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Condensed Consolidating Guarantor Financial Information
9 Months Ended
Sep. 30, 2015
Condensed Consolidating Guarantor Financial Information [Abstract]  
Condensed Consolidating Guarantor Financial Information
Condensed Consolidating Guarantor Financial Information

In October 2013, Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (the "Subsidiary Issuers"), entities formed in August 2013 which are 100 percent owned by the Parent, issued $1.5 billion of 5.625% senior notes due in 2021 (the "Senior Notes"). The obligations of the Subsidiary Issuers are guaranteed jointly and severally on a senior unsecured basis by the Parent and certain of the Parent's 100 percent owned domestic restricted subsidiaries (the "Guarantors"). The indenture that governs the Senior Notes provides that any subsidiary of the Company that provides a guarantee of a senior secured credit facility consisting of the Revolving Credit Facility and the Term Loans (the "Senior Secured Credit Facility") will guarantee the Senior Notes. None of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations; our non-wholly owned subsidiaries; our subsidiaries that secure the CMBS Loan and $544 million in mortgage loans; or certain of our special purpose subsidiaries formed in connection with our Timeshare Facility and Securitized Timeshare Debt guarantee the Senior Notes (collectively, the "Non-Guarantors").

The guarantees are full and unconditional, subject to certain customary release provisions. The indenture that governs the Senior Notes provides that any Guarantor may be released from its guarantee so long as: (a) the subsidiary is sold or sells all of its assets; (b) the subsidiary is released from its guaranty under the Senior Secured Credit Facility; (c) the subsidiary is declared "unrestricted" for covenant purposes; or (d) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied.

The following schedules present the condensed consolidating financial information as of September 30, 2015 and December 31, 2014, and for the three and nine months ended September 30, 2015 and 2014, for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors.


 
September 30, 2015
Parent
 
Subsidiary Issuers
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Total
 
(in millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
270

 
$
358

 
$

 
$
628

Restricted cash and cash equivalents

 

 
145

 
131

 

 
276

Accounts receivable, net

 

 
523

 
406

 

 
929

Intercompany receivables

 

 
27

 

 
(27
)
 

Inventories

 

 
407

 
23

 

 
430

Deferred income tax assets

 

 
9

 
11

 

 
20

Current portion of financing receivables, net

 

 
48

 
20

 

 
68

Current portion of securitized financing receivables, net

 

 

 
56

 

 
56

Prepaid expenses

 

 
68

 
117

 
(3
)
 
182

Income taxes receivable

 

 
21

 

 
(2
)
 
19

Other

 

 
7

 
31

 

 
38

Total current assets

 

 
1,525

 
1,153

 
(32
)
 
2,646

Property, Intangibles and Other Assets:
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net

 

 
292

 
8,840

 

 
9,132

Financing receivables, net

 

 
399

 
145

 

 
544

Securitized financing receivables, net

 

 

 
321

 

 
321

Investments in affiliates

 

 
113

 
41

 

 
154

Investments in subsidiaries
5,394

 
11,202

 
4,849

 

 
(21,445
)
 

Goodwill

 

 
3,851

 
2,051

 

 
5,902

Brands

 

 
4,405

 
524

 

 
4,929

Management and franchise contracts, net

 

 
904

 
272

 

 
1,176

Other intangible assets, net

 

 
410

 
193

 

 
603

Deferred income tax assets
24

 
7

 

 
157

 
(31
)
 
157

Other

 
74

 
151

 
143

 

 
368

Total property, intangibles and other assets
5,418

 
11,283

 
15,374

 
12,687

 
(21,476
)
 
23,286

 
 
 
 
 
 
 
 
 
 
 
 
TOTAL ASSETS
$
5,418

 
$
11,283

 
$
16,899

 
$
13,840

 
$
(21,508
)
 
$
25,932

 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other
$

 
$
60

 
$
1,484

 
$
720

 
$
(3
)
 
$
2,261

Intercompany payables

 

 

 
27

 
(27
)
 

Current maturities of long-term debt

 

 

 
116

 

 
116

Current maturities of non-recourse debt

 

 

 
132

 

 
132

Income taxes payable

 

 

 
51

 
(2
)
 
49

Total current liabilities

 
60

 
1,484

 
1,046

 
(32
)
 
2,558

Long-term debt

 
5,807

 
54

 
4,084

 

 
9,945

Non-recourse debt

 

 

 
623

 

 
623

Deferred revenues

 

 
340

 
1

 

 
341

Deferred income tax liabilities

 

 
2,301

 
3,023

 
(31
)
 
5,293

Liability for guest loyalty program

 

 
754

 

 

 
754

Other
204

 
22

 
764

 
248

 

 
1,238

Total liabilities
204

 
5,889

 
5,697

 
9,025

 
(63
)
 
20,752

 
 
 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
Total Hilton stockholders' equity
5,214

 
5,394

 
11,202

 
4,849

 
(21,445
)
 
5,214

Noncontrolling interests

 

 

 
(34
)
 

 
(34
)
Total equity
5,214

 
5,394

 
11,202

 
4,815

 
(21,445
)
 
5,180

 
 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
$
5,418

 
$
11,283

 
$
16,899

 
$
13,840

 
$
(21,508
)
 
$
25,932


 
December 31, 2014
Parent
 
Subsidiary Issuers
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Total
 
(in millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
270

 
$
296

 
$

 
$
566

Restricted cash and cash equivalents

 

 
135

 
67

 

 
202

Accounts receivable, net

 

 
478

 
366

 

 
844

Intercompany receivables

 

 
46

 

 
(46
)
 

Inventories

 

 
380

 
24

 

 
404

Deferred income tax assets

 

 
10

 
10

 

 
20

Current portion of financing receivables, net

 

 
47

 
19

 

 
66

Current portion of securitized financing receivables, net

 

 

 
62

 

 
62

Prepaid expenses

 

 
29

 
124

 
(20
)
 
133

Income taxes receivable

 

 
154

 

 
(22
)
 
132

Other

 

 
5

 
65

 

 
70

Total current assets

 

 
1,554

 
1,033

 
(88
)
 
2,499

Property, Intangibles and Other Assets:
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net

 

 
305

 
7,178

 

 
7,483

Property and equipment, net held for sale

 

 

 
1,543

 

 
1,543

Financing receivables, net

 

 
272

 
144

 

 
416

Securitized financing receivables, net

 

 

 
406

 

 
406

Investments in affiliates

 

 
123

 
47

 

 
170

Investments in subsidiaries
4,924

 
11,361

 
4,935

 

 
(21,220
)
 

Goodwill

 

 
3,847

 
2,307

 

 
6,154

Brands

 

 
4,405

 
558

 

 
4,963

Management and franchise contracts, net

 

 
1,007

 
299

 

 
1,306

Other intangible assets, net

 

 
466

 
208

 

 
674

Deferred income tax assets
22

 
1

 

 
155

 
(23
)
 
155

Other

 
85

 
119

 
152

 

 
356

Total property, intangibles and other assets
4,946

 
11,447

 
15,479

 
12,997

 
(21,243
)
 
23,626

 
 
 
 
 
 
 
 
 
 
 
 
TOTAL ASSETS
$
4,946

 
$
11,447

 
$
17,033

 
$
14,030

 
$
(21,331
)
 
$
26,125

 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other
$

 
$
40

 
$
1,384

 
$
695

 
$
(20
)
 
$
2,099

Intercompany payables

 

 

 
46

 
(46
)
 

Current maturities of long-term debt

 

 

 
10

 

 
10

Current maturities of non-recourse debt

 

 

 
127

 

 
127

Income taxes payable

 

 
5

 
38

 
(22
)
 
21

Total current liabilities

 
40

 
1,389

 
916

 
(88
)
 
2,257

Long-term debt

 
6,479

 
54

 
4,270

 

 
10,803

Non-recourse debt

 

 

 
752

 

 
752

Deferred revenues

 

 
493

 
2

 

 
495

Deferred income tax liabilities

 

 
2,306

 
2,933

 
(23
)
 
5,216

Liability for guest loyalty program

 

 
720

 

 

 
720

Other
194

 
4

 
710

 
260

 

 
1,168

Total liabilities
194

 
6,523

 
5,672

 
9,133

 
(111
)
 
21,411

 
 
 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
Total Hilton stockholders' equity
4,752

 
4,924

 
11,361

 
4,935

 
(21,220
)
 
4,752

Noncontrolling interests

 

 

 
(38
)
 

 
(38
)
Total equity
4,752

 
4,924

 
11,361

 
4,897

 
(21,220
)
 
4,714

 
 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
$
4,946

 
$
11,447

 
$
17,033

 
$
14,030

 
$
(21,331
)
 
$
26,125





 
Three Months Ended September 30, 2015
 
Parent
 
Subsidiary Issuers
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Total
 
(in millions)
Revenues
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
$

 
$

 
$
64

 
$
1,025

 
$
(7
)
 
$
1,082

Management and franchise fees and other

 

 
355

 
86

 
(25
)
 
416

Timeshare

 

 
314

 
20

 

 
334

 

 

 
733

 
1,131

 
(32
)
 
1,832

Other revenues from managed and franchised properties

 

 
1,199

 
116

 
(252
)
 
1,063

Total revenues

 

 
1,932

 
1,247

 
(284
)
 
2,895

 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels

 

 
46

 
773

 
(21
)
 
798

Timeshare

 

 
221

 
4

 
(6
)
 
219

Depreciation and amortization

 

 
82

 
89

 

 
171

General, administrative and other

 

 
117

 
33

 
(5
)
 
145

 

 

 
466

 
899

 
(32
)
 
1,333

Other expenses from managed and franchised properties

 

 
1,199

 
116

 
(252
)
 
1,063

Total expenses

 

 
1,665

 
1,015

 
(284
)
 
2,396

 
 
 
 
 
 
 
 
 
 
 
 
Gain on sales of assets, net

 

 

 
164

 

 
164

 
 
 
 
 
 
 
 
 
 
 
 
Operating income

 

 
267

 
396

 

 
663

 
 
 
 
 
 
 
 
 
 
 
 
Interest income

 

 
2

 
1

 

 
3

Interest expense

 
(69
)
 
(9
)
 
(60
)
 

 
(138
)
Equity in earnings from unconsolidated affiliates

 

 
7

 
2

 

 
9

Gain (loss) on foreign currency transactions

 

 
213

 
(221
)
 

 
(8
)
Other gain, net

 

 

 
1

 

 
1

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and equity in earnings from subsidiaries

 
(69
)
 
480

 
119

 

 
530

 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit (expense)
(1
)
 
27

 
(200
)
 
(73
)
 

 
(247
)
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before equity in earnings from subsidiaries
(1
)
 
(42
)
 
280

 
46

 

 
283

 
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings from subsidiaries
280

 
322

 
42

 

 
(644
)
 

 
 
 
 
 
 
 
 
 
 
 
 
Net income
279

 
280

 
322

 
46

 
(644
)
 
283

Net income attributable to noncontrolling interests

 

 

 
(4
)
 

 
(4
)
Net income attributable to Hilton stockholders
$
279

 
$
280

 
$
322

 
$
42

 
$
(644
)
 
$
279

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
159

 
$
274

 
$
301

 
$
(47
)
 
$
(524
)
 
$
163

Comprehensive income attributable to noncontrolling interests

 

 

 
(4
)
 

 
(4
)
Comprehensive income attributable to Hilton stockholders
$
159

 
$
274

 
$
301

 
$
(51
)
 
$
(524
)
 
$
159

 
Three Months Ended September 30, 2014
 
Parent
 
Subsidiary Issuers
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Total
 
(in millions)
Revenues
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
$

 
$

 
$
60

 
$
1,026

 
$
(7
)
 
$
1,079

Management and franchise fees and other

 

 
299

 
84

 
(19
)
 
364

Timeshare

 

 
271

 
24

 

 
295

 

 

 
630

 
1,134

 
(26
)
 
1,738

Other revenues from managed and franchised properties

 

 
1,019

 
107

 
(220
)
 
906

Total revenues

 

 
1,649

 
1,241

 
(246
)
 
2,644

 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels

 

 
41

 
793

 
(18
)
 
816

Timeshare

 

 
200

 
5

 
(6
)
 
199

Depreciation and amortization

 

 
78

 
81

 

 
159

General, administrative and other

 

 
94

 
27

 
(2
)
 
119

 

 

 
413

 
906

 
(26
)
 
1,293

Other expenses from managed and franchised properties

 

 
1,019

 
107

 
(220
)
 
906

Total expenses

 

 
1,432

 
1,013

 
(246
)
 
2,199

 
 
 
 
 
 
 
 
 
 
 
 
Operating income

 

 
217

 
228

 

 
445

 
 
 
 
 
 
 
 
 
 
 
 
Interest income

 

 
2

 

 

 
2

Interest expense

 
(83
)
 
(15
)
 
(58
)
 

 
(156
)
Equity in earnings from unconsolidated affiliates

 

 
3

 
1

 

 
4

Gain (loss) on foreign currency transactions

 

 
205

 
(210
)
 

 
(5
)
Other gain, net

 

 

 
24

 

 
24

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and equity in earnings from subsidiaries

 
(83
)
 
412

 
(15
)
 

 
314

 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit (expense)
(1
)
 
32

 
(160
)
 
2

 

 
(127
)
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before equity in earnings from subsidiaries
(1
)
 
(51
)
 
252

 
(13
)
 

 
187

 
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings from subsidiaries
184

 
235

 
(17
)
 

 
(402
)
 

 
 
 
 
 
 
 
 
 
 
 
 
Net income
183

 
184

 
235

 
(13
)
 
(402
)
 
187

Net income attributable to noncontrolling interests

 

 

 
(4
)
 

 
(4
)
Net income attributable to Hilton stockholders
$
183

 
$
184

 
$
235

 
$
(17
)
 
$
(402
)
 
$
183

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
(29
)
 
$
189

 
$
282

 
$
(273
)
 
$
(190
)
 
$
(21
)
Comprehensive income attributable to noncontrolling interests

 

 

 
(8
)
 

 
(8
)
Comprehensive income attributable to Hilton stockholders
$
(29
)
 
$
189

 
$
282

 
$
(281
)
 
$
(190
)
 
$
(29
)
 
Nine Months Ended September 30, 2015
 
Parent
 
Subsidiary Issuers
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Total
 
(in millions)
Revenues
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
$

 
$

 
$
177

 
$
3,016

 
$
(19
)
 
$
3,174

Management and franchise fees and other

 

 
1,026

 
243

 
(75
)
 
1,194

Timeshare

 

 
911

 
63

 

 
974

 

 

 
2,114

 
3,322

 
(94
)
 
5,342

Other revenues from managed and franchised properties

 

 
3,449

 
345

 
(720
)
 
3,074

Total revenues

 

 
5,563

 
3,667

 
(814
)
 
8,416

 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels

 

 
128

 
2,321

 
(66
)
 
2,383

Timeshare

 

 
678

 
12

 
(17
)
 
673

Depreciation and amortization

 

 
255

 
264

 

 
519

General, administrative and other

 

 
405

 
99

 
(11
)
 
493

 

 

 
1,466

 
2,696

 
(94
)
 
4,068

Other expenses from managed and franchised properties

 

 
3,449

 
345

 
(720
)
 
3,074

Total expenses

 

 
4,915

 
3,041

 
(814
)
 
7,142

 
 
 
 
 
 
 
 
 
 
 
 
Gain on sales of assets, net

 

 

 
306

 

 
306

 
 
 
 
 
 
 
 
 
 
 
 
Operating income

 

 
648

 
932

 

 
1,580

 
 
 
 
 
 
 
 
 
 
 
 
Interest income

 

 
9

 
2

 

 
11

Interest expense

 
(213
)
 
(37
)
 
(181
)
 

 
(431
)
Equity in earnings from unconsolidated affiliates

 

 
18

 
4

 

 
22

Gain (loss) on foreign currency transactions

 

 
73

 
(94
)
 

 
(21
)
Other loss, net

 

 

 
(6
)
 

 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and equity in earnings from subsidiaries

 
(213
)
 
711

 
657

 

 
1,155

 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit (expense)
(6
)
 
82

 
(299
)
 
(332
)
 

 
(555
)
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before equity in earnings from subsidiaries
(6
)
 
(131
)
 
412

 
325

 

 
600

 
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings from subsidiaries
596

 
727

 
315

 

 
(1,638
)
 

 
 
 
 
 
 
 
 
 
 
 
 
Net income
590

 
596

 
727

 
325

 
(1,638
)
 
600

Net income attributable to noncontrolling interests

 

 

 
(10
)
 

 
(10
)
Net income attributable to Hilton stockholders
$
590

 
$
596

 
$
727

 
$
315

 
$
(1,638
)
 
$
590

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
425

 
$
585

 
$
709

 
$
189

 
$
(1,473
)
 
$
435

Comprehensive income attributable to noncontrolling interests

 

 

 
(10
)
 

 
(10
)
Comprehensive income attributable to Hilton stockholders
$
425

 
$
585

 
$
709

 
$
179

 
$
(1,473
)
 
$
425


 
Nine Months Ended September 30, 2014
 
Parent
 
Subsidiary Issuers
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Total
 
(in millions)
Revenues
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
$

 
$

 
$
163

 
$
2,999

 
$
(21
)
 
$
3,141

Management and franchise fees and other

 

 
873

 
239

 
(82
)
 
1,030

Timeshare

 

 
777

 
73

 

 
850

 

 

 
1,813

 
3,311

 
(103
)
 
5,021

Other revenues from managed and franchised properties

 

 
2,996

 
300

 
(643
)
 
2,653

Total revenues

 

 
4,809

 
3,611

 
(746
)
 
7,674

 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels

 

 
116

 
2,360

 
(56
)
 
2,420

Timeshare

 

 
590

 
14

 
(40
)
 
564

Depreciation and amortization

 

 
228

 
242

 

 
470

General, administrative and other

 

 
275

 
81

 
(7
)
 
349

 

 

 
1,209

 
2,697

 
(103
)
 
3,803

Other expenses from managed and franchised properties

 

 
2,996

 
300

 
(643
)
 
2,653

Total expenses

 

 
4,205

 
2,997

 
(746
)
 
6,456

 
 
 
 
 
 
 
 
 
 
 
 
Operating income

 

 
604

 
614

 

 
1,218

 
 
 
 
 
 
 
 
 
 
 
 
Interest income

 

 
6

 
2

 

 
8

Interest expense

 
(255
)
 
(42
)
 
(170
)
 

 
(467
)
Equity in earnings from unconsolidated affiliates

 

 
13

 
3

 

 
16

Gain (loss) on foreign currency transactions

 

 
248

 
(207
)
 

 
41

Other gain, net

 

 
6

 
32

 

 
38

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and equity in earnings from subsidiaries

 
(255
)
 
835

 
274

 

 
854

 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit (expense)
(5
)
 
98

 
(327
)
 
(97
)
 

 
(331
)
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before equity in earnings from subsidiaries
(5
)
 
(157
)
 
508

 
177

 

 
523

 
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings from subsidiaries
520

 
677

 
169

 

 
(1,366
)
 

 
 
 
 
 
 
 
 
 
 
 
 
Net income
515

 
520

 
677

 
177

 
(1,366
)
 
523

Net income attributable to noncontrolling interests

 

 

 
(8
)
 

 
(8
)
Net income attributable to Hilton stockholders
$
515

 
$
520

 
$
677

 
$
169

 
$
(1,366
)
 
$
515

 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
381

 
$
516

 
$
697

 
$
29

 
$
(1,232
)
 
$
391

Comprehensive income attributable to noncontrolling interests

 

 

 
(10
)
 

 
(10
)
Comprehensive income attributable to Hilton stockholders
$
381

 
$
516

 
$
697

 
$
19

 
$
(1,232
)
 
$
381





 
Nine Months Ended September 30, 2015
 
Parent
 
Subsidiary Issuers
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Total
 
(in millions)
Operating Activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$

 
$

 
$
722

 
$
456

 
$
(187
)
 
$
991

 
 
 
 
 
 
 
 
 
 
 
 
Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures for property and equipment

 

 
(19
)
 
(195
)
 

 
(214
)
Acquisitions, net of cash acquired

 

 

 
(1,410
)
 

 
(1,410
)
Payments received on other financing receivables

 

 
1

 
2

 

 
3

Issuance of other financing receivables

 

 
(7
)
 
(2
)
 

 
(9
)
Investments in affiliates

 

 
(5
)
 

 

 
(5
)
Distributions from unconsolidated affiliates

 

 
18

 

 

 
18

Issuance of intercompany receivables

 

 
(184
)
 

 
184

 

Payments received on intercompany receivables

 

 
184

 

 
(184
)
 

Proceeds from asset dispositions

 

 

 
2,197

 

 
2,197

Contract acquisition costs

 

 
(14
)
 
(13
)
 

 
(27
)
Software capitalization costs

 

 
(38
)
 

 

 
(38
)
Net cash provided by (used in) investing activities

 

 
(64
)
 
579

 

 
515

 
 
 
 
 
 
 
 
 
 
 
 
Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Borrowings

 

 

 
35

 

 
35

Repayment of debt

 
(675
)
 

 
(667
)
 

 
(1,342
)
Intercompany borrowings

 

 

 
184

 
(184
)
 

Repayment of intercompany borrowings

 

 

 
(184
)
 
184

 

Change in restricted cash and cash equivalents

 

 

 
(53
)
 

 
(53
)
Intercompany transfers
69

 
675

 
(666
)
 
(78
)
 

 

Dividends paid
(69
)
 

 

 

 

 
(69
)
Dividends paid to Guarantors

 

 

 
(187
)
 
187

 

Distributions to noncontrolling interests

 

 

 
(6
)
 

 
(6
)
Excess tax benefits from share-based compensation

 

 
8

 

 

 
8

Net cash used in financing activities

 

 
(658
)
 
(956
)
 
187

 
(1,427
)
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents

 

 

 
(17
)
 

 
(17
)
Net increase in cash and cash equivalents

 

 

 
62

 

 
62

Cash and cash equivalents, beginning of period

 

 
270

 
296

 

 
566

 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents, end of period
$

 
$

 
$
270

 
$
358

 
$

 
$
628


 
Nine Months Ended September 30, 2014
 
Parent
 
Subsidiary Issuers
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Total
 
(in millions)
Operating Activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$

 
$

 
$
761

 
$
345

 
$
(207
)
 
$
899

 
 
 
 
 
 
 
 
 
 
 
 
Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures for property and equipment

 

 
(13
)
 
(171
)
 

 
(184
)
Payments received on other financing receivables

 

 
16

 
2

 

 
18

Issuance of other financing receivables

 

 

 
(1
)
 

 
(1
)
Investments in affiliates

 

 
(6
)
 

 

 
(6
)
Distributions from unconsolidated affiliates

 

 
30

 
2

 

 
32

Proceeds from asset dispositions

 

 
6

 
34

 

 
40

Contract acquisition costs

 

 
(13
)
 
(41
)
 

 
(54
)
Software capitalization costs

 

 
(45
)
 

 

 
(45
)
Net cash used in investing activities

 

 
(25
)
 
(175
)
 

 
(200
)
 
 
 
 
 
 
 
 
 
 
 
 
Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Borrowings

 

 

 
350

 

 
350

Repayment of debt

 
(700
)
 

 
(375
)
 

 
(1,075
)
Debt issuance costs

 
(6
)
 

 
(3
)
 

 
(9
)
Change in restricted cash and cash equivalents

 

 

 
(19
)
 

 
(19
)
Intercompany transfers

 
706

 
(830
)
 
124

 

 

Dividends paid to Guarantors

 

 

 
(207
)
 
207

 

Capital contribution

 

 

 
13

 

 
13

Distributions to noncontrolling interests

 

 

 
(3
)
 

 
(3
)
Net cash used in financing activities

 

 
(830
)
 
(120
)
 
207

 
(743
)
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents

 

 

 
(7
)
 

 
(7
)
Net increase (decrease) in cash and cash equivalents

 

 
(94
)
 
43

 

 
(51
)
Cash and cash equivalents, beginning of period

 

 
329

 
265

 

 
594

 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents, end of period
$

 
$

 
$
235

 
$
308

 
$

 
$
543