First Data 2009 Annual Report Download - page 64

FIRST DATA CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Unaudited Pro Forma Condensed Consolidated Statement of Operations
(in millions)
Historical
Pro Forma
Adjustments Pro Forma
Successor Predecessor
Period from
September 25
through
December 31,
2007
Period from
January 1
through
September 24,
2007
Year ended
December 31,
2007
Revenues:
Transaction and processing service fees ....... $1,553.3 $3,965.9 $ — $ 5,519.2
Investment income, net .................... (8.2) (66.9) — (75.1)
Product sales and other .................... 223.0 616.4 — 839.4
Reimbursable debit network fees, postage and
other ................................. 510.4 1,257.5 — 1,767.9
2,278.5 5,772.9 — 8,051.4
Expenses:
Cost of services (exclusive of items shown
below) ............................... 753.8 2,116.2 (114.2)(a) 2,755.8
Cost of products sold ...................... 87.3 209.2 — 296.5
Selling, general and administrative ........... 404.4 1,149.9 (150.1)(b) 1,404.2
Reimbursable debit network fees, postage and
other ................................. 510.4 1,257.5 — 1,767.9
Depreciation and amortization .............. 367.8 476.4 409.7 (c) 1,253.9
Other operating expenses (d) ................ (0.2) 23.3 — 23.1
2,123.5 5,232.5 145.4 7,501.4
Operating profit .............................. 155.0 540.4 (145.4) 550.0
Interest income .............................. 17.9 30.8 — 48.7
Interest expense .............................. (584.7) (103.6) (1,348.1)(e) (2,036.4)
Other income (expense) ........................ (74.0) 4.9 15.8 (f) (53.3)
(Loss) income before income taxes, equity earnings
in affiliates and discontinued operations ......... (485.8) 472.5 (1,477.7) (1,491.0)
Income tax (benefit) expense .................... (176.1) 125.8 (601.8)(g) (652.1)
Equity earnings in affiliates ..................... 46.8 223.0 (135.8)(h) 134.0
Net (loss) income from continuing operations ...... (262.9) 569.7 (1,011.7) (704.9)
Less: Net income from continuing operations
attributable to noncontrolling interests .......... 39.0 105.3 — 144.3
Net (loss) income from continuing operations
attributable to First Data Corporation ........... $ (301.9) $ 464.4 $(1,011.7) $ (849.2)
(a) Adjustments to Cost of services consist of adjustments related to the reversal of amortization of prior year
service costs and actuarial gains and losses related to defined benefit plans of $3.9 million; the reversal of
costs associated with the accelerated vesting of equity awards of $105.6 million; and the reversal of rent
expense of $4.7 million related to synthetic leases bought out as a result of change in control provisions.
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