First Data 2007 Annual Report Download - page 145

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Summarized quarterly results for the two years ended December 31, 2007 and 2006, respectively, are as follows (in millions):
Predecessor Successor
2007 by Quarter:
First
Second
Third Third
Fourth
Period from
July 1 through
September 24,
Period from
September 25 through
September 30,
Revenues $1,836.3 $2,000.7 $ 1,935.9 $ 135.3 $2,143.2
Expenses 1,640.9 1,720.4 1,871.2 127.3 1,996.2
Interest income 8.0 12.9 9.9 3.6 14.3
Interest expense (34.5) (35.9) (33.2) (34.6) (550.1)
Other income (expense) 1.0 2.4 1.5 (27.7) (46.3)
Income (loss) before income taxes, minority interest, equity earnings in affiliates
and discontinued operations 169.9 259.7 42.9 (50.7) (435.1)
Income tax expense (benefit) 37.4 70.2 18.2 (21.2) (154.9)
Minority interest (29.1) (40.0) (36.2) (2.5) (36.5)
Equity earnings in affiliates 68.3 79.4 75.3 3.3 43.5
(Loss) income from continuing operations 171.7 228.9 63.8 (28.7) (273.2)
Discontinued operations, net of tax of $(4.1), $0, $7.1, $0 and $0, respectively 3.5 — (7.1) — —
Net (loss) income $ 175.2 $ 228.9 $ 56.7 $ (28.7) $ (273.2)
Predecessor
2006 by Quarter: First Second Third Fourth
Revenues $ 1,635.7 $ 1,731.1 $ 1,787.2 $ 1,922.4
Expenses 1,422.6 1,457.5 1,492.1 1,623.7
Interest income 2.9 7.1 13.8 31.7
Interest expense (57.6) (60.9) (72.3) (57.2)
Other income (expense) 108.9 87.7 (142.8) (31.2)
Income before income taxes, minority interest, equity earnings in affiliates and discontinued operations 267.3 307.5 93.8 242.0
Income tax expense 77.2 82.9 4.7 38.9
Minority interest (28.9) (40.3) (34.8) (38.3)
Equity earnings in affiliates 58.5 72.4 77.0 75.2
Income from continuing operations 219.7 256.7 131.3 240.0
Discontinued operations, net of tax of $101.3, $107.1, $125.9 and $25.8, respectively 210.4 205.9 210.9 38.5
Net income $ 430.1 $ 462.6 $ 342.2 $ 278.5
Note 19: Discontinued Operations
The Company's financial statements reflect NYCE, PPS, IDLogix, Western Union and Taxware as discontinued operations. The results of operations of
these entities are treated as income from discontinued operations, net of tax, and separately stated on the Consolidated Statements of Income, below (loss)
income from continuing operations.
As a result of the merger with Concord, the Company divested its 64% ownership of NYCE, an electronic funds transfer network, on July 30, 2004.
The sale agreement of NYCE contemplated potential adjustments to the sales price that became estimable in the fourth quarter 2005. The estimated
adjustment to the sales price of $28.2 million was recorded in the fourth quarter 2005 and was presented net of the related disposition reserve and taxes in
discontinued operations on the Consolidated Statements of Income. During the first quarter of 2006, the adjustment to the sales price was finalized resulting in
an additional charge of $1.6 million, which was also presented in discontinued operations, and was $1.0 million net of taxes.
In July 2006, the Company sold the majority of its ownership interest in its subsidiaries PPS and IDLogix to five national financial institutions to form
Early Warning Services, LLC for the purchase price of $84.7 million, net of related expenses, and an 18% interest in Early Warning Services. The purchase
price is also net of $11.2 million in cash paid to buyout the PPS minority
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