First Data 2014 Annual Report Download - page 30

We or one or more of our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of December 31,
2014, we were no longer subject to income tax examination by the U.S. federal jurisdiction for years before 2005. State and local examinations are
substantially complete through 2006. Foreign jurisdictions generally remain subject to examination by their respective authorities from 2008 forward, none
of which are considered major jurisdictions. Refer to Note 15 "Income Taxes" to our Consolidated Financial Statements in Part II, Item 8 of this form 10-K for
additional information.










Equity earnings in affiliates
$ 219.6
$ 188.3
$ 158.2
17%
19%
Equity earnings in affiliates increased in 2014 and 2013 mostly due to higher volumes and pricing initiatives as well as a decrease in amortization. The sale
of EFS in the second quarter of 2014 did not significantly impact these earnings.










Net income attributable to noncontrolling
interests and redeemable noncontrolling interest
$ 193.3
$ 177.0
$ 173.6
9%
2%
Most of the net income attributable to noncontrolling interests and redeemable noncontrolling interest relates to our consolidated merchant alliances. Net
income attributable to noncontrolling interests and redeemable noncontrolling interest increased in 2014 compared to 2013 due to organic growth, new
revenue, and lower credit losses from our consolidated alliances.
Income increased in 2013 compared to 2012 due most significantly to increased profit by one of our merchant alliances driven by increased volumes and
network routing incentives.
 We classify our businesses into three segments: Merchant Solutions, Financial Services, and International. All Other and Corporate is not
discussed separately as its results that had a significant impact on operating results are discussed in the consolidated results discussion above.
The business segment measurements provided to and evaluated by the chief operating decision maker are computed in accordance with the principles listed
below.
• The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies.
• Segment revenue includes equity earnings in affiliates (excluding amortization expense) and intersegment revenue. Merchant Solutions
segment revenue does not include equity earnings because it is reported using proportionate consolidation as described below.
• Segment revenue excludes reimbursable debit network fees, postage, and other revenue.
• Segment EBITDA includes equity earnings in affiliates and excludes depreciation and amortization expense, net income attributable to
noncontrolling interests, other operating expenses, and other income (expense). Merchant Solutions segment EBITDA does not include
equity earnings because it is reported using proportionate consolidation as described below. Additionally, segment EBITDA is adjusted for
items similar to certain of those used in calculating our compliance with debt covenants. The additional items that are adjusted to
determine segment EBITDA are:
• stock based compensation and related expense is excluded;
30