Print Page  |  Close Window

SEC Filings

10-Q
FIRST DATA CORP filed this Form 10-Q on 07/30/2018
Entire Document
 
FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

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 the high end of the estimated range.
Note 13: 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.

As of June 30, 2018, the Company had one unconsolidated significant subsidiary that was not required to be consolidated, but represents more than 20% of the Company’s pretax income. Summarized unaudited financial information for the affiliate is presented below for the three and six months ended June 30, 2018 and 2017:
 
 
Three months ended 
 June 30,
 
Six months ended 
 June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Net operating revenues
 
$
213

 
$
214

 
$
408

 
$
422

Operating expenses
 
102

 
103

 
203

 
201

Operating income
 
$
111

 
$
111

 
$
205

 
$
221

Net income
 
$
112

 
$
111

 
$
206

 
$
221

FDC equity earnings
 
40

 
38

 
73

 
76

Note 14: Subsequent Events
 
On July 26, 2018, the Company amended its Accounts Receivable Securitization Program (“Securitization”) to extend the maturity from June 30, 2020 to July 31, 2021. In addition, under the amended terms, loans under the Securitization will accrue interest at a rate that is 1.15% higher than either LIBOR, down from LIBOR plus 1.5% under the previous agreement, or a base rate equal to the highest of (i) the applicable lender’s “reference” or “prime” rate, or (ii) the federal funds rate plus 0.50%. The Securitization also includes an unused fee at a rate that ranges from 45 to 90 basis points depending on the level of utilization under the Securitization.

28