First Data 2008 Annual Report Download - page 38

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FIRST DATA CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Financial Summary
This financial summary presents comparative information for the year ended December 31, 2008 versus the year ended December 31, 2007 on a pro
forma basis as well as the December 31, 2007 pro forma period compared to the historical year ended December 31, 2006. The 2007 discussion of results for
the predecessor and successor periods are presented later in this MD&A.
Historical Pro Forma Historical
Successor Successor Predecessor Percent Change
(in millions)
Year ended
December 31,
2008
Year ended
December 31,
2007
Period from
September 25
through
December 31,
2007
Period from
January 1
through
September 24,
2007
Year ended
December 31,
2006
Historical
2008
vs.
Pro Forma
2007
Pro Forma
2007
vs.
Historical
2006
Total consolidated revenues $ 8,811.3 $ 8,051.4 $ 2,278.5 $ 5,772.9 $ 7,076.4 9% 14%
Total consolidated operating (loss) profit (a) $ (2,476.9) $ 550.0 $ 155.0 $ 540.4 $ 1,080.5 NM (49)%
Merchant Services segment revenue $ 4,127.8 $ 3,742.5 $ 1,037.3 $ 2,705.2 $ 3,443.0 10% 9%
Financial Services segment revenue $ 2,788.2 $ 2,855.2 $ 773.5 $ 2,081.7 $ 2,660.4 (2)% 7%
International segment revenue $ 1,827.4 $ 1,616.8 $ 490.6 $ 1,126.2 $ 1,231.3 13% 31%
Year ended December 31,
2008 2007 2006
Key Indicators:
Domestic merchant transactions 26,856.9 25,359.0 22,626.0 6% 12%
Domestic debit issuer transactions 12,042.2 11,651.4 10,572.4 3% 10%
International transactions 6,438.2 5,476.0 4,591.6 18% 19%
Domestic active card accounts on file (end of period) 127.6 128.3 116.8 (1)% 10%
Domestic card accounts on file (end of period) 637.2 634.8 557.4 0% 14%
International card accounts on file (end of period) 81.2 73.8 48.3 10% 53%
(a) The total consolidated operating loss for 2008 included a goodwill impairment charge recorded in the fourth quarter of $3.2 billion. See the "Goodwill
Impairment" discussion below.
Chase Paymentech
On November 1, 2008, the Company and JPMorgan Chase terminated their merchant alliance joint venture, Chase Paymentech SolutionsTM ("CPS"),
which was the Company's largest merchant alliance. The Company received its proportionate 49% share of the assets of the joint venture, including domestic
merchant contracts, an equity investment in Merchant Link, a full-service ISO and Agent Bank unit, and a portion of the employees. The new domestic owned
and managed business is being operated as part of FDC's Merchant Services segment. First Data will continue to provide transaction processing and related
services for certain merchants of the joint venture that were allocated to JPMorgan Chase but are resident on First Data's processing platforms. First Data has
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