First Data 2008 Annual Report Download - page 105

FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Successor Predecessor
(in millions)
Year ended
December 31,
2008
Period from
September 25
through
December 31,
2007 (a)
Period from
January 1
through
September 24,
2007
Year ended
December 31,
2006
Revenues (b):
Transaction and processing service fees:
Merchant related services (c) $ 2,786.9 $ 691.0 $ 1,833.6 $ 2,345.1
Check services 386.1 113.6 304.1 353.6
Card services 2,031.6 570.7 1,411.9 1,767.1
Other services 580.7 178.0 416.3 571.8
Investment income, net 77.1 (8.2) (66.9) (128.6)
Product sales and other 848.2 223.0 616.4 699.8
Reimbursable debit network fees, postage and other 2,100.7 510.4 1,257.5 1,467.6
8,811.3 2,278.5 5,772.9 7,076.4
Expenses:
Cost of services (exclusive of items shown below) 3,048.0 790.3 2,207.3 2,493.3
Cost of products sold 316.8 87.3 209.2 281.0
Selling, general and administrative 1,197.4 367.9 1,058.8 1,129.3
Reimbursable debit network fees, postage and other 2,100.7 510.4 1,257.5 1,467.6
Depreciation and amortization 1,369.7 367.8 476.4 619.7
Other operating expenses:
Restructuring, net 12.0 (0.2) 7.9 24.0
Impairments 3,243.6 — 20.6 16.1
Litigation and regulatory settlements — — 2.5 (34.8)
Other — — (7.7) (0.3)
11,288.2 2,123.5 5,232.5 5,995.9
Operating (loss) profit (2,476.9) 155.0 540.4 1,080.5
Interest income 26.0 17.9 30.8 55.5
Interest expense (1,964.9) (584.7) (103.6) (248.0)
Other (expense) income (14.4) (74.0) 4.9 22.6
(1,953.3) (640.8) (67.9) (169.9)
(Loss) income before income taxes, minority interest, equity earnings in affiliates and discontinued
operations (4,430.2) (485.8) 472.5 910.6
Income tax (benefit) expense (699.2) (176.1) 125.8 203.7
Minority interest (156.3) (39.0) (105.3) (142.3)
Equity earnings in affiliates 123.0 46.8 223.0 283.1
(Loss) income from continuing operations (3,764.3) (301.9) 464.4 847.7
(Loss) income from discontinued operations, net of taxes of $0, $0, $3.0 and $360.0, respectively — — (3.6) 665.7
Net (loss) income $ (3,764.3) $ (301.9) $ 460.8 $ 1,513.4
(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
for the year ended December 31, 2006.
(c) Includes processing fees, administrative service fees and other fees charged to merchant alliances accounted for under the equity method of $196.3
million for the year ended December 31, 2008, $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 and $226.1 million for the year ended December 31, 2006,
respectively.
See Notes to Consolidated Financial Statements.
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