First Data 2013 Annual Report Download - page 54

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In March 2013, the Financial Accounting Standards Board issued guidance that resolves diversity in practice as to when to release the cumulative
translation adjustment into net income when a parent ceases to have a controlling interest in a subsidiary within a foreign entity or sells a part or all of its
investment in a foreign entity. The guidance also resolves diversity in the accounting for the cumulative translation adjustment in a business combination
achieved in stages involving a foreign entity. The Company adopted the guidance as of January 1, 2013. Adoption did not have an impact on the Company’s
financial position or results of operations.
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Certain matters the Company discusses in this Annual Report on Form 10-K and in other public statements may constitute forward-looking statements.
You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,”
“plans,” “estimates,” or “anticipates” or similar expressions which concern the Company’s strategy, plans, projections or intentions. Examples of forward-
looking statements include, but are not limited to, all statements the Company makes relating to revenue, EBITDA, earnings, margins, growth rates and other
financial results for future periods. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the
economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward-looking statements,
which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include:
(a) no adverse impact on the Company’s business as a result of its high degree of leverage;
(b) successful implementation and improvement of processing systems to provide new products, improved functionality and increased efficiencies;
(c) anticipation of and response to technological changes, particularly with respect to e-commerce and mobile commerce;
(d) achieving planned revenue growth throughout the Company, including in the merchant alliance program which involves several alliances not
under the sole control of the Company and each of which acts independently of the others, and successful management of pricing pressures
through cost efficiencies and other cost-management initiatives;
(e) no material breach of security of any of the Company’s systems;
(f) no catastrophic events that could impact the Company’s or its major customer’s operating facilities, communication systems and technology or
that has a material negative impact on current economic conditions or levels of consumer spending;
(g) no adverse impacts from currency exchange rates or currency controls imposed by any government or otherwise;
(h) successfully adjusting to the new U.S. financial regulatory reform legislation and regulations;
(i) successful conversions under service contracts with major clients;
(j) no further consolidation among client financial institutions or other client groups which has a significant impact on Company client relationships
and no material loss of business from significant customers of the Company;
(k) successfully managing the credit and fraud risks in the Company’s business units and the merchant alliances, particularly in the context of the
developing e-commerce markets;
(l) continuing development and maintenance of appropriate business continuity plans for the Company’s processing systems based on the needs and
risks relative to each such system;
(m) no unanticipated changes in laws, regulations, credit card association rules or other industry standards affecting the Company’s businesses
which require significant product redevelopment efforts, reduce the market for or value of its products or render products obsolete;
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