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FIRST DATA CORP
10-K
Annual report pursuant to section 13 and 15(d)
Filed on 03/10/2011
Filed Period 12/31/2010

Table of contents

  • Page 1
    FIRST DATA CORP 10-K Annual report pursuant to section 13 and 15(d) Filed on 03/10/2011 Filed Period 12/31/2010

  • Page 2
    ... EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-11073 FIRST DATA CORPORATION DELAWARE (State of incorporation) (Address of principal executive offices) (Zip Code) 47-0731996 (I.R.S. Employer Identification No.) 5565 GLENRIDGE CONNECTOR, N.E., SUITE 2000, ATLANTA...

  • Page 3
    ... the Company's Consolidated Financial Statements in Item 8 of this Form 10-K. Products and Services Segment Information The Company is organized in three segments: Retail and Alliance Services, Financial Services and International. Effective January 1, 2010, the Integrated Payment Systems operating...

  • Page 4
    ... location or over the internet. A brief explanation of the segment's service and product offerings is presented below. Merchant acquiring and processing services. Merchant acquiring services facilitate the merchants' ability to accept credit, debit, stored-value and loyalty cards by authorizing...

  • Page 5
    ... and mid-tier merchants. The Company also provides program management and processing services for association-branded, bankissued, open loop, stored-value, reloadable and one time prepaid card products. Money Network offers prepaid products to address the needs of employers, employees, merchants and...

  • Page 6
    ... on the road. Transportation companies use the processing system to manage their business daily through the internet or real time via a direct connection to a host. Check verification, settlement and guarantee services. TeleCheck offers check verification, settlement and guarantee services using the...

  • Page 7
    ...card processing services and ATM processing services, such as transaction routing, authorization, and settlement as well as ATM management and monitoring. The STAR Network represents a telecommunications network which is connected to thousands of financial institutions, merchants, payment processors...

  • Page 8
    ...in the customer's bank account. Revenue related to the STAR Network and debit card and ATM processing services is derived from fees payable under contracts but are driven more by monetary transactions processed rather than by accounts on file. The Company provides services which are driven by client...

  • Page 9
    ... of the Company's business units are grouped in the All Other and Corporate category, which includes Integrated Payment Systems ("IPS"), First Data Government Solutions ("FDGS") and smaller businesses as well as corporate operations. The principal IPS business is official check services. IPS issues...

  • Page 10
    ... the Electronic Federal Tax Payment System. Corporate operations include administrative and shared service functions such as the executive group, legal, tax, treasury, internal audit, accounting, human resources, information technology and procurement. Costs incurred by corporate that are directly...

  • Page 11
    ... Company's subsidiaries in the International segment are members of MasterCard and/or Visa in the countries where the subsidiaries do business and are subject to the rules of such associations. First Data Resources, LLC, First Data Merchant Services Corporation, and STAR Network, along with a number...

  • Page 12
    ... or termination of services. Banking regulation. Because a number of the Company's subsidiary businesses, including card issuer processing, merchant processing and STAR Network businesses as well as those subsidiaries engaged in the business of ATM deployment, provide data processing services for...

  • Page 13
    ... of TeleCheck's risk management tools or otherwise increase its costs of doing business. Such legislation could also affect the business of First Data Solutions, Inc., which provides access to non-FCRA data for identity verification and fraud-prevention purposes, by imposing new regulatory...

  • Page 14
    ... employment. For example, the Credit Card Accountability Responsibility and Disclosure Act of 2009 created new requirements applicable to general-use prepaid cards, store gift cards, and electronic gift certificates effective August 22, 2010, and the Federal Reserve Board published on March 23, 2010...

  • Page 15
    ... expenditures, product development, debt service requirements, acquisitions and general corporate or other purposes; and limiting the Company's flexibility in planning for, or reacting to, changes in the Company's business or market conditions and placing the Company at a competitive disadvantage...

  • Page 16
    ... 2009, the Company formed a new alliance, Banc of America Merchant Services, LLC ("BAMS"), with Bank of America, N.A. Processing, technology and operational synergies of BAMS are dependent upon the successful migration of merchant accounts to the Company. Any failure to migrate accounts or material...

  • Page 17
    ... executive agency within the Federal Reserve Board to regulate consumer financial products and services (including many offered by the Company's customers), restricting debit card fees paid by merchants to issuer banks and allowing merchants to offer discounts for different payment methods. Network...

  • Page 18
    ... to their internal merchant processing businesses that compete with the Company. Bank consolidation has led to an increasingly concentrated client base in the industry, resulting in a changing client mix for Financial Services as well as increased price compression. Further consolidation in the...

  • Page 19
    ... and debit network fees or products could increase costs or otherwise limit the Company's operations. From time to time, card associations and debit networks increase the organization and/or processing fees (known as interchange fees) that they charge. It is possible that competitive pressures will...

  • Page 20
    ...Company's merchant alliances, it holds an ownership interest in several competing merchant acquiring businesses while serving as the electronic processor for those businesses. In order to satisfy state and federal antitrust requirements, the Company actively maintains an antitrust compliance program...

  • Page 21
    ...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...

  • Page 22
    ... of New York, and one in the Western District of Washington (Seattle). All cases were transferred to the Northern District Court of California and the Court consolidated all of the ATM interchange cases pending against the defendants in Brennan (referred to collectively as the "ATM Fee Antitrust...

  • Page 23
    .... The Company classified Western Union, Primary Payment Systems, IDLogix and Taxware as discontinued operations in 2006. Amounts below include acquisitions since the date acquired. In 2008, the Company changed to a classified balance sheet presentation. Balance sheet data for 2007 and 2006...

  • Page 24
    ... of initial payments for new contracts, which is recorded as a contra-revenue within "Transaction and processing service fees" and amortization related to equity method investments, which is netted within "Equity earnings in affiliates" in the Consolidated Statements of Operations. Other long...

  • Page 25
    ... of America Merchant Services, LLC ("BAMS"). BAMS provides clients with a comprehensive suite of acquiring and processing payment products for credit and debit cards as well as merchant loyalty, prepaid, check and e-commerce solutions. At the time of the formation, the Company owned a 48.45% direct...

  • Page 26
    ... regulatory changes may cause the number of transactions the Company processes or its operating margins to decline as the Company adjusts its activities in light of increased compliance costs and customer requirements. Chase Paymentech Solutions and Wells Fargo Merchant Services. On November 1, 2008...

  • Page 27
    ...'s check verification, settlement and guarantee business. The segment also manages prepaid stored-value card issuance and processing services (i.e. gift cards) for retailers and others. Financial Services segment. The Financial Services segment provides issuer card and network solutions and payment...

  • Page 28
    ... verification, settlement and guarantee fees which are charged on a per transaction basis or as a percentage of the face value of the check. "Card services" revenue related to credit and retail card processing is comprised primarily of fees charged to the client based on cardholder accounts on file...

  • Page 29
    ... of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Cost of products sold. These costs include those directly associated with product and software sales such as cost of POS devices, merchant terminal leasing costs and...

  • Page 30
    ... FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Operating revenues overview. Transaction and processing service fees. Revenue increased in 2010 compared to 2009 due to the incremental impact of the BAMS alliance, new sales...

  • Page 31
    ...processing service fee revenue, increased slightly in 2009 compared to 2008 as a result of the items noted above. Cost of products sold. Expenses increased in 2010 compared to 2009 due to an increase in terminal sales partly due to new regulations, new sales and increased sales to existing customers...

  • Page 32
    ... of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) 2010 Activities. Retail and Alliance Services Financial Services All Other and Corporate Year ended December 31, 2010 International Totals Restructuring charges...

  • Page 33
    ... first and second quarters of 2010, the Company released $2.0 million related to these settlements. 2008 Activities. Pretax Benefit (Charge) Retail and Alliance Services Financial Services All Other and Corporate Divested Operations Year ended December 31, 2008 International (in millions) Totals...

  • Page 34
    ... FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) results as compared to those used to allocate the purchase price of the merger with an affiliate of Kohlberg Kravis and Roberts ("KKR") in 2007. Also during 2008, the Company...

  • Page 35
    ... the merger with an affiliate of KKR in 2007. Subsequent to the merger and as part of the First Data Holdings, Inc. ("Holdings") consolidated federal group and consolidated, combined or unitary state groups for income tax purposes, the Company has been and continues to be in a tax net operating loss...

  • Page 36
    ...of the Company's ownership interest in the Wells Fargo Merchant Services alliance that occurred on December 31, 2008. The business segment measurements provided to and evaluated by the chief operating decision maker are computed in accordance with the following principles The accounting policies of...

  • Page 37
    ... ISO's that are recorded as contra revenue. Corporate operations include administrative and shared service functions such as the executive group, legal, tax, treasury, internal audit, accounting, human resources, information technology and procurement. Costs incurred by Corporate that are directly...

  • Page 38
    ... was formed on June 26, 2009. Transaction and processing service fees revenue. Year ended December 31, (in millions) 2010 2009 2008 Percent Change 2010 vs. 2009 2009 vs. 2008 Acquiring revenue Check processing revenue Prepaid revenue Processing fees and other revenue from alliance partners Total...

  • Page 39
    Table of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Processing fees and other revenue from alliance partners. The increase in processing fees and other revenue from alliance partners in 2010 compared to 2009 ...

  • Page 40
    ... offset in total Financial Services segment revenue by the recognition of contract termination fees in the "Product sales and other" line in the Consolidated Statements of Operations. Washington Mutual Bank represented approximately 7% of transaction and processing service fees revenue for the...

  • Page 41
    ...compliance with new credit card regulations) as well as higher technology cost allocations. Also impacting segment EBITDA was lower incentive compensation which benefited the growth rate by 2 percentage points. The contract termination fees related to the Washington Mutual Bank agreement termination...

  • Page 42
    ...card issuing businesses in the United Kingdom, Australia and Canada. Foreign currency exchange rate movements benefited the transaction and processing service fee growth rate in 2010 versus 2009 by 1 percentage point. Transaction and processing service fees revenue decreased in 2009 compared to 2008...

  • Page 43
    ... processing service fee revenue is driven by accounts on file and transactions. The spread between growth in these two indicators and revenue growth was driven mostly by the impact of foreign exchange rate movements, the mix of transaction types and price compression. Product sales and other revenue...

  • Page 44
    Table of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Debt exchange. On December 17, 2010, FDC completed its private exchange offers ( "Debt Exchange"), in which FDC offered to exchange its 9.875% Senior notes due ...

  • Page 45
    ... in 2007 subsequent to the merger with an affiliate of KKR and received a cash benefit in 2008. Cash flows from operating activities decreased in 2010 compared to 2009 due most significantly to the $246 million out of period collection in 2009 described below, the timing of payments on liabilities...

  • Page 46
    ... its debit and credit card issuing and acquiring processing business in Austria in the third quarter of 2009. The source of cash in proceeds from dispositions in 2008 resulted from the Company selling its interest in Early Warning Services, which had been accounted for under the equity method, and...

  • Page 47
    ...of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Capital expenditures in 2010 and 2009 decreased from 2008 as a result of the Company managing its discretionary capital spending. Proceeds from the sale of marketable...

  • Page 48
    ... of shares in Holdings by certain management employees of FDC. The Company used these contributions to fund operations. Excess tax benefit from share-based payment arrangement. The excess tax benefit from share-based payment arrangement in 2008 represents the exercise of Western Union stock options...

  • Page 49
    ... Chase terminated their merchant alliance, CPS, which was the Company's largest merchant alliance. The Company received its proportionate 49% share of the assets of the alliance, including domestic merchant contracts, an equity investment in Merchant Link, a full-service ISO and Agent Bank unit...

  • Page 50
    Table of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) The receipt of the Company's proportionate share of CPS was accounted for as a business combination and was a non-cash transaction. Guarantees and covenants. ...

  • Page 51
    ...with the termination of the Chase Paymentech alliance and expenses related to the conversion of certain Banc of America Merchant Services alliance merchant clients onto First Data platforms, all of which are considered business optimization projects. Represents KKR annual sponsor fees for management...

  • Page 52
    Table of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) capital investments. Management compensates for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more ...

  • Page 53
    ... 13 to the Consolidated Financial Statements included in Item 8 of this Form 10-K for details regarding the Company's stock-based compensation plan. Reserve for merchant credit losses and check guarantees. With respect to the merchant acquiring business, the Company's merchant customers (or those of...

  • Page 54
    ... in merchant fraud. Merchant credit losses are included in "Cost of services" in the Company's Consolidated Statements of Operations. The following table presents the aggregate merchant credit losses incurred compared to total dollar volumes processed: Year ended December 31, 2010 2009 2008 FDC...

  • Page 55
    ... auction dates, maximum auction rates, as well as underlying collateral, ratings, and guarantees or insurance. Substantially all SLARS held by the Company have collateral backed by the Federal Family Education Loan Program ("FFELP"). The probabilities of auction failure, a successful auction or...

  • Page 56
    Table of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) each period were discounted back to present value at the determined discount rate for each security. The discount rates used in the valuation were a combination...

  • Page 57
    ...termination. The Company's accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated ongoing future cash flows from the contract or the termination fees the Company would receive in the event of early termination of the contract by the customer...

  • Page 58
    ... attracting new clients. The Company sold Peace in October of 2008. Refer to "Results of Operations - Other operating expenses, net" above for additional information regarding these impairments. The Company followed a discounted cash flow approach in estimating the fair value of the reporting units...

  • Page 59
    ... the Consolidated Statements of Operations. Certain members of the Company's Board of Directors are affiliated with KKR. In addition, First Data has a management agreement with affiliates of KKR pursuant to which such entities or their affiliates provide management services to the Company. Pursuant...

  • Page 60
    ... FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Forward-Looking Statements Certain matters the Company discusses in this Annual Report on Form 10-K and in other public statements may constitute forward-looking statements...

  • Page 61
    Table of Contents FIRST DATA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) time, and it is not possible for the Company to predict all of them. Any forward-looking statement made by the Company speaks only as of the date on which it ...

  • Page 62
    ... and Alliance Services segment holds an ownership interest in several competing merchant acquiring businesses while serving as the electronic processor for those businesses. In order to satisfy state and federal antitrust requirements, the Company actively maintains an antitrust compliance program...

  • Page 63
    ... PUBLIC ACCOUNTING FIRM (Item 15(a)) First Data Corporation and Subsidiaries: Consolidated Financial Statements: Report of Ernst & Young LLP, Independent Registered Public Accounting Firm Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008 Consolidated...

  • Page 64
    ... Registered Public Accounting Firm The Board of Directors and Shareholders of First Data Corporation We have audited the accompanying consolidated balance sheets of First Data Corporation as of December 31, 2010 and 2009, and the related consolidated statements of operations, cash flows, equity and...

  • Page 65
    ...FIRST DATA CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Year ended December 31, (in millions) 2010 2009 2008 Revenues: Transaction and processing service fees: Merchant related services (a) Check services Card services Other services Product sales and other (a) Reimbursable debit network fees...

  • Page 66
    ... 1,000 shares (2010 and 2009) Additional paid-in capital Paid-in capital Accumulated loss Accumulated other comprehensive loss Total First Data Corporation stockholder's equity Noncontrolling interests Total equity Total liabilities and equity See Notes to Consolidated Financial Statements. 65 $ 180...

  • Page 67
    ... to other businesses previously acquired Proceeds from dispositions, net of expenses paid and cash disposed Proceeds from sale of property and equipment Additions to property and equipment, net Payments to secure customer service contracts, including outlays for conversion, and capitalized systems...

  • Page 68
    ... compensation expense and excess tax benefit from share-based payment arrangement Cash dividends paid by First Data Corporation to Parent Other Balance, December 31, 2008 Adjustment resulting from adoption of new accounting guidance Acquisitions Formation of Banc of America Merchant Services, LLC...

  • Page 69
    ... gain Comprehensive loss Adjustment to redemption value of redeemable noncontrolling interests Stock compensation expense and other Cash dividends paid by First Data Corporation to Parent Balance, December 31, 2010 (1) $ Total (188.5) (5.0) Paid-In Capital (7.5) Noncontrolling Interests...

  • Page 70
    Table of Contents FIRST DATA CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year ended December 31, 2010 2009 2008 Net loss (1) Other comprehensive income (loss), net of tax: Unrealized gains (losses) on securities Unrealized gains (losses) on hedging activities ...

  • Page 71
    ... Significant Accounting Policies Business Description First Data Corporation ("FDC" or "the Company") operates electronic commerce businesses providing a variety of services to financial institutions, commercial establishments and consumers. Such services include merchant transaction processing and...

  • Page 72
    ...where an alliance is accounted for under the equity method, the Company's consolidated revenues include the processing fees charged to the alliance, as presented on the face of the Consolidated Statements of Operations. Revenue from check verification, settlement and guarantee services is recognized...

  • Page 73
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Stock-Based Compensation Stock-based compensation to employees is measured at the grant date fair values of the respective stock options and restricted stock awards and expensed over the requisite ...

  • Page 74
    ... Statements of Operations. The amount of the reserves attributable to entities consolidated by the Company was $39.9 million and $45.9 million as of December 31, 2010 and 2009, respectively. The majority of the TeleCheck Services, Inc. ("TeleCheck") business involves the guarantee of checks...

  • Page 75
    ... initial payments for new contracts, contract renewals and conversion costs associated with customer processing relationships to the extent recoverable through future operations, contractual minimums and/or penalties in the case of early termination. The Company's accounting policy is to limit the...

  • Page 76
    ... discounted commercial paper, time deposits, and corporate bonds. The Company's long-term settlement assets are comprised of student loan auction rate securities ("SLARS") and corporate bonds. Additionally, the Company maintains investments in marketable and non-marketable securities, chiefly equity...

  • Page 77
    ... to be other than temporary in nature are recognized in the Consolidated Statements of Operations. For public company equity securities, the Company's policy is to treat a decline in the investment's quoted market value that has lasted for more than six months as an other than temporary decline in...

  • Page 78
    ...THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) A summary of net pretax benefits (charges), incurred by segment, for each period is as follows (in millions): Pretax Benefit (Charge) Retail and Alliance Services Financial Services All Other and Corporate Year ended December 31, 2010 International...

  • Page 79
    ... were higher discount rates and revised projections of financial results as compared to those used to allocate the purchase price of the merger with an affiliate of Kohlberg Kravis Roberts & Co. ("KKR") in 2007. The revised projections resulted from the global economic situation in 2008 that caused...

  • Page 80
    ... investor, formed a new company, BAMS. BAMS provides clients with a comprehensive suite of acquiring and processing payment products for credit and debit cards as well as merchant loyalty, prepaid, check and e-commerce solutions. At the time of the formation, the Company owned a 48.45% direct voting...

  • Page 81
    .... In December 2009, the Company formed a merchant acquiring alliance with ICICI Bank, ICICI Merchant Services. ICICI Merchant Services provides card acquiring services in India. The Company owns 81% of the alliance which is consolidated and reported in the International segment. During the fourth...

  • Page 82
    ... the assets of the alliance, including domestic merchant contracts, an equity investment in Merchant Link, a full-service independent sales organization ("ISO") and Agent Bank unit, and a portion of the employees. The new domestic owned and managed business is being operated as part of FDC's Retail...

  • Page 83
    ... FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2008 Dispositions In July 2008, the Company sold its subsidiary Active Business Services Ltd. which was reported as part of the International segment. In July 2008, the Company sold its interest in Early Warning...

  • Page 84
    ... FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Retail and Alliance Services All Other and Corporate Financial Services International Divested Operations Totals Balance as of January 1, 2009 Goodwill Accumulated impairment losses Acquisitions Dispositions...

  • Page 85
    ... FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2010 2009 Settlement assets: Current settlement assets: Cash and cash equivalents Investment securities Due from card associations and bank partners Due from merchants Due from selling agents...

  • Page 86
    ... Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Gross Unrealized (Loss) excluding OTTI (b) Cost (a) As of December 31, 2010 Gross Unrealized Gain OTTI Recognized in OCI (b)(c) Fair Value (d) Student loan auction rate securities Corporate bonds Other...

  • Page 87
    ... matters. Gains and losses are recorded in the "Product sales and other" or "Other income (expense)" line items of the Consolidated Statements of Operations. In 2009, in accordance with new accounting guidance, the Company recognized a cumulative effect adjustment increasing the opening balance...

  • Page 88
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2010, the Company uses derivative instruments to mitigate (i) cash flow risks with respect to changes in interest rates (forecasted interest payments on variable rate debt), (ii) ...

  • Page 89
    ... of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) the duration of the variable LIBOR interest rate payments it was hedging which was inconsistent with the original hedge strategy documented in the accounting designation. Accordingly, the Company had to...

  • Page 90
    ... FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Fair Value of Derivative Instruments in the Consolidated Balance Sheets As of December 31, 2010 (in millions) Assets(a) Liabilities(b) Derivatives designated as hedging instruments Interest rate contracts Foreign...

  • Page 91
    ...FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Effect of Derivative Instruments on the Consolidated Statements of Operations Year ended December 31, 2010 Interest Rate Contracts Foreign Exchange Contracts Interest Rate Contracts 2009 Foreign Exchange Contracts...

  • Page 92
    ... of long-term borrowings was primarily based on market trading prices. For additional information regarding the Company's borrowings, refer to Note 8 of these Consolidated Financial Statements. Concentration of credit risk The Company's investment securities are diversified across multiple issuers...

  • Page 93
    ... point change in liquidity risk premium, as well as slight changes in other factors, would impact the value of the SLARS by approximately $7 million. For additional information regarding the sale, settlements and impairments of the SLARS, refer to Note 5 of these Consolidated Financial Statements...

  • Page 94
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Settlement assets - other available-for-sale securities. Prices for the corporate bonds are not quoted on active exchanges but are priced through an independent third-party pricing service based on ...

  • Page 95
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 8: Borrowings Borrowings consisted of the following as of December 31, 2010 and 2009 (in millions): As of December 31, 2010 2009 Short-term borrowings Current portion of long-term borrowings...

  • Page 96
    ... interest rates or otherwise modify the terms of their loans or revolving commitments in connection with such an extension. The amendment became effective, including the changes to the credit agreement described above, on August 20, 2010 following FDC's issuance of $510.0 million in new notes...

  • Page 97
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Debt Exchange On December 17, 2010, FDC completed its private exchange offers ("Debt Exchange"), in which FDC offered to exchange its 9.875% Senior notes due 2015 and its 10.550% Senior PIK notes due...

  • Page 98
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) 8.875% Senior Secured Notes On August 20, 2010, FDC issued $510.0 million of 8.875% senior secured notes due August 15, 2020. Interest on the notes is payable on February 15 and August 15 ...

  • Page 99
    ... FDC's or its parent company's capital stock; make investments, loans or advances; prepay certain indebtedness; make certain acquisitions; engage in certain transactions with affiliates; amend material agreements governing certain indebtedness and change its lines of business. The senior secured...

  • Page 100
    ... Financial Information Supplemental Statements of Operations Information $ 30.2 28.1 11,964.1 1,476.3 8,940.1 The following table details the components of "Other income (expense)" on the Consolidated Statements of Operations (in millions): Year ended December 31, 2010 2009 2008 Investment...

  • Page 101
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, (in millions) 2010 2009 Property and equipment: Land Buildings Leasehold improvements Equipment and furniture Equipment under capital lease Less accumulated depreciation $ $ ...

  • Page 102
    ... of the alliance, including domestic merchant contracts, an equity investment in Merchant Link, a full-service ISO and Agent Bank unit, and a portion of the employees. The receipt of the Company's proportionate share of CPS was accounted for as a business combination and was a non-cash transaction...

  • Page 103
    ..., Inc. under the sublease. On June 1, 2008, FDMS terminated the sublease agreement and paid a fee to The Labry Companies of approximately $220,000 pursuant to the sublease agreement. First Data Merchant Services Corporation entered into a direct lease agreement with the landlord for additional space...

  • Page 104
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) by Mr. Labry and other company employees. On March 17, 2008, a third-party leasing company acquired the aircraft from Plane Fish, LLC for $8.5 million and the Company now leases the plane from the ...

  • Page 105
    ... of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) credit reporting or collection in connection with its check verification guarantee, and collection activities; and (3) other matters which may include issues such as employment. The Company's estimates of...

  • Page 106
    ... fair market value at the time of repurchase. The repurchase price for the options is their intrinsic value at the time of repurchase. Total stock-based compensation expense recognized in the "Selling, general and administrative" line item of the Consolidated Statements of Operations resulting from...

  • Page 107
    ...recognized upon a qualified public offering or certain termination events. During 2010, 2009, and 2008, Holdings paid $21.9 million, $4.5 million, and $3.8 million, respectively, to repurchase shares from employees that terminated employment with the Company. The fair value of Holdings stock options...

  • Page 108
    ... historical exercise and termination behavior of employees that participated in the Company's previous equity plans, the vesting conditions of options granted under the stock plan, as well as the impact of limited liquidity for common stock of a non-publicly traded company. Fair value of stock-The...

  • Page 109
    ... 31, 2010 2009 2008 $ 35.7 $ 38.3 $ 35.4 Defined Benefit Plans The Company has a defined benefit pension plan which is frozen and covers certain full-time employees in the U.S. The Company also has separate plans covering certain employees located in the United Kingdom, Greece, Austria...

  • Page 110
    ... of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2010 2009 Change in plan assets Fair value of plan assets at the beginning of period Actual return on plan assets Company contributions Plan participant contributions Benefits paid...

  • Page 111
    ...Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2010 2009 2008 Discount rate Rate of compensation increase* * 5.40% 4.00% 5.62% 4.00% 6.52% 3.76% 2010 and 2009 applies to a plan in Greece. 2008 applies to plans in the United Kingdom...

  • Page 112
    ... FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Fair Value Measurement Using Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) As of December 31, 2010 Total...

  • Page 113
    ....6 22.6 23.9 25.5 28.0 171.9 The Company does not offer post-retirement health care or other insurance benefits for retired employees. Note 15: Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated...

  • Page 114
    ... the Company's operating segment results for the years ended December 31, 2010, 2009 and 2008 (in millions): Retail and Alliance Services Financial Services All Other and Corporate Year ended December 31, 2010 International Totals Revenues: Transaction and processing service fees Product sales...

  • Page 115
    ... of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Retail and Alliance Services Year ended December 31, 2009 Financial Services International All Other and Corporate Totals Revenues: Transaction and processing service fees Product sales and other...

  • Page 116
    ... check and money order revenues ISO commission expense Reimbursable debit network fees, postage and other Consolidated revenues Segment EBITDA: Total reported segments All Other and Corporate Adjusted EBITDA Adjustments to reconcile to "Net loss attributable to First Data Corporation": Divested...

  • Page 117
    ...: Total reported segments All Other and Corporate Adjustments to reconcile to consolidated depreciation and amortization: Divested businesses Adjustments for non-wholly owned entities Amortization of initial payments for new contracts Total consolidated depreciation and amortization Information...

  • Page 118
    ... FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2009 by Quarter: First Second Third Fourth Revenues Expenses Interest income Interest expense Other income (expense) Loss before income taxes and equity earnings in affiliates Income tax benefit Equity earnings...

  • Page 119
    ... of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company's income tax (benefits) provisions consisted of the following components: Year ended December 31, (in millions) 2010 2009 2008 Current Federal State and local Foreign Deferred Federal State...

  • Page 120
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company's deferred tax assets and liabilities were included in the Consolidated Balance Sheets as follows (in millions): As of December 31, 2010 2009 Current deferred tax assets Long-term ...

  • Page 121
    ...part of the FDC consolidated, unitary and combined income tax returns through the spin-off date of September 29, 2006. Under the Tax Allocation Agreement executed at the time of the spin-off of Western Union, Western Union is responsible for and must indemnify the Company against all taxes, interest...

  • Page 122
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Union were to agree to or be finally determined to owe any amounts for such periods but were to default in its indemnification obligation under the Tax Allocation Agreement, the Company as parent of ...

  • Page 123
    ...of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Year ended December 31, 2010 FDC Parent Company Guarantor Subsidiaries NonGuarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees Product sales and...

  • Page 124
    ...of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Year ended December 31, 2009 FDC Parent Company Guarantor Subsidiaries NonGuarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees Product sales and...

  • Page 125
    ...of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Year ended December 31, 2008 FDC Parent Company Guarantor Subsidiaries NonGuarantor Subsidiaries Consolidation Adjustments Consolidated Revenues: Transaction and processing service fees Product sales and...

  • Page 126
    ... notes Other long-term liabilities Total liabilities Redeemable equity interests Redeemable noncontrolling interests First Data Corporation stockholder's equity Noncontrolling interests Equity of consolidated alliance Total equity Total liabilities and equity $ 0.4 $ 31.7 - 301.1 333.2 22,376...

  • Page 127
    ... notes Other long-term liabilities Total liabilities Redeemable equity interests Redeemable noncontrolling interests First Data Corporation stockholder's equity Noncontrolling interests Equity of consolidated alliance Total equity Total liabilities and equity (1) $ 0.2 $ 142.2 - 384.8 527.2 22,152...

  • Page 128
    ... businesses previously acquired Proceeds from dispositions, net of expenses paid and cash disposed Proceeds from sale of property and equipment Additions to property and equipment Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development...

  • Page 129
    ... businesses previously acquired Proceeds from dispositions, net of expenses paid and cash disposed Proceeds from sale of property and equipment Additions to property and equipment Payments to secure customer service contracts, including outlays for conversion, and capitalized systems development...

  • Page 130
    Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Year ended December 31, 2008 FDC Parent Company Guarantor Subsidiaries NonGuarantor Subsidiaries Consolidation Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ Adjustments ...

  • Page 131
    ... of Contents FIRST DATA CORPORATION SCHEDULE II-Valuation and Qualifying Accounts (dollars, in millions) Additions Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Balance at End of Period Description Deductions Year ended December 31, 2010 deducted from...

  • Page 132
    ... 31, 2010, to ensure that information the Company is required to disclose in reports that are filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Management's Report on Internal Control...

  • Page 133
    ...in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of First Data Corporation as of December 31, 2010 and 2009, and the related consolidated statements of operations, cash flows, equity and comprehensive income (loss) for...

  • Page 134
    ...Form 10K. On March 8, 2011, the Governance, Compensation and Nominations Committee of the Board of Directors of First Data Holdings Inc., the parent corporation of the Company, approved equity grants and compensation for the Named Executive Officers of the Company under the 2007 Stock Incentive Plan...

  • Page 135
    ... solutions, from October 2002 through December 2003. Mr. Judge is a director of PMCSierra, Inc. and serves as a member of the Upstate New York Regional Advisory Board of the Federal Reserve Bank of New York. Peter W. Boucher joined the Company as Executive Vice President of Human Resources...

  • Page 136
    ..., prior to that, as chief executive of the Communications and High Technology Operating Group, and as Chairman of the board of directors of Accenture Ltd. from 2001 until 2006. Mr. Forehand is a member of the Portfolio Management Committee for Kohlberg Kravis Roberts & Co. ("KKR") and has also been...

  • Page 137
    ...to its Chief Executive Officer, Chief Financial Officer, and Principal Accounting Officer. The Code is available on the Company's web site at www.firstdata.com under "About First Data", "Investor Relations", "Corporate Governance". Audit Committee Financial Expert and Recommendation of Directors The...

  • Page 138
    ... of payments between FDC and KKR affiliates is included in Item 13. The equity compensation provided to the senior executives of FDC is approved by the Governance, Compensation and Nominations Committee (the "Holdings Committee") of First Data Holdings Inc. ("Holdings"), the parent corporation of...

  • Page 139
    ...-term value, and ensures alignment between long-term shareholder and executive interests. Facilitate Equity Ownership The 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates (the "2007 Equity Plan") facilitates significant equity ownership by executive officers...

  • Page 140
    ... to public company annual equity grant values and total direct compensation levels are not easily made. ELEMENTS OF COMPENSATION Compensation for FDC's executive officers is delivered through Base Salary Base salary forms the foundation of FDC's compensation program. Base salaries for executives...

  • Page 141
    ... pay increases for 2011. Current base salary levels for named executive officers are as follows: Base Salary as of December 31, 2010 Base Salary as of March 1, 2011 Jonathan J. Judge Ray E. Winborne Edward A. Labry III David R. Money Peter W. Boucher Annual Cash Incentives Plan Design and Mechanics...

  • Page 142
    ... and motivation within the executive team. 2010 Equity Awards During 2010, the Committees took steps to bolster the retention and motivational value of FDC's executive equity compensation plan. These actions were pursued to address: (1) a potentially extended time horizon until liquidity for...

  • Page 143
    ...-based performance vesting schedule described above. 2011 Equity Awards In 2011, the Holdings Committee expects to implement an annual equity grant program for FDC executives in order to maintain an overall market competitive total compensation structure and promote long-term retention of key talent...

  • Page 144
    ...an annual basis. Retirement Plans In 2010, all employees in the U.S., including executive officers, were eligible to participate in the First Data Corporation Incentive Savings Plan ("ISP"). The ISP is a qualified 401(k) plan designed to comply with Internal Revenue Service ("IRS") safe harbor rules...

  • Page 145
    ... benefit plans and programs generally available to FDC's employees, including participation in FDC's matching gift program and coverage under FDC's medical, dental, life and disability insurance plans. EMPLOYMENT AGREEMENTS WITH FDC EXECUTIVES Letter Agreement with Mr. Judge First Data Corporation...

  • Page 146
    ... as the Company's common stock is not registered or publicly traded. The Committee has not considered Internal Revenue Code Section 162(m) deductibility limitations in the planning of 2011 compensation since they do not apply. DIRECTOR COMPENSATION Change in Pension Value and Non-Qualified Deferred...

  • Page 147
    ... education programs. Indemnification The Company's Certificate of Incorporation provides that the Company shall indemnify and hold harmless each director to the fullest extent permitted or authorized by the General Corporation Law of the State of Delaware. REPORT OF THE GOVERNANCE, COMPENSATION AND...

  • Page 148
    ... in the Defined Benefit Section of the First Data Resources Limited Pension Scheme in the United Kingdom. However, there was no increase in the actuarial value of his benefits during 2010. During 2010, no executive officer participated in a Non Qualified Deferred Compensation plan. Full explanation...

  • Page 149
    ...First Data Corporation Severance/Change in Control Policy. Mr. Capellas received $900,000 for post-employment consulting services. Mr. Yates received $24,124 as a housing allowance and $21,684 in tax equalization payments. Messrs. Judge, Capellas, Forehand and Labry also received value from personal...

  • Page 150
    ... in 2010 vest only upon the lapse of transfer restrictions under the 2007 Equity Plan. Grants reflected in this column are grants of Stock Options made under the 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates. For Messrs. Judge, Winborne, Labry, Money and...

  • Page 151
    ... Contents Equity Awards All stock options granted in 2010 were granted under the 2007 Incentive Plan for Key Employees of First Data Corporation and its Affiliates ("2007 Equity Plan"). The grant price was determined at the time of grant by the Board, pursuant to their authority under the plan, to...

  • Page 152
    ... adjusted accordingly to provide equivalent value. All unvested Western Union Equity Awards became fully vested on September 24, 2007. All Holdings equity awards were granted under the 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates. Option vesting terms are...

  • Page 153
    .... Market value of the shares is based on the per share price as of December 31, 2010, as determined by the Board of Directors for purposes of the 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates. OPTION EXERCISES AND STOCK VESTED Option Awards Number of Shares...

  • Page 154
    ... to promote uniform treatment of senior executives who are involuntarily terminated other than for cause or who voluntarily leave the Company for Good Reason as defined under the 2007 Incentive Plan for Key Employees of First Data Corporation and its Affiliates. Under the Policy, no benefits are...

  • Page 155
    ...Equity Compensation Plan Information The Company does not have any compensation plans under which the Company's common stock may be issued. First Data Holdings Inc., the Company's parent company, has adopted the 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates...

  • Page 156
    ... and Olson is a member of the Company's board of directors and serves as an executive of Kohlberg Kravis Roberts & Co. L.P. and/or one or more of its affiliates. Each of Messrs. Kravis, Nuttall and Olson disclaim beneficial ownership of the shares held by New Omaha Holdings L.P. No shares were...

  • Page 157
    ... of the New York Stock Exchange. Mr. Judge is not independent as he is employed by the Company and Messrs. Fisher, Forehand, Kravis, Nuttall, and Olson are not independent due to their affiliation with KKR. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The Company retained Ernst & Young LLP to...

  • Page 158
    ...First Data Corporation and The Western Union Company (incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K filed on October 2, 2006, Commission File No. 1-11073). Agreement and Plan of Merger, dated as of April 1, 2007, among New Omaha Holdings L.P., Omaha Acquisition...

  • Page 159
    ... of the Company's Annual Report on Form 10-K filed on March 13, 2008, Commission File No. 1-11073). Guarantee Agreement, dated September 24, 2007, among First Data Corporation, the subsidiaries of First Data Corporation identified therein and Credit Suisse, Cayman Islands Branch, as Collateral Agent...

  • Page 160
    ... 28, 2010).* 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates (incorporated by reference to Exhibit 10.5 of the Company's Quarterly Report on Form 10-Q filed on November 14, 2007, Commission File No. 1-11073). * Form of Stock Option Agreement for Executive...

  • Page 161
    ... of the Company's Current Report on Form 8-K filed on June 23, 2010).* Description of Named Executive Officer Salary and Bonus Arrangements for 2011. * Description of First Data Holdings Inc. Compensation of Directors. * First Data Holdings Inc. 2008 Non-Employee Director Deferred Compensation Plan...

  • Page 162
    ...-Oxley Act of 2002. Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith Management contracts and compensatory plans and arrangements required to be filed as exhibits pursuant to Item 15(b) of this report. 161

  • Page 163
    ... on its behalf by the undersigned, thereunto duly authorized. FIRST DATA CORPORATION (Registrant) By: / S/ JONATHAN J. JUDGE Jonathan J. Judge Chief Executive Officer Date: March 10, 2011 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the...

  • Page 164
    ...First Data Corporation and The Western Union Company (incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K filed on October 2, 2006, Commission File No. 1-11073). Agreement and Plan of Merger, dated as of April 1, 2007, among New Omaha Holdings L.P., Omaha Acquisition...

  • Page 165
    ... of the Company's Annual Report on Form 10-K filed on March 13, 2008, Commission File No. 1-11073). Guarantee Agreement, dated September 24, 2007, among First Data Corporation, the subsidiaries of First Data Corporation identified therein and Credit Suisse, Cayman Islands Branch, as Collateral Agent...

  • Page 166
    ... 28, 2010).* 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates (incorporated by reference to Exhibit 10.5 of the Company's Quarterly Report on Form 10-Q filed on November 14, 2007, Commission File No. 1-11073). * Form of Stock Option Agreement for Executive...

  • Page 167
    ... of the Company's Current Report on Form 8-K filed on June 23, 2010).* Description of Named Executive Officer Salary and Bonus Arrangements for 2011. * Description of First Data Holdings Inc. Compensation of Directors. * First Data Holdings Inc. 2008 Non-Employee Director Deferred Compensation Plan...

  • Page 168
    ... 8, 2011, the Governance, Compensation and Nominations Committee of the Board of Directors of First Data Holdings Inc. ("Holdings"), the parent corporation of the Company, approved the following equity grants for the Company's named executive officers identified below. 2011 Base Salary 2011 Bonus...

  • Page 169
    ... of the Company's parent company, First Data Holdings Inc. ("Holdings"). Except with respect to the Chairperson, the Governance, Compensation and Nominations Committee (the "Committee") of the Board of Directors of Holdings has approved compensation for each non-employee directors of Holdings of $40...

  • Page 170
    ...Transportation Services, Inc. Electronic Banking Solutions Limited Encorus UK Limited EPSF Corporation European Merchant Services BV Europrocessing Slovakia AS FDC Australia (Acquisitions) Pty Limited FDC International Inc. FD do Brasil Processamento de Dados Ltda. FDFS Holdings, LLC FDGS Group, LLC...

  • Page 171
    ...SARL First Data International Luxembourg VII SARL First Data Japan Co., Ltd. First Data Korea Limited First Data Latin America Inc. First Data Latvia First Data Lietuva First Data Loan Company, Canada First Data (Mauritius) Holding Company First Data Merchant Services Corporation First Data Merchant...

  • Page 172
    ...GmbH First Data Mobile Solutions Limited First Data (Norway) Holding AS First Data Operations (Austria) GmbH First Data Operations (Luxembourg) SARL First Data Orca JV Holdco Pte Limited First Data Pakistan (Private) Limited First Data Payment Services, LLC First Data Pittsburgh Alliance Partner Inc...

  • Page 173
    ...Ltd. Merchant Solutions Sdn Bhd Money Network Financial, LLC National Payment Systems Inc. New Payment Services, Inc. NPSF Corporation Omnipay Limited PayCan Holdings, Inc. PayCargo, LLC PayPoint Electronic Payment Systems, LLC PaySys de Costa Rica, S.A. PaySys Europe, B.V. PaySys International, Inc...

  • Page 174
    ... Card Company Limited TRS Recovery Services, Inc. Transaction Solutions Holdings, Inc. Transaction Solutions, LLC Trionis SCRL Unibex India Private Limited Unified Merchant Services Unified Partner, Inc. USPI - Canada Inc. ValueLink, LLC Zolter Services Limited United Kingdom Colorado Delaware...

  • Page 175
    Exhibit 31.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER I, Jonathan J. Judge, Chief Executive Officer of First Data Corporation, certify that: 1. I have reviewed this Annual Report on Form 10-K of First Data Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a ...

  • Page 176
    Exhibit 31.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER I, Ray E. Winborne, Chief Financial Officer of First Data Corporation, certify that: 1. I have reviewed this Annual Report on Form 10-K of First Data Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a ...

  • Page 177
    ...CHIEF EXECUTIVE OFFICER The certification set forth below is being submitted in connection with the Annual Report of First Data Corporation on Form 10-K for the period ended December 31, 2010 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange...

  • Page 178
    ...CHIEF FINANCIAL OFFICER The certification set forth below is being submitted in connection with the Annual Report of First Data Corporation on Form 10-K for the period ended December 31, 2010 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange...