First Data 2013 Annual Report Download - page 41

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Net loss $(692.1) $ (527.3) $ (336.1)
Depreciation and amortization (including amortization netted against equity earnings in
affiliates and revenues) 1,211.9 1,330.9 1,344.2
Charges (gains) related to other operating expenses and other income (expense) 102.9 122.5 (77.7)
Other non-cash and non-operating items, net (8.8)(40.2) 27.7
Increase (decrease) in cash, excluding the effects of acquisitions and dispositions,
resulting from changes in:
Accounts receivable, current and long-term 63.3 (49.8)256.7
Other assets, current and long-term 2.8 260.0 239.3
Accounts payable and other liabilities, current and long-term (1.2)(34.6)(1.2)
Income tax accounts (6.1) (294.1)(337.3)
Net cash provided by operating activities $672.7 $ 767.4 $ 1,115.6
Cash flows provided by operating activities for the periods presented resulted from normal operating activities and reflect the timing of the Company’s
working capital requirements.
FDC’s operating cash flow is significantly impacted by its level of debt. Approximately $1,802.2 million, $1,793.9 million and $1,458.2 million in
cash interest, including interest on lines of credit and capital leases, was paid during 2013, 2012 and 2011, respectively. The increase in cash interest in 2012
compared to 2011 is due primarily to the debt exchanges referred to above resulting in seven months of interest payments in 2011 compared to twelve months
of interest payments in 2012 for the notes issued in the exchange as well as an increase in the interest coupon rate.
FDC estimates that its 2014 quarterly cash interest payments, excluding interest on lines of credit and capital leases, will be as follows:
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March 31, 2014 $605
June 30, 2014 265
September 30, 2014 630
December 31, 2014 270
$ 1,770
Using December 31, 2013 balances for variable rate debt and applicable interest rate swaps, a 10 percent increase in the applicable LIBOR index on an
annualized basis would increase interest expense by approximately $1.0 million.
The Company’s operating cash flows are impacted by fluctuations in working capital. Cash flows from operating activities in 2013 decreased compared
to 2012 primarily due to timing of various payments. The decrease was partially offset by sources of cash related to lower prefunding of settlement
arrangements. Cash flows from operating activities in 2012 decreased compared to 2011 primarily due to the increase in cash interest payments as well as an
increase in prefunding settlement volumes and timing partially offset by increased operating income.
FDC anticipates funding operations throughout 2014 primarily with cash flows from operating activities and by closely managing discretionary capital
and other spending; however, any shortfalls would be supplemented as necessary by borrowings against its revolving credit facility.
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