Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | FIRST DATA CORP | ||
Entity Central Index Key | 883,980 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3.7 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 371,975,017 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 544,031,779 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues: | ||||||||||||
Transaction and processing service fees | [1] | $ 6,600 | $ 6,597 | $ 6,510 | ||||||||
Product sales and other | [1] | 1,239 | 1,167 | 1,038 | ||||||||
Total revenues (excluding reimbursable items) | 7,839 | 7,764 | 7,548 | |||||||||
Reimbursable debit network fees, postage, and other | 3,745 | 3,687 | 3,604 | |||||||||
Total revenues | $ 2,943 | $ 2,936 | $ 2,928 | $ 2,777 | $ 2,964 | $ 2,920 | $ 2,872 | $ 2,695 | 11,584 | 11,451 | 11,152 | |
Expenses: | ||||||||||||
Cost of services (exclusive of items shown below) | 2,855 | 2,871 | 2,668 | |||||||||
Cost of products sold | 337 | 356 | 330 | |||||||||
Selling, general, and administrative | 2,035 | 2,292 | 2,043 | |||||||||
Depreciation and amortization | 949 | 1,022 | 1,056 | |||||||||
Other operating expenses | 61 | 53 | 13 | |||||||||
Total expenses (excluding reimbursable items) | 6,237 | 6,594 | 6,110 | |||||||||
Reimbursable debit network fees, postage, and other | 3,745 | 3,687 | 3,604 | |||||||||
Total expenses | 2,463 | 2,482 | 2,498 | 2,539 | 2,865 | 2,518 | 2,463 | 2,435 | 9,982 | 10,281 | 9,714 | |
Operating (loss) profit | 480 | 454 | 430 | 238 | 99 | 402 | 409 | 260 | 1,602 | 1,170 | 1,438 | |
Interest expense, net | (1,068) | (1,537) | (1,728) | |||||||||
Loss on debt extinguishment | (70) | (1,068) | (274) | |||||||||
Other income | 17 | 29 | 161 | |||||||||
Income (loss) before income taxes and equity earnings in affiliates | 481 | (1,406) | (403) | |||||||||
Income tax expense | 81 | 101 | 82 | |||||||||
Equity earnings in affiliates | 260 | 239 | 220 | |||||||||
Net income (loss) | 251 | 200 | 215 | (6) | (1,163) | (75) | 33 | (63) | 660 | (1,268) | (265) | |
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest | 240 | 213 | 193 | |||||||||
Net income (loss) attributable to First Data Corporation | $ 192 | $ 132 | $ 152 | $ (56) | $ (1,217) | $ (126) | $ (26) | $ (112) | $ 420 | $ (1,481) | $ (458) | |
Net income (loss) per share: | ||||||||||||
Basic (USD per share) | $ 0.21 | $ 0.15 | $ 0.17 | $ (0.06) | $ 0.47 | $ (7.70) | $ (458,000) | |||||
Diluted (USD per share) | $ 0.21 | $ 0.14 | $ 0.17 | $ (0.06) | $ 0.46 | $ (7.70) | $ (458,000) | |||||
Weighted-average common shares outstanding: | ||||||||||||
Basic (in shares) | 901,671,872 | 192,263,793 | 1,000 | |||||||||
Diluted (in shares) | 921,001,863 | 192,263,793 | 1,000 | |||||||||
[1] | Includes processing fees, administrative service fees, and other fees charged to merchant alliances accounted for under the equity method of $198 million, $205 million, and $181 million for the years ended December 31, 2016, 2015, and 2014, respectively. |
CONSOLIDATED STATEMENTS OF OPE3
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Processing fees, administrative service fees and other fees charged to merchant alliances accounted for under the equity method | $ 198 | $ 205 | $ 181 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 660 | $ (1,268) | $ (265) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | (153) | (290) | (308) |
Pension liability adjustments | 38 | (13) | (36) |
Derivative instruments | 3 | 0 | 0 |
Marketable securities | 0 | 3 | (7) |
Total other comprehensive loss, net of tax | (112) | (300) | (351) |
Comprehensive income (loss) | 548 | (1,568) | (616) |
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest | 235 | 203 | 182 |
Comprehensive income (loss) attributable to First Data Corporation | $ 313 | $ (1,771) | $ (798) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 385 | $ 429 |
Accounts receivable, net of allowance for doubtful accounts of $74 and $71 | 1,877 | 1,826 |
Settlement assets | 14,795 | 8,150 |
Prepaid expenses and other current assets | 360 | 381 |
Total current assets | 17,417 | 10,786 |
Property and equipment, net of accumulated depreciation of $1,416 and $1,367 | 883 | 951 |
Goodwill | 16,696 | 16,846 |
Customer relationships, net of accumulated amortization of $5,660 and $5,299 | 1,739 | 2,136 |
Other intangibles, net of accumulated amortization of $2,365 and $2,134 | 1,800 | 1,783 |
Investment in affiliates | 988 | 1,048 |
Other long-term assets | 769 | 812 |
Total assets | 40,292 | 34,362 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,564 | 1,639 |
Short-term and current portion of long-term borrowings | 358 | 856 |
Settlement obligations | 14,795 | 8,150 |
Total current liabilities | 16,717 | 10,645 |
Long-term borrowings | 18,131 | 18,737 |
Deferred tax liabilities | 409 | 431 |
Other long-term liabilities | 831 | 812 |
Total liabilities | 36,088 | 30,625 |
Commitments and contingencies (See note 14) | ||
Redeemable noncontrolling interest | 73 | 77 |
First Data Corporation stockholders' equity: | ||
Additional paid-in capital | 13,149 | 12,910 |
Accumulated loss | (10,612) | (11,032) |
Accumulated other comprehensive loss | (1,326) | (1,219) |
Total First Data Corporation stockholders' equity | 1,220 | 668 |
Noncontrolling interests | 2,911 | 2,992 |
Total equity | 4,131 | 3,660 |
Total liabilities and equity | 40,292 | 34,362 |
Common Stock | ||
First Data Corporation stockholders' equity: | ||
Common stock | 0 | 0 |
Class A Common Stock | ||
First Data Corporation stockholders' equity: | ||
Common stock | 4 | 2 |
Class B Common Stock | ||
First Data Corporation stockholders' equity: | ||
Common stock | $ 5 | $ 7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance for doubtful accounts | $ 74 | $ 71 |
Property and equipment, accumulated depreciation | 1,416 | 1,367 |
Customer relationships, accumulated amortization | 5,660 | 5,299 |
Other intangibles, accumulated amortization | $ 2,365 | $ 2,134 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 1,000 | 1,000 |
Common stock, issued shares (in shares) | 1,000 | 1,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, issued shares (in shares) | 367,893,026 | 179,873,244 |
Common stock, outstanding shares (in shares) | 367,893,026 | 179,873,244 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 624,998,004 | 800,000,000 |
Common stock, issued shares (in shares) | 544,066,353 | 719,330,114 |
Common stock, outstanding shares (in shares) | 544,066,353 | 719,330,114 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 660 | $ (1,268) | $ (265) |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) | 1,061 | 1,133 | 1,163 |
Charges (gains) related to other operating expenses and other income | 44 | 24 | (148) |
Loss on debt extinguishment | 70 | 1,068 | 274 |
Stock-based compensation expense | 263 | 329 | 51 |
Other non-cash and non-operating items, net | 35 | 48 | 70 |
(Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in: | |||
Accounts receivable, current and long-term | (81) | (184) | (50) |
Other assets, current and long-term | 61 | (199) | (48) |
Accounts payable and other liabilities, current and long-term | 35 | (162) | 1 |
Income tax accounts | (37) | 6 | (13) |
Net cash (used in) provided by operating activities | 2,111 | 795 | 1,035 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to property and equipment | (232) | (282) | (308) |
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs | (245) | (320) | (259) |
Acquisitions, net of cash acquired | (6) | (89) | (31) |
Proceeds from dispositions | 38 | 4 | 270 |
Proceeds from sale of property and equipment | 38 | 17 | 3 |
Other investing activities, net | 20 | (15) | (4) |
Net cash provided by (used in) investing activities | (387) | (685) | (329) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Short-term borrowings, net | 205 | (31) | 12 |
Proceeds from issuance of long-term debt | 3,533 | 10,258 | 1,830 |
Payment of call premiums and debt issuance cost | (53) | (1,062) | (355) |
Principal payments on long-term debt | (5,073) | (11,568) | (3,751) |
Payment of taxes related to net settlement of equity awards | (61) | 0 | 0 |
Proceeds from issuance of common stock | 23 | 2,718 | 0 |
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest | (316) | (312) | (266) |
Capital transactions with former parent, net | 0 | (19) | 1,788 |
Other financing activities, net | 8 | 0 | (1) |
Net cash provided by (used in) financing activities | (1,734) | (16) | (743) |
Effect of exchange rate changes on cash and cash equivalents | (34) | (23) | (30) |
Change in cash and cash equivalents | (44) | 71 | (67) |
Cash and cash equivalents at beginning of period | 429 | 358 | 425 |
Cash and cash equivalents at end of period | 385 | 429 | 358 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Income tax payments, net of refunds received | 118 | 95 | 96 |
Interest paid | 1,032 | 1,815 | 1,729 |
Distributions received from equity method investments | 304 | 289 | 278 |
NON-CASH TRANSACTIONS: | |||
Capital leases and other financing arrangements, net of trade-ins | $ 215 | $ 83 | $ 128 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | Accumulated Loss | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | |||
Balance at beginning of period (in shares) at Dec. 31, 2013 | [1] | 1,000 | 0 | ||||||||
Beginning Balance at Dec. 31, 2013 | [1] | $ 1,575 | $ 0 | $ 0 | $ 7,384 | $ (8,403) | $ (589) | $ 3,183 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends and distributions paid to noncontrolling interests | [2] | (231) | (231) | ||||||||
Net (loss) income | [3] | (299) | (458) | 159 | |||||||
Other comprehensive loss | (351) | (340) | (11) | ||||||||
Adjustments to redemption value of redeemable noncontrolling interest | (2) | (2) | |||||||||
Stock compensation expense and other | 43 | 43 | |||||||||
Capital contributed by former Parent | 2,482 | 2,482 | |||||||||
Cash dividends paid by First Data Corporation to former Parent | (686) | (686) | |||||||||
Purchase of noncontrolling interest | (1) | (1) | |||||||||
Balance at end of period (in shares) at Dec. 31, 2014 | [1] | 1,000 | 0 | ||||||||
Ending Balance at Dec. 31, 2014 | [1] | 2,530 | $ 0 | $ 0 | 9,906 | (9,547) | (929) | 3,100 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends and distributions paid to noncontrolling interests | [2] | (277) | (277) | ||||||||
Net (loss) income | [3] | (1,302) | (1,481) | 179 | |||||||
Other comprehensive loss | (300) | (290) | (10) | ||||||||
Adjustments to redemption value of redeemable noncontrolling interest | (8) | (8) | |||||||||
Stock compensation expense and other | 316 | 316 | |||||||||
Cash dividends paid by First Data Corporation to former Parent | (4) | (4) | |||||||||
Holding Company Merger (in shares) | (1,000) | (1,000) | [1] | 719,330,114 | [1] | ||||||
Holding Company Merger | [1] | (13) | $ 7 | (20) | |||||||
Initial Public Offering (in shares) | 179,873,244 | ||||||||||
Initial Public Offering | 2,718 | $ 2 | 2,716 | ||||||||
Balance at end of period (in shares) at Dec. 31, 2015 | 763,000,000 | 179,873,244 | 719,330,114 | ||||||||
Ending Balance at Dec. 31, 2015 | 3,660 | $ 2 | $ 7 | 12,910 | (11,032) | (1,219) | 2,992 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends and distributions paid to noncontrolling interests | [2] | (283) | (283) | ||||||||
Net (loss) income | [3] | 627 | 420 | 207 | |||||||
Other comprehensive loss | (112) | (107) | (5) | ||||||||
Adjustments to redemption value of redeemable noncontrolling interest | 4 | 4 | |||||||||
Stock compensation expense and other | 263 | 263 | |||||||||
Stock activity under stock compensation plans and other (in shares) | 188,019,782 | (175,263,761) | |||||||||
Stock activity under stock compensation plans and other | (28) | $ 2 | $ (2) | (28) | |||||||
Balance at end of period (in shares) at Dec. 31, 2016 | 367,893,026 | 544,066,353 | |||||||||
Ending Balance at Dec. 31, 2016 | $ 4,131 | $ 4 | $ 5 | $ 13,149 | $ (10,612) | $ (1,326) | $ 2,911 | ||||
[1] | 1,000 shares relates to common stock without a class that was eliminated upon the merger with First Data Holdings. | ||||||||||
[2] | The total distribution presented in the consolidated statements of equity for the years ended December 31, 2016, 2015, and 2014 excludes $33 million, $35 million, and $35 million, respectively, in distributions paid to redeemable non-controlling interest not included in equity. | ||||||||||
[3] | The total net income (loss) presented in the consolidated statements of equity for the years ended December 31, 2016, 2015, and 2014 is $33 million lower, $34 million higher, and $34 million higher, respectively, than the amount presented on the consolidated statements of operations due to the net income attributable to the redeemable noncontrolling interest not included in equity. |
CONSOLIDATED STATEMENTS OF EQU9
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Distributions paid to redeemable non-controlling interest | $ 33 | $ 35 | $ 35 |
Change in total net income (loss) | $ 33 | $ 34 | $ 34 |
Common Stock | |||
Number of shares eliminated upon merger | 1,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Description First Data Corporation (FDC or the Company) is a global leader in commerce-enabling technology and solutions for merchants, financial institutions, and card issuers. The Company provides merchant transaction processing and acquiring; credit, retail, and debit card issuing and processing; prepaid services; and check verification, settlement and guarantee services; as well as solutions to help clients grow their businesses including the Company's Clover line of payment solutions and related applications. On October 15, 2015, the Company filed its Prospectus with the Securities and Exchange Commission pursuant to Rule 424(b). The Company issued 176,076,869 shares of Class A common stock and began trading on the New York Stock Exchange under the symbol "FDC". On October 13, 2015, First Data Holdings Inc. (FDH), the Company's direct parent company, merged with and into First Data Corporation, with First Data Corporation being the surviving entity (HoldCo Merger). All outstanding shares of FDH were converted into Class B common stock, which are entitled to ten votes per share. All outstanding common stock of First Data Corporation were eliminated upon the merger. The Company accounted for the HoldCo Merger as a transfer of assets between entities under common control and reflected the transaction in its financial statements on a prospective basis. On October 13, 2015, the Company amended its certificate of incorporation which affected a reverse stock split of the Company’s authorized, issued and outstanding Class B common stock, on the basis of 1 new share of Class B common stock for each 3.16091 old shares of common stock. Consolidation The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in unconsolidated affiliated companies are accounted for under the equity method and are included in “Investment in affiliates” in the accompanying consolidated balance sheets. The Company generally utilizes the equity method of accounting when it has an ownership interest of between 20% and 50% in an entity, provided the Company is able to exercise significant influence over the investee’s operations. The Company consolidates an entity’s financial statements when the Company has a controlling financial interest in the entity. Control is normally established when ownership interests exceed 50% in an entity; however, when the Company does not exercise control over a majority-owned entity as a result of other investors having rights over the management and operations of the entity, the Company accounts for the entity under the equity method. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Presentation Depreciation and amortization, presented as a separate line item on the Company’s consolidated statements of operations, does not include amortization of initial payments for new contracts which is recorded as contra-revenue within “Transaction and processing service fees.” Also not included is amortization related to equity method investments which is netted within “Equity earnings in affiliates.” The following table presents the amounts associated with such amortization for the periods presented: Year ended December 31, (in millions) 2016 2015 2014 Amortization of initial payments for new contracts $ 65 $ 51 $ 45 Amortization related to equity method investments 47 60 62 Revenue Recognition The majority of the Company’s revenues are comprised of: 1) transaction-based fees, which typically constitute a percentage of dollar volume processed; 2) fees per transaction processed; 3) fees per account on file during the period; or 4) some combination thereof. The Company’s arrangements with clients often consist of multiple services and products (multiple-element arrangements). In accounting for multiple-element arrangements, the Company assesses the elements of the contract and whether each element has standalone value and allocates revenue to the various elements based on their estimated selling price as a component of total consideration for the arrangement. The selling price is based on current selling prices offered by the Company or another party for current products or management's best estimate of a selling price. In the case of contracts that the Company owns and manages, revenue is comprised of fees charged to the client, net of interchange fees and assessments charged by the credit card associations, and is recognized at the time the client accepts a point of sale transaction. The fees charged to the client are a percentage of the credit card and debit card transaction’s dollar value, a fixed amount, or a combination of the two. Personal identification number based debit (PIN-debit) and PINless-debit network fees are recognized in “Reimbursable debit network fees, postage, and other” revenues and expenses in the consolidated statements of operations. STAR Network access fees charged to clients are assessed on a per transaction basis. Interchange fees and assessments charged by credit card associations to the Company’s consolidated subsidiaries and network fees related to PIN-debit and PINless-debit transactions charged by debit networks were as follows for the periods presented: Year ended December 31, (in millions) 2016 2015 2014 Interchange fees and assessments $ 23,810 $ 21,711 $ 20,406 Debit network fees 3,121 2,991 2,965 The Company charges processing fees to its merchant alliances. In situations where an alliance is accounted for under the equity method, the Company’s consolidated revenues include the processing fees charged to the alliance, as presented in the consolidated statements of operations within "Transaction and processing service fees". Revenue from check verification, settlement, and guarantee services is recognized at the time of sale less the fair value of the guarantee. The fair value of the guarantee is deferred and recognized at the later of the Company being called upon to honor the guarantee or the expiration of the guarantee. Check verification fees generally are a fixed amount per transaction while check guarantee fees generally are a percentage of the check amount. The purchase and sale of merchant contracts is an ordinary element of the Company’s businesses, and therefore, the gains from selling these revenue-generating assets are included within “Product sales and other” in the consolidated statements of operations. Fees based on cardholder accounts on file are recognized after the requisite services or period has occurred. Fees for PIN-debit transactions where the Company is the debit card processor for the financial institution are recognized on a per transaction basis. Revenues for output services are derived primarily on a per piece basis and consist of fees for the production, materials, and postage related to mailing finished products and recognized as the services are provided. The sale and leasing of POS devices (terminals) are reported in “Product sales and other” in the consolidated statements of operations. Revenue for terminals sold or sold under a sales-type lease transaction is recognized when the following four criteria are met: evidence of an agreement exists, delivery has occurred, the selling price or minimum lease payments are fixed or determinable, and collection of the selling price or minimum lease payments is reasonably assured. Revenue for operating leases is recognized on a straight-line basis over the lease term. Services not specifically described above are generally transaction based fees that are recognized at the time the transactions are processed or programming services that are either recorded as work is performed or are recognized over the life of the contract depending on the underlying business relationship. Deferred Revenue The Company records deferred revenue when it receives payments or invoices in advance of the delivery of products or the performance of services. The deferred revenue is recognized when underlying performance obligations are achieved. As of December 31, 2016 and 2015, current deferred revenue included within "Accounts payable and accrued liabilities" in the Company's consolidated balance sheets was $149 million and $140 million , respectively. As of December 31, 2016 and 2015, noncurrent deferred revenue included within "Other long-term liabilities" in the Company's consolidated balance sheets was $184 million and $146 million , respectively. See note 20 "Subsequent Events" of these consolidated financial statements for subsequent changes to the Company's deferred revenue policies. Stock-Based Compensation Stock-based compensation to employees is measured at the grant date fair values of the respective stock options and restricted stock awards. An estimate of forfeitures is applied when calculating compensation expense. The Company recognizes compensation cost on awards with graded vesting on a straight-line basis over the requisite service period for the entire award. Refer to note 4 "Stock Compensation Plans" of these consolidated financial statements for details regarding the Company’s stock-based compensation plan. Foreign Currency Translation The U.S. dollar is the functional currency of the Company’s U.S.-based businesses and certain foreign-based businesses. Significant operations with a local currency as their functional currency include operations in the United Kingdom, Australia, Germany, Ireland, Greece, and Argentina. Foreign currency-denominated assets and liabilities for these units and other less significant operations are translated into U.S. dollars based on exchange rates prevailing at the end of the period, and revenues and expenses are translated at average exchange rates during each monthly period. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of those entities where the functional currency is not the U.S. dollar are included as a component of Other Comprehensive Income (Loss) (OCI). Intercompany loans are generally not considered invested on a long-term basis and such foreign currency gains and losses are included in "Other income" on the consolidated statements of operations. Transaction gains and losses related to operating assets and liabilities are included in “Cost of services” and “Selling, general, and administrative” in the consolidated statements of operations and were immaterial. Non-operating transaction gains and losses derived from non-operating assets and liabilities are included in “Other income” on the consolidated statements of operations and are separately disclosed in note 16 "Supplemental Financial Information" of these consolidated financial statements. Derivative Financial Instruments The Company is exposed to various financial and market risks, including those related to changes in interest rates and foreign currency exchange rates, that exist as part of its ongoing business operations. The Company uses derivative instruments (i) to mitigate cash flow risks with respect to changes in interest rates (forecasted interest payments on variable rate debt), (ii) to maintain a desired ratio of fixed rate and floating rate debt, and (iii) to protect the net investment in certain foreign subsidiaries and/or affiliates with respect to changes in foreign currency exchange rates. The Company’s objective is to engage in risk management strategies that provide adequate downside protection. Derivative instruments are entered into for periods consistent with related underlying exposures. The Company applies strict policies to manage each of these risks, including prohibition against derivatives trading, derivatives market-making or any other speculative activities. Although some of the Company’s derivatives either do not qualify or are not designated for hedge accounting, they are maintained for economic hedge purposes and are not considered speculative. The Company formally documents all relationships between hedging instruments and the underlying hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that have been designated as cash flow hedges to forecasted transactions and net investment hedges to the underlying investment in a foreign subsidiary or affiliate. For designated hedges, the Company formally assesses, both at inception of the hedge and on an ongoing basis, whether the hedge is highly effective in offsetting changes in cash flows or foreign currency exposure of the underlying hedged items. The Company also performs an assessment of the probability of the forecasted transactions on a periodic basis. If it is determined that a derivative ceases to be highly effective during the term of the hedge or if the forecasted transaction is no longer probable, the Company discontinues hedge accounting prospectively for such derivative. The Company monitors the financial stability of its derivative counterparties and all counterparties remain highly-rated (in the “A” category or higher). The credit risk inherent in these agreements represents the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. The Company performs a review at inception of the hedge, as circumstances warrant, and at least on a quarterly basis, of the credit risk of these counterparties. The Company also monitors the concentration of its contracts with individual counterparties. The Company’s exposures are in liquid currencies (primarily in U.S. dollars, euros, Australian dollars, British pounds, and Canadian dollars), so there is minimal risk that appropriate derivatives to maintain the hedging program would not be available in the future. The Company recognizes all derivative financial instruments in the consolidated balance sheets as assets or liabilities at fair value. Such amounts are recorded in “Other current assets”, “Other long-term assets”, “Accounts payable and accrued liabilities” or “Other long-term liabilities” in the consolidated balance sheets. The Company’s policy is to present all derivative balances on a gross basis, without regard to counterparty master netting agreements or similar arrangements. Changes in fair value of derivative instruments are recognized immediately in "Other income" on the consolidated statements of operations unless the derivative is designated and qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. For derivatives that qualify as hedges of future cash flows, the effective portion of changes in fair value is recorded temporarily in equity as a component of OCI and then recognized in "Other income" in the consolidated statements of operations in the same period or periods during which the hedged item affects earnings. For derivatives that qualify as a hedge of a net investment in a foreign operation, the gain or loss is reported in OCI as part of the cumulative translation adjustment to the extent the hedge is effective. Any ineffective portions of cash flow hedges and net investment hedges are recognized in “Other income” in the consolidated statements of operations during the period of change. Additional discussion of derivative instruments is provided in note 13 "Derivative Financial Instruments" of these consolidated financial statements. Noncontrolling and Redeemable Noncontrolling Interests Noncontrolling interests represent the minority shareholders’ share of the net income or loss and equity in consolidated subsidiaries. Substantially all of the Company’s noncontrolling interests are presented pretax in the consolidated statements of operations as “Net income attributable to noncontrolling interests and redeemable noncontrolling interest” because the majority of the Company’s non wholly owned consolidated subsidiaries are flow through entities for tax purposes. Noncontrolling interests are presented as a component of equity in the consolidated balance sheets and reflect the original investments by these noncontrolling shareholders in the consolidated subsidiaries, along with their proportionate share of the earnings or losses of the subsidiaries, net of dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of equity and are carried at their estimated redemption value. Refer to note 5 "Stockholders' Equity and Redeemable Noncontrolling Interest" of these consolidated financial statements for more information. A noncontrolling interest is recorded on the date of acquisition based on the total fair value of the acquired entity and the noncontrolling interest’s share of that value. Reserve for Merchant Credit Losses and Check Guarantees With respect to the merchant acquiring business, the Company’s merchant customers (or those of its unconsolidated alliances) have the liability for any charges properly reversed by the cardholder. In the event, however, that the Company is not able to collect such amounts from the merchants due to merchant fraud, insolvency, bankruptcy or another reason, the Company may be liable for any such reversed charges. The Company’s risk in this area primarily relates to situations where the cardholder has purchased goods or services to be delivered in the future. The Company’s obligation to stand ready to perform is minimal in relation to the total dollar volume processed. The Company requires cash deposits, guarantees, letters of credit or other types of collateral from certain merchants to minimize this obligation. Collateral held by the Company is classified within “Settlement assets” and the obligation to repay the collateral if it is not needed is classified within “Settlement obligations” on the Company’s consolidated balance sheets. The Company also utilizes a number of systems and procedures to manage merchant risk. Despite these efforts, the Company historically has experienced some level of losses due to merchant defaults. The amount of cash deposits and letters of credit held by the Company was $628 million and $652 million as of December 31, 2016 and 2015 , respectively. The Company’s contingent obligation relates to imprecision in its estimates of required collateral. A provision for this obligation is recorded based primarily on historical experience of credit losses and other relevant factors such as economic downturns or increases in merchant fraud. Merchant credit losses are included in “Cost of services” in the Company’s consolidated statements of operations. The amount of the reserves attributable to entities consolidated by the Company was $23 million and $22 million as of December 31, 2016 and 2015 , respectively. The majority of the TeleCheck business involves the guarantee of checks received by merchants. If the check is returned, TeleCheck is required to purchase the check from the merchant at its face value and pursue collection from the check writer. A provision for estimated check returns, net of anticipated recoveries, is recorded at the transaction inception based on recent history. The following table presents the estimate of losses on returned check and the fair value of check guarantees: As of December 31, (in millions) 2016 2015 Estimate of losses on returned checks $ 5 $ 6 Fair value of checks guaranteed 17 21 The estimate of losses on returned checks is included in “Accounts payable and accrued liabilities” and the fair value of checks guaranteed is included in “Accounts receivable, net” in the consolidated balance sheets. The maximum potential future payments under the guarantees were approximately $452 million as of December 31, 2016 which represented an estimate of the total uncleared checks at that time. Income Taxes The Company and its domestic subsidiaries file a consolidated U.S. income tax return. The Company’s foreign operations file income tax returns in their local jurisdictions. Income taxes reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, these deferred tax assets will be adjusted through the Company’s provision for income taxes in the period in which this determination is made. The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Cash and Cash Equivalents 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. Cash and cash equivalents that were restricted from use due to regulatory requirements are included in “Other long-term assets” in the consolidated balance sheets and was $30 million and $3 million as of December 31, 2016 and 2015 , respectively. Accounts Receivable and Leasing Receivables Accounts receivable balances are stated net of allowance for doubtful accounts. Historically, the Company has infrequently incurred significant write-offs. The Company records allowances for doubtful accounts when it is probable that the accounts receivable balance will not be collected. Long-term accounts receivable balances are included in “Other long-term assets” in the consolidated balance sheets. The Company has receivables associated with its POS terminal leasing businesses. Leasing receivables are included in “Accounts receivable” and “Other long-term assets” in the consolidated balance sheets. The Company recognizes interest income on its leasing receivables using the effective interest method. Interest income from leasing receivables is included in “Product sales and other” in the consolidated statements of operations. For direct financing leases, the interest rate used incorporates initial direct costs included in the net investment in the lease. For sales type leases, initial direct costs are expensed as incurred. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the lesser of the estimated useful life of the related assets (generally three years to 10 years for equipment, furniture, and leasehold improvements, and 30 years for buildings) or the lease term. Maintenance and repairs which do not extend the useful life of the respective assets are expensed as incurred. The following table presents depreciation and amortization expense related to property and equipment, including equipment under capital lease: Year ended December 31, (in millions) Amount 2016 $ 300 2015 290 2014 286 Goodwill and Other Intangibles Goodwill represents the excess of purchase price over tangible and intangible assets acquired less liabilities assumed arising from business combinations. Goodwill is generally allocated to reporting units based upon relative fair value (taking into consideration other factors such as synergies) when an acquired business is integrated into multiple reporting units. The Company’s reporting units are at the operating segment level or one level below the operating segment level for which discrete financial information is prepared and regularly reviewed by management. When a business within a reporting unit is disposed of, goodwill is allocated to the disposed business using the relative fair value method. Relative fair value is estimated using a discounted cash flow analysis. The Company tests goodwill annually for impairment, as well as upon an indicator of impairment, using a fair value approach at the reporting unit level. The Company estimates the fair value of each reporting unit using a discounted cash flow analysis. The Company performed its annual goodwill impairment test in the fourth quarters of 2016 and 2015 . As of October 1, 2016 , the most recent impairment analysis date, the fair value of each reporting unit exceeded its carrying value. The Company did not record any goodwill impairment charges in 2016 , 2015 , and 2014. Customer relationships represent the estimated value of the Company’s relationships with customers, primarily merchants and financial institutions, to which it provides services. Customer relationships are amortized based on the pattern of undiscounted cash flows for the period as a percentage of total projected undiscounted cash flows. The Company selected this amortization method for these customer relationships based on a conclusion that the projected undiscounted cash flows could be reliably determined. The Company capitalizes initial payments for new contracts, contract renewals, and conversion costs associated with customer processing relationships to the extent recoverable through cash flows from future operations, contractual minimums, and/or penalties in the case of early termination. The Company’s accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated ongoing future cash flows from the contract or the termination fees the Company would receive in the event of early termination of the contract by the customer. The initial payments for new contracts and contract renewals are amortized over the term of the contract as a reduction of the associated revenue (transaction and processing service fees). Conversion costs are also amortized over the term of the contract but are recorded as an expense in “Depreciation and amortization” in the consolidated statements of operations. The Company develops software that is used in providing processing services to customers. To a lesser extent, the Company also develops software to be sold or licensed to customers. Costs incurred during the preliminary project stage are expensed as incurred. Capitalization of costs begins when the preliminary project stage is completed and management, with the relevant authority, authorizes and commits to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalization of costs ceases when the software is substantially complete and ready for its intended use. Software development costs are amortized using the straight-line method over the estimated useful life of the software, which is generally 5 years . Software acquired in connection with business combinations is amortized using the straight-line method over the estimated useful life of the software which generally ranges from three years to 10 years . In addition to capitalized contract and software development costs, other intangibles include copyrights, patents, purchased software, trademarks, and non-compete agreements acquired in business combinations. Other intangibles, except for the First Data trade name discussed in note 3 “Goodwill and Other Intangibles” of these consolidated financial statements, are amortized on a straight-line basis over the length of the contract or benefit period, which generally ranges from three years to 25 years . Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair value is defined by accounting guidance as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the hierarchy prescribed in the accounting guidance for fair value measurements, based upon the available inputs to the valuation and the degree to which they are observable or not observable in the market. The Company maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. The three levels in the hierarchy are as follows: • Level 1 Inputs—Quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. • Level 2 Inputs—Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including but not limited to quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. • Level 3 Inputs—Unobservable inputs reflecting the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis During the years ended December 31, 2016 and 2015 , the Company did not record any adjustments over $5 million to the carrying value of existing assets based on non-recurring fair value measurements. Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing Net income (loss) attributable to FDC by the weighted-average shares outstanding during the period, without consideration for any potential dilutive shares. Diluted net income (loss) per share is computed by dividing Net income (loss) attributable to FDC by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested restricted stock awards. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. For any period where Net income (loss) attributable to First Data Corporation is presented, shares used in the diluted net income per share calculation represent basic shares because using diluted shares would be anti-dilutive. Reclassifications Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation. Specifically, the consolidated balance sheet as of December 31, 2016 reflects a $102 million reclassification related to settlement activities to conform certain domestic and international businesses to the Company's global policies, which increased "Cash and cash equivalents" and decreased "Accounts receivable". The consolidated statements of cash flows for the year ended December 31, 2016 reflects the reclassification of $102 million within “Net Cash provided by operating activities”. New Accounting Guidance Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued guidance that requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in an exchange for those goods or services. It also requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively, and improves guidance for multiple-element arrangements. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses and identifying performance obligations. The Company has performed a review of the requirements of the new revenue standard and are monitoring the activity of the FASB and the transition resource group as it relates to specific interpretive guidance. The Company is also comparing its current accounting practices to the recognition requirements of the new standard to assess the impact of transition. The new standard could change |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings As of December 31, (in millions) 2016 2015 Short-term borrowings: Foreign lines of credit and other arrangements $ 84 $ 43 Accounts receivable securitized loan at LIBOR plus 200 basis points or a base rate equal to the highest of (i) the applicable lender's prime rate, or (ii) the federal funds rate plus 0.50% 160 — Unamortized deferred financing costs (a) (2 ) — Total short-term borrowings 242 43 Current portion of long-term borrowings: 8.75% Senior secured second lien notes due 2022 — 750 Unamortized discount and unamortized deferred financing costs (a) — (10 ) Other arrangements and capital lease obligations 116 73 Total current portion of long-term borrowings 116 813 Total short-term and current portion of long-term borrowings 358 856 Long-term borrowings: Senior secured term loan facility due March 2018 at LIBOR and euro LIBOR plus 3.5% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.5% — 4,938 Senior secured term loan facility due September 2018 at LIBOR plus 3.5% or a base rate plus 2.5% — 1,008 Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 4.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 3.0% — 1,171 Senior secured term loan facility due July 2022 at LIBOR and euro LIBOR plus 3.75% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.75% — 2,464 Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 3.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.0% 4,379 — Senior secured term loan facility due July 2022 at LIBOR plus 3.0% or a base rate plus 2.0%, or solely with respect to euro-denominated term loans, euro LIBOR plus 3.25% 3,583 — 6.75% Senior secured first lien notes due 2020 1,398 1,398 5.375% Senior secured first lien notes due 2023 1,210 1,210 5.0% Senior secured first lien notes due 2024 1,900 1,000 5.75% Senior secured second lien notes due 2024 2,200 2,200 7.0% Senior unsecured notes due 2023 3,400 3,400 Unamortized discount and unamortized deferred financing costs (a) (154 ) (174 ) Other arrangements and capital lease obligations 215 122 Total long-term borrowings (b) 18,131 18,737 Total borrowings (c) $ 18,489 $ 19,593 (a) Unamortized deferred financing costs are amortized on a straight-line basis, which approximates the interest method, over the remaining term of the respective debt. In addition, certain lenders' fees associated with debt transactions were capitalized as discounts and are similarly being amortized on a straight-line basis, which approximates the effective interest method, over the remaining term of the respective debt. (b) As of December 31, 2016 and 2015 , the fair value of the Company's long-term borrowings was $18.8 billion and $19.6 billion , respectively. The estimated fair value of the Company's long-term borrowings was primarily based on market trading prices and is considered to be a Level 2 measurement. (c) The effective interest rate is not substantially different than the coupon rate on any of the Company's debt tranches. Foreign Lines of Credit and Other Arrangements As of December 31, 2016 and 2015 , the Company had $489 million and $245 million , respectively, available under short-term lines of credit and other arrangements with foreign banks and alliance partners primarily to fund settlement activity. As of December 31, 2016 and 2015 , this includes a $355 million and $75 million , respectively, committed line of credit for one of the Company's consolidated alliances. The remainder of these arrangements are primarily associated with international operations and are in various functional currencies, the most significant of which are the Australian dollar, the Polish zloty, and the euro. Of the amounts outstanding as of December 31, 2016 and 2015 , $10 million and $17 million , respectively, were uncommitted. The weighted average interest rate associated with foreign lines of credit was 2.6% and 2.6% for the years ended December 31, 2016 and 2015 , respectively. Senior Secured Revolving Credit Facility The Company has a $1.25 billion senior secured revolving credit facility maturing on June 2, 2020 subject to certain earlier springing maturity provisions in certain circumstances. Up to $250 million of the senior secured revolving credit facility is available for letters of credit, of which $41 million and $42 million of letters of credit were issued under the facilities as of December 31, 2016 and 2015 , respectively. As of December 31, 2016 , $1.2 billion remained available. Interest on the senior secured revolving credit facility is payable at a rate equal to, at Company’s option, either (a) LIBOR for deposits in the applicable currency plus 350 basis points or (b) solely with respect to revolving loans denominated in U.S. dollars, a base rate plus 250 basis points . The weighted-average interest rate on these facilities was 4.60% for the years ended December 31, 2016 and 2015 , respectively. The commitment fee rate for the unused portion of the facility is 0.50% per year, though it may be reduced by the Company's leverage ratio. Senior Secured Term Loan Facility As of December 31, 2016 , the Company held interest rate collar contracts to mitigate exposure to variability in interest payments on the outstanding variable rate senior secured term loans. Refer to note 13 "Derivative Financial Instruments" of these consolidated financial statements for a discussion of the Company’s derivatives. The original terms of the Company’s senior secured term loan facilities required the Company to pay equal quarterly installments in aggregate annual amounts equal to 1% of the original principal amount. However, in conjunction with debt modifications and amendments over the last several years, proceeds from the issuance of the notes were used to prepay portions of the principal balances of the Company’s senior secured term loans which satisfied the future quarterly principal payments. Therefore, the Company made no scheduled principal payments during 2016 or 2015 . The senior secured term loan facilities also require mandatory prepayments based on a percentage of excess cash flow generated by the Company if the Company does not satisfy the leverage ratio. All obligations under the senior secured loan facilities are fully and unconditionally guaranteed by most of the domestic, wholly owned material subsidiaries of the Company, subject to certain exceptions. The Company has amounts outstanding under its senior secured term loan facilities under separate tranches as described below. A portion of each tranche is denominated in euro. Interest is payable based upon LIBOR or euro LIBOR plus an applicable margin. On January 1, 2016, the Company designated the euro-denominated portions of the Senior secured term loan facilities as non-derivative hedges of net investments in foreign operations. As such, foreign currency gains and losses on the euro-denominated portions of these terms loans is recorded within "Foreign currency translation adjustment" on the Company's consolidated statements of comprehensive income (loss) to the extent the hedges are effective. Foreign currency gains and losses on the euro-denominated portions of these term loans were previously recorded within "Other income" on the Company's consolidated statements of operations. As of December 31, 2016, approximately $1 billion in euro-denominated senior secured term loan facilities were designated. 8.75% Senior Secured Second Lien Notes On January 15, 2016, the Company redeemed its remaining outstanding 8.75% senior secured second lien notes due 2022. Associated with the redemption, the Company incurred $43 million in loss on debt extinguishment. Senior Secured Term Loan Facility Due March 2018 and September 2018 On April 13, 2016, the Company refinanced its U.S. dollar-denominated senior secured term loan due March 2018 through new and existing lenders to provide approximately $3.7 billion of U.S. dollar-denominated senior secured term loans due March 2021. The senior secured term loan due March 2021 bore interest at a rate of LIBOR plus 400 basis points or a base rate plus 300 basis points . In connection with this transaction, the Company recorded approximately $5 million in loss on debt extinguishment and expensed approximately $11 million in debt issuance costs on modified debt, which is included within "Interest expense, net" on the consolidated statements of operations. On June 2, 2016, the Company refinanced its senior secured term loan due September 2018 and euro-denominated senior secured term loan due March 2018 through new and existing lenders to provide approximately $1.0 billion and €311 million ( $342 million equivalent), respectively, of senior secured term loans due July 2022. The senior secured term loans due July 2022 bore interest at a rate of LIBOR plus 375 basis points or, solely with respect to the U.S. dollar denominated term loans, a base rate plus 275 basis points . In connection with this transaction, the Company recorded approximately $4 million in loss on debt extinguishment and expensed $4 million in debt issuance costs on modified debt, which is included within "Interest expense, net" on the consolidated statements of operations. The euro-denominated senior secured term loan facility remains designated as a non-derivative hedge of net investment in foreign operations. Subsequent to the April 13, 2016 and June 2, 2016 debt transactions, the Company entered into additional amendments to its senior secured term loan facilities as discussed below. Senior Secured Term Loan Facility Due March 2021 and July 2022 On October 14, 2016, the Company entered into an amendment of its senior secured credit facilities providing for an additional $4.27 billion in U.S. dollar-denominated term loans and €154 million in euro denominated term loans maturing in March 2021. The senior secured term loan due March 2021 bears interest at a rate of LIBOR plus 300 basis points or, solely with respect to the U.S. dollar denominated term loan, a base rate plus 200 basis points . The Company used proceeds from the issuance of the March 2021 Term Loan to refinance all of its existing U.S dollar denominated term loans and euro denominated term loans maturing in March 2021. In connection with this transaction, the Company recorded approximately $6 million in loss on debt extinguishment and expensed approximately $6 million in debt issuance costs on modified debt, which is included within "Interest Expense, net" on the consolidated statements of operations. On December 5, 2016, the Company entered into an amendment of its senior secured credit facilities providing for an additional $2.78 billion in U.S. dollar-denominated term loans and €761 million in euro-denominated term loans maturing in July 2022. The senior secured term loan facility due July 2022 bears interest at LIBOR plus 3.0% or a base rate plus 2.0% , solely with respect to U.S. dollar-denominated term loans. The Senior secured term loan facility due July 2022 bears interest at euro LIBOR plus 3.25% , solely with respect to euro-denominated term loans. The July 2022 term loans have a step down provision which lowers the interest rate by 25 basis points should the Company’s Covenant EBITDA ratio fall below 3.5 . For additional information on the Company's Covenant EBITDA calculation see Item 7 “Covenant compliance” within this Form 10-K. In connection with this transaction, the Company recorded approximately $3 million in loss on debt extinguishment and expensed approximately $4 million in debt issuance costs on modified debt, which is included within "Interest Expense, net" on the consolidated statements of operations. For the year ended December 31, 2016 , the Company made approximately $700 million in principal payments on its 2021 and 2022 senior secured term loan facilities. In connection with the transactions, the Company recorded $6 million in loss on debt extinguishment. 6.75% Senior Secured First Lien Notes The Company's 6.75% senior secured first lien notes due November 1, 2020 require the payment of interest semi-annually on May 1 and November 1 of each year. The Company may redeem the notes, in whole or in part, at established redemption prices. For information on the subsequent paydown of the 6.75% notes, see note 20 "Subsequent Events" of these consolidated financial statements. 5.375% Senior Secured First Lien Notes On August 11, 2015, the Company issued approximately $1.2 billion aggregate principal amount of 5.375% senior secured first lien notes due August 15, 2023. Interest on the notes will be payable semi-annually in cash on February 15 and August 15 of each year, commencing on February 15, 2016. The Company may redeem the notes, in whole or in part, prior to August 15, 2018 at a price equal to 100% of the notes redeemed plus accrued and unpaid interest to the redemption date and a "make-whole premium". Thereafter, the Company may redeem the notes, in whole or in part, at established redemption prices. 5.0% Senior Secured First Lien Notes On March 29, 2016, the Company issued $900 million aggregate principal amount of 5.0% senior secured first lien notes due 2024 (the "additional" notes). The Company used the net proceeds from the issue and sale of the additional notes to repay a portion of its U.S. dollar-denominated senior secured term loan facility due March 2018 and to pay related fees and expenses. Associated with the partial redemption of the U.S. dollar-denominated senior secured term loan facility, the Company recorded $3 million in loss on debt extinguishment and expensed approximately $3 million in debt issuance costs on modified debt, which is included within "Interest expense, net" in the consolidated statements of operations. The Company may redeem the notes, in whole or in part, prior to January 15, 2019 at a price equal to 100% of the notes redeemed plus accrued and unpaid interest to the redemption date and a "make-whole premium". Thereafter, the Company may redeem the notes, in whole or in part, at established redemption prices. 5.75% Senior Secured Second Lien Notes On November 25, 2015, the Company issued $2.2 billion aggregate principal amount of 5.75% senior secured second lien notes due January 15, 2024. Interest on the notes is payable semi-annually in cash on January 15 and July 15 of each year. The Company used the proceeds from the offering together with proceeds from the November 25, 2015 offering of its 5.0% senior secured first lien notes to redeem $250 million of its outstanding 8.75% senior secured second lien notes due 2022 and all outstanding 8.25% second lien notes due 2021 and pay related fees and expenses. The Company may redeem the notes, in whole or in part, prior to January 15, 2019 at a price equal to 100% of the notes redeemed plus accrued and unpaid interest to the redemption date and a "make-whole premium". Thereafter, the Company may redeem the notes, in whole or in part, at established redemption prices. 7.0% Senior Unsecured Notes Due 2023 On November 18, 2015, the Company issued $3.4 billion aggregate principal amount of 7.0% senior unsecured notes due December 1, 2023. Interest on the notes is payable semi-annually in cash on June 1 and December 1 of each year. The Company may redeem the notes, in whole or in part, prior to December 1, 2018 at a price equal to 100% of the notes redeemed plus accrued and unpaid interest to the redemption date and a "make-whole premium". Thereafter, the Company may redeem the notes, in whole or in part, at established redemption prices. Accounts receivable securitization agreement The Company has a fully consolidated and wholly owned subsidiary, First Data Receivables, LLC (FDR). FDR and FDC entered into an agreement where certain wholly owned subsidiaries of FDC agreed to transfer and contribute receivables to FDR. FDR’s assets are not available to satisfy obligations of any other entities or affiliates of FDC. FDR's creditors will be entitled, upon its liquidation, to be satisfied out of FDR’s assets prior to any assets or value in FDR becoming available to FDR’s equity holders. As of December 31, 2016 , the Company transferred $312 million in receivables to FDR as part of the securitization program and FDR utilized the receivables as collateral in borrowings of $160 million . As of December 31, 2016 , the receivables held by FDR are recorded within “Accounts receivable, net” in the Company's consolidated balance sheets. The weighted-average interest rate on the securitization facility was 2.49% for the year ended December 31, 2016 . Maturities The following table presents the future aggregate annual maturities of long-term debt excluding unamortized discounts and deferred financing cost: Year ended December 31, (in millions) Par Amount 2017 $ 116 2018 89 2019 60 2020 1,443 2021 4,390 Thereafter 12,303 Total $ 18,401 Guarantees and Covenants All obligations under the senior secured revolving credit facility and senior secured term loan facilities are unconditionally guaranteed by most of the existing and future, direct and indirect, wholly owned, material domestic subsidiaries of the Company. The senior secured facilities contain a number of covenants that, among other things, restrict the Company’s ability to incur additional indebtedness; create liens; enter into sale and leaseback transactions; engage in mergers or consolidations; sell or transfer assets; pay dividends and distributions or repurchase the Company’s capital stock; make investments, loans or advances; prepay certain indebtedness; make certain acquisitions; engage in certain transactions with affiliates; amend material agreements governing certain indebtedness; and change its lines of business. The senior secured facilities also require the Company to not exceed a maximum senior secured leverage ratio and contain certain customary affirmative covenants and events of default, including a change of control. The senior secured term loan facilities also require mandatory prepayments based on a percentage of excess cash flow generated by the Company. The Company is in compliance with all applicable covenants. All senior secured notes are guaranteed on a senior secured basis by each of the Company’s existing and future direct and indirect wholly owned domestic subsidiaries that guarantees the Company’s senior secured credit facilities. Each of the guarantees of the notes is a general senior obligation of each guarantor and rank senior in right of payment to all existing and future subordinated indebtedness of the guarantor subsidiary, including the Company’s existing senior subordinated notes. The notes rank equal in right of payment with all existing and future senior indebtedness of the guarantor subsidiary but are effectively senior to the guarantees of the Company’s existing senior unsecured notes and the Company’s existing senior secured second lien notes to the extent of the Company’s and the guarantor subsidiary’s value of the collateral securing the notes. The 6.75% senior secured first lien notes, 5.375% senior secured first lien notes, and 5.0% senior secured first lien notes are effectively equal in right of payment with each other and the guarantees of the Company’s senior secured credit facilities. Each series of notes are effectively subordinated to any obligations secured by liens permitted under the indenture for the particular series of notes and structurally subordinated to any existing and future indebtedness and other liabilities of any subsidiary of a guarantor that is not also a guarantor of the notes. All senior unsecured notes (i) rank senior in right of payment to all of the Company’s existing and future subordinated indebtedness, (ii) rank equally in right of payment to all of the existing and future senior indebtedness, (iii) are effectively subordinated in right of payment to all existing and future secured debt to the extent of the value of the assets securing such debt, and (iv) are structurally subordinated to all obligations of each subsidiary that is not a guarantor of the senior notes. The notes are similarly guaranteed in accordance with their terms by each of the Company’s domestic subsidiaries that guarantee obligations under the Company’s senior secured term loan facility described in more detail in note 19 "Supplemental Guarantor Condensed Consolidating Financial Statements" of these consolidated financial statements. All obligations under the senior secured first lien notes, senior secured second lien notes, and senior unsecured notes also contain a number of covenants similar to those described for the senior secured obligations noted above. The Company is in compliance with all applicable covenants. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles The following table presents changes to goodwill for the years ended December 31, 2015 and 2016 : (in millions) Global Business Solutions Global Financial Network & Security Solutions Divested Operations Totals Balance as of January 1, 2015 Goodwill $ 15,712 $ 2,126 $ 2,238 $ 181 $ 20,257 Accumulated impairment losses (1,363 ) (683 ) (1,013 ) (181 ) (3,240 ) 14,349 1,443 1,225 — 17,017 Acquisitions 9 — 46 — 55 Other adjustments (primarily foreign currency) (154 ) (72 ) — — (226 ) Balance as of December 31, 2015 Goodwill 15,567 2,054 2,284 181 20,086 Accumulated impairment losses (1,363 ) (683 ) (1,013 ) (181 ) (3,240 ) 14,204 1,371 1,271 — 16,846 Acquisitions 5 — — — 5 Dispositions (25 ) — — — (25 ) Other adjustments (primarily foreign currency) (42 ) (88 ) — — (130 ) Balance as of December 31, 2016 Goodwill 15,505 1,966 2,284 181 19,936 Accumulated impairment losses (1,363 ) (683 ) (1,013 ) (181 ) (3,240 ) $ 14,142 $ 1,283 $ 1,271 $ — $ 16,696 The intangible amortization expense associated with customer relationships and other intangibles, including amortization associated with investments in affiliates, was as follows for the periods indicated: Year ended December 31, (in millions) Amount 2016 $ 761 2015 843 2014 877 The carrying value of the First Data trade name is $604 million as of December 31, 2016 and 2015 . Upon consideration of many factors, including the determination that there are no legal, regulatory or contractual provisions that limit the useful life of the First Data trade name, the Company determined that the First Data trade name had an indefinite useful life. The Company also considered the effects of obsolescence, demand, competition, other economic factors, and its ability to maintain and protect the trade name without significant expenditures. The First Data trade name is expected to contribute directly or indirectly to the future cash flows of the Company for an indefinite period. As an indefinite lived asset, the First Data trade name is not amortized but is reviewed annually for impairment until such time as it is determined to have a finite life. The First Data trade name was not impaired as of December 31, 2016 or 2015 . The following table provides the components of other intangibles: As of December 31, 2016 2015 Accumulated Net of Accumulated Accumulated Net of Accumulated (in millions) Cost Amortization Amortization Cost Amortization Amortization Customer relationships $ 7,399 $ (5,660 ) $ 1,739 $ 7,435 $ (5,299 ) $ 2,136 Other intangibles: Conversion costs $ 248 $ (109 ) $ 139 $ 218 $ (102 ) $ 116 Contract costs 306 (149 ) 157 280 (123 ) 157 Software 2,236 (1,726 ) 510 2,019 (1,547 ) 472 Other, including trade names 1,375 (381 ) 994 1,400 (362 ) 1,038 Total other intangibles $ 4,165 $ (2,365 ) $ 1,800 $ 3,917 $ (2,134 ) $ 1,783 The estimated future aggregate amortization expense for the next five years is as follows: Year ended December 31, (in millions) Amount 2017 $ 629 2018 560 2019 475 2020 393 2021 276 The Company tests contract and conversion costs for recoverability on an annual basis by comparing the remaining expected undiscounted cash flows under the contract to the net book value. Any assets that are determined to be unrecoverable are written down to their fair value. In addition to this annual test, these assets and all other long lived assets are tested for impairment upon an indicator of potential impairment. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans The Company provides stock-based compensation awards to its employees under the 2015 Omnibus Incentive Plan (stock plan), which the Company adopted in conjunction with its initial public offering (IPO) on October 15, 2015. The total number of shares of Class A common stock that may be issued under the stock plan is 71 million , plus any shares of Class B common stock subject to outstanding awards granted under the Company's 2007 Equity Plan that are forfeited, terminated, canceled, expired unexercised, withheld in payment of the exercise price, or withheld to satisfy tax withholding obligations which automatically converted on a one -for-one basis into shares of Class A common stock. The stock plan allows for the Company to award an equity interest in the Company or an award that can be settled in cash measured by reference to the value of the Company's Class A common stock. Stock-based compensation expense for awards that vest based solely on service conditions are recognized over the requisite service period. As discussed in note 1 "Summary of Significant Accounting Policies" of these consolidated financial statements, on October 15, 2015, the Company filed its Prospectus with the Securities and Exchange Commission (SEC) pursuant to Rule 424(b) and started trading on the New York Stock Exchange, therefore all shares are subject to vesting. Total stock-based compensation expense recognized in the "Cost of services" and “Selling, general, and administrative” line items of the consolidated statements of operations resulting from stock options, non-vested restricted stock awards, and non-vested restricted stock units was as follows for the periods presented: Year ended December 31, (in millions) Cost of services Selling, general, and administrative Total 2016 (a) $ 112 $ 151 $ 263 2015 (b) 130 199 329 2014 (c) 2 49 51 (a) Approximately $52 million of stock-based compensation expense was recognized in conjunction with the IPO. (b) Approximately $254 million was recognized in conjunction with the IPO and $14 million of stock-based compensation expense was recognized as a result of the departure of certain executive officers. (c) Approximately $37 million of stock-based compensation expense was recognized as a result of the departure of certain executive officers. On September 28, 2015, the Company authorized the grant of restricted stock awards, restricted stock units, and options to certain executives in connection with the consummation of its initial public offering and these awards were valued at approximately $120 million , resulting in incremental unrecognized compensation expense. Two-thirds of these grants are subject to time-based vesting conditions over the next five years and one-third are subject to a market-based vesting condition. Subject to the recipient’s continued service with the Company through the applicable vesting event, shares subject to market-based stock options and market-based restricted stock will fully vest on the date immediately following the date on which the closing trading price of a share of Class A common stock on the NYSE or other such primary exchange on which shares of Class A common stock are listed and traded has equaled or exceeded two times the per share price to the public in the offering for ten consecutive trading days. Employee Stock Purchase Plan The Company has an employee stock purchase plan under which the sale of 6.3 million shares of the Company's common stock is authorized. The price for shares purchased under the plan is 95% of the market value on the last day of each calendar quarter. As of December 31, 2016 the amount of shares issued under the plan is not material. Stock Options During the years ended December 31, 2016 , 2015 , and 2014 , time-based options were granted under the stock plan. The time-based options have a contractual term of 10 years . Time-based options vest equally over a three to five year period from the date of issuance. The outstanding time-based options also have certain accelerated vesting provisions that became effective upon the Company's initial public offering. As of December 31, 2016 , there was approximately $84 million of total unrecognized compensation expense related to stock options to be recognized over a weighted-average period of approximately two years . The fair value of stock options granted for the years ended December 31, 2016 , 2015 , and 2014 were estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: Year ended December 31, 2016 2015 2014 Risk-free interest rate 2.08 % 1.87 % 2.24 % Dividend yield — — — Expected volatility 41.33 % 55.15 % 50.45 % Expected term (in years) 7 7 7 Fair value of stock $ 12.62 $ 15.53 $ 12.64 Fair value of options $ 5.33 $ 8.68 $ 6.76 Risk-free interest rate— The risk-free rate for stock options granted during the period was determined by using a zero-coupon U.S. Treasury rate for the periods that coincided with the expected terms listed above. Expected dividend yield— No routine dividends are currently being paid, or are expected to be paid in future periods. Expected volatility —As the Company does not have sufficient historical data due to its relatively short history of being publicly traded, the expected volatility is based on the historical volatilities of a group of guideline companies. Expected term— The Company estimated the expected term by utilizing the “simplified method” as allowed by the SEC. Fair value of stock— The Company determined the fair value based on discounted cash flows and comparison to a group of guideline companies prior to being publicly traded on October 15, 2015 and the Company's closing stock price thereafter. A summary of stock option activity for the years ended December 31, 2016 and 2015 was as follows: (options in millions) Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2014 32 $ 10.75 Granted 11 15.53 Exercised (1 ) 9.86 Canceled / Forfeited (1 ) 11.25 Outstanding as of December 31, 2015 41 $ 11.94 7 years $ 166 Granted 2 12.62 Exercised (2 ) 9.86 Canceled / Forfeited (2 ) 15.39 Outstanding as of December 31, 2016 (a) 39 $ 12.00 6 years $ 98 Options exercisable as of December 31, 2016 (a) 22 $ 10.78 5 years $ 76 (a) Includes 2 million of outstanding options subject to the market conditions described above. There are no exercisable options subject to these market conditions. The total intrinsic value related to stock options exercised for the years ended December 31, 2016 , 2015 , and 2014 was $6 million , $4 million , and $2 million , respectively. Restricted Stock Awards and Restricted Stock Units Restricted stock awards and units were granted during 2016 , 2015 , and 2014 . Grants were made as incentive awards. As of December 31, 2016 , there was approximately $210 million of total unrecognized compensation expense related to restricted stock be recognized over the respective service period of approximately one year . During 2016 , 2015 , and 2014 , the Company did not pay any significant cash amounts to repurchase stock awards from employees that terminated employment with the Company. A summary of restricted stock award and restricted stock unit activity for the years ended December 31, 2016 and 2015 is as follows: (awards/units in millions) Awards/Units Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2014 15 $ 11.98 Granted 19 14.96 Vested (1 ) 15.04 Canceled / Forfeited (1 ) 14.02 Non-vested December 31, 2015 32 $ 14.30 Granted 18 12.49 Vested (10 ) 13.91 Canceled / Forfeited (6 ) 13.74 Non-vested as of December 31, 2016 (a) 34 $ 13.59 (a) Includes 1 million of shares subject to the market conditions described above. The total fair value of shares vested (measured as of the date of vesting) during the twelve months ended December 31, 2016 , 2015 , and 2014 was $137 million , $11 million , and $15 million , respectively. |
Stockholders' Equity and Redeem
Stockholders' Equity and Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity and Redeemable Noncontrolling Interest | Stockholders' Equity and Redeemable Noncontrolling Interest Dividends The Company’s senior secured revolving credit facility, senior secured term loan facility, and the indentures governing the senior secured notes, senior unsecured notes, and senior subordinated notes limit the Company's ability to pay dividends. The restrictions are subject to numerous qualifications and exceptions, including an exception that allows the Company to pay a dividend to repurchase, under certain circumstances, the equity of the Company's former parent, FDH, held by employees, officers and directors that were obtained in connection with the stock compensation plan. Prior to the Company filing its prospectus with the Securities and Exchange Commission and the merger with FDH, the Company paid cash dividends to FDH totaling $4 million during 2015 and $686 million during 2014 . The Company has not paid any cash dividends since the IPO. Other Comprehensive Income The income tax effects allocated to and the cumulative balance of each component of OCI are as follows: (in millions) Beginning Balance Pretax Gain (Loss) Amount Tax (Benefit) Expense Net-of- Tax Amount Ending Balance As of December 31, 2016 Foreign currency translation adjustment (a) $ (1,081 ) $ (149 ) $ (1 ) $ (148 ) $ (1,229 ) Pension liability adjustments (b) (136 ) 34 (4 ) 38 (98 ) Derivative instruments — 3 — 3 3 Marketable securities (2 ) — — — (2 ) $ (1,219 ) $ (112 ) $ (5 ) $ (107 ) $ (1,326 ) As of December 31, 2015 Foreign currency translation adjustment (a) $ (801 ) $ (261 ) $ 19 $ (280 ) $ (1,081 ) Pension liability adjustments (123 ) (19 ) (6 ) (13 ) (136 ) Marketable securities (5 ) 3 — 3 (2 ) $ (929 ) $ (277 ) $ 13 $ (290 ) $ (1,219 ) As of December 31, 2014 Foreign currency translation adjustment (a) $ (504 ) $ (298 ) $ (1 ) $ (297 ) $ (801 ) Pension liability adjustments (87 ) (35 ) 1 (36 ) (123 ) Marketable securities 2 (7 ) — (7 ) (5 ) $ (589 ) $ (340 ) $ — $ (340 ) $ (929 ) (a) Net-of-tax Foreign currency translation adjustment for the years ended December 31, 2016 , 2015 , and 2014 is different than the amount presented on the consolidated statements of comprehensive income (loss) by $(5) million , $(10) million , and $(11) million , respectively, due to the foreign currency translation adjustment related to noncontrolling interests not included above. (b) 2016 pretax benefit includes an approximate $10 million reclassification out of OCI to "Other operating expenses" in the consolidated statements of operations related to the lump sum cash payout of certain U.S. based pension liabilities. Redeemable Noncontrolling Interest The following table presents a summary of the redeemable noncontrolling interest activity: (in millions) Redeemable Noncontrolling Interest Balance as of January 1, 2014 $ 69 Distributions (35 ) Share of income 34 Adjustment to redemption value of redeemable noncontrolling interest 2 Balance as of December 31, 2014 70 Distributions (35 ) Share of income 34 Adjustment to redemption value of redeemable noncontrolling interest 8 Balance as of December 31, 2015 77 Distributions (33 ) Share of income 33 Adjustment to redemption value of redeemable noncontrolling interest (4 ) Balance as of December 31, 2016 $ 73 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Upon the HoldCo Merger, all outstanding shares of FDH's Class A Common Stock, Class B Common Stock, and Series A Voting Participating Convertible Preferred Stock (Series A Preferred Stock) automatically converted to identical shares of the Company's Class B Common Stock. Other than voting rights, this common stock has the same rights as the Class A Common Stock and therefore both are treated as the same class of stock for purposes of the net income (loss) per share calculation. Basic net income (loss) per share is calculated by dividing net income (loss) attributable to FDC by the weighted-average shares outstanding during the period, without consideration for any potential dilutive shares. Diluted net income (loss) per share has been computed to give effect to the impact, if any, of shares issuable upon the assumed exercise of the Company’s common stock equivalents, which consist of outstanding stock options and unvested restricted stock. The dilutive effect of potentially dilutive securities is reflected in net income (loss) per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of the Company's basic and diluted net loss per share: Year ended December 31, (in millions, except share amounts) 2016 2015 2014 Numerator: Net income (loss) used in computing net income (loss) per share, basic and diluted $ 420 $ (1,481 ) $ (458 ) Denominator: Shares used in computing net income (loss) per share, basic (a) 901,671,872 192,263,793 1,000 Effect of dilutive securities 19,329,991 — — Total dilutive securities 921,001,863 192,263,793 1,000 Basic net income (loss) per share $ 0.47 $ (7.70 ) $ (458,000 ) Diluted net income (loss) per share (b) 0.46 (7.70 ) (458,000 ) Anti-dilutive shares excluded from diluted net income (loss) per share 20,967,794 26,752,706 — (a) 2015 weighted-average shares calculated using 1,000 shares outstanding prior to the HoldCo Merger and the filing of the Company's prospectus in October 2015 and the Class A and Class B common stock outstanding after these transactions. 2014 weighted-average shares calculated using 1,000 shares outstanding prior to the HoldCo Merger and the filing of the Company's prospectus in October 2015. (b) Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by a company’s chief operating decision maker (CODM), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company's CODM is its Chief Executive Officer. The Company is organized into three segments: Global Business Solutions, Global Financial Solutions, and Network & Security Solutions. The business segment measurements provided to and evaluated by the CODM are computed in accordance with the principles listed below: • The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. • Intersegment revenues are eliminated in the segment that sells directly to the end market. • Segment revenue excludes reimbursable debit network fees, postage, and other revenue. • Segment EBITDA includes equity earnings in affiliates and excludes Depreciation and amortization expense, Net income attributable to noncontrolling interests, Other operating expenses, and Other income (expense). Additionally, segment EBITDA is adjusted for items similar to certain of those used in calculating the Company's compliance with debt covenants. The additional items that are adjusted to determine segment EBITDA are: • stock-based compensation and related expense is excluded; and • Kohlberg Kravis Roberts & Co. (KKR) related items including annual sponsor and other fees for management, consulting, financial, contract termination, and other advisory services are excluded. Upon the Company's public offering on October 15, 2015, the Company is no longer required to pay management fees to KKR. • For significant affiliates, segment revenue and segment EBITDA are reflected based on the Company's proportionate share of the results of the Company's investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. For other affiliates, the Company includes equity earnings in affiliates, excluding amortization expense, in segment revenue and segment EBITDA. In addition, the Company's Global Business Solutions segment measures reflect revenue-based commission payments to Independent Sales Organizations (ISOs) and sales channels, which are treated as an expense in the consolidated statements of operations, as contra revenue. • Corporate operations include corporate-wide governance functions such as the Company's executive management team, tax, treasury, internal audit, corporate strategy, and certain accounting, human resources and legal costs related to supporting the corporate function. Costs incurred by Corporate that are attributable to a segment are allocated to the respective segment. The following tables present the Company’s operating segment results for the years ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, 2016 (in millions) Global Business Solutions Global Financial Network & Security Solutions Corporate Totals Revenues: Transaction and processing service fees $ 3,201 $ 1,372 $ 1,309 $ — $ 5,882 Product sales and other 826 221 176 — 1,223 Equity earnings in affiliates 36 — — — 36 Total segment revenues $ 4,063 $ 1,593 $ 1,485 $ — $ 7,141 Depreciation and amortization $ 435 $ 357 $ 115 $ 14 $ 921 Segment EBITDA 1,725 646 666 (145 ) 2,892 Other operating expenses and other income (expense) excluding divestitures 28 (4 ) (7 ) (28 ) (11 ) Equity earnings in affiliates 260 — — — 260 Year ended December 31, 2015 (in millions) Global Business Solutions Global Financial Network & Security Solutions Corporate Totals Revenues: Transaction and processing service fees $ 3,209 $ 1,323 $ 1,322 $ — $ 5,854 Product sales and other 845 172 142 — 1,159 Equity earnings in affiliates 35 — — — 35 Total segment revenues $ 4,089 $ 1,495 $ 1,464 $ — $ 7,048 Depreciation and amortization $ 490 $ 393 $ 91 $ 25 $ 999 Segment EBITDA 1,681 550 639 (140 ) 2,730 Other operating expenses and other income (expense) excluding divestitures 26 (16 ) (3 ) (36 ) (29 ) Equity earnings in affiliates 239 — — — 239 Year ended December 31, 2014 (in millions) Global Business Solutions Global Financial Network & Security Solutions Corporate Totals Revenues: Transaction and processing service fees $ 3,250 $ 1,313 $ 1,277 $ — $ 5,840 Product sales and other 766 176 92 — 1,034 Equity earnings in affiliates 30 — — — 30 Total segment revenues $ 4,046 $ 1,489 $ 1,369 $ — $ 6,904 Depreciation and amortization $ 518 $ 401 $ 90 $ 23 $ 1,032 Segment EBITDA 1,687 529 608 (161 ) 2,663 Other operating expenses and other income (expense) excluding divestitures 38 (3 ) 96 15 146 Equity earnings in affiliates 216 — 4 — 220 The following table presents a reconciliation of reportable segment amounts to the Company’s consolidated balances for the years ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, (in millions) 2016 2015 2014 Consolidated revenues $ 11,584 $ 11,451 $ 11,152 Adjustments: Non wholly owned entities (a) (80 ) (74 ) (57 ) ISOs commission expense (b) (618 ) (642 ) (587 ) Reimbursable debit network fees, postage, and other (3,745 ) (3,687 ) (3,604 ) Total segment revenues $ 7,141 $ 7,048 $ 6,904 Net income (loss) attributable to First Data Corporation $ 420 $ (1,481 ) $ (458 ) Adjustments: Non wholly owned entities (a) (30 ) (26 ) (24 ) Depreciation and amortization 949 1,022 1,056 Interest expense, net 1,068 1,537 1,728 Loss on debt extinguishment 70 1,068 274 Other items (c) 71 180 (45 ) Income tax expense 81 101 82 Stock-based compensation 263 329 50 Total segment EBITDA $ 2,892 $ 2,730 $ 2,663 (a) Net adjustment to reflect the Company's proportionate share of the results of the Company's investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. Segment revenue for the Company's significant affiliates is reflected based on the Company's proportionate share of the results of the Company's investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. For other affiliates, the Company includes equity earnings in affiliates, excluding amortization expense, in segment revenue. (b) Reported within "Selling, general, and administrative expense" in the consolidated statements of operations. (c) Includes restructuring, certain retention bonuses, non-normal course litigation and regulatory settlements, asset impairments, debt issuance expenses, KKR related items and “Other income" as presented in the consolidated statements of operations, which includes divestitures, derivative gains (losses), non-operating foreign currency gains (losses), and the gain on Visa Europe share sale. KKR related items represent KKR annual sponsorship fees for management, consulting, financial and other advisory services. Upon completing the IPO in October 2015, the Company is no longer obligated to pay KKR annual sponsorship fees. Total segment assets, capital expenditures, and investment in unconsolidated affiliates are not disclosed, as the Company's CODM does not utilize such information when allocating resources to the segment or when assessing the segments' performance. The following tables presents a reconciliation of reportable segment depreciation and amortization amounts to the Company’s consolidated balances in the consolidated statements of cash flows for the years ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, (in millions) 2016 2015 2014 Segment depreciation and amortization $ 921 $ 999 $ 1,032 Adjustments for non wholly owned entities 75 83 86 Amortization of initial payments for new contracts (a) 65 51 45 Total consolidated depreciation and amortization per consolidated statements of cash flows 1,061 1,133 1,163 Amortization of equity method investment (b) (47 ) (60 ) (62 ) Amortization of initial payments for new contracts (a) (65 ) (51 ) (45 ) Total consolidated depreciation and amortization per consolidated statements of operations $ 949 $ 1,022 $ 1,056 (a) Included in "Transaction and processing service fees" as contra-revenue in the Company's consolidated statements of operations. (b) Included in "Equity earnings in affiliates" in the Company's consolidated statements of operations. The following tables presents revenues and long-lived assets by principal geographic area for the years ended December 31, 2016 , 2015 , and 2014 : (in millions) United States International Total Revenues: 2016 $ 9,890 $ 1,694 $ 11,584 2015 9,795 1,656 11,451 2014 9,428 1,724 11,152 Long-Lived Assets: 2016 $ 18,846 $ 2,272 $ 21,118 2015 19,400 2,316 21,716 2014 19,708 2,588 22,296 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of pretax income and provision for income taxes for 2016, 2015 and 2014, consisted of the following: Year ended December 31, (in millions) 2016 2015 2014 Components of pretax income (loss): Domestic $ 492 $ (1,332 ) $ (378 ) Foreign 249 165 195 $ 741 $ (1,167 ) $ (183 ) Provision for income taxes: Federal $ 20 $ 7 $ 16 State and local 20 14 22 Foreign 41 80 44 Income tax expense $ 81 $ 101 $ 82 Effective income tax rate 11 % (9 )% (45 )% The Company’s effective tax rates differ from statutory rates as follows: Year ended December 31, 2016 2015 2014 Federal statutory rate 35 % 35 % 35 % State income taxes, net of federal income tax benefit 1 3 (1 ) Nontaxable income from noncontrolling interests (11 ) 6 37 Impact of foreign operations (a) 13 — (9 ) Tax effects of foreign exchange gains/losses — (1 ) (6 ) Valuation allowances (35 ) (54 ) (103 ) Liability for unrecognized tax benefits — (2 ) 12 Prior year adjustments 3 4 (7 ) Nondeductible bad debts — — (3 ) Equity Compensation 5 — — Effective tax rate 11 % (9 )% (45 )% (a) The impact of foreign operations includes the effects of earnings and profits adjustments, foreign losses, and differences between foreign tax expense and foreign taxes eligible for the U.S. foreign tax credit. The Company’s income tax provisions (benefits) consisted of the following components: Year ended December 31, (in millions) 2016 2015 2014 Current: Federal $ 22 $ 5 $ — State and local 24 23 39 Foreign 73 80 61 119 108 100 Deferred: Federal (2 ) 2 17 State and local (4 ) (9 ) (18 ) Foreign (32 ) — (17 ) (38 ) (7 ) (18 ) $ 81 $ 101 $ 82 Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of the Company’s assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets are included in "Other long-term assets" and deferred tax liabilities are included in "Deferred tax liabilities" on the Company’s consolidated balance sheets. The following table outlines the principal components of deferred tax items: As of December 31, (in millions) 2016 2015 Deferred tax assets related to: Reserves and other accrued expenses $ — $ 90 Pension obligations — 6 Employee related liabilities 176 171 Deferred revenues 34 44 Net operating losses and tax credit carryforwards 3,122 3,116 U.S. foreign tax credits on undistributed earnings 252 330 Foreign exchange loss 33 32 Total deferred tax assets 3,617 3,789 Valuation allowance (2,520 ) (2,694 ) Realizable deferred tax assets 1,097 1,095 Deferred tax liabilities related to: Property, equipment, and intangibles (969 ) (1,019 ) Reserves and other accrued expenses (49 ) — Pension obligations (4 ) — Investment in affiliates and other (217 ) (306 ) U.S. tax on foreign undistributed earnings (252 ) (192 ) Total deferred tax liabilities (1,491 ) (1,517 ) Net deferred tax liabilities $ (394 ) $ (422 ) The Company’s deferred tax assets and liabilities included in the consolidated balance sheets was as follows: As of December 31, (in millions) 2016 2015 Deferred tax assets $ 15 $ 9 Deferred tax liabilities (409 ) (431 ) Net deferred tax liabilities $ (394 ) $ (422 ) As of December 31, 2016 and 2015 , the Company had recorded valuation allowances of $2.5 billion and $2.7 billion , respectively, against its net deferred tax assets. The decrease to the valuation allowance of $174 million in 2016 was primarily due to utilization of federal and state net operating losses in 2016. In determining the necessary amount of valuation allowance, the Company has considered a tax planning strategy related to its investments in affiliates. Implementation of this strategy would result in the immediate reversal of temporary differences associated with the excess of book basis over tax basis in the investments. This planning strategy would be implemented only in the event of anticipated expiration of significant net operating losses in the United States federal jurisdiction, which is not expected in the near term. The following table presents the amounts of federal, state, and foreign net operating loss carryforwards and foreign tax credit, general business credit, and minimum tax credit carryforwards: As of December 31, (in millions) 2016 Federal net operating loss carryforwards (a) $ 4,766 State net operating loss carryforwards (b) 5,893 Foreign net operating loss carryforwards (c) 3,079 Foreign tax credit carryforwards (d) 289 General business credit carryforwards (e) 12 Minimum tax credit carryforwards (f) 18 (a) If not utilized, these carryforwards will expire in years 2024 through 2036. (b) If not utilized, these carryforwards will expire in years 2017 through 2036. (c) Foreign net operating loss carryforwards of $66 million , if not utilized, will expire in years 2017 through 2036. The remaining foreign net operating loss carryforwards of $3.0 billion have an indefinite life. (d) If not utilized, these carryforwards will expire in years 2018 through 2026. (e) If not utilized, these carryforwards will expire in years 2027 through 2035. (f) These carryforwards have an indefinite life. The Company intends to indefinitely invest its net equity in its foreign operations, with the exception of any undistributed foreign earnings in those jurisdictions with positive earnings. As of December 31, 2016 , the cumulative amount of temporary differences related to investments in foreign subsidiaries was lower than the amount of undistributed earnings. As such, the Company provided for U.S. federal and state income taxes on the entire cumulative temporary difference and has no unrecognized deferred tax liability as of December 31, 2016 . A reconciliation of the unrecognized tax benefits was as follows: (in millions) Unrecognized Tax Benefits Balance as of January 1, 2014 $ 279 Increases for tax positions of prior years 3 Decreases for tax positions of prior years (29 ) Increases for tax positions related to the current period 1 Decreases for cash settlements with taxing authorities (13 ) Decreases due to the lapse of the applicable statute of limitations (5 ) Balance as of December 31, 2014 236 Increases for tax positions of prior years 25 Decreases for tax positions of prior years (4 ) Increases for tax positions related to the current period 1 Decreases for cash settlements with taxing authorities (3 ) Decreases due to the lapse of the applicable statute of limitations (6 ) Balance as of December 31, 2015 249 Increases for tax positions of prior years 2 Decreases for tax positions of prior years (1 ) Increases for tax positions related to the current period — Decreases for cash settlements with taxing authorities (1 ) Decreases due to the lapse of the applicable statute of limitations (9 ) Balance as of December 31, 2016 $ 240 Most of the unrecognized tax benefits are included in “Other long-term liabilities” on the consolidated balance sheets, net of the federal benefit on state income taxes (approximately $21 million as of December 31, 2016 ). However, those unrecognized tax benefits that affect the federal consolidated tax years ending December 31, 2008 through December 31, 2016 are included in “Deferred tax liabilities” on the consolidated balance sheets, as these items reduce the Company’s net operating loss and credit carryforwards from those periods. The unrecognized tax benefits as of December 31, 2016 , 2015 , and 2014 included approximately $133 million , $136 million , and $126 million , respectively, of tax positions that, if recognized, would affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in “Income tax expense” in the consolidated statements of operations. Cumulative accrued interest and penalties (net of related tax benefits) are not included in the ending balances of unrecognized tax benefits. Cumulative accrued interest and penalties are included in “Other long-term liabilities” on the consolidated balance sheets while the related tax benefits are included in “Deferred tax liabilities” on the consolidated balance sheets. The following table presents the approximate amounts associated with accrued interest expense and the cumulative accrued interest and penalties: Year ended December 31, (in millions) 2016 2015 2014 Current year accrued interest expense (net of related tax benefits) $ 5 $ 7 $ 1 Cumulative accrued interest and penalties (net of related tax benefits) 48 45 39 As of December 31, 2016 , the Company anticipates it is reasonably possible that its liability for unrecognized tax benefits may decrease by approximately $123 million within the next 12 months as a result of the possible closure of federal tax audits, potential settlements with certain states and foreign countries, and the lapse of the statute of limitations in various state and foreign jurisdictions. The Company or one or more of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of December 31, 2016 , the Company was no longer subject to income tax examination by the U.S. federal jurisdiction for years before 2005. State and local examinations are substantially complete through 2006. Foreign jurisdictions generally remain subject to examination by their respective authorities from 2007 forward, none of which are considered major jurisdictions. Under the Tax Allocation Agreement executed at the time of the spin-off of The Western Union Company (Western Union) on September 29, 2006, Western Union is responsible for and must indemnify the Company against all taxes, interest, and penalties that relate to Western Union for periods prior to the spin-off date. If Western Union were to agree to or be finally determined to owe any amounts for such periods but were to default in its indemnification obligation under the Tax Allocation Agreement, the Company, as parent of the tax filing group during such periods, generally would be required to pay the amounts to the relevant tax authority, resulting in a potentially material adverse effect on the Company’s financial position and results of operations. As of December 31, 2016 , the Company had approximately $123 million of income taxes payable, including approximately $3 million of uncertain income tax liabilities, recorded related to Western Union for periods prior to the spin-off date. The Company has recorded a corresponding account receivable of equal amount from Western Union, which is included as a long-term account receivable in “Other long-term assets” on the Company’s consolidated balance sheets, reflecting the indemnification obligation. The uncertain income tax liabilities and corresponding receivable are based on information provided by Western Union regarding its tax contingency reserves for periods prior to the spin-off date. There is no assurance that a Western Union-related issue raised by the IRS or other tax authority will be finally resolved at a cost not in excess of the amount reserved and reflected in the Company’s uncertain income tax liabilities and corresponding receivable from Western Union. The Western Union contingent liability is in addition to the Company’s liability for unrecognized tax benefits discussed above. The IRS completed its examination of the U.S. federal consolidated income tax returns of the Company for 2005 through 2007 and issued a 30-Day letter in October 2012. The 30-Day letter claims that the Company and its subsidiaries, which included Western Union during some of the years at issue, owe additional taxes with respect to a variety of adjustments. The Company and Western Union agree with several of the adjustments in the 30-Day letter, such adjustments representing tax due of approximately $40 million . This undisputed tax and associated interest due (pretax) of approximately $23 million through December 31, 2016 , have been fully reserved. The undisputed tax for which Western Union would be required to indemnify the Company is greater than the total tax due, such that settlement of the undisputed tax would result in a net refund to the Company. As to the adjustments that are disputed, such issues represent total taxes allegedly due of approximately $59 million , of which $40 million relates to the Company and $19 million relates to Western Union. The Company estimates that total interest due (pretax) on the disputed amounts is approximately $26 million through December 31, 2016 , of which $15 million relates to the Company and $11 million relates to Western Union. As to the disputed issues, the Company and Western Union are contesting the asserted deficiencies with the Appeals Office of the IRS, with anticipated resolution during the next twelve months. The Company believes that it has adequately reserved for the disputed issues in its liability for unrecognized tax benefits described above and that final resolution of those issues will not have a material adverse effect on its financial position or results of operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Merchant Alliances A substantial portion of the Company’s business within the Global Business Solutions segment is conducted through merchant alliances. Merchant alliances are alliances between the Company and financial institutions. If the Company has majority ownership and management control over an alliance, then the alliance’s financial statements are consolidated with those of the Company and the related processing fees are treated as an intercompany transaction and eliminated upon consolidation. If the Company does not have a controlling ownership interest in an alliance, it uses the equity method of accounting to account for its investment in the alliance. As a result, the Company’s consolidated revenues include processing fees charged to alliances accounted for under the equity method. No directors or officers of the Company have ownership interests in any of the alliances. The formation of each of these alliances generally involves the Company and the bank contributing contractual merchant relationships to the alliance and a cash payment from one owner to the other to achieve the desired ownership percentage for each. The Company and the bank enter into a long-term processing service agreement as part of the negotiation process. This agreement governs the Company’s provision of transaction processing services to the alliance. As of December 31, 2016 and 2015, the Company had $27 million and $50 million , respectively, of amounts due from unconsolidated merchant alliances included within "Accounts receivable, net" in the Company's consolidated balance sheets. As of December 31, 2016 and 2015, the Company had $7 million and $5 million , respectively, of amounts due to unconsolidated merchant alliances included within "Accounts payable and accrued liabilities" in the Company's consolidated balance sheets. Management Agreement In connection with the 2007 acquisition of the Company by affiliates of KKR, the Company entered into a management agreement with KKR and one of its affiliates (Management Agreement) pursuant to which KKR provided advisory services to the Company and received fees and reimbursements of related out-of-pocket expenses. The Management Agreement was terminated upon the consummation of the Company's initial public offering in October 2015 and FDC is no longer required to pay management fees to KKR. In the years ended December 31, 2015 , and 2014 , the Company, inclusive of the termination fee paid in October 2015, paid $98 million , and $20 million , respectively, of management fees to KKR. Relationship with KKR Capital Markets For the years ended December 31, 2016 , 2015 , and 2014 , KKR Capital Markets LLC, an affiliate of KKR, acted as an arranger and bookrunner for various financing transactions under the existing credit agreements, and as an initial purchaser of certain existing notes issued by the Company, and received underwriter and transaction fees totaling $17 million , $25 million , and $4 million , respectively. For the year ended December 31, 2015 KKR Capital Markets LLC also acted as a placement agent in the Company's initial public offering for placement of the Company's Class A common stock and in the private placement of shares of Holdings' Class B common stock. For the year ended December 31, 2015 , the Company paid $19 million related to such services. |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Other Operating Expenses | Other Operating Expenses The following table details the components of “Other operating expenses” in the consolidated statements of operations: Year ended December 31, (in millions) 2016 2015 2014 Restructuring, net $ 49 $ 53 $ 13 Pension settlement loss 10 — — Other 2 — — Other operating expenses $ 61 $ 53 $ 13 Restructuring During the years ended December 31, 2016 , 2015 , and 2014 , the Company recorded restructuring charges in connection with management’s alignment of the business with strategic objectives, cost savings initiatives and the departure of certain executive officers. In connection with the Company's announced cost management initiative, the Company incurred $103 million of cumulative restructuring expense through December 31, 2016. 2016 includes a net loss of $13 million related to the sale of two facilities. The Company's cost management initiative is substantially complete as of December 31, 2016. A summary of net pretax benefits (charges), incurred by segment, for each period is as follows: Year ended December 31, (in millions) 2016 2015 2014 Global Business Solutions $ (9 ) $ (20 ) $ — Global Financial Solutions (10 ) (11 ) 1 Network & Security Solutions (3 ) (3 ) (2 ) Corporate (27 ) (19 ) (12 ) Restructuring, net $ (49 ) $ (53 ) $ (13 ) The following table summarizes the Company’s utilization of restructuring accruals for the years ended December 31, 2015 and 2016 : (in millions) Employee Severance Other Remaining accrual as of January 1, 2015 $ 12 $ 1 Restructuring, net 46 7 Cash payments and other (29 ) (7 ) Remaining accrual as of December 31, 2015 29 1 Restructuring, net 33 16 Loss on sale of property and equipment, net — (13 ) Cash payments and other (53 ) (4 ) Remaining accrual as of December 31, 2016 $ 9 $ — Pension Settlement Loss For the year ended December 31, 2016, the Company incurred a $10 million loss related to the settlement of certain U.S.-based pension fund obligations. |
Settlement Assets and Obligatio
Settlement Assets and Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Settlement Assets and Obligations | |
Settlement Assets and Obligations | Settlement Assets and Obligations Settlement assets and obligations result from the Company’s processing services and associated settlement activities, including settlement of payment transactions. Settlement assets are generated principally from merchant services transactions. Certain merchant settlement assets that relate to settlement obligations accrued by the Company are held by partner banks to which the Company does not have legal ownership but has the right to use to satisfy the related settlement obligation. The Company records corresponding settlement obligations for amounts payable to merchants and for payment instruments not yet presented for settlement. The principal components of the Company’s settlement assets and obligations were as follows: As of December 31, (in millions) 2016 2015 Settlement assets: Cash and cash equivalents $ 1,620 $ 1,426 Investment securities — 1 Due from card associations, bank partners, and merchants 13,175 6,723 Total settlement assets $ 14,795 $ 8,150 Settlement obligations: Payment instruments outstanding $ 12 $ 34 Card settlements due to merchants 14,783 8,116 Total settlement obligations $ 14,795 $ 8,150 The changes in settlement assets and obligations are presented on a net basis within operating activities in the consolidated statements of cash flows. However, because the changes in the settlement assets balance exactly offset changes in settlement obligations, the activity nets to zero . |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions 2016 Dispositions On September 30, 2016, the Company completed the sale of its Australian ATM business, which was reported as part of the Company's Global Business Solutions segment. Associated with the transaction, the Company recognized a $34 million loss on the sale, included within "Other income" in the consolidated statement of operations. The loss is comprised of investments of $72 million reduced by cash proceeds of $38 million . The cash proceeds are reflected within "Proceeds from dispositions" within the consolidated statement of cash flows. 2015 Acquisitions On June 9, 2015, the Company acquired Transaction Wireless, Inc. (TWI) a provider of digital stored value products that offers gift card programs, loyalty incentives, and integrated marketing solutions for retailers, partners, and consumers. The purchase price was approximately $62 million in cash and $3 million in equity. The acquisition is reported in the Company's Network & Security Solutions segment. In addition to TWI, the Company also completed an acquisition of a webstore builder as well as an acquisition of a wholesale independent sales organization, both of which are reported in the Company's Global Business Solutions segment. 2014 Acquisitions In August 2014, the Company acquired Gyft, Inc., a leading digital platform that enables consumers to buy, send, manage, and redeem gift cards using mobile devices. The acquisition is reported as part of the Network & Security Solutions segment. 2014 Dispositions On May 29, 2014, the Company completed the sale of its 30% minority interest in a transportation payments business, Electronic Funds Source LLC (EFS), which was reported as part of the Network & Security Solutions segment. The Company recognized a gain on sale of $98 million recorded in "Other income" in the consolidated statements of operations, comprised of $264 million in cash reduced by its investment and associated deal costs of $166 million , and recorded an income tax provision of $7 million as a result of the final settlement of the sale. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into the following types of derivatives: • Floating to fixed interest rate swaps: The Company used interest rate swaps to mitigate its exposure to interest rate fluctuations on interest payments related to variable rate debt. The Company is no longer invested in interest rate swaps. The Company's interest rate contracts were used in a non-qualifying hedging relationship. • Floating to fixed interest rate collar contracts: The Company uses interest rate collar contracts to mitigate its exposure to interest rate fluctuations on interest payments related to variable rate debt. No payments or receipts are exchanged on interest rate collar contracts unless interest rates rise or fall to exceed a predetermined ceiling or floor rate. The Company uses these contracts in a qualifying hedging relationship. • Foreign exchange contracts: The Company uses cross-currency swaps to protect the net investment in certain foreign subsidiaries and/or affiliates with respect to changes in foreign currency exchange rates. The Company uses these contracts in both qualifying and non-qualifying hedging relationships. The Company held the following derivative instruments as of the dates indicated: As of December 31, 2016 2015 (in millions) Notional Currency Notional Value Assets (a) Liabilities (a) Notional Currency Notional Value Assets (a) Liabilities (a) Derivatives designated as hedges of net investments in foreign operations: Foreign exchange contracts (b) AUD 211 $ 57 $ — AUD 260 $ 65 $ — Foreign exchange contracts (c) EUR — — — EUR 200 51 — Foreign exchange contracts (d) GBP 300 78 — GBP 250 39 — Foreign exchange contracts (e) CAD 130 9 — CAD 110 24 — 144 — 179 — Derivatives designated as cash flow hedges: Interest rate collar contracts (f) USD 3,000 3 — USD — — — Derivatives not designated as hedging instruments: Interest rate contracts (g) USD — — — USD 5,000 — (56 ) $ 147 $ — $ 179 $ (56 ) (a) Of the balances included in the table above, in aggregate, $147 million of assets as of December 31, 2016 and $179 million of assets and $51 million of liabilities, net $128 million , as of December 31, 2015 are subject to master netting agreements to the extent that the swaps are with the same counterparty. The terms of those agreements require that the Company net settle the outstanding positions at the option of the counterparty upon certain events of default. (b) In connection with the divestiture of the Company's Australian ATM business, the Company settled notional value 49 million AUD in October 2016 at a net settlement value of $8 million . Refer to note 16 "Supplemental Financial Information" for additional details on the divestiture of the Company's Australian ATM business. (c) Matured in January 2016 at a net settlement value of $49 million . (d) Notional value 100 million GBP matured in August 2016 at a net settlement value of $25 million . The Company entered into a new foreign exchange contract with a notional value of 150 million GBP. (e) Notional value 75 million CAD matured in August 2016 at a net settlement value of $14 million . The Company entered into a new foreign exchange contract with a notional value of 95 million CAD. (f) Subsequent to December 31, 2016, the Company entered into notional value 1.3 billion USD interest rate collar contracts. (g) Matured in September 2016. The maximum length of time over which the Company is hedging its currency exposure of net investments in foreign operations is through August 2019. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions related to the payment of variable interest on existing financial instruments is through September 2018. Fair Value Measurement The carrying amounts for the Company's derivative financial instruments are the estimated fair value of the financial instruments. The Company’s derivatives are not exchange listed and therefore the fair value is estimated under an income approach using Bloomberg analytics models that are based on readily observable market inputs. These models reflect the contractual terms of the derivatives, such as notional value and expiration date, as well as market-based observables including interest and foreign currency exchange rates, yield curves, and the credit quality of the counterparties. The models also incorporate the Company’s creditworthiness in order to appropriately reflect non-performance risk. Inputs to the derivative pricing models are generally observable and do not contain a high level of subjectivity and, accordingly, the Company’s derivatives were classified within Level 2 of the fair value hierarchy. While the Company believes its estimates result in a reasonable reflection of the fair value of these instruments, the estimated values may not be representative of actual values that could have been realized or that will be realized in the future. Effect of Derivative Instruments on the Consolidated Financial Statements Derivative gains and (losses) were as follows for the periods indicated: Year ended December 31, 2016 2015 2014 (in millions, pretax) Interest Rate Contracts Foreign Exchange Contracts Interest Rate Contracts Foreign Exchange Contracts Interest Rate Contracts Foreign Exchange Contracts Derivatives designated as hedging instruments: Gain recognized in "Foreign currency translation adjustment" in the consolidated statements of comprehensive income (loss) (effective portion) $ — $ 58 $ — $ 79 $ — $ 80 Gain recognized in "Derivative instruments" in the consolidated statements of comprehensive income (loss) (effective portion) (a) 3 — — — — — Derivatives not designated as hedging instruments: (Loss) gain recognized in "Other income" in the consolidated statements of operations $ (5 ) $ — $ (19 ) $ 2 $ (4 ) $ 4 (a) Interest rate collar contracts. Accumulated Derivative Gains and Losses The following table summarizes activity in other comprehensive income for the years ended December 31, 2016 , 2015 , and 2014 related to derivative instruments classified as cash flow hedges and net investment hedges held by the Company: Year ended December 31, (in millions, after tax) 2016 2015 2014 Accumulated gain (loss) included in other comprehensive income (loss) at beginning of the period $ 86 $ 37 $ (12 ) Increase in fair value of derivatives that qualify for hedge accounting, net of tax (a) (b) 38 49 49 Accumulated gain included in other comprehensive income at end of the period $ 124 $ 86 $ 37 (a) Gains are included in "Derivative instruments" and “Foreign currency translation adjustment” on the consolidated statements of comprehensive income (loss). (b) Net of $23 million , $30 million , and $31 million of tax for the years ended December 31, 2016 , 2015 , and 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company leases certain of its facilities and equipment under operating lease agreements, substantially all of which contain renewal options and escalation provisions. The Company incurred total rent expense of $79 million , $78 million , and $77 million for the years ended December 31, 2016, 2015 and 2014, respectively. Future minimum aggregate rental commitments as of December 31, 2016 under all noncancelable operating leases, net of sublease income are due in the following years: Year ended December 31, (in millions) Amount 2017 $ 56 2018 46 2019 41 2020 28 2021 26 Thereafter 96 Total $ 293 Sublease income is earned from leased space and leased equipment, which the Company concurrently subleases to third parties with comparable time periods. As of December 31, 2016 , sublease amounts totaled less than $5 million in the Company's obligations. In addition, the Company has certain guarantees embedded in leases and other agreements wherein the Company is required to relieve the counterparty in the event of changes in the tax code or rates. The Company believes the fair value of such guarantees is insignificant due to the likelihood and extent of the potential changes. Letters of Credit The Company has $41 million in outstanding letters of credit as of December 31, 2016 , all of which were issued under the Company’s senior secured revolving credit facility and expire prior to December 31, 2017 with a 1 year renewal option. The letters of credit are held in connection with lease arrangements, bankcard association agreements, and other security agreements. The Company expects to renew most of the letters of credit prior to expiration. Legal The Company is involved in various legal proceedings. Accruals have been made with respect to these matters, where appropriate, which are reflected in the Company’s consolidated financial statements. The Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company. The matters discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may result in liability material to the Company’s financial condition and/or results of operations. There are asserted claims against the Company where an unfavorable outcome is considered to be reasonably possible. These claims can generally be categorized in the following areas: (1) patent infringement which results from claims that the Company is using technology that has been patented by another party; (2) merchant customer matters often associated with alleged processing errors or disclosure issues and claims that one of the subsidiaries of the Company has violated a federal or state requirement regarding credit reporting or collection in connection with its check verification guarantee, and collection activities; and (3) other matters which may include issues such as employment. The Company's estimates of the possible ranges of losses in excess of any amounts accrued are $0 to $10 million for patent infringement, $0 to $40 million for merchant customer matters, and $0 to $30 million for other matters, resulting in a total estimated range of possible losses of $0 to $80 million for all of the matters described above. The estimated range of reasonably possible losses is based on information currently available and involves elements of judgment and significant uncertainties. As additional information becomes available and the resolution of the uncertainties becomes more apparent, it is possible that actual losses may exceed even the high end of the estimated range. Other In the normal course of business, the Company is subject to claims and litigation, including indemnification obligations to purchasers of former subsidiaries. Management of the Company believes that such matters will not have a material adverse effect on the Company’s results of operations, liquidity or financial condition. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plans The Company maintains defined contribution benefit plans covering virtually all of the Company’s U.S. employees and defined contribution pension plans for international employees primarily in the United Kingdom and Australia. The plans provide tax-deferred amounts for each participant, consisting of employee elective contributions, Company matching and discretionary Company contributions. Effective January 1, 2014, the Company suspended matching contributions for all U.S. participants. As a result, the U.S. Plan is no longer a safe harbor plan. The following table presents the aggregate amounts charged to expense in connection with these plans: Year ended December 31, (in millions) Amount 2016 $ 11 2015 12 2014 15 Defined Benefit Plans The Company has defined benefit pension plans which are frozen and covers certain full-time employees in the United Kingdom and the U.S. The Company also has separate plans covering certain employees located primarily in Germany, Greece, and Austria. The Company contributed cash in the amount of $19 million , $12 million , and $15 million to defined benefit plans for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The Company recognizes the funded status of its defined benefit pension plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the consolidated balance sheets, as follows: As of December 31, (in millions) 2016 2015 U.K. plan: Plan benefit obligations $ (713 ) $ (715 ) Fair value of plan assets 808 783 Net pension assets (a) 95 68 U.S. and other foreign plans: Plan benefit obligations (b) (222 ) (252 ) Fair value of plan assets 137 154 Net pension liabilities (c) (85 ) (98 ) Funded status of the plans $ 10 $ (30 ) (a) Pension assets are included in “Other long-term assets” of the consolidated balance sheets. (b) Reflects a $30 million reduction in plan benefit obligations resulting from the cash settlement of certain employee pension fund obligations, which resulted in a settlement loss of $10 million . (c) Pension liabilities are included in “Other long-term liabilities” of the consolidated balance sheets. The accumulated benefit obligation for all defined benefit pension plans was $934 million and $966 million as of December 31, 2016 and 2015 , respectively. As of December 31, 2016 , Plan assets are comprised of approximately 20% of Level 1 securities, 80% of Level 2 securities, and an immaterial amount of Level 3 securities which comprise approximately 1% of total plan assets. The Plan paid benefits in the amount of $39 million , $41 million , and $33 million to defined benefit plans for the periods ended December 31, 2016 , 2015 , and 2014 , respectively. The estimated future benefit payments, which reflect expected future service, are expected to be as follows: Year ended December 31, (in millions) Amount 2017 $ 35 2018 37 2019 39 2020 39 2021 40 2022-2026 217 The Company's post-retirement health care and other insurance benefits for retired employees are limited and immaterial. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Supplemental Consolidated Statements of Operations Information The following table details the components of “Other income” on the consolidated statements of operations: Year ended December 31, (in millions) 2016 2015 2014 Investment gains $ 35 $ — $ 100 Derivatives (5 ) (17 ) — Divestitures (34 ) 5 2 Non-operating foreign currency gains 19 41 59 Other miscellaneous income 2 — — Other income $ 17 $ 29 $ 161 Investment gains On June 21, 2016, Visa Inc. (Visa) acquired Visa Europe (VE), of which the Company was a member and shareholder through certain subsidiaries. On June 21, 2016, the Company received cash of €24.2 million ( $27 million equivalent at June 21, 2016) and Visa preferred stock which is convertible into Visa common shares. The Company will also receive a deferred payment three years after the closing date of the acquisition, valued at approximately €2.3 million ( $2.6 million equivalent at June 21, 2016). As of June 21, 2016, the Class A common stock equivalent of the preferred stock was approximately $19 million . However, the preferred shares have been assigned a value of zero based on transfer restrictions and Visa's ability to adjust the conversion ratio dependent on the outcome of existing and potential litigations in the Visa Europe territory over the next 12 years . The Company could receive additional proceeds as a number of First Data subsidiaries are working with certain members of Visa Europe who sponsor other of the Company's merchant acquiring businesses in Europe in respect of sale proceeds received by those members. The investments gains for the year ended December 31, 2014 primarily relate to the sale of the Company's 30% minority interest in Electronic Funds Source LLC (EFS) which resulted in a pretax gain of $98 million . Divestitures See note 12 "Acquisitions and Dispositions" of these consolidated financial statements for more information on the Company's significant divestitures. Supplemental Consolidated Balance Sheet Information As of December 31, (in millions) 2016 2015 Prepaid expenses and other current assets: Prepaid expenses $ 168 $ 139 Inventory 77 128 Other 115 114 Total Prepaid expenses and other current assets $ 360 $ 381 Property and equipment: Land $ 56 $ 79 Buildings 269 313 Leasehold improvements 89 79 Equipment and furniture 1,386 1,379 Equipment under capital lease 499 468 Property and equipment 2,299 2,318 Less: Accumulated depreciation (1,416 ) (1,367 ) Total Property and equipment, net of accumulated depreciation $ 883 $ 951 Accounts payable and accrued liabilities: Accounts payable $ 206 $ 238 Accrued interest expense 169 132 Other accrued expenses 685 637 Other 504 632 Total Accounts payable and accrued liabilities $ 1,564 $ 1,639 |
Investment in Affiliates
Investment in Affiliates | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Affiliates | Investment in Affiliates Segment results include the Company’s proportionate share of income from affiliates, which consist of unconsolidated investments accounted for under the equity method of accounting. The most significant of these affiliates are related to the Company’s merchant bank alliance program. A merchant alliance, as it pertains to investments accounted for under the equity method, is an agreement between the Company and a financial institution that combines the processing capabilities and management expertise of the Company with the visibility and distribution channel of the bank. The alliance acquires credit and debit card transactions from merchants. The Company provides processing and other services to the alliance and charges fees to the alliance primarily based on contractual pricing. These fees have been separately identified on the face of the consolidated statements of operations. As of December 31, 2016 , there were ten affiliates accounted for under the equity method of accounting, comprised of five merchant alliances and five strategic investments in companies in related markets. During the year, the Company sold one of its merchant alliance investments and added one new merchant alliance and one new strategic investment. The Wells Fargo alliance met the Significant Subsidiary test provided in Regulations S-X Rule 1-02 (w) in that the Company's equity earnings of this alliance exceeded 20% of the Company's consolidated income from continuing operations before income taxes for the year ended December 31, 2016. A summary of financial information for the merchant alliances and other affiliates accounted for under the equity method of accounting is presented below. As of December 31, (in millions) 2016 2015 Total current assets $ 4,070 $ 3,002 Total long-term assets 84 55 Total assets $ 4,154 $ 3,057 Total current liabilities $ 3,994 $ 2,925 Total long-term liabilities 9 16 Total liabilities $ 4,003 $ 2,941 The primary components of assets and liabilities are settlement-related accounts similar to those described in note 11 "Settlement Assets and Obligations" of these consolidated financial statements. Year ended December 31, (in millions) 2016 2015 2014 Net operating revenues $ 1,434 $ 1,424 $ 1,357 Operating expenses 666 666 638 Operating income $ 768 $ 758 $ 719 Net income $ 749 $ 744 $ 696 FDC equity earnings 260 239 220 The formation of a merchant alliance accounted for under the equity method of accounting generally involves the Company and/or a financial institution contributing merchant contracts to the alliance and a cash payment from one owner to the other to achieve the desired ownership percentages. The asset amounts reflected above are owned by the alliances and other equity method investees and do not include any of such payments made by the Company. The amount by which the total of the Company’s investments in affiliates exceeded its proportionate share of the investees’ net assets was approximately $1.0 billion and $1.0 billion as of December 31, 2016 and 2015 , respectively. The non-goodwill portion of this amount is considered an identifiable intangible asset that is amortized. The estimated future amortization expense for these intangible assets as of December 31, 2016 is as follows: Year ended December 31, (in millions) Amount 2017 $ 43 2018 29 2019 4 Thereafter — These amounts assume that these alliances continue as they currently exist. Much of the difference between the Company's proportionate share of the investees’ net income and the Company's equity earnings noted above relates to this amortization. |
Selected Quarterly Financial Re
Selected Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Results (Unaudited) | Selected Quarterly Financial Results (Unaudited) The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2016 and 2015: 2016 (in millions, except per share amounts) First Second Third Fourth Revenues $ 2,777 $ 2,928 $ 2,936 $ 2,943 Expenses 2,539 2,498 2,482 2,463 Operating profit $ 238 $ 430 $ 454 $ 480 Net (loss) income $ (6 ) $ 215 $ 200 $ 251 Net (loss) income attributable to First Data Corporation (56 ) 152 132 192 Net (loss) income per share: Basic (0.06 ) 0.17 0.15 0.21 Diluted (0.06 ) 0.17 0.14 0.21 2015 (in millions, except per share amounts) First Second Third Fourth Revenues $ 2,695 $ 2,872 $ 2,920 $ 2,964 Expenses 2,435 2,463 2,518 2,865 Operating profit $ 260 $ 409 $ 402 $ 99 Net (loss) income $ (63 ) $ 33 $ (75 ) $ (1,163 ) Net loss attributable to First Data Corporation (112 ) (26 ) (126 ) (1,217 ) Net loss per share, basic and diluted (a) (112,000 ) (26,000 ) (126,000 ) (1.60 ) (a) As a result of the prospective treatment of the HoldCo Merger, as discussed within note 1 "Summary of Significant Accounting Policies", net loss per share was computed using 1,000 shares outstanding for the first, second, and third quarters of 2015 and 763 million for the fourth quarter of 2015. |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Guarantor Condensed Consolidating Financial Statements | Supplemental Guarantor Condensed Consolidating Financial Statements As described in note 2 "Borrowings" of these consolidated financial statements, FDC’s 7.0% senior notes are guaranteed by most of the existing and future, direct and indirect, wholly owned, domestic subsidiaries of FDC (Guarantors). The Guarantors guarantee the senior secured revolving credit facility, senior secured term loan facility, the 5.0% senior secured notes, the 5.375% senior secured notes and the 6.75% senior secured notes, which rank senior in right of payment to all existing and future unsecured and second lien indebtedness of FDC’s guarantor subsidiaries to the extent of the value of the collateral. The Guarantors guarantee the 5.750% senior second lien notes which rank senior in right of payment to all existing and future unsecured indebtedness of FDC’s guarantor subsidiaries to the extent of the value of the collateral. The 7.0% senior note guarantee is unsecured and ranks equally in right of payment with all existing and future senior indebtedness of the guarantor subsidiaries but senior in right of payment to all existing and future subordinated indebtedness of FDC’s guarantor subsidiaries. All of the above guarantees are full, unconditional, and joint and several and each of the Guarantors is 100% owned, directly or indirectly, by FDC. None of the other subsidiaries of FDC, either direct or indirect, guarantee the notes (Non-Guarantors). The Guarantors are subject to release under certain circumstances as described below. The credit agreement governing the guarantees of the senior secured revolving credit facility and senior secured term loan facility provide for a Guarantor to be automatically and unconditionally released and discharged from its guarantee obligations in certain circumstances, including under the following circumstances: • the Guarantor ceases to be a “restricted subsidiary” for purpose of the agreement because FDC no longer directly or indirectly owns 50% of the equity or, if a corporation, stock having voting power to elect a majority of the board of directors of the Guarantor; or • the Guarantor is designated as an “unrestricted subsidiary” for purposes of the agreement covenants; or • the Guarantor is no longer wholly owned by FDC subject to the value of all Guarantors released under this provision does not exceed (x) 10% of FDC’s Covenant EBITDA plus (y) the amount of investments permitted under the agreement in respect of non-guarantors. The indentures governing all of the other guarantees described above provide for a Guarantor to be automatically and unconditionally released and discharged from its guarantee obligations in certain circumstances, including upon the earliest to occur of: • the sale, exchange or transfer of the subsidiary’s capital stock or all or substantially all of its assets; • designation of the Guarantor as an “unrestricted subsidiary” for purposes of the indenture covenants; • release or discharge of the Guarantor’s guarantee of certain other indebtedness; or • legal defeasance or covenant defeasance of the indenture obligations when provision has been made for them to be fully satisfied. The following tables present the results of operations, financial position, and cash flows of FDC (FDC Parent Company), the Guarantor subsidiaries, the Non-Guarantor subsidiaries and consolidation adjustments for the years ended December 31, 2016 , 2015 , and 2014 and as of December 31, 2016 and 2015 to arrive at the information for FDC on a consolidated basis. Year ended December 31, 2016 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees $ — $ 3,924 $ 2,979 $ (303 ) $ 6,600 Product sales and other — 835 555 (151 ) 1,239 Total revenues (excluding reimbursable items) — 4,759 3,534 (454 ) 7,839 Reimbursable debit network fees, postage, and other — 2,527 1,218 — 3,745 Total revenues — 7,286 4,752 (454 ) 11,584 Expenses: Cost of services (exclusive of items shown below) — 1,597 1,447 (189 ) 2,855 Cost of products sold — 315 182 (160 ) 337 Selling, general, and administrative 318 1,077 745 (105 ) 2,035 Depreciation and amortization 5 571 373 — 949 Other operating expenses 7 41 13 — 61 Total expenses (excluding reimbursable items) 330 3,601 2,760 (454 ) 6,237 Reimbursable debit network fees, postage, and other — 2,527 1,218 — 3,745 Total expenses 330 6,128 3,978 (454 ) 9,982 Operating (loss) profit (330 ) 1,158 774 — 1,602 Interest expense, net (1,044 ) (18 ) (6 ) — (1,068 ) Loss on debt extinguishment (70 ) — — — (70 ) Interest income (expense) from intercompany notes 234 (219 ) (15 ) — — Equity earnings from consolidated subsidiaries 997 369 — (1,366 ) — Other income (expense) (1 ) (1 ) 19 — 17 (Loss) income before income taxes and equity earnings in affiliates (214 ) 1,289 772 (1,366 ) 481 Income tax (benefit) expense (635 ) 490 226 — 81 Equity earnings in affiliates (1 ) 231 30 — 260 Net (loss) income 420 1,030 576 (1,366 ) 660 Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest — — 64 176 240 Net (loss) income attributable to First Data Corporation $ 420 $ 1,030 $ 512 $ (1,542 ) $ 420 Comprehensive (loss) income $ 313 $ 1,055 $ 384 $ (1,204 ) $ 548 Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest — — 59 176 235 Comprehensive (loss) income attributable to First Data Corporation $ 313 $ 1,055 $ 325 $ (1,380 ) $ 313 Year ended December 31, 2015 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees $ — $ 3,906 $ 2,999 $ (308 ) $ 6,597 Product sales and other — 741 503 (77 ) 1,167 Total revenues (excluding reimbursable items) — 4,647 3,502 (385 ) 7,764 Reimbursable debit network fees, postage, and other — 2,521 1,166 — 3,687 Total revenues — 7,168 4,668 (385 ) 11,451 Expenses: Cost of services (exclusive of items shown below) — 1,576 1,473 (178 ) 2,871 Cost of products sold — 260 173 (77 ) 356 Selling, general, and administrative 476 1,143 803 (130 ) 2,292 Depreciation and amortization 12 620 390 — 1,022 Other operating expenses 8 24 21 — 53 Total expenses (excluding reimbursable items) 496 3,623 2,860 (385 ) 6,594 Reimbursable debit network fees, postage, and other — 2,521 1,166 — 3,687 Total expenses 496 6,144 4,026 (385 ) 10,281 Operating (loss) profit (496 ) 1,024 642 — 1,170 Interest expense, net (1,527 ) (10 ) — — (1,537 ) Loss on debt extinguishment (1,068 ) — — — (1,068 ) Interest income (expense) from intercompany notes 288 (289 ) 1 — — Equity earnings from consolidated subsidiaries 810 304 — (1,114 ) — Other income (expense) 55 3 (29 ) — 29 (Loss) income before income taxes and equity earnings in affiliates (1,938 ) 1,032 614 (1,114 ) (1,406 ) Income tax (benefit) expense (457 ) 422 136 — 101 Equity earnings in affiliates — 213 26 — 239 Net (loss) income (1,481 ) 823 504 (1,114 ) (1,268 ) Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest — — 66 147 213 Net (loss) income attributable to First Data Corporation $ (1,481 ) $ 823 $ 438 $ (1,261 ) $ (1,481 ) Comprehensive (loss) income $ (1,771 ) $ 760 $ 158 $ (715 ) $ (1,568 ) Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest — — 56 147 203 Comprehensive (loss) income attributable to First Data Corporation $ (1,771 ) $ 760 $ 102 $ (862 ) $ (1,771 ) Year ended December 31, 2014 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees $ — $ 3,712 $ 3,056 $ (258 ) $ 6,510 Product sales and other — 625 473 (60 ) 1,038 Total revenues (excluding reimbursable items) — 4,337 3,529 (318 ) 7,548 Reimbursable debit network fees, postage, and other — 2,510 1,094 — 3,604 Total revenues — 6,847 4,623 (318 ) 11,152 Expenses: Cost of services (exclusive of items shown below) — 1,403 1,523 (258 ) 2,668 Cost of products sold — 223 167 (60 ) 330 Selling, general, and administrative 131 1,125 787 — 2,043 Depreciation and amortization 10 607 439 — 1,056 Other operating expenses 10 3 — — 13 Total expenses (excluding reimbursable items) 151 3,361 2,916 (318 ) 6,110 Reimbursable debit network fees, postage, and other — 2,510 1,094 — 3,604 Total expenses 151 5,871 4,010 (318 ) 9,714 Operating (loss) profit (151 ) 976 613 — 1,438 Interest expense, net (1,724 ) (9 ) 5 — (1,728 ) Loss on debt extinguishment (274 ) — — — (274 ) Interest income (expense) from intercompany notes 316 (305 ) (11 ) — — Equity earnings from consolidated subsidiaries 833 294 — (1,127 ) — Other income (expense) 81 100 (20 ) — 161 (Loss) income before income taxes and equity earnings in affiliates (919 ) 1,056 587 (1,127 ) (403 ) Income tax (benefit) expense (461 ) 377 166 — 82 Equity earnings in affiliates — 202 18 — 220 Net (loss) income (458 ) 881 439 (1,127 ) (265 ) Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest — — 66 127 193 Net (loss) income attributable to First Data Corporation $ (458 ) $ 881 $ 373 $ (1,254 ) $ (458 ) Comprehensive (loss) income $ (798 ) $ 709 $ 187 $ (714 ) $ (616 ) Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest — — 55 127 182 Comprehensive (loss) income attributable to First Data Corporation $ (798 ) $ 709 $ 132 $ (841 ) $ (798 ) As of December 31, 2016 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 7 $ 378 $ — $ 385 Accounts receivable, net of allowance for doubtful accounts — 593 1,284 — 1,877 Settlement assets (a) — 7,457 7,338 — 14,795 Intercompany notes receivable 1 — — (1 ) — Other current assets 109 147 104 — 360 Total current assets 110 8,204 9,104 (1 ) 17,417 Property and equipment, net of accumulated depreciation 52 577 254 — 883 Goodwill — 9,145 7,551 — 16,696 Customer relationships, net of accumulated amortization — 1,026 713 — 1,739 Other intangibles, net of accumulated amortization 604 735 461 — 1,800 Investment in affiliates 6 860 122 — 988 Long-term intercompany receivables 3,866 12,001 2,822 (18,689 ) — Long-term intercompany notes receivable 3,481 197 9 (3,687 ) — Deferred tax assets 510 — — (510 ) — Other long-term assets 212 302 298 (43 ) 769 Investment in consolidated subsidiaries 26,286 5,981 — (32,267 ) — Total assets $ 35,127 $ 39,028 $ 21,334 $ (55,197 ) $ 40,292 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 227 $ 781 $ 555 $ 1 $ 1,564 Short-term and current portion of long-term borrowings — 110 249 (1 ) 358 Settlement obligations (a) — 7,457 7,338 — 14,795 Intercompany notes payable — — 1 (1 ) — Total current liabilities 227 8,348 8,143 (1 ) 16,717 Long-term borrowings 17,916 202 13 — 18,131 Deferred tax liabilities — 817 102 (510 ) 409 Long-term intercompany payables 15,097 2,769 823 (18,689 ) — Long-term intercompany notes payable 206 3,481 — (3,687 ) — Other long-term liabilities 461 245 168 (43 ) 831 Total liabilities 33,907 15,862 9,249 (22,930 ) 36,088 Redeemable equity interest — — 73 (73 ) — Redeemable noncontrolling interest — — — 73 73 First Data Corporation stockholders' equity (deficit) 1,220 23,166 6,175 (29,341 ) 1,220 Noncontrolling interests — — 94 2,817 2,911 Equity of consolidated alliance — — 5,743 (5,743 ) — Total equity 1,220 23,166 12,012 (32,267 ) 4,131 Total liabilities and equity $ 35,127 $ 39,028 $ 21,334 $ (55,197 ) $ 40,292 (a) The majority of the Guarantor settlement assets relate to FDC’s merchant acquiring business. FDC believes the settlement assets are not available to satisfy any claims other than those related to the settlement liabilities. As of December 31, 2015 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 105 $ 16 $ 308 $ — $ 429 Accounts receivable, net of allowance for doubtful accounts — 826 1,000 — 1,826 Settlement assets (a) — 4,273 3,877 — 8,150 Intercompany notes receivable 436 86 10 (532 ) — Other current assets 98 188 95 — 381 Total current assets 639 5,389 5,290 (532 ) 10,786 Property and equipment, net of accumulated depreciation 37 640 274 — 951 Goodwill — 9,139 7,707 — 16,846 Customer relationships, net of accumulated amortization — 1,235 901 — 2,136 Other intangibles, net of accumulated amortization 604 703 476 — 1,783 Investment in affiliates 5 900 143 — 1,048 Long-term intercompany receivables 8,523 15,192 6,321 (30,036 ) — Long-term intercompany notes receivable 3,415 236 9 (3,660 ) — Deferred tax assets 524 — — (524 ) — Other long-term assets 259 358 265 (70 ) 812 Investment in consolidated subsidiaries 25,692 5,588 — (31,280 ) — Total assets $ 39,698 $ 39,380 $ 21,386 $ (66,102 ) $ 34,362 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 283 $ 792 $ 564 $ — $ 1,639 Short-term and current portion of long-term borrowings 740 70 46 — 856 Settlement obligations (a) — 4,273 3,877 — 8,150 Intercompany notes payable 96 408 28 (532 ) — Total current liabilities 1,119 5,543 4,515 (532 ) 10,645 Long-term borrowings 18,616 119 2 — 18,737 Deferred tax liabilities — 875 80 (524 ) 431 Long-term intercompany payables 18,583 6,874 4,579 (30,036 ) — Long-term intercompany notes payable 245 3,353 62 (3,660 ) — Other long-term liabilities 467 288 127 (70 ) 812 Total liabilities 39,030 17,052 9,365 (34,822 ) 30,625 Redeemable equity interest — — 77 (77 ) — Redeemable noncontrolling interest — — — 77 77 First Data Corporation stockholders' (deficit) equity 668 22,328 5,933 (28,261 ) 668 Noncontrolling interests — — 88 2,904 2,992 Equity of consolidated alliance — — 5,923 (5,923 ) — Total equity 668 22,328 11,944 (31,280 ) 3,660 Total liabilities and equity $ 39,698 $ 39,380 $ 21,386 $ (66,102 ) $ 34,362 (a) The majority of the Guarantor settlement assets relate to FDC’s merchant acquiring business. FDC believes the settlement assets are not available to satisfy any claims other than those related to the settlement liabilities. Year ended December 31, 2016 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 420 $ 1,030 $ 576 $ (1,366 ) $ 660 Adjustments to reconcile to net cash (used in) provided by operating activities: Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) 5 645 411 — 1,061 Charges (gains) related to other operating expenses and other income (expense) 8 42 (6 ) — 44 Loss on debt extinguishment 70 — — — 70 Stock-based compensation expense 263 — — — 263 Other non-cash and non-operating items, net (961 ) (366 ) (4 ) 1,366 35 (Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in operating assets and liabilities (583 ) 432 129 — (22 ) Net cash (used in) provided by operating activities (778 ) 1,783 1,106 — 2,111 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment (2 ) (70 ) (160 ) — (232 ) Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs — (185 ) (60 ) — (245 ) Acquisitions, net of cash acquired (6 ) — — — (6 ) Proceeds from dispositions — — 38 — 38 Proceeds from sale of property and equipment 38 — — — 38 Other investing activities, net 206 281 30 (497 ) 20 Net cash provided by (used in) investing activities 236 26 (152 ) (497 ) (387 ) CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net — — 205 — 205 Proceeds from issuance of long-term debt 3,533 — — — 3,533 Payment of call premiums and debt issuance cost (53 ) — — — (53 ) Principal payments on long-term debt (4,986 ) (80 ) (7 ) — (5,073 ) Payment of taxes related to net settlement of equity awards (61 ) — — — (61 ) Proceeds from issuance of common stock 23 — — — 23 Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest — — (52 ) (264 ) (316 ) Distributions paid to equity holders — — (541 ) 541 — Other financing activities, net — 8 (220 ) 220 8 Intercompany 1,981 (1,748 ) (233 ) — — Net cash provided by (used in) financing activities 437 (1,820 ) (848 ) 497 (1,734 ) Effect of exchange rate changes on cash and cash equivalents — 2 (36 ) — (34 ) Change in cash and cash equivalents (105 ) (9 ) 70 — (44 ) Cash and cash equivalents at beginning of period 105 16 308 — 429 Cash and cash equivalents at end of period $ — $ 7 $ 378 $ — $ 385 Year ended December 31, 2015 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (1,481 ) $ 823 $ 504 $ (1,114 ) $ (1,268 ) Adjustments to reconcile to net cash (used in) provided by operating activities: Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) 12 701 420 — 1,133 (Gains) charges related to other operating expenses and other income (expense) (47 ) 21 50 — 24 Loss on debt extinguishment 1,068 — — — 1,068 Stock-based compensation expense 329 — — — 329 Other non-cash and non-operating items, net (746 ) (306 ) (14 ) 1,114 48 (Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions (1,044 ) 431 74 — (539 ) Net cash (used in) provided by operating activities (1,909 ) 1,670 1,034 — 795 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment (9 ) (107 ) (166 ) — (282 ) Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs — (264 ) (56 ) — (320 ) Acquisitions, net of cash acquired (70 ) (19 ) — — (89 ) Proceeds from dispositions — 4 — — 4 Proceeds from sale of property and equipment — 17 — — 17 Other investing activities, net 134 254 — (403 ) (15 ) Net cash provided by (used in) investing activities 55 (115 ) (222 ) (403 ) (685 ) CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net (10 ) — (21 ) — (31 ) Proceeds from issuance of long-term debt 10,258 — — — 10,258 Payment of call premiums and debt issuance cost (1,062 ) — — — (1,062 ) Principal payments on long-term debt (11,472 ) (87 ) (9 ) — (11,568 ) Proceeds from issuance of common stock 2,718 — — — 2,718 Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest — — (69 ) (243 ) (312 ) Distributions paid to equity holders — — (497 ) 497 — Capital transactions with former parent, net (19 ) — — — (19 ) Other financing activities, net — — (149 ) 149 — Intercompany 1,546 (1,477 ) (69 ) — — Net cash provided by (used in) financing activities 1,959 (1,564 ) (814 ) 403 (16 ) Effect of exchange rate changes on cash and cash equivalents — 2 (25 ) — (23 ) Change in cash and cash equivalents 105 (7 ) (27 ) — 71 Cash and cash equivalents at beginning of period — 23 335 — 358 Cash and cash equivalents at end of period $ 105 $ 16 $ 308 $ — $ 429 Year ended December 31, 2014 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (458 ) $ 881 $ 439 $ (1,127 ) $ (265 ) Adjustments to reconcile to net cash (used in) provided by operating activities: Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) 10 683 470 — 1,163 (Gains) charges related to other operating expenses and other income (expense) (71 ) (97 ) 20 — (148 ) Loss on debt extinguishment 274 — — — 274 Stock-based compensation expense 51 — — — 51 Other non-cash and non-operating items, net (751 ) (306 ) — 1,127 70 (Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions (731 ) 571 50 — (110 ) Net cash (used in) provided by operating activities (1,676 ) 1,732 979 — 1,035 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment (8 ) (124 ) (176 ) — (308 ) Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs — (183 ) (76 ) — (259 ) Acquisitions, net of cash acquired — (31 ) — — (31 ) Proceeds from dispositions — 270 — — 270 Proceeds from sale of property and equipment — 2 1 — 3 Other investing activities, net 75 232 (4 ) (307 ) (4 ) Net cash provided by (used in) investing activities 67 166 (255 ) (307 ) (329 ) CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net 10 — 2 — 12 Proceeds from issuance of long-term debt 1,830 — — — 1,830 Payment of call premiums and debt issuance cost (355 ) — — — (355 ) Principal payments on long-term debt (3,673 ) (73 ) (5 ) — (3,751 ) Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest — — (45 ) (221 ) (266 ) Distributions paid to equity holders — — (453 ) 453 — Capital transactions with former parent, net 1,788 — — — 1,788 Other financing activities, net — — (76 ) 75 (1 ) Intercompany 1,973 (1,840 ) (133 ) — — Net cash provided by (used in) financing activities 1,573 (1,913 ) (710 ) 307 (743 ) Effect of exchange rate changes on cash and cash equivalents — 5 (35 ) — (30 ) Change in cash and cash equivalents (36 ) (10 ) (21 ) — (67 ) Cash and cash equivalents at beginning of period 36 33 356 — 425 Cash and cash equivalents at end of period $ — $ 23 $ 335 $ — $ 358 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In January 2017, the Company determined that standalone value had been achieved for its Clover terminal devices, principally because a secondary market has been established. The Company will account for the change in accounting estimate on a prospective basis. As such, the Company will recognize revenue on future sales of Clover terminal devices upon delivery, while Clover terminal devices sold prior to January 1, 2017 will continue to be deferred over the term of the respective agreement. Approximately $100 million of the Company’s deferred revenue represents sales of Clover terminal devices which did not have standalone value as of December 31, 2016. On January 23, 2017, the Company incurred an aggregate principal amount of $1.3 billion in new U.S. dollar denominated term loans maturing on June 2, 2020. The interest rate applicable to the new term loans is either LIBOR plus 2.0% or a base rate plus 1.0% . The Company is required to make quarterly principal payments of 1.25% on the new term loans. The new term loans were utilized to pay down the existing 6.75% senior secured first lien notes. In connection with this transaction, the Company recorded approximately $56 million in loss on debt extinguishment. As of December 31, 2016 , the Company was not contractually obligated to pay down the notes and did not utilize current assets as of December 31, 2016 to pay down the 6.75% notes. Thus, the notes were recorded within "Total long-term borrowings" in the consolidated balance sheets. |
SCHEDULE II-Valuation and Quali
SCHEDULE II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-Valuation and Qualifying Accounts | SCHEDULE II—Valuation and Qualifying Accounts Additions Deductions Description (in millions) Balance at Beginning of Period Charged to Costs and Expenses Reclassifications from Other Accounts (a) Write-offs Against Assets Balance at End of Period Year ended December 31, 2016 deducted from receivables $ 83 $ 85 $ 1 $ 82 $ 87 Year ended December 31, 2015 deducted from receivables 72 79 3 71 83 Year ended December 31, 2014 deducted from receivables 43 99 11 81 72 (a) Amounts related to reclassifications from "Accounts payable and accrued liabilities" to "Allowance for doubtful accounts" in the Company's consolidated balance sheets. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in unconsolidated affiliated companies are accounted for under the equity method and are included in “Investment in affiliates” in the accompanying consolidated balance sheets. The Company generally utilizes the equity method of accounting when it has an ownership interest of between 20% and 50% in an entity, provided the Company is able to exercise significant influence over the investee’s operations. The Company consolidates an entity’s financial statements when the Company has a controlling financial interest in the entity. Control is normally established when ownership interests exceed 50% in an entity; however, when the Company does not exercise control over a majority-owned entity as a result of other investors having rights over the management and operations of the entity, the Company accounts for the entity under the equity method. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue Recognition and Deferred Revenue | Revenue Recognition The majority of the Company’s revenues are comprised of: 1) transaction-based fees, which typically constitute a percentage of dollar volume processed; 2) fees per transaction processed; 3) fees per account on file during the period; or 4) some combination thereof. The Company’s arrangements with clients often consist of multiple services and products (multiple-element arrangements). In accounting for multiple-element arrangements, the Company assesses the elements of the contract and whether each element has standalone value and allocates revenue to the various elements based on their estimated selling price as a component of total consideration for the arrangement. The selling price is based on current selling prices offered by the Company or another party for current products or management's best estimate of a selling price. In the case of contracts that the Company owns and manages, revenue is comprised of fees charged to the client, net of interchange fees and assessments charged by the credit card associations, and is recognized at the time the client accepts a point of sale transaction. The fees charged to the client are a percentage of the credit card and debit card transaction’s dollar value, a fixed amount, or a combination of the two. Personal identification number based debit (PIN-debit) and PINless-debit network fees are recognized in “Reimbursable debit network fees, postage, and other” revenues and expenses in the consolidated statements of operations. STAR Network access fees charged to clients are assessed on a per transaction basis. Interchange fees and assessments charged by credit card associations to the Company’s consolidated subsidiaries and network fees related to PIN-debit and PINless-debit transactions charged by debit networks were as follows for the periods presented: Year ended December 31, (in millions) 2016 2015 2014 Interchange fees and assessments $ 23,810 $ 21,711 $ 20,406 Debit network fees 3,121 2,991 2,965 The Company charges processing fees to its merchant alliances. In situations where an alliance is accounted for under the equity method, the Company’s consolidated revenues include the processing fees charged to the alliance, as presented in the consolidated statements of operations within "Transaction and processing service fees". Revenue from check verification, settlement, and guarantee services is recognized at the time of sale less the fair value of the guarantee. The fair value of the guarantee is deferred and recognized at the later of the Company being called upon to honor the guarantee or the expiration of the guarantee. Check verification fees generally are a fixed amount per transaction while check guarantee fees generally are a percentage of the check amount. The purchase and sale of merchant contracts is an ordinary element of the Company’s businesses, and therefore, the gains from selling these revenue-generating assets are included within “Product sales and other” in the consolidated statements of operations. Fees based on cardholder accounts on file are recognized after the requisite services or period has occurred. Fees for PIN-debit transactions where the Company is the debit card processor for the financial institution are recognized on a per transaction basis. Revenues for output services are derived primarily on a per piece basis and consist of fees for the production, materials, and postage related to mailing finished products and recognized as the services are provided. The sale and leasing of POS devices (terminals) are reported in “Product sales and other” in the consolidated statements of operations. Revenue for terminals sold or sold under a sales-type lease transaction is recognized when the following four criteria are met: evidence of an agreement exists, delivery has occurred, the selling price or minimum lease payments are fixed or determinable, and collection of the selling price or minimum lease payments is reasonably assured. Revenue for operating leases is recognized on a straight-line basis over the lease term. Services not specifically described above are generally transaction based fees that are recognized at the time the transactions are processed or programming services that are either recorded as work is performed or are recognized over the life of the contract depending on the underlying business relationship. Deferred Revenue The Company records deferred revenue when it receives payments or invoices in advance of the delivery of products or the performance of services. The deferred revenue is recognized when underlying performance obligations are achieved. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation to employees is measured at the grant date fair values of the respective stock options and restricted stock awards. An estimate of forfeitures is applied when calculating compensation expense. The Company recognizes compensation cost on awards with graded vesting on a straight-line basis over the requisite service period for the entire award. |
Foreign Currency Translation | Foreign Currency Translation The U.S. dollar is the functional currency of the Company’s U.S.-based businesses and certain foreign-based businesses. Significant operations with a local currency as their functional currency include operations in the United Kingdom, Australia, Germany, Ireland, Greece, and Argentina. Foreign currency-denominated assets and liabilities for these units and other less significant operations are translated into U.S. dollars based on exchange rates prevailing at the end of the period, and revenues and expenses are translated at average exchange rates during each monthly period. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of those entities where the functional currency is not the U.S. dollar are included as a component of Other Comprehensive Income (Loss) (OCI). Intercompany loans are generally not considered invested on a long-term basis and such foreign currency gains and losses are included in "Other income" on the consolidated statements of operations. Transaction gains and losses related to operating assets and liabilities are included in “Cost of services” and “Selling, general, and administrative” in the consolidated statements of operations and were immaterial. Non-operating transaction gains and losses derived from non-operating assets and liabilities are included in “Other income” on the consolidated statements of operations and are separately disclosed in note 16 "Supplemental Financial Information" of these consolidated financial statements. |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to various financial and market risks, including those related to changes in interest rates and foreign currency exchange rates, that exist as part of its ongoing business operations. The Company uses derivative instruments (i) to mitigate cash flow risks with respect to changes in interest rates (forecasted interest payments on variable rate debt), (ii) to maintain a desired ratio of fixed rate and floating rate debt, and (iii) to protect the net investment in certain foreign subsidiaries and/or affiliates with respect to changes in foreign currency exchange rates. The Company’s objective is to engage in risk management strategies that provide adequate downside protection. Derivative instruments are entered into for periods consistent with related underlying exposures. The Company applies strict policies to manage each of these risks, including prohibition against derivatives trading, derivatives market-making or any other speculative activities. Although some of the Company’s derivatives either do not qualify or are not designated for hedge accounting, they are maintained for economic hedge purposes and are not considered speculative. The Company formally documents all relationships between hedging instruments and the underlying hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that have been designated as cash flow hedges to forecasted transactions and net investment hedges to the underlying investment in a foreign subsidiary or affiliate. For designated hedges, the Company formally assesses, both at inception of the hedge and on an ongoing basis, whether the hedge is highly effective in offsetting changes in cash flows or foreign currency exposure of the underlying hedged items. The Company also performs an assessment of the probability of the forecasted transactions on a periodic basis. If it is determined that a derivative ceases to be highly effective during the term of the hedge or if the forecasted transaction is no longer probable, the Company discontinues hedge accounting prospectively for such derivative. The Company monitors the financial stability of its derivative counterparties and all counterparties remain highly-rated (in the “A” category or higher). The credit risk inherent in these agreements represents the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. The Company performs a review at inception of the hedge, as circumstances warrant, and at least on a quarterly basis, of the credit risk of these counterparties. The Company also monitors the concentration of its contracts with individual counterparties. The Company’s exposures are in liquid currencies (primarily in U.S. dollars, euros, Australian dollars, British pounds, and Canadian dollars), so there is minimal risk that appropriate derivatives to maintain the hedging program would not be available in the future. The Company recognizes all derivative financial instruments in the consolidated balance sheets as assets or liabilities at fair value. Such amounts are recorded in “Other current assets”, “Other long-term assets”, “Accounts payable and accrued liabilities” or “Other long-term liabilities” in the consolidated balance sheets. The Company’s policy is to present all derivative balances on a gross basis, without regard to counterparty master netting agreements or similar arrangements. Changes in fair value of derivative instruments are recognized immediately in "Other income" on the consolidated statements of operations unless the derivative is designated and qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. For derivatives that qualify as hedges of future cash flows, the effective portion of changes in fair value is recorded temporarily in equity as a component of OCI and then recognized in "Other income" in the consolidated statements of operations in the same period or periods during which the hedged item affects earnings. For derivatives that qualify as a hedge of a net investment in a foreign operation, the gain or loss is reported in OCI as part of the cumulative translation adjustment to the extent the hedge is effective. Any ineffective portions of cash flow hedges and net investment hedges are recognized in “Other income” in the consolidated statements of operations during the period of change. |
Noncontrolling and Redeemable Noncontrolling Interests | Noncontrolling and Redeemable Noncontrolling Interests Noncontrolling interests represent the minority shareholders’ share of the net income or loss and equity in consolidated subsidiaries. Substantially all of the Company’s noncontrolling interests are presented pretax in the consolidated statements of operations as “Net income attributable to noncontrolling interests and redeemable noncontrolling interest” because the majority of the Company’s non wholly owned consolidated subsidiaries are flow through entities for tax purposes. Noncontrolling interests are presented as a component of equity in the consolidated balance sheets and reflect the original investments by these noncontrolling shareholders in the consolidated subsidiaries, along with their proportionate share of the earnings or losses of the subsidiaries, net of dividends or distributions. Noncontrolling interests that are redeemable at the option of the holder are presented outside of equity and are carried at their estimated redemption value. Refer to note 5 "Stockholders' Equity and Redeemable Noncontrolling Interest" of these consolidated financial statements for more information. A noncontrolling interest is recorded on the date of acquisition based on the total fair value of the acquired entity and the noncontrolling interest’s share of that value. |
Reserve for Merchant Credit Losses and Check Guarantees | Reserve for Merchant Credit Losses and Check Guarantees With respect to the merchant acquiring business, the Company’s merchant customers (or those of its unconsolidated alliances) have the liability for any charges properly reversed by the cardholder. In the event, however, that the Company is not able to collect such amounts from the merchants due to merchant fraud, insolvency, bankruptcy or another reason, the Company may be liable for any such reversed charges. The Company’s risk in this area primarily relates to situations where the cardholder has purchased goods or services to be delivered in the future. The Company’s obligation to stand ready to perform is minimal in relation to the total dollar volume processed. The Company requires cash deposits, guarantees, letters of credit or other types of collateral from certain merchants to minimize this obligation. Collateral held by the Company is classified within “Settlement assets” and the obligation to repay the collateral if it is not needed is classified within “Settlement obligations” on the Company’s consolidated balance sheets. The Company also utilizes a number of systems and procedures to manage merchant risk. Despite these efforts, the Company historically has experienced some level of losses due to merchant defaults. The amount of cash deposits and letters of credit held by the Company was $628 million and $652 million as of December 31, 2016 and 2015 , respectively. The Company’s contingent obligation relates to imprecision in its estimates of required collateral. A provision for this obligation is recorded based primarily on historical experience of credit losses and other relevant factors such as economic downturns or increases in merchant fraud. Merchant credit losses are included in “Cost of services” in the Company’s consolidated statements of operations. The amount of the reserves attributable to entities consolidated by the Company was $23 million and $22 million as of December 31, 2016 and 2015 , respectively. The majority of the TeleCheck business involves the guarantee of checks received by merchants. If the check is returned, TeleCheck is required to purchase the check from the merchant at its face value and pursue collection from the check writer. A provision for estimated check returns, net of anticipated recoveries, is recorded at the transaction inception based on recent history. |
Income Taxes | Income Taxes The Company and its domestic subsidiaries file a consolidated U.S. income tax return. The Company’s foreign operations file income tax returns in their local jurisdictions. Income taxes reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, these deferred tax assets will be adjusted through the Company’s provision for income taxes in the period in which this determination is made. The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. |
Cash and Cash Equivalents | Cash and Cash Equivalents 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. Cash and cash equivalents that were restricted from use due to regulatory requirements are included in “Other long-term assets” in the consolidated balance sheets |
Accounts Receivable and Leasing Receivables | Accounts Receivable and Leasing Receivables Accounts receivable balances are stated net of allowance for doubtful accounts. Historically, the Company has infrequently incurred significant write-offs. The Company records allowances for doubtful accounts when it is probable that the accounts receivable balance will not be collected. Long-term accounts receivable balances are included in “Other long-term assets” in the consolidated balance sheets. The Company has receivables associated with its POS terminal leasing businesses. Leasing receivables are included in “Accounts receivable” and “Other long-term assets” in the consolidated balance sheets. The Company recognizes interest income on its leasing receivables using the effective interest method. Interest income from leasing receivables is included in “Product sales and other” in the consolidated statements of operations. For direct financing leases, the interest rate used incorporates initial direct costs included in the net investment in the lease. For sales type leases, initial direct costs are expensed as incurred. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the lesser of the estimated useful life of the related assets (generally three years to 10 years for equipment, furniture, and leasehold improvements, and 30 years for buildings) or the lease term. Maintenance and repairs which do not extend the useful life of the respective assets are expensed as incurred. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill represents the excess of purchase price over tangible and intangible assets acquired less liabilities assumed arising from business combinations. Goodwill is generally allocated to reporting units based upon relative fair value (taking into consideration other factors such as synergies) when an acquired business is integrated into multiple reporting units. The Company’s reporting units are at the operating segment level or one level below the operating segment level for which discrete financial information is prepared and regularly reviewed by management. When a business within a reporting unit is disposed of, goodwill is allocated to the disposed business using the relative fair value method. Relative fair value is estimated using a discounted cash flow analysis. The Company tests goodwill annually for impairment, as well as upon an indicator of impairment, using a fair value approach at the reporting unit level. The Company estimates the fair value of each reporting unit using a discounted cash flow analysis. The Company performed its annual goodwill impairment test in the fourth quarters of 2016 and 2015 . As of October 1, 2016 , the most recent impairment analysis date, the fair value of each reporting unit exceeded its carrying value. The Company did not record any goodwill impairment charges in 2016 , 2015 , and 2014. Customer relationships represent the estimated value of the Company’s relationships with customers, primarily merchants and financial institutions, to which it provides services. Customer relationships are amortized based on the pattern of undiscounted cash flows for the period as a percentage of total projected undiscounted cash flows. The Company selected this amortization method for these customer relationships based on a conclusion that the projected undiscounted cash flows could be reliably determined. The Company capitalizes initial payments for new contracts, contract renewals, and conversion costs associated with customer processing relationships to the extent recoverable through cash flows from future operations, contractual minimums, and/or penalties in the case of early termination. The Company’s accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated ongoing future cash flows from the contract or the termination fees the Company would receive in the event of early termination of the contract by the customer. The initial payments for new contracts and contract renewals are amortized over the term of the contract as a reduction of the associated revenue (transaction and processing service fees). Conversion costs are also amortized over the term of the contract but are recorded as an expense in “Depreciation and amortization” in the consolidated statements of operations. The Company develops software that is used in providing processing services to customers. To a lesser extent, the Company also develops software to be sold or licensed to customers. Costs incurred during the preliminary project stage are expensed as incurred. Capitalization of costs begins when the preliminary project stage is completed and management, with the relevant authority, authorizes and commits to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalization of costs ceases when the software is substantially complete and ready for its intended use. Software development costs are amortized using the straight-line method over the estimated useful life of the software, which is generally 5 years . Software acquired in connection with business combinations is amortized using the straight-line method over the estimated useful life of the software which generally ranges from three years to 10 years . In addition to capitalized contract and software development costs, other intangibles include copyrights, patents, purchased software, trademarks, and non-compete agreements acquired in business combinations. Other intangibles, except for the First Data trade name discussed in note 3 “Goodwill and Other Intangibles” of these consolidated financial statements, are amortized on a straight-line basis over the length of the contract or benefit period, which generally ranges from three years to 25 years . |
Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair value is defined by accounting guidance as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the hierarchy prescribed in the accounting guidance for fair value measurements, based upon the available inputs to the valuation and the degree to which they are observable or not observable in the market. The Company maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. The three levels in the hierarchy are as follows: • Level 1 Inputs—Quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. • Level 2 Inputs—Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including but not limited to quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. • Level 3 Inputs—Unobservable inputs reflecting the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis During the years ended December 31, 2016 and 2015 , the Company did not record any adjustments over $5 million to the carrying value of existing assets based on non-recurring fair value measurements. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing Net income (loss) attributable to FDC by the weighted-average shares outstanding during the period, without consideration for any potential dilutive shares. Diluted net income (loss) per share is computed by dividing Net income (loss) attributable to FDC by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested restricted stock awards. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. For any period where Net income (loss) attributable to First Data Corporation is presented, shares used in the diluted net income per share calculation represent basic shares because using diluted shares would be anti-dilutive. |
Reclassifications | Reclassifications Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation. |
New Accounting Guidance | New Accounting Guidance Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued guidance that requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in an exchange for those goods or services. It also requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively, and improves guidance for multiple-element arrangements. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses and identifying performance obligations. The Company has performed a review of the requirements of the new revenue standard and are monitoring the activity of the FASB and the transition resource group as it relates to specific interpretive guidance. The Company is also comparing its current accounting practices to the recognition requirements of the new standard to assess the impact of transition. The new standard could change the amount and timing of revenue and costs under certain arrangement types; however, the Company has not completely determined what effect, if any, the new guidance will have on its consolidated financial statements and related disclosures. The Company plans to adopt the new standard, as well as other clarifications and technical guidance issued by the FASB related to this new revenue standard, on January 1, 2018, and will likely apply the modified retrospective transition method. This would result in an adjustment to retained earnings for the cumulative effect, if any, of applying the standard to contracts in process as of the adoption date. Under this method, the Company would not restate the prior financial statements presented, therefore the new standard requires additional disclosures of the amount by which each financial statement line item is affected in the current reporting period during 2018, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. Leases In February 2016, the FASB issued guidance which requires lessees to put most leases on their balance sheets. The guidance also modifies the classification criteria and the accounting for sales-type and direct financing leases for lessors and provides new presentation and disclosure requirements for both lessees and lessors. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period subsequent to adoption of the proceeding revenue recognition guidance. The Company is currently evaluating the impact of adoption of the new guidance on its consolidated financial statements. Share-based Compensation In March 2016, the FASB issued guidance that will change some aspects of the accounting for stock-based payments to employees. Under the new guidance, companies will be required to record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and to present excess tax benefits as an operating activity on the statement of cash flows. The guidance may also change how companies account for forfeitures and an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation. The Company will adopt the various amendments in its consolidated financial statements for the quarterly period ending March 31, 2017 with an effective date of January 1, 2017. As required, the Company will use the modified retrospective transition method for amendments related to the timing of when excess tax benefits are recognized by means of a cumulative-effect adjustment to shareholders' equity as of January 1, 2017. The Company has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The Company does not expect the adoption of these amendments will have a material effect on its consolidated financial statements while the Company still has valuation allowances within the U.S. Once these valuation allowances in the U.S. are fully utilized or released, the Company could have volatility in its income tax expense. Credit Losses In June 2016, the FASB issued guidance that will change the accounting for credit impairment. Under the new guidance, companies are required to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. Statement of Cash Flows In August 2016, the FASB issued guidance which clarifies the treatment of several cash flow categories. In addition, the guidance clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. The Company's early adoption of the guidance in the third quarter of 2016 did not have an impact on the Company's financial statements or disclosures. In November 2016, the FASB issued guidance that will change the presentation of restricted cash and restricted cash equivalents on the statement of cash flows. Under the new guidance, companies will be required to include restricted cash and restricted cash equivalents with the cash and cash equivalents line item when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Given this change, transfers between cash, cash equivalents, and restricted cash and cash equivalents will not be reported as cash flow activities on the statement of cash flows. In addition, the guidance requires entities to disclose information about the nature of restrictions on its cash and cash equivalents, including restricted cash and cash equivalents. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, including adoption in an interim period. The guidance should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. Goodwill In January 2017, the FASB issued guidance simplifying the test for goodwill impairment. This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted. This guidance must be applied on a prospective basis. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial position, results of operations or cash flows. See "Goodwill and Other Intangibles" previously disclosed in note 1 to these consolidated financial statements. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of amounts associated with amortization of initial payments for new contracts and equity method investments | The following table presents the amounts associated with such amortization for the periods presented: Year ended December 31, (in millions) 2016 2015 2014 Amortization of initial payments for new contracts $ 65 $ 51 $ 45 Amortization related to equity method investments 47 60 62 |
Schedule of amounts associated with processing services revenue | Interchange fees and assessments charged by credit card associations to the Company’s consolidated subsidiaries and network fees related to PIN-debit and PINless-debit transactions charged by debit networks were as follows for the periods presented: Year ended December 31, (in millions) 2016 2015 2014 Interchange fees and assessments $ 23,810 $ 21,711 $ 20,406 Debit network fees 3,121 2,991 2,965 |
Schedule of estimate of losses on returned check and fair value of check guarantees | The following table presents the estimate of losses on returned check and the fair value of check guarantees: As of December 31, (in millions) 2016 2015 Estimate of losses on returned checks $ 5 $ 6 Fair value of checks guaranteed 17 21 |
Schedule of amounts charged to expense for the depreciation and amortization of property and equipment, including equipment under capital lease | The following table presents depreciation and amortization expense related to property and equipment, including equipment under capital lease: Year ended December 31, (in millions) Amount 2016 $ 300 2015 290 2014 286 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | As of December 31, (in millions) 2016 2015 Short-term borrowings: Foreign lines of credit and other arrangements $ 84 $ 43 Accounts receivable securitized loan at LIBOR plus 200 basis points or a base rate equal to the highest of (i) the applicable lender's prime rate, or (ii) the federal funds rate plus 0.50% 160 — Unamortized deferred financing costs (a) (2 ) — Total short-term borrowings 242 43 Current portion of long-term borrowings: 8.75% Senior secured second lien notes due 2022 — 750 Unamortized discount and unamortized deferred financing costs (a) — (10 ) Other arrangements and capital lease obligations 116 73 Total current portion of long-term borrowings 116 813 Total short-term and current portion of long-term borrowings 358 856 Long-term borrowings: Senior secured term loan facility due March 2018 at LIBOR and euro LIBOR plus 3.5% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.5% — 4,938 Senior secured term loan facility due September 2018 at LIBOR plus 3.5% or a base rate plus 2.5% — 1,008 Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 4.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 3.0% — 1,171 Senior secured term loan facility due July 2022 at LIBOR and euro LIBOR plus 3.75% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.75% — 2,464 Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 3.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.0% 4,379 — Senior secured term loan facility due July 2022 at LIBOR plus 3.0% or a base rate plus 2.0%, or solely with respect to euro-denominated term loans, euro LIBOR plus 3.25% 3,583 — 6.75% Senior secured first lien notes due 2020 1,398 1,398 5.375% Senior secured first lien notes due 2023 1,210 1,210 5.0% Senior secured first lien notes due 2024 1,900 1,000 5.75% Senior secured second lien notes due 2024 2,200 2,200 7.0% Senior unsecured notes due 2023 3,400 3,400 Unamortized discount and unamortized deferred financing costs (a) (154 ) (174 ) Other arrangements and capital lease obligations 215 122 Total long-term borrowings (b) 18,131 18,737 Total borrowings (c) $ 18,489 $ 19,593 (a) Unamortized deferred financing costs are amortized on a straight-line basis, which approximates the interest method, over the remaining term of the respective debt. In addition, certain lenders' fees associated with debt transactions were capitalized as discounts and are similarly being amortized on a straight-line basis, which approximates the effective interest method, over the remaining term of the respective debt. (b) As of December 31, 2016 and 2015 , the fair value of the Company's long-term borrowings was $18.8 billion and $19.6 billion , respectively. The estimated fair value of the Company's long-term borrowings was primarily based on market trading prices and is considered to be a Level 2 measurement. (c) The effective interest rate is not substantially different than the coupon rate on any of the Company's debt tranches. |
Schedule of future aggregate annual maturities of long-term debt | The following table presents the future aggregate annual maturities of long-term debt excluding unamortized discounts and deferred financing cost: Year ended December 31, (in millions) Par Amount 2017 $ 116 2018 89 2019 60 2020 1,443 2021 4,390 Thereafter 12,303 Total $ 18,401 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents changes to goodwill for the years ended December 31, 2015 and 2016 : (in millions) Global Business Solutions Global Financial Network & Security Solutions Divested Operations Totals Balance as of January 1, 2015 Goodwill $ 15,712 $ 2,126 $ 2,238 $ 181 $ 20,257 Accumulated impairment losses (1,363 ) (683 ) (1,013 ) (181 ) (3,240 ) 14,349 1,443 1,225 — 17,017 Acquisitions 9 — 46 — 55 Other adjustments (primarily foreign currency) (154 ) (72 ) — — (226 ) Balance as of December 31, 2015 Goodwill 15,567 2,054 2,284 181 20,086 Accumulated impairment losses (1,363 ) (683 ) (1,013 ) (181 ) (3,240 ) 14,204 1,371 1,271 — 16,846 Acquisitions 5 — — — 5 Dispositions (25 ) — — — (25 ) Other adjustments (primarily foreign currency) (42 ) (88 ) — — (130 ) Balance as of December 31, 2016 Goodwill 15,505 1,966 2,284 181 19,936 Accumulated impairment losses (1,363 ) (683 ) (1,013 ) (181 ) (3,240 ) $ 14,142 $ 1,283 $ 1,271 $ — $ 16,696 |
Schedule of intangible amortization expense associated with customer relationships and other intangibles | The intangible amortization expense associated with customer relationships and other intangibles, including amortization associated with investments in affiliates, was as follows for the periods indicated: Year ended December 31, (in millions) Amount 2016 $ 761 2015 843 2014 877 |
Schedule of components of other intangibles | The following table provides the components of other intangibles: As of December 31, 2016 2015 Accumulated Net of Accumulated Accumulated Net of Accumulated (in millions) Cost Amortization Amortization Cost Amortization Amortization Customer relationships $ 7,399 $ (5,660 ) $ 1,739 $ 7,435 $ (5,299 ) $ 2,136 Other intangibles: Conversion costs $ 248 $ (109 ) $ 139 $ 218 $ (102 ) $ 116 Contract costs 306 (149 ) 157 280 (123 ) 157 Software 2,236 (1,726 ) 510 2,019 (1,547 ) 472 Other, including trade names 1,375 (381 ) 994 1,400 (362 ) 1,038 Total other intangibles $ 4,165 $ (2,365 ) $ 1,800 $ 3,917 $ (2,134 ) $ 1,783 |
Schedule of estimated future aggregate amortization expense | The estimated future aggregate amortization expense for the next five years is as follows: Year ended December 31, (in millions) Amount 2017 $ 629 2018 560 2019 475 2020 393 2021 276 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expense recognized in the consolidated statements of operations | Total stock-based compensation expense recognized in the "Cost of services" and “Selling, general, and administrative” line items of the consolidated statements of operations resulting from stock options, non-vested restricted stock awards, and non-vested restricted stock units was as follows for the periods presented: Year ended December 31, (in millions) Cost of services Selling, general, and administrative Total 2016 (a) $ 112 $ 151 $ 263 2015 (b) 130 199 329 2014 (c) 2 49 51 (a) Approximately $52 million of stock-based compensation expense was recognized in conjunction with the IPO. (b) Approximately $254 million was recognized in conjunction with the IPO and $14 million of stock-based compensation expense was recognized as a result of the departure of certain executive officers. (c) Approximately $37 million of stock-based compensation expense was recognized as a result of the departure of certain executive officers. |
Schedule of weighted-average assumptions for estimating fair value of stock options granted | The fair value of stock options granted for the years ended December 31, 2016 , 2015 , and 2014 were estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: Year ended December 31, 2016 2015 2014 Risk-free interest rate 2.08 % 1.87 % 2.24 % Dividend yield — — — Expected volatility 41.33 % 55.15 % 50.45 % Expected term (in years) 7 7 7 Fair value of stock $ 12.62 $ 15.53 $ 12.64 Fair value of options $ 5.33 $ 8.68 $ 6.76 |
Summary of stock option activity | A summary of stock option activity for the years ended December 31, 2016 and 2015 was as follows: (options in millions) Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2014 32 $ 10.75 Granted 11 15.53 Exercised (1 ) 9.86 Canceled / Forfeited (1 ) 11.25 Outstanding as of December 31, 2015 41 $ 11.94 7 years $ 166 Granted 2 12.62 Exercised (2 ) 9.86 Canceled / Forfeited (2 ) 15.39 Outstanding as of December 31, 2016 (a) 39 $ 12.00 6 years $ 98 Options exercisable as of December 31, 2016 (a) 22 $ 10.78 5 years $ 76 (a) Includes 2 million of outstanding options subject to the market conditions described above. There are no exercisable options subject to these market conditions. |
Summary of restricted stock award and restricted stock unit activity | A summary of restricted stock award and restricted stock unit activity for the years ended December 31, 2016 and 2015 is as follows: (awards/units in millions) Awards/Units Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2014 15 $ 11.98 Granted 19 14.96 Vested (1 ) 15.04 Canceled / Forfeited (1 ) 14.02 Non-vested December 31, 2015 32 $ 14.30 Granted 18 12.49 Vested (10 ) 13.91 Canceled / Forfeited (6 ) 13.74 Non-vested as of December 31, 2016 (a) 34 $ 13.59 (a) Includes 1 million of shares subject to the market conditions described above. |
Stockholders' Equity and Rede36
Stockholders' Equity and Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of income tax effects allocated to and the cumulative balance of each component of OCI | The income tax effects allocated to and the cumulative balance of each component of OCI are as follows: (in millions) Beginning Balance Pretax Gain (Loss) Amount Tax (Benefit) Expense Net-of- Tax Amount Ending Balance As of December 31, 2016 Foreign currency translation adjustment (a) $ (1,081 ) $ (149 ) $ (1 ) $ (148 ) $ (1,229 ) Pension liability adjustments (b) (136 ) 34 (4 ) 38 (98 ) Derivative instruments — 3 — 3 3 Marketable securities (2 ) — — — (2 ) $ (1,219 ) $ (112 ) $ (5 ) $ (107 ) $ (1,326 ) As of December 31, 2015 Foreign currency translation adjustment (a) $ (801 ) $ (261 ) $ 19 $ (280 ) $ (1,081 ) Pension liability adjustments (123 ) (19 ) (6 ) (13 ) (136 ) Marketable securities (5 ) 3 — 3 (2 ) $ (929 ) $ (277 ) $ 13 $ (290 ) $ (1,219 ) As of December 31, 2014 Foreign currency translation adjustment (a) $ (504 ) $ (298 ) $ (1 ) $ (297 ) $ (801 ) Pension liability adjustments (87 ) (35 ) 1 (36 ) (123 ) Marketable securities 2 (7 ) — (7 ) (5 ) $ (589 ) $ (340 ) $ — $ (340 ) $ (929 ) (a) Net-of-tax Foreign currency translation adjustment for the years ended December 31, 2016 , 2015 , and 2014 is different than the amount presented on the consolidated statements of comprehensive income (loss) by $(5) million , $(10) million , and $(11) million , respectively, due to the foreign currency translation adjustment related to noncontrolling interests not included above. (b) 2016 pretax benefit includes an approximate $10 million reclassification out of OCI to "Other operating expenses" in the consolidated statements of operations related to the lump sum cash payout of certain U.S. based pension liabilities. |
Summary of the redeemable noncontrolling interest activity | The following table presents a summary of the redeemable noncontrolling interest activity: (in millions) Redeemable Noncontrolling Interest Balance as of January 1, 2014 $ 69 Distributions (35 ) Share of income 34 Adjustment to redemption value of redeemable noncontrolling interest 2 Balance as of December 31, 2014 70 Distributions (35 ) Share of income 34 Adjustment to redemption value of redeemable noncontrolling interest 8 Balance as of December 31, 2015 77 Distributions (33 ) Share of income 33 Adjustment to redemption value of redeemable noncontrolling interest (4 ) Balance as of December 31, 2016 $ 73 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net loss per share | The following table sets forth the computation of the Company's basic and diluted net loss per share: Year ended December 31, (in millions, except share amounts) 2016 2015 2014 Numerator: Net income (loss) used in computing net income (loss) per share, basic and diluted $ 420 $ (1,481 ) $ (458 ) Denominator: Shares used in computing net income (loss) per share, basic (a) 901,671,872 192,263,793 1,000 Effect of dilutive securities 19,329,991 — — Total dilutive securities 921,001,863 192,263,793 1,000 Basic net income (loss) per share $ 0.47 $ (7.70 ) $ (458,000 ) Diluted net income (loss) per share (b) 0.46 (7.70 ) (458,000 ) Anti-dilutive shares excluded from diluted net income (loss) per share 20,967,794 26,752,706 — (a) 2015 weighted-average shares calculated using 1,000 shares outstanding prior to the HoldCo Merger and the filing of the Company's prospectus in October 2015 and the Class A and Class B common stock outstanding after these transactions. 2014 weighted-average shares calculated using 1,000 shares outstanding prior to the HoldCo Merger and the filing of the Company's prospectus in October 2015. (b) Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of operating segment results | The following tables present the Company’s operating segment results for the years ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, 2016 (in millions) Global Business Solutions Global Financial Network & Security Solutions Corporate Totals Revenues: Transaction and processing service fees $ 3,201 $ 1,372 $ 1,309 $ — $ 5,882 Product sales and other 826 221 176 — 1,223 Equity earnings in affiliates 36 — — — 36 Total segment revenues $ 4,063 $ 1,593 $ 1,485 $ — $ 7,141 Depreciation and amortization $ 435 $ 357 $ 115 $ 14 $ 921 Segment EBITDA 1,725 646 666 (145 ) 2,892 Other operating expenses and other income (expense) excluding divestitures 28 (4 ) (7 ) (28 ) (11 ) Equity earnings in affiliates 260 — — — 260 Year ended December 31, 2015 (in millions) Global Business Solutions Global Financial Network & Security Solutions Corporate Totals Revenues: Transaction and processing service fees $ 3,209 $ 1,323 $ 1,322 $ — $ 5,854 Product sales and other 845 172 142 — 1,159 Equity earnings in affiliates 35 — — — 35 Total segment revenues $ 4,089 $ 1,495 $ 1,464 $ — $ 7,048 Depreciation and amortization $ 490 $ 393 $ 91 $ 25 $ 999 Segment EBITDA 1,681 550 639 (140 ) 2,730 Other operating expenses and other income (expense) excluding divestitures 26 (16 ) (3 ) (36 ) (29 ) Equity earnings in affiliates 239 — — — 239 Year ended December 31, 2014 (in millions) Global Business Solutions Global Financial Network & Security Solutions Corporate Totals Revenues: Transaction and processing service fees $ 3,250 $ 1,313 $ 1,277 $ — $ 5,840 Product sales and other 766 176 92 — 1,034 Equity earnings in affiliates 30 — — — 30 Total segment revenues $ 4,046 $ 1,489 $ 1,369 $ — $ 6,904 Depreciation and amortization $ 518 $ 401 $ 90 $ 23 $ 1,032 Segment EBITDA 1,687 529 608 (161 ) 2,663 Other operating expenses and other income (expense) excluding divestitures 38 (3 ) 96 15 146 Equity earnings in affiliates 216 — 4 — 220 |
Schedule of reconciliation of reportable segment amounts to the consolidated balances | The following table presents a reconciliation of reportable segment amounts to the Company’s consolidated balances for the years ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, (in millions) 2016 2015 2014 Consolidated revenues $ 11,584 $ 11,451 $ 11,152 Adjustments: Non wholly owned entities (a) (80 ) (74 ) (57 ) ISOs commission expense (b) (618 ) (642 ) (587 ) Reimbursable debit network fees, postage, and other (3,745 ) (3,687 ) (3,604 ) Total segment revenues $ 7,141 $ 7,048 $ 6,904 Net income (loss) attributable to First Data Corporation $ 420 $ (1,481 ) $ (458 ) Adjustments: Non wholly owned entities (a) (30 ) (26 ) (24 ) Depreciation and amortization 949 1,022 1,056 Interest expense, net 1,068 1,537 1,728 Loss on debt extinguishment 70 1,068 274 Other items (c) 71 180 (45 ) Income tax expense 81 101 82 Stock-based compensation 263 329 50 Total segment EBITDA $ 2,892 $ 2,730 $ 2,663 (a) Net adjustment to reflect the Company's proportionate share of the results of the Company's investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. Segment revenue for the Company's significant affiliates is reflected based on the Company's proportionate share of the results of the Company's investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. For other affiliates, the Company includes equity earnings in affiliates, excluding amortization expense, in segment revenue. (b) Reported within "Selling, general, and administrative expense" in the consolidated statements of operations. (c) Includes restructuring, certain retention bonuses, non-normal course litigation and regulatory settlements, asset impairments, debt issuance expenses, KKR related items and “Other income" as presented in the consolidated statements of operations, which includes divestitures, derivative gains (losses), non-operating foreign currency gains (losses), and the gain on Visa Europe share sale. KKR related items represent KKR annual sponsorship fees for management, consulting, financial and other advisory services. Upon completing the IPO in October 2015, the Company is no longer obligated to pay KKR annual sponsorship fees. |
Schedule of reconciliation of reportable segment depreciation and amortization amounts to the consolidated balances | The following tables presents a reconciliation of reportable segment depreciation and amortization amounts to the Company’s consolidated balances in the consolidated statements of cash flows for the years ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, (in millions) 2016 2015 2014 Segment depreciation and amortization $ 921 $ 999 $ 1,032 Adjustments for non wholly owned entities 75 83 86 Amortization of initial payments for new contracts (a) 65 51 45 Total consolidated depreciation and amortization per consolidated statements of cash flows 1,061 1,133 1,163 Amortization of equity method investment (b) (47 ) (60 ) (62 ) Amortization of initial payments for new contracts (a) (65 ) (51 ) (45 ) Total consolidated depreciation and amortization per consolidated statements of operations $ 949 $ 1,022 $ 1,056 (a) Included in "Transaction and processing service fees" as contra-revenue in the Company's consolidated statements of operations. (b) Included in "Equity earnings in affiliates" in the Company's consolidated statements of operations. |
Schedule of information concerning principal geographic areas | The following tables presents revenues and long-lived assets by principal geographic area for the years ended December 31, 2016 , 2015 , and 2014 : (in millions) United States International Total Revenues: 2016 $ 9,890 $ 1,694 $ 11,584 2015 9,795 1,656 11,451 2014 9,428 1,724 11,152 Long-Lived Assets: 2016 $ 18,846 $ 2,272 $ 21,118 2015 19,400 2,316 21,716 2014 19,708 2,588 22,296 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of pretax (loss) income, (benefit) provision for income taxes and effective income tax rate | The components of pretax income and provision for income taxes for 2016, 2015 and 2014, consisted of the following: Year ended December 31, (in millions) 2016 2015 2014 Components of pretax income (loss): Domestic $ 492 $ (1,332 ) $ (378 ) Foreign 249 165 195 $ 741 $ (1,167 ) $ (183 ) Provision for income taxes: Federal $ 20 $ 7 $ 16 State and local 20 14 22 Foreign 41 80 44 Income tax expense $ 81 $ 101 $ 82 Effective income tax rate 11 % (9 )% (45 )% |
Schedule of effective tax rates differ from statutory rates | The Company’s effective tax rates differ from statutory rates as follows: Year ended December 31, 2016 2015 2014 Federal statutory rate 35 % 35 % 35 % State income taxes, net of federal income tax benefit 1 3 (1 ) Nontaxable income from noncontrolling interests (11 ) 6 37 Impact of foreign operations (a) 13 — (9 ) Tax effects of foreign exchange gains/losses — (1 ) (6 ) Valuation allowances (35 ) (54 ) (103 ) Liability for unrecognized tax benefits — (2 ) 12 Prior year adjustments 3 4 (7 ) Nondeductible bad debts — — (3 ) Equity Compensation 5 — — Effective tax rate 11 % (9 )% (45 )% (a) The impact of foreign operations includes the effects of earnings and profits adjustments, foreign losses, and differences between foreign tax expense and foreign taxes eligible for the U.S. foreign tax credit. |
Schedule of income tax provisions (benefits) components | The Company’s income tax provisions (benefits) consisted of the following components: Year ended December 31, (in millions) 2016 2015 2014 Current: Federal $ 22 $ 5 $ — State and local 24 23 39 Foreign 73 80 61 119 108 100 Deferred: Federal (2 ) 2 17 State and local (4 ) (9 ) (18 ) Foreign (32 ) — (17 ) (38 ) (7 ) (18 ) $ 81 $ 101 $ 82 |
Schedule of principal components of deferred tax items | The following table outlines the principal components of deferred tax items: As of December 31, (in millions) 2016 2015 Deferred tax assets related to: Reserves and other accrued expenses $ — $ 90 Pension obligations — 6 Employee related liabilities 176 171 Deferred revenues 34 44 Net operating losses and tax credit carryforwards 3,122 3,116 U.S. foreign tax credits on undistributed earnings 252 330 Foreign exchange loss 33 32 Total deferred tax assets 3,617 3,789 Valuation allowance (2,520 ) (2,694 ) Realizable deferred tax assets 1,097 1,095 Deferred tax liabilities related to: Property, equipment, and intangibles (969 ) (1,019 ) Reserves and other accrued expenses (49 ) — Pension obligations (4 ) — Investment in affiliates and other (217 ) (306 ) U.S. tax on foreign undistributed earnings (252 ) (192 ) Total deferred tax liabilities (1,491 ) (1,517 ) Net deferred tax liabilities $ (394 ) $ (422 ) |
Schedule of deferred tax assets and liabilities included in the consolidated balance sheets | The Company’s deferred tax assets and liabilities included in the consolidated balance sheets was as follows: As of December 31, (in millions) 2016 2015 Deferred tax assets $ 15 $ 9 Deferred tax liabilities (409 ) (431 ) Net deferred tax liabilities $ (394 ) $ (422 ) |
Schedule of federal, state and foreign net operating loss carryforwards and foreign tax credit, general business credit and minimum tax credit carryforwards | The following table presents the amounts of federal, state, and foreign net operating loss carryforwards and foreign tax credit, general business credit, and minimum tax credit carryforwards: As of December 31, (in millions) 2016 Federal net operating loss carryforwards (a) $ 4,766 State net operating loss carryforwards (b) 5,893 Foreign net operating loss carryforwards (c) 3,079 Foreign tax credit carryforwards (d) 289 General business credit carryforwards (e) 12 Minimum tax credit carryforwards (f) 18 (a) If not utilized, these carryforwards will expire in years 2024 through 2036. (b) If not utilized, these carryforwards will expire in years 2017 through 2036. (c) Foreign net operating loss carryforwards of $66 million , if not utilized, will expire in years 2017 through 2036. The remaining foreign net operating loss carryforwards of $3.0 billion have an indefinite life. (d) If not utilized, these carryforwards will expire in years 2018 through 2026. (e) If not utilized, these carryforwards will expire in years 2027 through 2035. (f) These carryforwards have an indefinite life. |
Schedule of reconciliation of the unrecognized tax benefits | A reconciliation of the unrecognized tax benefits was as follows: (in millions) Unrecognized Tax Benefits Balance as of January 1, 2014 $ 279 Increases for tax positions of prior years 3 Decreases for tax positions of prior years (29 ) Increases for tax positions related to the current period 1 Decreases for cash settlements with taxing authorities (13 ) Decreases due to the lapse of the applicable statute of limitations (5 ) Balance as of December 31, 2014 236 Increases for tax positions of prior years 25 Decreases for tax positions of prior years (4 ) Increases for tax positions related to the current period 1 Decreases for cash settlements with taxing authorities (3 ) Decreases due to the lapse of the applicable statute of limitations (6 ) Balance as of December 31, 2015 249 Increases for tax positions of prior years 2 Decreases for tax positions of prior years (1 ) Increases for tax positions related to the current period — Decreases for cash settlements with taxing authorities (1 ) Decreases due to the lapse of the applicable statute of limitations (9 ) Balance as of December 31, 2016 $ 240 |
Schedule of approximate amounts associated with accrued interest expense and the cumulative accrued interest and penalties | The following table presents the approximate amounts associated with accrued interest expense and the cumulative accrued interest and penalties: Year ended December 31, (in millions) 2016 2015 2014 Current year accrued interest expense (net of related tax benefits) $ 5 $ 7 $ 1 Cumulative accrued interest and penalties (net of related tax benefits) 48 45 39 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Components of other operating expenses | The following table details the components of “Other operating expenses” in the consolidated statements of operations: Year ended December 31, (in millions) 2016 2015 2014 Restructuring, net $ 49 $ 53 $ 13 Pension settlement loss 10 — — Other 2 — — Other operating expenses $ 61 $ 53 $ 13 |
Summary of net pretax benefits (charges), incurred by segment | A summary of net pretax benefits (charges), incurred by segment, for each period is as follows: Year ended December 31, (in millions) 2016 2015 2014 Global Business Solutions $ (9 ) $ (20 ) $ — Global Financial Solutions (10 ) (11 ) 1 Network & Security Solutions (3 ) (3 ) (2 ) Corporate (27 ) (19 ) (12 ) Restructuring, net $ (49 ) $ (53 ) $ (13 ) |
Summary of utilization of restructuring accruals | The following table summarizes the Company’s utilization of restructuring accruals for the years ended December 31, 2015 and 2016 : (in millions) Employee Severance Other Remaining accrual as of January 1, 2015 $ 12 $ 1 Restructuring, net 46 7 Cash payments and other (29 ) (7 ) Remaining accrual as of December 31, 2015 29 1 Restructuring, net 33 16 Loss on sale of property and equipment, net — (13 ) Cash payments and other (53 ) (4 ) Remaining accrual as of December 31, 2016 $ 9 $ — |
Settlement Assets and Obligat41
Settlement Assets and Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Settlement Assets and Obligations | |
Schedule of principal components of settlement assets and obligations | The principal components of the Company’s settlement assets and obligations were as follows: As of December 31, (in millions) 2016 2015 Settlement assets: Cash and cash equivalents $ 1,620 $ 1,426 Investment securities — 1 Due from card associations, bank partners, and merchants 13,175 6,723 Total settlement assets $ 14,795 $ 8,150 Settlement obligations: Payment instruments outstanding $ 12 $ 34 Card settlements due to merchants 14,783 8,116 Total settlement obligations $ 14,795 $ 8,150 |
Derivative Financial Instrume42
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The Company held the following derivative instruments as of the dates indicated: As of December 31, 2016 2015 (in millions) Notional Currency Notional Value Assets (a) Liabilities (a) Notional Currency Notional Value Assets (a) Liabilities (a) Derivatives designated as hedges of net investments in foreign operations: Foreign exchange contracts (b) AUD 211 $ 57 $ — AUD 260 $ 65 $ — Foreign exchange contracts (c) EUR — — — EUR 200 51 — Foreign exchange contracts (d) GBP 300 78 — GBP 250 39 — Foreign exchange contracts (e) CAD 130 9 — CAD 110 24 — 144 — 179 — Derivatives designated as cash flow hedges: Interest rate collar contracts (f) USD 3,000 3 — USD — — — Derivatives not designated as hedging instruments: Interest rate contracts (g) USD — — — USD 5,000 — (56 ) $ 147 $ — $ 179 $ (56 ) (a) Of the balances included in the table above, in aggregate, $147 million of assets as of December 31, 2016 and $179 million of assets and $51 million of liabilities, net $128 million , as of December 31, 2015 are subject to master netting agreements to the extent that the swaps are with the same counterparty. The terms of those agreements require that the Company net settle the outstanding positions at the option of the counterparty upon certain events of default. (b) In connection with the divestiture of the Company's Australian ATM business, the Company settled notional value 49 million AUD in October 2016 at a net settlement value of $8 million . Refer to note 16 "Supplemental Financial Information" for additional details on the divestiture of the Company's Australian ATM business. (c) Matured in January 2016 at a net settlement value of $49 million . (d) Notional value 100 million GBP matured in August 2016 at a net settlement value of $25 million . The Company entered into a new foreign exchange contract with a notional value of 150 million GBP. (e) Notional value 75 million CAD matured in August 2016 at a net settlement value of $14 million . The Company entered into a new foreign exchange contract with a notional value of 95 million CAD. (f) Subsequent to December 31, 2016, the Company entered into notional value 1.3 billion USD interest rate collar contracts. (g) Matured in September 2016. |
Schedule of derivative gains and (losses) | Derivative gains and (losses) were as follows for the periods indicated: Year ended December 31, 2016 2015 2014 (in millions, pretax) Interest Rate Contracts Foreign Exchange Contracts Interest Rate Contracts Foreign Exchange Contracts Interest Rate Contracts Foreign Exchange Contracts Derivatives designated as hedging instruments: Gain recognized in "Foreign currency translation adjustment" in the consolidated statements of comprehensive income (loss) (effective portion) $ — $ 58 $ — $ 79 $ — $ 80 Gain recognized in "Derivative instruments" in the consolidated statements of comprehensive income (loss) (effective portion) (a) 3 — — — — — Derivatives not designated as hedging instruments: (Loss) gain recognized in "Other income" in the consolidated statements of operations $ (5 ) $ — $ (19 ) $ 2 $ (4 ) $ 4 (a) Interest rate collar contracts. |
Summary of activity in other comprehensive income related to derivative instruments classified as cash flow hedges and as a net investment hedge | The following table summarizes activity in other comprehensive income for the years ended December 31, 2016 , 2015 , and 2014 related to derivative instruments classified as cash flow hedges and net investment hedges held by the Company: Year ended December 31, (in millions, after tax) 2016 2015 2014 Accumulated gain (loss) included in other comprehensive income (loss) at beginning of the period $ 86 $ 37 $ (12 ) Increase in fair value of derivatives that qualify for hedge accounting, net of tax (a) (b) 38 49 49 Accumulated gain included in other comprehensive income at end of the period $ 124 $ 86 $ 37 (a) Gains are included in "Derivative instruments" and “Foreign currency translation adjustment” on the consolidated statements of comprehensive income (loss). (b) Net of $23 million , $30 million , and $31 million of tax for the years ended December 31, 2016 , 2015 , and 2014 , respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum aggregate rental commitments due under all noncancelable operating leases, net of sublease income | Future minimum aggregate rental commitments as of December 31, 2016 under all noncancelable operating leases, net of sublease income are due in the following years: Year ended December 31, (in millions) Amount 2017 $ 56 2018 46 2019 41 2020 28 2021 26 Thereafter 96 Total $ 293 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of aggregate amounts charged to expense | The following table presents the aggregate amounts charged to expense in connection with these plans: Year ended December 31, (in millions) Amount 2016 $ 11 2015 12 2014 15 |
Schedule of funded status of defined benefit plans recognized in the consolidate balance sheets | The Company recognizes the funded status of its defined benefit pension plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the consolidated balance sheets, as follows: As of December 31, (in millions) 2016 2015 U.K. plan: Plan benefit obligations $ (713 ) $ (715 ) Fair value of plan assets 808 783 Net pension assets (a) 95 68 U.S. and other foreign plans: Plan benefit obligations (b) (222 ) (252 ) Fair value of plan assets 137 154 Net pension liabilities (c) (85 ) (98 ) Funded status of the plans $ 10 $ (30 ) (a) Pension assets are included in “Other long-term assets” of the consolidated balance sheets. (b) Reflects a $30 million reduction in plan benefit obligations resulting from the cash settlement of certain employee pension fund obligations, which resulted in a settlement loss of $10 million . (c) Pension liabilities are included in “Other long-term liabilities” of the consolidated balance sheets. |
Schedule of estimated future benefit payments, which reflect expected future service | The estimated future benefit payments, which reflect expected future service, are expected to be as follows: Year ended December 31, (in millions) Amount 2017 $ 35 2018 37 2019 39 2020 39 2021 40 2022-2026 217 |
Supplemental Financial Inform45
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of the components of other income (expense) | The following table details the components of “Other income” on the consolidated statements of operations: Year ended December 31, (in millions) 2016 2015 2014 Investment gains $ 35 $ — $ 100 Derivatives (5 ) (17 ) — Divestitures (34 ) 5 2 Non-operating foreign currency gains 19 41 59 Other miscellaneous income 2 — — Other income $ 17 $ 29 $ 161 |
Schedule of supplemental consolidated balance sheet information | Supplemental Consolidated Balance Sheet Information As of December 31, (in millions) 2016 2015 Prepaid expenses and other current assets: Prepaid expenses $ 168 $ 139 Inventory 77 128 Other 115 114 Total Prepaid expenses and other current assets $ 360 $ 381 Property and equipment: Land $ 56 $ 79 Buildings 269 313 Leasehold improvements 89 79 Equipment and furniture 1,386 1,379 Equipment under capital lease 499 468 Property and equipment 2,299 2,318 Less: Accumulated depreciation (1,416 ) (1,367 ) Total Property and equipment, net of accumulated depreciation $ 883 $ 951 Accounts payable and accrued liabilities: Accounts payable $ 206 $ 238 Accrued interest expense 169 132 Other accrued expenses 685 637 Other 504 632 Total Accounts payable and accrued liabilities $ 1,564 $ 1,639 |
Investment in Affiliates (Table
Investment in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of financial information for the merchant alliances and other affiliates accounted for under the equity method | A summary of financial information for the merchant alliances and other affiliates accounted for under the equity method of accounting is presented below. As of December 31, (in millions) 2016 2015 Total current assets $ 4,070 $ 3,002 Total long-term assets 84 55 Total assets $ 4,154 $ 3,057 Total current liabilities $ 3,994 $ 2,925 Total long-term liabilities 9 16 Total liabilities $ 4,003 $ 2,941 |
Summary of financial information related to the income statement | Year ended December 31, (in millions) 2016 2015 2014 Net operating revenues $ 1,434 $ 1,424 $ 1,357 Operating expenses 666 666 638 Operating income $ 768 $ 758 $ 719 Net income $ 749 $ 744 $ 696 FDC equity earnings 260 239 220 |
Schedule of estimated future amortization expense for intangible assets | The estimated future amortization expense for these intangible assets as of December 31, 2016 is as follows: Year ended December 31, (in millions) Amount 2017 $ 43 2018 29 2019 4 Thereafter — |
Selected Quarterly Financial 47
Selected Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2016 and 2015: 2016 (in millions, except per share amounts) First Second Third Fourth Revenues $ 2,777 $ 2,928 $ 2,936 $ 2,943 Expenses 2,539 2,498 2,482 2,463 Operating profit $ 238 $ 430 $ 454 $ 480 Net (loss) income $ (6 ) $ 215 $ 200 $ 251 Net (loss) income attributable to First Data Corporation (56 ) 152 132 192 Net (loss) income per share: Basic (0.06 ) 0.17 0.15 0.21 Diluted (0.06 ) 0.17 0.14 0.21 2015 (in millions, except per share amounts) First Second Third Fourth Revenues $ 2,695 $ 2,872 $ 2,920 $ 2,964 Expenses 2,435 2,463 2,518 2,865 Operating profit $ 260 $ 409 $ 402 $ 99 Net (loss) income $ (63 ) $ 33 $ (75 ) $ (1,163 ) Net loss attributable to First Data Corporation (112 ) (26 ) (126 ) (1,217 ) Net loss per share, basic and diluted (a) (112,000 ) (26,000 ) (126,000 ) (1.60 ) (a) As a result of the prospective treatment of the HoldCo Merger, as discussed within note 1 "Summary of Significant Accounting Policies", net loss per share was computed using 1,000 shares outstanding for the first, second, and third quarters of 2015 and 763 million for the fourth quarter of 2015. |
Supplemental Guarantor Conden48
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of the results of operations | Year ended December 31, 2016 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees $ — $ 3,924 $ 2,979 $ (303 ) $ 6,600 Product sales and other — 835 555 (151 ) 1,239 Total revenues (excluding reimbursable items) — 4,759 3,534 (454 ) 7,839 Reimbursable debit network fees, postage, and other — 2,527 1,218 — 3,745 Total revenues — 7,286 4,752 (454 ) 11,584 Expenses: Cost of services (exclusive of items shown below) — 1,597 1,447 (189 ) 2,855 Cost of products sold — 315 182 (160 ) 337 Selling, general, and administrative 318 1,077 745 (105 ) 2,035 Depreciation and amortization 5 571 373 — 949 Other operating expenses 7 41 13 — 61 Total expenses (excluding reimbursable items) 330 3,601 2,760 (454 ) 6,237 Reimbursable debit network fees, postage, and other — 2,527 1,218 — 3,745 Total expenses 330 6,128 3,978 (454 ) 9,982 Operating (loss) profit (330 ) 1,158 774 — 1,602 Interest expense, net (1,044 ) (18 ) (6 ) — (1,068 ) Loss on debt extinguishment (70 ) — — — (70 ) Interest income (expense) from intercompany notes 234 (219 ) (15 ) — — Equity earnings from consolidated subsidiaries 997 369 — (1,366 ) — Other income (expense) (1 ) (1 ) 19 — 17 (Loss) income before income taxes and equity earnings in affiliates (214 ) 1,289 772 (1,366 ) 481 Income tax (benefit) expense (635 ) 490 226 — 81 Equity earnings in affiliates (1 ) 231 30 — 260 Net (loss) income 420 1,030 576 (1,366 ) 660 Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest — — 64 176 240 Net (loss) income attributable to First Data Corporation $ 420 $ 1,030 $ 512 $ (1,542 ) $ 420 Comprehensive (loss) income $ 313 $ 1,055 $ 384 $ (1,204 ) $ 548 Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest — — 59 176 235 Comprehensive (loss) income attributable to First Data Corporation $ 313 $ 1,055 $ 325 $ (1,380 ) $ 313 Year ended December 31, 2015 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees $ — $ 3,906 $ 2,999 $ (308 ) $ 6,597 Product sales and other — 741 503 (77 ) 1,167 Total revenues (excluding reimbursable items) — 4,647 3,502 (385 ) 7,764 Reimbursable debit network fees, postage, and other — 2,521 1,166 — 3,687 Total revenues — 7,168 4,668 (385 ) 11,451 Expenses: Cost of services (exclusive of items shown below) — 1,576 1,473 (178 ) 2,871 Cost of products sold — 260 173 (77 ) 356 Selling, general, and administrative 476 1,143 803 (130 ) 2,292 Depreciation and amortization 12 620 390 — 1,022 Other operating expenses 8 24 21 — 53 Total expenses (excluding reimbursable items) 496 3,623 2,860 (385 ) 6,594 Reimbursable debit network fees, postage, and other — 2,521 1,166 — 3,687 Total expenses 496 6,144 4,026 (385 ) 10,281 Operating (loss) profit (496 ) 1,024 642 — 1,170 Interest expense, net (1,527 ) (10 ) — — (1,537 ) Loss on debt extinguishment (1,068 ) — — — (1,068 ) Interest income (expense) from intercompany notes 288 (289 ) 1 — — Equity earnings from consolidated subsidiaries 810 304 — (1,114 ) — Other income (expense) 55 3 (29 ) — 29 (Loss) income before income taxes and equity earnings in affiliates (1,938 ) 1,032 614 (1,114 ) (1,406 ) Income tax (benefit) expense (457 ) 422 136 — 101 Equity earnings in affiliates — 213 26 — 239 Net (loss) income (1,481 ) 823 504 (1,114 ) (1,268 ) Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest — — 66 147 213 Net (loss) income attributable to First Data Corporation $ (1,481 ) $ 823 $ 438 $ (1,261 ) $ (1,481 ) Comprehensive (loss) income $ (1,771 ) $ 760 $ 158 $ (715 ) $ (1,568 ) Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest — — 56 147 203 Comprehensive (loss) income attributable to First Data Corporation $ (1,771 ) $ 760 $ 102 $ (862 ) $ (1,771 ) Year ended December 31, 2014 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees $ — $ 3,712 $ 3,056 $ (258 ) $ 6,510 Product sales and other — 625 473 (60 ) 1,038 Total revenues (excluding reimbursable items) — 4,337 3,529 (318 ) 7,548 Reimbursable debit network fees, postage, and other — 2,510 1,094 — 3,604 Total revenues — 6,847 4,623 (318 ) 11,152 Expenses: Cost of services (exclusive of items shown below) — 1,403 1,523 (258 ) 2,668 Cost of products sold — 223 167 (60 ) 330 Selling, general, and administrative 131 1,125 787 — 2,043 Depreciation and amortization 10 607 439 — 1,056 Other operating expenses 10 3 — — 13 Total expenses (excluding reimbursable items) 151 3,361 2,916 (318 ) 6,110 Reimbursable debit network fees, postage, and other — 2,510 1,094 — 3,604 Total expenses 151 5,871 4,010 (318 ) 9,714 Operating (loss) profit (151 ) 976 613 — 1,438 Interest expense, net (1,724 ) (9 ) 5 — (1,728 ) Loss on debt extinguishment (274 ) — — — (274 ) Interest income (expense) from intercompany notes 316 (305 ) (11 ) — — Equity earnings from consolidated subsidiaries 833 294 — (1,127 ) — Other income (expense) 81 100 (20 ) — 161 (Loss) income before income taxes and equity earnings in affiliates (919 ) 1,056 587 (1,127 ) (403 ) Income tax (benefit) expense (461 ) 377 166 — 82 Equity earnings in affiliates — 202 18 — 220 Net (loss) income (458 ) 881 439 (1,127 ) (265 ) Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest — — 66 127 193 Net (loss) income attributable to First Data Corporation $ (458 ) $ 881 $ 373 $ (1,254 ) $ (458 ) Comprehensive (loss) income $ (798 ) $ 709 $ 187 $ (714 ) $ (616 ) Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest — — 55 127 182 Comprehensive (loss) income attributable to First Data Corporation $ (798 ) $ 709 $ 132 $ (841 ) $ (798 ) |
Schedule of the financial position | As of December 31, 2016 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 7 $ 378 $ — $ 385 Accounts receivable, net of allowance for doubtful accounts — 593 1,284 — 1,877 Settlement assets (a) — 7,457 7,338 — 14,795 Intercompany notes receivable 1 — — (1 ) — Other current assets 109 147 104 — 360 Total current assets 110 8,204 9,104 (1 ) 17,417 Property and equipment, net of accumulated depreciation 52 577 254 — 883 Goodwill — 9,145 7,551 — 16,696 Customer relationships, net of accumulated amortization — 1,026 713 — 1,739 Other intangibles, net of accumulated amortization 604 735 461 — 1,800 Investment in affiliates 6 860 122 — 988 Long-term intercompany receivables 3,866 12,001 2,822 (18,689 ) — Long-term intercompany notes receivable 3,481 197 9 (3,687 ) — Deferred tax assets 510 — — (510 ) — Other long-term assets 212 302 298 (43 ) 769 Investment in consolidated subsidiaries 26,286 5,981 — (32,267 ) — Total assets $ 35,127 $ 39,028 $ 21,334 $ (55,197 ) $ 40,292 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 227 $ 781 $ 555 $ 1 $ 1,564 Short-term and current portion of long-term borrowings — 110 249 (1 ) 358 Settlement obligations (a) — 7,457 7,338 — 14,795 Intercompany notes payable — — 1 (1 ) — Total current liabilities 227 8,348 8,143 (1 ) 16,717 Long-term borrowings 17,916 202 13 — 18,131 Deferred tax liabilities — 817 102 (510 ) 409 Long-term intercompany payables 15,097 2,769 823 (18,689 ) — Long-term intercompany notes payable 206 3,481 — (3,687 ) — Other long-term liabilities 461 245 168 (43 ) 831 Total liabilities 33,907 15,862 9,249 (22,930 ) 36,088 Redeemable equity interest — — 73 (73 ) — Redeemable noncontrolling interest — — — 73 73 First Data Corporation stockholders' equity (deficit) 1,220 23,166 6,175 (29,341 ) 1,220 Noncontrolling interests — — 94 2,817 2,911 Equity of consolidated alliance — — 5,743 (5,743 ) — Total equity 1,220 23,166 12,012 (32,267 ) 4,131 Total liabilities and equity $ 35,127 $ 39,028 $ 21,334 $ (55,197 ) $ 40,292 (a) The majority of the Guarantor settlement assets relate to FDC’s merchant acquiring business. FDC believes the settlement assets are not available to satisfy any claims other than those related to the settlement liabilities. As of December 31, 2015 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 105 $ 16 $ 308 $ — $ 429 Accounts receivable, net of allowance for doubtful accounts — 826 1,000 — 1,826 Settlement assets (a) — 4,273 3,877 — 8,150 Intercompany notes receivable 436 86 10 (532 ) — Other current assets 98 188 95 — 381 Total current assets 639 5,389 5,290 (532 ) 10,786 Property and equipment, net of accumulated depreciation 37 640 274 — 951 Goodwill — 9,139 7,707 — 16,846 Customer relationships, net of accumulated amortization — 1,235 901 — 2,136 Other intangibles, net of accumulated amortization 604 703 476 — 1,783 Investment in affiliates 5 900 143 — 1,048 Long-term intercompany receivables 8,523 15,192 6,321 (30,036 ) — Long-term intercompany notes receivable 3,415 236 9 (3,660 ) — Deferred tax assets 524 — — (524 ) — Other long-term assets 259 358 265 (70 ) 812 Investment in consolidated subsidiaries 25,692 5,588 — (31,280 ) — Total assets $ 39,698 $ 39,380 $ 21,386 $ (66,102 ) $ 34,362 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 283 $ 792 $ 564 $ — $ 1,639 Short-term and current portion of long-term borrowings 740 70 46 — 856 Settlement obligations (a) — 4,273 3,877 — 8,150 Intercompany notes payable 96 408 28 (532 ) — Total current liabilities 1,119 5,543 4,515 (532 ) 10,645 Long-term borrowings 18,616 119 2 — 18,737 Deferred tax liabilities — 875 80 (524 ) 431 Long-term intercompany payables 18,583 6,874 4,579 (30,036 ) — Long-term intercompany notes payable 245 3,353 62 (3,660 ) — Other long-term liabilities 467 288 127 (70 ) 812 Total liabilities 39,030 17,052 9,365 (34,822 ) 30,625 Redeemable equity interest — — 77 (77 ) — Redeemable noncontrolling interest — — — 77 77 First Data Corporation stockholders' (deficit) equity 668 22,328 5,933 (28,261 ) 668 Noncontrolling interests — — 88 2,904 2,992 Equity of consolidated alliance — — 5,923 (5,923 ) — Total equity 668 22,328 11,944 (31,280 ) 3,660 Total liabilities and equity $ 39,698 $ 39,380 $ 21,386 $ (66,102 ) $ 34,362 (a) The majority of the Guarantor settlement assets relate to FDC’s merchant acquiring business. FDC believes the settlement assets are not available to satisfy any claims other than those related to the settlement liabilities. |
Schedule of the cash flows | Year ended December 31, 2016 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 420 $ 1,030 $ 576 $ (1,366 ) $ 660 Adjustments to reconcile to net cash (used in) provided by operating activities: Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) 5 645 411 — 1,061 Charges (gains) related to other operating expenses and other income (expense) 8 42 (6 ) — 44 Loss on debt extinguishment 70 — — — 70 Stock-based compensation expense 263 — — — 263 Other non-cash and non-operating items, net (961 ) (366 ) (4 ) 1,366 35 (Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in operating assets and liabilities (583 ) 432 129 — (22 ) Net cash (used in) provided by operating activities (778 ) 1,783 1,106 — 2,111 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment (2 ) (70 ) (160 ) — (232 ) Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs — (185 ) (60 ) — (245 ) Acquisitions, net of cash acquired (6 ) — — — (6 ) Proceeds from dispositions — — 38 — 38 Proceeds from sale of property and equipment 38 — — — 38 Other investing activities, net 206 281 30 (497 ) 20 Net cash provided by (used in) investing activities 236 26 (152 ) (497 ) (387 ) CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net — — 205 — 205 Proceeds from issuance of long-term debt 3,533 — — — 3,533 Payment of call premiums and debt issuance cost (53 ) — — — (53 ) Principal payments on long-term debt (4,986 ) (80 ) (7 ) — (5,073 ) Payment of taxes related to net settlement of equity awards (61 ) — — — (61 ) Proceeds from issuance of common stock 23 — — — 23 Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest — — (52 ) (264 ) (316 ) Distributions paid to equity holders — — (541 ) 541 — Other financing activities, net — 8 (220 ) 220 8 Intercompany 1,981 (1,748 ) (233 ) — — Net cash provided by (used in) financing activities 437 (1,820 ) (848 ) 497 (1,734 ) Effect of exchange rate changes on cash and cash equivalents — 2 (36 ) — (34 ) Change in cash and cash equivalents (105 ) (9 ) 70 — (44 ) Cash and cash equivalents at beginning of period 105 16 308 — 429 Cash and cash equivalents at end of period $ — $ 7 $ 378 $ — $ 385 Year ended December 31, 2015 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (1,481 ) $ 823 $ 504 $ (1,114 ) $ (1,268 ) Adjustments to reconcile to net cash (used in) provided by operating activities: Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) 12 701 420 — 1,133 (Gains) charges related to other operating expenses and other income (expense) (47 ) 21 50 — 24 Loss on debt extinguishment 1,068 — — — 1,068 Stock-based compensation expense 329 — — — 329 Other non-cash and non-operating items, net (746 ) (306 ) (14 ) 1,114 48 (Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions (1,044 ) 431 74 — (539 ) Net cash (used in) provided by operating activities (1,909 ) 1,670 1,034 — 795 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment (9 ) (107 ) (166 ) — (282 ) Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs — (264 ) (56 ) — (320 ) Acquisitions, net of cash acquired (70 ) (19 ) — — (89 ) Proceeds from dispositions — 4 — — 4 Proceeds from sale of property and equipment — 17 — — 17 Other investing activities, net 134 254 — (403 ) (15 ) Net cash provided by (used in) investing activities 55 (115 ) (222 ) (403 ) (685 ) CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net (10 ) — (21 ) — (31 ) Proceeds from issuance of long-term debt 10,258 — — — 10,258 Payment of call premiums and debt issuance cost (1,062 ) — — — (1,062 ) Principal payments on long-term debt (11,472 ) (87 ) (9 ) — (11,568 ) Proceeds from issuance of common stock 2,718 — — — 2,718 Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest — — (69 ) (243 ) (312 ) Distributions paid to equity holders — — (497 ) 497 — Capital transactions with former parent, net (19 ) — — — (19 ) Other financing activities, net — — (149 ) 149 — Intercompany 1,546 (1,477 ) (69 ) — — Net cash provided by (used in) financing activities 1,959 (1,564 ) (814 ) 403 (16 ) Effect of exchange rate changes on cash and cash equivalents — 2 (25 ) — (23 ) Change in cash and cash equivalents 105 (7 ) (27 ) — 71 Cash and cash equivalents at beginning of period — 23 335 — 358 Cash and cash equivalents at end of period $ 105 $ 16 $ 308 $ — $ 429 Year ended December 31, 2014 (in millions) FDC Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidation Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (458 ) $ 881 $ 439 $ (1,127 ) $ (265 ) Adjustments to reconcile to net cash (used in) provided by operating activities: Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) 10 683 470 — 1,163 (Gains) charges related to other operating expenses and other income (expense) (71 ) (97 ) 20 — (148 ) Loss on debt extinguishment 274 — — — 274 Stock-based compensation expense 51 — — — 51 Other non-cash and non-operating items, net (751 ) (306 ) — 1,127 70 (Decrease) increase in cash resulting from changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions (731 ) 571 50 — (110 ) Net cash (used in) provided by operating activities (1,676 ) 1,732 979 — 1,035 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment (8 ) (124 ) (176 ) — (308 ) Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs — (183 ) (76 ) — (259 ) Acquisitions, net of cash acquired — (31 ) — — (31 ) Proceeds from dispositions — 270 — — 270 Proceeds from sale of property and equipment — 2 1 — 3 Other investing activities, net 75 232 (4 ) (307 ) (4 ) Net cash provided by (used in) investing activities 67 166 (255 ) (307 ) (329 ) CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net 10 — 2 — 12 Proceeds from issuance of long-term debt 1,830 — — — 1,830 Payment of call premiums and debt issuance cost (355 ) — — — (355 ) Principal payments on long-term debt (3,673 ) (73 ) (5 ) — (3,751 ) Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest — — (45 ) (221 ) (266 ) Distributions paid to equity holders — — (453 ) 453 — Capital transactions with former parent, net 1,788 — — — 1,788 Other financing activities, net — — (76 ) 75 (1 ) Intercompany 1,973 (1,840 ) (133 ) — — Net cash provided by (used in) financing activities 1,573 (1,913 ) (710 ) 307 (743 ) Effect of exchange rate changes on cash and cash equivalents — 5 (35 ) — (30 ) Change in cash and cash equivalents (36 ) (10 ) (21 ) — (67 ) Cash and cash equivalents at beginning of period 36 33 356 — 425 Cash and cash equivalents at end of period $ — $ 23 $ 335 $ — $ 358 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Business Description (Details) | Oct. 15, 2015shares | Oct. 13, 2015votes |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, issued shares (in shares) | shares | 176,076,869 | |
Reverse stock split conversion ratio | 1 | |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common stock votes per share entitled | votes | 10 | |
Reverse stock split conversion ratio | 0.3164 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Schedule of Amounts Associated with Amortization of Initial Payments for New Contracts and Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Amortization of initial payments for new contracts | $ 65 | $ 51 | $ 45 |
Amortization related to equity method investments | $ 47 | $ 60 | $ 62 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Schedule of Amounts Associated with Processing Services Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Interchange fees and assessments | $ 23,810 | $ 21,711 | $ 20,406 |
Debit network fees | $ 3,121 | $ 2,991 | $ 2,965 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Current deferred revenue | $ 149 | $ 140 |
Noncurrent deferred revenue | $ 184 | $ 146 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Reserve for Merchant Credit Losses and Check Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash deposits and letters of credit held | $ 628 | $ 652 |
Merchant credit losses reserves | 23 | $ 22 |
Maximum future payments under guarantees | $ 452 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Schedule of Accrued Warranty and Recovery Balances (Details) - Returned checks - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Guarantor Obligations [Line Items] | ||
Estimate of losses on returned checks | $ 5 | $ 6 |
Fair value of checks guaranteed | $ 17 | $ 21 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Restricted cash and cash equivalents | $ 30 | $ 3 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Equipment furniture and leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment furniture and leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Schedule of Amounts Charged to Expense for the Depreciation and Amortization of Property and Equipment, Including Equipment under Capital Lease (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation and amortization of property and equipment, including equipment under capital lease | $ 300 | $ 290 | $ 286 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Goodwill and Other Intangibles (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Software development cost | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 5 years |
Software acquired | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 3 years |
Software acquired | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Other intangible assets excluding trade name | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 3 years |
Other intangible assets excluding trade name | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 25 years |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjustments for impairments | $ 5,000,000 | $ 5,000,000 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cash and cash equivalents | $ 385 | $ 429 | $ 358 | $ 425 |
Restatement adjustment prior years | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cash and cash equivalents | 102 | |||
Net cash provided by operating activities | $ 102 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Millions | Dec. 05, 2016 | Jun. 02, 2016 | Dec. 31, 2016 | Mar. 29, 2016 | Jan. 15, 2016 | Dec. 31, 2015 | Nov. 25, 2015 | Nov. 18, 2015 |
Short-term borrowings: | ||||||||
Total short-term borrowings | $ 242 | $ 43 | ||||||
Unamortized deferred financing costs | (2) | 0 | ||||||
Current portion of long-term borrowings: | ||||||||
Unamortized discount and unamortized deferred financing costs (a) | 0 | (10) | ||||||
Other arrangements and capital lease obligations | 116 | 73 | ||||||
Total current portion of long-term borrowings | 116 | 813 | ||||||
Total short-term and current portion of long-term borrowings | 358 | 856 | ||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | 18,131 | 18,737 | ||||||
Unamortized discount and unamortized deferred financing costs | (154) | (174) | ||||||
Other arrangements and capital lease obligations | 215 | 122 | ||||||
Total Borrowings | 18,489 | 19,593 | ||||||
Fair value of long-term borrowings | 18,800 | 19,600 | ||||||
Secured debt | 8.75% Senior secured second lien notes due 2022 | ||||||||
Current portion of long-term borrowings: | ||||||||
8.75% Senior secured second lien notes due 2022 | $ 0 | 750 | ||||||
Long-term borrowings: | ||||||||
Interest rate (percent) | 8.75% | 8.75% | 8.75% | |||||
Secured debt | Senior secured term loan facility due March 2018 at LIBOR and euro LIBOR plus 3.5% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.5% | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 0 | 4,938 | ||||||
Secured debt | Senior secured term loan facility due March 2018 at LIBOR and euro LIBOR plus 3.5% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.5% | Euro LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 3.50% | |||||||
Secured debt | Senior secured term loan facility due March 2018 at LIBOR and euro LIBOR plus 3.5% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.5% | Base rate | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 2.50% | |||||||
Secured debt | Senior secured term loan facility due September 2018 at LIBOR plus 3.5% or a base rate plus 2.5% | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 0 | 1,008 | ||||||
Secured debt | Senior secured term loan facility due September 2018 at LIBOR plus 3.5% or a base rate plus 2.5% | LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 3.50% | |||||||
Secured debt | Senior secured term loan facility due September 2018 at LIBOR plus 3.5% or a base rate plus 2.5% | Base rate | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 2.50% | |||||||
Secured debt | Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 4.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 3.0% | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 0 | 1,171 | ||||||
Secured debt | Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 4.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 3.0% | Euro LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 4.00% | |||||||
Secured debt | Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 4.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 3.0% | Base rate | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||
Secured debt | Senior secured term loan facility due July 2022 at LIBOR and euro LIBOR plus 3.75% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.75% | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 0 | 2,464 | ||||||
Secured debt | Senior secured term loan facility due July 2022 at LIBOR and euro LIBOR plus 3.75% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.75% | Euro LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 3.75% | |||||||
Secured debt | Senior secured term loan facility due July 2022 at LIBOR and euro LIBOR plus 3.75% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.75% | Base rate | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 2.75% | |||||||
Secured debt | Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 3.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.0% | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 4,379 | 0 | ||||||
Secured debt | Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 3.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.0% | LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||
Secured debt | Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 3.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.0% | Euro LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||
Secured debt | Senior secured term loan facility due March 2021 at LIBOR and euro LIBOR plus 3.0% or, solely with respect to U.S. dollar-denominated term loans, a base rate plus 2.0% | Base rate | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 2.00% | |||||||
Secured debt | Senior secured term loan facility due July 2022 at LIBOR plus 3.0% or a base rate plus 2.0%, or solely with respect to euro-denominated term loans, euro LIBOR plus 3.25% | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 3,583 | 0 | ||||||
Secured debt | Senior secured term loan facility due July 2022 at LIBOR plus 3.0% or a base rate plus 2.0%, or solely with respect to euro-denominated term loans, euro LIBOR plus 3.25% | LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 3.00% | 3.75% | 3.00% | |||||
Secured debt | Senior secured term loan facility due July 2022 at LIBOR plus 3.0% or a base rate plus 2.0%, or solely with respect to euro-denominated term loans, euro LIBOR plus 3.25% | Euro LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 3.25% | 3.25% | ||||||
Secured debt | Senior secured term loan facility due July 2022 at LIBOR plus 3.0% or a base rate plus 2.0%, or solely with respect to euro-denominated term loans, euro LIBOR plus 3.25% | Base rate | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 2.00% | |||||||
Secured debt | 6.75% Senior secured first lien notes due 2020 | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 1,398 | 1,398 | ||||||
Interest rate (percent) | 6.75% | |||||||
Secured debt | 5.375% Senior secured first lien notes due 2023 | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 1,210 | 1,210 | ||||||
Interest rate (percent) | 5.375% | |||||||
Secured debt | 5.0% Senior secured first lien notes due 2024 | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 1,900 | 1,000 | ||||||
Interest rate (percent) | 5.00% | 5.00% | 5.00% | |||||
Secured debt | 5.75% Senior secured second lien notes due 2024 | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 2,200 | 2,200 | ||||||
Interest rate (percent) | 5.75% | 5.75% | ||||||
Secured debt | 7.0% Senior unsecured notes due 2023 | ||||||||
Long-term borrowings: | ||||||||
Interest rate (percent) | 7.00% | |||||||
Unsecured debt | 7.0% Senior unsecured notes due 2023 | ||||||||
Long-term borrowings: | ||||||||
Total Long-term borrowings | $ 3,400 | 3,400 | ||||||
Interest rate (percent) | 7.00% | |||||||
Foreign lines of credit and other arrangements | ||||||||
Short-term borrowings: | ||||||||
Total short-term borrowings | $ 84 | 43 | ||||||
Accounts receivable securitized loan at LIBOR plus 200 basis points or a base rate equal to the highest of (i) the applicable lender's prime rate, or (ii) the federal funds rate plus 0.50% | ||||||||
Short-term borrowings: | ||||||||
Total short-term borrowings | $ 160 | $ 0 | ||||||
Accounts receivable securitized loan at LIBOR plus 200 basis points or a base rate equal to the highest of (i) the applicable lender's prime rate, or (ii) the federal funds rate plus 0.50% | LIBOR | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 2.00% | |||||||
Accounts receivable securitized loan at LIBOR plus 200 basis points or a base rate equal to the highest of (i) the applicable lender's prime rate, or (ii) the federal funds rate plus 0.50% | Federal Funds rate | ||||||||
Long-term borrowings: | ||||||||
Basis spread on variable rate (percent) | 0.50% |
Borrowings - Foreign Lines of C
Borrowings - Foreign Lines of Credit and Other Arrangements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other short term debt | ||
Debt Instrument [Line Items] | ||
Amount outstanding and uncommitted | $ 10,000,000 | $ 17,000,000 |
Foreign lines of credit and other arrangements | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 489,000,000 | $ 245,000,000 |
Weighted-average interest rate | 2.60% | 2.60% |
Foreign lines of credit and other arrangements | USD denominated term loan | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 355,000,000 | $ 75,000,000 |
Borrowings - Senior Secured Rev
Borrowings - Senior Secured Revolving Credit Facility (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Senior secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,250,000,000 | |
Remaining borrowing capacity | $ 1,200,000,000 | |
Weighted average interest rate on facilities | 4.60% | 4.60% |
Commitment fee percentage for the unused portion of the facility | 0.50% | |
Senior secured revolving credit facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 3.50% | |
Senior secured revolving credit facility | Base rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 2.50% | |
Letters of credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 | |
Letters of credit outstanding amount | $ 41,000,000 | $ 42,000,000 |
Borrowings - Senior Secured Ter
Borrowings - Senior Secured Term Loan Facility (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Senior secured term loan facility | ||
Debt Instrument [Line Items] | ||
Quarterly payment under original terms as percentage of original principal amount (percent) | 1.00% | |
Repayments of debt | $ 0 | $ 0 |
Euro-denominated senior secured term loan facilities | ||
Debt Instrument [Line Items] | ||
Nonderivative hedges of net investments in foreign operations | $ 1,000,000,000 |
Borrowings - 8.75% Senior Secur
Borrowings - 8.75% Senior Secured Second Lien Notes (Details) - USD ($) $ in Millions | Jan. 15, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 25, 2015 |
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | $ 70 | $ 1,068 | $ 274 | ||
Senior secured term loan facility | 8.75% Senior secured second lien notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (percent) | 8.75% | 8.75% | 8.75% | ||
Loss on debt extinguishment | $ 43 |
Borrowings - Senior Secured T66
Borrowings - Senior Secured Term Loan Facility Due March 2018 and September 2018 (Details) € in Millions, $ in Millions | Dec. 05, 2016EUR (€) | Jun. 02, 2016USD ($) | Apr. 13, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 05, 2016USD ($) | Oct. 14, 2016USD ($) | Jun. 02, 2016EUR (€) | Jun. 02, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||
Loss on debt extinguishment | $ 70 | $ 1,068 | $ 274 | |||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due March 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 3,700 | $ 4,270 | ||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due March 2021 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 4.00% | |||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due March 2021 | Base rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||||
Senior secured term loan facility | Senior secured term loan facility due March 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loss on debt extinguishment | $ 5 | |||||||||
Senior secured term loan facility | Senior secured term loan facility due March 2018 | Interest expense, net | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amortization of debt issuance costs | $ 11 | |||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due July 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 2,780 | $ 1,000 | ||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due July 2022 | Base rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 2.00% | 2.75% | ||||||||
Senior secured term loan facility | Euro-denominated term loan due July 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | € 761 | € 311 | $ 342 | |||||||
Senior secured term loan facility | Senior secured term loan facility due July 2022 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 3.00% | 3.75% | 3.00% | |||||||
Senior secured term loan facility | Senior secured term loan facility due July 2022 | Base rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 2.00% | |||||||||
Senior secured term loan facility | Senior secured term loan due September 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loss on debt extinguishment | $ 4 | |||||||||
Senior secured term loan facility | Senior secured term loan due September 2018 | Interest expense, net | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amortization of debt issuance costs | $ 4 |
Borrowings - Senior Secured T67
Borrowings - Senior Secured Term Loan Facility Due March 2021 and July 2022 (Details) € in Millions, $ in Millions | Dec. 05, 2016USD ($) | Oct. 14, 2016USD ($) | Jun. 02, 2016EUR (€) | Apr. 13, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 05, 2016EUR (€) | Dec. 05, 2016USD ($) | Oct. 14, 2016EUR (€) | Oct. 14, 2016USD ($) | Jun. 02, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Loss on debt extinguishment | $ 70 | $ 1,068 | $ 274 | |||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due March 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | $ 3,700 | $ 4,270 | ||||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due March 2021 | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 4.00% | |||||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due March 2021 | Base rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due March 2021 | Base rate | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 2.00% | |||||||||||
Senior secured term loan facility | Euro-denominated term loan due March 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | € | € 154 | |||||||||||
Senior secured term loan facility | Senior secured term loan facility due March 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on debt extinguishment | $ 3 | $ 6 | ||||||||||
Senior secured term loan facility | Senior secured term loan facility due March 2021 | Interest expense, net | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amortization of debt issuance costs | $ 4 | $ 6 | ||||||||||
Senior secured term loan facility | Senior secured term loan facility due March 2021 | LIBOR | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||||||
Senior secured term loan facility | Senior secured term loan facility due March 2021 | Base rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||||||
Senior secured term loan facility | Senior secured term loan facility due March 2021 | Euro LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 4.00% | |||||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due July 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | $ 2,780 | $ 1,000 | ||||||||||
Senior secured term loan facility | U.S. dollar-denominated term loan due July 2022 | Base rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 2.00% | 2.75% | ||||||||||
Senior secured term loan facility | Euro-denominated term loan due July 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount | € 311 | € 761 | $ 342 | |||||||||
Senior secured term loan facility | Senior secured term loan facility due July 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Decrease in interest rate if covenant is met | 0.25% | |||||||||||
Senior secured term loan facility | Senior secured term loan facility due July 2022 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt covenant, EBITDA Ratio | 3.5 | |||||||||||
Senior secured term loan facility | Senior secured term loan facility due July 2022 | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 3.00% | 3.75% | 3.00% | |||||||||
Senior secured term loan facility | Senior secured term loan facility due July 2022 | Base rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 2.00% | |||||||||||
Senior secured term loan facility | Senior secured term loan facility due July 2022 | Euro LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (percent) | 3.25% | 3.25% | ||||||||||
Senior secured term loan facility | Senior secured term loan facility due March 2021 and July 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on debt extinguishment | $ 6 | |||||||||||
Principal payments | $ 700 |
Borrowings - 6.75% Senior Secur
Borrowings - 6.75% Senior Secured First Lien Notes (Details) | Dec. 31, 2016 |
Senior secured term loan facility | 6.75% Senior secured first lien notes due 2020 | |
Debt Instrument [Line Items] | |
Interest rate (percent) | 6.75% |
Borrowings - 5.375% Senior Secu
Borrowings - 5.375% Senior Secured First Lien Notes (Details) - Senior secured term loan facility - 5.375% Senior secured first lien notes - USD ($) $ in Billions | Aug. 11, 2015 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.375% | 5.375% |
Principal amount | $ 1.2 | |
Redemption price (as a percent) | 100.00% |
Borrowings - 5.0% Senior Secure
Borrowings - 5.0% Senior Secured First Lien Notes (Details) - USD ($) | Mar. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 25, 2015 |
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | $ 70,000,000 | $ 1,068,000,000 | $ 274,000,000 | ||
Senior secured term loan facility | 5.0% Senior secured first lien notes due 2024 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (percent) | 5.00% | 5.00% | 5.00% | ||
Principal amount | $ 900,000,000 | ||||
Loss on debt extinguishment | $ 3,000,000 | ||||
Redemption price (as a percent) | 100.00% | ||||
Senior secured term loan facility | 5.0% Senior secured first lien notes due 2024 | Interest expense, net | |||||
Debt Instrument [Line Items] | |||||
Amortization of debt issuance costs | $ 3,000,000 |
Borrowings - 5.75% Senior Secur
Borrowings - 5.75% Senior Secured Second Lien Notes (Details) - Senior secured term loan facility - USD ($) | Mar. 29, 2016 | Nov. 25, 2015 | Dec. 31, 2016 | Jan. 15, 2016 |
5.75% Senior secured second lien notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 5.75% | 5.75% | ||
Principal amount | $ 2,200,000,000 | |||
Redemption price (as a percent) | 100.00% | |||
5.0% Senior secured first lien notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 5.00% | 5.00% | 5.00% | |
Principal amount | $ 900,000,000 | |||
Redemption price (as a percent) | 100.00% | |||
8.75% Senior secured second lien notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 8.75% | 8.75% | 8.75% | |
Redeemed debt | $ 250,000,000 | |||
8.25% Senior secured second lien notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 8.25% |
Borrowings - 7.0% Senior Unsecu
Borrowings - 7.0% Senior Unsecured Notes Due 2023 (Details) - Senior secured term loan facility - 7.0% Senior unsecured notes due 2023 | Nov. 18, 2015USD ($) |
Debt Instrument [Line Items] | |
Interest rate (percent) | 7.00% |
Principal amount | $ 3,400,000,000 |
Redemption price (as a percent) | 100.00% |
Borrowings - Accounts Receivabl
Borrowings - Accounts Receivable Securitization Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Borrowings | $ 242 | $ 43 |
Accounts receivable securitized loan | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 160 | $ 0 |
Weighted-average interest rate | 2.49% | |
Collateral Pledged | First Data Receivables, LLC | ||
Debt Instrument [Line Items] | ||
Receivables transferred to FDR as part of securitization program | $ 312 |
Borrowings - Maturities (Detail
Borrowings - Maturities (Details) $ in Millions | Dec. 31, 2016USD ($) |
Par Amount | |
2,017 | $ 116 |
2,018 | 89 |
2,019 | 60 |
2,020 | 1,443 |
2,021 | 4,390 |
Thereafter | 12,303 |
Total | $ 18,401 |
Borrowings - Guarantees and Cov
Borrowings - Guarantees and Covenants (Details) - Senior secured term loan facility | Dec. 31, 2016 | Mar. 29, 2016 | Nov. 25, 2015 | Aug. 11, 2015 |
6.75% Senior secured first lien notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 6.75% | |||
5.375% Senior secured first lien notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 5.375% | 5.375% | ||
5.0% Senior secured first lien notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 5.00% | 5.00% | 5.00% |
Goodwill and Other Intangible76
Goodwill and Other Intangibles - Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill | $ 20,086 | $ 20,257 |
Beginning balance, Accumulated impairment losses | (3,240) | (3,240) |
Beginning balance, Net goodwill | 16,846 | 17,017 |
Acquisitions | 5 | 55 |
Dispositions | (25) | |
Other adjustments (primarily foreign currency) | (130) | (226) |
Ending balance, Goodwill | 19,936 | 20,086 |
Ending balance, Accumulated impairment losses | (3,240) | (3,240) |
Ending balance, Net goodwill | 16,696 | 16,846 |
Divested Operations | ||
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill | 181 | 181 |
Beginning balance, Accumulated impairment losses | (181) | (181) |
Beginning balance, Net goodwill | 0 | 0 |
Acquisitions | 0 | 0 |
Dispositions | 0 | |
Other adjustments (primarily foreign currency) | 0 | 0 |
Ending balance, Goodwill | 181 | 181 |
Ending balance, Accumulated impairment losses | (181) | (181) |
Ending balance, Net goodwill | 0 | 0 |
Operating Segments | Global Business Solutions | ||
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill | 15,567 | 15,712 |
Beginning balance, Accumulated impairment losses | (1,363) | (1,363) |
Beginning balance, Net goodwill | 14,204 | 14,349 |
Acquisitions | 5 | 9 |
Dispositions | (25) | |
Other adjustments (primarily foreign currency) | (42) | (154) |
Ending balance, Goodwill | 15,505 | 15,567 |
Ending balance, Accumulated impairment losses | (1,363) | (1,363) |
Ending balance, Net goodwill | 14,142 | 14,204 |
Operating Segments | Global Financial Solutions | ||
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill | 2,054 | 2,126 |
Beginning balance, Accumulated impairment losses | (683) | (683) |
Beginning balance, Net goodwill | 1,371 | 1,443 |
Acquisitions | 0 | 0 |
Dispositions | 0 | |
Other adjustments (primarily foreign currency) | (88) | (72) |
Ending balance, Goodwill | 1,966 | 2,054 |
Ending balance, Accumulated impairment losses | (683) | (683) |
Ending balance, Net goodwill | 1,283 | 1,371 |
Operating Segments | Network & Security Solutions | ||
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill | 2,284 | 2,238 |
Beginning balance, Accumulated impairment losses | (1,013) | (1,013) |
Beginning balance, Net goodwill | 1,271 | 1,225 |
Acquisitions | 0 | 46 |
Dispositions | 0 | |
Other adjustments (primarily foreign currency) | 0 | 0 |
Ending balance, Goodwill | 2,284 | 2,284 |
Ending balance, Accumulated impairment losses | (1,013) | (1,013) |
Ending balance, Net goodwill | $ 1,271 | $ 1,271 |
Goodwill and Other Intangible77
Goodwill and Other Intangibles - Intangible Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible amortization expense | $ 761 | $ 843 | $ 877 |
Goodwill and Other Intangible78
Goodwill and Other Intangibles - Narratives (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Carrying value of trade name | $ 604 | $ 604 |
Goodwill and Other Intangible79
Goodwill and Other Intangibles - Components of Other Intangibles (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 7,399 | $ 7,435 |
Accumulated Amortization | (5,660) | (5,299) |
Net of Accumulated Amortization | 1,739 | 2,136 |
Conversion costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 248 | 218 |
Accumulated Amortization | (109) | (102) |
Net of Accumulated Amortization | 139 | 116 |
Contract costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 306 | 280 |
Accumulated Amortization | (149) | (123) |
Net of Accumulated Amortization | 157 | 157 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,236 | 2,019 |
Accumulated Amortization | (1,726) | (1,547) |
Net of Accumulated Amortization | 510 | 472 |
Other, including trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,375 | 1,400 |
Accumulated Amortization | (381) | (362) |
Net of Accumulated Amortization | 994 | 1,038 |
Total other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,165 | 3,917 |
Accumulated Amortization | (2,365) | (2,134) |
Net of Accumulated Amortization | $ 1,800 | $ 1,783 |
Goodwill and Other Intangible80
Goodwill and Other Intangibles - Estimated Future Aggregate Amortization Expense (Details) $ in Millions | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 629 |
2,018 | 560 |
2,019 | 475 |
2,020 | 393 |
2,021 | $ 276 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narratives (Details) $ in Millions | Oct. 15, 2015shares | Sep. 28, 2015USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Stock compensation plans | |||||
Number of shares authorized | shares | 71,000,000 | ||||
Unrecognized compensation expense, related to non-vested awards | $ 120 | ||||
Vesting period (years) | 5 years | ||||
Employee stock purchase plan | |||||
Stock compensation plans | |||||
Number of shares authorized | shares | 6,300,000 | ||||
Employee stock purchase plan, share price, percentage of market value | 95.00% | ||||
Stock option | |||||
Stock compensation plans | |||||
Unrecognized compensation expense, related to non-vested awards | $ 84 | ||||
Contractual term (years) | 10 years | ||||
Weighted-average period unrecognized compensation expense to be recognized | 2 years | ||||
Total intrinsic value of stock options exercised | $ 6 | $ 4 | |||
Restricted stock | |||||
Stock compensation plans | |||||
Unrecognized compensation expense, related to non-vested awards | $ 210 | ||||
Weighted-average period unrecognized compensation expense to be recognized | 1 year | ||||
Restricted stock awards and restricted stock units | |||||
Stock compensation plans | |||||
Total fair value of shares vested | $ 137 | $ 11 | |||
First Data Holdings | Stock option | |||||
Stock compensation plans | |||||
Total intrinsic value of stock options exercised | $ 2 | ||||
First Data Holdings | Restricted stock awards and restricted stock units | |||||
Stock compensation plans | |||||
Total fair value of shares vested | $ 15 | ||||
Time-based vesting | |||||
Stock compensation plans | |||||
Vesting rights percentage | 66.67% | ||||
Time-based vesting | Stock option | Minimum | |||||
Stock compensation plans | |||||
Vesting period (years) | 3 years | ||||
Time-based vesting | Stock option | Maximum | |||||
Stock compensation plans | |||||
Vesting period (years) | 5 years | ||||
Performance-based vesting | |||||
Stock compensation plans | |||||
Vesting rights percentage | 33.33% | ||||
Class A Common Stock | |||||
Stock compensation plans | |||||
Stock conversion ratio (percent) | 1 | ||||
Class A Common Stock | Performance-based vesting | |||||
Stock compensation plans | |||||
Share price to public offering (equal to or more than) | 2 | ||||
Number of consecutive trading days | 10 days |
Stock Compensation Plans - Sche
Stock Compensation Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 263 | $ 329 | $ 51 |
Executive officers | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 14 | 37 | |
IPO | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 52 | 254 | |
Cost of services | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 112 | 130 | 2 |
Selling, general, and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 151 | $ 199 | $ 49 |
Stock Compensation Plans - Sc83
Stock Compensation Plans - Schedule of Weighted-Average Assumptions for Estimating Fair Value of Stock Options Granted (Details) - Stock option - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (percent) | 2.08% | 1.87% | |
Dividend yield (percent) | 0.00% | 0.00% | |
Expected volatility (percent) | 41.33% | 55.15% | |
Expected term (in years) | 7 years | 7 years | |
Fair value of stock (USD per share) | $ 12.62 | $ 15.53 | |
Fair value of options (USD per share) | $ 5.33 | $ 8.68 | |
First Data Holdings | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (percent) | 2.24% | ||
Dividend yield (percent) | 0.00% | ||
Expected volatility (percent) | 50.45% | ||
Expected term (in years) | 7 years | ||
Fair value of stock (USD per share) | $ 12.64 | ||
Fair value of options (USD per share) | $ 6.76 |
- Summary of Stock Option Activ
- Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Options | ||
Beginning balance (shares) | 41,000,000 | |
Granted (shares) | 2,000,000 | 11,000,000 |
Exercised (shares) | (2,000,000) | (1,000,000) |
Canceled/Forfeited (shares) | (2,000,000) | (1,000,000) |
Ending balance (shares) | 39,000,000 | 41,000,000 |
Options exercisable (shares) | 22,000,000 | |
Weighted-Average Exercise Price | ||
Beginning balance (USD per share) | $ 11.94 | |
Granted (USD per share) | 12.62 | $ 15.53 |
Exercised (USD per share) | 9.86 | 9.86 |
Canceled/Forfeited (USD per share) | 15.39 | 11.25 |
Ending balance (USD per share) | 12 | $ 11.94 |
Options exercisable (USD per share) | $ 10.78 | |
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value | ||
Weighted average remaining contractual term, outstanding (years) | 6 years | 7 years |
Weighted average remaining contractual term, options exercisable (years) | 5 years | |
Aggregate intrinsic value, outstanding | $ 98 | $ 166 |
Aggregate intrinsic value, options exercisable | $ 76 | |
Number of outstanding options subject to market conditions (shares) | 2,000,000 | |
Number of exercisable options subject to market conditions (shares) | 0 | |
First Data Holdings | ||
Options | ||
Beginning balance (shares) | 32,000,000 | |
Weighted-Average Exercise Price | ||
Beginning balance (USD per share) | $ 10.75 |
Stock Compensation Plans - Summ
Stock Compensation Plans - Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details) - Restricted stock awards and restricted stock units - $ / shares shares in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Awards/Units | ||
Non-vested at beginning of period (in shares) | 32 | |
Granted (in shares) | 18 | 19 |
Vested (in shares) | (10) | (1) |
Canceled/Forfeited (in shares) | (6) | (1) |
Non-vested at end of period (in shares) | 34 | 32 |
Weighted-Average Grant-Date Fair Value | ||
Non-vested at beginning of period (USD per share) | $ 14.30 | |
Granted (USD per share) | 12.49 | $ 14.96 |
Vested (USD per share) | 13.91 | 15.04 |
Canceled / Forfeited (USD per share) | 13.74 | 14.02 |
Non-vested at end of period (USD per share) | $ 13.59 | $ 14.30 |
Number of shares included in non-vested subject to market conditions (shares) | 1 | |
First Data Holdings | ||
Awards/Units | ||
Non-vested at beginning of period (in shares) | 15 | |
Weighted-Average Grant-Date Fair Value | ||
Non-vested at beginning of period (USD per share) | $ 11.98 |
Stockholders' Equity and Rede86
Stockholders' Equity and Redeemable Noncontrolling Interest - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | ||
Cash dividends paid | $ 4 | $ 686 |
Stockholders' Equity and Rede87
Stockholders' Equity and Redeemable Noncontrolling Interest - Schedule of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | $ 3,660 | $ 2,530 | [1] | $ 1,575 | [1] |
Total other comprehensive loss, net of tax | (112) | (300) | (351) | ||
Ending Balance | 4,131 | 3,660 | 2,530 | [1] | |
AOCI attributable to parent | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | (1,219) | (929) | [1] | (589) | [1] |
Pretax Gain (Loss) Amount | (112) | (277) | (340) | ||
Tax (Benefit) Expense | (5) | 13 | 0 | ||
Total other comprehensive loss, net of tax | (107) | (290) | (340) | ||
Ending Balance | (1,326) | (1,219) | (929) | [1] | |
Foreign currency translation adjustment | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | (1,081) | (801) | (504) | ||
Pretax Gain (Loss) Amount | (149) | (261) | (298) | ||
Tax (Benefit) Expense | (1) | 19 | (1) | ||
Total other comprehensive loss, net of tax | (148) | (280) | (297) | ||
Ending Balance | (1,229) | (1,081) | (801) | ||
Pension liability adjustments | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | (136) | (123) | (87) | ||
Pretax Gain (Loss) Amount | 34 | (19) | (35) | ||
Tax (Benefit) Expense | (4) | (6) | 1 | ||
Total other comprehensive loss, net of tax | 38 | (13) | (36) | ||
Ending Balance | (98) | (136) | (123) | ||
Amount reclassified out of OCI | 10 | ||||
Derivative instruments | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Pretax Gain (Loss) Amount | 3 | ||||
Tax (Benefit) Expense | 0 | ||||
Total other comprehensive loss, net of tax | 3 | ||||
Ending Balance | 3 | 0 | |||
Marketable securities | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | (2) | (5) | 2 | ||
Pretax Gain (Loss) Amount | 0 | 3 | (7) | ||
Tax (Benefit) Expense | 0 | 0 | 0 | ||
Total other comprehensive loss, net of tax | 0 | 3 | (7) | ||
Ending Balance | (2) | (2) | (5) | ||
Foreign currency translation adjustment related to noncontrolling interests | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total other comprehensive loss, net of tax | $ (5) | $ (10) | $ (11) | ||
[1] | 1,000 shares relates to common stock without a class that was eliminated upon the merger with First Data Holdings. |
Stockholders' Equity and Rede88
Stockholders' Equity and Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Redeemable Noncontrolling Interest | |||
Balance at beginning of period | $ 77 | $ 70 | $ 69 |
Distributions | (33) | (35) | (35) |
Share of income | 33 | 34 | 34 |
Adjustment to redemption value of redeemable noncontrolling interest | (4) | 8 | 2 |
Balance at end of period | $ 73 | $ 77 | $ 70 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2015 | |
Numerator: | ||||||||||||
Total segment EBITDA | $ 192 | $ 132 | $ 152 | $ (56) | $ (1,217) | $ (126) | $ (26) | $ (112) | $ 420 | $ (1,481) | $ (458) | |
Denominator: | ||||||||||||
Shares used in computing net income (loss) per share, basic (in shares) | 901,671,872 | 192,263,793 | 1,000 | |||||||||
Effect of dilutive securities (in shares) | 19,329,991 | 0 | 0 | |||||||||
Total dilutive securities (in shares) | 921,001,863 | 192,263,793 | 1,000 | |||||||||
Basic net income (loss) per share (USD per share) | $ 0.21 | $ 0.15 | $ 0.17 | $ (0.06) | $ 0.47 | $ (7.70) | $ (458,000) | |||||
Diluted net income (loss) per share (USD per share) | $ 0.21 | $ 0.14 | $ 0.17 | $ (0.06) | $ 0.46 | $ (7.70) | $ (458,000) | |||||
Anti-dilutive shares excluded from diluted net income (loss) per share (in shares) | 20,967,794 | 26,752,706 | 0 | |||||||||
Shares outstanding prior to merger (in shares) | 1,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Operating Segment Results (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues: | ||||||||||||
Transaction and processing service fees | [1] | $ 6,600 | $ 6,597 | $ 6,510 | ||||||||
Product sales and other | [1] | 1,239 | 1,167 | 1,038 | ||||||||
Total revenues | $ 2,943 | $ 2,936 | $ 2,928 | $ 2,777 | $ 2,964 | $ 2,920 | $ 2,872 | $ 2,695 | 11,584 | 11,451 | 11,152 | |
Depreciation and amortization | 949 | 1,022 | 1,056 | |||||||||
Segment EBITDA | 2,892 | 2,730 | 2,663 | |||||||||
Equity earnings in affiliates | 260 | 239 | 220 | |||||||||
Operating segments | ||||||||||||
Revenues: | ||||||||||||
Total revenues | 7,141 | 7,048 | 6,904 | |||||||||
Operating segments | Global Business Solutions | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | 3,201 | 3,209 | 3,250 | |||||||||
Product sales and other | 826 | 845 | 766 | |||||||||
Equity earnings in affiliates | 36 | 35 | 30 | |||||||||
Total revenues | 4,063 | 4,089 | 4,046 | |||||||||
Depreciation and amortization | 435 | 490 | 518 | |||||||||
Segment EBITDA | 1,725 | 1,681 | 1,687 | |||||||||
Other operating expenses and other income (expense) excluding divestitures | 28 | 26 | 38 | |||||||||
Equity earnings in affiliates | 260 | 239 | 216 | |||||||||
Operating segments | Global Financial Solutions | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | 1,372 | 1,323 | 1,313 | |||||||||
Product sales and other | 221 | 172 | 176 | |||||||||
Equity earnings in affiliates | 0 | 0 | 0 | |||||||||
Total revenues | 1,593 | 1,495 | 1,489 | |||||||||
Depreciation and amortization | 357 | 393 | 401 | |||||||||
Segment EBITDA | 646 | 550 | 529 | |||||||||
Other operating expenses and other income (expense) excluding divestitures | (4) | (16) | (3) | |||||||||
Equity earnings in affiliates | 0 | 0 | 0 | |||||||||
Operating segments | Network & Security Solutions | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | 1,309 | 1,322 | 1,277 | |||||||||
Product sales and other | 176 | 142 | 92 | |||||||||
Equity earnings in affiliates | 0 | 0 | 0 | |||||||||
Total revenues | 1,485 | 1,464 | 1,369 | |||||||||
Depreciation and amortization | 115 | 91 | 90 | |||||||||
Segment EBITDA | 666 | 639 | 608 | |||||||||
Other operating expenses and other income (expense) excluding divestitures | (7) | (3) | 96 | |||||||||
Equity earnings in affiliates | 0 | 0 | 4 | |||||||||
Corporate | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | 0 | 0 | 0 | |||||||||
Product sales and other | 0 | 0 | 0 | |||||||||
Equity earnings in affiliates | 0 | 0 | 0 | |||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Depreciation and amortization | 14 | 25 | 23 | |||||||||
Segment EBITDA | (145) | (140) | (161) | |||||||||
Other operating expenses and other income (expense) excluding divestitures | (28) | (36) | 15 | |||||||||
Equity earnings in affiliates | 0 | 0 | 0 | |||||||||
Operating segments and corporate | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | 5,882 | 5,854 | 5,840 | |||||||||
Product sales and other | 1,223 | 1,159 | 1,034 | |||||||||
Equity earnings in affiliates | 36 | 35 | 30 | |||||||||
Total revenues | 7,141 | 7,048 | 6,904 | |||||||||
Depreciation and amortization | 921 | 999 | 1,032 | |||||||||
Segment EBITDA | 2,892 | 2,730 | 2,663 | |||||||||
Other operating expenses and other income (expense) excluding divestitures | (11) | (29) | 146 | |||||||||
Equity earnings in affiliates | $ 260 | $ 239 | $ 220 | |||||||||
[1] | Includes processing fees, administrative service fees, and other fees charged to merchant alliances accounted for under the equity method of $198 million, $205 million, and $181 million for the years ended December 31, 2016, 2015, and 2014, respectively. |
Segment Information - Schedul92
Segment Information - Schedule of Reconciliation of Reportable Segment Amounts to the Consolidated Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 2,943 | $ 2,936 | $ 2,928 | $ 2,777 | $ 2,964 | $ 2,920 | $ 2,872 | $ 2,695 | $ 11,584 | $ 11,451 | $ 11,152 |
Adjustments: | |||||||||||
Reimbursable debit network fees, postage, and other | (3,745) | (3,687) | (3,604) | ||||||||
Net (loss) income attributable to First Data Corporation | $ 192 | $ 132 | $ 152 | $ (56) | $ (1,217) | $ (126) | $ (26) | $ (112) | 420 | (1,481) | (458) |
Adjustments: | |||||||||||
Depreciation and amortization | 949 | 1,022 | 1,056 | ||||||||
Interest expense, net | 1,068 | 1,537 | 1,728 | ||||||||
Loss on debt extinguishment | 70 | 1,068 | 274 | ||||||||
Income tax expense | 81 | 101 | 82 | ||||||||
Stock-based compensation | 263 | 329 | 51 | ||||||||
Total segment EBITDA | 2,892 | 2,730 | 2,663 | ||||||||
Operating segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 7,141 | 7,048 | 6,904 | ||||||||
Adjustments | |||||||||||
Adjustments: | |||||||||||
Non wholly owned entities | (80) | (74) | (57) | ||||||||
ISOs commission expense | (618) | (642) | (587) | ||||||||
Reimbursable debit network fees, postage, and other | (3,745) | (3,687) | (3,604) | ||||||||
Adjustments: | |||||||||||
Non wholly owned entities | (30) | (26) | (24) | ||||||||
Depreciation and amortization | 949 | 1,022 | 1,056 | ||||||||
Interest expense, net | 1,068 | 1,537 | 1,728 | ||||||||
Loss on debt extinguishment | 70 | 1,068 | 274 | ||||||||
Other items | 71 | 180 | (45) | ||||||||
Income tax expense | 81 | 101 | 82 | ||||||||
Stock-based compensation | $ 263 | $ 329 | $ 50 |
Segment Information - Schedul93
Segment Information - Schedule of Reconciliation of Reportable Segment Depreciation and Amortization Amounts to the Consolidated Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of reportable segment depreciation and amortization amounts to the consolidated balances | |||
Total depreciation and amortization per consolidated statements of operations | $ 949 | $ 1,022 | $ 1,056 |
Amortization of initial payments for new contracts | 65 | 51 | 45 |
Total consolidated depreciation and amortization per consolidated statements of cash flows | 1,061 | 1,133 | 1,163 |
Amortization of equity method investment | (47) | (60) | (62) |
Amortization of initial payments for new contracts | (65) | (51) | (45) |
Operating segments and corporate | |||
Reconciliation of reportable segment depreciation and amortization amounts to the consolidated balances | |||
Total depreciation and amortization per consolidated statements of operations | 921 | 999 | 1,032 |
Adjustments | |||
Reconciliation of reportable segment depreciation and amortization amounts to the consolidated balances | |||
Total depreciation and amortization per consolidated statements of operations | 949 | 1,022 | 1,056 |
Adjustments for non wholly owned entities | 75 | 83 | 86 |
Amortization of initial payments for new contracts | 65 | 51 | 45 |
Amortization of equity method investment | (47) | (60) | (62) |
Amortization of initial payments for new contracts | $ (65) | $ (51) | $ (45) |
Segment Information - Schedul94
Segment Information - Schedule of Information Concerning Principal Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Information concerning principal geographic areas | |||||||||||
Total revenues | $ 2,943 | $ 2,936 | $ 2,928 | $ 2,777 | $ 2,964 | $ 2,920 | $ 2,872 | $ 2,695 | $ 11,584 | $ 11,451 | $ 11,152 |
Long-Lived Assets | 21,118 | 21,716 | 21,118 | 21,716 | 22,296 | ||||||
United States | |||||||||||
Information concerning principal geographic areas | |||||||||||
Total revenues | 9,890 | 9,795 | 9,428 | ||||||||
Long-Lived Assets | 18,846 | 19,400 | 18,846 | 19,400 | 19,708 | ||||||
International | |||||||||||
Information concerning principal geographic areas | |||||||||||
Total revenues | 1,694 | 1,656 | 1,724 | ||||||||
Long-Lived Assets | $ 2,272 | $ 2,316 | $ 2,272 | $ 2,316 | $ 2,588 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Pretax (Loss) Income, (Benefit) Provision for Income Taxes and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of pretax income (loss): | |||
Domestic | $ 492 | $ (1,332) | $ (378) |
Foreign | 249 | 165 | 195 |
Total pretax (loss) income | 741 | (1,167) | (183) |
Provision for income taxes: | |||
Federal | 20 | 7 | 16 |
State and local | 20 | 14 | 22 |
Foreign | 41 | 80 | 44 |
Income tax expense | $ 81 | $ 101 | $ 82 |
Effective income tax rate (percent) | 11.00% | (9.00%) | (45.00%) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rates Differ from Statutory Rates (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate (percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit (percent) | 1.00% | 3.00% | (1.00%) |
Nontaxable income from noncontrolling interests (percent) | (11.00%) | 6.00% | 37.00% |
Impact of foreign operations (percent) | 13.00% | 0.00% | (9.00%) |
Tax effects of foreign exchange gains/losses (percent) | 0.00% | (1.00%) | (6.00%) |
Valuation allowances (percent) | (35.00%) | (54.00%) | (103.00%) |
Liability for unrecognized tax benefits (percent) | 0.00% | (2.00%) | 12.00% |
Prior year adjustments (percent) | 3.00% | 4.00% | (7.00%) |
Nondeductible bad debts (percent) | 0.00% | 0.00% | (3.00%) |
Equity Compensation (percent) | 5.00% | 0.00% | 0.00% |
Effective tax rate (percent) | 11.00% | (9.00%) | (45.00%) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provisions (Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 22 | $ 5 | $ 0 |
State and local | 24 | 23 | 39 |
Foreign | 73 | 80 | 61 |
Current income tax expense (benefit) | 119 | 108 | 100 |
Deferred: | |||
Federal | (2) | 2 | 17 |
State and local | (4) | (9) | (18) |
Foreign | (32) | 0 | (17) |
Deferred income tax expense (benefit) | (38) | (7) | (18) |
Income tax expense | $ 81 | $ 101 | $ 82 |
Income Taxes - Schedule of Prin
Income Taxes - Schedule of Principal Components of Deferred Tax Items (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets related to: | ||
Reserves and other accrued expenses | $ 0 | $ 90 |
Pension obligations | 0 | 6 |
Employee related liabilities | 176 | 171 |
Deferred revenues | 34 | 44 |
Net operating losses and tax credit carryforwards | 3,122 | 3,116 |
U.S. foreign tax credits on undistributed earnings | 252 | 330 |
Foreign exchange loss | 33 | 32 |
Total deferred tax assets | 3,617 | 3,789 |
Valuation allowance | (2,520) | (2,694) |
Realizable deferred tax assets | 1,097 | 1,095 |
Deferred tax liabilities related to: | ||
Property, equipment, and intangibles | (969) | (1,019) |
Reserves and other accrued expenses | (49) | 0 |
Pension obligations | (4) | 0 |
Investment in affiliates and other | (217) | (306) |
U.S. tax on foreign undistributed earnings | (252) | (192) |
Total deferred tax liabilities | (1,491) | (1,517) |
Net deferred tax liabilities | $ (394) | $ (422) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities Included in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 15 | $ 9 |
Deferred tax liabilities | (409) | (431) |
Net deferred tax liabilities | $ (394) | $ (422) |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) $ in Millions | 1 Months Ended | 12 Months Ended | 51 Months Ended | |||
Oct. 31, 2012USD ($) | Dec. 31, 2016USD ($)subsidiary | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Income Tax Disclosure [Abstract] | ||||||
Valuation allowance | $ 2,520 | $ 2,520 | $ 2,694 | |||
Decrease to valuation allowance | 174 | |||||
Unrecognized tax benefits on state income taxes | 21 | 21 | ||||
Unrecognized tax benefits that would affect the effective tax rate | $ 133 | 133 | 136 | $ 126 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Minimum number of subsidiaries which file income tax returns | subsidiary | 1 | |||||
Uncertain income tax liabilities | $ 240 | 240 | $ 249 | $ 236 | $ 279 | |
Western Union Company | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Income taxes payable | 123 | 123 | ||||
Uncertain income tax liabilities | 3 | 3 | ||||
Federal | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Interest due (pretax) | 26 | |||||
Total taxes allegedly due | $ 59 | |||||
Settlement with Taxing Authority | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Reasonably possible that liability for unrecognized tax benefits may decrease | $ 123 | 123 | ||||
Settlement with Taxing Authority | Federal | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Examination tax due | 40 | |||||
Interest due (pretax) | 23 | |||||
Disputed Tax Examination with Taxing Authority | Federal | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Interest due (pretax) | 15 | |||||
Total taxes allegedly due | 40 | |||||
Disputed Tax Examination with Taxing Authority | Federal | Western Union Company | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Interest due (pretax) | $ 11 | |||||
Total taxes allegedly due | $ 19 |
Income Taxes - Schedule of Appr
Income Taxes - Schedule of Approximate Amounts of Federal, State and Foreign Net Operating Loss Carryforwards and Foreign Tax Credit, General Business Credit and Minimum Tax credit Carryforwards (Details) $ in Millions | Dec. 31, 2016USD ($) |
General Business Tax Credit | |
Operating Loss Carryforwards and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | $ 12 |
Minimum Tax Credit | |
Operating Loss Carryforwards and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 18 |
Federal | |
Operating Loss Carryforwards and Tax Credit Carryforwards [Line Items] | |
Net operating loss carryforwards | 4,766 |
State | |
Operating Loss Carryforwards and Tax Credit Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,893 |
Foreign | |
Operating Loss Carryforwards and Tax Credit Carryforwards [Line Items] | |
Net operating loss carryforwards | 3,079 |
Tax credit carryforwards | 289 |
Operating loss carryforwards | 66 |
Operating loss carryforwards with an indefinite life | $ 3,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of the Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 249 | $ 236 | $ 279 |
Increases for tax positions of prior years | 2 | 25 | 3 |
Decreases for tax positions of prior years | (1) | (4) | (29) |
Increases for tax positions related to the current period | 0 | 1 | 1 |
Decreases for cash settlements with taxing authorities | (1) | (3) | (13) |
Decreases due to the lapse of the applicable statute of limitations | (9) | (6) | (5) |
Balance at end of period | $ 240 | $ 249 | $ 236 |
Income Taxes - Schedule of A103
Income Taxes - Schedule of Approximate Amounts Associated with Accrued Interest Expense and the Cumulative Accrued Interest and Penalties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current year accrued interest expense (net of related tax benefits) | $ 5 | $ 7 | $ 1 |
Cumulative accrued interest and penalties (net of related tax benefits) | $ 48 | $ 45 | $ 39 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Merchant Alliances | Accounts receivable | |||
Related party transactions | |||
Amount due from related party | $ 27 | $ 50 | |
Merchant Alliances | Accounts payable and accrued liabilities | |||
Related party transactions | |||
Amount due to related party | 7 | 5 | |
KKR and its affiliates | Management agreement | |||
Related party transactions | |||
Management fees | 98 | $ 20 | |
KCM | Extend maturities | |||
Related party transactions | |||
Payment to related party | $ 17 | 25 | $ 4 |
KCM | Placement agent | |||
Related party transactions | |||
Payment to related party | $ 19 |
Other Operating Expenses - Comp
Other Operating Expenses - Components of Other Operating Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring, net | $ 49 | $ 53 | $ 13 |
Pension settlement loss | 10 | 0 | 0 |
Other | 2 | 0 | 0 |
Other operating expenses | $ 61 | $ 53 | $ 13 |
Other Operating Expenses - Rest
Other Operating Expenses - Restructuring (Details) - Cost management initiative $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)facility | |
Restructuring Cost and Reserve [Line Items] | |
Anticipated restructuring costs | $ 103 |
Loss from sale of facilities | $ 13 |
Number of facilities sold | facility | 2 |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of Net Pretax Benefits (Charges), Incurred by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, net | $ (49) | $ (53) | $ (13) |
Operating segments | Global Business Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, net | (9) | (20) | 0 |
Operating segments | Global Financial Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, net | (10) | (11) | 1 |
Operating segments | Network & Security Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, net | (3) | (3) | (2) |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, net | $ (27) | $ (19) | $ (12) |
Other Operating Expenses - S108
Other Operating Expenses - Summary of Utilization of Restructuring Accruals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring, net | $ 49 | $ 53 | $ 13 |
Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Remaining accrual at the beginning of the period | 29 | 12 | |
Restructuring, net | 33 | 46 | |
Loss on sale of property and equipment, net | 0 | ||
Cash payments and other | (53) | (29) | |
Remaining accrual at the end of the period | 9 | 29 | 12 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Remaining accrual at the beginning of the period | 1 | 1 | |
Restructuring, net | 16 | 7 | |
Loss on sale of property and equipment, net | (13) | ||
Cash payments and other | (4) | (7) | |
Remaining accrual at the end of the period | $ 0 | $ 1 | $ 1 |
Other Operating Expenses - Pens
Other Operating Expenses - Pension Settlement Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Loss related to settlement | $ 10 | $ 0 | $ 0 |
U.S.-based pension fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Loss related to settlement | $ 10 |
Settlement Assets and Obliga110
Settlement Assets and Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Settlement assets: | ||
Cash and cash equivalents | $ 1,620,000,000 | $ 1,426,000,000 |
Investment securities | 0 | 1,000,000 |
Due from card associations, bank partners, and merchants | 13,175,000,000 | 6,723,000,000 |
Total settlement assets | 14,795,000,000 | 8,150,000,000 |
Settlement obligations: | ||
Payment instruments outstanding | 12,000,000 | 34,000,000 |
Card settlements due to merchants | 14,783,000,000 | 8,116,000,000 |
Total settlement obligations | 14,795,000,000 | $ 8,150,000,000 |
Net changes in settlement assets and obligations | $ 0 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Dispositions (Details) - USD ($) $ in Millions | Sep. 30, 2016 | May 29, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sale of business | $ (34) | $ 5 | $ 2 | ||
Proceeds from dispositions | $ 38 | $ 4 | $ 270 | ||
Dispositions by sale | Australian ATM | Global Business Solutions | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sale of business | $ (34) | ||||
Investments sold | 72 | ||||
Proceeds from dispositions | $ 38 | ||||
Dispositions by sale | Electronic Funds Source LLC | Network & Security Solutions | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Investments sold | $ 166 | ||||
Percentage of ownership sold (percent) | 30.00% | ||||
Proceeds from dispositions, net of expenses paid | $ 264 | ||||
Income tax provision | 7 | ||||
Dispositions by sale | Electronic Funds Source LLC | Network & Security Solutions | Other income (expense) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sale of business | $ 98 |
Acquisitions and Disposition112
Acquisitions and Dispositions - Acquisitions (Details) - TWI - Network & Security Solutions $ in Millions | Jun. 09, 2015USD ($) |
Business Acquisition [Line Items] | |
Cash payments in acquisition | $ 62 |
Contingent equity considerations | $ 3 |
Derivative Financial Instrum113
Derivative Financial Instruments - Schedule of Derivative Instruments (Details) € in Millions, £ in Millions, CAD in Millions, AUD in Millions, $ in Millions | Feb. 24, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016AUD | Dec. 31, 2016GBP (£) | Dec. 31, 2016CAD | Oct. 31, 2016USD ($) | Oct. 31, 2016AUD | Aug. 31, 2016USD ($) | Aug. 31, 2016GBP (£) | Aug. 31, 2016CAD | Jan. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015AUD | Dec. 31, 2015GBP (£) | Dec. 31, 2015CAD |
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Derivative asset subject to master netting agreements | $ 147 | $ 179 | |||||||||||||||
Derivative liability subject to master netting agreements | 51 | ||||||||||||||||
Net derivative asset | 128 | ||||||||||||||||
Interest rate contracts | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Assets | 147 | 179 | |||||||||||||||
Liabilities | 0 | (56) | |||||||||||||||
Derivatives designated as hedging instruments | Foreign exchange contracts | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Assets | 144 | 179 | |||||||||||||||
Liabilities | 0 | 0 | |||||||||||||||
AUD | Derivatives designated as hedging instruments | Foreign exchange contracts | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Notional Value | AUD | AUD 211 | AUD 260 | |||||||||||||||
Assets | 57 | 65 | |||||||||||||||
Liabilities | 0 | 0 | |||||||||||||||
Maturity of foreign exchange contracts, notional value | AUD | AUD 49 | ||||||||||||||||
Maturity of foreign exchange contracts, net settlement value | $ 8 | ||||||||||||||||
EUR | Derivatives designated as hedging instruments | Foreign exchange contracts | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Notional Value | € | € 0 | € 200 | |||||||||||||||
Assets | 0 | 51 | |||||||||||||||
Liabilities | 0 | 0 | |||||||||||||||
Maturity of foreign exchange contracts, net settlement value | $ 49 | ||||||||||||||||
GBP | Derivatives designated as hedging instruments | Foreign exchange contracts | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Notional Value | £ | £ 300 | £ 150 | £ 250 | ||||||||||||||
Assets | 78 | 39 | |||||||||||||||
Liabilities | 0 | 0 | |||||||||||||||
Maturity of foreign exchange contracts, notional value | £ | £ 100 | ||||||||||||||||
Maturity of foreign exchange contracts, net settlement value | $ 25 | ||||||||||||||||
CAD | Derivatives designated as hedging instruments | Foreign exchange contracts | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Notional Value | CAD | CAD 130 | CAD 95 | CAD 110 | ||||||||||||||
Assets | 9 | 24 | |||||||||||||||
Liabilities | 0 | 0 | |||||||||||||||
Maturity of foreign exchange contracts, notional value | CAD | CAD 75 | ||||||||||||||||
Maturity of foreign exchange contracts, net settlement value | $ 14 | ||||||||||||||||
USD | Derivatives designated as hedging instruments | Interest rate collar contracts | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Notional Value | 3,000 | 0 | |||||||||||||||
Assets | 3 | 0 | |||||||||||||||
Liabilities | 0 | 0 | |||||||||||||||
USD | Derivatives designated as hedging instruments | Interest rate collar contracts | Subsequent event | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Notional Value | $ 1,300 | ||||||||||||||||
USD | Derivatives not designated as hedging instruments | Interest rate contracts | |||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Notional Value | 0 | 5,000 | |||||||||||||||
Assets | 0 | 0 | |||||||||||||||
Liabilities | $ 0 | $ (56) |
Derivative Financial Instrum114
Derivative Financial Instruments - Schedule of The Effect of Derivative Instruments on the Consolidated Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives designated as hedging instruments | Interest Rate Contracts | Foreign Currency Translation Adjustment | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in the consolidated statements of comprehensive income (loss) (effective portion) | $ 0 | $ 0 | $ 0 |
Derivatives designated as hedging instruments | Interest Rate Contracts | Derivative Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in the consolidated statements of comprehensive income (loss) (effective portion) | 3 | 0 | 0 |
Derivatives designated as hedging instruments | Foreign Exchange Contracts | Foreign Currency Translation Adjustment | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in the consolidated statements of comprehensive income (loss) (effective portion) | 58 | 79 | 80 |
Derivatives designated as hedging instruments | Foreign Exchange Contracts | Derivative Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in the consolidated statements of comprehensive income (loss) (effective portion) | 0 | 0 | 0 |
Derivatives not designated as hedging instruments | Interest Rate Contracts | Other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) gain recognized in Other income in the consolidated statements of operations | (5) | (19) | (4) |
Derivatives not designated as hedging instruments | Foreign Exchange Contracts | Other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) gain recognized in Other income in the consolidated statements of operations | $ 0 | $ 2 | $ 4 |
Derivative Financial Instrum115
Derivative Financial Instruments - Summary of Activity in Other Comprehensive Income Related to Derivative Instruments Classified as Cash Flow Hedges and as a Net Investment Hedge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income Derivatives Qualifying as Hedges, Net of Tax [Roll Forward] | |||
Accumulated gain (loss) included in other comprehensive income (loss) at beginning of the period | $ (1,219) | ||
Increase in fair value of derivatives that qualify for hedge accounting, net of tax | (153) | $ (290) | $ (308) |
Accumulated gain included in other comprehensive income at end of the period | (1,326) | (1,219) | |
Fair value of derivatives that qualify for hedge accounting, tax | 23 | 30 | 31 |
Accumulated net gain (loss) from cash flow hedges | |||
Accumulated Other Comprehensive Income Derivatives Qualifying as Hedges, Net of Tax [Roll Forward] | |||
Accumulated gain (loss) included in other comprehensive income (loss) at beginning of the period | 86 | 37 | (12) |
Increase in fair value of derivatives that qualify for hedge accounting, net of tax | 38 | 49 | 49 |
Accumulated gain included in other comprehensive income at end of the period | $ 124 | $ 86 | $ 37 |
Commitments and Contingencies -
Commitments and Contingencies - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 79 | $ 78 | $ 77 |
Sublease amounts (less than) | 5 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Estimate of losses on returned checks | 0 | ||
Minimum | Patent infringement | |||
Loss Contingencies [Line Items] | |||
Estimate of losses on returned checks | 0 | ||
Minimum | Merchant customer matters | |||
Loss Contingencies [Line Items] | |||
Estimate of losses on returned checks | 0 | ||
Minimum | Other matters | |||
Loss Contingencies [Line Items] | |||
Estimate of losses on returned checks | 0 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Estimate of losses on returned checks | 80 | ||
Maximum | Patent infringement | |||
Loss Contingencies [Line Items] | |||
Estimate of losses on returned checks | 10 | ||
Maximum | Merchant customer matters | |||
Loss Contingencies [Line Items] | |||
Estimate of losses on returned checks | 40 | ||
Maximum | Other matters | |||
Loss Contingencies [Line Items] | |||
Estimate of losses on returned checks | 30 | ||
Letters of credit | |||
Loss Contingencies [Line Items] | |||
Letters of credit outstanding amount | $ 41 | $ 42 | |
Renewal option period (in years) | 1 year |
Commitments and Contingencie117
Commitments and Contingencies - Schedule of Future Minimum Aggregate Rental Commitments Due Under all Noncancelable Operating Leases, Net of Sublease Income (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 56 |
2,018 | 46 |
2,019 | 41 |
2,020 | 28 |
2,021 | 26 |
Thereafter | 96 |
Total | $ 293 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Aggregate Amounts Charged to Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Aggregate amounts charged to expense | $ 11 | $ 12 | $ 15 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Paid benefits | $ 39 | $ 41 | $ 33 |
Defined benefit pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributed cash to defined benefit plans | 19 | 12 | $ 15 |
Accumulated benefit obligation | $ 934 | $ 966 | |
Defined benefit pension plan | Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of asset allocations | 20.00% | ||
Defined benefit pension plan | Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of asset allocations | 80.00% | ||
Defined benefit pension plan | Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of asset allocations | 1.00% |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Funded status of the plans | $ 10 | $ (30) | |
Loss related to settlement | 10 | 0 | $ 0 |
U.K. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan benefit obligations | (713) | (715) | |
Fair value of plan assets | 808 | 783 | |
Net pension assets (liabilities) | 95 | 68 | |
U.S. and other foreign plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan benefit obligations | (222) | (252) | |
Fair value of plan assets | 137 | 154 | |
Net pension assets (liabilities) | (85) | $ (98) | |
Reduction in plan obligations | 30 | ||
Loss related to settlement | $ 10 |
Employee Benefit Plans - Sch121
Employee Benefit Plans - Schedule of Estimated Future benefit Payments, which Reflect Expected Future Service (Details) $ in Millions | Dec. 31, 2016USD ($) |
Compensation and Retirement Disclosure [Abstract] | |
2,017 | $ 35 |
2,018 | 37 |
2,019 | 39 |
2,020 | 39 |
2,021 | 40 |
2022-2026 | $ 217 |
Supplemental Financial Infor122
Supplemental Financial Information - Schedule of the Components of Other Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Investment gains | $ 35 | $ 0 | $ 100 |
Derivatives | (5) | (17) | 0 |
Divestitures | (34) | 5 | 2 |
Non-operating foreign currency gains | 19 | 41 | 59 |
Other miscellaneous income | 2 | 0 | 0 |
Other income | $ 17 | $ 29 | $ 161 |
Supplemental Financial Infor123
Supplemental Financial Information - Narrative (Details) € in Millions | Jun. 21, 2016EUR (€) | Jun. 21, 2016USD ($) | Dec. 31, 2014USD ($) | Jun. 21, 2016USD ($) |
Visa Europe | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from sale | € 24.2 | $ 27,000,000 | ||
Deferral period (in years) | 3 years | 3 years | ||
Deferred payment of cash proceeds | € 2.3 | $ 2,600,000 | ||
Visa Europe | Class A Common Stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Common stock equivalent | 19,000,000 | |||
Value of preferred stock convertible to common shares | $ 0 | |||
Preferred shares, valuation based on territory and transfer restriction, period (in years) | 12 years | 12 years | ||
Electronic Funds Source LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Minority interest percentage | 30.00% | |||
Pretax gain on sale of investments | $ 98,000,000 |
Supplemental Financial Infor124
Supplemental Financial Information - Schedule of Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid expenses and other current assets: | ||
Prepaid expenses | $ 168 | $ 139 |
Inventory | 77 | 128 |
Other | 115 | 114 |
Total Prepaid expenses and other current assets | 360 | 381 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 2,299 | 2,318 |
Less: Accumulated depreciation | (1,416) | (1,367) |
Total Property and equipment, net of accumulated depreciation | 883 | 951 |
Accounts payable and accrued liabilities: | ||
Accounts payable | 206 | 238 |
Accrued interest expense | 169 | 132 |
Other accrued expenses | 685 | 637 |
Other | 504 | 632 |
Total Accounts payable and accrued liabilities | 1,564 | 1,639 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 56 | 79 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 269 | 313 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 89 | 79 |
Equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,386 | 1,379 |
Equipment under capital lease | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 499 | $ 468 |
Investment in Affiliates - Narr
Investment in Affiliates - Narratives (Details) $ in Billions | 12 Months Ended | |
Dec. 31, 2016USD ($)affiliatestrategic_investmentmerchant_alliance | Dec. 31, 2015USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Number of affiliates accounted for under the equity method of accounting | affiliate | 10 | |
Number of merchant alliance affiliates accounted for under the equity method of accounting | 5 | |
Number of affiliates in related markets accounted for under the equity method of accounting | strategic_investment | 5 | |
Number of merchant alliance investments sold | 1 | |
Number of new merchant alliance added | 1 | |
Number of new strategic investment added | strategic_investment | 1 | |
Schedule of Investments [Line Items] | ||
Amount by which the total of the entities investments in affiliates exceeded its proportionate share of the investees' net assets | $ | $ 1 | $ 1 |
Unconsolidated Significant Subsidiary | ||
Schedule of Investments [Line Items] | ||
Equity earnings percentage (exceeds) | 20.00% |
Investment in Affiliates - Summ
Investment in Affiliates - Summary of Financial Information Related to the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Total current assets | $ 4,070 | $ 3,002 |
Total long-term assets | 84 | 55 |
Total assets | 4,154 | 3,057 |
Total current liabilities | 3,994 | 2,925 |
Total long-term liabilities | 9 | 16 |
Total liabilities | $ 4,003 | $ 2,941 |
Investment in Affiliates - S127
Investment in Affiliates - Summary of Unaudited Financial Information Related to the Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Net operating revenues | $ 1,434 | $ 1,424 | $ 1,357 |
Operating expenses | 666 | 666 | 638 |
Operating income | 768 | 758 | 719 |
Net income | 749 | 744 | 696 |
FDC equity earnings | $ 260 | $ 239 | $ 220 |
Investment in Affiliates - Sche
Investment in Affiliates - Schedule of Estimated Future Amortization Expense for Intangible Assets (Details) $ in Millions | Dec. 31, 2016USD ($) |
Equity Method Investments and Joint Ventures [Abstract] | |
2,017 | $ 43 |
2,018 | 29 |
2,019 | 4 |
Thereafter | $ 0 |
Selected Quarterly Financial129
Selected Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenues | $ 2,943 | $ 2,936 | $ 2,928 | $ 2,777 | $ 2,964 | $ 2,920 | $ 2,872 | $ 2,695 | $ 11,584 | $ 11,451 | $ 11,152 | |
Expenses | 2,463 | 2,482 | 2,498 | 2,539 | 2,865 | 2,518 | 2,463 | 2,435 | 9,982 | 10,281 | 9,714 | |
Operating (loss) profit | 480 | 454 | 430 | 238 | 99 | 402 | 409 | 260 | 1,602 | 1,170 | 1,438 | |
Net (loss) income | 251 | 200 | 215 | (6) | (1,163) | (75) | 33 | (63) | 660 | (1,268) | (265) | |
Net (loss) income attributable to First Data Corporation | $ 192 | $ 132 | $ 152 | $ (56) | $ (1,217) | $ (126) | $ (26) | $ (112) | $ 420 | $ (1,481) | $ (458) | |
Net (loss) income per share: | ||||||||||||
Basic (USD per share) | $ 0.21 | $ 0.15 | $ 0.17 | $ (0.06) | $ 0.47 | $ (7.70) | $ (458,000) | |||||
Diluted (USD per share) | $ 0.21 | $ 0.14 | $ 0.17 | $ (0.06) | $ 0.46 | $ (7.70) | $ (458,000) | |||||
Net loss per share, basic and diluted (USD per share) | $ (1.60) | $ (126,000) | $ (26,000) | $ (112,000) | ||||||||
Class of Stock [Line Items] | ||||||||||||
Shares outstanding used in net loss per share computation (in shares) | 1,000 | |||||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares outstanding used in net loss per share computation (in shares) | 763,000,000 | 1,000 | 1,000 | 1,000 | 763,000,000 |
Supplemental Guarantor Conde130
Supplemental Guarantor Condensed Consolidating Financial Statements - Narratives (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Guarantor Subsidiaries | |
Debt Instrument [Line Items] | |
Ownership percentage in guarantors | 100.00% |
Percentage of company's covenant EBITDA | 10.00% |
Guarantor Subsidiaries | Minimum | |
Debt Instrument [Line Items] | |
Ownership percentage in guarantors | 50.00% |
7.0% Senior unsecured notes due 2023 | |
Debt Instrument [Line Items] | |
Interest rate (percent) | 7.00% |
5.0% Senior secured first lien notes due 2024 | |
Debt Instrument [Line Items] | |
Interest rate (percent) | 5.00% |
5.375% Senior secured first lien notes | |
Debt Instrument [Line Items] | |
Interest rate (percent) | 5.375% |
6.75% Senior secured first lien notes due 2020 | |
Debt Instrument [Line Items] | |
Interest rate (percent) | 6.75% |
5.750% Senior secured second lien notes due 2024 | |
Debt Instrument [Line Items] | |
Interest rate (percent) | 5.75% |
Supplemental Guarantor Conde131
Supplemental Guarantor Condensed Consolidating Financial Statements - Schedule of the Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues: | ||||||||||||
Transaction and processing service fees | [1] | $ 6,600 | $ 6,597 | $ 6,510 | ||||||||
Product sales and other | [1] | 1,239 | 1,167 | 1,038 | ||||||||
Total revenues (excluding reimbursable items) | 7,839 | 7,764 | 7,548 | |||||||||
Reimbursable debit network fees, postage, and other | 3,745 | 3,687 | 3,604 | |||||||||
Total revenues | $ 2,943 | $ 2,936 | $ 2,928 | $ 2,777 | $ 2,964 | $ 2,920 | $ 2,872 | $ 2,695 | 11,584 | 11,451 | 11,152 | |
Expenses: | ||||||||||||
Cost of services (exclusive of items shown below) | 2,855 | 2,871 | 2,668 | |||||||||
Cost of products sold | 337 | 356 | 330 | |||||||||
Selling, general, and administrative | 2,035 | 2,292 | 2,043 | |||||||||
Depreciation and amortization | 949 | 1,022 | 1,056 | |||||||||
Other operating expenses | 61 | 53 | 13 | |||||||||
Total expenses (excluding reimbursable items) | 6,237 | 6,594 | 6,110 | |||||||||
Reimbursable debit network fees, postage, and other | 3,745 | 3,687 | 3,604 | |||||||||
Total expenses | 2,463 | 2,482 | 2,498 | 2,539 | 2,865 | 2,518 | 2,463 | 2,435 | 9,982 | 10,281 | 9,714 | |
Operating (loss) profit | 480 | 454 | 430 | 238 | 99 | 402 | 409 | 260 | 1,602 | 1,170 | 1,438 | |
Interest expense, net | (1,068) | (1,537) | (1,728) | |||||||||
Loss on debt extinguishment | (70) | (1,068) | (274) | |||||||||
Interest income (expense) from intercompany notes | 0 | 0 | 0 | |||||||||
Equity earnings from consolidated subsidiaries | 0 | 0 | 0 | |||||||||
Other income | 17 | 29 | 161 | |||||||||
Income (loss) before income taxes and equity earnings in affiliates | 481 | (1,406) | (403) | |||||||||
Income tax (benefit) expense | 81 | 101 | 82 | |||||||||
Equity earnings in affiliates | 260 | 239 | 220 | |||||||||
Net income (loss) | 251 | 200 | 215 | (6) | (1,163) | (75) | 33 | (63) | 660 | (1,268) | (265) | |
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest | 240 | 213 | 193 | |||||||||
Net income (loss) attributable to First Data Corporation | $ 192 | $ 132 | $ 152 | $ (56) | $ (1,217) | $ (126) | $ (26) | $ (112) | 420 | (1,481) | (458) | |
Comprehensive (loss) income | 548 | (1,568) | (616) | |||||||||
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest | 235 | 203 | 182 | |||||||||
Comprehensive income (loss) attributable to First Data Corporation | 313 | (1,771) | (798) | |||||||||
Reportable Legal Entities | FDC Parent Company | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | 0 | 0 | 0 | |||||||||
Product sales and other | 0 | 0 | 0 | |||||||||
Total revenues (excluding reimbursable items) | 0 | 0 | 0 | |||||||||
Reimbursable debit network fees, postage, and other | 0 | 0 | 0 | |||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Expenses: | ||||||||||||
Cost of services (exclusive of items shown below) | 0 | 0 | 0 | |||||||||
Cost of products sold | 0 | 0 | 0 | |||||||||
Selling, general, and administrative | 318 | 476 | 131 | |||||||||
Depreciation and amortization | 5 | 12 | 10 | |||||||||
Other operating expenses | 7 | 8 | 10 | |||||||||
Total expenses (excluding reimbursable items) | 330 | 496 | 151 | |||||||||
Reimbursable debit network fees, postage, and other | 0 | 0 | 0 | |||||||||
Total expenses | 330 | 496 | 151 | |||||||||
Operating (loss) profit | (330) | (496) | (151) | |||||||||
Interest expense, net | (1,044) | (1,527) | (1,724) | |||||||||
Loss on debt extinguishment | (70) | (1,068) | (274) | |||||||||
Interest income (expense) from intercompany notes | 234 | 288 | 316 | |||||||||
Equity earnings from consolidated subsidiaries | 997 | 810 | 833 | |||||||||
Other income | (1) | 55 | 81 | |||||||||
Income (loss) before income taxes and equity earnings in affiliates | (214) | (1,938) | (919) | |||||||||
Income tax (benefit) expense | (635) | (457) | (461) | |||||||||
Equity earnings in affiliates | (1) | 0 | 0 | |||||||||
Net income (loss) | 420 | (1,481) | (458) | |||||||||
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to First Data Corporation | 420 | (1,481) | (458) | |||||||||
Comprehensive (loss) income | 313 | (1,771) | (798) | |||||||||
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest | 0 | 0 | 0 | |||||||||
Comprehensive income (loss) attributable to First Data Corporation | 313 | (1,771) | (798) | |||||||||
Reportable Legal Entities | Guarantor Subsidiaries | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | 3,924 | 3,906 | 3,712 | |||||||||
Product sales and other | 835 | 741 | 625 | |||||||||
Total revenues (excluding reimbursable items) | 4,759 | 4,647 | 4,337 | |||||||||
Reimbursable debit network fees, postage, and other | 2,527 | 2,521 | 2,510 | |||||||||
Total revenues | 7,286 | 7,168 | 6,847 | |||||||||
Expenses: | ||||||||||||
Cost of services (exclusive of items shown below) | 1,597 | 1,576 | 1,403 | |||||||||
Cost of products sold | 315 | 260 | 223 | |||||||||
Selling, general, and administrative | 1,077 | 1,143 | 1,125 | |||||||||
Depreciation and amortization | 571 | 620 | 607 | |||||||||
Other operating expenses | 41 | 24 | 3 | |||||||||
Total expenses (excluding reimbursable items) | 3,601 | 3,623 | 3,361 | |||||||||
Reimbursable debit network fees, postage, and other | 2,527 | 2,521 | 2,510 | |||||||||
Total expenses | 6,128 | 6,144 | 5,871 | |||||||||
Operating (loss) profit | 1,158 | 1,024 | 976 | |||||||||
Interest expense, net | (18) | (10) | (9) | |||||||||
Loss on debt extinguishment | 0 | 0 | 0 | |||||||||
Interest income (expense) from intercompany notes | (219) | (289) | (305) | |||||||||
Equity earnings from consolidated subsidiaries | 369 | 304 | 294 | |||||||||
Other income | (1) | 3 | 100 | |||||||||
Income (loss) before income taxes and equity earnings in affiliates | 1,289 | 1,032 | 1,056 | |||||||||
Income tax (benefit) expense | 490 | 422 | 377 | |||||||||
Equity earnings in affiliates | 231 | 213 | 202 | |||||||||
Net income (loss) | 1,030 | 823 | 881 | |||||||||
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to First Data Corporation | 1,030 | 823 | 881 | |||||||||
Comprehensive (loss) income | 1,055 | 760 | 709 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest | 0 | 0 | 0 | |||||||||
Comprehensive income (loss) attributable to First Data Corporation | 1,055 | 760 | 709 | |||||||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | 2,979 | 2,999 | 3,056 | |||||||||
Product sales and other | 555 | 503 | 473 | |||||||||
Total revenues (excluding reimbursable items) | 3,534 | 3,502 | 3,529 | |||||||||
Reimbursable debit network fees, postage, and other | 1,218 | 1,166 | 1,094 | |||||||||
Total revenues | 4,752 | 4,668 | 4,623 | |||||||||
Expenses: | ||||||||||||
Cost of services (exclusive of items shown below) | 1,447 | 1,473 | 1,523 | |||||||||
Cost of products sold | 182 | 173 | 167 | |||||||||
Selling, general, and administrative | 745 | 803 | 787 | |||||||||
Depreciation and amortization | 373 | 390 | 439 | |||||||||
Other operating expenses | 13 | 21 | 0 | |||||||||
Total expenses (excluding reimbursable items) | 2,760 | 2,860 | 2,916 | |||||||||
Reimbursable debit network fees, postage, and other | 1,218 | 1,166 | 1,094 | |||||||||
Total expenses | 3,978 | 4,026 | 4,010 | |||||||||
Operating (loss) profit | 774 | 642 | 613 | |||||||||
Interest expense, net | (6) | 0 | 5 | |||||||||
Loss on debt extinguishment | 0 | 0 | 0 | |||||||||
Interest income (expense) from intercompany notes | (15) | 1 | (11) | |||||||||
Equity earnings from consolidated subsidiaries | 0 | 0 | 0 | |||||||||
Other income | 19 | (29) | (20) | |||||||||
Income (loss) before income taxes and equity earnings in affiliates | 772 | 614 | 587 | |||||||||
Income tax (benefit) expense | 226 | 136 | 166 | |||||||||
Equity earnings in affiliates | 30 | 26 | 18 | |||||||||
Net income (loss) | 576 | 504 | 439 | |||||||||
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest | 64 | 66 | 66 | |||||||||
Net income (loss) attributable to First Data Corporation | 512 | 438 | 373 | |||||||||
Comprehensive (loss) income | 384 | 158 | 187 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest | 59 | 56 | 55 | |||||||||
Comprehensive income (loss) attributable to First Data Corporation | 325 | 102 | 132 | |||||||||
Consolidation Adjustments | ||||||||||||
Revenues: | ||||||||||||
Transaction and processing service fees | (303) | (308) | (258) | |||||||||
Product sales and other | (151) | (77) | (60) | |||||||||
Total revenues (excluding reimbursable items) | (454) | (385) | (318) | |||||||||
Reimbursable debit network fees, postage, and other | 0 | 0 | 0 | |||||||||
Total revenues | (454) | (385) | (318) | |||||||||
Expenses: | ||||||||||||
Cost of services (exclusive of items shown below) | (189) | (178) | (258) | |||||||||
Cost of products sold | (160) | (77) | (60) | |||||||||
Selling, general, and administrative | (105) | (130) | 0 | |||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||
Other operating expenses | 0 | 0 | 0 | |||||||||
Total expenses (excluding reimbursable items) | (454) | (385) | (318) | |||||||||
Reimbursable debit network fees, postage, and other | 0 | 0 | 0 | |||||||||
Total expenses | (454) | (385) | (318) | |||||||||
Operating (loss) profit | 0 | 0 | 0 | |||||||||
Interest expense, net | 0 | 0 | 0 | |||||||||
Loss on debt extinguishment | 0 | 0 | 0 | |||||||||
Interest income (expense) from intercompany notes | 0 | 0 | 0 | |||||||||
Equity earnings from consolidated subsidiaries | (1,366) | (1,114) | (1,127) | |||||||||
Other income | 0 | 0 | 0 | |||||||||
Income (loss) before income taxes and equity earnings in affiliates | (1,366) | (1,114) | (1,127) | |||||||||
Income tax (benefit) expense | 0 | 0 | 0 | |||||||||
Equity earnings in affiliates | 0 | 0 | 0 | |||||||||
Net income (loss) | (1,366) | (1,114) | (1,127) | |||||||||
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest | 176 | 147 | 127 | |||||||||
Net income (loss) attributable to First Data Corporation | (1,542) | (1,261) | (1,254) | |||||||||
Comprehensive (loss) income | (1,204) | (715) | (714) | |||||||||
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest | 176 | 147 | 127 | |||||||||
Comprehensive income (loss) attributable to First Data Corporation | $ (1,380) | $ (862) | $ (841) | |||||||||
[1] | Includes processing fees, administrative service fees, and other fees charged to merchant alliances accounted for under the equity method of $198 million, $205 million, and $181 million for the years ended December 31, 2016, 2015, and 2014, respectively. |
Supplemental Guarantor Conde132
Supplemental Guarantor Condensed Consolidating Financial Statements - Schedule of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Current assets: | ||||||
Cash and cash equivalents | $ 385 | $ 429 | $ 358 | $ 425 | ||
Accounts receivable, net of allowance for doubtful accounts | 1,877 | 1,826 | ||||
Settlement assets | 14,795 | 8,150 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Other current assets | 360 | 381 | ||||
Total current assets | 17,417 | 10,786 | ||||
Property and equipment, net of accumulated depreciation | 883 | 951 | ||||
Goodwill | 16,696 | 16,846 | 17,017 | |||
Customer relationships, net of accumulated amortization | 1,739 | 2,136 | ||||
Other intangibles, net of accumulated amortization | 1,800 | 1,783 | ||||
Investment in affiliates | 988 | 1,048 | ||||
Long-term intercompany receivables | 0 | 0 | ||||
Long-term intercompany notes receivable | 0 | 0 | ||||
Deferred tax assets | 0 | 0 | ||||
Other long-term assets | 769 | 812 | ||||
Investment in consolidated subsidiaries | 0 | 0 | ||||
Total assets | 40,292 | 34,362 | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 1,564 | 1,639 | ||||
Short-term and current portion of long-term borrowings | 358 | 856 | ||||
Settlement obligations | 14,795 | 8,150 | ||||
Intercompany notes payable | 0 | 0 | ||||
Total current liabilities | 16,717 | 10,645 | ||||
Long-term borrowings | 18,131 | 18,737 | ||||
Deferred tax liabilities | 409 | 431 | ||||
Long-term intercompany payables | 0 | 0 | ||||
Long-term intercompany notes payable | 0 | 0 | ||||
Other long-term liabilities | 831 | 812 | ||||
Total liabilities | 36,088 | 30,625 | ||||
Redeemable equity interest | 0 | 0 | ||||
Redeemable noncontrolling interest | 73 | 77 | 70 | 69 | ||
First Data Corporation stockholders' equity (deficit) | 1,220 | 668 | ||||
Noncontrolling interests | 2,911 | 2,992 | ||||
Equity of consolidated alliance | 0 | 0 | ||||
Total equity | 4,131 | 3,660 | 2,530 | [1] | 1,575 | [1] |
Total liabilities and equity | 40,292 | 34,362 | ||||
Reportable Legal Entities | FDC Parent Company | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 105 | 0 | 36 | ||
Accounts receivable, net of allowance for doubtful accounts | 0 | 0 | ||||
Settlement assets | 0 | 0 | ||||
Intercompany notes receivable | 1 | 436 | ||||
Other current assets | 109 | 98 | ||||
Total current assets | 110 | 639 | ||||
Property and equipment, net of accumulated depreciation | 52 | 37 | ||||
Goodwill | 0 | 0 | ||||
Customer relationships, net of accumulated amortization | 0 | 0 | ||||
Other intangibles, net of accumulated amortization | 604 | 604 | ||||
Investment in affiliates | 6 | 5 | ||||
Long-term intercompany receivables | 3,866 | 8,523 | ||||
Long-term intercompany notes receivable | 3,481 | 3,415 | ||||
Deferred tax assets | 510 | 524 | ||||
Other long-term assets | 212 | 259 | ||||
Investment in consolidated subsidiaries | 26,286 | 25,692 | ||||
Total assets | 35,127 | 39,698 | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 227 | 283 | ||||
Short-term and current portion of long-term borrowings | 0 | 740 | ||||
Settlement obligations | 0 | 0 | ||||
Intercompany notes payable | 0 | 96 | ||||
Total current liabilities | 227 | 1,119 | ||||
Long-term borrowings | 17,916 | 18,616 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Long-term intercompany payables | 15,097 | 18,583 | ||||
Long-term intercompany notes payable | 206 | 245 | ||||
Other long-term liabilities | 461 | 467 | ||||
Total liabilities | 33,907 | 39,030 | ||||
Redeemable equity interest | 0 | 0 | ||||
Redeemable noncontrolling interest | 0 | 0 | ||||
First Data Corporation stockholders' equity (deficit) | 1,220 | 668 | ||||
Noncontrolling interests | 0 | 0 | ||||
Equity of consolidated alliance | 0 | 0 | ||||
Total equity | 1,220 | 668 | ||||
Total liabilities and equity | 35,127 | 39,698 | ||||
Reportable Legal Entities | Guarantor Subsidiaries | ||||||
Current assets: | ||||||
Cash and cash equivalents | 7 | 16 | 23 | 33 | ||
Accounts receivable, net of allowance for doubtful accounts | 593 | 826 | ||||
Settlement assets | 7,457 | 4,273 | ||||
Intercompany notes receivable | 0 | 86 | ||||
Other current assets | 147 | 188 | ||||
Total current assets | 8,204 | 5,389 | ||||
Property and equipment, net of accumulated depreciation | 577 | 640 | ||||
Goodwill | 9,145 | 9,139 | ||||
Customer relationships, net of accumulated amortization | 1,026 | 1,235 | ||||
Other intangibles, net of accumulated amortization | 735 | 703 | ||||
Investment in affiliates | 860 | 900 | ||||
Long-term intercompany receivables | 12,001 | 15,192 | ||||
Long-term intercompany notes receivable | 197 | 236 | ||||
Deferred tax assets | 0 | 0 | ||||
Other long-term assets | 302 | 358 | ||||
Investment in consolidated subsidiaries | 5,981 | 5,588 | ||||
Total assets | 39,028 | 39,380 | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 781 | 792 | ||||
Short-term and current portion of long-term borrowings | 110 | 70 | ||||
Settlement obligations | 7,457 | 4,273 | ||||
Intercompany notes payable | 0 | 408 | ||||
Total current liabilities | 8,348 | 5,543 | ||||
Long-term borrowings | 202 | 119 | ||||
Deferred tax liabilities | 817 | 875 | ||||
Long-term intercompany payables | 2,769 | 6,874 | ||||
Long-term intercompany notes payable | 3,481 | 3,353 | ||||
Other long-term liabilities | 245 | 288 | ||||
Total liabilities | 15,862 | 17,052 | ||||
Redeemable equity interest | 0 | 0 | ||||
Redeemable noncontrolling interest | 0 | 0 | ||||
First Data Corporation stockholders' equity (deficit) | 23,166 | 22,328 | ||||
Noncontrolling interests | 0 | 0 | ||||
Equity of consolidated alliance | 0 | 0 | ||||
Total equity | 23,166 | 22,328 | ||||
Total liabilities and equity | 39,028 | 39,380 | ||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||
Current assets: | ||||||
Cash and cash equivalents | 378 | 308 | 335 | 356 | ||
Accounts receivable, net of allowance for doubtful accounts | 1,284 | 1,000 | ||||
Settlement assets | 7,338 | 3,877 | ||||
Intercompany notes receivable | 0 | 10 | ||||
Other current assets | 104 | 95 | ||||
Total current assets | 9,104 | 5,290 | ||||
Property and equipment, net of accumulated depreciation | 254 | 274 | ||||
Goodwill | 7,551 | 7,707 | ||||
Customer relationships, net of accumulated amortization | 713 | 901 | ||||
Other intangibles, net of accumulated amortization | 461 | 476 | ||||
Investment in affiliates | 122 | 143 | ||||
Long-term intercompany receivables | 2,822 | 6,321 | ||||
Long-term intercompany notes receivable | 9 | 9 | ||||
Deferred tax assets | 0 | 0 | ||||
Other long-term assets | 298 | 265 | ||||
Investment in consolidated subsidiaries | 0 | 0 | ||||
Total assets | 21,334 | 21,386 | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 555 | 564 | ||||
Short-term and current portion of long-term borrowings | 249 | 46 | ||||
Settlement obligations | 7,338 | 3,877 | ||||
Intercompany notes payable | 1 | 28 | ||||
Total current liabilities | 8,143 | 4,515 | ||||
Long-term borrowings | 13 | 2 | ||||
Deferred tax liabilities | 102 | 80 | ||||
Long-term intercompany payables | 823 | 4,579 | ||||
Long-term intercompany notes payable | 0 | 62 | ||||
Other long-term liabilities | 168 | 127 | ||||
Total liabilities | 9,249 | 9,365 | ||||
Redeemable equity interest | 73 | 77 | ||||
Redeemable noncontrolling interest | 0 | 0 | ||||
First Data Corporation stockholders' equity (deficit) | 6,175 | 5,933 | ||||
Noncontrolling interests | 94 | 88 | ||||
Equity of consolidated alliance | 5,743 | 5,923 | ||||
Total equity | 12,012 | 11,944 | ||||
Total liabilities and equity | 21,334 | 21,386 | ||||
Consolidation Adjustments | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||
Accounts receivable, net of allowance for doubtful accounts | 0 | 0 | ||||
Settlement assets | 0 | 0 | ||||
Intercompany notes receivable | (1) | (532) | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (1) | (532) | ||||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Customer relationships, net of accumulated amortization | 0 | 0 | ||||
Other intangibles, net of accumulated amortization | 0 | 0 | ||||
Investment in affiliates | 0 | 0 | ||||
Long-term intercompany receivables | (18,689) | (30,036) | ||||
Long-term intercompany notes receivable | (3,687) | (3,660) | ||||
Deferred tax assets | (510) | (524) | ||||
Other long-term assets | (43) | (70) | ||||
Investment in consolidated subsidiaries | (32,267) | (31,280) | ||||
Total assets | (55,197) | (66,102) | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 1 | 0 | ||||
Short-term and current portion of long-term borrowings | (1) | 0 | ||||
Settlement obligations | 0 | 0 | ||||
Intercompany notes payable | (1) | (532) | ||||
Total current liabilities | (1) | (532) | ||||
Long-term borrowings | 0 | 0 | ||||
Deferred tax liabilities | (510) | (524) | ||||
Long-term intercompany payables | (18,689) | (30,036) | ||||
Long-term intercompany notes payable | (3,687) | (3,660) | ||||
Other long-term liabilities | (43) | (70) | ||||
Total liabilities | (22,930) | (34,822) | ||||
Redeemable equity interest | (73) | (77) | ||||
Redeemable noncontrolling interest | 73 | 77 | ||||
First Data Corporation stockholders' equity (deficit) | (29,341) | (28,261) | ||||
Noncontrolling interests | 2,817 | 2,904 | ||||
Equity of consolidated alliance | (5,743) | (5,923) | ||||
Total equity | (32,267) | (31,280) | ||||
Total liabilities and equity | $ (55,197) | $ (66,102) | ||||
[1] | 1,000 shares relates to common stock without a class that was eliminated upon the merger with First Data Holdings. |
Supplemental Guarantor Conde133
Supplemental Guarantor Condensed Consolidating Financial Statements - Schedule of the Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net (loss) income | $ 251 | $ 200 | $ 215 | $ (6) | $ (1,163) | $ (75) | $ 33 | $ (63) | $ 660 | $ (1,268) | $ (265) |
Adjustments to reconcile to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) | 1,061 | 1,133 | 1,163 | ||||||||
Charges (gains) related to other operating expenses and other income (expense) | 44 | 24 | (148) | ||||||||
Loss on debt extinguishment | 70 | 1,068 | 274 | ||||||||
Stock-based compensation expense | 263 | 329 | 51 | ||||||||
Other non-cash and non-operating items, net | 35 | 48 | 70 | ||||||||
(Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in operating assets and liabilities | (22) | (539) | (110) | ||||||||
Net cash (used in) provided by operating activities | 2,111 | 795 | 1,035 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Additions to property and equipment | (232) | (282) | (308) | ||||||||
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs | (245) | (320) | (259) | ||||||||
Acquisitions, net of cash acquired | (6) | (89) | (31) | ||||||||
Proceeds from dispositions | 38 | 4 | 270 | ||||||||
Proceeds from sale of property and equipment | 38 | 17 | 3 | ||||||||
Other investing activities, net | 20 | (15) | (4) | ||||||||
Net cash provided by (used in) investing activities | (387) | (685) | (329) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Short-term borrowings, net | 205 | (31) | 12 | ||||||||
Proceeds from issuance of long-term debt | 3,533 | 10,258 | 1,830 | ||||||||
Payment of call premiums and debt issuance cost | (53) | (1,062) | (355) | ||||||||
Principal payments on long-term debt | (5,073) | (11,568) | (3,751) | ||||||||
Payment of taxes related to net settlement of equity awards | (61) | 0 | 0 | ||||||||
Proceeds from issuance of common stock | 23 | 2,718 | 0 | ||||||||
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest | (316) | (312) | (266) | ||||||||
Distributions paid to equity holders | 0 | 0 | 0 | ||||||||
Capital transactions, net | 0 | (19) | 1,788 | ||||||||
Other financing activities, net | 8 | 0 | (1) | ||||||||
Intercompany | 0 | 0 | 0 | ||||||||
Net cash provided by (used in) financing activities | (1,734) | (16) | (743) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (34) | (23) | (30) | ||||||||
Change in cash and cash equivalents | (44) | 71 | (67) | ||||||||
Cash and cash equivalents at beginning of period | 429 | 358 | 429 | 358 | 425 | ||||||
Cash and cash equivalents at end of period | 385 | 429 | 385 | 429 | 358 | ||||||
Reportable Legal Entities | FDC Parent Company | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net (loss) income | 420 | (1,481) | (458) | ||||||||
Adjustments to reconcile to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) | 5 | 12 | 10 | ||||||||
Charges (gains) related to other operating expenses and other income (expense) | 8 | (47) | (71) | ||||||||
Loss on debt extinguishment | 70 | 1,068 | 274 | ||||||||
Stock-based compensation expense | 263 | 329 | 51 | ||||||||
Other non-cash and non-operating items, net | (961) | (746) | (751) | ||||||||
(Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in operating assets and liabilities | (583) | (1,044) | (731) | ||||||||
Net cash (used in) provided by operating activities | (778) | (1,909) | (1,676) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Additions to property and equipment | (2) | (9) | (8) | ||||||||
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs | 0 | 0 | 0 | ||||||||
Acquisitions, net of cash acquired | (6) | (70) | 0 | ||||||||
Proceeds from dispositions | 0 | 0 | 0 | ||||||||
Proceeds from sale of property and equipment | 38 | 0 | 0 | ||||||||
Other investing activities, net | 206 | 134 | 75 | ||||||||
Net cash provided by (used in) investing activities | 236 | 55 | 67 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Short-term borrowings, net | 0 | (10) | 10 | ||||||||
Proceeds from issuance of long-term debt | 3,533 | 10,258 | 1,830 | ||||||||
Payment of call premiums and debt issuance cost | (53) | (1,062) | (355) | ||||||||
Principal payments on long-term debt | (4,986) | (11,472) | (3,673) | ||||||||
Payment of taxes related to net settlement of equity awards | (61) | ||||||||||
Proceeds from issuance of common stock | 23 | 2,718 | |||||||||
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest | 0 | 0 | 0 | ||||||||
Distributions paid to equity holders | 0 | 0 | 0 | ||||||||
Capital transactions, net | (19) | 1,788 | |||||||||
Other financing activities, net | 0 | 0 | 0 | ||||||||
Intercompany | 1,981 | 1,546 | 1,973 | ||||||||
Net cash provided by (used in) financing activities | 437 | 1,959 | 1,573 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||||||||
Change in cash and cash equivalents | (105) | 105 | (36) | ||||||||
Cash and cash equivalents at beginning of period | 105 | 0 | 105 | 0 | 36 | ||||||
Cash and cash equivalents at end of period | 0 | 105 | 0 | 105 | 0 | ||||||
Reportable Legal Entities | Guarantor Subsidiaries | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net (loss) income | 1,030 | 823 | 881 | ||||||||
Adjustments to reconcile to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) | 645 | 701 | 683 | ||||||||
Charges (gains) related to other operating expenses and other income (expense) | 42 | 21 | (97) | ||||||||
Loss on debt extinguishment | 0 | 0 | 0 | ||||||||
Stock-based compensation expense | 0 | 0 | 0 | ||||||||
Other non-cash and non-operating items, net | (366) | (306) | (306) | ||||||||
(Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in operating assets and liabilities | 432 | 431 | 571 | ||||||||
Net cash (used in) provided by operating activities | 1,783 | 1,670 | 1,732 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Additions to property and equipment | (70) | (107) | (124) | ||||||||
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs | (185) | (264) | (183) | ||||||||
Acquisitions, net of cash acquired | 0 | (19) | (31) | ||||||||
Proceeds from dispositions | 0 | 4 | 270 | ||||||||
Proceeds from sale of property and equipment | 0 | 17 | 2 | ||||||||
Other investing activities, net | 281 | 254 | 232 | ||||||||
Net cash provided by (used in) investing activities | 26 | (115) | 166 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Short-term borrowings, net | 0 | 0 | 0 | ||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||||||||
Payment of call premiums and debt issuance cost | 0 | 0 | 0 | ||||||||
Principal payments on long-term debt | (80) | (87) | (73) | ||||||||
Payment of taxes related to net settlement of equity awards | 0 | ||||||||||
Proceeds from issuance of common stock | 0 | 0 | |||||||||
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest | 0 | 0 | 0 | ||||||||
Distributions paid to equity holders | 0 | 0 | 0 | ||||||||
Capital transactions, net | 0 | 0 | |||||||||
Other financing activities, net | 8 | 0 | 0 | ||||||||
Intercompany | (1,748) | (1,477) | (1,840) | ||||||||
Net cash provided by (used in) financing activities | (1,820) | (1,564) | (1,913) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 2 | 2 | 5 | ||||||||
Change in cash and cash equivalents | (9) | (7) | (10) | ||||||||
Cash and cash equivalents at beginning of period | 16 | 23 | 16 | 23 | 33 | ||||||
Cash and cash equivalents at end of period | 7 | 16 | 7 | 16 | 23 | ||||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net (loss) income | 576 | 504 | 439 | ||||||||
Adjustments to reconcile to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) | 411 | 420 | 470 | ||||||||
Charges (gains) related to other operating expenses and other income (expense) | (6) | 50 | 20 | ||||||||
Loss on debt extinguishment | 0 | 0 | 0 | ||||||||
Stock-based compensation expense | 0 | 0 | 0 | ||||||||
Other non-cash and non-operating items, net | (4) | (14) | 0 | ||||||||
(Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in operating assets and liabilities | 129 | 74 | 50 | ||||||||
Net cash (used in) provided by operating activities | 1,106 | 1,034 | 979 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Additions to property and equipment | (160) | (166) | (176) | ||||||||
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs | (60) | (56) | (76) | ||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
Proceeds from dispositions | 38 | 0 | 0 | ||||||||
Proceeds from sale of property and equipment | 0 | 0 | 1 | ||||||||
Other investing activities, net | 30 | 0 | (4) | ||||||||
Net cash provided by (used in) investing activities | (152) | (222) | (255) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Short-term borrowings, net | 205 | (21) | 2 | ||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||||||||
Payment of call premiums and debt issuance cost | 0 | 0 | 0 | ||||||||
Principal payments on long-term debt | (7) | (9) | (5) | ||||||||
Payment of taxes related to net settlement of equity awards | 0 | ||||||||||
Proceeds from issuance of common stock | 0 | 0 | |||||||||
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest | (52) | (69) | (45) | ||||||||
Distributions paid to equity holders | (541) | (497) | (453) | ||||||||
Capital transactions, net | 0 | 0 | |||||||||
Other financing activities, net | (220) | (149) | (76) | ||||||||
Intercompany | (233) | (69) | (133) | ||||||||
Net cash provided by (used in) financing activities | (848) | (814) | (710) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (36) | (25) | (35) | ||||||||
Change in cash and cash equivalents | 70 | (27) | (21) | ||||||||
Cash and cash equivalents at beginning of period | 308 | 335 | 308 | 335 | 356 | ||||||
Cash and cash equivalents at end of period | 378 | 308 | 378 | 308 | 335 | ||||||
Consolidation Adjustments | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net (loss) income | (1,366) | (1,114) | (1,127) | ||||||||
Adjustments to reconcile to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization (including amortization netted against equity earnings in affiliates and revenues) | 0 | 0 | 0 | ||||||||
Charges (gains) related to other operating expenses and other income (expense) | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | 0 | 0 | 0 | ||||||||
Stock-based compensation expense | 0 | 0 | 0 | ||||||||
Other non-cash and non-operating items, net | 1,366 | 1,114 | 1,127 | ||||||||
(Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in operating assets and liabilities | 0 | 0 | 0 | ||||||||
Net cash (used in) provided by operating activities | 0 | 0 | 0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Additions to property and equipment | 0 | 0 | 0 | ||||||||
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development costs | 0 | 0 | 0 | ||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
Proceeds from dispositions | 0 | 0 | 0 | ||||||||
Proceeds from sale of property and equipment | 0 | 0 | 0 | ||||||||
Other investing activities, net | (497) | (403) | (307) | ||||||||
Net cash provided by (used in) investing activities | (497) | (403) | (307) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Short-term borrowings, net | 0 | 0 | 0 | ||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||||||||
Payment of call premiums and debt issuance cost | 0 | 0 | 0 | ||||||||
Principal payments on long-term debt | 0 | 0 | 0 | ||||||||
Payment of taxes related to net settlement of equity awards | 0 | ||||||||||
Proceeds from issuance of common stock | 0 | 0 | |||||||||
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest | (264) | (243) | (221) | ||||||||
Distributions paid to equity holders | 541 | 497 | 453 | ||||||||
Capital transactions, net | 0 | 0 | |||||||||
Other financing activities, net | 220 | 149 | 75 | ||||||||
Intercompany | 0 | 0 | 0 | ||||||||
Net cash provided by (used in) financing activities | 497 | 403 | 307 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||||||||
Change in cash and cash equivalents | 0 | 0 | 0 | ||||||||
Cash and cash equivalents at beginning of period | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jan. 23, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||
Loss on debt extinguishment | $ 70 | $ 1,068 | $ 274 | |
6.75% Senior secured first lien notes due 2020 | Senior secured term loan facility | ||||
Subsequent Event [Line Items] | ||||
Interest rate (percent) | 6.75% | |||
Subsequent event | U.S. dollar denominated term loans due June 2, 2020 | ||||
Subsequent Event [Line Items] | ||||
Principal amount | $ 1,300 | |||
Quarterly principal payments (percent) | 1.25% | |||
Subsequent event | U.S. dollar denominated term loans due June 2, 2020 | LIBOR | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate (percent) | 2.00% | |||
Subsequent event | U.S. dollar denominated term loans due June 2, 2020 | Base rate | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate (percent) | 1.00% | |||
Subsequent event | 6.75% Senior secured first lien notes due 2020 | ||||
Subsequent Event [Line Items] | ||||
Loss on debt extinguishment | $ 56 | |||
Clover Terminal Devices | ||||
Subsequent Event [Line Items] | ||||
Deferred revenue | $ 100 |
SCHEDULE II-Valuation and Qu135
SCHEDULE II-Valuation and Qualifying Accounts (Details) - Deducted from receivables - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 83 | $ 72 | $ 43 |
Additions, Charged to Costs and Expenses | 85 | 79 | 99 |
Additions, Reclassifications from Other Accounts | 1 | 3 | 11 |
Deductions, Write-offs Against Assets | 82 | 71 | 81 |
Balance at End of Period | $ 87 | $ 83 | $ 72 |