Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2013

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


	Years ended December 31,
(Dollar amounts in thousands)	2013		2012		2011
Total revenues ⁽¹⁾⁽²⁾	$	166,770	$	155,112	$	149,670

Cost of revenues	$	8,290	$	426	$	205

Rent and other fees ⁽³⁾⁽⁴⁾	$	27,762	$	11,319	$	11,841

Interest earned from and charged by affiliate
Interest income	$	130	$	222	$	627

Interest expense ⁽⁵⁾	$	2,471	$	7,476	$	8,440

Other expenses ⁽⁶⁾	$	—	$	—	$	1,700

⁽¹⁾	Total revenues from Popular as a percentage of revenues were 46%, 44% and 46% for each of the periods presented above.

⁽²⁾	Includes revenues generated from investee accounted for under the equity method of $3.0 million, $3.7 million and $2.5 million for the years ended December 31, 2013, 2012 and 2011, respectively.

⁽³⁾

Includes management fees to equity sponsors amounting to $3.5 million, $3.7 million and $3.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. Management fees paid during 2013 also includes $16.7 million resulting from the termination of the consulting agreements as explained below. Rent and other fees also include $5.9 million paid in connection with the redemption premium on the senior notes during the first half of 2013.

⁽⁴⁾

Includes $11.1 million, $11.3 million and $11.8 million recorded as selling, general and administrative expenses for each of the periods presented above, and $16.7 million recorded as non-operating expenses for the year ended December 31, 2013 in the audited 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 11 for additional information related to the extinguishment of this debt.

⁽⁶⁾

On December 31, 2011, EVERTEC Group 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, EVERTEC made a payment of $1.7 million to Popular.

Summary of Balances of Transactions with Related Parties

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


	December 31,
(Dollar amounts in thousands)	2013		2012
Cash and restricted cash deposits in affiliated bank	$	13,933	$	19,438

Indemnification assets from Popular reimbursement ⁽¹⁾
Accounts receivable	$	1,900	$	2,157

Other long-term assets	$	1,686	$	3,942

Other due/to from affiliate
Accounts receivable	$	18,799	$	19,252

Prepaid expenses and other assets	$	216	$	—

Accounts payable⁽²⁾	$	8,886	$	3,845

Unearned income	$	4,100	$	—

Other long-term liabilities⁽²⁾	$	333	$	2,847

Long-term debt	$	—	$	90,186

⁽¹⁾	Recorded in connection with reimbursement 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 $0.3 million and $2.8 million for December 31, 2013 and 2012, respectively, related to the unvested portion of stock options as a result of the equitable adjustment approved by the Company’s Board of Directors on December 18, 2012 that will be payable to executive officers and employees upon vesting of stock options.