Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Trading Symbol | 'ck0001337272 |
Entity Registrant Name | 'SUNGARD CAPITAL CORP |
Entity Central Index Key | '0001337272 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Class A common stock | ' |
Document Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 257,018,384 |
Class L common stock, convertible | ' |
Document Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 28,557,596 |
SunGard Capital Corp. II | ' |
Document Information [Line Items] | ' |
Entity Registrant Name | 'SUNGARD CAPITAL CORP II |
Entity Central Index Key | '0001337274 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 100 |
SunGard Data Systems Inc. | ' |
Document Information [Line Items] | ' |
Entity Registrant Name | 'SUNGARD DATA SYSTEMS INC |
Entity Central Index Key | '0000789388 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 100 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current: | ' | ' |
Cash and cash equivalents | $355 | $675 |
Trade receivables, less allowance for doubtful accounts of $17 and $18 | 451 | 565 |
Earned but unbilled receivables | 98 | 92 |
Prepaid expenses and other current assets | 141 | 127 |
Assets of discontinued operations | ' | 2,516 |
Total current assets | 1,045 | 3,975 |
Property and equipment, less accumulated depreciation of $376 and $386 | 149 | 152 |
Software products, less accumulated amortization of $1,644 and $1,678 | 249 | 270 |
Customer base, less accumulated amortization of $486 and $500 | 405 | 421 |
Other assets, less accumulated amortization of $21 and $21 | 105 | 113 |
Trade name | 672 | 1,019 |
Goodwill | 3,827 | 3,828 |
Total Assets | 6,452 | 9,778 |
Current: | ' | ' |
Short-term and current portion of long-term debt | 2 | 290 |
Accounts payable | 9 | 8 |
Accrued compensation and benefits | 157 | 245 |
Accrued interest expense | 68 | 40 |
Other accrued expenses | 111 | 129 |
Deferred revenue | 592 | 589 |
Liabilities of discontinued operations | ' | 799 |
Total current liabilities | 939 | 2,100 |
Long-term debt | 4,669 | 6,094 |
Deferred and other income taxes | 657 | 746 |
Other long-term liabilities | 37 | 39 |
Total liabilities | 6,302 | 8,979 |
Commitments and contingencies | ' | ' |
Noncontrolling interest in preferred stock of SCCII subject to a put option | 28 | 42 |
Stockholders' equity: | ' | ' |
Capital in excess of par value | 2,673 | 2,482 |
Treasury stock, Value | -44 | -47 |
Accumulated deficit | -3,883 | -3,497 |
Accumulated other comprehensive income (loss) | -41 | 16 |
Total stockholder's equity | -1,295 | -1,046 |
Noncontrolling interest in preferred stock of SCCII | 1,365 | 1,741 |
Total equity | 70 | 695 |
Total Liabilities and Equity | 6,452 | 9,778 |
Class L common stock, convertible | ' | ' |
Current: | ' | ' |
Stock subject to a put option | 49 | 58 |
Stockholders' equity: | ' | ' |
Common stock, value | ' | ' |
Class A common stock | ' | ' |
Current: | ' | ' |
Stock subject to a put option | 3 | 4 |
Stockholders' equity: | ' | ' |
Common stock, value | ' | ' |
SunGard Capital Corp. II | ' | ' |
Current: | ' | ' |
Cash and cash equivalents | 355 | 675 |
Trade receivables, less allowance for doubtful accounts of $17 and $18 | 451 | 565 |
Earned but unbilled receivables | 98 | 92 |
Prepaid expenses and other current assets | 141 | 127 |
Assets of discontinued operations | ' | 2,516 |
Total current assets | 1,045 | 3,975 |
Property and equipment, less accumulated depreciation of $376 and $386 | 149 | 152 |
Software products, less accumulated amortization of $1,644 and $1,678 | 249 | 270 |
Customer base, less accumulated amortization of $486 and $500 | 405 | 421 |
Other assets, less accumulated amortization of $21 and $21 | 105 | 113 |
Trade name | 672 | 1,019 |
Goodwill | 3,827 | 3,828 |
Total Assets | 6,452 | 9,778 |
Current: | ' | ' |
Short-term and current portion of long-term debt | 2 | 290 |
Accounts payable | 9 | 8 |
Accrued compensation and benefits | 157 | 245 |
Accrued interest expense | 68 | 40 |
Other accrued expenses | 110 | 128 |
Deferred revenue | 592 | 589 |
Liabilities of discontinued operations | ' | 799 |
Total current liabilities | 938 | 2,099 |
Long-term debt | 4,669 | 6,094 |
Deferred and other income taxes | 657 | 746 |
Other long-term liabilities | 24 | 22 |
Total liabilities | 6,288 | 8,961 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value $.001 per share; cumulative 11.5% per annum, compounded quarterly; aggregate liquidation preference of $1,581 million and $0 million; 14,999,000 shares authorized, 10,048,018 and 0 issued | ' | ' |
Common stock, value | ' | ' |
Capital in excess of par value | 3,510 | 3,501 |
Treasury stock, Value | -286 | -29 |
Accumulated deficit | -3,044 | -2,708 |
Accumulated other comprehensive income (loss) | -41 | 16 |
Total stockholder's equity | 139 | 780 |
Total Liabilities and Equity | 6,452 | 9,778 |
SunGard Capital Corp. II | Preferred Stock | ' | ' |
Current: | ' | ' |
Stock subject to a put option | 25 | 37 |
SunGard Data Systems Inc. | ' | ' |
Current: | ' | ' |
Cash and cash equivalents | 355 | 675 |
Trade receivables, less allowance for doubtful accounts of $17 and $18 | 451 | 565 |
Earned but unbilled receivables | 98 | 92 |
Prepaid expenses and other current assets | 138 | 123 |
Assets of discontinued operations | ' | 2,516 |
Total current assets | 1,042 | 3,971 |
Property and equipment, less accumulated depreciation of $376 and $386 | 149 | 152 |
Software products, less accumulated amortization of $1,644 and $1,678 | 249 | 270 |
Customer base, less accumulated amortization of $486 and $500 | 405 | 421 |
Other assets, less accumulated amortization of $21 and $21 | 105 | 113 |
Trade name | 672 | 1,019 |
Goodwill | 3,827 | 3,828 |
Total Assets | 6,449 | 9,774 |
Current: | ' | ' |
Short-term and current portion of long-term debt | 2 | 290 |
Accounts payable | 9 | 8 |
Accrued compensation and benefits | 157 | 245 |
Accrued interest expense | 68 | 40 |
Other accrued expenses | 109 | 127 |
Deferred revenue | 592 | 589 |
Liabilities of discontinued operations | ' | 799 |
Total current liabilities | 937 | 2,098 |
Long-term debt | 4,669 | 6,094 |
Deferred and other income taxes | 650 | 739 |
Other long-term liabilities | 24 | 22 |
Total liabilities | 6,280 | 8,953 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, value | ' | ' |
Capital in excess of par value | 3,370 | 3,513 |
Accumulated deficit | -3,160 | -2,708 |
Accumulated other comprehensive income (loss) | -41 | 16 |
Total stockholder's equity | 169 | 821 |
Total Liabilities and Equity | $6,449 | $9,774 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Trade receivables, allowance for doubtful accounts | $18 | $17 |
Property and equipment, accumulated depreciation | 386 | 376 |
Software products, accumulated amortization | 1,678 | 1,644 |
Customer base, accumulated amortization | 500 | 486 |
Other intangible assets, accumulated amortization | 21 | 21 |
Class L common stock, convertible | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, cumulative liquidation preference percentage | 13.50% | 13.50% |
Common stock, aggregate liquidation preference | 7,278 | 7,040 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 29,062,421 | 29,062,421 |
Treasury stock, shares | 504,825 | 528,709 |
Class A common stock | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 550,000,000 | 550,000,000 |
Common stock, shares issued | 261,565,118 | 261,565,118 |
Treasury stock, shares | 4,546,734 | 4,761,694 |
SunGard Capital Corp. II | ' | ' |
Trade receivables, allowance for doubtful accounts | 18 | 17 |
Property and equipment, accumulated depreciation | 386 | 376 |
Software products, accumulated amortization | 1,678 | 1,644 |
Customer base, accumulated amortization | 500 | 486 |
Other intangible assets, accumulated amortization | 21 | 21 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 100 | 100 |
Treasury stock, shares | 2,532,812 | 183,014 |
Common stock, shares outstanding | 100 | 100 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, cumulative liquidation preference percentage | 11.50% | 11.50% |
Preferred stock, aggregate liquidation preference | 1,372 | 1,752 |
Preferred stock, shares authorized | 14,999,000 | 14,999,000 |
Preferred stock, shares issued | 10,060,069 | 10,060,069 |
SunGard Data Systems Inc. | ' | ' |
Trade receivables, allowance for doubtful accounts | 18 | 17 |
Property and equipment, accumulated depreciation | 386 | 376 |
Software products, accumulated amortization | 1,678 | 1,644 |
Customer base, accumulated amortization | 500 | 486 |
Other intangible assets, accumulated amortization | $21 | $21 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100 | 100 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenue: | ' | ' | ||
Services | $601 | $598 | ||
License and resale fees | 44 | 33 | ||
Total products and services | 645 | 631 | ||
Reimbursed expenses | 8 | 8 | ||
Total revenue | 653 | 639 | ||
Costs and expenses: | ' | ' | ||
Cost of sales and direct operating (excluding depreciation) | 263 | 261 | ||
Sales, marketing and administration | 170 | 155 | ||
Product development and maintenance | 103 | 108 | ||
Depreciation | 24 | [1] | 24 | [1] |
Amortization of acquisition-related intangible assets | 43 | 48 | ||
Trade name impairment charges | 339 | ' | ||
Total costs and expenses | 942 | 596 | ||
Operating income (loss) | -289 | 43 | ||
Interest expense and amortization of deferred financing fees | -74 | -90 | ||
Loss on extinguishment of debt | -61 | -5 | ||
Income (loss) from continuing operations before income taxes | -424 | -52 | ||
Benefit from (provision for) income taxes | 101 | 17 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Income (loss) from discontinued operations, net of tax | -17 | -12 | ||
Net income (loss) | -340 | -47 | ||
(Income) attributable to the noncontrolling interest | -50 | -25 | ||
Net income (loss) attributable to SunGard Capital Corp. | -390 | -72 | ||
Other comprehensive income (loss): | ' | ' | ||
Foreign currency translation, net | -60 | -46 | ||
Unrealized gain (loss) on derivative instruments, net of tax | 3 | 2 | ||
Other comprehensive income (loss), net of tax | -57 | -44 | ||
Comprehensive income (loss) | -397 | -91 | ||
Comprehensive income (loss) attributable to the noncontrolling interest | -50 | -25 | ||
Comprehensive income (loss) | -447 | -116 | ||
SunGard Capital Corp. II | ' | ' | ||
Revenue: | ' | ' | ||
Services | 601 | 598 | ||
License and resale fees | 44 | 33 | ||
Total products and services | 645 | 631 | ||
Reimbursed expenses | 8 | 8 | ||
Total revenue | 653 | 639 | ||
Costs and expenses: | ' | ' | ||
Cost of sales and direct operating (excluding depreciation) | 263 | 261 | ||
Sales, marketing and administration | 170 | 155 | ||
Product development and maintenance | 103 | 108 | ||
Depreciation | 24 | 24 | ||
Amortization of acquisition-related intangible assets | 43 | 48 | ||
Trade name impairment charges | 339 | ' | ||
Total costs and expenses | 942 | 596 | ||
Operating income (loss) | -289 | 43 | ||
Interest expense and amortization of deferred financing fees | -74 | -90 | ||
Loss on extinguishment of debt | -61 | -5 | ||
Income (loss) from continuing operations before income taxes | -424 | -52 | ||
Benefit from (provision for) income taxes | 101 | 17 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Income (loss) from discontinued operations, net of tax | -17 | -12 | ||
Net income (loss) | -340 | -47 | ||
Other comprehensive income (loss): | ' | ' | ||
Foreign currency translation, net | -60 | -46 | ||
Unrealized gain (loss) on derivative instruments, net of tax | 3 | 2 | ||
Comprehensive income (loss) | -397 | -91 | ||
SunGard Data Systems Inc. | ' | ' | ||
Revenue: | ' | ' | ||
Services | 601 | 598 | ||
License and resale fees | 44 | 33 | ||
Total products and services | 645 | 631 | ||
Reimbursed expenses | 8 | 8 | ||
Total revenue | 653 | 639 | ||
Costs and expenses: | ' | ' | ||
Cost of sales and direct operating (excluding depreciation) | 263 | 261 | ||
Sales, marketing and administration | 170 | 155 | ||
Product development and maintenance | 103 | 108 | ||
Depreciation | 24 | 24 | ||
Amortization of acquisition-related intangible assets | 43 | 48 | ||
Trade name impairment charges | 339 | ' | ||
Total costs and expenses | 942 | 596 | ||
Operating income (loss) | -289 | 43 | ||
Interest expense and amortization of deferred financing fees | -74 | -90 | ||
Loss on extinguishment of debt | -61 | -5 | ||
Income (loss) from continuing operations before income taxes | -424 | -52 | ||
Benefit from (provision for) income taxes | 101 | 17 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Income (loss) from discontinued operations, net of tax | -17 | -12 | ||
Net income (loss) | -340 | -47 | ||
Net income (loss) attributable to SunGard Capital Corp. | -340 | ' | ||
Other comprehensive income (loss): | ' | ' | ||
Foreign currency translation, net | -60 | -46 | ||
Unrealized gain (loss) on derivative instruments, net of tax | 3 | 2 | ||
Comprehensive income (loss) | ($397) | ($91) | ||
[1] | Includes amortization of capitalized software. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | ($340) | ($47) | ||
Income (loss) from discontinued operations | -17 | -12 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Reconciliation of income (loss) from continuing operations to cash flow from (used in) operations: | ' | ' | ||
Depreciation and amortization | 67 | 72 | ||
Trade name impairment charge | 339 | ' | ||
Deferred income tax provision (benefit) | -83 | -7 | ||
Stock compensation expense | 9 | 9 | ||
Amortization of deferred financing costs and debt discount | 7 | 16 | ||
Loss on extinguishment of debt | 61 | 5 | ||
Changes in working capital: | ' | ' | ||
Accounts receivable and other current assets | 113 | 119 | ||
Accounts payable and accrued expenses | -106 | -70 | ||
Deferred revenue | 2 | -2 | ||
Cash flow from (used in) continuing operations | 86 | 107 | ||
Cash flow from (used in) discontinued operations | 36 | 71 | ||
Cash flow from (used in) operations | 122 | 178 | ||
Investment activities: | ' | ' | ||
Cash paid for acquired businesses, net of cash acquired | ' | -1 | ||
Cash paid for property and equipment, and software | -28 | -24 | ||
Other investing activities | ' | 1 | ||
Cash provided by (used in) continuing operations | -28 | -24 | ||
Cash provided by (used in) discontinued operations | 5 | -22 | ||
Cash provided by (used in) investment activities | -23 | -46 | ||
Financing activities: | ' | ' | ||
Cash received from borrowings, net of fees | -6 | 2,174 | ||
Cash used to repay debt | -1,324 | -2,301 | ||
Cash used to purchase treasury stock | -4 | -3 | ||
Other financing activities | -4 | -2 | ||
Cash provided by (used in) continuing operations | -1,338 | -132 | ||
Cash provided by (used in) discontinued operations | 887 | -1 | ||
Cash provided by (used in) financing activities | -451 | -133 | ||
Effect of exchange rate changes on cash | 1 | -8 | ||
Increase (decrease) in cash and cash equivalents | -351 | -9 | ||
Beginning cash and cash equivalents | 706 | 546 | ||
Ending cash and cash equivalents | 355 | 537 | ||
Supplemental information: | ' | ' | ||
Interest paid | 58 | 49 | ||
Income taxes paid, net of refunds of $1 million, $12 million, respectively | 4 | 29 | ||
Non-cash financing activities: | ' | ' | ||
Distribution of net assets of SpinCo (see Note 1) | 223 | ' | ||
Receipt of SpinCo Notes in connection with the split-off (see Note 1) | 425 | ' | ||
Exchange of SpinCo Notes for SunGard Notes (see Note 6) | 389 | ' | ||
SunGard Capital Corp. II | ' | ' | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | -340 | -47 | ||
Income (loss) from discontinued operations | -17 | -12 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Reconciliation of income (loss) from continuing operations to cash flow from (used in) operations: | ' | ' | ||
Depreciation and amortization | 67 | 72 | ||
Trade name impairment charge | 339 | ' | ||
Deferred income tax provision (benefit) | -83 | -7 | ||
Stock compensation expense | 9 | 9 | ||
Amortization of deferred financing costs and debt discount | 7 | 16 | ||
Loss on extinguishment of debt | 61 | 5 | ||
Changes in working capital: | ' | ' | ||
Accounts receivable and other current assets | 113 | 119 | ||
Accounts payable and accrued expenses | -106 | -69 | ||
Deferred revenue | 2 | -2 | ||
Cash flow from (used in) continuing operations | 86 | 108 | ||
Cash flow from (used in) discontinued operations | 36 | 71 | ||
Cash flow from (used in) operations | 122 | 179 | ||
Investment activities: | ' | ' | ||
Cash paid for acquired businesses, net of cash acquired | ' | -1 | ||
Cash paid for property and equipment, and software | -28 | -24 | ||
Other investing activities | ' | 1 | ||
Cash provided by (used in) continuing operations | -28 | -24 | ||
Cash provided by (used in) discontinued operations | 5 | -22 | ||
Cash provided by (used in) investment activities | -23 | -46 | ||
Financing activities: | ' | ' | ||
Cash received from borrowings, net of fees | -6 | 2,174 | ||
Cash used to repay debt | -1,324 | -2,301 | ||
Cash used to purchase treasury stock | -2 | -1 | ||
Other financing activities | -6 | -5 | ||
Cash provided by (used in) continuing operations | -1,338 | -133 | ||
Cash provided by (used in) discontinued operations | 887 | -1 | ||
Cash provided by (used in) financing activities | -451 | -134 | ||
Effect of exchange rate changes on cash | 1 | -8 | ||
Increase (decrease) in cash and cash equivalents | -351 | -9 | ||
Beginning cash and cash equivalents | 706 | 546 | ||
Ending cash and cash equivalents | 355 | 537 | ||
Supplemental information: | ' | ' | ||
Interest paid | 58 | 49 | ||
Income taxes paid, net of refunds of $1 million, $12 million, respectively | 4 | 29 | ||
Non-cash financing activities: | ' | ' | ||
Distribution of net assets of SpinCo (see Note 1) | 223 | ' | ||
Receipt of SpinCo Notes in connection with the split-off (see Note 1) | 425 | ' | ||
Exchange of SpinCo Notes for SunGard Notes (see Note 6) | 389 | ' | ||
SunGard Data Systems Inc. | ' | ' | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | -340 | -47 | ||
Income (loss) from discontinued operations | -17 | -12 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Reconciliation of income (loss) from continuing operations to cash flow from (used in) operations: | ' | ' | ||
Depreciation and amortization | 67 | 72 | ||
Trade name impairment charge | 339 | ' | ||
Deferred income tax provision (benefit) | -83 | -7 | ||
Stock compensation expense | 9 | 9 | ||
Amortization of deferred financing costs and debt discount | 7 | 16 | ||
Loss on extinguishment of debt | 61 | 5 | ||
Changes in working capital: | ' | ' | ||
Accounts receivable and other current assets | 113 | 119 | ||
Accounts payable and accrued expenses | -106 | -69 | ||
Deferred revenue | 2 | -2 | ||
Cash flow from (used in) continuing operations | 86 | 108 | ||
Cash flow from (used in) discontinued operations | 36 | 71 | ||
Cash flow from (used in) operations | 122 | [1] | 179 | [2] |
Investment activities: | ' | ' | ||
Cash paid for acquired businesses, net of cash acquired | ' | -1 | ||
Cash paid for property and equipment, and software | -28 | -24 | ||
Other investing activities | ' | 1 | ||
Cash provided by (used in) continuing operations | -28 | -24 | ||
Cash provided by (used in) discontinued operations | 5 | -22 | ||
Cash provided by (used in) investment activities | -23 | -46 | ||
Financing activities: | ' | ' | ||
Cash received from borrowings, net of fees | -6 | 2,174 | ||
Cash used to repay debt | -1,324 | -2,301 | ||
Other financing activities | -8 | -6 | ||
Cash provided by (used in) continuing operations | -1,338 | -133 | ||
Cash provided by (used in) discontinued operations | 887 | -1 | ||
Cash provided by (used in) financing activities | -451 | -134 | ||
Effect of exchange rate changes on cash | 1 | -8 | ||
Increase (decrease) in cash and cash equivalents | -351 | -9 | ||
Beginning cash and cash equivalents | 706 | [3] | 546 | [3] |
Ending cash and cash equivalents | 355 | 537 | [3] | |
Supplemental information: | ' | ' | ||
Interest paid | 58 | 49 | ||
Income taxes paid, net of refunds of $1 million, $12 million, respectively | 4 | 29 | ||
Non-cash financing activities: | ' | ' | ||
Distribution of net assets of SpinCo (see Note 1) | 227 | ' | ||
Receipt of SpinCo Notes in connection with the split-off (see Note 1) | 425 | ' | ||
Exchange of SpinCo Notes for SunGard Notes (see Note 6) | $389 | ' | ||
[1] | Cash flows from (used in) operations for the Parent Company and Guarantor Subsidiaries do not include any amounts related to their respective stand-alone income tax liabilities as the Company has not historically cash settled the intercompany balances associated with the push down of such liabilities to the Guarantor Subsidiaries. During the quarter ended March 31, 2014, the Parent Company allocated approximately $67 million of tax liabilities to its Guarantor Subsidiaries. During the first quarter of 2014, the Parent Company and the Guarantor Subsidiaries decided to effect a non-cash settlement of the accumulated income tax receivable and payable balances balances in the amount of approximately $1.5 billion. Therefore, these transactions are not reflected in the Condensed Consolidating Statement of Cash Flows presented above. | |||
[2] | Cash flows from (used in) operations for the Parent Company and Guarantor Subsidiaries do not include any amounts related to their respective stand-alone income tax liabilities as the Company has not historically cash settled the intercompany balances associated with the push down of such liabilities to the Guarantor Subsidiaries. During the quarter ended March 31, 2013, the Parent Company allocated approximately $53 million of tax liabilities to its Guarantor Subsidiaries. | |||
[3] | Includes cash of discontinued operations |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Beginning cash and cash equivalents, cash of discontinued operations | $31 | $11 |
Ending cash and cash equivalents, cash of discontinued operations | ' | 35 |
Income taxes paid, net of refunds | 12 | 1 |
SunGard Capital Corp. II | ' | ' |
Beginning cash and cash equivalents, cash of discontinued operations | 31 | 11 |
Ending cash and cash equivalents, cash of discontinued operations | ' | 35 |
Income taxes paid, net of refunds | 12 | 1 |
SunGard Data Systems Inc. | ' | ' |
Beginning cash and cash equivalents, cash of discontinued operations | 31 | 11 |
Ending cash and cash equivalents, cash of discontinued operations | ' | 35 |
Income taxes paid, net of refunds | $12 | $1 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
1. Basis of Presentation: | |
SunGard Data Systems Inc. (“SunGard”) was acquired on August 11, 2005 in a leveraged buy-out (the “LBO”) by a consortium of private equity investment funds associated with Bain Capital Partners, The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis Roberts & Co., Providence Equity Partners, Silver Lake and TPG (collectively, the “Sponsors”). | |
SunGard is a wholly owned subsidiary of SunGard Holdco LLC, which is wholly owned by SunGard Holding Corp., which is wholly owned by SunGard Capital Corp. II (“SCCII”), which is a subsidiary of SunGard Capital Corp. (“SCC”). All four of these companies were formed for the purpose of facilitating the LBO and are collectively referred to as the “Holding Companies.” SCC, SCCII and SunGard are separate reporting companies and, together with their direct and indirect subsidiaries, are collectively referred to as the “Company.” The Holding Companies have no other operations beyond those of their ownership of SunGard. | |
On March 31, 2014, SunGard completed its previously announced split-off of its Availability Services (“AS”) business to its existing stockholders, including its private equity owners, on a tax-free and pro-rata basis. As a result, the assets and liabilities of the AS business were contributed to a new subsidiary, and then SunGard transferred all of its ownership interests in that subsidiary to Sungard Availability Services Capital, Inc. (“SpinCo”) in exchange for common stock of SpinCo, approximately $425 million of SpinCo senior notes, and $1,005 million of net cash proceeds from the issuance of an AS term loan facility (“SpinCo Term Loan”). Immediately after these transactions, SunGard distributed the common stock of SpinCo through SunGard’s ownership chain ultimately to SCCII, and then all shareholders of preferred stock of SCCII exchanged a portion of their shares of preferred stock for all of the shares of common stock of SpinCo on a pro-rate basis. As a result, the preferred shareholders of SCCII own 100% of the common stock of SpinCo, which is a separate, independent company. The distribution of AS’ nets assets in connection with the split-off was based on the recorded amount of the net assets and did not result in a gain or loss upon disposal in the consolidated financial statements. | |
The AS business, as well as two small businesses within the Financial Systems (“FS”) segment which were sold on January 31, 2014, have been included in our financial results as discontinued operations for all periods presented. | |
SunGard is one of the world’s leading software and technology services companies and has two reportable segments: FS and Public Sector & Education (“PS&E”). The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. | |
The accompanying interim consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Interim financial reporting does not include all of the information and footnotes required by GAAP for annual financial statements. The interim financial information is unaudited, but, in the opinion of management, includes all adjustments, consisting only of normal recurring adjustments necessary to provide a fair statement of results for the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
As discussed in Note 2, the presentation of certain prior-year amounts has been reclassified to conform to the current-year presentation. | |
Recent Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in Foreign Entity.”. This new guidance clarified that when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business, the parent should only release the related cumulative translation adjustment (“CTA”) into net income if the deconsolidation or derecognition results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets resided. The adoption of ASU 2013-05 on January 1, 2014 did not have an impact on our consolidated financial statements as we have historically accounted for the removal of CTA related to sales of non-U.S. entities consistent with this new guidance. | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” to eliminate diversity in practice in the presentation of unrecognized tax benefits in those instances. This ASU requires that companies net their unrecognized tax benefits against all same-jurisdiction deferred tax assets for net operating losses or tax credit carryforwards that would be used to settle the position with a tax authority to the extent such deferred tax assets are available. If this criteria does not apply or the tax law of the applicable jurisdiction does not require the entity to use and the entity does not intend to use the deferred tax assets for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of ASU 2013-11 on January 1, 2014 did not have a material impact on the consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” that changes the criteria for reporting a discontinued operation. According to the new guidance, only disposals of a component that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results is a discontinued operation. The new guidance also requires expanded disclosures about discontinued operations and disposals of a significant part of an entity that does not qualify for discontinued operations reporting. ASU 2014-08 is effective beginning January 1, 2015 with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously-issued financial statements. The adoption of ASU 2014-08 on January 1, 2015 is not expected to have a material impact on the Company’s consolidated financial statements. |
Expense_Classification
Expense Classification | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Expense Classification | ' | |||||||||||||||||||
2. Expense Classification: | ||||||||||||||||||||
Effective January 1, 2014, within the Consolidated Statements of Comprehensive Income (Loss), the Company changed its presentation of facilities and information technology-related expenses that are not directly associated with the delivery of its products and services. Formerly, the Company presented these expenses within sales, marketing and administration expense. The Company’s new method for presenting facilities and information technology-related expenses includes allocating these items to all of our functional areas, which the Company considers preferable as it more accurately reflects the actual cost of these functions. The presentation of prior year amounts in the consolidated financial statements has been reclassified to conform to the current year presentation. There was no impact on total reported costs and expenses for any period as a result of the change. | ||||||||||||||||||||
The impact of this change within the functional areas, including the impact of discontinued operations, is as follows for the three months ended March 31, 2013 (in millions): | ||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
As reported | Impact of discontinued operations | As reported - adjusted for discontinued operations | As reclassified | Change | ||||||||||||||||
Cost of sales and direct operating (excluding depreciation) | $ | 437 | $ | (190 | ) | $ | 247 | $ | 261 | $ | 14 | |||||||||
Sales, marketing and administration | 242 | (61 | ) | 181 | 155 | (26 | ) | |||||||||||||
Product development and maintenance | 100 | (4 | ) | 96 | 108 | 12 | ||||||||||||||
Total functional expenses | $ | 779 | $ | (255 | ) | $ | 524 | $ | 524 | $ | - | |||||||||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Discontinued Operations | ' | |||||||
3. Discontinued Operations: | ||||||||
On January 31, 2014, the Company completed the sale of two small businesses within the FS segment in exchange for €27 million paid at closing, €9 million to be paid no later than March 2016 (“deferred purchase price”) and €2 million to be paid upon the successful assignment of certain customer contracts. The deferred purchase price is unconditional and is secured by a bank guarantee. | ||||||||
On March 31, 2014, SunGard completed the split-off of its AS business on a tax-free basis to its existing stockholders, including its private equity owners. These businesses have been included in our financial results as discontinued operations for all periods presented. | ||||||||
Please refer to Note 1 for additional information concerning discontinued operations. | ||||||||
The results for discontinued operations for the three months ended March 31, 2013 and 2014 were as follows (in millions): | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Revenue | $ | 356 | $ | 338 | ||||
Operating income (loss) | 13 | (26 | ) | |||||
Interest expense | (18 | ) | (18 | ) | ||||
Gain (loss) on sale of business | 1 | 23 | ||||||
Income (loss) before income taxes | (4 | ) | (21 | ) | ||||
Benefit from (provision for) income taxes | (8 | ) | 4 | |||||
Income (loss) from discontinued operations | $ | (12 | ) | $ | (17 | ) | ||
Assets of discontinued operations and liabilities of discontinued operations consisted of the following at December 31, 2013 (in millions): | ||||||||
December 31, | ||||||||
2013 | ||||||||
Cash and cash equivalents | $ | 31 | ||||||
Trade receivable, net | 227 | |||||||
Prepaid expenses and other current assets | 70 | |||||||
Property and equipment, net | 669 | |||||||
Software products, net | 40 | |||||||
Customer base, net | 734 | |||||||
Other | 10 | |||||||
Goodwill | 735 | |||||||
Assets of discontinued operations | $ | 2,516 | ||||||
Accounts Payable | $ | 47 | ||||||
Accrued compensation and benefits | 45 | |||||||
Other accrued expenses | 78 | |||||||
Deferred revenue | 260 | |||||||
Current Portion of Long-term Debt | 2 | |||||||
Long-term Debt | 5 | |||||||
Deferred Income Taxes | 282 | |||||||
Other Long-term liabilities | 80 | |||||||
Liabilities of discontinued operations | $ | 799 | ||||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Intangible Assets and Goodwill | ' | |||||||||||||||||||||||||
4. Intangible Assets and Goodwill: | ||||||||||||||||||||||||||
Trade Name | ||||||||||||||||||||||||||
The trade name intangible asset represents the value of the SunGard trade name and is an indefinite-lived asset not subject to amortization. The split-off of the AS business triggered an interim impairment test of the carrying value of the SunGard trade name as of March 31, 2014 due to changes in how the trade name is being used following the split-off. The Company utilized an income approach known as the relief-from-royalty method to determine the fair value of the SunGard trade name. Under this method, a royalty rate was applied to SunGard’s projected revenues to determine the annual cash savings attributable to ownership of the trade name. This amount was then tax-effected and discounted to present value to ultimately arrive at the estimated fair value of the trade name. | ||||||||||||||||||||||||||
The Company developed certain assumptions and estimates related to the calculation of fair value of its trade name. The fair value assumptions and estimates primarily included projections of future revenues, a royalty rate, a tax rate, and a discount rate. The loss of projected AS revenues due to the split-off had a significant negative impact on the results of the trade name valuation. Based on the results of the impairment test, the fair value of the trade name was determined to be lower than its carrying value and resulted in a $339 million impairment of the trade name as of March 31, 2014. | ||||||||||||||||||||||||||
In addition to future revenue projections, the assumed royalty rate and discount rate are critical assumptions considered in the trade name impairment test. Excluding any changes to future revenue projections or other assumptions, a 50 basis point decrease in the assumed royalty rate would have resulted in an additional impairment of the trade name asset of approximately $133 million (a 100 basis point decrease would result in an additional impairment of approximately $265 million). A 50 basis point increase in the discount rate would result in an additional impairment of the trade name asset of approximately $14 million (a 100 basis point increase would result in an additional impairment of approximately $28 million). Furthermore, to the extent that projected revenues decline in the future, the revenue supporting the trade name will decline, which may result in impairment charges. | ||||||||||||||||||||||||||
In connection with the split-off, SunGard and AS agreed to a two-year royalty-free period for AS’ limited use of the trade name, after which it will pay a pre-determined royalty rate based on its annual revenue for a specified number of years. As of March 31, 2014, SunGard transferred an $8 million “right-to-use” asset representing the value of AS’ limited right to use the “SunGard” trade name during the royalty-free period. | ||||||||||||||||||||||||||
The following table summarizes changes in the value of the trade name for the three months ended March 31, 2014 (in millions): | ||||||||||||||||||||||||||
Trade name, net | ||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,019 | ||||||||||||||||||||||||
Transfer limited "right to use" trade name asset to AS | (8 | ) | ||||||||||||||||||||||||
Trade name impairment | (339 | ) | ||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 672 | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
The following table summarizes the changes in goodwill by segment for the three months ended March 31, 2014 (in millions) and does not include any amounts related to the AS business, which is reflected as discontinued operations for all periods presented: | ||||||||||||||||||||||||||
Cost | Accumulated impairment | |||||||||||||||||||||||||
FS | PS&E | Subtotal | PS&E | Subtotal | Total | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 3,501 | $ | 544 | $ | 4,045 | $ | (217 | ) | $ | (217 | ) | $ | 3,828 | ||||||||||||
Adjustments related to the LBO and prior year acquisitions | (1 | ) | (1 | ) | (2 | ) | - | - | (2 | ) | ||||||||||||||||
Effect of foreign currency translation | 1 | - | 1 | - | - | 1 | ||||||||||||||||||||
Balance at March 31, 2014 | $ | 3,501 | $ | 543 | $ | 4,044 | $ | (217 | ) | $ | (217 | ) | $ | 3,827 | ||||||||||||
Intangible Asset amortization | ||||||||||||||||||||||||||
The total expected amortization of acquisition-related intangible assets for years ended December 31 is as follows (in millions): | ||||||||||||||||||||||||||
2014 | $ | 134 | ||||||||||||||||||||||||
2015 | 82 | |||||||||||||||||||||||||
2016 | 66 | |||||||||||||||||||||||||
2017 | 58 | |||||||||||||||||||||||||
2018 | 54 | |||||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
5. Accumulated Other Comprehensive Income: | |||||||||||||||||
The following table summarizes the unrealized gains (losses) on derivative instruments including the impact of components reclassified into net income from accumulated other comprehensive income for the three months ended March 31, 2013 and 2014 (in millions): | |||||||||||||||||
Three months ended March 31, | |||||||||||||||||
Other Comprehensive Income Components | 2013 | 2014 | Affected Line Item in the Statement of Comprehensive Income (Loss) for Components Reclassified from OCI | ||||||||||||||
Unrealized gain (loss) on derivative instruments and other | $ | 1 | $ | 2 | |||||||||||||
Loss (gain) on derivatives reclassified into income: | |||||||||||||||||
Interest rate contracts | 3 | 2 | Interest expense and amortization of deferred financing fees | ||||||||||||||
Forward currency hedges | (1 | ) | (1 | ) | Cost of sales and direct operating | ||||||||||||
Total reclassified into income | 2 | 1 | |||||||||||||||
Income tax benefit (expense) | (1 | ) | - | ||||||||||||||
Amounts reclassified from accumulated other | 1 | 1 | |||||||||||||||
comprehensive income net of tax | |||||||||||||||||
Unrealized gain (loss) on derivative instruments, net of tax | $ | 2 | $ | 3 | |||||||||||||
The following table provides a rollforward of the components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2014 (in millions): | |||||||||||||||||
Gains and Losses on | Currency | Other | Accumulated Other Comprehensive Income | ||||||||||||||
Cash Flow Hedges | Translation | ||||||||||||||||
Balance at December 31, 2013 | $ | 4 | $ | 15 | $ | (3 | ) | $ | 16 | ||||||||
Other comprehensive income before | 2 | 22 | - | 24 | |||||||||||||
reclassifications | |||||||||||||||||
Split-off of AS from SunGard | - | (82 | ) | - | (82 | ) | |||||||||||
Amounts reclassified from accumulated other | 1 | - | - | 1 | |||||||||||||
comprehensive income, net of tax | |||||||||||||||||
Net current-period other comprehensive income (loss) | 3 | (60 | ) | - | (57 | ) | |||||||||||
Balance at March 31, 2014 | $ | 7 | $ | (45 | ) | $ | (3 | ) | $ | (41 | ) | ||||||
Debt_and_Derivatives
Debt and Derivatives | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Debt and Derivatives | ' | ||||||||||||
6. Debt and Derivatives: | |||||||||||||
On January 15, 2014, SunGard paid $250 million to retire the Senior Secured Notes due 2014. On January 31, 2014, SunGard removed AS as a participant in its secured accounts receivable facility and repaid $60 million of the term loan. | |||||||||||||
On February 7, 2014, SunGard amended and restated is Credit Agreement (the “Seventh Amendment”). Most notably, the Seventh Amendment: | |||||||||||||
· | amends certain covenants and other provisions of the Credit Agreement in order to permit the split-off of AS, including (i) the ability to effect the split-off without requiring an initial public offering, (ii) permitting AS to incur up to $1.5 billion of indebtedness in connection with the split-off, and (iii) SunGard’s total secured leverage ratio (less cash and cash equivalents in excess of $50 million), after giving pro forma effect to the split-off, to increase no more than 0.60x of Adjusted EBITDA at the time of the split-off; and | ||||||||||||
· | modifies certain covenants and other provisions in order to, among other things (i) modify the financial maintenance covenant included therein, and (ii) permit the Company and its affiliates to repurchase term loans. | ||||||||||||
On February 28, 2014, SunGard repaid at maturity the remaining $7 million Tranche A term loan under the Senior Secured Credit Facilities. | |||||||||||||
On March 31, 2014, SunGard used the $1,005 million net cash proceeds from the issuance of the SpinCo Term Loan to repay approximately $27 million of its tranche C term loan, $713 million of its tranche D term loan and $265 million of its tranche E term loan. SunGard also exchanged the SpinCo Notes with an aggregate principal amount of approximately $425 million for an aggregate principal amount of approximately $389 million of existing SunGard 7 3/8% senior notes due 2018 (“SunGard Notes”) which were then retired. The retirement of the SunGard Notes resulted in a $36 million loss on extinguishment of debt during the three months ended March 31, 2014. In addition, SunGard wrote-off approximately $25 million of capitalized deferred financing fees resulting from the repayment or retirement of debt during the three months ended March 31, 2014. | |||||||||||||
Debt consisted of the following for continuing operations (in millions): | |||||||||||||
31-Dec-13 | 31-Mar-14 | ||||||||||||
Senior Secured Credit Facilities: | |||||||||||||
Secured revolving credit facility due March 8, 2018 | $ | - | $ | - | |||||||||
Tranche A due February 28, 2014, effective interest rate of 1.92% | 7 | - | |||||||||||
Tranche C due February 28, 2017, effective interest rate of 4.41% and 4.44% | 427 | 400 | |||||||||||
Tranche D due January 31, 2020, effective interest rate of 4.50% | 713 | - | |||||||||||
Tranche E due March 8, 2020, effective interest rate of 4.10% and 4.31% | 2,183 | 1,918 | |||||||||||
Total Senior Secured Credit Facilities | 3,330 | 2,318 | |||||||||||
Senior Secured Notes due 2014 at 4.875% | 250 | - | |||||||||||
Senior Notes due 2018 at 7.375% | 900 | 511 | |||||||||||
Senior Notes due 2020 at 7.625% | 700 | 700 | |||||||||||
Senior Subordinated Notes due 2019 at 6.625% | 1,000 | 1,000 | |||||||||||
Secured accounts receivable facility, at 3.67% and 3.66% | 200 | 140 | |||||||||||
Other, primarily foreign bank debt, acquisition purchase price and capital lease obligations | 4 | 2 | |||||||||||
Total debt | 6,384 | 4,671 | |||||||||||
Short-term borrowings and current portion of long-term debt | (290 | ) | (2 | ) | |||||||||
Long-term debt | $ | 6,094 | $ | 4,669 | |||||||||
Future Maturities | |||||||||||||
At March 31, 2014, the contractual future maturities of debt are as follows (in millions): | |||||||||||||
Contractual | |||||||||||||
2014 | $ | 2 | |||||||||||
2015 | - | ||||||||||||
2016 | - | ||||||||||||
2017 | 540 | ||||||||||||
2018 | 511 | ||||||||||||
Thereafter | 3,618 | ||||||||||||
$ | 4,671 | ||||||||||||
SunGard uses interest rate swaps to manage the amount of its floating rate debt in order to reduce its exposure to variable rate interest payments associated with the Credit Agreement. Each swap agreement is designated as a cash flow hedge. SunGard pays a stream of fixed interest payments for the term of the swap, and in turn, receives variable interest payments based on LIBOR. At March 31, 2014, one-month and three-month LIBOR were 0.15% and 0.23%, respectively. The net receipt or payment from the interest rate swap agreements is included in the Consolidated Statements of Comprehensive Income (Loss) as interest expense. The interest rates in the components of the debt table above reflect the impact of the swaps. | |||||||||||||
A summary of the Company’s interest rate swaps at March 31, 2014 follows (in millions): | |||||||||||||
Inception | Maturity | Notional Amount (in millions) | Interest rate paid | Interest rate received (LIBOR) | |||||||||
August-September 2012 | Feb-17 | $ | 400 | 0.69% | 1-Month | ||||||||
Jun-13 | Jun-19 | 100 | 1.86% | 3-Month | |||||||||
Sep-13 | Jun-19 | 100 | 2.26% | 3-Month | |||||||||
Feb-14 | Mar-20 | 300 | 2.27% | 3-Month | |||||||||
$ | 900 | 1.52% | |||||||||||
The fair values of interest rate swaps designated as cash flow hedging instruments are $4 million at each of December 31, 2013 and March 31, 2014 and are included in other assets. | |||||||||||||
The Company has no ineffectiveness related to its swap agreements. The Company expects to reclassify in the next twelve months approximately $8 million from other comprehensive income (loss) into earnings related to the Company’s interest rate swaps based on the borrowing rates at March 31, 2014. | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||
7. Fair Value Measurements: | |||||||||||||||||||
The following table summarizes assets and liabilities measured at fair value on a recurring basis at March 31, 2014 (in millions): | |||||||||||||||||||
Fair Value Measures Using | |||||||||||||||||||
Balance Sheet Caption | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Money market funds | Cash and cash equivalents | $ | 83 | $ | - | $ | - | $ | 83 | ||||||||||
Interest rate swap agreements | Other assets | - | 4 | - | 4 | ||||||||||||||
Currency forward contracts | Prepaid expenses and other current assets | - | 4 | - | 4 | ||||||||||||||
Total | $ | 83 | $ | 8 | $ | - | $ | 91 | |||||||||||
The following table summarizes assets and liabilities measured at fair value on a recurring basis at December 31, 2013 (in millions): | |||||||||||||||||||
Fair Value Measures Using | |||||||||||||||||||
Balance Sheet Caption | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Money market funds | Cash and cash equivalents | $ | 407 | $ | - | $ | - | $ | 407 | ||||||||||
Interest rate swap agreements | Other assets | - | 4 | - | 4 | ||||||||||||||
Currency forward contracts | Prepaid expenses and other current assets | - | 2 | - | 2 | ||||||||||||||
Total | $ | 407 | $ | 6 | $ | - | $ | 413 | |||||||||||
A Level 1 fair value measure is based upon quoted prices in active markets for identical assets or liabilities. A Level 2 fair value measure is based upon quoted prices for similar assets and liabilities in active markets or inputs that are observable. A Level 3 fair value measure is based upon inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). | |||||||||||||||||||
Money market funds are recognized and measured at fair value in the Company’s financial statements. Fair values of the interest rate swap agreements are calculated using a discounted cash flow model using observable applicable market swap rates and assumptions and are compared to market valuations obtained from brokers. | |||||||||||||||||||
The Company uses currency forward contracts to manage its exposure to fluctuations in costs caused by variations in Indian Rupee (“INR”) exchange rates. These INR forward contracts are designated as cash flow hedges. The fair value of these currency forward contracts is determined using currency exchange market rates, obtained from reliable, independent, third party banks, at the balance sheet date. The fair value of forward contracts is subject to changes in currency exchange rates. The Company has no ineffectiveness related to its use of currency forward contracts. | |||||||||||||||||||
Certain assets and liabilities are measured on a non-recurring basis. During the first quarter of 2014, the trade name was written down to a fair value of $672 million due to the recognition of a $339 million impairment charge, which was the result of the split-off of the AS business (see Note 4). | |||||||||||||||||||
The fair value of the trade name is categorized as Level 3, a fair value measurement using significant unobservable inputs, and is estimated by discounted cash flows based on projected future revenues. This requires the use of various assumptions including projections of future cash flows, perpetual growth rates and discount rates. | |||||||||||||||||||
The following table summarizes assets and liabilities measured at fair value on a non-recurring basis at March 31, 2014 (in millions): | |||||||||||||||||||
Fair Value Measures Using | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | |||||||||||||||||||
Trade name | $ | - | $ | - | $ | 672 | |||||||||||||
The following table presents the carrying amount and estimated fair value of the Company’s debt, including the current portion and excluding the interest rate swaps, as of December 31, 2013 and March 31, 2014 (in millions): | |||||||||||||||||||
31-Dec-13 | 31-Mar-14 | ||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||
Floating rate debt | $ | 3,530 | $ | 3,548 | $ | 2,458 | $ | 2,464 | |||||||||||
Fixed rate debt | 2,862 | 3,024 | 2,213 | 2,370 | |||||||||||||||
The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, to the extent the underlying liability will be settled in cash, approximate carrying values because of the short-term nature of these instruments. Derivative financial instruments are recorded at fair value. The fair value of the Company’s floating rate and fixed rate long-term debt (Level 2) is determined using actual market quotes and benchmark yields received from independent vendors. |
Equity
Equity | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Equity | ' | ||||||||||||||||||||||||||||||||||||||||||||
8. Equity: | |||||||||||||||||||||||||||||||||||||||||||||
On March 31, 2014, SunGard completed the split-off of its AS business to its existing stockholders, including its private equity owners, on a tax-free and pro-rata basis. The following rollforwards of stockholders’ equity for SCC, SCCII, and SunGard and non-controlling interest for SCC are provided to illustrate the impact of the AS split-off on stockholders’ equity and non-controlling interest for the three months ended March 31, 2014. | |||||||||||||||||||||||||||||||||||||||||||||
On March 31, 2014, SCCII exchanged all of the common stock of SpinCo and received 2,358,065 shares of its preferred stock, which was recorded as treasury stock at the book value of the investment SCCII had in SpinCo. | |||||||||||||||||||||||||||||||||||||||||||||
As a result of the split-off, the proportion of preferred stock of SCCII included in each “Unit” of equity in the Parent Companies changed from .05 shares to .038 shares, while there was no change in the proporation of the Class A or Class L common stock of SCC. Accordingly, post-split, a “Unit” consists 1.3 shares of Class A common stock and 0.1444 shares of Class L common stock of SCC and 0.038 shares of preferred stock of SCCII, respectively. | |||||||||||||||||||||||||||||||||||||||||||||
Also on March 31, 2014, in conjunction with the exchange of preferred stock of SCCII for the common stock of SpinCo, SCC and SCCII amended all outstanding share-based awards to comply with the existing anti-dilution provisions in the SunGard 2005 Management Incentive Plan as amended (the “Plan”), and respective share-based award agreements. The anti-dilution provisions require modification of the share-based awards in certain circumstances in order to prevent enlargement or dilution of benefits intended to be made available under the Plan. | |||||||||||||||||||||||||||||||||||||||||||||
To comply with the requirement of the Plan, all outstanding options and other long-term incentive equity awards were modified to (i) maintain the ratio of the exercise or base price to the fair market value of the stock prior to the modification and (ii) increase the quantity granted to maintain the intrinsic value of the awards based on the new Unit price of SunGard and the new SpinCo share price, as applicable. In addition, all outstanding share-based awards were modified such that employees remaining with SunGard would hold awards in SunGard only and employees of AS would hold awards in SpinCo only. In order to achieve this result, all outstanding awards held by employees of AS were converted post-split into AS Awards. There was no incremental stock-based compensation expense as a result of these modifications. | |||||||||||||||||||||||||||||||||||||||||||||
In addition, all outstanding share-based awards were modified such that employees remaining with SunGard would receive awards in SunGard only (“SunGard Awards”) and employees of AS would receive awards in SpinCo only (“AS Awards”). In order to achieve this result, all SunGard Awards and AS Awards were modified to increase the quantity granted to maintain intrinsic value based on the new Unit price of SunGard and the new SpinCo share price, as applicable. Further, all outstanding options and share appreciation units were modified to maintain the ratio of the exercise price to the fair market value of the stock before the modification. There was no incremental stock-based compensation expense related to SunGard or AS awards as a result of the modifications. | |||||||||||||||||||||||||||||||||||||||||||||
A rollforward of SCC’s stockholders’ equity for the three months ended March 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
SunGard Capital Corp. stockholders | |||||||||||||||||||||||||||||||||||||||||||||
Permanent equity | |||||||||||||||||||||||||||||||||||||||||||||
Class L - temporary equity | Class A - temporary equity | Capital in excess of par value | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Total Permanent equity | |||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 58 | $ | 4 | $ | 2,482 | $ | (47 | ) | $ | (3,497 | ) | $ | 16 | $ | (1,046 | ) | ||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | (390 | ) | - | (390 | ) | ||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | - | - | - | - | 22 | 22 | ||||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivative | - | - | - | - | - | 3 | 3 | ||||||||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | - | - | 11 | - | - | - | 11 | ||||||||||||||||||||||||||||||||||||||
Issuance of common and preferred stock | - | - | (3 | ) | 5 | - | - | 2 | |||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | (2 | ) | - | - | (2 | ) | ||||||||||||||||||||||||||||||||||||
Impact of exchange of SpinCo common | - | - | 171 | - | 4 | (82 | ) | 93 | |||||||||||||||||||||||||||||||||||||
stock for SCCII preferred stock | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of SunGard | 3 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Awards | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of AS Awards | (8 | ) | - | 13 | - | - | - | 13 | |||||||||||||||||||||||||||||||||||||
Transfer intrinsic value of vested | 3 | - | (4 | ) | - | - | - | (4 | ) | ||||||||||||||||||||||||||||||||||||
restricted stock units to temporary | |||||||||||||||||||||||||||||||||||||||||||||
equity | |||||||||||||||||||||||||||||||||||||||||||||
Termination of put options due to | (7 | ) | (1 | ) | 7 | - | - | - | 7 | ||||||||||||||||||||||||||||||||||||
employee terminations | |||||||||||||||||||||||||||||||||||||||||||||
Other | - | - | (4 | ) | - | - | - | (4 | ) | ||||||||||||||||||||||||||||||||||||
Balances at March 31, 2014 | $ | 49 | $ | 3 | $ | 2,673 | $ | (44 | ) | $ | (3,883 | ) | $ | (41 | ) | $ | (1,295 | ) | |||||||||||||||||||||||||||
A rollforward of SCC’s noncontrolling interest for the three months ended March 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||||||
Temporary equity | Permanent equity | Total | |||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 42 | $ | 1,741 | $ | 1,783 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | - | 50 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common and preferred stock | (1 | ) | - | (1 | ) | ||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||||||||
Impact of exchange of SpinCo common | (1 | ) | (428 | ) | (429 | ) | |||||||||||||||||||||||||||||||||||||||
stock for SCCII preferred stock | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of SunGard | (4 | ) | - | (4 | ) | ||||||||||||||||||||||||||||||||||||||||
Awards | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of AS Awards | (6 | ) | - | (6 | ) | ||||||||||||||||||||||||||||||||||||||||
Transfer intrinsic value of vested | 2 | - | 2 | ||||||||||||||||||||||||||||||||||||||||||
restricted stock units to temporary | |||||||||||||||||||||||||||||||||||||||||||||
equity | |||||||||||||||||||||||||||||||||||||||||||||
Termination of put options due to | (4 | ) | 4 | - | |||||||||||||||||||||||||||||||||||||||||
employee terminations | |||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2014 | $ | 28 | $ | 1,365 | $ | 1,393 | |||||||||||||||||||||||||||||||||||||||
A rollforward of SCCII’s stockholders’ equity for the three months ended March 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
Permanent equity | |||||||||||||||||||||||||||||||||||||||||||||
Temporary equity | Capital in excess of par value | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Total permanent equity | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 37 | $ | 3,501 | $ | (29 | ) | $ | (2,708 | ) | $ | 16 | $ | 780 | |||||||||||||||||||||||||||||||
Net income (loss) | - | - | - | (340 | ) | - | (340 | ) | |||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | - | - | - | 22 | 22 | |||||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivative | - | - | - | - | 3 | 3 | |||||||||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | - | 11 | - | - | - | 11 | |||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | - | (3 | ) | 3 | - | - | - | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | (2 | ) | - | - | (2 | ) | |||||||||||||||||||||||||||||||||||||
Impact of exchange of SpinCo common | - | (4 | ) | (258 | ) | 4 | (82 | ) | (340 | ) | |||||||||||||||||||||||||||||||||||
stock for SCCII preferred stock | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of SunGard | (4 | ) | 4 | - | - | - | 4 | ||||||||||||||||||||||||||||||||||||||
Awards | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of AS Awards | (6 | ) | 6 | - | - | - | 6 | ||||||||||||||||||||||||||||||||||||||
Transfer intrinsic value of vested | 2 | (2 | ) | - | - | - | (2 | ) | |||||||||||||||||||||||||||||||||||||
restricted stock units to temporary | |||||||||||||||||||||||||||||||||||||||||||||
equity | |||||||||||||||||||||||||||||||||||||||||||||
Termination of put options due to | (4 | ) | 4 | - | - | - | 4 | ||||||||||||||||||||||||||||||||||||||
employee terminations | |||||||||||||||||||||||||||||||||||||||||||||
Other | - | (7 | ) | - | - | - | (7 | ) | |||||||||||||||||||||||||||||||||||||
Balances at March 31, 2014 | $ | 25 | $ | 3,510 | $ | (286 | ) | $ | (3,044 | ) | $ | (41 | ) | $ | 139 | ||||||||||||||||||||||||||||||
A rollforward of SunGard’s stockholders’ equity for the three months ended March 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
Capital in excess of par value | Accumulated deficit | Accumulated other comprehensive income (loss) | Total | ||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 3,513 | $ | (2,708 | ) | $ | 16 | $ | 821 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | - | (340 | ) | - | (340 | ) | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | - | 22 | 22 | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivative | - | - | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | 11 | - | - | 11 | |||||||||||||||||||||||||||||||||||||||||
Distribute AS to parent | (146 | ) | (112 | ) | (82 | ) | (340 | ) | |||||||||||||||||||||||||||||||||||||
Other | (8 | ) | - | - | (8 | ) | |||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2014 | $ | 3,370 | $ | (3,160 | ) | $ | (41 | ) | $ | 169 | |||||||||||||||||||||||||||||||||||
A rollforward of SCC’s stockholders’ equity for the three months ended March 31, 2013 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
SunGard Capital Corp. stockholders | Noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||||||
Class L - temporary equity | Class A - temporary equity | Permanent equity | Total | Temporary equity | Permanent equity | Total | |||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2012 | $ | 45 | $ | 5 | $ | (961 | ) | $ | (911 | ) | $ | 26 | $ | 1,575 | $ | 1,601 | |||||||||||||||||||||||||||||
Net income (loss) | - | - | (72 | ) | (72 | ) | - | 25 | 25 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | - | (46 | ) | (46 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivative | - | - | 2 | 2 | - | - | - | ||||||||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | - | - | 11 | 11 | - | - | - | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | (1 | ) | (1 | ) | - | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||
Transfer intrinsic value of vested | 7 | - | (12 | ) | (5 | ) | 5 | - | 5 | ||||||||||||||||||||||||||||||||||||
restricted stock units to temporary | |||||||||||||||||||||||||||||||||||||||||||||
equity | |||||||||||||||||||||||||||||||||||||||||||||
Termination of put options due to | (3 | ) | - | 3 | - | (1 | ) | 2 | 1 | ||||||||||||||||||||||||||||||||||||
employee terminations | |||||||||||||||||||||||||||||||||||||||||||||
Other | - | - | (2 | ) | (2 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||
Balances at March 31, 2013 | $ | 49 | $ | 5 | $ | (1,078 | ) | $ | (1,024 | ) | 30 | 1,600 | $ | 1,630 | |||||||||||||||||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
9. Income Taxes: | |
The effective income tax rates for the three month periods ended March 31, 2014 and 2013 were 24% and 34%, respectively. The Company’s effective tax rate reflects changes in the mix of income or losses in jurisdictions with a wide range of tax rates, permanent differences between GAAP and local tax laws, and the timing of recording discrete items. For the three months ended March 31, 2014, the benefit for income taxes includes a benefit of $138 million recorded as a discrete item related to the impairment of the trade name, an expense of $46 million recorded as a discrete item due to changes in certain state deferred tax rates, primarily driven by the change in the legal entity ownership of the trade name caused by the split-off of AS, and an expense of $9 million recorded as a discrete item to increase the valuation allowance on state net operating losses driven by the change in management’s judgment of their realizability due to the split-off of AS. In evaluating the realizability of deferred tax assets, management considered the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax planning strategies in making this assessment. Changes in the mix of income or the total amount of income for 2014 may significantly impact the estimated effective income tax rate for the year. | |
In connection with the split-off of AS, a Tax Sharing and Disaffiliation Agreement (the “Agreement”) was entered into on March 31, 2014 by the Company and entities comprising AS. Pursuant to the Agreement, the parties allocated responsibility for U.S. federal, state and local and foreign income and other taxes relating to taxable periods before and after the split-off, and provided for computation and apportionment of tax liabilities and tax benefits between the parties. AS is generally responsible for all taxes attributable to the AS business for periods subsequent to the split-off and non-income related taxes attributable to the AS business for any taxable period before and after the date of the split-off. The Company retains responsibility for U.S. federal, state and local and foreign income taxes for periods ending on or before the date of the split-off. See “Risks Relating to the Split-Off” for further discussion of provisions of this Agreement. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||
10. Segment Information: | ||||||||||||||||||||
Following the split-off of AS, the Company re-evaluated its reportable segments in accordance with ASC 280 and determined that the Company has two reportable segments: FS and PS&E. The disclosures below only reflect the segment results of continuing operations for the periods presented. | ||||||||||||||||||||
The Company evaluates the performance of its segments based on Adjusted EBITDA. Adjusted EBITDA, a non-GAAP measure, is defined as operating income before the following items: | ||||||||||||||||||||
· | Depreciation; | |||||||||||||||||||
· | amortization of acquisition-related intangible assets; | |||||||||||||||||||
· | trade name and goodwill impairments; | |||||||||||||||||||
· | severance and facility closure charges; | |||||||||||||||||||
· | stock compensation; | |||||||||||||||||||
· | management fees; and | |||||||||||||||||||
· | certain other costs. | |||||||||||||||||||
While these charges may be recurring, management excludes them in order to better analyze the segment results and evaluate the segment performance. This analysis is used extensively by management and is also used to communicate the segment results to the Company’s board of directors. In addition, management reviews Adjusted EBITDA on a constant currency basis, especially when comparing to the prior year results. While Adjusted EBITDA is useful for analysis purposes, it should not be considered as an alternative to the Company’s reported GAAP results. Also, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is similar, but not identical, to adjusted EBITDA as defined in the Credit Agreement for purposes of SunGard’s debt covenants. The operating results apply to each of SCC, SCCII and SunGard unless otherwise noted. In each of the tables below, we present the percent change based on actual, unrounded results. | ||||||||||||||||||||
The operating results for the three months ended March 31, 2014 and 2013 for each segment follow (in millions): | ||||||||||||||||||||
Sum of | ||||||||||||||||||||
Three Months Ended March 31, 2014 | FS | PS&E | Segments | |||||||||||||||||
Revenue | $ | 600 | $ | 53 | $ | 653 | ||||||||||||||
Adjusted EBITDA | 139 | -1 | 16 | 155 | ||||||||||||||||
Adjusted EBITDA margin | 23.2 | % | 30.1 | % | 23.8 | % | ||||||||||||||
Year over Year revenue change | 2 | % | 6 | % | 2 | % | ||||||||||||||
Year over Year Adjusted EBITDA change | 9 | % | 9 | % | 9 | % | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
Revenue | $ | 589 | $ | 50 | $ | 639 | ||||||||||||||
Adjusted EBITDA | 128 | 14 | 142 | |||||||||||||||||
Adjusted EBITDA margin | 21.7 | % | 29.1 | % | 22.2 | % | ||||||||||||||
Reconciliation of Adjusted EBITDA to income (loss) from continuing operations before income taxes: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Adjusted EBITDA (sum of segments) | $ | 142 | $ | 155 | ||||||||||||||||
Corporate | (13 | ) | (10 | ) | ||||||||||||||||
Depreciation (2) | (24 | ) | (24 | ) | ||||||||||||||||
Amortization of acquisition-related intangible assets | (48 | ) | (43 | ) | ||||||||||||||||
Trade name impairment charge | - | (339 | ) | |||||||||||||||||
Severance and facility closure costs | (1 | ) | (5 | ) | -3 | |||||||||||||||
Stock compensation expense | (9 | ) | (9 | ) | ||||||||||||||||
Management fees | (1 | ) | (2 | ) | ||||||||||||||||
Other costs (included in operating income) | (3 | ) | (12 | ) | ||||||||||||||||
Interest expense, net | (90 | ) | (74 | ) | ||||||||||||||||
Loss on extinguishment of debt | (5 | ) | (61 | ) | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (52 | ) | $ | (424 | ) | ||||||||||||||
Depreciation, amortization, and capital expenditures by segment follow (in millions): | ||||||||||||||||||||
Sum of | ||||||||||||||||||||
FS | PS&E | Segments | Corporate | Total | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Depreciation (2) | $ | 22 | $ | 2 | $ | 24 | $ | - | $ | 24 | ||||||||||
Amortization of acquisition-related intangible assets | 41 | 2 | 43 | - | 43 | |||||||||||||||
Capital expenditures | 26 | 2 | 28 | - | 28 | |||||||||||||||
Sum of | ||||||||||||||||||||
FS | PS&E | Segments | Corporate | Total | ||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
Depreciation (2) | $ | 22 | $ | 2 | $ | 24 | $ | - | $ | 24 | ||||||||||
Amortization of acquisition-related intangible assets | 44 | 4 | 48 | - | 48 | |||||||||||||||
Capital expenditures | 22 | 2 | 24 | - | 24 | |||||||||||||||
(1) | During the second quarter of 2013, the Company completed a review of its accounting practices related to vacation pay obligations. In countries where the vacation policy stipulated that vacation days earned in the current year must be used in that same year, the Company adjusted its quarterly estimate of accrued vacation costs to better match expense recognition with amounts payable to employees when leaving the Company. The results for the three months ended March 31, 2013 included an $8 million accrual for vacation pay under the former policy. | |||||||||||||||||||
(2) | Includes amortization of capitalized software. | |||||||||||||||||||
-3 | Includes $4 million of severance and $1 million of lease exit costs in FS. |
Employee_Termination_Benefits_
Employee Termination Benefits and Facility Closures | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Employee Termination Benefits and Facility Closures | ' | |||||||||||||||||||
11. Employee Termination Benefits and Facility Closures: | ||||||||||||||||||||
The following table provides a rollforward of the liability balances for workforce reductions and facility closures, which occurred during the three months ended March 31, 2014 (in millions): | ||||||||||||||||||||
Balance | Expense related to 2014 actions | Payments | Other | Balance 3/31/2014 | ||||||||||||||||
12/31/13 | adjustments* | |||||||||||||||||||
Workforce-related | $ | 14 | $ | 5 | $ | (10 | ) | $ | (1 | ) | $ | 8 | ||||||||
Facilities | 15 | - | (1 | ) | - | 14 | ||||||||||||||
Total | $ | 29 | $ | 5 | $ | (11 | ) | $ | (1 | ) | $ | 22 | ||||||||
* | The other adjustments column in the table principally relates to changes in estimates from when the initial charge was recorded and also foreign currency translation and other adjustments. | |||||||||||||||||||
The workforce related actions are expected to be paid out over the next 18 months (the majority within 12 months). The facilities accruals are for ongoing obligations to pay rent for vacant space and are net of sublease reserves. The lengths of these obligations vary by lease with the majority ending in 2019. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions | ' |
12. Related Party Transactions: | |
Sponsor Transactions | |
In accordance with the Management Agreement between the Company and affiliates of the Sponsors, the Company recorded $1 million and $2 million of management fees in sales, marketing and administration expenses during each of the three months ended March 31, 2013 and March 31, 2014, respectively. In each of the three months ended March 31, 2013 and 2014 the Company recorded approximately $1 million of management fees in income (loss) from discontinued operations. At December 31, 2013 and March 31, 2014, the Company had accrued management fees due to Sponsors included in Other accrued expenses of $4 million and $2 million, respectively. | |
On March 31, 2014 the Company recorded $15 million of management fees, which is included in income (loss) from discontinued operations, as provided in the Management Agreement for services rendered in connection with the issuance of the $1.025 billion SpinCo Term Loan and $425 million of SpinCo Notes. Also during the first quarter of 2014, the Company recorded $1 million of management fees which is included in income (loss) from discontinued operations resulting from the sale of two FS businesses. | |
In addition to management fees, one of our Sponsors, Goldman Sachs & Co. and/or its respective affiliates, received fees of approximately $1 million for the three months ended March 31, 2013 in connection with amendments of SunGard’s Credit Agreement. For the three months ended March 31, 2014, an immaterial amount of fees were paid to Goldman Sachs & Co. and/or its respective affiliates. | |
The Company’s Sponsors and/or their respective affiliates have from time to time entered into, and may continue to enter into, arrangements with SunGard to use its products and services, or for SunGard to use the Sponsors affiliates’ products and services, in the ordinary course of business, which often result in revenues or costs to SunGard in excess of $120,000 annually. These transactions are entered into at arms-length. In the aggregate, the arrangements are not material to SunGard’s results of operations. | |
AS Transactions | |
In connection with the split-off, the following agreements, among others, were entered into on March 31, 2014: | |
(i) a Trademark License Agreement (the “Trademark License Agreement”) between an affiliate of SunGard that owns the trademark “SunGard” and AS. The Trademark License Agreement sets forth the terms under which AS and its affiliates are permitted to use the mark “SUNGARD AVAILABILITY SERVICES.” During the first two years following the split-off, the licensed mark is royalty free. In years 3 through 5, AS will pay a royalty payment of 0.30% of their worldwide revenue, subject to certain exceptions. In years 6 and 7, the royalty will be reduced to 0.15% and 0.075%, respectively. Following year 7, AS will have a perpetual, royalty-free license to use the mark going forward assuming they maintain compliance with the Trademark License Agreement. | |
(ii) a Transition Services Agreement (“TSA”) whereby SunGard agreed to provide certain transitional and administrative support services, including employee benefits services, to AS and AS agreed to provide transitional and administrative support services to SunGard generally for up to twelve months; and | |
(iii) a term sheet to negotiate amendments to the Global Master Services Agreement (“GMSA”) to replace existing agreements under which AS provides certain availability services, managed services, and recovery services to SunGard. Broadly, SunGard and AS have agreed to amend the GMSA to reflect terms agreed to by the parties including a provision that from the split-off to a period ending March 31, 2016, SunGard would spend an agreed to minimum under the GMSA. | |
As a result of the agreement between SunGard and SpinCo regarding the amount of cash SpinCo would have on March 31, 2014 (at split-off), SunGard recorded a $7 million receivable from SpinCo which was collected in April 2014. | |
Supplemental_Guarantor_Condens
Supplemental Guarantor Condensed Consolidating Financial Statements | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Supplemental Guarantor Condensed Consolidating Financial Statements | ' | |||||||||||||||||||
13. Supplemental Guarantor Condensed Consolidating Financial Statements: | ||||||||||||||||||||
SunGard’s senior unsecured notes are jointly and severally, fully and unconditionally guaranteed on a senior unsecured basis and the senior subordinated notes are jointly and severally, fully and unconditionally guaranteed on an senior unsecured senior subordinated basis, in each case, subject to certain exceptions, by substantially all wholly owned, domestic subsidiaries of SunGard (collectively, the “Guarantors”). Each of the Guarantors is 100% owned, directly or indirectly, by SunGard. None of the other subsidiaries of SunGard, either direct or indirect, nor any of the Holding Companies, guarantee the senior notes and senior subordinated notes (“Non-Guarantors”). The Guarantors and SunGard Holdco LLC also unconditionally guarantee the senior secured credit facilities. The Guarantors are subject to release under certain circumstances as described below. | ||||||||||||||||||||
The indentures evidencing the guarantees provide for a Guarantor to be automatically and unconditionally released and discharged from its guarantee obligations in certain circumstances, including upon the earliest to occur of: | ||||||||||||||||||||
— | The sale, exchange or transfer of the subsidiary’s capital stock or all or substantially all of its assets; | |||||||||||||||||||
— | Designation of the Guarantor as an “unrestricted subsidiary” for purposes of the indenture covenants; | |||||||||||||||||||
— | Release or discharge of the Guarantor’s guarantee of certain other indebtedness; or | |||||||||||||||||||
— | Legal defeasance or covenant defeasance of the indenture obligations when provision has been made for them to be fully satisfied. | |||||||||||||||||||
As a result of the split-off, all U.S. subsidiaries of AS were removed as guarantors as of March 31, 2014. | ||||||||||||||||||||
The following tables present the financial position, results of operations and cash flows of SunGard (referred to as “Parent Company” for purposes of this note only), the Guarantor subsidiaries, the Non-Guarantor subsidiaries and Eliminations as of December 31, 2013 and March 31, 2014, and for the three month periods ended March 31, 2013 and 2014 to arrive at the information for SunGard on a consolidated basis. SCC and SCCII are neither parties to nor guarantors of the debt issued as described in Note 5 of Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for 2013. | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||
(in millions) | 31-Dec-13 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Cash and cash equivalents | $ | 403 | $ | 4 | $ | 268 | $ | - | $ | 675 | ||||||||||
Intercompany balances | - | 3,078 | 715 | (3,793 | ) | - | ||||||||||||||
Trade receivables, net | 7 | 399 | (a) | 251 | - | 657 | ||||||||||||||
Prepaid expenses, taxes and other current assets | 1,455 | (c) | 39 | 46 | (1,417 | ) | (c) | 123 | ||||||||||||
Assets of discontinued operations | 18 | 1,810 | (b) | 790 | (102 | ) | 2,516 | |||||||||||||
Total current assets | 1,883 | 5,330 | 2,070 | (5,312 | ) | 3,971 | ||||||||||||||
Property and equipment, net | - | 88 | 64 | - | 152 | |||||||||||||||
Intangible assets, net | 105 | 1,427 | 291 | - | 1,823 | |||||||||||||||
Deferred income taxes | 30 | - | - | (30 | ) | - | ||||||||||||||
Intercompany balances | 220 | 5 | 98 | (323 | ) | - | ||||||||||||||
Goodwill | - | 3,097 | 731 | - | 3,828 | |||||||||||||||
Investment in subsidiaries | 8,826 | 1,990 | - | (10,816 | ) | - | ||||||||||||||
Total Assets | $ | 11,064 | $ | 11,937 | $ | 3,254 | $ | (16,481 | ) | $ | 9,774 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Short-term and current portion of long-term debt | $ | 286 | $ | - | $ | 4 | $ | - | $ | 290 | ||||||||||
Intercompany balances | 3,793 | - | - | (3,793 | ) | - | ||||||||||||||
Accounts payable and other current liabilities | 71 | 1,917 | (c) | 438 | (1,417 | ) | (c) | 1,009 | ||||||||||||
Liabilities related of discontinued operations | - | 565 | 245 | (11 | ) | 799 | ||||||||||||||
Total current liabilities | 4,150 | 2,482 | 687 | (5,221 | ) | 2,098 | ||||||||||||||
Long-term debt | 5,894 | - | 200 | - | 6,094 | |||||||||||||||
Intercompany debt | 103 | - | 220 | (323 | ) | - | ||||||||||||||
Deferred and other income taxes | 96 | 622 | 51 | (30 | ) | 739 | ||||||||||||||
Other liabilities | - | 7 | 15 | - | 22 | |||||||||||||||
Total liabilities | 10,243 | 3,111 | 1,173 | (5,574 | ) | 8,953 | ||||||||||||||
Total stockholders' equity | 821 | 8,826 | 2,081 | (10,907 | ) | 821 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 11,064 | $ | 11,937 | $ | 3,254 | $ | (16,481 | ) | $ | 9,774 | |||||||||
(a) | This balance is primarily comprised of a receivable from the borrower under the secured accounts receivable facility, which is a non-Guarantor subsidiary, resulting from the normal, recurring sale of accounts receivable under the receivables facility. In a liquidation, the first $200 million (plus interest) of collections of accounts receivable sold to this subsidiary are due to the receivables facility lender. The remaining balance would be available for collection for the benefit of the Guarantors. | |||||||||||||||||||
(b) | Included in Assets of discontinued operations is $91 million of Availability Services’ investment in its non-guarantor subsidiaries. Also included is $142 million of accounts receivable that secured borrowings under the secured accounts receivable facility. | |||||||||||||||||||
(c) The Company pushes down its tax liabilities associated with the consolidated and combined filings in U.S. federal, state and local jurisdictions from the Parent Company to its Guarantor Subsidiaries. As these intercompany balances have not been historically settled, this entry eliminates the accumulated Parent Company income tax receivable balance with the Guarantor Subsidiaries’ income tax liability balance. | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||
(in millions) | 31-Mar-14 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Cash and cash equivalents | $ | 82 | $ | (1 | ) | $ | 274 | $ | - | $ | 355 | |||||||||
Intercompany balances | - | 2,755 | 651 | (3,406 | ) | - | ||||||||||||||
Trade receivables, net | 14 | 361 | (a) | 174 | - | 549 | ||||||||||||||
Prepaid expenses, taxes and other current assets | 59 | (b) | 45 | 47 | (13 | ) | (b) | 138 | ||||||||||||
Total current assets | 155 | 3,160 | 1,146 | (3,419 | ) | 1,042 | ||||||||||||||
Property and equipment, net | - | 87 | 62 | - | 149 | |||||||||||||||
Intangible assets, net | 79 | 1,061 | 291 | - | 1,431 | |||||||||||||||
Deferred income taxes | 18 | - | - | (18 | ) | - | ||||||||||||||
Intercompany balances | 220 | 5 | 131 | (356 | ) | - | ||||||||||||||
Goodwill | - | 3,095 | 732 | - | 3,827 | |||||||||||||||
Investment in subsidiaries | 7,954 | 1,570 | - | (9,524 | ) | - | ||||||||||||||
Total Assets | $ | 8,426 | $ | 8,978 | $ | 2,362 | $ | (13,317 | ) | $ | 6,449 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Short-term and current portion of long-term debt | $ | - | $ | - | $ | 2 | $ | - | $ | 2 | ||||||||||
Intercompany balances | 3,406 | - | - | (3,406 | ) | - | ||||||||||||||
Accounts payable and other current liabilities | 90 | 475 | (b) | 383 | (13 | ) | (b) | 935 | ||||||||||||
Total current liabilities | 3,496 | 475 | 385 | (3,419 | ) | 937 | ||||||||||||||
Long-term debt | 4,529 | - | 140 | - | 4,669 | |||||||||||||||
Intercompany debt | 136 | - | 220 | (356 | ) | - | ||||||||||||||
Deferred and other income taxes | 96 | 541 | 31 | (18 | ) | 650 | ||||||||||||||
Other liabilities | - | 8 | 16 | - | 24 | |||||||||||||||
Total liabilities | 8,257 | 1,024 | 792 | (3,793 | ) | 6,280 | ||||||||||||||
Total stockholders' equity | 169 | 7,954 | 1,570 | (9,524 | ) | 169 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 8,426 | $ | 8,978 | $ | 2,362 | $ | (13,317 | ) | $ | 6,449 | |||||||||
(a)This balance is primarily comprised of a receivable from the borrower under the secured accounts receivable facility, which is a non-Guarantor subsidiary, resulting from the normal, recurring sale of accounts receivable under the receivables facility. In a liquidation, the first $140 million (plus interest) of collections of accounts receivable sold to this subsidiary are due to the receivables facility lender. The remaining balance would be available for collection for the benefit of the Guarantors. | ||||||||||||||||||||
(b) The Company pushed down tax liabilities associated with the consolidated and combined filings in U.S. federal, state, and local jurisdictions. During the first quarter of 2014, the Parent Company and the Guarantor Subsidiaries decided to effect a non-cash settlement of the accumulated income tax receivable and payable balances in the amount of approximately $1.5 billion. | ||||||||||||||||||||
Supplemental Condensed Consolidating Schedule of Comprehensive Income (Loss) | ||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2013 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Total revenue | $ | - | $ | 450 | $ | 271 | $ | (82 | ) | $ | 639 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of sales and administrative expenses | 21 | 338 | 247 | (82 | ) | 524 | ||||||||||||||
Depreciation and amortization | - | 15 | 9 | - | 24 | |||||||||||||||
Amortization of acquisition-related intangible assets | - | 36 | 12 | - | 48 | |||||||||||||||
Total costs and expenses | 21 | 389 | 268 | (82 | ) | 596 | ||||||||||||||
Operating income (loss) | (21 | ) | 61 | 3 | - | 43 | ||||||||||||||
Net interest income (expense) | (84 | ) | - | (6 | ) | - | (90 | ) | ||||||||||||
Equity in earnings of unconsolidated subsidiary | 41 | 8 | - | (49 | ) | - | ||||||||||||||
Other income (expense) | (5 | ) | - | - | - | (5 | ) | |||||||||||||
Income (loss) from continuing operations before income | (69 | ) | 69 | (3 | ) | (49 | ) | (52 | ) | |||||||||||
taxes | ||||||||||||||||||||
Benefit from (provision for) income taxes | 33 | (30 | ) | 14 | - | 17 | ||||||||||||||
Income (loss) from continuing operations | (36 | ) | 39 | 11 | (49 | ) | (35 | ) | ||||||||||||
Income (loss) from discontinued operations, net of tax | (11 | ) | 2 | (3 | ) | - | (12 | ) | ||||||||||||
Net income (loss) | $ | (47 | ) | $ | 41 | $ | 8 | $ | (49 | ) | $ | (47 | ) | |||||||
Comprehensive income (loss) | $ | (91 | ) | $ | 1 | $ | (26 | ) | $ | 25 | $ | (91 | ) | |||||||
Supplemental Condensed Consolidating Schedule of Comprehensive Income (Loss) | ||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2014 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Total revenue | $ | - | $ | 471 | $ | 268 | $ | (86 | ) | $ | 653 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of sales and administrative expenses | 25 | 356 | 241 | (86 | ) | 536 | ||||||||||||||
Depreciation and amortization | - | 15 | 9 | - | 24 | |||||||||||||||
Amortization of acquisition-related intangible assets | - | 30 | 13 | - | 43 | |||||||||||||||
Trade name impairment charges | - | 339 | - | - | 339 | |||||||||||||||
Total costs and expenses | 25 | 740 | 263 | (86 | ) | 942 | ||||||||||||||
Operating income (loss) | (25 | ) | (269 | ) | 5 | - | (289 | ) | ||||||||||||
Net interest income (expense) | (69 | ) | - | (5 | ) | - | (74 | ) | ||||||||||||
Equity in earnings of unconsolidated subsidiary | (198 | ) | 7 | - | 191 | - | ||||||||||||||
Other income (expense) | (61 | ) | - | - | - | (61 | ) | |||||||||||||
Income (loss) from continuing operations before income | (353 | ) | (262 | ) | - | 191 | (424 | ) | ||||||||||||
taxes | ||||||||||||||||||||
Benefit from (provision for) income taxes | 40 | 63 | (2 | ) | - | 101 | ||||||||||||||
Income (loss) from continuing operations | (313 | ) | (199 | ) | (2 | ) | 191 | (323 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | (27 | ) | 1 | 9 | - | (17 | ) | |||||||||||||
Net income (loss) | $ | (340 | ) | $ | (198 | ) | $ | 7 | $ | 191 | $ | (340 | ) | |||||||
Comprehensive income (loss) | $ | (397 | ) | $ | (259 | ) | $ | (23 | ) | $ | 282 | $ | (397 | ) | ||||||
Supplemental Condensed Consolidating Schedule of Cash Flows | ||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2013 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Cash flow from operations: | ||||||||||||||||||||
Net income (loss) | $ | (47 | ) | $ | 41 | $ | 8 | $ | (49 | ) | $ | (47 | ) | |||||||
Income (loss) from discontinued operations | (11 | ) | 2 | (3 | ) | - | (12 | ) | ||||||||||||
Income (loss) from continuing operations | (36 | ) | 39 | 11 | (49 | ) | (35 | ) | ||||||||||||
Non cash adjustments | (10 | ) | 38 | 18 | 49 | 95 | ||||||||||||||
Changes in operating assets and liabilities | (5 | ) | 31 | 22 | - | 48 | ||||||||||||||
Cash flow from (used in) continuing operations | (51 | ) | 108 | 51 | - | 108 | ||||||||||||||
Cash flow from (used in) discontinued operations | (19 | ) | 56 | 34 | - | 71 | ||||||||||||||
Cash flow from (used in) operations (a) | (70 | ) | 164 | 85 | - | 179 | ||||||||||||||
Investment activities: | ||||||||||||||||||||
Intercompany transactions | 108 | (121 | ) | 35 | (22 | ) | - | |||||||||||||
Cash paid for acquired businesses, net of cash acquired | (1 | ) | - | - | - | (1 | ) | |||||||||||||
Cash paid for property and equipment and software | - | (17 | ) | (7 | ) | - | (24 | ) | ||||||||||||
Other investing activities | - | 1 | - | - | 1 | |||||||||||||||
Cash provided by (used in) continuing operations | 107 | (137 | ) | 28 | (22 | ) | (24 | ) | ||||||||||||
Cash provided by (used in) discontinued operations | - | (15 | ) | (7 | ) | - | (22 | ) | ||||||||||||
Cash provided by (used in) investment activities | 107 | (152 | ) | 21 | (22 | ) | (46 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||
Intercompany dividends | - | (11 | ) | (11 | ) | 22 | - | |||||||||||||
Net repayments of long-term debt | (78 | ) | - | (49 | ) | - | (127 | ) | ||||||||||||
Other financing activities | (6 | ) | - | - | - | (6 | ) | |||||||||||||
Cash provided by (used in) continuing operations | (84 | ) | (11 | ) | (60 | ) | 22 | (133 | ) | |||||||||||
Cash provided by (used in) discontinued operations | - | - | (1 | ) | - | (1 | ) | |||||||||||||
Cash provided by (used in) financing activities | (84 | ) | (11 | ) | (61 | ) | 22 | (134 | ) | |||||||||||
Effect of exchange rate changes on cash | - | - | (8 | ) | - | (8 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | (47 | ) | 1 | 37 | - | (9 | ) | |||||||||||||
Beginning cash and cash equivalents (b) | 220 | (3 | ) | 329 | - | 546 | ||||||||||||||
Ending cash and cash equivalents (b) | $ | 173 | $ | (2 | ) | $ | 366 | $ | - | $ | 537 | |||||||||
(a) | Cash flows from (used in) operations for the Parent Company and Guarantor Subsidiaries do not include any amounts related to their respective stand-alone income tax liabilities as the Company has not historically cash settled the intercompany balances associated with the push down of such liabilities to the Guarantor Subsidiaries. During the quarter ended March 31, 2013, the Parent Company allocated approximately $53 million of tax liabilities to its Guarantor Subsidiaries. | |||||||||||||||||||
(b) | Includes cash of discontinued operations | |||||||||||||||||||
Supplemental Condensed Consolidating Schedule of Cash Flows | ||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2014 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Cash flow from operations: | ||||||||||||||||||||
Net income (loss) | $ | (340 | ) | $ | (198 | ) | $ | 7 | $ | 191 | $ | (340 | ) | |||||||
Income (loss) from discontinued operations | (27 | ) | 1 | 9 | - | (17 | ) | |||||||||||||
Income (loss) from continuing operations | (313 | ) | (199 | ) | (2 | ) | 191 | (323 | ) | |||||||||||
Non cash adjustments | 283 | 285 | 23 | (191 | ) | 400 | ||||||||||||||
Changes in operating assets and liabilities | (20 | ) | 30 | (1 | ) | - | 9 | |||||||||||||
Cash flow from (used in) continuing operations | (50 | ) | 116 | 20 | - | 86 | ||||||||||||||
Cash flow from (used in) discontinued operations | (41 | ) | 52 | 25 | - | 36 | ||||||||||||||
Cash flow from (used in) operations (a) | (91 | ) | 168 | 45 | - | 122 | ||||||||||||||
Investment activities: | ||||||||||||||||||||
Intercompany transactions | 1,047 | (55 | ) | (962 | ) | (30 | ) | - | ||||||||||||
Cash paid for property and equipment and software | (1 | ) | (17 | ) | (10 | ) | - | (28 | ) | |||||||||||
Cash provided by (used in) continuing operations | 1,046 | (72 | ) | (972 | ) | (30 | ) | (28 | ) | |||||||||||
Cash provided by (used in) discontinued operations | - | (5 | ) | 10 | - | 5 | ||||||||||||||
Cash provided by (used in) investment activities | 1,046 | (77 | ) | (962 | ) | (30 | ) | (23 | ) | |||||||||||
Financing activities: | ||||||||||||||||||||
Intercompany dividends | - | (15 | ) | (15 | ) | 30 | - | |||||||||||||
Net repayments of long-term debt | (1,268 | ) | - | (62 | ) | - | (1,330 | ) | ||||||||||||
Other financing activities | (8 | ) | - | - | - | (8 | ) | |||||||||||||
Cash provided by (used in) continuing operations | (1,276 | ) | (15 | ) | (77 | ) | 30 | (1,338 | ) | |||||||||||
Cash provided by (used in) discontinued operations | - | (80 | ) | 967 | - | 887 | ||||||||||||||
Cash provided by (used in) financing activities | (1,276 | ) | (95 | ) | 890 | 30 | (451 | ) | ||||||||||||
Effect of exchange rate changes on cash | - | - | 1 | - | 1 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | (321 | ) | (4 | ) | (26 | ) | - | (351 | ) | |||||||||||
Beginning cash and cash equivalents (b) | 403 | 3 | 300 | - | 706 | |||||||||||||||
Ending cash and cash equivalents | $ | 82 | $ | (1 | ) | $ | 274 | $ | - | $ | 355 | |||||||||
(a) Cash flows from (used in) operations for the Parent Company and Guarantor Subsidiaries do not include any amounts related to their respective stand-alone income tax liabilities as the Company has not historically cash settled the intercompany balances associated with the push down of such liabilities to the Guarantor Subsidiaries. During the quarter ended March 31, 2014, the Parent Company allocated approximately $67 million of tax liabilities to its Guarantor Subsidiaries. | ||||||||||||||||||||
During the first quarter of 2014, the Parent Company and the Guarantor Subsidiaries decided to effect a non-cash settlement of the accumulated income tax receivable and payable balances balances in the amount of approximately $1.5 billion. Therefore, these transactions are not reflected in the Condensed Consolidating Statement of Cash Flows presented above. | ||||||||||||||||||||
(b) Includes cash of discontinued operations |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in Foreign Entity.”. This new guidance clarified that when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business, the parent should only release the related cumulative translation adjustment (“CTA”) into net income if the deconsolidation or derecognition results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets resided. The adoption of ASU 2013-05 on January 1, 2014 did not have an impact on our consolidated financial statements as we have historically accounted for the removal of CTA related to sales of non-U.S. entities consistent with this new guidance. | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” to eliminate diversity in practice in the presentation of unrecognized tax benefits in those instances. This ASU requires that companies net their unrecognized tax benefits against all same-jurisdiction deferred tax assets for net operating losses or tax credit carryforwards that would be used to settle the position with a tax authority to the extent such deferred tax assets are available. If this criteria does not apply or the tax law of the applicable jurisdiction does not require the entity to use and the entity does not intend to use the deferred tax assets for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of ASU 2013-11 on January 1, 2014 did not have a material impact on the consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” that changes the criteria for reporting a discontinued operation. According to the new guidance, only disposals of a component that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results is a discontinued operation. The new guidance also requires expanded disclosures about discontinued operations and disposals of a significant part of an entity that does not qualify for discontinued operations reporting. ASU 2014-08 is effective beginning January 1, 2015 with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously-issued financial statements. The adoption of ASU 2014-08 on January 1, 2015 is not expected to have a material impact on the Company’s consolidated financial statements. |
Expense_Classification_Tables
Expense Classification (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Functional Expense Areas | ' | |||||||||||||||||||
The impact of this change within the functional areas, including the impact of discontinued operations, is as follows for the three months ended March 31, 2013 (in millions): | ||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
As reported | Impact of discontinued operations | As reported - adjusted for discontinued operations | As reclassified | Change | ||||||||||||||||
Cost of sales and direct operating (excluding depreciation) | $ | 437 | $ | (190 | ) | $ | 247 | $ | 261 | $ | 14 | |||||||||
Sales, marketing and administration | 242 | (61 | ) | 181 | 155 | (26 | ) | |||||||||||||
Product development and maintenance | 100 | (4 | ) | 96 | 108 | 12 | ||||||||||||||
Total functional expenses | $ | 779 | $ | (255 | ) | $ | 524 | $ | 524 | $ | - | |||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Results For Discontinued Operations | ' | |||||||
The results for discontinued operations for the three months ended March 31, 2013 and 2014 were as follows (in millions): | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Revenue | $ | 356 | $ | 338 | ||||
Operating income (loss) | 13 | (26 | ) | |||||
Interest expense | (18 | ) | (18 | ) | ||||
Gain (loss) on sale of business | 1 | 23 | ||||||
Income (loss) before income taxes | (4 | ) | (21 | ) | ||||
Benefit from (provision for) income taxes | (8 | ) | 4 | |||||
Income (loss) from discontinued operations | $ | (12 | ) | $ | (17 | ) | ||
Assets and Liabilities Related to Discontinued Operations | ' | |||||||
Assets of discontinued operations and liabilities of discontinued operations consisted of the following at December 31, 2013 (in millions): | ||||||||
December 31, | ||||||||
2013 | ||||||||
Cash and cash equivalents | $ | 31 | ||||||
Trade receivable, net | 227 | |||||||
Prepaid expenses and other current assets | 70 | |||||||
Property and equipment, net | 669 | |||||||
Software products, net | 40 | |||||||
Customer base, net | 734 | |||||||
Other | 10 | |||||||
Goodwill | 735 | |||||||
Assets of discontinued operations | $ | 2,516 | ||||||
Accounts Payable | $ | 47 | ||||||
Accrued compensation and benefits | 45 | |||||||
Other accrued expenses | 78 | |||||||
Deferred revenue | 260 | |||||||
Current Portion of Long-term Debt | 2 | |||||||
Long-term Debt | 5 | |||||||
Deferred Income Taxes | 282 | |||||||
Other Long-term liabilities | 80 | |||||||
Liabilities of discontinued operations | $ | 799 | ||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Summary of Changes in the Value of the Trade Name | ' | |||||||||||||||||||||||||
The following table summarizes changes in the value of the trade name for the three months ended March 31, 2014 (in millions): | ||||||||||||||||||||||||||
Trade name, net | ||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,019 | ||||||||||||||||||||||||
Transfer limited "right to use" trade name asset to AS | (8 | ) | ||||||||||||||||||||||||
Trade name impairment | (339 | ) | ||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 672 | ||||||||||||||||||||||||
Changes in Goodwill By Reportable Segment | ' | |||||||||||||||||||||||||
The following table summarizes the changes in goodwill by segment for the three months ended March 31, 2014 (in millions) and does not include any amounts related to the AS business, which is reflected as discontinued operations for all periods presented: | ||||||||||||||||||||||||||
Cost | Accumulated impairment | |||||||||||||||||||||||||
FS | PS&E | Subtotal | PS&E | Subtotal | Total | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 3,501 | $ | 544 | $ | 4,045 | $ | (217 | ) | $ | (217 | ) | $ | 3,828 | ||||||||||||
Adjustments related to the LBO and prior year acquisitions | (1 | ) | (1 | ) | (2 | ) | - | - | (2 | ) | ||||||||||||||||
Effect of foreign currency translation | 1 | - | 1 | - | - | 1 | ||||||||||||||||||||
Balance at March 31, 2014 | $ | 3,501 | $ | 543 | $ | 4,044 | $ | (217 | ) | $ | (217 | ) | $ | 3,827 | ||||||||||||
Future Amortization of Acquisition-Related Intangible Assets | ' | |||||||||||||||||||||||||
The total expected amortization of acquisition-related intangible assets for years ended December 31 is as follows (in millions): | ||||||||||||||||||||||||||
2014 | $ | 134 | ||||||||||||||||||||||||
2015 | 82 | |||||||||||||||||||||||||
2016 | 66 | |||||||||||||||||||||||||
2017 | 58 | |||||||||||||||||||||||||
2018 | 54 | |||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Unrealized Gains Losses on Derivative Instruments | ' | ||||||||||||||||
The following table summarizes the unrealized gains (losses) on derivative instruments including the impact of components reclassified into net income from accumulated other comprehensive income for the three months ended March 31, 2013 and 2014 (in millions): | |||||||||||||||||
Three months ended March 31, | |||||||||||||||||
Other Comprehensive Income Components | 2013 | 2014 | Affected Line Item in the Statement of Comprehensive Income (Loss) for Components Reclassified from OCI | ||||||||||||||
Unrealized gain (loss) on derivative instruments and other | $ | 1 | $ | 2 | |||||||||||||
Loss (gain) on derivatives reclassified into income: | |||||||||||||||||
Interest rate contracts | 3 | 2 | Interest expense and amortization of deferred financing fees | ||||||||||||||
Forward currency hedges | (1 | ) | (1 | ) | Cost of sales and direct operating | ||||||||||||
Total reclassified into income | 2 | 1 | |||||||||||||||
Income tax benefit (expense) | (1 | ) | - | ||||||||||||||
Amounts reclassified from accumulated other | 1 | 1 | |||||||||||||||
comprehensive income net of tax | |||||||||||||||||
Unrealized gain (loss) on derivative instruments, net of tax | $ | 2 | $ | 3 | |||||||||||||
Component of Accumulated Other Comprehensive Loss, Net of Tax | ' | ||||||||||||||||
The following table provides a rollforward of the components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2014 (in millions): | |||||||||||||||||
Gains and Losses on | Currency | Other | Accumulated Other Comprehensive Income | ||||||||||||||
Cash Flow Hedges | Translation | ||||||||||||||||
Balance at December 31, 2013 | $ | 4 | $ | 15 | $ | (3 | ) | $ | 16 | ||||||||
Other comprehensive income before | 2 | 22 | - | 24 | |||||||||||||
reclassifications | |||||||||||||||||
Split-off of AS from SunGard | - | (82 | ) | - | (82 | ) | |||||||||||
Amounts reclassified from accumulated other | 1 | - | - | 1 | |||||||||||||
comprehensive income, net of tax | |||||||||||||||||
Net current-period other comprehensive income (loss) | 3 | (60 | ) | - | (57 | ) | |||||||||||
Balance at March 31, 2014 | $ | 7 | $ | (45 | ) | $ | (3 | ) | $ | (41 | ) | ||||||
Debt_and_Derivatives_Tables
Debt and Derivatives (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Debt for Continuing Operations | ' | ||||||||||||
Debt consisted of the following for continuing operations (in millions): | |||||||||||||
31-Dec-13 | 31-Mar-14 | ||||||||||||
Senior Secured Credit Facilities: | |||||||||||||
Secured revolving credit facility due March 8, 2018 | $ | - | $ | - | |||||||||
Tranche A due February 28, 2014, effective interest rate of 1.92% | 7 | - | |||||||||||
Tranche C due February 28, 2017, effective interest rate of 4.41% and 4.44% | 427 | 400 | |||||||||||
Tranche D due January 31, 2020, effective interest rate of 4.50% | 713 | - | |||||||||||
Tranche E due March 8, 2020, effective interest rate of 4.10% and 4.31% | 2,183 | 1,918 | |||||||||||
Total Senior Secured Credit Facilities | 3,330 | 2,318 | |||||||||||
Senior Secured Notes due 2014 at 4.875% | 250 | - | |||||||||||
Senior Notes due 2018 at 7.375% | 900 | 511 | |||||||||||
Senior Notes due 2020 at 7.625% | 700 | 700 | |||||||||||
Senior Subordinated Notes due 2019 at 6.625% | 1,000 | 1,000 | |||||||||||
Secured accounts receivable facility, at 3.67% and 3.66% | 200 | 140 | |||||||||||
Other, primarily foreign bank debt, acquisition purchase price and capital lease obligations | 4 | 2 | |||||||||||
Total debt | 6,384 | 4,671 | |||||||||||
Short-term borrowings and current portion of long-term debt | (290 | ) | (2 | ) | |||||||||
Long-term debt | $ | 6,094 | $ | 4,669 | |||||||||
Contractual Future Maturities of Debt | ' | ||||||||||||
At March 31, 2014, the contractual future maturities of debt are as follows (in millions): | |||||||||||||
Contractual | |||||||||||||
2014 | $ | 2 | |||||||||||
2015 | - | ||||||||||||
2016 | - | ||||||||||||
2017 | 540 | ||||||||||||
2018 | 511 | ||||||||||||
Thereafter | 3,618 | ||||||||||||
$ | 4,671 | ||||||||||||
Interest Rate Swaps | ' | ||||||||||||
A summary of the Company’s interest rate swaps at March 31, 2014 follows (in millions): | |||||||||||||
Inception | Maturity | Notional Amount (in millions) | Interest rate paid | Interest rate received (LIBOR) | |||||||||
August-September 2012 | Feb-17 | $ | 400 | 0.69% | 1-Month | ||||||||
Jun-13 | Jun-19 | 100 | 1.86% | 3-Month | |||||||||
Sep-13 | Jun-19 | 100 | 2.26% | 3-Month | |||||||||
Feb-14 | Mar-20 | 300 | 2.27% | 3-Month | |||||||||
$ | 900 | 1.52% | |||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||
The following table summarizes assets and liabilities measured at fair value on a recurring basis at March 31, 2014 (in millions): | |||||||||||||||||||
Fair Value Measures Using | |||||||||||||||||||
Balance Sheet Caption | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Money market funds | Cash and cash equivalents | $ | 83 | $ | - | $ | - | $ | 83 | ||||||||||
Interest rate swap agreements | Other assets | - | 4 | - | 4 | ||||||||||||||
Currency forward contracts | Prepaid expenses and other current assets | - | 4 | - | 4 | ||||||||||||||
Total | $ | 83 | $ | 8 | $ | - | $ | 91 | |||||||||||
The following table summarizes assets and liabilities measured at fair value on a recurring basis at December 31, 2013 (in millions): | |||||||||||||||||||
Fair Value Measures Using | |||||||||||||||||||
Balance Sheet Caption | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Money market funds | Cash and cash equivalents | $ | 407 | $ | - | $ | - | $ | 407 | ||||||||||
Interest rate swap agreements | Other assets | - | 4 | - | 4 | ||||||||||||||
Currency forward contracts | Prepaid expenses and other current assets | - | 2 | - | 2 | ||||||||||||||
Total | $ | 407 | $ | 6 | $ | - | $ | 413 | |||||||||||
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | ' | ||||||||||||||||||
The following table summarizes assets and liabilities measured at fair value on a non-recurring basis at March 31, 2014 (in millions): | |||||||||||||||||||
Fair Value Measures Using | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | |||||||||||||||||||
Trade name | $ | - | $ | - | $ | 672 | |||||||||||||
Carrying Amount and Estimated Fair Value of Debt, Including Current Portion and Excluding Interest Rate Swaps | ' | ||||||||||||||||||
The following table presents the carrying amount and estimated fair value of the Company’s debt, including the current portion and excluding the interest rate swaps, as of December 31, 2013 and March 31, 2014 (in millions): | |||||||||||||||||||
31-Dec-13 | 31-Mar-14 | ||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||
Floating rate debt | $ | 3,530 | $ | 3,548 | $ | 2,458 | $ | 2,464 | |||||||||||
Fixed rate debt | 2,862 | 3,024 | 2,213 | 2,370 | |||||||||||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Parent | ' | ||||||||||||||||||||||||||||||||||||||||||||
Rollforward of Equity | ' | ||||||||||||||||||||||||||||||||||||||||||||
A rollforward of SCC’s stockholders’ equity for the three months ended March 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
SunGard Capital Corp. stockholders | |||||||||||||||||||||||||||||||||||||||||||||
Permanent equity | |||||||||||||||||||||||||||||||||||||||||||||
Class L - temporary equity | Class A - temporary equity | Capital in excess of par value | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Total Permanent equity | |||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 58 | $ | 4 | $ | 2,482 | $ | (47 | ) | $ | (3,497 | ) | $ | 16 | $ | (1,046 | ) | ||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | (390 | ) | - | (390 | ) | ||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | - | - | - | - | 22 | 22 | ||||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivative | - | - | - | - | - | 3 | 3 | ||||||||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | - | - | 11 | - | - | - | 11 | ||||||||||||||||||||||||||||||||||||||
Issuance of common and preferred stock | - | - | (3 | ) | 5 | - | - | 2 | |||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | (2 | ) | - | - | (2 | ) | ||||||||||||||||||||||||||||||||||||
Impact of exchange of SpinCo common | - | - | 171 | - | 4 | (82 | ) | 93 | |||||||||||||||||||||||||||||||||||||
stock for SCCII preferred stock | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of SunGard | 3 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Awards | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of AS Awards | (8 | ) | - | 13 | - | - | - | 13 | |||||||||||||||||||||||||||||||||||||
Transfer intrinsic value of vested | 3 | - | (4 | ) | - | - | - | (4 | ) | ||||||||||||||||||||||||||||||||||||
restricted stock units to temporary | |||||||||||||||||||||||||||||||||||||||||||||
equity | |||||||||||||||||||||||||||||||||||||||||||||
Termination of put options due to | (7 | ) | (1 | ) | 7 | - | - | - | 7 | ||||||||||||||||||||||||||||||||||||
employee terminations | |||||||||||||||||||||||||||||||||||||||||||||
Other | - | - | (4 | ) | - | - | - | (4 | ) | ||||||||||||||||||||||||||||||||||||
Balances at March 31, 2014 | $ | 49 | $ | 3 | $ | 2,673 | $ | (44 | ) | $ | (3,883 | ) | $ | (41 | ) | $ | (1,295 | ) | |||||||||||||||||||||||||||
A rollforward of SCC’s stockholders’ equity for the three months ended March 31, 2013 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
SunGard Capital Corp. stockholders | Noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||||||
Class L - temporary equity | Class A - temporary equity | Permanent equity | Total | Temporary equity | Permanent equity | Total | |||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2012 | $ | 45 | $ | 5 | $ | (961 | ) | $ | (911 | ) | $ | 26 | $ | 1,575 | $ | 1,601 | |||||||||||||||||||||||||||||
Net income (loss) | - | - | (72 | ) | (72 | ) | - | 25 | 25 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | - | (46 | ) | (46 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivative | - | - | 2 | 2 | - | - | - | ||||||||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | - | - | 11 | 11 | - | - | - | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | (1 | ) | (1 | ) | - | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||
Transfer intrinsic value of vested | 7 | - | (12 | ) | (5 | ) | 5 | - | 5 | ||||||||||||||||||||||||||||||||||||
restricted stock units to temporary | |||||||||||||||||||||||||||||||||||||||||||||
equity | |||||||||||||||||||||||||||||||||||||||||||||
Termination of put options due to | (3 | ) | - | 3 | - | (1 | ) | 2 | 1 | ||||||||||||||||||||||||||||||||||||
employee terminations | |||||||||||||||||||||||||||||||||||||||||||||
Other | - | - | (2 | ) | (2 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||
Balances at March 31, 2013 | $ | 49 | $ | 5 | $ | (1,078 | ) | $ | (1,024 | ) | 30 | 1,600 | $ | 1,630 | |||||||||||||||||||||||||||||||
Rollforwrad of Equity Noncontrolling Interest | ' | ||||||||||||||||||||||||||||||||||||||||||||
A rollforward of SCC’s noncontrolling interest for the three months ended March 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||||||
Temporary equity | Permanent equity | Total | |||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 42 | $ | 1,741 | $ | 1,783 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | - | 50 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common and preferred stock | (1 | ) | - | (1 | ) | ||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||||||||
Impact of exchange of SpinCo common | (1 | ) | (428 | ) | (429 | ) | |||||||||||||||||||||||||||||||||||||||
stock for SCCII preferred stock | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of SunGard | (4 | ) | - | (4 | ) | ||||||||||||||||||||||||||||||||||||||||
Awards | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of AS Awards | (6 | ) | - | (6 | ) | ||||||||||||||||||||||||||||||||||||||||
Transfer intrinsic value of vested | 2 | - | 2 | ||||||||||||||||||||||||||||||||||||||||||
restricted stock units to temporary | |||||||||||||||||||||||||||||||||||||||||||||
equity | |||||||||||||||||||||||||||||||||||||||||||||
Termination of put options due to | (4 | ) | 4 | - | |||||||||||||||||||||||||||||||||||||||||
employee terminations | |||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2014 | $ | 28 | $ | 1,365 | $ | 1,393 | |||||||||||||||||||||||||||||||||||||||
SunGard Capital Corp. II | ' | ||||||||||||||||||||||||||||||||||||||||||||
Rollforward of Equity | ' | ||||||||||||||||||||||||||||||||||||||||||||
A rollforward of SCCII’s stockholders’ equity for the three months ended March 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
Permanent equity | |||||||||||||||||||||||||||||||||||||||||||||
Temporary equity | Capital in excess of par value | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Total permanent equity | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 37 | $ | 3,501 | $ | (29 | ) | $ | (2,708 | ) | $ | 16 | $ | 780 | |||||||||||||||||||||||||||||||
Net income (loss) | - | - | - | (340 | ) | - | (340 | ) | |||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | - | - | - | 22 | 22 | |||||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivative | - | - | - | - | 3 | 3 | |||||||||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | - | 11 | - | - | - | 11 | |||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | - | (3 | ) | 3 | - | - | - | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | (2 | ) | - | - | (2 | ) | |||||||||||||||||||||||||||||||||||||
Impact of exchange of SpinCo common | - | (4 | ) | (258 | ) | 4 | (82 | ) | (340 | ) | |||||||||||||||||||||||||||||||||||
stock for SCCII preferred stock | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of SunGard | (4 | ) | 4 | - | - | - | 4 | ||||||||||||||||||||||||||||||||||||||
Awards | |||||||||||||||||||||||||||||||||||||||||||||
Impact of modification of AS Awards | (6 | ) | 6 | - | - | - | 6 | ||||||||||||||||||||||||||||||||||||||
Transfer intrinsic value of vested | 2 | (2 | ) | - | - | - | (2 | ) | |||||||||||||||||||||||||||||||||||||
restricted stock units to temporary | |||||||||||||||||||||||||||||||||||||||||||||
equity | |||||||||||||||||||||||||||||||||||||||||||||
Termination of put options due to | (4 | ) | 4 | - | - | - | 4 | ||||||||||||||||||||||||||||||||||||||
employee terminations | |||||||||||||||||||||||||||||||||||||||||||||
Other | - | (7 | ) | - | - | - | (7 | ) | |||||||||||||||||||||||||||||||||||||
Balances at March 31, 2014 | $ | 25 | $ | 3,510 | $ | (286 | ) | $ | (3,044 | ) | $ | (41 | ) | $ | 139 | ||||||||||||||||||||||||||||||
SunGard Data Systems Inc. | ' | ||||||||||||||||||||||||||||||||||||||||||||
Rollforward of Equity | ' | ||||||||||||||||||||||||||||||||||||||||||||
A rollforward of SunGard’s stockholders’ equity for the three months ended March 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||
Capital in excess of par value | Accumulated deficit | Accumulated other comprehensive income (loss) | Total | ||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 3,513 | $ | (2,708 | ) | $ | 16 | $ | 821 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | - | (340 | ) | - | (340 | ) | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation | - | - | 22 | 22 | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivative | - | - | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | 11 | - | - | 11 | |||||||||||||||||||||||||||||||||||||||||
Distribute AS to parent | (146 | ) | (112 | ) | (82 | ) | (340 | ) | |||||||||||||||||||||||||||||||||||||
Other | (8 | ) | - | - | (8 | ) | |||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2014 | $ | 3,370 | $ | (3,160 | ) | $ | (41 | ) | $ | 169 | |||||||||||||||||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Operating Results | ' | |||||||||||||||||||
The operating results for the three months ended March 31, 2014 and 2013 for each segment follow (in millions): | ||||||||||||||||||||
Sum of | ||||||||||||||||||||
Three Months Ended March 31, 2014 | FS | PS&E | Segments | |||||||||||||||||
Revenue | $ | 600 | $ | 53 | $ | 653 | ||||||||||||||
Adjusted EBITDA | 139 | -1 | 16 | 155 | ||||||||||||||||
Adjusted EBITDA margin | 23.2 | % | 30.1 | % | 23.8 | % | ||||||||||||||
Year over Year revenue change | 2 | % | 6 | % | 2 | % | ||||||||||||||
Year over Year Adjusted EBITDA change | 9 | % | 9 | % | 9 | % | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
Revenue | $ | 589 | $ | 50 | $ | 639 | ||||||||||||||
Adjusted EBITDA | 128 | 14 | 142 | |||||||||||||||||
Adjusted EBITDA margin | 21.7 | % | 29.1 | % | 22.2 | % | ||||||||||||||
Reconciliation of Adjusted EBITDA to Income Loss from Continuing Operations before Income Taxes | ' | |||||||||||||||||||
Reconciliation of Adjusted EBITDA to income (loss) from continuing operations before income taxes: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Adjusted EBITDA (sum of segments) | $ | 142 | $ | 155 | ||||||||||||||||
Corporate | (13 | ) | (10 | ) | ||||||||||||||||
Depreciation (2) | (24 | ) | (24 | ) | ||||||||||||||||
Amortization of acquisition-related intangible assets | (48 | ) | (43 | ) | ||||||||||||||||
Trade name impairment charge | - | (339 | ) | |||||||||||||||||
Severance and facility closure costs | (1 | ) | (5 | ) | -3 | |||||||||||||||
Stock compensation expense | (9 | ) | (9 | ) | ||||||||||||||||
Management fees | (1 | ) | (2 | ) | ||||||||||||||||
Other costs (included in operating income) | (3 | ) | (12 | ) | ||||||||||||||||
Interest expense, net | (90 | ) | (74 | ) | ||||||||||||||||
Loss on extinguishment of debt | (5 | ) | (61 | ) | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (52 | ) | $ | (424 | ) | ||||||||||||||
Depreciation, Amortization and Capital Expenditures by Segment | ' | |||||||||||||||||||
Depreciation, amortization, and capital expenditures by segment follow (in millions): | ||||||||||||||||||||
Sum of | ||||||||||||||||||||
FS | PS&E | Segments | Corporate | Total | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Depreciation (2) | $ | 22 | $ | 2 | $ | 24 | $ | - | $ | 24 | ||||||||||
Amortization of acquisition-related intangible assets | 41 | 2 | 43 | - | 43 | |||||||||||||||
Capital expenditures | 26 | 2 | 28 | - | 28 | |||||||||||||||
Sum of | ||||||||||||||||||||
FS | PS&E | Segments | Corporate | Total | ||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
Depreciation (2) | $ | 22 | $ | 2 | $ | 24 | $ | - | $ | 24 | ||||||||||
Amortization of acquisition-related intangible assets | 44 | 4 | 48 | - | 48 | |||||||||||||||
Capital expenditures | 22 | 2 | 24 | - | 24 | |||||||||||||||
(1) | During the second quarter of 2013, the Company completed a review of its accounting practices related to vacation pay obligations. In countries where the vacation policy stipulated that vacation days earned in the current year must be used in that same year, the Company adjusted its quarterly estimate of accrued vacation costs to better match expense recognition with amounts payable to employees when leaving the Company. The results for the three months ended March 31, 2013 included an $8 million accrual for vacation pay under the former policy. | |||||||||||||||||||
(2) | Includes amortization of capitalized software. | |||||||||||||||||||
-3 | Includes $4 million of severance and $1 million of lease exit costs in FS. |
Employee_Termination_Benefits_1
Employee Termination Benefits and Facility Closures (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Liability for Workforce Reductions and Facility Closures | ' | |||||||||||||||||||
The following table provides a rollforward of the liability balances for workforce reductions and facility closures, which occurred during the three months ended March 31, 2014 (in millions): | ||||||||||||||||||||
Balance | Expense related to 2014 actions | Payments | Other | Balance 3/31/2014 | ||||||||||||||||
12/31/13 | adjustments* | |||||||||||||||||||
Workforce-related | $ | 14 | $ | 5 | $ | (10 | ) | $ | (1 | ) | $ | 8 | ||||||||
Facilities | 15 | - | (1 | ) | - | 14 | ||||||||||||||
Total | $ | 29 | $ | 5 | $ | (11 | ) | $ | (1 | ) | $ | 22 | ||||||||
* | The other adjustments column in the table principally relates to changes in estimates from when the initial charge was recorded and also foreign currency translation and other adjustments. |
Supplemental_Guarantor_Condens1
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||
(in millions) | 31-Dec-13 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Cash and cash equivalents | $ | 403 | $ | 4 | $ | 268 | $ | - | $ | 675 | ||||||||||
Intercompany balances | - | 3,078 | 715 | (3,793 | ) | - | ||||||||||||||
Trade receivables, net | 7 | 399 | (a) | 251 | - | 657 | ||||||||||||||
Prepaid expenses, taxes and other current assets | 1,455 | (c) | 39 | 46 | (1,417 | ) | (c) | 123 | ||||||||||||
Assets of discontinued operations | 18 | 1,810 | (b) | 790 | (102 | ) | 2,516 | |||||||||||||
Total current assets | 1,883 | 5,330 | 2,070 | (5,312 | ) | 3,971 | ||||||||||||||
Property and equipment, net | - | 88 | 64 | - | 152 | |||||||||||||||
Intangible assets, net | 105 | 1,427 | 291 | - | 1,823 | |||||||||||||||
Deferred income taxes | 30 | - | - | (30 | ) | - | ||||||||||||||
Intercompany balances | 220 | 5 | 98 | (323 | ) | - | ||||||||||||||
Goodwill | - | 3,097 | 731 | - | 3,828 | |||||||||||||||
Investment in subsidiaries | 8,826 | 1,990 | - | (10,816 | ) | - | ||||||||||||||
Total Assets | $ | 11,064 | $ | 11,937 | $ | 3,254 | $ | (16,481 | ) | $ | 9,774 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Short-term and current portion of long-term debt | $ | 286 | $ | - | $ | 4 | $ | - | $ | 290 | ||||||||||
Intercompany balances | 3,793 | - | - | (3,793 | ) | - | ||||||||||||||
Accounts payable and other current liabilities | 71 | 1,917 | (c) | 438 | (1,417 | ) | (c) | 1,009 | ||||||||||||
Liabilities related of discontinued operations | - | 565 | 245 | (11 | ) | 799 | ||||||||||||||
Total current liabilities | 4,150 | 2,482 | 687 | (5,221 | ) | 2,098 | ||||||||||||||
Long-term debt | 5,894 | - | 200 | - | 6,094 | |||||||||||||||
Intercompany debt | 103 | - | 220 | (323 | ) | - | ||||||||||||||
Deferred and other income taxes | 96 | 622 | 51 | (30 | ) | 739 | ||||||||||||||
Other liabilities | - | 7 | 15 | - | 22 | |||||||||||||||
Total liabilities | 10,243 | 3,111 | 1,173 | (5,574 | ) | 8,953 | ||||||||||||||
Total stockholders' equity | 821 | 8,826 | 2,081 | (10,907 | ) | 821 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 11,064 | $ | 11,937 | $ | 3,254 | $ | (16,481 | ) | $ | 9,774 | |||||||||
(a) | This balance is primarily comprised of a receivable from the borrower under the secured accounts receivable facility, which is a non-Guarantor subsidiary, resulting from the normal, recurring sale of accounts receivable under the receivables facility. In a liquidation, the first $200 million (plus interest) of collections of accounts receivable sold to this subsidiary are due to the receivables facility lender. The remaining balance would be available for collection for the benefit of the Guarantors. | |||||||||||||||||||
(b) | Included in Assets of discontinued operations is $91 million of Availability Services’ investment in its non-guarantor subsidiaries. Also included is $142 million of accounts receivable that secured borrowings under the secured accounts receivable facility. | |||||||||||||||||||
(c) The Company pushes down its tax liabilities associated with the consolidated and combined filings in U.S. federal, state and local jurisdictions from the Parent Company to its Guarantor Subsidiaries. As these intercompany balances have not been historically settled, this entry eliminates the accumulated Parent Company income tax receivable balance with the Guarantor Subsidiaries’ income tax liability balance. | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||
(in millions) | 31-Mar-14 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Cash and cash equivalents | $ | 82 | $ | (1 | ) | $ | 274 | $ | - | $ | 355 | |||||||||
Intercompany balances | - | 2,755 | 651 | (3,406 | ) | - | ||||||||||||||
Trade receivables, net | 14 | 361 | (a) | 174 | - | 549 | ||||||||||||||
Prepaid expenses, taxes and other current assets | 59 | (b) | 45 | 47 | (13 | ) | (b) | 138 | ||||||||||||
Total current assets | 155 | 3,160 | 1,146 | (3,419 | ) | 1,042 | ||||||||||||||
Property and equipment, net | - | 87 | 62 | - | 149 | |||||||||||||||
Intangible assets, net | 79 | 1,061 | 291 | - | 1,431 | |||||||||||||||
Deferred income taxes | 18 | - | - | (18 | ) | - | ||||||||||||||
Intercompany balances | 220 | 5 | 131 | (356 | ) | - | ||||||||||||||
Goodwill | - | 3,095 | 732 | - | 3,827 | |||||||||||||||
Investment in subsidiaries | 7,954 | 1,570 | - | (9,524 | ) | - | ||||||||||||||
Total Assets | $ | 8,426 | $ | 8,978 | $ | 2,362 | $ | (13,317 | ) | $ | 6,449 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Short-term and current portion of long-term debt | $ | - | $ | - | $ | 2 | $ | - | $ | 2 | ||||||||||
Intercompany balances | 3,406 | - | - | (3,406 | ) | - | ||||||||||||||
Accounts payable and other current liabilities | 90 | 475 | (b) | 383 | (13 | ) | (b) | 935 | ||||||||||||
Total current liabilities | 3,496 | 475 | 385 | (3,419 | ) | 937 | ||||||||||||||
Long-term debt | 4,529 | - | 140 | - | 4,669 | |||||||||||||||
Intercompany debt | 136 | - | 220 | (356 | ) | - | ||||||||||||||
Deferred and other income taxes | 96 | 541 | 31 | (18 | ) | 650 | ||||||||||||||
Other liabilities | - | 8 | 16 | - | 24 | |||||||||||||||
Total liabilities | 8,257 | 1,024 | 792 | (3,793 | ) | 6,280 | ||||||||||||||
Total stockholders' equity | 169 | 7,954 | 1,570 | (9,524 | ) | 169 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 8,426 | $ | 8,978 | $ | 2,362 | $ | (13,317 | ) | $ | 6,449 | |||||||||
(a)This balance is primarily comprised of a receivable from the borrower under the secured accounts receivable facility, which is a non-Guarantor subsidiary, resulting from the normal, recurring sale of accounts receivable under the receivables facility. In a liquidation, the first $140 million (plus interest) of collections of accounts receivable sold to this subsidiary are due to the receivables facility lender. The remaining balance would be available for collection for the benefit of the Guarantors. | ||||||||||||||||||||
(b) The Company pushed down tax liabilities associated with the consolidated and combined filings in U.S. federal, state, and local jurisdictions. During the first quarter of 2014, the Parent Company and the Guarantor Subsidiaries decided to effect a non-cash settlement of the accumulated income tax receivable and payable balances in the amount of approximately $1.5 billion. | ||||||||||||||||||||
Supplemental Condensed Consolidating Schedule of Comprehensive Income (Loss) | ' | |||||||||||||||||||
Supplemental Condensed Consolidating Schedule of Comprehensive Income (Loss) | ||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2013 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Total revenue | $ | - | $ | 450 | $ | 271 | $ | (82 | ) | $ | 639 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of sales and administrative expenses | 21 | 338 | 247 | (82 | ) | 524 | ||||||||||||||
Depreciation and amortization | - | 15 | 9 | - | 24 | |||||||||||||||
Amortization of acquisition-related intangible assets | - | 36 | 12 | - | 48 | |||||||||||||||
Total costs and expenses | 21 | 389 | 268 | (82 | ) | 596 | ||||||||||||||
Operating income (loss) | (21 | ) | 61 | 3 | - | 43 | ||||||||||||||
Net interest income (expense) | (84 | ) | - | (6 | ) | - | (90 | ) | ||||||||||||
Equity in earnings of unconsolidated subsidiary | 41 | 8 | - | (49 | ) | - | ||||||||||||||
Other income (expense) | (5 | ) | - | - | - | (5 | ) | |||||||||||||
Income (loss) from continuing operations before income | (69 | ) | 69 | (3 | ) | (49 | ) | (52 | ) | |||||||||||
taxes | ||||||||||||||||||||
Benefit from (provision for) income taxes | 33 | (30 | ) | 14 | - | 17 | ||||||||||||||
Income (loss) from continuing operations | (36 | ) | 39 | 11 | (49 | ) | (35 | ) | ||||||||||||
Income (loss) from discontinued operations, net of tax | (11 | ) | 2 | (3 | ) | - | (12 | ) | ||||||||||||
Net income (loss) | $ | (47 | ) | $ | 41 | $ | 8 | $ | (49 | ) | $ | (47 | ) | |||||||
Comprehensive income (loss) | $ | (91 | ) | $ | 1 | $ | (26 | ) | $ | 25 | $ | (91 | ) | |||||||
Supplemental Condensed Consolidating Schedule of Comprehensive Income (Loss) | ||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2014 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Total revenue | $ | - | $ | 471 | $ | 268 | $ | (86 | ) | $ | 653 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of sales and administrative expenses | 25 | 356 | 241 | (86 | ) | 536 | ||||||||||||||
Depreciation and amortization | - | 15 | 9 | - | 24 | |||||||||||||||
Amortization of acquisition-related intangible assets | - | 30 | 13 | - | 43 | |||||||||||||||
Trade name impairment charges | - | 339 | - | - | 339 | |||||||||||||||
Total costs and expenses | 25 | 740 | 263 | (86 | ) | 942 | ||||||||||||||
Operating income (loss) | (25 | ) | (269 | ) | 5 | - | (289 | ) | ||||||||||||
Net interest income (expense) | (69 | ) | - | (5 | ) | - | (74 | ) | ||||||||||||
Equity in earnings of unconsolidated subsidiary | (198 | ) | 7 | - | 191 | - | ||||||||||||||
Other income (expense) | (61 | ) | - | - | - | (61 | ) | |||||||||||||
Income (loss) from continuing operations before income | (353 | ) | (262 | ) | - | 191 | (424 | ) | ||||||||||||
taxes | ||||||||||||||||||||
Benefit from (provision for) income taxes | 40 | 63 | (2 | ) | - | 101 | ||||||||||||||
Income (loss) from continuing operations | (313 | ) | (199 | ) | (2 | ) | 191 | (323 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | (27 | ) | 1 | 9 | - | (17 | ) | |||||||||||||
Net income (loss) | $ | (340 | ) | $ | (198 | ) | $ | 7 | $ | 191 | $ | (340 | ) | |||||||
Comprehensive income (loss) | $ | (397 | ) | $ | (259 | ) | $ | (23 | ) | $ | 282 | $ | (397 | ) | ||||||
Supplemental Condensed Consolidating Schedule of Cash Flows | ' | |||||||||||||||||||
Supplemental Condensed Consolidating Schedule of Cash Flows | ||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2013 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Cash flow from operations: | ||||||||||||||||||||
Net income (loss) | $ | (47 | ) | $ | 41 | $ | 8 | $ | (49 | ) | $ | (47 | ) | |||||||
Income (loss) from discontinued operations | (11 | ) | 2 | (3 | ) | - | (12 | ) | ||||||||||||
Income (loss) from continuing operations | (36 | ) | 39 | 11 | (49 | ) | (35 | ) | ||||||||||||
Non cash adjustments | (10 | ) | 38 | 18 | 49 | 95 | ||||||||||||||
Changes in operating assets and liabilities | (5 | ) | 31 | 22 | - | 48 | ||||||||||||||
Cash flow from (used in) continuing operations | (51 | ) | 108 | 51 | - | 108 | ||||||||||||||
Cash flow from (used in) discontinued operations | (19 | ) | 56 | 34 | - | 71 | ||||||||||||||
Cash flow from (used in) operations (a) | (70 | ) | 164 | 85 | - | 179 | ||||||||||||||
Investment activities: | ||||||||||||||||||||
Intercompany transactions | 108 | (121 | ) | 35 | (22 | ) | - | |||||||||||||
Cash paid for acquired businesses, net of cash acquired | (1 | ) | - | - | - | (1 | ) | |||||||||||||
Cash paid for property and equipment and software | - | (17 | ) | (7 | ) | - | (24 | ) | ||||||||||||
Other investing activities | - | 1 | - | - | 1 | |||||||||||||||
Cash provided by (used in) continuing operations | 107 | (137 | ) | 28 | (22 | ) | (24 | ) | ||||||||||||
Cash provided by (used in) discontinued operations | - | (15 | ) | (7 | ) | - | (22 | ) | ||||||||||||
Cash provided by (used in) investment activities | 107 | (152 | ) | 21 | (22 | ) | (46 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||
Intercompany dividends | - | (11 | ) | (11 | ) | 22 | - | |||||||||||||
Net repayments of long-term debt | (78 | ) | - | (49 | ) | - | (127 | ) | ||||||||||||
Other financing activities | (6 | ) | - | - | - | (6 | ) | |||||||||||||
Cash provided by (used in) continuing operations | (84 | ) | (11 | ) | (60 | ) | 22 | (133 | ) | |||||||||||
Cash provided by (used in) discontinued operations | - | - | (1 | ) | - | (1 | ) | |||||||||||||
Cash provided by (used in) financing activities | (84 | ) | (11 | ) | (61 | ) | 22 | (134 | ) | |||||||||||
Effect of exchange rate changes on cash | - | - | (8 | ) | - | (8 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | (47 | ) | 1 | 37 | - | (9 | ) | |||||||||||||
Beginning cash and cash equivalents (b) | 220 | (3 | ) | 329 | - | 546 | ||||||||||||||
Ending cash and cash equivalents (b) | $ | 173 | $ | (2 | ) | $ | 366 | $ | - | $ | 537 | |||||||||
(a) | Cash flows from (used in) operations for the Parent Company and Guarantor Subsidiaries do not include any amounts related to their respective stand-alone income tax liabilities as the Company has not historically cash settled the intercompany balances associated with the push down of such liabilities to the Guarantor Subsidiaries. During the quarter ended March 31, 2013, the Parent Company allocated approximately $53 million of tax liabilities to its Guarantor Subsidiaries. | |||||||||||||||||||
(b) | Includes cash of discontinued operations | |||||||||||||||||||
Supplemental Condensed Consolidating Schedule of Cash Flows | ||||||||||||||||||||
(in millions) | Three Months Ended March 31, 2014 | |||||||||||||||||||
Parent | Guarantor | Non-Guarantor | ||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Cash flow from operations: | ||||||||||||||||||||
Net income (loss) | $ | (340 | ) | $ | (198 | ) | $ | 7 | $ | 191 | $ | (340 | ) | |||||||
Income (loss) from discontinued operations | (27 | ) | 1 | 9 | - | (17 | ) | |||||||||||||
Income (loss) from continuing operations | (313 | ) | (199 | ) | (2 | ) | 191 | (323 | ) | |||||||||||
Non cash adjustments | 283 | 285 | 23 | (191 | ) | 400 | ||||||||||||||
Changes in operating assets and liabilities | (20 | ) | 30 | (1 | ) | - | 9 | |||||||||||||
Cash flow from (used in) continuing operations | (50 | ) | 116 | 20 | - | 86 | ||||||||||||||
Cash flow from (used in) discontinued operations | (41 | ) | 52 | 25 | - | 36 | ||||||||||||||
Cash flow from (used in) operations (a) | (91 | ) | 168 | 45 | - | 122 | ||||||||||||||
Investment activities: | ||||||||||||||||||||
Intercompany transactions | 1,047 | (55 | ) | (962 | ) | (30 | ) | - | ||||||||||||
Cash paid for property and equipment and software | (1 | ) | (17 | ) | (10 | ) | - | (28 | ) | |||||||||||
Cash provided by (used in) continuing operations | 1,046 | (72 | ) | (972 | ) | (30 | ) | (28 | ) | |||||||||||
Cash provided by (used in) discontinued operations | - | (5 | ) | 10 | - | 5 | ||||||||||||||
Cash provided by (used in) investment activities | 1,046 | (77 | ) | (962 | ) | (30 | ) | (23 | ) | |||||||||||
Financing activities: | ||||||||||||||||||||
Intercompany dividends | - | (15 | ) | (15 | ) | 30 | - | |||||||||||||
Net repayments of long-term debt | (1,268 | ) | - | (62 | ) | - | (1,330 | ) | ||||||||||||
Other financing activities | (8 | ) | - | - | - | (8 | ) | |||||||||||||
Cash provided by (used in) continuing operations | (1,276 | ) | (15 | ) | (77 | ) | 30 | (1,338 | ) | |||||||||||
Cash provided by (used in) discontinued operations | - | (80 | ) | 967 | - | 887 | ||||||||||||||
Cash provided by (used in) financing activities | (1,276 | ) | (95 | ) | 890 | 30 | (451 | ) | ||||||||||||
Effect of exchange rate changes on cash | - | - | 1 | - | 1 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | (321 | ) | (4 | ) | (26 | ) | - | (351 | ) | |||||||||||
Beginning cash and cash equivalents (b) | 403 | 3 | 300 | - | 706 | |||||||||||||||
Ending cash and cash equivalents | $ | 82 | $ | (1 | ) | $ | 274 | $ | - | $ | 355 | |||||||||
(a) Cash flows from (used in) operations for the Parent Company and Guarantor Subsidiaries do not include any amounts related to their respective stand-alone income tax liabilities as the Company has not historically cash settled the intercompany balances associated with the push down of such liabilities to the Guarantor Subsidiaries. During the quarter ended March 31, 2014, the Parent Company allocated approximately $67 million of tax liabilities to its Guarantor Subsidiaries. | ||||||||||||||||||||
During the first quarter of 2014, the Parent Company and the Guarantor Subsidiaries decided to effect a non-cash settlement of the accumulated income tax receivable and payable balances balances in the amount of approximately $1.5 billion. Therefore, these transactions are not reflected in the Condensed Consolidating Statement of Cash Flows presented above. | ||||||||||||||||||||
(b) Includes cash of discontinued operations |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Segment | |
Basis Of Presentation [Line Items] | ' |
Number of reportable segments | 2 |
SpinCo | ' |
Basis Of Presentation [Line Items] | ' |
Senior notes | 425 |
Proceeds from issuance of debt | 1,005 |
SunGard Capital Corp. II | SpinCo | ' |
Basis Of Presentation [Line Items] | ' |
Ownership percentage | 100.00% |
Functional_Expense_Areas_Detai
Functional Expense Areas (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cost of sales and direct operating (excluding depreciation) | $263 | $261 |
Sales, marketing and administration | 170 | 155 |
Product development and maintenance | 103 | 108 |
Scenario, Previously Reported | ' | ' |
Cost of sales and direct operating (excluding depreciation) | ' | 437 |
Sales, marketing and administration | ' | 242 |
Product development and maintenance | ' | 100 |
Total functional expenses | ' | 779 |
Impact Of Discontinued Operations | ' | ' |
Cost of sales and direct operating (excluding depreciation) | ' | -190 |
Sales, marketing and administration | ' | -61 |
Product development and maintenance | ' | -4 |
Total functional expenses | ' | -255 |
As Reported Adjusted For Discontinued Operations | ' | ' |
Cost of sales and direct operating (excluding depreciation) | ' | 247 |
Sales, marketing and administration | ' | 181 |
Product development and maintenance | ' | 96 |
Total functional expenses | ' | 524 |
Scenario As Reclassified | ' | ' |
Cost of sales and direct operating (excluding depreciation) | ' | 261 |
Sales, marketing and administration | ' | 155 |
Product development and maintenance | ' | 108 |
Total functional expenses | ' | 524 |
Change | ' | ' |
Cost of sales and direct operating (excluding depreciation) | ' | 14 |
Sales, marketing and administration | ' | -26 |
Product development and maintenance | ' | $12 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Details) (EUR €) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' |
Business acquisition, cash paid for deferred purchase price | € 9 |
Contingent purchase price obligations | 2 |
Financial Systems | ' |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' |
Number of businesses sold | 2 |
Proceed from sale of subsidiary | € 27 |
Results_for_Discontinued_Opera
Results for Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' |
Income (loss) from discontinued operations | ($17) | ($12) |
Segment, Discontinued Operations | ' | ' |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' |
Revenue | 338 | 356 |
Operating income (loss) | -26 | 13 |
Interest expense | -18 | -18 |
Gain (loss) on sale of business | 23 | 1 |
Income (loss) before income taxes | -21 | -4 |
Benefit from (provision for) income taxes | 4 | -8 |
Income (loss) from discontinued operations | ($17) | ($12) |
Assets_and_Liabilities_Related
Assets and Liabilities Related to Discontinued Operations (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' | ' |
Cash and cash equivalents | $31 | $35 | $11 |
Segment, Discontinued Operations | ' | ' | ' |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' | ' |
Cash and cash equivalents | 31 | ' | ' |
Trade receivable, net | 227 | ' | ' |
Prepaid expenses and other current assets | 70 | ' | ' |
Property and equipment, net | 669 | ' | ' |
Other | 10 | ' | ' |
Goodwill | 735 | ' | ' |
Assets of discontinued operations | 2,516 | ' | ' |
Accounts Payable | 47 | ' | ' |
Accrued compensation and benefits | 45 | ' | ' |
Other accrued expenses | 78 | ' | ' |
Deferred revenue | 260 | ' | ' |
Current Portion of Long-term Debt | 2 | ' | ' |
Long-term Debt | 5 | ' | ' |
Deferred Income Taxes | 282 | ' | ' |
Other Long-term liabilities | 80 | ' | ' |
Liabilities of discontinued operations | 799 | ' | ' |
Segment, Discontinued Operations | Computer Software, Intangible Asset | ' | ' | ' |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' | ' |
Intangible assets | 40 | ' | ' |
Segment, Discontinued Operations | Customer base | ' | ' | ' |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' | ' |
Intangible assets | $734 | ' | ' |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Additional Information (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Intangible Assets And Goodwill [Line Items] | ' |
Trade Name impairment loss for a percent change in the assumed royalty rate or discount rate | $339 |
Availability Services | ' |
Intangible Assets And Goodwill [Line Items] | ' |
Royalty-free period | '2 years |
Right-to-use asset | 8 |
50 Basis Point Decrease in Assumed Royalty Rate | ' |
Intangible Assets And Goodwill [Line Items] | ' |
Trade Name impairment loss for a percent change in the assumed royalty rate or discount rate | 133 |
100 Basis Point Decrease in Assumed Royalty Rate | ' |
Intangible Assets And Goodwill [Line Items] | ' |
Trade Name impairment loss for a percent change in the assumed royalty rate or discount rate | 265 |
50 Basis Point Increase in Discount Rate | ' |
Intangible Assets And Goodwill [Line Items] | ' |
Trade Name impairment loss for a percent change in the assumed royalty rate or discount rate | 14 |
100 Basis Point Increase in Discount Rate | ' |
Intangible Assets And Goodwill [Line Items] | ' |
Trade Name impairment loss for a percent change in the assumed royalty rate or discount rate | $28 |
Summary_of_Changes_in_the_Trad
Summary of Changes in the Trade Name (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ' |
Beginning Balance | $1,019 |
Trade name impairment | -339 |
Ending Balance | 672 |
Trade name, net | ' |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ' |
Beginning Balance | 1,019 |
Transfer limited "right to use" trade name asset to AS | -8 |
Trade name impairment | -339 |
Ending Balance | $672 |
Changes_in_Goodwill_by_Reporta
Changes in Goodwill by Reportable Segment (Details) (USD $) | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Goodwill, Gross | Goodwill, Gross | Goodwill, Gross | Accumulated Impairment | Accumulated Impairment | Accumulated Impairment | Accumulated Impairment | ||
Financial Systems | Public Sector and Education Segments | Public Sector and Education Segments | Public Sector and Education Segments | |||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | $3,828 | $4,045 | $3,501 | $544 | ($217) | ($217) | ($217) | ($217) |
Adjustments related to the LBO and prior year acquisitions | -2 | -2 | -1 | -1 | ' | ' | ' | ' |
Effect of foreign currency translation | 1 | 1 | 1 | ' | ' | ' | ' | ' |
Ending Balance | $3,827 | $4,044 | $3,501 | $543 | ($217) | ($217) | ($217) | ($217) |
Future_Amortization_of_Acquire
Future Amortization of Acquired Intangible Assets (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Schedule Of Estimated Future Amortization Expense [Line Items] | ' |
2014 | $134 |
2015 | 82 |
2016 | 66 |
2017 | 58 |
2018 | $54 |
Unrealized_Gains_Losses_on_Der
Unrealized Gains Losses on Derivative Instruments (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ' | ' |
Amounts reclassified from accumulated other comprehensive income net of tax | $1 | ' |
Unrealized gain (loss) on derivative instruments, net of tax | 3 | 2 |
Net Unrealized Gain (Loss) on Derivative Instruments | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ' | ' |
Unrealized gain (loss) on derivative instruments and other | 2 | 1 |
Gain (loss) on derivatives reclassified into income | 1 | 2 |
Income tax benefit (expense) | ' | -1 |
Amounts reclassified from accumulated other comprehensive income net of tax | 1 | 1 |
Unrealized gain (loss) on derivative instruments, net of tax | 3 | 2 |
Net Unrealized Gain (Loss) on Derivative Instruments | Interest rate contracts | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ' | ' |
Gain (loss) on derivatives reclassified into income | 2 | 3 |
Net Unrealized Gain (Loss) on Derivative Instruments | Forward currency hedges | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ' | ' |
Gain (loss) on derivatives reclassified into income | ($1) | ($1) |
Component_of_Accumulated_Other
Component of Accumulated Other Comprehensive Loss, Net of Tax (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Beginning balance | $16 | ' |
Other comprehensive income before reclassifications | 24 | ' |
Split-off of AS from SunGard | -82 | ' |
Amounts reclassified from accumulated other comprehensive income net of tax | 1 | ' |
Net current-period other comprehensive income (loss) | -57 | -44 |
Ending balance | -41 | ' |
Currency Translation | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Beginning balance | 15 | ' |
Other comprehensive income before reclassifications | 22 | ' |
Split-off of AS from SunGard | -82 | ' |
Net current-period other comprehensive income (loss) | -60 | ' |
Ending balance | -45 | ' |
Other | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Beginning balance | -3 | ' |
Other comprehensive income before reclassifications | ' | ' |
Split-off of AS from SunGard | ' | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | ' | ' |
Net current-period other comprehensive income (loss) | ' | ' |
Ending balance | -3 | ' |
GainsB andB LossesB on Cash Flow Hedges | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Beginning balance | 4 | ' |
Other comprehensive income before reclassifications | 2 | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1 | ' |
Net current-period other comprehensive income (loss) | 3 | ' |
Ending balance | $7 | ' |
Debt_and_Derivatives_Additiona
Debt and Derivatives - Additional Information (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 07, 2014 | Mar. 31, 2014 | Jan. 15, 2014 | Feb. 28, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Other Assets | Other Assets | One Month Libor | Three Month Libor | Tranche C | Tranche D | Tranche E | Seventh Amendment | AS term loan | Senior Secured Credit Facility | Senior Secured Credit Facility | Term Loan | Senior Notes 7.375% due 2018 | Senior Notes 7.375% due 2018 | SpinCo | |||
Tranche A | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of loan | ' | ' | ' | ' | ' | ' | $27,000,000 | $713,000,000 | $265,000,000 | ' | ' | $250,000,000 | $7,000,000 | $60,000,000 | ' | ' | ' |
Credit Facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Cash excluded from calculation of secured leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' |
Increase of Adjusted EBITDA for secured debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | '0.60x of Adjusted EBITDA | ' | ' | ' | ' | ' | ' | ' |
Senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 511,000,000 | 900,000,000 | 425,000,000 |
Senior Notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 425,000,000 |
Senior Notes retired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 389,000,000 | ' | ' |
Write-off of capitalized deferred financing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,005,000,000 | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | -61,000,000 | -5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 36,000,000 | ' | ' | ' | ' | ' | ' |
Debt instrument stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.38% | 7.38% | ' |
Interest rate received | ' | ' | ' | ' | 0.15% | 0.23% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap, fair value | ' | ' | 4,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap, expected to be reclassified from other comprehensive income (loss) into earnings in the next 12 months | $8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_for_Continuing_Operations
Debt for Continuing Operations (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $4,671 | $6,384 |
Short-term borrowings and current portion of long-term debt | -2 | -290 |
Long-term debt | 4,669 | 6,094 |
Senior Secured Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt agreement, outstanding amount | 2,318 | 3,330 |
Senior Secured Credit Facility | Revolving Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt agreement, outstanding amount | ' | ' |
Senior Secured Credit Facility | Tranche A | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt agreement, outstanding amount | ' | 7 |
Senior Secured Credit Facility | Tranche C | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt agreement, outstanding amount | 400 | 427 |
Senior Secured Credit Facility | Tranche D | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt agreement, outstanding amount | ' | 713 |
Senior Secured Credit Facility | Tranche E | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt agreement, outstanding amount | 1,918 | 2,183 |
Senior Secured Notes 4.875% due 2014 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes | ' | 250 |
Senior Notes 7.375% due 2018 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes | 511 | 900 |
Senior Notes 7.625% due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes | 700 | 700 |
Senior Subordinated Notes 6.625% due 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes | 1,000 | 1,000 |
Accounts Receivable Facilities | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes | 140 | 200 |
Debt and Capital Lease Obligations, Other | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other, primarily foreign bank debt, acquisition purchase price and capital lease obligations | $2 | $4 |
Debt_for_Continuing_Operations1
Debt for Continuing Operations (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Senior Secured Credit Facility | Revolving Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Expiration Date | 8-Mar-18 | 8-Mar-18 |
Senior Secured Credit Facility | Tranche A | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Expiration Date | 28-Feb-14 | 28-Feb-14 |
Debt agreement, effective interest rate | ' | 1.92% |
Senior Secured Credit Facility | Tranche C | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Expiration Date | 28-Feb-17 | 28-Feb-17 |
Debt agreement, effective interest rate | 4.44% | 4.41% |
Senior Secured Credit Facility | Tranche D | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Expiration Date | 31-Jan-20 | 31-Jan-20 |
Debt agreement, effective interest rate | ' | 4.50% |
Senior Secured Credit Facility | Tranche E | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Expiration Date | 8-Mar-20 | 8-Mar-20 |
Debt agreement, effective interest rate | 4.31% | 4.10% |
Senior Secured Notes 4.875% due 2014 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument stated percentage | 4.88% | 4.88% |
Senior Notes or Senior Subordinated Notes, due date | '2014 | '2014 |
Senior Notes 7.375% due 2018 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument stated percentage | 7.38% | 7.38% |
Senior Notes or Senior Subordinated Notes, due date | '2018 | '2018 |
Senior Notes 7.625% due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument stated percentage | 7.63% | 7.63% |
Senior Notes or Senior Subordinated Notes, due date | '2020 | '2020 |
Senior Subordinated Notes 6.625% due 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument stated percentage | 6.63% | 6.63% |
Senior Notes or Senior Subordinated Notes, due date | '2019 | '2019 |
Accounts Receivable Facilities | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument stated percentage | 3.66% | 3.67% |
Contractual_Future_Maturities_
Contractual Future Maturities of Debt (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ' |
2014 | $2 |
2015 | ' |
2016 | ' |
2017 | 540 |
2018 | 511 |
Thereafter | 3,618 |
Total Debt | $4,671 |
Interest_Rate_Swaps_Details
Interest Rate Swaps (Details) (Interest Rate Swap, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Derivative [Line Items] | ' |
Notional Amount | $900 |
Interest rate paid | 1.52% |
Derivative Instrument 1 | ' |
Derivative [Line Items] | ' |
Maturity | '2017-02 |
Notional Amount | 400 |
Interest rate paid | 0.69% |
Interest rate received (LIBOR) | '1 month |
Derivative Instrument 1 | Minimum | ' |
Derivative [Line Items] | ' |
Inception | '2012-08 |
Derivative Instrument 1 | Maximum | ' |
Derivative [Line Items] | ' |
Inception | '2012-09 |
Derivative Instrument 2 | ' |
Derivative [Line Items] | ' |
Inception | '2013-06 |
Maturity | '2019-06 |
Notional Amount | 100 |
Interest rate paid | 1.86% |
Interest rate received (LIBOR) | '3 months |
Derivative Instrument 3 | ' |
Derivative [Line Items] | ' |
Inception | '2013-09 |
Maturity | '2019-06 |
Notional Amount | 100 |
Interest rate paid | 2.26% |
Interest rate received (LIBOR) | '3 months |
Derivative Instrument 4 | ' |
Derivative [Line Items] | ' |
Inception | '2014-02 |
Maturity | '2020-03 |
Notional Amount | $300 |
Interest rate paid | 2.27% |
Interest rate received (LIBOR) | '3 months |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total | $91 | $413 |
Cash and Cash Equivalents | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Money market funds | 83 | 407 |
Prepaid Expenses and Other Current Assets | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swap agreements and other | 4 | 4 |
Currency forward contracts | 4 | 2 |
Fair Value Measures Using Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total | 83 | 407 |
Fair Value Measures Using Level 1 | Cash and Cash Equivalents | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Money market funds | 83 | 407 |
Fair Value Measures Using Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total | 8 | 6 |
Fair Value Measures Using Level 2 | Prepaid Expenses and Other Current Assets | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swap agreements and other | 4 | 4 |
Currency forward contracts | $4 | $2 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurements [Line Items] | ' | ' |
Trade name fair value | $672 | $1,019 |
Trade name impairment charges | 339 | ' |
Fair Value Measures Using Level 3 | ' | ' |
Fair Value Measurements [Line Items] | ' | ' |
Trade name fair value | 672 | ' |
Availability Services | Fair Value Measures Using Level 3 | ' | ' |
Fair Value Measurements [Line Items] | ' | ' |
Trade name impairment charges | $339 | ' |
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value on Non Recurring Basis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Trade name | $672 | $1,019 |
Fair Value Measures Using Level 3 | ' | ' |
Assets | ' | ' |
Trade name | 672 | ' |
Fair Value, Measurements, Nonrecurring | Fair Value Measures Using Level 3 | ' | ' |
Assets | ' | ' |
Trade name | $672 | ' |
Carrying_Amount_and_Estimated_
Carrying Amount and Estimated Fair Value of Debt Including Current Portion and Excluding Interest Rate Swaps (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Floating Rate Debt | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Carrying Value | $2,458 | $3,530 |
Fair value | 2,464 | 3,548 |
Fixed Rate Debt | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Carrying Value | 2,213 | 2,862 |
Fair value | $2,370 | $3,024 |
Equity_Additional_Information_
Equity - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Class A common stock | ' |
Class Of Stock [Line Items] | ' |
Common stock shares held in time or performance based vesting | 1.3 |
Class L common stock | ' |
Class Of Stock [Line Items] | ' |
Common stock shares held in time or performance based vesting | 0.1444 |
Preferred Stock | ' |
Class Of Stock [Line Items] | ' |
Treasury stock, number of shares held | 2,358,065 |
Common stock shares held in time or performance based vesting | 0.05 |
Preferred Stock | Restatement Adjustment | ' |
Class Of Stock [Line Items] | ' |
Common stock shares held in time or performance based vesting | 0.038 |
Rollforward_of_SCCs_Equity_Det
Rollforward of SCC's Equity (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Noncontrolling interest | Permanent equity | Permanent equity | Permanent equity | Permanent equity | Permanent equity | Permanent equity | Temporary equity | Temporary equity | Sungard | Sungard | Sungard | Availability Services | Availability Services | Availability Services | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | Parent | |||
Additional Paid-in Capital | Treasury Stock | Accumulated deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling interest | Noncontrolling interest | Permanent equity | Permanent equity | Temporary equity | Permanent equity | Permanent equity | Temporary equity | Noncontrolling interest | Class L - temporary equity | Class L - temporary equity | Class A - temporary equity | Class A - temporary equity | Class A - temporary equity | Permanent equity | Permanent equity | Permanent equity | Permanent equity | Permanent equity | Permanent equity | Permanent equity | Temporary equity | Sungard | Sungard | Sungard | Availability Services | Availability Services | Availability Services | Availability Services | Availability Services | |||||||||
Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Treasury Stock | Accumulated deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling interest | Noncontrolling interest | Noncontrolling interest | Class L - temporary equity | Temporary equity | Noncontrolling interest | Class L - temporary equity | Permanent equity | Permanent equity | Temporary equity | |||||||||||||||||||||||||||
Noncontrolling interest | Additional Paid-in Capital | Noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ($1,046) | ' | $1,601 | $780 | $3,501 | ($29) | ($2,708) | $16 | $1,575 | $37 | $26 | ' | ' | ' | ' | ' | ' | ($911) | $169 | $821 | $1,783 | $58 | $45 | $4 | $5 | $5 | ($1,046) | ($961) | $2,482 | ($47) | ($3,497) | $16 | $1,741 | $42 | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -390 | -72 | 25 | -340 | ' | ' | -340 | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | -72 | ' | ' | 50 | ' | ' | ' | ' | ' | -390 | -72 | ' | ' | -390 | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation | ' | ' | ' | 22 | ' | ' | ' | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -46 | ' | ' | ' | ' | ' | ' | ' | ' | 22 | -46 | ' | ' | ' | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net unrealized gain on derivative instruments | ' | ' | ' | 3 | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 2 | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | ' | ' | ' | 11 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | 11 | 11 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common and preferred stock | ' | ' | ' | ' | -3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | ' | 2 | ' | -3 | 5 | ' | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | ' | -2 | -2 | ' | -2 | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | -2 | ' | ' | ' | ' | ' | -2 | -1 | ' | -2 | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of exchange of SpinCo common stock for SCCII preferred stock | ' | ' | ' | -340 | -4 | -258 | 4 | -82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -429 | ' | ' | ' | ' | ' | 93 | ' | 171 | ' | 4 | -82 | -428 | -1 | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of modification of Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | -4 | 6 | 6 | -6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | 3 | -4 | -6 | -8 | 13 | 13 | -6 |
Transfer intrinsic value of vested restricted stock units to temporary equity | ' | ' | 5 | -2 | -2 | ' | ' | ' | ' | 2 | 5 | ' | ' | ' | ' | ' | ' | -5 | ' | ' | 2 | 3 | 7 | ' | ' | ' | -4 | -12 | -4 | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Termination of put options due to employee terminations | ' | ' | 1 | 4 | 4 | ' | ' | ' | 2 | -4 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -3 | -1 | ' | ' | 7 | 3 | 7 | ' | ' | ' | 4 | -4 | ' | ' | ' | ' | ' | ' | ' | ' |
Other | ' | ' | ' | -7 | -7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -2 | -4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | ($1,295) | ' | $1,630 | $139 | $3,510 | ($286) | ($3,044) | ($41) | $1,600 | $25 | $30 | ' | ' | ' | ' | ' | ' | ($1,024) | $169 | $821 | $1,393 | $49 | $49 | $3 | $5 | $5 | ($1,295) | ($1,078) | $2,673 | ($44) | ($3,883) | ($41) | $1,365 | $28 | ' | ' | ' | ' | ' | ' | ' | ' |
Rollforward_of_SCCIIs_Equity_D
Rollforward of SCCII's Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | ($1,046) | ' |
Net income (loss) | -390 | -72 |
Ending Balance | -1,295 | ' |
Temporary equity | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 37 | ' |
Transfer intrinsic value of vested restricted stock units to temporary equity | 2 | ' |
Termination of put options due to employee terminations | -4 | ' |
Ending Balance | 25 | ' |
Temporary equity | Sungard | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Impact of modification of Awards | -4 | ' |
Temporary equity | Availability Services | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Impact of modification of Awards | -6 | ' |
Permanent equity | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 780 | ' |
Net income (loss) | -340 | ' |
Foreign currency translation | 22 | ' |
Net unrealized gain on derivative instruments | 3 | ' |
Stock compensation expense | 11 | ' |
Purchase of treasury stock | -2 | ' |
Impact of exchange of SpinCo common stock for SCCII preferred stock | -340 | ' |
Transfer intrinsic value of vested restricted stock units to temporary equity | -2 | ' |
Termination of put options due to employee terminations | 4 | ' |
Other | -7 | ' |
Ending Balance | 139 | ' |
Permanent equity | Sungard | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Impact of modification of Awards | 4 | ' |
Permanent equity | Availability Services | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Impact of modification of Awards | 6 | ' |
Permanent equity | Additional Paid-in Capital | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 3,501 | ' |
Stock compensation expense | 11 | ' |
Issuance of common and preferred stock | -3 | ' |
Impact of exchange of SpinCo common stock for SCCII preferred stock | -4 | ' |
Transfer intrinsic value of vested restricted stock units to temporary equity | -2 | ' |
Termination of put options due to employee terminations | 4 | ' |
Other | -7 | ' |
Ending Balance | 3,510 | ' |
Permanent equity | Additional Paid-in Capital | Sungard | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Impact of modification of Awards | 4 | ' |
Permanent equity | Additional Paid-in Capital | Availability Services | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Impact of modification of Awards | 6 | ' |
Permanent equity | Treasury Stock | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | -29 | ' |
Issuance of common and preferred stock | 3 | ' |
Purchase of treasury stock | -2 | ' |
Impact of exchange of SpinCo common stock for SCCII preferred stock | -258 | ' |
Ending Balance | -286 | ' |
Permanent equity | Accumulated deficit | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | -2,708 | ' |
Net income (loss) | -340 | ' |
Impact of exchange of SpinCo common stock for SCCII preferred stock | 4 | ' |
Ending Balance | -3,044 | ' |
Permanent equity | Accumulated Other Comprehensive Income (Loss) | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 16 | ' |
Foreign currency translation | 22 | ' |
Net unrealized gain on derivative instruments | 3 | ' |
Impact of exchange of SpinCo common stock for SCCII preferred stock | -82 | ' |
Ending Balance | ($41) | ' |
Rollforward_of_SunGards_Equity
Rollforward of SunGard's Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | ($1,046) | ' |
Net income (loss) | -390 | -72 |
Ending Balance | -1,295 | ' |
SunGard Data Systems Inc. | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 821 | ' |
Net income (loss) | -340 | ' |
Foreign currency translation | 22 | ' |
Net unrealized gain on derivative instruments | 3 | ' |
Stock compensation expense | 11 | ' |
Other | -8 | ' |
Ending Balance | 169 | ' |
SunGard Data Systems Inc. | Additional Paid-in Capital | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 3,513 | ' |
Stock compensation expense | 11 | ' |
Other | -8 | ' |
Ending Balance | 3,370 | ' |
SunGard Data Systems Inc. | Accumulated deficit | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | -2,708 | ' |
Net income (loss) | -340 | ' |
Ending Balance | -3,160 | ' |
SunGard Data Systems Inc. | Accumulated Other Comprehensive Income (Loss) | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 16 | ' |
Foreign currency translation | 22 | ' |
Net unrealized gain on derivative instruments | 3 | ' |
Ending Balance | -41 | ' |
SunGard Data Systems Inc. | Availability Services | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Distribute AS to parent | -340 | ' |
SunGard Data Systems Inc. | Availability Services | Additional Paid-in Capital | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Distribute AS to parent | -146 | ' |
SunGard Data Systems Inc. | Availability Services | Accumulated deficit | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Distribute AS to parent | -112 | ' |
SunGard Data Systems Inc. | Availability Services | Accumulated Other Comprehensive Income (Loss) | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Distribute AS to parent | ($82) | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Deferred Tax Assets Liabilities [Line Items] | ' | ' |
Effective income tax rates | 24.00% | 34.00% |
Deferred income tax provision (benefit) | ($83) | ($7) |
State deferred tax expense (benefit) | 46 | ' |
Valuation allowance related to net operating loss carryforwards | 9 | ' |
Impairment of Trade Name | ' | ' |
Deferred Tax Assets Liabilities [Line Items] | ' | ' |
Deferred income tax provision (benefit) | $138 | ' |
Operating_Results_for_Each_Seg
Operating Results for Each Segment (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Selected Financial Information [Line Items] | ' | ' | |
Revenue | $653 | $639 | |
Adjusted EBITDA | 155 | 142 | |
Operating Segments | Financial Systems | ' | ' | |
Selected Financial Information [Line Items] | ' | ' | |
Revenue | 600 | 589 | |
Adjusted EBITDA | 139 | [1] | 128 |
Adjusted EBITDA margin | 23.20% | 21.70% | |
Year over Year revenue change | 2.00% | ' | |
Year over Year Adjusted EBITDA change | 9.00% | ' | |
Operating Segments | Public Sector And Education | ' | ' | |
Selected Financial Information [Line Items] | ' | ' | |
Revenue | 53 | 50 | |
Adjusted EBITDA | 16 | 14 | |
Adjusted EBITDA margin | 30.10% | 29.10% | |
Year over Year revenue change | 6.00% | ' | |
Year over Year Adjusted EBITDA change | 9.00% | ' | |
Operating Segments | Segment Total | ' | ' | |
Selected Financial Information [Line Items] | ' | ' | |
Revenue | 653 | 639 | |
Adjusted EBITDA | $155 | $142 | |
Adjusted EBITDA margin | 23.80% | 22.20% | |
Year over Year revenue change | 2.00% | ' | |
Year over Year Adjusted EBITDA change | 9.00% | ' | |
[1] | During the second quarter of 2013, the Company completed a review of its accounting practices related to vacation pay obligations. In countries where the vacation policy stipulated that vacation days earned in the current year must be used in that same year, the Company adjusted its quarterly estimate of accrued vacation costs to better match expense recognition with amounts payable to employees when leaving the Company. The results for the three months ended March 31, 2013 included an $8 million accrual for vacation pay under the former policy. |
Reconciliation_of_Adjusted_EBI
Reconciliation of Adjusted EBITDA to Income Loss from Continuing Operations before Income Taxes (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Adjusted EBITDA (sum of segments) | $155 | $142 | ||
Corporate | -10 | -13 | ||
Depreciation | -24 | [1] | -24 | [1] |
Amortization of acquisition-related intangible assets | -43 | -48 | ||
Trade name impairment charge | -339 | ' | ||
Severance and facility closure costs | -5 | [2] | -1 | |
Stock compensation expense | -9 | -9 | ||
Management fees | -2 | -1 | ||
Other costs (included in operating income) | -12 | -3 | ||
Interest expense, net | -74 | -90 | ||
Loss on extinguishment of debt | -61 | -5 | ||
Income (loss) from continuing operations before income taxes | ($424) | ($52) | ||
[1] | Includes amortization of capitalized software. | |||
[2] | Includes $4 million of severance and $1 million of lease exit costs in FS. |
Depreciation_and_Amortization_
Depreciation and Amortization and Capital Expenditures by Segment (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Depreciation | $24 | [1] | $24 | [1] |
Amortization of acquisition-related intangible assets | 43 | 48 | ||
Capital expenditures | 28 | 24 | ||
Operating Segments | Financial Systems | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Depreciation | 22 | [1] | 22 | [1] |
Amortization of acquisition-related intangible assets | 41 | 44 | ||
Capital expenditures | 26 | 22 | ||
Operating Segments | Public Sector And Education | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Depreciation | 2 | [1] | 2 | [1] |
Amortization of acquisition-related intangible assets | 2 | 4 | ||
Capital expenditures | 2 | 2 | ||
Operating Segments | Segment Total | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Depreciation | 24 | [1] | 24 | [1] |
Amortization of acquisition-related intangible assets | 43 | 48 | ||
Capital expenditures | $28 | $24 | ||
[1] | Includes amortization of capitalized software. |
Operating_Results_for_Each_Seg1
Operating Results for Each Segment (Parenthetical) (Details) (USD $) | Mar. 31, 2013 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Financial Systems | |
Selected Financial Information [Line Items] | ' | ' |
Accrual for vacation pay | $8 | ' |
Severance costs | ' | 4 |
Lease exit costs | ' | $1 |
Liability_for_Workforce_Reduct
Liability for Workforce Reductions and Facility Closures (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | |
Restructuring Cost And Reserve [Line Items] | ' | |
Beginning Balance | $29 | |
Expense | 5 | |
Payments | -11 | |
Other adjustments | -1 | [1] |
Ending Balance | 22 | |
Workforce-related | ' | |
Restructuring Cost And Reserve [Line Items] | ' | |
Beginning Balance | 14 | |
Expense | 5 | |
Payments | -10 | |
Other adjustments | -1 | [1] |
Ending Balance | 8 | |
Facilities | ' | |
Restructuring Cost And Reserve [Line Items] | ' | |
Beginning Balance | 15 | |
Payments | -1 | |
Ending Balance | $14 | |
[1] | The other adjustments column in the table principally relates to changes in estimates from when the initial charge was recorded and also foreign currency translation and other adjustments. |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | |
Minimum | SpinCo term loan | SpinCo | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Customary fees and expenses | Years 3 through 5 | Year six | Year seven | SpinCo | |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Segment, Discontinued Operations | Segment, Discontinued Operations | Segment, Discontinued Operations | Segment, Discontinued Operations | Amended And Restated Credit Agreement | Subsequent Event | |||||||||
FS Businesses | ||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transactions, expenses | ' | ' | ' | ' | ' | $2,000,000 | $1,000,000 | $15,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | ' | ' | ' | ' |
Related party transactions, accrued expenses | ' | ' | ' | 2,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of SpinCo term loan | ' | 1,025,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes | ' | ' | 425,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, amount | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty payment, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | 0.15% | 0.08% | ' |
Receivable collected arising from split-off | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,000,000 |
Supplemental_Guarantor_Condens2
Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Condensed Financial Statements Captions [Line Items] | ' |
Percentage of each of the Guarantors owned by SunGard | 100.00% |
Supplemental_Condensed_Consoli
Supplemental Condensed Consolidating Balance Sheet (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
Current: | ' | ' | ' | ' | ||
Cash and cash equivalents | $355 | $675 | ' | ' | ||
Assets of discontinued operations | ' | 2,516 | ' | ' | ||
Total current assets | 1,045 | 3,975 | ' | ' | ||
Property and equipment, net | 149 | 152 | ' | ' | ||
Goodwill | 3,827 | 3,828 | ' | ' | ||
Total Assets | 6,452 | 9,778 | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Short-term and current portion of long-term debt | 2 | 290 | ' | ' | ||
Liabilities related of discontinued operations | ' | 799 | ' | ' | ||
Total current liabilities | 939 | 2,100 | ' | ' | ||
Long-term debt | 4,669 | 6,094 | ' | ' | ||
Deferred and other income taxes | 657 | 746 | ' | ' | ||
Other liabilities | 37 | 39 | ' | ' | ||
Total liabilities | 6,302 | 8,979 | ' | ' | ||
Total stockholders' equity | -1,295 | -1,046 | ' | ' | ||
Total Liabilities and Equity | 6,452 | 9,778 | ' | ' | ||
Parent | ' | ' | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Cash and cash equivalents | 82 | 403 | ' | ' | ||
Trade receivables, net | 14 | 7 | ' | ' | ||
Prepaid expenses, taxes and other current assets | 59 | [1] | 1,455 | [2] | ' | ' |
Assets of discontinued operations | ' | 18 | ' | ' | ||
Total current assets | 155 | 1,883 | ' | ' | ||
Intangible assets, net | 79 | 105 | ' | ' | ||
Deferred income taxes | 18 | 30 | ' | ' | ||
Intercompany balances | 220 | 220 | ' | ' | ||
Investment in subsidiaries | 7,954 | 8,826 | ' | ' | ||
Total Assets | 8,426 | 11,064 | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Short-term and current portion of long-term debt | ' | 286 | ' | ' | ||
Intercompany balances | 3,406 | 3,793 | ' | ' | ||
Accounts payable and other current liabilities | 90 | 71 | ' | ' | ||
Total current liabilities | 3,496 | 4,150 | ' | ' | ||
Long-term debt | 4,529 | 5,894 | ' | ' | ||
Intercompany debt | 136 | 103 | ' | ' | ||
Deferred and other income taxes | 96 | 96 | ' | ' | ||
Total liabilities | 8,257 | 10,243 | ' | ' | ||
Total stockholders' equity | 169 | 821 | -1,024 | -911 | ||
Total Liabilities and Equity | 8,426 | 11,064 | ' | ' | ||
Guarantor Subsidiaries | ' | ' | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Cash and cash equivalents | -1 | 4 | ' | ' | ||
Intercompany balances | 2,755 | 3,078 | ' | ' | ||
Trade receivables, net | 361 | [3] | 399 | [4] | ' | ' |
Prepaid expenses, taxes and other current assets | 45 | 39 | ' | ' | ||
Assets of discontinued operations | ' | 1,810 | [5] | ' | ' | |
Total current assets | 3,160 | 5,330 | ' | ' | ||
Property and equipment, net | 87 | 88 | ' | ' | ||
Intangible assets, net | 1,061 | 1,427 | ' | ' | ||
Intercompany balances | 5 | 5 | ' | ' | ||
Goodwill | 3,095 | 3,097 | ' | ' | ||
Investment in subsidiaries | 1,570 | 1,990 | ' | ' | ||
Total Assets | 8,978 | 11,937 | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Accounts payable and other current liabilities | 475 | [1] | 1,917 | [2] | ' | ' |
Liabilities related of discontinued operations | ' | 565 | ' | ' | ||
Total current liabilities | 475 | 2,482 | ' | ' | ||
Deferred and other income taxes | 541 | 622 | ' | ' | ||
Other liabilities | 8 | 7 | ' | ' | ||
Total liabilities | 1,024 | 3,111 | ' | ' | ||
Total stockholders' equity | 7,954 | 8,826 | ' | ' | ||
Total Liabilities and Equity | 8,978 | 11,937 | ' | ' | ||
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Cash and cash equivalents | 274 | 268 | ' | ' | ||
Intercompany balances | 651 | 715 | ' | ' | ||
Trade receivables, net | 174 | 251 | ' | ' | ||
Prepaid expenses, taxes and other current assets | 47 | 46 | ' | ' | ||
Assets of discontinued operations | ' | 790 | ' | ' | ||
Total current assets | 1,146 | 2,070 | ' | ' | ||
Property and equipment, net | 62 | 64 | ' | ' | ||
Intangible assets, net | 291 | 291 | ' | ' | ||
Intercompany balances | 131 | 98 | ' | ' | ||
Goodwill | 732 | 731 | ' | ' | ||
Investment in subsidiaries | ' | 91 | ' | ' | ||
Total Assets | 2,362 | 3,254 | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Short-term and current portion of long-term debt | 2 | 4 | ' | ' | ||
Accounts payable and other current liabilities | 383 | 438 | ' | ' | ||
Liabilities related of discontinued operations | ' | 245 | ' | ' | ||
Total current liabilities | 385 | 687 | ' | ' | ||
Long-term debt | 140 | 200 | ' | ' | ||
Intercompany debt | 220 | 220 | ' | ' | ||
Deferred and other income taxes | 31 | 51 | ' | ' | ||
Other liabilities | 16 | 15 | ' | ' | ||
Total liabilities | 792 | 1,173 | ' | ' | ||
Total stockholders' equity | 1,570 | 2,081 | ' | ' | ||
Total Liabilities and Equity | 2,362 | 3,254 | ' | ' | ||
Eliminations | ' | ' | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Intercompany balances | -3,406 | -3,793 | ' | ' | ||
Prepaid expenses, taxes and other current assets | -13 | [1] | -1,417 | [2] | ' | ' |
Assets of discontinued operations | ' | -102 | ' | ' | ||
Total current assets | -3,419 | -5,312 | ' | ' | ||
Deferred income taxes | -18 | -30 | ' | ' | ||
Intercompany balances | -356 | -323 | ' | ' | ||
Investment in subsidiaries | -9,524 | -10,816 | ' | ' | ||
Total Assets | -13,317 | -16,481 | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Intercompany balances | -3,406 | -3,793 | ' | ' | ||
Accounts payable and other current liabilities | -13 | [1] | -1,417 | [2] | ' | ' |
Liabilities related of discontinued operations | ' | -11 | ' | ' | ||
Total current liabilities | -3,419 | -5,221 | ' | ' | ||
Intercompany debt | -356 | -323 | ' | ' | ||
Deferred and other income taxes | -18 | -30 | ' | ' | ||
Total liabilities | -3,793 | -5,574 | ' | ' | ||
Total stockholders' equity | -9,524 | -10,907 | ' | ' | ||
Total Liabilities and Equity | -13,317 | -16,481 | ' | ' | ||
SunGard Data Systems Inc. | ' | ' | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Cash and cash equivalents | 355 | 675 | ' | ' | ||
Trade receivables, net | 549 | 657 | ' | ' | ||
Prepaid expenses, taxes and other current assets | 138 | 123 | ' | ' | ||
Assets of discontinued operations | ' | 2,516 | ' | ' | ||
Total current assets | 1,042 | 3,971 | ' | ' | ||
Property and equipment, net | 149 | 152 | ' | ' | ||
Intangible assets, net | 1,431 | 1,823 | ' | ' | ||
Goodwill | 3,827 | 3,828 | ' | ' | ||
Total Assets | 6,449 | 9,774 | ' | ' | ||
Current: | ' | ' | ' | ' | ||
Short-term and current portion of long-term debt | 2 | 290 | ' | ' | ||
Accounts payable and other current liabilities | 935 | 1,009 | ' | ' | ||
Liabilities related of discontinued operations | ' | 799 | ' | ' | ||
Total current liabilities | 937 | 2,098 | ' | ' | ||
Long-term debt | 4,669 | 6,094 | ' | ' | ||
Deferred and other income taxes | 650 | 739 | ' | ' | ||
Other liabilities | 24 | 22 | ' | ' | ||
Total liabilities | 6,280 | 8,953 | ' | ' | ||
Total stockholders' equity | 169 | 821 | ' | ' | ||
Total Liabilities and Equity | $6,449 | $9,774 | ' | ' | ||
[1] | The Company pushed down tax liabilities associated with the consolidated and combined filings in U.S. federal, state, and local jurisdictions. During the first quarter of 2014, the Parent Company and the Guarantor Subsidiaries decided to effect a non-cash settlement of the accumulated income tax receivable and payable balances in the amount of approximately $1.5 billion. | |||||
[2] | The Company pushes down its tax liabilities associated with the consolidated and combined filings in U.S. federal, state and local jurisdictions from the Parent Company to its Guarantor Subsidiaries. As these intercompany balances have not been historically settled, this entry eliminates the accumulated Parent Company income tax receivable balance with the Guarantor Subsidiariesb income tax liability balance. | |||||
[3] | This balance is primarily comprised of a receivable from the borrower under the secured accounts receivable facility, which is a non-Guarantor subsidiary, resulting from the normal, recurring sale of accounts receivable under the receivables facility. In a liquidation, the first $140 million (plus interest) of collections of accounts receivable sold to this subsidiary are due to the receivables facility lender. The remaining balance would be available for collection for the benefit of the Guarantors. | |||||
[4] | This balance is primarily comprised of a receivable from the borrower under the secured accounts receivable facility, which is a non-Guarantor subsidiary, resulting from the normal, recurring sale of accounts receivable under the receivables facility. In a liquidation, the first $200 million (plus interest) of collections of accounts receivable sold to this subsidiary are due to the receivables facility lender. The remaining balance would be available for collection for the benefit of the Guarantors. | |||||
[5] | Included in Assets of discontinued operations is $91 million of Availability Servicesb investment in its non-guarantor subsidiaries. Also included is $142 million of accounts receivable that secured borrowings under the secured accounts receivable facility. |
Supplemental_Condensed_Consoli1
Supplemental Condensed Consolidating Balance Sheet (Parenthetical) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements Captions [Line Items] | ' | ' |
Proceed from sale of accounts receivable due to the receivables facility lender in the event of liquidation | $140,000,000 | $200,000,000 |
Accounts receivable from secured borrowings | ' | 142,000,000 |
Intercompany non-cash adjustment for push-down of income tax balances | 1,500,000,000 | ' |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' |
Investment in subsidiaries | ' | $91,000,000 |
Supplemental_Condensed_Consoli2
Supplemental Condensed Consolidating Schedule of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Condensed Financial Statements Captions [Line Items] | ' | ' | ||
Total revenue | $653 | $639 | ||
Costs and expenses: | ' | ' | ||
Depreciation and amortization | 24 | [1] | 24 | [1] |
Amortization of acquisition-related intangible assets | 43 | 48 | ||
Total costs and expenses | 942 | 596 | ||
Trade name impairment charges | 339 | ' | ||
Operating income (loss) | -289 | 43 | ||
Benefit from (provision for) income taxes | 101 | 17 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Income (loss) from discontinued operations, net of tax | -17 | -12 | ||
Net income (loss) | -340 | -47 | ||
Comprehensive income (loss) | -447 | -116 | ||
Parent | ' | ' | ||
Costs and expenses: | ' | ' | ||
Cost of sales and administrative expenses | 25 | 21 | ||
Total costs and expenses | 25 | 21 | ||
Operating income (loss) | -25 | -21 | ||
Net interest income (expense) | -69 | -84 | ||
Equity in earnings of unconsolidated subsidiary | -198 | 41 | ||
Other income (expense) | -61 | -5 | ||
Income (loss) from continuing operations before income taxes | -353 | -69 | ||
Benefit from (provision for) income taxes | 40 | 33 | ||
Income (loss) from continuing operations | -313 | -36 | ||
Income (loss) from discontinued operations, net of tax | -27 | -11 | ||
Net income (loss) | -340 | -47 | ||
Comprehensive income (loss) | -397 | -91 | ||
Guarantor Subsidiaries | ' | ' | ||
Condensed Financial Statements Captions [Line Items] | ' | ' | ||
Total revenue | 471 | 450 | ||
Costs and expenses: | ' | ' | ||
Cost of sales and administrative expenses | 356 | 338 | ||
Depreciation and amortization | 15 | 15 | ||
Amortization of acquisition-related intangible assets | 30 | 36 | ||
Total costs and expenses | 740 | 389 | ||
Trade name impairment charges | 339 | ' | ||
Operating income (loss) | -269 | 61 | ||
Equity in earnings of unconsolidated subsidiary | 7 | 8 | ||
Income (loss) from continuing operations before income taxes | -262 | 69 | ||
Benefit from (provision for) income taxes | 63 | -30 | ||
Income (loss) from continuing operations | -199 | 39 | ||
Income (loss) from discontinued operations, net of tax | 1 | 2 | ||
Net income (loss) | -198 | 41 | ||
Comprehensive income (loss) | -259 | 1 | ||
Non-Guarantor Subsidiaries | ' | ' | ||
Condensed Financial Statements Captions [Line Items] | ' | ' | ||
Total revenue | 268 | 271 | ||
Costs and expenses: | ' | ' | ||
Cost of sales and administrative expenses | 241 | 247 | ||
Depreciation and amortization | 9 | 9 | ||
Amortization of acquisition-related intangible assets | 13 | 12 | ||
Total costs and expenses | 263 | 268 | ||
Operating income (loss) | 5 | 3 | ||
Net interest income (expense) | -5 | -6 | ||
Income (loss) from continuing operations before income taxes | ' | -3 | ||
Benefit from (provision for) income taxes | -2 | 14 | ||
Income (loss) from continuing operations | -2 | 11 | ||
Income (loss) from discontinued operations, net of tax | 9 | -3 | ||
Net income (loss) | 7 | 8 | ||
Comprehensive income (loss) | -23 | -26 | ||
Eliminations | ' | ' | ||
Condensed Financial Statements Captions [Line Items] | ' | ' | ||
Total revenue | -86 | -82 | ||
Costs and expenses: | ' | ' | ||
Cost of sales and administrative expenses | -86 | -82 | ||
Total costs and expenses | -86 | -82 | ||
Equity in earnings of unconsolidated subsidiary | 191 | -49 | ||
Income (loss) from continuing operations before income taxes | 191 | -49 | ||
Income (loss) from continuing operations | 191 | -49 | ||
Net income (loss) | 191 | -49 | ||
Comprehensive income (loss) | 282 | 25 | ||
SunGard Data Systems Inc. | ' | ' | ||
Condensed Financial Statements Captions [Line Items] | ' | ' | ||
Total revenue | 653 | 639 | ||
Costs and expenses: | ' | ' | ||
Cost of sales and administrative expenses | 536 | 524 | ||
Depreciation and amortization | 24 | 24 | ||
Amortization of acquisition-related intangible assets | 43 | 48 | ||
Total costs and expenses | 942 | 596 | ||
Trade name impairment charges | 339 | ' | ||
Operating income (loss) | -289 | 43 | ||
Net interest income (expense) | -74 | -90 | ||
Other income (expense) | -61 | -5 | ||
Income (loss) from continuing operations before income taxes | -424 | -52 | ||
Benefit from (provision for) income taxes | 101 | 17 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Income (loss) from discontinued operations, net of tax | -17 | -12 | ||
Net income (loss) | -340 | -47 | ||
Comprehensive income (loss) | ($397) | ($91) | ||
[1] | Includes amortization of capitalized software. |
Supplemental_Condensed_Consoli3
Supplemental Condensed Consolidating Schedule of Cash Flows (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | ($340) | ($47) | ||
Income (loss) from discontinued operations | -17 | -12 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Cash flow from (used in) continuing operations | 86 | 107 | ||
Cash flow from (used in) discontinued operations | 36 | 71 | ||
Cash flow from (used in) operations | 122 | 178 | ||
Investment activities: | ' | ' | ||
Cash paid for acquired businesses, net of cash acquired | ' | -1 | ||
Cash paid for property and equipment, and software | -28 | -24 | ||
Other investing activities | ' | 1 | ||
Cash provided by (used in) continuing operations | -28 | -24 | ||
Cash provided by (used in) discontinued operations | 5 | -22 | ||
Cash provided by (used in) investment activities | -23 | -46 | ||
Financing activities: | ' | ' | ||
Other financing activities | -4 | -2 | ||
Cash provided by (used in) continuing operations | -1,338 | -132 | ||
Cash provided by (used in) discontinued operations | 887 | -1 | ||
Cash provided by (used in) financing activities | -451 | -133 | ||
Effect of exchange rate changes on cash | 1 | -8 | ||
Beginning cash and cash equivalents | 706 | 546 | ||
Ending cash and cash equivalents | 355 | 537 | ||
Parent | ' | ' | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | -340 | -47 | ||
Income (loss) from discontinued operations | -27 | -11 | ||
Income (loss) from continuing operations | -313 | -36 | ||
Non cash adjustments | 283 | -10 | ||
Changes in operating assets and liabilities | -20 | -5 | ||
Cash flow from (used in) continuing operations | -50 | -51 | ||
Cash flow from (used in) discontinued operations | -41 | -19 | ||
Cash flow from (used in) operations | -91 | [1] | -70 | [2] |
Investment activities: | ' | ' | ||
Intercompany transactions | 1,047 | 108 | ||
Cash paid for acquired businesses, net of cash acquired | ' | -1 | ||
Cash paid for property and equipment, and software | -1 | ' | ||
Cash provided by (used in) continuing operations | 1,046 | 107 | ||
Cash provided by (used in) investment activities | 1,046 | 107 | ||
Financing activities: | ' | ' | ||
Net repayments of long-term debt | -1,268 | -78 | ||
Other financing activities | -8 | -6 | ||
Cash provided by (used in) continuing operations | -1,276 | -84 | ||
Cash provided by (used in) financing activities | -1,276 | -84 | ||
Increase (decrease) in cash and cash equivalents | -321 | -47 | ||
Beginning cash and cash equivalents | 403 | [3] | 220 | [3] |
Ending cash and cash equivalents | 82 | 173 | [3] | |
Guarantor Subsidiaries | ' | ' | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | -198 | 41 | ||
Income (loss) from discontinued operations | 1 | 2 | ||
Income (loss) from continuing operations | -199 | 39 | ||
Non cash adjustments | 285 | 38 | ||
Changes in operating assets and liabilities | 30 | 31 | ||
Cash flow from (used in) continuing operations | 116 | 108 | ||
Cash flow from (used in) discontinued operations | 52 | 56 | ||
Cash flow from (used in) operations | 168 | [1] | 164 | [2] |
Investment activities: | ' | ' | ||
Intercompany transactions | -55 | -121 | ||
Cash paid for property and equipment, and software | -17 | -17 | ||
Other investing activities | ' | 1 | ||
Cash provided by (used in) continuing operations | -72 | -137 | ||
Cash provided by (used in) discontinued operations | -5 | -15 | ||
Cash provided by (used in) investment activities | -77 | -152 | ||
Financing activities: | ' | ' | ||
Intercompany dividends | -15 | -11 | ||
Cash provided by (used in) continuing operations | -15 | -11 | ||
Cash provided by (used in) discontinued operations | -80 | ' | ||
Cash provided by (used in) financing activities | -95 | -11 | ||
Increase (decrease) in cash and cash equivalents | -4 | 1 | ||
Beginning cash and cash equivalents | 3 | [3] | -3 | [3] |
Ending cash and cash equivalents | -1 | -2 | [3] | |
Non-Guarantor Subsidiaries | ' | ' | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | 7 | 8 | ||
Income (loss) from discontinued operations | 9 | -3 | ||
Income (loss) from continuing operations | -2 | 11 | ||
Non cash adjustments | 23 | 18 | ||
Changes in operating assets and liabilities | -1 | 22 | ||
Cash flow from (used in) continuing operations | 20 | 51 | ||
Cash flow from (used in) discontinued operations | 25 | 34 | ||
Cash flow from (used in) operations | 45 | [1] | 85 | [2] |
Investment activities: | ' | ' | ||
Intercompany transactions | -962 | 35 | ||
Cash paid for property and equipment, and software | -10 | -7 | ||
Cash provided by (used in) continuing operations | -972 | 28 | ||
Cash provided by (used in) discontinued operations | 10 | -7 | ||
Cash provided by (used in) investment activities | -962 | 21 | ||
Financing activities: | ' | ' | ||
Intercompany dividends | -15 | -11 | ||
Net repayments of long-term debt | -62 | -49 | ||
Cash provided by (used in) continuing operations | -77 | -60 | ||
Cash provided by (used in) discontinued operations | 967 | -1 | ||
Cash provided by (used in) financing activities | 890 | -61 | ||
Effect of exchange rate changes on cash | 1 | -8 | ||
Increase (decrease) in cash and cash equivalents | -26 | 37 | ||
Beginning cash and cash equivalents | 300 | [3] | 329 | [3] |
Ending cash and cash equivalents | 274 | 366 | [3] | |
Eliminations | ' | ' | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | 191 | -49 | ||
Income (loss) from continuing operations | 191 | -49 | ||
Non cash adjustments | -191 | 49 | ||
Investment activities: | ' | ' | ||
Intercompany transactions | -30 | -22 | ||
Cash provided by (used in) continuing operations | -30 | -22 | ||
Cash provided by (used in) investment activities | -30 | -22 | ||
Financing activities: | ' | ' | ||
Intercompany dividends | 30 | 22 | ||
Cash provided by (used in) continuing operations | 30 | 22 | ||
Cash provided by (used in) financing activities | 30 | 22 | ||
SunGard Data Systems Inc. | ' | ' | ||
Cash flow from operations: | ' | ' | ||
Net income (loss) | -340 | -47 | ||
Income (loss) from discontinued operations | -17 | -12 | ||
Income (loss) from continuing operations | -323 | -35 | ||
Non cash adjustments | 400 | 95 | ||
Changes in operating assets and liabilities | 9 | 48 | ||
Cash flow from (used in) continuing operations | 86 | 108 | ||
Cash flow from (used in) discontinued operations | 36 | 71 | ||
Cash flow from (used in) operations | 122 | [1] | 179 | [2] |
Investment activities: | ' | ' | ||
Cash paid for acquired businesses, net of cash acquired | ' | -1 | ||
Cash paid for property and equipment, and software | -28 | -24 | ||
Other investing activities | ' | 1 | ||
Cash provided by (used in) continuing operations | -28 | -24 | ||
Cash provided by (used in) discontinued operations | 5 | -22 | ||
Cash provided by (used in) investment activities | -23 | -46 | ||
Financing activities: | ' | ' | ||
Net repayments of long-term debt | -1,330 | -127 | ||
Other financing activities | -8 | -6 | ||
Cash provided by (used in) continuing operations | -1,338 | -133 | ||
Cash provided by (used in) discontinued operations | 887 | -1 | ||
Cash provided by (used in) financing activities | -451 | -134 | ||
Effect of exchange rate changes on cash | 1 | -8 | ||
Increase (decrease) in cash and cash equivalents | -351 | -9 | ||
Beginning cash and cash equivalents | 706 | [3] | 546 | [3] |
Ending cash and cash equivalents | $355 | $537 | [3] | |
[1] | Cash flows from (used in) operations for the Parent Company and Guarantor Subsidiaries do not include any amounts related to their respective stand-alone income tax liabilities as the Company has not historically cash settled the intercompany balances associated with the push down of such liabilities to the Guarantor Subsidiaries. During the quarter ended March 31, 2014, the Parent Company allocated approximately $67 million of tax liabilities to its Guarantor Subsidiaries. During the first quarter of 2014, the Parent Company and the Guarantor Subsidiaries decided to effect a non-cash settlement of the accumulated income tax receivable and payable balances balances in the amount of approximately $1.5 billion. Therefore, these transactions are not reflected in the Condensed Consolidating Statement of Cash Flows presented above. | |||
[2] | Cash flows from (used in) operations for the Parent Company and Guarantor Subsidiaries do not include any amounts related to their respective stand-alone income tax liabilities as the Company has not historically cash settled the intercompany balances associated with the push down of such liabilities to the Guarantor Subsidiaries. During the quarter ended March 31, 2013, the Parent Company allocated approximately $53 million of tax liabilities to its Guarantor Subsidiaries. | |||
[3] | Includes cash of discontinued operations |
Supplemental_Condensed_Consoli4
Supplemental Condensed Consolidating Schedule of Cash Flows (Parenthetical) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Condensed Financial Statements Captions [Line Items] | ' | ' |
Intercompany non-cash adjustment for push-down of income tax balances | $1,500,000,000 | ' |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' |
Allocation of tax liabilities | $67,000,000 | $53,000,000 |