	not	agree	with	the	IRS	or	a	state	taxing	authority.	Further,	these tax	opinions	rely	on	certain	facts,	assumptions,	representations,	warranties	and	covenants	from	SunGard,	the	new	entity	conducting	the	AS	business	and	from	some	of SunGard's	 stockholders	 regarding	 the	 past	 and	 future	 conduct	 of	 the	 companies'	 respective	 businesses,	 share	 ownership	 and	 other	 matters.	 If	 any	 of	 the	 facts, assumptions,	representations,	warranties	and	covenants	on	which	the	opinions	rely	is	inaccurate	or	incomplete	or	not	satisfied,	the	opinions	may	no	longer	be	valid. Moreover,	the	IRS	or	state	taxing	authority	could	determine	on	audit	that	the	AS	Split-Off	is	taxable	if	it	determines	that	any	of	these	facts,	assumptions,	representations, warranties	or	covenants	are	not	correct	or	have	been	violated	or	if	it	disagrees	with	one	or	more	conclusions	in	the	opinions	or	for	other	reasons.

If	the	AS	Split-Off	is	determined	to	be	taxable,	we	and	possibly	our	stockholders	could	incur	significant	income	tax	liabilities.	These	tax	liabilities	could	have	a material	adverse	effect	on	our	business,	financial	condition,	results	of	operations	and	cash	flows.

# Actions	taken	by	Sungard	Availability	Services	Capital,	Inc.	or	its	stockholders	could	cause	the	AS	Split-Off	to	fail	to	qualify	as	a	tax-free	transaction,	and Sungard	Availability	Services	Capital,	Inc.	may	be	unable	to	fully	indemnify	SunGard	for	the	resulting	significant	tax	liabilities.

Pursuant	to	the	Tax	Sharing	and	Disaffiliation	Agreement	("Tax	Sharing	Agreement")	that	SunGard	entered	into	with	Sungard	Availability	Services	Capital,	Inc. ("SpinCo"),	SpinCo	is	required	to	indemnify	SunGard	for	certain	taxes	relating	to	the	AS	Split-Off	that	result	from	(i)	any	breach	of	the	representations	or	the	covenants made	by	SpinCo	regarding	the	preservation	of	the	intended	tax-free	treatment	of	the	AS	Split-Off,	(ii)	any	action	or	omission	that	is	inconsistent	with	the	representations, statements,	warranties	and	covenants	provided	to	tax	counsel	in	connection	with	their	delivery	of	tax	opinions	to	SunGard	with	respect	to	the	AS	Split-Off,	and	(iii)	any other	action	or	omission	that	was	likely	to	give	rise	to	such	taxes	when	taken,	in	each	case,	by	SpinCo	or	any	of	its	subsidiaries.	Conversely,	if	any	such	taxes	are	the result	of	such	a	breach	or	certain	other	actions	or	omissions	by	SunGard,	SunGard	would	be	wholly	responsible	for	such	taxes.	In	addition,	if	any	part	of	the	AS	Split-Off fails	to	qualify	for	the	intended	tax-free	treatment	for	reasons	other	than	those	for	which	SunGard	or	SpinCo	would	be	wholly	responsible	pursuant	to	the	provisions described	above,	SpinCo	will	be	obligated	to	indemnify	SunGard	for	23%	of	the	liability	for	taxes	imposed	in	respect	of	the	AS	Split-Off	and	SunGard	would	bear	the remainder	of	such	taxes.	If	SpinCo	is	required	to	indemnify	SunGard	for	any	of	the	foregoing	reasons,	SpinCo's	indemnification	liabilities	could	potentially	exceed	its net	asset	value	and	SpinCo	may	be	unable	to	fully	reimburse	or	indemnify	SunGard	for	its	significant	tax	liabilities	arising	from	the	AS	Split-Off	as	provided	by	the	Tax Sharing	Agreement.

# We	have	a	substantial	investment	in	our	Brazilian	Venture	and	obtain	significant	revenue	through	that	venture	that	would	be	lost	and	result	in	significant termination	costs	if	our	venture	partner	were	to	terminate	the	agreement.

Brazilian	Venture	revenue	attributable	to	our	Brazilian	Venture	partner,	Banco	Bradesco,	was	$245	million	in	2016.	The	contract	that	we	have	with	our	Brazilian Venture	partner	allows	for	the	termination	or	partial	termination	of	the	contract	at	any	point	during	the	10-year	term,	which	ends	September	30,	2020.	This	risk	of contract	termination	is	reduced	by	guaranteed	performance	targets	and	minimum	payments	that	would	be	triggered	upon	the	event	of	an	early	termination.	These payments	have	been	established	based	on	FIS'	expected	rate	of	return	for	the	contract	over	a	10-year	period.	The	required	payments	and	buyouts	decline	each	year	and are	further	reduced	by	returns	in	excess	of	the	expected	returns	for	the	contract	and	reduce	the	overall	barrier	to	exiting	the	venture.	If	our	partner	were	to	exit	the agreement,	this	could	have	a	significant	impact	on	our	future	revenue	and	growth.	For	further	detail	on	our	Brazilian	Venture	see	Note	17	to	the	Consolidated	Financial Statements.

Additionally,	we	employ	approximately	10,000	employees	in	Brazil	who	would	have	the	ability	to	file	labor	claims	if	their	employment	is	terminated.	If	our Brazilian	Venture	partner	were	to	terminate	the	agreement,	we,	and	they,	may	be	subject	to	labor	claims	filed	by	employees	of	the	Brazilian	Venture.	These	claims,	if realized,	could	result	in	a	significant	cost	and	impact	to	our	earnings.

# We	have	substantial	investments	in	recorded	goodwill	and	other	intangible	assets	as	a	result	of	prior	acquisitions,	and	a	severe	or	extended	economic	downturn could	cause	these	investments	to	become	impaired,	requiring	write-downs	that	would	reduce	our	operating	income.

As	of	December	31,	2016,	goodwill	aggregated	to	$14.2	billion,	or	54.5%	of	total	assets,	and	other	indefinite-lived	intangible	assets	aggregated	to	$80	million,	or 0.3%	of	total	assets.	Current	accounting	rules	require	goodwill	and	other	indefinite-lived	intangible	assets	to	be	assessed	for	impairment	at	least	annually	or	whenever changes	in	circumstances	indicate	potential	impairment.	Factors	that	may	be	considered	a	change	in	circumstance	include	significant	underperformance	relative	to historical	or	projected	future	operating	results,	a	significant	decline	in	our	stock	price	and	market	capitalization,	and	negative	industry	or	economic	trends.	The	results	of our	2016	annual	assessment	of	the	recoverability	of	goodwill	indicated	that	the	fair	values	of	the	Company's	reporting	units	were	in	excess	of	the	carrying	values	of those	reporting	units,	and	thus	no	goodwill	impairment	existed	as	of	December	31,	2016.	Likewise,	the	fair	value	of	indefinite-lived	intangible	assets	was	also	in	excess of	the	carrying	value	of	those	assets	as	of	December	31,	2016.	However,	if	worldwide	or	United	States	economic	conditions	decline	significantly	with	negative	impacts to	bank	spending	and	consumer	behavior,	or	if	other	business	or	market	changes	impact	our	outlook,	the	carrying	amount	of	our	goodwill	and	other	indefinite-lived intangible	assets	may	no	longer	be	recoverable	and	we	may	be	required	to	record	an	impairment	charge,	which	would	have	a	negative	impact	on	our	results	of operations	and	financial	condition.

As	of	December	31,	2016,	intangible	assets	with	finite	useful	lives	aggregated	to	$4,584	million,	or	17.6%	of	total	assets.	Current	accounting	rules	require intangible	assets	with	finite	useful	lives	to	be	reviewed	for	impairment	whenever	events	or	changes	in	circumstances	indicate	that	the	carrying	amount	of	an	asset	may not	be	recoverable.	Factors	that	may	be	considered

a	change	in	circumstance	include	significant	under-performance	relative	to	historical	or	projected	future	operating	results,	a	significant	decline	in	our	stock	price	and market	capitalization,	and	negative	industry	or	economic	trends.

We	will	continue	to	monitor	the	fair	value	of	our	intangible	assets	as	well	as	our	market	capitalization	and	the	impact	of	any	economic	downturn	on	our	business	to determine	if	there	is	an	impairment	in	future	periods.

# Risks	Related	to	our	Indebtedness

# Our	existing	debt	levels	and	future	levels	under	existing	facilities	and	debt	service	requirements	may	adversely	affect	our	financial	condition	or	operational flexibility	and	prevent	us	from	fulfilling	our	obligations	under	our	outstanding	indebtedness.

As	of	December	31,	2016,	we	had	total	debt	of	approximately	$10.5	billion.	This	level	of	debt	or	any	increase	in	our	debt	level	could	have	adverse	consequences	for our	business,	financial	condition,	operating	results	and	operational	flexibility,	including	the	following:	(i)	the	debt	level	may	cause	us	to	have	difficulty	borrowing money	in	the	future	for	working	capital,	capital	expenditures,	acquisitions	or	other	purposes;	(ii)	our	debt	level	may	limit	operational	flexibility	and	our	ability	to	pursue business	opportunities	and	implement	certain	business	strategies;	(iii)	some	of	our	debt	has	a	variable	rate	of	interest,	which	exposes	us	to	the	risk	of	increased	interest rates;	(iv)	we	have	a	higher	level	of	debt	than	some	of	our	competitors	or	potential	competitors,	which	may	cause	a	competitive	disadvantage	and	may	reduce	flexibility in	responding	to	changing	business	and	economic	conditions,	including	increased	competition	and	vulnerability	to	general	adverse	economic	and	industry	conditions;	(v) there	are	significant	maturities	on	our	debt	that	we	may	not	be	able	to	repay	at	maturity	or	that	may	be	refinanced	at	higher	rates;	and	(vi)	if	we	fail	to	satisfy	our obligations	under	our	outstanding	debt	or	fail	to	comply	with	the	financial	or	other	restrictive	covenants	contained	in	the	indenture	governing	our	senior	notes,	or	our credit	facility,	an	event	of	default	could	result	that	could	cause	all	of	our	debt	to	become	due	and	payable.

# Statement	Regarding	Forward-Looking	Information

The	statements	contained	in	this	Form	10-K	or	in	our	other	documents	or	in	oral	presentations	or	other	statements	made	by	our	management	that	are	not	purely historical	are	forward-looking	statements	within	the	meaning	of	the	U.S.	federal	securities	laws.	Statements	that	are	not	historical	facts,	including	statements	about anticipated	financial	outcomes,	including	any	earnings	guidance	of	the	Company,	business	and	market	conditions,	outlook,	foreign	currency	exchange	rates,	expected dividends	and	share	repurchases,	the	Company's	sales	pipeline	and	anticipated	profitability	and	growth,	as	well	as	other	statements	about	our	expectations,	hopes, intentions,	or	strategies	regarding	the	future	are	forward-looking	statements.	These	statements	relate	to	future	events	and	our	future	results	and	involve	a	number	of	risks and	uncertainties.	Forward-looking	statements	are	based	on	management's	beliefs,	as	well	as	assumptions	made	by,	and	information	currently	available	to,	management. Any	statements	that	refer	to	beliefs,	expectations,	projections	or	other	characterizations	of	future	events	or	circumstances	and	other	statements	that	are	not	historical	facts are	forward-looking	statements.	In	many	cases,	you	can	identify	forward-looking	statements	by	terminology	such	as	"may,"	"will,"	"should,"	"expect,"	"plan,"

"anticipate,"	"believe,"	"estimate,"	"predict,"	"potential,"	or	"continue,"	or	the	negative	of	these	terms	and	other	comparable	terminology.	Actual	results,	performance	or achievement	could	differ	materially	from	those	contained	in	these	forward-looking	statements.	The	risks	and	uncertainties	that	forward-looking	statements	are	subject	to include	without	limitation:

•the	risk	that	acquired	businesses	will	not	be	integrated	successfully,	or	that	the	integration	will	be	more	costly	or	more	time-consuming	and	complex	than anticipated;

•the	risk	that	cost	savings	and	other	synergies	anticipated	to	be	realized	from	acquisitions	may	not	be	fully	realized	or	may	take	longer	to	realize	than expected;

•the	risks	of	doing	business

internationally;

•changes	in	general	economic,	business	and	political	conditions,	including	the	possibility	of	intensified	international	hostilities,	acts	of	terrorism,	changes	in either	or	both	the	United	States	and	international	lending,	capital	and	financial	markets	and	currency	fluctuations;

•the	effect	of	legislative	initiatives	or	proposals,	statutory	changes,	governmental	or	other	applicable	regulations	and/or	changes	in	industry	requirements, including	privacy	regulations;

•the	risks	of	reduction	in	revenue	from	the	elimination	of	existing	and	potential	customers	due	to	consolidation	in,	or	new	laws	or	regulations	affecting,	the banking,	retail	and	financial	services	industries	or	due	to	financial	failures	or	other	setbacks	suffered	by	firms	in	those	industries;

•changes	in	the	growth	rates	of	the	markets	for	our

•failure	to	adapt	our	solutions	to	changes	in	technology	or	in	the

marketplace;

•internal	or	external	security	breaches	of	our	systems,	including	those	relating	to	unauthorized	access,	theft,	corruption	or	loss	of	personal	information	and computer	viruses	and	other	malware	affecting	our	software	or	platforms,	and	the	reactions	of	customers,	card	associations,	government	regulators	and	others	to any	such	events;

•the	risk	that	implementation	of	software	(including	software	updates)	for	customers	or	at	customer	locations	may	result	in	the	corruption	or	loss	of	data	or customer	information,	interruption	of	business	operations,	exposure	to	liability	claims	or	loss	of	customers;

•the	reaction	of	current	and	potential	customers	to	communications	from	us	or	regulators	regarding	information	security,	risk	management,	internal	audit	or other	matters;

•competitive	pressures	on	pricing	related	to	the	decreasing	number	of	community	banks	in	the	U.S.,	the	development	of	new	disruptive	technologies	competing with	one	or	more	of	our	solutions,	increasing	presence	of	international	competitors	in	the	U.S.	market	and	the	entry	into	the	market	by	global	banks	and	global companies	with	respect	to	certain	competitive	solutions,	each	of	which	may	have	the	impact	of	unbundling	our	solutions	with	our	customers;

•the	failure	to	innovate	in	order	to	keep	up	with	new	emerging	technologies	could	impact	our	solutions,	including	the	ability	to	attract	new,	or	retain	existing, customers;

•an	operational	or	natural	disaster	at	one	of	our	major	operations	centers;

•other	risks	detailed	elsewhere	in	this	Risk	Factors	section	and	in	our	other	filings	with	the	Securities	and	Exchange

Commission.

Other	unknown	or	unpredictable	factors	also	could	have	a	material	adverse	effect	on	our	business,	financial	condition,	results	of	operations	and	prospects.

Accordingly,	readers	should	not	place	undue	reliance	on	these	forward-looking	statements.	These	forward-looking	statements	are	inherently	subject	to	uncertainties, risks	and	changes	in	circumstances	that	are	difficult	to	predict.	Except	as	required	by	applicable	law	or	regulation,	we	do	not	undertake	(and	expressly	disclaim)	any obligation	and	do	not	intend	to	publicly	update	or	review	any	of	these	forward-looking	statements,	whether	as	a	result	of	new	information,	future	events	or	otherwise. You	should	carefully	consider	the	possibility	that	actual	results	may	differ	materially	from	our	forward-looking	statements.

# Item	1B. Unresolved	Staff	Comments

# None.

# Item	2. Properties

FIS'	corporate	headquarters	is	located	at	601	Riverside	Avenue,	Jacksonville,	Florida.	In	addition,	FIS	owns	or	leases	support	centers,	data	processing	facilities	and other	facilities	at	approximately	210	locations.	We	believe	our	facilities	and	equipment	are	generally	well	maintained	and	are	in	good	operating	condition.	We	believe that	the	computer	equipment	that	we	own	and	our	various	facilities	are	adequate	for	our	present	and	foreseeable	business	needs.

# Item	3. Legal	Proceedings

In	the	ordinary	course	of	business,	the	Company	is	involved	in	various	pending	and	threatened	litigation	matters	related	to	operations,	some	of	which	include	claims for	punitive	or	exemplary	damages.	The	Company	believes	no	actions,	other	than	the	matters	listed	below,	depart	from	customary	litigation	incidental	to	its	business.	As background	to	the	disclosure	below,	please	note	the	following:

•These	matters	raise	difficult	and	complicated	factual	and	legal	issues	and	are	subject	to	many	uncertainties	and complexities.

•The	Company	reviews	all	of	its	litigation	on	an	on-going	basis	and	follows	the	authoritative	provisions	for	accounting	for	contingencies	when	making	accrual and	disclosure	decisions.	A	liability	must	be	accrued	if	(a)	it	is	probable	that	a	liability	has	been	incurred	and	(b)	the	amount	of	loss	can	be	reasonably estimated.	If	one	of	these	criteria	has	not	been	met,	disclosure	is	required	when	there	is	at	least	a	reasonable	possibility	that	a	material	loss	may	be	incurred. When	assessing	reasonably	possible	and	probable	outcomes,	the	Company	bases	decisions	on	the	assessment	of	the	ultimate	outcome	following	all	appeals. Legal	fees	associated	with	defending	litigation	matters	are	expensed	as	incurred.

# DataTreasury	Corporation	v.	Fidelity	National	Information	Services,	Inc.	et.	al.

On	May	28,	2013,	DataTreasury	Corporation	(the	"Plaintiff")	filed	a	patent	infringement	lawsuit	against	the	Company	and	multiple	banks	in	the	U.S.	District	Court for	the	Eastern	District	of	Texas,	Marshall	Division.		Plaintiff	alleges	that	the	Company	infringes	the	patents	at	issue	by	making,	using,	selling	or	offering	to	sell	systems and	methods	for	image-based	check

processing.	The	Plaintiff	seeks	damages,	injunctive	relief	and	attorneys'	fees	for	the	alleged	infringement	of	two	patents.		On	October	25,	2013,	the	Company	filed	for covered	business	method	("CBM")	post-grant	reviews	of	the	validity	of	the	Plaintiff's	asserted	patents	at	the	U.S.	Patent	and	Trademark	Office	("USPTO").		The Company	filed	a	Motion	to	Stay	the	case	pending	the	outcome	of	the	CBM	post-grant	reviews.	On	April	29,	2014,	the	USPTO	instituted	the	Company's	two	CBM petitions.	On	August	14,	2014,	the	Court	granted	the	Company's	Motion	to	Stay	the	litigation	pending	the	outcome	of	the	CBM	review	proceedings.	On	April	29,	2015, the	Patent	Trial	and	Appeal	Board	("PTAB")	issued	final	written	decisions	on	the	Company's	two	CBM	petitions	holding	that	all	claims	of	the	Plaintiff's	two	patents	are unpatentable	("Final	Written	Decisions").	On	August	27,	2015,	the	Plaintiff	filed	a	notice	of	appeal	to	the	U.S.	Court	of	Appeals	for	the	Federal	Circuit	of	the	USPTO's Final	Written	Decisions.	On	October	13,	2016,	the	Federal	Circuit	affirmed	the	USPTO's	Final	Written	Decisions	finding	the	Plaintiff's	two	patents	to	be	unpatentable. On	January	11,	2017,	the	Plaintiff	filed	a	petition	for	certiorari	to	the	Supreme	Court	of	the	United	States	seeking	to	appeal	certain	findings	of	the	Federal	Circuit.

# Indemnifications	and	Warranties

The	Company	generally	indemnifies	its	clients,	subject	to	certain	limitations	and	exceptions,	against	damages	and	costs	resulting	from	claims	of	patent,	copyright, or	trademark	infringement	associated	solely	with	its	customers'	use	of	the	Company's	software	applications	or	services.	Historically,	the	Company	has	not	made	any material	payments	under	such	indemnifications,	but	continues	to	monitor	the	conditions	that	are	subject	to	the	indemnifications	to	identify	whether	it	is	probable	that	a loss	has	occurred,	and	would	recognize	any	such	losses	when	they	are	estimable.	In	addition,	the	Company	warrants	to	customers	that	its	software	operates	substantially in	accordance	with	the	software	specifications.	Historically,	no	material	costs	have	been	incurred	related	to	software	warranties	and	no	accruals	for	warranty	costs	have been	made.

# Item	4. Mine	Safety	Disclosures

# Not	applicable.

PART	II

# Item	5. Market	for	Registrant's	Common	Equity,	Related	Stockholder	Matters	and	Issuer	Purchases	of	Equity Securities

Our	common	stock	trades	on	the	New	York	Stock	Exchange	under	the	ticker	symbol	"FIS".	The	table	set	forth	below	provides	the	high	and	low	closing	sales	prices of	the	common	stock	and	the	cash	dividends	declared	per	share	of	common	stock	for	each	quarter	of	2016	and	2015.

|  | High | Low | Dividend |
| :--- | :--- | :--- | :--- |
| 2016 |  |  |  |
| First\tQuarter | $63.31 | $56.04 | $0.26 |
| Second\tQuarter | $75.45 | $63.44 | $0.26 |
| Third\tQuarter | $80.84 | $74.25 | $0.26 |
| Fourth\tQuarter | $79.00 | $73.92 | $0.26 |
| 2015 |  |  |  |
| First\tQuarter | $68.68 | $61.25 | $0.26 |
| Second\tQuarter | $68.51 | $61.78 | $0.26 |
| Third\tQuarter | $71.86 | $61.58 | $0.26 |
| Fourth\tQuarter | $73.50 | $58.52 | $0.26 |

As	of	January	31,	2017,	there	were	approximately	11,209	shareholders	of	record	of	our	common	stock.

We	currently	expect	to	continue	to	pay	quarterly	dividends.	However,	the	amount,	declaration	and	payment	of	future	dividends	is	at	the	discretion	of	the	Board	of Directors	and	depends	on,	among	other	things,	our	investment	opportunities,	results	of	operations,	financial	condition,	cash	requirements,	future	prospects,	and	other factors	that	may	be	considered	relevant	by	our	Board	of	Directors,	including	legal	and	contractual	restrictions.	A	regular	quarterly	dividend	of	$0.29	per	common	share is	payable	on	March	31,	2017,	to	shareholders	of	record	as	of	the	close	of	business	on	March	17,	2017.

Item	12	of	Part	III	contains	information	concerning	securities	authorized	for	issuance	under	our	equity	compensation	plans.

Our	Board	of	Directors	has	approved	a	series	of	plans	authorizing	repurchases	of	our	common	stock	in	the	open	market	at	prevailing	market	prices	or	in	privately negotiated	transactions,	the	most	recent	of	which	was	on	January	29,	2014.	The	current	plan	authorized	repurchases	of	up	to	$2,000	million	through	December	31,	2017. This	share	repurchase	authorization	replaced	any	existing	share	repurchase	authorization	plan.	Approximately	$1,224	million	of	plan	capacity	remained	available	for repurchases	as	of	December	31,	2016.

The	table	below	summarizes	annual	share	repurchase	activity	under	these	plans	(in	millions,	except	per	share	amounts):

|  |  |  | Total	cost	of	shares |
| :--- | :--- | :--- | :--- |
|  |  |  | purchased\tas\tpart\tof |
|  | Total\tnumber\tof | Average\tprice | publicly\tannounced |
| Year\tended | shares\tpurchased | paid\tper\tshare | plans\tor\tprograms |
| December\t31,\t2016 | — \t $ | — \t $ | — |
| December\t31,\t2015 | 5 | \t $66.10 | \t $300 |
| December\t31,\t2014 | 9 | \t $54.89 | \t $476 |

There	were	no	share	repurchases	in	2016.

# Stock	Performance	Graph

The	graph	below	matches	Fidelity	National	Information	Services,	Inc.'s	cumulative	5-year	total	shareholder	return	on	common	stock	with	the	cumulative	total returns	of	the	S&P	500	index	and	the	S&P	Supercap	Data	Processing	&	Outsourced	Services	index.	The	graph	tracks	the	performance	of	a	$100	investment	in	our common	stock	and	in	each	index	(with	the	reinvestment	of	all	dividends)	from	December	31,	2011	to	December	31,	2016.

# stockperformancegraph2016f.jpg

|  | 12/11 | 12/12 | 12/13 | 12/14 | 12/15 | 12/16 |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Fidelity\tNational\tInformation\tServices,\tInc. | 100.00 | 134.12 | 210.97 | 248.68 | 246.21 | 311.81 |
| S&P\t500 | 100.00 | 116.00 | 153.58 | 174.60 | 177.01 | 198.18 |
| S&P\tSupercap\tData\tProcessing\t&\tOutsourced\tServices | 100.00 | 126.06 | 194.91 | 218.05 | 247.68 | 267.14 |

The	stock	price	performance	included	in	this	graph	is	not	necessarily	indicative	of	future	stock	price	performance.

# Item	6. Selected	Financial	Data

The	selected	financial	data	set	forth	below	constitutes	historical	financial	data	of	FIS	and	should	be	read	in	conjunction	with	"Item	7,	Management's	Discussion	and Analysis	of	Financial	Condition	and	Results	of	Operations,"	and	"Item	8,	Financial	Statements	and	Supplementary	Data,"	included	elsewhere	in	this	report.

On	February	1,	2017,	we	completed	the	sale	of	the	SunGard	Public	Sector	and	Education	("PS&E")	businesses	for	$850	million,	resulting	in	an	expected	pre-tax gain	ranging	from	$85-$90	million	that	will	be	recognized	in	the	first	quarter	of	2017.	The	transaction	included	all	PS&E	solutions,	which	provide	a	comprehensive	set of	technology	solutions	to	address	public	safety	and	public	administration	needs	of	government	entities	as	well	as	the	needs	of	K-12	school	districts.	We	received	cash proceeds,	net	of	taxes	and	transaction-related	expenses,	of	approximately	$500	million.	The	sale	did	not	meet	the	standard	necessary	to	be	reported	as	discontinued operations;	therefore,	the	pre-tax	gain	and	related	prior	period	earnings	remain	reported	within	earnings	from	continuing	operations.

On	November	30,	2015,	we	completed	the	SunGard	acquisition.	The	results	of	operations	and	financial	position	of	SunGard	are	included	in	the	Consolidated Financial	Statements	since	the	date	of	acquisition.

During	the	second	quarter	of	2015,	we	sold	certain	assets	associated	with	our	gaming	industry	check	warranty	business,	resulting	in	a	pre-tax	gain	of	$139	million, which	is	included	in	Other	income	(expense),	net.	The	sale	did	not	meet	the	standard	necessary	to	be	reported	as	discontinued	operations;	therefore,	the	gain	and	related prior	period	earnings	remain	reported	within	earnings	from	continuing	operations.

The	purchase	price	for	our	2010	acquisition	of	Capco	included	future	contingent	consideration	in	addition	to	cash	paid	at	closing.	The	liability	for	the	earn-out provisions	and	for	an	employee	incentive	plan	established	in	conjunction	with	the	acquisition	were	adjusted	in	2013	as	a	result	of	amendments	based	on	management's outlook	and	increased	projections	of	Capco's	future	results	as	addressed	in	Note	3	of	the	Notes	to	Consolidated	Financial	Statements.

As	discussed	in	Note	15	of	the	Notes	to	Consolidated	Financial	Statements,	we	have	sold	a	number	of	businesses	and	certain	of	those	businesses	have	been classified	as	discontinued	for	all	periods	presented.	The	most	significant	divestiture	during	this	five	year	period	was	our	Healthcare	Benefit	Solutions	Business	in	2012.

| Processing	and	services	revenues | $9,241 | $6,596 | $6,413 | $6,063 | $5,796 |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Cost\tof\trevenues | 6,233 | 4,395 | 4,327 | 4,092 | 3,956 |
| Gross\tprofit | 3,008 | 2,201 | 2,086 | 1,971 | 1,840 |
| Selling,\tgeneral\tand\tadministrative\texpenses | 1,710 | 1,102 | 815 | 908 | 764 |
| Operating\tincome | 1,298 | 1,099 | 1,271 | 1,063 | 1,076 |
| Total\tother\tincome\t(expense) | (392) | (62) | (218) | (239) | (248) |
| Earnings\tfrom\tcontinuing\toperations\tbefore\tincome\ttaxes\tand\tequity\tin\tloss\tof\nunconsolidated\tentities | 906 | 1,037 | 1,053 | 824 | 828 |
| Provision\tfor\tincome\ttaxes | 317 | 379 | 335 | 309 | 270 |
| Earnings\tfrom\tcontinuing\toperations,\tnet\tof\ttax | 589 | 658 | 718 | 515 | 558 |
| Earnings\t(loss)\tfrom\tdiscontinued\toperations,\tnet\tof\ttax | 1 | (7) | (11) | 3 | (77) |
| Net\tearnings | 590 | 651 | 707 | 518 | 481 |
| Net\t(earnings)\tloss\tattributable\tto\tnoncontrolling\tinterest | (22) | (19) | (28) | (25) | (20) |
| Net\tearnings\tattributable\tto\tFIS | $568 | $632 | $679 | $493 | $461 |
| Net\tearnings\tper\tshare\t—\tbasic\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\nstockholders | $1.74 | $2.24 | $2.42 | $1.69 | $1.84 |
| Net\tearnings\t(loss)\tper\tshare\t—\tbasic\tfrom\tdiscontinued\toperations\tattributable\tto\tFIS\ncommon\tstockholders | — | (0.03) | (0.04) | 0.01 | (0.26) |
| Net\tearnings\tper\tshare\t—\tbasic\tattributable\tto\tFIS\tcommon\tstockholders | $1.74 | $2.22 | $2.38 | $1.70 | $1.58 |
| Weighted\taverage\tshares\t—\tbasic | 326 | 285 | 285 | 290 | 292 |
| Net\tearnings\tper\tshare\t—\tdiluted\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\nstockholders | $1.72 | $2.21 | $2.39 | $1.67 | $1.81 |
| Net\tearnings\t(loss)\tper\tshare\t—\tdiluted\tfrom\tdiscontinued\toperations\tattributable\tto\tFIS\ncommon\tstockholders | — | (0.03) | (0.04) | 0.01 | (0.26) |
| Net\tearnings\tper\tshare\t—\tdiluted\tattributable\tto\tFIS\tcommon\tstockholders | $1.72 | $2.19 | $2.35 | $1.68 | $1.55 |
| Weighted\taverage\tshares\t—\tdiluted | 330 | 289 | 289 | 294 | 298 |
| Amounts\tattributable\tto\tFIS\tcommon\tstockholders: |  |  |  |  |  |
| Earnings\tfrom\tcontinuing\toperations,\tnet\tof\ttax | $567 | $639 | $690 | $490 | $538 |
| Earnings\t(loss)\tfrom\tdiscontinued\toperations,\tnet\tof\ttax | 1 | (7) | (11) | 3 | (77) |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders | $568 | $632 | $679 | $493 | $461 |

| Cash	and	cash	equivalents | $683 | $682 | $493 | $548 | $518 |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Goodwill | 14,178 | 14,745 | 8,878 | 8,500 | 8,382 |
| Other\tintangible\tassets,\tnet | 4,664 | 5,159 | 1,268 | 1,339 | 1,576 |
| Total\tassets | 26,031 | 26,200 | 14,521 | 13,960 | 13,550 |
| Total\tlong-term\tdebt | 10,478 | 11,444 | 5,068 | 4,469 | 4,386 |
| Total\tFIS\tstockholders'\tequity | 9,741 | 9,321 | 6,557 | 6,581 | 6,641 |
| Noncontrolling\tinterest | 104 | 86 | 135 | 157 | 153 |
| Total\tequity | 9,845 | 9,407 | 6,692 | 6,737 | 6,794 |
| Cash\tdividends\tdeclared\tper\tshare | $1.04 | $1.04 | $0.96 | $0.88 | $0.80 |

# Selected	Quarterly	Financial	Data

Selected	unaudited	quarterly	financial	data	is	as	follows:

| Processing	and	services	revenues | $2,181 | $2,305 | $2,309 | $2,445 |
| :--- | :--- | :--- | :--- | :--- |
| Gross\tprofit | 628 | 705 | 782 | 892 |
| Earnings\tfrom\tcontinuing\toperations\tbefore\tincome\ttaxes | 90 | 189 | 294 | 333 |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders | 55 | 121 | 185 | 207 |
| Net\tearnings\tper\tshare\t—\tbasic\tattributable\tto\tFIS\tcommon\tstockholders | $0.17 | $0.37 | $0.57 | $0.63 |
| Net\tearnings\tper\tshare\t—\tdiluted\tattributable\tto\tFIS\tcommon\tstockholders | $0.17 | $0.37 | $0.56 | $0.63 |
| 2015 |  |  |  |  |
| Processing\tand\tservices\trevenues | $1,555 | $1,587 | $1,579 | $1,875 |
| Gross\tprofit | 485 | 517 | 557 | 642 |
| Earnings\tfrom\tcontinuing\toperations\tbefore\tincome\ttaxes | 176 | 403 | 282 | 176 |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders | 111 | 240 | 175 | 105 |
| Net\tearnings\tper\tshare\t—\tbasic\tattributable\tto\tFIS\tcommon\tstockholders | $0.39 | $0.85 | $0.62 | $0.36 |
| Net\tearnings\tper\tshare\t—\tdiluted\tattributable\tto\tFIS\tcommon\tstockholders | $0.39 | $0.84 | $0.62 | $0.35 |

# Item	7. Management's	Discussion	and	Analysis	of	Financial	Condition	and	Results	of

# Operations

The	following	section	discusses	management's	view	of	the	financial	condition	and	results	of	operations	of	FIS	and	its	consolidated	subsidiaries	as	of	December	31, 2016	and	2015	and	for	the	years	ended	December	31,	2016,	2015	and	2014.

This	section	should	be	read	in	conjunction	with	the	audited	Consolidated	Financial	Statements	and	related	Notes	of	FIS	included	elsewhere	in	this	Annual	Report. Management's	Discussion	and	Analysis	of	Financial	Condition	and	Results	of	Operations	contains	forward-looking	statements.	See	"Forward-Looking	Statements"	and "Risk	Factors"	for	a	discussion	of	the	uncertainties,	risks	and	assumptions	associated	with	these	forward-looking	statements	that	could	cause	future	results	to	differ materially	from	those	reflected	in	this	section.

We	have	grown	organically	as	well	as	through	acquisitions,	which	have	contributed	critical	applications	and	services	that	complement	or	enhance	our	existing offerings,	diversifying	our	revenues	by	customer,	geography	and	service	offering.	The	completion	of	the	SunGard	acquisition	on	November	30,	2015	increased	our existing	portfolio	to	include	solutions	that	automate	a	wide	range	of	complex	business	processes	for	financial	services	institutions	and	corporate	and	government	treasury departments.

In	2015,	FIS	finalized	a	reorganization	and	began	reporting	its	financial	performance	based	on	three	segments:	Integrated	Financial	Solutions	("IFS"),	Global	Financial Solutions	("GFS")	and	Corporate	and	Other.	We	recast	all	previous	periods	to

conform	to	the	new	segment	presentation.	Following	our	November	30,	2015	acquisition	of	SunGard,	the	SunGard	business	was	included	within	the	GFS	segment	as	its economic	characteristics,	international	business	model,	and	various

other	factors	largely	aligned	with	those	of	our	GFS	segment.	As	we	further	integrated	the	acquired	SunGard	businesses	through	March	31,	2016,	we	reclassified	certain SunGard	businesses	(corporate	liquidity	and	wealth	management)	that	are

oriented	more	to	the	retail	banking	and	payments	activities	of	IFS	into	that	segment.	Certain	other	businesses	from	both	SunGard	(public	sector	and	education	businesses which	was	divested	in	February	2017),	and	legacy	FIS	(global	commercial	services	and	retail	check	processing)	were	reclassified	to	the	Corporate	and	Other	segment,	as have	SunGard	administrative	expenses.	Prior	periods	also	have	been	reclassified	to	conform	to	the	current	segment	presentation.	A	description	of	these	segments	is included	in	Note	19	of	the	Notes	to	Consolidated	Financial	Statements.	Revenues	by	segment	and	the	results	of	operations	of	our	segments	are	discussed	below	in Segment	Results	of	Operations.

# Business	Trends	and	Conditions

Our	revenue	is	primarily	derived	from	a	combination	of	recurring	technology	and	processing	services,	consulting	and	professional	services	and	software	license fees.	The	majority	of	our	revenue	has	historically	been	recurring,	provided	under	multi-year	contracts	that	contribute	relative	stability	to	our	revenue	stream.	These services,	in	general,	are	considered	critical	to	our	clients'	operations.	A	considerable	portion	of	these	recurring	revenues	is	derived	from	transaction	processing	fees	that fluctuate	with	the	level	of	accounts	and	card	transactions,	among	other	variable	measures,	associated	with	consumer,	commercial,	capital	markets	and	trading	volume activity.	Consulting	and	professional	services	revenues	are	typically	non-recurring,	and	sales	of	software	licenses	are	less	predictable,	a	portion	of	which	can	be	regarded as	discretionary	spending	by	our	clients.	In	2016,	macroeconomic	challenges	of	a	slowing	global	economy,	as	well	as	unique	events	such	as	Brexit,	affected	our	clients, by	predominantly	delaying	their	buying	decisions	of	consulting	and	professional	services	in	certain	markets.

The	SunGard	acquisition	broadened	our	solution	portfolio,	enabling	us	to	expand	beyond	our	traditional	retail	banking	and	payments	markets	into	the	institutional	and wholesale	side	of	financial	institutions	as	well	as	other	buy-side	organizations.	It	significantly	expanded	our	existing	solutions	and	client	base	in	wealth	management, treasury	and	corporate	payments.	These	solutions	are	in	demand	among	our	regional	and	community	financial	institution	clients	as	they	look	for	ways	to	replace	highly regulated	fee	revenues.	The	combination	also	favorably	impacted	our	revenue	mix,	with	a	greater	concentration	of	license	revenues	and	higher	margin	services.	As	we continue	to	integrate	SunGard	into	our	existing	operations,	we	anticipate

significant	cost	savings	around	administration	and	technology	expenses,	with	a	goal	of	achieving	annual	synergy	run-rate	savings	of	more	than	$275	million	by	the	end of	2017.

We	are	actively	migrating	many	financial	institutions	to	outsourced	integrated	technology	solutions	to	improve	their	profitability	and	address	increasing	and	on- going	regulatory	requirements.	As	a	provider	of	outsourcing	solutions,	we	benefit	from	multi-year	recurring	revenue	streams,	which	help	moderate	the	effects	of	broader year-to-year	economic	and	market	changes	that	otherwise	might	have	a	larger	impact	on	our	results	of	operations.	We	believe	our	integrated	solutions	and	outsourced services	are	well	positioned	to	address	this	outsourcing	trend	across	the	markets	we	serve.

Consumer	preference	continues	to	shift	from	traditional	branch	banking	services	to	digital	banking	solutions,	and	our	clients	seek	to	provide	a	single	integrated banking	experience	through	their	branch,	mobile,	internet	and	voice	banking	channels.	We	are	focused	on	enabling	our	clients	to	deliver	this	experience	to	their customers	through	our	integrated	solutions	and	services.	We	continue	to	innovate	and	invest	in	these	integrated	solutions	and	services	to	assist	clients	as	they	address	this market	demand.	This	is	an	area	of	increased	competition	from	global	banks,	international	providers,	and	disruptive	technology	innovators.

We	continue	to	see	demand	for	innovative	solutions	in	the	payments	market	that	will	deliver	faster,	more	convenient	payment	solutions	in	mobile	channels,	internet applications	and	cards.	We	believe	digital	payments	will	grow	and	partially	replace	existing	payment	tender	volumes	over	time	as	consumers	and	merchants	embrace	the convenience,	incremental	services	and	benefits.	Digital	payment	volume	is	growing	significantly	but	does	not	yet	represent	a	meaningful	amount	of	the	payments market.	Additionally,	new	formidable	non-traditional	payments	competitors	and	large	merchants	are	investing	in	and	innovating	digital	payment	technologies	to	address the	emerging	market	opportunity,	and	it	is	unclear	the	extent	to	which	particular	technologies	or	services	will	succeed.	We	believe	the	growth	of	digital	payments continues	to	present	both	an	opportunity	and	a	risk	to	us	as	the	market	develops.	Although	we	cannot	predict	which	digital	payment	technologies	or	solutions	will	be successful,	we	cautiously	believe	our	client	relationships,	payments	infrastructure	and	experience,	adapted	solutions	and	emerging	solutions	are	well	positioned	to maintain	or	grow	our	clients'	existing	payment	volumes,	which	is	our	focus.

High	profile	North	American	merchant	payment	card	information	security	breaches	have	pushed	the	payment	card	industry	towards	EMV	integrated	circuit	cards	as financial	institutions,	card	networks	and	merchants	seek	to	improve	information	security	and	reduce	fraud	costs.	We	invested	in	our	card	management	solutions	and	card manufacturing	and	processing	capabilities	to	accommodate	EMV	integrated	circuit	cards	so	we	can	continue	to	guide	our	clients	through	this	technology	transition,	and grow	our	card	driven	businesses.	We	believe	the	trend	to	migrate	to	EMV	cards	will	continue.

The	use	of	checks	continues	to	decline	as	a	percentage	of	total	payments,	which	negatively	impacts	our	check	warranty	and	item-processing	businesses,	and	we expect	this	trend	to	continue.	In	2016	we	saw	a	continued	slowdown	and	decline	in	our	check	volumes.

We	anticipate	consolidation	within	the	banking	industry	will	continue,	primarily	in	the	form	of	merger	and	acquisition	activity,	which	we	believe	as	a	whole	is detrimental	to	our	business.	However,	consolidation	resulting	from	specific	merger	and	acquisition	transactions	may	be	beneficial	or	detrimental	to	our	business.	When consolidations	of	financial	institutions	occur,	merger	partners	often	operate	systems	obtained	from	competing	service	providers.	The	newly	formed	entity	generally makes	a	determination	to	migrate	its	core	and	payments	systems	to	a	single	platform.	When	a	financial	institution	processing	client	is	involved	in	a	consolidation,	we may	benefit	by	their	expanding	the	use	of	our	services	if	such	services	are	chosen	to	survive	the	consolidation	and	support	the	newly	combined	entity.	Conversely,	we may	lose	market	share	if	we	are	providing	services	to	both	entities,	or	if	a	client	of	ours	is	involved	in	a	consolidation	and	our	services	are	not	chosen	to	survive	the consolidation	and	support	the	newly	combined	entity.	It	is	also	possible	that	larger	financial	institutions	resulting	from	consolidation	may	have	greater	leverage	in negotiating	terms	or	could	decide	to	perform	in-house	some	or	all	of	the	services	that	we	currently	provide	or	could	provide.	We	seek	to	mitigate	the	risks	of consolidations	by	offering	other	competitive	services	to	take	advantage	of	specific	opportunities	at	the	surviving	company.	In	2016,	consolidations	resulted	in	our earning	termination	fees	(which	are	paid	to	us	when	customers	leave)	slightly	higher	than	the	previous	year.

Notwithstanding	challenging	global	economic	conditions,	our	international	business	continued	to	experience	growth	across	all	major	regions,	especially	Brazil	and Asia	on	a	constant	currency	basis	during	the	year	ended	December	31,	2016.	By	comparison	with	FIS,	a	greater	percentage	of	SunGard's	revenues	have	been	contributed historically	by	international	markets,	which	contributed	to	this	growth	trend.	Demand	for	our	solutions	will	also	be	driven	in	developing	countries	by	government-led financial	inclusion	policies	aimed	to	reduce	the	unbanked	population	and	by	growth	in	the	middle	classes	in	these	markets	driving	the	need	for	more	sophisticated banking	solutions.	The	majority	of	our	European	revenue	is	generated	by	clients	in	the	United	Kingdom,	France	and	Germany.	In	2016,	we	experienced	adverse currency	impacts	in	our	international	businesses	as	a

consequence	of	a	relative	strengthening	of	the	U.S.	dollar,	particularly	versus	the	British	pound	sterling	due	in	part	to	Brexit.	In	2017,	we	expect	continued	unfavorable foreign	currency	impacts.

Globally,	attacks	on	information	technology	systems	continue	to	grow	in	frequency,	complexity	and	sophistication.	This	is	a	trend	we	expect	to	continue.	Such attacks	have	become	a	point	of	focus	for	individuals,	businesses	and	governmental	entities.	The	objectives	of	these	attacks	include,	among	other	things,	gaining unauthorized	access	to	systems	to	facilitate	financial	fraud,	disrupt	operations,	cause	denial	of	service	events,	corrupt	data,	and	steal	non-public	information.	These circumstances	present	both	a	threat	and	an	opportunity	for	FIS.	As	part	of	our	business,	we	electronically	receive,	process,	store	and	transmit	a	wide	range	of confidential	information,	including	sensitive	customer	information	and	personal	consumer	data.	We	also	operate	payment,	cash	access	and	prepaid	card	systems.

FIS	remains	focused	on	making	strategic	investments	in	information	security	to	protect	our	clients	and	our	information	systems.	This	includes	both	capital expenditures	and	operating	expense	on	hardware,	software,	personnel	and	consulting	services.	We	also	participate	in	industry	and	governmental	initiatives	to	improve information	security	for	our	clients.	Through	the	expertise	we	have	gained	with	this	ongoing	focus	and	involvement,	we	have	developed	fraud,	security,	risk management	and	compliance	solutions	to	target	this	growth	opportunity	in	the	financial	services	industry.

# Critical	Accounting	Policies

The	accounting	policies	described	below	are	those	we	consider	critical	in	preparing	our	Consolidated	Financial	Statements.	These	policies	require	management	to make	estimates,	judgments	and	assumptions	that	affect	the	reported	amounts	of	assets	and	liabilities	and	disclosures	with	respect	to	contingent	liabilities	and	assets	at	the date	of	the	Consolidated	Financial	Statements	and	the	reported	amounts	of	revenues	and	expenses	during	the	reporting	periods.	Actual	amounts	could	differ	from	those estimates.	See	Note	2	to	the	Consolidated	Financial	Statements	for	a	more	detailed	description	of	the	significant	accounting	policies	that	have	been	followed	in	preparing our	Consolidated	Financial	Statements.

# Revenue	Recognition

The	Company	generates	revenues	from	the	delivery	of	bank	processing,	credit	and	debit	card	processing	services,	other	payment	processing	services,	professional services,	software	licensing,	software	as	a	service	("SaaS"),	business	process	as	a	service	("BPaaS"),	cloud	revenue	and	software	related	services.	Revenues	are recognized	when	evidence	of	an	arrangement	exists,	delivery	has	occurred,	fees	are	fixed	or	determinable	and	collection	is	considered	probable.	Each	of	these	primary revenue	recognition	criteria	requires	exercising	an	appropriate	level	of	judgment.	We	are	frequently	a	party	to	multiple	concurrent	contracts	with	the	same	client.	These situations	require	judgment	to	determine	whether	the	individual	contracts	should	be	aggregated	or	evaluated	separately	for	purposes	of	revenue	recognition.	In	making this	determination,	we	consider	the	timing	of	negotiating	and	executing	the	contracts,	whether	the	different	elements	of	the	contracts	are	interdependent	and	whether	any of	the	payment	terms	of	the	contracts	are	interrelated.	Our	individual	contracts	also	frequently	include	multiple	elements.	We	must	apply	judgment	in	these circumstances	in	determining	whether	individual	elements	can	be	considered	separate	units	of	accounting	or	should	instead	be	accounted	for	in	combination	with	other deliverables.	Judgment	is	also	required	in	ascribing	fair	value	to	each	deliverable	for	purposes	of	allocating	consideration.

For	certain	agreements,	we	use	contract	accounting	if	the	arrangement	with	the	customer	includes	significant	customization,	modification,	or	production	of software.	For	these	arrangements,	we	use	the	percentage-of-completion	method,	which	requires	the	use	of	reasonable	estimates	of	total	revenues	and	contract	hours. These	estimates	are	revised	and	updated	at	each	reporting	period.	Additionally,	a	small	percentage	of	revenues,	including	some	equipment	sales	and	merchant interchange	fees,	are	recognized	on	a	net-of-cost	basis	because	the	Company	is	not	the	primary	obligor,	among	other	criteria.	The	determination	of	gross	versus	net recognition	requires	judgment	in	evaluating	the	Company's	contractual	obligations	to	the	customer.

Due	to	the	large	number,	broad	nature	and	average	size	of	individual	contracts	we	are	party	to,	the	impact	of	judgments	and	assumptions	that	we	apply	in recognizing	revenue	for	any	single	contract	is	not	likely	to	have	a	material	effect	on	our	consolidated	operations	or	financial	position.	However,	the	broader	accounting policy	assumptions	that	we	apply	across	similar	arrangements	or	classes	of	clients	could	significantly	influence	the	timing	and	amount	of	revenue	recognized	in	our historical	and	future	results	of	operations	or	financial	position.	Additional	information	about	our	revenue	recognition	policies	is	included	in	Note	2	to	the	Consolidated Financial	Statements.

# Computer	Software

Computer	software	includes	the	fair	value	of	software	acquired	in	business	combinations,	purchased	software	and	capitalized	software	development	costs. Purchased	software	is	recorded	at	cost	and	amortized	using	the	straight-line	method	over	its	estimated	useful	life,	which	is	generally	three	to	five	years.	Software acquired	in	business	combinations	is	recorded	at	its	fair	value	and	amortized	using	straight-line	or	accelerated	methods	over	its	estimated	useful	life,	which	is	three	to	ten years.	The	determination	of	fair	value	as	part	of	the	business	combination	purchase	price	allocation	is	complex	and	requires	significant	judgment.	For	any	material acquisition,	we	engage	independent	valuation	specialists	to	assist	in	making	fair	value	determinations.	The	valuation	technique	most	often	applied	for	acquired	software is	a	relief	from	royalty,	income	approach.	This	approach	requires	forecasts,	estimates,	and	assumptions	about	future	revenue	streams,	appropriate	royalty	rates,	and	the rate	at	which	the	underlying	technology	becomes	obsolete.	In	addition,	the	income	approach	requires	the	use	of	risk	adjusted	discount	rates	and	estimated	future	tax rates.	As	of	December	31,	2016	and	December	31,	2015,	computer	software,	net	of	accumulated	amortization,	was	$1.6	billion	and	$1.6	billion,	respectively,	and amortization	of	computer	software	was	$396	million,	$229	million,	and	$210	million	for	the	years	ended	December	31,	2016,	2015,	and	2014,	respectively.	Balances related	to	acquired	software	represent	a	significant	portion	of	these	balances,	particularly	for	the	periods	after	the	acquisition	of	SunGard,	which	resulted	in	acquired software	of	$674	million.

The	capitalization	of	software	development	costs	is	governed	by	FASB	ASC	Subtopic	985-20	if	the	software	is	to	be	sold,	leased	or	otherwise	marketed,	or	by FASB	ASC	Subtopic	350-40	if	the	software	is	for	internal	use.	After	the	technological	feasibility	of	the	software	has	been	established	(for	software	to	be	marketed),	or	at the	beginning	of	application	development	(for	internal-use	software),	software	development	costs,	which	include	primarily	salaries	and	related	payroll	costs	and	costs	of independent	contractors	incurred	during	development,	are	capitalized.	Research	and	development	costs	incurred	prior	to	the	establishment	of	technological	feasibility (for	software	to	be	marketed),	or	prior	to	application	development	(for	internal-use	software),	are	expensed	as	incurred.	Evaluating	whether	technological	feasibility	has been	achieved	requires	the	use	of	management	judgment.

Software	development	costs	are	amortized	on	a	product-by-product	basis	commencing	on	the	date	of	general	release	of	the	solutions	(for	software	to	be	marketed)	or the	date	placed	in	service	(for	internal-use	software).	Software	development	costs	for	software	to	be	marketed	are	amortized	using	the	greater	of	(1)	the	straight-line method	over	its	estimated	useful	life,	which	ranges	from	three	to	10	years,	or	(2)	the	ratio	of	current	revenues	to	total	anticipated	revenues	over	its	useful	life.

In	determining	useful	lives,	management	considers	historical	results	and	technological	trends	that	may	influence	the	estimate.	Useful	lives	for	all	computer	software range	from	three	to	10	years.

We	also	assess	the	recorded	value	of	computer	software	for	impairment	on	a	regular	basis	by	comparing	the	carrying	value	to	the	estimated	future	cash	flows	to	be generated	by	the	underlying	software	asset	(for	software	to	be	marketed).	There	are	inherent	uncertainties	in	determining	the	expected	useful	life	or	cash	flows	to	be generated	from	computer	software.	For	the	years	ended	December	31,	2016,	2015,	and	2014,	respectively,	we	have	not	had	more	than	minimal	charges	for	impairments of	software.	While	we	have	not	historically	experienced	significant	changes	in	these	balances	due	to	changes	in	estimates,	our	results	of	operations	could	be	subject	to such	changes	in	the	future.

# Purchase	Accounting,	Goodwill	and	Other	Intangible	Assets

We	are	required	to	allocate	the	purchase	price	of	acquired	businesses	to	the	assets	acquired	and	liabilities	assumed	in	the	transaction	at	their	estimated	fair	values. The	estimates	used	to	determine	the	fair	value	of	long-lived	assets,	such	as	intangible	assets,	are	complex	and	require	a	significant	amount	of	management	judgment.	We generally	engage	independent	valuation	specialists	to	assist	us	in	making	fair	value	determinations.

If	the	initial	accounting	for	a	business	combination	is	incomplete	by	the	end	of	the	reporting	period	in	which	the	combination	occurs,	we	are	required	to	record provisional	amounts	in	the	financial	statements	for	the	items	for	which	the	accounting	is	incomplete.	Adjustments	to	provisional	amounts	initially	recorded	that	are identified	during	the	measurement	period	are	recognized	in	the	reporting	period	in	which	the	adjustment	amounts	are	determined.	This	includes	any	effect	on	earnings	of changes	in	depreciation,	amortization,	or	other	income	effects	as	a	result	of	the	change	to	the	provisional	amounts,	calculated	as	if	the	accounting	had	been	completed	at the	acquisition	date.	During	the	measurement	period,	we	are	also	required	to	recognize	additional	assets	or	liabilities	if	new	information	is	obtained	about	facts	and circumstances	that	existed	as	of	the	acquisition	date	that,	if	known,	would	have	resulted	in	the	recognition	of	those	assets	and	liabilities	as	of	that	date.	The	measurement period	ends	the	sooner	of	one	year	from	the	combination	date	or	when	we	receive	the	information	we	were	seeking	about	facts	and	circumstances	that	existed	as	of	the acquisition	date	or	we	learn	that	more	information	is	not	obtainable.

We	are	also	required	to	estimate	the	useful	lives	of	intangible	assets	to	determine	the	amount	of	acquisition-related	intangible	asset	amortization	expense	to	record	in future	periods.	We	periodically	review	the	estimated	useful	lives	assigned	to	our	finite-lived	intangible	assets	to	determine	whether	such	estimated	useful	lives	continue to	be	appropriate.	Additionally,	we	review	our	indefinite-lived	intangible	assets	to	determine	if	there	is	any	change	in	circumstances	that	may	indicate	the	asset's	useful life	is	no	longer	indefinite.

Goodwill	represents	the	excess	of	cost	over	the	fair	value	of	identifiable	assets	acquired	and	liabilities	assumed	in	business	combinations.	Goodwill	and	other intangible	assets	with	indefinite	useful	lives	should	not	be	amortized,	but	shall	be	tested	for	impairment	annually,	or	more	frequently	if	circumstances	indicate	potential impairment.	FASB	ASC	Topic	350	allows	an	entity	first	to	assess	qualitatively	whether	it	is	more	likely	than	not	that	a	reporting	unit's	carrying	amount	exceeds	its	fair value,	referred	to	in	the	guidance	as	"step	zero."	If	an	entity	concludes	that	it	is	more	likely	than	not	that	a	reporting	unit's	fair	value	is	less	than	its	carrying	amount	(that is,	a	likelihood	of	more	than	50	percent),	the	"step	one"	quantitative	assessment	must	be	performed	for	that	reporting	unit.	ASC	Topic	350	provides	examples	of	events and	circumstances	that	should	be	considered	in	performing	the	"step	zero"	qualitative	assessment,	including	macroeconomic	conditions,	industry	and	market considerations,	cost	factors,	overall	financial	performance,	events	affecting	a	reporting	unit	or	the	entity	as	a	whole	and	a	sustained	decrease	in	share	price.

In	applying	the	quantitative	analysis,	we	determine	the	fair	value	of	our	reporting	units	based	on	a	weighted	average	of	multiple	valuation	techniques,	principally	a combination	of	an	income	approach	and	a	market	approach.	The	income	approach	calculates	a	value	based	upon	the	present	value	of	estimated	future	cash	flows,	while the	market	approach	uses	earnings	multiples	of	similarly	situated	guideline	public	companies.	If	the	fair	value	of	a	reporting	unit	exceeds	the	carrying	value	of	the reporting	unit's	net	assets,	goodwill	is	not	impaired	and	further	testing	is	not	required.	We	engaged	independent	specialists	to	perform	valuations	of	our	reporting	units effective	January	1,	2015	in	conjunction	with	our	re-segmentation,	and	prior	to	that	in	2012	as	part	of	our	annual	impairment	test.	There	was	a	substantial	excess	of	fair value	over	carrying	value	for	each	of	our	reporting	units	in	both	the	2015	and	2012	independent	valuations.

In	conjunction	with	the	organizational	modifications	in	the	first	quarter	of	2016,	we	reallocated	goodwill	associated	with	the	reclassified	businesses	based	on relative	fair	values	as	of	January	1,	2016.	We	refreshed	our	step	zero	qualitative	analysis,	identifying	no	indications	of	impairment	for	any	of	our	reporting	units.

We	assess	goodwill	for	impairment	on	an	annual	basis	during	the	fourth	quarter	using	a	September	30	measurement	date	unless	circumstances	require	a	more frequent	measurement,	as	was	the	case	in	the	first	quarter	of	2015	and	the	first	quarter	of	2016.	For	each	of	2016,	2015,	and	2014,	we	began	our	annual	impairment	test with	the	step	zero	qualitative	analysis.	In	performing	the	step	zero	qualitative	analysis	for	each	year,	examining	those	factors	most	likely	to	affect	our	valuations,	we concluded	that	it	remained	more	likely	than	not	that	the	fair	value	of	each	of	our	reporting	units	continued	to	exceed	their	carrying	amounts.	Consequently,	we	did	not perform	a	step	one	quantitative	analysis	specifically	for	the	purpose	of	our	annual	impairment	test	in	any	year	presented	in	these	financial	statements.

We	also	estimate	the	fair	value	of	acquired	intangible	assets	with	indefinite	lives	and	compare	this	amount	to	the	underlying	carrying	value	annually.	Similar	to	the ASC	Topic	350	guidance	for	goodwill,	ASC	Section	360-10-35	allows	an	organization	to	first	perform	a	qualitative	assessment	of	whether	it	is	more	likely	than	not	that an	indefinite-lived	intangible	asset	has	been	impaired.

We	engaged	independent	specialists	to	perform	a	valuation	of	our	indefinite-lived	intangible	assets	in	2016	and	2015,	and	prior	to	that	in	2012,	using	a	form	of income	approach	valuation	known	as	the	relief-from-royalty	method.	For	2016,	we	proceeded	directly	to	a	step	one	quantitative	analysis.	There	was	an	excess	of	fair value	over	carrying	value	for	each	of	our	indefinite	lived	intangible	assets	in	the	2016	and	2015	independent	valuations.	For	2014,	we	began	our	assessment	of	indefinite lived	intangibles	with	the	step	zero	qualitative	analysis	because	there	was	a	substantial	excess	of	fair	value	over	carrying	value	for	each	of	our	indefinite-lived	intangible assets	based	on	the	2012	valuation.	Based	upon	the	results	of	these	assessments,	there	were	no	indications	of	impairment.

Determining	the	fair	value	of	a	reporting	unit	or	acquired	intangible	assets	with	indefinite-lives	involves	judgment	and	the	use	of	significant	estimates	and assumptions,	which	include	assumptions	regarding	forecasted	revenue	growth	rates,	operating	margins,	capital	expenditures,	tax	rates,	and	other	factors	used	to	calculate estimated	future	cash	flows.	In	addition,	risk-adjusted	discount	rates	and	future	economic	and	market	conditions	and	other	assumptions	are	applied.	Goodwill	was	$14.2 billion	and	$14.7	billion	as	of	the	years	ended	December	31,	2016	and	2015,	respectively,	and	indefinite-lived	intangibles	was	$80	million	and	$81	million	as	of	the years	ended	December	31,	2016	and	2015,	respectively.	As	a	result,	a	meaningful	change	in	one	or	more	of	the	underlying	forecasts,	estimates,	or	assumptions	used	in testing	these	assets	for	impairment	could	result	in	a	material	impact	on	the	Company's	results	of	operations	and	financial	position.	However,	because	there	was	a substantial

excess	of	fair	value	over	carrying	value	in	each	of	our	previous	independent	valuations,	we	believe	the	likelihood	of	obtaining	materially	different	results	based	on	a change	of	assumptions	is	low.

# Accounting	for	Income	Taxes

As	part	of	the	process	of	preparing	the	Consolidated	Financial	Statements,	we	are	required	to	determine	income	taxes	in	each	of	the	jurisdictions	in	which	we operate.	This	process	involves	estimating	actual	current	tax	expense	together	with	assessing	temporary	differences	resulting	from	differing	recognition	of	items	for income	tax	and	financial	reporting	purposes.	These	differences	result	in	deferred	income	tax	assets	and	liabilities,	which	are	included	within	the	Consolidated	Balance Sheets.	Management	uses	bests	estimates	and	assumptions	available	during	this	process.

We	must	then	assess	the	likelihood	that	deferred	income	tax	assets	will	be	recovered	from	future	taxable	income	and,	to	the	extent	we	believe	that	recovery	is	not likely,	establish	a	valuation	allowance.	To	the	extent	we	establish	a	valuation	allowance	or	increase	or	decrease	this	allowance	in	a	period,	we	must	reflect	this	increase or	decrease	as	an	expense	or	benefit	within	income	tax	expense	in	the	Consolidated	Statements	of	Earnings.	We	consider	history	of	losses,	forecasted	earnings,	statutory usage	limitations	of	the	deferred	tax	asset	and	possible	tax	planning	strategies	in	determining	whether	or	not	we	believe	a	valuation	allowance	is	necessary.

Determination	of	the	income	tax	expense	requires	estimates	and	can	involve	complex	issues	that	may	require	an	extended	period	to	resolve.	Further,	changes	in	the geographic	mix	of	revenues	or	in	the	estimated	level	of	annual	pre-tax	income	can	cause	the	overall	effective	income	tax	rate	to	vary	from	period	to	period.	We	also receive	periodic	assessments	from	taxing	authorities	challenging	our	positions	that	must	be	taken	into	consideration	in	determining	our	tax	reserves.	Resolving	these assessments,	which	may	or	may	not	result	in	additional	taxes	due,	may	also	require	an	extended	period	of	time.	We	believe	our	tax	positions	comply	with	applicable	tax law	and	we	adequately	account	for	any	known	tax	contingencies.	We	reserve	for	uncertain	tax	positions	using	a	two-step	process.	First	we	determine	if	the	tax	position meets	the	more	likely	than	not	recognition	threshold	based	on	all	available	evidence	and	second,	we	estimate	the	largest	amount	of	benefit	that	is	greater	than	50%	likely of	being	realized	upon	ultimate	settlement.	We	believe	the	estimates	and	assumptions	used	to	support	our	evaluation	of	tax	benefit	realization	are	reasonable.	However, final	determination	of	prior-year	tax	liabilities,	either	by	settlement	with	tax	authorities	or	expiration	of	statutes	of	limitations,	could	be	materially	different	than estimates	reflected	in	assets	and	liabilities	and	historical	income	tax	provisions.	The	outcome	of	these	final	determinations	could	have	a	material	effect	on	our	income tax	provision,	net	income	or	cash	flows	in	the	period	that	a	determination	is	made.

# Related	Party	Transactions

We	are	a	party	to	certain	historical	related	party	agreements	as	discussed	in	Note	17	to	the	Consolidated	Financial	Statements	included	in	Item	8	of	Part	II	of	this Annual	Report.

# Factors	Affecting	Comparability

Our	Consolidated	Financial	Statements	included	in	this	report,	which	presents	our	financial	position	and	results	of	operations,	reflect	the	following	significant transactions:

•On	November	30,	2015,	we	completed	the	SunGard	acquisition	for	consideration	of	approximately	41.8	million	shares	of	common	stock	of	FIS	and approximately	$2,335	million	in	cash.	In	addition,	we	issued	restricted	stock	units	("RSUs")	to	SunGard	employees	covering	approximately	2.4	million	shares of	FIS	common	stock	in	exchange	for	unvested	SunGard	RSUs.	FIS	also	repaid	approximately	$4.7	billion	in	aggregate	principal	amount	of	SunGard	debt.	We funded	the	cash	portion	of	the	merger	consideration,	the	pay-off	of	the	indebtedness	of	SunGard	and	the	payment	of	transaction-related	expenses	through	a combination	of	available	cash-on-hand	and	proceeds	from	debt	financings,	including	proceeds	from	an	issuance	in	October	2015	of	$4.5	billion	aggregate principal	amount	of	senior	unsecured	notes	of	FIS.	SunGard's	results	of	operations	and	financial	position	have	been	included	in	the	Consolidated	Financial Statements	from	and	after	the	date	of	acquisition.	See	Note	3	to	the	Consolidated	Financial	Statements	included	in	Item	8	of	Part	II	of	this	Annual	Report.

•We	have	engaged	in	share	repurchases	in	prior	periods	presented.	There	were	no	share	repurchases	in	2016.	In	2015,	we	repurchased	a	total	of	approximately	5 million	shares	for	$300	million;	in	2014,	we	repurchased	a	total	of	approximately	9	million	shares	for	$476	million.

As	a	result	of	the	above	transactions,	our	financial	position,	results	of	operations,	earnings	per	share	and	cash	flows	in	the	periods	covered	by	the	Consolidated Financial	Statements	may	not	be	directly	comparable.

# Consolidated	Results	of	Operations

# (in	millions,	except	per	share	amounts)

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| Processing\tand\tservices\trevenues | $9,241 | $6,596 | $6,413 |
| Cost\tof\trevenues | 6,233 | 4,395 | 4,327 |
| Gross\tprofit | 3,008 | 2,201 | 2,086 |
| Selling,\tgeneral,\tand\tadministrative\texpenses | 1,710 | 1,102 | 815 |
| Operating\tincome | 1,298 | 1,099 | 1,271 |
| Other\tincome\t(expense): |  |  |  |
| Interest\tincome | 20 | 16 | 15 |
| Interest\texpense | (403) | (199) | (173) |
| Other\tincome\t(expense),\tnet | (9) | 121 | (60) |
| Total\tother\tincome\t(expense) | (392) | (62) | (218) |
| Earnings\tfrom\tcontinuing\toperations\tbefore\tincome\ttaxes | 906 | 1,037 | 1,053 |
| Provision\tfor\tincome\ttaxes | 317 | 379 | 335 |
| Earnings\tfrom\tcontinuing\toperations,\tnet\tof\ttax | 589 | 658 | 718 |
| Earnings\t(loss)\tfrom\tdiscontinued\toperations,\tnet\tof\ttax | 1 | (7) | (11) |
| Net\tearnings | 590 | 651 | 707 |
| Net\t(earnings)\tloss\tattributable\tto\tnoncontrolling\tinterest | (22) | (19) | (28) |
| Net\tearnings\tattributable\tto\tFIS | $568 | $632 | $679 |
| Net\tearnings\tper\tshare\t—\tbasic\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\tstockholders | $1.74 | $2.24 | $2.42 |
| Net\tearnings\t(loss)\tper\tshare\t—\tbasic\tfrom\tdiscontinued\toperations\tattributable\tto\tFIS\tcommon\tstockholders | — | (0.03) | (0.04) |
| Net\tearnings\tper\tshare\t—\tbasic\tattributable\tto\tFIS\tcommon\tstockholders\t* | $1.74 | $2.22 | $2.38 |
| Weighted\taverage\tshares\toutstanding\t—\tbasic | 326 | 285 | 285 |
| Net\tearnings\tper\tshare\t—\tdiluted\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\tstockholders | $1.72 | $2.21 | $2.39 |
| Net\tearnings\t(loss)\tper\tshare\t—\tdiluted\tfrom\tdiscontinued\toperations\tattributable\tto\tFIS\tcommon\nstockholders | — | (0.03) | (0.04) |
| Net\tearnings\tper\tshare\t—\tdiluted\tattributable\tto\tFIS\tcommon\tstockholders\t* | $1.72 | $2.19 | $2.35 |
| Weighted\taverage\tshares\toutstanding\t—\tdiluted | 330 | 289 | 289 |
| Amounts\tattributable\tto\tFIS\tcommon\tstockholders: |  |  |  |
| Earnings\tfrom\tcontinuing\toperations,\tnet\tof\ttax | $567 | $639 | $690 |
| Earnings\t(loss)\tfrom\tdiscontinued\toperations,\tnet\tof\ttax | 1 | (7) | (11) |
| Net\tearnings\tattributable\tto\tFIS | $568 | $632 | $679 |

*	Amounts	may	not	sum	due	to	rounding.

# Processing	and	Services	Revenues

Processing	and	services	revenues	for	2016	increased	$2,645	million,	or	40.1%,	due	to	incremental	revenues	from	the	SunGard	acquisition,	as	well	as	growth	in	our consulting	business,	increased	demand	for	output	solutions,	increased	card	processing	volumes	in	Brazil,	card	production	activities	associated	with	the	roll-out	of	EMV cards	across	the	industry,	volume	growth	in	debit	payments	and	demand	for	regulatory	and	compliance	solutions.	The	processing	and	services	revenue	increase	was partially	offset	by	$192	million	of	purchase	accounting	impact	on	deferred	revenue	(all	of	which	was	recorded	as	a	contra-revenue	item)	and	$100	million	of	unfavorable foreign	currency	impact	primarily	resulting	from	a	stronger	U.S.	Dollar	versus	the	Pound	Sterling	and	Brazilian	Real.

Processing	and	services	revenues	for	2015	increased	$183	million,	or	2.9%,	due	to	incremental	revenues	from	the	acquisitions	of	SunGard,	Clear2Pay	and	Reliance, as	well	as	card	production	activities	associated	with	the	roll-out	of	EMV	cards	across	the	industry	and	growth	in	digital	solutions.	These	increases	were	partially	offset by	the	loss	of	a	major	customer	in	the	prior	year	period,	the	divestiture	of	our	gaming	industry	check	warranty	business	and	$243	million	of	unfavorable	foreign currency	impact	primarily	resulting	from	a	stronger	U.S.	Dollar	versus	the	Brazilian	Real	and	the	Euro.

# Cost	of	Revenues	and	Gross	Profit

Cost	of	revenues	totaled	$6,233	million,	$4,395	million	and	$4,327	million	during	2016,	2015	and	2014,	respectively	resulting	in	gross	profit	of	$3,008	million, $2,201	million	and	$2,086	million,	respectively.	Gross	profit	as	a	percentage	of	revenues	("gross	margin")	was	32.6%,	33.4%	and	32.5%	in	2016,	2015	and	2014, respectively.	The	increase	in	gross	profit	for	2016	as	compared	to	2015	primarily	resulted	from	the	revenue	variances	noted	above.	The	gross	profit	percentage	for	2016 as	compared	to	2015	was	negatively	impacted	by	higher	acquired	intangible	asset	amortization	expense	and	higher	incentive	compensation	during	2016.	This	negative impact	was	partially	offset	by	the	addition	of	higher	margin	revenues	from	SunGard,	as	well	as	on-going	operating	leverage	in	key	markets	outside	of	North	America. The	increase	in	gross	profit	for	2015	as	compared	to	2014	primarily	resulted	from	the	revenue	variances	noted	above.	The	increase	in	gross	profit	percentage	for	2015	as compared	to	2014	primarily	resulted	from	proportionately	higher	license	fees	and	lower	professional	services	and	consulting	revenue,	the	restructuring	activities	taken earlier	in	2015	in	Europe	as	a	result	of	a	reorganization,	and	reductions	in	variable	costs	where	performance	did	not	meet	expectations.	These	items	were	partially	offset by	the	impact	of	lower	termination	fees	in	2015.

# Selling,	General	and	Administrative	Expenses

Selling,	general	and	administrative	expenses	for	2016	increased	$608	million,	or	55.2%,	primarily	resulting	from	incremental	expenses	associated	with	the	SunGard acquisition	and	transaction	costs,	severance	and	costs	of	integration	activities	relating	to	acquisitions	totaling	$281	million.

Selling,	general	and	administrative	expenses	for	2015	increased	$287	million,	or	35.2%,	primarily	resulting	from	transaction	costs,	severance	and	costs	of integration	activities	relating	to	acquisitions	totaling	$171	million,	severance	costs	of	$45	million	in	conjunction	with	the	reorganization	and	streamlining	of	operations	in our	GFS	segment	and	other	incremental	expenses	of	acquired	companies.

# Operating	Income

Operating	income	totaled	$1,298	million,	$1,099	million	and	$1,271	million	for	2016,	2015	and	2014,	respectively.	Operating	income	as	a	percentage	of	revenue ("operating	margin")	was	14.0%,	16.7%	and	19.8%	for	2016,	2015	and	2014,	respectively.	The	annual	changes	in	operating	income	and	operating	margin	resulted	from the	revenue	and	cost	variances	addressed	above.

# Total	Other	Income	(Expense)

Interest	expense	is	the	primary	component	of	total	other	income	(expense).	The	increase	of	$204	million	in	interest	expense	in	2016	as	compared	to	2015	is primarily	due	to	higher	outstanding	debt	associated	with	financing	the	SunGard	acquisition,	partially	offset	by	lower	borrowing	rates	as	the	result	of	the	debt	refinancing activity	undertaken	during	2016.

The	increase	of	$26	million	in	interest	expense	in	2015	as	compared	to	2014	was	primarily	due	to	higher	outstanding	debt	associated	with	financing	the	SunGard acquisition,	partially	offset	by	lower	borrowing	rates	as	the	result	of	the	debt	refinancing	activity	undertaken	during	2014.

During	2016,	FIS	paid	down	the	2017	Term	Loans	and	partially	paid	down	the	2018	Term	Loans	resulting	in	a	pre-tax	charge	upon	extinguishment	of approximately	$2	million	due	to	the	write-off	associated	with	previously	capitalized	debt	issue	costs.	Additionally	in	2016	as	a	result	of	these	debt	pay	downs,	FIS terminated	interest	rate	swaps	with	a	notional	amount	totaling	$1,250	million	resulting	in	a	pre-tax	loss	of	$2	million	due	to	the	release	of	fair	value	changes	from	other comprehensive	earnings.	Both	of	the	charges	were	included	in	Other	income	(expense),	net.

During	the	second	quarter	of	2015,	we	sold	certain	assets	associated	with	our	gaming	industry	check	warranty	business,	resulting	in	proceeds	of	$238	million	and	a pre-tax	gain	of	$139	million,	which	is	included	in	Other	income	(expense),	net.	Other	income	expense,	net	for	2015	also	includes	financing	costs	of	$17	million	relating to	the	SunGard	acquisition.

Other	income	(expense)	net	for	2014	includes	a	loss	of	$16	million	on	a	foreign	currency	forward	contract	associated	with	the	Euro-based	purchase	price	for	our Clear2Pay	acquisition,	the	write-off	of	certain	previously	capitalized	debt	issuance	costs	of	$7	million	and	the	payment	of	a	$30	million	bond	premium	associated	with the	early	redemption	of	certain	debt.

# Provision	for	Income	Taxes

Income	tax	expense	from	continuing	operations	totaled	$317	million,	$379	million	and	$335	million	for	2016,	2015	and	2014,	respectively.	This	resulted	in	an effective	tax	rate	on	continuing	operations	of	35.0%,	36.5%	and	31.8%	for	2016,	2015	and	2014,	respectively.	The	effective	tax	rate	for	the	2015	period	included	a	$90 million	write-off	of	goodwill	with	no	tax	basis	in	connection	with	the	sale	of	our	gaming	industry	check	warranty	business,	resulting	in	a	book	gain	on	sale	lower	than the	tax	gain.	During	2014,	we	realized	tax	benefits	related	to	certain	acquired	net	operating	loss	carryovers.	This	and	certain	favorable	audit	resolutions	in	2014 contributed	to	the	rate	differential	for	the	2014	period.

# Earnings	(Loss)	from	Discontinued	Operations

During	2016,	2015	and	2014,	certain	operations	are	classified	as	discontinued,	as	discussed	in	Note	15	of	the	Notes	to	Consolidated	Financial	Statements.	Reporting for	discontinued	operations	classifies	revenues	and	expenses	as	one	line	item,	net	of	tax,	in	the	Consolidated	Statements	of	Earnings.	The	table	below	outlines	the components	of	discontinued	operations	for	2016,	2015	and	2014,	net	of	tax	(in	millions):

| Earnings	(loss),	net	of	tax | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| eCas\tbusiness\tline | $— | $(4) | $(5) |
| Participacoes\toperations | 1 | (3) | (6) |
| \t\t\tTotal\tdiscontinued\toperations | $1 | $(7) | $(11) |

During	the	second	quarter	of	2014,	the	Company	committed	to	a	plan	to	sell	our	business	operation	that	provides	eCas	core	banking	software	solutions	to	small financial	institutions	in	China	because	it	did	not	align	with	our	strategic	plans.	We	entered	into	a	purchase	agreement	in	January	2015	to	sell	this	business	and	the transaction	closed	during	the	second	quarter	of	2015.

Participacoes,	our	former	item	processing	and	remittance	services	business	in	Brazil,	had	no	revenue	in	2016,	2015	and	2014.	Participacoes'	processing	volume	was transitioned	to	other	vendors	or	back	to	its	clients	during	the	second	quarter	of	2011.	Participacoes	had	earnings	(losses)	before	taxes	of	$2	million,	$(5)	million	and $(10)	million	during	the	years	ended	December	31,	2016,	2015	and	2014,	respectively.	The	shut-down	activities	involved	the	transfer	and	termination	of	approximately 2,600	employees,	which	was	completed	in	2011.	Former	employees	generally	had	up	to	two	years	from	the	date	of	terminations,	extended	through	April	2013,	to	file labor	claims	and	a	number	of	them	did	file	labor	claims.	As	of	December	31,	2016,	there	were	approximately	475	active	claims	remaining.	Consequently,	we	have continued	exposure	on	these	active	claims,	which	were	not	transferred	with	other	assets	and	liabilities	in	the	disposal.

# Net	(Earnings)	Loss	Attributable	to	Noncontrolling	Interest

Net	(earnings)	loss	attributable	to	noncontrolling	interest	predominantly	relates	to	the	joint	venture	in	Brazil	(see	Note	17	of	the	Notes	to	Consolidated	Financial Statements)	and	totaled	$(22)	million,	$(19)	million	and	$(28)	million	for	2016,	2015	and	2014,	respectively.

# Earnings	from	Continuing	Operations,	Net	of	Tax,	Attributable	to	FIS	Common	Stockholders

Earnings	from	continuing	operations,	net	of	tax,	attributable	to	FIS	common	stockholders	totaled	$567	million,	$639	million	and	$690	million	for	2016,	2015	and 2014,	respectively,	or	$1.72,	$2.21	and	$2.39	per	diluted	share,	respectively,	due	to	the	factors	described	above	coupled	with	the	impact	of	our	share	repurchase initiatives.

# Segment	Results	of	Operations

Adjusted	EBITDA	is	defined	as	EBITDA	(defined	as	net	income	(loss)	before	net	interest	expense,	income	tax	provision	(benefit)	and	depreciation	and amortization,	including	amortization	of	purchased	intangibles),	plus	certain	non-operating	items.	This	measure	is	reported	to	the	chief	operating	decision	maker	for purposes	of	making	decisions	about	allocating	resources	to

the	segments	and	assessing	their	performance.	For	this	reason,	Adjusted	EBITDA,	as	it	relates	to	our	segments,	is	presented	in	conformity	with	Accounting	Standards Codification	280,	Segment	Reporting.	The	non-operating	items	affecting	the	segment	profit	measure	generally	include	acquisition	accounting	adjustments,	acquisition, integration	and	severance	costs,	and	restructuring	expenses.	For	consolidated	reporting	purposes,	these	costs	and	adjustments	are	recorded	in	the	Corporate	and	Other segment	for	the	periods	discussed	below.	Adjusted	EBITDA	for	the	respective	segments	excludes	the	foregoing	costs	and	adjustments.	Financial	information,	including details	of	our	adjustments	to	EBITDA,	for	each	of	our	segments	is	set	forth	in	Note	19	to	the	Consolidated	Financial	Statements	included	in	Part	II	of	this	Annual Report.

# Integrated	Financial	Solutions

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
|  |  | (In\tmillions) |  |
| Processing\tand\tservices\trevenues | $4,566 | $3,846 | $3,679 |
| Adjusted\tEBITDA | $1,811 | $1,568 | $1,483 |

Processing	and	services	revenues	increased	$720	million,	or	18.7%,	due	to	incremental	revenues	from	our	2015	SunGard	acquisition	contributing	12.9%,	demand for	output	solutions	contributing	1.5%,	card	production	activities	associated	with	the	roll-out	of	EMV	across	the	industry	contributing	1.0%,	demand	for	regulatory	and compliance	solutions	and	IT	solutions	contributing	0.9%,	volume	growth	in	debit	payments	contributing	0.7%,	and	growth	in	mobile	banking	and	internet	solutions contributing	0.7%.

Adjusted	EBITDA	increased	$243	million,	or	15.5%,	primarily	resulting	from	the	revenue	variances	noted	above.	Adjusted	EBITDA	margin	decreased	110	basis points	to	39.7%	primarily	resulting	from	the	revenue	mix	and	higher	incentive	compensation	in	2016.

Processing	and	services	revenues	increased	$167	million,	or	4.5%,	due	to	incremental	revenues	from	the	SunGard	acquisition	contributing	1.4%	and	our	2014 acquisition	of	Reliance	contributing	1.1%,	card	production	activities	associated	with	the	roll-out	of	EMV	across	the	industry	contributing	1.4%	and	growth	in	digital solutions	contributing	0.6%.	These	increases	were	partially	offset	by	the	net	reporting	of	revenue	associated	with	a	change	in	vendor	in	our	loyalty	business	contributing -0.9%	and	lower	termination	fees	contributing	-0.6%.	Revenue	had	been	recognized	on	a	gross	basis	under	the	previous	loyalty	arrangement	based	on	the	contractual responsibilities	for	which	FIS	had	been	responsible.

Adjusted	EBITDA	increased	$85	million,	or	5.7%,	primarily	resulting	from	the	revenue	variances	noted	above.	Adjusted	EBITDA	margin	increased	50	basis	points to	40.8%	primarily	resulting	from	the	impact	of	cost	containment	initiatives	and	reductions	in	variable	costs	where	performance	did	not	meet	expectations,	partially offset	by	lower	termination	fees	in	2015.

# Global	Financial	Solutions

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
|  |  | (In\tmillions) |  |
| Processing\tand\tservices\trevenues | $4,250 | $2,360 | $2,198 |
| Adjusted\tEBITDA | $1,292 | $553 | $482 |

Processing	and	services	revenues	increased	$1,890	million,	or	80.1%,	including	approximately	$92	million	of	unfavorable	foreign	currency	impact,	primarily resulting	from	a	stronger	U.S.	Dollar	versus	the	Pound	Sterling	and	Brazilian	Real.	Excluding	the	foreign	currency	impact,	revenue	increases	were	primarily	attributable to:	(1)	incremental	revenue	from	the	SunGard	acquisition	contributing	79.5%;	(2)	increased	card	processing	volumes	in	Brazil	contributing	1.7%;	(3)	growth	in	our consulting	business	contributing	1.4%;	and	(4)	growth	in	payment	processing	in	the	Asia	Pacific	region	contributing	0.9%.

Adjusted	EBITDA	increased	$739	million,	or	133.6%,	primarily	resulting	from	the	revenue	variances	noted	above.	Adjusted	EBITDA	margins	increased	700	basis points	to	30.4%	primarily	resulting	from	the	addition	of	higher	margin	revenues	from	SunGard	and	the	execution	of	our	integration	plans	contributing	to	margin expansion	in	the	GFS	segment.

Processing	and	services	revenues	increased	$162	million,	or	7.4%,	including	approximately	$236	million	of	unfavorable	foreign	currency	impact,	primarily	resulting from	a	stronger	U.S.	Dollar	versus	the	Brazilian	Real	and	the	Euro.	Excluding	the	foreign	currency	impact,	revenue	increases	were	primarily	attributable	to	(1) incremental	revenues	from	the	acquisitions	of	SunGard	and	Clear2Pay	contributing	15.4%;	(2)	growth	in	Latin	America	from	transaction	volumes,	card	issuances	and expanded	back	office	services	contributing	1.2%;	(3)	our	expanding	presence	in	India,	including	core	banking	and	payments	contributing	1.1%;	and	(4)	growth	in Europe,	primarily	in	core	banking	and	payment	solutions	contributing	0.5%.

Adjusted	EBITDA	increased	$71	million,	or	14.7%,	primarily	resulting	from	the	revenue	variances	noted	above.	Adjusted	EBITDA	margins	increased	150	basis points	to	23.4%	primarily	resulting	from	growth	in	high	margin	license	deals,	the	restructuring	activities	undertaken	earlier	in	the	year	in	Europe	as	a	result	of	our reorganization,	and	reductions	in	variable	costs	where	performance	did	not	meet	expectations.	The	impact	of	these	items	was	partially	offset	by	unfavorable	foreign currency	exchange	rates.

# Corporate	and	Other

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
|  |  | (In\tmillions) |  |
| Processing\tand\tservices\trevenues | $425 | $390 | $536 |
| Adjusted\tEBITDA | $(158) | $(89) | $(38) |

The	Corporate	and	Other	segment	results	consist	of	selling,	general	and	administrative	expenses	and	depreciation	and	intangible	asset	amortization	not	otherwise allocated	to	the	reportable	segments.	Corporate	and	Other	also	includes	operations	from	non-strategic	businesses,	including	commercial	services,	public	sector	and education,	and	check	authorization.

Processing	and	services	revenues	increased	$35	million,	or	9.0%,	and	was	primarily	attributable	to	the	additions	of	the	businesses	from	the	SunGard	acquisition contributing	61.2%,	partially	offset	by	a	$192	million	purchase	accounting	impact	on	deferred	revenue	(all	of	which	was	recorded	as	a	contra-revenue	item	in	the Corporate	and	Other	segment).

Adjusted	EBITDA	decreased	$69	million,	or	77.5%,	primarily	resulting	from	the	timing	of	incentives	and	incremental	expenses	of	acquired	companies,	partially offset	by	the	revenue	variances	noted	above,	higher	add-backs	for	purchase	accounting	amortization,	acquisition,	integration	and	severance	costs,	and	deferred	revenue, all	as	detailed	in	Note	19.

Processing	and	services	revenues	decreased	$146	million,	or	27.2%,	and	was	primarily	attributable	to	a	$48	million	purchase	accounting	impact	on	deferred	revenue (all	of	which	was	recorded	as	a	contra-revenue	item	in	the	Corporate	and	Other	segment)	and	lower	revenue	in	commercial	services	contributing	-15.7%,	the	impact	of the	divestiture	of	our	check	gaming	business	in	the	second	quarter	of	2015	contributing	-5.8%	and	check	authorization	volume	declines	contributing	-0.4%,	partially offset	by	the	additions	of	the	businesses	from	the	SunGard	acquisition	contributing	4.1%.

Adjusted	EBITDA	decreased	$51	million,	or	134.2%,	primarily	resulting	from	the	decline	in	revenue	noted	above	and	incremental	expenses	of	acquired	companies.

# Liquidity	and	Capital	Resources

# Cash	Requirements

Our	ongoing	cash	requirements	include	operating	expenses,	income	taxes,	mandatory	debt	service	payments,	capital	expenditures,	stockholder	dividends,	working capital	and	timing	differences	in	settlement-related	assets	and	liabilities,	and	may

include	discretionary	debt	repayments,	share	repurchases	and	business	acquisitions.	Our	cash	requirements	also	include	payments	for	Capco's	contingent	consideration earn-out	and	for	labor	claims	related	to	FIS'	former	item	processing	and	remittance	operations	in	Brazil	(see	Notes	3	and	15,	respectively,	of	the	Notes	to	Consolidated Financial	Statements).	Our	principal	sources	of	funds	are	cash	generated	by	operations	and	borrowings,	including	the	capacity	under	our	Revolving	Loan	described	in Note	10	of	the	Notes	to	Consolidated	Financial	Statements.

As	of	December	31,	2016,	we	had	cash	and	cash	equivalents	of	$683	million	and	debt	of	$10,478	million,	including	the	current	portion,	net	of	capitalized	debt issuance	costs.	Of	the	$683	million	cash	and	cash	equivalents,	approximately	$470	million	is	held	by	our	foreign	entities	and	would	generally	be	subject	to	U.S.	income taxation	upon	repatriation	to	the	U.S.	The	majority	of	our	domestic	cash	and	cash	equivalents	represents	net	deposits-in-transit	at	the	balance	sheet	dates	and	relates	to daily	settlement	activity.	We	expect	that	cash	and	cash	equivalents	plus	cash	flows	from	operations	over	the	next	twelve	months	will	be	sufficient	to	fund	our	operating cash	requirements,	capital	expenditures	and	mandatory	debt	service.

We	currently	expect	to	continue	to	pay	quarterly	dividends.	However,	the	amount,	declaration	and	payment	of	future	dividends	is	at	the	discretion	of	the	Board	of Directors	and	depends	on,	among	other	things,	our	investment	opportunities,	results	of	operations,	financial	condition,	cash	requirements,	future	prospects,	and	other factors	that	may	be	considered	relevant	by	our	Board	of	Directors,	including	legal	and	contractual	restrictions.	Additionally,	the	payment	of	cash	dividends	may	be limited	by	covenants	in	certain	debt	agreements.	A	regular	quarterly	dividend	of	$0.29	per	common	share	is	payable	on	March	31,	2017	to	shareholders	of	record	as	of the	close	of	business	on	March	17,	2017.

# Cash	Flows	from	Operations

Cash	flows	from	operations	were	$1,925	million,	$1,131	million	and	$1,165	million	in	2016,	2015	and	2014	respectively.	Our	net	cash	provided	by	operating activities	consists	primarily	of	net	earnings,	adjusted	to	add	back	depreciation	and	amortization.	Cash	flows	from	operations	increased	$794	million	in	2016	and decreased	$34	million	in	2015.	The	2016	increase	in	cash	flows	from	operations	is	primarily	due	to	increased	net	earnings,	after	the	add	back	of	non-cash	depreciation and	amortization,	as	a	result	of	SunGard	operations	being	included	for	the	full	year.	The	2015	decrease	in	cash	flows	from	operations	is	primarily	due	to	a	tax	payment	of $88	million	of	income	taxes	relating	to	the	sale	of	check	warranty	contracts	and	other	assets	in	the	gaming	industry	and	lower	net	earnings,	partially	offset	by	changes	in working	capital.

# Capital	Expenditures	and	Other	Investing	Activities

Our	principal	capital	expenditures	are	for	computer	software	(purchased	and	internally	developed)	and	additions	to	property	and	equipment.	We	invested approximately	$616	million,	$415	million	and	$372	million	in	capital	expenditures	during	2016,	2015	and	2014,	respectively.	We	expect	to	invest	approximately	6%-7% of	2017	revenue	in	capital	expenditures.

We	used	$0	million,	$1,720	million	and	$595	million	of	cash	during	2016,	2015	and	2014,	respectively,	for	acquisitions	and	other	equity	investments.	See	Note	3	of the	Notes	to	Consolidated	Financial	Statements	for	a	discussion	of	the	more	significant	items.	Cash	provided	by	net	proceeds	from	sale	of	assets	in	2015	relates principally	to	the	sale	of	check	warranty	contracts	and	other	assets	in	the	gaming	industry	discussed	in	Note	15	of	the	Notes	to	Consolidated	Financial	Statements.

# Financing

For	information	regarding	the	Company's	long-term	debt	and	financing	activity,	see	Note	10	of	the	Notes	to	Consolidated	Financial	Statements.

# Contractual	Obligations

FIS'	long-term	contractual	obligations	generally	include	its	long-term	debt,	interest	on	long-term	debt,	lease	payments	on	certain	of	its	property	and	equipment	and payments	for	data	processing	and	maintenance.	For	information	regarding	the	Company's	long-term	debt,	see	Note	10	of	the	Notes	to	Consolidated	Financial Statements.	The	following	table	summarizes	FIS'	significant	contractual	obligations	and	commitments	as	of	December	31,	2016	(in	millions):

|  |  |  | Payments	Due	in |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  |  | Less\tthan | 1-3 | 3-5 | More\tthan |
| Type\tof\tObligations | Total | 1\tYear | Years | Years | 5\tYears |
| Long-term\tdebt\t(1) | \t $10,591 | \t $332 | \t $1,573 | \t $2,536 | \t $6,150 |
| Interest\t(2) | 2,829 | 381 | 706 | 595 | 1,147 |
| Operating\tleases | 401 | 96 | 158 | 82 | 65 |
| Data\tprocessing\tand\tmaintenance | 557 | 242 | 258 | 35 | 22 |
| Other\tcontractual\tobligations\t(3) | 51 | 17 | 17 | 16 | 1 |
| Total | \t $14,429 | \t $1,068 | \t $2,712 | \t $3,264 | \t $7,385 |

(1) On	February	2,	2017,	FIS	issued	a	notice	to	redeem	100%	of	the	outstanding	aggregate	principal	amount	of	its	$700	million	5.000%	Senior	Notes	due	2022	(the	"Notes")	on March	15,	2017.	The	Notes	will	be	funded	by	borrowings	under	the	Company's	Revolving	Loan	and	cash	proceeds	from	the	sale	of	Public	Sector	and	Education	("PS&E").

(2) The	calculations	above	assume	that:	(a)	applicable	margins	and	commitment	fees	remain	constant;	(b)	all	variable	rate	debt	is	priced	at	the	one-month	LIBOR	rate	in	effect as	of	December	31,	2016;	(c)	no	refinancing	occurs	at	debt	maturity;	(d)	only	mandatory	debt	repayments	are	made;	and	(e)	no	new	hedging	transactions	are	effected.

(3) Amount	primarily	includes	the	estimated	payment	for	labor	claims	related	to	FIS'	former	item	processing	and	remittance	operations	in	Brazil	(see	Note	15	of	the	Notes	to Consolidated	Financial	Statements),	amounts	due	to	the	Brazilian	venture	partner,	Capco	contingent	consideration	payments	(see	Note	3	of	the	Notes	to	Consolidated Financial	Statements)	and	other	contractual	obligations.

FIS	believes	that	its	existing	cash	balances,	cash	flows	from	operations	and	borrowing	programs	will	provide	adequate	sources	of	liquidity	and	capital	resources	to meet	FIS'	expected	liquidity	needs	for	the	operations	of	its	business	and	expected	capital	spending	for	the	next	12	months.

# Off-Balance	Sheet	Arrangements

FIS	does	not	have	any	off-balance	sheet	arrangements.

# Recent	Accounting	Pronouncements

# Recently	Adopted	Accounting	Guidance

In	April	2014,	the	FASB	issued	ASU	2014-08,	"Presentation	of	Financial	Statements	(Topic	205)	and	Property,	Plant,	and	Equipment	(Topic	360):	Reporting Discontinued	Operations	and	Disclosures	of	Disposals	of	Components	of	an	Entity"	("ASU	2014-08").	The	standard	raises	the	threshold	for	a	disposal	to	qualify	as	a discontinued	operation	to	one	representing	a	strategic	shift	that	has	a	major	effect	on	the	organization's	operations	and	financial	results.	The	standard	requires	new disclosures	of	both	discontinued	operations	and	certain	other	disposals	that	do	not	meet	the	definition	of	a	discontinued	operation.	ASU	2014-08	was	effective	for	FIS	as of	January	1,	2015.	This	pronouncement	could	impact	the	presentation	of	future	divestitures	that	may	have	qualified	as	discontinued	operations	in	the	past	but	do	not meet	the	higher	threshold	of	ASU	2014-08.

In	September	2015,	the	FASB	issued	ASU	No.	2015-16,	"Business	Combinations	(Topic	805):	Simplifying	the	Accounting	for	Measurement-Period	Adjustments" ("ASU	2015-16").	ASU	2015-16	requires	adjustments	to	provisional	amounts	initially	recorded	in	a	business	combination	that	are	identified	during	the	measurement period	to	be	recognized	in	the	reporting	period	in	which	the	adjustment	amounts	are	determined.	This	includes	any	effect	on	earnings	of	changes	in	depreciation, amortization,	or	other	income	effects	as	a	result	of	the	change	to	the	provisional	amounts,	calculated	as	if	the	accounting	had	been	completed	at	the	acquisition	date. ASU	2015-16	also	requires	an	entity	to	present	separately	on	the	face	of	the	income	statement	or	disclose	in	the	notes	the	portion	of	the	amount	recorded	in	current- period	earnings	by	line	item	that	would	have	been	recorded	in	previous	reporting	periods	if	the	adjustment	to	the	provisional	amounts	had	been	recognized	as	of	the acquisition	date.	Prior	to	the	issuance	of	the	standard,	entities	were	required	to	retrospectively	apply	adjustments	made	to	provisional	amounts	recognized	in	a	business combination.	The	guidance	is	effective	for	the	fiscal	years	and	interim	periods	within	those	years	beginning	after	December	15,	2015.	This	guidance	requires	FIS	to record	and	disclose	any	measurement-period	adjustments	for	the	SunGard	acquisition	or	other	future	business	combinations	as	current	period	adjustments	as	opposed	to retroactive	adjustments	to	the	opening	balance	sheet	of	the	acquired	entity.

# Recent	Accounting	Guidance	Not	Yet	Adopted

In	May	2014,	the	FASB	issued	ASU	No.	2014-09,	"Revenue	from	Contracts	with	Customers	(Topic	606)"	("ASU	2014-09").	ASU	2014-09	amends	substantially all	authoritative	literature	for	revenue	recognition,	including	industry-specific	requirements,	and	converges	the	guidance	under	this	topic	with	that	of	the	International Financial	Reporting	Standards.	The	ASU	implements	a	five-step	process	for	customer	contract	revenue	recognition	that	focuses	on	transfer	of	control,	as	opposed	to transfer	of	risk	and	rewards.	The	amendment	also	requires	enhanced	disclosures	regarding	the	nature,	amount,	timing	and	uncertainty	of	revenues	and	cash	flows	from contracts	with	customers.	The	FASB	has	recently	issued	several	amendments	to	Topic	606,	including	further	guidance	on	principal	versus	agent	considerations, clarification	on	identifying	performance	obligations	and	accounting	for	licenses	of	intellectual	property.

The	effective	date	of	the	standard	was	postponed	to	reporting	periods	beginning	after	December	15,	2017,	with	early	adoption	allowed	for	reporting	periods beginning	after	December	15,	2016.	We	currently	anticipate	adopting	the	new	standard	effective	January	1,	2018.

Entities	can	transition	to	the	standard	either	with	retrospective	application	to	the	earlier	years	presented	in	their	financial	statements	or	with	a	cumulative-effect adjustment	as	of	the	date	of	adoption.	We	currently	anticipate	adopting	the	new	standard	using	the	retrospective	method	with	the	application	of	certain	practical expedients;	however,	a	final	decision	regarding	the	adoption	method	has	not	been	made.	Our	decision	to	adopt	using	the	retrospective	method	is	dependent	on	several factors,	including	the	significance	of	the	impact	on	our	financial	results	and	the	completion	of	our	analysis	of	information	necessary	to	restate	prior-period	financial statements.

While	we	are	continuing	to	assess	the	impact	the	adoption	of	ASU	2014-09	will	have	on	our	financial	position	and	results	of	operations,	we	currently	anticipate	the largest	area	of	impact	to	relate	to	our	accounting	for	set	up	and	implementation	services	related	to	our	data	processing	and	application	management	service	agreements. Currently,	to	the	extent	these	activities	have	standalone	value	and	the	related	fees	are	not	contingent	on	the	delivery	of	future	services,	they	are	recognized	as	performed. Under	the	new	standard,	to	the	extent	these	services	are	not	considered	distinct	in	the	context	of	the	related	service	contracts,	the	associated	revenue	and	cost	will	be deferred	and	recognized	over	the	estimated	contract	period.	We	also	anticipate	that	the	timing	of	recognition	of	certain	term	license	early	renewals	will	be	deferred	until the	commencement	of	the	renewal	term	under	the	original	license	agreement.	Currently,	term	license	renewals	are	generally	recognized	upon	execution	of	the	renewal agreement.	The	Company	is	in	the	process	of	quantifying	the	impact	of	the	issues	identified	above	as	well	as	finalizing	its	accounting	positions	on	other	areas	where	the impact	is	not	expected	to	be	significant.

On	February	25,	2016,	the	FASB	issued	ASU	2016-02,	"Leases	(Topic	842)"	("ASU	2016-02").	Under	the	new	guidance,	lessees	will	be	required	to	recognize	the following	for	all	leases	(with	the	exception	of	leases	with	a	term	of	twelve	months	or	less)	at	the	commencement	date:	(a)	a	lease	liability,	which	is	a	lessee's	obligation to	make	lease	payments	arising	from	a	lease,	measured	on	a	discounted	basis;	and	(b)	a	right-of-use	asset,	which	is	an	asset	that	represents	the	lessee's	right	to	use,	or control	the	use	of,	a	specified	asset	for	the	lease	term.	Under	the	new	guidance,	lessor	accounting	is	largely	unchanged.	The	pronouncement	requires	a	modified retrospective	transition	approach	for	leases	existing	at,	or	entered	into	after,	the	beginning	of	the	earliest	comparative	period	presented	in	the	financial	statements.	The modified	retrospective	approach	would	not	require	any	transition	accounting	for	leases	that	expire	before	the	earliest	comparative	period	presented.	A	full	retrospective transition	approach	is	not	permitted.	Public	business	entities	should	apply	the	amendments	in	ASU	2016-02	for	fiscal	years	beginning	after	December	15,	2018, including	interim	periods	within	those	fiscal	years.	Early	adoption	is	permitted.	We	are	currently	assessing	the	impact	the	adoption	of	ASU	2016-02	will	have	on	our financial	position	and	results	of	operations.

On	March	30,	2016,	the	FASB	issued	Accounting	Standards	Update	No.	2016-09	("ASU	2016-09"),	"Compensation	-	Stock	Compensation	(Topic	718): Improvements	to	Employee	Share-Based	Payment	Accounting."	The	amendments	are	intended	to	simplify	and	improve	the	accounting	for	employee	share-based payments.	Under	the	new	guidance,	all	excess	tax	benefits	and	tax	deficiencies	over/under	compensation	expense	recognized	will	be	reflected	in	the	income	statement	as they	occur.	This	will	replace	the	current	guidance,	which	requires	tax	benefits	that	exceed	compensation	expense	(windfalls)	to	be	recognized	in	equity.	It	will	also eliminate	the	need	to	maintain	a	"windfall	pool,"	and	will	remove	the	requirement	to	delay	recognizing	a	windfall	until	it	reduces	current	taxes	payable.	The	new guidance	will	also	change	the	cash	flow	presentation	of	excess	tax	benefits,	classifying	them	as	operating	inflows,	consistent	with	other	cash	flows	related	to	income taxes.	Under	current	guidance,	windfalls	are	classified	as	financing	activities.	These	changes	may	result	in	more	volatile	net	earnings.	Similarly,	effective	tax	rates	will be	subject	to	more	variability	since	the	new	guidance	reflects	all	tax	benefit	excesses	and	deficiencies	in	tax	expense.	Under	current	practice,	stock	compensation generally	does	not	impact	the	effective	tax	rate	since	any	difference	between	compensation	expense	and	the	ultimate	tax	deduction	is	reflected	in	additional	paid	in capital.	Also	under	the	new	guidance,	excess	tax	benefits	will	no	longer	be	included	in	assumed	proceeds	from	applying	the	treasury	stock	method	when	computing diluted	earnings	per	share	since	they	will	no	longer	be	recognized	in	additional	paid	in	capital.	Consequently,	the	reduction	to	common	stock	equivalents	for	assumed purchases	from	proceeds	will	be	lower	and	the	impact	of	common	stock	equivalents	will	be	more	dilutive.	For	public	companies,	the	amendments	are	effective	for annual	periods

beginning	after	December	15,	2016,	and	interim	periods	within	those	annual	periods.	Early	adoption	is	permitted	for	any	organization	in	any	interim	or	annual	period. We	expect	to	adopt	the	ASU	in	January	2017.	During	2016,	2015	and	2014,	we	recorded	$32	million,	$29	million	and	$40	million,	respectively,	to	consolidated	equity as	excess	tax	benefits	from	our	stock	plans.

On	June	16,	2016,	the	FASB	issued	Accounting	Standards	Update	No.	2016-13	("ASU	2016-13"),	"Financial	Instrument	-	Credit	Losses	(Topic	326): Measurements	on	Credit	Losses	of	Financial	Instruments."	These	amendments'	primary	objectives	are	to	implement	new	methodology	for	calculating	credit	losses	on financial	instruments	(e.g.,	trade	receivables)	based	on	expected	credit	losses	and	broadens	the	types	of	information	companies	must	use	when	calculating	the	estimated losses.	Under	current	guidance,	the	credit	losses	are	calculated	based	on	multiple	credit	impairment	objectives	and	recognition	is	delayed	until	the	loss	is	probable	to occur.	Under	the	new	guidance,	financial	assets	measured	at	amortized	cost	basis	must	now	be	shown	as	the	net	amount	expected	to	be	collected.	The	credit	loss allowance	is	a	contra-valuation	account.	Available-for-sale	securities	should	continue	to	be	recognized	in	a	similar	manner	to	current	GAAP;	however,	the	allowance should	be	presented	as	an	allowance	instead	of	a	write-down	of	the	basis	of	the	asset.	For	public	companies	that	are	SEC	filers,	the	amendments	are	effective	for	annual periods	beginning	after	December	15,	2019,	and	interim	periods	within	those	annual	periods.	Early	adoption	is	permitted	for	any	organization	in	any	interim	or	annual period	beginning	after	December	15,	2018.	We	do	not	plan	to	early	adopt	and	expect	that	the	new	guidance	will	not	have	a	material	impact	on	our	financial	statement presentation,	financial	position,	or	results	of	operations.

On	August	26,	2016,	the	FASB	issued	Accounting	Standards	Update	No.	2016-15	("ASU	2016-15"),	"Statement	of	Cash	Flows	(Topic	230):	Classification	of Certain	Cash	Receipts	and	Cash	Payments."	The	amendments	are	meant	to	reduce	the	diversity	in	how	certain	cash	receipts	and	cash	payments	are	presented	in	the statement	of	cash	flows.	ASU	2016-15	provides	guidance	as	to	the	presentation	on	the	statement	of	cash	flows	for	eight	specific	cash	flow	issues,	which	are	1)	debt prepayment	for	debt	extinguishment	costs,	2)	settlement	of	zero-coupon	debt	instruments	or	other	debt	instruments	with	coupon	interest	rates	that	are	insignificant	in relation	to	the	effective	interest	rate	of	the	borrowing,	3)	contingent	consideration	payments	made	after	a	business	combination,	4)	proceeds	for	the	settlement	of insurance	claims,	5)	proceeds	from	the	settlement	of	corporate-owned	life	insurance	policies,	including	bank-owned	life	insurance	policies,	6)	distributions	received from	equity	method	investees,	7)	beneficial	interests	in	securitization	transactions,	and	8)	separately	identifiable	cash	flows	and	application	of	the	predominance principle.	For	public	companies,	the	amendments	are	effective	for	annual	periods	beginning	after	December	15,	2018,	and	interim	periods	within	those	annual	periods beginning	after	December	15,	2019.	Early	adoption	is	permitted	for	any	organization	in	any	interim	or	annual	period.	We	do	not	plan	to	early	adopt	and	expect	that	the new	guidance	will	not	have	a	material	impact	on	our	financial	statement	presentation.

# Item	7A. Quantitative	and	Qualitative	Disclosure	About	Market

# Risks

# 	Market	Risk

We	are	exposed	to	market	risks	primarily	from	changes	in	interest	rates	and	foreign	currency	exchange	rates.	We	use	certain	derivative	financial	instruments, including	interest	rate	swaps	and	foreign	currency	forward	contracts,	to	manage	interest	rate	and	foreign	currency	risk.	We	do	not	use	derivatives	for	trading	purposes	to generate	income	or	to	engage	in	speculative	activity.

# Interest	Rate	Risk

In	addition	to	existing	cash	balances	and	cash	provided	by	operating	activities,	we	use	fixed	rate	and	variable	rate	debt	to	finance	our	operations.	We	are	exposed	to interest	rate	risk	on	these	debt	obligations	and	related	interest	rate	swaps.

The	senior	notes	(as	described	in	Note	10	of	the	Notes	to	Consolidated	Financial	Statements)	represent	substantially	all	of	our	fixed-rate	long-term	debt	obligations as	of	December	31,	2016.	The	carrying	value	of	the	notes	was	$9,950	million	as	of	December	31,	2016.	The	fair	value	of	the	senior	notes	was	approximately	$10,133 million	as	of	December	31,	2016.	The	potential	reduction	in	fair	value	of	the	senior	notes	from	a	hypothetical	10	percent	increase	in	market	interest	rates	would	not	be material	to	the	overall	fair	value	of	the	debt.

Our	floating	rate	long-term	debt	obligations	principally	relate	to	borrowings	under	the	FIS	Credit	Agreements	(as	defined	in	Note	10	of	the	Notes	to	Consolidated Financial	Statements).	An	increase	of	100	basis	points	in	the	LIBOR	rate	would	increase	our	annual	debt	service	under	the	FIS	Credit	Agreements,	after	we	include	the impact	of	our	interest	rate	swaps,	by	$1	million	(based	on	principal	amounts	outstanding	as	of	December	31,	2016).	We	performed	the	foregoing	sensitivity	analysis based	on	the	principal	amount	of	our	floating	rate	debt	as	of	December	31,	2016,	less	the	principal	amount	of	such	debt	that	was	then	subject	to	an	interest	rate	swap converting	such	debt	into	fixed	rate	debt.	This	sensitivity	analysis	is	based	solely	on

the	principal	amount	of	such	debt	as	of	December	31,	2016,	and	does	not	take	into	account	any	changes	that	occurred	in	the	prior	12	months	or	that	may	take	place	in	the next	12	months	in	the	amount	of	our	outstanding	debt	or	in	the	notional	amount	of	outstanding	interest	rate	swaps	in	respect	of	our	debt.	Further,	in	this	sensitivity analysis	the	change	in	interest	rates	is	assumed	to	be	applicable	for	an	entire	year.	For	comparison	purposes,	based	on	principal	amounts	of	floating	rate	debt	outstanding as	of	December	31,	2015,	and	calculated	in	the	same	manner	as	set	forth	above,	an	increase	of	100	basis	points	in	the	LIBOR	rate	would	have	increased	our	annual interest	expense,	after	we	calculate	the	impact	of	our	interest	rate	swaps,	by	$23	million.

We	use	interest	rate	swaps	for	the	purpose	of	managing	our	interest	expense	through	the	mix	of	fixed	rate	and	floating	rate	debt.	As	of	December	31,	2016,	we	have entered	into	the	following	interest	rate	swap	transaction	converting	a	portion	of	the	interest	rate	exposure	on	our	Term	and	Revolving	Loans	from	variable	to	fixed	(in millions):

(2) Does	not	include	the	applicable	margin	and	facility	fees	paid	to	lenders	on	the	Term	and	Revolving	Loans	as	described	in	Note	10	of	the	Notes	to Consolidated	Financial	Statements.

We	have	designated	the	interest	rate	swap	as	a	cash	flow	hedge	for	accounting	purposes.	A	portion	of	the	amount	included	in	accumulated	other	comprehensive earnings	is	reclassified	into	interest	expense	as	a	yield	adjustment	as	interest	payments	are	made	on	the	Term	and	Revolving	Loans.	In	accordance	with	the	authoritative guidance	for	fair	value	measurements,	the	inputs	used	to	determine	the	estimated	fair	value	of	our	interest	rate	swap	are	Level	2-type	measurements.	We	considered	our own	credit	risk	and	the	credit	risk	of	the	counterparties	when	determining	the	fair	value	of	our	interest	rate	swap.

In	September	2015,	the	Company	entered	into	treasury	lock	hedges	with	a	total	notional	amount	of	$1.0	billion,	reducing	the	risk	of	changes	in	the	benchmark	index component	of	the	10-year	treasury	yield.	The	Company	designated	these	derivatives	as	cash	flow	hedges.	On	October	13,	2015,	in	conjunction	with	the	pricing	of	the $4.5	billion	senior	notes,	the	Company	terminated	these	treasury	lock	contracts	for	a	cash	settlement	payment	of	$16	million,	which	was	recorded	as	a	component	of Other	Comprehensive	Earnings	and	will	be	reclassified	as	an	adjustment	to	interest	expense	over	the	ten	years	during	which	the	related	interest	payments	that	were hedged	will	be	recognized	in	income.

# Foreign	Currency	Risk

We	are	exposed	to	foreign	currency	risks	that	arise	from	normal	business	operations.	These	risks	include	the	translation	of	local	currency	balances	of	foreign subsidiaries,	transaction	gains	and	losses	associated	with	intercompany	loans	with	foreign	subsidiaries	and	transactions	denominated	in	currencies	other	than	a	location's functional	currency.	We	manage	the	exposure	to	these	risks	through	a	combination	of	normal	operating	activities	and	the	use	of	foreign	currency	forward	contracts. Contracts	are	denominated	in	currencies	of	major	industrial	countries.

Our	exposure	to	foreign	currency	exchange	risks	generally	arises	from	our	non-U.S.	operations,	to	the	extent	they	are	conducted	in	local	currency.	Changes	in foreign	currency	exchange	rates	affect	translations	of	revenues	denominated	in	currencies	other	than	the	U.S.	Dollar.	During	the	years	ended	December	31,	2016,	2015 and	2014,	we	generated	approximately	$1,909	million,	$1,336	million	and	$1,229	million,	respectively,	in	revenues	denominated	in	currencies	other	than	the	U.S. Dollar.	The	major	currencies	to	which	our	revenues	are	exposed	are	the	Brazilian	Real,	the	Euro,	the	British	Pound	Sterling	and	the	Indian	Rupee.	A	10%	move	in average	exchange	rates	for	these	currencies	(assuming	a	simultaneous	and	immediate	10%	change	in	all	of	such	rates	for	the	relevant	period)	would	have	resulted	in	the following	increase	or	(decrease)	in	our	reported	revenues	for	the	years	ended	December	31,	2016,	2015	and	2014	(in	millions):

| Currency | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| Pound\tSterling | \t $47 | \t $34 | \t $31 |
| Euro | 38 | 33 | 30 |
| Real | 32 | 29 | 38 |
| Indian\tRupee | 12 | 10 | 8 |
| Total\timpact | \t $129 | \t $106 | \t $107 |

While	our	results	of	operations	have	been	impacted	by	the	effects	of	currency	fluctuations,	our	international	operations'	revenues	and	expenses	are	generally denominated	in	local	currency,	which	reduces	our	economic	exposure	to	foreign	exchange	risk	in	those	jurisdictions.

Revenues	included	$100	million	and	$243	million	and	net	earnings	included	$10	million,	and	$31	million,	respectively,	of	unfavorable	foreign	currency	impact during	2016	and	2015	resulting	from	a	stronger	U.S.	Dollar	during	these	years	compared	to	the	preceding	year.	In	2017,	we	expect	continued	unfavorable	foreign currency	impact	on	our	operating	income	resulting	from	the	continued	strengthening	of	the	U.S.	Dollar	vs.	other	currencies.

Our	foreign	exchange	risk	management	policy	permits	the	use	of	derivative	instruments,	such	as	forward	contracts	and	options,	to	reduce	volatility	in	our	results	of operations	and/or	cash	flows	resulting	from	foreign	exchange	rate	fluctuations.	We	do	not	enter	into	foreign	currency	derivative	instruments	for	trading	purposes	or	to engage	in	speculative	activity.	We	do	periodically	enter	into	foreign	currency	forward	exchange	contracts	to	hedge	foreign	currency	exposure	to	intercompany	loans.	As of	December	31,	2016,	the	notional	amount	of	these	derivatives	was	approximately	$143	million	and	the	fair	value	was	nominal.	These	derivatives	are	intended	to	hedge the	foreign	exchange	risks	related	to	intercompany	loans	but	have	not	been	designated	as	hedges	for	accounting	purposes.

We	also	use	currency	forward	contracts	to	manage	our	exposure	to	fluctuations	in	costs	caused	by	variations	in	Indian	Rupee	("INR")	exchange	rates.	As	of December	31,	2016,	the	notional	amount	of	these	derivatives	was	approximately	$7	million	and	the	fair	value	was	less	than	$1	million.	These	INR	forward	contracts	are designated	as	cash	flow	hedges.	The	fair	value	of	these	currency	forward	contracts	is	determined	using	currency	exchange	market	rates,	obtained	from	reliable, independent,	third	party	banks,	at	the	balance	sheet	date.	The	fair	value	of	forward	contracts	is	subject	to	changes	in	currency	exchange	rates.	The	Company	has	no ineffectiveness	related	to	its	use	of	currency	forward	contracts	in	connection	with	INR	cash	flow	hedges.

In	conjunction	with	entering	into	the	definitive	agreement	to	acquire	Clear2Pay	in	September	2014,	we	initiated	a	foreign	currency	forward	contract	to	purchase Euros	and	sell	U.S.	Dollars	to	manage	the	risk	arising	from	fluctuations	in	exchange	rates	until	the	closing	because	the	purchase	price	was	stated	in	Euros.		As	this derivative	did	not	qualify	for	hedge	accounting,	we	recorded	a	charge	of	$16	million	in	Other	income	(expense),	net	during	the	third	quarter	of	2014.		This	forward contract	was	settled	on	October	1,	2014.

# Item	8.	Financial	Statements	and	Supplementary	Data

# AND	SUBSIDIARIES

# INDEX	TO	FINANCIAL	INFORMATION

| Report	of	Independent	Registered	Public	Accounting	Firm	on	Internal	Control	over	Financial	Reporting | 48 |
| :--- | :--- |
| Report\tof\tIndependent\tRegistered\tPublic\tAccounting\tFirm\ton\tthe\tConsolidated\tFinancial\tStatements | 49 |
| Consolidated\tBalance\tSheets\tas\tof\tDecember\t31,\t2016\tand\t2015 | 50 |
| Consolidated\tStatements\tof\tEarnings\tfor\tthe\tyears\tended\tDecember\t31,\t2016,\t2015\tand\t2014 | 51 |
| Consolidated\tStatements\tof\tComprehensive\tEarnings\tfor\tthe\tyears\tended\tDecember\t31,\t2016,\t2015\tand\t2014 | 52 |
| Consolidated\tStatements\tof\tEquity\tfor\tthe\tyears\tended\tDecember\t31,\t2016,\t2015\tand\t2014 | 53 |
| Consolidated\tStatements\tof\tCash\tFlows\tfor\tthe\tyears\tended\tDecember\t31,\t2016,\t2015\tand\t2014 | 54 |
| Notes\tto\tConsolidated\tFinancial\tStatements | 55 |

# REPORT	OF	INDEPENDENT	REGISTERED	PUBLIC	ACCOUNTING	FIRM

# The	Board	of	Directors	and	Stockholders

We	have	audited	Fidelity	National	Information	Services,	Inc.'s	and	subsidiaries'	(the	Company)	internal	control	over	financial	reporting	as	of	December	31,	2016,	based on	criteria	established	in	Internal	Control	-	Integrated	Framework	issued	by	the	Committee	of	Sponsoring	Organizations	of	the	Treadway	Commission	(COSO).	The Company's	management	is	responsible	for	maintaining	effective	internal	control	over	financial	reporting	and	for	its	assessment	of	the	effectiveness	of	internal	control over	financial	reporting,	included	in	the	accompanying	Management's	Report	on	Internal	Control	Over	Financial	Reporting.	Our	responsibility	is	to	express	an	opinion on	the	Company's	internal	control	over	financial	reporting	based	on	our	audit.

We	conducted	our	audit	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States).	Those	standards	require	that	we	plan	and perform	the	audit	to	obtain	reasonable	assurance	about	whether	effective	internal	control	over	financial	reporting	was	maintained	in	all	material	respects.	Our	audit included	obtaining	an	understanding	of	internal	control	over	financial	reporting,	assessing	the	risk	that	a	material	weakness	exists,	and	testing	and	evaluating	the	design and	operating	effectiveness	of	internal	control	based	on	the	assessed	risk.	Our	audit	also	included	performing	such	other	procedures	as	we	considered	necessary	in	the circumstances.	We	believe	that	our	audit	provides	a	reasonable	basis	for	our	opinion.

A	company's	internal	control	over	financial	reporting	is	a	process	designed	to	provide	reasonable	assurance	regarding	the	reliability	of	financial	reporting	and	the preparation	of	financial	statements	for	external	purposes	in	accordance	with	generally	accepted	accounting	principles.	A	company's	internal	control	over	financial reporting	includes	those	policies	and	procedures	that	(1)	pertain	to	the	maintenance	of	records	that,	in	reasonable	detail,	accurately	and	fairly	reflect	the	transactions	and dispositions	of	the	assets	of	the	company;	(2)	provide	reasonable	assurance	that	transactions	are	recorded	as	necessary	to	permit	preparation	of	financial	statements	in accordance	with	generally	accepted	accounting	principles,	and	that	receipts	and	expenditures	of	the	company	are	being	made	only	in	accordance	with	authorizations	of management	 and	 directors	 of	 the	 company;	 and	 (3)	 provide	 reasonable	 assurance	 regarding	 prevention	 or	 timely	 detection	 of	 unauthorized	 acquisition,	 use,	 or disposition	of	the	company's	assets	that	could	have	a	material	effect	on	the	financial	statements.

Because	of	its	inherent	limitations,	internal	control	over	financial	reporting	may	not	prevent	or	detect	misstatements.	Also,	projections	of	any	evaluation	of	effectiveness to	future	periods	are	subject	to	the	risk	that	controls	may	become	inadequate	because	of	changes	in	conditions,	or	that	the	degree	of	compliance	with	the	policies	or procedures	may	deteriorate.

In	our	opinion,	Fidelity	National	Information	Services,	Inc.	and	subsidiaries	maintained,	in	all	material	respects,	effective	internal	control	over	financial	reporting	as	of December	31,	2016,	based	on	criteria	established	in	Internal	Control	-	Integrated	Framework	issued	by	the	Committee	of	Sponsoring	Organizations	of	the	Treadway Commission.

We	also	have	audited,	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States),	the	consolidated	balance	sheets	of	Fidelity National	Information	Services,	Inc.	and	subsidiaries	as	of	December	31,	2016	and	2015,	and	the	related	consolidated	statements	of	earnings,	comprehensive	earnings, equity,	and	cash	flows	for	each	of	the	years	in	the	three-year	period	ended	December	31,	2016,	and	our	report	dated	February	23,	2017	expressed	an	unqualified	opinion on	those	consolidated	financial	statements.

February	23,	2017 Jacksonville,	Florida Certified	Public	Accountants

We	have	audited	the	accompanying	consolidated	balance	sheets	of	Fidelity	National	Information	Services,	Inc.	and	subsidiaries	(the	Company)	as	of	December	31,	2016 and	2015,	and	the	related	consolidated	statements	of	earnings,	comprehensive	earnings,	equity,	and	cash	flows	for	each	of	the	years	in	the	three-year	period	ended December	31,	2016.	These	consolidated	financial	statements	are	the	responsibility	of	the	Company's	management.	Our	responsibility	is	to	express	an	opinion	on	these consolidated	financial	statements	based	on	our	audits.

We	conducted	our	audits	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States).	Those	standards	require	that	we	plan	and perform	the	audit	to	obtain	reasonable	assurance	about	whether	the	financial	statements	are	free	of	material	misstatement.	An	audit	includes	examining,	on	a	test	basis, evidence	supporting	the	amounts	and	disclosures	in	the	financial	statements.	An	audit	also	includes	assessing	the	accounting	principles	used	and	significant	estimates made	by	management,	as	well	as	evaluating	the	overall	financial	statement	presentation.	We	believe	that	our	audits	provide	a	reasonable	basis	for	our	opinion.

In	our	opinion,	the	consolidated	financial	statements	referred	to	above	present	fairly,	in	all	material	respects,	the	financial	position	of	Fidelity	National	Information Services,	Inc.	and	subsidiaries	as	of	December	31,	2016	and	2015,	and	the	results	of	their	operations	and	their	cash	flows	for	each	of	the	years	in	the	three-year	period ended	December	31,	2016,	in	conformity	with	U.S.	generally	accepted	accounting	principles.

We	also	have	audited,	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States),	Fidelity	National	Information	Services, Inc.'s	and	subsidiaries'	internal	control	over	financial	reporting	as	of	December	31,	2016,	based	on	criteria	established	in	Internal	Control	-	Integrated	Framework issued	by	the	Committee	of	Sponsoring	Organizations	of	the	Treadway	Commission	(COSO),	and	our	report	dated	February	23,	2017	expressed	an	unqualified	opinion on	the	effectiveness	of	the	Company's	internal	control	over	financial	reporting.

# Consolidated	Balance	Sheets

|  |  | 2016 | 2015 |
| :--- | :--- | :--- | :--- |
|  | ASSETS |  |  |
| Current\tassets: |  |  |  |
| Cash\tand\tcash\tequivalents |  | $683 | $682 |
| Settlement\tdeposits |  | 520 | 371 |
| Trade\treceivables,\tnet |  | 1,639 | 1,731 |
| Settlement\treceivables |  | 175 | 162 |
| Other\treceivables |  | 65 | 197 |
| Prepaid\texpenses\tand\tother\tcurrent\tassets |  | 236 | 266 |
| Deferred\tincome\ttaxes |  | 101 | 100 |
| Assets\theld\tfor\tsale |  | 863 | — |
| Total\tcurrent\tassets |  | 4,282 | 3,509 |
| Property\tand\tequipment,\tnet |  | 626 | 611 |
| Goodwill |  | 14,178 | 14,745 |
| Intangible\tassets,\tnet |  | 4,664 | 5,159 |
| Computer\tsoftware,\tnet |  | 1,608 | 1,584 |
| Deferred\tcontract\tcosts,\tnet |  | 310 | 253 |
| Other\tnoncurrent\tassets |  | 363 | 339 |
| Total\tassets |  | $26,031 | $26,200 |
|  | LIABILITIES\tAND\tEQUITY |  |  |
| Current\tliabilities: |  |  |  |
| Accounts\tpayable\tand\taccrued\tliabilities |  | $1,146 | $1,196 |
| Settlement\tpayables |  | 714 | 538 |
| Deferred\trevenues |  | 680 | 615 |
| Current\tportion\tof\tlong-term\tdebt |  | 332 | 15 |
| Liabilities\theld\tfor\tsale |  | 279 | — |
| Total\tcurrent\tliabilities |  | 3,151 | 2,364 |
| Long-term\tdebt,\texcluding\tcurrent\tportion |  | 10,146 | 11,429 |
| Deferred\tincome\ttaxes |  | 2,484 | 2,658 |
| Deferred\trevenues |  | 19 | 30 |
| Other\tlong-term\tliabilities |  | 386 | 312 |
| Total\tliabilities |  | 16,186 | 16,793 |
| Equity: |  |  |  |
| FIS\tstockholders'\tequity: |  |  |  |
|  |  | — | — |
| December\t31,\t2016\tand\t2015,\trespectively |  | 4 | 4 |
| Additional\tpaid\tin\tcapital |  | 10,380 | 10,210 |
| Retained\tearnings |  | 3,299 | 3,073 |
| Accumulated\tother\tcomprehensive\tearnings |  | (331) | (279) |
|  |  | (3,611) | (3,687) |
| Total\tFIS\tstockholders'\tequity |  | 9,741 | 9,321 |
| Noncontrolling\tinterest |  | 104 | 86 |
| Total\tequity |  | 9,845 | 9,407 |
| Total\tliabilities\tand\tequity |  | $26,031 | $26,200 |

The	accompanying	notes	are	an	integral	part	of	these	consolidated	financial	statements.

# Consolidated	Statements	of	Earnings

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| Processing\tand\tservices\trevenues\t(for\trelated\tparty\tactivity,\tsee\tnote\t17) | $9,241 | \t $6,596 | \t $6,413 |
| Cost\tof\trevenues\t(for\trelated\tparty\tactivity,\tsee\tnote\t17) | 6,233 | 4,395 | 4,327 |
| Gross\tprofit | 3,008 | 2,201 | 2,086 |
| Selling,\tgeneral,\tand\tadministrative\texpenses\t(for\trelated\tparty\tactivity,\tsee\nnote17) | 1,710 | 1,102 | 815 |
| Operating\tincome | 1,298 | 1,099 | 1,271 |
| Other\tincome\t(expense): |  |  |  |
| Interest\tincome | 20 | 16 | 15 |
| Interest\texpense | (403) | (199) | (173) |
| Other\tincome\t(expense),\tnet | (9) | 121 | (60) |
| Total\tother\tincome\t(expense) | (392) | (62) | (218) |
| Earnings\tfrom\tcontinuing\toperations\tbefore\tincome\ttaxes | 906 | 1,037 | 1,053 |
| Provision\tfor\tincome\ttaxes | 317 | 379 | 335 |
| Earnings\tfrom\tcontinuing\toperations,\tnet\tof\ttax | 589 | 658 | 718 |
| Earnings\t(loss)\tfrom\tdiscontinued\toperations,\tnet\tof\ttax | 1 | (7) | (11) |
| Net\tearnings | 590 | 651 | 707 |
| Net\tearnings\tattributable\tto\tnoncontrolling\tinterest | (22) | (19) | (28) |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders | $568 | \t $632 | \t $679 |
| Net\tearnings\tper\tshare\t—\tbasic\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\ncommon\tstockholders | $1.74 | \t $2.24 | \t $2.42 |
| Net\tearnings\t(loss)\tper\tshare\t—\tbasic\tfrom\tdiscontinued\toperations\tattributable\nto\tFIS\tcommon\tstockholders | — | (0.03) | (0.04) |
| Net\tearnings\tper\tshare\t—\tbasic\tattributable\tto\tFIS\tcommon\tstockholders\t* | $1.74 | \t $2.22 | \t $2.38 |
| Weighted\taverage\tshares\toutstanding\t—\tbasic | 326 | 285 | 285 |
| Net\tearnings\tper\tshare\t—\tdiluted\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\ncommon\tstockholders | $1.72 | \t $2.21 | \t $2.39 |
| Net\tearnings\t(loss)\tper\tshare\t—\tdiluted\tfrom\tdiscontinued\toperations\tattributable\nto\tFIS\tcommon\tstockholders | — | (0.03) | (0.04) |
| Net\tearnings\tper\tshare\t—\tdiluted\tattributable\tto\tFIS\tcommon\tstockholders\t* | $1.72 | \t $2.19 | \t $2.35 |
| Weighted\taverage\tshares\toutstanding\t—\tdiluted | 330 | 289 | 289 |
| Amounts\tattributable\tto\tFIS\tcommon\tstockholders: |  |  |  |
| Earnings\tfrom\tcontinuing\toperations,\tnet\tof\ttax | $567 | \t $639 | \t $690 |
| Earnings\t(loss)\tfrom\tdiscontinued\toperations,\tnet\tof\ttax | 1 | (7) | (11) |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders | $568 | \t $632 | \t $679 |

# Consolidated	Statements	of	Comprehensive	Earnings

# (In	millions)

|  |  | 2016 | 2015 |  | 2014 |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Net\tearnings |  | $590 |  | $651 |  | $707 |
| Other\tcomprehensive\tearnings,\tbefore\ttax: |  |  |  |  |  |  |
| Unrealized\tgain\t(loss)\ton\tinvestments\tand\tderivatives | $(4) |  | $(17) |  | $(3) |  |
| Reclassification\tadjustment\tfor\tgains\t(losses)\tincluded\tin\tnet\tearnings | 9 |  | 4 |  | 6 |  |
| Unrealized\tgain\t(loss)\ton\tinvestments\tand\tderivatives,\tnet | 5 |  | (13) |  | 3 |  |
| Foreign\tcurrency\ttranslation\tadjustments | (7) |  | (196) |  | (108) |  |
| Minimum\tpension\tliability\tadjustments | (1) |  | (1) |  | (10) |  |
| Other\tcomprehensive\tearnings\t(loss),\tbefore\ttax | (3) |  | (210) |  | (115) |  |
| Provision\tfor\tincome\ttax\texpense\t(benefit)\trelated\tto\titems\tof\tother\ncomprehensive\tearnings | 31 |  | (5) |  | (7) |  |
| Other\tcomprehensive\tearnings\t(loss),\tnet\tof\ttax | $(34) | (34) | $(205) | (205) | $(108) | (108) |
| Comprehensive\tearnings |  | 556 |  | 446 |  | 599 |
| Net\t(earnings)\tloss\tattributable\tto\tnoncontrolling\tinterest |  | (22) |  | (19) |  | (28) |
| Other\tcomprehensive\t(earnings)\tlosses\tattributable\tto\tnoncontrolling\tinterest |  | (19) |  | 32 |  | 11 |
| Comprehensive\tearnings\tattributable\tto\tFIS\tcommon\tstockholders |  | $515 |  | $459 |  | $582 |

# Consolidated	Statements	of	Equity

|  | Number	of	shares |  |  | Additional |  | other |  |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Common | Treasury | Common | paid\tin | Retained | comprehensive | Treasury | Noncontrolling | Total |
|  | shares | shares | stock | capital | earnings | earnings | stock | interest | equity |
| Balances,\tDecember\t31,\t2013 | 387 | (96) | $4 | $7,248 | $2,342 | $(10) | $(3,003) | $157 | $6,738 |
| Issuance\tof\trestricted\tstock | 1 | — | — | — | — | — | — | — | — |
| Exercise\tof\tstock\toptions\tand\tstock\tpurchase\trights | — | 3 | — | (17) | — | — | 78 | — | 61 |
| Treasury\tshares\theld\tfor\ttaxes\tdue\tupon\texercise\tof\tstock\toptions | — | (1) | — | — | — | — | (28) | — | (28) |
| Excess\tincome\ttax\tbenefit\tfrom\texercise\tof\tstock\toptions | — | — | — | 40 | — | — | — | — | 40 |
| Stock-based\tcompensation | — | — | — | 56 | — | — | — | — | 56 |
| Cash\tdividends\tdeclared\t($0.96\tper\tshare)\tand\tother\tdistributions | — | — | — | — | (274) | — | — | (39) | (313) |
| Purchases\tof\ttreasury\tstock | — | (9) | — | — | — | — | (476) | — | (476) |
| Other | — | — | — | 10 | — | — | 5 | — | 15 |
| Net\tearnings | — | — | — | — | 679 | — | — | 28 | 707 |
| Other\tcomprehensive\tearnings,\tnet\tof\ttax | — | — | — | — | — | (97) | — | (11) | (108) |
| Balances,\tDecember\t31,\t2014 | 388 | (103) | $4 | $7,337 | $2,747 | $(107) | $(3,424) | $135 | $6,692 |
| Issuance\tof\trestricted\tstock | — | — | — | — | — | — | — | — | — |
| Exercise\tof\tstock\toptions | — | 2 | — | 1 | — | — | 56 | — | 57 |
| Treasury\tshares\theld\tfor\ttaxes\tdue\tupon\texercise\tof\tstock\toptions | — | — | — | — | — | — | (20) | — | (20) |
| Excess\tincome\ttax\tbenefit\tfrom\texercise\tof\tstock\toptions | — | — | — | 29 | — | — | — | — | 29 |
| Stock-based\tcompensation | — | — | — | 98 | — | — | — | — | 98 |
| Cash\tdividends\tdeclared\t($1.04\tper\tshare)\tand\tother\tdistributions | — | — | — | — | (306) | — | — | (27) | (333) |
| Purchases\tof\ttreasury\tstock | — | (5) | — | — | — | — | (300) | — | (300) |
| SunGard\tacquisition | 42 | — | — | 2,744 | — | — | — | 4 | 2,748 |
| Other | — | — | — | 1 | — | — | 1 | (13) | (11) |
| Net\tearnings | — | — | — | — | 632 | — | — | 19 | 651 |
| Other\tcomprehensive\tearnings,\tnet\tof\ttax | — | — | — | — | — | (172) | — | (32) | (204) |
| Balances,\tDecember\t31,\t2015 | 430 | (106) | $4 | $10,210 | $3,073 | $(279) | $(3,687) | $86 | $9,407 |
| Issuance\tof\trestricted\tstock | 1 | — | — | — | — | — | — | — | — |
| Exercise\tof\tstock\toptions | — | 3 | — | 21 | — | — | 88 | — | 109 |
| Treasury\tshares\theld\tfor\ttaxes\tdue\tupon\texercise\tof\tstock\toptions | — | — | — | (24) | — | — | (16) | — | (40) |
| Excess\tincome\ttax\tbenefit\tfrom\texercise\tof\tstock\toptions | — | — | — | 32 | — | — | — | — | 32 |
| Stock-based\tcompensation | — | — | — | 137 | — | — | — | — | 137 |
| Cash\tdividends\tdeclared\t($1.04\tper\tshare)\tand\tother\tdistributions | — | — | — | — | (342) | — | — | (23) | (365) |
| Other | — | — | — | 4 | — | — | 4 | — | 8 |
| Net\tearnings | — | — | — | — | 568 | — | — | 22 | 590 |
| Other\tcomprehensive\tearnings,\tnet\tof\ttax | — | — | — | — | — | (52) | — | 19 | (33) |
| Balances,\tDecember\t31,\t2016 | 431 | (103) | $4 | $10,380 | $3,299 | $(331) | $(3,611) | $104 | $9,845 |

# Consolidated	Statements	of	Cash	Flows

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| Cash\tflows\tfrom\toperating\tactivities: |  |  |  |
| Net\tearnings | $590 | $651 | $707 |
| Adjustment\tto\treconcile\tnet\tearnings\tto\tnet\tcash\tprovided\tby\toperating\tactivities: |  |  |  |
| Depreciation\tand\tamortization | 1,174 | 669 | 626 |
| Amortization\tof\tdebt\tissue\tcosts | 19 | 11 | 20 |
| Gain\ton\tsale\tof\tassets | — | (149) | — |
| Stock-based\tcompensation | 137 | 98 | 56 |
| Deferred\tincome\ttaxes | (164) | 48 | (6) |
| Excess\tincome\ttax\tbenefit\tfrom\texercise\tof\tstock\toptions | (32) | (29) | (40) |
| Other\toperating\tactivities,\tnet | (2) | 4 | 21 |
| Net\tchanges\tin\tassets\tand\tliabilities,\tnet\tof\teffects\tfrom\tacquisitions\tand\tforeign\tcurrency: |  |  |  |
| Trade\treceivables | 57 | (103) | (115) |
| Settlement\tactivity | 15 | 5 | (6) |
| Prepaid\texpenses\tand\tother\tassets | (8) | (46) | (34) |
| Deferred\tcontract\tcosts | (138) | (120) | (87) |
| Deferred\trevenue | 182 | 63 | 33 |
| Accounts\tpayable,\taccrued\tliabilities,\tand\tother\tliabilities | 95 | 29 | (10) |
| Net\tcash\tprovided\tby\toperating\tactivities | 1,925 | 1,131 | 1,165 |
| Cash\tflows\tfrom\tinvesting\tactivities: |  |  |  |
| Additions\tto\tproperty\tand\tequipment | (145) | (133) | (149) |
| Additions\tto\tcomputer\tsoftware | (471) | (282) | (223) |
| Acquisitions,\tnet\tof\tcash\tacquired | — | (1,720) | (595) |
| Net\tproceeds\tfrom\tsale\tof\tassets | — | 241 | — |
| Other\tinvesting\tactivities,\tnet | (3) | (4) | (18) |
| Net\tcash\tused\tin\tinvesting\tactivities | (619) | (1,898) | (985) |
| Cash\tflows\tfrom\tfinancing\tactivities: |  |  |  |
| Borrowings | 7,745 | 13,216 | 7,936 |
| Repayment\tof\tborrowings\tand\tcapital\tlease\tobligations | (8,749) | (11,561) | (7,364) |
| Debt\tissuance\tcosts | (25) | (37) | (14) |
| Excess\tincome\ttax\tbenefit\tfrom\texercise\tof\tstock\toptions | 32 | 29 | 40 |
| Proceeds\tfrom\texercise\tof\tstock\toptions | 112 | 57 | 61 |
| Treasury\tstock\tactivity | (40) | (320) | (522) |
| Dividends\tpaid | (341) | (305) | (275) |
| Distributions\tto\tBrazilian\tVenture\tpartner | (20) | (24) | (35) |
| Other\tfinancing\tactivities,\tnet | (23) | (40) | (25) |
| Net\tcash\t(used\tin)\tprovided\tby\tfinancing\tactivities | (1,309) | 1,015 | (198) |
| Effect\tof\tforeign\tcurrency\texchange\trate\tchanges\ton\tcash | 4 | (59) | (37) |
| Net\tincrease\t(decrease)\tin\tcash\tand\tcash\tequivalents | 1 | 189 | (55) |
| Cash\tand\tcash\tequivalents,\tbeginning\tof\tyear | 682 | 493 | 548 |
| Cash\tand\tcash\tequivalents,\tend\tof\tyear | $683 | $682 | $493 |
| Supplemental\tcash\tflow\tinformation: |  |  |  |
| Cash\tpaid\tfor\tinterest | $351 | $142 | $169 |
| Cash\tpaid\tfor\tincome\ttaxes | $341 | $355 | $292 |

# NOTES	TO	CONSOLIDATED	FINANCIAL	STATEMENTS

# (1)				Basis	of	Presentation

FIS	is	a	global	leader	in	financial	services	technology	with	a	focus	on	retail	and	institutional	banking,	payments,	asset	and	wealth	management,	risk	and	compliance, consulting	and	outsourcing	solutions.

On	August	12,	2015,	FIS	and	certain	of	its	wholly	owned	subsidiaries	entered	into	an	Agreement	and	Plan	of	Merger	with	SunGard	and	SunGard	Capital	Corp.	II (collectively	"SunGard")	pursuant	to	which,	through	a	series	of	mergers,	FIS	acquired	SunGard	(collectively	the	"SunGard	acquisition").	FIS	completed	the	SunGard acquisition	on	November	30,	2015,	and	SunGard's	results	of	operations	and	financial	position	are	included	in	the	Consolidated	Financial	Statements	from	and	after	the date	of	acquisition.

We	report	the	results	of	our	operations	in	three	reporting	segments:	Integrated	Financial	Solutions	("IFS"),	Global	Financial	Solutions	("GFS")	and	Corporate	and Other	(Note	19).

# (2) Summary	of	Significant	Accounting	Policies

The	following	describes	the	significant	accounting	policies	of	the	Company	used	in	preparing	the	accompanying	Consolidated	Financial	Statements.

# (a) Principles	of	Consolidation

The	Consolidated	Financial	Statements	include	the	accounts	of	FIS,	its	wholly-owned	subsidiaries	and	subsidiaries	that	are	majority-owned.	All	significant intercompany	profits,	transactions	and	balances	have	been	eliminated	in	consolidation.

# (b) Cash	and	Cash	Equivalents

The	Company	considers	all	cash	on	hand,	money	market	funds	and	other	highly	liquid	investments	with	original	maturities	of	three	months	or	less	to	be	cash	and cash	equivalents.	As	part	of	the	Company's	payment	processing	business,	the	Company	provides	cash	settlement	services	to	financial	institutions	and	state	and	local governments.	These	services	involve	the	movement	of	funds	between	the	various	parties	associated	with	automated	teller	machines	("ATM"),	point-of-sale	or	electronic benefit	transactions	("EBT")	and	this	activity	results	in	a	balance	due	to	the	Company	at	the	end	of	each	business	day	that	it	recoups	over	the	next	few	business	days.	The in-transit	balances	due	to	the	Company	are	included	in	cash	and	cash	equivalents.	The	carrying	amounts	reported	in	the	Consolidated	Balance	Sheets	for	these instruments	approximate	their	fair	value.	As	of	December	31,	2016	and	2015,	cash	and	cash	equivalents	also	included	$0	million	and	$5	million,	respectively	in	deposits set	aside	under	performance	guarantees.		As	of	December	31,	2016,	we	had	cash	and	cash	equivalents	of	$683	million	of	which	approximately	$470	million	is	held	by our	foreign	entities.

# (c) Fair	Value	Measurements

# Fair	Value	of	Assets	Acquired	and	Liabilities	Assumed	in	Business	Combinations

ASC	Topic	805,	Business	Combinations,	requires	an	acquirer	to	recognize,	separately	from	goodwill,	the	identifiable	assets	acquired,	liabilities	assumed,	and	any noncontrolling	interest	in	the	acquiree,	and	to	measure	these	items	generally	at	their	acquisition	date	fair	values.	Goodwill	is	recorded	as	the	residual	amount	by	which the	purchase	price	exceeds	the	fair	value	of	the	net	assets	acquired.	Fair	values	are	determined	using	the	framework	outlined	below	under	Fair	Value	Hierarchy	and	the methodologies	addressed	in	the	individual	subheadings.	If	the	initial	accounting	for	a	business	combination	is	incomplete	by	the	end	of	the	reporting	period	in	which	the combination	occurs,	we	are	required	to	report	provisional	amounts	in	the	financial	statements	for	the	items	for	which	the	accounting	is	incomplete.	Adjustments	to provisional	amounts	initially	recorded	that	are	identified	during	the	measurement	period	are	recognized	in	the	reporting	period	in	which	the	adjustment	amounts	are determined.	This	includes	any	effect	on	earnings	of	changes	in	depreciation,	amortization,	or	other	income	effects

# NOTES	TO	CONSOLIDATED	FINANCIAL	STATEMENTS	-	(Continued)

as	a	result	of	the	change	to	the	provisional	amounts,	calculated	as	if	the	accounting	had	been	completed	at	the	acquisition	date.	During	the	measurement	period,	we	are also	required	to	recognize	additional	assets	or	liabilities	if	new	information	is	obtained	about	facts	and	circumstances	that	existed	as	of	the	acquisition	date	that,	if known,	would	have	resulted	in	the	recognition	of	those	assets	and	liabilities	as	of	that	date.	The	measurement	period	ends	the	sooner	of	one	year	from	the	combination date	or	when	we	receive	the	information	we	were	seeking	about	facts	and	circumstances	that	existed	as	of	the	acquisition	date	or	learn	that	more	information	is	not obtainable.

# Fair	Value	of	Financial	Instruments

The	carrying	amounts	reported	in	the	Consolidated	Balance	Sheets	for	receivables	and	accounts	payable	approximate	their	fair	values	because	of	their	immediate	or short-term	maturities.	The	fair	value	of	the	Company's	long-term	debt	is	estimated	to	be	approximately	$183	million	and	$30	million	higher	than	the	carrying	value	as	of December	31,	2016	and	2015,	respectively.	These	estimates	are	based	on	values	of	trades	of	our	debt	in	close	proximity	to	year	end,	which	are	considered	Level	2-type measurements,	as	discussed	below.	These	estimates	are	subjective	in	nature	and	involve	uncertainties	and	significant	judgment	in	the	interpretation	of	current	market data.	Therefore,	the	values	presented	are	not	necessarily	indicative	of	amounts	the	Company	could	realize	or	settle	currently.	The	Company	holds,	or	has	held,	certain derivative	instruments,	specifically	interest	rate	swaps	and	foreign	exchange	forward	contracts.	Derivative	instruments	are	valued	using	Level	2-type	measurements.

# Fair	Value	Hierarchy

The	authoritative	accounting	literature	defines	fair	value,	establishes	a	framework	for	measuring	fair	value,	and	establishes	a	fair	value	hierarchy	based	on	the quality	of	inputs	used	to	measure	fair	value.

The	fair	value	hierarchy	includes	three	levels	that	are	based	on	the	priority	of	the	inputs	to	the	valuation	technique.	The	fair	value	hierarchy	gives	the	highest	priority to	quoted	prices	in	active	markets	for	identical	assets	or	liabilities	(Level	1	measurements)	and	the	lowest	priority	to	unobservable	inputs	(Level	3	measurements).	If	the inputs	used	to	measure	the	fair	value	fall	within	different	levels	of	the	hierarchy,	the	categorization	is	based	on	the	lowest	level	input	that	is	significant	to	the	fair	value measurement	of	the	asset	or	liability.	The	three	levels	of	the	fair	value	hierarchy	are	described	below:

Level	1.		Inputs	to	the	valuation	methodology	are	unadjusted	quoted	prices	for	identical	assets	or	liabilities	in	active	markets.

Level	2.		Inputs	to	the	valuation	methodology	include:

•Quoted	prices	for	similar	assets	or	liabilities	in	active	markets;

•Quoted	prices	for	identical	or	similar	assets	or	liabilities	in	inactive	markets;

•Inputs	other	than	quoted	prices	that	are	observable	for	the	asset	or	liability;

•Inputs	that	are	derived	principally	from	or	corroborated	by	observable	market	data	by	correlation	or	other

means.

If	the	asset	or	liability	has	a	specified	(contractual)	term,	the	Level	2	input	must	be	observable	for	substantially	the	full	term	of	the	asset	or	liability.

Level	3.		Inputs	to	the	valuation	methodology	are	unobservable	and	significant	to	the	fair	value	measurement.	Unobservable	inputs	are	inputs	that	reflect	the reporting	entity's	own	assumptions	about	the	assumptions	market	participants	would	use	in	pricing	the	asset	or	liability	developed	based	on	the	best	information available	in	the	circumstances.

# Fair	Value	Measurements

Generally	accepted	accounting	principles	require	that,	subsequent	to	their	initial	recognition,	certain	assets	be	reviewed	for	impairment	on	a	nonrecurring	basis	by comparison	to	their	fair	value.	As	more	fully	discussed	in	their	respective	subheadings	below,	this	includes	goodwill,	long-lived	assets,	intangible	assets,	computer software	and	investments.	There	were	no	significant	fair	value	measurement	impairments	for	2016,	2015	or	2014.

Contingent	consideration	liabilities	recorded	in	connection	with	business	acquisitions	must	also	be	adjusted	for	changes	in	fair	value	until	settled.	See	Note	3	for discussion	of	The	Capital	Markets	Company	BVBA	("Capco")	contingent	consideration	liability.

# (d) Derivative	Financial	Instruments

The	Company	accounts	for	derivative	financial	instruments	in	accordance	with	Financial	Accounting	Standards	Board	Accounting	Standards	Codification	("FASB ASC")	Topic	815,	Derivatives	and	Hedging.	During	2016,	2015	and	2014,	the	Company	engaged	in	hedging	activities	relating	to	its	variable	rate	debt	through	the	use	of interest	rate	swaps.	The	Company	designates	these	interest	rate	swaps	as	cash	flow	hedges.	The	estimated	fair	values	of	the	cash	flow	hedges	are	determined	using	Level 2	type	measurements.	They	are	recorded	as	an	asset	or	liability	of	the	Company	and	are	included	in	the	accompanying	Consolidated	Balance	Sheets	in	prepaid	expenses and	other	current	assets,	other	non-current	assets,	accounts	payable	and	accrued	liabilities	or	other	long-term	liabilities,	as	appropriate,	and	as	a	component	of accumulated	other	comprehensive	earnings,	net	of	deferred	taxes.	A	portion	of	the	amount	included	in	accumulated	other	comprehensive	earnings	is	recorded	in	interest expense	as	a	yield	adjustment	as	interest	payments	are	made	on	the	Company's	Term	and	Revolving	Loans	(Note	10).	The	Company's	existing	cash	flow	hedge	is	highly effective	and	there	was	no	impact	on	2016	earnings	due	to	hedge	ineffectiveness.	It	is	our	policy	to	execute	such	instruments	with	credit-worthy	banks	and	not	to	enter into	derivative	financial	instruments	for	speculative	purposes.	As	of	December	31,	2016,	we	believe	that	our	interest	rate	swap	counterparty	will	be	able	to	fulfill	its obligations	under	our	agreement.

The	Company's	foreign	exchange	risk	management	policy	permits	the	use	of	derivative	instruments,	such	as	forward	contracts	and	options,	to	reduce	volatility	in	the Company's	results	of	operations	and/or	cash	flows	resulting	from	foreign	exchange	rate	fluctuations.	During	2016	and	2015,	the	Company	entered	into	foreign	currency forward	exchange	contracts	to	hedge	foreign	currency	exposure	to	intercompany	loans.	As	of	December	31,	2016	and	2015,	the	notional	amount	of	these	derivatives	was approximately	$143	million	and	$81	million,	respectively,	and	the	fair	value	was	nominal.	These	derivatives	have	not	been	designated	as	hedges	for	accounting purposes.

We	also	use	currency	forward	contracts	to	manage	our	exposure	to	fluctuations	in	costs	caused	by	variations	in	Indian	Rupee	("INR")	exchange	rates.	As	of December	31,	2016,	the	notional	amount	of	these	derivatives	was	approximately	$7	million	and	the	fair	value	was	less	than	$1	million,	which	is	included	in	Prepaid Expenses	and	Other	Current	Assets	in	the	Consolidated	Balance	Sheets.	These	INR	forward	contracts	are	designated	as	cash	flow	hedges.	The	fair	value	of	these currency	forward	contracts	is	determined	using	currency	exchange	market	rates,	obtained	from	reliable,	independent,	third	party	banks,	at	the	balance	sheet	date.	The	fair value	of	forward	contracts	is	subject	to	changes	in	currency	exchange	rates.	The	Company	has	no	ineffectiveness	related	to	its	use	of	currency	forward	contracts	in connection	with	INR	cash	flow	hedges.

# (e) Trade	Receivables

A	summary	of	trade	receivables,	net,	as	of	December	31,	2016	and	2015	is	as	follows	(in	millions):

|  | 2016 | 2015 |
| :--- | :--- | :--- |
| Trade\treceivables\t—\tbilled | $1,452 | $1,546 |
| Trade\treceivables\t—\tunbilled | 228 | 201 |
| Total\ttrade\treceivables | 1,680 | 1,747 |
| Allowance\tfor\tdoubtful\taccounts | (41) | (16) |
| Total\ttrade\treceivables,\tnet | $1,639 | $1,731 |

Approximately	$41	million	of	unbilled	receivables	as	of	December	31,	2016	relates	to	services	provided	under	ongoing	long-term	contracts	that	were	not	yet billable	pursuant	to	the	terms	of	those	agreements	but	will	be	invoiced	in	2017.	We	expect	the	unbilled	receivables	for	continuing	services	under	these	contracts	to	be $23	million	as	of	December	31,	2017.

When	evaluating	the	adequacy	of	the	allowance	for	doubtful	accounts,	the	Company	considers	historical	bad	debts,	customer	creditworthiness,	current	economic trends,	changes	in	customer	payment	terms	and	collection	trends.	Any	change	in	the	assumptions	used	may	result	in	an	additional	allowance	for	doubtful	accounts	being recognized	in	the	period	in	which	the	change	occurs.

A	summary	roll	forward	of	the	allowance	for	doubtful	accounts,	for	2016,	2015	and	2014	is	as	follows	(in	millions):

| Allowance	for	doubtful	accounts	as	of	December	31,	2013 | $(16) |
| :--- | :--- |
| Bad\tdebt\texpense | (9) |
| Write-offs,\tnet\tof\trecoveries | 9 |
| Allowance\tfor\tdoubtful\taccounts\tas\tof\tDecember\t31,\t2014 | (16) |
| Bad\tdebt\texpense | (10) |
| Write-offs,\tnet\tof\trecoveries | 10 |
| Allowance\tfor\tdoubtful\taccounts\tas\tof\tDecember\t31,\t2015 | (16) |
| Bad\tdebt\texpense | (29) |
| Write-offs,\tnet\tof\trecoveries | 4 |
| Allowance\tfor\tdoubtful\taccounts\tas\tof\tDecember\t31,\t2016 | $(41) |

# (f) Settlement	Deposits,	Receivables	and	Payables

We	manage	certain	integrated	electronic	payment	services	and	programs	and	wealth	management	processes	for	our	clients	that	require	us	to	hold	and	manage	client	cash balances	used	to	fund	their	daily	settlement	activity.	Settlement	deposits	represent	funds	we	hold	that	were	drawn	from	our	clients	to	facilitate	settlement	activities. Settlement	receivables	represent	amounts	funded	by	us.	Settlement	payables	consist	of	settlement	deposits	from	clients,	settlement	payables	to	third	parties	and outstanding	checks	related	to	our	settlement	activities	for	which	the	right	of	offset	does	not	exist	or	we	do	not	intend	to	exercise	our	right	of	offset.	Our	accounting policy	for	such	outstanding	checks	is	to	include	them	in	settlement	payables	on	the	Consolidated	Balance	Sheet	and	operating	cash	flows	on	the	Consolidated	Statements of	Cash	Flows.	The	payment	solution	services	that	give	rise	to	these	settlement	balances	are	separate	and	distinct	from	those	settlement	activities	referred	to	under	(b) Cash	and	Cash	Equivalents,	where	the	services	we	provide	primarily	facilitate	the	movement	of	funds.

# (g) Goodwill

Goodwill	represents	the	excess	of	cost	over	the	fair	value	of	identifiable	assets	acquired	and	liabilities	assumed	in	business	combinations.	FASB	ASC	Topic	350, Intangibles	—	Goodwill	and	Other,	requires	that	goodwill	and	other	intangible	assets	with	indefinite	useful	lives	not	be	amortized,	but	rather	be	tested	for	impairment annually,	or	more	frequently	if	circumstances	indicate	potential	impairment.	The	guidance	allows	an	entity	first	to	assess	qualitatively	whether	it	is	more	likely	than	not that	a	reporting	unit's	carrying	amount	exceeds	its	fair	value,	referred	to	as	"step	zero."	If	an	entity	concludes	that	it	is	more	likely	than	not	that	a	reporting	unit's	fair value	is	less	than	its	carrying	amount	(that	is,	a	likelihood	of	more	than	50	percent),	the	"step	one"	quantitative	assessment	must	be	performed	for	that	reporting	unit. ASC	Topic	350	provides	examples	of	events	and	circumstances	that	should	be	considered	in	performing	the	"step	zero"	qualitative	assessment,	including macroeconomic	conditions,	industry	and	market	considerations,	cost	factors,	overall	financial	performance,	events	affecting	a	reporting	unit	or	the	entity	as	a	whole	and a	sustained	decrease	in	share	price.

In	applying	the	quantitative	analysis,	we	determine	the	fair	value	of	our	reporting	units	based	on	a	weighted	average	of	multiple	valuation	techniques,	principally	a combination	of	an	income	approach	and	a	market	approach,	which	are	Level	3	and	Level	2	type	measurements.	The	income	approach	calculates	a	value	based	upon	the present	value	of	estimated	future	cash	flows,	while	the	market	approach	uses	earnings	multiples	of	similarly	situated	guideline	public	companies.	If	the	fair	value	of	a reporting	unit	exceeds	the	carrying	value	of	the	reporting	unit's	net	assets,	goodwill	is	not	impaired	and	further	testing	is	not	required.	We	engaged	independent specialists	to	perform	valuations	of	our	reporting	units	effective	January	1,	2015	in

conjunction	with	our	re-segmentation,	and	prior	to	that	in	2012.	There	was	a	substantial	excess	of	fair	value	over	carrying	value	for	each	of	our	reporting	units	in	both the	2015	and	2012	independent	valuations.

The	Company	assesses	goodwill	for	impairment	on	an	annual	basis	during	the	fourth	quarter	using	a	September	30	measurement	date	unless	circumstances	require	a more	frequent	measurement.	For	each	of	2016,	2015,	and	2014,	we	began	our	assessment	with	the	step	zero	qualitative	analysis.	In	performing	the	step	zero	qualitative analysis	for	each	year,	examining	those	factors	most	likely	to	affect	our	valuations,	we	concluded	that	it	remained	more	likely	than	not	that	the	fair	value	of	each	of	our reporting	units	continued	to	exceed	their	carrying	amounts.	Consequently,	we	did	not	perform	a	step	one	quantitative	analysis	specifically	for	the	purpose	of	our	annual impairment	test	in	any	year	presented	in	these	financial	statements.

# (h) Long-Lived	Assets

Long-lived	assets	and	intangible	assets	with	finite	useful	lives	are	reviewed	for	impairment	whenever	events	or	changes	in	circumstances	indicate	that	the	carrying amount	of	an	asset	may	not	be	recoverable.	Recoverability	of	assets	to	be	held	and	used	is	measured	by	comparison	of	the	carrying	amount	of	an	asset	to	estimated undiscounted	future	cash	flows	expected	to	be	generated	by	the	asset,	which	are	Level	3-type	measurements.	If	the	carrying	amount	of	an	asset	exceeds	its	estimated future	cash	flows,	an	impairment	charge	is	recognized	in	the	amount	by	which	the	carrying	amount	of	the	asset	exceeds	the	fair	value	of	the	asset.

# (i) Intangible	Assets

The	Company	has	intangible	assets	that	consist	primarily	of	customer	relationships	and	trademarks	that	are	recorded	in	connection	with	acquisitions	at	their	fair value	based	on	the	results	of	valuation	analyses.	Customer	relationships	are	amortized	over	their	estimated	useful	lives	using	an	accelerated	method	that	takes	into consideration	expected	customer	attrition	rates	up	to	a	10-year	period.	Intangible	assets	with	finite	lives	(principally	customer	relationships	and	certain	trademarks)	are reviewed	for	impairment	in	accordance	with	FASB	ASC	Section	360-10-35,	Impairment	or	Disposal	of	Long-Lived	Assets,	while	certain	trademarks	determined	to	have indefinite	lives	are	reviewed	for	impairment	at	least	annually	in	accordance	with	FASB	ASC	Topic	350.	Similar	to	the	guidance	for	goodwill,	ASC	Topic	350	allows	an organization	to	first	perform	a	qualitative	assessment	of	whether	it	is	more	likely	than	not	that	an	asset	has	been	impaired.

We	engaged	independent	specialists	to	perform	a	valuation	of	our	indefinite	lived	intangible	assets	in	2016	and	2015,	and	prior	to	that	in	2012,	using	a	form	of income	approach	valuation	known	as	the	relief-from-royalty	method,	which	is	a	Level	3	type	measurement.	For	2016,	we	proceeded	directly	to	a	step	one	quantitative analysis.	There	was	an	excess	of	fair	value	over	carrying	value	for	each	of	our	indefinite-lived	intangible	assets	in	the	2016	and	2015	independent	valuations.	For	2014, we	began	our	assessment	with	the	step	zero	qualitative	analysis	because	there	was	a	substantial	excess	of	fair	value	over	carrying	value	for	each	of	our	indefinite-lived intangible	assets	based	on	the	2012	valuation.	Based	upon	the	results	of	these	assessments,	there	were	no	indications	of	impairment.

# (j) Computer	Software

Computer	software	includes	software	acquired	in	business	combinations,	purchased	software	and	capitalized	software	development	costs.	Software	acquired	in business	combinations	is	generally	valued	using	the	relief-from-royalty	method,	a	Level	3	type	measurement.	Purchased	software	is	recorded	at	cost	and	amortized using	the	straight-line	method	over	its	estimated	useful	life	and	software	acquired	in	business	combinations	is	recorded	at	its	fair	value	and	amortized	using	straight-line or	accelerated	methods	over	its	estimated	useful	life,	ranging	from	five	to	10	years.

The	capitalization	of	software	development	costs	is	governed	by	FASB	ASC	Subtopic	985-20	if	the	software	is	to	be	sold,	leased	or	otherwise	marketed,	or	by FASB	ASC	Subtopic	350-40	if	the	software	is	for	internal	use.	After	the	technological	feasibility	of	the	software	has	been	established	(for	software	to	be	marketed)	or	at the	beginning	of	application	development	(for	internal-use	software),	software	development	costs,	which	primarily	include	salaries	and	related	payroll	costs	and	costs	of independent	contractors	incurred	during	development,	are	capitalized.	Research	and	development	costs	incurred	prior	to	the	establishment	of	technological	feasibility (for	software	to	be	marketed)	or	prior	to	application	development	(for	internal-use

software),	are	expensed	as	incurred.	Software	development	costs	are	amortized	on	a	product-by-product	basis	commencing	on	the	date	of	general	release	(for	software	to be	marketed)	or	the	date	placed	in	service	(for	internal-use	software).	Software	development	costs	for	software	to	be	marketed	are	amortized	using	the	greater	of	(1)	the straight-line	method	over	its	estimated	useful	life,	which	ranges	from	three	to	10	years,	or	(2)	the	ratio	of	current	revenues	to	total	anticipated	revenues	over	its	useful life.

# (k) Deferred	Contract	Costs

Costs	of	sales,	including	costs	incurred	for	bid	and	proposal	activities,	are	generally	expensed	as	incurred.	However,	certain	costs	incurred	upon	initiation	of	a contract,	including	sales	commissions,	are	deferred	and	amortized	as	expense	over	the	contract	life.	These	costs	represent	incremental	external	costs	or	certain	specific internal	costs	that	are	directly	related	to	the	contract	acquisition	or	transition	activities.

In	the	event	indications	exist	that	a	particular	deferred	contract	cost	balance	may	be	impaired,	undiscounted	estimated	cash	flows	of	the	contract	are	projected	over its	remaining	term	and	compared	to	the	unamortized	deferred	contract	cost	balance.	If	the	projected	cash	flows	are	not	adequate	to	recover	the	unamortized	cost	balance, the	balance	would	be	adjusted	to	equal	the	contract's	net	realizable	value,	including	any	termination	fees	provided	for	under	the	contract,	in	the	period	such	a determination	is	made.

# (l) Property	and	Equipment

Property	and	equipment	is	recorded	at	cost,	less	accumulated	depreciation	and	amortization.	Depreciation	and	amortization	are	computed	primarily	using	the straight-line	method	based	on	the	estimated	useful	lives	of	the	related	assets:	30	years	for	buildings	and	three	to	seven	years	for	furniture,	fixtures	and	computer equipment.	Leasehold	improvements	are	amortized	using	the	straight-line	method	over	the	lesser	of	the	initial	term	of	the	applicable	lease	or	the	estimated	useful	lives	of such	assets.

# (m) Income	Taxes

The	Company	recognizes	deferred	income	tax	assets	and	liabilities	for	temporary	differences	between	the	financial	reporting	basis	and	the	tax	basis	of	the Company's	assets	and	liabilities	and	expected	benefits	of	using	net	operating	loss	and	credit	carryforwards.	Deferred	income	tax	assets	and	liabilities	are	measured	using enacted	tax	rates	expected	to	apply	to	taxable	income	in	the	years	in	which	those	temporary	differences	are	expected	to	be	recovered	or	settled.	The	impact	on	deferred income	taxes	of	changes	in	tax	rates	and	laws,	if	any,	is	reflected	in	the	Consolidated	Financial	Statements	in	the	period	enacted.	A	valuation	allowance	is	established	for any	portion	of	a	deferred	income	tax	asset	for	which	management	believes	it	is	more	likely	than	not	that	the	Company	will	not	be	able	to	realize	the	benefits	of	all	or	a portion	of	that	deferred	income	tax	asset.

# (n) Revenue	Recognition

The	Company	generates	revenues	from	the	delivery	of	bank	processing,	credit	and	debit	card	and	wealth	management	processing	services,	other	payment processing	services,	professional	services,	software	licensing,	software	as	a	service	("SaaS"),	business	process	as	a	service	("BPaaS"),	cloud	revenue	and	software	related services.	The	Company	recognizes	revenue	when:	(i)	evidence	of	an	arrangement	exists;	(ii)	delivery	has	occurred;	(iii)	the	fees	are	fixed	or	determinable;	and (iv)	collection	is	considered	probable.	Taxes	collected	from	customers	and	remitted	to	governmental	authorities	are	not	included	in	revenue.	Revenue	generated	from contracts	executed	outside	of	our	North	American	operations	represented	approximately	24%,	22%	and	22%	of	total	revenue	in	2016,	2015	and	2014,	respectively.

The	Company	enters	into	arrangements	with	customers	to	provide	services,	software	and	software-related	services	such	as	post-contract	customer	support	and implementation	and	training	either	individually	or	as	part	of	an	integrated	offering	of	multiple	services.	The	revenues	for	services	provided	under	these	multiple	element arrangements	are	recognized	in	accordance	with	the	applicable	revenue	recognition	accounting	principles	as	further	described	below.

In	multiple-element	arrangements,	consideration	is	allocated	to	each	deliverable	using	the	relative	selling	price	method.	The	selling	price	for	each	deliverable	is based	on	vendor-specific	objective	evidence	("VSOE")	if	available,	third-party	evidence	("TPE")	if	VSOE	is	not	available,	or	estimated	selling	price	("ESP")	if	neither VSOE	or	TPE	are	available.	A

delivered	item	in	a	multiple	element	arrangement	is	considered	a	separate	unit	of	accounting	if	(a)	the	item	has	value	to	the	customer	on	a	standalone	basis;	and	(b) delivery	or	performance	of	the	undelivered	item	or	items	is	considered	probable	and	substantially	in	the	Company's	control	if	the	arrangement	includes	a	general	right	of return	relative	to	the	delivered	item.

We	establish	VSOE	of	selling	price	using	the	price	charged	when	the	same	element	is	sold	separately,	or	in	the	case	of	post-contract	customer	support	,	when	a substantive	stated	renewal	rate	is	provided	to	the	customer.	In	certain	circumstances,	the	Company	is	not	able	to	establish	VSOE	for	all	deliverables	in	a	multiple element	arrangement.	This	may	be	due	to	infrequent	standalone	sales	for	an	element,	a	limited	sales	history	for	new	solutions	or	pricing	within	a	broader	range	than permissible	by	our	policy	to	establish	VSOE.	In	those	circumstances,	we	proceed	to	the	alternative	levels	in	the	hierarchy	of	determining	selling	price.	TPE	of	selling price	is	established	by	evaluating	largely	similar	and	interchangeable	competitor	products	or	services	in	standalone	sales	to	similarly	situated	customers.	The	Company	is typically	not	able	to	determine	TPE	and	we	rarely	use	this	measure	since	we	are	generally	unable	to	reliably	verify	standalone	prices	of	competitive	solutions.	ESP	is established	in	those	instances	where	neither	VSOE	nor	TPE	are	available,	considering	internal	factors	such	as	margin	objectives,	pricing	practices	and	controls,	customer segment	pricing	strategies	and	the	product	life	cycle.	Consideration	is	also	given	to	market	conditions	such	as	competitor	pricing	strategies	and	industry	technology	life cycles.

The	Company's	arrangements	with	multiple	deliverables	may	include	one	or	more	elements	that	are	subject	to	the	software	revenue	recognition	guidance.	The consideration	for	these	multiple	element	arrangements	is	allocated	to	the	software	deliverables	and	the	non-software	deliverables	based	on	the	relative	selling	prices	of all	of	the	elements	in	the	arrangement	using	the	above	hierarchy.	The	appropriate	revenue	recognition	guidance	is	then	applied	to	the	respective	software	and	non- software	elements.

The	following	describes	the	Company's	primary	types	of	revenues	and	its	revenue	recognition	policies	as	they	pertain	to	the	types	of	transactions	the	Company enters	into	with	its	customers.

# Processing	Services	Revenues

Processing	services	are	comprised	of	data	processing	and	application	and/or	facility	management,	including	our	SaaS	and	cloud	offerings.	Revenues	from processing	services	are	typically	volume-	or	activity-based	depending	on	factors	such	as	the	number	of	accounts	processed,	transactions	or	trades	processed,	users, number	of	hours	of	services	or	computer	resources	used.	They	can	also	be	based	on	minimum	monthly	usage	fees.	Revenues	from	these	arrangements	are	recognized	as services	are	performed.	Processing	services	represented	67%	of	total	revenues	in	2016	and	75%	of	total	revenues	in	2015	and	2014.

Technology	or	service	components	from	third	parties	are	frequently	embedded	in	or	combined	with	our	applications	or	service	offerings.	We	are	often	responsible for	billing	the	client	in	these	arrangements	and	transmitting	the	applicable	fees	to	the	third	party.	Whether	a	company	should	recognize	revenue	based	on	the	gross amount	billed	to	a	customer	or	the	net	amount	retained	is	a	matter	of	judgment	that	depends	on	the	relevant	facts	and	circumstances.	Certain	factors	or	indicators	have been	identified	in	the	authoritative	literature	that	should	be	considered	in	the	evaluation.	In	certain	of	these	arrangements,	we	have	concluded	that	recognizing	the	gross amount	billed	is	appropriate	while	in	others	we	recognize	the	net	amount	retained,	depending	upon	the	level	of	our	contractual	responsibilities	and	obligations	for delivering	solutions	to	end	customers.

# Professional	Services	Revenues

Revenues	and	costs	related	to	implementation,	conversion	and	programming	services	associated	with	the	Company's	data	processing	and	application	management agreements	during	the	implementation	phase	are	deferred	and	subsequently	recognized	using	the	straight-line	method	over	the	term	of	the	related	services	agreement when	these	upfront	services	do	not	have	standalone	value	or	if	revenue	otherwise	allocable	to	these	elements	is	contingent	upon	delivery	of	other	elements	in	the arrangement.	Revenues	and	costs	related	to	other	consulting	service	agreements	are	recognized	as	the	services	are	provided,	assuming	the	separation	criteria	outlined above	are	satisfied.	Professional	services	as	a	percentage	of	total	revenues	were	15%,	14%	and	15%	in	2016,	2015	and	2014,	respectively.	A	significant	portion	of	our professional	services	revenues	is	derived	from	contracts	for	dedicated	personnel	resources	who	are	often	working	full-time	at	a	client	site	and	under	their	direction. These	revenues	generally	re-occur	as	contracts	are	renewed.

# License	and	Software	Related	Revenues

The	Company	recognizes	software	license	and	post-contract	customer	support	fees,	as	well	as	associated	implementation,	training,	conversion	and	programming fees	in	accordance	with	FASB	ASC	Subtopic	985-605.	Initial	license	fees	are	recognized	when	a	contract	exists,	the	fee	is	fixed	or	determinable,	software	delivery	has occurred	and	collection	of	the	receivable	is	deemed	probable,	provided	that	VSOE	of	fair	value	has	been	established	for	any	undelivered	elements	in	the	arrangement.	If evidence	of	fair	value	of	all	undelivered	elements	exists	but	evidence	does	not	exist	for	one	or	more	delivered	elements,	then	revenue	is	recognized	using	the	residual method.	Under	the	residual	method,	the	fair	value	of	the	undelivered	elements	is	deferred	and	the	remaining	portion	of	the	arrangement	fee	is	recognized	as	revenue.	If evidence	of	fair	value	does	not	exist	for	one	or	more	undelivered	elements	of	a	contract,	then	all	revenue	is	deferred	until	all	elements	are	delivered	or	VSOE	of	fair value	is	determined	for	all	remaining	undelivered	elements.	Revenue	from	post-contract	customer	support	is	recognized	ratably	over	the	term	of	the	agreement.	The Company	records	deferred	revenue	for	all	billings	invoiced	prior	to	revenue	recognition.

Software	license	fees	in	certain	of	our	SunGard	businesses	include	rental	fees	for	clients	who	would	prefer	a	periodic	fee	instead	of	a	larger	up-front	payment.	Software rentals	combine	the	license	and	maintenance	services	into	a	bundled	element,	and	the	fee	is	recognized	ratably	over	the	corresponding	services	period	when	the	client	has the	right	to	use	the	software	product	and	receive	maintenance	and	support	services.

Software	license	revenue	and	related	post-contract	customer	support	represented	approximately	16%,	9%	and	7%	of	total	revenues	in	2016,	2015	and	2014, respectively,	with	over	60%	of	the	revenue	representing	post-contractual	support	revenue.

When	the	arrangement	with	the	customer	includes	significant	customization,	modification,	or	production	of	software,	the	Company	recognizes	revenue	applying contract	accounting.	For	elements	accounted	for	under	contract	accounting,	revenue	is	recognized	using	the	percentage-of-completion	method	since	reasonably dependable	estimates	of	revenues	and	contract	hours	applicable	to	various	elements	of	a	contract	can	be	made.	Cost-to-cost	or	efforts-expended	(labor	hours)	methods are	used	to	measure	progress	toward	completion.	Revenues	in	excess	of	billings	on	these	agreements	are	recorded	as	unbilled	receivables	and	are	included	in	trade receivables.	Billings	in	excess	of	revenue	recognized	on	these	agreements	are	recorded	as	deferred	revenue	until	revenue	recognition	criteria	are	met.	Changes	in estimates	for	revenues,	costs	and	profits	are	recognized	in	the	period	in	which	they	are	determinable.	If	and	when	the	Company's	estimates	indicate	that	the	entire contract	will	be	performed	at	a	loss,	a	provision	for	the	entire	loss	is	recorded	in	that	accounting	period.

In	arrangements	where	the	licensed	software	includes	hosting	the	software	for	the	customer,	a	software	element	is	only	considered	present	if	the	customer	has	the contractual	right	to	take	possession	of	the	software	at	any	time	during	the	hosting	period	without	significant	penalty	and	it	is	feasible	for	the	customer	to	either	operate the	software	on	their	own	hardware	or	contract	with	another	vendor	to	host	the	software.	If	the	arrangement	meets	these	criteria,	as	well	as	the	other	criteria	for recognition	of	the	license	revenues	described	above,	a	software	element	is	present	and	license	revenues	are	recognized	when	the	software	is	delivered	and	hosting revenues	are	recognized	as	the	service	is	provided.	If	a	separate	software	element	as	described	above	is	not	present,	the	related	revenues	are	combined	and	recognized ratably	over	the	hosting	or	maintenance	period,	whichever	is	longer.

# Hardware	and	Other	Revenues

Hardware	and	other	miscellaneous	revenues	including	termination	fees	represented	approximately	2%,	2%	and	3%	of	our	total	revenues	in	2016,	2015	and	2014, respectively,	and	are	recognized	following	the	separation	and	recognition	criteria	discussed	above.	The	Company	generally	does	not	stock	in	inventory	the	hardware products	sold,	but	arranges	for	delivery	of	hardware	from	third-party	suppliers.	The	Company	evaluates	the	gross	vs.	net	indicators	for	these	transactions	and	records	the revenue	related	to	hardware	transactions	on	a	gross	basis	as	appropriate	and	the	related	costs	are	included	in	cost	of	revenue	as	appropriate	if	the	Company	is	considered the	primary	obligor	by	the	customer,	bears	risk	of	loss	and	has	latitude	in	establishing	prices	on	the	equipment.

In	May	2014,	the	FASB	issued	ASU	No.	2014-09,	"Revenue	from	Contracts	with	Customers	(Topic	606)"	("ASU	2014-09").	ASU	2014-09	amends	substantially all	authoritative	literature	for	revenue	recognition,	including	industry-specific	requirements,	and	converges	the	guidance	under	this	topic	with	that	of	the	International Financial	Reporting	Standards.	The	ASU	implements	a	five-step	process	for	customer	contract	revenue	recognition	that	focuses	on	transfer	of	control,	as	opposed	to transfer	of	risk	and	rewards.	The	amendment	also	requires	enhanced	disclosures	regarding	the	nature,	amount,	timing	and	uncertainty	of	revenues	and	cash	flows	from contracts	with	customers.	The	FASB	has	recently	issued	several	amendments	to

Topic	606,	including	further	guidance	on	principal	versus	agent	considerations,	clarification	on	identifying	performance	obligations	and	accounting	for	licenses	of intellectual	property.

# (o) Cost	of	Revenue	and	Selling,	General	and	Administrative	Expenses

Cost	of	revenue	includes	payroll,	employee	benefits,	occupancy	costs	and	other	costs	associated	with	personnel	employed	in	customer	service	and	service	delivery roles,	including	program	design	and	development	and	professional	services.	Cost	of	revenue	also	includes	data	processing	costs,	amortization	of	software,	customer relationship	intangible	assets	and	depreciation	on	operating	assets.

Selling,	general	and	administrative	expenses	include	payroll,	employee	benefits,	occupancy	and	other	costs	associated	with	personnel	employed	in	sales,	marketing, human	resources,	finance,	risk	management	and	other	administrative	roles.	Selling,	general	and	administrative	expenses	also	include	depreciation	on	non-operating corporate	assets,	advertising	costs	and	other	marketing-related	programs.

# (p) Stock-Based	Compensation	Plans

The	Company	accounts	for	stock-based	compensation	plans	using	the	fair	value	method.	Thus,	compensation	cost	is	measured	based	on	the	fair	value	of	the	award	at the	grant	date	and	is	recognized	over	the	service	period.	Certain	of	our	stock	awards	also	contain	performance	conditions.	In	those	circumstances,	compensation	cost	is recognized	over	the	service	period	when	it	is	probable	the	outcome	of	that	performance	condition	will	be	achieved.	If	the	Company	concludes	at	any	point	prior	to completion	of	the	requisite	service	period	that	it	is	not	probable	that	the	performance	condition	will	be	met,	any	previously	recorded	expense	would	be	reversed.

# (q) Foreign	Currency	Translation

The	functional	currency	for	the	foreign	operations	of	the	Company	is	either	the	U.S.	Dollar	or	the	local	foreign	currency.	For	foreign	operations	where	the	local currency	is	the	functional	currency,	the	translation	into	U.S.	Dollars	for	consolidation	is	performed	for	balance	sheet	accounts	using	exchange	rates	in	effect	at	the balance	sheet	date	and	for	revenue	and	expense	accounts	using	the	average	exchange	rate	during	the	period.	The	adjustments	resulting	from	the	translation	are	included in	accumulated	other	comprehensive	earnings	(loss)	in	the	Consolidated	Statements	of	Equity	and	Consolidated	Statements	of	Comprehensive	Earnings	and	are	excluded from	net	earnings.

Gains	or	losses	resulting	from	foreign	currency	transactions	are	included	in	other	income.

# (r) Management	Estimates

The	preparation	of	these	Consolidated	Financial	Statements	in	conformity	with	U.S.	generally	accepted	accounting	principles	requires	management	to	make estimates	and	assumptions	that	affect	the	reported	amounts	of	assets	and	liabilities	and	disclosure	of	contingent	assets	and	liabilities	at	the	date	of	the	Consolidated Financial	Statements	and	the	reported	amounts	of	revenues	and	expenses	during	the	reporting	periods.	Actual	results	could	differ	from	those	estimates.

# (s) Provision	for	Check	Guarantee	Losses

In	the	Company's	check	guarantee	business,	if	a	guaranteed	check	presented	to	a	merchant	customer	is	dishonored	by	the	check	writer's	bank,	the	Company reimburses	the	merchant	customer	for	the	check's	face	value	and	pursues	collection	of	the	amount	from	the	delinquent	check	writer.	Loss	provisions	and	anticipated recoveries	are	determined	by	performing	a	historical	analysis	of	the	Company's	check	loss	and	recovery	experience	and	considering	other	factors	that	could	affect	that experience	in	the	future.	Such	factors	include	the	general	economy,	the	overall	industry	mix	of	customer	volumes,	statistical	analysis	of	check	fraud	trends	within customer	volumes,	and	the	quality	of	returned	checks.	The	estimated	check	returns	and	recovery	amounts	are	subject	to	risk	that	actual	amounts	returned	and	recovered may	be	different	than	the	Company's	estimates.	The	Company	had	accrued	claims	payable	balances	of	$9	million	and	$11	million	as	of	December	31,	2016	and	2015, respectively,	related	to	these	estimations.	The	Company	had	accrued	claims	recoverable	of	$12	million	and	$13	million	as	of	December	31,	2016	and	2015,	respectively, related	to	these	estimations.	In	addition,	the	Company	recorded	provisions	for	check	guarantee	losses,	net	of	anticipated	recoveries	excluding	service	fees,	of	$40 million,	$49	million	and	$57	million	for	the	years	ended	December	31,	2016,	2015	and	2014,	respectively.	The	amount	paid	to	merchant	customers,	net	of	amounts recovered	from	check	writers	excluding	service	fees,	was	$32	million,	$41	million	and	$52	million	for	the	years	ended	December	31,	2016,	2015	and	2014,	respectively.

# (t) Net	Earnings	per	Share

The	basic	weighted	average	shares	and	common	stock	equivalents	for	the	years	ended	December	31,	2016,	2015	and	2014	are	computed	using	the	treasury	stock method.

Net	earnings	and	earnings	per	share	for	the	years	ended	December	31,	2016,	2015	and	2014	are	as	follows	(in	millions,	except	per	share	data):

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| Earnings\tfrom\tcontinuing\toperations\tattributable\tto\tFIS,\tnet\tof\ttax | $567 | \t $639 | \t $690 |
| Earnings\t(loss)\tfrom\tdiscontinued\toperations\tattributable\tto\tFIS,\tnet\tof\ttax | 1 | (7) | (11) |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders | $568 | \t $632 | \t $679 |
| Weighted\taverage\tshares\toutstanding\t—\tbasic | 326 | 285 | 285 |
| Plus:\tCommon\tstock\tequivalent\tshares | 4 | 4 | 4 |
| Weighted\taverage\tshares\toutstanding\t—\tdiluted | 330 | 289 | 289 |
| Net\tearnings\tper\tshare\t—\tbasic\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\tstockholders | $1.74 | \t $2.24 | \t $2.42 |
| Net\tearnings\t(loss)\tper\tshare\t—\tbasic\tfrom\tdiscontinued\toperations\tattributable\tto\tFIS\tcommon\nstockholders | — | (0.03) | (0.04) |
| Net\tearnings\tper\tshare\t—\tbasic\tattributable\tto\tFIS\tcommon\tstockholders\t* | $1.74 | \t $2.22 | \t $2.38 |
| Net\tearnings\tper\tshare\t—\tdiluted\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\tstockholders | $1.72 | \t $2.21 | \t $2.39 |
| Net\tearnings\t(loss)\tper\tshare\t—\tdiluted\tfrom\tdiscontinued\toperations\tattributable\tto\tFIS\tcommon\nstockholders | — | (0.03) | (0.04) |
| Net\tearnings\tper\tshare\t—\tdiluted\tattributable\tto\tFIS\tcommon\tstockholders\t* | $1.72 | \t $2.19 | \t $2.35 |

Options	to	purchase	approximately	3	million,	4	million	and	4	million	shares	of	our	common	stock	for	the	years	ended	December	31,	2016,	2015	and	2014, respectively,	were	not	included	in	the	computation	of	diluted	earnings	per	share	because	they	were	anti-dilutive.

# (u) Certain	Reclassifications

Certain	reclassifications	have	been	made	in	the	2015	and	2014	Consolidated	Financial	Statements	to	conform	to	the	classifications	used	in	2016.

# (3) Acquisitions

# SunGard

FIS	completed	the	SunGard	acquisition	on	November	30,	2015,	and	SunGard's	results	of	operations	and	financial	position	are	included	in	the	Consolidated Financial	Statements	from	and	after	the	date	of	acquisition.	The	SunGard	acquisition	increased	our	existing	portfolio	of	solutions	to	automate	a	wide	range	of	complex business	processes	for	financial	services	institutions	and	corporate	and	government	treasury	departments,	adding	trading,	securities	operations,	administering	investment portfolios,	accounting	for	investment	assets,	and	managing	risk	and	compliance	requirements.

     Through	a	series	of	mergers,	FIS	acquired	100	percent	of	the	equity	of	SunGard,	for	a	total	purchase	price	as	follows	(in	millions):

As	of	December	31,	2015,	we	recorded	a	preliminary	allocation	of	the	purchase	price	to	SunGard	tangible	and	identifiable	intangible	assets	acquired	and	liabilities assumed	based	on	their	estimated	fair	values	as	of	November	30,	2015.	The	provisional	amounts	for	intangible	assets	were	based	on	independent	third-party	valuations performed.	Land	and	building	valuations	were	based	on	appraisals	performed	by	certified	property	appraisers.	Goodwill	was	recorded	as	the	residual	amount

by	which	the	purchase	price	exceeded	the	provisional	fair	value	of	the	net	assets	acquired.	Land	and	building	valuations	based	on	appraisals	performed	by	certified property	appraisers	were	underway	as	of	December	31,	2015	and	were	completed	during	2016.	Our	evaluations	of	the	facts	and	circumstances	available	as	of	November 30,	2015	to	assign	fair	values	to	other	assets	acquired	and	liabilities	assumed	has	been	completed	as	of	December	31,	2016,	as	are	our	assessments	of	the	economic characteristics	of	the	acquired	software	and	other	intangibles.

In	accordance	with	ASU	2015-16,	Business	Combinations	(Topic	805):	Simplifying	the	Accounting	for	Measurement-Period	Adjustments,	the	financial	statements were	not	retrospectively	adjusted	for	any	measurement-period	adjustments	that	occurred	in	subsequent	periods.	Rather,	any	adjustments	to	provisional	amounts	that	were identified	during	the	measurement	period	are	recorded	in	the	reporting	period	in	which	the	adjustment	was	determined.	During	the	year	ended	December	31,	2016, adjustments	were	recorded	to	increase	the	fair	values	assigned	to	intangible	assets,	deferred	taxes,	other	liabilities	and	property	and	equipment	and	to	reduce	the	value assigned	to	goodwill.	We	are	also	required	to	record,	in	the	same	period's	financial	statements	in	which	adjustments	are	recorded,	the	effect	on	earnings	of	changes	in depreciation,	amortization,	or	other	income	effects,	if	any,	as	a	result	of	any	change	to	the	provisional	amounts,	calculated	as	if	the	accounting	adjustment	had	been completed	at	the	acquisition	date.	Additional	depreciation	and	amortization	of	$5	million	that	would	have	been	recognized	in	2015	was	recorded	during	the	year	ended December	31,	2016	related	to	the	changes	in	provisional	values	of	intangible	assets.

The	purchase	price	allocation	as	adjusted	for	measurement	period	adjustments	recorded	through	December	31,	2016	is	as	follows	(in	millions):

The	gross	contractual	amount	of	trade	receivables	acquired	was	approximately	$546	million.	The	difference	between	that	total	and	the	amount	reflected	above represents	our	best	estimate	at	the	acquisition	date	of	the	contractual	cash	flows	not	expected	to	be	collected.	This	difference	was	derived	using	SunGard's	historical	bad debts,	sales	allowances	and	collection	trends.

In	connection	with	the	SunGard	acquisition,	we	also	granted	approximately	2	million	restricted	stock	units	in	replacement	of	similar	outstanding	unvested	awards held	by	SunGard	employees.	The	amounts	attributable	to	services	already	rendered	were	included	as	an	adjustment	to	the	purchase	price	and	the	amounts	attributable	to future	services	will	be	expensed	over	the	remaining	vesting	period	based	on	a	valuation	as	of	the	date	of	closing.

# Pro	Forma	Results

SunGard's	revenues	and	pre-tax	loss	from	continuing	operations	of	$254	million	and	$12	million,	respectively,	from	November	30,	2015	through	December	31, 2015,	are	included	in	the	Consolidated	Statements	of	Earnings.	Selected	unaudited	pro	forma	results	of	operations	for	the	years	ended	December	31,	2015	and	2014, assuming	the	SunGard	acquisition	had	occurred	as	of	January	1,	2014,	are	presented	for	comparative	purposes	below	(in	millions,	except	per	share	amounts):

|  | 2015 | 2014 |
| :--- | :--- | :--- |
| Total\tprocessing\tand\tservices\trevenues | $9,139 | $8,986 |
| Net\tearnings\t(loss)\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\tstockholders | $389 | $(35) |
| Pro\tforma\tearnings\t(loss)\tper\tshare\t-\tbasic\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\tstockholders | $1.19 | $(0.11) |
| Pro\tforma\tearnings\t(loss)\tper\tshare\t-\tdiluted\tfrom\tcontinuing\toperations\tattributable\tto\tFIS\tcommon\tstockholders | $1.17 | $(0.11) |

Pro	forma	results	include	impairment	charges	of	$339	million	and	merger	and	integration	related	costs	of	$200	million	on	a	pre-tax	basis	for	2014.	The	pro	forma results	do	not	include	any	anticipated	synergies,	but	do	include	the	impacts	of	purchase	accounting	adjustments	and	conforming	commission	policies.	SunGard	elected	to expense	commission	payments	as	incurred	whereas	FIS	recognizes	commission	expense	over	the	period	that	the	related	revenue	is	recognized.	The	pro	forma	earnings (pre-tax)	have	been	increased	by	$12	million	and	$15	million	for	2015	and	2014,	respectively,	to	conform	SunGard's	expense	recognition	to	FIS'	policy.	SunGard's policies	and	practices	surrounding	software	development	and	capitalization	of	related	costs	differed	from	those	used	by	FIS	and	were	conformed	to	those	of	FIS prospectively.	As	a	result,	more	development	costs	qualify	to	be	capitalized	than	SunGard	had	recorded	historically.	It	is	not	practicable	to	determine	what	the	impact	of the	changes	in	application	of	the	capitalization	principles	would	have	been	for	purposes	of	these	pro	forma	results.

Excluding	the	impact	of	deferred	revenue	adjustments,	total	pro	forma	revenues	would	be	$9,149	million	and	$9,223	million	for	2015	and	2014,	respectively.

# Other	Acquisitions

The	Company	completed	a	number	of	other	acquisitions	in	2015	and	2014	that	were	not	significant,	individually	or	in	the	aggregate,	including	Clear2Pay	NV. ("Clear2Pay")	for	$462	million	in	October	2014,	Reliance	Financial	Corporation	("Reliance")	for	$110	million	in	July	2014,	and	Credit	Management	Solutions,	Inc. ("CMSI")	for	$29	million	in	April	2014.	The	results	of	operations	and	financial	position	of	these	entities	are	included	in	the	Consolidated	Financial	Statements	from	and after	the	date	of	acquisition.

The	addition	of	Clear2Pay	expanded	FIS'	global	payments	capabilities	and	enhanced	our	ability	to	deliver	differentiated	enterprise	payments	solutions.	Because	the Clear2Pay	purchase	price	was	denominated	in	Euros,	we	initiated	a	foreign	currency	forward	contract	to	purchase	Euros	and	sell	U.S.	Dollars	to	manage	the	risk	arising from	fluctuations	in	exchange	rates	until	the	closing.		As	this	derivative	did	not	qualify	for	hedge	accounting,	we	recorded	a	charge	of	$16	million	in	Other	income (expense),	net	during	the	third	quarter	of	2014.		This	forward	contract	was	settled	on	October	1,	2014.

Our	acquisition	of	Atlanta-based	Reliance	enabled	us	to	provide	a	full-service	wealth	management	and	retirement	offerings	encompassing	technology,	full	back-office operations	outsourcing,	custody	services	and	retirement	trust	and	fiduciary	services.

# Capco	Contingent	Consideration

The	Capco	purchase	price	in	2010	included	cash	consideration	of	$298	million	at	closing	plus	future	contingent	consideration	valued	at	$114	million	based	on targeted	operating	performance	in	2013	through	2015.	We	recorded	an	additional	charge	of	$85	million	in	December	2013	as	a	result	of	amendments	to	the	earn-out provisions	based	on	management's	outlook	and	increased	projections	of	Capco's	future	results	in	light	of	its	consistently	improving	performance.	The	amendments established	a	final	agreed	amount	in	total	cash	contingent	consideration	and	number	of	shares	in	equity	contingent	consideration,	subject	to	reduction	and	forfeiture provisions	if	operating	performance	targets	are	not	met.	The	liability	had	previously	been	reduced	by	$22	million	in	2011	and	increased	by	$44	million	in	2013	based	on forecasts	of	achievement	of	targeted	operating	performance.	No	adjustments	were	required	in	2016,	2015,	2014	and	2012.	The	remaining

contingent	consideration	liability	is	$6	million	as	of	December	31,	2016,	and	is	included	in	accounts	payable	and	accrued	liabilities	in	the	Consolidated	Balance	Sheets. The	remaining	payments	will	be	made	in	2017,	subject	to	any	forfeitures	and	indemnities.

In	conjunction	with	the	acquisition,	Capco	and	FIS	established	a	New	Hires	and	Promotions	Incentive	Plan	("NHP")	to	attract	new	employees	and	to	retain	and incent	existing	employees	and	management.	This	plan	provided	for	aggregate	payments	of	up	to	$68	million	to	eligible	participants	upon	achievement	of	targeted operating	performance	in	2013	through	2015.	The	NHP	was	amended	and	restated	in	December	2013	to:	(1)	fix	the	total	amount	payable	at	$43	million,	subject	to reduction	and	forfeiture	provisions;	(2)	establish	the	named	participants	and	their	respective	unit	allocations;	and	(3)	eliminate	any	continued	service	requirements	to	FIS by	the	participants	after	the	amendment	date.	Based	on	management's	expectation	that	the	operating	performance	measures	would	be	achieved,	the	liability	for	the NHPP	was	adjusted	to	the	present	value	of	the	amended	total	payout,	with	the	resulting	increase	of	$18	million	recorded	in	2013.	Prior	to	the	amendment,	the	expected liability	was	being	expensed	over	the	performance	period,	which	was	deemed	to	equal	the	service	period.

# (4) Property	and	Equipment

Property	and	equipment	as	of	December	31,	2016	and	2015	consists	of	the	following	(in	millions):

|  | 2016 | 2015 |
| :--- | :--- | :--- |
| Land | $31 | $30 |
| Buildings | 204 | 203 |
| Leasehold\timprovements | 137 | 139 |
| Computer\tequipment | 909 | 846 |
| Furniture,\tfixtures,\tand\tother\tequipment | 207 | 178 |
|  | 1,488 | 1,396 |
| Accumulated\tdepreciation\tand\tamortization | (862) | (785) |
|  | $626 | $611 |

During	the	years	ended	December	31,	2016	and	2015,	the	Company	entered	into	capital	lease	and	other	financing	obligations	of	$43	million	and	$9	million, respectively,	for	certain	computer	hardware	and	software.	The	assets	are	included	in	property	and	equipment	and	computer	software	and	the	remaining	capital	lease obligation	is	classified	as	long-term	debt	on	our	Consolidated	Balance	Sheets	as	of	December	31,	2016.	Periodic	payments	are	included	in	repayment	of	borrowings	on the	Consolidated	Statements	of	Cash	Flows.

Depreciation	and	amortization	expense	on	property	and	equipment,	including	that	recorded	under	capital	leases,	amounted	to	$185	million,	$139	million	and	$130 million	for	the	years	ended	December	31,	2016,	2015	and	2014,	respectively.

|  | IFS | GFS | Corporate	&amp;<br>Other | Total |
| :--- | :--- | :--- | :--- | :--- |
| Balance,\tDecember\t31,\t2014 | $6,627 | \t $1,990 | \t $261 | \t $8,878 |
| Goodwill\tacquired\tduring\t2015 | 1,049 | 4,653 | 301 | 6,003 |
| Goodwill\tdistributed\tthrough\tsale\tof\tnon-strategic\tassets | — | — | (98) | (98) |
| Purchase\tprice\tand\tforeign\tcurrency\tadjustments | — | (38) | — | (38) |
| Balance,\tDecember\t31,\t2015 | 7,676 | 6,605 | 464 | 14,745 |
| Purchase\tprice\tand\tforeign\tcurrency\tadjustments | — | (273) | 65 | (208) |
| Goodwill\trelating\tto\tPS&amp;E\tincluded\tin\tassets\theld\tfor\tsale | — | — | (359) | (359) |
| Balance,\tDecember\t31,\t2016 | $7,676 | \t $6,332 | \t $170 | \t $14,178 |

In	conjunction	with	the	organizational	modifications	in	the	first	quarter	of	2016,	we	reallocated	goodwill	associated	with	the	reclassified	businesses	based	on relative	fair	value	as	of	January	1,	2016.	We	refreshed	our	step	zero	qualitative	analysis,	identifying	no	indications	of	impairment	for	any	of	our	reporting	units.	In performing	the	step	zero	qualitative	analysis	for	2016,	examining	those	factors	most	likely	to	affect	our	valuations,	we	concluded	that	it	remained	more	likely	than	not that	the	fair	value	of	each	of	our	reporting	units	continued	to	exceed	their	carrying	amounts.	As	a	result,	no	reporting	units	were	at	risk	of	impairment	as	of	the September	30,	2016	measurement	date	(see	Note	2	(g)).

# (6) Intangible	Assets

Customer	relationships	intangible	assets	are	obtained	as	part	of	acquired	businesses	and	are	amortized	over	their	estimated	useful	lives,	generally	five	to	10	years, using	accelerated	methods.	Trademarks	determined	to	have	indefinite	lives	are	not	amortized.	Certain	other	trademarks	are	amortized	over	periods	ranging	up	to	15 years.	As	of	December	31,	2016	and	2015,	trademarks	carried	at	$80	million	and	$81	million,	respectively,	were	classified	as	indefinite-lived.

Intangible	assets	as	of	December	31,	2016	consist	of	the	following	(in	millions):

|  | Cost | Accumulated<br>Amortization | Net |
| :--- | :--- | :--- | :--- |
| Customer\trelationships | $6,367 | $(1,840) | $4,527 |
| Trademarks | 180 | (43) | 137 |
|  | $6,547 | $(1,883) | $4,664 |

|  | Cost | Accumulated<br>Amortization | Net |
| :--- | :--- | :--- | :--- |
| Customer\trelationships | $6,782 | $(1,782) | $5,000 |
| Trademarks | 181 | (22) | 159 |
|  | $6,963 | $(1,804) | $5,159 |

Amortization	expense	for	intangible	assets	with	finite	lives	was	$507	million,	$231	million	and	$215	million	for	the	years	ended	December	31,	2016,	2015	and 2014,	respectively.

Estimated	amortization	of	intangibles,	including	the	contract	intangible	in	our	Brazilian	Venture,	which	is	amortized	as	a	reduction	in	revenue,	for	the	next	five years	is	as	follows	(in	millions):

Computer	software	as	of	December	31,	2016	and	2015	consists	of	the	following	(in	millions):

|  | 2016 | 2015 |
| :--- | :--- | :--- |
| Software\tfrom\tbusiness\tacquisitions | $1,138 | $1,189 |
| Capitalized\tsoftware\tdevelopment\tcosts | 1,066 | 985 |
| Purchased\tsoftware | 172 | 126 |
| Computer\tsoftware | 2,376 | 2,300 |
| Accumulated\tamortization | (768) | (716) |
| Computer\tsoftware,\tnet\tof\taccumulated\tamortization | $1,608 | $1,584 |

Amortization	expense	for	computer	software	was	$396	million,	$229	million	and	$210	million	for	the	years	ended	December	31,	2016,	2015	and	2014,	respectively.

# (8) Deferred	Contract	Costs

Deferred	contract	costs	as	of	December	31,	2016	and	2015	consists	of	the	following	(in	millions):

|  | 2016 | 2015 |
| :--- | :--- | :--- |
| Installations\tand\tconversions\tin\tprogress | $57 | $34 |
| Installations\tand\tconversions\tcompleted,\tnet | 108 | 93 |
| Sales\tcommissions\tand\tother,\tnet | 145 | 126 |
| Deferred\tcontract\tcosts,\tnet | $310 | $253 |

Amortization	of	deferred	contract	costs	was	$87	million,	$71	million	and	$72	million	for	the	years	ended	December	31,	2016,	2015	and	2014,	respectively.

# (9) Accounts	Payable	and	Accrued	Liabilities

Accounts	payable	and	accrued	liabilities	as	of	December	31,	2016	and	2015	consists	of	the	following	(in	millions):

|  | 2016 | 2015 |
| :--- | :--- | :--- |
| Salaries\tand\tincentives | $379 | $325 |
| Accrued\tbenefits\tand\tpayroll\ttaxes | 98 | 114 |
| Trade\taccounts\tpayable\tand\tother\taccrued\tliabilities | 512 | 564 |
| Accrued\tinterest\tpayable | 89 | 62 |
| Taxes\tother\tthan\tincome\ttax | 62 | 65 |
| Capco\tacquisition\trelated\tliabilities | 6 | 66 |
| Total\taccounts\tpayable\tand\taccrued\tliabilities | $1,146 | $1,196 |

Long-term	debt	as	of	December	31,	2016	and	2015	consisted	of	the	following	(in	millions):

|  | 2016 | 2015 |
| :--- | :--- | :--- |
| 2017\tTerm\tLoans\t(1) | $— | $1,300 |
| 2018\tTerm\tLoans\t(2) | 550 | 1,500 |
| Senior\tNotes\tdue\tJune\t2017,\tinterest\tpayable\tsemi-annually\tat\t1.450% | 300 | 300 |
| Senior\tNotes\tdue\tApril\t2018,\tinterest\tpayable\tsemi-annually\tat\t2.000% | 250 | 250 |
| Senior\tNotes\tdue\tOctober\t2018,\tinterest\tpayable\tsemi-annually\tat\t2.850% | 750 | 750 |
| Senior\tNotes\tdue\tOctober\t2020,\tinterest\tpayable\tsemi-annually\tat\t3.625% | 1,750 | 1,750 |
| Senior\tNotes\tdue\tAugust\t2021,\tinterest\tpayable\tsemi-annually\tat\t2.250% | 750 | — |
| Senior\tNotes\tdue\tMarch\t2022,\tinterest\tpayable\tsemi-annually\tat\t5.000% | 700 | 700 |
| Senior\tNotes\tdue\tOctober\t2022,\tinterest\tpayable\tsemi-annually\tat\t4.500% | 500 | 500 |
| Senior\tNotes\tdue\tApril\t2023,\tinterest\tpayable\tsemi-annually\tat\t3.500% | 1,000 | 1,000 |
| Senior\tNotes\tdue\tJune\t2024,\tinterest\tpayable\tsemi-annually\tat\t3.875% | 700 | 700 |
| Senior\tNotes\tdue\tOctober\t2025,\tinterest\tpayable\tsemi-annually\tat\t5.000% | 1,500 | 1,500 |
| Senior\tNotes\tdue\tAugust\t2026,\tinterest\tpayable\tsemi-annually\tat\t3.000% | 1,250 | — |
| Senior\tNotes\tdue\tAugust\t2046,\tinterest\tpayable\tsemi-annually\tat\t4.500% | 500 | — |
| Revolving\tLoan,\t(3) | 36 | 1,250 |
| Other | (58) | (56) |
|  | 10,478 | 11,444 |
| Current\tportion | (332) | (15) |
| Long-term\tdebt,\texcluding\tcurrent\tportion | $10,146 | $11,429 |

(1) Interest	on	the	2017	Term	Loans	was	generally	payable	at	LIBOR	plus	an	applicable	margin	of	up	to	1.75%	based	upon	the	Company's	corporate	credit ratings.

(2) Interest	on	the	2018	Term	Loans	is	generally	payable	at	LIBOR	plus	an	applicable	margin	of	up	to	1.75%	based	upon	the	Company's	corporate	credit	ratings. As	of	December	31,	2016,	the	weighted	average	interest	rate	on	the	2018	Term	Loans	was	1.87%.

(3) Interest	on	the	Revolving	Loan	is	generally	payable	at	LIBOR	plus	an	applicable	margin	of	up	to	1.75%	plus	an	unused	commitment	fee	of	up	to	0.25%,	each based	upon	the	Company's	corporate	credit	ratings.	As	of	December	31,	2016,	the	weighted	average	interest	rate	on	the	Revolving	Loan,	excluding	fees,	was 1.75%.

On	August	10,	2016,	FIS	amended	and	extended	its	syndicated	credit	agreement	(the	"Credit	Agreement")	and	paid	down	the	balance	of	$600	million	on	the	2017 Term	Loans.	As	of	December	31,	2016,	the	Credit	Agreement	provided	total	committed	capital	of	$3,000	million	in	the	form	of	a	revolving	credit	facility	(the "Revolving	Loan")	maturing	on	August	10,	2021.	FIS	is	also	a	party	to	a	syndicated	term	loan	agreement	(the	"Term	Loan	Agreement"	and	together	with	the	Credit Agreement,	the	"FIS	Credit	Agreements"),	which	as	of	December	31,	2016	provided	term	loans	of	$550	million	maturing	on	November	30,	2018	(the	"2018	Term Loans").	As	of	December	31,	2016,	the	outstanding	principal	balance	of	the	Revolving	Loan	was	$36	million,	with	$2,957	million	of	borrowing	capacity	remaining thereunder	(net	of	$7	million	in	outstanding	letters	of	credit	issued	under	the	Revolving	Loan).

On	August	11,	2016,	FIS	issued	$2,500	million	of	new	senior	notes,	including	$750	million	of	Senior	Notes	due	in	2021	(the	"2021	Notes")	that	bear	interest	at 2.250%,	$1,250	million	of	Senior	Notes	due	in	2026	(the	"2026	Notes")	that	bear	interest	at	3.000%	and	$500	million	of	Senior	Notes	due	in	2046	(the	"2046	Notes") that	bear	interest	at	4.500%.	Net	proceeds	from	the	offering,	after	deducting	discounts	and	underwriting	fees,	were	$2,461	million.	FIS	used	the	proceeds	to	pay	down	the outstanding	balance	of	its	Revolving	Loan	and	partially	pay	down	the	2018	Term	Loans.

The	obligations	of	FIS	under	the	FIS	Credit	Agreements	and	under	all	of	its	outstanding	senior	notes	rank	equal	in	priority	and	are	unsecured.	The	FIS	Credit Agreements	and	the	senior	notes	remain	subject	to	customary	covenants,	including,	among	others,	limitations	on	the	payment	of	dividends	by	FIS,	and	customary	events of	default.

Due	to	the	extension	of	the	Revolving	Loan	and	issuance	of	the	2021,	2026,	and	2046	Notes,	FIS	recorded	approximately	$25	million	of	deferred	financing	costs	in 2016,	which	will	be	amortized	into	interest	expense	over	the	life	of	the	loan	and	notes.	Also,	as	a	result	of	the	pay	down	of	the	2017	Term	Loans	and	the	partial	pay	down of	the	2018	Term	Loans,	FIS	incurred	a	pre-tax	charge	upon	extinguishment	of	approximately	$2	million	in	2016	due	to	the	write-off	of	associated	previously	capitalized debt	issue	costs.

The	following	summarizes	the	aggregate	maturities	of	our	debt	and	capital	leases	on	stated	contractual	maturities,	excluding	unamortized	non-cash	bond	premiums and	discounts	of	$36	million	as	of	December	31,	2016	(in	millions):

|  | Total |
| :--- | :--- |
| 2017 | $332 |
| 2018 | 1,564 |
| 2019 | 9 |
| 2020 | 1,750 |
| 2021 | 786 |
| Thereafter | 6,150 |
| Total\tprincipal\tpayments | 10,591 |
| Debt\tissuance\tcosts,\tnet\tof\taccumulated\tamortization | (77) |
| Total\tlong-term\tdebt | 10,514 |

Voluntary	prepayment	of	the	term	loans	is	generally	permitted	at	any	time	without	fee	upon	proper	notice	and	subject	to	a	minimum	dollar	requirement.	There	are no	mandatory	principal	payments	on	the	Revolving	Loan	and	any	balance	outstanding	on	the	Revolving	Loan	will	be	due	and	payable	at	its	scheduled	maturity	date, which	occurs	at	August	10,	2021.

On	February	2,	2017,	FIS	issued	a	notice	to	redeem	100%	of	the	outstanding	aggregate	principal	amount	of	its	$700	million	5.000%	Senior	Notes	due	2022	(the "Notes")	on	March	15,	2017.	The	Notes	are	expected	to	be	funded	by	borrowings	under	the	Company's	Revolving	Loan	and	cash	proceeds	from	the	sale	of	Public	Sector and	Education	("PS&E")	(see	Note	15).

FIS	may	redeem	the	2017	Notes,	the	April	and	October	2018	Notes,	2020	Notes,	2021	Notes,	October	2022	Notes,	2023	Notes,	2024	Notes,	2025	Notes,	2026 Notes,	and	2046	Notes	at	its	option	in	whole	or	in	part,	at	any	time	and	from	time	to	time,	at	a	redemption	price	equal	to	the	greater	of	100%	of	the	principal	amount	to be	redeemed	and	a	make-whole	amount	calculated	as	described	in	the	related	indenture	in	each	case	plus	accrued	and	unpaid	interest	to,	but	excluding,	the	date	of redemption;	provided	no	make-whole	amount	will	be	paid	for	redemptions	of	the	2020	Notes	and	the	2021	Notes	during	the	one	month	prior	to	their	maturity,	the October	2022	Notes	during	the	two	months	prior	to	its	maturity,	the	2023	Notes,	the	2024	Notes,	the	2025	Notes,	and	the	2026	Notes	during	the	three	months	prior	to their	maturity,	and	the	2046	Notes	during	the	six	months	prior	to	their	maturity.

Debt	issuance	costs	of	$77	million,	net	of	accumulated	amortization,	remain	capitalized	as	of	December	31,	2016,	related	to	all	of	the	above	outstanding	debt.

We	monitor	the	financial	stability	of	our	counterparties	on	an	ongoing	basis.	The	lender	commitments	under	the	undrawn	portions	of	the	Revolving	Loan	are comprised	of	a	diversified	set	of	financial	institutions,	both	domestic	and	international.	The	failure	of	any	single	lender	to	perform	its	obligations	under	the	Revolving Loan	would	not	adversely	impact	our	ability	to	fund	operations.

The	fair	value	of	the	Company's	long-term	debt	is	estimated	to	be	approximately	$183	million	higher	than	the	carrying	value	as	of	December	31,	2016.	This	estimate	is based	on	quoted	prices	of	our	senior	notes	and	trades	of	our	other	debt	in	close	proximity	to	December	31,	2016,	which	are	considered	Level	2-type	measurements.	This estimate	is	subjective	in	nature	and	involves	uncertainties	and	significant	judgment	in	the	interpretation	of	current	market	data.	Therefore,	the	values	presented	are	not necessarily	indicative	of	amounts	the	Company	could	realize	or	settle	currently.

# (11) Financial	Instruments

As	of	December	31,	2016,	we	have	entered	into	the	following	interest	rate	swap	transaction	converting	a	portion	of	the	interest	rate	exposure	on	our	Term	and Revolving	Loans	from	variable	to	fixed	(in	millions):

(2) Does	not	include	the	applicable	margin	and	facility	fees	paid	to	lenders	on	Term	and	Revolving	Loans	as	described above.

We	have	designated	this	interest	rate	swap	as	a	cash	flow	hedge	and,	as	such,	it	is	carried	on	the	Consolidated	Balance	Sheets	at	fair	value	with	changes	in	fair	value included	in	other	comprehensive	earnings,	net	of	tax.

Due	to	the	Term	and	Revolving	Loans	reductions	discussed	in	Note	10,	interest	rate	swaps	with	a	notional	amount	totaling	$1,250	million	were	terminated	as	of December	31,	2016.	As	a	result,	FIS	recognized	an	approximate	$2	million	before	tax	loss	due	to	the	release	of	fair	value	changes	from	other	comprehensive	earnings.

A	summary	of	the	fair	value	of	the	Company's	interest	rate	derivative	instruments	is	as	follows	(in	millions):

In	accordance	with	the	authoritative	guidance	for	fair	value	measurements,	the	inputs	used	to	determine	the	estimated	fair	value	of	our	interest	rate	swap	are	Level	2- type	measurements.	We	considered	our	own	credit	risk	and	the	credit	risk	of	the	counterparties	when	determining	the	fair	value	of	our	interest	rate	swap.	Adjustments are	made	to	these	amounts	and	to	accumulated	other	comprehensive	earnings	("AOCE")	within	the	Consolidated	Statements	of	Comprehensive	Earnings	and Consolidated	Statements	of	Equity	as	the	factors	that	impact	fair	value	change,	including	current	and	projected	interest	rates,	time	to	maturity	and	required	cash transfers/settlements	with	our	counterparties.	Periodic	actual	and	estimated	settlements	with	counterparties	are	recorded	to	interest	expense	as	a	yield	adjustment	to effectively	fix	the	otherwise	variable	rate	interest	expense	associated	with	the	Term	and	Revolving	Loans	for	hedge	notional	amounts.

A	summary	of	the	effect	of	derivative	instruments	on	the	Consolidated	Statements	of	Comprehensive	Earnings	and	recognized	in	AOCE	for	the	years	ended December	31,	2016,	2015	and	2014	are	as	follows	(in	millions):

|  |  | Amount	of	gain	(loss)	recognized<br>in	AOCE	on	derivatives |  |
| :--- | :--- | :--- | :--- |
| Derivatives\tin\tcash\tflow\thedging\trelationships | 2016 | 2015 | 2014 |
| Interest\trate\tderivative\tcontracts | $(7) | $(17) | $(4) |

|  |  | Amount	of	gain	(loss)	reclassified<br>from	AOCE	into	income |  |
| :--- | :--- | :--- | :--- |
| Location\tof\tgain\t(loss)\treclassified\tfrom\tAOCE\tinto\tincome | 2016 | 2015 | 2014 |
| Interest\texpense | $(9) | $(4) | $(6) |

Approximately	$1	million	of	the	balance	in	AOCE	as	of	December	31,	2016,	is	expected	to	be	reclassified	into	income	over	the	next	twelve	months.

Our	existing	cash	flow	hedge	is	highly	effective	and	there	was	no	impact	on	earnings	due	to	hedge	ineffectiveness.	It	is	our	practice	to	execute	such	instruments	with credit-worthy	banks	at	the	time	of	execution	and	not	to	enter	into	derivative	financial	instruments	for	speculative	purposes.	As	of	December	31,	2016,	we	believe	that our	interest	rate	swap	counterparty	will	be	able	to	fulfill	their	obligations	under	our	agreement	and	we	believe	we	will	have	debt	outstanding	through	the	various expiration	date	of	the	swap	such	that	the	forecasted	transactions	remain	probable	of	occurring.

Income	tax	expense	(benefit)	attributable	to	continuing	operations	for	the	years	ended	December	31,	2016,	2015	and	2014	consists	of	the	following	(in	millions):

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| Current\tprovision: |  |  |  |
| Federal | $308 | $248 | $248 |
| State | 54 | 33 | 32 |
| Foreign | 131 | 52 | 64 |
| Total\tcurrent\tprovision | $493 | $333 | $344 |
| Deferred\tprovision\t(benefit): |  |  |  |
| Federal | $(147) | $50 | $(4) |
| State | (12) | 5 | (2) |
| Foreign | (17) | (9) | (3) |
| Total\tdeferred\tprovision | (176) | 46 | (9) |
| Total\tprovision\tfor\tincome\ttaxes | $317 | $379 | $335 |

The	provision	for	income	taxes	is	based	on	pre-tax	income	from	continuing	operations,	which	is	as	follows	for	the	years	ended	December	31,	2016,	2015	and	2014 (in	millions):

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| United\tStates | $571 | $864 | $789 |
| Foreign | 335 | 173 | 264 |
| Total | $906 | $1,037 | $1,053 |

Total	income	tax	expense	for	the	years	ended	December	31,	2016,	2015	and	2014	is	allocated	as	follows	(in	millions):

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| Tax\texpense\tper\tstatements\tof\tearnings | $317 | $379 | $335 |
| Tax\texpense\tattributable\tto\tdiscontinued\toperations | 1 | (2) | (3) |
| Unrealized\t(loss)\tgain\ton\tforeign\tcurrency\ttranslation | 30 | — | (5) |
| Other\tcomponents\tof\tother\tcomprehensive\tincome | 1 | (5) | (2) |
| Total\tincome\ttax\texpense\t(benefit)\tallocated\tto\tother\tcomprehensive\tincome | 31 | (5) | (7) |
| Tax\tbenefit\tfrom\texercise\tof\tstock\toptions | (32) | (29) | (40) |
| Total\tincome\ttax\texpense | $317 | $343 | $285 |

A	reconciliation	of	the	federal	statutory	income	tax	rate	to	the	Company's	effective	income	tax	rate	for	the	years	ended	December	31,	2016,	2015	and	2014	is	as follows:

Deferred	income	taxes	have	been	classified	in	the	Consolidated	Balance	Sheets	as	of	December	31,	2016	and	2015	as	follows	(in	millions):

|  | 2016 | 2015 |
| :--- | :--- | :--- |
| Current\tassets | $101 | $100 |
| Noncurrent\tassets\t(included\tin\tother\tnoncurrent\tassets) | 25 | 22 |
| Total\tdeferred\tincome\ttax\tassets | 126 | 122 |
| Current\tliabilities\t(included\tin\taccounts\tpayable\tand\taccrued\tliabilities) | (4) | (2) |
| Noncurrent\tliabilities | (2,484) | (2,658) |
| Total\tdeferred\tincome\ttax\tliabilities | (2,488) | (2,660) |
| Net\tdeferred\tincome\ttax\tliability | $(2,362) | $(2,538) |

We	believe	that	based	on	our	historical	pattern	of	taxable	income,	projections	of	future	income,	tax	planning	strategies	and	other	relevant	evidence,	the	Company will	produce	sufficient	income	in	the	future	to	realize	its	deferred	income	tax	assets.	A	valuation	allowance	is	established	for	any	portion	of	a	deferred	income	tax	asset for	which	we	believe	it	is	more	likely	than	not	that	the	Company	will	not	be	able	to	realize	the	benefits	of	all	or	a	portion	of	that	deferred	income	tax	asset.	We	also receive	periodic	assessments	from	taxing	authorities	challenging	our	positions	that	must	be	taken	into	consideration	in	determining	our	tax	accruals.	Resolving	these assessments,	which	may	or	may	not	result	in	additional	taxes	due,	may	require	an	extended	period	of	time.	Adjustments	to	the	valuation	allowance	will	be	made	if	there is	a	change	in	our	assessment	of	the	amount	of	deferred	income	tax	asset	that	is	realizable.

Deferred	tax	assets	and	liabilities	associated	with	assets	held	for	sale	are	presented	as	a	component	of	Assets	held	for	sale	in	the	Consolidated	Balance	Sheet.	As	of December	31,	2016,	the	Company	has	deferred	tax	assets	of	$2	million	and	deferred	tax	liabilities	of	$157	million	included	as	a	component	of	Assets	held	for	sale.

	As	of	December	31,	2016	and	2015,	the	Company	had	income	taxes	receivable	of	$13	million	and	$139	million,	respectively.	These	amounts	are	included	in	Other receivables	in	the	Consolidated	Balance	Sheets.

As	of	December	31,	2016	and	2015,	the	Company	has	federal,	state	and	foreign	net	operating	loss	carryforwards	resulting	in	deferred	tax	assets	of	$223	million	and $228	million,	respectively.	The	federal	and	state	net	operating	losses	result	in	deferred	tax	assets	as	of	December	31,	2016	and	2015	of	$49	million	and	$53	million, respectively,	which	expire	between	2020	and	2036.	The	Company	has	a	valuation	allowance	related	to	these	deferred	tax	assets	for	net	operating	loss	carryforwards	in the	amounts	of	$34	million	and	$35	million	as	of	December	31,	2016	and	2015.	The	Company	has	foreign	net	operating	loss	carryforwards	resulting	in	deferred	tax assets	as	of	December	31,	2016	and	2015	of	$174	million	and	$175	million,	respectively.	The	Company	has	valuation	allowances	related	to	these	net	operating	losses	as of	December	31,	2016	and	2015	of	$143	million	and	$132	million,	respectively.	As	of	December	31,	2016	and	2015,	the	Company	had	foreign	tax	credit	carryforwards of	$1	million	and	$14	million,	respectively,	which	expire	between	2020	and	2025.

The	Company	participates	in	the	IRS'	Compliance	Assurance	Process	(CAP),	which	is	a	real-time	continuous	audit.	The	IRS	has	completed	its	review	for	years through	2014.	Currently,	we	believe	the	ultimate	resolution	of	the	IRS	examinations	will	not	result	in	a	material	adverse	effect	to	the	Company's	financial	position	or results	of	operations.	Substantially	all	material	foreign	income	tax	return	matters	have	been	concluded	through	2009.	Substantially	all	state	income	tax	returns	have	been concluded	through	2011.

The	Company	provides	for	United	States	income	taxes	on	earnings	of	foreign	subsidiaries	unless	they	are	considered	permanently	reinvested	outside	the	United States.		As	of	December	31,	2016	and	2015	U.S.	income	taxes	have	not	been	provided	on	a	cumulative	total	of	$813	million	and	$674	million	of	such	earnings.		At	this time,	a	determination	of	the	amount	of	unrecognized	deferred	tax	liability	is	not	practicable.

As	of	December	31,	2016	and	2015,	the	Company	had	gross	unrecognized	tax	benefits	of	$87	million	and	$98	million	of	which	$67	million	and	$75	million	would favorably	impact	our	income	tax	rate	in	the	event	that	the	unrecognized	tax	benefits	are	recognized.

     The	following	table	reconciles	the	gross	amounts	of	unrecognized	tax	benefits	at	the	beginning	and	end	of	the	period	(in	millions):

| favorably	impact	our	income	tax	rate	in	the	event	that	the	unrecognized	tax	benefits	are	recognized. |  |
| :--- | :--- |
| The\tfollowing\ttable\treconciles\tthe\tgross\tamounts\tof\tunrecognized\ttax\tbenefits\tat\tthe\tbeginning\tand\tend\tof\tthe\tperiod\t(in\tmillions): |  |
|  | Gross\tAmount |
| Amounts\tof\tunrecognized\ttax\tbenefits\tas\tof\tJanuary\t1,\t2015 | $18 |
| Amount\tof\tdecreases\tdue\tto\tlapse\tof\tthe\tapplicable\tstatute\tof\tlimitations | (5) |
| Assumed\tin\tSunGard\tacquisition | 82 |
| Increases\tas\ta\tresult\tof\ttax\tpositions\ttaken\tin\tthe\tcurrent\tperiod | 1 |
| Increases\tas\ta\tresult\tof\ttax\tpositions\ttaken\tin\ta\tprior\tperiod | 2 |
| Amount\tof\tunrecognized\ttax\tbenefit\tas\tof\tDecember\t31,\t2015 | 98 |
| Amount\tof\tdecreases\tdue\tto\tlapse\tof\tthe\tapplicable\tstatute\tof\tlimitations | (4) |
| Amount\tof\tdecreases\tdue\tto\tsettlements | (23) |
| Increases\tas\ta\tresult\tof\ttax\tpositions\ttaken\tin\tthe\tcurrent\tperiod | 2 |
| Increases\tas\ta\tresult\tof\ttax\tpositions\ttaken\tin\ta\tprior\tperiod | 14 |
| Amount\tof\tunrecognized\ttax\tbenefit\tas\tof\tDecember\t31,\t2016 | $87 |

The	total	amount	of	interest	expense	recognized	in	the	Consolidated	Statements	of	Earnings	for	unpaid	taxes	is	$6	million,	$2	million	and	$2	million	for	the	years ended	December	31,	2016,	2015	and	2014,	respectively.	The	total	amount	of	interest	and	penalties	included	in	the	Consolidated	Balance	Sheets	is	$25	million	and	$27 million	as	of	December	31,	2016	and	2015,	respectively.	Interest	and	penalties	are	recorded	as	a	component	of	income	tax	expense	in	the	Consolidated	Statements	of Earnings.

Due	to	the	expiration	of	various	statutes	of	limitation	in	the	next	twelve	months,	an	estimated	$5	million	of	gross	unrecognized	tax	benefits	may	be	recognized during	that	twelve-month	period.

# (13) Commitments	and	Contingencies

# Litigation

•These	matters	raise	difficult	and	complicated	factual	and	legal	issues	and	are	subject	to	many	uncertainties	and

complexities.

On	May	28,	2013,	DataTreasury	Corporation	(the	"Plaintiff")	filed	a	patent	infringement	lawsuit	against	the	Company	and	multiple	banks	in	the	U.S.	District	Court for	the	Eastern	District	of	Texas,	Marshall	Division.		Plaintiff	alleges	that	the	Company	infringes	the	patents	at	issue	by	making,	using,	selling	or	offering	to	sell	systems and	methods	for	image-based	check	processing.	The	Plaintiff	seeks	damages,	injunctive	relief	and	attorneys'	fees	for	the	alleged	infringement	of	two	patents.		On October	25,	2013,	the	Company	filed	for	covered	business	method	("CBM")	post-grant	reviews	of	the	validity	of	the	Plaintiff's	asserted	patents	at	the	U.S.	Patent	and Trademark	Office	("USPTO").		The	Company	filed	a	Motion	to	Stay	the	case	pending	the	outcome	of	the	CBM	post-grant	reviews.	On	April	29,	2014,	the	USPTO instituted	the	Company's	two	CBM	petitions.	On	August	14,	2014,	the	Court	granted	the	Company's	Motion	to	Stay	the	litigation	pending	the	outcome	of	the	CBM review	proceedings.	On	April	29,	2015,	the	Patent	Trial	and	Appeal	Board	("PTAB")	issued	final	written	decisions	on	the	Company's	two	CBM	petitions	holding	that all	claims	of	the	Plaintiff's	two	patents	are	unpatentable	("Final	Written	Decision").	On	August	27,	2015,	the	Plaintiff	filed	a	notice	of	appeal	to	the	U.S.	Court	of Appeals	for	the	Federal	Circuit	of	the	USPTO's	Final	Written	Decisions.	On	October	13,	2016,	the	Federal	Circuit	affirmed	the	USPTO's	Final	Written	Decisions finding	the	Plaintiff's	two	patents	to	be	unpatentable.	On	January	11,	2017,	the	Plaintiff	filed	a	petition	for	certiorari	to	the	Supreme	Court	of	the	United	States	seeking	to appeal	certain	findings	of	the	Federal	Circuit.	We	do	not	believe	a	liability	is	probable	or	reasonably	estimable	and,	therefore,	have	not	recorded	a	liability	for	these claims.

# Acquired	Contingencies	(SunGard)

The	Company	became	responsible	for	certain	contingencies	which	were	assumed	in	the	SunGard	acquisition.	The	Consolidated	Balance	Sheet	as	of	December	31,	2016 includes	a	liability	of	$104	million	mostly	related	to	unclaimed	property	examinations	and	tax	compliance	matters.

# Reliance	Trust	Claims

Reliance	Trust	Company,	the	Company's	subsidiary,	is	named	as	a	defendant	in	a	class	action	arising	out	of	its	provision	of	services	as	the	discretionary	trustee	for	a 401(k)	Plan	for	one	of	its	customers.	Plaintiffs	in	the	action	seek	damages	and	attorneys'	fees,	as	well	as	equitable	relief,	for	alleged	breaches	of	fiduciary	duty	and prohibited	transactions	under	the	Employee	Retirement	Income	Security	Act	of	1974.	The	action	also	makes	claims	against	the	Plan's	sponsor	and	recordkeeper. Reliance	Trust	Company	is	vigorously	defending	the	action	and	believes	that	it	has	meritorious	defenses.	While	we	believe	that	the	ultimate	resolution	of	the	matter	will not	have	a	material	impact	on	our	financial	condition,	we	are	unable	at	this	time	to	make	an	estimate	of	potential	losses	arising	from	the	action	because	the	matter	is	at an	early	state	and	involves	unresolved	questions	of	fact	and	law.

# Brazilian	Tax	Authorities	Claims

In	2004,	Proservvi	Empreendimentos	e	Servicos,	Ltda.,	the	predecessor	to	Fidelity	National	Servicos	de	Tratamento	de	Documentos	e	Informatica	Ltda. ("Servicos"),	a	subsidiary	of	Fidelity	National	Participacoes	Ltda.,	our	former	item	processing	and	remittance	services	operation	in	Brazil,	acquired	certain	assets	and employees	and	leased	certain	facilities	from	the	Transpev	Group	("Transpev")	in	Brazil.	Transpev's	remaining	assets	were	later	acquired	by	Prosegur,	an	unrelated	third party.	When	Transpev	discontinued	its	operations	after	the	asset	sale	to	Prosegur,	it	had	unpaid	federal	taxes	and	social	contributions	owing	to	the	Brazilian	tax authorities.	The	Brazilian	tax	authorities	brought	a	claim	against	Transpev	and	beginning	in	2012	brought	claims	against	Prosegur	and	Servicos	on	the	grounds	that Prosegur	and	Servicos	were	successors	in	interest	to	Transpev.	To	date,	the	Brazilian	tax	authorities	filed	nine	claims	against	Servicos	asserting	potential	tax	liabilities	of approximately	$14	million.	There	are	potentially	26	additional	claims	against	Transpev/Prosegur	for	which	Servicos	is	named	as	a	co-defendant	or	may	be	named,	but for	which	Servicos	has	not	yet	been	served.	These	additional	claims	amount	to	approximately	$56	million	making	the	total	potential	exposure	for	all	35	claims approximately	$70	million.	We	do	not	believe	a	liability	for	these	35	total	claims	is	probable	or	reasonably	estimable	and,	therefore,	have	not	recorded	a	liability	for	any of	these	claims.

# 	Leases

The	Company	leases	certain	of	its	property	under	leases	which	expire	at	various	dates.	Several	of	these	agreements	include	escalation	clauses	and	provide	for purchases	and	renewal	options	for	periods	ranging	from	one	to	five	years.

Future	minimum	operating	lease	payments	for	leases	with	remaining	terms	greater	than	one	year	for	each	of	the	years	in	the	five	years	ending	December	31,	2021, and	thereafter,	in	the	aggregate,	are	as	follows	(in	millions):

| 2017 | $96 |
| :--- | :--- |
| 2018 | 91 |
| 2019 | 67 |
| 2020 | 49 |
| 2021 | 33 |
| Thereafter | 65 |
| Total | $401 |

In	addition,	the	Company	has	operating	lease	commitments	relating	to	office	equipment	and	computer	hardware	with	annual	lease	payments	of	approximately	$4 million	per	year	that	renew	on	a	short-term	basis.	See	Note	4	for	information	on	the	Company's	capital	lease	obligations.

Rent	expense	incurred	under	all	operating	leases	during	the	years	ended	December	31,	2016,	2015	and	2014,	was	$143	million,	$93	million	and	$85	million, respectively.

Data	Processing,	Maintenance	and	Other	Service	Agreements.		The	Company	has	agreements	with	various	vendors,	which	expire	between	2017	and	2023, principally	for	portions	of	its	computer	data	processing	operations	and	related	functions.	The	Company's	estimated	aggregate	contractual	obligation	remaining	under these	agreements	was	approximately	$557	million	as	of

December	31,	2016.	However,	this	amount	could	be	more	or	less	depending	on	various	factors	such	as	the	inflation	rate,	foreign	exchange	rates,	the	introduction	of significant	new	technologies,	or	changes	in	the	Company's	data	processing	needs.

# (14) Employee	Benefit	Plans

# Stock	Purchase	Plan

FIS	employees	participate	in	an	Employee	Stock	Purchase	Plan	(ESPP).	Eligible	employees	may	voluntarily	purchase,	at	current	market	prices,	shares	of	FIS' common	stock	through	payroll	deductions.	Pursuant	to	the	ESPP,	employees	may	contribute	an	amount	between	3%	and	15%	of	their	base	salary	and	certain commissions.	Shares	purchased	are	allocated	to	employees	based	upon	their	contributions.	The	Company	contributes	varying	matching	amounts	as	specified	in	the ESPP.	The	Company	recorded	expense	of	$19	million,	$26	million	and	$26	million,	respectively,	for	the	years	ended	December	31,	2016,	2015	and	2014,	relating	to	the participation	of	FIS	employees	in	the	ESPP.

# 401(k)	Profit	Sharing	Plans

The	Company's	U.S.	employees	are	covered	by	a	qualified	401(k)	plan.	Eligible	employees	may	contribute	up	to	40%	of	their	pretax	annual	compensation,	up	to	the amount	allowed	pursuant	to	the	Internal	Revenue	Code.	The	Company	generally	matches	50%	of	each	dollar	of	employee	contribution	up	to	6%	of	the	employee's	total eligible	compensation.	The	Company	recorded	expense	of	$80	million,	$38	million	and	$36	million,	respectively,	for	the	years	ended	December	31,	2016,	2015	and 2014,	relating	to	the	participation	of	FIS	employees	in	the	401(k)	plan.

SunGard	and	its	subsidiaries	also	maintained	savings	and	other	defined	contribution	plans	in	and	outside	of	the	U.S.	The	U.S.	401(k)	plan	was	frozen	with	respect	to	new contributions	effective	with	the	SunGard	acquisition	and	during	2016	was	merged	with	the	FIS	plan,	in	which	legacy	SunGard	employees	now	participate.

# Stock	Compensation	Plans

In	2008,	the	Company	adopted	the	FIS	2008	Omnibus	Incentive	Plan	("FIS	Plan").	The	FIS	Plan	was	amended	and	restated	in	2013	and	combined	with	a	plan assumed	in	conjunction	with	the	2009	Metavante	acquisition	("FIS	Restated	Plan").	The	restatement	authorized	an	additional	6	million	shares	for	issuances,	which	was approved	by	stockholders	in	2013.	In	May	2015,	another	12	million	shares	were	authorized	for	issuance	under	the	FIS	Restated	Plan	and	approved	by	stockholders.

On	November	30,	2015,	in	conjunction	with	the	SunGard	acquisition,	the	Company	registered	an	additional	10	million	shares,	representing	the	remaining	shares available	for	issuance	under	the	SunGard	2005	Management	Incentive	Plan,	as	amended	("the	SG	Plan"),	immediately	prior	to	the	consummation	of	the	SunGard acquisition.	These	shares	are	now	available	for	grant	under	the	FIS	Restated	Plan	for	legacy	SunGard	employees	and	new	FIS	employees.

Also	on	November	30,	2015,	in	conjunction	with	the	SunGard	acquisition,	the	Company	registered	up	to	approximately	2	million	shares	of	FIS	common	stock	on	a	Post- Effective	Amendment	on	Form	S-8,	reserved	for	issuance	with	respect	to	converted	restricted	stock	units	("RSU's")	under	the	SG	Plan.	This	SG	Plan	will	remain	in existence	until	such	time	as	these	RSU's	vest	and	the	shares	are	exercised	or	the	SG	Plan	is	otherwise	terminated.

A	summary	of	the	options	granted	(all	of	which	vest	over	three	years),	outstanding	and	shares	available	for	grant	under	the	FIS	Restated	Plan	follows	(in	millions):

# FIS	Restated	Plan

| Available	for	grant	as	of	December	31,	2014 | 7 |
| :--- | :--- |
| Granted\tin\t2014 | 3 |
| Outstanding\tas\tof\tDecember\t31,\t2015 | 16 |
| Available\tfor\tgrant\tas\tof\tDecember\t31,\t2015 | 26 |
| Granted\tin\t2016 | 5 |
| Outstanding\tas\tof\tDecember\t31,\t2016 | 17 |
| Available\tfor\tgrant\tas\tof\tDecember\t31,\t2016 | 21 |

The	following	schedule	summarizes	the	stock	option	activity	for	the	years	ended	December	31,	2016,	2015	and	2014	(in	millions	except	for	per	share	amounts):

|  | Shares | Weighted<br>Average<br>Exercise	Price |
| :--- | :--- | :--- |
| Balance,\tDecember\t31,\t2013 | 14 | $32.49 |
| Granted | 4 | 58.72 |
| Exercised | (3) | 22.69 |
| Cancelled | — | 46.21 |
| Balance,\tDecember\t31,\t2014 | 15 | 41.56 |
| Granted | 3 | 65.91 |
| Exercised | (2) | 29.67 |
| Cancelled | — | 54.08 |
| Balance,\tDecember\t31,\t2015 | 16 | 47.19 |
| Granted | 5 | 63.58 |
| Exercised | (3) | 36.15 |
| Cancelled | (1) | 62.25 |
| Balance,\tDecember\t31,\t2016 | 17 | 53.21 |

The	intrinsic	value	of	options	exercised	during	the	years	ended	December	31,	2016,	2015	and	2014	was	$103	million,	$73	million	and	$93	million,	respectively.	The Company	generally	issues	shares	from	treasury	stock	for	stock	options	exercised.

The	following	table	summarizes	information	related	to	stock	options	outstanding	and	exercisable	as	of	December	31,	2016:

|  |  | Outstanding	Options | Outstanding	Options |  |  | Exercisable	Options |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Range\tof\tExercise\tPrice | Number\nof\nOptions | Weighted\nAverage\nRemaining\nContractual\nLife | Weighted\nAverage\nExercise\nPrice | Intrinsic\nValue\tas\tof\nDecember\t31,\n2016\t(a) | Number\tof\nOptions | Weighted\nAverage\nRemaining\nContractual\nLife | Weighted\nAverage\nExercise\nPrice | Intrinsic\nValue\tas\tof\nDecember\t31,\n2016\t(a) |
|  | (In\tmillions) |  |  | (In\tmillions) | (In\tmillions) |  |  | (In\tmillions) |
| $\t\t0.00\t-\t$\t25.66 | 1 | 1.80 | $24.71 | $73 | 1 | 1.80 | $24.71 | $73 |
| $\t25.67\t-\t$\t27.40 | 1 | 0.82 | 27.11 | 58 | 1 | 0.82 | 27.11 | 58 |
| $\t27.41\t-\t$\t48.75 | 4 | 3.40 | 45.21 | 108 | 4 | 3.40 | 45.21 | 108 |
| $\t48.76\t-\t$\t59.91 | 3 | 4.68 | 58.19 | 53 | 2 | 4.40 | 58.15 | 20 |
| $\t59.92\t-\t$\t62.92 | 4 | 6.10 | 62.92 | 51 | — | 3.00 | 62.92 | 2 |
| $\t62.93\t-\t$\t79.41 | 4 | 5.58 | 66.17 | 34 | — | 3.93 | 64.82 | 4 |
| $\t\t0.00\t-\t$\t79.41 | 17 | 4.42 | 53.21 | $377 | 8 | 2.86 | 41.74 | $265 |

The	weighted	average	fair	value	of	options	granted	during	the	years	ended	December	31,	2016,	2015	and	2014	was	estimated	to	be	$9.35,	$10.67	and	$9.15, respectively,	using	the	Black-Scholes	option	pricing	model	with	the	assumptions	below:

|  | 2016 | 2015 | 2014 |
| :--- | :--- | :--- | :--- |
| Risk\tfree\tinterest\trate | 1.2% | 1.4% | 1.4% |
| Volatility | 20.4% | 21.7% | 21.2% |
| Dividend\tyield | 1.6% | 1.6% | 1.6% |
| Weighted\taverage\texpected\tlife\t(years) | 4.2 | 4.2 | 4.2 |

The	Company	estimates	future	forfeitures	at	the	time	of	grant	and	revises	those	estimates	in	subsequent	periods	if	actual	forfeitures	differ	from	those	estimates.		The Company	bases	the	risk-free	interest	rate	that	is	used	in	the	stock	option	valuation	model	on	U.S.	Treasury	securities	issued	with	maturities	similar	to	the	expected	term of	the	options.		The	expected	stock	volatility	factor	is	determined	using	historical	daily	price	changes	of	the	Company's	common	stock	over	the	most	recent	period commensurate	with	the	expected	term	of	the	option	and	the	impact	of	any	expected	trends.		The	dividend	yield	assumption	is	based	on	the	current	dividend	yield	at	the grant	date	or	management's	forecasted	expectations.	The	expected	life	assumption	is	determined	by	calculating	the	average	term	from	the	Company's	historical	stock option	activity	and	considering	the	impact	of	expected	future	trends.

The	Company	granted	a	total	of	1	million	restricted	stock	shares	at	prices	ranging	from	$56.44	to	$79.41	on	various	dates	in	2016.	The	Company	granted	a	total	of 1	million	restricted	stock	shares	at	prices	ranging	from	$61.33	to	$69.33	on	various	dates	in	2015.	The	Company	granted	a	total	of	1	million	restricted	stock	shares	at prices	ranging	from	$52.85	to	$64.04	on	various	dates	in	2014.	These	shares	were	granted	at	the	closing	market	price	on	the	date	of	grant	and	vest	annually	over	three years.	As	of	December	31,	2016	and	2015,	we	have	approximately	3	million	and	4	million	unvested	restricted	shares	remaining.	The	December	31,	2016	balance includes	those	RSU's	converted	in	connection	with	the	SunGard	acquisition	as	noted	above.

The	Company	has	provided	for	total	stock	compensation	expense	of	$137	million,	$98	million	and	$56	million	for	the	years	ended	December	31,	2016,	2015	and 2014,	respectively,	which	is	included	in	selling,	general,	and	administrative	expense	in	the	Consolidated	Statements	of	Earnings,	unless	the	expense	is	attributable	to	a discontinued	operation.	Of	the	total	stock	compensation	expense,	$2	million	for	2014	relates	to	liability	based	awards	that	will	not	be	credited	to	additional	paid	in capital	until	issued.	Total	compensation	expense	for	2016	and	2015	did	not	include	amounts	relating	to	liability	based	awards.

As	of	December	31,	2016	and	2015,	the	total	unrecognized	compensation	cost	related	to	non-vested	stock	awards	is	$141	million	and	$206	million,	respectively, which	is	expected	to	be	recognized	in	pre-tax	income	over	a	weighted	average	period	of	1.4	years	and	1.6	years,	respectively.

# German	Pension	Plans

Our	German	operations	have	unfunded,	defined	benefit	plan	obligations.	These	obligations	relate	to	benefits	to	be	paid	to	German	employees	upon	retirement.	The accumulated	benefit	obligation	as	of	December	31,	2016	and	2015,	was	$49	million	and	$48	million,	respectively,	and	the	projected	benefit	obligation	was	$50	million and	$49	million,	respectively.	The	plan	remains	unfunded	as	of	December	31,	2016.

# (15) Divestitures	and	Discontinued	Operations

On	December	7,	2016,	the	Company	entered	into	a	definitive	agreement	to	sell	the	SunGard	Public	Sector	and	Education	("PS&E")	businesses	for	$850	million.	The transaction	included	all	PS&E	solutions,	which	provide	a	comprehensive	set	of	technology	solutions	to	address	public	safety	and	public	administration	needs	of government	entities	as	well	as	the	needs	of	K-12	school	districts.	The	divestiture	is	consistent	with	our	strategy	to	serve	the	financial	services	markets.	We	received	cash proceeds,	net	of	taxes	and	transaction-related	expenses	of	approximately	$500	million.	Net	cash	proceeds	are	expected	to	be	used	to	reduce	outstanding	debt	(see	Note 10).	The	PS&E	businesses	are	included	in	the	Corporate	and	Other	segment.	The	transaction	closed	on	February	1,	2017,	resulting	in	an	expected	pre-tax	gain	ranging from	$85	million	to	$90	million	that	will

be	recognized	in	the	first	quarter	of	2017.	The	sale	did	not	meet	the	standard	necessary	to	be	reported	as	discontinued	operations;	therefore,	the	pre-tax	gain	and	related prior	period	earnings	remain	reported	within	earnings	from	continuing	operations.

As	described	below,	certain	operations	are	reported	as	discontinued	in	the	Consolidated	Statements	of	Earnings	for	the	years	ended	December	31,	2016,	2015	and 2014.	The	revenues	and	earnings	(losses)	of	the	businesses	included	in	discontinued	operations	for	the	periods	presented	were	as	follows:

# China	eCas	Business	Line

# Brazil	Item	Processing	and	Remittance	Services	Operations

During	the	third	quarter	of	2010,	the	Company	decided	to	pursue	strategic	alternatives	for	Fidelity	National	Participacoes	Ltda.	("Participacoes").	Participacoes' processing	volume	was	transitioned	to	other	vendors	or	back	to	its	clients	during	the	second	quarter	of	2011.	Participacoes	had	earnings	(losses)	before	taxes	of	$2 million,	$(5)	million	and	$(10)	million	during	the	years	ended	December	31,	2016,	2015	and	2014,	respectively.	The	shut-down	activities	involved	the	transfer	and termination	of	approximately	2,600	employees,	which	was	completed	in	2011.	Former	employees	generally	had	up	to	two	years	from	the	date	of	terminations,	extended through	April	2013,	to	file	labor	claims	and	a	number	of	them	did	file	labor	claims.	As	of	December	31,	2016,	there	were	approximately	475	active	claims	remaining. Consequently,	we	have	continued	exposure	on	these	active	claims,	which	were	not	transferred	with	other	assets	and	liabilities	in	the	disposal.	Our	accrued	liability	for active	labor	claims,	net	of	$12	million	in	court	ordered	deposits,	is	$10	million	as	of	December	31,	2016.	Any	changes	in	the	estimated	liability	related	to	these	labor claims	will	be	recorded	as	discontinued	operations.

# (16) Components	of	Other	Comprehensive	Earnings

The	following	table	shows	accumulated	other	comprehensive	earnings	("AOCE")	attributable	to	FIS	by	component,	net	of	tax,	for	the	year	ended	December	31,	2016 (in	millions):

|  |  | Foreign |  |  |
| :--- | :--- | :--- | :--- | :--- |
|  | Interest\tRate | Currency |  |  |
|  | Swap | Translation |  |  |
|  | Contracts | Adjustments | Other\t(1) | Total |
| Balances,\tDecember\t31,\t2015 | \t $1 | \t $(259) | \t $(21) | \t $(279) |
| Other\tcomprehensive\tgain/(loss)\tbefore\treclassifications | (5) | (55) | 3 | (57) |
| Amounts\treclassified\tfrom\tAOCE | 5 | — | — | 5 |
| Net\tcurrent\tperiod\tAOCE\tattributable\tto\tFIS | — | (55) | 3 | (52) |
| Balances,\tDecember\t31,\t2016 | \t $1 | \t $(314) | \t $(18) | \t $(331) |

(1) Includes	the	cash	settlement	payment	on	treasury	lock	contracts	associated	with	bridge	financing	for	the	SunGard	acquisition.	This	amount	will	be	amortized	as an	adjustment	to	interest	expense	over	the	ten	years	in	which	the	related	interest	payments	that	were	hedged	are	recognized	in	income.

The	amount	reclassified	from	AOCE	for	interest	rate	derivative	contracts	includes	$8	million	recorded	as	interest	expense,	reduced	by	a	related	$3	million	provision for	income	taxes.	See	Note	12	for	the	tax	provision	associated	with	each	component	of	other	comprehensive	income.

The	Company	operates	a	joint	venture	("Brazilian	Venture")	with	Banco	Bradesco	S.A.	("Banco	Bradesco")	in	which	we	own	a	51%	controlling	interest,	to	provide comprehensive,	fully	outsourced	transaction	processing,	call	center,	cardholder	support	and	collection	services	to	multiple	card	issuing	clients	in	Brazil,	including	Banco Bradesco.	The	original	accounting	for	this	transaction	resulted	in	the	establishment	of	a	contract	intangible	asset	and	a	liability	for	amounts	payable	to	the	original partner	banks	upon	final	migration	of	their	respective	card	portfolios	and	achieving	targeted	volumes	(the	"Brazilian	Venture	Notes").	The	unamortized	contract intangible	asset	balance	as	of	December	31,	2016	was	$88	million.	Upon	the	exit	of	one	partner	bank,	certain	terms	of	the	Brazilian	Venture	were	subsequently renegotiated	between	Banco	Bradesco	and	FIS	and	were	memorialized	in	an	Amended	Association	Agreement	in	November	2010.	Among	other	things,	the	payout	for the	Brazilian	Venture	Notes	was	extended	over	a	ten-year	period.	Additional	performance	remuneration	provisions	upon	the	achievement	of	targeted	account	and transaction	volumes	were	renegotiated,	for	which	additional	related	party	payables	were	recorded	as	of	December	31,	2011,	based	on	management's	expectation	that	the targets	will	be	met.	The	passage	of	time	and	the	achievement	of	certain	targets	triggered	payments	to	Banco	Bradesco	of	$6	million	and	$5	million	in	2016	and	2015, respectively.	In	addition,	the	board	of	directors	for	the	Brazilian	Venture	declared	a	dividend	during	the	years	ended	December	31,	2016	and	2015,	resulting	in	payments of	$20	million	and	$24	million	respectively,	to	Banco	Bradesco.	The	carrying	value	of	the	noncontrolling	interest	as	of	December	31,	2016	was	$99	million.

The	Company	recorded	revenues	of	$272	million,	$237	million	and	$281	million	during	the	years	ended	December	31,	2016,	2015	and	2014,	respectively,	from Banco	Bradesco.	Revenues	included	$12	million	and	$96	million	of	unfavorable	currency	impact	during	the	years	ended	December	31,	2016	and	2015,	respectively, resulting	from	foreign	currency	exchange	rate	fluctuations	between	the	U.S.	Dollar	and	Brazilian	Real	in	2016	as	compared	to	2015	and	2015	as	compared	to	2014.

The	Brazilian	Venture	currently	processes	approximately	80	million	cards	for	clients	in	Brazil	and	provides	call	center,	cardholder	support	and	collection	services	for their	card	portfolios.

A	summary	of	the	Company's	related	party	receivables	and	payables	is	as	follows	(in	millions):

|  |  | December	31, |  |
| :--- | :--- | :--- | :--- |
| Related\tParty | Balance\tsheet\tlocation | 2016 | 2015 |
| Banco\tBradesco | \t Trade\treceivables | $45 | $31 |
| Banco\tBradesco | \t Accounts\tpayable\tand\taccrued\tliabilities | 10 | 9 |
| Banco\tBradesco | \t Other\tlong-term\tliabilities | 22 | 24 |

# (18) Concentration	of	Risk

The	Company	generates	a	significant	amount	of	revenues	from	large	clients,	however,	no	individual	client	accounted	for	10%	or	more	of	total	revenues	in	the	years ended	December	31,	2016,	2015	and	2014.

Financial	instruments	that	potentially	subject	the	Company	to	concentrations	of	credit	risk	consist	primarily	of	cash	equivalents	and	trade	receivables.

The	Company	places	its	cash	equivalents	with	high	credit-quality	financial	institutions	and,	by	policy,	limits	the	amount	of	credit	exposure	with	any	one	financial institution.

Concentrations	of	credit	risk	with	respect	to	trade	receivables	are	limited	because	a	large	number	of	geographically	diverse	clients	make	up	the	Company's	client base,	thus	spreading	the	trade	receivables	credit	risk.	The	Company	controls	credit	risk	through	monitoring	procedures.

# (19) Segment	Information

In	2015,	FIS	finalized	a	reorganization	and	began	reporting	its	financial	performance	based	on	three	segments:	Integrated	Financial	Solutions	("IFS"),	Global Financial	Solutions	("GFS")	and	Corporate	and	Other.	We	recast	all	previous	periods	to	conform	to	the	new	segment	presentation.	Following	our	November	30,	2015 acquisition	of	SunGard,	the	SunGard	business	was	included	within	the	GFS	segment	as	its	economic	characteristics,	international	business	model,	and	various	other factors	largely	aligned	with	those	of	our	GFS	segment.	As	we	further	integrated	the	acquired	SunGard	businesses	through	March	31,	2016,	we	reclassified	certain SunGard	businesses	(corporate	liquidity	and	wealth	management)	that	are	oriented	more	to	the	retail	banking	and	payments	activities	of	IFS	into	that	segment.	Certain other	businesses	from	both	SunGard	(public	sector	and	education	businesses,	which	was	divested	on	February	1,	2017),	and	legacy	FIS	(global	commercial	services	and check	processing)	were	reclassified	to	the	Corporate	and	Other	segment,	as	have	SunGard	administrative	expenses.

Summarized	financial	information	for	the	Company's	segments	is	shown	in	the	following	tables	reclassified	to	conform	to	the	current	segment	presentation.

As	of	and	for	the	year	ended	December	31,	2016	(in	millions):

|  | IFS | GFS | Corporate<br>and	Other | Total |
| :--- | :--- | :--- | :--- | :--- |
| Processing\tand\tservices\trevenues | $4,566 | $4,250 | $425 | $9,241 |
| Operating\texpenses | 3,029 | 3,211 | 1,703 | 7,943 |
| Depreciation\tand\tamortization\tfrom\tcontinuing\toperations | 273 | 247 | 64 | 584 |
| Purchase\taccounting\tamortization | 1 | 6 | 583 | 590 |
| EBITDA | 1,811 | 1,292 | (631) | 2,472 |
| Acquisition\tdeferred\trevenue\tadjustment | — | — | 192 | 192 |
| Acquisition,\tintegration\tand\tseverance\tcosts | — | — | 281 | 281 |
| Adjusted\tEBITDA | $1,811 | $1,292 | $(158) | $2,945 |
| EBITDA |  |  |  | $2,472 |
| Interest\texpense |  |  |  | 383 |
| Depreciation\tand\tamortization\tfrom\tcontinuing\toperations |  |  |  | 584 |
| Purchase\taccounting\tamortization |  |  |  | 590 |
| Other\tincome\t(expense)\tunallocated |  |  |  | (9) |
| Provision\tfor\tincome\ttaxes |  |  |  | 317 |
| Net\tearnings\t(loss)\tfrom\tdiscontinued\toperations |  |  |  | 1 |
| Net\tearnings\tattributable\tto\tnoncontrolling\tinterest |  |  |  | 22 |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders |  |  |  | $568 |
| Capital\texpenditures\t(1) | $294 | $317 | $48 | $659 |
| Total\tassets | $10,249 | $9,028 | $6,748 | $26,025 |
| Goodwill | $7,676 | $6,332 | $170 | $14,178 |

(1)	Capital	expenditures	include	$43	million	of	capital	leases	and	other	financing	obligations.

|  | IFS | GFS | Corporate<br>and	Other | Total |
| :--- | :--- | :--- | :--- | :--- |
| Processing\tand\tservices\trevenues | $3,846 | $2,360 | $390 | $6,596 |
| Operating\texpenses | 2,504 | 1,953 | 1,040 | 5,497 |
| Depreciation\tand\tamortization\tfrom\tcontinuing\toperations | 226 | 146 | 59 | 431 |
| Purchase\taccounting\tamortization | — | — | 238 | 238 |
| EBITDA | 1,568 | 553 | (353) | 1,768 |
| Acquisition\tdeferred\trevenue\tadjustment | — | — | 48 | 48 |
| Acquisition,\tintegration\tand\tseverance\tcosts | — | — | 171 | 171 |
| Global\trestructure | — | — | 45 | 45 |
| Adjusted\tEBITDA | $1,568 | $553 | $(89) | $2,032 |
| EBITDA |  |  |  | $1,768 |
| Interest\texpense |  |  |  | 183 |
| Depreciation\tand\tamortization\tfrom\tcontinuing\toperations |  |  |  | 431 |
| Purchase\taccounting\tamortization |  |  |  | 238 |
| Other\tincome\t(expense)\tunallocated |  |  |  | 121 |
| Provision\tfor\tincome\ttaxes |  |  |  | 379 |
| Net\tearnings\t(loss)\tfrom\tdiscontinued\toperations |  |  |  | (7) |
| Net\tearnings\tattributable\tto\tnoncontrolling\tinterest |  |  |  | 19 |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders |  |  |  | $632 |
| Capital\texpenditures\t(1) | $235 | $168 | $21 | $424 |
| Total\tassets | $10,035 | $9,508 | $6,656 | $26,199 |
| Goodwill | $7,676 | $6,605 | $464 | $14,745 |

(1)	Capital	expenditures	include	$9	million	of	capital	leases.

|  | IFS | GFS | Corporate<br>and	Other | Total |
| :--- | :--- | :--- | :--- | :--- |
| Processing\tand\tservices\trevenues | $3,679 | $2,198 | $536 | $6,413 |
| Operating\texpenses | 2,419 | 1,849 | 874 | 5,142 |
| Depreciation\tand\tamortization\tfrom\tcontinuing\toperations | 214 | 133 | 64 | 411 |
| Purchase\taccounting\tamortization | — | — | 215 | 215 |
| EBITDA | 1,474 | 482 | (59) | 1,897 |
| Contract\tsettlement | 9 | — | — | 9 |
| Acquisition,\tintegration\tand\tseverance\tcosts | — | — | 21 | 21 |
| Adjusted\tEBITDA | $1,483 | $482 | $(38) | 1,927 |
| EBITDA |  |  |  | $1,897 |
| Interest\texpense |  |  |  | 158 |
| Depreciation\tand\tamortization\tfrom\tcontinuing\toperations |  |  |  | 411 |
| Purchase\taccounting\tamortization |  |  |  | 215 |
| Other\tincome\t(expense)\tunallocated |  |  |  | (60) |
| Provision\tfor\tincome\ttaxes |  |  |  | 335 |
| Net\tearnings\t(loss)\tfrom\tdiscontinued\toperations |  |  |  | (11) |
| Net\tearnings\tattributable\tto\tnoncontrolling\tinterest |  |  |  | 28 |
| Net\tearnings\tattributable\tto\tFIS\tcommon\tstockholders |  |  |  | $679 |
| Capital\texpenditures\t(1) | $207 | $155 | $36 | $398 |
| Total\tassets | $8,631 | $3,699 | $2,182 | $14,512 |
| Goodwill | $6,627 | $1,990 | $261 | $8,878 |

Total	assets	as	of	December	31,	2016,	2015	and	2014	exclude	$6	million,	$1	million	and	$8	million,	respectively	related	to	discontinued	operations.

Revenue	generated	from	contracts	executed	outside	of	our	North	American	operations	represented	approximately	24%,	22%	and	22%	of	total	revenue	in	2016,	2015 and	2014,	respectively.	Clients	in	Brazil,	the	United	Kingdom,	France	and	Germany	accounted	for	the	majority	of	the	revenues	from	clients	based	outside	of	North America	for	all	periods	presented.	FIS	conducts	business	in	over	130	countries,	with	no	individual	country	outside	of	North	America	accounting	for	more	than	10%	of total	revenue	for	the	years	ended	December	31,	2016,	2015	and	2014.

Long-term	assets,	excluding	goodwill	and	other	intangible	assets,	located	outside	of	the	United	States	totaled	$550	million	and	$470	million	as	of	December	31, 2016	and	2015,	respectively.	These	assets	are	predominantly	located	in	Brazil,	India,	Germany	and	the	United	Kingdom.

The	IFS	segment	is	focused	on	serving	the	North	American	regional	and	community	bank	and	savings	institution	market	for	transaction	and	account	processing, payment	solutions,	channel	solutions,	lending	and	wealth	management	solutions,	digital	channels,	risk	and	compliance	solutions,	and	services,	capitalizing	on	the continuing	trend	to	outsource	these	solutions.	IFS	also	includes	corporate	liquidity	and	wealth	management	solutions	acquired	in	the	SunGard	acquisition.	IFS'	primary software	applications	function	as	the	underlying	infrastructure	of	a	financial	institution's	processing	environment.	These	applications	include	core	bank	processing software,	which	banks	use	to	maintain	the	primary	records	of	their	customer	accounts,	and	complementary	applications	and	services	that	interact	directly	with	the	core processing	applications.	Clients	in	this	segment	include	regional	and	community	banks,	credit	unions	and	commercial	lenders,	as	well	as	government	institutions, merchants	and	other	commercial	organizations.	This	market	is	primarily	served	through	integrated	solutions	and	characterized	by	multi-year	processing	contracts	that generate	highly	recurring	revenues.	The	predictable	nature	of	cash	flows	generated	from	this	segment	provides	opportunities	for	further	investments	in	innovation, product	integration,	information	and	security,	and	compliance	in	a	cost	effective	manner.

GFS	clients	include	the	largest	global	financial	institutions,	including	those	headquartered	in	the	United	States,	as	well	as	all	international	financial	institutions	we	serve as	clients	in	more	than	130	countries	around	the	world.	These	institutions	face	unique	business	and	regulatory	challenges	and	account	for	the	majority	of	financial institution	information	technology	spend	globally.	The	purchasing	patterns	of	GFS	clients	vary	from	those	of	IFS	clients	who	typically	purchase	solutions	on	an outsourced	basis.	GFS	clients	purchase	our	solutions	and	services	in	various	ways	including	licensing	and	managing	technology	"in-house,"	using	consulting	and	third party	service	providers	as	well	as	fully	outsourced	end-to-end	solutions.	We	have	long-established	relationships	with	many	of	these	financial	institutions	that	generate significant	recurring	revenue.	GFS	clients	now	also	include	asset	managers,	buy-	and	sell-side	securities	and	trading	firms,	insurers	and	private	equity	firms	due	to	the addition	of	SunGard.	This	segment	also	includes	the	Company's	consolidated	Brazilian	Venture	(see	Note	17	of	the	Notes	to	Consolidated	Financial	Statements).

The	Corporate	and	Other	segment	consists	of	corporate	overhead	expense,	certain	leveraged	functions	and	miscellaneous	expenses	that	are	not	included	in	the operating	segments,	as	well	as	certain	non-strategic	businesses.	The	business	solutions	in	this	segment	include	public	sector	and	education,	commercial	services	and check	authorization.	The	overhead	and	leveraged	costs	relate	to	marketing,	corporate	finance	and	accounting,	human	resources,	legal,	and	amortization	of	acquisition- related	intangibles	and	other	costs	that	are	not	considered	when	management	evaluates	revenue	generating	segment	performance,	such	as	acquisition	integration	and severance	costs.	The	Corporate	and	Other	segment	also	includes	the	impact	on	revenue	for	2016	and	2015	of	adjusting	SunGard's	deferred	revenue	to	fair	value.	The composition	of	our	Corporate	and	Other	segment	changed	with	the	new	segment	presentation	in	2015.	Specifically,	costs	such	as	sales,	finance,	human	resources,	risk and	information	security	and	other	administrative	support	functions	that	are	directly	attributable	to	IFS	or	GFS	are	recorded	to	those	reportable	segments.

During	2016	the	Company	recorded	certain	costs	relating	to	integration	and	severance	activity	primarily	from	the	SunGard	acquisition	of	$281	million.	During	2015 the	Company	recorded	transaction	and	other	costs,	including	integration	activity,	related	to	SunGard	and	other	recent	acquisitions	and	other	severance	costs	of	$171 million	and	severance	costs	in	connection	with	the	reorganization	and	streamlining	of	operations	in	our	GFS	segment	of	$45	million.	During	2014	the	Company	recorded transaction	and	other	costs,	including	integration	activity,	related	to	recent	acquisitions	and	other	severance	costs	of	$21	million.

# (20) Share	Repurchase	Program

Our	Board	of	Directors	has	approved	a	series	of	plans	authorizing	repurchases	of	our	common	stock	in	the	open	market	at	prevailing	market	prices	or	in	privately negotiated	transactions,	the	most	current	of	which	on	January	29,	2014,	authorized	repurchases	of	up	to	$2.0	billion	through	December	31,	2017.	This	share	repurchase authorization	replaced	any	existing	share	repurchase	authorization	plan.	Approximately	$1,224	million	of	plan	capacity	remained	available	for	repurchases	as	of December	31,	2016.

|  |  |  | Total	cost	of	shares |
| :--- | :--- | :--- | :--- |
|  |  |  | purchased\tas\tpart\tof |
|  | Total\tnumber\tof | Average\tprice | publicly\tannounced |
| Year\tended | shares\tpurchased | paid\tper\tshare | plans\tor\tprograms |
| December\t31,\t2016 | — \t $ | — \t $ | — |
| December\t31,\t2015 | 5 | \t $66.10 | \t $300 |
| December\t31,\t2014 | 9 | \t $54.89 | \t $476 |

# Item	9. Changes	in	and	Disagreements	with	Accountants	on	Accounting	and	Financial

# Disclosure.

# Item	9A. Controls	and	Procedures.

As	of	the	end	of	the	year	covered	by	this	report,	we	carried	out	an	evaluation,	under	the	supervision	and	with	the	participation	of	our	principal	executive	officer	and principal	financial	officer,	of	the	effectiveness	of	the	design	and	operation	of	our	disclosure	controls	and	procedures,	as	such	term	is	defined	in	Rule	13a-15	(e)	under	the Securities	Exchange	Act	of	1934,	as	amended	(the	"Exchange	Act").	Based	on	this	evaluation,	our	principal	executive	officer	and	principal	financial	officer	concluded that	our	disclosure	controls	and	procedures	were	effective	to	ensure	that	information	required	to	be	disclosed	by	us	in	the	reports	that	we	file	or	submit	under	the Exchange	Act	is:	(a)	recorded,	processed,	summarized	and	reported	within	the	time	periods	specified	in	the	Commission's	rules	and	forms;	and	(b)	accumulated	and communicated	to	management,	including	our	principal	executive	and	principal	financial	officers,	as	appropriate	to	allow	timely	decisions	regarding	required	disclosure.

We	completed	the	SunGard	acquisition	on	November	30,	2015	(see	Note	3	of	the	Notes	to	the	Consolidated	Financial	Statements).		SunGard	has	been	fully	integrated into	the	assessment	of	internal	control	reporting	as	of	December	31,	2016.

There	were	no	changes	in	our	internal	control	over	financial	reporting	that	occurred	during	the	most	recent	fiscal	quarter	that	have	materially	affected,	or	are reasonably	likely	to	materially	affect,	our	internal	control	over	financial	reporting.

# MANAGEMENT'S	REPORT	ON	INTERNAL	CONTROL	OVER	FINANCIAL	REPORTING

Management	is	responsible	for	establishing	and	maintaining	adequate	internal	control	over	financial	reporting,	as	such	term	is	defined	in	Exchange	Act	Rules	13a- 15(f).	Under	the	supervision	and	with	the	participation	of	our	management,	including	our	principal	executive	officer	and	principal	financial	officer,	we	conducted	an evaluation	of	the	effectiveness	of	our	internal	control	over	financial	reporting.	Management	has	adopted	the	framework	in	Internal	Control	-	Integrated	Framework issued	by	the	Committee	of	Sponsoring	Organizations	of	the	Treadway	Commission	(COSO).	Based	on	our	evaluation	under	this	framework,	our	management concluded	that	our	internal	control	over	financial	reporting	was	effective	as	of	December	31,	2016.	KPMG	LLP,	an	independent	registered	public	accounting	firm,	has issued	an	attestation	report	on	our	internal	control	over	financial	reporting	as	set	forth	in	Item	8.

# Item	9B. Other	Information.

# PART	III

Within	120	days	after	the	close	of	its	fiscal	year,	the	Company	intends	to	file	with	the	Securities	and	Exchange	Commission	a	definitive	proxy	statement	pursuant	to Regulation	14A	of	the	Securities	Exchange	Act	of	1934,	as	amended,	which	will	include	the	matters	required	by	these	items.

# PART	IV

# Item	15. Exhibits	and	Financial	Statement

# Schedules

(1) Financial	Statement	Schedules:	All	schedules	have	been	omitted	because	they	are	not	applicable	or	the	required	information	is	included	in	the	Consolidated Financial	Statements	or	Notes	to	Consolidated	Financial	Statements.

(2) Exhibits:	The	following	is	a	complete	list	of	exhibits	included	as	part	of	this	report,	including	those	incorporated	by	reference.	A	list	of	those	documents	filed with	this	report	is	set	forth	on	the	Exhibit	Index	appearing	elsewhere	in	this	report	and	is	incorporated	by	reference.

|  |  |  | Incorporated	by	Reference | Incorporated	by	Reference |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Exhibit |  |  | SEC\tFile |  |  |
| No. | Exhibit\tDescription | Form | Number | Exhibit | Filing\tDate |
| 4.8 | Fifth\tSupplemental\tIndenture,\tdated\tas\tof\tOctober | 8-K | 001-16427 | 4.1 | 10/20/2015 |
|  | 20,\t2015\tbetween\tFIS\tand\tThe\tBank\tof\tNew\tYork |  |  |  |  |
|  | Mellon\tTrust\tCompany,\tN.A.,\ta\tnational\tbanking |  |  |  |  |
|  | association,\tas\ttrustee. |  |  |  |  |
| 4.9 |  | 8-K | 001-16427 | 4.2 | 10/20/2015 |
| 4.10 |  | 8-K | 001-16427 | 4.3 | 10/20/2015 |
| 4.11 |  | 8-K | 001-16427 | 4.4 | 10/20/2015 |
|  | 4.12 Ninth\tSupplemental\tIndenture,\tdated\tas\tof\tAugust\n16,\t2016\tbetween\tFIS\tand\tThe\tBank\tof\tNew\tYork\nMellon\tTrust\tCompany,\tN.A.,\ta\tnational\tbanking\nassociation,\tas\ttrustee. | 8-K | 001-16427 | 4.1 | 8/16/2016 |
| 4.13 | Tenth\tSupplemental\tIndenture,\tdated\tas\tof\tAugust\n16,\t2016\tbetween\tFIS\tand\tThe\tBank\tof\tNew\tYork\nMellon\tTrust\tCompany,\tN.A.,\ta\tnational\tbanking\nassociation,\tas\ttrustee. | 8-K | 001-16427 | 4.2 | 8/16/2016 |
| 4.14 |  | 8-K | 001-16427 | 4.3 | 8/16/2016 |
| 10.1 |  | \t8-K | 001-16427 | 99.1 | 10/27/2006 |
|  | 10.2 Cross-Indemnity\tAgreement,\tdated\tas\tof\tOctober\t23,\n2006\tby\tand\tbetween\tFidelity\tNational\tInformation\nServices,\tInc.\tand\tFidelity\tNational\tTitle\tGroup,\tInc. | \t8-K | 001-16427 | 99.2 | 10/27/2006 |
|  | 10.3 Certegy\tInc.\tDeferred\tCompensation\tPlan,\teffective\nas\tof\tJune\t15,\t2001.\t(1) | 10-K405 | 001-16427 | 10.25 | 3/25/2002 |
|  | 10.4 Certegy\t2002\tBonus\tDeferral\tProgram\tTerms\tand\nConditions.\t(1) | 10-K405 | 001-16427 | 10.29 | 3/25/2002 |
|  | 10.5 Certegy\tInc.\tExecutive\tLife\tand\tSupplemental\nRetirement\tBenefit\tPlan\tSplit\tDollar\tLife\tInsurance\nAgreement,\teffective\tas\tof\tNovember\t7,\t2003.\t(1) | 10-K | 001-16427 | 10.40 | 2/17/2004 |
|  | 10.6 Grantor\tTrust\tAgreement,\tdated\tas\tof\tJuly\t8,\t2001,\nbetween\tCertegy\tInc.\tand\tWachovia\tBank,\tN.A.\t(1) | 10-K405 | 001-16427 | 10.15 | 3/25/2002 |

|  |  |  | Incorporated	by	Reference | Incorporated	by	Reference |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Exhibit |  |  | SEC\tFile |  |  |
| No. | Exhibit\tDescription | Form | Number | Exhibit | Filing\tDate |
| 10.7 | Grantor\tTrust\tAgreement,\tdated\tas\tof\tJuly\t8,\t2001 | 10-K | 001-16427 | 10.15(a) | 2/17/2004 |
|  | and\tamended\tand\trestated\tas\tof\tDecember\t5,\t2003, |  |  |  |  |
|  | between\tCertegy\tInc.\tand\tWachovia\tBank,\tN.A.\t(1) |  |  |  |  |
| 10.8 | Form\tof\tStock\tOption\tAgreement\tand\tNotice\tof\nStock\tOption\tGrant\tunder\tFidelity\tNational\nInformation\tServices,\tInc.\t2005\tStock\tIncentive\nPlan.\t(1) | 8-K |  | 99.10 | 8/25/2005 |
| 10.9 | Fidelity\tNational\tFinancial,\tInc.\t2004\tOmnibus\nIncentive\tPlan,\teffective\tas\tof\tDecember\t16,\t2004.\n(1) | Schedule\t14A |  | Annex\tA | 11/15/2004 |
| \t10.10 | Form\tof\tNotice\tof\tStock\tOption\tGrant\tand\tStock\nOption\tAgreement\tunder\tFidelity\tNational\nInformation\tServices,\tInc.\t2008\tOmnibus\tIncentive\nPlan.\t(1) | 10-K | 001-16427 | 10.50 | 2/27/2009 |
| \t10.11 | Fidelity\tNational\tInformation\tServices,\tInc.\nEmployee\tStock\tPurchase\tPlan,\teffective\tas\tof\nMarch\t16,\t2006.\t(1) | S-4/A | 333-135845 | Annex\tC | 9/19/2006 |
| \t10.12 | Amended\tand\tRestated\tMetavante\t2007\tEquity\nIncentive\tPlan.\t(1) | S-8 | 333-158960 | 10.1 | 10/1/2009 |
| 10.13 | Form\tof\tMetavante\tNon-Statutory\tStock\tOption\nAward\t-\tCertificate\tof\tAward\tAgreement\tfor\tgrants\nmade\tbetween\tNovember\t2007\tand\tOctober\t2008.\n(1) | Metavante\nTechnologies,\tInc.\t8-\nK | 001-33747 | 10.10(a) | 11/6/2007 |
| 10.14 | Form\tof\tMetavante\tNon-Statutory\tStock\tOption\nAward\t-\tCertificate\tof\tAward\tAgreement\tfor\tgrants\nmade\tin\tNovember\t2008.\t(1) | Metavante\nTechnologies,\tInc.10-\nK | 001-33747 | 10.10(b) | 2/20/2009 |
| 10.15 | Form\tof\tStock\tOption\tAgreement\tfor\tgrants\tmade\tin\nNovember\t2009\tunder\tthe\tAmended\tand\tRestated\nMetavante\t2007\tEquity\tIncentive\tPlan.\t(1) | 10-K | 001-16427 | 10.44 | 2/26/2010 |
| \t10.16 | Form\tof\tStock\tOption\tgrant\tissued\tunder\tAmended\nand\tRestated\tMetavante\t2007\tEquity\tIncentive\tPlan\n-\tCertificate\tof\tOption\tAgreement\tfor\tgrants\tmade\tin\nOctober\t2010.\t(1) | 10-K | 001-16427 | 10.70 | 2/25/2011 |
| \t10.17 | Fidelity\tNational\tInformation\tServices,\tInc.\tAnnual\nIncentive\tPlan,\teffective\tas\tof\tOctober\t23,\t2006.\t(1) | S-4/A | 333-135845 | Annex\tD | 9/19/2006 |
| \t10.18 | Acceleration,\tChange\tof\tRole\tand\tNon-Competition\nAgreement,\tdated\tas\tof\tMarch\t30,\t2012,\tby\tand\namong\tFidelity\tNational\tInformation\tServices,\tInc.\nand\tWilliam\tP.\tFoley\tII.\t(1) | 10-Q | 001-16427 | 10.1 | 5/4/2012 |
| 10.19 | Form\tof\tFidelity\tNational\tInformation\tServices,\tInc.\n(f/k/a\tCertegy\tInc.)\tNon-Qualified\tStock\tOption\nAgreement.\t(1) | 10-K | 001-16427 | 10.56 | 3/1/2007 |
| 10.20 | Employment\tAgreement,\tdated\tas\tof\tMarch\t31,\n2009,\tby\tand\tamong\tFidelity\tNational\tInformation\nServices,\tInc.\tand\tFrank\tR.\tMartire.\t(1) | S-4 | 333-158960 | 10.1 | 5/4/2009 |

|  |  |  | Incorporated	by	Reference | Incorporated	by	Reference |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Exhibit |  |  | SEC\tFile |  |  |
| No. | Exhibit\tDescription | Form | Number | Exhibit | Filing\tDate |
| 10.21 | Amendment\tto\tthe\tEmployment\tAgreement\tby\tand | 8-K | 001-16427 | 10.1 | 12/3/2009 |
|  | between\tFidelity\tNational\tInformation\tServices,\tInc. |  |  |  |  |
|  | and\tFrank\tR.\tMartire,\teffective\tas\tof\tDecember\t1, |  |  |  |  |
|  | 2009.\t(1) |  |  |  |  |
| \t10.22 | Amendment\tNo.\t1\tto\tEmployment\tAgreement,\neffective\tas\tof\tMarch\t30,\t2012,\tby\tand\tamong\nFidelity\tNational\tInformation\tServices,\tInc.\tand\nFrank\tR.\tMartire.\t(1) | 10-Q | 001-16427 | 10.3 | 5/4/2012 |
| 10.23 | Amendment\tto\tEmployment\tAgreement,\teffective\tas\nof\tJanuary\t1,\t2015,\tby\tand\tamong\tFidelity\tNational\nInformation\tServices,\tInc.\tand\tFrank\tR.\tMartire.\t(1) | 10-K | 001-16427 | 10.28 | 2/27/2015 |
| 10.24 | Amendment\tto\tEmployment\tAgreement,\teffective\tas\nof\tFebruary\t23,\t2016\tby\tand\tamong\tFidelity\nNational\tInformation\tServices,\tInc.\tand\tFrank\tR.\nMartire.\t(1) | 10-K | 001-16427 | 10.29 | 2/26/2016 |
| 10.25 | Severance\tAgreement\tand\tRelease,\teffective\tas\tof |  |  |  |  |
|  | December\t31,\t2016\tby\tand\tamong\tFidelity\tNational |  |  |  |  |
|  | Information\tServices,\tInc.\tand\tFrank\tR.\tMartire.\t(1) |  |  |  |  |
| 10.26 | Agreement\tto\tServe\tas\tChairman\tof\tthe\tFIS'\tBoard |  |  |  |  |
|  | of\tDirectors,\teffective\tas\tof\tJanuary\t1,\t2017\tby\tand |  |  |  |  |
|  | among\tFidelity\tNational\tInformation\tServices,\tInc. |  |  |  |  |
|  | and\tFrank\tR.\tMartire.\t(1) |  |  |  |  |
| 10.27 | Amended\tand\tRestated\tEmployment\tAgreement, | 8-K | 001-16427 | 10.1 | 12/29/2009 |
|  | effective\tas\tof\tDecember\t29,\t2009,\tby\tand\tamong |  |  |  |  |
|  | Fidelity\tNational\tInformation\tServices,\tInc.\tand |  |  |  |  |
|  | Gary\tA.\tNorcross.\t(1) |  |  |  |  |
| 10.28 | Amendment\tNo.\t1\tto\tAmended\tand\tRestated\nEmployment\tAgreement,\teffective\tas\tof\tMarch\t30,\n2012,\tby\tand\tamong\tFidelity\tNational\tInformation\nServices,\tInc.,\tand\tGary\tA.\tNorcross.\t(1) | 10-Q | 001-16427 | 10.4 | 5/4/2012 |
| 10.29 | Amendment\tto\tEmployment\tAgreement,\teffective\tas\nof\tJanuary\t1,\t2015,\tby\tand\tamong\tFidelity\tNational\nInformation\tServices,\tInc.,\tand\tGary\tA.\tNorcross.\t(1) | 10-K | 001-16427 | 10.31 | 2/27/2015 |
| 10.30 | Amendment\tto\tEmployment\tAgreement,\teffective\tas\nof\tFebruary\t23,\t2016,\tby\tand\tamong\tFidelity\nNational\tInformation\tServices,\tInc.,\tand\tGary\tA.\nNorcross.\t(1) | 10-K | 001-16427 | 10.33 | 2/26/2016 |
| 10.31 | Employment\tAgreement,\teffective\tas\tof\tOctober\t1,\n2009,\tby\tand\tamong\tFidelity\tNational\tInformation\nServices,\tInc.\tand\tJames\tW.\tWoodall.\t(1) | 8-K | 001-16427 | 10.13 | 10/2/2009 |

# Incorporated	by	Reference

|  |  |  | Incorporated	by	Reference | Incorporated	by	Reference |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Exhibit |  |  | SEC\tFile |  |  |
| No. | Exhibit\tDescription | Form | Number | Exhibit | Filing\tDate |
| \t10.32 | Amendment\tto\tEmployment\tAgreement,\teffective\tas | 10-K | 001-16427 | 10.51 | 2/28/2014 |
|  | of\tJanuary\t29,\t2013,\tby\tand\tbetween\tFidelity |  |  |  |  |
|  | National\tInformation\tServices,\tInc.,\tand\tJames\tW. |  |  |  |  |
|  | Woodall.\t(1) |  |  |  |  |
| \t10.33 | Second\tAmendment\tto\tEmployment\tAgreement,\neffective\tas\tof\tMarch\t15,\t2013,\tby\tand\tbetween\nFidelity\tNational\tInformation\tServices,\tInc.,\tand\nJames\tW.\tWoodall.\t(1) | 10-K | 001-16427 | 10.52 | 2/28/2014 |
| 10.34 | Amendment\tto\tEmployment\tAgreement,\teffective\tas\nof\tFebruary\t23,\t2016,\tby\tand\tbetween\tFidelity\nNational\tInformation\tServices,\tInc.,\tand\tJames\tW.\nWoodall.\t(1) | 10-K | 001-16427 | 10.37 | 2/26/2016 |
| 10.35 | Employment\tAgreement,\teffective\tas\tof\tOctober\t1,\n2009,\tby\tand\tamong\tFidelity\tNational\tInformation\nServices,\tInc.,\tand\tMichael\tP.\tOates.\t(1) | 10-K | 001-16427 | 10.43 | 2/28/2014 |
| 10.36 | Amendment\tNo.\t1\tto\tEmployment\tAgreement,\neffective\tas\tof\tFebruary\t8,\t2012,\tby\tand\tamong\nFidelity\tNational\tInformation\tServices,\tInc.,\tand\nMichael\tP.\tOates.\t(1) | 10-K | 001-16427 | 10.44 | 2/28/2014 |
| 10.37 | Amendment\tNo.\t2\tto\tEmployment\tAgreement,\neffective\tas\tof\tJanuary\t29,\t2013,\tby\tand\tamong\nFidelity\tNational\tInformation\tServices,\tInc.,\tand\nMichael\tP.\tOates.\t(1) | 10-K | 001-16427 | 10.82 | 2/26/2013 |
| 10.38 | Amendment\tto\tEmployment\tAgreement,\teffective\tas\nof\tFebruary\t23,\t2016\tby\tand\tamong\tFidelity\nNational\tInformation\tServices,\tInc.,\tand\tMichael\tP.\nOates.\t(1) | 10-K | 001-16427 | 10.41 | 2/26/2016 |
| 10.39 | Employment\tAgreement,\teffective\tas\tof\tApril\t16,\n2012,\tby\tand\tamong\tFidelity\tNational\tInformation\nServices,\tInc.,\tand\tGregory\tG.\tMontana.\t(1) | 10-K | 001-16427 | 10.81 | 2/26/2013 |
| 10.40 | Amendment\tto\tEmployment\tAgreement,\teffective\tas\nof\tFebruary\t23,\t2016\tby\tand\tamong\tFidelity\nNational\tInformation\tServices,\tInc.,\tand\tGregory\tG.\nMontana.\t(1) | 10-K | 001-16427 | 10.43 | 2/26/2016 |
| 10.41 | Employment\tAgreement,\teffective\tas\tof\tOctober\t1,\n2009,\tby\tand\tbetween\tFidelity\tNational\tInformation\nServices,\tInc.\tand\tAnthony\tJabbour.\t(1) | 10-K | 001-16427 | 10.46 | 2/26/2016 |
| 10.42 | Amendment\tto\tEmployment\tAgreement,\teffective\tas\nof\tFebruary\t23,\t2016\tby\tand\tbetween\tFidelity\nNational\tInformation\tServices,\tInc.\tand\tAnthony\nJabbour.\t(1) | 10-K | 001-16427 | 10.47 | 2/26/2016 |
| 10.43 | Employment\tAgreement,\teffective\tas\tof\tFebruary\t1,\n2016,\tby\tand\tbetween\tFidelity\tNational\tInformation\nServices,\tInc.\tand\tMarianne\tBrown.\t(1) | 10-K | 001-16427 | 10.48 | 2/26/2016 |

|  |  |  | Incorporated	by	Reference | Incorporated	by	Reference |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Exhibit |  |  | SEC\tFile |  |  |
| No. | Exhibit\tDescription | Form | Number | Exhibit | Filing\tDate |
| 10.44 | Employment\tAgreement,\teffective\tas\tof\tNovember |  |  |  |  |
|  | 15,\t2016,\tby\tand\tbetween\tFidelity\tNational |  |  |  |  |
|  | Information\tServices,\tInc.\tand\tKaty\tThompson.\t(1) |  |  |  |  |
| 10.45 | Form\tof\tStock\tOption\tgrant\tissued\tunder\tFidelity | 10-K | 001-16427 | 10.65 | 2/25/2011 |
|  | National\tInformation\tServices,\tInc.\t2008\tOmnibus |  |  |  |  |
|  | Incentive\tPlan\t-\tCertificate\tof\tOption\tAgreement\tfor |  |  |  |  |
|  | grants\tmade\tin\tOctober\t2010.\t(1) |  |  |  |  |
| 10.46 | Form\tof\tStock\tOption\tgrant\tissued\tunder\tFidelity\nNational\tInformation\tServices,\tInc.\t2008\tOmnibus\nIncentive\tPlan\t-\tCertificate\tof\tOption\tAgreement\tfor\ngrants\tmade\tin\tApril,\tJune,\tSeptember\tand\tOctober\n2010.\t(1) | 10-K | 001-16427 | 10.66 | 2/25/2011 |
| 10.47 | Form\tof\tRestricted\tStock\tGrant\tfor\tDirectors\tunder\nFidelity\tNational\tInformation\tServices,\tInc.,\t2008\nOmnibus\tIncentive\tPlan\tfor\tgrants\tmade\tin\nNovember\t2012.\t(1) | 10-K | 001-16427 | 10.53 | 2/28/2014 |
| 10.48 | Form\tof\tRestricted\tStock\tGrant\tfor\tEmployees\tunder\nFidelity\tNational\tInformation\tServices,\tInc.,\t2008\nOmnibus\tIncentive\tPlan\tfor\tgrants\tmade\tin\nNovember\t2012.\t(1) | 10-K | 001-16427 | 10.54 | 2/28/2014 |
| 10.49 | Form\tof\tRestricted\tStock\tGrant\tfor\tEmployees\tunder\nFidelity\tNational\tInformation\tServices,\tInc.,\npursuant\tto\tthe\tAmended\tand\tRestated\t2008\nOmnibus\tIncentive\tPlan\tfor\tgrants\tmade\tin\nNovember\t2012.\t(1) | 10-K | 001-16427 | 10.55 | 2/28/2014 |
| 10.50 | Form\tof\tRestricted\tStock\tGrant\tfor\tDirectors\tunder\nFidelity\tNational\tInformation\tServices,\tInc.\tamended\nand\trestated\t2008\tOmnibus\tIncentive\tPlan\tfor\tgrants\nmade\tin\tOctober\tand\tDecember\t2013.\t(1) | 10-K | 001-16427 | 10.56 | 2/28/2014 |
| 10.51 | Form\tof\tNon-Statutory\tStock\tOption\tAward\tunder\nFidelity\tNational\tInformation\tServices,\tInc.\tamended\nand\trestated\t2008\tOmnibus\tIncentive\tPlan\tfor\tgrants\nmade\tin\tOctober\tand\tDecember\t2013.\t(1) | 10-K | 001-16427 | 10.57 | 2/28/2014 |
| 10.52 | Form\tof\tRestricted\tStock\tGrant\tfor\tEmployees\tunder\nFidelity\tNational\tInformation\tServices,\tInc.\tamended\nand\trestated\t2008\tOmnibus\tIncentive\tPlan\tfor\tgrants\nmade\tin\tOctober\t2013.\t(1) | 10-K | 001-16427 | 10.58 | 2/28/2014 |
| 10.53 | Fidelity\tNational\tInformation\tServices,\tInc.\t2008\nOmnibus\tIncentive\tPlan,\tas\tamended\tand\trestated\neffective\tMay\t29,\t2013.\t(1) | DEF\t14A | 001-16427 | Annex\tA | 4/19/2013 |
| 10.54 | Form\tof\tRestricted\tStock\tGrant\tfor\tEmployees\tunder\nFidelity\tNational\tInformation\tServices,\tInc.\tamended\nand\trestated\t2008\tOmnibus\tIncentive\tPlan\tfor\tgrants\nmade\tin\t2014.\t(1) | 10-K | 001-16427 | 10.58 | 2/26/2016 |

# *Filed	or	furnished	herewith

+	Pursuant	to	Rule	406T	of	Regulation	S-T,	the	Interactive	Data	Files	on	Exhibit	101	hereto	are	deemed	not	filed	or	part	of	a	registration	statement	or	prospectus	for	purposes	of Sections	11	or	12	of	the	Securities	Act	of	1933,	as	amended,	are	deemed	not	filed	for	purposes	of	Section	18	of	the	Securities	Exchange	Act	of	1934,	as	amended,	and	otherwise	are not	subject	to	liability	under	those	sections.

# SIGNATURES

Pursuant	to	the	requirements	of	Section	13	or	15(d)	of	the	Securities	Exchange	Act	of	1934,	the	registrant	has	duly	caused	this	report	to	be	signed	on	its	behalf	by the	undersigned,	thereunto	duly	authorized.

Gary	A.	Norcross

President	and	Chief	Executive	Officer

Pursuant	to	the	requirements	of	the	Securities	Exchange	Act	of	1934,	this	report	has	been	signed	below	by	the	following	persons	on	behalf	of	the	registrant	and	in the	capacities	and	on	the	dates	indicated.

| Date: | February	23,	2017 | By: | /s/		JAMES	W.	WOODALL |
| :--- | :--- | :--- | :--- |
|  |  |  | James\tW.\tWoodall |
|  |  |  | Corporate\tExecutive\tVice\tPresident\tand |
|  |  |  | Chief\tFinancial\tOfficer\t(Principal\tFinancial\tOfficer) |
| Date: | February\t23,\t2017 | By: | /s/\tKATY\tT.\tTHOMPSON |
|  |  |  | Katy\tT.\tThompson |
|  |  |  | Chief\tAccounting\tOfficer |
|  |  |  | (Principal\tAccounting\tOfficer) |
| Date: | February\t23,\t2017 | By: | /s/\tFRANK\tR.\tMARTIRE |
|  |  |  | Frank\tR.\tMartire |
|  |  |  | Chairman\tof\tthe\tBoard |
|  |  |  | Director |
| Date: | February\t23,\t2017 | By: | /s/\t\tWILLIAM\tP.\tFOLEY,\tII |
|  |  |  | William\tP.\tFoley,\tII |
|  |  |  | Vice\tChairman\tof\tthe\tBoard |
| Date: | February\t23,\t2017 | By: | /s/\t\tGARY\tA.\tNORCROSS |
|  |  |  | Gary\tA.\tNorcross |
|  |  |  | President,\tChief\tExecutive\tOfficer\tand\tDirector |
| Date: | February\t23,\t2017 | By: | /s/\t\tELLEN\tR.\tALEMANY |
|  |  |  | Ellen\tR.\tAlemany |
|  |  |  | Director |
| Date: | February\t23,\t2017 | By: | /s/\t\tTHOMAS\tM.\tHAGERTY |
|  |  |  | Thomas\tM.\tHagerty |
|  |  |  | Director |
| Date: | February\t23,\t2017 | By: | /s/\t\tKEITH\tW.\tHUGHES |
|  |  |  | Keith\tW.\tHughes |
|  |  |  | Director |
| Date: | February\t23,\t2017 | By: | /s/\t\tDAVID\tK.\tHUNT |



Question: what was the difference in percentage cumulative 5-year total shareholder return on common stock fidelity national information services , inc . compared to the s&p 500 for the period ending 12/16?
Answer: 113.63%