First Data 2014 Annual Report Download - page 41

(7) Represents fair market value adjustments for cross-currency swaps and interest rate swaps that are not designated as accounting hedges.
(8) Represents an adjustment to exclude the official check and money order businesses from EBITDA due to wind down of these businesses.
(9) Represents costs directly associated with the strategy to have First Data operate Bank of America N.A.'s legacy settlement platform and costs associated with the termination of the
Chase Paymentech alliance, both of which are considered business optimization projects, and other technology initiatives.
(10) Represents KKR annual sponsorship fees for management, financial, and other advisory services.
(11) Debt issuance costs represent costs associated with issuing debt and modifying First Data's debt structure.
(12) Represents settlements of litigation or regulatory matters.
(13) Reflects cost savings and revenue enhancements projected to be realized as a result of specific actions as if they were achieved on the first day of the period. Includes cost savings
initiatives associated with the business optimization projects and other technology initiatives described in Note 9, the Banc of America Merchant Services (BAMS) alliance,
operations, and technology initiatives, headcount reductions, and other addressable spend reductions.
(14) Net income attributable to noncontrolling interests and redeemable noncontrolling interest in restricted subsidiaries.
(15) Represents FDC’s proportional share of income taxes, depreciation, and amortization on equity method investments.
(16) Loss incurred due to early extinguishment of debt.
(17) Includes items such as impairments and other as applicable to the period presented.
(18) EBITDA is defined as net income (loss) attributable to First Data Corporation before net interest expense, income taxes, depreciation, and amortization. EBITDA is not a
recognized term under U.S. generally accepted accounting principles (GAAP) and does not purport to be an alternative to net income (loss) attributable to First Data Corporation
as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, EBITDA is not intended to be a measure of free cash flow
available for management’s discretionary use as it does not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. The
presentation of EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of First Data's results as reported under GAAP.
Management believes EBITDA is helpful in highlighting trends because EBITDA excludes the results of decisions that are outside the control of operating management and can
differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital
investments. Management compensates for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete
understanding of the factors and trends affecting the business than GAAP results alone.
Consolidated EBITDA (or debt covenant EBITDA) is defined as EBITDA adjusted to exclude certain non-cash items, non-recurring items that First Data does not expect to
continue at the same level in the future and certain items management believes will impact future operating results and adjusted to include near-term cost savings projected to be
achieved within twelve months on an annualized basis (see Note 13 above). Consolidated EBITDA is further adjusted to add net income attributable to noncontrolling interests
and redeemable noncontrolling interest of certain non-wholly owned subsidiaries and exclude other miscellaneous adjustments that are used in calculating covenant compliance
under the agreements governing First Data's senior unsecured debt and/or senior secured credit facilities. We believe that the inclusion of supplementary adjustments to EBITDA is
appropriate to provide additional information to investors about items that will impact the calculation of EBITDA that is used to determine covenant compliance under the
agreements governing First Data's senior unsecured debt and/or senior secured credit facilities. Since not all companies use identical calculations, this presentation of Consolidated
EBITDA may not be comparable to other similarly titled measures of other companies.
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During 2014, 2013 and 2012, we did not engage in any off-balance sheet financing activities other than those included in the “Contractual obligations”
discussion below and those reflected in Note 9 "Commitments and Contingencies" to our Consolidated Financial Statements in Part II, Item 8 of this Form 10-
K.
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Our contractual obligations as of December 31, 2014 are as follows:
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
Borrowings (a)
$ 29,743.0
$ 1,657.9
$ 4,484.9
$ 10,067.8
$ 13,532.4
Capital lease obligations (b)
228.6
83.2
125.4
10.4
9.6
Operating leases
303.0
60.1
96.5
69.2
77.2
Pension plan contributions (c)
77.3
13.7
15.6
15.6
32.4
Purchase obligations (d):
Technology and telecommunications (e)
498.1
265.8
220.7
8.7
2.9
All other (f)
446.2
213.6
154.3
78.3
—
Other long-term liabilities
114.1
15.9
92.2
5.8
0.2
$ 31,410.3
$ 2,310.2
$ 5,189.6
$ 10,255.8
$ 13,654.7
(a) Includes future principal and cash interest payments on long-term borrowings through scheduled maturity dates. Includes $4.4 billion of variable rate debt (including the impact
of interest rate swaps). Borrowings and interest rate swaps are discussed in Note 6 "Borrowings" and Note 5 "Derivative Financial Instruments", respectively, to our Consolidated
Financial Statements in Part II, Item 8 of this Form 10-K. Interest payments for the variable rate debt and the associated interest rate swaps were calculated using interest rates as of
December 31, 2014.
(b) Represents future payments on existing capital leases, including interest expense, through scheduled expiration dates.
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