First Data 2011 Annual Report Download - page 45

restrictions in its debt agreements. All acquisitions during the periods presented were funded from cash flows from operating activities
or from the reinvestment of cash proceeds from the sale of other assets other than the 2009 acquisition of the Company's proportionate
share of the BAMS alliance discussed in "significant non-cash transactions" below. Purchases of noncontrolling interests are classified
as financing activities as noted below. Although the Company considers potential acquisitions from time to time, the Company's plan
for 2012 does not include funding of material acquisitions.
In the fourth quarter of 2011, the Company funded $160 million to one of its merchant alliance partners for referrals from bank
branches contributed to the alliance as called for by the agreement that extended the term of the alliance in 2008. In 2009, the
Company contributed $28.0 million to the PNC alliance.
For 2009, payments related to other businesses previously acquired related mostly to contingent consideration associated with a
merchant alliance for which there have been no additional payments. The Company does not anticipate significant payments
associated with other businesses.
During 2010, proceeds from dispositions related most significantly to the receipt of a contingent payment associated with the
Company's sale of a merchant acquiring business in Canada in the fourth quarter of 2009. The source of cash in proceeds from
dispositions in 2009 resulted from the Company selling the merchant acquiring business mentioned above and selling its debit and
credit card issuing and acquiring processing business in Austria.
The Company continues to manage its portfolio of businesses and evaluate the possible divestiture of businesses that do not
match its long-term growth objectives. For a more detailed discussion on acquisitions and dispositions in 2011, 2010 and 2009 refer to
Note 3 to the Consolidated Financial Statements included in Item 8 of this Form 10-K.
Capital expenditures. Capital expenditures are estimated to be approximately $425 to $475 million in 2012 and are expected to
be funded by cash flows from operations. If, however, cash flows from operating activities are insufficient, the Company will decrease
its discretionary capital expenditures or utilize its revolving credit facility.
Other investing activities.The source of cash in 2010 related to a decrease in regulatory, restricted and escrow cash balances.
The use of cash in 2009 related primarily to a $21.0 million increase in regulatory and restricted cash balances.
Cash flows from financing activities.
Year ended December 31,
Source/(use) (in millions) 2011 2010 2009
Short-term borrowings, net $ (107.3) $ 75.1 $ (206.1)
Debt modification and related financing costs (39.7) (61.2) —
Principal payments on long-term debt (104.5) (220.4) (243.1)
Proceeds from sale-leaseback transactions 14.2 — 21.8
Distributions and dividends paid to noncontrolling interests and
redeemable noncontrolling interests (327.3) (216.1) (10.0)
Contributions from noncontrolling interests 0.8 — 193.0
Purchase of noncontrolling interest — (213.3) —
Redemption of Parent's redeemable common stock (0.5) (2.5) —
Cash dividends (0.2)(14.9)—
Net cash used in financing activities $ (564.5)$ (653.3)$ (244.4)
Short-term borrowings, net.The cash activity related to short-term borrowings in 2011 resulted primarily from net paydowns on
FDC's credit lines used principally to prefund settlement activity. In 2010, the cash activity related to short-term borrowings resulted
primarily from net borrowings on FDC's senior secured revolving credit facility. 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 the timing of draws and
payments on credit lines associated with settlement activity.
FDC utilizes its revolving credit facility on a short-term basis to fund investing or operating activities when cash flows from
operating activities are not sufficient. The Company believes the capacity under its senior secured revolving credit facility is sufficient
to meet its short-term liquidity needs. FDC's senior secured revolving credit facility can be used for working capital and general
corporate purposes.
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