First Data 2012 Annual Report Download - page 8

International segment revenues from external customers, segment EBITDA and assets represent the following percentages of
total segment and All Other and Corporate revenues from external customers, total segment and All Other and Corporate EBITDA and
consolidated assets:
The merchant acquiring and card issuing services provided by the International segment are similar in nature to the services
described above in the Retail and Alliance Services and Financial Services segments other than they include substantially all the
services provided outside of the U.S. International has operations in 34 countries. For a description of the International segment’s
merchant acquiring and card issuing businesses refer to the Retail and Alliance Services and Financial Services segment descriptions
provided above.
International segment competition and seasonality. Competition and seasonality within the International segment is
similar to that of the Retail and Alliance Services and Financial Services segments for the respective product and service offerings and
also includes third-party software providers. A noted difference from the U.S. operations is that generally there are more and smaller
competitors because of the International segment’s global span.
International geographic mix. The following countries accounted for more than 10% of the segment’s revenues from
external customers for the periods presented:
No individual foreign country was material to the Company’s consolidated revenues.
International significant customers. No individual customer makes up more than 10% of the International segment
revenue.
All Other and Corporate. The remainder of the Company’s business units are grouped in the All Other and Corporate
category, which includes Integrated Payment Systems (“IPS”), First Data Government Solutions (“FDGS”) and smaller businesses as
well as corporate operations.
The principal IPS business is official check services. Until May 2010, IPS issued official checks, which were sold by agents that
were financial institutions. Official checks served as an alternative to a bank’s own items such as cashiers or bank checks. The
Company has gradually exited the official check line of business. The majority of the clients of this business deconverted during 2008
and there was no new official check and money order business beyond May 2010. IPS will continue to use its licenses to offer
payment services that fall under state and federal regulations and the business will continue to operate in a much reduced capacity as
outstanding official check and money order clearance activity winds down.
FDGS operates payment systems and related technologies in the government sector. For instance, FDGS provides electronic tax
payment processing services for the Electronic Federal Tax Payment System.
Corporate operations include administrative and shared service functions such as the executive group, legal, tax, treasury,
internal audit, accounting, human resources, information technology and procurement. Costs incurred by Corporate that are directly
related to a segment are allocated to the respective segment. Administrative and shared service costs are retained by Corporate.
All Other and Corporate competition. The operations within All Other and Corporate have various competitors. No
single competitor would have a material impact on the Company.
All Other and Corporate significant customers. During 2012, the Company had a significant relationship with one client
whose revenues represented approximately 50% of All Other and Corporate revenue for the year ended December 31, 2012.
8
Year ended December 31,
2012 2011 2010
Segment revenues from external customers 25% 27% 25%
Segment EBITDA 20% 20% 16%
Assets (at December 31) 14% 13% 14%
Year ended December 31,
2012 2011 2010
United Kingdom 17% 18% 17%
Australia 15% 16% 15%
Germany 12% 13% 13%