First Data 2011 Annual Report Download - page 49

The calculation of Consolidated EBITDA under FDC's senior secured term loan facility is as follows:
(in millions)
Last twelve
months ended
December 31, 2011
Net loss attributable to First Data Corporation $ (516.1)
Interest expense, net (1) 1,825.2
Income tax benefit (270.1)
Depreciation and amortization (2) 1,344.2
EBITDA (15) 2,383.2
Stock based compensation (3) 16.9
Restructuring, net (4) 46.4
Divestitures, net (5) (57.4)
Derivative financial instruments (gains) and losses (6) (58.2)
Official check and money order EBITDA (7) 0.5
Cost of alliance conversions and other technology initiatives (8) 41.3
KKR related items (9) 37.4
Debt issuance costs (10) 3.2
Projected near-term cost savings and revenue enhancements (11) 177.0
Net income attributable to noncontrolling interests (12) 180.0
Equity entities taxes, depreciation and amortization (13) 15.9
Other (14) 7.9
Consolidated EBITDA (15) $ 2,794.1
(1) Includes interest expense and interest income.
(2) Includes amortization of initial payments for new contracts which is recorded as a contra-revenue within "Transaction and
processing service fees" of $42.5 million and amortization related to equity method investments, which is netted within the
"Equity earnings in affiliates" line of $56.7 million.
(3) Stock based compensation recognized as expense.
(4) Restructuring charges in connection with management's alignment of the business with strategic objectives.
(5) Due mostly to a gain recognized upon disposition of a controlling interest in a business in connection with the formation of an
alliance.
(6) Represents fair market value adjustments for cross currency swaps and interest rate swaps that are not designated as
accounting hedges.
(7) Represents an adjustment to exclude the official check and money order businesses from EBITDA due to FDC's wind down
of these businesses.
(8) Represents costs directly associated with the termination of the Chase Paymentech alliance and expenses related to the
conversion of certain Banc of America Merchant Services alliance merchant clients onto FDC platforms, all of which are
considered business optimization projects, and other technology initiatives. Effective October 1, 2011, FDC and BofA jointly
decided to have FDC operate the Bank's legacy settlement platform. Costs associated with the revised strategy are also
included in this line item.
(9) Represents KKR annual sponsorship fees for management, consulting, financial and other advisory services.
(10) Debt issuance costs represent non-capitalized costs associated with issuing debt and modifying FDC's debt structure.
(11) Reflects cost savings and revenue enhancements projected to be achieved within twelve months on an annualized basis.
Includes cost savings initiatives associated with the business optimization projects and other technology initiatives described
in Note 8, the BAMS alliance, operations and technology initiatives, headcount reductions and other addressable spend
reductions.
(12) Net income attributable to noncontrolling interests in restricted subsidiaries.
(13) Represents FDC's proportional share of income taxes, depreciation, and amortization on equity method investments.
(14) Includes items such as non operating foreign currency gains and losses, litigation and regulatory settlements, impairments and
other as applicable to the period presented.
(15) EBITDA is defined as net income (loss) attributable to First Data Corporation before net interest expense, income taxes,
depreciation and amortization. EBITDA is not a recognized term under U.S. generally accepted accounting principles
("GAAP") and does not purport to be an alternative to net income (loss) attributable to First Data Corporation as a measure of
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