First Data 2008 Annual Report Download - page 37

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
First Data Corporation ("FDC" or "the Company"), with headquarters in Greenwood Village, Colorado, operates electronic commerce businesses
providing services that include merchant transaction processing and acquiring services; credit, retail and debit card issuing and processing services; prepaid
card services; official check issuance; and check verification, settlement and guarantee.
To achieve its financial objectives, the Company focuses on internal revenue growth. Internal growth is achieved through the development of new
technologies and payment methods, focused sales force efforts and entering into new and strengthening existing alliance partner relationships. Internal growth
also is driven through increased demand through growth of clients and partners. The Company has long-standing relationships and long-term contracts with
these clients and partners. The length of the contracts varies across the Company's business units, but the majority are for multiple years.
Presentation
This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is presented for the successor year ended
December 31, 2008 as well as the successor period from September 25, 2007 through December 31, 2007 and the predecessor period from January 1, 2007
through September 24, 2007. The full year 2007 is also presented on a pro forma basis along with the historical year ended December 31, 2006. Predecessor
and successor periods primarily relate to the periods preceding the merger (see "Merger" in "2007 Overview" below) and the periods succeeding the merger,
respectively. The Company believes that the discussion on a pro forma basis is a useful supplement to the historical results as it allows the 2007 results of
operations to be analyzed on a more comparable basis to 2008 and 2006 full year results. See the 2007 unaudited pro forma condensed consolidated statement
of operations below which reflect the consolidated results of operations as if the merger had occurred on January 1, 2007. Note that there were no adjustments
in the calculation of pro forma revenue and the most significant pro forma adjustments in the calculation of pro forma expense pertained to depreciation and
amortization of the re-valued fixed assets and intangible assets and to interest expense on the debt issued in connection with the merger.
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