FISERV INCFISV
FISERV INC Leases Disclosure
Leases
Company as Lessee
The Company primarily leases office space, data centers and equipment from third parties. The Company determines if a contract is a lease at inception. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term begins on the commencement date, which is the date the Company takes possession or obtains control of the asset, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Many of the Company’s leases contain renewal options for varying periods, which can be exercised at the Company’s sole discretion. Leases are classified as operating or finance leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The Company’s leases have remaining lease terms ranging from one month to 18 years.
The Company uses the right-of-use model to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as variable lease expenses when incurred. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with a term of 12 months or less are not recorded on the consolidated balance sheets; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The depreciable life of the ROU assets and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option. The Company uses its incremental borrowing rate to discount future lease payments in the calculation of the lease liability and ROU asset based on the information available on the commencement date for each lease. The Company’s leases typically do not provide an implicit rate. The determination of the incremental borrowing rate requires judgment and is determined using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization, currency and term to align with the terms of the lease.
Lease Balances
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
Assets | |||||||||||
Operating lease assets (1) | $ | 589 | $ | 595 | |||||||
Finance lease assets (2) | 1,118 | 611 | |||||||||
| Total lease assets | $ | 1,707 | $ | 1,206 | |||||||
| Liabilities | |||||||||||
Current: | |||||||||||
Operating lease liabilities (1) | $ | 126 | $ | 116 | |||||||
Finance lease liabilities (2) | 284 | 209 | |||||||||
Noncurrent: | |||||||||||
Operating lease liabilities (1) | 637 | 654 | |||||||||
Finance lease liabilities (2) | 841 | 417 | |||||||||
| Total lease liabilities | $ | 1,888 | $ | 1,396 | |||||||
(1) Operating lease assets are included within , and operating lease liabilities are included within (current portion) and (noncurrent portion) in the consolidated balance sheets.
(2)Finance lease assets are included within and finance lease liabilities are included within (current portion) and (noncurrent portion) in the consolidated balance sheets.
Components of Lease Cost
| Year Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
Operating lease cost (1) | $ | 201 | $ | 193 | $ | 185 | |||||||||||
Finance lease cost: (2) | |||||||||||||||||
Amortization of right-of-use assets | 278 | 210 | 189 | ||||||||||||||
Interest on lease liabilities | 59 | 39 | 31 | ||||||||||||||
Total lease cost | $ | 538 | $ | 442 | $ | 405 | |||||||||||
(1)Operating lease expense is included within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the consolidated statements of income. Operating lease expense includes approximately $55 million, $51 million and $41 million of variable lease costs during the years ended December 31, 2025, 2024 and 2023, respectively.
(2)Finance lease expense is recorded as depreciation and amortization expense within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, and interest expense, net in the consolidated statements of income.
Supplemental Cash Flow Information
| Year Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows - operating leases | $ | 128 | $ | 124 | $ | 134 | |||||||||||
Operating cash flows - finance leases | 59 | 39 | 31 | ||||||||||||||
Financing cash flows - finance leases | 345 | 264 | 207 | ||||||||||||||
| Right-of-use assets obtained in exchange for lease liabilities: | |||||||||||||||||
| Operating leases | $ | 56 | $ | 105 | $ | 76 | |||||||||||
| Finance leases | 924 | 221 | 279 | ||||||||||||||
Lease Term and Discount Rate
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted-average remaining lease term: | |||||||||||
| Operating leases | 9 years | 10 years | |||||||||
| Finance leases | 5 years | 4 years | |||||||||
| Weighted-average discount rate: | |||||||||||
| Operating leases | 3.2 | % | 3.1 | % | |||||||
| Finance leases | 5.2 | % | 5.3 | % | |||||||
Maturity of Lease Liabilities
Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2025:
| (In millions) | |||||||||||
| Year Ending December 31, | Operating Leases (1)(2) | Finance Leases (3) | |||||||||
| 2026 | $ | 148 | $ | 348 | |||||||
| 2027 | 138 | 295 | |||||||||
| 2028 | 116 | 239 | |||||||||
| 2029 | 90 | 205 | |||||||||
| 2030 | 69 | 131 | |||||||||
| Thereafter | 343 | 44 | |||||||||
| Total lease payments | 904 | 1,262 | |||||||||
| Less: Interest | (141) | (137) | |||||||||
| Present value of lease liabilities | $ | 763 | $ | 1,125 | |||||||
(1)Operating lease payments include $84 million related to options to extend lease terms that are reasonably certain of being exercised.
(2)Operating lease payments exclude $162 million of legally binding minimum lease payments for leases signed but not yet commenced. Operating leases that have been signed but not yet commenced are for real estate and will commence in 2026 with lease terms up to 21 years.
(3)Finance lease payments exclude $393 million of legally binding minimum lease payments for leases signed but not yet commenced. Finance leases that have been signed but not yet commenced are for equipment and will commence in 2026 with lease terms of up to 7 years.
Company as Lessor
The Company owns certain POS terminal equipment which it leases to merchants. Leases are classified as operating or sales-type leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. The terms of the leases typically range from one month to four years. For operating leases, the minimum lease payments received are recognized as lease income within product revenue on a straight-line basis over the lease term and the leased asset is included in property and equipment, net in the consolidated balance sheets and depreciated over its estimated useful life. For sales-type leases, selling profit is recognized within product revenue at the commencement date of the lease to the extent the fair value of the underlying asset is different from its carrying amount. Selling profit is directly impacted by the Company’s estimate of the amount to be derived from the residual value of the asset at the end of the lease term. The residual value of the asset is computed using various assumptions, including the expected value of the underlying asset at the end of the lease term. Unearned income is recognized as interest income within product revenue over the lease term. For sales-type leases, the Company derecognizes the carrying amount of the underlying leased asset and recognizes a net investment in the leased asset in the consolidated balance sheets. The net investment in a leased asset is computed based on the present value of the minimum lease payments not yet received, along with the present value of the residual value of the asset less unearned interest income.
Components of Lease Income
| Year Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
Sales-type leases: | |||||||||||||||||
Selling profit (1) | $ | 92 | $ | 74 | $ | 56 | |||||||||||
Interest income (2) | 116 | 87 | 81 | ||||||||||||||
Operating lease income (3) | 236 | 243 | 259 | ||||||||||||||
(1)Selling profit includes $257 million, $213 million and $160 million recorded within product revenue with a corresponding charge of $165 million, $139 million and $104 million recorded within cost of product in the consolidated statements of income for the years ended December 31, 2025, 2024 and 2023, respectively.
(2)Interest income is included within product revenue in the consolidated statements of income.
(3)Operating lease income includes a nominal amount of variable lease income and is included within in the consolidated statements of income for each of the years ended December 31, 2025, 2024 and 2023.
Components of Net Investment in Sales-Type Leases
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
Minimum lease payments | $ | 582 | $ | 520 | |||||||
Residual values | 23 | 22 | |||||||||
Less: Unearned interest income | (197) | (185) | |||||||||
Net investment in leases (1) | $ | 408 | $ | 357 | |||||||
(1)Net investments in leased assets are included within prepaid expenses and other current assets (current portion) and other long-term assets (noncurrent portion) in the consolidated balance sheets.
Maturities of Future Minimum Lease Payment Receivables
Future minimum lease payments receivable on sales-type leases were as follows at December 31, 2025:
| (In millions) | |||||
| Year Ending December 31, | Sales-Type Leases | ||||
| 2026 | $ | 227 | |||
| 2027 | 180 | ||||
| 2028 | 123 | ||||
| 2029 | 48 | ||||
| 2030 | 4 | ||||
| Thereafter | — | ||||
| Total minimum lease payments | $ | 582 | |||
Lease Payment Receivables Portfolio
The Company accounts for lease payment receivables in connection with POS terminal equipment as a single portfolio. The Company recognizes an allowance for expected credit losses on lease payment receivables at the commencement date of the lease by considering the term, geography and internal credit risk ratings of such lease. The internal credit risk ratings are established based on lessee specific risk factors, such as FICO score, number of years the lessee has been in business and the nature of the lessee’s industry, which are considered indicators of the likelihood a lessee may default in the future. The allowance for estimated credit losses on lease payment receivables was $55 million and $50 million at December 31, 2025 and 2024, respectively.
The Company determines delinquency status on lease payment receivables based on the number of calendar days past due. The Company considers lease payments that are 90 days or less past due as performing. Lease payments that are greater than 90 days past due are placed on non-accrual status in which interest income within product revenue is no longer recognized. Lease payment receivables are fully written off in the period they become delinquent greater than 180 days past due. Lease payment receivables that were determined to be on non-accrual status were nominal at each of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 19, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.