First Data 2011 Annual Report Download - page 117

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Note 16: Quarterly Financial Results (Unaudited)
Summarized quarterly results for the two years ended December 31, 2011 and 2010, respectively, are as follows:
2011 by Quarter:
(in millions) First Second Third (a) Fourth (b)
Revenues $ 2,544.2 $ 2,749.8 $ 2,731.8 $ 2,687.8
Expenses 2,437.7 2,537.8 2,438.6 2,358.0
Interest income 1.9 1.9 1.6 2.5
Interest expense (442.3) (462.3) (466.7) (461.8)
Other income (expense) (26.3)(1.4)95.4 56.4
Loss before income taxes and equity earnings in
affiliates (360.2) (249.8) (76.5) (73.1)
Income tax benefit (148.0) (88.1) (18.9) (15.1)
Equity earnings in affiliates 27.7 33.5 47.8 44.4
Net loss (184.5) (128.2) (9.8) (13.6)
Less: Net income attributable to noncontrolling
interests 32.6 47.6 44.1 55.7
Net loss attributable to First Data Corporation $ (217.1)$ (175.8)$ (53.9)$ (69.3)
2010 by Quarter:
(in millions) First Second Third Fourth
Revenues $ 2,402.1 $ 2,614.7 $ 2,633.1 $ 2,730.5
Expenses 2,332.1 2,467.9 2,492.4 2,571.3
Interest income 2.0 1.4 2.1 2.3
Interest expense (448.9) (450.9) (455.8) (441.0)
Other income (expense) 8.2 24.8 (52.3)3.4
Loss before income taxes and equity earnings in
affiliates (368.7) (277.9) (365.3) (276.1)
Income tax (benefit) expense (138.1) (122.4) 52.3 (115.6)
Equity earnings in affiliates 22.2 33.3 31.2 30.6
Net loss (208.4) (122.2) (386.4) (129.9)
Less: Net income attributable to noncontrolling
interests 31.7 49.0 44.9 49.3
Net loss attributable to First Data Corporation $ (240.1)$ (171.2)$ (431.3)$ (179.2)
(a) In the third quarter of 2011, the Company recorded a net $55.4 million pretax ($31.5 million after tax) benefit in 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 within "Revenues" ($1.6 million contra-revenue), "Expenses" ($44.3 million
benefit) and amortization of equity method investments within "Equity earnings in affiliates" ($12.7 million benefit). The errors
and the cumulative correction, which totaled $55.4 million in aggregate and occurred over a four year period, were deemed
immaterial to prior years and the current year, respectively. Additional immaterial related amounts were recorded in the fourth
quarter.
(b) In the fourth quarter of 2011, the Company contributed the assets of its transportation business to an alliance in exchange for a
30% interest in the alliance. The Company recognized a pretax gain of $59.1 million within "Other Income (expense)" as a result
of this transaction. Refer to Note 18 of these Consolidated Financial Statements for additional information.
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