First Data 2014 Annual Report Download - page 37

We estimate that our 2015 quarterly cash interest payments, excluding interest on lines of credit and capital leases, will be as follows:





March 31, 2015
$ 560
June 30, 2015
225
September 30, 2015
570
December 31, 2015
230
$ 1,585
Using December 31, 2014 balances for variable rate debt and applicable interest rate swaps, a 100 basis point increase in the applicable London Interbank
Offered Rate (LIBOR) index on an annualized basis would increase interest expense by approximately $44 million.
Our operating cash flows are impacted by fluctuations in working capital. Cash flows from operating activities in 2014 increased compared to 2013 primarily
due to an increase in operating income and a decrease in cash interest payments. Cash flows from operating activities in 2013 decreased compared to 2012
primarily due to timing of various payments. The decrease was partially offset by sources of cash related to lower prefunding of settlement arrangements.






Proceeds from dispositions, net of expenses paid
$ 270.1
$ 18.1
$ —
Additions to property and equipment
(308.0)
(194.1)
(193.1)
Payments to secure customer service contracts, including outlays for conversion, and
capitalized systems development costs
(258.5)
(184.4)
(177.2)
Acquisitions, net of cash acquired
(30.8)
(12.1)
(32.9)
Proceeds from sale of property and equipment
2.7
11.8
8.0
Contributions to equity method investments
—
—
(7.9)
Other investing activities
(4.3)
7.6
6.0
Net cash used in investing activities
$ (328.8) $ (353.1) $ (397.1)
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. Purchases of noncontrolling interests are classified as financing activities as noted below. We continue to manage
our portfolio of businesses and evaluate the possible divestiture of businesses that do not match our long-term growth objectives. Additionally, we continue
to pursue opportunities that strategically fit into the business. We finance acquisitions through a combination of cash flows from operating activities,
reinvestment of proceeds from the sale of other assets, borrowings, and equity. We believe that these sources of funds will be adequate to meet our funding
requirements as it relates to future acquisitions.
In August 2014, we acquired Gyft, a leading digital platform that enables consumers to buy, send, manage, and redeem gift cards using mobile devices.
In May 29, 2014, we completed the sale of our 30% minority interest in a transportation payments business, EFS, and received $264 million in cash.
In October 2013, we acquired 100% of Perka, a provider of a mobile marketing and consumer loyalty solution.
In December 2012, we acquired 100% of Clover Network, a provider of payment network services.
For a more detailed discussion on acquisitions and dispositions refer to Note 3 "Acquisitions and Dispositions" to our Consolidated Financial Statements in
Part II, Item 8 of this Form 10-K.
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