First Data 2007 Annual Report Download - page 142

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Predecessor Twelve months ended December 31, 2005
(in millions)
First Data
Commercial
Services
First Data
Financial
Institution
Services
First Data
International
Integrated
Payment
Systems
All Other
and
Corporate Totals
Revenues:
Transaction and processing service fees $ 2,457.5 $ 1,200.8 $ 714.0 $ 58.4 $ 336.2 $4,766.9
Investment income, net 32.9 — 10.4 162.6 — 205.9
Product sales and other 343.6 78.3 145.2 0.2 58.0 625.3
Reimbursable debit network fees, postage and other 689.8 586.2 15.8 0.8 0.8 1,293.4
Equity earnings in affiliates (a) 237.0 — 27.5 — — 264.5
Interest income 0.7 — 5.3 — 6.4 12.4
Total segment reporting revenues $ 3,761.5 $ 1,865.3 $ 918.2 $ 222.0 $ 401.4 $7,168.4
Internal revenue and pretax equivalency $ 23.1 $ 46.6 $ 9.4 $ 251.6 $ 34.7 $ 365.4
External revenue 3,738.4 1,818.7 908.8 (29.6) 366.7 6,803.0
Depreciation and amortization 317.9 160.9 147.9 16.3 46.0 689.0
Operating profit (loss) 894.5 377.9 113.3 115.8 (79.4) 1,422.1
Restructuring, impairments, other, investment gains and (losses) and derivative financial
instruments gains and (losses) (25.6) (39.9) (29.0) 57.0 (20.4) (57.9)
Expenditures for long-lived assets 104.4 81.1 50.0 17.0 74.9 327.4
Equity earnings in affiliates 224.7 — 9.2 — (1.0) 232.9
Investment in unconsolidated affiliates 594.9 — 68.0 — 3.0 665.9
A reconciliation of reportable segment amounts to the Company's consolidated balances is as follows:
Successor Predecessor
(in millions)
Period from
September 25
through
December 31,
2007
Period from
January 1
through
September 24,
2007
Year Ended December 31,
2006 2005
Revenues:
Total reported segments $ 2,363.0 $ 5,969.2 $ 7,363.3 $ 6,767.0
All other and corporate 120.5 337.1 464.4 401.4
Subtotal 2,483.5 6,306.3 7,827.7 7,168.4
Equity earnings in affiliates (a) (105.7) (248.6) (313.6) (264.5)
Interest income (17.9) (30.8) (55.5) (12.4)
Eliminations (b) (81.4) (254.0) (382.2) (365.4)
Consolidated $ 2,278.5 $ 5,772.9 $ 7,076.4 $ 6,526.1
Income (loss) before income taxes, minority interest, equity earnings in affiliates and discontinued
operations:
Total reported segments $ 266.1 $ 1,232.3 $ 1,625.5 $ 1,501.5
All other and corporate (30.5) (345.5) (95.3) (79.4)
Subtotal 235.6 886.8 1,530.2 1,422.1
Interest expense (584.7) (103.6) (248.0) (190.9)
Minority interest from segment operations (c) 39.6 107.3 139.8 128.1
Equity earnings in affiliates (46.8) (223.0) (283.1) (232.9)
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)
Other income (expense) (d) (74.0) 4.9 22.6 145.8
Eliminations (b) (55.7) (176.6) (245.9) (239.8)
Consolidated $ (485.8) $ 472.5 $ 910.6 $ 889.8
(a) Excludes equity losses that were recorded in expense and the amortization related to the excess of the investment balance over the Company's
proportionate share of the investee's net book value.
(b) Represents elimination of an adjustment to record IPS segment investment income and its related operating profit on a pretax equivalent basis and
elimination of intersegment revenue.
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