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, 2015 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated OPERATING ACTIVITIES Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . $— $106.7 $ 14.2 $— $120.9 INVESTING ACTIVITIES Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (25.9) (1.2) — (27.1) Purchases of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (10.0) — — (10.0) Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . — (35.9) (1.2) — (37.1) FINANCING ACTIVITIES Net change in short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (24.0) — (24.0) Payments on note payable with an RRD affiliate . . . . . . . . . . . . . — (14.6) (0.2) — (14.8) Net transfers to Parent and affiliates . . . . . . . . . . . . . . . . . . . . . . . — (56.2) 0.2 — (56.0) Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . — (70.8) (24.0) — (94.8) Effect of exchange rate on cash and cash equivalents . . . . . . . . . — — (2.5) — (2.5) Net decrease in cash and cash equivalents . . . . . . . . . . . . . . . . . . — — (13.5) — (13.5) Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . — 0.1 28.5 — 28.6 Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . $— $ 0.1 $ 15.0 $— $ 15.1 F-43