First Data 2012 Annual Report Download - page 40

held by IPS and the BAMS alliance totaled $85.8 million and $75.2 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, 2012 and 2011 totaling $268.4
million and $216.0 million, respectively. As of December 31, 2012, there was approximately $70 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 2013 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.
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 $1,793.9 million, $1,458.2 million and
$1,494.9 million in cash interest, including interest on lines of credit and capital leases, was paid during 2012, 2011 and 2010,
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.
The timing of quarterly interest payments in 2013 will be impacted by when payment dates occur, shifting payments normally
included in the first quarter to the second quarter. The Company estimates that its 2013 quarterly cash interest payments, excluding
interest on lines of credit and capital leases, will be as follows:
(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 2013 in cash.
Using December 31, 2012 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 $1.1 million.
40
Year ended December 31,
Source/(use) (in millions) 2012 2011 2010
N
et loss $(527.3) $ (336.1) $ (846.9)
Depreciation and amortization (including amortization netted against
equity earnings in affiliates and revenues) 1,330.9 1,344.2 1,526.0
Charges (gains) related to other operating expenses and other income
(expense) 122.5 (77.7)97.4
Other non-cash and non-operating items, net (40.2) 27.7 265.6
Increase (decrease) in cash, excluding the effects of acquisitions and
dispositions, resulting from changes in:
Accounts receivable, current and long-term (49.8) 256.7 224.7
Other assets, current and long-term 260.0 239.3 298.3
Accounts payable and other liabilities, current and long-term (34.6) (1.2) (386.1)
Income tax accounts (294.1)(337.3)(424.3)
N
et cash provided by operating activities
$ 767.4 $ 1,115.6 $ 754.7
Three months ended
Estimated cash interest
payments on Long-term
Debt (a)
(Unaudited)
March 31, 2013 $ 440
June 30, 2013 465
September 30, 2013 665
December 31, 2013 225
$1,795