Subsidiary Guarantors of Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2014

Condensed Consolidating Statement of Income and Comprehensive Income

Condensed Consolidating Statement of Income and Comprehensive Income

Three Months Ended June 30, 2014

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	768		$	326		$	(43	)	$	1,051
Product		—			191			28			(17	)		202
Total revenue		—			959			354			(60	)		1,253
Expenses:
Cost of processing and services		—			387			188			(43	)		532
Cost of product		—			163			25			(17	)		171
Selling, general and administrative		29			162			52			—			243
Total expenses		29			712			265			(60	)		946
Operating income (loss)		(29	)		247			89			—			307
Interest expense, net		(32	)		(6	)		(2	)		—			(40	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(61	)		241			87			—			267
Income tax (provision) benefit		23			(92	)		(32	)		—			(101	)
Income from investment in unconsolidated affiliate		—			—			—			—			—
Equity in earnings of consolidated affiliates		204			—			—			(204	)		—
Income from continuing operations		166			149			55			(204	)		166
Income (loss) from discontinued operations, net of income taxes		—			—			—			—			—
Net income	$	166		$	149		$	55		$	(204	)	$	166
Comprehensive income	$	171		$	149		$	58		$	(207	)	$	171

Condensed Consolidating Statement of Income and Comprehensive Income

Three Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	724		$	332		$	(41	)	$	1,015
Product		—			170			29			(16	)		183
Total revenue		—			894			361			(57	)		1,198
Expenses:
Cost of processing and services		—			356			208			(41	)		523
Cost of product		—			152			21			(16	)		157
Selling, general and administrative		31			160			54			—			245
Total expenses		31			668			283			(57	)		925
Operating income (loss)		(31	)		226			78			—			273
Interest expense, net		(32	)		(5	)		(4	)		—			(41	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(63	)		221			74			—			232
Income tax (provision) benefit		26			(82	)		(25	)		—			(81	)
Income from investment in unconsolidated affiliate		—			1			—			—			1
Equity in earnings of consolidated affiliates		189			—			—			(189	)		—
Income from continuing operations		152			140			49			(189	)		152
Loss from discontinued operations, net of income taxes		(1	)		—			—			—			(1	)
Net income	$	151		$	140		$	49		$	(189	)	$	151
Comprehensive income	$	146		$	140		$	44		$	(184	)	$	146

Condensed Consolidating Statement of Income and Comprehensive Income

Six Months Ended June 30, 2014

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	1,523		$	641		$	(86	)	$	2,078
Product		—			396			49			(36	)		409
Total revenue		—			1,919			690			(122	)		2,487
Expenses:
Cost of processing and services		—			783			376			(86	)		1,073
Cost of product		—			337			50			(36	)		351
Selling, general and administrative		49			327			109			—			485
Total expenses		49			1,447			535			(122	)		1,909
Operating income (loss)		(49	)		472			155			—			578
Interest expense, net		(64	)		(13	)		(4	)		—			(81	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(113	)		459			151			—			497
Income tax (provision) benefit		60			(172	)		(55	)		—			(167	)
Income from investment in unconsolidated affiliate		—			4			—			—			4
Equity in earnings of consolidated affiliates		387			—			—			(387	)		—
Income from continuing operations		334			291			96			(387	)		334
Income (loss) from discontinued operations, net of income taxes		—			—			—			—			—
Net income	$	334		$	291		$	96		$	(387	)	$	334
Comprehensive income	$	345		$	291		$	101		$	(392	)	$	345

Condensed Consolidating Statement of Income and Comprehensive Income

Six Months Ended June 30, 2013

(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Processing and services	$	—		$	1,437		$	625		$	(81	)	$	1,981
Product		—			352			51			(34	)		369
Total revenue		—			1,789			676			(115	)		2,350
Expenses:
Cost of processing and services		—			740			386			(81	)		1,045
Cost of product		—			339			42			(34	)		347
Selling, general and administrative		59			304			111			—			474
Total expenses		59			1,383			539			(115	)		1,866
Operating income (loss)		(59	)		406			137			—			484
Interest expense, net		(64	)		(11	)		(7	)		—			(82	)
Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate		(123	)		395			130			—			402
Income tax (provision) benefit		52			(144	)		(47	)		—			(139	)
Income from investment in unconsolidated affiliate		—			6			—			—			6
Equity in earnings of consolidated affiliates		340			—			—			(340	)		—
Income from continuing operations		269			257			83			(340	)		269
Loss from discontinued operations, net of income taxes		(1	)		—			—			—			(1	)
Net income	$	268		$	257		$	83		$	(340	)	$	268
Comprehensive income	$	261		$	257		$	73		$	(330	)	$	261

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

June 30, 2014

(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	36	$	61	$	232	$	—		$	329
Trade accounts receivable, net		—		475		255		—			730
Prepaid expenses and other current assets		49		250		167		—			466
Total current assets		85		786		654		—			1,525
Due from consolidated affiliates		—		1,974		509		(2,483	)		—
Investments in consolidated affiliates		10,504		—		—		(10,504	)		—
Intangible assets, net		22		1,797		251		—			2,070
Goodwill		—		4,154		1,063		—			5,217
Other long-term assets		39		446		106		—			591
Total assets	$	10,650	$	9,157	$	2,583	$	(12,987	)	$	9,403
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses	$	116	$	508	$	210	$	—		$	834
Current maturities of long-term debt		90		2		—		—			92
Deferred revenue		—		275		167		—			442
Total current liabilities		206		785		377		—			1,368
Long-term debt		3,755		1		—		—			3,756
Due to consolidated affiliates		2,483		—		—		(2,483	)		—
Other long-term liabilities		731		30		43		—			804
Total liabilities		7,175		816		420		(2,483	)		5,928
Total shareholders’ equity		3,475		8,341		2,163		(10,504	)		3,475
Total liabilities and shareholders’ equity	$	10,650	$	9,157	$	2,583	$	(12,987	)	$	9,403

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
Due from consolidated affiliates		—		1,683		425		(2,108	)		—
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	$	8,883	$	2,463	$	(12,230	)	$	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 consolidated affiliates		2,108		—		—		(2,108	)		—
Other long-term liabilities		773		25		42		—			840
Total liabilities		6,812		784		440		(2,108	)		5,928
Total shareholders’ equity		3,585		8,099		2,023		(10,122	)		3,585
Total liabilities and shareholders’ equity	$	10,397	$	8,883	$	2,463	$	(12,230	)	$	9,513

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2014

(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	$	(4	)	$	436		$	137		$	—		$	569
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(2	)		(104	)		(44	)		—			(150	)
Other investing activities		—			(346	)		(46	)		393			1
Net cash used in investing activities from continuing operations		(2	)		(450	)		(90	)		393			(149	)
Cash flows from financing activities:
Debt proceeds		544			—			—			—			544
Debt repayments		(544	)		—			—			—			(544	)
Issuance of treasury stock		26			—			—			—			26
Purchases of treasury stock		(528	)		—			—			—			(528	)
Other financing activities		405			(1	)		—			(393	)		11
Net cash used in financing activities from continuing operations		(97	)		(1	)		—			(393	)		(491	)
Net change in cash and cash equivalents from continuing operations		(103	)		(15	)		47			—			(71	)
Net cash flows from (to) discontinued operations		—			—			—			—			—
Beginning balance		139			76			185			—			400
Ending balance	$	36		$	61		$	232		$	—		$	329

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 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	$	(42	)	$	324		$	115		$	—		$	397
Cash flows from investing activities:
Capital expenditures, including capitalization of software costs		(2	)		(79	)		(29	)		—			(110	)
Payment for acquisition of business, net of cash acquired		(55	)		39			—			—			(16	)
Dividend from unconsolidated affiliate		—			116			—			—			116
Other investing activities		(1	)		(433	)		(75	)		509			—
Net cash used in investing activities from continuing operations		(58	)		(357	)		(104	)		509			(10	)
Cash flows from financing activities:
Debt proceeds		1,210			—			—			—			1,210
Debt repayments		(1,444	)		—			—			—			(1,444	)
Issuance of treasury stock		24			—			—			—			24
Purchases of treasury stock		(254	)		—			—			—			(254	)
Other financing activities		515			(1	)		2			(509	)		7
Net cash (used in) provided by financing activities from continuing operations		51			(1	)		2			(509	)		(457	)
Net change in cash and cash equivalents from continuing operations		(49	)		(34	)		13			—			(70	)
Net cash flows from (to) discontinued operations		(4	)		36			—			—			32
Beginning balance		85			66			207			—			358
Ending balance	$	32		$	68		$	220		$	—		$	320