First Data 2013 Annual Report Download - page 28

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Revenues:
Transaction and processing service fees $ 6,464.3 $ 6,452.1 $6,330.0 0%2%
Product sales and other 837.2 866.7 852.1 (3)% 2%
Reimbursable debit network fees, postage and
other 3,507.4 3,361.5 3,531.5 4%(5)%
10,808.9 10,680.3 10,713.6 1%0%
Expenses:
Cost of services (exclusive of items shown below) 2,808.8 2,863.5 2,888.4 (2)% (1)%
Cost of products sold 334.0 336.3 369.6 (1)% (9)%
Selling, general and administrative 1,888.8 1,825.4 1,693.7 3%8%
Reimbursable debit network fees, postage and
other 3,507.4 3,361.5 3,531.5 4%(5)%
Depreciation and amortization 1,091.3 1,191.6 1,245.0 (8)% (4)%
Other operating expenses, net (a) 56.0 28.2 43.9 * *
9,686.3 9,606.5 9,772.1 1% (2)%
Operating profit 1,122.6 1,073.8 941.5 5%14%
Interest income 11.1 8.8 7.9 26%11%
Interest expense (1,880.7)(1,897.8)(1,833.1)(1)% 4%
Other income (expense) (b) (46.9) (94.3)124.1 * *
(1,916.5)(1,983.3)(1,701.1)(3)% 17%
Loss before income taxes and equity earnings in
affiliates (793.9) (909.5)(759.6)(13)% 20%
Income tax expense (benefit) 86.5 (224.0)(270.1) * (17)%
Equity earnings in affiliates 188.3 158.2 153.4 19%3%
Net loss (692.1)(527.3)(336.1)31%57%
Less: Net income attributable to noncontrolling
interests and redeemable noncontrolling interest 177.0 173.6 180.0 2%(4)%
Net loss attributable to First Data Corporation $(869.1)$(700.9)$(516.1)24%36%
* Calculation not meaningful.
(a) Other operating expenses, net includes restructuring, net, impairments and litigation and regulatory settlements as applicable to the periods presented.
(b) Other income (expense) includes investment gains and losses, derivative financial instruments gains and losses, divestitures, net, non-operating foreign
currency exchange gains and losses and other as applicable to the periods presented.
The following provides highlights of revenue and expense growth on a consolidated basis while a more detailed discussion is included in the “Segment
results” section below.
Operating revenues overview.
Transaction and processing service fees. Revenue remained flat in 2013 compared to 2012 as increases in merchant related services revenue were
offset by decreases in card services and check services. The net increases in merchant related services revenue resulted from increases in both domestic and
international merchant transactions and dollar volumes in addition to new sales, pricing increases and network routing incentives. These increases were offset
by decreases resulting from the impact of merchant mix on transactions and dollar volumes, the effects of shifts in pricing mix, merchant attrition and price
compression. The decreases in card services revenue resulted primarily from net lost business both domestically and internationally. The Company
experienced decreases in check processing revenue primarily as a result of lower overall check volumes and merchant attrition.
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