Related Party Transactions

3 Months Ended

Mar. 31, 2017

The Company operates a joint venture ("Brazilian Venture") with Banco Bradesco S.A. ("Banco Bradesco"), in which we own a 51% controlling interest, to provide comprehensive, fully-outsourced transaction processing, call center, cardholder support and collection services to multiple card issuing clients in Brazil, including Banco Bradesco. The original accounting for this transaction resulted in the establishment of a contract intangible asset and a liability for amounts payable to the original partner banks upon final migration of their respective card portfolios and achieving targeted volumes (the “Brazilian Venture Notes”). The unamortized contract intangible asset balance as of March 31, 2017 was $86 million. The carrying value of the noncontrolling interest as of March 31, 2017 was $107 million.

The Company recorded revenues of $80 million and $55 million during the three months ended March 31, 2017 and 2016, respectively, from Banco Bradesco. Revenues included $14 million of favorable currency impact during the three months ended March 31, 2017, resulting from foreign currency exchange rate fluctuations between the U.S. Dollar and Brazilian Real.

A summary of the Company’s related party receivables and payables is as follows (in millions):



		March 31,		December 31,
Related Party	Balance sheet location	2017		2016
Banco Bradesco	Trade receivables	$	48	$	45
Banco Bradesco	Accounts payable and accrued liabilities	11		10
Banco Bradesco	Other long-term liabilities	23		22