Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2015

Supplemental Guarantor Condensed Consolidating Financial Statements

Schedule of the results of operations

	Year ended December 31, 2015
(in millions)	FDC Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation Adjustments			Consolidated
Revenues:
Transaction and processing service fees	$	—		$	3,906		$	2,999		$	(308	)	$	6,597
Product sales and other	—			741			503			(77		)	1,167
Total revenues (excluding reimbursable items)	—			4,647			3,502			(385		)	7,764
Reimbursable PIN debit fees, postage, and other	—			2,521			1,166			—			3,687
Total revenues	—			7,168			4,668			(385		)	11,451
Expenses:
Cost of services (exclusive of items shown below)	—			1,576			1,473			(178		)	2,871
Cost of products sold	—			260			173			(77		)	356
Selling, general, and administrative	476			1,143			803			(130		)	2,292
Depreciation and amortization	12			620			390			—			1,022
Other operating expenses	8			24			21			—			53
Total expenses (excluding reimbursable items)	496			3,623			2,860			(385		)	6,594
Reimbursable PIN debit fees, postage, and other	—			2,521			1,166			—			3,687
Total expenses	496			6,144			4,026			(385		)	10,281
Operating (loss) profit	(496		)	1,024			642			—			1,170
Interest expense, net	(1,527		)	(10		)	—			—			(1,537		)
Loss on debt extinguishment	(1,068		)	—			—			—			(1,068		)
Interest income (expense) from intercompany notes	288			(289		)	1			—			—
Equity earnings from consolidated subsidiaries	810			304			—			(1,114		)	—
Other income (expense)	55			3			(29		)	—			29
(Loss) income before income taxes and equity earnings in affiliates	(1,938		)	1,032			614			(1,114		)	(1,406		)
Income tax (benefit) expense	(457		)	422			136			—			101
Equity earnings in affiliates	—			213			26			—			239
Net (loss) income	(1,481		)	823			504			(1,114		)	(1,268		)
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest	—			—			66			147			213
Net (loss) income attributable to First Data Corporation	$	(1,481	)	$	823		$	438		$	(1,261	)	$	(1,481	)
Comprehensive (loss) income	$	(1,771	)	$	760		$	158		$	(715	)	$	(1,568	)
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest	—			—			56			147			203
Comprehensive (loss) income attributable to First Data Corporation	$	(1,771	)	$	760		$	102		$	(862	)	$	(1,771	)

	Year ended December 31, 2014
(in millions)	FDC Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation Adjustments			Consolidated
Revenues:
Transaction and processing service fees	$	—		$	3,712		$	3,056		$	(258	)	$	6,510
Product sales and other	—			625			473			(60		)	1,038
Total revenues (excluding reimbursable items)	—			4,337			3,529			(318		)	7,548
Reimbursable PIN debit fees, postage, and other	—			2,510			1,094			—			3,604
Total revenues	—			6,847			4,623			(318		)	11,152
Expenses:
Cost of services (exclusive of items shown below)	—			1,403			1,523			(258		)	2,668
Cost of products sold	—			223			167			(60		)	330
Selling, general, and administrative	131			1,125			787			—			2,043
Depreciation and amortization	10			607			439			—			1,056
Other operating expenses	10			3			—			—			13
Total expenses (excluding reimbursable items)	151			3,361			2,916			(318		)	6,110
Reimbursable PIN debit fees, postage, and other	—			2,510			1,094			—			3,604
Total expenses	151			5,871			4,010			(318		)	9,714
Operating (loss) profit	(151		)	976			613			—			1,438
Interest expense, net	(1,724		)	(9		)	5			—			(1,728		)
Loss on debt extinguishment	(274		)	—			—			—			(274		)
Interest income (expense) from intercompany notes	316			(305		)	(11		)	—			—
Equity earnings from consolidated subsidiaries	833			294			—			(1,127		)	—
Other income (expense)	81			100			(20		)	—			161
(Loss) income before income taxes and equity earnings in affiliates	(919		)	1,056			587			(1,127		)	(403		)
Income tax (benefit) expense	(461		)	377			166			—			82
Equity earnings in affiliates	—			202			18			—			220
Net (loss) income	(458		)	881			439			(1,127		)	(265		)
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest	—			—			66			127			193
Net (loss) income attributable to First Data Corporation	$	(458	)	$	881		$	373		$	(1,254	)	$	(458	)
Comprehensive (loss) income	$	(798	)	$	709		$	187		$	(714	)	$	(616	)
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest	—			—			55			127			182
Comprehensive (loss) income attributable to First Data Corporation	$	(798	)	$	709		$	132		$	(841	)	$	(798	)

	Year ended December 31, 2013
(in millions)	FDC Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation Adjustments			Consolidated
Revenues:
Transaction and processing service fees	$	—		$	3,585		$	2,987		$	(227	)	$	6,345
Product sales and other	—			570			447			(60		)	957
Total revenues (excluding reimbursable items)	—			4,155			3,434			(287		)	7,302
Reimbursable PIN debit fees, postage, and other	—			2,510			997			—			3,507
Total revenues	—			6,665			4,431			(287		)	10,809
Expenses:
Cost of services (exclusive of items shown below)	—			1,508			1,442			(227		)	2,723
Cost of products sold	—			217			171			(60		)	328
Selling, general, and administrative	115			1,136			729			—			1,980
Depreciation and amortization	7			623			461			—			1,091
Other operating expenses	26			25			5			—			56
Total expenses (excluding reimbursable items)	148			3,509			2,808			(287		)	6,178
Reimbursable PIN debit fees, postage, and other	—			2,510			997			—			3,507
Total expenses	148			6,019			3,805			(287		)	9,685
Operating (loss) profit	(148		)	646			626			—			1,124
Interest expense, net	(1,850		)	(10		)	4			—			(1,856		)
Loss on debt extinguishment	(79		)	—			—			—			(79		)
Interest income (expense) from intercompany notes	315			(276		)	(39		)	—			—
Equity earnings from consolidated subsidiaries	579			207			—			(786		)	—
Other income (expense)	(53		)	(3		)	9			—			(47		)
(Loss) income before income taxes and equity earnings in affiliates	(1,236		)	564			600			(786		)	(858		)
Income tax (benefit) expense	(284		)	250			139			—			105
Equity earnings in affiliates	—			169			19			—			188
Net (loss) income	(952		)	483			480			(786		)	(775		)
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest	—			—			56			121			177
Net (loss) income attributable to First Data Corporation	$	(952	)	$	483		$	424		$	(907	)	$	(952	)
Comprehensive (loss) income	$	(989	)	$	453		$	388		$	(663	)	$	(811	)
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest	—			—			57			121			178
Comprehensive (loss) income attributable to First Data Corporation	$	(989	)	$	453		$	331		$	(784	)	$	(989	)

Schedule of the financial position

	As of December 31, 2015
(in millions)	FDC Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidation Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	105	$	16	$	308	$	—		$	429
Accounts receivable, net of allowance for doubtful accounts	—		826		1,000		—			1,826
Settlement assets (a)	—		4,273		3,877		—			8,150
Intercompany notes receivable	436		86		10		(532		)	—
Other current assets	98		188		95		—			381
Total current assets	639		5,389		5,290		(532		)	10,786
Property and equipment, net of accumulated depreciation	37		640		274		—			951
Goodwill	—		9,139		7,707		—			16,846
Customer relationships, net of accumulated amortization	—		1,235		901		—			2,136
Other intangibles, net of accumulated amortization	604		703		476		—			1,783
Investment in affiliates	5		900		143		—			1,048
Long-term intercompany receivables	8,523		15,192		6,321		(30,036		)	—
Long-term intercompany notes receivable	3,415		236		9		(3,660		)	—
Deferred tax assets	524		—		—		(524		)	—
Other long-term assets	259		358		265		(70		)	812
Investment in consolidated subsidiaries	25,692		5,588		—		(31,280		)	—
Total assets	$	39,698	$	39,380	$	21,386	$	(66,102	)	$	34,362
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	283	$	792	$	564	$	—		$	1,639
Short-term and current portion of long-term borrowings	740		70		46		—			856
Settlement obligations (a)	—		4,273		3,877		—			8,150
Intercompany notes payable	96		408		28		(532		)	—
Total current liabilities	1,119		5,543		4,515		(532		)	10,645
Long-term borrowings	18,616		119		2		—			18,737
Deferred tax liabilities	—		875		80		(524		)	431
Long-term intercompany payables	18,583		6,874		4,579		(30,036		)	—
Long-term intercompany notes payable	245		3,353		62		(3,660		)	—
Other long-term liabilities	467		288		127		(70		)	812
Total liabilities	39,030		17,052		9,365		(34,822		)	30,625
Redeemable equity interest	—		—		77		(77		)	—
Redeemable noncontrolling interest	—		—		—		77			77
First Data Corporation stockholders' equity (deficit)	668		22,328		5,933		(28,261		)	668
Noncontrolling interests	—		—		88		2,904			2,992
Equity of consolidated alliance	—		—		5,923		(5,923		)	—
Total equity	668		22,328		11,944		(31,280		)	3,660
Total liabilities and equity	$	39,698	$	39,380	$	21,386	$	(66,102	)	$	34,362

(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.

	As of December 31, 2014
(in millions)	FDC Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidation Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	23	$	335	$	—		$	358
Accounts receivable, net of allowance for doubtful accounts	8			729		1,004		—			1,741
Settlement assets (a)	—			3,849		3,706		—			7,555
Intercompany notes receivable	3,375			307		—		(3,682		)	—
Other current assets	5			96		102		—			203
Total current assets	3,388			5,004		5,147		(3,682		)	9,857
Property and equipment, net of accumulated depreciation	33			619		278		—			930
Goodwill	—			9,085		7,932		—			17,017
Customer relationships, net of accumulated amortization	—			1,469		1,135		—			2,604
Other intangibles, net of accumulated amortization	603			623		519		—			1,745
Investment in affiliates	—			948		153		—			1,101
Long-term intercompany receivables	6,064			14,442		5,135		(25,641		)	—
Long-term intercompany notes receivable	320			1		9		(330		)	—
Deferred tax assets	710			—		—		(710		)	—
Other long-term assets	265			317		295		(97		)	780
Investment in consolidated subsidiaries	24,474			5,331		—		(29,805		)	—
Total assets	$	35,857		$	37,839	$	20,603	$	(60,265	)	$	34,034
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	592		$	699	$	505	$	—		$	1,796
Short-term and current portion of long-term borrowings	20			64		77		—			161
Settlement obligations (a)	—			3,849		3,708		—			7,557
Intercompany notes payable	309			3,346		27		(3,682		)	—
Total current liabilities	921			7,958		4,317		(3,682		)	9,514
Long-term borrowings	20,564			131		2		—			20,697
Deferred tax liabilities	—			1,001		144		(710		)	435
Long-term intercompany payables	14,397			7,804		3,440		(25,641		)	—
Long-term intercompany notes payable	9			260		61		(330		)	—
Other long-term liabilities	536			225		124		(97		)	788
Total liabilities	36,427			17,379		8,088		(30,460		)	31,434
Redeemable equity interest	—			—		70		(70		)	—
Redeemable noncontrolling interest	—			—		—		70			70
First Data Corporation stockholders' (deficit) equity	(570		)	20,460		6,241		(26,701		)	(570		)
Noncontrolling interests	—			—		101		2,999			3,100
Equity of consolidated alliance	—			—		6,103		(6,103		)	—
Total equity	(570		)	20,460		12,445		(29,805		)	2,530
Total liabilities and equity	$	35,857		$	37,839	$	20,603	$	(60,265	)	$	34,034

(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.

Schedule of the cash flows

	Year ended December 31, 2015
(in millions)	FDC Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation Adjustments			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(1,481	)	$	823		$	504		$	(1,114	)	$	(1,268	)
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)	12			701			420			—			1,133
(Gains) charges related to other operating expenses and other income (expense)	(47		)	21			50			—			24
Loss on debt extinguishment	1,068			—			—			—			1,068
Share-based compensation expense	329			—			—			—			329
Other non-cash and non-operating items, net	(762		)	(306		)	(14		)	1,114			32
(Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in operating assets and liabilities	(1,028		)	431			74			—			(523		)
Net cash (used in) provided by operating activities	(1,909		)	1,670			1,034			—			795
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from dispositions, net of expenses paid	—			4			—			—			4
Additions to property and equipment	(9		)	(107		)	(166		)	—			(282		)
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs	—			(264		)	(56		)	—			(320		)
Acquisitions, net of cash acquired	(70		)	(19		)	—			—			(89		)
Proceeds from sale of property and equipment	—			17			—			—			17
Purchase of investments	(17		)	—			—			—			(17		)
Other investing activities	2			—			—			—			2
Distributions and dividends from subsidiaries	149			254			—			(403		)	—
Net cash provided by (used in) investing activities	55			(115		)	(222		)	(403		)	(685		)
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term borrowings, net	(10		)	—			(21		)	—			(31		)
Proceeds from issuance of long-term debt	10,258			—			—			—			10,258
Payment of call premiums and debt issuance cost	(1,062		)	—			—			—			(1,062		)
Principal payments on long-term debt	(11,472		)	(87		)	(9		)	—			(11,568		)
Proceeds from issuance of common stock	2,718			—			—			—			2,718
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest	—			—			(69		)	(243		)	(312		)
Distributions paid to equity holders	—			—			(497		)	497			—
Capital transactions, net	(19		)	—			(149		)	149			(19		)
Intercompany	1,546			(1,477		)	(69		)	—			—
Net cash provided by (used in) financing activities	1,959			(1,564		)	(814		)	403			(16		)
Effect of exchange rate changes on cash and cash equivalents	—			2			(25		)	—			(23		)
Change in cash and cash equivalents	105			(7		)	(27		)	—			71
Cash and cash equivalents at beginning of period	—			23			335			—			358
Cash and cash equivalents at end of period	$	105		$	16		$	308		$	—		$	429

	Year ended December 31, 2014
(in millions)	FDC Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation Adjustments			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(458	)	$	881		$	439		$	(1,127	)	$	(265	)
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)	10			683			470			—			1,163
(Gains) charges related to other operating expenses and other income (expense)	(71		)	(97		)	20			—			(148		)
Loss on debt extinguishment	274			—			—			—			274
Share-based compensation expense	51			—			—			—			51
Other non-cash and non-operating items, net	(788		)	(306		)	—			1,127			33
(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions	(694		)	571			50			—			(73		)
Net cash (used in) provided by operating activities	(1,676		)	1,732			979			—			1,035
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from dispositions, net of expenses paid and cash disposed	—			270			—			—			270
Additions to property and equipment	(8		)	(124		)	(176		)	—			(308		)
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs	—			(183		)	(76		)	—			(259		)
Acquisitions, net of cash acquired	—			(31		)	—			—			(31		)
Proceeds from sale of property and equipment	—			2			1			—			3
Other investing activities	—			—			(4		)	—			(4		)
Distributions and dividends from subsidiaries	75			232			—			(307		)	—
Net cash provided by (used in) investing activities	67			166			(255		)	(307		)	(329		)
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term borrowings, net	10			—			2			—			12
Proceeds from issuance of long-term debt	1,830			—			—			—			1,830
Payment of call premiums and debt issuance cost	(355		)	—			—			—			(355		)
Principal payments on long-term debt	(3,673		)	(73		)	(5		)	—			(3,751		)
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest	—			—			(45		)	(221		)	(266		)
Distributions paid to equity holders	—			—			(453		)	453			—
Purchase of noncontrolling interest	—			—			(1		)	—			(1		)
Capital transactions, net	1,788			—			(75		)	75			1,788
Intercompany	1,973			(1,840		)	(133		)	—			—
Net cash provided by (used in) financing activities	1,573			(1,913		)	(710		)	307			(743		)
Effect of exchange rate changes on cash and cash equivalents	—			5			(35		)	—			(30		)
Change in cash and cash equivalents	(36		)	(10		)	(21		)	—			(67		)
Cash and cash equivalents at beginning of period	36			33			356			—			425
Cash and cash equivalents at end of period	$	—		$	23		$	335		$	—		$	358

	Year ended December 31, 2013
(in millions)	FDC Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation Adjustments			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(952	)	$	483		$	480		$	(786	)	$	(775	)
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			715			490			—			1,212
Charges (gains) related to other operating expenses and other income (expense)	79			28			(4		)	—			103
Loss on debt extinguishment	79			—			—			—			79
Share-based compensation expense	39			—			—			—			39
Other non-cash and non-operating items, net	(537		)	(214		)	(9		)	786			26
(Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions	(406		)	321			116			—			31
Net cash (used in) provided by operating activities	(1,691		)	1,333			1,073			—			715
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from dispositions, net of expenses paid	—			10			8			—			18
Additions to property and equipment	—			(68		)	(126		)	—			(194		)
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs	(1		)	(124		)	(60		)	—			(185		)
Acquisitions, net of cash acquired	(12		)	—			—			—			(12		)
Proceeds from sale of property and equipment	—			5			7			—			12
Other investing activities	—			7			1			—			8
Distributions and dividends from subsidiaries	178			190			—			(368		)	—
Net cash provided by (used in) investing activities	165			20			(170		)	(368		)	(353		)
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term borrowings, net	—			—			(109		)	—			(109		)
Proceeds from issuance of long-term debt	4,472			—			—			—			4,472
Payment of call premiums and debt issuance cost	(111		)	—			—			—			(111		)
Principal payments on long-term debt	(4,429		)	(67		)	(10		)	—			(4,506		)
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest	—			—			(41		)	(183		)	(224		)
Distributions paid to equity holders	—			—			(373		)	373			—
Purchase of noncontrolling interest	—			—			(24		)	—			(24		)
Capital transactions, net	(30		)	—			(178		)	178			(30		)
Intercompany	1,433			(1,274		)	(159		)	—			—
Net cash provided by (used in) financing activities	1,335			(1,341		)	(894		)	368			(532		)
Effect of exchange rate changes on cash and cash equivalents	—			(2		)	(11		)	—			(13		)
Change in cash and cash equivalents	(191		)	10			(2		)	—			(183		)
Cash and cash equivalents at beginning of period	227			23			358			—			608
Cash and cash equivalents at end of period	$	36		$	33		$	356		$	—		$	425