First Data 2009 Annual Report Download - page 114

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year ended
December 31,
2007
(in millions)
Revenues:
Transaction and processing service fees ............................................ $5,519.2
Investment income, net ......................................................... (75.1)
Product sales and other ......................................................... 839.4
Reimbursable debit network fees, postage and other .................................. 1,767.9
8,051.4
Expenses:
Cost of services (exclusive of items shown below) ................................... 2,755.8
Cost of products sold .......................................................... 296.5
Selling, general and administrative ............................................... 1,404.2
Reimbursable debit network fees, postage and other .................................. 1,767.9
Depreciation and amortization ................................................... 1,253.9
Other operating expenses:
Restructuring, net ......................................................... 7.7
Impairments ............................................................. 20.6
Litigation and regulatory settlements .......................................... 2.5
Other ................................................................... (7.7)
7,501.4
Operating profit .................................................................. 550.0
Interest income ................................................................... 48.7
Interest expense .................................................................. (2,036.4)
Other (expense) income ............................................................ (53.3)
(2,041.0)
Loss before income taxes, equity earnings in affiliates and discontinued operations ............. (1,491.0)
Income tax benefit ................................................................ (652.1)
Equity earnings in affiliates ......................................................... 134.0
Net loss from continuing operations ................................................... (704.9)
Less: Net income from continuing operations attributable to noncontrolling interests ............ 144.3
Net loss from continuing operations attributable to First Data Corporation .................... $ (849.2)
Additional Information
On September 24, 2007, Holdings sold $1.0 billion aggregate principal amount of 11.5% senior PIK notes
due 2016 to GS Mezzanine Partners VI Fund, L.P. and the Goldman Sachs Group, Inc. This $1.0 billion, net of
fees, was the source of funds for a portion of Holdings’ investment in FDC. No cash interest will accrue on these
notes. Interest on the notes will be paid by increasing the principal amount of the notes. Holdings’ senior PIK
notes are unsecured and neither FDC nor its subsidiaries provide credit support for Holdings’ obligations under
the notes. As a result, the senior PIK notes of Holdings are not indebtedness of FDC or its subsidiaries. However,
the senior PIK notes contain a number of covenants that, among other things, restrict, subject to certain
exceptions, FDC’s ability to:
• incur additional indebtedness;
• engage in mergers or consolidations;
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