Delaware | 001-11073 | 47-0731996 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
225 LIBERTY STREET 29th FLOOR NEW YORK, NEW YORK | 10281 |
(Address of Principal Executive Offices) | (Zip Code) |
Item | 9.01 Financial Statements and Exhibits. |
(d) | The following is a list of the Exhibits filed or furnished with this report. |
Exhibit Number | Description of Exhibit |
Press Release issued by FDC on October 30, 2017 | |
• | Q3 consolidated revenue of $3.1 billion, up 5% |
• | Q3 total segment revenue of $1.9 billion, up 5%; up 3% on an organic constant currency basis(a) |
• | Q3 net income of $296 million, up 124%; diluted EPS of $0.31, up 121% |
• | Q3 adjusted net income of $373 million, up 20%; adjusted diluted EPS of $0.40, up 18% |
• | Q3 total segment EBITDA of $787 million, up 6%; up 5% on an organic constant currency basis(a) |
• | Q3 cash flow from operations of $581 million; free cash flow of $370 million |
• | Announced definitive agreement to acquire BluePay |
(a) | Organic constant currency growth (“Organic CC growth”) is defined as reported growth adjusted for the following: (1) excludes the impacts of year-over-year currency rate changes in the current period; (2) excludes the results of significant divestitures in the prior year period; and (3) includes the results of significant acquisitions in the prior year period. Impacts to growth rates from acquisitions/divestitures only relate to the GBS segment. |
• | Disburse-to-debit: First Data's innovative solution for the gig economy allows businesses to disburse funds in real-time directly to a debit card. Faster payouts lead to increased loyalty, satisfaction, and reduced costs for businesses. |
• | Breeze mobile apps: First Data and CareCloud joined forces to introduce the mobile app, Breeze. Backed by the power of First Data's Clover platform, Breeze’s mobile and web apps allow patients to manage their doctor appointments from their smart device, fill out necessary insurance and medical forms, and manage payments anywhere, anytime. |
• | Apple/Clover launch: First Data and Apple announced the enablement of Apple Pay loyalty and gift cards through integration with First Data’s Clover platform. Developers and third party loyalty providers will also be able to leverage the Clover platform to facilitate Apple Pay for merchant clients. First Data’s Clover Go devices will be available in Apple retail stores across the U.S. |
• | UnionPay International partnership: First Data and UnionPay International will partner to expand UnionPay card acceptance in the United States, both with in-store and online purchases. The partnership allows Chinese visitors to use their UnionPay chip credit and debit cards at First Data’s U.S. merchant clients. |
• | Amazon Pay mobile app accepted through First Data's Clover POS: certain restaurants utilizing First Data's Clover POS can now accept takeout orders directly from the Amazon mobile app. |
• | Financial Services developer portal: First Data has launched a developer portal for our financial services clients in North America. This portal offers an extensive catalog of APIs to streamline how our issuing clients engage with us. Through the developer portal, our clients can now introduce enhancements and changes to their solutions faster and in a more frictionless way. |
Peter Poillon Investor Relations First Data 212-266-3565 Peter.Poillon@firstdata.com | Liidia Liuksila Public Relations First Data 212-515-0174 Liidia.Liuksila@firstdata.com |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2017 | 2016 | % Change | Constant Currency % Change | 2017 | 2016 | % Change | Constant Currency % Change | ||||||||||||||||
Revenues: | |||||||||||||||||||||||
Transaction and processing service fees(a) | $ | 1,733 | $ | 1,693 | 2% | 2% | $ | 4,982 | $ | 4,953 | 1% | 1% | |||||||||||
Product sales and other(a) | 348 | 307 | 13% | 14% | 1,016 | 893 | 14% | 15% | |||||||||||||||
Total revenues (excluding reimbursable items) | 2,081 | 2,000 | 4% | 4% | 5,998 | 5,846 | 3% | 3% | |||||||||||||||
Reimbursable debit network fees, postage, and other | 995 | 936 | 6% | 6% | 2,904 | 2,795 | 4% | 4% | |||||||||||||||
Total revenues | 3,076 | 2,936 | 5% | 5% | 8,902 | 8,641 | 3% | 3% | |||||||||||||||
Expenses: | |||||||||||||||||||||||
Cost of services (exclusive of items shown below) | 698 | 711 | (2)% | (2)% | 2,089 | 2,140 | (2)% | (2)% | |||||||||||||||
Cost of products sold | 96 | 87 | 10% | 9% | 267 | 251 | 6% | 7% | |||||||||||||||
Selling, general, and administrative | 564 | 499 | 13% | 13% | 1,607 | 1,563 | 3% | 3% | |||||||||||||||
Depreciation and amortization | 248 | 237 | 5% | 4% | 713 | 713 | —% | —% | |||||||||||||||
Other operating expenses | 57 | 12 | 375% | 375% | 108 | 57 | 89% | 91% | |||||||||||||||
Total expenses (excluding reimbursable items) | 1,663 | 1,546 | 8% | 7% | 4,784 | 4,724 | 1% | 2% | |||||||||||||||
Reimbursable debit network fees, postage, and other | 995 | 936 | 6% | 6% | 2,904 | 2,795 | 4% | 4% | |||||||||||||||
Total expenses | 2,658 | 2,482 | 7% | 7% | 7,688 | 7,519 | 2% | 2% | |||||||||||||||
Operating profit | 418 | 454 | (8)% | 1,214 | 1,122 | 8% | |||||||||||||||||
Interest expense, net | (234 | ) | (263 | ) | (11)% | (706 | ) | (810 | ) | (13)% | |||||||||||||
Loss on debt extinguishment | (1 | ) | (3 | ) | (67)% | (72 | ) | (58 | ) | 24% | |||||||||||||
Other (expense) income | (4 | ) | (30 | ) | (87)% | (7 | ) | 14 | (150)% | ||||||||||||||
Income before income taxes and equity earnings in affiliates | 179 | 158 | 13% | 429 | 268 | 60% | |||||||||||||||||
Income tax (benefit) expense | (106 | ) | 24 | (542)% | (66 | ) | 57 | (216)% | |||||||||||||||
Equity earnings in affiliates | 55 | 66 | (17)% | 167 | 198 | (16)% | |||||||||||||||||
Net income | 340 | 200 | 70% | 662 | 409 | 62% | |||||||||||||||||
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest | 44 | 68 | (35)% | 145 | 181 | (20)% | |||||||||||||||||
Net income attributable to First Data Corporation | $ | 296 | $ | 132 | 124% | $ | 517 | $ | 228 | 127% | |||||||||||||
Net income attributable to First Data Corporation per share: | |||||||||||||||||||||||
Basic | $ | 0.32 | $ | 0.15 | 113% | $ | 0.57 | $ | 0.25 | 128% | |||||||||||||
Diluted | $ | 0.31 | $ | 0.14 | 121% | $ | 0.55 | $ | 0.25 | 120% | |||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | 918 | 905 | 915 | 900 | |||||||||||||||||||
Diluted | 944 | 923 | 938 | 918 | |||||||||||||||||||
(a) | Includes processing fees, administrative service fees, and other fees charged to merchant alliances accounted for under the equity method of $56 million and $162 million for the three and nine months ended September 30, 2017, respectively, and $52 million and $150 million for the comparable periods in 2016. |
SELECTED CONSOLIDATED BALANCE SHEET DATA | ||||||||
As of | As of | |||||||
September 30, 2017 | December 31, 2016 | |||||||
Cash and cash equivalents | $ | 502 | $ | 385 | ||||
Settlement assets | 15,139 | 14,795 | ||||||
Total assets | 41,645 | 40,292 | ||||||
Short-term and current portion of long-term borrowings | 854 | 358 | ||||||
Settlement obligations | 15,139 | 14,795 | ||||||
Long-term borrowings | 17,795 | 18,131 | ||||||
Total liabilities | 36,609 | 36,088 | ||||||
Redeemable noncontrolling interest | 72 | 73 | ||||||
Total First Data Corporation stockholders' equity | 2,098 | 1,220 | ||||||
Noncontrolling interests | 2,866 | 2,911 | ||||||
Total equity | 4,964 | 4,131 | ||||||
SELECTED CONSOLIDATED CASH FLOW DATA | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Source/(Use) of cash | |||||||||||||||
Net cash provided by operating activities | $ | 581 | $ | 752 | $ | 1,582 | $ | 1,660 | |||||||
Net cash used in investing activities | (818 | ) | (128 | ) | (1,057 | ) | (338 | ) | |||||||
Net cash provided by (used in) financing activities | 252 | (435 | ) | (410 | ) | (1,258 | ) | ||||||||
Supplemental cash flow data | |||||||||||||||
Cash interest payments(a) | $ | 231 | $ | 279 | $ | 684 | $ | 759 |
(a) | For purposes of this schedule, cash interest payments excludes interest on capital leases and interest on foreign lines of credit. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2017 | 2016 | % Change | Organic CC % Change(e) | 2017 | 2016 | % Change | Organic CC % Change(e) | ||||||||||||||||
Consolidated Revenues | $ | 3,076 | $ | 2,936 | 5% | $ | 8,902 | $ | 8,641 | 3% | |||||||||||||
Adjustments: | |||||||||||||||||||||||
Non wholly owned entities(a) | (14 | ) | (25 | ) | (44)% | (49 | ) | (59 | ) | (17)% | |||||||||||||
Independent Sales Organization (ISO) commission expense(b) | (162 | ) | (155 | ) | 5% | (470 | ) | (476 | ) | (1)% | |||||||||||||
Reimbursable debit network fees, postage, and other | (995 | ) | (936 | ) | 6% | (2,904 | ) | (2,795 | ) | 4% | |||||||||||||
Total Segment Revenues | $ | 1,905 | $ | 1,820 | 5% | 3% | $ | 5,479 | $ | 5,311 | 3% | 4% | |||||||||||
Segment Revenues: | |||||||||||||||||||||||
Global Business Solutions | $ | 1,094 | $ | 1,045 | 5% | 2% | $ | 3,131 | $ | 3,037 | 3% | 3% | |||||||||||
Global Financial Solutions | 416 | 397 | 5% | 5% | 1,211 | 1,178 | 3% | 5% | |||||||||||||||
Network & Security Solutions | 395 | 378 | 5% | 5% | 1,137 | 1,096 | 4% | 4% | |||||||||||||||
Total Segment Revenues | $ | 1,905 | $ | 1,820 | 5% | 3% | $ | 5,479 | $ | 5,311 | 3% | 4% | |||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2017 | 2016 | % Change | Organic CC % Change(e) | 2017 | 2016 | % Change | Organic CC % Change(e) | ||||||||||||||||
Consolidated Expenses | $ | 2,658 | $ | 2,482 | 7% | $ | 7,688 | $ | 7,519 | 2% | |||||||||||||
Adjustments: | |||||||||||||||||||||||
Non wholly owned entities(a) | (15 | ) | (16 | ) | (6)% | (50 | ) | (52 | ) | (4)% | |||||||||||||
Independent Sales Organization (ISO) commission expense(b) | (162 | ) | (155 | ) | 5% | (470 | ) | (476 | ) | (1)% | |||||||||||||
Reimbursable debit network fees, postage, and other | (995 | ) | (936 | ) | 6% | (2,904 | ) | (2,795 | ) | 4% | |||||||||||||
Depreciation and amortization | (248 | ) | (237 | ) | 5% | (713 | ) | (713 | ) | —% | |||||||||||||
Stock-based compensation | (62 | ) | (43 | ) | 44% | (183 | ) | (214 | ) | (14)% | |||||||||||||
Other(c) | (58 | ) | (14 | ) | 314% | (113 | ) | (79 | ) | 43% | |||||||||||||
Total Segment Expenses | $ | 1,118 | $ | 1,081 | 3% | 1% | $ | 3,255 | $ | 3,190 | 2% | 2% | |||||||||||
Segment Expenses: | |||||||||||||||||||||||
Global Business Solutions | $ | 629 | $ | 590 | 7% | 3% | $ | 1,801 | $ | 1,758 | 2% | 3% | |||||||||||
Global Financial Solutions | 236 | 239 | (1)% | (1)% | 709 | 705 | 1% | 2% | |||||||||||||||
Network & Security Solutions | 211 | 212 | —% | —% | 617 | 613 | 1% | 1% | |||||||||||||||
Corporate | 42 | 40 | 5% | 5% | 128 | 114 | 12% | 12% | |||||||||||||||
Total Segment Expenses | $ | 1,118 | $ | 1,081 | 3% | 1% | $ | 3,255 | $ | 3,190 | 2% | 2% | |||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2017 | 2016 | % Change | Organic CC % Change(e) | 2017 | 2016 | % Change | Organic CC % Change(e) | ||||||||||||||||
Net income attributable to First Data Corporation | $ | 296 | $ | 132 | 124% | $ | 517 | $ | 228 | 127% | |||||||||||||
Adjustments: | |||||||||||||||||||||||
Non wholly owned entities(a) | (9 | ) | (7 | ) | 29% | (21 | ) | (24 | ) | (13)% | |||||||||||||
Depreciation and amortization | 248 | 237 | 5% | 713 | 713 | —% | |||||||||||||||||
Interest expense, net | 234 | 263 | (11)% | 706 | 810 | (13)% | |||||||||||||||||
Loss on debt extinguishment | 1 | 3 | (67)% | 72 | 58 | 24% | |||||||||||||||||
Other items(d) | 61 | 44 | 39% | 120 | 65 | 85% | |||||||||||||||||
Income tax expense | (106 | ) | 24 | NM | (66 | ) | 57 | (216)% | |||||||||||||||
Stock-based compensation | 62 | 43 | 44% | 183 | 214 | (14)% | |||||||||||||||||
Total Segment EBITDA | $ | 787 | $ | 739 | 6% | 5% | $ | 2,224 | $ | 2,121 | 5% | 5% | |||||||||||
Segment EBITDA: | |||||||||||||||||||||||
Global Business Solutions | $ | 465 | $ | 455 | 2% | —% | $ | 1,330 | $ | 1,279 | 4% | 4% | |||||||||||
Global Financial Solutions | 180 | 158 | 14% | 14% | 502 | 473 | 6% | 8% | |||||||||||||||
Network & Security Solutions | 184 | 166 | 11% | 11% | 520 | 483 | 8% | 8% | |||||||||||||||
Corporate | (42 | ) | (40 | ) | 5% | 5% | (128 | ) | (114 | ) | 12% | 12% | |||||||||||
Total Segment EBITDA | $ | 787 | $ | 739 | 6% | 5% | $ | 2,224 | $ | 2,121 | 5% | 5% | |||||||||||
Net income attributable to First Data Corporation margin: | 9.6 | % | 4.5 | % | 5.8 | % | 2.6 | % | |||||||||||||||
Total segment EBITDA margin: | 41.3 | % | 40.6 | % | 70bps | 40.6 | % | 39.9 | % | 70bps |
(a) | Net adjustment to reflect our proportionate share of the results of our investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. Segment revenue for our significant affiliates is reflected based on our proportionate share of the results of our investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. For other affiliates, we include equity earnings in affiliates, excluding amortization expense, in segment revenue. In addition, our segment measures reflect revenue-based commission payments to Independent Sales Organizations (ISOs). |
(b) | Retail Independent Sales Organization commissions are presented within Selling, general, and administrative expense in the unaudited consolidated statements of operations but are netted in segment revenues for segment reporting. |
(c) | Includes restructuring, certain retention bonuses, non-normal course litigation and regulatory settlements, asset impairments, deal costs, and debt issuance costs. |
(d) | Items noted within (c) above and "Other income (expense)" as presented in the unaudited consolidated statements of operations, which includes divestitures, derivative gains (losses), non-operating foreign currency gains (losses) and the gain on Visa Europe share sale. |
SEGMENT REVENUE RECONCILIATION | |||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||
Total Segment revenue | $ | 1,905 | $ | 1,820 | 5% | $ | 5,479 | $ | 5,311 | 3% | |||||||||
Currency impact | (3 | ) | — | 33 | — | ||||||||||||||
Acquisitions/Divestitures | — | 26 | — | 6 | |||||||||||||||
Organic constant currency(a) segment revenue growth | $ | 1,902 | $ | 1,846 | 3% | $ | 5,512 | $ | 5,317 | 4% | |||||||||
GBS revenue | $ | 1,094 | $ | 1,045 | 5% | $ | 3,131 | $ | 3,037 | 3% | |||||||||
Currency impact | (3 | ) | — | 12 | — | ||||||||||||||
Acquisitions/Divestitures | — | 26 | — | 6 | |||||||||||||||
Organic constant currency(a) GBS revenue growth | $ | 1,091 | $ | 1,071 | 2% | $ | 3,143 | $ | 3,043 | 3% | |||||||||
GBS NA revenue | $ | 833 | $ | 819 | 2% | $ | 2,410 | $ | 2,371 | 2% | |||||||||
Currency impact | (1 | ) | — | — | — | ||||||||||||||
Acquisitions/Divestitures | — | 36 | — | 36 | |||||||||||||||
Organic constant currency(a) GBS NA revenue growth | $ | 832 | $ | 855 | (3)% | $ | 2,410 | $ | 2,407 | —% | |||||||||
GBS APAC revenue | $ | 39 | $ | 43 | (8)% | $ | 109 | $ | 125 | (13)% | |||||||||
Currency impact | — | — | (2 | ) | — | ||||||||||||||
Acquisitions/Divestitures | — | (10 | ) | — | (31 | ) | |||||||||||||
Organic constant currency(a) GBS APAC revenue growth | $ | 39 | $ | 33 | 18% | $ | 107 | $ | 94 | 14% | |||||||||
SEGMENT EXPENSE RECONCILIATION | |||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||
Total Segment expense | $ | 1,118 | $ | 1,081 | 3% | $ | 3,255 | $ | 3,190 | 2% | |||||||||
Currency impact | (4 | ) | — | 14 | — | ||||||||||||||
Acquisitions/Divestitures | — | 17 | — | — | |||||||||||||||
Organic constant currency(a) segment expense growth | $ | 1,114 | $ | 1,098 | 1% | $ | 3,269 | $ | 3,190 | 2% | |||||||||
GBS expense | $ | 629 | $ | 590 | 7% | $ | 1,801 | $ | 1,758 | 2% | |||||||||
Currency impact | (3 | ) | — | 3 | — | ||||||||||||||
Acquisitions/Divestitures | — | 17 | — | — | |||||||||||||||
Organic constant currency(a) GBS expense growth | $ | 626 | $ | 607 | 3% | $ | 1,804 | $ | 1,758 | 3% | |||||||||
SEGMENT EBITDA RECONCILIATION | |||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||
Total Segment EBITDA | $ | 787 | $ | 739 | 6% | $ | 2,224 | $ | 2,121 | 5% | |||||||||
Currency impact | 1 | — | 18 | — | |||||||||||||||
Acquisitions/Divestitures | — | 9 | — | 6 | |||||||||||||||
Organic constant currency(a) segment EBITDA growth | $ | 788 | $ | 748 | 5% | $ | 2,242 | $ | 2,127 | 5% | |||||||||
GBS EBITDA | $ | 465 | $ | 455 | 2% | $ | 1,330 | $ | 1,279 | 4% | |||||||||
Currency impact | 1 | — | 9 | — | |||||||||||||||
Acquisitions/Divestitures | — | 9 | — | 6 | |||||||||||||||
Organic constant currency(a) GBS EBITDA growth | $ | 466 | $ | 464 | —% | $ | 1,339 | $ | 1,285 | 4% | |||||||||
(a) | Organic constant currency growth (“Organic CC growth”) is defined as reported growth adjusted for the following: (1) excludes the impacts of year-over-year currency rate changes in the current period; (2) excludes the results of significant divestitures in the prior year period; and (3) includes the results of significant acquisitions in the prior year period. Impacts to growth rates from acquisitions/divestitures only relate to the GBS segment. |
ADJUSTED NET INCOME RECONCILIATION | |||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||
Net income attributable to First Data Corporation | $ | 296 | $ | 132 | 124% | $ | 517 | $ | 228 | 127% | |||||||||
Adjustments: | |||||||||||||||||||
Stock-based compensation | 62 | 43 | 44% | 183 | 214 | (14)% | |||||||||||||
Loss on debt extinguishment(a) | 1 | 3 | (67)% | 72 | 58 | 24% | |||||||||||||
Mark-to-market adjustment for derivatives and euro-denominated debt(b) | — | — | NM | — | 5 | (100)% | |||||||||||||
Amortization of acquisition intangibles and deferred financing costs(c) | 106 | 104 | 2% | 295 | 318 | (7)% | |||||||||||||
Loss on disposal of businesses | — | 31 | NM | — | 31 | NM | |||||||||||||
Visa Europe settlement gain | — | — | NM | — | (29 | ) | NM | ||||||||||||
Restructuring | 24 | 6 | 300% | 63 | 51 | 24% | |||||||||||||
Intercompany foreign exchange gain (loss) | 2 | (2 | ) | (200)% | 6 | (21 | ) | (129)% | |||||||||||
Fees paid on debt modification | 1 | — | NM | 10 | 18 | (44)% | |||||||||||||
Impairment, litigation, and other(d) | 10 | 6 | 67% | 13 | 13 | —% | |||||||||||||
Deal and integration costs | 21 | — | NM | 26 | — | NM | |||||||||||||
Income tax on above items and discrete tax items(e) | (150 | ) | (11 | ) | NM | (176 | ) | (31 | ) | NM | |||||||||
Adjusted net income | $ | 373 | $ | 312 | 20% | $ | 1,009 | $ | 855 | 18% | |||||||||
Adjusted net income per share: | |||||||||||||||||||
Basic | $ | 0.41 | $ | 0.34 | 21% | $ | 1.10 | $ | 0.95 | 16% | |||||||||
Diluted | $ | 0.40 | $ | 0.34 | 18% | $ | 1.08 | $ | 0.93 | 16% | |||||||||
Weighted-average common shares used to compute adjusted net income per share: | |||||||||||||||||||
Basic | 918 | 905 | 1% | 915 | 900 | 2% | |||||||||||||
Diluted | 944 | 923 | 2% | 938 | 918 | 2% |
(a) | Represents costs associated with debt restructuring activities on extinguished debt. |
(b) | Represents mark-to-market activity related to our undesignated hedges. |
(c) | Represents amortization of intangibles established in connection with the 2007 Merger and acquisitions we have made since 2007, excluding the percentage of our consolidated amortization of acquisition intangibles related to non wholly owned consolidated alliances equal to the portion of such alliances owned by our alliance partners. This line also includes amortization related to deferred financing costs of $4 million for the three months ended September 30, 2017 and 2016, respectively, and $12 million and $11 million, respectively, for the nine months ended September 30, 2017 and 2016. |
(d) | Represents impairments, non-normal course litigation and regulatory settlements, investments gains (losses), divestitures, and other, as applicable to the periods presented. |
(e) | The tax effect of the adjustments between our GAAP and adjusted results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). Generally, this results in a tax impact at the U.S. effective tax rate for certain adjustments, including the majority of amortization of intangible assets, deferred financing costs, stock compensation, and loss on debt extinguishment; whereas the tax impact of other adjustments, including restructuring expense, depends on whether the amounts are deductible in the respective tax jurisdictions and the applicable effective tax rate(s) in those jurisdictions. "Income tax on above items and discrete tax items" also includes the impact of significant discrete tax items impacting Net income (loss) attributable to First Data Corporation. |
FREE CASH FLOW RECONCILIATION | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
Net cash provided by operating activities | $ | 581 | $ | 752 | $ | (171 | ) | $ | 1,582 | $ | 1,660 | $ | (78 | ) | |||||||||
Capital expenditures | (134 | ) | (119 | ) | (15 | ) | (390 | ) | (351 | ) | (39 | ) | |||||||||||
Distribution to minority interest and other | (77 | ) | (206 | ) | 129 | (113 | ) | (363 | ) | 250 | |||||||||||||
Free cash flow | $ | 370 | $ | 427 | (57 | ) | $ | 1,079 | $ | 946 | 133 | ||||||||||||
NET DEBT RECONCILIATION | ||||||||
As of | As of | |||||||
September 30, 2017 | December 31, 2016 | |||||||
Total long-term borrowings | $ | 17,795 | $ | 18,131 | ||||
Total short-term and current portion of long-term borrowings | 854 | 358 | ||||||
Total borrowings | 18,649 | 18,489 | ||||||
Unamortized discount and unamortized deferred financing costs | 140 | 156 | ||||||
Total borrowings at par | 18,789 | 18,645 | ||||||
Less: Settlement lines of credit and other arrangements | (79 | ) | (84 | ) | ||||
Gross debt | 18,710 | 18,561 | ||||||
Less: Cash and cash equivalents | (502 | ) | (385 | ) | ||||
Net debt | $ | 18,208 | $ | 18,176 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||
GBS: | |||||||||||||||
North America merchant transactions(a) | 12,517 | 11,881 | 5% | 36,494 | 34,368 | 6% | |||||||||
International merchant transactions(b) | 2,453 | 2,087 | 18% | 7,173 | 5,801 | 24% | |||||||||
GFS: | |||||||||||||||
North America card accounts on file(c) | 894 | 844 | 6% | ||||||||||||
International card accounts on file(d) | 166 | 147 | 13% | ||||||||||||
NSS: | |||||||||||||||
Network transactions (EFT and Stored Value)(e) | 5,539 | 5,040 | 10% | 16,005 | 14,715 | 9% | |||||||||
(a) | North American merchant transactions include acquired Visa and MasterCard credit and signature debit, American Express and Discover, PIN-debit, electronic benefits transactions, processed-only and gateway customer transactions at the POS. North American merchant transactions reflect 100% of alliance transactions. |
(b) | International transactions include Visa, MasterCard, and other payment network merchant acquiring transactions for clients outside the U.S. and Canada. Transactions include credit, signature debit, PIN-debit POS, POS gateway, and ATM transactions. International merchant transaction for the three and nine months ended September 30, 2016 reflected an updated count of transactions. International merchant transactions reflect 100% of alliance transactions. |
(c) | North America card accounts on file reflect the total number of bankcard credit and retail credit accounts as of the end of the periods presented. |
(d) | International card accounts on file reflect the total number of bankcard and retail accounts outside the United States and Canada as of the end of the periods presented. International card accounts on file as of September 30, 2016 reflect an updated cards on account total. |
(e) | Network transactions include the debit issuer processing transactions, STAR Network issuer transactions, Payroll and Gift Solutions and POS transactions. |