First Data 2009 Annual Report Download - page 228

Chase Paymentech
COMBINED STATEMENTS OF CASH FLOWS
For the years ended
(In thousands)
December 31,
2007 2006
2005
(unaudited)
Operating activities
Net income ............................................ $ 582,446 $ 475,952 $ 283,529
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization ......................... 66,793 113,663 76,522
Deferred income taxes ............................... 4,510 9,286 4,214
Minority interest ................................... 191 398 1,606
Provision for doubtful accounts ........................ 7,240 8,512 8,530
Losses on investments ............................... 1,156 137 298
Other non-cash expense .............................. 5,549 5,661 2,728
Changes in operating assets and liabilities:
Receivables related to merchant processing .......... 1,798,190 (1,729,913) (846,071)
Accounts receivable ............................. (81,186) (19,390) (41,426)
Prepaid expenses and other assets .................. (7,974) 25,893 (31,575)
Accounts payable ............................... (2,140) (5,786) 73,970
Liabilities related to merchant processing ............ 428,061 1,604,049 804,559
Accrued assessments ............................ (438) 4,680 2,360
Merchant deposits .............................. (128,727) 64,769 139,501
Other accrued expenses and liabilities ............... (10,238) 39,509 28,126
Net cash provided by operating activities ........................ 2,663,433 597,420 506,871
Investing activities
Purchases of property and equipment ....................... (66,190) (50,823) (33,494)
Purchases of merchant portfolios ........................... (23,399) (1,566) (750)
Purchases of investments ................................. (106,283) (226,631) (287,727)
Sales of investments ..................................... 107,304 11,520 35,675
Maturities of investments ................................. 60,572 178,052 237,364
Net cash used in investing activities ............................ (27,996) (89,448) (48,932)
Financing activities
Dividends and distributions ............................... (432,459) (478,152) (193,795)
Capital contributions .................................... 21,058 95,641 —
Cash retained as a result of excess tax benefits relating to
employee share-based awards ........................... 410 2,304 (2,661)
Proceeds from issuance of common stock related to employee
share-based awards ................................... 1,112 2,471 1,840
Share repurchases related to employee share-based awards ...... (4,065) (6,469) (26,682)
Payments on short-term financing .......................... — (23,867) —
Payments on long-term debt .............................. (21,113) (17,648) (17,023)
Operating cash attributed to the integration of CMS on October 1,
2005 ............................................... — — 568,383
Net cash provided by (used in) financing activities ................. (435,057) (425,720) 330,062
Effect of exchange rate changes on cash and cash equivalents ........ 11,713 270 967
Increase in cash and cash equivalents ........................... 2,212,093 82,522 788,968
Cash and cash equivalents at beginning of year ................... 1,315,890 1,233,368 444,400
Cash and cash equivalents at end of year ........................ $3,527,983 $ 1,315,890 $1,233,368
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