First Data 2008 Annual Report Download - page 125

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
• sell or transfer assets and subsidiary stock;
• pay dividends and distributions or repurchase its capital stock;
• make certain investments, loans or advances;
• prepay certain indebtedness;
• enter into agreements that restrict the payment of dividends by subsidiaries or the repayment of intercompany loans and advances; and
• engage in certain transactions with affiliates.
Note 3: Restructuring, Impairments, Litigation and Regulatory Settlements and Other Costs
The Company recorded restructuring charges, impairment charges, litigation and regulatory settlements and other costs during the three years ended
December 31, 2008. Restructuring accruals are reviewed each period and balances in excess of anticipated requirements are reversed through the same
Consolidated Statements of Operations caption in which they were originally recorded. Such reversals resulted from the favorable resolution of contingencies
and changes in facts and circumstances.
A summary of net pretax benefits (charges), incurred by segment, for each period is as follows (in millions):
Pretax Benefit (Charge)
Successor year ended December, 31
2008
Merchant
Services
Financial
Services International
Prepaid
Services
Integrated
Payment
Systems
All Other
and
Corporate Divested Totals
Restructuring charges $ (3.5) $ (16.0) — $ (0.9) $ — — — $ (20.4)
Restructuring accrual reversals 0.6 7.6 — 0.1 — — $ 0.1 8.4
Impairments (700.0) (1,600.8) $ (550.5) (300.0) — $ (62.4) (29.9) (3,243.6)
Total pretax benefit (charge), net of reversals $ (702.9) $ (1,609.2) $ (550.5) $ (300.8) $ — $ (62.4) $ (29.8) $ (3,255.6)
Predecessor period from January 1,
2007 to September 24, 2007
Restructuring charges $ (2.6) $ (0.2) $ (7.1) — — — $ (0.3) $ (10.2)
Restructuring accrual reversals 0.4 0.2 0.9 — — $ 0.7 0.1 2.3
Impairments — (4.3) — — $ (16.3) — — (20.6)
Litigation and regulatory settlements — — — $ (5.0) — 2.5 — (2.5)
Other 2.1 — (0.4) — 2.2 3.8 — 7.7
Total pretax benefit (charge), net of reversals $ (0.1) $ (4.3) $ (6.6) $ (5.0) $ (14.1) $ 7.0 $ (0.2) $ (23.3)
Predecessor year ended December 31,
2006
Restructuring charges $ (4.4) $ (3.7) $ (14.5) — $ (0.2) $ (3.8) $ (0.7) $ (27.3)
Restructuring accrual reversals — 1.5 1.0 $ 0.1 — 0.7 — 3.3
Impairments — (17.5) 0.9 — — 0.5 — (16.1)
Litigation and regulatory settlements 7.4 (15.0) — — — 42.4 — 34.8
Other — 0.3 — — — — — 0.3
Total pretax benefit (charge), net of reversals $ 3.0 $ (34.4) $ (12.6) $ 0.1 $ (0.2) $ 39.8 $ (0.7) $ (5.0)
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