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Related Party Transactions | 12 Months Ended
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Dec. 31, 2015
Related Party Transactions [Abstract] |
Related Party Transactions | Note 20—Related Party Transactions The following table presents the Company’s transactions with related parties for each of the periods presented below:
|  | Years ended December 31, |
(Dollar amounts in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
|  |  |  |  | (As Restated) |
Total revenues (1)(2) |  | $ | 169,433 |  |  | $ | 164,336 |  |  | $ | 167,440 |
Cost of revenues |  | $ | 1,701 |  |  | $ | 1,946 |  |  | $ | 8,429 |
Rent and other fees (3)(4) |  | $ | 7,880 |  |  | $ | 7,928 |  |  | $ | 27,762 |
Interest earned from and charged by affiliate |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 206 |  |  | $ | 197 |  |  | $ | 130 |
Interest expense (5) |  | $ | — |  |  | $ | — |  |  | $ | 2,471 |
(1) | Total revenues from Popular as a percentage of revenues were 45%, 45% and 46% for each of the periods presented above.
(2) | Includes revenues generated from investee accounted for under the equity method of $2.1 million, $2.5 million and $3.0 million for the years ended December 31, 2015, 2014 and 2013, respectively.
(3) | Includes management fees to equity sponsors amounting to $3.5 million for the year ended December 31, 2013. Management fees paid during 2013 also includes $16.7 million resulting from the termination of the consulting agreements as explained below. Rent and other fees also include $5.9 million paid in connection with the redemption premium on the senior notes during the first half of 2013.
(4) | Includes $7.9 million, $7.9 million and $11.1 million recorded as selling, general and administrative expenses for each of the periods presented above, and $16.7 million recorded as non-operating expenses for the year ended December 31, 2013 in the audited consolidated statement of income (loss) and comprehensive income (loss).
(5) | Interest expense relates to interest accrued on the senior secured term loan and senior notes held by Popular. As a result of the debt refinancing and the redemption of the senior notes in April 2013, Popular’s participation in such debt was extinguished. See Note 12 for additional information related to the extinguishment of this debt.
On April 17, 2013, EVERTEC entered into a termination agreement with Holdings, EVERTEC Group and Popular and a termination agreement with Holdings, EVERTEC Group and Apollo Management VII, L.P. in connection with the initial public offering (the “Termination Agreements”). The Termination Agreements terminated the consulting agreements (the “Consulting Agreements”), each dated September 30, 2010, entered into by Holdings and EVERTEC Group with each of Popular and Apollo Management, pursuant to which Holdings and EVERTEC Group received certain advisory services from each of Popular and Apollo Management. The Consulting Agreements were terminated in their entirety upon payment of termination fees of approximately $8.5 million to Apollo Management and $8.2 million to Popular, in each case, plus any unreimbursed expenses payable in accordance with the terms of the Termination Agreements. At December 31, 2015 and 2014, the Company had the following balances arising from transactions with related parties:
|  | December 31, |
(Dollar amounts in thousands) |  | 2015 |  |  | 2014 |
|  |  |  |  | (As restated) |
Cash and restricted cash deposits in affiliated bank |  | $ | 23,872 |  |  | $ | 13,566 |
Indemnification assets from Popular reimbursement (1) |  |  |  |  |  |  |  |
Accounts receivable |  | $ | — |  |  | $ | 1,428 |
Other due/to from affiliate |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 20,196 |  |  | $ | 17,006 |
Prepaid expenses and other assets |  | $ | 867 |  |  | $ | 398 |
Accounts payable (2) |  | $ | 2,687 |  |  | $ | 5,260 |
Unearned income |  | $ | 11,970 |  |  | $ | 9,385 |
Other long-term liabilites (2) |  | $ | 14 |  |  | $ | 45 |
(1) | Recorded in connection with reimbursement from Popular regarding certain software license fees.
(2) | Includes an account payable of $32,000 and $0.2 million and a long-term liability of $14,000 and $45,000 for December 31, 2015 and 2014, respectively, related to the unvested portion of stock options as a result of the equitable adjustment approved by the Company’s Board of Directors on December 18, 2012 that will be payable to executive officers and employees upon vesting of stock options.
The balance of cash and restricted cash deposits in an affiliated bank was included within the cash and restricted cash line items in the accompanying consolidated balance sheets. Due from affiliates mainly included the amounts outstanding related to processing and information technology services billed to Popular subsidiaries according to the terms of the Master Services Agreement (“MSA”) under which EVERTEC Group has a contract to provide such services for at least 15 years on an exclusive basis for the duration of the agreement on commercial terms consistent with historical pricing practices among the parties. This amount was included in the accounts receivable, net in the consolidated balance sheets. The Company was entitled to receive reimbursements from Popular regarding certain software license fees if such amounts exceeded certain amounts for a period of five years from the closing date of the Merger. As a result of this agreement, the Company recorded approximately $11.2 million as a software reimbursement asset at fair value as of the Merger date. At December 31, 2015, the indemnification asset has been fully repaid. At December 31, 2014, the current portion of said asset of $1.4 million was included within the accounts receivable, net caption in the accompanying consolidated balance sheets. Gains and losses related to the asset were included within the other expenses caption in the accompanying consolidated statements of income (loss) and comprehensive income (loss). See Note 13 and 17. From time to time, EVERTEC Group obtains performance bonds from insurance companies covering the obligations of EVERTEC Group under certain contracts. Under the Merger Agreement, Popular is required to, subject to certain exceptions, cause the then outstanding performance bonds to remain outstanding or replace such bonds as needed for five years from the closing date of the Merger. EVERTEC Group entered into a reimbursement agreement with Popular to mirror Popular’s obligations. As a result, EVERTEC Group is required to reimburse Popular for payment of premiums and related charges and indemnification of Popular for certain losses, in case EVERTEC Group fails to perform or otherwise satisfy its obligations covered by such performance bonds. As of December 31, 2015, EVERTEC Group has a credit facility with Popular for $4.2 million, on behalf of EVERTEC CR, under which a letter of credit of a similar amount was issued.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A + Details
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