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425
FIDELITY NATIONAL INFORMATION SERVICES, INC. filed this Form 425 on 05/13/2019
Entire Document
 


Worldpay, Inc.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

Cash Flow Hedges of Interest Rate Risk

The following table presents the Company’s interest rate swaps and caps (in millions):

 

Derivative

   Notional Value     

Exposure Periods

   Strike Rate  

Interest rate swap

   $ 600     

June 2018 to January 2021

  

Interest rate swap

     500     

June 2019 to June 2021

  
  

 

 

       

Total

   $ 1,100        
  

 

 

       

Interest rate cap

   $ 1,000     

January 2017 to January 2020

     0.75

Interest rate cap

     600     

June 2018 to June 2021

     2.25
  

 

 

       

Total

   $ 1,600        
  

 

 

       

The Company does not offset derivative positions in the accompanying consolidated financial statements. The table below presents the fair value of the Company’s derivative financial instruments designated as cash flow hedges included within the accompanying Consolidated Statements of Financial Position (in millions):

 

    

Consolidated Statement of Financial

Position Location

   March 31, 2019      December 31, 2018  

Interest rate contracts

   Other current assets    $ 14.5      $ 19.3  

Interest rate contracts

   Other long-term assets      1.5        5.3  

Interest rate contracts

   Other current liabilities      4.1        1.8  

Interest rate contracts

   Other long-term liabilities      11.3        8.2  

As of March 31, 2019, the Company estimates that $1.4 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense during the next 12 months.

The table below presents the pre-tax effect of the Company’s interest rate contracts on the accompanying Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018 (in millions):

 

     Three Months Ended March 31,  
     2019      2018  

Derivatives in cash flow hedging relationships:

     

Amount of (loss) gain recognized in OCI (1)

   $ (9.4    $ 6.3  

Amount of gain (loss) reclassified from OCI into earnings

     2.2        (0.6

Amount of gain recognized in earnings

     —          0.1  

 

  (1) 

“OCI” represents other comprehensive income.

The location and amount of gains or losses recognized in the consolidated results of operations for cash flow hedging relationships for each of the periods, presented on a pretax basis, are as follows (in millions):

 

     Three Months Ended March 31,  
     2019      2018  
     Interest Expense—Net      Interest Expense—Net  

Total amounts of income and expense line items presented in the consolidated results of operations in which effects of cash flow hedges are recorded

   $ 72.1      $ 75.2  

Gain (loss) on cash flow hedging relationships

     2.2        (0.6

Credit Risk Related Contingent Features

As of March 31, 2019, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $15.8 million.

 

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