First Data 2009 Annual Report Download - page 259

Chase Paymentech
NOTES TO COMBINED FINANCIAL STATEMENTS
For the years ended December 31, 2007 and 2006 and
the year ended December 31, 2005 (unaudited) (Continued)
therefore. Dividends so declared must be paid equally with respect to shares of Class A Common Stock and
shares of Class B Common Stock. Likewise, in the event of liquidation, holders of Shares of Class B Common
Stock are entitled to share ratably with holders of Class A Common Stock in all assets remaining after payment
of liabilities. Holders of Class A Common Stock are prohibited from using their superior voting power to impair
the rights of holders of Class B Common Stock.
As discussed in Note 15, the Class B Common Stock (or Class B Shares) is subject to certain redemption
features. Additionally, should the Company undertake a public offering pursuant to an effective registration
statement under the Securities Act of 1933, as amended, each outstanding share of Class B Common Stock would
be automatically converted into one share of Class A Common Stock upon the date of the closing of the sale.
LLC’s
All of the Company’s LLCs are governed by Limited Liability Company Agreements, by and among their
respective owner(s) (the Members). All membership interests in the LLCs are of a single class and have the same
rights and privileges. Certain of the Members of Chase Paymentech Solutions, LLC have the right to elect the
LLC’s managers.
Partnership
JPMorgan Chase and FDC partnership interests in Chase Paymentech Solutions are of a single class and
have the same rights and privileges.
Other Comprehensive Income
The cumulative balance of each component of other comprehensive income, and associated income tax
effects, are as follows (in thousands):
Beginning
balance
Pretax
gain (loss)
amount
Tax benefit
(expense)
Ending
balance
December 31, 2005
Net unrealized gains (losses) on investments ......... $(1,944) $ 1,123 $ 10 $ (811)
Cash flow hedges .............................. (26) 31 — 5
Foreign currency translation adjustment ............ 25,360 3,037 — 28,397
Minimum pension liability adjustment ............. (2,032) (432) 152 (2,312)
$21,358 $ 3,759 $162 $25,279
December 31, 2006
Net unrealized gains (losses) on investments ......... $ (811) $ 224 $ (15) $ (602)
Cash flow hedges .............................. 5 (5) — —
Foreign currency translation adjustment ............ 28,397 (1,826) — 26,571
Minimum pension liability adjustment ............. (2,312) 194 (89) (2,207)
Adjustment to initially apply SFAS 158 ............ — (28) 10 (18)
$25,279 $ (1,441) $ (94) $23,744
December 31, 2007
Net unrealized gains (losses) on investments ......... $ (602) $ 1,082 $ (18) $ 462
Foreign currency translation adjustment ............ 26,571 38,184 — 64,755
Pension and SERP liability adjustments ............ (2,225) (250) 126 (2,349)
$23,744 $39,016 $108 $62,868
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