First Data 2007 Annual Report Download - page 12

Financial Institution Services Geographic Mix and Revenues
Revenues from external customers for the Financial Institution Services segment are substantially all earned in the United States. Card issuing revenues
outside of the United States are reported by the Company's First Data International segment. Within the United States, revenues from external customers are
geographically dispersed throughout the country.
Financial Institution Services Significant Customers
During 2007, the Company had a significant relationship with two clients whose revenues represented approximately 17% and 10%, respectively, of the
Financial Institution Services segment revenue for the successor period September 25, 2007 through December 31, 2007. The same two clients represented
approximately 16% and 11%, respectively, of Financial Institution Services segment revenue for the predecessor period from January 1, 2007 through
September 24, 2007.
First Data International
The First Data International segment is comprised of:
• Debit, credit, retail and prepaid card processing;
• Merchant acquiring and processing;
• ATM and POS processing, driving, acquiring and switching services; and
• Card processing software.
First Data International revenues from external customers, operating profit, and assets represent the following percentages of FDC's consolidated
revenues, total reported segment operating profit and consolidated assets:
Successor
period from
September 25, 2007
through
December 31,
2007
Predecessor
period from
January 1, 2007
through
September 24,
2007
Year ended
December 31,
2006
Year ended
December 31,
2005
Revenue from external customers 22% 19% 17% 13%
Operating profit 1, 2 25% 13% 10% 8%
Assets2 13% 10% 7%
1 – Operating profit, as a percentage of total segment and all other and corporate operating profit, for the predecessor period from January 1, 2007 through
September 24, 2007 includes accelerated vesting of stock options and restricted stock awards and units and transaction costs related to the merger of $265.2
million that were recognized in All Other and Corporate. The exclusion of these costs from the calculation would decrease First Data International's operating
profit percentage shown above by approximately 3 percentage points for the predecessor period from January 1, 2007 through September 24, 2007.
2 – Operating profit and assets were impacted by purchase accounting in the successor period from September 25, 2007 through December 31, 2007.
The First Data International segment operates in four geographic regions: EMEA includes Europe, Middle East and Africa and provides card issuing
processing, merchant acquiring and processing, and ATM and POS processing, driving, acquiring and switching services across the region; LAC includes
Latin America, Canada and Caribbean countries and provides merchant acquiring and processing, card issuing processing, software licensing and debit
switching services; ANZ includes Australia and New Zealand and provides merchant acquiring, processing and switching services, managed service card
processing and owns and operates an ATM network in Australia; and Asia includes China and North and South Asian countries and mainly provides merchant
POS transaction switching services, software licensing, card issuing processing services, host processing services and merchant acquiring and processing.
The merchant acquiring and card issuing services provided by the First Data International segment are similar in nature to the services described above
in the Commercial Services and Financial Institution Services segments other than it includes substantially all the services provided outside of the United
States. For a description of the First Data International segment's merchant acquiring and card issuing businesses refer to the Commercial Services and
Financial Institution Services segment descriptions provided above.
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