XML 209 R127.htm IDEA: XBRL DOCUMENT v2.4.0.8
Supplemental Guarantor Condensed Consolidating Financial Statements
 9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Supplemental Guarantor Condensed Consolidating Financial Statements    
Supplemental Guarantor Condensed Consolidating Financial Statements

Note 15: Supplemental Guarantor Condensed Consolidating Financial Statements

 

As described in Note 4 of these Consolidated Financial Statements and in Note 8 of the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, the 12.625% senior notes, 11.25% senior notes, 10.625% senior notes, 11.25% senior subordinated notes and 11.75% senior subordinated notes are guaranteed by substantially all existing and future, direct and indirect, wholly-owned, domestic subsidiaries of FDC other than Integrated Payment Systems Inc. (“Guarantors”). The Guarantors guarantee the senior secured revolving credit facility, senior secured term loan facility, the 8.875% senior secured notes, the 7.375% senior secured notes and the 6.75% senior secured notes, which rank senior in right of payment to all existing and future unsecured and second lien indebtedness of FDC’s guarantor subsidiaries to the extent of the value of the collateral. The Guarantors guarantee the 8.25% senior second lien notes and 8.75%/10.00% PIK toggle senior second lien notes which rank senior in right of payment to all existing and future unsecured indebtedness of FDC’s guarantor subsidiaries to the extent of the value of the collateral. The 12.625% senior note, 10.625% senior note and 11.25% senior note guarantees are unsecured and rank equally in right of payment with all existing and future senior indebtedness of the guarantor subsidiaries but senior in right of payment to all existing and future subordinated indebtedness of FDC’s guarantor subsidiaries. The 11.25% senior subordinated note and 11.75% senior subordinated note guarantees are unsecured and rank equally in right of payment with all existing and future senior subordinated indebtedness of the guarantor subsidiaries.

 

All of the above guarantees are full, unconditional, and joint and several and each of the Guarantors is 100% owned, directly or indirectly, by FDC. None of the other subsidiaries of FDC, either direct or indirect, guarantee the notes (“Non-Guarantors”). The Guarantors are subject to release under certain circumstances as described below.

 

The credit agreement governing the guarantees of the senior secured revolving credit facility and senior secured term loan facility provide for a Guarantor to be automatically and unconditionally released and discharged from its guarantee obligations in certain circumstances, including when the Guarantor ceases to be a “restricted subsidiary” for purposes of the agreement covenants because:

 

·                  FDC no longer directly or indirectly owns 50% of the equity or, if a corporation, stock having voting power to elect a majority of the board of directors of the Guarantor; or

·                  the Guarantor is designated as an “unrestricted subsidiary” for purposes of the agreement covenants.

 

The indentures governing all of the other guarantees described above provide for a Guarantor to be automatically and unconditionally released and discharged from its guarantee obligations in certain circumstances, including upon the earliest to occur of:

 

·                  the sale, exchange or transfer of the subsidiary’s capital stock or all or substantially all of its assets;

·                  designation of the Guarantor as an “unrestricted subsidiary” for purposes of the indenture covenants;

·                  release or discharge of the Guarantor’s guarantee of certain other indebtedness; or

·                  legal defeasance or covenant defeasance of the indenture obligations when provision has been made for them to be fully satisfied.

 

In the second quarter of 2010, the Company reorganized the ownership structure of two entities for tax purposes. The reorganization did not have any impact to the Company’s Consolidated Financial Statements, however, the impact of the reorganization was not appropriately reflected in the Company’s previously reported supplemental guarantor condensed consolidating financial statements.  The Company does not believe these errors were material. In addition to the items just described, the Company corrected certain other immaterial errors. The adjustments are limited to the guarantor footnote and do not affect any other reported amounts or disclosures in the Company’s Consolidated Financial Statements.  A summary of the corrections is as follows:

 

Increase (Decrease) from Amounts Previously Reported

 

 

 

Three months ended September 30, 2012

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

(Loss) income before income taxes and equity earnings in affiliates

 

$

10.8

 

$

(27.6

)

$

(1.1

)

$

17.9

 

Income tax (benefit) expense

 

$

10.8

 

$

(10.4

)

$

(0.4

)

$

—

 

Net (loss) income

 

$

—

 

$

(17.2

)

$

(0.7

)

$

17.9

 

Net (loss) income attributable to First Data Corporation

 

$

—

 

$

(17.2

)

$

(0.7

)

$

17.9

 

 

 

 

Nine months ended September 30, 2012

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

(Loss) income before income taxes and equity earnings in affiliates

 

$

35.3

 

$

(92.7

)

$

(1.6

)

$

59.0

 

Income tax (benefit) expense

 

$

35.3

 

$

(34.7

)

$

(0.6

)

$

—

 

Net (loss) income

 

$

—

 

$

(58.0

)

$

(1.0

)

$

59.0

 

Net (loss) income attributable to First Data Corporation

 

$

—

 

$

(58.0

)

$

(1.0

)

$

59.0

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three months ended September 30, 2012

 

 

 

FDC Parent Company

 

Guarantor Subsidiaries

 

Non-Guarantor Subsidiaries

 

Consolidation Adjustments

 

(in millions)

 

As previously
reported

 

As corrected

 

As previously
reported

 

As corrected

 

As previously
reported

 

As
corrected

 

As previously
reported

 

As corrected

 

Cost of services

 

$

—

 

$

—

 

$

496.1

 

$

494.4

 

$

280.8

 

$

282.5

 

$

(47.9

)

$

(47.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) profit

 

$

(46.6

)

$

(46.6

)

$

163.0

 

$

164.7

 

$

135.5

 

$

133.8

 

$

—

 

$

—

 

Interest income (expense) from intercompany notes

 

$

49.4

 

$

78.1

 

$

(50.7

)

$

(80.0

)

$

1.3

 

$

1.9

 

$

—

 

$

—

 

Equity earnings from consolidated subsidiaries

 

$

146.4

 

$

128.5

 

$

39.6

 

$

39.6

 

$

—

 

$

—

 

$

(186.0

)

$

(168.1

)

(Loss) income before income taxes and equity earnings in affiliates

 

$

(388.4

)

$

(377.6

)

$

140.9

 

$

113.3

 

$

146.9

 

$

145.8

 

$

(186.0

)

$

(168.1

)

Income tax (benefit) expense

 

$

(176.4

)

$

(165.6

)

$

77.9

 

$

67.5

 

$

29.1

 

$

28.7

 

$

—

 

$

—

 

Net (loss) income

 

$

(212.0

)

$

(212.0

)

$

105.7

 

$

88.5

 

$

118.1

 

$

117.4

 

$

(186.0

)

$

(168.1

)

Net (loss) income attributable to First Data Corporation

 

$

(212.0

)

$

(212.0

)

$

105.7

 

$

88.5

 

$

103.2

 

$

102.5

 

$

(208.9

)

$

(191.0

)

 

 

 

Nine months ended September 30, 2012

 

 

 

FDC Parent Company

 

Guarantor Subsidiaries

 

Non-Guarantor Subsidiaries

 

Consolidation Adjustments

 

(in millions)

 

As previously
reported

 

As corrected

 

As previously
reported

 

As corrected

 

As previously
reported

 

As
corrected

 

As previously
reported

 

As corrected

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

$

110.0

 

$

105.6

 

$

875.7

 

$

877.2

 

$

387.6

 

$

390.5

 

$

—

 

$

—

 

Operating (loss) profit

 

$

(115.8

)

$

(111.4

)

$

553.7

 

$

552.2

 

$

298.9

 

$

296.0

 

$

—

 

$

—

 

Interest income (expense) from intercompany notes

 

$

144.3

 

$

234.4

 

$

(148.6

)

$

(240.0

)

$

4.3

 

$

5.6

 

$

—

 

$

—

 

Equity earnings from consolidated subsidiaries

 

$

435.1

 

$

375.9

 

$

120.8

 

$

121.0

 

$

—

 

$

—

 

$

(555.9

)

$

(496.9

)

(Loss) income before income taxes and equity earnings in affiliates

 

$

(1,031.8

)

$

(996.5

)

$

512.0

 

$

419.3

 

$

305.6

 

$

304.0

 

$

(555.9

)

$

(496.9

)

Income tax (benefit) expense

 

$

(509.9

)

$

(474.6

)

$

234.5

 

$

199.8

 

$

23.1

 

$

22.5

 

$

—

 

$

—

 

Net (loss) income

 

$

(521.9

)

$

(521.9

)

$

390.8

 

$

332.8

 

$

283.7

 

$

282.7

 

$

(555.9

)

$

(496.9

)

Net (loss) income attributable to First Data Corporation

 

$

(521.9

)

$

(521.9

)

$

390.8

 

$

332.8

 

$

239.8

 

$

238.8

 

$

(630.6

)

$

(571.6

)

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

Nine months ended September 30, 2012

 

 

 

FDC Parent Company

 

Guarantor Subsidiaries

 

Non-Guarantor Subsidiaries

 

Consolidation Adjustments

 

(in millions)

 

As
previously
reported

 

As corrected

 

As previously
reported

 

As corrected

 

As previously
reported

 

As corrected

 

As previously
reported

 

As corrected

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(521.9

)

$

(521.9

)

$

390.8

 

$

332.8

 

$

283.7

 

$

282.7

 

$

(555.9

)

$

(496.9

)

Other non-cash and non-operating items, net

 

$

(405.3

)

$

(346.1

)

$

(193.9

)

$

(194.1

)

$

5.5

 

$

5.5

 

$

555.9

 

$

496.9

 

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

 

$

(519.1

)

$

(483.8

)

$

381.9

 

$

347.2

 

$

0.3

 

$

(0.3

)

$

—

 

$

—

 

Net cash (used in) provided by operating activities

 

$

(1,361.8

)

$

(1,267.3

)

$

1,238.1

 

$

1,145.2

 

$

661.9

 

$

660.3

 

$

—

 

$

—

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany

 

$

1,231.6

 

$

1,137.1

 

$

(1,191.1

)

$

(1,098.2

)

$

(40.5

)

$

(38.9

)

$

—

 

$

—

 

Net cash provided by (used in) financing activities

 

$

1,243.1

 

$

1,148.6

 

$

(1,222.2

)

$

(1,129.3

)

$

(550.3

)

$

(548.7

)

$

248.6

 

$

248.6

 

 

The following tables present the results of operations, comprehensive income, financial position and cash flows of FDC (“FDC Parent Company”), the Guarantor subsidiaries, the Non-Guarantor subsidiaries and consolidation adjustments for the three and nine months ended September 30, 2013 and 2012, and as of September 30, 2013 and December 31, 2012 to arrive at the information for FDC on a consolidated basis.

 

 

 

Three months ended September 30, 2013

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Transaction and processing service fees

 

$

—

 

$

1,065.4

 

$

610.1

 

$

(55.3

)

$

1,620.2

 

Product sales and other

 

—

 

143.3

 

87.7

 

(15.5

)

215.5

 

Reimbursable debit network fees, postage and other

 

—

 

631.5

 

244.9

 

—

 

876.4

 

 

 

—

 

1,840.2

 

942.7

 

(70.8

)

2,712.1

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of services (exclusive of items shown below)

 

—

 

461.6

 

302.3

 

(55.3

)

708.6

 

Cost of products sold

 

—

 

61.2

 

35.2

 

(15.5

)

80.9

 

Selling, general and administrative

 

27.0

 

302.2

 

134.4

 

—

 

463.6

 

Reimbursable debit network fees, postage and other

 

—

 

631.5

 

244.9

 

—

 

876.4

 

Depreciation and amortization

 

1.8

 

162.9

 

106.6

 

—

 

271.3

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Restructuring, net

 

3.2

 

4.8

 

(0.2

)

—

 

7.8

 

 

 

32.0

 

1,624.2

 

823.2

 

(70.8

)

2,408.6

 

Operating (loss) profit

 

(32.0

)

216.0

 

119.5

 

—

 

303.5

 

Interest income

 

—

 

—

 

2.7

 

—

 

2.7

 

Interest expense

 

(464.5

)

(3.0

)

(1.5

)

—

 

(469.0

)

Interest income (expense) from intercompany notes

 

79.2

 

(77.5

)

(1.7

)

—

 

—

 

Other income (expense)

 

(50.3

)

2.3

 

11.8

 

—

 

(36.2

)

Equity earnings from consolidated subsidiaries

 

157.2

 

30.4

 

—

 

(187.6

)

—

 

 

 

(278.4

)

(47.8

)

11.3

 

(187.6

)

(502.5

)

(Loss) income before income taxes and equity earnings in affiliates

 

(310.4

)

168.2

 

130.8

 

(187.6

)

(199.0

)

Income tax (benefit) expense

 

(90.9

)

68.6

 

50.9

 

—

 

28.6

 

Equity earnings in affiliates

 

—

 

47.3

 

—

 

—

 

47.3

 

Net (loss) income

 

(219.5

)

146.9

 

79.9

 

(187.6

)

(180.3

)

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest

 

—

 

—

 

14.2

 

25.0

 

39.2

 

Net (loss) income attributable to First Data Corporation

 

$

(219.5

)

$

146.9

 

$

65.7

 

$

(212.6

)

$

(219.5

)

Comprehensive (loss) income

 

$

(141.1

)

$

136.3

 

$

180.6

 

$

(275.3

)

$

(99.5

)

Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest

 

—

 

—

 

16.6

 

25.0

 

41.6

 

Comprehensive (loss) income attributable to First Data Corporation

 

$

(141.1

)

$

136.3

 

$

164.0

 

$

(300.3

)

$

(141.1

)

 

 

 

Nine months ended September 30, 2013

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Transaction and processing service fees

 

$

—

 

$

3,132.3

 

$

1,826.6

 

$

(166.4

)

$

4,792.5

 

Product sales and other

 

—

 

409.0

 

259.0

 

(45.2

)

622.8

 

Reimbursable debit network fees, postage and other

 

—

 

1,869.5

 

727.0

 

—

 

2,596.5

 

 

 

—

 

5,410.8

 

2,812.6

 

(211.6

)

8,011.8

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of services (exclusive of items shown below)

 

—

 

1,401.4

 

884.2

 

(166.4

)

2,119.2

 

Cost of products sold

 

—

 

185.0

 

107.1

 

(45.2

)

246.9

 

Selling, general and administrative

 

93.7

 

923.4

 

403.0

 

—

 

1,420.1

 

Reimbursable debit network fees, postage and other

 

—

 

1,869.5

 

727.0

 

—

 

2,596.5

 

Depreciation and amortization

 

5.5

 

490.5

 

322.2

 

—

 

818.2

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Restructuring, net

 

17.1

 

24.8

 

4.1

 

—

 

46.0

 

 

 

116.3

 

4,894.6

 

2,447.6

 

(211.6

)

7,246.9

 

Operating (loss) profit

 

(116.3

)

516.2

 

365.0

 

—

 

764.9

 

Interest income

 

0.1

 

0.1

 

7.8

 

—

 

8.0

 

Interest expense

 

(1,397.2

)

(7.6

)

(5.4

)

—

 

(1,410.2

)

Interest income (expense) from intercompany notes

 

236.3

 

(233.4

)

(2.9

)

—

 

—

 

Other income (expense)

 

(30.1

)

4.9

 

4.3

 

—

 

(20.9

)

Equity earnings from consolidated subsidiaries

 

371.1

 

103.5

 

—

 

(474.6

)

—

 

 

 

(819.8

)

(132.5

)

3.8

 

(474.6

)

(1,423.1

)

(Loss) income before income taxes and equity earnings in affiliates

 

(936.1

)

383.7

 

368.8

 

(474.6

)

(658.2

)

Income tax (benefit) expense

 

(190.1

)

185.0

 

106.8

 

—

 

101.7

 

Equity earnings in affiliates

 

—

 

135.4

 

0.6

 

—

 

136.0

 

Net (loss) income

 

(746.0

)

334.1

 

262.6

 

(474.6

)

(623.9

)

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest

 

—

 

—

 

39.3

 

82.8

 

122.1

 

Net (loss) income attributable to First Data Corporation

 

$

(746.0

)

$

334.1

 

$

223.3

 

$

(557.4

)

$

(746.0

)

Comprehensive (loss) income

 

$

(810.2

)

$

285.2

 

$

200.2

 

$

(362.9

)

$

(687.7

)

Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest

 

—

 

—

 

39.7

 

82.8

 

122.5

 

Comprehensive (loss) income attributable to First Data Corporation

 

$

(810.2

)

$

285.2

 

$

160.5

 

$

(445.7

)

$

(810.2

)

 

 

 

Three months ended September 30, 2012
(as corrected)

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Transaction and processing service fees

 

$

—

 

$

1,051.2

 

$

608.8

 

$

(47.9

)

$

1,612.1

 

Product sales and other

 

—

 

144.6

 

88.2

 

(15.3

)

217.5

 

Reimbursable debit network fees, postage and other

 

—

 

610.7

 

234.9

 

(1.2

)

844.4

 

 

 

—

 

1,806.5

 

931.9

 

(64.4

)

2,674.0

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of services (exclusive of items shown below)

 

—

 

494.4

 

282.5

 

(47.9

)

729.0

 

Cost of products sold

 

—

 

62.2

 

33.2

 

(15.3

)

80.1

 

Selling, general and administrative

 

44.7

 

293.5

 

129.7

 

—

 

467.9

 

Reimbursable debit network fees, postage and other

 

—

 

610.7

 

234.9

 

(1.2

)

844.4

 

Depreciation and amortization

 

1.9

 

175.3

 

116.3

 

—

 

293.5

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Restructuring, net

 

—

 

5.7

 

1.5

 

—

 

7.2

 

 

 

46.6

 

1,641.8

 

798.1

 

(64.4

)

2,422.1

 

Operating (loss) profit

 

(46.6

)

164.7

 

133.8

 

—

 

251.9

 

Interest income

 

—

 

—

 

2.1

 

—

 

2.1

 

Interest expense

 

(483.8

)

(2.3

)

(2.5

)

—

 

(488.6

)

Interest income (expense) from intercompany notes

 

78.1

 

(80.0

)

1.9

 

—

 

—

 

Other income (expense)

 

(53.8

)

(8.7

)

10.5

 

—

 

(52.0

)

Equity earnings from consolidated subsidiaries

 

128.5

 

39.6

 

—

 

(168.1

)

—

 

 

 

(331.0

)

(51.4

)

12.0

 

(168.1

)

(538.5

)

(Loss) income before income taxes and equity earnings in affiliates

 

(377.6

)

113.3

 

145.8

 

(168.1

)

(286.6

)

Income tax (benefit) expense

 

(165.6

)

67.5

 

28.7

 

—

 

(69.4

)

Equity earnings in affiliates

 

—

 

42.7

 

0.3

 

—

 

43.0

 

Net (loss) income

 

(212.0

)

88.5

 

117.4

 

(168.1

)

(174.2

)

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interests

 

—

 

—

 

14.9

 

22.9

 

37.8

 

Net (loss) income attributable to First Data Corporation

 

$

(212.0

)

$

88.5

 

$

102.5

 

$

(191.0

)

$

(212.0

)

Comprehensive (loss) income

 

$

(96.4

)

$

109.9

 

$

209.0

 

$

(277.6

)

$

(55.1

)

Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest

 

—

 

—

 

18.4

 

22.9

 

41.3

 

Comprehensive (loss) income attributable to First Data Corporation

 

$

(96.4

)

$

109.9

 

$

190.6

 

$

(300.5

)

$

(96.4

)

 

 

 

Nine months ended September 30, 2012
(as corrected)

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Transaction and processing service fees

 

$

—

 

$

3,112.5

 

$

1,818.3

 

$

(143.2

)

$

4,787.6

 

Product sales and other

 

—

 

423.9

 

258.5

 

(44.5

)

637.9

 

Reimbursable debit network fees, postage and other

 

—

 

1,816.2

 

704.4

 

(22.6

)

2,498.0

 

 

 

—

 

5,352.6

 

2,781.2

 

(210.3

)

7,923.5

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of services (exclusive of items shown below)

 

—

 

1,361.1

 

919.9

 

(143.2

)

2,137.8

 

Cost of products sold

 

—

 

192.1

 

103.7

 

(44.5

)

251.3

 

Selling, general and administrative

 

105.6

 

877.2

 

390.5

 

—

 

1,373.3

 

Reimbursable debit network fees, postage and other

 

—

 

1,816.2

 

704.4

 

(22.6

)

2,498.0

 

Depreciation and amortization

 

6.0

 

541.4

 

349.7

 

—

 

897.1

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Restructuring, net

 

(0.2

)

7.3

 

17.0

 

—

 

24.1

 

Impairments

 

—

 

5.1

 

—

 

—

 

5.1

 

 

 

111.4

 

4,800.4

 

2,485.2

 

(210.3

)

7,186.7

 

Operating (loss) profit

 

(111.4

)

552.2

 

296.0

 

—

 

736.8

 

Interest income

 

0.1

 

0.3

 

5.9

 

—

 

6.3

 

Interest expense

 

(1,416.8

)

(5.7

)

(7.9

)

—

 

(1,430.4

)

Interest income (expense) from intercompany notes

 

234.4

 

(240.0

)

5.6

 

—

 

—

 

Other income (expense)

 

(78.7

)

(8.5

)

4.4

 

—

 

(82.8

)

Equity earnings from consolidated subsidiaries

 

375.9

 

121.0

 

—

 

(496.9

)

—

 

 

 

(885.1

)

(132.9

)

8.0

 

(496.9

)

(1,506.9

)

(Loss) income before income taxes and equity earnings in affiliates

 

(996.5

)

419.3

 

304.0

 

(496.9

)

(770.1

)

Income tax (benefit) expense

 

(474.6

)

199.8

 

22.5

 

—

 

(252.3

)

Equity earnings in affiliates

 

—

 

113.3

 

1.2

 

—

 

114.5

 

Net (loss) income

 

(521.9

)

332.8

 

282.7

 

(496.9

)

(403.3

)

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interests

 

—

 

—

 

43.9

 

74.7

 

118.6

 

Net (loss) income attributable to First Data Corporation

 

$

(521.9

)

$

332.8

 

$

238.8

 

$

(571.6

)

$

(521.9

)

Comprehensive (loss) income

 

$

(446.1

)

$

348.0

 

$

279.6

 

$

(508.5

)

$

(327.0

)

Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest

 

—

 

—

 

44.4

 

74.7

 

119.1

 

Comprehensive (loss) income attributable to First Data Corporation

 

$

(446.1

)

$

348.0

 

$

235.2

 

$

(583.2

)

$

(446.1

)

 

 

 

As of September 30, 2013

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6.8

 

$

32.2

 

$

319.6

 

$

—

 

$

358.6

 

Accounts receivable, net of allowance for doubtful accounts

 

6.3

 

792.4

 

833.6

 

—

 

1,632.3

 

Settlement assets (a)

 

—

 

4,858.0

 

4,323.7

 

—

 

9,181.7

 

Intercompany notes receivable

 

12.5

 

—

 

22.6

 

(35.1

)

—

 

Other current assets

 

71.0

 

205.9

 

74.8

 

—

 

351.7

 

Total current assets

 

96.6

 

5,888.5

 

5,574.3

 

(35.1

)

11,524.3

 

Property and equipment, net of accumulated depreciation

 

28.4

 

592.8

 

245.7

 

—

 

866.9

 

Goodwill

 

—

 

9,483.9

 

7,748.1

 

—

 

17,232.0

 

Customer relationships, net of accumulated amortization

 

—

 

1,838.6

 

1,484.0

 

—

 

3,322.6

 

Other intangibles, net of accumulated amortization

 

604.5

 

556.2

 

566.2

 

—

 

1,726.9

 

Investment in affiliates

 

—

 

1,308.5

 

30.2

 

—

 

1,338.7

 

Long-term settlement assets (a)

 

—

 

—

 

18.6

 

—

 

18.6

 

Long-term intercompany receivables

 

—

 

6,336.9

 

1,296.4

 

(7,633.3

)

—

 

Long-term intercompany notes receivable

 

3,496.6

 

284.1

 

0.4

 

(3,781.1

)

—

 

Long-term deferred tax assets

 

930.9

 

—

 

—

 

(930.9

)

—

 

Other long-term assets

 

373.5

 

405.2

 

144.4

 

(109.4

)

813.7

 

Investment in consolidated subsidiaries

 

24,665.8

 

5,312.6

 

—

 

(29,978.4

)

—

 

Total assets

 

$

30,196.3

 

$

32,007.3

 

$

17,108.3

 

$

(42,468.2

)

$

36,843.7

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

5.2

 

$

171.1

 

$

78.3

 

$

—

 

$

254.6

 

Short-term and current portion of long-term borrowings

 

95.5

 

65.7

 

87.1

 

—

 

248.3

 

Settlement obligations (a)

 

—

 

4,858.0

 

4,339.6

 

—

 

9,197.6

 

Intercompany notes payable

 

22.7

 

12.5

 

—

 

(35.2

)

—

 

Other current liabilities

 

471.0

 

567.8

 

332.3

 

—

 

1,371.1

 

Total current liabilities

 

594.4

 

5,675.1

 

4,837.3

 

(35.2

)

11,071.6

 

Long-term borrowings

 

22,460.9

 

91.7

 

12.5

 

—

 

22,565.1

 

Long-term deferred tax liabilities

 

—

 

1,291.5

 

192.5

 

(930.9

)

553.1

 

Long-term intercompany payables

 

7,633.3

 

—

 

—

 

(7,633.3

)

—

 

Long-term intercompany notes payable

 

286.1

 

3,413.0

 

81.9

 

(3,781.0

)

—

 

Other long-term liabilities

 

617.2

 

226.6

 

51.7

 

(109.4

)

786.1

 

Total liabilities

 

31,591.9

 

10,697.9

 

5,175.9

 

(12,489.8

)

34,975.9

 

Redeemable equity interest

 

—

 

—

 

67.9

 

(67.9

)

—

 

Redeemable noncontrolling interest

 

—

 

—

 

—

 

67.9

 

67.9

 

First Data Corporation stockholder’s (deficit) equity

 

(1,395.6

)

21,309.4

 

5,457.1

 

(26,766.5

)

(1,395.6

)

Noncontrolling interests

 

—

 

—

 

84.2

 

3,111.3

 

3,195.5

 

Equity of consolidated alliance

 

—

 

—

 

6,323.2

 

(6,323.2

)

—

 

Total equity

 

(1,395.6

)

21,309.4

 

11,864.5

 

(29,978.4

)

1,799.9

 

Total liabilities and equity

 

$

30,196.3

 

$

32,007.3

 

$

17,108.3

 

$

(42,468.2

)

$

36,843.7

 

 

 

 

As of December 31, 2012

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

228.0

 

$

37.2

 

$

343.1

 

$

—

 

$

608.3

 

Accounts receivable, net of allowance for doubtful accounts

 

4.4

 

879.7

 

963.6

 

—

 

1,847.7

 

Settlement assets (a)

 

—

 

5,097.1

 

4,076.7

 

—

 

9,173.8

 

Intercompany notes receivable

 

—

 

—

 

30.8

 

(30.8

)

—

 

Other current assets

 

73.0

 

145.3

 

35.3

 

—

 

253.6

 

Total current assets

 

305.4

 

6,159.3

 

5,449.5

 

(30.8

)

11,883.4

 

Property and equipment, net of accumulated depreciation

 

30.7

 

561.4

 

263.7

 

—

 

855.8

 

Goodwill

 

—

 

9,485.3

 

7,797.2

 

—

 

17,282.5

 

Customer relationships, net of accumulated amortization

 

—

 

2,071.7

 

1,684.6

 

—

 

3,756.3

 

Other intangibles, net of accumulated amortization

 

605.0

 

619.7

 

603.9

 

—

 

1,828.6

 

Investment in affiliates

 

—

 

1,375.2

 

37.9

 

—

 

1,413.1

 

Long-term settlement assets (a)

 

—

 

—

 

54.3

 

—

 

54.3

 

Long-term intercompany receivables

 

—

 

5,501.3

 

1,141.1

 

(6,642.4

)

—

 

Long-term intercompany notes receivable

 

3,397.3

 

270.0

 

8.4

 

(3,675.7

)

—

 

Long-term deferred tax assets

 

1,028.0

 

—

 

—

 

(1,028.0

)

—

 

Other long-term assets

 

427.1

 

373.5

 

108.2

 

(83.8

)

825.0

 

Investment in consolidated subsidiaries

 

24,308.9

 

5,379.5

 

—

 

(29,688.4

)

—

 

Total assets

 

$

30,102.4

 

$

31,796.9

 

$

17,148.8

 

$

(41,149.1

)

$

37,899.0

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

13.8

 

$

141.8

 

$

105.3

 

$

—

 

$

260.9

 

Short-term and current portion of long-term borrowings

 

15.1

 

55.1

 

186.9

 

—

 

257.1

 

Settlement obligations (a)

 

—

 

5,097.1

 

4,129.2

 

—

 

9,226.3

 

Intercompany notes payable

 

30.8

 

—

 

—

 

(30.8

)

—

 

Other current liabilities

 

608.1

 

620.3

 

372.2

 

—

 

1,600.6

 

Total current liabilities

 

667.8

 

5,914.3

 

4,793.6

 

(30.8

)

11,344.9

 

Long-term borrowings

 

22,462.3

 

47.8

 

18.8

 

—

 

22,528.9

 

Long-term deferred tax liabilities

 

—

 

1,445.1

 

92.4

 

(1,028.0

)

509.5

 

Long-term intercompany payables

 

6,642.4

 

—

 

—

 

(6,642.4

)

—

 

Long-term intercompany notes payable

 

276.7

 

3,315.6

 

83.4

 

(3,675.7

)

—

 

Other long-term liabilities

 

651.7

 

222.7

 

31.3

 

(83.8

)

821.9

 

Total liabilities

 

30,700.9

 

10,945.5

 

5,019.5

 

(11,460.7

)

35,205.2

 

Redeemable equity interest

 

—

 

—

 

67.4

 

(67.4

)

—

 

Redeemable noncontrolling interest

 

—

 

—

 

—

 

67.4

 

67.4

 

First Data Corporation stockholder’s (deficit) equity

 

(598.5

)

20,851.4

 

5,583.0

 

(26,434.4

)

(598.5

)

Noncontrolling interests

 

—

 

—

 

70.5

 

3,154.4

 

3,224.9

 

Equity of consolidated alliance

 

—

 

—

 

6,408.4

 

(6,408.4

)

—

 

Total equity

 

(598.5

)

20,851.4

 

12,061.9

 

(29,688.4

)

2,626.4

 

Total liabilities and equity

 

$

30,102.4

 

$

31,796.9

 

$

17,148.8

 

$

(41,149.1

)

$

37,899.0

 

 

(a)         The majority of the Guarantor settlement assets relate to FDC’s merchant acquiring business. FDC believes the settlement assets are not available to satisfy any claims other than those related to the settlement liabilities.

 

 

 

Nine months ended September 30, 2013

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

Consolidated

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(746.0

)

$

334.1

 

$

262.6

 

$

(474.6

)

$

(623.9

)

Adjustments to reconcile to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues)

 

5.5

 

568.5

 

334.1

 

—

 

908.1

 

Charges (gains) related to other operating expenses and other income (expense)

 

47.2

 

19.9

 

(0.2

)

—

 

66.9

 

Other non-cash and non-operating items, net

 

(303.8

)

(173.9

)

(2.0

)

474.6

 

(5.1

)

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

 

(356.7

)

215.1

 

127.6

 

—

 

(14.0

)

Net cash (used in) provided by operating activities

 

(1,353.8

)

963.7

 

722.1

 

—

 

332.0

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Payments related to other business previously acquired

 

—

 

0.2

 

—

 

—

 

0.2

 

Proceeds from dispositions, net of expenses paid and cash disposed

 

—

 

6.8

 

7.7

 

—

 

14.5

 

Additions to property and equipment

 

(0.1

)

(63.6

)

(68.6

)

—

 

(132.3

)

Proceeds from sale of property and equipment

 

—

 

4.1

 

0.1

 

—

 

4.2

 

Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs

 

(0.4

)

(91.4

)

(36.2

)

—

 

(128.0

)

Distributions and dividends from subsidiaries

 

146.5

 

131.5

 

—

 

(278.0

)

—

 

Other investing activities

 

0.3

 

6.0

 

0.9

 

—

 

7.2

 

Net cash provided by (used in) investing activities

 

146.3

 

(6.4

)

(96.1

)

(278.0

)

(234.2

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings, net

 

95.0

 

—

 

(98.1

)

—

 

(3.1

)

Accrued interest funded upon issuance of notes

 

(6.5

)

—

 

—

 

—

 

(6.5

)

Debt modification (payments) proceeds and related financing costs, net

 

(49.0

)

—

 

—

 

—

 

(49.0

)

Principal payments on long-term debt

 

(15.4

)

(49.9

)

(7.1

)

—

 

(72.4

)

Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest

 

—

 

—

 

(30.6

)

(125.9

)

(156.5

)

Distributions paid to equity holders

 

—

 

—

 

(257.4

)

257.4

 

—

 

Redemption of Parent’s redeemable common stock

 

(7.5

)

—

 

—

 

—

 

(7.5

)

Purchase of noncontrolling interest

 

—

 

—

 

(23.7

)

—

 

(23.7

)

Cash dividends

 

(21.5

)

—

 

(146.5

)

146.5

 

(21.5

)

Intercompany

 

991.2

 

(914.0

)

(77.2

)

—

 

—

 

Net cash provided by (used in) financing activities

 

986.3

 

(963.9

)

(640.6

)

278.0

 

(340.2

)

Effect of exchange rate changes on cash and cash equivalents

 

—

 

1.6

 

(8.9

)

—

 

(7.3

)

Change in cash and cash equivalents

 

(221.2

)

(5.0

)

(23.5

)

—

 

(249.7

)

Cash and cash equivalents at beginning of period

 

228.0

 

37.2

 

343.1

 

—

 

608.3

 

Cash and cash equivalents at end of period

 

$

6.8

 

$

32.2

 

$

319.6

 

$

—

 

$

358.6

 

 

 

 

Nine months ended September 30, 2012
(As Corrected)

 

(in millions)

 

FDC Parent
Company

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Consolidation
Adjustments

 

Consolidated

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(521.9

)

$

332.8

 

$

282.7

 

$

(496.9

)

$

(403.3

)

Adjustments to reconcile to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues)

 

6.0

 

638.4

 

359.7

 

—

 

1,004.1

 

Charges related to other operating expenses and other income (expense)

 

78.5

 

20.9

 

12.7

 

—

 

112.1

 

Other non-cash and non-operating items, net

 

(346.1

)

(194.1

)

5.5

 

496.9

 

(37.8

)

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

 

(483.8

)

347.2

 

(0.3

)

—

 

(136.9

)

Net cash (used in) provided by operating activities

 

(1,267.3

)

1,145.2

 

660.3

 

—

 

538.2

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Current period acquisitions

 

—

 

(1.9

)

—

 

—

 

(1.9

)

Contributions to equity method investments

 

—

 

(7.9

)

—

 

—

 

(7.9

)

Payments related to other businesses previously acquired

 

—

 

(3.2

)

—

 

—

 

(3.2

)

Additions to property and equipment

 

(1.7

)

(67.3

)

(67.3

)

—

 

(136.3

)

Proceeds from sale of property and equipment

 

—

 

6.9

 

0.9

 

—

 

7.8

 

Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs

 

(0.7

)

(117.1

)

(23.4

)

—

 

(141.2

)

Distributions and dividends from subsidiaries

 

87.0

 

161.6

 

—

 

(248.6

)

—

 

Other investing activities

 

1.9

 

0.5

 

4.9

 

—

 

7.3

 

Net cash provided by (used in) investing activities

 

86.5

 

(28.4

)

(84.9

)

(248.6

)

(275.4

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings, net

 

—

 

—

 

(22.0

)

—

 

(22.0

)

Accrued interest funded upon issuance of notes

 

6.5

 

—

 

—

 

—

 

6.5

 

Debt modification proceeds and related financing costs, net

 

10.8

 

—

 

—

 

—

 

10.8

 

Principal payments on long-term debt

 

(0.2

)

(44.9

)

(15.1

)

—

 

(60.2

)

Proceeds from sale-leaseback transactions

 

—

 

13.8

 

—

 

—

 

13.8

 

Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest

 

—

 

—

 

(45.4

)

(153.6

)

(199.0

)

Distributions paid to equity holders

 

—

 

—

 

(313.2

)

313.2

 

—

 

Redemption of Parent’s redeemable common stock

 

(0.5

)

—

 

—

 

—

 

(0.5

)

Purchase of noncontrolling interest

 

—

 

—

 

(25.1

)

—

 

(25.1

)

Cash dividends

 

(5.1

)

—

 

(89.0

)

89.0

 

(5.1

)

Intercompany

 

1,137.1

 

(1,098.2

)

(38.9

)

—

 

—

 

Net cash provided by (used in) financing activities

 

1,148.6

 

(1,129.3

)

(548.7

)

248.6

 

(280.8

)

Effect of exchange rate changes on cash and cash equivalents

 

—

 

(4.0

)

6.5

 

—

 

2.5

 

Change in cash and cash equivalents

 

(32.2

)

(16.5

)

33.2

 

—

 

(15.5

)

Cash and cash equivalents at beginning of period

 

162.2

 

37.1

 

286.4

 

—

 

485.7

 

Cash and cash equivalents at end of period

 

$

130.0

 

$

20.6

 

$

319.6

 

$

—

 

$

470.2

 

 

Note 19: Supplemental Guarantor Condensed Consolidating Financial Statements

        As described in Note 8 of these Consolidated Financial Statements, FDC's 9.875% senior notes, 12.625% senior notes, 10.55% senior notes and 11.25% senior subordinated notes are unconditionally guaranteed by substantially all existing and future, direct and indirect, wholly-owned, domestic subsidiaries of FDC other than Integrated Payment Systems Inc. ("Guarantors"). None of the other subsidiaries of FDC, either direct or indirect, guarantee the notes ("Non-Guarantors"). The Guarantors also unconditionally guarantee the senior secured revolving credit facility, senior secured term loan facility, the 8.875% senior secured notes, the 7.375% senior secured notes and the 6.75% senior secured notes, which rank senior in right of payment to all existing and future unsecured and second lien indebtedness of FDC's guarantor subsidiaries to the extent of the value of the collateral. The Guarantors further unconditionally guarantee the 8.25% senior second lien notes and 8.75%/10.00% PIK toggle senior second lien notes which rank senior in right of payment to all existing and future unsecured indebtedness of FDC's guarantor subsidiaries to the extent of the value of the collateral. The 9.875% senior note, 12.625% senior note, 10.55% senior note and 11.25% senior subordinated note guarantees are unsecured and rank equally in right of payment with all existing and future senior indebtedness of the guarantor subsidiaries but senior in right of payment to all existing and future subordinated indebtedness of FDC's guarantor subsidiaries. The 11.25% senior subordinated note guarantees are unsecured and rank equally in right of payment with all existing and future senior subordinated indebtedness of the guarantor subsidiaries.

        All of the above guarantees are full, unconditional, and joint and several and each of the Guarantors is 100% owned, directly or indirectly, by FDC. None of the other subsidiaries of FDC, either direct or indirect, guarantee the notes ("Non-Guarantors"). The Guarantors are subject to release under certain circumstances as described below.

        The credit agreement governing the guarantees of the senior secured revolving credit facility and senior secured term loan facility provide for a Guarantor to be automatically and unconditionally released and discharged from its guarantee obligations in certain circumstances, including when the Guarantor ceases to be a "restricted subsidiary" for purposes of the agreement covenants because:

  • •
    FDC no longer directly or indirectly owns 50% of the equity or, if a corporation, stock having voting power to elect a majority of the board of directors of the Guarantor; or

    •
    the Guarantor is designated as an "unrestricted subsidiary" for purposes of the agreement covenants.

        The indentures governing all of the other guarantees described above provide for a Guarantor to be automatically and unconditionally released and discharged from its guarantee obligations in certain circumstances, including upon the earliest to occur of:

  • •
    the sale, exchange or transfer of the subsidiary's capital stock or all or substantially all of its assets;

    •
    designation of the Guarantor as an "unrestricted subsidiary" for purposes of the indenture covenants;

    •
    release or discharge of the Guarantor's guarantee of certain other indebtedness; or

    •
    legal defeasance or covenant defeasance of the indenture obligations when provision has been made for them to be fully satisfied.

        During the second quarter of 2011, the Company began allocating certain general and administrative expenses of the parent company to its subsidiaries. This allocation was inadvertently not reflected in the Company's previously reported supplemental guarantor condensed consolidating financial statements. In the second quarter of 2010, the Company reorganized the ownership structure of two entities for tax purposes. The reorganization did not have any impact to the Company's consolidated financial statements, however, the impact of the reorganization was not appropriately reflected in the Company's previously reported supplemental guarantor condensed consolidating financial statements. The Company does not believe these errors were material. In addition to the items just described, the Company corrected certain other immaterial errors. The adjustments are limited to the guarantor footnote and do not affect any other reported amounts or disclosures in the Company's consolidated financial statements. A summary of the corrections is as follows:


Increase (Decrease) from Amounts Previously Reported

 
   For the nine months ended September 30, 2012  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-Guarantor
Subsidiaries		   Consolidation
Adjustments		  

(Loss) income before income taxes and equity earnings in affiliates

   $ 35.3   $ (92.7 ) $ (1.6 ) $ 59.0  

Income tax (benefit) expense

     35.3     (34.7 )   (0.6 )   —  

Net (loss) income

     —     (58.0 )   (1.0 )   59.0  

Net (loss) income attributable to First Data Corporation

     —     (58.0 )   (1.0 )   59.0  


 

 
   Year ended December 31, 2011  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-Guarantor
Subsidiaries		   Consolidation
Adjustments		  

(Loss) income before income taxes and equity earnings in affiliates

   $ 110.4   $ (260.1 ) $ (36.6 ) $ 186.3  

Income tax (benefit) expense

     110.4     (97.9 )   (12.5 )   —  

Net (loss) income

     —     (162.2 )   (24.1 )   186.3  

Net (loss) income attributable to First Data Corporation

     —     (161.9 )   (24.4 )   186.3  


 

 
   Year ended December 31, 2010  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-Guarantor
Subsidiaries		   Consolidation
Adjustments		  

(Loss) income before income taxes and equity earnings in affiliates

   $ 44.0   $ (108.6 ) $ (9.4 ) $ 74.0  

Income tax (benefit) expense

     44.0     (40.4 )   (3.6 )   —  

Net (loss) income

     —     (68.2 )   (5.8 )   74.0  

Net (loss) income attributable to First Data Corporation

     —     (68.4 )   (5.6 )   74.0  


CONSOLIDATED STATEMENTS OF OPERATIONS

 
   For the nine months ended September 30, 2012  
 
   FDC Parent
Company		   Guarantor
Subsidiaries		   Non-Guarantor
Subsidiaries		   Consolidation
Adjustments		  
(in millions)
  As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		  

Selling, general and administrative

   $ 110.0   $ 105.6   $ 875.7   $ 877.2   $ 387.6   $ 390.5   $ —   $ —  

Operating (loss) profit

     (115.8 )   (111.4 )   553.7     552.2     298.9     296.0     —     —  

Interest income (expense) from intercompany notes

     144.3     234.4     (148.6 )   (240.0 )   4.3     5.6     —     —  

Equity earnings from consolidated subsidiaries

     435.1     375.9     120.8     121.0     —     —     (555.9 )   (496.9 )

(Loss) income before income taxes and equity earnings in affiliates

     (1,031.8 )   (996.5 )   512.0     419.3     305.6     304.0     (555.9 )   (496.9 )

Income tax (benefit) expense

     (509.9 )   (474.6 )   234.5     199.8     23.1     22.5     —     —  

Net (loss) income

     (521.9 )   (521.9 )   390.8     332.8     283.7     282.7     (555.9 )   (496.9 )

Net (loss) income attributable to First Data Corporation

     (521.9 )   (521.9 )   390.8     332.8     239.8     238.8     (630.6 )   (571.6 )


 

 
   Year ended December 31, 2011  
 
   FDC Parent
Company		   Guarantor
Subsidiaries		   Non-Guarantor
Subsidiaries		   Consolidation
Adjustments		  
(in millions)
  As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		  

Cost of services

   $ —   $ —   $ 1,909.8   $ 1,896.4   $ 1,141.6   $ 1,155.0   $ (163.0 ) $ (163.0 )

Selling, general and administrative

     259.7     107.8     957.8     1,095.4     476.2     490.5     —     —  

Operating (loss) profit

     (264.9 )   (113.0 )   698.8     574.6     507.6     479.9     —     —  

Interest income (expense) from intercompany notes

     162.5     306.7     (176.6 )   (311.9 )   14.1     5.2     —     —  

Equity earnings from consolidated subsidiaries

     637.9     452.2     134.5     133.9     —     —     (772.4 )   (586.1 )

(Loss) income before income taxes and equity earnings in affiliates

     (1,218.1 )   (1,107.7 )   718.1     458.0     512.8     476.2     (772.4 )   (586.1 )

Income tax (benefit) expense

     (702.0 )   (591.6 )   341.3     243.4     90.6     78.1     —     —  

Net (loss) income

     (516.1 )   (516.1 )   530.4     368.2     422.0     397.9     (772.4 )   (586.1 )

Net (loss) income attributable to First Data Corporation

     (516.1 )   (516.1 )   530.1     368.2     362.7     338.3     (892.8 )   (706.5 )


 

 
   Year ended December 31, 2010  
 
   FDC Parent
Company		   Guarantor
Subsidiaries		   Non-Guarantor
Subsidiaries		   Consolidation
Adjustments		  
(in millions)
  As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		   As
previously
reported		   As
corrected		  

Cost of Services

   $ —   $ —   $ 1,944.3   $ 1,949.6   $ 1,227.5   $ 1,222.2   $ (148.5 ) $ (148.5 )

Operating (loss) profit

     (285.0 )   (285.0 )   475.3     470.0     326.4     331.7     —     —  

Interest income (expense) from intercompany notes

     112.3     230.3     (146.4 )   (249.7 )   34.1     19.4     —     —  

Equity earnings from consolidated subsidiaries

     323.8     249.8     150.2     150.2     —     —     (474.0 )   (400.0 )

(Loss) income before income taxes and equity earnings in affiliates

     (1,620.3 )   (1,576.3 )   505.6     397.0     326.7     317.3     (500.0 )   (426.0 )

Income tax (benefit) expense

     (598.5 )   (554.5 )   164.7     124.3     110.0     106.4     —     —  

Net (loss) income

     (1,021.8 )   (1,021.8 )   458.6     390.4     218.2     212.4     (501.9 )   (427.9 )

Net (loss) income attributable to First Data Corporation

     (1,021.8 )   (1,021.8 )   458.8     390.4     168.9     163.3     (627.7 )   (553.7 )

CONSOLIDATED BALANCE SHEETS

 
   As of December 31, 2011  
 
   FDC Parent Company   Guarantor Subsidiaries   Non-Guarantor
Subsidiaries		   Consolidation Adjustments  
(in millions)
  As previously
reported		   As corrected   As previously
reported		   As corrected   As previously
reported		   As corrected   As previously
reported		   As corrected  

ASSETS

                                                  

Current intercompany notes receivable

   $ —   $ 12.2   $ —   $ —   $ —   $ 86.1   $ —   $ (98.3 )

Total current assets

     233.2     245.4     7,281.7     7,281.7     5,800.6     5,886.7     —     (98.3 )

Goodwill

     —     —     9,510.5     9,430.9     7,694.1     7,773.7     —     —  

Long-term intercompany receivables

     —     —     —     4,330.2     —     962.7     —     (5,292.9 )

Long-term intercompany notes receivable

     —     3,229.4     —     251.5     —     59.0     —     (3,539.9 )

Investment in consolidated subsidiaries

     25,242.7     23,797.4     5,396.2     5,843.0     —     —     (30,638.9 )   (29,640.4 )

Total assets

     26,579.8     28,376.1     27,676.1     32,625.0     16,659.3     17,846.7     (30,638.9 )   (38,571.5 )

LIABILITIES AND EQUITY

                                                  

Current intercompany notes payable

     —     62.5     —     35.8     —     —     —     (98.3 )

Total current liabilities

     697.9     760.4     6,790.7     6,826.5     5,331.6     5,331.6     —     (98.3 )

Long-term intercompany payables

     5,707.0     5,292.9     (4,618.7 )   —     (1,088.3 )   —     —     (5,292.9 )

Long-term intercompany notes payable

     (1,887.3 )   260.6     1,949.9     3,196.8     (62.6 )   82.5     —     (3.539.9 )

Total liabilities

     26,483.2     28,279.5     5,968.5     11,869.9     4,349.2     5,582.6     —     (8,931.1 )

First Data Corporation stockholder's equity

    
96.6		    
96.6		    
21,707.5		    
20,755.1		    
5,580.5		    
5,534.4		    
(27,288.0
)		  
(26,289.5
)

Total equity

     96.6     96.6     21,707.6     20,755.1     12,242.7     12,196.7     (30,638.9 )   (29,640.4 )

Total liabilities and equity

     26,579.8     28,376.1     27,676.1     32,625.0     16,659.3     17,846.7     (30,638.9 )   (38,571.5 )


CONSOLIDATED STATEMENTS OF CASH FLOWS

 
   For the nine months ended September 30, 2012  
 
   FDC Parent Company   Guarantor Subsidiaries   Non-Guarantor
Subsidiaries		   Consolidation Adjustments  
(in millions)
Source/(use)
  As previously
reported		   As corrected   As previously
reported		   As corrected   As previously
reported		   As corrected   As previously
reported		   As corrected  

CASH FLOWS FROM OPERATING ACTIVITIES

                                                  

Net (loss) income

   $ (521.9 ) $ (521.9 ) $ 390.8   $ 332.8   $ 283.7   $ 282.7   $ (555.9 ) $ (496.9 )

Other non-cash and non-operating items, net

    
(405.3
)		  
(346.1
)		  
(193.9
)		  
(194.1
)		  
5.5		    
5.5		    
555.9		    
496.9		  

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

     (519.1 )   (483.8 )   381.9     347.2     0.3     (0.3 )   —     —  

Net cash (used in) provided by operating activities

     (1,361.8 )   (1,267.3 )   1,238.1     1,145.2     661.9     660.3     —     —  

CASH FLOWS FROM FINANCING ACTIVITIES

                                                  

Intercompany

     1,231.6     1,137.1     (1,191.1 )   (1,098.2 )   (40.5 )   (38.9 )   —     —  

Net cash provided by (used in) financing activities

     1,243.1     1,148.6     (1,222.2 )   (1,129.3 )   (550.3 )   (548.7 )   248.6     248.6  

 
   Year ended December 31, 2011  
 
   FDC Parent Company   Guarantor Subsidiaries   Non-Guarantor
Subsidiaries		   Consolidation Adjustments  
(in millions)
Source/(use)
  As previously
reported		   As corrected   As previously
reported		   As corrected   As previously
reported		   As corrected   As previously
reported		   As corrected  

CASH FLOWS FROM OPERATING ACTIVITIES

                                                  

Net (loss) income

   $ (516.1 ) $ (516.1 ) $ 530.4   $ 368.2   $ 422.0   $ 397.9   $ (772.4 ) $ (586.1 )

Other non-cash and non-operating items, net

    
(546.0
)		  
(360.3
)		  
(210.1
)		  
(209.5
)		  
11.4		    
11.4		    
772.4		    
586.1		  

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

     (437.4 )   (327.0 )   481.7     383.8     113.2     100.7     —     —  

Net cash (used in) provided by operating activities

     (1,550.8 )   (1,254.7 )   1,584.1     1,324.6     1,082.3     1,045.7     —     —  

CASH FLOWS FROM FINANCING ACTIVITIES

                                                  

Intercompany

     1,516.6     1,220.5     (1,375.9 )   (1,116.4 )   (140.7 )   (104.1 )   —     —  

Net cash provided by (used in) financing activities

     1,443.3     1,147.2     (1,426.1 )   (1,166.6 )   (985.9 )   (949.3 )   404.2     404.2  


 

 
   Year ended December 31, 2010  
 
   FDC Parent Company   Guarantor Subsidiaries   Non-Guarantor
Subsidiaries		   Consolidation Adjustments  
(in millions)
Source/(use)
  As previously
reported		   As corrected   As previously
reported		   As corrected   As previously
reported		   As corrected   As previously
reported		   As corrected  

CASH FLOWS FROM OPERATING ACTIVITIES

                                                  

Net (loss) income

   $ (1,021.8 ) $ (1.021.8 ) $ 458.6   $ 390.4   $ 218.2   $ 212.4   $ (501.9 ) $ (427.9 )

Other non-cash and non-operating items, net

    
(11.6
)		  
62.4		    
(207.4
)		  
(207.4
)		  
8.8		    
8.8		    
475.8		    
401.8		  

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

     (608.4 )   (564.4 )   107.0     66.6     216.9     213.3     (2.9 )   (2.9 )

Net cash (used in) provided by operating activities

     (1,624.3 )   (1,506.3 )   1,415.1     1,306.5     966.9     957.5     (3.0 )   (3.0 )

CASH FLOWS FROM FINANCING ACTIVITIES

                                                  

Intercompany

     1,682.5     1,564.5     (1,454.7 )   (1,346.1 )   (227.8 )   (218.4 )   —     —  

Net cash provided by (used in) financing activities

     1,460.1     1,342.1     (1,511.7 )   (1,403.1 )   (1,152.9 )   (1,143.5 )   551.2     551.2  

        As previously reported represents amounts reported in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 or Annual Report on Form 10-K for the year ended December 31, 2011.

        The following tables present the results of operations, financial position and cash flows of FDC ("FDC Parent Company"), the Guarantor subsidiaries, the Non-Guarantor subsidiaries and consolidation adjustments for the years ended December 31, 2012, 2011 and 2010 and as of December 31, 2012 and 2011 to arrive at the information for FDC on a consolidated basis.

 
   Year ended December 31, 2012  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Consolidation
Adjustments		   Consolidated  

Revenues:

                                

Transaction and processing service fees

   $ —   $ 4,180.5   $ 2,471.8   $ (200.2 ) $ 6,452.1  

Product sales and other

     —     569.8     355.8     (58.9 )   866.7  

Reimbursable debit network fees, postage and other

     —     2,430.3     953.8     (22.6 )   3,361.5  
                       

 

     —     7,180.6     3,781.4     (281.7 )   10,680.3  
                       

Expenses:

                                

Cost of services (exclusive of items shown below)

     —     1,829.6     1,234.1     (200.2 )   2,863.5  

Cost of products sold

     —     252.9     142.3     (58.9 )   336.3  

Selling, general and administrative

     89.4     1,217.3     518.7     —     1,825.4  

Reimbursable debit network fees, postage and other

     —     2,430.3     953.8     (22.6 )   3,361.5  

Depreciation and amortization

     8.1     718.9     464.6     —     1,191.6  

Other operating expenses:

                                

Restructuring, net

     (0.2 )   7.6     15.7     —     23.1  

Impairments

     —     5.1     —     —     5.1  
                       

 

     97.3     6,461.7     3,329.2     (281.7 )   9,606.5  
                       

Operating (loss) profit

     (97.3 )   718.9     452.2     —     1,073.8  
                       

Interest income

     0.1     0.3     8.4     —     8.8  

Interest expense

     (1,880.4 )   (7.3 )   (10.1 )   —     (1,897.8 )

Interest income (expense) from intercompany notes

     313.0     (320.0 )   7.0     —     —  

Other income (expense)

     (102.1 )   (8.1 )   15.9     —     (94.3 )

Equity earnings from consolidated subsidiaries

     522.6     179.7     —     (702.3 )   —  
                       

 

     (1,146.8 )   (155.4 )   21.2     (702.3 )   (1,983.3 )
                       

(Loss) income before income taxes and equity earnings in affiliates

     (1,244.1 )   563.5     473.4     (702.3 )   (909.5 )

Income tax (benefit) expense

     (543.2 )   273.7     45.5     —     (224.0 )

Equity earnings in affiliates

     —     157.4     0.8     —     158.2  
                       

Net (loss) income

     (700.9 )   447.2     428.7     (702.3 )   (527.3 )

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest

     —     —     61.9     111.7     173.6  
                       

Net (loss) income attributable to First Data Corporation

   $ (700.9 ) $ 447.2   $ 366.8   $ (814.0 ) $ (700.9 )
                       

Comprehensive (loss) income

   $ (654.7 ) $ 448.6   $ 421.5   $ (693.2 ) $ (477.8 )

Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest

     —     —     65.2     111.7     176.9  
                       

Comprehensive (loss) income attributable to First Data Corporation

   $ (654.7 ) $ 448.6   $ 356.3   $ (804.9 ) $ (654.7 )
                       


 

 
   Year ended December 31, 2011
(As Corrected)		  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Consolidation
Adjustments		   Consolidated  

Revenues:

                                

Transaction and processing service fees

   $ —   $ 4,055.9   $ 2,437.1   $ (163.0 ) $ 6,330.0  

Product sales and other

     —     551.4     358.2     (57.5 )   852.1  

Reimbursable debit network fees, postage and other

     —     2,445.0     1,159.1     (72.6 )   3,531.5  
                       

 

     —     7,052.3     3,954.4     (293.1 )   10,713.6  
                       

Expenses:

                                

Cost of services (exclusive of items shown below)

     —     1,896.4     1,155.0     (163.0 )   2,888.4  

Cost of products sold

     —     274.7     152.4     (57.5 )   369.6  

Selling, general and administrative

     107.8     1,095.4     490.5     —     1,693.7  

Reimbursable debit network fees, postage and other

     —     2,445.0     1,159.1     (72.6 )   3,531.5  

Depreciation and amortization

     8.3     743.1     493.6     —     1,245.0  

Other operating expenses:

                                

Restructuring, net

     (0.6 )   23.1     23.9     —     46.4  

Litigation and regulatory settlements

     (2.5 )   —     —     —     (2.5 )
                       

 

     113.0     6,477.7     3,474.5     (293.1 )   9,772.1  
                       

Operating (loss) profit

     (113.0 )   574.6     479.9     —     941.5  
                       

Interest income

     0.3     0.6     7.0     —     7.9  

Interest expense

     (1,812.9 )   (7.6 )   (12.6 )   —     (1,833.1 )

Interest income (expense) from intercompany notes

     306.7     (311.9 )   5.2     —     —  

Other income (expense)

     59.0     68.4     (3.3 )   —     124.1  

Equity earnings from consolidated subsidiaries

     452.2     133.9     —     (586.1 )   —  
                       

 

     (994.7 )   (116.6 )   (3.7 )   (586.1 )   (1,701.1 )
                       

(Loss) income before income taxes and equity earnings in affiliates

     (1,107.7 )   458.0     476.2     (586.1 )   (759.6 )

Income tax (benefit) expense

     (591.6 )   243.4     78.1     —     (270.1 )

Equity earnings in affiliates

     —     153.6     (0.2 )   —     153.4  
                       

Net (loss) income

     (516.1 )   368.2     397.9     (586.1 )   (336.1 )

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest

     —     —     59.6     120.4     180.0  
                       

Net (loss) income attributable to First Data Corporation

   $ (516.1 ) $ 368.2   $ 338.3   $ (706.5 ) $ (516.1 )
                       

Comprehensive (loss) income

     (477.6 )   418.2     319.0     (564.1 )   (304.5 )

Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest

     —     —     52.7     120.4     173.1  
                       

Comprehensive (loss) income attributable to First Data Corporation

   $ (477.6 ) $ 418.2   $ 266.3   $ (684.5 ) $ (477.6 )
                       


 

 
   Year ended December 31, 2010
(As Corrected)		  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Consolidation
Adjustments		   Consolidated  

Revenues:

                                

Transaction and processing service fees

   $ —   $ 4,001.7   $ 2,328.3   $ (148.5 ) $ 6,181.5  

Product sales and other

     —     542.6     319.3     (52.6 )   809.3  

Reimbursable debit network fees, postage and other

     —     2,299.8     1,160.3     (70.5 )   3,389.6  
                       

 

     —     6,844.1     3,807.9     (271.6 )   10,380.4  
                       

Expenses:

                                

Cost of services (exclusive of items shown below)

     —     1,949.6     1,222.2     (148.5 )   3,023.3  

Cost of products sold

     —     257.8     170.0     (52.6 )   375.2  

Selling, general and administrative

     264.7     877.2     437.8     —     1,579.7  

Reimbursable debit network fees, postage and other

     —     2,299.8     1,160.3     (70.5 )   3,389.6  

Depreciation and amortization

     7.6     937.9     468.9     —     1,414.4  

Other operating expenses:

                                

Restructuring, net

     12.7     46.0     13.3     —     72.0  

Impairments

     —     7.8     3.7     —     11.5  

Litigation and regulatory settlements

     —     (2.0 )   —     —     (2.0 )
                       

 

     285.0     6,374.1     3,476.2     (271.6 )   9,863.7  
                       

Operating (loss) profit

     (285.0 )   470.0     331.7     —     516.7  
                       

Interest income

     1.0     1.1     5.7     —     7.8  

Interest expense

     (1,775.2 )   (6.4 )   (15.0 )   —     (1,796.6 )

Interest income (expense) from intercompany notes

     230.3     (249.7 )   19.4     —     —  

Other income (expense)

     2.8     31.8     (24.5 )   (26.0 )   (15.9 )

Equity earnings from consolidated subsidiaries

     249.8     150.2     —     (400.0 )   —  
                       

 

     (1,291.3 )   (73.0 )   (14.4 )   (426.0 )   (1,804.7 )
                       

(Loss) income before income taxes and equity earnings in affiliates

     (1,576.3 )   397.0     317.3     (426.0 )   (1,288.0 )

Income tax (benefit) expense

     (554.5 )   124.3     106.4     —     (323.8 )

Equity earnings in affiliates

     —     117.7     1.5     (1.9 )   117.3  
                       

Net (loss) income

     (1,021.8 )   390.4     212.4     (427.9 )   (846.9 )

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest

     —     —     49.1     125.8     174.9  
                       

Net (loss) income attributable to First Data Corporation

   $ (1,021.8 ) $ 390.4   $ 163.3   $ (553.7 ) $ (1,021.8 )
                       

Comprehensive (loss) income

     (976.8 )   399.5     207.2     (435.1 )   (805.2 )

Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest

     —     —     46.0     125.8     171.8  
                       

Comprehensive (loss) income attributable to First Data Corporation

   $ (976.8 ) $ 399.5   $ 161.2   $ (560.9 ) $ (977.0 )
                       

 
   As of December 31, 2012  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Consolidation
Adjustments		   Consolidated  

ASSETS

                                

Current assets:

                                

Cash and cash equivalents

   $ 228.0   $ 37.2   $ 343.1   $ —   $ 608.3  

Accounts receivable, net of allowance for doubtful accounts

     4.4     879.7     963.6     —     1,847.7  

Settlement assets(a)

     —     5,097.1     4,076.7     —     9,173.8  

Intercompany notes receivable

     —     —     30.8     (30.8 )   —  

Other current assets

     73.0     145.3     35.3     —     253.6  
                       

Total current assets

     305.4     6,159.3     5,449.5     (30.8 )   11,883.4  
                       

Property and equipment, net of accumulated depreciation

     30.7     561.4     263.7     —     855.8  

Goodwill

     —     9,485.3     7,797.2     —     17,282.5  

Customer relationships, net of accumulated amortization

     —     2,071.7     1,684.6     —     3,756.3  

Other intangibles, net of accumulated amortization

     605.0     619.7     603.9     —     1,828.6  

Investment in affiliates

     —     1,375.2     37.9     —     1,413.1  

Long-term settlement assets(a)

     —     —     54.3     —     54.3  

Long-term intercompany receivables

     —     5,501.3     1,141.1     (6,642.4 )   —  

Long-term intercompany notes receivable

     3,397.3     270.0     8.4     (3,675.7 )   —  

Other long-term assets

     427.1     373.5     108.2     (83.8 )   825.0  

Investment in consolidated subsidiaries

     24,257.2     5,379.5     —     (29,636.7 )   —  
                       

Total assets

   $ 29,022.7   $ 31,796.9   $ 17,148.8   $ (40,069.4 ) $ 37,899.0  
                       

LIABILITIES AND EQUITY

                                

Current liabilities:

                                

Accounts payable

   $ 13.8   $ 141.8   $ 105.3   $ —   $ 260.9  

Short-term and current portion of long-term borrowings

     15.1     55.1     186.9     —     257.1  

Settlement obligations(a)

     —     5,097.1     4,129.2     —     9,226.3  

Intercompany notes payable

     30.8     —     —     (30.8 )   —  

Other current liabilities

     608.1     620.3     372.2     —     1,600.6  
                       

Total current liabilities

     667.8     5,914.3     4,793.6     (30.8 )   11,344.9  
                       

Long-term borrowings

     22,462.3     47.8     18.8     —     22,528.9  

Long-term deferred tax (assets) liabilities

     (1,079.7 )   1,512.7     76.5     —     509.5  

Long-term intercompany payables

     6,642.4     —     —     (6,642.4 )   —  

Long-term intercompany notes payable

     276.7     3,315.6     83.4     (3,675.7 )   —  

Other long-term liabilities

     651.7     222.7     31.3     (83.8 )   821.9  
                       

Total liabilities

     29,621.2     11,013.1     5,003.6     (10,432.7 )   35,205.2  
                       

Redeemable equity interest

     —     —     67.4     (67.4 )   —  

Redeemable noncontrolling interest

     —     —     —     67.4     67.4  

First Data Corporation stockholder's equity

     (598.5 )   20,783.8     5,598.9     (26,382.7 )   (598.5 )

Noncontrolling interests

     —     —     70.5     3,154.4     3,224.9  

Equity of consolidated alliance

     —     —     6,408.4     (6,408.4 )   —  
                       

Total equity

     (598.5 )   20,783.8     12,077.8     (29,636.7 )   2,626.4  
                       

Total liabilities and equity

   $ 29,022.7   $ 31,796.9   $ 17,148.8   $ (40,069.4 ) $ 37,899.0  
                       


 

 
   As of December 31, 2011 (As Corrected)  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Consolidation
Adjustments		   Consolidated  

ASSETS

                                

Current assets:

                                

Cash and cash equivalents

   $ 162.2   $ 37.1   $ 286.4   $ —   $ 485.7  

Accounts receivable, net of allowance for doubtful accounts

     25.3     939.4     883.9     —     1,848.6  

Settlement assets(a)

     —     6,093.2     4,565.1     —     10,658.3  

Intercompany notes receivable

     12.2     —     86.1     (98.3 )   —  

Other current assets

     45.7     212.0     65.2     —     322.9  
                       

Total current assets

     245.4     7,281.7     5,886.7     (98.3 )   13,315.5  
                       

Property and equipment, net of accumulated depreciation

     31.4     623.5     281.0     —     935.9  

Goodwill

     —     9,430.9     7,773.7     —     17,204.6  

Customer relationships, net of accumulated amortization

     —     2,468.4     1,957.0     —     4,425.4  

Other intangibles, net of accumulated amortization

     606.8     638.7     633.7     —     1,879.2  

Investment in affiliates

     —     1,452.8     37.8     —     1,490.6  

Long-term settlement assets(a)

     —     —     181.0     —     181.0  

Long-term intercompany receivables

     —     4,330.2     962.7     (5,292.9 )   —  

Long-term intercompany notes receivable

     3,229.4     251.5     59.0     (3,539.9 )   —  

Other long-term assets

     465.7     304.3     74.1     —     844.1  

Investment in consolidated subsidiaries

     23,797.4     5,843.0     —     (29,640.4 )   —  
                       

Total assets

   $ 28,376.1   $ 32,625.0   $ 17,846.7   $ (38,571.5 ) $ 40,276.3  
                       

LIABILITIES AND EQUITY

                                

Current liabilities:

                                

Accounts payable

   $ 7.1   $ 113.4   $ 85.4   $ —   $ 205.9  

Short-term and current portion of long-term borrowings

     0.3     39.6     93.5     —     133.4  

Settlement obligations(a)

     —     6,093.2     4,744.6     —     10,837.8  

Intercompany notes payable

     62.5     35.8     —     (98.3 )   —  

Other current liabilities

     690.5     544.5     408.1     —     1,643.1  
                       

Total current liabilities

     760.4     6,826.5     5,331.6     (98.3 )   12,820.2  
                       

Long-term borrowings

     22,422.4     69.0     30.3     —     22,521.7  

Long-term deferred tax (assets) liabilities

     (1,091.6 )   1,677.5     109.5     —     695.4  

Long-term intercompany payables

     5,292.9     —     —     (5,292.9 )   —  

Long-term intercompany notes payable

     260.6     3,196.8     82.5     (3,539.9 )   —  

Other long-term liabilities

     634.8     100.1     28.7     —     763.6  
                       

Total liabilities

     28,279.5     11,869.9     5,582.6     (8,931.1 )   36,800.9  
                       

Redeemable equity interest

     —     —     67.4     (67.4 )   —  

Redeemable noncontrolling interest

     —     —     —     67.4     67.4  

First Data Corporation stockholder's equity

     96.6     20,755.1     5,534.4     (26,289.5 )   96.6  

Noncontrolling interests

     —     —     60.8     3,250.6     3,311.4  

Equity of consolidated alliance

     —     —     6,601.5     (6,601.5 )   —  
                       

Total equity

     96.6     20,755.1     12,196.7     (29,640.4 )   3,408.0  
                       

Total liabilities and equity

   $ 28,376.1   $ 32,625.0   $ 17,846.7   $ (38,571.5 ) $ 40,276.3  
                       
(a)
The majority of the Guarantor settlement assets relate to FDC's merchant acquiring business. FDC believes the settlement assets are not available to satisfy any claims other than those related to the settlement liabilities.

 
   Year ended December 31, 2012  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Consolidation
Adjustments		   Consolidated  

CASH FLOWS FROM OPERATING ACTIVITIES

                                

Net (loss) income

   $ (700.9 ) $ 447.2   $ 428.7   $ (702.3 ) $ (527.3 )

Adjustments to reconcile to net cash (used in) provided by operating activities:

                                

Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues)

     8.1     844.5     478.3     —     1,330.9  

Charges (gains) related to other operating expenses and other income (expense)

     101.9     20.8     (0.2 )   —     122.5  

Other non-cash and non-operating items, net

     (483.9 )   (265.8 )   7.2     702.3     (40.2 )

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

     (461.8 )   515.0     (171.7 )   —     (118.5 )
                       

Net cash (used in) provided by operating activities

     (1,536.6 )   1,561.7     742.3     —     767.4  
                       

CASH FLOWS FROM INVESTING ACTIVITIES

                                

Current year acquisitions, net of cash acquired

     (33.0 )   0.1     —     —     (32.9 )

Contributions to equity method investments

     —     (7.9 )   —     —     (7.9 )

Payments related to other businesses previously acquired

     —     (4.4 )   —     —     (4.4 )

Proceeds from sale of property and equipment

     —     7.1     0.9     —     8.0  

Additions to property and equipment

     (2.6 )   (88.9 )   (101.6 )   —     (193.1 )

Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs

     (0.8 )   (137.8 )   (38.6 )   —     (177.2 )

Other investing activities

     228.3     219.0     6.7     (443.6 )   10.4  
                       

Net cash provided by (used in) investing activities

     191.9     (12.8 )   (132.6 )   (443.6 )   (397.1 )
                       

CASH FLOWS FROM FINANCING ACTIVITIES

                                

Short-term borrowings, net

     —     —     99.1     —     99.1  

Accrued interest funded upon issuance of notes

     6.5     —     —     —     6.5  

Debt modification proceeds and related financing costs

     10.8     —     —     —     10.8  

Principal payments on long-term debt

     (3.4 )   (56.2 )   (23.7 )   —     (83.3 )

Proceeds from sale-leaseback transactions

     —     13.8     —     —     13.8  

Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interests

     —     —     (54.0 )   (207.9 )   (261.9 )

Distributions paid to equity holders

     —     —     (424.0 )   424.0     —  

Purchase of noncontrolling interest

     —     —     (25.1 )   —     (25.1 )

Redemption of Parent's redeemable common stock

     (1.7 )   —     —     —     (1.7 )

Cash dividends

     (6.7 )   —     (227.5 )   227.5     (6.7 )

Intercompany

     1,405.0     (1,502.2 )   97.2     —     —  
                       

Net cash provided by (used in) financing activities

     1,410.5     (1,544.6 )   (558.0 )   443.6     (248.5 )

Effect of exchange rate changes on cash and cash equivalents

     —     (4.2 )   5.0     —     0.8  
                       

Change in cash and cash equivalents

     65.8     0.1     56.7     —     122.6  
                       

Cash and cash equivalents at beginning of period

     162.2     37.1     286.4     —     485.7  
                       

Cash and cash equivalents at end of period

   $ 228.0   $ 37.2   $ 343.1   $ —   $ 608.3  
                       


 

 
   Year ended December 31, 2011
(As Corrected)		  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Consolidation
Adjustments		   Consolidated  

CASH FLOWS FROM OPERATING ACTIVITIES

                                

Net (loss) income

   $ (516.1 ) $ 368.2   $ 397.9   $ (586.1 ) $ (336.1 )

Adjustments to reconcile to net cash (used in) provided by operating activities:

                                

Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues)

     8.3     827.4     508.5     —     1,344.2  

(Gains) charges related to other operating expenses and other income (expense)

     (59.6 )   (45.3 )   27.2     —     (77.7 )

Other non-cash and non-operating items, net

     (360.3 )   (209.5 )   11.4     586.1     27.7  

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

     (327.0 )   383.8     100.7     —     157.5  
                       

Net cash (used in) provided by operating activities

     (1,254.7 )   1,324.6     1,045.7     —     1,115.6  
                       

CASH FLOWS FROM INVESTING ACTIVITIES

                                

Current year acquisitions, net of cash acquired

     —     (19.1 )   (0.1 )   —     (19.2 )

Contributions to equity method investments

     —     (161.5 )   —     —     (161.5 )

Payments related to other businesses previously acquired

     —     —     3.2     —     3.2  

Proceeds from dispositions, net of expenses paid and cash disposed

     —     —     1.7     —     1.7  

Proceeds from sale of property and equipment

     —     14.3     2.8     —     17.1  

Additions to property and equipment

     (4.6 )   (101.3 )   (97.0 )   —     (202.9 )

Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs

     (1.0 )   (161.6 )   (39.3 )   —     (201.9 )

Distributions and dividends from subsidiaries

     109.7     294.5     —     (404.2 )   —  

Other investing activities

     1.5     6.9     (3.5 )   —     4.9  
                       

Net cash provided by (used in) investing activities

     105.6     (127.8 )   (132.2 )   (404.2 )   (558.6 )
                       

CASH FLOWS FROM FINANCING ACTIVITIES

                                

Short-term borrowings, net

     —     —     (107.3 )   —     (107.3 )

Debt modification and related financing costs

     (39.7 )   —     —     —     (39.7 )

Principal payments on long-term debt

     (32.9 )   (52.7 )   (18.9 )   —     (104.5 )

Proceeds from sale-leaseback transactions

     —     2.5     11.7     —     14.2  

Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interests

     —     —     (44.2 )   (283.1 )   (327.3 )

Contributions from noncontrolling interest

     —     —     0.8     —     0.8  

Distributions paid to equity holders

     —     —     (577.6 )   577.6     —  

Redemption of Parent's redeemable common stock

     (0.5 )   —     —     —     (0.5 )

Cash dividends

     (0.2 )   —     (109.7 )   109.7     (0.2 )

Intercompany

     1,220.5     (1,116.4 )   (104.1 )   —     —  
                       

Net cash provided by (used in) financing activities

     1,147.2     (1,166.6 )   (949.3 )   404.2     (564.5 )

Effect of exchange rate changes on cash and cash equivalents

     —     (14.2 )   (2.1 )   —     (16.3 )
                       

Change in cash and cash equivalents

     (1.9 )   16.0     (37.9 )   —     (23.8 )
                       

Cash and cash equivalents at beginning of period

     164.1     21.1     324.3     —     509.5  
                       

Cash and cash equivalents at end of period

   $ 162.2   $ 37.1   $ 286.4   $ —   $ 485.7  
                       


 

 
   Year ended December 31, 2010
(As Corrected)		  
(in millions)
  FDC Parent
Company		   Guarantor
Subsidiaries		   Non-
Guarantor
Subsidiaries		   Consolidation
Adjustments		   Consolidated  

CASH FLOWS FROM OPERATING ACTIVITIES

                                

Net (loss) income

   $ (1,021.8 ) $ 390.4   $ 212.4   $ (427.9 ) $ (846.9 )

Adjustments to reconcile to net cash (used in) provided by operating activities:

                                

Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues)

     7.6     1,036.9     481.5     —     1,526.0  

Charges related to other operating expenses and other income (expense)

     9.9     20.0     41.5     26.0     97.4  

Other non-cash and non-operating items, net

     62.4     (207.4 )   8.8     401.8     265.6  

(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions

     (564.4 )   66.6     213.3     (2.9 )   (287.4 )
                       

Net cash (used in) provided by operating activities

     (1,506.3 )   1,306.5     957.5     (3.0 )   754.7  
                       

CASH FLOWS FROM INVESTING ACTIVITIES

                                

Current year acquisitions, net of cash acquired

     —     (1.7 )   (0.1 )   —     (1.8 )

Contributions to equity method investments

     —     (1.4 )   —     —     (1.4 )

Payments related to other businesses previously acquired

     —     —     (1.4 )   —     (1.4 )

Proceeds from dispositions, net of expenses paid and cash disposed

     —     —     21.2     —     21.2  

Proceeds from sale of property and equipment

     —     1.4     4.1     —     5.5  

Additions to property and equipment

     (4.2 )   (113.0 )   (92.9 )   —     (210.1 )

Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs

     (1.7 )   (116.9 )   (41.0 )   —     (159.6 )

Distributions and dividends from subsidiaries

     225.8     187.9     —     (413.7 )   —  

Other investing activities

     3.8     135.1     14.0     (134.5 )   18.4  
                       

Net cash provided by (used in) investing activities

     223.7     91.4     (96.1 )   (548.2 )   (329.2 )
                       

CASH FLOWS FROM FINANCING ACTIVITIES

                                

Short-term borrowings, net

     —     —     75.1     —     75.1  

Debt modification and related financing costs

     (61.2 )   —     —     —     (61.2 )

Principal payments on long-term debt

     (143.8 )   (57.0 )   (19.6 )   —     (220.4 )

Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interests

     —     —     (31.0 )   (185.1 )   (216.1 )

Purchase of noncontrolling interest

     —     —     —     (213.3 )   (213.3 )

Distributions paid to redeemable equity holders             

     —     —     (7.5 )   7.5     —  

Distributions paid to equity holders

     —     —     (368.5 )   368.5     —  

Redemption of Parent's redeemable common stock

     (2.5 )   —     —     —     (2.5 )

Redemption of redeemable equity of consolidated alliance

     —     —     (347.8 )   347.8     —  

Cash dividends

     (14.9 )   —     (225.8 )   225.8     (14.9 )

Intercompany

     1,564.5     (1,346.1 )   (218.4 )   —     —  
                       

Net cash provided by (used in) financing activities

     1,342.1     (1,403.1 )   (1,143.5 )   551.2     (653.3 )

Effect of exchange rate changes on cash and cash equivalents

     —     0.9     (0.6 )   —     0.3  
                       

Change in cash and cash equivalents

     59.5     (4.3 )   (282.7 )   —     (227.5 )
                       

Cash and cash equivalents at beginning of period

     104.6     25.4     607.0     —     737.0  
                       

Cash and cash equivalents at end of period

   $ 164.1   $ 21.1   $ 324.3   $ —   $ 509.5