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SEC Filings

10-Q
FIRST DATA CORP filed this Form 10-Q on 10/31/2018
Entire Document
 

Cash flows from financing activities
The table below summarizes the changes in financing activities for the nine months ended September 30, 2018 and 2017:
 
Nine months ended September 30,
Source/(use) (in millions)
2018
 
2017
 
Change
Net debt transactions (a)
$
(1,496
)
 
$
(100
)
 
$
(1,396
)
Other (b)
(243
)
 
(310
)
 
67

Net cash used in financing activities
$
(1,739
)
 
$
(410
)
 
$
(1,329
)
(a)
Details regarding our debt structure are provided in note 2 "Borrowings" to our unaudited consolidated financial statements in Part I of this Form 10-Q for additional information.
(b)
Other represents payment of call premiums and debt issuance cost, payment of taxes related to net settlement of equity awards, distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest and other financing activities. Change is related to $63 million of debt modification payments incurred in the nine months ended September 30, 2017.

Free Cash Flow

Free cash flow is a non-GAAP measure defined as cash flow provided by operating activities less capital expenditures and distributions to minority interests and other. We consider free cash flow to be a liquidity measure that provides useful information to management and users of our financial statements about the amount of cash generated by the business which can then be used to, among other things, reduce outstanding debt. Free cash flow is not, and should not be viewed as, a substitute for GAAP reported financial information.
The table below reconciles cash flow from operations to free cash flow for the nine months ended September 30, 2018 and 2017:
 
 
Nine months ended September 30,
Source/(use) (in millions)
 
2018
 
2017
 
Change
Net cash provided by operating activities (a)
 
$
1,809

 
$
1,582

 
$
227

Capital expenditures(b)
 
(452
)
 
(390
)
 
(62
)
Distributions and dividends paid to noncontrolling interests and redeemable noncontrolling interest
 
(193
)
 
(203
)
 
10

Net investment hedges
 
26

 
90

 
(64
)
Free cash flow
 
$
1,190

 
$
1,079

 
$
111

(a)
Net cash provided by operating activities increased due to the items noted previously in the "Cash flows from operating activities" section above.
(b)
Capital expenditures increased due to the items noted previously in the "Cash flows from investing activities" section above.
Letters, lines of credit, and other
 
 
Total Available(a)
 
Total Outstanding
(in millions)
 
As of September 30,
2018
 
As of December 31,
2017
 
As of September 30,
2018
 
As of December 31,
2017
Letters of credit(b)
 
$
283

 
$
283

 
$
35

 
$
29

Lines of credit and other(c)
 
368

 
546

 
76

 
205

(a)
Total available without giving effect to amounts outstanding.
(b)
Outstanding letters of credit are held in connection with lease arrangements, bankcard association agreements and other security agreements. All letters of credit expire on or prior to December 20, 2019 with a one-year renewal option.
(c)
As of September 30, 2018, represents $368 million of committed lines of credit as well as certain uncommitted lines of credit and other agreements that are available in various currencies to fund settlement and other activity. We cannot use these lines of credit for general corporate purposes. Certain of these arrangements are uncommitted but, as of the dates presented, we had borrowings outstanding against them. Total available under lines of credit and other is highest at year-end due to seasonality of business.
 
In the event one or more of the aforementioned lines of credit becomes unavailable, we will utilize our existing cash, cash flows from operating activities or our senior secured revolving credit facility to meet our liquidity needs.


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