First Data 2014 Annual Report Download - page 62

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

are observable or not observable in the market. The Company maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs.
The three levels in the hierarchy are as follows:
• Level 1 Inputs—Quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date.
• Level 2 Inputs—Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including but not limited to quoted
prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices
such as interest rates or yield curves.
• Level 3 Inputs—Unobservable inputs reflecting the Company’s own assumptions about the assumptions that market participants would use in
pricing the asset or liability, including assumptions about risk.

During the years ended December 31, 2014 and 2013, the Company did not record any adjustments over $5 million to the carrying value of existing assets
based on non-recurring fair value measurements.

In May 2014, the Financial Accounting Standards Board (FASB) issued guidance that requires companies to recognize revenue to depict the transfer of goods
or services to customers in amounts that reflect the consideration to which the company expects to be entitled to in an exchange for those goods or services. It
also requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively, and improves
guidance for multiple-element arrangements. The guidance applies to any entity that either enters into contracts with customers to transfer goods or services
or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance is effective for
public companies for annual periods beginning after December 15, 2016 as well as interim periods within those annual periods using either the full
retrospective approach or modified retrospective approach. Early adoption is not permitted. The Company is currently evaluating the impacts of the new
guidance on its consolidated financial statements.

During the years ended December 31, 2014, 2013, and 2012, the Company recorded restructuring charges in connection with management’s alignment of the
business with strategic objectives and cost savings initiatives as well as refinements of estimates. During 2014 and 2013, the Company also recorded
restructuring charges in connection with the departure of certain executive officers. Additionally in 2014 and 2012, the Company recorded restructuring
charges related to certain relocation efforts in the U.S. and Germany, respectively. In the fourth quarter of 2014, the Company began an off-shoring initiative
with an expected total cost between $50 million and $100 million to be completed in 2017.
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