Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2014 |
Cash flow from operations: | | | | |
Net income (loss) | $ 61 | | $ (337) | |
Income (loss) from discontinued operations | 2 | | (17) | |
Income (loss) from continuing operations | 59 | | (320) | |
Reconciliation of income (loss) from continuing operations to cash flow from (used in) operations: | | | | |
Depreciation and amortization | 98 | | 135 | |
Trade name impairment charge | 0 | | 339 | |
Deferred income tax provision (benefit) | (8) | | (90) | |
Stock compensation expense | 23 | | 20 | |
Amortization of deferred financing costs and debt discount | 8 | | 10 | |
Loss on extinguishment of debt | | | 61 | |
Other noncash items | (1) | | | |
Changes in working capital: | | | | |
Accounts receivable and other current assets | 119 | | 100 | |
Accounts payable and accrued expenses | (83) | | (111) | |
Accrued interest | (1) | | (5) | |
Accrued income taxes | 15 | | (25) | |
Deferred revenue | (47) | | (28) | |
Cash flow from (used in) continuing operations | 182 | | 86 | |
Cash flow from (used in) discontinued operations | | | 34 | |
Cash flow from (used in) operations | 182 | | 120 | |
Investment activities: | | | | |
Cash paid for acquired businesses, net of cash acquired | (25) | | | |
Addition to property and equipment, and software | (27) | | (31) | |
Additions to capitalized software | (28) | | (27) | |
Other investing activities | 1 | | | |
Cash provided by (used in) continuing operations | (79) | | (58) | |
Cash provided by (used in) discontinued operations | 1 | | 5 | |
Cash provided by (used in) investment activities | (78) | | (53) | |
Financing activities: | | | | |
Cash received from borrowings, net of fees | 3 | | (7) | |
Cash used to repay debt | (1) | | (1,324) | |
Cash used to purchase treasury stock | (2) | | (7) | |
Other financing activities | (10) | | (9) | |
Cash provided by (used in) continuing operations | (10) | | (1,347) | |
Cash provided by (used in) discontinued operations | | | 887 | |
Cash provided by (used in) financing activities | (10) | | (460) | |
Effect of exchange rate changes on cash | (3) | | 1 | |
Increase (decrease) in cash and cash equivalents | 91 | | (392) | |
Beginning cash and cash equivalents | 447 | | 706 | |
Ending cash and cash equivalents | 538 | | 314 | |
Supplemental information: | | | | |
Interest paid | 135 | | 166 | |
Income taxes paid, net of refunds of $12 million and $19 million, respectively | 16 | | 23 | |
Non-cash financing activities: | | | | |
Distribution of net assets of SpinCo (See Note 1) | | | 223 | |
Receipt of SpinCo Notes in connection with the AS Split-Off (See Note 1) | | | 425 | |
Exchange of SpinCo Notes for SDS Notes | | | 389 | |
SunGard Capital Corp. II | | | | |
Cash flow from operations: | | | | |
Net income (loss) | 61 | | (337) | |
Income (loss) from discontinued operations | 2 | | (17) | |
Income (loss) from continuing operations | 59 | | (320) | |
Reconciliation of income (loss) from continuing operations to cash flow from (used in) operations: | | | | |
Depreciation and amortization | 98 | | 135 | |
Trade name impairment charge | | | 339 | |
Deferred income tax provision (benefit) | (8) | | (90) | |
Stock compensation expense | 23 | | 20 | |
Amortization of deferred financing costs and debt discount | 8 | | 10 | |
Loss on extinguishment of debt | | | 61 | |
Other noncash items | (1) | | | |
Changes in working capital: | | | | |
Accounts receivable and other current assets | 119 | | 100 | |
Accounts payable and accrued expenses | (83) | | (111) | |
Accrued interest | (1) | | (5) | |
Accrued income taxes | 15 | | (25) | |
Deferred revenue | (47) | | (28) | |
Cash flow from (used in) continuing operations | 182 | | 86 | |
Cash flow from (used in) discontinued operations | | | 34 | |
Cash flow from (used in) operations | 182 | | 120 | |
Investment activities: | | | | |
Cash paid for acquired businesses, net of cash acquired | (25) | | | |
Addition to property and equipment, and software | (27) | | (31) | |
Additions to capitalized software | (28) | | (27) | |
Other investing activities | 1 | | | |
Cash provided by (used in) continuing operations | (79) | | (58) | |
Cash provided by (used in) discontinued operations | 1 | | 5 | |
Cash provided by (used in) investment activities | (78) | | (53) | |
Financing activities: | | | | |
Cash received from borrowings, net of fees | 3 | | (7) | |
Cash used to repay debt | (1) | | (1,324) | |
Cash used to purchase treasury stock | (1) | | (3) | |
Other financing activities | (11) | | (13) | |
Cash provided by (used in) continuing operations | (10) | | (1,347) | |
Cash provided by (used in) discontinued operations | | | 887 | |
Cash provided by (used in) financing activities | (10) | | (460) | |
Effect of exchange rate changes on cash | (3) | | 1 | |
Increase (decrease) in cash and cash equivalents | 91 | | (392) | |
Beginning cash and cash equivalents | 447 | | 706 | |
Ending cash and cash equivalents | 538 | | 314 | |
Supplemental information: | | | | |
Interest paid | 135 | | 166 | |
Income taxes paid, net of refunds of $12 million and $19 million, respectively | 16 | | 23 | |
Non-cash financing activities: | | | | |
Distribution of net assets of SpinCo (See Note 1) | | | 223 | |
Receipt of SpinCo Notes in connection with the AS Split-Off (See Note 1) | | | 425 | |
Exchange of SpinCo Notes for SDS Notes | | | 389 | |
SunGard Data Systems Inc. | | | | |
Cash flow from operations: | | | | |
Net income (loss) | 61 | | (337) | |
Income (loss) from discontinued operations | 2 | | (17) | |
Income (loss) from continuing operations | 59 | | (320) | |
Reconciliation of income (loss) from continuing operations to cash flow from (used in) operations: | | | | |
Depreciation and amortization | 98 | | 135 | |
Trade name impairment charge | | | 339 | |
Deferred income tax provision (benefit) | (8) | | (90) | |
Stock compensation expense | 23 | | 20 | |
Amortization of deferred financing costs and debt discount | 8 | | 10 | |
Loss on extinguishment of debt | | | 61 | |
Other noncash items | (1) | | | |
Changes in working capital: | | | | |
Accounts receivable and other current assets | 119 | | 100 | |
Accounts payable and accrued expenses | (83) | | (111) | |
Accrued interest | (1) | | (5) | |
Accrued income taxes | 15 | | (25) | |
Deferred revenue | (47) | | (28) | |
Cash flow from (used in) continuing operations | 182 | | 86 | |
Cash flow from (used in) discontinued operations | | | 34 | |
Cash flow from (used in) operations | 182 | [1] | 120 | [2] |
Investment activities: | | | | |
Cash paid for acquired businesses, net of cash acquired | (25) | | | |
Addition to property and equipment, and software | (27) | | (31) | |
Additions to capitalized software | (28) | | (27) | |
Other investing activities | 1 | | | |
Cash provided by (used in) continuing operations | (79) | | (58) | |
Cash provided by (used in) discontinued operations | 1 | | 5 | |
Cash provided by (used in) investment activities | (78) | | (53) | |
Financing activities: | | | | |
Cash received from borrowings, net of fees | 3 | | (7) | |
Cash used to repay debt | (1) | | (1,324) | |
Other financing activities | (12) | | (16) | |
Cash provided by (used in) continuing operations | (10) | | (1,347) | |
Cash provided by (used in) discontinued operations | | | 887 | |
Cash provided by (used in) financing activities | (10) | | (460) | |
Effect of exchange rate changes on cash | (3) | | 1 | |
Increase (decrease) in cash and cash equivalents | 91 | | (392) | |
Beginning cash and cash equivalents | 447 | | 706 | [3] |
Ending cash and cash equivalents | 538 | | 314 | |
Supplemental information: | | | | |
Interest paid | 135 | | 166 | |
Income taxes paid, net of refunds of $12 million and $19 million, respectively | $ 16 | | 23 | |
Non-cash financing activities: | | | | |
Distribution of net assets of SpinCo (See Note 1) | | | 227 | |
Receipt of SpinCo Notes in connection with the AS Split-Off (See Note 1) | | | 425 | |
Exchange of SpinCo Notes for SDS Notes | | | $ 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 six months ended June 30, 2015, the Parent Company allocated approximately $77 million of tax liabilities to its Guarantor Subsidiaries. |
[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 six months ended June 30, 2014, the Parent Company allocated approximately $96 million of tax liabilities to its Guarantor Subsidiaries. During the three months ended March 31, 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. Therefore, these transactions are not reflected in the Condensed Consolidating Statement of Cash Flows presented above. |
[3] | Includes cash of discontinued operations. |