Subsidiary Guarantors of Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Consolidating Statement of Income and Comprehensive Income

Condensed Consolidating Statement of Income and Comprehensive Income

Year ended December 31, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	-		$	2,919		$	1,281		$	(165	)	$	4,035
Product		-			734			109			(64	)		779
Total revenue		-			3,653			1,390			(229	)		4,814
Expenses:
Cost of processing and services		-			1,481			765			(165	)		2,081
Cost of product		-			667			92			(64	)		695
Selling, general and administrative		110			632			235			-			977
Total expenses		110			2,780			1,092			(229	)		3,753
Operating income (loss)		(110	)		873			298			-			1,061
Interest expense, net		(129	)		(20	)		(14	)		-			(163	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(239	)		853			284			-			898
Income tax (provision) benefit		102			(327	)		(103	)		-			(328	)
Income from investment in unconsolidated affiliate		-			80			-			-			80
Equity in earnings of consolidated affiliates		787			-			-			(787	)		-
Income from continuing operations		650			606			181			(787	)		650
Loss from discontinued operations, net of income taxes		(2	)		-			-			-			(2	)
Net income	$	648		$	606		$	181		$	(787	)	$	648
Comprehensive income	$	648		$	606		$	173		$	(779	)	$	648

Condensed Consolidating Statement of Income and Comprehensive Income

Year ended December 31, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	-		$	2,596		$	1,226		$	(159	)	$	3,663
Product		-			717			114			(58	)		773
Total revenue		-			3,313			1,340			(217	)		4,436
Expenses:
Cost of processing and services		-			1,385			710			(159	)		1,936
Cost of product		-			615			71			(58	)		628
Selling, general and administrative		104			499			221			-			824
Total expenses		104			2,499			1,002			(217	)		3,388
Operating income (loss)		(104	)		814			338			-			1,048
Interest expense, net		(104	)		(57	)		(6	)		-			(167	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(208	)		757			332			-			881
Income tax (provision) benefit		103			(280	)		(123	)		-			(300	)
Income from investment in unconsolidated affiliate		-			11			-			-			11
Equity in earnings of consolidated affiliates		697			-			-			(697	)		-
Income from continuing operations		592			488			209			(697	)		592
Income from discontinued operations, net of income taxes		19			5			-			(5	)		19
Net income	$	611		$	493		$	209		$	(702	)	$	611
Comprehensive income	$	629		$	493		$	213		$	(706	)	$	629

Condensed Consolidating Statement of Income and Comprehensive Income

Year ended December 31, 2011

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	-		$	2,534		$	1,094		$	(133	)	$	3,495
Product		-			709			147			(62	)		794
Total revenue		-			3,243			1,241			(195	)		4,289
Expenses:
Cost of processing and services		-			1,389			647			(133	)		1,903
Cost of product		-			572			91			(62	)		601
Selling, general and administrative		95			490			210			-			795
Total expenses		95			2,451			948			(195	)		3,299
Operating income (loss)		(95	)		792			293			-			990
Interest expense, net		(140	)		(33	)		(9	)		-			(182	)
Loss on early debt extinguishment		(85	)		-			-			-			(85	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(320	)		759			284			-			723
Income tax (provision) benefit		133			(282	)		(105	)		-			(254	)
Income from investment in unconsolidated affiliate		-			18			-			-			18
Equity in earnings of consolidated affiliates		681			-			-			(681	)		-
Income from continuing operations		494			495			179			(681	)		487
(Loss) income from discontinued operations, net of income taxes		(22	)		4			3			-			(15	)
Net income	$	472		$	499		$	182		$	(681	)	$	472
Comprehensive income	$	444		$	499		$	174		$	(673	)	$	444

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

December 31, 2013

(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	139	$	76		$	185		$	-		$	400
Trade accounts receivable, net		-		465			286			-			751
Prepaid expenses and other current assets		81		195			145			-			421
Total current assets		220		736			616			-			1,572
Investments in consolidated affiliates		10,122		-			-			(10,122	)		-
Intangible assets, net		22		1,866			254			-			2,142
Goodwill		-		4,150			1,066			-			5,216
Other long-term assets		33		448			102			-			583
Total assets	$	10,397	$	7,200		$	2,038		$	(10,122	)	$	9,513
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	87	$	463		$	206		$	-		$	756
Current maturities of long-term debt		90		2			-			-			92
Deferred revenue		-		292			192			-			484
Total current liabilities		177		757			398			-			1,332
Long-term debt		3,754		2			-			-			3,756
Due to (from) consolidated affiliates		2,108		(1,683	)		(425	)		-			-
Other long-term liabilities		773		25			42			-			840
Total liabilities		6,812		(899	)		15			-			5,928
Total shareholders’ equity		3,585		8,099			2,023			(10,122	)		3,585
Total liabilities and shareholders’ equity	$	10,397	$	7,200		$	2,038		$	(10,122	)	$	9,513

Condensed Consolidating Balance Sheet

December 31, 2012

(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	85	$	66		$	207		$	-		$	358
Trade accounts receivable, net		-		403			258			-			661
Prepaid expenses and other current assets		45		186			160			-			391
Assets of discontinued operations		-		33			-			-			33
Total current assets		130		688			625			-			1,443
Investments in consolidated affiliates		8,498		-			-			(8,498	)		-
Intangible assets, net		22		1,479			243			-			1,744
Goodwill		-		3,695			1,010			-			4,705
Other long-term assets		55		445			105			-			605
Total assets	$	8,705	$	6,307		$	1,983		$	(8,498	)	$	8,497
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	73	$	417		$	231		$	-		$	721
Current maturities of long-term debt		-		2			-			-			2
Deferred revenue		-		213			166			-			379
Liabilities of discontinued operations		-		3			-			-			3
Total current liabilities		73		635			397			-			1,105
Long-term debt		3,223		4			1			-			3,228
Due to (from) consolidated affiliates		1,295		(988	)		(307	)		-			-
Other long-term liabilities		697		22			28			-			747
Total liabilities		5,288		(327	)		119			-			5,080
Total shareholders’ equity		3,417		6,634			1,864			(8,498	)		3,417
Total liabilities and shareholders’ equity	$	8,705	$	6,307		$	1,983		$	(8,498	)	$	8,497

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Year ended December 31, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(61	)	$	842		$	258		$	-		$	1,039
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(3	)		(169	)		(64	)		-			(236	)
Payments for acquisitions of businesses, net of cash acquired		(55	)		25			-			-			(30	)
Dividend from unconsolidated affiliate		-			116			-			-			116
Net proceeds from sale of investments		-			2			2			-			4
Other investing activities		1,041			3			(3	)		(1,043	)		(2	)
Net cash (used in) provided by investing activities from continuing operations		983			(23	)		(65	)		(1,043	)		(148	)
Cash flows from financing activities:
Proceeds from long-term debt		2,252			-			-			-			2,252
Repayments of long-term debt		(2,589	)		(1	)		-			-			(2,590	)
Issuance of treasury stock		49			-			-			-			49
Purchases of treasury stock		(578	)		-			-			-			(578	)
Other financing activities		7			(841	)		(215	)		1,043			(6	)
Net cash used in financing activities from continuing operations		(859	)		(842	)		(215	)		1,043			(873	)
Net change in cash and cash equivalents from continuing operations		63			(23	)		(22	)		-			18
Net cash flows from (to) discontinued operations		(9	)		33			-			-			24
Beginning balance		85			66			207			-			358
Ending balance	$	139		$	76		$	185		$	-		$	400

Condensed Consolidating Statement of Cash Flows

Year ended December 31, 2012

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(168	)	$	722		$	272		$	-		$	826
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(4	)		(142	)		(47	)		-			(193	)
Dividend from unconsolidated affiliate		-			32			-			-			32
Net proceeds from sale of investments		-			2			26			-			28
Other investing activities		815			-			(1	)		(817	)		(3	)
Net cash (used in) provided by investing activities from continuing operations		811			(108	)		(22	)		(817	)		(136	)
Cash flows from financing activities:
Proceeds from long-term debt		1,469			-			-			-			1,469
Repayments of long-term debt		(1,592	)		(6	)		(44	)		-			(1,642	)
Issuance of treasury stock		96			-			-			-			96
Purchases of treasury stock		(634	)		-			-			-			(634	)
Other financing activities		-			(620	)		(192	)		817			5
Net cash used in financing activities from continuing operations		(661	)		(626	)		(236	)		817			(706	)
Net change in cash and cash equivalents from continuing operations		(18	)		(12	)		14			-			(16	)
Net cash flows from discontinued operations		30			7			-			-			37
Beginning balance		73			71			193			-			337
Ending balance	$	85		$	66		$	207		$	-		$	358

Condensed Consolidating Statement of Cash Flows

Year ended December 31, 2011

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities from continuing operations	$	(10	)	$	729		$	226		$	-		$	945
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(13	)		(142	)		(35	)		-			(190	)
Payments for acquisitions of businesses, net of cash acquired		-			(473	)		(38	)		-			(511	)
Dividend from unconsolidated affiliate		-			42			-			-			42
Net (purchases of) sale proceeds from investments		-			3			(7	)		-			(4	)
Other investing activities		311			-			-			(311	)		-
Net cash (used in) provided by investing activities from continuing operations		298			(570	)		(80	)		(311	)		(663	)
Cash flows from financing activities:
Proceeds from long-term debt		1,143			-			46			-			1,189
Repayments of long-term debt, including premium and costs		(1,223	)		(3	)		-			-			(1,226	)
Issuance of treasury stock		73			-			-			-			73
Purchases of treasury stock		(533	)		-			-			-			(533	)
Other financing activities		(2	)		(159	)		(151	)		311			(1	)
Net cash used in financing activities from continuing operations		(542	)		(162	)		(105	)		311			(498	)
Net change in cash and cash equivalents from continuing operations		(254	)		(3	)		41			-			(216	)
Net cash flows (to) from discontinued operations		(16	)		6			-			-			(10	)
Beginning balance		343			68			152			-			563
Ending balance	$	73		$	71		$	193		$	-		$	337