First Data 2014 Annual Report Download - page 63
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A summary of net pretax benefits (charges), incurred by segment, for each period is as follows:
Restructuring charges
$ (3.1) $ (0.5) $ (0.3) $ (13.3)
$ (17.2)
Restructuring accrual reversals
1.0 0.2 1.5 1.3
4.0
Restructuring, net
$ (2.1)
$ (0.3)
$ 1.2
$ (12.0)
$ (13.2)
Restructuring charges
$ (17.9)
$ (8.7)
$ (1.7)
$ (25.3)
$ (53.6)
Restructuring accrual reversals
2.2
0.5
1.6
1.3
5.6
Restructuring, net
$ (15.7)
$ (8.2)
$ (0.1)
$ (24.0)
$ (48.0)
Restructuring charges
$ (7.5)
$ —
$ (18.5)
$ (2.2)
$ (28.2)
Restructuring accrual reversals
1.0
—
2.8
1.3
5.1
Restructuring, net
$ (6.5)
$ —
$ (15.7)
$ (0.9)
$ (23.1)
The following table summarizes the Company’s utilization of restructuring accruals for the years ended December 31, 2013 and 2014:
Remaining accrual as of January 1, 2013
$ 13.1
$ —
Expense provision
53.6
—
Cash payments and other
(40.0)
—
Changes in estimates
(5.6)
—
Remaining accrual as of December 31, 2013
21.1
—
Expense provision
16.2 1.0
Cash payments and other
(21.8) —
Changes in estimates
(4.0) —
Remaining accrual as of December 31, 2014
$ 11.5
$ 1.0
In August 2014, the Company acquired Gyft, Inc., a leading digital platform that enables consumers to buy, send, manage, and redeem gift cards using mobile
devices. The final purchase consideration will vary based on contingent consideration which will be determined based on sales for the next three years. The
acquisition is reported as part of the Merchant Solutions segment. Refer to Note 9 "Commitments and Contingencies" of these Consolidated Financial
Statements for additional information regarding the liability for contingent consideration.
On May 29, 2014, the Company completed the sale of its 30% minority interest in a transportation payments business, Electronic Funds Source LLC (EFS),
which was reported as part of the Merchant Solutions segment. The Company recognized a gain on sale of $98 million recorded in “Other income (expense)”
in the Consolidated Statements of Operations, comprised of $264 million in cash reduced by its investment and associated deal costs of $166 million, and
recorded an income tax provision of $7 million as a result of the final settlement of the sale.
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