First Data 2007 Annual Report Download - page 4

Significant Acquisitions and Dispositions
The Company completed a number of acquisitions during 2007, each of which was acquired for less than $400 million. Aggregate acquisitions in 2007
were $866.8 million with the most significant being First Data Polska (formerly POLCARD) for $331.9 million. Refer to Note 4 of the Company's
Consolidated Financial Statements in Item 8 for a complete discussion of the Company's acquisitions and dispositions.
Segments
The Company is organized in three primary segments: Commercial Services, Financial Institution Services and First Data International. In addition, the
Company currently operates its official check and money order business, as well as other check processing and payment management services, through its
Integrated Payment Systems segment. Upon completion of a strategic review, the Company decided to gradually exit from the official check and money order
business. The Company expects the wind-down of the majority of the business to take place by the end of 2008.
Commercial Services
Commercial Services provides merchant and debit network acquiring and processing, check verification, settlement and guarantee, and prepaid card
services. The company provides these services to approximately 3.7 million merchant locations across the United States, and processed $1.5 trillion of
payment transaction dollar volume on behalf of U.S. merchants in 2007. Commercial Services facilitates merchants' ability to accept credit, debit and prepaid
cards and checks by authorizing and settling merchants' credit, debit, stored-value and loyalty card transactions and check transactions. At the same time,
Commercial Services provides merchants with the reliability, security and back-office services that are critical to their business success. Most of this
segment's revenue is derived from regional and local merchants. Commercial Services approaches the market through diversified sales channels including
equity alliances, revenue sharing alliances and referral arrangements with 130 financial institution partners and arrangements with over 350 non-bank referral
partners as well as 163 independent sales organization partners, as of December 31, 2007.
Financial Institution Services
Financial Institution Services provides financial institutions and other third parties with various services, including credit and retail card processing;
debit card processing and network services; output services, such as statement and letter printing, embossing and mailing services; and remittance processing
services. The credit and retail card processing and debit processing businesses provide services that enable financial institutions and other organizations
offering credit cards, debit cards and retail private label cards to consumers and businesses to manage customer accounts. Financial Institution Services also
provides services to the U.S. PIN POS debit market through the STAR Network which offers PIN-secured debit acceptance at 2.1 million ATM and retail
locations.
First Data International
First Data International provides products and services in international markets that are similar to those offered by the Commercial Services and
Financial Institution Services segments in the United States. First Data International has operations in 37 countries, including the U.S., with regional
management teams overseeing local operations. The segment operates in four main geographic regions including Europe, Middle East and Africa; Latin
America, Canada and Caribbean; Australia and New Zealand; and Asia.
Integrated Payment Systems
The Integrated Payment Systems segment provides official checks and money orders through independent agents, which are typically banks or other
financial institutions. The Integrated Payment Systems segment also provides other payment services such as remote deposit, clearing services and payment
management services.
Operating Locations
The Company has domestic and international operations and regional or country offices where sales, customer service and/or administrative personnel
are based. The international operations generate revenues from customers located and operating outside of the United States. In the successor period from
September 25, 2007 through December 31, 2007 and the predecessor period from January 1, 2007 through September 24, 2007 revenues generated from
processing transactions at locations within the United States (domestic) regardless of the segments to which the associated revenues applied, were 78% and
81% of FDC's consolidated revenues, respectively, while revenue generated from processing transactions at locations outside of the United States
(international) were 22% and 19%, respectively. Long-lived assets attributable to domestic and international operations as percentages of FDC's total long-
lived assets as of December 31, 2007 were 82% and 18%, respectively. No individual foreign country is material to the Company's total revenues or long-
lived assets. Further financial information relating to the Company's international and domestic revenues and long-lived assets is set forth in Note 17 to the
Company's Consolidated Financial Statements in Item 8.
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