First Data 2009 Annual Report Download - page 96

FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Successor Predecessor
Year ended
December 31,
Period from
September 25,
2007
through
December 31,
2007 (a)
Period from
January 1, 2007
through
September 24,
2007(in millions) 2009 2008
Revenues:
Transaction and processing service fees:
Merchant related services (b) ...................... $3,047.0 $ 2,786.9 $ 691.0 $1,833.6
Check services ................................. 364.1 386.4 113.7 304.1
Card services .................................. 1,841.6 2,035.7 571.6 1,411.9
Other services .................................. 536.2 576.3 177.0 416.3
Investment income, net ............................... 8.4 77.1 (8.2) (66.9)
Product sales and other (b) ............................ 788.3 848.2 223.0 616.4
Reimbursable debit network fees, postage and other ........ 2,728.2 2,100.7 510.4 1,257.5
9,313.8 8,811.3 2,278.5 5,772.9
Expenses:
Cost of services (exclusive of items shown below) ......... 2,945.1 2,870.6 753.8 2,116.2
Cost of products sold ................................ 305.5 316.8 87.3 209.2
Selling, general and administrative ..................... 1,438.2 1,374.8 404.4 1,149.9
Reimbursable debit network fees, postage and other ........ 2,728.2 2,100.7 510.4 1,257.5
Depreciation and amortization ......................... 1,452.3 1,369.7 367.8 476.4
Other operating expenses:
Restructuring, net ............................... 92.8 12.0 (0.2) 7.9
Impairments ................................... 185.1 3,243.6 — 20.6
Litigation and regulatory settlements ................ 11.8 — — 2.5
Other ......................................... — — — (7.7)
9,159.0 11,288.2 2,123.5 5,232.5
Operating profit (loss) ................................... 154.8 (2,476.9) 155.0 540.4
Interest income ......................................... 11.7 26.0 17.9 30.8
Interest expense ........................................ (1,796.4) (1,964.9) (584.7) (103.6)
Other (expense) income .................................. (61.3) (14.4) (74.0) 4.9
(1,846.0) (1,953.3) (640.8) (67.9)
(Loss) income before income taxes, equity earnings in affiliates
and discontinued operations ............................. (1,691.2) (4,430.2) (485.8) 472.5
Income tax (benefit) expense .............................. (578.8) (699.2) (176.1) 125.8
Equity earnings in affiliates ............................... 97.8 123.0 46.8 223.0
Net (loss) income from continuing operations ................. (1,014.6) (3,608.0) (262.9) 569.7
Net loss from discontinued operations, net of taxes of $0, $0, $0,
and $3.0, respectively .................................. — — — (3.9)
Net (loss) income ....................................... (1,014.6) (3,608.0) (262.9) 565.8
Less: Net income attributable to noncontrolling interests ........ 71.8 156.3 39.0 105.0
Net (loss) income attributable to First Data Corporation ......... $(1,086.4) $ (3,764.3) $ (301.9) $ 460.8
(a) Includes the results of operations (reflecting the change in fair value of forward starting contingent interest rate swaps) of
Omaha Acquisition Corporation for the period prior to the merger with and into First Data Corporation from March 29,
2007 (its formation) through September 24, 2007. Also includes post merger results of First Data Corporation for the
period from September 25, 2007 to December 31, 2007.
(b) Includes processing fees, administrative service fees and other fees charged to merchant alliances accounted for under
the equity method of $107.7 million for the year ended December 31, 2009, $220.8 million for the year ended
December 31, 2008, $69.4 million for the successor period from September 25, 2007 through December 31, 2007 and
$186.5 million for the predecessor period from January 1, 2007 through September 24, 2007, respectively.
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