First Data 2011 Annual Report Download - page 28

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Consolidated results.
Year ended December 31, Percent Change
2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Revenues:
Transaction and processing service
fees $ 6,330.0 $ 6,181.5 $ 5,788.9 2% 7%
Product sales and other 852.1 809.3 796.7 5% 2%
Reimbursable debit network fees,
postage and other 3,531.5 3,389.6 2,728.2 4% 24%
10,713.6 10,380.4 9,313.8 3% 11%
Expenses:
Cost of services (exclusive of items
shown below) 2,888.4 3,023.3 2,945.1 (4)% 3%
Cost of products sold 369.6 375.2 305.5 (1)% 23%
Selling, general and administrative 1,693.7 1,579.7 1,438.2 7% 10%
Reimbursable debit network fees,
postage and other 3,531.5 3,389.6 2,728.2 4% 24%
Depreciation and amortization 1,245.0 1,414.4 1,452.3 (12)% (3)%
Other operating expenses, net (a) 43.9 81.5 289.7 * *
9,772.1 9,863.7 9,159.0 (1)% 8%
Interest income 7.9 7.8 11.7 1% (33)%
Interest expense (1,833.1) (1,796.6) (1,796.4) 2% 0%
Other income (expense) (b) 124.1 (15.9) (61.3) * *
Income tax benefit (270.1) (323.8) (578.8) (17)% (44)%
Equity earnings in affiliates 153.4 117.3 97.8 31% 20%
Net loss (336.1) (846.9) (1,014.6) (60)% (17)%
Less: Net income attributable to
noncontrolling interests 180.0 174.9 71.8 3% *
Net loss attributable to First Data
Corporation $ (516.1)$ (1,021.8)$ (1,086.4)(49)% (6)%
* Calculation not meaningful.
(a) Other operating expenses, net includes restructuring, net, impairments and litigation and regulatory settlements as applicable to
the periods presented.
(b) Other income (expense) includes investment gains and losses, derivative financial instruments gains and losses, divestitures,
net, and non-operating foreign currency exchange gains and losses as applicable to the periods presented.
The following provides highlights of revenue and expense growth on a consolidated basis while a more detailed discussion is
included in the "Segment Results" section below.
Operating revenues overview.
Transaction and processing service fees. Revenue increased in 2011 compared to 2010 due to growth in merchant transactions
and dollar volumes both domestically and internationally, growth in debit issuer transactions, new business, lower debit interchange
rates as a result of the Dodd-Frank Act described in the "Regulatory Reform" section above, and foreign currency exchange rate
movements. Partially offsetting these increases were decreases due to price compression, changes in merchant and pricing mix, lower
overall check volumes and lost business. Foreign currency exchange rate movements positively impacted the transaction and
processing service fees growth rate by approximately 1 percentage point.
Revenue increased in 2010 compared to 2009 due to the incremental impact of the BAMS alliance, new sales, growth from
existing clients and a card association fee increase that benefited 2010. The incremental impact of the BAMS alliance benefited the
transaction and processing service fees growth rate in 2010 compared to 2009 by 5 percentage points. Prepaid revenue also
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