First Data 2009 Annual Report Download - page 11

The most significant competitive factors are price, system performance and reliability, breadth of features
and functionality, disaster recovery capabilities and business continuity preparedness, data security, scalability,
and flexibility of infrastructure and servicing capability. The Financial Services business is further impacted by
financial institution consolidation.
In both the Retail and Alliance Services and Financial Services segments, the card associations and payment
networks—Visa, MasterCard and Discover—are increasingly offering products and services that compete with
the Company’s products and services.
Financial Services Seasonality
Debit processing and STAR Network revenues and earnings are impacted by the volume of consumer usage
of debit cards at the point of sale. Such volumes are generally impacted by increased POS activity during the
traditional holiday shopping period in the fourth quarter, the back-to-school buying period in the third quarter,
and around other nationally recognized holidays.
Financial Services Geographic Mix and Revenues
Revenues from external customers for the Financial Services segment are substantially all earned in the U.S.
Card issuing revenues outside of the U.S. are reported by the Company’s International segment. Within the U.S.,
revenues from external customers are geographically dispersed throughout the country.
Financial Services Significant Customers
No individual customer makes up more than 10% of the Financial Services segment revenue.
International Segment
The International segment is comprised of:
• Credit, retail, debit and prepaid card processing;
• Merchant acquiring and processing; and
• ATM and POS processing, driving, acquiring and switching services.
International segment revenues from external customers, segment EBITDA and assets represent the
following percentages of total segment and All Other and Corporate revenues from external customers, total
segment and All Other and Corporate EBITDA and consolidated assets:
Successor Predecessor
Year ended
December 31,
2009
Year ended
December 31,
2008
Period from
September 25, 2007
through
December 31,
2007
Period from
January 1, 2007
through
September 24,
2007
Segment revenues from external customers ........ 25% 25% 25% 22%
Segment EBITDA ............................ 19% 17% 17% 15%
Assets (at December 31) (1) .................... 15% 15% 12%
(1) Segment assets in the successor periods were impacted by purchase accounting for the merger. Assets at
December 31, 2008 were additionally impacted by a goodwill impairment recorded in the fourth quarter of
2008 as described in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of
Operations, of this Form 10-K.
11