First Data 2009 Annual Report Download - page 121

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
allocation resulted in identifiable intangible assets of $33 million, which are being amortized over five to 12
years and goodwill of $42 million. The Company owns 81% of the alliance which is consolidated and reported in
the International segment.
The aggregate cash paid for acquisitions during the year ended December 31, 2009 was approximately $87
million, net of cash acquired. The aggregate preliminary purchase price allocation associated with acquisitions
during 2009 resulted in identifiable intangible assets and goodwill as follows:
Preliminary
purchase price
allocation
(in millions)
Weighted-average
useful life
Customer relationships ............................ $ 967.7 11 years
Trade names .................................... 389.0 20 years
Other intangibles ................................ 16.2 9 years
Total identifiable intangibles ................... $1,372.9 14 years
Goodwill (a) .................................... $2,169.7
(a) Much of the goodwill in the BAMS transaction represents synergies in processing and other strengths of the
respective partners. None of the goodwill is deductible for tax purposes.
Additional Information
The pro forma impact of all 2009 acquisitions on net income was not material.
2009 Dispositions
In August 2009 the Company divested its debit and credit card issuing and acquiring processing business in
Austria which was reported as part of the International segment. The Company recognized a loss on the sale of
$37.2 million, comprised of a $21.9 million loss classified as “Other income (expense)” and a $15.3 million
income tax expense in the Consolidated Statements of Operations.
In November 2009, the Company sold a merchant acquiring business in Canada which was reported as part
of the International segment. The Company recognized a loss on the sale of $7.8 million, comprised of a $10.0
million gain classified as “Other income (expense)” and a $17.8 million income tax expense in the Consolidated
Statements of Operations.
2008 Acquisitions
In January 2008, the Company entered into an alliance with AIB, of which the Company owns 50.1%. The
alliance provides card acquiring services in the Republic of Ireland, the United Kingdom and elsewhere in
Europe. The purchase price allocation resulted in identifiable intangible assets of $79 million, which are being
amortized over 10 years, a trade name of $15 million that is being amortized over 10 years and goodwill of $90
million. The alliance with AIB is consolidated and reported in the International segment.
In February 2008, the Company purchased the remaining interest in Unified Network Payment Solutions
(“UNPS”) located in Canada. UNPS is consolidated and reported as part of the International segment.
In July 2008, FDC and its parent, Holdings, purchased the remaining 18.2% and 13.6% of the outstanding
equity of Money Network, respectively, not already owned by the Company. The purchase price paid by
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