First Data 2008 Annual Report Download - page 128

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Litigation and regulatory settlements
In the predecessor period from January 1, 2007 through September 24, 2007, the Company recorded a $5.0 million litigation accrual associated with a
judgment against the Company pertaining to a vendor contract issue in the Prepaid Services segment and a benefit of $2.5 million related to the Visa
settlement originally recorded in 2006 in All Other and Corporate. During 2006, the Company recorded a benefit of approximately $45 million due to the
settlement with Visa within All Other and Corporate. Also in 2006, excess litigation accruals in the Merchant Services segment totaling $7.4 million were
released. The Company recorded minority interest expense of $3.5 million associated with this release. Additionally, a $15.0 million settlement associated
with a patent infringement lawsuit against TeleCheck was recorded, clearing all past and future claims related to this litigation, within the Financial Services
segment, as was a charge of $2.7 million related to the settlement of a claim within All Other and Corporate.
Other
The majority of the benefit recorded during the 2007 predecessor period related to the release of a portion of the domestic escheatment accrual made in
the fourth quarter 2005. The release was prompted by reaching resolution with a large majority of states as to the Company's escheatment liability.
Note 4: Business Combinations, Asset Acquisitions and Dispositions
Initial Consideration (a)
Businesses and Assets Acquired Month Total Cash
(in millions)
2008:
Joint Venture with Allied Irish Banks p.l.c. ("AIB") January $ 178.2 $ 178.2
Money Network Financial, LLC ("Money Network") minority holder buyout July 60.8 60.8
Chase Paymentech SolutionsTM Alliance termination (b) November 2,746.0 —
Two other acquisitions and merchant portfolio acquisitions 28.1 28.1
$ 3,013.1 $ 267.1
2007:
Successor
First Data Government Solutions ("FDGS") minority holder buyout November $ 73.8 $ 73.8
Merchant Solutions Joint Venture November 29.7 29.7
Three other acquisitions and merchant portfolio acquisitions 48.7 48.7
$ 152.2 $ 152.2
Predecessor
Instant Cash Services® ("Instant Cash") March $ 125.7 $ 125.7
FundsXpress June 134.9 134.9
First Data Polska (formerly POLCARD SA) August 331.9 331.9
Four other acquisitions and merchant portfolio acquisitions 122.1 122.1
$ 714.6 $ 714.6
2006:
ClearCheck, Inc. ("ClearCheck") March $ 18.7 $ 18.7
First Data Deutschland ("FDD", formerly Gesellschaft fur
Zahlungssysteme) (c) June 3.1 3.1
Peace Software ("Peace") August 85.1 85.1
First Data Cono Sur ("Cono Sur", formerly Argencard) December 193.8 193.8
Three other acquisitions and merchant portfolio acquisitions 34.7 34.7
$ 335.4 $ 335.4
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