Analysis of Reportable Segments
Fiserv Inc. operates in 3 segments: Merchant Acceptance (Acceptance); Financial Technology (Fintech); and Payments and Network (Payments).
Segment Profit Margin
Fiserv Inc., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 30.81% | 25.84% | 29.72% | — | — |
| Financial Technology (Fintech) | 35.77% | 34.20% | 30.08% | 29.17% | — |
| Payments and Network (Payments) | 43.84% | 42.90% | 42.41% | 44.89% | — |
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).
An analysis of reportable segment profit margins between 2018 and 2021 reveals divergent performance trajectories and varying levels of operational efficiency across the three business units. While one segment maintains a high, stable baseline of profitability, another demonstrates consistent growth, and the third exhibits a recovery pattern following a temporary decline.
- Merchant Acceptance
- Profitability within this segment experienced a notable fluctuation. After recording a margin of 29.72% in 2019, the margin contracted to 25.84% in 2020. This downward trend was reversed in 2021, with the margin expanding to 30.81%, marking the highest level observed for this segment within the provided timeframe.
- Financial Technology
- A sustained and positive growth trend is observed in the Fintech segment. Margins expanded incrementally each year, rising from 29.17% in 2018 to 30.08% in 2019, 34.20% in 2020, and reaching 35.77% by December 31, 2021. This represents the most consistent improvement in profit margin among all reportable segments.
- Payments and Network
- This segment consistently operates as the highest-margin division. Although a slight decline occurred between 2018 and 2019, falling from 44.89% to 42.41%, the margin remained resilient. A gradual recovery followed, with margins increasing to 42.90% in 2020 and 43.84% in 2021, maintaining a significant lead in profitability over the other segments.
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Segment Profit Margin: Merchant Acceptance (Acceptance)
Fiserv Inc.; Merchant Acceptance (Acceptance); segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 1,996) | 1,427) | 764) | —) | —) |
| Revenue | 6,479) | 5,522) | 2,571) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 30.81% | 25.84% | 29.72% | — | — |
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).
1 2021 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 1,996 ÷ 6,479 = 30.81%
The Merchant Acceptance segment demonstrated substantial growth in both scale and profitability between 2019 and 2021. While revenue and operating income grew consistently, the segment profit margin experienced a period of volatility before reaching a peak at the end of the analyzed period.
- Revenue Expansion
- Revenue grew aggressively from US$ 2,571 million in 2019 to US$ 6,479 million by 2021. The most significant surge occurred between 2019 and 2020, during which revenue more than doubled, indicating a rapid expansion of the segment's operational scale.
- Operating Income Trajectory
- Operating income followed a strong upward trend, increasing from US$ 764 million in 2019 to US$ 1,996 million in 2021. This reflects a consistent ability to convert increased revenue into operational profit, with absolute income nearly tripling over the three-year window.
- Segment Profit Margin Analysis
- The profit margin exhibited a V-shaped trend. After starting at 29.72% in 2019, the margin contracted to 25.84% in 2020, suggesting that the costs associated with the rapid revenue surge in that year grew faster than income. However, a strong recovery was observed in 2021, with the margin expanding to 30.81%, marking the highest efficiency level within the period.
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Segment Profit Margin: Financial Technology (Fintech)
Fiserv Inc.; Financial Technology (Fintech); segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 1,081) | 992) | 885) | 851) | —) |
| Revenue | 3,022) | 2,901) | 2,942) | 2,917) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 35.77% | 34.20% | 30.08% | 29.17% | — |
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).
1 2021 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 1,081 ÷ 3,022 = 35.77%
The Financial Technology segment demonstrates a consistent trend of margin expansion and operating income growth from 2018 to 2021. While revenue remained relatively stable, operating income grew steadily, indicating a significant improvement in operational efficiency and profitability over the period.
- Revenue Performance
- Revenue exhibited minimal volatility, starting at US$ 2,917 million in 2018 and ending at US$ 3,022 million in 2021. A slight contraction was noted in 2020, with revenue dipping to US$ 2,901 million, before returning to growth in 2021.
- Operating Income Growth
- Operating income showed a linear upward trajectory, increasing every year from US$ 851 million in 2018 to US$ 1,081 million in 2021. This growth occurred independently of significant revenue surges, suggesting that the increase in profitability was driven by internal cost optimizations or a shift in product mix.
- Segment Profit Margin Trends
- The segment profit margin rose steadily from 29.17% in 2018 to 35.77% in 2021. A notable acceleration in margin expansion occurred between 2019 and 2020, where the margin increased from 30.08% to 34.20%, despite a marginal decline in revenue during that same timeframe.
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Segment Profit Margin: Payments and Network (Payments)
Fiserv Inc.; Payments and Network (Payments); segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 2,557) | 2,361) | 1,658) | 1,081) | —) |
| Revenue | 5,833) | 5,504) | 3,909) | 2,408) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 43.84% | 42.90% | 42.41% | 44.89% | — |
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).
1 2021 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 2,557 ÷ 5,833 = 43.84%
The Payments and Network segment demonstrates significant growth in both scale and absolute profitability between 2018 and 2021. Revenue and operating income exhibited a strong upward trajectory throughout the period, while the segment profit margin remained consistently high and stable.
- Revenue and Operating Income Expansion
- Revenue grew substantially from US$ 2,408 million in 2018 to US$ 5,833 million in 2021, representing a more than twofold increase. Operating income mirrored this growth, rising from US$ 1,081 million in 2018 to US$ 2,557 million in 2021. The most rapid acceleration in both metrics occurred between 2018 and 2020.
- Segment Profit Margin Stability
- Despite the rapid expansion in revenue, the segment profit margin remained resilient. After a slight decrease from 44.89% in 2018 to 42.41% in 2019, the margin recovered steadily, reaching 43.84% by December 31, 2021. This stability indicates that the segment effectively managed its cost structure during a period of aggressive scaling.
- Operational Efficiency
- The convergence of rising operating income and a stabilizing profit margin suggests strong operational leverage. The ability to maintain margins above 42% while more than doubling revenue indicates a sustainable cost model and consistent pricing power within the Payments and Network segment.
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Segment Capital Expenditures to Depreciation
Fiserv Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 1.28 | 0.95 | 1.01 | — | — |
| Financial Technology (Fintech) | 0.98 | 0.91 | 0.95 | 0.83 | — |
| Payments and Network (Payments) | 1.07 | 0.98 | 0.96 | 0.83 | — |
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).
An analysis of the capital expenditures to depreciation ratios across the reportable segments from 2018 to 2021 reveals a general trend toward increased capital investment relative to asset replacement. While several segments initially operated with ratios below 1.0, indicating that capital spending did not fully offset depreciation, there is a notable shift toward expansionary spending by the end of the period.
- Merchant Acceptance
- This segment experienced fluctuations between 2019 and 2021. After a slight decline from 1.01 in 2019 to 0.95 in 2020, the ratio rose significantly to 1.28 in 2021. This sharp increase indicates a substantial acceleration in capital investment exceeding the rate of asset depreciation during the final year of the observed period.
- Financial Technology
- The Financial Technology segment demonstrated relative stability, with the ratio moving from 0.83 in 2018 to 0.98 in 2021. Although the ratio trended slightly upward, it remained consistently near or below the 1.0 threshold, suggesting a strategy focused primarily on maintaining existing asset bases rather than aggressive expansion.
- Payments and Network
- A steady upward trajectory is observed in the Payments and Network segment. The ratio increased progressively from 0.83 in 2018 to 0.96 in 2019, 0.98 in 2020, and finally to 1.07 in 2021. This consistent growth reflects a transition from a period of under-investment relative to depreciation to a growth-oriented investment phase.
Overall, the aggregate movement across all segments indicates a strategic pivot toward higher capital intensity by 2021, particularly within the Merchant Acceptance and Payments and Network segments, where spending surpassed depreciation levels.
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Segment Capital Expenditures to Depreciation: Merchant Acceptance (Acceptance)
Fiserv Inc.; Merchant Acceptance (Acceptance); segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures, including capitalized software and other intangibles | 314) | 227) | 147) | —) | —) |
| Depreciation and amortization expense | 245) | 239) | 146) | —) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.28 | 0.95 | 1.01 | — | — |
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).
1 2021 Calculation
Segment capital expenditures to depreciation = Capital expenditures, including capitalized software and other intangibles ÷ Depreciation and amortization expense
= 314 ÷ 245 = 1.28
Between 2019 and 2021, the Merchant Acceptance segment demonstrated a consistent upward trajectory in capital expenditures, including capitalized software and other intangibles. Spending increased from $147 million in 2019 to $227 million in 2020, reaching $314 million by the end of 2021. Concurrently, depreciation and amortization expenses rose from $146 million in 2019 to $245 million in 2021, though the growth in depreciation slowed considerably between 2020 and 2021.
- Capital Expenditure to Depreciation Ratio Trends
- The ratio remained near parity between 2019 and 2020, moving from 1.01 to 0.95. This indicates a period where capital investments were roughly equivalent to the consumption of existing assets, suggesting a strategy focused on maintaining current operational capacity and replacing depreciating assets.
- Shift Toward Growth Investment
- A notable increase in the ratio to 1.28 was observed in 2021. This shift indicates that capital expenditures began to significantly outpace depreciation and amortization expenses, signaling a transition from maintenance-level spending to an expansionary phase. Such a trend typically reflects aggressive investment in new technology, software development, or infrastructure to support growth.
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Segment Capital Expenditures to Depreciation: Financial Technology (Fintech)
Fiserv Inc.; Financial Technology (Fintech); segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures, including capitalized software and other intangibles | 222) | 183) | 182) | 153) | —) |
| Depreciation and amortization expense | 226) | 202) | 191) | 185) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.98 | 0.91 | 0.95 | 0.83 | — |
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).
1 2021 Calculation
Segment capital expenditures to depreciation = Capital expenditures, including capitalized software and other intangibles ÷ Depreciation and amortization expense
= 222 ÷ 226 = 0.98
Between 2018 and 2021, the Financial Technology segment exhibited a consistent increase in both investment and depreciation costs, although capital reinvestment remained below the level of asset consumption throughout the period.
- Capital Expenditure Trends
- Investment in capital expenditures, including capitalized software and intangibles, rose from 153 million US dollars in 2018 to 222 million US dollars in 2021. This represents a general upward trajectory, with the most pronounced growth occurring between 2018 and 2019, and again between 2020 and 2021.
- Depreciation and Amortization Trends
- Depreciation and amortization expenses increased steadily from 185 million US dollars in 2018 to 226 million US dollars in 2021. This linear growth reflects the systematic allocation of the cost of the segment's tangible and intangible assets over their useful lives.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio remained below 1.00 for all five reported years, starting at 0.83 in 2018 and ending at 0.98 in 2021. A ratio of less than 1.0 indicates that capital spending is not fully replacing the value of assets as they depreciate. While the ratio trended upward overall—peaking at 0.98 in 2021—the consistent gap suggests a period where asset consumption outpaced new capital investment, potentially indicating a transition toward more efficient technology or a strategic reduction in the asset base.
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Segment Capital Expenditures to Depreciation: Payments and Network (Payments)
Fiserv Inc.; Payments and Network (Payments); segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures, including capitalized software and other intangibles | 272) | 242) | 196) | 67) | —) |
| Depreciation and amortization expense | 254) | 248) | 204) | 81) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.07 | 0.98 | 0.96 | 0.83 | — |
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).
1 2021 Calculation
Segment capital expenditures to depreciation = Capital expenditures, including capitalized software and other intangibles ÷ Depreciation and amortization expense
= 272 ÷ 254 = 1.07
An examination of the Payments and Network segment reveals a consistent increase in both capital expenditures and depreciation expenses from 2018 through 2021, indicating a period of significant asset expansion and investment.
- Capital Expenditure Growth
- Annual investments, including capitalized software and intangibles, expanded substantially from US$ 67 million in 2018 to US$ 272 million by the end of 2021. This represents a sustained upward trajectory in the allocation of resources toward long-term productive assets.
- Depreciation and Amortization Trends
- Depreciation and amortization expenses followed a parallel upward path, rising from US$ 81 million in 2018 to US$ 254 million in 2021. The most significant increase occurred between 2018 and 2019, where expenses more than doubled, reflecting a larger asset base being depreciated.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation demonstrated a steady increase over the period, moving from 0.83 in 2018 to 1.07 in 2021. The initial values below 1.0 suggest that investments were primarily focused on maintaining existing operations rather than expanding the asset base. However, the shift to a ratio above 1.0 by 2021 indicates a transition to a growth phase, where current capital spending exceeds the consumption of existing assets through depreciation.
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Revenue
Fiserv Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 6,479) | 5,522) | 2,571) | —) | —) |
| Financial Technology (Fintech) | 3,022) | 2,901) | 2,942) | 2,917) | —) |
| Payments and Network (Payments) | 5,833) | 5,504) | 3,909) | 2,408) | —) |
| Corporate and Other | 892) | 925) | 765) | 498) | —) |
| Total | 16,226) | 14,852) | 10,187) | 5,823) | —) |
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).
Total revenue experienced aggressive growth between 2018 and 2021, increasing from $5,823 million to $16,226 million. This trajectory indicates a substantial expansion of the company's revenue base, with the most significant acceleration occurring between 2018 and 2020.
- Merchant Acceptance
- This segment demonstrated the most rapid expansion, appearing in the records in 2019 with $2,571 million and growing to $6,479 million by 2021. A notable surge occurred between 2019 and 2020, where revenue more than doubled, establishing this segment as a primary driver of total corporate growth.
- Payments and Network
- A consistent upward trend is observed in the Payments segment, which grew from $2,408 million in 2018 to $5,833 million in 2021. The growth was particularly strong between 2018 and 2020, followed by a more moderate increase in the final year of the period.
- Financial Technology
- The Fintech segment exhibited relative stagnation compared to other business lines. Revenue remained nearly flat over the four-year period, moving from $2,917 million in 2018 to $3,022 million in 2021, suggesting a mature revenue stream with limited growth volatility.
- Corporate and Other
- Revenue within this category saw a general increase from $498 million in 2018 to $892 million in 2021, peaking at $925 million in 2020 before a slight contraction in the final year.
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Operating income (loss)
Fiserv Inc., operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 1,996) | 1,427) | 764) | —) | —) |
| Financial Technology (Fintech) | 1,081) | 992) | 885) | 851) | —) |
| Payments and Network (Payments) | 2,557) | 2,361) | 1,658) | 1,081) | —) |
| Corporate and Other | (3,346) | (2,928) | (1,698) | (179) | —) |
| Total | 2,288) | 1,852) | 1,609) | 1,753) | —) |
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).
Total operating income exhibited a general upward trajectory from 2018 to 2021, rising from US$ 1,753 million to US$ 2,288 million. Despite a marginal contraction in 2019, the overall trend indicates a strengthening of operational profitability over the four-year period.
- Merchant Acceptance
- This segment demonstrated the most aggressive growth profile, with operating income increasing from US$ 764 million in 2019 to US$ 1,996 million by 2021. The rapid acceleration suggests a significant expansion in the scale and profitability of this business line.
- Payments and Network
- A strong positive trend is observed in the Payments segment, which grew from US$ 1,081 million in 2018 to US$ 2,557 million in 2021. This segment consistently served as a primary contributor to the total operating income.
- Financial Technology (Fintech)
- The Fintech segment showed a pattern of steady, incremental growth. Operating income rose from US$ 851 million in 2018 to US$ 1,081 million in 2021, reflecting stable and predictable performance.
- Corporate and Other
- A stark negative trend is evident in the Corporate and Other category, where losses expanded significantly from US$ 179 million in 2018 to US$ 3,346 million in 2021. These escalating costs exerted a substantial drag on the consolidated operating income.
The financial data reveals a distinct divergence between operational segments and corporate overhead. While the Merchant Acceptance, Payments, and Fintech segments all experienced growth, the gains were partially offset by the widening losses in the Corporate and Other segment, suggesting significant non-segment expenditures or structural costs during this period.
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Capital expenditures, including capitalized software and other intangibles
Fiserv Inc., capital expenditures, including capitalized software and other intangibles by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 314) | 227) | 147) | —) | —) |
| Financial Technology (Fintech) | 222) | 183) | 182) | 153) | —) |
| Payments and Network (Payments) | 272) | 242) | 196) | 67) | —) |
| Corporate and Other | 352) | 248) | 196) | 140) | —) |
| Total | 1,160) | 900) | 721) | 360) | —) |
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).
Total capital expenditures, including capitalized software and other intangibles, exhibited a consistent and substantial upward trend between 2018 and 2021. Aggregate investment rose from 360 million US dollars in 2018 to 1.16 billion US dollars by the end of 2021, representing a significant escalation in capital allocation across all reportable segments.
- Merchant Acceptance
- Investment in this segment began appearing in the records in 2019 at 147 million US dollars and experienced rapid growth thereafter. Expenditures increased to 227 million US dollars in 2020 and reached 314 million US dollars by 2021, reflecting a strong upward trajectory in capital deployment.
- Financial Technology (Fintech)
- This segment showed a steady increase in expenditures, growing from 153 million US dollars in 2018 to 222 million US dollars in 2021. While growth was more moderate compared to other segments, there was a notable period of stability between 2019 and 2020, where spending remained nearly flat at approximately 182 million to 183 million US dollars.
- Payments and Network
- A sharp increase in capital expenditures was observed between 2018 and 2019, with spending rising from 67 million US dollars to 196 million US dollars. This momentum continued through 2021, with expenditures reaching 272 million US dollars, indicating a strategic shift toward higher investment in this segment over the four-year period.
- Corporate and Other
- Expenditures within the Corporate and Other category grew consistently each year, starting at 140 million US dollars in 2018 and rising to 352 million US dollars in 2021. By the end of the period, this segment represented one of the largest portions of the total capital expenditure.
The overall growth pattern indicates a comprehensive expansion of the company's investment base. The most aggressive growth in spending is observed in the Merchant Acceptance and Payments and Network segments, while Corporate and Other costs grew steadily in tandem with the total expenditure increase.
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Depreciation and amortization expense
Fiserv Inc., depreciation and amortization expense by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Merchant Acceptance (Acceptance) | 245) | 239) | 146) | —) | —) |
| Financial Technology (Fintech) | 226) | 202) | 191) | 185) | —) |
| Payments and Network (Payments) | 254) | 248) | 204) | 81) | —) |
| Corporate and Other | 2,523) | 2,568) | 1,237) | 290) | —) |
| Total | 3,248) | 3,257) | 1,778) | 556) | —) |
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).
Total depreciation and amortization expenses exhibited a period of rapid escalation between 2018 and 2020, followed by a stabilization in 2021. The aggregate expense rose from 556 million US dollars in 2018 to a peak of 3,257 million US dollars in 2020, before ending 2021 at 3,248 million US dollars.
- Corporate and Other Segment
- This segment acted as the primary catalyst for the increase in total expenses. Depreciation and amortization charges grew exponentially from 290 million US dollars in 2018 to 2,568 million US dollars in 2020, before slightly moderating to 2,523 million US dollars in 2021. The scale of this increase suggests significant capital allocation or the recognition of intangible assets following major corporate actions.
- Payments and Network Segment
- A sharp increase was observed between 2018 and 2019, with expenses rising from 81 million US dollars to 204 million US dollars. This growth continued at a more tempered rate through 2021, reaching 254 million US dollars.
- Merchant Acceptance Segment
- Expenses for this segment were first recorded in 2019 at 146 million US dollars and increased steadily to 245 million US dollars by the end of 2021, reflecting a consistent expansion of the associated asset base.
- Financial Technology Segment
- The Fintech segment displayed the most stable growth trajectory among all segments, with expenses increasing incrementally from 185 million US dollars in 2018 to 226 million US dollars in 2021.
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