Subsidiary Guarantors of Long-Term Debt | 3 Months Ended |
Mar. 31, 2015 |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Subsidiary Guarantors of Long-Term Debt | 13 | Subsidiary Guarantors of Long-Term Debt | | | | | | | | | | | | | | | | | | | |
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As of March 31, 2015, certain of the Company’s 100% owned domestic subsidiaries (“Guarantor Subsidiaries”) jointly and severally, and fully and unconditionally, guaranteed the Company’s indebtedness under its senior notes. The following condensed consolidating financial information is presented on the equity method and reflects summarized financial information for: (i) the Company; (ii) the Guarantor Subsidiaries on a combined basis; and (iii) the Company’s non-guarantor subsidiaries on a combined basis. Certain intercompany amounts reported in the prior period within the condensed consolidating statement of cash flows have been reclassified to conform to the current period presentation and are not considered to be material by the Company. On April 30, 2015, the Company provided notice to the trustee under the indenture and supplemental indentures governing its outstanding senior notes that the Guarantor Subsidiaries of the outstanding senior notes were automatically released from all of their obligations under the supplemental indentures and their respective guarantees of the Company’s senior notes. See Note 12 for more information. |
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Condensed Consolidating Statement of Income and Comprehensive Income |
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Three Months Ended March 31, 2015 |
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(In millions) | | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Company | Subsidiaries | Subsidiaries |
Revenue: | | | | | | | | | | | | | | | | | | | | |
Processing and services | | $ | — | | | $ | 795 | | | $ | 316 | | | $ | (44 | ) | | $ | 1,067 | |
Product | | | — | | | | 205 | | | | 25 | | | | (22 | ) | | | 208 | |
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Total revenue | | | — | | | | 1,000 | | | | 341 | | | | (66 | ) | | | 1,275 | |
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Expenses: | | | | | | | | | | | | | | | | | | | | |
Cost of processing and services | | | — | | | | 398 | | | | 188 | | | | (44 | ) | | | 542 | |
Cost of product | | | — | | | | 178 | | | | 25 | | | | (22 | ) | | | 181 | |
Selling, general and administrative | | | 19 | | | | 161 | | | | 58 | | | | — | | | | 238 | |
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Total expenses | | | 19 | | | | 737 | | | | 271 | | | | (66 | ) | | | 961 | |
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Operating income (loss) | | | (19 | ) | | | 263 | | | | 70 | | | | — | | | | 314 | |
Interest expense | | | (35 | ) | | | (5 | ) | | | — | | | | — | | | | (40 | ) |
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Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | | | (54 | ) | | | 258 | | | | 70 | | | | — | | | | 274 | |
Income tax (provision) benefit | | | 23 | | | | (94 | ) | | | (25 | ) | | | — | | | | (96 | ) |
Income from investment in unconsolidated affiliate | | | — | | | | — | | | | — | | | | — | | | | — | |
Equity in earnings of consolidated affiliates | | | 209 | | | | — | | | | — | | | | (209 | ) | | | — | |
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Income from continuing operations | | | 178 | | | | 164 | | | | 45 | | | | (209 | ) | | | 178 | |
Income (loss) from discontinued operations, net of income taxes | | | — | | | | — | | | | — | | | | — | | | | — | |
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Net income | | $ | 178 | | | $ | 164 | | | $ | 45 | | | $ | (209 | ) | | $ | 178 | |
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Comprehensive income | | $ | 170 | | | $ | 164 | | | $ | 35 | | | $ | (199 | ) | | $ | 170 | |
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Condensed Consolidating Statement of Income and Comprehensive Income |
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Three Months Ended March 31, 2014 |
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(In millions) | | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Company | Subsidiaries | Subsidiaries |
Revenue: | | | | | | | | | | | | | | | | | | | | |
Processing and services | | $ | — | | | $ | 755 | | | $ | 315 | | | $ | (43 | ) | | $ | 1,027 | |
Product | | | — | | | | 205 | | | | 21 | | | | (19 | ) | | | 207 | |
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Total revenue | | | — | | | | 960 | | | | 336 | | | | (62 | ) | | | 1,234 | |
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Expenses: | | | | | | | | | | | | | | | | | | | | |
Cost of processing and services | | | — | | | | 396 | | | | 188 | | | | (43 | ) | | | 541 | |
Cost of product | | | — | | | | 174 | | | | 25 | | | | (19 | ) | | | 180 | |
Selling, general and administrative | | | 20 | | | | 165 | | | | 57 | | | | — | | | | 242 | |
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Total expenses | | | 20 | | | | 735 | | | | 270 | | | | (62 | ) | | | 963 | |
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Operating income (loss) | | | (20 | ) | | | 225 | | | | 66 | | | | — | | | | 271 | |
Interest expense | | | (32 | ) | | | (7 | ) | | | (2 | ) | | | — | | | | (41 | ) |
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Income (loss) from continuing operations before income taxes and income from investment in unconsolidated affiliate | | | (52 | ) | | | 218 | | | | 64 | | | | — | | | | 230 | |
Income tax (provision) benefit | | | 37 | | | | (80 | ) | | | (23 | ) | | | — | | | | (66 | ) |
Income from investment in unconsolidated affiliate | | | — | | | | 4 | | | | — | | | | — | | | | 4 | |
Equity in earnings of consolidated affiliates | | | 183 | | | | — | | | | — | | | | (183 | ) | | | — | |
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Income from continuing operations | | | 168 | | | | 142 | | | | 41 | | | | (183 | ) | | | 168 | |
Income (loss) from discontinued operations, net of income taxes | | | — | | | | — | | | | — | | | | — | | | | — | |
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Net income | | $ | 168 | | | $ | 142 | | | $ | 41 | | | $ | (183 | ) | | $ | 168 | |
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Comprehensive income | | $ | 174 | | | $ | 142 | | | $ | 43 | | | $ | (185 | ) | | $ | 174 | |
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Condensed Consolidating Balance Sheet |
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March 31, 2015 |
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(In millions) | | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Company | Subsidiaries | Subsidiaries |
Assets | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 25 | | | $ | 71 | | | $ | 200 | | | $ | — | | | $ | 296 | |
Trade accounts receivable, net | | | — | | | | 503 | | | | 262 | | | | — | | | | 765 | |
Prepaid expenses and other current assets | | | 47 | | | | 232 | | | | 158 | | | | — | | | | 437 | |
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Total current assets | | | 72 | | | | 806 | | | | 620 | | | | — | | | | 1,498 | |
Due from consolidated affiliates | | | — | | | | 2,559 | | | | 723 | | | | (3,282 | ) | | | — | |
Investments in consolidated affiliates | | | 11,157 | | | | — | | | | — | | | | (11,157 | ) | | | — | |
Intangible assets, net | | | 22 | | | | 1,715 | | | | 237 | | | | — | | | | 1,974 | |
Goodwill | | | — | | | | 4,154 | | | | 1,050 | | | | — | | | | 5,204 | |
Other long-term assets | | | 34 | | | | 522 | | | | 103 | | | | — | | | | 659 | |
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Total assets | | $ | 11,285 | | | $ | 9,756 | | | $ | 2,733 | | | $ | (14,439 | ) | | $ | 9,335 | |
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Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | $ | 175 | | | $ | 571 | | | $ | 190 | | | $ | — | | | $ | 936 | |
Current maturities of long-term debt | | | 90 | | | | 5 | | | | — | | | | — | | | | 95 | |
Deferred revenue | | | — | | | | 273 | | | | 197 | | | | — | | | | 470 | |
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Total current liabilities | | | 265 | | | | 849 | | | | 387 | | | | — | | | | 1,501 | |
Long-term debt | | | 3,750 | | | | 7 | | | | — | | | | — | | | | 3,757 | |
Due to consolidated affiliates | | | 3,282 | | | | — | | | | — | | | | (3,282 | ) | | | — | |
Other long-term liabilities | | | 770 | | | | 43 | | | | 46 | | | | — | | | | 859 | |
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Total liabilities | | | 8,067 | | | | 899 | | | | 433 | | | | (3,282 | ) | | | 6,117 | |
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Total shareholders’ equity | | | 3,218 | | | | 8,857 | | | | 2,300 | | | | (11,157 | ) | | | 3,218 | |
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Total liabilities and shareholders’ equity | | $ | 11,285 | | | $ | 9,756 | | | $ | 2,733 | | | $ | (14,439 | ) | | $ | 9,335 | |
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Condensed Consolidating Balance Sheet |
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December 31, 2014 |
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(In millions) | | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Company | Subsidiaries | Subsidiaries |
Assets | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 21 | | | $ | 80 | | | $ | 193 | | | $ | — | | | $ | 294 | |
Trade accounts receivable, net | | | — | | | | 510 | | | | 288 | | | | — | | | | 798 | |
Prepaid expenses and other current assets | | | 48 | | | | 209 | | | | 137 | | | | — | | | | 394 | |
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Total current assets | | | 69 | | | | 799 | | | | 618 | | | | — | | | | 1,486 | |
Due from consolidated affiliates | | | — | | | | 2,467 | | | | 670 | | | | (3,137 | ) | | | — | |
Investments in consolidated affiliates | | | 10,987 | | | | — | | | | — | | | | (10,987 | ) | | | — | |
Intangible assets, net | | | 23 | | | | 1,734 | | | | 246 | | | | — | | | | 2,003 | |
Goodwill | | | — | | | | 4,154 | | | | 1,055 | | | | — | | | | 5,209 | |
Other long-term assets | | | 36 | | | | 496 | | | | 107 | | | | — | | | | 639 | |
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Total assets | | $ | 11,115 | | | $ | 9,650 | | | $ | 2,696 | | | $ | (14,124 | ) | | $ | 9,337 | |
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Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | $ | 119 | | | $ | 586 | | | $ | 200 | | | $ | — | | | $ | 905 | |
Current maturities of long-term debt | | | 90 | | | | 2 | | | | — | | | | — | | | | 92 | |
Deferred revenue | | | — | | | | 285 | | | | 204 | | | | — | | | | 489 | |
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Total current liabilities | | | 209 | | | | 873 | | | | 404 | | | | — | | | | 1,486 | |
Long-term debt | | | 3,707 | | | | 4 | | | | — | | | | — | | | | 3,711 | |
Due to consolidated affiliates | | | 3,137 | | | | — | | | | — | | | | (3,137 | ) | | | — | |
Other long-term liabilities | | | 767 | | | | 31 | | | | 47 | | | | — | | | | 845 | |
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Total liabilities | | | 7,820 | | | | 908 | | | | 451 | | | | (3,137 | ) | | | 6,042 | |
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Total shareholders’ equity | | | 3,295 | | | | 8,742 | | | | 2,245 | | | | (10,987 | ) | | | 3,295 | |
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Total liabilities and shareholders’ equity | | $ | 11,115 | | | $ | 9,650 | | | $ | 2,696 | | | $ | (14,124 | ) | | $ | 9,337 | |
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Condensed Consolidating Statement of Cash Flows |
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Three Months Ended March 31, 2015 |
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(In millions) | | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Company | Subsidiaries | Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities from continuing operations | | $ | 88 | | | $ | 190 | | | $ | 68 | | | $ | — | | | $ | 346 | |
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Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Capital expenditures, including capitalization of software costs | | | — | | | | (71 | ) | | | (19 | ) | | | — | | | | (90 | ) |
Other investing activities | | | — | | | | (133 | ) | | | (42 | ) | | | 175 | | | | — | |
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Net cash used in investing activities from continuing operations | | | — | | | | (204 | ) | | | (61 | ) | | | 175 | | | | (90 | ) |
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Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Debt proceeds | | | 422 | | | | 8 | | | | — | | | | — | | | | 430 | |
Debt repayments | | | (378 | ) | | | (3 | ) | | | — | | | | — | | | | (381 | ) |
Proceeds from issuance of treasury stock | | | 28 | | | | — | | | | — | | | | — | | | | 28 | |
Purchases of treasury stock, including employee shares withheld for tax obligations | | | (331 | ) | | | — | | | | — | | | | — | | | | (331 | ) |
Other financing activities | | | 175 | | | | — | | | | — | | | | (175 | ) | | | — | |
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Net cash (used in) provided by financing activities from continuing operations | | | (84 | ) | | | 5 | | | | — | | | | (175 | ) | | | (254 | ) |
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Net change in cash and cash equivalents from continuing operations | | | 4 | | | | (9 | ) | | | 7 | | | | — | | | | 2 | |
Net cash flows from (to) discontinued operations | | | — | | | | — | | | | — | | | | — | | | | — | |
Beginning balance | | | 21 | | | | 80 | | | | 193 | | | | — | | | | 294 | |
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Ending balance | | $ | 25 | | | $ | 71 | | | $ | 200 | | | $ | — | | | $ | 296 | |
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Condensed Consolidating Statement of Cash Flows |
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Three Months Ended March 31, 2014 |
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(In millions) | | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Company | Subsidiaries | Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities from continuing operations | | $ | 59 | | | $ | 166 | | | $ | 67 | | | $ | — | | | $ | 292 | |
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Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Capital expenditures, including capitalization of software costs | | | (2 | ) | | | (48 | ) | | | (20 | ) | | | — | | | | (70 | ) |
Other investing activities | | | — | | | | (103 | ) | | | (46 | ) | | | 149 | | | | — | |
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Net cash used in investing activities from continuing operations | | | (2 | ) | | | (151 | ) | | | (66 | ) | | | 149 | | | | (70 | ) |
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Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Debt proceeds | | | 62 | | | | — | | | | — | | | | — | | | | 62 | |
Debt repayments | | | (62 | ) | | | — | | | | — | | | | — | | | | (62 | ) |
Proceeds from issuance of treasury stock | | | 12 | | | | — | | | | — | | | | — | | | | 12 | |
Purchases of treasury stock, including employee shares withheld for tax obligations | | | (335 | ) | | | — | | | | — | | | | — | | | | (335 | ) |
Other financing activities | | | 157 | | | | — | | | | — | | | | (149 | ) | | | 8 | |
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Net cash used in financing activities from continuing operations | | | (166 | ) | | | — | | | | — | | | | (149 | ) | | | (315 | ) |
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Net change in cash and cash equivalents from continuing operations | | | (109 | ) | | | 15 | | | | 1 | | | | — | | | | (93 | ) |
Net cash flows from (to) discontinued operations | | | — | | | | — | | | | — | | | | — | | | | — | |
Beginning balance | | | 139 | | | | 76 | | | | 185 | | | | — | | | | 400 | |
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Ending balance | | $ | 30 | | | $ | 91 | | | $ | 186 | | | $ | — | | | $ | 307 | |
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