Fiserv Inc.

09/25/2024 | Press release | Distributed by Public on 09/25/2024 14:39

Regulation FD Disclosure Form 8 K

Item 2.06.

Material Impairments.

On September 20, 2024, Fiserv, Inc. (the "Company") determined that it expects to record a non-cash impairment of the carrying value of its equity method investment in Wells Fargo Merchant Services ("WFMS") in the third quarter of 2024 in accordance with U.S. generally accepted accounting principles. WFMS is a joint venture that is owned 40% by a wholly owned subsidiary of the Company and 60% by Wells Fargo Bank, National Association ("Wells Fargo"). The Company acquired its 40% ownership in WFMS through its 2019 merger with First Data Corporation. The joint venture is expected to expire on April 1, 2025. Upon expiration, the Company expects to receive a cash payment or assets equal to the value of its share of the joint venture, as determined in accordance with an agreed upon contractual valuation and separation process.

The Company estimates the impairment charge to be in the range of $400 million to $600 million. This estimate is based on the Company's estimate of the value of its portion of the joint venture and is subject to adjustment based on completion of the valuation process agreed to by the Company and Wells Fargo and additional information received throughout the valuation process. The Company does not expect the impairment charge to result in any material future cash expenditures.