First Data 2011 Annual Report Download

Download and view the complete annual report

Please find the complete 2011 First Data annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 190

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190

FIRST DATA CORP
10-K
Annual report pursuant to section 13 and 15(d)
Filed on 03/05/2012
Filed Period 12/31/2011

Table of contents

  • Page 1
    FIRST DATA CORP 10-K Annual report pursuant to section 13 and 15(d) Filed on 03/05/2012 Filed Period 12/31/2011

  • Page 2
    ... file number 001-11073 FIRST DATA CORPORATION DELAWARE (State of incorporation) 47-0731996 (I.R.S. Employer Identification No.) 5565 GLENRIDGE CONNECTOR, N.E., SUITE 2000, ATLANTA, GEORGIA 30342 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code...

  • Page 3
    ...Accelerated filer o Smaller Reporting Company o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x The aggregate market value of the registrant's voting stock held by non-affiliates is zero. The registrant is privately held. There were...

  • Page 4
    ... segment operations. In the Retail and Alliance Services segment, revenues are derived primarily from providing merchant acquiring and processing services, prepaid services and check verification, settlement and guarantee services. Retail and Alliance Services businesses facilitate the acceptance of...

  • Page 5
    ... to consolidated alliances. In addition, segment revenue excludes debit network fees and other reimbursable items. Retail and Alliance Services provides merchant acquiring and processing services, prepaid services and check verification, guarantee and settlement services to merchants operating in...

  • Page 6
    ...and mid-tier merchants. The Company also provides program management and processing services for association-branded, bank-issued, 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 7
    ... bank consolidation, card association business model expansion, and the expansion of new payment methods and devices. In both the Retail and Alliance Services and Financial Services segments, the card associations and payment networks-Visa, MasterCard and Discover-are increasingly offering products...

  • Page 8
    ... services through the STAR Network which enables PINsecured debit transaction acceptance at approximately 2.1 million ATM and retail locations in the U.S. as of December 31, 2011. Financial services also offers payment management solutions for recurring bill payment and services to improve customer...

  • Page 9
    ... the Retail and Alliance Services and Financial Services segments, the card associations and payment networks-Visa, MasterCard and Discover-are increasingly offering products and services that compete with the Company's products and services. Financial Services seasonality. Debit processing and STAR...

  • Page 10
    ...the U.S. International has operations in 34 countries. For a description of the International segment's merchant acquiring and card issuing businesses refer to the Retail and Alliance Services and Financial Services segment descriptions provided above. International pipeline. During 2011 the Company...

  • Page 11
    ... products and services (including many offered by the Company's customers). Separately, under the DoddFrank Act, debit interchange transaction fees that a card issuer or payment card network receives or charges for an electronic debit transaction will now be regulated by the Federal Reserve Board...

  • Page 12
    ... 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 13
    ...and the use of that information in connection with its check verification and guarantee services. The collection business within TRS Recovery Services, Inc. ("TRS") is subject to the Fair Debt Collection Practices Act and various similar state laws. TRS has licenses in a number of states in order to...

  • Page 14
    ... Access. Money Network, a First Data entity, will be the Provider of Prepaid Access for various open loop prepaid programs for which it is the Program Manager. The Company is also subject to certain economic and trade sanctions programs that are administered by the Treasury Department's Office...

  • Page 15
    ...and competition and wage and 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...

  • Page 16
    ... for working capital, capital 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...

  • Page 17
    ...Company's International and Retail and Alliance Services business. The Company's inability to respond to new competitors and technological advancements could impact all of the Company's businesses. Changes in card association and debit network fees or products could increase costs or otherwise limit...

  • Page 18
    ...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. On June 29, 2011, the Federal Reserve Board announced the final rules governing debit card interchange fees, and routing and exclusivity...

  • Page 19
    ... projected to be realized in connection with the acquisition). In June 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 the...

  • Page 20
    ... Company's Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. Unfavorable resolution of tax contingencies could adversely affect the Company's tax expense. The Company's tax returns and positions are subject to review and audit by federal, state, local and international...

  • Page 21
    ... on the Company. Failure to comply with state and federal antitrust requirements could adversely affect the Company's business. Through the Company's merchant alliances, it holds an ownership interest in several competing merchant acquiring businesses while serving as the electronic processor for...

  • Page 22
    ... 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...

  • Page 23
    ... 24, 2007, the Company was acquired through a merger transaction (the "merger") with an entity controlled by affiliates of Kohlberg Kravis Roberts & Co. The merger resulted in the equity of First Data Corporation becoming privately held. As a result of the merger, amounts below are presented...

  • 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
    ... Overview First Data Corporation ("FDC" or "the Company"), with global headquarters and principal executive offices in Atlanta, Georgia, operates electronic commerce businesses providing services that include merchant transaction processing and acquiring services; credit, retail and debit card...

  • Page 26
    ... cards, debit cards and retail private label cards to consumers and businesses to manage customer accounts. Output services include statement and letter printing, embossing and mailing services. The segment also provides remittance processing services, information services and other payment services...

  • Page 27
    ... service fee revenue is comprised of fees related to merchant acquiring; check processing; credit, retail and debit card processing; output and remittance processing; and payment management services. Revenues are based on a per transaction fee, a percentage of dollar volume processed, accounts...

  • Page 28
    Consolidated results. 2011 Year ended December 31, 2010 2009 Percent Change 2011 vs. 2010 2010 vs. 2009 Revenues: Transaction and processing service fees Product sales and other Reimbursable debit network fees, postage and other Expenses: Cost of services (exclusive of items shown below) Cost of ...

  • Page 29
    ... the 2011 correction of cumulative errors in the amortization of initial payments for new contracts related to purchase accounting associated with the Company's 2007 merger with an affiliate of Kohlberg Kravis and Roberts & Co. ("KKR") which totaled a $10.2 million expense in "Cost of services" (the...

  • Page 30
    ..., general and administrative. Expenses increased in 2011 compared to 2010 due to growth in payments made to independent sales organizations ("ISO's") as a result of the Company increasing its number of ISO partners as well as an increase in ISO transaction volumes, higher incentive compensation...

  • Page 31
    .... Retail and Alliance Services Pretax Benefit (Charge) All Other and International Corporate Year ended December 31, 2009 (in millions) Financial Services Divested Operations Totals Restructuring charges Restructuring accrual reversals Impairments Litigation and regulatory settlements Total...

  • Page 32
    ... Services segment. In the first and second quarters of 2010, the Company released $2.0 million related to these settlements. Interest expense. Interest expense increased in 2011 compared to 2010 due to higher average interest rates resulting primarily from the August 2010 and April 2011 debt...

  • Page 33
    ... contribution of the Company's transportation business to an alliance in exchange for a 30% interest in that alliance. The 2010 gain related most significantly to a contingent payment received in connection with the Company's November 2009 sale of a merchant acquiring business in Canada. The loss in...

  • Page 34
    ...due mostly to the 2011 correction of cumulative depreciation and amortization errors related to purchase accounting associated with the Company's 2007 merger with an affiliate of KKR as well as volume growth associated with the Company's merchant alliances. The error corrections, which totaled a $11...

  • Page 35
    ... 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 36
    ..., new sales and the card association fee increase noted above. Partially offsetting these increases were merchant attrition and price compression. The card association fee increase benefited the acquiring revenue growth rate in 2010 versus 2009 by 1 percentage point. Check processing revenue. Check...

  • Page 37
    ...year related to a large sale to a national retailer associated with an incentive program as well as volume growth from existing clients and new clients. These increases were partially offset by sales of promotional gift cards in 2010 driven by a specific direct marketing campaign. Additionally, 2011...

  • Page 38
    ... 2009 Percent Change 2011 vs. 2010 2010 vs. 2009 Revenues: Transaction and processing service fees Product sales and other Segment revenue Segment EBITDA Segment margin Key indicators: Domestic debit issuer transactions (a) Domestic active card accounts on file (end of period) (b) Bankcard Retail...

  • Page 39
    ... of payment, lost business and the wind down of an existing product. Product sales and other revenue. Product sales and other revenue decreased in 2011 compared to 2010 due most significantly to higher contract termination fees recognized in 2010 as well as a decline in professional services revenue...

  • Page 40
    ... 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. The Company formed a merchant acquiring alliance with ICICI Bank, ICICI Merchant...

  • Page 41
    ... initial payments for new contracts related to purchase accounting associated with the KKR merger and the write-off of capitalized commissions related to terminal leases which, together, adversely impacted International segment EBITDA by $14.3 million and the growth rate for 2011 compared to 2010 by...

  • Page 42
    ... total amount issued relates primarily to a discount of the notes issued for exchanges subsequent to the early tender date. The Company has taken a number of steps to extend its debt maturities and intends to extend additional maturity dates as opportunities allow. In February 2012, FDC announced...

  • Page 43
    ... during 2011, 2010 and 2009, respectively. Excluding interest on lines of credit and capital leases, cash interest payments on long-term debt obligations in 2012 are expected to increase to approximately $1,735 million, due primarily to the debt exchange discussed above resulting in seven months of...

  • Page 44
    ... including the semi-annual payments of interest on FDC's long-term debt discussed above and incentive compensation earned in 2010. The Company's operating cash flows are impacted by fluctuations in working capital. Cash flows from operating activities increased in 2011 compared to 2010 due to the...

  • Page 45
    ... of its merchant alliance partners for referrals from bank branches contributed to the alliance as called for by the agreement that extended the term of the alliance in 2008. In 2009, the Company contributed $28.0 million to the PNC alliance. For 2009, payments related to other businesses previously...

  • Page 46
    .... In addition, the Company paid $34.1 million in debt restructuring fees in each of 2010 and 2009. Payments for capital leases totaled $71.9 million, $76.9 million and $68.2 million for 2011, 2010 and 2009, respectively. As of March 5, 2012, FDC's long-term corporate family rating from Moody's was...

  • Page 47
    ... offers described above. In November 2011, the Company contributed the assets of its transportation business to the alliance in exchange for a 30% interest in the alliance. Refer to Note 18 to the Company's Consolidated Financial Statements in Item 8 of this Form 10-K for additional information...

  • Page 48
    ... Senior Secured Debt to Consolidated EBITDA (both as defined in the agreement) Ratio for any 12 month period (last four fiscal quarters) ending during a period set forth below to be greater than the ratio set forth below opposite such period: Period Ratio October 1, 2011 to September 30, 2012...

  • Page 49
    ...annual sponsorship fees for management, consulting, financial and other advisory services. Debt issuance costs represent non-capitalized costs associated with issuing debt and modifying FDC's debt structure. Reflects cost savings and revenue enhancements projected to be achieved within twelve months...

  • Page 50
    ... to the Company's Consolidated Financial Statements in Item 8 of this Form 10-K. Interest payments for the variable rate debt and the associated interest rate swaps were calculated using interest rates as of December 31, 2011. Represents future payments on existing capital leases, including interest...

  • Page 51
    ... support, technical consulting services and telecommunications services. Other includes obligations related to materials, data, non-technical contract services, facility security, investor management fees, maintenance and marketing promotions. As of December 31, 2011, the Company had approximately...

  • Page 52
    ...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: 2011 Year ended December 31, 2010 2009 FDC and consolidated and unconsolidated alliances credit losses...

  • Page 53
    ... the TeleCheck Services, Inc. ("TeleCheck") business involves the guarantee of checks received by merchants. If the check is returned, TeleCheck is required to purchase the check from the merchant at its face value and pursue collection from the check writer. A provision for estimated check returns...

  • Page 54
    ...third-party pricing service based on quotations from market-makers in the specific instruments or, where appropriate, other market inputs including interest rates, benchmark yields, reported trades, issuer spreads, two sided markets, benchmark securities, bids, offers, and reference data. In certain...

  • Page 55
    ... conversion costs only occurs when management is satisfied that such costs are recoverable through future operations, contractual minimums and/or penalties in case of early termination. The Company's accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of...

  • Page 56
    ... related to customer contracts, software, real property, other intangibles, and trade name impairment charges. The Company followed a discounted cash flow approach in estimating the fair value of the reporting units, intangible assets or other affected asset groups discussed above. Discount rates...

  • Page 57
    ... 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 58
    ... customers of the Company; achieving planned revenue growth throughout the Company, including in the merchant alliance program which involves several alliances not under the sole control of the Company and each of which acts independently of the others, and successful management of pricing...

  • Page 59
    ... could impact the Company's or its major customer's operating facilities, communication systems and technology or that has a material negative impact on current economic conditions or levels of consumer spending; and successfully managing the potential both for patent protection and patent liability...

  • Page 60
    ...the Retail 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...

  • Page 61
    ... 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, 2011, 2010 and 2009 Consolidated...

  • Page 62
    ... the standards of the Public Company Accounting Oversight Board (United States), First Data Corporation's internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of...

  • Page 63
    FIRST DATA CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions) 2011 Year ended December 31, 2010 2009 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 64
    FIRST DATA CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except common stock share amounts) As of December 31, 2011 2010 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $18.1 (2011) and $20.3 (2010) Settlement assets Other ...

  • Page 65
    ... related 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 Payments to secure customer service contracts, including outlays for conversion, and capitalized...

  • Page 66
    ... 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 $ Total 2,402.3 - 20.4 3,431.9 (10.0) Comprehensive Income (Loss) $ Noncontrolling...

  • Page 67
    ... net loss presented in the Consolidated Statements of Equity for the twelve months ended December 31, 2011, 2010 and 2009 is $32.0 million, $35.0 million and $3.7 million, respectively, greater than the amount presented on the Consolidated Statements of Operations due to the net income attributable...

  • Page 68
    FIRST DATA CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) 2011 Year ended December 31, 2010 2009 Net loss (a) Other comprehensive income (loss), net of tax: Unrealized gains on securities Unrealized gains on hedging activities Pension liability adjustments Foreign ...

  • Page 69
    ... 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 acquiring; credit, retail and debit card...

  • Page 70
    ...the guarantee. Check verification fees generally are a fixed amount per transaction while check guarantee fees generally are a percentage of the check amount. The purchase and sale of merchant contracts is an ordinary element of the Company's Retail and Alliance Services and International businesses...

  • Page 71
    ... not specifically described above are generally transaction based fees that are recognized at the time the transactions are processed or programming services that are recorded as work is performed. Stock-Based Compensation Stock-based compensation to employees is measured at the grant date fair...

  • Page 72
    ... in merchant fraud. Merchant credit losses are included in "Cost of services" in the Company's Consolidated Statements of Operations. The amount of the reserves attributable to entities consolidated by the Company was $31.6 million and $39.9 million as of December 31, 2011 and 2010, respectively...

  • Page 73
    ... 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 amount of capitalized costs for a given contract to the lesser...

  • Page 74
    ... software, trademarks and non-compete agreements acquired in business combinations. Other intangibles, except for the First Data trade name discussed below, are amortized on a straight-line basis over the length of the contract or benefit period, which generally ranges from three to 25 years...

  • Page 75
    ... 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 value. For debt securities, when the Company intends...

  • Page 76
    ... of management and other positions, approximately 1,700 employees, as part of the Company's cost saving initiatives as well as domestic site consolidations and the elimination of certain information technology positions. The Company incurred additional charges through 2010 related to these plans...

  • Page 77
    ... Company's card-issuing business in the United Kingdom. The impairment occurred because of negative cash flow in the existing business and lower projections of financial results compared to those used in prior periods. The remaining $13 million of impairment charges related to a trade name in Canada...

  • Page 78
    ... Consolidated Financial Statements, and accordingly, the transportation business was deconsolidated. 2010 Disposition During 2010, the Company received a contingent payment in connection with the November 2009 sale of a merchant acquiring business. 2009 Acquisitions On June 26, 2009, Bank of America...

  • Page 79
    ... million. 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...

  • Page 80
    ... including settlement of payment transactions. Settlement assets are generated principally from merchant services transactions. Certain merchant settlement assets that relate to settlement obligations accrued by the Company are held by partner banks to which the Company does not have legal ownership...

  • Page 81
    ... guaranteed securities as of December 31, 2011 and of SLARS and corporate bonds as of December 31, 2010. Realized gains and losses and OTTI on investments classified as settlement assets are recorded in the "Product sales and other" line item of the Consolidated Statements of Operations. The Company...

  • Page 82
    ...December 31, 2011 Student loan auction rate securities Corporate bonds State and municipal obligations U.S. Government guaranteed securities Other Total available-for-sale securities Cost method investments Totals As of December 31, 2010 Student loan auction rate securities Corporate bonds State and...

  • Page 83
    ... rate debt that the Company held prior to the 2011 debt modifications and amendments discussed in Note 8 of these Consolidated Financial Statements and (iii) to protect the net investment in certain foreign subsidiaries and/or affiliates with respect to changes in foreign currency exchange rates...

  • Page 84
    ... to mitigate exposure to fluctuations in interest rates and will expire in September 2016. The Company did not designate the new swaps as hedges for accounting purposes. During the first quarter of 2011, the Company held a foreign exchange rate collar with a notional value of $1.9 million that...

  • Page 85
    ... payments on the corresponding portion of the Company's variable rate debt and protecting a portion of the Company's net investment in its European operations from changes in foreign currency exchange rates. For information on the location and amounts of derivative fair values in the Consolidated...

  • Page 86
    ... Fair Value of Derivative Instruments in the Consolidated Balance Sheets (in millions) As of December 31, 2011 Assets (a) Liabilities (b) Derivatives designated as hedging instruments Interest rate contracts Foreign exchange contracts Total derivatives designated as hedging instruments Derivatives...

  • Page 87
    ... Instruments on the Consolidated Statements of Operations 2011 (in millions, pretax) Interest Rate Contracts Foreign Exchange Contracts Year ended December 31, 2010 Interest Foreign Rate Exchange Contracts Contracts 2009 Interest Rate Contracts Foreign Exchange Contracts Derivatives in cash...

  • Page 88
    ...-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 within...

  • Page 89
    ... Assets: Settlement assets: Student loan auction rate securities Corporate bonds State and municipal obligations U.S. Government guaranteed agency securities Preferred stock Total settlement assets Other long-term assets: Available-for-sale securities Interest rate swap contracts Foreign currency...

  • Page 90
    ... information regarding sales, settlements and impairments of the SLARS, refer to Note 5 of these Consolidated Financial Statements. Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Student loan auction rate securities (in millions) Beginning balance as of January 1, 2010...

  • Page 91
    ..., as a result of changes in management's expectations with respect to projected cash flows, ongoing negative cash flows for certain assets or asset groups or due to the discontinued use of certain assets. The impairments related to property and equipment, customer relationships, software, other...

  • Page 92
    ...: 5.625% Notes due 2011 Capital lease obligations Total current portion of long-term borrowings Long-term borrowings (a): Senior secured term loan facility due 2014, net of unamortized discount of $9.8 and $24.3 Senior secured term loan facility due 2018, net of unamortized discount of $27.2 7.375...

  • Page 93
    ... variable rate senior secured term loan. Refer to Note 6 of these Consolidated Financial Statements for a discussion of the Company's derivatives. The original terms of FDC's senior secured term loan facility required the Company to pay equal quarterly installments in aggregate annual amounts...

  • Page 94
    ...term loans. As of March 2, 2012, FDC has obtained amendment approvals from lenders holding more than 50.1% of the commitments and loans under the senior secured credit facilities. 7.375% Senior Secured First Lien Notes On April 13, 2011, in accordance with the terms of FDC's amended credit agreement...

  • Page 95
    ... credit facilities. 8.875% Senior Secured First Lien Notes FDC's 8.875% senior secured notes due August 15, 2020 require the payment of interest semi-annually on February 15 and August 15 of each year. FDC may redeem the notes, in whole or in part, at any time prior to August 15, 2015 at a price...

  • Page 96
    ... with the debt exchange. The fees were recorded as a discount on the new notes and are being amortized to interest expense over the remaining term of the loans. FDC's 9.875% senior notes due September 24, 2015 are publicly tradable and require the payment of interest semi-annually on March...

  • Page 97
    ... 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 facilities also...

  • Page 98
    Note 9: Supplemental Financial Information Supplemental Statements of Operations Information The following table details the components of "Other income (expense)" on the Consolidated Statements of Operations: (in millions) 2011 Year ended December 31, 2010 2009 Investment gains Derivative ...

  • Page 99
    ..., 2011 2010 Property and equipment: Land Buildings Leasehold improvements Equipment and furniture Equipment under capital lease Less accumulated depreciation $ $ Other long-term assets: Accounts receivable Leasing Receivables, net of allowance for doubtful accounts of $10.3 (2011) and $8.8 (2010...

  • Page 100
    ... of these Consolidated Financial Statements for information concerning the Company's stock-based compensation plans. Note 10: Related Party Transactions Merchant Alliances A substantial portion of the Company's business within the Retail and Alliance Services and International segments is conducted...

  • Page 101
    ..., respectively, of management fees. Certain members of the Company's Board of Directors are affiliated with KKR. Transactions and Balances Involving Company Affiliates In August 2010, the Company paid KKR Capital Markets LLC ("KCM"), an affiliate of KKR, $5 million for services rendered in arranging...

  • Page 102
    ...; (2) Merchant customer matters often associated with alleged processing errors or disclosure issues and claims that one of the subsidiaries of the Company has violated a federal or state requirement regarding credit reporting or collection in connection with its check verification guarantee, and...

  • Page 103
    ... recorded in the Statement of Operations. Other First Data Corporation Stockholder's Equity Transactions The following table presents the effects of changes in FDC's ownership interest in its BAMS alliance on FDC's equity: (in millions) 2011 Year ended December 31, 2010 2009 Net loss attributable...

  • Page 104
    ...December 31, 2011 Note 13: Stock Compensation Plans $ $ 226.9 (27.6) 35.0 (213.3) 7.0 0.1 28.1 (31.2) 32.0 38.6 (0.1) 67.4 The Company's parent, Holdings, has a stock incentive plan for certain management employees of FDC and its affiliates ("stock plan"). The stock plan provides the opportunity...

  • Page 105
    ... certain employment termination events or the latter of September 24, 2012 or a qualified public offering. In conjunction with the above noted modifications, stock plan participants also received a cash bonus payment in the second quarter of 2010 totaling $7.8 million. As of December 31, 2011 there...

  • Page 106
    ... stock awards were granted under the stock plan during 2011, 2010 and 2009. Grants were made as incentive awards. The restrictions on the awards granted subsequent to the modifications described above will lapse upon a qualified public offering, a change in control or certain employment termination...

  • Page 107
    ...-time employees in the U.S. The Company also has separate plans covering certain employees located primarily in the United Kingdom, Greece, Austria and Germany. As of June 30, 2009, the Company froze, with respect to future accruals, benefit increases relating to length of service, compensation and...

  • Page 108
    ...the plans: (in millions) 2011 Year ended December 31, 2010 2009 Service costs Interest costs Expected return on plan assets Amortization Net periodic benefit expense $ $ 6.1 39.8 (46.5) 1.3 0.7 $ $ 3.1 40.0 (40.4) 2.2 4.9 $ $ 6.6 37.6 (35.3) 1.3 10.2 Assumptions. The weighted-average rate...

  • Page 109
    ... follows: As of December 31, 2010 2011 2009 Discount rate Expected long-term return on plan assets Rate of compensation increase (a) (a) 5.21% 6.83% 4.24% 5.55% 6.86% 4.00% 6.19% 6.95% 3.85% 2011 and 2009 apply to plans in Greece and United Kingdom and 2010 applies to Greece. Assumptions for...

  • Page 110
    ...millions) Quoted prices in active markets for identical assets (Level 1) Total Investments: Cash and cash equivalents Registered investment companies: Cash management fund Equity funds Private investment funds-redeemable (a) Private investment funds-nonredeemable Insurance annuity contracts Total...

  • Page 111
    ... resources and in assessing performance. First Data's CODM is its Chief Executive Officer. The Company is organized in three segments: Retail and Alliance Services, Financial Services and International. The business segment measurements provided to and evaluated by the chief operating decision...

  • Page 112
    ... 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 113
    ..., 2011, 2010 and 2009: Year ended December 31, 2011 (in millions) Retail and Alliance Services Financial Services International All Other and Corporate Totals Revenues: Transaction and processing service fees Product sales and other Equity earnings in affiliates (a) Total segment reporting revenues...

  • Page 114
    ... (in millions) Retail and Alliance Services Financial Services International All Other and Corporate Totals Revenues: Transaction and processing service fees Product sales and other Equity earnings in affiliates (a) Total segment reporting revenues Internal revenue External revenue Depreciation and...

  • Page 115
    ... Income tax benefit Stock based compensation Official check and money order EBITDA (b) Costs of alliance conversions and data center, technology and savings initiatives Stock plan modification expenses KKR related items Debt issuance costs Eliminations Net loss attributable to First Data Corporation...

  • Page 116
    ...) As of December 31, 2011 2010 Assets: Retail and Alliance Services Financial Services International All Other and Corporate Consolidated $ $ 27,882.2 4,647.8 5,332.9 2,413.4 40,276.3 $ $ 24,673.8 4,982.2 5,186.7 2,701.4 37,544.1 A reconciliation of reportable segment depreciation and...

  • Page 117
    ... the Consolidated Statement of Operations to correct cumulative depreciation and amortization errors related to purchase accounting associated with the Company's 2007 merger with an affiliate of Kohlberg Kravis Roberts & Co. The corrections impacted amortization of initial payments for new contracts...

  • Page 118
    ... on the contribution of the company's transportation business in exchange for a 30% interest in an alliance. The Company's income tax (benefits) provisions consisted of the following components: (in millions) 2011 Year ended December 31, 2010 2009 Current Federal State and local Foreign Deferred...

  • Page 119
    ... items: (in millions) As of December 31, 2011 2010 Deferred tax assets related to: Reserves and other accrued expenses Pension obligations Employee related liabilities Deferred revenues Unrealized securities and hedging (gain)/loss Net operating losses and tax credit carryforwards U.S. foreign tax...

  • Page 120
    ... the effective tax rate. During the year ended December 31, 2011, the Company's liability for unrecognized tax benefits was reduced by $25 million after negotiating settlements with the Internal Revenue Service ("IRS") regarding specific contested issues in the 2003 through 2006 federal tax years...

  • Page 121
    ...to pay the amounts to the relevant tax authority, resulting in a potentially material adverse effect on the Company's financial position and results of operations. As of December 31, 2011, the Company had approximately $18 million of uncertain income tax liabilities recorded related to Western Union...

  • Page 122
    .... The Company provides processing and other services to the alliance and charges fees to the alliance primarily based on contractual pricing. These fees have been separately identified on the face of the Consolidated Statements of Operations. In November 2011, the Company formed an alliance, TCH LLC...

  • Page 123
    ... information for FDC on a consolidated basis. Year ended December 31, 2011 NonGuarantor Consolidation Guarantor Subsidiaries Adjustments Subsidiaries (in millions) FDC Parent Company Consolidated Revenues: Transaction and processing service fees Product sales and other Reimbursable debit network...

  • Page 124
    ... Year ended December 31, 2010 NonGuarantor Consolidation Guarantor Subsidiaries Adjustments Subsidiaries Consolidated Revenues: Transaction and processing service fees Product sales and other Reimbursable debit network fees, postage and other Expenses: Cost of services (exclusive of items shown...

  • Page 125
    ... Year ended December 31, 2009 NonGuarantor Consolidation Guarantor Subsidiaries Adjustments Subsidiaries Consolidated Revenues: Transaction and processing service fees Product sales and other Reimbursable debit network fees, postage and other Expenses: Cost of services (exclusive of items shown...

  • Page 126
    ... notes Other long-term liabilities Total liabilities Redeemable equity interests Redeemable noncontrolling interest First Data Corporation stockholder's equity Noncontrolling interests Equity of consolidated alliance Total equity Total liabilities and equity $ 162.2 25.3 - 45.7 233.2 31.4 - - 606...

  • Page 127
    ... First Data Corporation stockholder's equity Noncontrolling interests Equity of consolidated alliance ... $ $ $ $ $ The majority of the Guarantor settlement assets relate to FDC's merchant acquiring business. FDC believes the settlement assets are not available to satisfy any claims other than ...

  • Page 128
    ... related 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 Payments to secure customer service contracts, including outlays for conversion, and capitalized...

  • Page 129
    ... related 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 Payments to secure customer service contracts, including outlays for conversion, and capitalized...

  • Page 130
    ... related 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 Payments to secure customer service contracts, including outlays for conversion, and capitalized...

  • Page 131
    FIRST DATA CORPORATION SCHEDULE II-Valuation and Qualifying Accounts (dollars, in millions) Balance at Beginning of Period Additions Charged Charged to Costs and to Other Expenses Accounts Balance at End of Period Description Deductions (a) Year ended December 31, 2011 deducted from receivables ...

  • Page 132
    ... 31, 2011, 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, 2011 and 2010, and the related consolidated statements of operations, cash flows, equity and comprehensive income (loss...

  • Page 134
    ... the Company acquired a majority interest in Money Network, LLC in June 2005. Kevin M. Kern has been Executive Vice President of Global Operations and Technology and the Company's Chief Technology Officer since May 2010. Mr. Kern was a Senior Vice President of the Company from February 2009 until...

  • Page 135
    ...of a number of KKR portfolio companies. Scott C. Nuttall has been a member of the Board since September 2007 and is a Member of KKR. Mr. Nuttall joined KKR in 1996 and heads KKR's Global Capital and Asset Management Group which includes the Client and Partner Group, KKR Capital Markets and KKR Asset...

  • Page 136
    ... which applies 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...

  • Page 137
    ...'s management provides information, data, analysis, updates and recommendations to the Committee. Specifically, management provides recommendations on pay levels for executive officers other than the Chief Executive Officer ("CEO") as well as the design of all material compensation and benefit plans...

  • Page 138
    135

  • Page 139
    ... of industry, pay practices, revenue and market value. The 2011 peer group includes the following 21 companies Accenture Capital One Financial eBay Fiserv SAIC SunTrust Banks Visa ADP Computer Sciences Corp. Fidelity Nat'l Info Services Mastercard SLM Corp. Symantec Corp. Western Union American...

  • Page 140
    136

  • Page 141
    ...successfully attract and retain top performing executives, FDC annually reviews market data and aims to provide base pay and short-term cash incentive opportunities between the median and 75th percentile of its peer group companies. As a privately held company, competitive cash compensation programs...

  • Page 142

  • Page 143
    ... Increasing technology reliability and security Launching Google Wallet and expanding product pipeline Improving capital structure via refinancing activities and working capital savings Successfully closing deal to operate Bank of America's merchant platform Building employee engagement, a pay for...

  • Page 144
    ...each executive's role and performance. Per his employment agreement, Mr. Judge has an annual equity award target value of $1,000,000. Mr. Judge's 2011 award was pro-rated based on his October 1, 2010 hiring. 2011 grants were made half in time-vested options and half in restricted stock awards, based...

  • Page 145
    139

  • Page 146
    ...an annual basis. Retirement Plans In 2011, 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 147
    140

  • Page 148
    ... 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 149
    release of claims against FDC and its affiliates and in addition to certain accrued amounts, Mr. Judge will be entitled to (i) payment, in installments ratably over a 24 month period, of two times the sum of his base salary and the average of his target annual bonus for the 141

  • Page 150
    ... to terminate the agreement. TAX AND ACCOUNTING CONSIDERATIONS During 2011, Internal Revenue Code Section 162(m) limitations on tax deductibility of compensation did not apply to FDC as the Company's common stock is not registered or publicly traded. The Committee has not considered Internal Revenue...

  • Page 151
    ... 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 NOMINATIONS COMMITTEE The Governance, Compensation and Nominations Committee of the Board of...

  • Page 152
    ... 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates. The table also reflects the financial reporting value of previously issued stock options which were modified during 2011. See Note 13 to the Consolidated Financial Statements included in Item 8 of this Form 10...

  • Page 153
    ... under the First Data Corporation Severance/Change in Control Policy: $22,593 for 2011 Medical benefits and 2012 COBRA benefits, $3,375,000 representing two years of base and target bonus, $79,594 as a prorated 2011 bonus payment and $360,000 as Restricted Covenant Agreement consideration. Messrs...

  • Page 154
    ...No executive officers were eligible for any Estimated Future Payouts under the Non-Equity or Equity Incentive Plans during 2011. Grants reflected in this column are grants of Restricted Stock made under the 2007 Stock Incentive Plan for Key Employees of First Data Corporation and its Affiliates. All...

  • Page 155
    ...(#) (3) Stock Awards Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) Name Jonathan J. Judge Number of Number of Securities...

  • Page 156
    ... Table. Market value of the shares is based on the per share price as of December 31, 2011, 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...

  • Page 157
    ...legislative changes under Internal Revenue Code Section 409A. The Policy provides for the payment of benefits to executive officers upon severance from FDC and/or upon a change of control. The Policy is intended to promote uniform treatment of senior executives who are involuntarily terminated other...

  • Page 158
    .... 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. The following table contains certain information regarding options, warrants or rights under the plan as of December 31, 2011. Number of...

  • Page 159
    ... with Kohlberg Kravis Roberts & Co. L.P. and other co-investors own the limited partner interests. New Omaha Holdings LLC is the general partner of New Omaha Holdings L.P. KKR 2006 Fund L.P. is the sole member of New Omaha Holdings LLC. KKR Associates 2006 L.P. is the general partner of KKR 2006...

  • Page 160
    ... standards of the Public Company Accounting Oversight Board (United States). Audit-Related Fees. Ernst & Young LLP's fees for audit-related services that are reasonably related to the performance of the audit or review of the Company's consolidated financial statements were $1.9 million in 2011 and...

  • Page 161
    Tax Fees. Ernst & Young LLP's fees for tax compliance, tax advice and tax planning services to the Company were $0.6 million in 2011 and $0.7 million in 2010. All Other Fees. The Company did not pay Ernst & Young LLP any fees for all other professional services in 2011 or 2010. Audit Committee Pre-...

  • Page 162
    ... by reference: DESCRIPTION EXHIBIT NO. 2.1 Agreement and Plan of Merger, dated as of April 1, 2007, among New Omaha Holdings L.P., Omaha Acquisition Corporation and First Data Corporation (incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K filed on April...

  • Page 163
    ... and bookrunners (incorporated by reference to Exhibit 10.1 of the Company's Annual Report on Form 10-K filed on March 13, 2008, Commission File No. 1-11073). Amendment Agreement, dated as of August 10, 2010, among First Data Corporation, certain of its subsidiaries, certain of the lenders under the...

  • Page 164
    ... 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 Committee Members...

  • Page 165
    ...Form of Stock Option Agreement (effective April 2010) (incorporated by reference to Exhibit 10.4 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 2012. * Description of First Data Holdings Inc. Compensation...

  • Page 166
    ... the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections. Management contracts and compensatory plans and arrangements required to be filed as exhibits pursuant to Item 15(b) of this report. 158...

  • Page 167
    ... behalf by the undersigned, thereunto duly authorized. FIRST DATA CORPORATION (Registrant) By: /S/ JONATHAN J. JUDGE Jonathan J. Judge Chief Executive Officer Date: March 5, 2012 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following...

  • Page 168
    EXHIBIT INDEX EXHIBIT NO. DESCRIPTION 2.1 Agreement and Plan of Merger, dated as of April 1, 2007, among New Omaha Holdings L.P., Omaha Acquisition Corporation and First Data Corporation (incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K filed on April 2, 2007, ...

  • Page 169
    ...to Exhibit 10.13 of the Company's Quarterly Report on Form 10-Q filed on November 14, 2007, Commission File No. 1-11073). Management Agreement, dated September 24, 2007, among First Data Corporation, Kohlberg Kravis Roberts & Co. L.P. and New Omaha Holdings L.P. (incorporated by reference to Exhibit...

  • Page 170
    ... 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 Committee Members...

  • Page 171
    ...Form of Stock Option Agreement (effective April 2010) (incorporated by reference to Exhibit 10.4 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 2012. * Description of First Data Holdings Inc. Compensation...

  • Page 172
    ..., on March 3, 2012, 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. 2012 Base Salary 2012 Bonus Target (1) Stock Option Grant (2) Restricted Stock Award (3) Name and Title...

  • Page 173
    ... each calendar year under the First Data Holdings Inc. 2008 Non-Employee Director Deferred Compensation Plan. All amounts deferred will accrue earnings based on the performance of Holdings common stock and be paid to the director upon termination of the director's service, subject to acceleration of...

  • Page 174
    ...Services, LLC Credit Card Holdings Limited CTS Holdings, LLC CTS, Inc. Data Holding Korea (Malaysia) Sdn Bhd D.Man Debtors Notification Company S.A DW Holdings Canada ULC Eastern States Bankcard Association Inc. Eastern States Monetary Services, Inc. EBP Re, Ltd. Electronic Banking Solutions Limited...

  • Page 175
    FD do Brasil Processamento de Dados Ltda. Brazil

  • Page 176
    ...Limited Sirketi First Data Canada Merchant Solutions ULC First Data Capital, Inc. First Data Card Solutions, Inc. First Data (China) Co., Ltd. First Data Chile Limitada First Data CIS First Data Colombia Ltda. First Data Commercial Services Holdings, Inc. First Data Commercial Services Limited First...

  • Page 177
    First Data Egypt LLC First Data Foundation First Data Government Solutions, Inc. Egypt Colorado not-for-profit Delaware

  • Page 178
    ...First Data GmbH First Data (Greece) US Holding Corp. First Data Hellas Processing Services & Holdings SA First Data Holding I (Netherlands) BV First Data Holding (Slovakia) s.r.o. First Data Hong Kong Limited First Data Hungary First Data (India) Private Limited First Data International d.o.o. First...

  • Page 179
    First Data Mobile (Bermuda) Holdings, Ltd. First Data Mobile Holdings Limited Bermuda Ireland

  • Page 180
    ..., LLC First Data Resources South Africa (Proprietary) Limited First Data Retail ATM Services L.P. First Data Romania SRL First Data Secure LLC First Data Serbia and Montenegro d.o.o. First Data Services LLC First Data (Singapore) Pte Ltd. First Data Slovakia a.s. First Data Solutions Inc. First Data...

  • Page 181
    First Data Voice Services First Merchant Processing (Ireland) Limited First Merchant Processing (UK) Delaware general partnership Ireland Ireland

  • Page 182
    ... Limited Merchant Solutions (Shanghai) Consultancy Co., Ltd. Merchant Solutions Sdn Bhd Money Network Financial, LLC National Payment Systems Inc. New Payment Services, Inc. Omnipay Limited PayCargo, LLC PayPoint Electronic Payment Systems, LLC PaySys de Costa Rica, S.A. Germany Delaware Australia...

  • Page 183
    PaySys Europe, B.V. PaySys International, Inc. Netherlands Florida

  • Page 184
    ... Services Private Limited POS Merchant Solutions Pte. Limited POS Merchant Solutions Sdn Bhd Posnet SRL Processing Center, S.A. Publicdatasystems, Inc. REMITCO LLC Research Park Association, Inc. Sagebrush Holdings LLC Signet Signet Processing Limited Size Technologies, Inc. Star Networks, Inc. Star...

  • Page 185
    TeleCheck Services of Puerto Rico, Inc. The Joint Credit Card Company Limited Georgia United Kingdom

  • Page 186
    TRS Recovery Services, Inc. Transaction Solutions, LLC Trionis SCRL Unified Merchant Services ValueLink, LLC Zolter Services Limited Colorado Delaware Belgium Georgia General Partnership Delaware Ireland

  • Page 187
    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 188
    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 189
    ...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, 2011 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange...

  • Page 190
    ...FINANCIAL OFFICER The certification set forth below is being submitted in connection with the Annual Report of First Data Corporation on Form 10K for the period ended December 31, 2011 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of...