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Related Party Transactions (Tables)
 9 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]  
Transactions with Related Parties

The following table presents the Company’s transactions with related parties for the three and nine months ended September 30, 2014 and 2013:

 

     Three months ended September 30,      Nine months ended September 30,  
(Dollar amounts in thousands)    2014      2013      2014      2013  

Total revenues (1)(2)

    $ 40,958       $ 40,920       $ 123,128       $ 125,087   
  

 

 

     

 

 

     

 

 

     

 

 

  

Cost of revenues

    $ 68       $ 1,570       $ 687       $ 6,680   
  

 

 

     

 

 

     

 

 

     

 

 

  

Rent and other fees(3)(4)

    $ 1,999       $ 1,636       $ 6,000       $ 31,708   
  

 

 

     

 

 

     

 

 

     

 

 

  

Interest earned from and charged by affiliate

            

Interest income

    $ 48       $ 25       $ 150       $ 67   
  

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense(5)

    $ —         $ —         $ —         $ 2,471   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1)  Total revenues from Popular as a percentage of revenues were 46%, 46%, 45% and 47% for each of the periods presented above.
(2)  Includes revenues generated from investee accounted for under the equity method of $0.6 million and $2.0 million for the three and nine months ended September 30, 2014, respectively, and $0.6 million and $2.3 million for the corresponding 2013 periods.
(3)  Includes management fees to equity sponsors amounting to $20.3 million for the nine months ended September 30, 2013. Management fees paid during 2013 include $16.7 million resulting from the termination of the Consulting Agreements as explained below. It also includes $5.9 million paid to Popular in connection with the redemption premium on the senior notes during the first half of 2013.
(4)  For the periods presented above, $2.0 million, $1.6 million, $6.0 million and $9.1 million were recorded as selling, general and administrative expenses, and $22.6 million was recorded as non-operating expenses for the nine months ended September 30, 2013.
(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.
Summary of Balances of Transactions with Related Parties

At September 30, 2014 and December 31, 2013, EVERTEC had the following balances arising from transactions with related parties:

 

(Dollar amounts in thousands)    September 30, 2014      December 31, 2013  

Cash and restricted cash deposits in affiliated bank

    $ 18,827       $ 13,933   
  

 

 

     

 

 

  

Indemnification assets from Popular reimbursement (1)

      

Accounts receivable

    $ 1,632       $ 1,900   
  

 

 

     

 

 

  

Other long-term assets

    $ —         $ 1,686   
  

 

 

     

 

 

  

Other due/to from affiliate

      

Accounts receivable

    $ 17,717       $ 18,799   
  

 

 

     

 

 

  

Prepaid expenses and other assets

    $ 1,147       $ 216   
  

 

 

     

 

 

  

Accounts payable(2)

    $ 5,907       $ 8,886   
  

 

 

     

 

 

  

Unearned income

    $ 7,485       $ 4,100   
  

 

 

     

 

 

  

Other long-term liabilities(2)

    $ 109       $ 333   
  

 

 

     

 

 

  

 

(1)  Recorded in connection with reimbursements from Popular regarding certain software license fees.
(2)  Includes an account payable of $0.2 million and a long-term liability of $0.3 million for both September 30, 2014 and December 31, 2013, 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.