First Data 2007 Annual Report Download - page 86

FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Successor Predecessor
Period from
September 25
through
December 31,
2007 (a)
Period from
January 1
through
September 24,
2007
Year ended December 31,
2006 2005
(in millions)
Revenues (b):
Transaction and processing service fees:
Merchant services (c) $ 808.4 $ 2,063.5 $ 2,675.6 $ 2,398.4
Check services 110.5 293.2 334.5 328.6
Card services 531.2 1,342.9 1,682.8 1,594.7
Other services 103.2 266.3 344.7 337.2
Investment income, net (8.2) (66.9) (128.6) (33.6)
Product sales and other 223.0 616.4 699.8 617.4
Reimbursable debit network fees, postage and other 510.4 1,257.5 1,467.6 1,283.4
2,278.5 5,772.9 7,076.4 6,526.1
Expenses:
Cost of services 1,142.4 2,632.0 3,064.9 2,858.7
Cost of products sold 92.0 230.4 300.9 271.7
Selling, general and administrative 378.9 1,089.3 1,157.5 1,047.2
Reimbursable debit network fees, postage and other 510.4 1,257.5 1,467.6 1,283.4
Other operating expenses:
Restructuring, net (0.2) 7.9 24.0 76.2
Impairments — 20.6 16.1 40.8
Litigation and regulatory settlements — 2.5 (34.8) —
Other — (7.7) (0.3) 25.6
2,123.5 5,232.5 5,995.9 5,603.6
Operating profit 155.0 540.4 1,080.5 922.5
Interest income 17.9 30.8 55.5 12.4
Interest expense (584.7) (103.6) (248.0) (190.9)
Other income (expense) (74.0) 4.9 22.6 145.8
(640.8) (67.9) (169.9) (32.7)
(Loss) income before income taxes, minority interest, equity earnings in affiliates and
discontinued operations (485.8) 472.5 910.6 889.8
Income tax (benefit) expense (176.1) 125.8 203.7 188.3
Minority interest (39.0) (105.3) (142.3) (126.9)
Equity earnings in affiliates 46.8 223.0 283.1 232.9
(Loss) income from continuing operations (301.9) 464.4 847.7 807.5
(Loss) income from discontinued operations, net of taxes of $0, $3.0, $360.0 and $402.1,
respectively — (3.6) 665.7 909.9
Net (loss) income $ (301.9) $ 460.8 $ 1,513.4 $ 1,717.4
(a) Includes the results of operations (reflecting the change in fair value of forward starting contingent interest rate swaps) of Omaha Acquisition
Corporation for the period prior to the merger with and into First Data Corporation from March 29, 2007 (its formation) through September 24, 2007.
Also includes post merger results of First Data Corporation for the period from September 25, 2007 to December 31, 2007.
(b) Includes revenue from Western Union and Primary Payment Systems commercial relationships previously eliminated in consolidation of $18.5 million
and $24.5 million for the years ended December 31, 2006 and 2005, respectively.
(c) Includes processing fees, administrative service fees and other fees charged to merchant alliances accounted for under the equity method of $61.3
million for the successor period from September 25, 2007 through December 31, 2007, $165.1 million for the predecessor period from January 1, 2007
through September 24, 2007, $226.1 million and $248.6 million for the years ended December 31, 2006 and 2005, respectively.
See Notes to Consolidated Financial Statements.
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