First Data 2009 Annual Report Download - page 55

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FIRST DATA CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Retail and Alliance Services Segment Results
(in millions)
Historical Pro Forma Historical
Successor Successor Predecessor Percent Change
Year ended
December 31,
2009
Year ended
December 31,
2008
Year ended
December 31,
2007
Period from
September 25
through
December 31,
2007
Period from
January 1
through
September 24,
2007
2009
vs.
2008
Historical
2008
vs.
Pro Forma
2007
Revenues:
Transaction and processing
service fees ............ $ 2,720.1 $ 2,894.2 $ 2,871.1 $801.2 $2,069.9 (6)% 1%
Investment income, net ..... 5.4 44.3 84.6 22.2 62.4 (88)% (48)%
Product sales and other ..... 337.3 338.7 373.4 93.4 280.0 0% (9)%
Segment revenue .......... $ 3,062.8 $ 3,277.2 $ 3,329.1 $916.8 $2,412.3 (7)% (2)%
Segment EBITDA ......... $ 1,193.5 $ 1,407.8 $ 1,380.5 $395.3 $ 985.2 (15)% 2%
Segment Margin .......... 39% 43% 41% 43% 41% (4)pts 2pts
Year ended December 31,
2009 2008 2007
Key indicators:
Domestic merchant
transactions (a) ......... 28,257.8 26,856.9 25,359.0 5% 6%
(a) Domestic merchant transactions include acquired VISA and MasterCard credit and signature debit, PIN-debit, electronic
benefits transactions, and processed-only or gateway customer transactions at the POS. Domestic merchant transactions
include 100% of the CPS alliance transactions in 2007 and through the November 1, 2008 termination date. Subsequent
to the termination of the alliance, domestic merchant transactions include transactions related to the Company’s 49%
proportionate share of the alliance’s assets rather than 100% of alliance activity. In addition, domestic merchant
transactions include activity for JPMorgan Chase merchants that continue to process on the Company’s platforms. The
domestic merchant transactions continue to reflect all WFMS alliance transactions despite the deconsolidation described
above. Domestic merchant transactions for 2009 also include all of the transactions related to merchants contributed by
BofA to the BAMS alliance since the alliance was formed on June 26, 2009.
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