First Data 2011 Annual Report Download - page 58

will be effective for the Company during the first quarter of 2012. Adoption of the revised guidance is not anticipated to have a
material impact on the Company's financial position or results of operations but management is currently assessing the impact on its
fair value measurement disclosures.
In September 2011, the Financial Accounting Standards Board issued guidance related to testing goodwill for impairment.
Under the amended guidance, an entity has the option of first assessing qualitative factors to determine whether events and
circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is
determined that the fair value is more likely than not greater than the carrying amount then the two-step impairment test is
unnecessary. The Company adopted the amendments for its 2011 annual impairment test. After performing a qualitative assessment,
the Company proceeded to step one of its impairment test.
Forward-Looking Statements
Certain matters the Company discusses in this Annual Report on Form 10-K and in other public statements may constitute
forward-looking statements. You can identify forward-looking statements because they contain words such as "believes," "expects,"
"may," "will," "should," "seeks," "intends," "plans," "estimates," or "anticipates" or similar expressions which concern the Company's
strategy, plans, projections or intentions. Examples of forward-looking statements include, but are not limited to, all statements the
Company makes relating to revenue, EBITDA, earnings, margins, growth rates and other financial results for future periods. Forward-
looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other
future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes
in circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the
forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include:
(a) no adverse impact on the Company's business as a result of its high degree of leverage;
(b) successful conversions under service contracts with major clients, including clients of Banc of America Merchant
Services, LLC;
(c) successfully adjusting to new U.S. financial regulatory reform legislation and regulations;
(d) successful implementation and improvement of processing systems to provide new products, improved functionality and
increased efficiencies;
(e) successfully managing adverse economic conditions and developments in consumer spending;
(f) successful consolidation of the Company's processing platforms and data centers;
(g) no further consolidation among client financial institutions or other client groups which have a significant impact on
Company client relationships and no material loss of business from significant customers of the Company;
(h) achieving planned revenue growth throughout the Company, including in the merchant alliance program which involves
several alliances not under the sole control of the Company and each of which acts independently of the others, and
successful management of pricing pressures through cost efficiencies and other cost-management initiatives;
(i) no significant adverse movement in foreign currency exchange rates;
(j) anticipation of and response to technological changes, particularly with respect to e-commerce and mobile commerce;
(k) successfully managing the credit and fraud risks in the Company's business units and the merchant alliances, particularly
in the context of the developing e-commerce markets;
(l) no material breach of security of any of the Company's systems;
(m) continuing development and maintenance of appropriate business continuity plans for the Company's processing systems
based on the needs and risks relative to each such system;
(n) no unanticipated changes in laws, regulations, credit card association rules or other industry standards affecting the
Company's businesses which require significant product redevelopment efforts, reduce the market for or value of its
products or render products obsolete;
(o) continuation of the existing interest rate environment so as to avoid unanticipated increases in interest on the Company's
borrowings;
(p) no unanticipated developments relating to lawsuits, investigations or similar matters;
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