First Data 2008 Annual Report Download - page 99

FIRST DATA CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
consolidated earnings and not as a separate component of income or expense. However, it will also require expanded disclosures of the attribution of
consolidated earnings to the controlling and non-controlling interests on the face of the consolidated income statement. SFAS No. 160 will require that
changes in a parent's controlling ownership interest, that do not result in a loss of control of the subsidiary, are accounted for as equity transactions among
shareholders in the consolidated entity therefore resulting in no gain or loss recognition in the income statement. Only when a subsidiary is deconsolidated
will a parent recognize a gain or loss in net income. SFAS No. 160 will be applied by the Company prospectively beginning January 1, 2009 except for the
presentation and disclosure requirements that will be applied retrospectively for all periods presented.
Forward-Looking Statements
Certain matters the Company discusses in this Annual Report on Form 10-K and in other public statements may constitute forward-looking statements.
You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans,"
"estimates," or "anticipates" or similar expressions which concern the Company's strategy, plans, projections or intentions. All statements the Company makes
relating to revenue, EBITDA, earnings, margins, growth rates and other financial results for future periods are forward-looking statements. All forward-
looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to
numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected. Important factors
upon which the Company's forward-looking statements are premised include:
(a) no adverse impact on the Company's business as a result of its high degree of leverage;
(b) timely, successful and cost-effective consolidation of the Company's processing platforms and data centers;
(c) continued growth at rates approximating recent levels for card-based payment transactions and other product markets;
(d) successful conversions under service contracts with major clients;
(e) successful and timely integration of significant businesses and technologies acquired by the Company and realization of anticipated synergies;
(f) timely, successful and cost-effective implementation of processing systems to provide new products, improved functionality and increased
efficiencies;
(g) continuing development and maintenance of appropriate business continuity plans for the Company's processing systems based on the needs and
risks relative to each such system;
(h) absence of further consolidation among client financial institutions or other client groups which has a significant impact on Company client
relationships and no material loss of business from significant customers of the Company;
(i) achieving planned revenue growth throughout the Company, including in the merchant alliance program which involves several joint ventures
not under the sole control of the Company and each of which acts independently of the others, and successful management of pricing pressures
through cost efficiencies and other cost-management initiatives;
(j) successfully managing the credit and fraud risks in the Company's business units and the merchant alliances, particularly in the context of the
developing e-commerce markets;
(k) anticipation of and response to technological changes, particularly with respect to e-commerce;
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