First Data 2012 Annual Report Download - page 72

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FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table presents changes to goodwill for the years ended December 31, 2011 and 2012:
(a) Relates to the deconsolidation of the Company’ s transportation business. Refer to Note 18 of these Consolidated Financial
Statements for additional information.
Note 4: Settlement Assets and Obligations
Settlement assets and obligations result from FDC’ s processing services and associated settlement activities, including
settlement of payment transactions. Settlement assets are generated principally from merchant services transactions. Certain merchant
settlement assets that relate to settlement obligations accrued by the Company are held by partner banks to which the Company does
not have legal ownership but has the right to use to satisfy the related settlement obligation. FDC records corresponding settlement
obligations for amounts payable to merchants and for payment instruments not yet presented for settlement. The difference in the
aggregate amount of such assets and liabilities is primarily due to unrealized net investment gains and losses, which are reported as
OCI in equity. The principal components of FDC’ s settlement assets and obligations are as follows:
Refer to Note 5 of these Consolidated Financial Statements for information concerning the Company’ s investment securities.
72
(in millions)
Retail and
Alliance
Services
Financial
Services International
All Other
and
Cor
p
orate
Divested
O
p
erations Totals
Balance as of January 1, 2011
Goodwill $ 14,065.7 $ 3,451.4 $ 2,657.1 $ 177.0 $ 181.3 $ 20,532.5
Accumulated impairment losses (1,106.5)(1,395.2)(375.6)(177.0) (181.3)(3,235.6)
12,959.2 2,056.2 2,281.5
—
—
17,296.9
Deconsolidation (a) (42.8)
—
—
—
—
(42.8)
Purchase price adjustments
—
—
(4.5)
—
—
(4.5)
Other adjustments (primarily
foreign currency)
—
—
(45.0)
—
—
(45.0)
Balance as of December 31, 2011
Goodwill 14,022.9 3,451.4 2,607.6 177.0 181.3 20,440.2
Accumulated impairment losses (1,106.5)(1,395.2)(375.6)(177.0) (181.3)(3,235.6)
12,916.4 2,056.2 2,232.0
—
—
17,204.6
Acquisitions 48.9
—
—
—
—
48.9
Impairments
—
(4.5)
—
—
—
(4.5)
Other adjustments (primarily
foreign currency)
—
—
33.5
—
—
33.5
Balance as of December 31, 2012
Goodwill 14,071.8 3,451.4 2,641.1 177.0 181.3 20,522.6
Accumulated impairment losses (1,106.5)(1,399.7)(375.6)(177.0) (181.3)(3,240.1)
$ 12,965.3 $ 2,051.7 $ 2,265.5 $
—
$
—
$ 17,282.5
As of December 31,
(in millions) 2012 2011
Settlement assets:
Current settlement assets:
Cash and cash equivalents $ 3,790.4 $1,650.3
Investment securities 125.6 105.7
Due from card associations and bank partners 4,523.4 8,353.3
Due from merchants 734.4 549.0
9,173.8 10,658.3
Long-term settlement assets:
Investment securities 54.3 181.0
$ 9,228.1
$10,839.3
Settlement obligations:
Current settlement obligations:
Payment instruments outstanding $ 289.9 $459.6
Card settlements due to merchants 8,936.4 10,378.2
$ 9,226.3
$10,837.8