First Data 2009 Annual Report Download - page 71

FIRST DATA CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Refer to Note 18 to the Consolidated Financial Statements included in Item 8 of this Form 10-K for a description
of the impacted securities. The Company does not anticipate the need to liquidate the securities until after 2010.
The use of cash from other investing activities in 2008 related mostly to $12.3 million in illiquid money
market funds reclassified from cash and cash equivalents in December 2008 and other items not individually
significant. These were mostly offset by a source of cash related to proceeds from the sale of merchant portfolios
and the redemption of VISA stock.
The source of cash from other investing activities in the 2007 successor period related most significantly to
$49.5 million from activity associated with the Company’s First Financial Bank which was dissolved prior to
December 31, 2007, $44.3 million from the sale of strategic investments and a decrease of $34.6 million in
regulatory, restricted and escrow cash balances. These sources were partially offset by a use related to $20.2
million in payments for termination of interest rate and cross currency swaps. The use of cash in the 2007
predecessor period related to sources of $75.0 million in distributions from certain strategic investments,
proceeds from the sale of merchant portfolios and proceeds from the sale of investments as well as $48.6 million
related to activity associated with the Company’s First Financial Bank. Offsetting these sources were uses related
to $85.2 million in payments for termination of interest rate and cross currency swaps and a $31.1 million
increase in regulatory, restricted and escrow cash balances.
Cash Flows from Financing Activities
Successor Predecessor
Year ended
December 31,
Period from
September 25,
2007
through
December 31,
Period from
January 1,
2007
through
September 24,
Source/(use) (in millions) 2009 2008 2007 2007
Short-term borrowings, net ............................. $(206.1) $ (41.9) $ 238.5 $ 26.3
Proceeds from issuance of long-term debt ................. — 100.4 21,245.7 —
Principal payments on long-term debt ..................... (243.1) (326.8) (2,033.3) (126.6)
Proceeds from issuance of common stock ................. — — 7,224.4 187.4
Distributions and dividends paid to noncontrolling interests . . . (10.0) (150.9) (36.6) (126.5)
Contributions from noncontrolling interests ................ 193.0 — — 2.1
Purchases of noncontrolling interest ...................... — (78.4) (73.8) —
Capital contributed by Parent ........................... — 126.8 — —
Excess tax benefit from share-based payment arrangement .... — 13.1 — 219.8
Purchase of treasury shares ............................. — — — (371.8)
Cash dividends ....................................... — (1.8) — (67.7)
Net cash (used in) provided by financing activities .......... $(266.2) $(359.5) $26,564.9 $(257.0)
Short-Term Borrowings, net
The use of cash related to short-term borrowings in 2009 resulted from a net $18.0 million payment on the
senior secured revolving credit facility as well as $189.5 million of net payments on credit lines used to prefund
settlement activity. The use of cash in 2008 resulted from a net $42.0 million payment on the senior secured
revolving credit facility as well as timing of draws and payments on credit lines associated with settlement
activity. The source of cash in the successor period from September 25, 2007 through December 31, 2007 was
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