First Data 2014 Annual Report Download - page 11

accounts. Additionally, the International segment revenue is impacted by foreign exchange rate movements as well as the macroeconomic forces within
countries where the services are being sold.
Competition and seasonality within the International segment are similar to that of the Merchant
Solutions and Financial Services segments for the respective product and service offerings. A noted difference from the U.S. operations is that generally there
are a greater number of competitors, and smaller ones in particular, due to the International segment’s global span.
The following countries accounted for more than 10% of the segment’s revenues from external customers for the periods
presented:




United Kingdom 20%
17%
17%
Australia 10%
12%
15%
Germany 12%
12%
12%
No individual international country was material to our consolidated revenues.

The remainder of our 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.
IPS primarily engages in money transmission services. Historically, the principal IPS business was 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. We have exited the official check line of business, yet continue to support these outstanding payment instruments until they are presented for
payment, or are escheated to local governments. 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.
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, finance, 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.
The operations within All Other and Corporate have various competitors. No single competitor would have a material
impact on our operations.
During 2014, we had a significant relationship with one client whose revenues represented approximately
50% of All Other and Corporate revenue for the year ended December 31, 2014.

We own a global portfolio of many trademarks, trade names, patents, and other intellectual property that are important to our future success. The only
intellectual property rights that are individually material to us are the FIRST DATA trademark and trade name, and the STAR trademark and trade name. The
STAR trademark and trade name are used in the Financial Services segment. The FIRST DATA trademark and trade name are associated with quality and
reliable electronic commerce and payments solutions. Financial institutions and merchants associate the STAR trademark and trade name with quality and
reliable debit network services and processing services. Loss of the proprietary use of the FIRST DATA or STAR trademarks and trade names or a diminution
in the perceived quality associated with these names could harm the growth of our businesses.
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