First Data 2012 Annual Report Download - page 26

Consolidated results.
* 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,
non-operating foreign currency exchange gains and losses and other 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 2012 compared to 2011 due to new business, growth in merchant
transactions and dollar volumes both domestically and internationally and lower debit interchange rates as a result of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). Lower debit interchange rates positively impacted the
transaction and processing service fees growth rate by approximately 1 percentage point. Partially offsetting these increases were
decreases due to lost business, price compression, changes in merchant and pricing mix and foreign currency exchange rate
movements. Foreign currency exchange rate movements negatively impacted the transaction and processing service fees growth rate
in 2012 compared to 2011 by approximately 1 percentage point.
26
Year ended December 31, Percent Chan
g
e
(in millions) 2012 2011 2010 2012 vs. 2011 2011 vs. 2010
Revenues:
Transaction and processing service fees $ 6,452.1 $ 6,330.0 $ 6,181.5 2% 2%
Product sales and othe
r
866.7 852.1 809.3 2% 5%
Reimbursable debit network fees,
p
ostage and othe
r
3,361.5 3,531.5 3,389.6 (5)% 4%
10,680.3 10,713.6 10,380.4 0% 3%
Expenses:
Cost of services (exclusive of items
shown below) 2,863.5 2,888.4 3,023.3 (1)% (4)%
Cost of products sol
d
336.3 369.6 375.2 (9)% (1)%
Selling, general and administrative 1,825.4 1,693.7 1,579.7 8% 7%
Reimbursable debit network fees,
p
ostage and othe
r
3,361.5 3,531.5 3,389.6 (5)% 4%
Depreciation and amortization 1,191.6 1,245.0 1,414.4 (4)% (12)%
Other operating expenses, net (a) 28.2 43.9 81.5 * *
9,606.5 9,772.1 9,863.7 (2)% (1)%
Operating profi
t
1,073.8 941.5 516.7 14% 82%
Interest income 8.8 7.9 7.8 11% 1%
Interest expense (1,897.8) (1,833.1) (1,796.6) 4% 2%
Other income (expense) (b) (94.3)124.1 (15.9) * *
(1,983.3)(1,701.1)(1,804.7) 17% (6)%
Loss before income taxes and equity
earnings in affiliates (909.5)(759.6)(1,288.0) 20% (41)%
Income tax benefi
t
(224.0)(270.1)(323.8) (17)% (17)%
Equity earnings in affiliates 158.2 153.4 117.3 3% 31%
N
et loss (527.3)(336.1)(846.9) 57% (60)%
Less: Net income attributable to
noncontrolling interests and redeemable
noncontrolling interests 173.6 180.0 174.9 (4)% 3%
N
et loss attributable to First Data
Corporation $(700.9) $ (516.1) $ (1,021.8) 36% (49)%