First Data 2009 Annual Report Download - page 125

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table presents changes to goodwill for the year ended December 31, 2009 and the year ended
December 31, 2008, (in millions):
Retail and
Alliance
Services
Financial
Services International
All Other
and
Corporate
Divested
Operations Totals
January 1, 2008 balance ............ $10,474.2 $ 3,303.1 $2,624.1 $ 188.5 $ 227.3 $16,817.2
Acquisitions ..................... 753.7 — 66.4 — — 820.1
Dispositions/Deconsolidation ........ (734.0) — — — (5.2) (739.2)
Purchase price adjustments related to
the merger ..................... 1,433.1 (136.2) 239.7 53.1 6.0 1,595.7
Purchase price adjustments related to
prior year successor acquisitions . . . (0.1) — (0.2) — — (0.3)
Goodwill impairments ............. (1,106.5) (1,395.2) (375.6) (160.4) (181.3) (3,219.0)
Other adjustments (primarily foreign
currency) ...................... (1.3) — (407.8) — (4.2) (413.3)
Balance as of December 31, 2008
Goodwill .................... 11,925.6 3,166.9 2,522.2 241.6 223.9 18,080.2
Accumulated impairment
losses .................... (1,106.5) (1,395.2) (375.6) (160.4) (181.3) (3,219.0)
10,819.1 1,771.7 2,146.6 81.2 42.6 14,861.2
Acquisitions ..................... 2,127.2 — 42.5 — — 2,169.7
Dispositions ..................... — — — — (38.6) (38.6)
Purchase price adjustments ......... 323.6 (0.3) 31.8 (0.2) — 354.9
Reallocation of goodwill ........... (244.4) 290.4 — (46.0) — —
Goodwill impairments ............. — — — (16.6) — (16.6)
Other adjustments (primarily foreign
currency) ...................... 0.9 — 148.3 — (4.0) 145.2
Balance as of December 31, 2009
Goodwill ................ 14,132.9 3,457.0 2,744.8 195.4 181.3 20,711.4
Accumulated impairment
losses ................ (1,106.5) (1,395.2) (375.6) (177.0) (181.3) (3,235.6)
$13,026.4 $ 2,061.8 $2,369.2 $ 18.4 — $17,475.8
The terms of certain of the Company’s acquisition agreements provide for additional consideration to be
paid if the acquired entity’s results of operations exceed certain targeted levels or if certain other conditions are
met, as well as other payments or receipts of cash related to certain events that transpired subsequent to the
acquisition of certain companies. Targeted levels are generally set substantially above the historical experience of
the acquired entity at the time of acquisition. Such additional consideration is paid in cash and is recorded when
payable as additional purchase price. Additional consideration was paid totaling $14.7 million in 2009, $35.6
million in 2008, $0.5 million in the successor period from September 25, 2007 through December 31, 2007, and
$50.0 million in the predecessor period from January 1, 2007 through September 24, 2007. As of December 31,
2009, the Company did not have any contingent consideration payable.
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