First Data 2009 Annual Report Download - page 115

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
• sell or transfer assets and subsidiary stock;
• pay dividends and distributions or repurchase its capital stock;
• make certain investments, loans or advances;
• prepay certain indebtedness;
• enter into agreements that restrict the payment of dividends by subsidiaries or the repayment of
intercompany loans and advances; and
• engage in certain transactions with affiliates.
Note 3: Restructuring, Impairments, Litigation and Regulatory Settlements and Other Costs
The Company recorded restructuring charges, impairment charges, litigation and regulatory settlements and
other costs during the three years ended December 31, 2009. Restructuring accruals are reviewed each period and
balances in excess of anticipated requirements are reversed through the same Consolidated Statements of
Operations caption in which they were originally recorded. Such reversals resulted from the favorable resolution
of contingencies and changes in facts and circumstances.
A summary of net pretax benefits (charges), incurred by segment, for each period is as follows (in millions):
Pretax Benefit (Charge)
Successor year ended December 31, 2009
Retail and
Alliance
Services
Financial
Services International
Integrated
Payment
Systems
All Other
and
Corporate Divested Totals
Restructuring charges .............. $ (15.9) $ (14.5) $ (49.2) $ — $ (22.0) $ (0.5) $ (102.1)
Restructuring accrual reversals ...... 4.2 1.7 2.9 — 0.5 — 9.3
Impairments ..................... — — (131.9) — (53.2) — (185.1)
Litigation and regulatory
settlements .................... — (14.5) — — 2.7 — (11.8)
Total pretax charge, net of
reversals .................. $ (11.7) $ (27.3) $(178.2) $ — $ (72.0) $ (0.5) $ (289.7)
Successor year ended December 31, 2008
Restructuring charges .............. $ (7.2) $ (13.2) — $ — — — $ (20.4)
Restructuring accrual reversals ...... 0.7 7.6 — — — $ 0.1 8.4
Impairments ..................... (1,106.5) (1,396.0) $(376.2) — $(160.7) (204.2) (3,243.6)
Total pretax charge, net of
reversals .................. $(1,113.0) $(1,401.6) $(376.2) $ — $(160.7) $(204.1) $(3,255.6)
Predecessor period from January 1, 2007 to
September 24, 2007
Restructuring charges .............. $ (2.8) — $ (7.1) — — $ (0.3) $ (10.2)
Restructuring accrual reversals ...... 0.4 $ 0.2 0.9 — $ 0.7 0.1 2.3
Impairments ..................... — — — $(16.3) (4.3) — (20.6)
Litigation and regulatory
settlements .................... (5.0) — — — 2.5 — (2.5)
Other ........................... 2.1 — (0.4) 2.2 3.8 — 7.7
Total pretax benefit (charge), net
of reversals ................ $ (5.3) $ 0.2 $ (6.6) $(14.1) $ 2.7 $ (0.2) $ (23.3)
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