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Related Party Transactions (Tables)
 6 Months Ended 12 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Related Party Transactions [Abstract]    
Transactions with Related Parties

The following table presents the Company’s transactions with related parties for the three and six months ended June 30, 2013 and 2012:

 

     Three months ended June 30,      Six months ended June 30,  
(Dollar amounts in thousands)    2013      2012      2013      2012  

Total revenues (1)(2) 

    $ 42,349       $ 38,606       $ 84,004       $ 75,880   
  

 

 

     

 

 

     

 

 

     

 

 

  

Rent and other fees(3)(4)

    $ 27,212       $ 2,663       $ 30,072       $ 5,822   
  

 

 

     

 

 

     

 

 

     

 

 

  

Interest earned from and charged by affiliate

            

Interest income

    $ 23       $ 59       $ 42       $ 157   
  

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense(5)

    $ 577       $ 1,858       $ 2,471       $ 3,743   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

 

(1) 

Total revenues from Popular as a percentage of revenues were 47%, 45%, 47% and 44% for each of the periods presented above.
(2) 

Includes revenues generated from investee accounted for under the equity method of $0.8 million and $1.7 million for the three and six months ended June 30, 2013, respectively, and $0.9 million and $1.7 million for the corresponding 2012 periods.
(3) 

Includes management fees to equity sponsors amounting to $19.4 million and $20.3 million for the three and six months ended June 30, 2013, respectively, compared to $0.7 million and $2.0 million for the corresponding 2012 periods. Management fees paid during 2013 includes $16.7 million resulting from the termination of the consulting agreements as explained below. Rent and other fees also includes $5.9 million paid to Popular in connection with the redemption premium on the senior notes for the three and six months ended June 30, 2013.
(4)

Includes $4.6 million, $2.7 million, $7.5 million and $5.8 million recorded as selling, general and administrative expenses for each of the periods presented above, and $22.6 million recorded as non-operating expenses for the three and six months ended June 30, 2013 in the unaudited consolidated statement of (loss) income and comprehensive (loss) income.
(5)

Interest expense relates to interest accrued on the senior secured term loan and senior notes held by Popular. As a result of the debt refinancing and the redemption of the senior notes in April 2013, Popular’s participation in such debt was extinguished. See Note 5 for additional information related to the extinguishment of this debt.

The following table presents the Company’s transactions with related parties for each of the period presented below:

 

     Years ended December 31,  
(Dollar amounts in thousands)    2012      2011  

Total revenues(1)(2)

    $ 155,112       $ 149,670   
  

 

 

     

 

 

  

Selling, general and administrative expenses

      

Rent and other fees(3)

    $ 11,319       $ 11,841   
  

 

 

     

 

 

  

Interest earned from and charged by affiliate

      

Interest income

    $ 222       $ 627   
  

 

 

     

 

 

  

Interest expense(4)

    $ 7,476       $ 8,440   
  

 

 

     

 

 

  

Other expenses(5)

    $ —         $ 1,700   
  

 

 

     

 

 

  

 

(1) As discussed below, all services to Popular, its subsidiaries and affiliates are governed by the Master Services Agreement (“MSA”) under which EVERTEC, LLC has a contract to provide such services for at least 15 years on an exclusive basis for the duration of the agreement on commercial terms consistent with historical pricing practices among the parties. Total revenues from Popular represent 44% and 46% of total revenues for each of the periods presented above.
(2) Includes revenues generated from investee accounted for under the equity method (CONTADO) of $3.7 million and $2.5 million for the years ended December 31, 2012 and 2011, respectively.
(3) Includes management fees paid to stockholders amounting to $3.7 million and $3.2 million for the years ended December 31, 2012 and 2011, respectively.
(4) Interest expense for the years ended December 31, 2012 and 2011 is related to interest accrued related to our senior secured term loan and senior notes held by Popular.
(5) On December 31, 2011, EVERTEC, LLC entered into a (“Settlement Agreement”) with Popular in order to settle any claims among the parties related to the Closing Statement or the Working Capital True-Up Amount. In accordance with the Settlement Agreement, we made a payment of $1.7 million to Popular.
Related Party Transactions

At June 30, 2013 and December 31, 2012, EVERTEC had the following balances arising from transactions with related parties:

 

(Dollar amounts in thousands)    June 30, 2013      December 31, 2012  

Cash and restricted cash deposits in affiliated bank

    $ 15,547       $ 19,438   
  

 

 

     

 

 

  

Indemnification assets from Popular reimbursement(1)

      

Accounts receivable

    $ 2,080       $ 2,157   
  

 

 

     

 

 

  

Other long-term assets

    $ 2,460       $ 3,942   
  

 

 

     

 

 

  

Other due/to from affiliate

      

Accounts receivable

    $ 20,342       $ 19,252   
  

 

 

     

 

 

  

Accounts payable(2)

    $ 5,481       $ 3,845   
  

 

 

     

 

 

  

Other long-term liabilities(2)

    $ 520       $ 2,847   
  

 

 

     

 

 

  

Long-term debt

    $ —         $ 90,186   
  

 

 

     

 

 

  

 

 

(1) 

Recorded in connection with reimbursements from Popular regarding certain software license fees.
(2) 

Includes an account payable of $0.2 million and $0.4 million and a long-term liability of $0.5 million and $2.8 million for June 30, 2013 and December 31, 2012, respectively, related to the unvested portion of stock options as a result of the equitable adjustment approved by our Board of Directors on December 18, 2012 that will be payable to executive officers and employees upon vesting of stock options.

At December 31, 2012 and 2011, the Company had the following balances arising from transactions with related parties:

 

     December 31,  
(Dollar amounts in thousands)    2012      2011  

Cash and restricted cash deposits in affiliated bank

    $ 16,924       $ 52,613   
  

 

 

     

 

 

  

Indemnification assets from Popular reimbursement(1)

      

Accounts receivable

    $ 2,157       $ 2,553   
  

 

 

     

 

 

  

Other long-term assets

    $ 3,942       $ 5,212   
  

 

 

     

 

 

  

Liability related to contract with Popular(2)

      

Accounts payable

    $ —         $ 703   
  

 

 

     

 

 

  

Other due to/from affiliates

      

Accounts receivable

    $ 19,587       $ 16,375   
  

 

 

     

 

 

  

Accounts payable

    $ 6,564       $ 3,036   
  

 

 

     

 

 

  

Long-term debt

    $ 90,186       $ 90,186   
  

 

 

     

 

 

  

 

(1) Recorded in connection with (a) reimbursement from Popular regarding services the Company provides to certain customers of Popular at preferential prices and (b) reimbursement from Popular regarding certain software license fees. For the years ended December 31, 2012 and 2011, the Company received $6.1 million and $7.1 million, respectively, related to these reimbursements.
(2) Represents contract liability to provide certain services to a customer of Popular that expired on February 2012.