DFS Annual Report

Notes to the Consolidated and Combined Financial Statements (in millions, except per share data, unless otherwise indicated)-(Continued) Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash (used in) provided by operating activities . . . . . . . . . . $ (1.2) $103.2 $ 6.4 $(2.4) $ 106.0 INVESTING ACTIVITIES Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (23.6) (2.6) — (26.2) Purchases of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (3.5) — — (3.5) Other investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 0.4 — 0.4 Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . — (27.1) (2.2) — (29.3) FINANCING ACTIVITIES Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . 348.2 — — — 348.2 Payments on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50.0) — — — (50.0) Net change in short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . — — (8.8) — (8.8) Debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9.3) — — — (9.3) Net transfers to Parent and affiliates . . . . . . . . . . . . . . . . . . . . . (287.7) (54.4) 2.0 — (340.1) Net cash provided by (used in) financing activities . . . . . . . . . . 1.2 (54.4) (6.8) — (60.0) Effect of exchange rate on cash and cash equivalents . . . . . . . . — — 4.4 — 4.4 Net increase (decrease) in cash and cash equivalents . . . . . . . . — 21.7 1.8 (2.4) 21.1 Cash and cash equivalents at beginning of year . . . . . . . . . . . . . — 0.1 15.0 — 15.1 Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . $ — $ 21.8 $16.8 $(2.4) $ 36.2 Supplemental non-cash disclosure: Debt exchange with RR Donnelley, including $5.5 million of debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300.0 $ — $ — $— $ 300.0 Settlement of intercompany note payable . . . . . . . . . . . . . . . . . — 29.6 — — 29.6 Accrued debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 — — — 1.5 F-42