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For the Six Months Ended June 30,2015 and 2014
Cash flows from operating activities
Source(use) (In millions)
Six month ended
June 30.
2015
2011
Net loss
$ (30) $ (142)
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization (including amortization netted against equity earnings in affiliates and re venues)
557
582
Charges (gains) related to other operating expenses and other income
9
(73)
Other non-cash and non-operating items, net
(Decrease) increase in cash, excluding the effects of acquisitions and dispositions, resulting from changes in:
(37)
(38)
Accounts receivable, current and long-term
(30)
42
Other assets, current and long-term
(5)
32
Accounts payable and other liabilities, current and long-term
37
(24)
Income tax accounts
(48)
10
Net cash provided by operating activities
$ 453 $ 389
Cash flows provided by operating activities for the periods presented resulted from normal operating activities and reflect the timing of
our working capital requirements.
Our operating cash flow is significantly impacted by our level of debt. Approximately $746 million and $867 million in cash interest,
net of swap settlements, was paid dining the six months ended June 30, 2015 and 2014, respectively. The decrease in cash interest payments from
2014 is due to extinguishing debt in the third quarter of 2014, as well as $42 million cash received from the termination of a swap agreement during
the second quarter of 2015 which is netted against cash interest payments disclosed above.
Cash flows from operating activities increased for the six months ended June 30, 2015 compared to the same period in 2014 due to a
$112 million improvement in our net loss and a decrease in gains related to other income, relating to the disposition of a noncom transportation
payments joint venture in the second quarter of 2014. partially offset by fluctuations in working capital.
We anticipate funding operations throughout the remainder of 2015 with cash flows from operating activities and by closely managing
discretionary• capital and other spending; however, any shortfalls would be supplemented as necessary by borrowings against our senior secured
revolving credit facility.
Cash flows from investing activities
Slx months ended
June 30,
Source( use) (in millions)
2015
2014
Proceeds from dispositions, net of expenses paid
$
3
$ 259
Additions to property and equipment
(134)
(133)
Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development
costs
(150)
(111)
Acquisitions. net of cash acquired
(89)
Proceeds from sale of property and equipment
2
Purchase of investments
(17)
Net cash (used in) provided by investing activities
$(387)
$
17
82
httplAin.me.gov/Archi vusfedgar/datantli3980/000119312515334479/d31022ds la.htmill 0/14/2015 9:06:38 AM]
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