First Data 2009 Annual Report Download - page 118

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
estimates as of December 31, 2008 and appropriately consider the impact of the deterioration in general global
economic conditions. The Company relied in part on a third party valuation firm in determining the appropriate
discount rates. All key assumptions and valuations were determined by and are the responsibility of management.
Also during 2008, the Company recorded a charge related to an asset impairment associated with the
Company’s subsidiary, Peace, included within divested businesses in the table above. The impairment occurred
because of the deterioration of profitability on existing business and Peace’s limited success in attracting new
clients. This resulted in the Company recording an impairment of $29.9 million of the goodwill and intangible
assets associated with this business. The Company sold Peace in October of 2008.
During the 2007 predecessor period, the Company recorded a charge of $16.3 million related to the
impairment of goodwill and intangible assets associated with the wind-down of the Company’s official check and
money order business and an additional $4.3 million related to the impairment of fixed assets and software
associated with its government business included in All Other and Corporate.
Litigation and regulatory settlements
In 2009, the Company recorded anticipated settlements of several matters within the Financial Services
segment.
In the predecessor period from January 1, 2007 through September 24, 2007, the Company recorded a $5.0
million litigation accrual associated with a judgment against the Company pertaining to a vendor contract issue in
the Retail and Alliance Services segment and a benefit of $2.5 million related to the Visa settlement originally
recorded in 2006 in All Other and Corporate.
Other
The majority of the benefit recorded during the 2007 predecessor period related to the release of a portion of
the domestic escheatment accrual made in the fourth quarter of 2005. The release was prompted by reaching
resolution with a large majority of states as to the Company’s escheatment liability.
118