First Data 2011 Annual Report Download - page 103

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Note 12: First Data Corporation Stockholder's Equity and Redeemable Noncontrolling Interests
Dividends
The Company's senior secured revolving credit facility, senior secured term loan facility, senior secured notes, senior second
lien notes, PIK toggle senior second lien notes, senior notes and senior subordinated notes contain restrictions on the Company's
ability to pay dividends. The restrictions are subject to numerous qualifications and exceptions, including an exception that allows the
Company to pay a dividend to repurchase, under certain circumstances, the equity of Parent held by employees, officers and directors
that were obtained in connection with the stock compensation plan. The Company paid cash dividends to its parent totaling $0.2
million during 2011 and $14.9 million during 2010. No dividends were paid in 2009.
Other Comprehensive Income
The income tax effects allocated to and the cumulative balance of each component of OCI are as follows:
(in millions)
Beginning
Balance
Cumulative
Effect
Adjustment
Net of Tax
Pretax
Gain
(Loss)
Amount
Tax
(Benefit)
Expense
Net-of-
Tax
Amount
Ending
Balance
As of December 31, 2011
Unrealized gains (losses) on securities $ 0.1 $ — $ 1.3 $ 0.5 $ 0.8 $ 0.9
Unrealized gains (losses) on hedging
activities (171.8) — 158.6 59.0 99.6 (72.2)
Foreign currency translation
adjustment (400.3) — (79.0) (41.0) (38.0) (438.3)
Pension liability adjustments (64.9)— (38.8)(14.9)(23.9)(88.8)
$ (636.9) $ — $ 42.1 $ 3.6 $ 38.5 $ (598.4)
As of December 31, 2010
Unrealized gains (losses) on securities $ (27.4) $ — $ 44.0 $ 16.5 $ 27.5 $ 0.1
Unrealized gains (losses) on hedging
activities (242.1) — 115.2 44.9 70.3 (171.8)
Foreign currency translation
adjustment (318.8) — (65.5) 16.0 (81.5) (400.3)
Pension liability adjustments (93.4)— 44.9 16.4 28.5 (64.9)
$ (681.7) $ — $ 138.6 $ 93.8 $ 44.8 $ (636.9)
As of December 31, 2009
Unrealized gains (losses) on securities $ (11.2) $ (27.1) $ 17.2 $ 6.3 $ 10.9 $ (27.4)
Unrealized gains (losses) on hedging
activities (352.3) — 172.5 62.3 110.2 (242.1)
Foreign currency translation
adjustment (542.5) — 209.2 (14.5) 223.7 (318.8)
Pension liability adjustments (28.9)— (101.1)(36.6)(64.5)(93.4)
$ (934.9)$ (27.1)$ 297.8 $ 17.5 $ 280.3 $ (681.7)
As discussed in Note 1 of these Consolidated Financial Statements, in 2009, the Company recognized a cumulative effect
adjustment of $43.3 million pretax ($27.1 million net of tax) in unrealized losses on securities and a corresponding increase in retained
earnings. The cumulative effect adjustment was equal to the amount of an other-than-temporary-impairment previously 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:
Year ended December 31,
(in millions) 2011 2010 2009
Net loss attributable to FDC $ (516.1) $ (1,021.8) $ (1,086.4)
Increase in FDC's paid-in capital for gain recognized on formation on
BAMS, net of tax — — 20.8
Decrease in FDC's paid-in capital for loss recognized from purchase
of noncontrolling interest, including tax effect — (7.5)—
Change in net loss attributable to FDC and transfers from noncontrolling
interest $ (516.1)$ (1,029.3)$ (1,065.6)
101