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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Alliance Data Systems | NYSE:ADS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 56.80 | 0 | 01:00:00 |
(Mark One)
|
|
R
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended March 31, 2016
|
|
OR
|
|
£
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Delaware
|
31-1429215
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
R
|
Accelerated filer
£
|
|
Non-accelerated filer
£
(Do not check if a smaller reporting company)
|
Smaller reporting company
£
|
Page
Number
|
|||
Part I:
FINANCIAL INFORMATION
|
|||
Item 1.
|
Financial Statements (unaudited)
|
||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
Item 2.
|
30
|
||
Item 3.
|
39
|
||
Item 4.
|
39
|
||
Part II:
OTHER INFORMATION
|
|||
Item 1.
|
40
|
||
Item 1A.
|
40
|
||
Item 2.
|
42
|
||
Item 3.
|
42
|
||
Item 4.
|
42
|
||
Item 5.
|
42
|
||
Item 6.
|
43
|
||
45
|
Item 1.
|
Financial Statements.
|
March 31,
2016
|
December 31,
2015
|
|||||||
(In millions, except per share amounts)
|
||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
970.0
|
$
|
1,168.0
|
||||
Trade receivables, less allowance for doubtful accounts ($7.5 and $4.0 at March 31, 2016 and December 31, 2015, respectively)
|
595.8
|
706.5
|
||||||
Credit card and loan receivables:
|
||||||||
Credit card receivables – restricted for securitization investors
|
9,509.3
|
10,592.4
|
||||||
Other credit card and loan receivables
|
3,980.8
|
3,207.1
|
||||||
Total credit card and loan receivables
|
13,490.1
|
13,799.5
|
||||||
Allowance for loan loss
|
(727.2
|
)
|
(741.6
|
)
|
||||
Credit card and loan receivables, net
|
12,762.9
|
13,057.9
|
||||||
Credit card and loan receivables held for sale
|
507.4
|
95.5
|
||||||
Deferred tax asset, net
|
—
|
288.1
|
||||||
Inventories, net
|
240.1
|
228.0
|
||||||
Other current assets
|
658.8
|
249.8
|
||||||
Redemption settlement assets, restricted
|
495.2
|
456.6
|
||||||
Total current assets
|
16,230.2
|
16,250.4
|
||||||
Property and equipment, net
|
574.8
|
576.7
|
||||||
Deferred tax asset, net
|
2.0
|
0.6
|
||||||
Intangible assets, net
|
1,187.4
|
1,203.7
|
||||||
Goodwill
|
3,847.6
|
3,814.1
|
||||||
Other non-current assets
|
557.1
|
504.4
|
||||||
Total assets
|
$
|
22,399.1
|
$
|
22,349.9
|
||||
LIABILITIES AND EQUITY
|
||||||||
Accounts payable
|
$
|
404.0
|
$
|
442.4
|
||||
Accrued expenses
|
323.3
|
566.5
|
||||||
Current portion of deposits
|
3,149.0
|
2,980.3
|
||||||
Current portion of non-recourse borrowings of consolidated securitization entities
|
1,389.8
|
1,049.3
|
||||||
Current portion of long-term and other debt
|
373.2
|
369.4
|
||||||
Other current liabilities
|
290.4
|
294.5
|
||||||
Deferred revenue
|
713.4
|
699.0
|
||||||
Deferred tax liability, net
|
—
|
1.7
|
||||||
Total current liabilities
|
6,643.1
|
6,403.1
|
||||||
Deferred revenue
|
151.5
|
145.9
|
||||||
Deferred tax liability, net
|
347.0
|
631.5
|
||||||
Deposits
|
2,933.6
|
2,625.6
|
||||||
Non-recourse borrowings of consolidated securitization entities
|
4,934.3
|
5,433.4
|
||||||
Long-term and other debt
|
5,151.0
|
4,648.0
|
||||||
Other liabilities
|
305.0
|
285.0
|
||||||
Total liabilities
|
20,465.5
|
20,172.5
|
||||||
Commitments and contingencies (Note 11)
|
||||||||
Redeemable non-controlling interest
|
192.4
|
167.4
|
||||||
Stockholders' equity:
|
||||||||
Common stock, $0.01 par value; authorized, 200.0 shares; issued, 112.3 shares and 112.1 shares at March 31, 2016 and December 31, 2015, respectively
|
1.1
|
1.1
|
||||||
Additional paid-in capital
|
2,975.7
|
2,981.0
|
||||||
Treasury stock, at cost, 53.3 shares and 51.3 shares at March 31, 2016 and December 31, 2015, respectively
|
(4,341.1
|
)
|
(3,927.3
|
)
|
||||
Retained earnings
|
3,233.7
|
3,092.5
|
||||||
Accumulated other comprehensive loss
|
(128.2
|
)
|
(137.3
|
)
|
||||
Total stockholders' equity
|
1,741.2
|
2,010.0
|
||||||
Total liabilities and equity
|
$
|
22,399.1
|
$
|
22,349.9
|
|
Three Months Ended
March 31,
|
|||||||
|
2016
|
2015
|
||||||
|
(In millions, except per share amounts)
|
|||||||
Revenues
|
||||||||
Transaction
|
$
|
82.5
|
$
|
93.3
|
||||
Redemption
|
278.2
|
308.1
|
||||||
Finance charges, net
|
808.0
|
679.5
|
||||||
Marketing services
|
452.0
|
471.2
|
||||||
Other revenue
|
55.4
|
49.1
|
||||||
Total revenue
|
1
,676.1
|
1,601.2
|
||||||
Operating expenses
|
||||||||
Cost of operations (exclusive of depreciation and amortization disclosed separately below)
|
1,003.9
|
990.0
|
||||||
Provision for loan loss
|
171.9
|
134.9
|
||||||
General and administrative
|
27.6
|
30.2
|
||||||
Depreciation and other amortization
|
39.8
|
33.6
|
||||||
Amortization of purchased intangibles
|
88.6
|
88.0
|
||||||
Total operating expenses
|
1
,331.8
|
1,276.7
|
||||||
Operating income
|
344.3
|
324.5
|
||||||
Interest expense
|
||||||||
Securitization funding costs
|
30.4
|
23.8
|
||||||
Interest expense on deposits
|
17.2
|
11.7
|
||||||
Interest expense on long-term and other debt, net
|
51.2
|
42.5
|
||||||
Total interest expense, net
|
98.8
|
78.0
|
||||||
Income before income tax
|
$
|
245.5
|
$
|
246.5
|
||||
Provision for income taxes
|
86.6
|
81.7
|
||||||
Net income
|
$
|
158.9
|
$
|
164.8
|
||||
Less: Net income attributable to non-controlling interest
|
1.8
|
2.2
|
||||||
Net income attributable to common stockholders
|
$
|
157.1
|
$
|
162.6
|
||||
Net income attributable to common stockholders per share:
|
||||||||
Basic
|
$
|
2.36
|
$
|
2.34
|
||||
Diluted
|
$
|
2.35
|
$
|
2.32
|
||||
Weighted average shares:
|
||||||||
Basic
|
59.8
|
63.1
|
||||||
Diluted
|
60.2
|
63.6
|
|
Three Months Ended
March 31,
|
|||||||
|
2016
|
2015
|
||||||
|
(In millions)
|
|||||||
Net income
|
$
|
158.9
|
$
|
164.8
|
||||
Other comprehensive income (loss):
|
||||||||
Unrealized gain on securities available-for-sale
|
3.0
|
1.4
|
||||||
Tax expense
|
(1.1
|
)
|
(0.5
|
)
|
||||
Unrealized gain on securities available-for-sale, net of tax
|
1.9
|
0.9
|
||||||
Unrealized loss on cash flow hedges
|
(3.3
|
)
|
(3.2
|
)
|
||||
Tax benefit
|
0.9
|
0.8
|
||||||
Unrealized loss on cash flow hedges, net of tax
|
(2.4
|
)
|
(2.4
|
)
|
||||
Unrealized loss on net investment hedge
|
(15.6
|
)
|
—
|
|||||
Foreign currency translation adjustments
|
25.2
|
(62.6
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
9.1
|
(64.1
|
)
|
|||||
Total comprehensive income, net of tax
|
$ |
168.0
|
$ |
100.7
|
||||
Less: Comprehensive income attributable to non-controlling interest
|
1.2
|
2.7
|
||||||
Comprehensive income attributable to common stockholders
|
$
|
166.8
|
$
|
98.0
|
||||
|
|
Three Months Ended
March 31,
|
|||||||
|
2016
|
2015
|
||||||
|
(In millions)
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
158.9
|
$
|
164.8
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
128.4
|
121.6
|
||||||
Deferred income taxes
|
(2.7
|
)
|
(1.6
|
)
|
||||
Provision for loan loss
|
171.9
|
134.9
|
||||||
Non-cash stock compensation
|
19.9
|
27.5
|
||||||
Amortization of deferred financing costs
|
8.4
|
7.8
|
||||||
Change in deferred revenue
|
(32.4
|
)
|
(28.0
|
)
|
||||
Change in contingent liability
|
—
|
(99.6
|
)
|
|||||
Change in other operating assets and liabilities, net of acquisitions
|
(236.1
|
)
|
(98.6
|
)
|
||||
Originations of credit card and loan receivables held for sale
|
(1,623.0
|
)
|
(1,373.2
|
)
|
||||
Sales of credit card and loan receivables held for sale
|
1,621.4
|
1,343.8
|
||||||
Other
|
42.7
|
(24.7
|
)
|
|||||
Net cash provided by operating activities
|
257.4
|
174.7
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Change in redemption settlement assets
|
(8.0
|
)
|
(12.6
|
)
|
||||
Change in restricted cash
|
(312.2
|
)
|
(0.7
|
)
|
||||
Change in credit card and loan receivables
|
383.9
|
401.8
|
||||||
Purchase of credit card portfolios
|
(755.3
|
)
|
—
|
|||||
Capital expenditures
|
(54.9
|
)
|
(42.4
|
)
|
||||
Purchases of other investments
|
(3.8
|
)
|
(7.8
|
)
|
||||
Maturities/sales of other investments
|
3.7
|
2.2
|
||||||
Other
|
(1.1
|
)
|
(3.2
|
)
|
||||
Net cash (used in) provided by investing activities
|
(747.7
|
)
|
337.3
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Borrowings under debt agreements
|
1,712.9
|
1,001.7
|
||||||
Repayments of borrowings
|
(1,227.2
|
)
|
(334.4
|
)
|
||||
Payment of acquisition-related contingent consideration
|
—
|
(205.9
|
)
|
|||||
Acquisition of non-controlling interest
|
(102.0
|
)
|
(87.4
|
)
|
||||
Issuances of deposits
|
1,136.9
|
406.7
|
||||||
Repayments of deposits
|
(659.5
|
)
|
(669.8
|
)
|
||||
Non-recourse borrowings of consolidated securitization entities
|
880.0
|
305.0
|
||||||
Repayments/maturities of non-recourse borrowings of consolidated securitization entities
|
(1,040.0
|
)
|
(700.0
|
)
|
||||
Payment of deferred financing costs
|
(4.3
|
)
|
(1.4
|
)
|
||||
Purchase of treasury shares
|
(408.8
|
)
|
(542.6
|
)
|
||||
Other
|
(1.6
|
)
|
16.4
|
|||||
Net cash provided by (used in) financing activities
|
286.4
|
(811.7
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
5.9
|
(17.1
|
)
|
|||||
Change in cash and cash equivalents
|
(198.0
|
)
|
(316.8
|
)
|
||||
Cash and cash equivalents at beginning of period
|
1,168.0
|
1,077.2
|
||||||
Cash and cash equivalents at end of period
|
$
|
970.0
|
$
|
760.4
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Interest paid
|
$
|
84.6
|
$
|
70.4
|
||||
Income taxes paid, net
|
$
|
112.7
|
$
|
21.7
|
||||
|
Three Months Ended March 31,
|
|||||||
2016
|
2015
|
|||||||
|
(In millions, except
per share amounts)
|
|||||||
Numerator
:
|
||||||||
Net income attributable to common stockholders
|
$
|
157.1
|
$
|
162.6
|
||||
Less: Accretion of redeemable non-controlling interest
|
15.9
|
15.2
|
||||||
Net income attributable to common stockholders after accretion of redeemable non-controlling interest
|
$
|
141.2
|
$
|
147.4
|
||||
Denominator:
|
||||||||
Weighted average shares, basic
|
59.8
|
63.1
|
||||||
Weighted average effect of dilutive securities:
|
||||||||
Net effect of dilutive stock options and unvested restricted stock
|
0.4
|
0.5
|
||||||
Denominator for diluted calculations
|
60.2
|
63.6
|
||||||
Net income attributable to common stockholders per share:
|
||||||||
Basic
|
$
|
2.36
|
$
|
2.34
|
||||
Diluted
|
$
|
2.35
|
$
|
2.32
|
|
March 31,
2016
|
December 31,
2015
|
||||||
|
(In millions)
|
|||||||
Principal receivables
|
$
|
12,881.4
|
$
|
13,196.4
|
||||
Billed and accrued finance charges
|
527.4
|
537.8
|
||||||
Other credit card receivables
|
81.3
|
65.3
|
||||||
Total credit card and loan receivables
|
13,490.1
|
13,799.5
|
||||||
Less credit card receivables – restricted for securitization investors
|
9,509.3
|
10,592.4
|
||||||
Other credit card and loan receivables
|
$
|
3,980.8
|
$
|
3,207.1
|
Three Months Ended March 31,
|
||||||||
|
2016
|
2015
|
||||||
|
(In millions)
|
|||||||
Balance at beginning of period
|
$
|
741.6
|
$
|
570.2
|
||||
Provision for loan loss
|
171.9
|
134.9
|
||||||
Allowance associated with credit card and loan receivables transferred to held for sale
|
(15.0
|
)
|
—
|
|||||
Change in estimate for uncollectible unpaid interest and fees
|
5.0
|
1.5
|
||||||
Recoveries
|
56.9
|
39.5
|
||||||
Principal charge-offs
|
(233.2
|
)
|
(159.4
|
)
|
||||
Balance at end of period
|
$
|
727.2
|
$
|
586.7
|
|
March 31,
2016
|
% of
Total
|
December 31,
2015
|
% of
Total
|
||||||||||||
|
(In millions, except percentages)
|
|||||||||||||||
Receivables outstanding – principal
|
$
|
12,881.4
|
100.0
|
%
|
$
|
13,196.4
|
100.0
|
%
|
||||||||
Principal receivables balances contractually delinquent:
|
||||||||||||||||
31 to 60 days
|
174.5
|
1.4
|
%
|
178.5
|
1.4
|
%
|
||||||||||
61 to 90 days
|
125.5
|
1.0
|
124.1
|
0.9
|
||||||||||||
91 or more days
|
247.9
|
1.9
|
257.0
|
1.9
|
||||||||||||
Total
|
$
|
547.9
|
4.3
|
%
|
$
|
559.6
|
4.2
|
%
|
Three Months Ended March 31, 2016
|
Three Months Ended March 31, 2015
|
|||||||||||||||||
Number of
Restructurings
|
Pre-modification
Outstanding Balance
|
Post-modification
Outstanding Balance
|
Number of
Restructurings
|
Pre-modification
Outstanding Balance
|
Post-modification
Outstanding Balance
|
|||||||||||||
|
(Dollars in millions)
|
|||||||||||||||||
Troubled debt restructurings – credit card receivables
|
50,761
|
$
|
60.6
|
$
|
60.5
|
39,014
|
$
|
42.5
|
$
|
42.4
|
Three Months Ended March 31, 2016
|
Three Months Ended March 31, 2015
|
|||||||||||
Number of Restructurings
|
Outstanding Balance
|
Number of Restructurings
|
Outstanding Balance
|
|||||||||
|
(Dollars in millions)
|
|||||||||||
Troubled debt restructurings that subsequently defaulted – credit card receivables
|
23,693
|
$
|
25.4
|
18,393
|
$
|
18.3
|
||||||
March 31, 2016
|
||||||||||||||||
Age of Accounts Since Origination
|
Number of Active
Accounts with Balances
|
Percentage of Active
Accounts with Balances
|
Principal
Receivables Outstanding
|
Percentage of Principal
Receivables Outstanding
|
||||||||||||
|
(In millions, except percentages)
|
|||||||||||||||
0-12 Months
|
5.9
|
27.2
|
%
|
$
|
3,354.8
|
26.0
|
%
|
|||||||||
13-24 Months
|
3.5
|
16.1
|
2,219.2
|
17.2
|
||||||||||||
25-36 Months
|
2.3
|
10.7
|
1,521.4
|
11.8
|
||||||||||||
37-48 Months
|
1.7
|
7.9
|
1,037.8
|
8.1
|
||||||||||||
49-60 Months
|
1.3
|
6.2
|
742.9
|
5.8
|
||||||||||||
Over 60 Months
|
6.9
|
31.9
|
4,005.3
|
31.1
|
||||||||||||
Total
|
21.6
|
100.0
|
%
|
$
|
12,881.4
|
100.0
|
%
|
March 31, 2015
|
||||||||||||||||
Age of Accounts Since Origination
|
Number of Active
Accounts with Balances
|
Percentage of Active
Accounts with Balances
|
Principal
Receivables Outstanding
|
|
Percentage of Principal
Receivables Outstanding
|
|||||||||||
|
(In millions, except percentages)
|
|||||||||||||||
0-12 Months
|
5.6
|
29.7
|
%
|
$
|
2,635.4
|
25.7
|
%
|
|||||||||
13-24 Months
|
2.8
|
14.8
|
1,542.4
|
15.0
|
||||||||||||
25-36 Months
|
1.9
|
10.3
|
1,089.6
|
10.6
|
||||||||||||
37-48 Months
|
1.4
|
7.4
|
815.9
|
8.0
|
||||||||||||
49-60 Months
|
1.0
|
5.5
|
611.0
|
6.0
|
||||||||||||
Over 60 Months
|
6.0
|
32.3
|
3,552.1
|
34.7
|
||||||||||||
Total
|
18.7
|
100.0
|
%
|
$
|
10,246.4
|
100.0
|
%
|
March 31, 2016
|
March 31, 2015
|
||||||||||||||||
Probability of an Account
Becoming 90 or More Days Past Due or
Becoming Charged-off (within the next 12 months)
|
Total Principal
Receivables Outstanding
|
Percentage of Principal
Receivables Outstanding
|
Total Principal
Receivables Outstanding
|
Percentage of Principal
Receivables Outstanding
|
|||||||||||||
(In millions, except percentages)
|
|||||||||||||||||
No Score
|
$
|
324.6
|
2.5
|
%
|
$
|
195.4
|
1.9
|
%
|
|||||||||
27.1% and higher
|
1,310.0
|
10.2
|
564.8
|
5.5
|
|||||||||||||
17.1% - 27.0% |
|
793.6
|
6.2
|
1,017.8
|
9.9
|
||||||||||||
12.6% - 17.0% |
|
1,035.3
|
8.0
|
1,178.4
|
11.5
|
||||||||||||
3.7% - 12.5%
|
|
5,709.8
|
44.3
|
4,262.6
|
41.6
|
||||||||||||
1.9% - 3.6%
|
|
1,640.2
|
12.7
|
1,939.9
|
19.0
|
||||||||||||
Lower than 1.9%
|
2,067.9
|
16.1
|
1,087.5
|
10.6
|
|||||||||||||
Total
|
$
|
12,881.4
|
100.0
|
%
|
$
|
10,246.4
|
100.0
|
%
|
|
March 31,
2016
|
December 31,
2015
|
|||||
|
(In millions)
|
||||||
Total credit card receivables – restricted for securitization investors
|
$ |
9,509.3
|
$
|
10,592.4
|
|||
Principal amount of credit card receivables – restricted for securitization investors, 90 days or more past due
|
$ |
173.9
|
$
|
198.8
|
|
Three Months Ended March 31,
|
|||||
|
2016
|
2015
|
||||
|
(In millions)
|
|||||
Net charge-offs of securitized principal
|
$ |
144.4
|
$ |
98.8
|
|
March 31, 2016
|
December 31, 2015
|
|||||||||||||||||||||||||||||
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair Value
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair Value
|
|||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Marketable securities
|
$
|
121.5
|
$
|
1.3
|
$
|
(0.6
|
)
|
$
|
122.2
|
$
|
121.5
|
$
|
0.4
|
$
|
(1.7
|
)
|
$
|
120.2
|
|||||||||||||
U.S. Treasury bonds
|
100.0
|
1.0
|
—
|
101.0
|
100.1
|
0.2
|
(0.1
|
)
|
100.2
|
||||||||||||||||||||||
Total
|
$
|
221.5
|
$
|
2.3
|
$
|
(0.6
|
)
|
$
|
223.2
|
$
|
221.6
|
$
|
0.6
|
$
|
(1.8
|
)
|
$
|
220.4
|
March 31, 2016
|
||||||||||||||||||
Less than 12 months
|
12 Months or Greater
|
Total
|
||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||
(In millions)
|
||||||||||||||||||
Marketable securities
|
$
|
10.3
|
$
|
(0.2
|
)
|
$
|
39.0
|
$
|
(0.4
|
)
|
$
|
49.3
|
$
|
(0.6
|
)
|
|||
Total
|
$
|
10.3
|
$
|
(0.2
|
)
|
$
|
39.0
|
$
|
(0.4
|
)
|
$
|
49.3
|
$
|
(0.6
|
)
|
December 31, 2015
|
||||||||||||||||||
Less than 12 months
|
12 Months or Greater
|
Total
|
||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||
(In millions)
|
||||||||||||||||||
Marketable securities
|
$
|
40.8
|
$
|
(0.7
|
)
|
$
|
34.6
|
$
|
(1.0
|
)
|
$
|
75.4
|
$
|
(1.7
|
)
|
|||
U.S. Treasury bonds
|
50.0
|
(0.1
|
)
|
—
|
—
|
50.0
|
(0.1
|
)
|
||||||||||
Total
|
$
|
90.8
|
$
|
(0.8
|
)
|
$
|
34.6
|
$
|
(1.0
|
)
|
$
|
125.4
|
$
|
(1.8
|
)
|
|
Amortized Cost
|
Fair Value
|
||||||
|
(In millions)
|
|||||||
Due in one year or less
|
$
|
31.8
|
$
|
31.8
|
||||
Due after one year through five years
|
75.0
|
76.0
|
||||||
Due after five years through ten years
|
3.7
|
3.8
|
||||||
Due after ten years
|
111.0
|
111.6
|
||||||
Total
|
$
|
221.5
|
$
|
223.2
|
|
March 31, 2016
|
December 31, 2015
|
|||||||||||||||||||||||||||||
|
Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
|||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Restricted cash
|
$
|
224.9
|
$
|
—
|
$
|
—
|
$
|
224.9
|
$
|
270.3
|
$
|
—
|
$
|
—
|
$
|
270.3
|
|||||||||||||||
Mutual funds
|
26.8
|
—
|
(0.1
|
)
|
26.7
|
25.2
|
—
|
(0.3
|
)
|
24.9
|
|||||||||||||||||||||
Corporate bonds
|
242.7
|
1.1
|
(0.2
|
)
|
243.6
|
160.4
|
1.1
|
(0.1
|
)
|
161.4
|
|||||||||||||||||||||
Total
|
$
|
494.4
|
$
|
1.1
|
$
|
(0.3
|
)
|
$
|
495.2
|
$
|
455.9
|
$
|
1.1
|
$
|
(0.4
|
)
|
$
|
456.6
|
March 31, 2016
|
||||||||||||||||||
Less than 12 months
|
12 Months or Greater
|
Total
|
||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||
(In millions)
|
||||||||||||||||||
Mutual funds
|
$
|
26.7
|
$
|
(0.1
|
)
|
$
|
—
|
$
|
—
|
$
|
26.7
|
$
|
(0.1
|
)
|
||||
Corporate bonds
|
70.1
|
(0.2
|
)
|
—
|
—
|
70.1
|
(0.2
|
)
|
||||||||||
Total
|
$
|
96.8
|
$
|
(0.3
|
)
|
$
|
—
|
$
|
—
|
$
|
96.8
|
$
|
(0.3
|
)
|
||||
December 31, 2015
|
||||||||||||||||||
Less than 12 months
|
12 Months or Greater
|
Total
|
||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||
(In millions)
|
||||||||||||||||||
Mutual funds
|
$
|
24.9
|
$
|
(0.3
|
)
|
$
|
—
|
$
|
—
|
$
|
24.9
|
$
|
(0.3
|
)
|
||||
Corporate bonds
|
27.8
|
(0.1
|
)
|
—
|
—
|
27.8
|
(0.1
|
)
|
||||||||||
Total
|
$
|
52.7
|
$
|
(0.4
|
)
|
$
|
—
|
$
|
—
|
$
|
52.7
|
$
|
(0.4
|
)
|
|
Amortized Cost
|
Fair Value
|
|||||
|
(In millions)
|
||||||
Due in one year or less
|
$
|
94.6
|
$
|
94.9
|
|||
Due after one year through five years
|
174.9
|
175.4
|
|||||
Total
|
$
|
269.5
|
$
|
270.3
|
March 31, 2016
|
|||||||||||||
Gross
Assets |
Accumulated
Amortization |
Net
|
Amortization Life and Method
|
||||||||||
(In millions)
|
|||||||||||||
Finite Lived Assets
|
|||||||||||||
Customer contracts and lists
|
$
|
1,210.6
|
$
|
(410.4
|
)
|
$
|
800.2
|
3-12 years—straight line
|
|||||
Premium on purchased credit card portfolios
|
310.3
|
(127.7
|
)
|
182.6
|
3-10 years—straight line
|
||||||||
Customer database
|
210.3
|
(172.4
|
)
|
37.9
|
3-10 years—straight line
|
||||||||
Collector database
|
53.8
|
(50.9
|
)
|
2.9
|
30 years—15% declining balance
|
||||||||
Publisher networks
|
140.2
|
(36.1
|
)
|
104.1
|
5-7 years—straight line
|
||||||||
Tradenames
|
85.9
|
(48.8
|
)
|
37.1
|
2-15 years—straight line
|
||||||||
Purchased data lists
|
11.8
|
(6.3
|
)
|
5.5
|
1-5 years—straight line, accelerated
|
||||||||
Favorable lease
|
6.9
|
(2.2
|
)
|
4.7
|
3-10 years—straight line
|
||||||||
$
|
2,029.8
|
$
|
(854.8
|
)
|
$
|
1,175.0
|
|||||||
Indefinite Lived Assets
|
|||||||||||||
Tradenames
|
12.4
|
—
|
12.4
|
Indefinite life
|
|||||||||
Total intangible assets
|
$
|
2,042.2
|
$
|
(854.8
|
)
|
$
|
1,187.4
|
December 31, 2015
|
|||||||||||||
Gross
Assets |
Accumulated
Amortization |
Net
|
Amortization Life and Method
|
||||||||||
(In millions)
|
|||||||||||||
Finite Lived Assets
|
|||||||||||||
Customer contracts and lists
|
$
|
1,195.2
|
$
|
(361.6
|
)
|
$
|
833.6
|
3-12 years—straight line
|
|||||
Premium on purchased credit card portfolios
|
259.5
|
(114.0
|
)
|
145.5
|
3-10 years—straight line, accelerated
|
||||||||
Customer database
|
210.3
|
(163.1
|
)
|
47.2
|
3-10 years—straight line
|
||||||||
Collector database
|
50.5
|
(47.7
|
)
|
2.8
|
30 years—15% declining balance
|
||||||||
Publisher networks
|
140.2
|
(29.2
|
)
|
111.0
|
5-7 years—straight line
|
||||||||
Tradenames
|
84.8
|
(44.1
|
)
|
40.7
|
2-15 years—straight line
|
||||||||
Purchased data lists
|
11.9
|
(6.4
|
)
|
5.5
|
1-5 years—straight line, accelerated
|
||||||||
Favorable lease
|
6.9
|
(1.9
|
)
|
5.0
|
3-10 years—straight line
|
||||||||
Noncompete agreements
|
1.3
|
(1.3
|
)
|
—
|
3 years—straight line
|
||||||||
$
|
1,960.6
|
$
|
(769.3
|
)
|
$
|
1,191.3
|
|||||||
Indefinite Lived Assets
|
|||||||||||||
Tradenames
|
12.4
|
—
|
12.4
|
Indefinite life
|
|||||||||
Total intangible assets
|
$
|
1,973.0
|
$
|
(769.3
|
)
|
$
|
1,203.7
|
For the Years Ending
December 31, |
||||
(In millions)
|
||||
2016 (excluding the three months ended March 31, 2016)
|
$
|
235.9
|
||
2017
|
279.7
|
|||
2018
|
226.7
|
|||
2019
|
180.3
|
|||
2020
|
126.6
|
|||
2021 & thereafter
|
125.8
|
|
LoyaltyOne
®
|
Epsilon
®
|
Card Services
|
Corporate/Other
|
Total
|
|||||||||||||||
|
(In millions)
|
|||||||||||||||||||
January 1, 2015
|
$
|
713.5
|
$
|
2,890.3
|
$
|
261.7
|
$
|
—
|
$
|
3,865.5
|
||||||||||
Goodwill acquired during the year
|
34.7
|
—
|
—
|
—
|
34.7
|
|||||||||||||||
Effects of foreign currency translation
|
(84.7
|
)
|
(1.4
|
)
|
—
|
—
|
(86.1
|
)
|
||||||||||||
December 31, 2015
|
663.5
|
2,888.9
|
261.7
|
—
|
3,814.1
|
|||||||||||||||
Effects of foreign currency translation
|
34.0
|
(0.5
|
)
|
—
|
—
|
33.5
|
||||||||||||||
March 31, 2016
|
$
|
697.5
|
$
|
2,888.4
|
$
|
261.7
|
$
|
—
|
$
|
3,847.6
|
Description
|
March
31,
2016
|
December
31,
2015
|
Maturity
|
Interest Rate
|
||||||||
(Dollars in millions) | ||||||||||||
Long-term and other debt:
|
|
|||||||||||
2013 revolving line of credit
|
|
$
|
982.0
|
$
|
465.0
|
July 2018 or December 2019
|
(1)
|
|||||
2013 term loans
|
|
2,670.6
|
|
2,703.8
|
Various
(
2)
|
(1)
|
||||||
BrandLoyalty revolving line of credit
|
|
75.0
|
|
69.7
|
August 2018
|
(3)
|
||||||
Senior notes due 2017
|
|
400.0
|
|
400.0
|
December 2017
|
5.250%
|
||||||
Senior notes due 2020
|
|
500.0
|
|
500.0
|
April 2020
|
6.375%
|
||||||
Senior notes due 2022
|
|
600.0
|
|
600.0
|
August 2022
|
5.375%
|
||||||
Senior notes due 2023 (€300.0 million)
|
|
341.4
|
|
325.8
|
November 2023
|
5.250%
|
||||||
Capital lease obligations and other debt
|
|
0.1
|
|
—
|
January 2019
|
3.06%
|
||||||
Total long-term and other debt
|
|
5,569.1
|
|
5,064.3
|
|
|||||||
Less: unamortized discount and debt issuance costs
|
|
44.9
|
|
46.9
|
|
|||||||
Less: current portion
|
|
373.2
|
|
369.4
|
|
|||||||
Long-term portion
|
|
$
|
5,151.0
|
$
|
4,648.0
|
|
||||||
Deposits:
|
|
|||||||||||
Certificates of deposit
|
|
$
|
4,527.4
|
$
|
4,252.0
|
Various – April 2016 – November 2021
|
0.43% to 2.80%
|
|||||
Money market deposits
|
|
1,572.4
|
|
1,370.3
|
On demand
|
(4)
|
||||||
Total deposits
|
6,099.8
|
5,622.3
|
||||||||||
Less: unamortized debt issuance costs
|
|
17.2
|
|
16.4
|
|
|||||||
Less: current portion
|
|
3,149.0
|
|
2,980.3
|
|
|||||||
Long-term portion
|
|
$
|
2,933.6
|
$
|
2,625.6
|
|
||||||
Non-recourse borrowings of consolidated securitization entities:
|
|
|
|
|||||||||
Fixed rate asset-backed term note securities
|
|
$
|
3,458.2
|
$ |
3,458.2
|
Various - May 2016 – August 2020
|
0.91% to 4.55%
|
|||||
Floating rate asset-backed term note securities
|
|
360.0
|
|
810.0
|
April 2018
|
(5)
|
||||||
Conduit asset-backed securities
|
|
2,515.0
|
|
2,225.0
|
Various - March 2017 – December 2017
|
(6)
|
||||||
Total non-recourse borrowings of consolidated securitization entities
|
6,333.2
|
6,493.2
|
||||||||||
Less: unamortized debt issuance costs
|
|
9.1
|
|
10.5
|
|
|||||||
Less: current portion
|
|
1,389.8
|
|
1,049.3
|
|
|||||||
Long-term portion
|
|
$
|
4,934.3
|
$
|
5,433.4
|
|
||||||
(1) | The interest rate is based upon the London Interbank Offered Rate ("LIBOR") plus an applicable margin. At March 31, 2016, the weighted average interest rate was 2.44% and 2.45% for the 2013 revolving line of credit and 2013 term loans, respectively. |
(2) | The maturity dates for the 2013 term loans are September 2016, July 2018 and December 2019. |
(3) | The interest rate is based upon the Euro Interbank Offered Rate plus an applicable margin. At March 31, 2016, the weighted average interest rate was 0.85%. |
(4) | The interest rates are based on the Federal Funds rate plus an applicable margin. At March 31, 2016, the interest rates ranged from 0.48% to 0.67%. |
(5) | The interest rate is based upon LIBOR plus an applicable margin. At March 31, 2016, the interest rate was 0.92%. |
(6) | The interest rate is based upon LIBOR or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. At March 31, 2016, the interest rates ranged from 1.40% to 1.64%. |
|
March 31, 2016
|
|||||||||
Notional Amount
|
Fair Value
|
Balance Sheet Location
|
|
Maturity
|
||||||
(In millions)
|
||||||||||
Designated as hedging instruments:
|
||||||||||
Foreign currency exchange hedges
|
$
|
3.8
|
$
|
0.2
|
Other current assets
|
April 2016
|
||||
Foreign currency exchange hedges
|
$
|
77.5
|
$
|
1.9
|
Other current liabilities
|
April 2016 to March 2017
|
||||
Net investment hedge
|
$
|
341.4
|
$
|
19.4
|
Long-term and other debt
|
November 2023
|
||||
|
December 31, 2015
|
||||||||||
Notional Amount
|
Fair Value
|
Balance Sheet Location
|
Maturity
|
||||||||
(In millions)
|
|||||||||||
Designated as hedging instruments:
|
|||||||||||
Foreign currency exchange hedges
|
$
|
56.7
|
$
|
2.7
|
Other current assets
|
January 2016 to October 2016
|
|||||
Foreign currency exchange hedges
|
$
|
23.7
|
$
|
0.4
|
Other current liabilities
|
January 2016 to September 2016
|
|||||
Net investment hedge
|
$
|
325.8
|
$
|
3.8
|
Long-term and other debt
|
November 2023
|
|||||
Not designated as hedging instruments:
|
|||||||||||
Foreign currency exchange forward contract
|
$
|
103.7
|
$
|
1.3
|
Other current liabilities
|
February 2016
|
|||||
Foreign currency exchange hedges
|
$
|
0.5
|
$
|
—
|
Other current liabilities
|
January 2016
|
|||||
|
Three Months Ended March 31, 2016
|
Three Months Ended March 31, 2015
|
||||||||
Income Statement Location
|
Loss on
Derivative Instruments
|
Income Statement Location
|
Gain (Loss) on
Derivative Instruments
|
|||||||
|
(In millions)
|
|||||||||
Foreign currency exchange forward contract
|
General and administrative
|
$
|
(0.1
|
)
|
General and administrative
|
$
|
(13.7
|
)
|
||
Foreign currency exchange hedges
|
Cost of operations
|
$
|
—
|
Cost of operations
|
$
|
0.3
|
||||
|
Deferred Revenue
|
|||||||||||
|
Service
|
Redemption
|
Total
|
|||||||||
|
(In millions)
|
|||||||||||
December 31, 2015
|
$
|
292.3
|
$
|
552.6
|
$
|
844.9
|
||||||
Cash proceeds
|
41.4
|
78.5
|
119.9
|
|||||||||
Revenue recognized
|
(44.0
|
)
|
(108.2
|
)
|
(152.2
|
)
|
||||||
Other
|
—
|
(0.1
|
)
|
(0.1
|
)
|
|||||||
Effects of foreign currency translation
|
18.6
|
33.8
|
52.4
|
|||||||||
March 31, 2016
|
$
|
308.3
|
$
|
556.6
|
$
|
864.9
|
||||||
Amounts recognized in the unaudited condensed consolidated balance sheets:
|
||||||||||||
Current liabilities
|
$
|
156.8
|
$
|
556.6
|
$
|
713.4
|
||||||
Non-current
liabilities
|
$
|
151.5
|
$
|
—
|
$
|
151.5
|
|
Redeemable Non-Controlling Interest
|
|||
(In millions)
|
||||
Balance at January 1, 2015
|
$
|
235.6
|
||
Net income attributable to non-controlling interest
|
8.9
|
|||
Other comprehensive income attributable to non-controlling interest
|
0.9
|
|||
Adjustment to redemption value
|
45.0
|
|||
Foreign currency translation adjustments
|
(24.1
|
)
|
||
Reclassification to accrued expenses
|
(98.9
|
)
|
||
Balance at December 31, 2015
|
$
|
167.4
|
||
Net income attributable to non-controlling interest
|
1.8
|
|||
Other comprehensive loss attributable to non-controlling interest
|
(0.7
|
)
|
||
Adjustment to redemption value
|
15.9
|
|||
Foreign currency translation adjustments
|
8.0
|
|||
Balance at March 31, 2016
|
$
|
192.4
|
|
Three Months Ended March 31,
|
||||||
2016
|
2015
|
||||||
|
(In millions)
|
||||||
Cost of operations
|
$
|
14.8
|
$
|
22.1
|
|||
General and administrative
|
5.1
|
5.4
|
|||||
Total
|
$
|
19.9
|
$
|
27.5
|
Three Months Ended March 31, 2016
|
Net Unrealized
Gains on Securities
|
Unrealized
Gains (Losses)
on Cash
Flow Hedges
|
Unrealized
Gains (Losses)
on Net
Investment Hedge
|
Foreign
Currency
Translation
Adjustments
(1)
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|||||||||||||||
(In millions)
|
||||||||||||||||||||
Balance at December 31, 2015
|
$
|
(0.1
|
)
|
$
|
1.3
|
$
|
(3.8
|
)
|
$
|
(134.7
|
)
|
$
|
(137.3
|
)
|
||||||
Changes in other comprehensive income (loss) before reclassifications
|
1.9
|
(2.9
|
)
|
(15.6
|
)
|
25.2
|
8.6
|
|||||||||||||
Amounts reclassified from other comprehensive income (loss)
|
—
|
0.5
|
—
|
—
|
0.5
|
|||||||||||||||
Changes in other comprehensive income (loss)
|
1.9
|
(2.4
|
)
|
(15.6
|
)
|
25.2
|
9.1
|
|||||||||||||
Balance at March 31, 2016
|
$
|
1.8
|
$
|
(1.1
|
)
|
$
|
(19.4
|
)
|
$
|
(109.5
|
)
|
$
|
(128.2
|
)
|
Three Months Ended March 31, 2015
|
Net Unrealized
Gains on Securities
|
Unrealized
Gains (Losses)
on Cash
Flow Hedges
|
Unrealized
Gains (Losses)
on Net
Investment Hedge
|
Foreign
Currency
Translation
Adjustments
(1)
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|||||||||||||||
(In millions)
|
||||||||||||||||||||
Balance at December 31, 2014
|
$
|
2.7
|
$
|
2.3
|
$
|
—
|
$
|
(80.5
|
)
|
$
|
(75.5
|
)
|
||||||||
Changes in other comprehensive income (loss) before reclassifications
|
0.9
|
(3.2
|
)
|
—
|
(62.6
|
)
|
(64.9
|
)
|
||||||||||||
Amounts reclassified from other comprehensive income (loss)
|
—
|
0.8
|
—
|
—
|
0.8
|
|||||||||||||||
Changes in other comprehensive income (loss)
|
0.9
|
(2.4
|
)
|
—
|
(62.6
|
)
|
(64.1
|
)
|
||||||||||||
Balance at March 31, 2015
|
$
|
3.6
|
$
|
(0.1
|
)
|
$
|
—
|
$
|
(143.1
|
)
|
$
|
(139.6
|
)
|
|||||||
(1) | Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates. |
|
March 31, 2016
|
December 31, 2015
|
||||||||||||||
|
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Financial assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
970.0
|
$
|
970.0
|
$
|
1,168.0
|
$
|
1,168.0
|
||||||||
Trade receivables, net
|
595.8
|
595.8
|
706.5
|
706.5
|
||||||||||||
Credit card and loan receivables, net
|
12,762.9
|
13,570.9
|
13,057.9
|
13,057.9
|
||||||||||||
Credit card and loan receivables held for sale
|
507.4
|
553.3
|
95.5
|
95.5
|
||||||||||||
Redemption settlement assets, restricted
|
495.2
|
495.2
|
456.6
|
456.6
|
||||||||||||
Other investments
|
223.2
|
223.2
|
220.4
|
220.4
|
||||||||||||
Cash collateral, restricted
|
8.3
|
8.3
|
7.2
|
7.2
|
||||||||||||
Derivative instruments
|
0.2
|
0.2
|
2.7
|
2.7
|
||||||||||||
Financial liabilities
|
||||||||||||||||
Accounts payable
|
404.0
|
404.0
|
442.4
|
442.4
|
||||||||||||
Derivative instruments
|
1.9
|
1.9
|
1.7
|
1.7
|
||||||||||||
Deposits
|
6,082.6
|
6,159.3
|
5,605.9
|
5,654.6
|
||||||||||||
Non-recourse borrowings of consolidated securitization entities
|
6,324.1
|
6,372.7
|
6,482.7
|
6,502.7
|
||||||||||||
Long-term and other debt
|
5,524.2
|
5,528.5
|
5,017.4
|
5,040.0
|
· | Level 1, defined as observable inputs such as quoted prices in active markets; |
· | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and |
· | Level 3, defined as unobservable inputs where little or no market data exists, therefore requiring an entity to develop its own assumptions. |
Fair Value Measurements at
March 31, 2016 Using |
||||||||||||||||
Balance at
March 31, 2016 |
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(In millions)
|
||||||||||||||||
Mutual funds
(1)
|
$
|
26.7
|
$
|
26.7
|
$
|
—
|
$
|
—
|
||||||||
Corporate bonds
(1)
|
243.6
|
—
|
243.6
|
—
|
||||||||||||
Marketable securities
(2)
|
122.2
|
5.0
|
117.2
|
—
|
||||||||||||
U.S. Treasury bonds
(2)
|
101.0
|
101.0
|
—
|
—
|
||||||||||||
Cash collateral, restricted
(3)
|
8.3
|
3.3
|
—
|
5.0
|
||||||||||||
Derivative instruments
(4)
|
0.2
|
—
|
0.2
|
—
|
||||||||||||
Total assets measured at fair value
|
$
|
502.0
|
$
|
136.0
|
$
|
361.0
|
$
|
5.0
|
||||||||
Derivative instruments
(4)
|
$
|
1.9
|
$
|
—
|
$
|
1.9
|
$
|
—
|
||||||||
Total liabilities measured at fair value
|
$
|
1.9
|
$
|
—
|
$
|
1.9
|
$
|
—
|
||||||||
Fair Value Measurements at
December 31, 2015 Using |
|||||||||||||||||
Balance at
December 31, 2015 |
Level 1
|
Level 2
|
Level 3
|
||||||||||||||
(In millions)
|
|||||||||||||||||
Mutual funds
(1)
|
$
|
24.9
|
$
|
24.9
|
$
|
—
|
$
|
—
|
|||||||||
Corporate bonds
(1)
|
161.4
|
—
|
161.4
|
—
|
|||||||||||||
Marketable securities
(2)
|
120.2
|
4.8
|
115.4
|
—
|
|||||||||||||
U.S. Treasury bonds
(2)
|
100.2
|
100.2
|
—
|
—
|
|||||||||||||
Cash collateral, restricted
(3)
|
7.2
|
2.3
|
—
|
4.9
|
|||||||||||||
Derivative instruments
(4)
|
2.7
|
—
|
2.7
|
—
|
|||||||||||||
Total assets measured at fair value
|
$
|
416.6
|
$ |
132.2
|
$
|
279.5
|
$
|
4.9
|
|||||||||
Derivative instruments
(4)
|
$
|
1.7
|
$
|
—
|
$
|
1.7
|
$
|
—
|
|||||||||
Total liabilities measured at fair value
|
$
|
1.7
|
$
|
—
|
$
|
1.7
|
$
|
—
|
|||||||||
(1) | Amounts are included in redemption settlement assets in the unaudited condensed consolidated balance sheets. |
(2) | Amounts are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets. |
(3) | Amounts are included in other non-current assets in the unaudited condensed consolidated balance sheets. |
(4) | Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets. |
Cash Collateral, Restricted
|
Contingent Consideration
|
|||||||||||||||
|
Three Months Ended
March 31,
|
Three Months Ended
March 31,
|
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(In millions)
|
||||||||||||||||
Balance at beginning of period
|
$
|
4.9
|
$
|
22.5
|
$
|
—
|
$
|
326.0
|
||||||||
Total gains (realized or unrealized):
|
||||||||||||||||
Included in earnings
|
0.1
|
0.2
|
—
|
0.5
|
||||||||||||
Purchases
|
—
|
—
|
—
|
—
|
||||||||||||
Sales
|
—
|
—
|
—
|
—
|
||||||||||||
Issuances
|
—
|
—
|
—
|
—
|
||||||||||||
Settlements
|
—
|
—
|
—
|
(305.5
|
)
|
|||||||||||
Foreign currency transaction adjustments
|
—
|
—
|
—
|
(21.0
|
)
|
|||||||||||
Transfers in or out of Level 3
|
—
|
—
|
—
|
—
|
||||||||||||
Balance at end of period
|
$
|
5.0
|
$
|
22.7
|
$
|
—
|
$
|
—
|
||||||||
Gains for the period included in earnings related to assets still held at end of period
|
$
|
0.1
|
$
|
0.2
|
$
|
—
|
$
|
—
|
|
Fair Value Measurements at
March 31, 2016
|
|||||||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
970.0
|
$
|
970.0
|
$
|
—
|
$
|
—
|
||||||||
Credit card and loan receivables, net
|
13,570.9
|
—
|
—
|
13,570.9
|
||||||||||||
Credit card and loan receivables held for sale
|
553.3
|
—
|
—
|
553.3
|
||||||||||||
Total
|
$
|
15,094.2
|
$
|
970.0
|
$
|
—
|
$
|
14,124.2
|
||||||||
|
||||||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
6,159.3
|
$
|
—
|
$
|
6,159.3
|
$
|
—
|
||||||||
Non-recourse borrowings of consolidated securitization entities
|
6,372.7
|
—
|
6,372.7
|
—
|
||||||||||||
Long-term and other debt
|
5,528.5
|
—
|
5,528.5
|
—
|
||||||||||||
Total
|
$
|
18,060.5
|
$
|
—
|
$
|
18,060.5
|
$
|
—
|
|
Fair Value Measurements at
December 31, 2015
|
|||||||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
1,168.0
|
$
|
1,168.0
|
$
|
—
|
$
|
—
|
||||||||
Credit card and loan receivables, net
|
13,057.9
|
—
|
—
|
13,057.9
|
||||||||||||
Credit card and loan receivables held for sale
|
95.5
|
—
|
—
|
95.5
|
||||||||||||
Total
|
$
|
14,321.4
|
$
|
1,168.0
|
$
|
—
|
$
|
13,153.4
|
||||||||
|
||||||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
5,654.6
|
$
|
—
|
$
|
5,654.6
|
$
|
—
|
||||||||
Non-recourse borrowings of consolidated securitization entities
|
6,502.7
|
—
|
6,502.7
|
—
|
||||||||||||
Long-term and other debt
|
5,040.0
|
—
|
5,040.0
|
—
|
||||||||||||
Total
|
$
|
17,197.3
|
$
|
—
|
$
|
17,197.3
|
$
|
—
|
• | LoyaltyOne provides coalition and short-term loyalty programs through the Company's Canadian AIR MILES Reward Program and BrandLoyalty; |
• | Epsilon provides end-to-end, integrated marketing solutions that leverage rich data, analytics, creativity and technology to help clients more effectively acquire, retain and grow relationships with their customers; and |
• | Card Services provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company's private label and co-brand retail credit card programs. |
Three Months Ended March 31, 2016
|
LoyaltyOne
|
Epsilon
|
Card Services
|
Corporate/ Other
|
Eliminations
|
Total
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Revenues
|
$
|
354.6
|
$
|
493.3
|
$
|
835.5
|
$
|
0.1
|
$
|
(7.4
|
)
|
$
|
1,676.1
|
|||||||||||
Income (loss) before income taxes
|
$
|
55.8
|
$
|
(12.5
|
)
|
$
|
283.7
|
$
|
(81.5
|
)
|
$
|
—
|
$
|
245.5
|
||||||||||
Interest expense, net
|
(0.1
|
)
|
—
|
47.6
|
51.3
|
—
|
98.8
|
|||||||||||||||||
Operating income (loss)
|
55.7
|
(12.5
|
)
|
331.3
|
(30.2
|
)
|
—
|
344.3
|
||||||||||||||||
Depreciation and amortization
|
20.9
|
84.7
|
20.1
|
2.7
|
—
|
128.4
|
||||||||||||||||||
Stock compensation expense
|
2.6
|
8.5
|
3.7
|
5.1
|
—
|
19.9
|
||||||||||||||||||
Adjusted EBITDA
(1)
|
79.2
|
80.7
|
355.1
|
(22.4
|
)
|
—
|
492.6
|
|||||||||||||||||
Less: Securitization funding costs
|
—
|
—
|
30.4
|
—
|
—
|
30.4
|
||||||||||||||||||
Less: Interest expense on deposits
|
—
|
—
|
17.2
|
—
|
—
|
17.2
|
||||||||||||||||||
Less: Adjusted EBITDA attributable to non-controlling interest
|
5.5
|
—
|
—
|
—
|
—
|
5.5
|
||||||||||||||||||
Adjusted EBITDA, net
(1)
|
$
|
73.7
|
$
|
80.7
|
$
|
307.5
|
$
|
(22.4
|
)
|
$
|
—
|
$
|
439.5
|
Three Months Ended March 31, 2015
|
LoyaltyOne
|
Epsilon
|
Card Services
|
Corporate/ Other
|
Eliminations
|
Total
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Revenues
|
$
|
388.0
|
$
|
504.9
|
$
|
714.7
|
$
|
0.1
|
$
|
(6.5
|
)
|
$
|
1,601.2
|
|||||||||||
Income (loss) before income taxes
|
$
|
53.8
|
$
|
7.0
|
$
|
259.7
|
$
|
(74.0
|
)
|
$
|
—
|
$
|
246.5
|
|||||||||||
Interest expense, net
|
0.7
|
—
|
35.6
|
41.7
|
—
|
78.0
|
||||||||||||||||||
Operating income (loss)
|
54.5
|
7.0
|
295.3
|
(32.3
|
)
|
—
|
324.5
|
|||||||||||||||||
Depreciation and amortization
|
19.9
|
81.2
|
18.3
|
2.2
|
—
|
121.6
|
||||||||||||||||||
Stock compensation expense
|
3.0
|
15.4
|
3.7
|
5.4
|
—
|
27.5
|
||||||||||||||||||
Adjusted EBITDA
(1)
|
77.4
|
103.6
|
317.3
|
(24.7
|
)
|
—
|
473.6
|
|||||||||||||||||
Less: Securitization funding costs
|
—
|
—
|
23.8
|
—
|
—
|
23.8
|
||||||||||||||||||
Less: Interest expense on deposits
|
—
|
—
|
11.7
|
—
|
—
|
11.7
|
||||||||||||||||||
Less: Adjusted EBITDA attributable to non-controlling interest
|
7.8
|
—
|
—
|
—
|
—
|
7.8
|
||||||||||||||||||
Adjusted EBITDA, net
(1)
|
$
|
69.6
|
$
|
103.6
|
$
|
281.8
|
$
|
(24.7
|
)
|
$
|
—
|
$
|
430.3
|
|||||||||||
(1)
|
Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on GAAP plus stock compensation expense, provision for income taxes, interest expense, net, depreciation and other amortization, and the amortization of purchased intangibles. Adjusted EBITDA, net is also a non-GAAP financial measure equal to adjusted EBITDA less securitization funding costs, interest expense on deposits and adjusted EBITDA attributable to the non-controlling interest. Adjusted EBITDA and adjusted EBITDA, net are presented in accordance with ASC 280 as they are the primary performance metrics utilized to assess performance of the segments.
|
• | For the three months ended March 31, 2016, as compared to three months ended March 31, 2015: |
• | Revenue increased 5% to $1.7 billion. |
• | Net income decreased 4% to $158.9 million. |
• | Adjusted EBITDA, net increased 2% to $439.5 million. |
• | Earnings per share increased 1% to $2.35. |
• | We repurchased approximately 2.0 million shares for $413.8 million for the three months ended March 31, 2016. |
• | Effective January 1, 2016, we acquired an additional 10% ownership interest in BrandLoyalty Group B.V., or BrandLoyalty, for approximately $102.0 million, bringing our total ownership interest to 80%. |
• | For the three months ended March 31, 2016, we purchased three existing private label credit card portfolios for total consideration paid of $755.3 million, subject to customary purchase price adjustments. |
Three Months Ended March 31,
|
||||||||
2016
|
2015
|
|||||||
(In millions)
|
||||||||
Net income
|
$
|
158.9
|
$
|
164.8
|
||||
Stock compensation expense
|
19.9
|
27.5
|
||||||
Provision for income taxes
|
86.6
|
81.7
|
||||||
Interest expense, net
|
98.8
|
78.0
|
||||||
Depreciation and other amortization
|
39.8
|
33.6
|
||||||
Amortization of purchased intangibles
|
88.6
|
88.0
|
||||||
Adjusted EBITDA
|
492.6
|
473.6
|
||||||
Less: Securitization funding costs
|
30.4
|
23.8
|
||||||
Less: Interest expense on deposits
|
17.2
|
11.7
|
||||||
Less: Adjusted EBITDA attributable to non-controlling interest
|
5.5
|
7.8
|
||||||
Adjusted EBITDA, net
|
$
|
439.5
|
$
|
430.3
|
Three Months Ended March 31,
|
% Change
|
|||||||||||
2016
|
2015
|
2016 to 2015
|
||||||||||
Revenues
|
(In millions, except percentages)
|
|||||||||||
Transaction
|
$
|
82.5
|
$
|
93.3
|
(12
|
)%
|
||||||
Redemption
|
278.2
|
308.1
|
(10
|
)
|
||||||||
Finance charges, net
|
808.0
|
679.5
|
19
|
|||||||||
Marketing services
|
452.0
|
471.2
|
(4
|
)
|
||||||||
Other revenue
|
55.4
|
49.1
|
13
|
|||||||||
Total revenue
|
1,676.1
|
1,601.2
|
5
|
%
|
||||||||
Operating expenses
|
||||||||||||
Cost of operations (exclusive of depreciation and amortization disclosed separately below)
|
1,003.9
|
990.0
|
1
|
|||||||||
Provision for loan loss
|
171.9
|
134.9
|
27
|
|||||||||
General and administrative
|
27.6
|
30.2
|
(9
|
)
|
||||||||
Depreciation and other amortization
|
39.8
|
33.6
|
18
|
|||||||||
Amortization of purchased intangibles
|
88.6
|
88.0
|
1
|
|||||||||
Total operating expenses
|
1,331.8
|
1,276.7
|
4
|
%
|
||||||||
Operating income
|
344.3
|
324.5
|
6
|
%
|
||||||||
Interest expense
|
||||||||||||
Securitization funding costs
|
30.4
|
23.8
|
28
|
|||||||||
Interest expense on deposits
|
17.2
|
11.7
|
46
|
|||||||||
Interest expense on long-term and other debt, net
|
51.2
|
42.5
|
21
|
|||||||||
Total interest expense, net
|
98.8
|
78.0
|
27
|
|||||||||
Income before income tax
|
$
|
245.5
|
$
|
246.5
|
—
|
%
|
||||||
Provision for income taxes
|
86.6
|
81.7
|
6
|
|||||||||
Net income
|
$
|
158.9
|
$
|
164.8
|
(4
|
)%
|
||||||
Key Operating Metrics:
|
||||||||||||
Credit card statements generated
|
65.5
|
58.7
|
12
|
%
|
||||||||
Credit sales
|
$
|
6,178.2
|
$
|
4,959.8
|
25
|
%
|
||||||
Average credit card and loan receivables
|
$
|
13,536.7
|
$
|
10,677.3
|
27
|
%
|
||||||
AIR MILES reward miles issued
|
1,286.3
|
1,228.9
|
5
|
%
|
||||||||
AIR MILES reward miles redeemed
|
1,283.9
|
1,212.6
|
6
|
%
|
• | Transaction . Revenue decreased $10.8 million, or 12%, to $82.5 million for the three months ended March 31, 2016 as a result of a $7.5 million decrease in servicing fees charged to our credit cardholders due to changes in program fee structures as well as a $2.8 million decrease in AIR MILES reward miles issuance fees, for which we provide marketing and administrative services, due to the decline in the Canadian dollar relative to the U.S. dollar. |
• | Redemption . Revenue decreased $29.9 million, or 10%, to $278.2 million for the three months ended March 31, 2016. Redemption revenue was negatively impacted by the decline in both the Euro and Canadian dollar relative to the U.S. dollar, which resulted in a $15.8 million decrease in revenue. Excluding the impact of foreign exchange, redemption revenue decreased $14.1 million due to an $18.2 million decrease resulting from the timing of short-term loyalty programs in market for the three months ended March 31, 2016 as compared to the prior year period, offset by an increase in revenue from our coalition loyalty program due to a 6% increase in the number of AIR MILES reward miles redeemed. |
• | Finance charges, net . Revenue increased $128.5 million, or 19%, to $808.0 million for the three months ended March 31, 2016 . This increase was driven by a 27% increase in average credit card and loan receivables, which increased revenue $182.0 million through a combination of recent credit card portfolio acquisitions and strong cardholder spending. This increase was offset in part by an approximate 160 basis point decline in yield due to improvement in early stage delinquencies and the onboarding of new programs, which decreased revenue by $53.5 million. |
• | Marketing Services . Revenue decreased $19.2 million, or 4%, to $452.0 million for the three months ended March 31, 2016 . The decrease in revenue was driven by weakness in our agency offerings, specifically in the telecommunications, consumer packaged goods and retail verticals. |
• | Other revenue . Revenue increased $6.3 million, or 13%, to $55.4 million for the three months ended March 31, 2016 due to additional consulting services provided by Epsilon. |
• | Within the LoyaltyOne segment, cost of operations decreased $35.5 million due to the decline in both the Euro and Canadian dollar relative to the U.S. dollar, which resulted in an $18.1 million decrease in cost of operations. Additionally, excluding the impact of foreign exchange, cost of redemptions declined $20.6 million related to our short-term loyalty programs with fewer programs in market for the three months ended March 31, 2016 as compared to the prior year period. |
• | Within the Epsilon segment, cost of operations increased $4.4 million due to a $6.9 million increase in payroll and benefit expenses. |
• | Within the Card Services segment, cost of operations increased by $46.0 million, with a $33.6 million increase in credit card processing expenses due to growth. Additionally, payroll and benefit expenses increased $12.4 million due to an increase in the number of associates to support growth. |
• | Securitization funding costs . Securitization funding costs increased $6.6 million due to higher average borrowings with comparable average interest rates. |
• | Interest expense on deposits . Interest expense on deposits increased $5.5 million due to higher average borrowings and higher average interest rates. |
• | Interest expense on long-term and other debt, net . Interest expense on long-term and other debt, net increased $8.7 million due to a $4.3 million increase related to the €300.0 million senior notes due 2023 issued in November 2015 and a $5.0 million increase related to the credit facility due to higher average balances resulting from the $200.0 million incremental term loans borrowed in September 2015 and borrowings on our revolving line of credit, as well as slightly higher average interest rates. |
Three Months Ended March 31,
|
% Change
|
||||||||||||
2016
|
2015
|
2016 to 2015
|
|||||||||||
Revenue:
|
(In millions, except percentages)
|
||||||||||||
LoyaltyOne
|
$
|
354.6
|
$
|
388.0
|
(9
|
)%
|
|||||||
Epsilon
|
493.3
|
504.9
|
(2
|
)
|
|||||||||
Card Services
|
835.5
|
714.7
|
17
|
||||||||||
Corporate/Other
|
0.1
|
0.1
|
nm
|
||||||||||
Eliminations
|
(7.4
|
)
|
(6.5
|
)
|
nm
|
||||||||
Total
|
$
|
1,676.1
|
$
|
1,601.2
|
5
|
%
|
|||||||
Adjusted EBITDA, net
(1)
:
|
|||||||||||||
LoyaltyOne
|
$
|
73.7
|
$
|
69.6
|
6
|
%
|
|||||||
Epsilon
|
80.7
|
103.6
|
(22
|
)
|
|||||||||
Card Services
|
307.5
|
281.8
|
9
|
||||||||||
Corporate/Other
|
(22.4
|
)
|
(24.7
|
)
|
(9
|
)
|
|||||||
Eliminations
|
—
|
—
|
nm
|
||||||||||
Total
|
$
|
439.5
|
$
|
430.3
|
2
|
%
|
|||||||
(1) | Adjusted EBITDA, net is equal to net income, plus stock compensation expense, provision for income taxes, interest expense, net, depreciation and amortization and amortization of purchased intangibles, less securitization funding costs, interest expense on deposits and adjusted EBITDA attributable to the non-controlling interest. For a reconciliation of adjusted EBITDA, net to net income, the most directly comparable GAAP financial measure, see "Use of Non-GAAP Financial Measures" included in this report. |
• | LoyaltyOne . Revenue decreased $33.4 million, or 9%, to $354.6 million for the three months ended March 31 , 2016. Revenue was negatively impacted by the decline in both the Euro and Canadian dollar relative to the U.S. dollar, which resulted in a $23.9 million decrease in revenue. Additionally, revenue was negatively impacted by the timing of short-term loyalty programs in market during the three months ended March 31, 2016 as compared to the prior year period. |
• | Epsilon . Revenue decreased $11.6 million, or 2%, to $493.3 million for the three months ended March 31 , 2016 due to a $39.4 million decrease in our agency offerings, specifically in the telecommunications, consumer packaged goods and retail verticals. This weakness was offset in part by a $27.8 million increase in digital and technology platforms revenue, driven by strength in customer relationship marketing services as well as the onboarding of new clients. |
• | Card Services . Revenue increased $120.8 million, or 17%, to $835.5 million for the three months ended March 31 , 2016, driven by a $128.5 million increase in f inance charges, net as a result of a 27% increase in average credit card and loan receivables due to recent portfolio acquisitions and strong cardholder spending. |
• | LoyaltyOne . Adjusted EBITDA, net increased $4.1 million, or 6%, to $73.7 million for the three months ended March 31, 2016. Adjusted EBITDA margins expanded in the current year period as a result of strong cost controls and lower product procurement costs, but this expansion was offset in part by a w eaker Canadian dollar and Euro against the U.S. dollar, which negatively impacted adjusted EBITDA, net by $5.9 million. |
• | Epsilon . Adjusted EBITDA, net decreased $22.9 million, or 22%, to $80.7 million for the three months ended March 31, 2016, primarily due to the decline in revenue coupled with an increase in payroll costs in the current year period. |
• | Card Services . Adjusted EBITDA, net increased $25.7 million, or 9%, to $307.5 million for the three months ended March 31, 2016 . Adjusted EBITDA, net was positively impacted by an increase in finance charges, net, but offset in part by both an increase in operating expenses due to increased volumes and an increase in the provision for loan loss resulting from the increase in credit card and loan receivables. |
• | Corporate/Other . Adjusted EBITDA, net increased $2.3 million to a loss of $22.4 million for the three months ended March 31, 2016 as lower payroll and benefit expenses were offset in part by net foreign currency exchange gains related to the February 2015 settlement of the contingent liability associated with the BrandLoyalty acquisition. |
|
March 31,
2016
|
% of
Total
|
December 31,
2015
|
% of
Total
|
||||||||||||
|
(In millions, except percentages)
|
|||||||||||||||
Receivables outstanding – principal
|
$
|
12,881.4
|
100.0
|
%
|
$
|
13,196.4
|
100.0
|
%
|
||||||||
Principal receivables balances contractually delinquent:
|
||||||||||||||||
31 to 60 days
|
174.5
|
1.4
|
%
|
178.5
|
1.4
|
%
|
||||||||||
61 to 90 days
|
125.5
|
1.0
|
124.1
|
0.9
|
||||||||||||
91 or more days
|
247.9
|
1.9
|
257.0
|
1.9
|
||||||||||||
Total
|
$
|
547.9
|
4.3
|
%
|
$
|
559.6
|
4.2
|
%
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
2015
|
|||||
(In millions, except percentages)
|
|||||||
Average credit card receivables
|
$
|
13,536.7
|
$
|
10,677.3
|
|||
Net charge-offs of principal receivables
|
176.4
|
119.9
|
|||||
Net charge-offs as a percentage of average credit card receivables
|
5.2
|
%
|
4.5
|
%
|
• | Restricted cash . The use of cash increased $312.2 million during the three months ended March 31, 2016 due to the principal accumulation for the repayment of non-recourse borrowings of consolidated securitized debt that matures in May 2016. |
• | Credit card and loan receivables, net. Cash increased $383.9 million and $401.8 million for the three months ended March 31, 2016 and 2015, respectively, due to the seasonal paydown of credit card and loan receivables. |
• | Purchase of credit card portfolios . During the three months ended March 31, 2016, we paid $755.3 million to acquire three private label credit card portfolios. |
|
2016
|
2017
|
2018
|
2019
|
2020 and Thereafter
|
Total
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Term notes
|
$
|
600.0
|
$
|
950.0
|
$
|
991.0
|
$
|
802.2
|
$
|
475.0
|
$
|
3,818.2
|
||||||||||||
Conduit facilities
(1)
|
—
|
2,950.0
|
—
|
—
|
—
|
2,950.0
|
||||||||||||||||||
Total
(2)
|
$
|
600.0
|
$
|
3,900.0
|
$
|
991.0
|
$
|
802.2
|
$
|
475.0
|
$
|
6,768.2
|
||||||||||||
(1) | Amount represents borrowing capacity, not outstanding borrowings. |
(2) | Total amounts do not include $2.1 billion of debt issued by the credit card securitization trusts, which was retained by us and has been eliminated in the unaudited condensed consolidated financial statements . |
·
|
loss of, or reduction in demand for services from, significant clients;
|
·
|
increased redemptions by AIR MILES
®
Reward Program collectors;
|
·
|
increases in the cost of doing business, including market interest rates;
|
·
|
loss of active AIR MILES Reward Program collectors;
|
·
|
disruptions in the airline or travel industries;
|
·
|
failure to identify or successfully integrate business acquisitions;
|
·
|
increases in net charge-offs in credit card and loan receivables;
|
·
|
inability to access the asset-backed securitization funding market;
|
·
|
unfavorable fluctuations in foreign currency exchange rates;
|
·
|
limitations on consumer credit, loyalty or marketing services from new legislative or regulatory actions related to consumer protection and consumer privacy;
|
·
|
increases in FDIC, Delaware or Utah regulatory capital requirements for banks;
|
·
|
failure to maintain exemption from regulation under the Bank Holding Company Act;
|
·
|
loss or disruption, due to cyber attack or other service failures, of data center operations or capacity;
|
·
|
loss of consumer information due to compromised physical or cyber security; and
|
·
|
those factors set forth in the Risk Factors section in our Annual Report on Form 10-K for the most recently ended fiscal year as well as those factors discussed in Item 1A of this Form 10-Q, elsewhere in this Form 10-Q and in the documents incorporated by reference in this Form 10-Q.
|
Period
|
Total Number of Shares Purchased
(1)
|
Average Price Paid per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans or Programs
|
Approximate Dollar
Value of Shares that
May Yet Be Purchased
Under the Plans or Programs
(2)
|
|||||||||
|
(Dollars in millions)
|
||||||||||||
During 2016:
|
|||||||||||||
January 1-31
|
465,757
|
$
|
231.44
|
458,606
|
$
|
893.9
|
|||||||
February 1-29
|
1,282,381
|
197.06
|
1,268,250
|
644.0
|
|||||||||
March 1-31
|
279,468
|
211.74
|
273,144
|
586.2
|
|||||||||
Total
|
2,027,606
|
$
|
206.98
|
2,000,000
|
$
|
586.2
|
|||||||
(1) | During the period represented by the table, 27,606 shares of our common stock were purchased by the administrator of our 401(k) and Retirement Savings Plan for the benefit of the employees who participated in that portion of the plan. |
(2) | On January 1, 2016, our Board of Directors authorized a stock repurchase program to acquire up to $500.0 million of our outstanding common stock from January 1, 2016 through December 31, 2016. On February 15, 2016, our Board of Directors authorized an increase to the stock repurchase program originally approved on January 1, 2016 to acquire an additional $500.0 million of our outstanding common stock through December 31, 2016, for a total authorization of $1.0 billion. Both authorizations are subject to any restrictions pursuant to the terms of our credit agreements, indentures, applicable securities laws or otherwise. |
(a)
|
Exhibits:
|
Incorporated by Reference
|
|||||||||||
Exhibit No.
|
Filer
|
Description
|
Form
|
Exhibit
|
Filing Date
|
3.1
|
(a)
|
Second Amended and Restated Certificate of Incorporation of the Registrant.
|
S-1
|
3.1
|
3/3/00
|
||||||
3.2
|
(a)
|
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of the Registrant.
|
8-K
|
3.1
|
6/7/13
|
||||||
3.3
|
(a)
|
Certificate of Retirement of Series A Preferred Stock of the Registrant dated March 23, 2016.
|
8-K
|
3.1
|
3/25/16
|
||||||
3.4
|
(a)
|
Fifth Amended and Restated Bylaws of the Registrant.
|
8-K
|
3.1
|
2/1/16
|
||||||
4
|
(a)
|
Specimen Certificate for shares of Common Stock of the Registrant.
|
10-Q
|
4
|
8/8/03
|
||||||
10.1
|
(a)
|
Form of Time-Based Restricted Stock Unit Award Agreement under the Alliance Data Systems Corporation 2015 Omnibus Incentive Plan.
|
8-K
|
10.1
|
2/17/16
|
||||||
10.2
|
(a)
|
Form of Performance-Based Restricted Stock Unit Award Agreement under the Alliance Data Systems Corporation 2015 Omnibus Incentive Plan (2016 grant).
|
8-K
|
10.2
|
2/17/16
|
||||||
10.3
|
(a)
|
Incremental Term Loan Extension Request, dated as of April 15, 2016, by and among Alliance Data Systems Corporation, Wells Fargo Bank, N.A., as Administrative Agent, and Bank of America, N.A.
|
8-K
|
10.1
|
4/21/16
|
||||||
*31.1
|
(a)
|
Certification of Chief Executive Officer of Alliance Data Systems Corporation pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
|
|||||||||
*31.2
|
(a)
|
Certification of Chief Financial Officer of Alliance Data Systems Corporation pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
|
|||||||||
*32.1
|
(a)
|
Certification of Chief Executive Officer of Alliance Data Systems Corporation pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.
|
|||||||||
*32.2
|
(a)
|
Certification of Chief Financial Officer of Alliance Data Systems Corporation pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.
|
Incorporated by Reference
|
|||||||||||
Exhibit No.
|
Filer
|
Description
|
Form
|
Exhibit
|
Filing Date
|
*101.INS
|
(a)
|
XBRL Instance Document
|
|||||||||
*101.SCH
|
(a)
|
XBRL Taxonomy Extension Schema Document
|
|||||||||
*101.CAL
|
(a)
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|||||||||
*101.DEF
|
(a)
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|||||||||
*101.LAB
|
(a)
|
XBRL Taxonomy Extension Label Linkbase Document
|
|||||||||
*101.PRE
|
(a)
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|||||||||
*
|
Filed herewith
|
||||||||||
+
|
Management contract, compensatory plan or arrangement
|
||||||||||
(a) |
Alliance Data Systems Corporation
|
ALLIANCE DATA SYSTEMS CORPORATION
|
By:
|
/s/
Edward J. Heffernan
|
||
Edward J. Heffernan
|
|||
President and Chief Executive Officer
|
By:
|
/s/
Charles L. Horn
|
||
Charles L. Horn
|
|||
Executive Vice President and Chief Financial Officer
|
1 Year Alliance Data Systems Chart |
1 Month Alliance Data Systems Chart |
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