Name: Fiserv Inc. (NASDAQ:FISV) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Fiserv Inc., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	1,403)	975)	914)	1,187)	1,246)
Fair market value adjustment on cash flow hedges, net of income tax	6)	5)	(134)	(5)	4)
Reclassification adjustment for net realized (gains) losses on cash flow hedges included in cost of processing and services, net of income tax	(8)	(1)	(1)	(1)	—)
Reclassification adjustment for net realized (gains) losses on cash flow hedges included in net interest expense, net of income tax	16)	16)	10)	4)	6)
Unrealized gains (losses) on defined benefit pension plans, net of income tax	50)	(6)	(4)	—)	—)
Foreign currency translation, net of income tax	(461)	(186)	8)	(11)	12)
Other comprehensive income (loss)	(397)	(172)	(121)	(13)	22)
Comprehensive income	1,006)	803)	793)	1,174)	1,268)
Comprehensive income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests	(30)	(52)	(13)	—)	—)
Comprehensive income attributable to Fiserv, Inc.	976)	751)	780)	1,174)	1,268)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The financial trajectory from 2017 to 2021 is characterized by a growing divergence between net income and comprehensive income. While net income demonstrated a recovery and eventual growth by the end of the period, comprehensive income was significantly suppressed by widening losses in other comprehensive income components, primarily driven by macroeconomic factors.

Net Income Performance: Net income exhibited a U-shaped trend over the five-year period. Following a peak of 1,246 million USD in 2017, earnings declined to a low of 914 million USD in 2019. A subsequent recovery occurred, with net income rising to 1,403 million USD by December 31, 2021, marking the highest point in the analyzed timeframe.
Other Comprehensive Income (OCI) Volatility: A severe and accelerating downward trend is observed in other comprehensive income, which transitioned from a positive 22 million USD in 2017 to a loss of 397 million USD in 2021. This deterioration is almost entirely attributable to foreign currency translation, net of income tax, which shifted from a gain of 12 million USD in 2017 to a substantial loss of 461 million USD in 2021.
Hedge and Pension Adjustments: Reclassification adjustments for net realized gains or losses on cash flow hedges included in net interest expense showed steady growth, increasing from 6 million USD in 2017 to 16 million USD in 2021. Additionally, unrealized gains on defined benefit pension plans provided a late-period positive offset of 50 million USD in 2021, contrasting with losses recorded in 2019 and 2020.
Comprehensive Income Attribution: The comprehensive income attributable to Fiserv, Inc. reflects the net impact of operational profitability and currency headwinds. Despite the 2021 surge in net income, the total comprehensive income attributable to the company ended at 976 million USD in 2021, representing a decrease from the 1,268 million USD reported in 2017. This indicates that foreign exchange losses have significantly offset the gains achieved through core operational net income.

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