First Data 2008 Annual Report Download - page 5

Integrated Payment Systems
The principle business in the Integrated Payment Systems segment is official check and money order services. Official checks are sold through
independent agents, which are financial institutions, and money orders are sold through financial institutions and retail businesses.
Operating Locations
The Company has domestic and international operations and regional or country offices where sales, customer service and/or administrative personnel
are based. The international operations generate revenues from customers located and operating outside of the U.S. Revenues generated from processing
transactions at locations within the U.S. (domestic) and outside of the U.S. (international), regardless of the segments to which the associated revenues
applied, were 80% and 20% of FDC's consolidated revenues for the year ended December 31, 2008, respectively. Long-lived assets attributable to domestic
and international operations as percentages of FDC's total long-lived assets as of December 31, 2008 were 84% and 16%, respectively. No individual foreign
country is material to the Company's total revenues or long-lived assets. Further financial information relating to the Company's international and domestic
revenues and long-lived assets is set forth in Note 17 to the Company's Consolidated Financial Statements in Item 8 of this Form 10-K.
First Data Products and Services Segment Information
Financial information relating to each of the Company's segments is set forth in Note 17 to the Company's Consolidated Financial Statements in Item 8
of this Form 10-K. A discussion of factors potentially affecting the Company's operations is set forth in Item 7 "Management's Discussion and Analysis of
Financial Condition and Results of Operations," of this form 10-K. The Company does not have any significant customers that account for 10% or more of
total consolidated revenues. Refer to the following segment discussions, which address significant customer relationships within each segment.
The Company sold its ownership interests in Active Business Services, Ltd ("Active"), reported within the International segment, in July 2008 and
Peace Software ("Peace"), reported within the Financial Services segment, in October 2008. Revenue and operating profit associated with Active and Peace
are excluded from segment results. The International and Financial Services segment revenue and operating profit were adjusted for 2007 and 2006 to exclude
the results of Active and Peace.
Merchant Services Segment
The Merchant Services segment is comprised of merchant acquiring and processing services.
Merchant Services revenues from external customers, operating profit, and assets represent the following percentages of FDC's consolidated revenues,
total reported segment operating profit, and consolidated assets:
Successor Predecessor
Year ended
December 31,
2008
Period from
September 25, 2007
through
December 31,
2007
Period from
January 1, 2007
through
September 24,
2007
Year ended
December 31,
2006
Revenue from external customers 43% 41% 42% 44%
Operating profit (1), (2) 53% 46% 83% 66%
Assets (at December 31) (2) 52% 41% 32%
(1) – Operating profit, as a percentage of total segment and all other and corporate operating profit, for the predecessor period from January 1, 2007
through September 24, 2007 includes accelerated vesting of stock options and restricted stock awards and units and transaction costs related to the
merger of $265.2 million
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