First Data 2014 Annual Report Download - page 36

As of February 27, 2015, our long-term corporate family rating from Moody’s was B3 (positive outlook). The long-term local issuer credit rating from
Standard and Poor’s was B (stable). The long-term issuer default rating from Fitch was B (stable). Our current level of debt may limit our ability to get
additional funding beyond our revolving credit facility if needed.
 Investments (other than those included in settlement assets) with original maturities of three months or less (that are readily
convertible to cash) are considered to be cash equivalents and are stated at cost, which approximates market value. As of December 31, 2014 and 2013, we
held $358 million and $425 million in cash and cash equivalents, respectively.
Included in cash and cash equivalents are amounts held by subsidiaries that are not available to fund operations outside of those subsidiaries. As of
December 31, 2014 and 2013, the cash and cash equivalents held by these subsidiaries totaled $152 million and $116 million, respectively. All other
domestic cash balances, to the extent available, are used to fund our short-term liquidity needs.
Cash and cash equivalents also includes amounts held outside of the U.S. as of December 31, 2014 and 2013 totaling $171 million and $238 million,
respectively. Approximately $34 million as of December 31, 2014 is held in Argentina where government imposed restrictions prevent any material
repatriations outside of the country. As of December 31, 2014, there was approximately $58 million of cash and cash equivalents held outside of the U.S. that
could be used for general corporate purposes. We plan to fund any cash needs in 2015 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.
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Net loss
$ (264.5)
$ (692.1)
$ (527.3)
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization (including amortization netted against equity earnings in
affiliates and revenues)
1,163.3
1,211.9
1,330.9
Charges related to other operating expenses and other income
112.2
102.9
122.5
Other non-cash and non-operating items, net
2.6
(8.8)
(40.2)
Increase (decrease) in cash, excluding the effects of acquisitions and dispositions,
resulting from changes in:
Accounts receivable, current and long-term
(61.2)
63.3
(49.8)
Other assets, current and long-term
62.4
2.8
260.0
Accounts payable and other liabilities, current and long-term
12.0
(1.2)
(34.6)
Income tax accounts
(13.6)
(6.1)
(294.1)
Net cash provided by operating activities
$ 1,013.2 $ 672.7 $ 767.4
Cash flows provided by operating activities for the periods presented resulted from normal operating activities and reflect the timing of our working capital
requirements.
Our operating cash flow is significantly impacted by our level of debt. Approximately $1.7 billion, $1.8 billion, and $1.8 billion in cash interest, including
interest on lines of credit and capital leases, was paid during 2014, 2013, and 2012, respectively. The decrease in cash interest in 2014 compared to 2013 is
primarily due to extinguishing debt in the third quarter of 2014.
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