Supplemental Guarantor Financial Information | Supplemental Guarantor Financial Information
The following supplemental financial information sets forth for FIS and its guarantor and non-guarantor subsidiaries: (a) the condensed consolidating balance sheets as of September 30, 2011 and December 31, 2010; (b) the condensed consolidating statements of earnings for the three months and nine months ended September 30, 2011 and 2010; and (c) the condensed consolidating statements of cash flows for the nine months ended September 30, 2011 and 2010.
| | | | | | | | | | | | | | | | | | | | | | September 30, 2011 | | | | Guarantor | | Non-guarantor | | | | | | FIS | | subsidiaries | | subsidiaries | | Eliminations | | Consolidated | | (in millions) | Assets | | | | | | | | | | Current assets: | | | | | | | | | | Cash and cash equivalents | $ | 56.7 |
| | $ | 139.1 |
| | $ | 191.0 |
| | $ | — |
| | $ | 386.8 |
| Settlement deposits | — |
| | 41.8 |
| | — |
| | — |
| | 41.8 |
| Trade receivables, net | — |
| | 650.0 |
| | 158.3 |
| | — |
| | 808.3 |
| Investment in subsidiaries, intercompany and receivables from related parties | 9,658.3 |
| | 7,816.4 |
| | 1,055.4 |
| | (18,478.3 | ) | | 51.8 |
| Other current assets | (2.2 | ) | | 238.1 |
| | 79.6 |
| | — |
| | 315.5 |
| Total current assets | 9,712.8 |
| | 8,885.4 |
| | 1,484.3 |
| | (18,478.3 | ) | | 1,604.2 |
| Property and equipment, net | 1.5 |
| | 341.9 |
| | 67.3 |
| | — |
| | 410.7 |
| Goodwill | — |
| | 7,413.4 |
| | 1,148.8 |
| | — |
| | 8,562.2 |
| Intangible assets, net | — |
| | 1,521.9 |
| | 457.0 |
| | — |
| | 1,978.9 |
| Computer software, net | 32.3 |
| | 677.2 |
| | 183.6 |
| | — |
| | 893.1 |
| Other noncurrent assets | 85.8 |
| | 211.7 |
| | 138.9 |
| | — |
| | 436.4 |
| Total assets | $ | 9,832.4 |
| | $ | 19,051.5 |
| | $ | 3,479.9 |
| | $ | (18,478.3 | ) | | $ | 13,885.5 |
| Liabilities and Equity | | | | | | | | | | Current liabilities: | | | | | | | | | | Accounts payable and accrued liabilities | $ | 122.4 |
| | $ | 231.4 |
| | $ | 208.0 |
| | $ | — |
| | $ | 561.8 |
| Settlement payables | — |
| | 120.6 |
| | 4.5 |
| | — |
| | 125.1 |
| Current portion of long-term debt | 527.3 |
| | 10.8 |
| | 0.2 |
| | — |
| | 538.3 |
| Deferred revenues | — |
| | 183.7 |
| | 72.9 |
| | — |
| | 256.6 |
| Other current liabilites | — |
| | (0.3 | ) | | 34.8 |
| | (0.4 | ) | | 34.1 |
| Total current liabilities | 649.7 |
| | 546.2 |
| | 320.4 |
| | (0.4 | ) | | 1,515.9 |
| Deferred income taxes | — |
| | 832.6 |
| | 12.8 |
| | — |
| | 845.4 |
| Long-term debt, excluding current portion | 4,311.8 |
| | 15.8 |
| | 0.1 |
| | — |
| | 4,327.7 |
| Other long-term liabilities | 20.0 |
| | 113.5 |
| | 312.1 |
| | — |
| | 445.6 |
| Total liabilities | 4,981.5 |
| | 1,508.1 |
| | 645.4 |
| | (0.4 | ) | | 7,134.6 |
| Total equity | 4,850.9 |
| | 17,543.4 |
| | 2,834.5 |
| | (18,477.9 | ) | | 6,750.9 |
| Total liabilities and equity | $ | 9,832.4 |
| | $ | 19,051.5 |
| | $ | 3,479.9 |
| | $ | (18,478.3 | ) | | $ | 13,885.5 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2010 | | | | Guarantor | | Non-guarantor | | | | | | FIS | | subsidiaries | | subsidiaries | | Eliminations | | Consolidated | | (in millions) | Assets | | | | | | | | | | Current assets: | | | | | | | | | | Cash and cash equivalents | $ | 7.7 |
| | $ | 161.6 |
| | $ | 168.7 |
| | $ | — |
| | $ | 338.0 |
| Settlement deposits | — |
| | 35.9 |
| | — |
| | — |
| | 35.9 |
| Trade receivables, net | — |
| | 648.0 |
| | 191.4 |
| | — |
| | 839.4 |
| Investment in subsidiaries, intercompany and receivables from related parties | 9,851.1 |
| | 7,183.6 |
| | 1,037.7 |
| | (18,022.2 | ) | | 50.2 |
| Other current assets | 46.1 |
| | 310.0 |
| | 86.3 |
| | (32.9 | ) | | 409.5 |
| Total current assets | 9,904.9 |
| | 8,339.1 |
| | 1,484.1 |
| | (18,055.1 | ) | | 1,673.0 |
| Property and equipment, net | 1.7 |
| | 323.8 |
| | 64.5 |
| | — |
| | 390.0 |
| Goodwill | — |
| | 7,407.0 |
| | 1,143.0 |
| | — |
| | 8,550.0 |
| Intangible assets, net | — |
| | 1,694.9 |
| | 508.0 |
| | — |
| | 2,202.9 |
| Computer software, net | 30.4 |
| | 667.8 |
| | 210.8 |
| | — |
| | 909.0 |
| Other noncurrent assets | 99.4 |
| | 173.5 |
| | 178.5 |
| | — |
| | 451.4 |
| Total assets | $ | 10,036.4 |
| | $ | 18,606.1 |
| | $ | 3,588.9 |
| | $ | (18,055.1 | ) | | $ | 14,176.3 |
| Liabilities and Equity | | | | | | | | | | Current liabilities: | | | | | | | | | | Accounts payable and accrued liabilities | $ | 175.4 |
| | $ | 218.4 |
| | $ | 231.7 |
| | $ | (33.7 | ) | | $ | 591.8 |
| Settlement payables | — |
| | 136.3 |
| | 4.3 |
| | — |
| | 140.6 |
| Current portion of long-term debt | 233.2 |
| | 0.3 |
| | 23.4 |
| | — |
| | 256.9 |
| Deferred revenues | — |
| | 186.8 |
| | 81.8 |
| | — |
| | 268.6 |
| Other current liabilites | — |
| | — |
| | 42.5 |
| | — |
| | 42.5 |
| Total current liabilities | 408.6 |
| | 541.8 |
| | 383.7 |
| | (33.7 | ) | | 1,300.4 |
| Deferred income taxes | — |
| | 830.0 |
| | 29.3 |
| | — |
| | 859.3 |
| Long-term debt, excluding current portion | 4,934.0 |
| | 1.0 |
| | 0.2 |
| | — |
| | 4,935.2 |
| Other long-term liabilities | 32.4 |
| | 171.2 |
| | 316.2 |
| | — |
| | 519.8 |
| Total liabilities | 5,375.0 |
| | 1,544.0 |
| | 729.4 |
| | (33.7 | ) | | 7,614.7 |
| Total equity | 4,661.4 |
| | 17,062.1 |
| | 2,859.5 |
| | (18,021.4 | ) | | 6,561.6 |
| Total liabilities and equity | $ | 10,036.4 |
| | $ | 18,606.1 |
| | $ | 3,588.9 |
| | $ | (18,055.1 | ) | | $ | 14,176.3 |
|
| | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, 2011 | | | | Guarantor | | Non-guarantor | | | | | | FIS | | subsidiaries | | subsidiaries | | Eliminations | | Consolidated | | (in millions) | Processing and services revenues | $ | — |
| | $ | 1,117.6 |
| | $ | 308.6 |
| | $ | — |
| | $ | 1,426.2 |
| Operating expenses | 42.0 |
| | 834.0 |
| | 273.8 |
| | — |
| | 1,149.8 |
| Operating income | (42.0 | ) | | 283.6 |
| | 34.8 |
| | — |
| | 276.4 |
| Other income (expense): | | | | | | | | | | Interest expense, net | (57.6 | ) | | (0.6 | ) | | (2.3 | ) | | — |
| | (60.5 | ) | Other income (expense) | (0.1 | ) | | 1.4 |
| | (2.0 | ) | | — |
| | (0.7 | ) | Net earnings (loss) of equity affiliates | 217.3 |
| | — |
| | — |
| | (217.3 | ) | | — |
| Total other income (expense) | 159.6 |
| | 0.8 |
| | (4.3 | ) | | (217.3 | ) | | (61.2 | ) | Earnings (loss) from continuing operations before income taxes | 117.6 |
| | 284.4 |
| | 30.5 |
| | (217.3 | ) | | 215.2 |
| Provision for income taxes | (31.7 | ) | | 90.4 |
| | 7.2 |
| | — |
| | 65.9 |
| Net earnings (loss) from continuing operations | 149.3 |
| | 194.0 |
| | 23.3 |
| | (217.3 | ) | | 149.3 |
| Earnings (loss) from discontinued operations, net of tax | (9.1 | ) | | — |
| | (9.1 | ) | | 9.1 |
| | (9.1 | ) | Net earnings (loss) | 140.2 |
| | 194.0 |
| | 14.2 |
| | (208.2 | ) | | 140.2 |
| Net (earnings) loss attributable to noncontrolling interest | (3.9 | ) | | 0.2 |
| | (4.1 | ) | | 3.9 |
| | (3.9 | ) | Net earnings (loss) attributable to FIS common stockholders | $ | 136.3 |
| | $ | 194.2 |
| | $ | 10.1 |
| | $ | (204.3 | ) | | $ | 136.3 |
|
| | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, 2010 | | | | Guarantor | | Non-guarantor | | | | | | FIS | | subsidiaries | | subsidiaries | | Eliminations | | Consolidated | | (in millions) | Processing and services revenues | $ | 83.3 |
| | $ | 1,083.1 |
| | $ | 207.1 |
| | $ | (6.3 | ) | | $ | 1,367.2 |
| Operating expenses | 59.2 |
| | 804.1 |
| | 334.1 |
| | (6.3 | ) | | 1,191.1 |
| Operating income | 24.1 |
| | 279.0 |
| | (127.0 | ) | | — |
| | 176.1 |
| Other income (expense): | | | | | | | | | | Interest expense, net | (59.7 | ) | | 0.2 |
| | (1.4 | ) | | — |
| | (60.9 | ) | Other income (expense) | 19.1 |
| | (3.7 | ) | | 2.5 |
| | — |
| | 17.9 |
| Net earnings (loss) of equity affiliates | 101.6 |
| | — |
| | — |
| | (101.6 | ) | | — |
| Total other income (expense) | 61.0 |
| | (3.5 | ) | | 1.1 |
| | (101.6 | ) | | (43.0 | ) | Earnings (loss) from continuing operations before income taxes | 85.1 |
| | 275.5 |
| | (125.9 | ) | | (101.6 | ) | | 133.1 |
| Provision for income taxes | 0.2 |
| | 104.2 |
| | (56.2 | ) | | — |
| | 48.2 |
| Net earnings (loss) from continuing operations | 84.9 |
| | 171.3 |
| | (69.7 | ) | | (101.6 | ) | | 84.9 |
| Earnings (loss) from discontinued operations, net of tax | (23.9 | ) | | — |
| | (23.9 | ) | | 23.9 |
| | (23.9 | ) | Net earnings (loss) | 61.0 |
| | 171.3 |
| | (93.6 | ) | | (77.7 | ) | | 61.0 |
| Net (earnings) loss attributable to noncontrolling interest | 49.4 |
| | 0.3 |
| | 49.1 |
| | (49.4 | ) | | 49.4 |
| Net earnings (loss) attributable to FIS common stockholders | $ | 110.4 |
| | $ | 171.6 |
| | $ | (44.5 | ) | | $ | (127.1 | ) | | $ | 110.4 |
|
| | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2011 | | | | Guarantor | | Non-guarantor | | | | | | FIS | | subsidiaries | | subsidiaries | | Eliminations | | Consolidated | | (in millions) | Processing and services revenues | $ | — |
| | $ | 3,319.4 |
| | $ | 931.9 |
| | $ | — |
| | $ | 4,251.3 |
| Operating expenses | 122.3 |
| | 2,517.5 |
| | 862.3 |
| | — |
| | 3,502.1 |
| Operating income | (122.3 | ) | | 801.9 |
| | 69.6 |
| | — |
| | 749.2 |
| Other income (expense): | | | | | | | | | | Interest expense, net | (183.1 | ) | | (0.7 | ) | | (10.5 | ) | | — |
| | (194.3 | ) | Other income (expense) | — |
| | — |
| | 2.4 |
| | — |
| | 2.4 |
| Net earnings (loss) of equity affiliates | 575.6 |
| | — |
| | — |
| | (575.6 | ) | | — |
| Total other income (expense) | 392.5 |
| | (0.7 | ) | | (8.1 | ) | | (575.6 | ) | | (191.9 | ) | Earnings (loss) from continuing operations before income taxes | 270.2 |
| | 801.2 |
| | 61.5 |
| | (575.6 | ) | | 557.3 |
| Provision for income taxes | (107.1 | ) | | 275.7 |
| | 11.4 |
| | — |
| | 180.0 |
| Net earnings (loss) from continuing operations | 377.3 |
| | 525.5 |
| | 50.1 |
| | (575.6 | ) | | 377.3 |
| Earnings (loss) from discontinued operations, net of tax | (18.2 | ) | | — |
| | (18.2 | ) | | 18.2 |
| | (18.2 | ) | Net earnings (loss) | 359.1 |
| | 525.5 |
| | 31.9 |
| | (557.4 | ) | | 359.1 |
| Net (earnings) loss attributable to noncontrolling interest | (6.5 | ) | | 0.6 |
| | (7.1 | ) | | 6.5 |
| | (6.5 | ) | Net earnings (loss) attributable to FIS common stockholders | $ | 352.6 |
| | $ | 526.1 |
| | $ | 24.8 |
| | $ | (550.9 | ) | | $ | 352.6 |
|
| | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2010 | | | | Guarantor | | Non-guarantor | | | | | | FIS | | subsidiaries | | subsidiaries | | Eliminations | | Consolidated | | (in millions) | Processing and services revenues | $ | 83.3 |
| | $ | 3,224.1 |
| | $ | 605.9 |
| | $ | (40.1 | ) | | $ | 3,873.2 |
| Operating expenses | 215.2 |
| | 2,473.0 |
| | 677.5 |
| | (40.1 | ) | | 3,325.6 |
| Operating income | (131.9 | ) | | 751.1 |
| | (71.6 | ) | | — |
| | 547.6 |
| Other income (expense): | | | | | | | | | | Interest expense, net | (104.0 | ) | | (2.8 | ) | | (1.6 | ) | | — |
| | (108.4 | ) | Other income (expense) | 9.7 |
| | (12.4 | ) | | 2.7 |
| | — |
| | — |
| Net earnings (loss) of equity affiliates | 423.8 |
| | — |
| | — |
| | (423.8 | ) | | — |
| Total other income (expense) | 329.5 |
| | (15.2 | ) | | 1.1 |
| | (423.8 | ) | | (108.4 | ) | Earnings (loss) from continuing operations before income taxes | 197.6 |
| | 735.9 |
| | (70.5 | ) | | (423.8 | ) | | 439.2 |
| Provision for income taxes | (80.4 | ) | | 281.5 |
| | (39.9 | ) | | — |
| | 161.2 |
| Net earnings (loss) from continuing operations | 278.0 |
| | 454.4 |
| | (30.6 | ) | | (423.8 | ) | | 278.0 |
| Earnings (loss) from discontinued operations, net of tax | (32.4 | ) | | — |
| | (32.4 | ) | | 32.4 |
| | (32.4 | ) | Net earnings (loss) | 245.6 |
| | 454.4 |
| | (63.0 | ) | | (391.4 | ) | | 245.6 |
| Net (earnings) loss attributable to noncontrolling interest | 48.3 |
| | 1.1 |
| | 47.2 |
| | (48.3 | ) | | 48.3 |
| Net earnings (loss) attributable to FIS common stockholders | $ | 293.9 |
| | $ | 455.5 |
| | $ | (15.8 | ) | | $ | (439.7 | ) | | $ | 293.9 |
|
| | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2011 | | | | Guarantor | | Non-guarantor | | | | | | FIS | | subsidiaries | | subsidiaries | | Eliminations | | Consolidated | | (in millions) | Cash flows from operating activities | $ | (192.5 | ) | | $ | 845.0 |
| | $ | 143.8 |
| | $ | 2.8 |
| | $ | 799.1 |
| Cash flows from investing activities | (10.4 | ) | | (173.7 | ) | | (44.5 | ) | | — |
| | (228.6 | ) | Cash flows from financing activities | 251.9 |
| | (693.8 | ) | | (68.7 | ) | | (2.8 | ) | | (513.4 | ) | Effect of foreign currency exchange rates on cash | — |
| | — |
| | (8.3 | ) | | — |
| | (8.3 | ) | Net increase (decrease) in cash | $ | 49.0 |
| | $ | (22.5 | ) | | $ | 22.3 |
| | $ | — |
| | $ | 48.8 |
|
| | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2010 | | | | Guarantor | | Non-guarantor | | | | | | FIS | | subsidiaries | | subsidiaries | | Eliminations | | Consolidated | | (in millions) | Cash flows from operating activities | $ | (120.8 | ) | | $ | 745.2 |
| | $ | 111.9 |
| | $ | 49.6 |
| | $ | 785.9 |
| Cash flows from investing activities | (16.7 | ) | | (223.2 | ) | | 19.0 |
| | — |
| | (220.9 | ) | Cash flows from financing activities | 139.1 |
| | (615.6 | ) | | (78.3 | ) | | (49.6 | ) | | (604.4 | ) | Effect of foreign currency exchange rates on cash | — |
| | — |
| | (2.1 | ) | | — |
| | (2.1 | ) | Net increase (decrease) in cash | $ | 1.6 |
| | $ | (93.6 | ) | | $ | 50.5 |
| | $ | — |
| | $ | (41.5 | ) |
|