PARENT-ONLY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2019

24. PARENT-ONLY FINANCIAL STATEMENTS

The following ADSC financial statements are provided in accordance with the rules of the Securities and Exchange Commission, which require such disclosure when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets. Certain of the Company’s subsidiaries may be restricted in distributing cash or other assets to ADSC, which could be utilized to service its indebtedness. The stand-alone parent-only financial statements are presented below.

Balance Sheets


	December 31,
	2019		2018
	(in millions)
Assets:
Cash and cash equivalents	$	0.2	$	0.1
Investment in subsidiaries		5,326.2		8,606.0
Other assets		3.4		20.1
Total assets	$	5,329.8	$	8,626.2
Liabilities:
Current portion of long-term and other debt	$	101.4	$	114.4
Long-term and other debt		2,748.5		5,427.7
Intercompany liabilities		806.7		395.9
Other liabilities		84.9		356.1
Total liabilities		3,741.5		6,294.1
Stockholders’ equity		1,588.3		2,332.1
Total liabilities and stockholders’ equity	$	5,329.8	$	8,626.2

See Note 16, “Debt,” for more information regarding the Company’s long-term and other debt.

Statements of Income


	Years Ended December 31,
	2019		2018		2017
	(in millions)
Interest from loans to subsidiaries	$	19.2	$	17.9	$	13.8
Dividends from subsidiaries		922.6		810.1		360.6
Total revenue		941.8		828.0		374.4
Loss on extinguishment of debt		71.9		—		—
Interest expense, net		130.0		281.2		278.9
Other expenses, net		(0.7)		(0.4)		12.9
Total expenses		201.2		280.8		291.8
Income before income taxes and equity in undistributed net income of subsidiaries		740.6		547.2		82.6
Benefit for income taxes		42.1		7.0		322.7
Income before equity in undistributed net (loss) income of subsidiaries		782.7		554.2		405.3
Equity in undistributed net (loss) income of subsidiaries⁽¹⁾		(504.7)		408.9		383.4
Net income	$	278.0	$	963.1	$	788.7

(1)	Includes $252.1 million after-tax loss on sale of Epsilon.

Statements of Comprehensive Income


	Years Ended December 31,
	2019		2018		2017
	(in millions)
Net income	$	278.0	$	963.1	$	788.7
Other comprehensive income (loss), net of tax		4.9		29.6		(46.1)
Total comprehensive income, net of tax	$	282.9	$	992.7	$	742.6

Statements of Cash Flows


	Years Ended December 31,
	2019		2018		2017
	(in millions)
Net cash (used in) provided by operating activities	$	(1,029.1)	$	82.3	$	72.3
Investing activities:
Investment in subsidiaries		(135.0)		—		(164.0)
Proceeds from sale of business		4,118.3		—		—
Dividends received		922.6		810.1		360.6
Net cash provided by investing activities		4,905.9		810.1		196.6
Financing activities:
Borrowings under debt agreements		3,083.0		4,527.0		7,673.6
Repayments of borrowings		(5,778.2)		(4,838.3)		(7,232.4)
Payment of debt extinguishment costs		(46.1)		—		—
Payment of deferred financing costs		(20.7)		(4.6)		(33.7)
Purchase of treasury shares		(976.1)		(443.2)		(553.7)
Dividends paid		(127.4)		(125.2)		(115.5)
Proceeds from issuance of common stock		12.4		17.6		18.4
Other		(23.6)		(25.7)		(25.6)
Net cash used in financing activities		(3,876.7)		(892.4)		(268.9)
Change in cash, cash equivalents and restricted cash		0.1		—		—
Cash, cash equivalents and restricted cash at beginning of year		0.1		0.1		0.1
Cash, cash equivalents and restricted cash at end of year	$	0.2	$	0.1	$	0.1

Non-cash investing activities related to the parent-only statement of cash flows for the year ended December 31, 2019 included a $3.0 billion non-cash dividend in the form of an intercompany return of capital from ADS Alliance Data Systems, Inc. to ADSC.