First Data 2011 Annual Report Download - page 43

market value. At December 31, 2011 and 2010, the Company held $485.7 million and $509.5 million in cash and cash equivalents,
respectively.
Included in cash and cash equivalents are amounts held by Integrated Payment Systems Inc. ("IPS") that are not available to
fund operations outside of the IPS business. In addition, cash and cash equivalents also includes amounts held by the BAMS alliance,
which is consolidated by the Company, that are not available to fund operations outside of the alliance. At December 31, 2011 and
2010, the cash and cash equivalents held by IPS and the BAMS alliance totaled $75.2 million and $127.0 million, respectively. All
other domestic cash balances, to the extent available, are used to fund the Company's short-term liquidity needs.
Cash and cash equivalents also includes amounts held outside of the U.S. at December 31, 2011 and 2010 totaling $216.0
million and $200.6 million, respectively. As of December 31, 2011, there was approximately $60 million of cash and cash equivalents
held outside of the U.S. that could be used for general corporate purposes. FDC plans to fund any cash needs in 2012 within the
International segment with cash held by the segment, but if necessary, could fund such needs using cash from the U.S., subject to
satisfying debt covenant restrictions.
Cash flows from operating activities.
Year ended December 31,
Source/(use) (in millions) 2011 2010 2009
Net loss $ (336.1) $ (846.9) $ (1,014.6)
Depreciation and amortization (including amortization netted against
equity earnings in affiliates and revenues) 1,344.2 1,526.0 1,553.8
Charges related to other operating expenses and other income (expense) (77.7) 97.4 350.5
Other non-cash and non-operating items, net 27.7 265.6 306.2
Increase (decrease) in cash, excluding the effects of acquisitions and
dispositions, resulting from changes in:
Accounts receivable, current and long-term 256.7 224.7 288.8
Other assets, current and long-term 239.3 298.3 215.6
Accounts payable and other liabilities, current and long-term (1.2) (386.1) (42.8)
Income tax accounts (337.3)(424.3)(657.9)
Net cash provided by operating activities $ 1,115.6 $ 754.7 $ 999.6
Cash flows provided by operating activities for the periods presented resulted from normal operating activities and also reflect
the timing of the Company's working capital requirements.
FDC's operating cash flow is significantly impacted by its level of debt. Approximately $1,458.2 million, $1,494.9 million and
$1,412.2 million in cash interest, including interest on lines of credit and capital leases, was paid during 2011, 2010 and 2009,
respectively. Excluding interest on lines of credit and capital leases, cash interest payments on long-term debt obligations in 2012 are
expected to increase to approximately $1,735 million, due primarily to the debt exchange discussed 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. The timing
of quarterly interest payments in 2012 will be impacted by when payment dates occur, shifting payments normally included in the first
and third quarters to the second and fourth quarters. The Company estimates that its 2012 quarterly cash interest payments, excluding
interest on lines of credit and capital leases, will be as follows:
Three months ended
Estimated cash interest
payments on Long-term
Debt (a)
(Unaudited)
March 31, 2012 $ 495
June 30, 2012 395
September 30, 2012 500
December 31, 2012 345
$ 1,735
(a) The Company has an option to pay certain portions of its interest obligations "in kind" as an increase in principal rather
than in cash. These amounts represent the amount of cash projected to be paid if the Company opts to pay its entire interest
obligation for 2012 in cash.
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