First Data 2009 Annual Report Download - page 28

The Company may experience software defects, computer viruses and development delays, which could
damage customer relations, decrease the Company’s potential profitability and expose it to liability.
The Company’s products are based on sophisticated software and computing systems that often encounter
development delays, and the underlying software may contain undetected errors, viruses or defects. Defects in
the Company’s software products and errors or delays in the Company’s processing of electronic transactions
could result in:
• additional development costs;
• diversion of technical and other resources from the Company’s other development efforts;
• loss of credibility with current or potential customers;
• harm to the Company’s reputation; or
• exposure to liability claims.
In addition, the Company relies on technologies supplied to it by third parties that may also contain
undetected errors, viruses or defects that could have a material adverse effect on the Company’s business,
financial condition and results of operations. Although the Company attempts to limit its potential liability for
warranty claims through disclaimers in the Company’s software documentation and limitation-of-liability
provisions in the Company’s license and customer agreements, the Company cannot assure that these measures
will be successful in limiting the Company’s liability.
ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
ITEM 2. PROPERTIES
As of December 31, 2009, the Company and its subsidiaries owned or leased approximately 83 domestic
properties and approximately 88 international properties. These facilities are used for operational, sales and
administrative purposes, and are substantially all currently being utilized.
Leased Facilities Owned Facilities
No. Sq. Ft. No. Sq. Ft.
Facilities in the United States
Retail and Alliance Services ....................... 32 1,028,806 5 623,280
Financial Services ............................... 21 714,920 12 1,826,719
Integrated Payment Systems ....................... 1 30,022 — —
All Other and Corporate .......................... 10 661,981 2 140,600
International Facilities
Retail and Alliance Services ....................... 1 2,250 — —
International ................................... 80 1,128,447 7 430,363
Retail and Alliance Services’ principal operations are conducted in Melville, New York; Hagerstown,
Maryland; Coral Springs, Florida and Houston, Texas. The principal operations for Financial Services are located
in Omaha, Nebraska; Wilmington, Delaware; Maitland, Florida; and Chesapeake, Virginia. The principal
operations for International are located in Basildon, United Kingdom; Frankfurt, Germany; Athens (Kryoneri),
Greece; Sydney, Australia; and Buenos Aires, Argentina. The Company’s All Other and Corporate facilities
include the Company’s corporate offices in Atlanta, Georgia and Greenwood Village, Colorado.
The Company believes that its facilities are suitable and adequate for its current business; however, the
Company periodically reviews its space requirements and may acquire new space to meet the needs of its
businesses or consolidate and dispose of or sublet facilities which are no longer required.
28