First Data 2011 Annual Report Download - page 102

Future minimum aggregate rental commitments as of December 31, 2011 under all noncancelable operating leases, net of
sublease income, were $267.0 million and are due in the following years:
Year ended December 31,
(in millions) Amount
2012 $ 57.6
2013 45.3
2014 31.0
2015 24.3
2016 22.3
Thereafter 86.5
Sublease income is earned from leased space which FDC concurrently subleases to third parties with comparable time periods.
As of December 31, 2011, sublease amounts totaled $0.1 million in FDC obligations. In addition, the Company has certain guarantees
imbedded in leases and other agreements wherein the Company is required to relieve the counterparty in the event of changes in the
tax code or rates. The Company believes the fair value of such guarantees is insignificant due to the likelihood and extent of the
potential changes.
Letters of Credit
The Company has $45.0 million in outstanding letters of credit as of December 31, 2011, all of which were issued under the
Company's senior secured revolving credit facility and expire prior to December 10, 2012 with a one-year renewal option. The letters
of credit are held in connection with lease arrangements, bankcard association agreements and other security agreements. The
Company expects to renew most of the letters of credit prior to expiration.
Contingencies
The Company is involved in various legal proceedings. Accruals have been made with respect to these matters, where
appropriate, which are reflected in the Company's consolidated financial statements. The Company may enter into discussions
regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the
Company. The matters discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may
result in liability material to the Company's financial condition and/or results of operations.
On July 2, 2004, a class action complaint was filed against the Company, its subsidiary Concord EFS, Inc., and various financial
institutions. Plaintiffs claim that the defendants violated antitrust laws by conspiring to artificially inflate foreign ATM fees that were
ultimately charged to ATM cardholders. Plaintiffs seek a declaratory judgment, injunctive relief, compensatory damages, attorneys'
fees, costs and such other relief as the nature of the case may require or as may seem just and proper to the court. Five similar suits
were filed and served in July, August and October 2004 (referred to collectively as the "ATM Fee Antitrust Litigation"). The Court
granted judgment in favor of the defendants, dismissing the case on September 17, 2010. On October 14, 2010, the plaintiffs appealed
the summary judgment. The Company continues to believe the complaints are without merit and intends to vigorously defend them.
There are asserted claims against the Company where an unfavorable outcome is considered to be reasonably possible. These
claims can generally be categorized in the following three areas: (1) patent infringement which results from claims that the Company
is using technology that has been patented by another party; (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 collection activities; and (3) other matters which
may include issues such as employment. The Company's estimates of the possible ranges of losses in excess of any amounts accrued
are $0 to $1 million for patent infringement, $0 to $31 million for merchant customer matters and $0 to $7 million for other matters,
resulting in a total estimated range of possible losses of $0 to $39 million for all of the matters described above.
The estimated range of reasonably possible losses is based on currently available information and involves elements of
judgment and significant uncertainties. As additional information becomes available and the resolution of the uncertainties becomes
more apparent, it is possible that actual losses may exceed even the high end of the estimated range.
Other
In the normal course of business, the Company is subject to claims and litigation, including indemnification obligations to
purchasers of former subsidiaries. Management of the Company believes that such matters will not have a material adverse effect on
the Company's results of operations, liquidity or financial condition.
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