FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)
Three Months Ended
December 31,
--------------------------
2005 2004 Change
--------- --------- ------
Revenues:
Transaction and processing service fees:
Payment Services $1,153.7 $1,012.3 14%
Merchant Services 804.9 739.2 9%
Check verification and guarantee
services 93.4 101.2 -8%
Card Issuing Services 389.7 429.0 -9%
All other 28.1 30.0 -6%
Investment income, net (16.5) (14.6) -13%
Professional services 22.6 19.5 16%
Software licensing and maintenance 15.2 17.9 -15%
Product sales and other 126.7 210.3 -40%
Reimbursable postage and other 149.2 145.0 3%
--------- ---------
2,767.0 2,689.8 3%
--------- ---------
Expenses:
Cost of services 1,494.3 1,372.9 9%
Cost of products sold 72.0 64.4 12%
Selling, general and administrative 427.3 450.3 -5%
Reimbursable postage and other 149.2 145.0 3%
Other operating expenses:
Restructuring, net 67.3 12.6 NM
Impairments 23.5 (6.9) NM
Other 24.3 - NM
--------- ---------
2,257.9 2,038.3 11%
--------- ---------
Operating profit 509.1 651.5 -22%
--------- ---------
Other income (expense):
Interest income 6.1 5.8 5%
Interest expense (65.3) (40.7) 60%
Investment gains and (losses) (0.9) (3.7) NM
Divestitures, net 45.5 0.1 NM
--------- ---------
(14.6) (38.5) NM
--------- ---------
Income before income taxes, minority
interest, equity earnings in affiliates
and discontinued operations 494.5 613.0 -19%
Income taxes 120.2 160.4 -25%
Minority interest (32.6) (32.9) -1%
Equity earnings in affiliates 67.7 45.4 49%
--------- ---------
Income from continuing operations 409.4 465.1 -12%
Loss from discontinued operations, net of
taxes of $(6.9) (a) (11.5) - NM
--------- ---------
Net income $397.9 $465.1 -14%
========= =========
Earnings per share from continuing
operations:
Basic $0.54 $0.57 -5%
Diluted $0.53 $0.56 -5%
Earnings per share:
Basic $0.52 $0.57 -9%
Diluted $0.52 $0.56 -7%
Weighted-average shares outstanding:
Basic 763.7 816.5 -6%
Diluted 772.4 828.0 -7%
Shares outstanding at end of period 762.7 804.0 -5%
(See accompanying notes)
FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)
Twelve Months Ended
December 31,
--------------------------
2005 2004 Change
--------- --------- ------
Revenues:
Transaction and processing service fees:
Payment Services $4,261.6 $3,720.4 15%
Merchant Services 2,946.4 2,736.3 8%
Check verification and guarantee
services 373.7 405.4 -8%
Card Issuing Services 1,583.1 1,677.3 -6%
All other 118.2 127.5 -7%
Investment income, net (58.3) 91.2 NM
Professional services 89.0 89.9 -1%
Software licensing and maintenance 58.6 63.4 -8%
Product sales and other 502.2 518.0 -3%
Reimbursable postage and other 615.9 583.8 5%
--------- ---------
10,490.4 10,013.2 5%
--------- ---------
Expenses:
Cost of services 5,661.3 5,140.6 10%
Cost of products sold 264.7 223.1 19%
Selling, general and administrative 1,628.4 1,610.5 1%
Reimbursable postage and other 615.9 583.8 5%
Other operating expenses:
Restructuring, net 81.6 63.5 NM
Impairments 50.3 0.5 NM
Litigation and regulatory settlements (1.4) 32.4 NM
Other 34.2 25.0 NM
--------- ---------
8,335.0 7,679.4 9%
--------- ---------
Operating profit 2,155.4 2,333.8 -8%
--------- ---------
Other income (expense):
Interest income 21.2 25.1 -16%
Interest expense (228.3) (136.8) 67%
Investment gains and (losses) 22.3 5.9 NM
Divestitures, net 61.3 265.2 NM
--------- ---------
(123.5) 159.4 NM
--------- ---------
Income before income taxes, minority
interest, equity earnings in affiliates and
discontinued operations 2,031.9 2,493.2 -19%
Income taxes 542.9 674.7 -20%
Minority interest (128.6) (114.6) 12%
Equity earnings in affiliates 236.9 163.9 45%
--------- ---------
Income from continuing operations 1,597.3 1,867.8 -14%
Income (loss) from discontinued operations,
net of taxes of $(6.9) and $21.3,
respectively (a) (11.5) 7.4 NM
--------- ---------
Net income $1,585.8 $1,875.2 -15%
========= =========
Earnings per share from continuing
operations:
Basic $2.06 $2.26 -9%
Diluted $2.04 $2.22 -8%
Earnings per share:
Basic $2.05 $2.27 -10%
Diluted $2.02 $2.23 -9%
Weighted-average shares outstanding:
Basic 775.0 827.0 -6%
Diluted 784.3 840.2 -7%
Shares outstanding at end of period 762.7 804.0 -5%
(See accompanying notes)
FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
Three Months Ended
December 31,
--------------------------
2005 2004 Change
--------- --------- ------
Revenues:
---------
Payment Services $1,196.7 $1,058.5 13%
Merchant Services 1,121.4 1,121.1 0%
Card Issuing Services 567.6 608.5 -7%
--------- ---------
Subtotal segment revenues 2,885.7 2,788.1 4%
All Other and Corporate 61.4 56.2 9%
--------- ---------
2,947.1 2,844.3 4%
--------- ---------
Adjustments for items included in
segment and All Other and Corporate
revenues: (b)
Equity earnings in affiliates (c) (76.9) (54.8) 40%
Interest income (6.1) (5.8) 5%
Eliminations (e) (97.1) (93.9) NM
--------- ---------
Consolidated revenue $2,767.0 $2,689.8 3%
========= =========
Operating profit: (f)
---------------------
Payment Services $375.1 $303.4 24%
Merchant Services 283.0 350.3 -19%
Card Issuing Services 112.0 121.5 -8%
--------- ---------
Subtotal segment operating profit 770.1 775.2 -1%
All Other and Corporate (43.2) (43.9) 2%
--------- ---------
726.9 731.3 -1%
--------- ---------
Adjustments for items included in
segment and All Other and
Corporate operating profit: (b)
Equity earnings in affiliates (67.7) (45.4) 49%
Minority interest from segment
operations (g) 34.5 33.0 5%
Eliminations (e) (63.4) (55.9) NM
Interest expense (65.3) (40.7) 60%
Items excluded from segment operations
(h) (70.5) (9.3) NM
--------- ---------
Income before income taxes, minority
interest, equity earnings in affiliates
and discontinued operations $494.5 $613.0 -19%
========= =========
Depreciation & Amortization:
----------------------------
Payment Services $30.7 $27.5 12%
Merchant Services 101.1 91.8 10%
Card Issuing Services 58.7 66.0 -11%
All Other and Corporate 8.3 6.9 20%
--------- ---------
Consolidated depreciation & amortization $198.8 $192.2 3%
========= =========
(See accompanying notes)
FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
Twelve Months Ended
December 31,
----------------------------
2005 2004 Change
---------- ---------- ------
Revenues:
---------
Payment Services $4,447.6 $4,043.3 10%
Merchant Services 4,111.4 3,844.3 7%
Card Issuing Services 2,362.9 2,383.7 -1%
---------- ----------
Subtotal segment revenues 10,921.9 10,271.3 6%
All Other and Corporate 230.9 249.2 -7%
---------- ----------
11,152.8 10,520.5 6%
---------- ----------
Adjustments for items included in
segment and All Other and Corporate
revenues: (b)
Equity earnings in affiliates (c) (273.2) (198.3) 38%
Interest income (21.2) (25.1) -16%
Divested business (d) - 58.1 NM
Eliminations (e) (368.0) (342.0) NM
---------- ----------
Consolidated revenue $10,490.4 $10,013.2 5%
========== ==========
Operating profit: (f)
---------------------
Payment Services $1,389.0 $1,305.2 6%
Merchant Services 971.4 990.3 -2%
Card Issuing Services 455.7 508.1 -10%
---------- ----------
Subtotal segment operating profit 2,816.1 2,803.6 0%
All Other and Corporate (124.1) (95.1) -30%
---------- ----------
2,692.0 2,708.5 -1%
---------- ----------
Adjustments for items included in
segment and All Other and Corporate
operating profit: (b)
Equity earnings in affiliates (236.9) (163.9) 45%
Divested business (d) - 11.2 NM
Minority interest from segment
operations (g) 130.4 136.8 -5%
Eliminations (e) (244.2) (212.3) NM
Interest expense (228.3) (136.8) 67%
Items excluded from segment operations
(h) (81.1) 149.7 NM
---------- ----------
Income before income taxes, minority
interest, equity earnings in
affiliates and discontinued operations $2,031.9 $2,493.2 -19%
========== ==========
Depreciation & Amortization:
----------------------------
Payment Services $114.4 $104.0 10%
Merchant Services 385.3 352.3 9%
Card Issuing Services 249.1 252.4 -1%
All Other and Corporate 28.5 26.8 6%
Divested business - 2.7 NM
---------- ----------
Consolidated depreciation &
amortization $777.3 $738.2 5%
========== ==========
(See accompanying notes)
FIRST DATA CORPORATION
NOTES TO FINANCIAL SCHEDULES
(Unaudited)
In December 2005 FDC sold 33% of its interest (20% of the company) in
the PNC Merchant Services alliance to The PNC Financial Services
Group, its partner in the alliance. Upon closing of the agreement the
Company owned 40% of the alliance and began accounting for it under
the equity method of accounting. Revenues and expenses have been
retroactively adjusted back to January 1, 2005 to reflect the alliance
as an investment accounted for under the equity method. In addition,
amounts for 2005 and 2004 have been adjusted for a reclassification of
leasing revenue from "Transaction and processing services fees" to
"Product sales and other." Both adjustments relate to the Merchant
Services segment.
(a) Discontinued operations consist of NYCE.
(b) Reconciles the total segment and All Other and Corporate revenue
to consolidated revenue or total segment and All Other and
Corporate operating profit to income before income taxes, minority
interest, equity earnings in affiliates and discontinued
operations as reported on the Consolidated Statements of Income.
(c) Excludes equity losses that were recorded in expense and the
amortization related to the excess of the investment balance over
the Company's proportionate share of the investee's net book
value.
(d) The Company sold its 67% owned subsidiary, Global Cash Access,
("GCA") in March 2004. Revenue and operating profit associated
with GCA are excluded from segment results.
(e) Represents elimination of adjustment to record Payment Services
segment revenues and operating profit on a pretax equivalent basis
and elimination of intersegment revenue.
(f) Segment and All Other and Corporate operating profit includes
interest income, minority interest from segment operations, equity
earnings in affiliates and the allocation of corporate overhead.
Segment and All Other and Corporate operating profit excludes
items discussed in note (h) below and interest expense.
(g) Minority interest from segment operations excludes minority
interest attributable to items excluded from segment operations
discussed in note (h) below as well as minority interest related
to interest expense and income taxes.
(h) Items, other than interest expense, excluded from segment
operations consist of the following:
Three Twelve
months months
ended ended
December December
31, 31,
(in millions) 2005 2005
----------------------------------------------------------------------
Restructuring charges of $67.7 million
and $84.8 million were recorded in
the three and twelve months ended
December 31, 2005, offset with
reversals of excess restructuring
accruals of $0.4 million and $3.2
million for three and twelve months,
respectively. The charges related
mostly to the severance of
approximately 1,420 and 1,750
Restructuring, employees in the three and twelve
net $(67.3) $(81.6) months ended December 31, 2005.
A loss of $37.2 million was recorded
for the twelve months ended December
31, 2005, related to the impairment
of goodwill and other assets due to
strategic decisions related to the
Company's mobile payments business
and a business in the Payments
Services segment. Losses were also
recorded related to the impairment of
Impairments (23.5) (50.3) software and other assets.
Charges recorded during the twelve
months ended December 31, 2005,
relate to a regulatory settlement of
$1.5 million offset by reversals of
Litigation and unutilized reserves for $2.9 million
regulatory for the settlement of lawsuits all in
settlements - 1.4 the Payment Services segment.
A gain of $21.4 million on the sale of
CheckFree Corporation common stock
was recorded during the twelve months
Investment ended December 31, 2005, as well as
gains and the sale and impairment of other
(losses) (0.9) 22.3 strategic investments.
Gains on the sales of small businesses
and assets were recorded (including
the sale of IBT interests, 20% of the
PNC Merchant Services alliance (gain
of approximately $36 million) and the
sale of the Company's interest in its
Link2Gov investment) and certain
excess divestiture accruals were
reversed due to the expiration of
certain contingencies during the
Divestitures, three and twelve months ended
net 45.5 61.3 December 31, 2005.
During the three months ended December
31, 2005, most of the charge related
to an additional accrual of domestic
and international escheatment
liabilities related to transactions
processed prior to 2005 (although
portions of this charge are not
scheduled to be remitted until
periods beyond 2006), with the
remaining charge related to contract
terminations. Also in the twelve
months, Other relates to a charge for
the reimbursement to certain clients
for the misallocation of certain
pass through billings, the majority
Other (24.3) (34.2) of which related to 2004.
-----------------
(70.5) (81.1)
Minority
interest - (0.1)
-----------------
$(70.5) $(81.2)
=================
Three Twelve
months months
ended ended
December December
31, 31,
(in millions) 2004 2004
----------------------------------------------------------------------
Restructuring charges of $13.0 million
and $65.6 million were recorded in
the three and twelve months ended
December 31, 2004, offset with
reversals of excess restructuring
accruals of $0.4 million and $2.1
Restructuring, million for three and twelve months,
net $(12.6) $(63.5) respectively.
Impairment charges were recorded for
the three and twelve months ended
December 31, 2004, related primarily
to software and goodwill as a result
of business restructuring. A $12.0
million recovery was recorded for the
three months ended December 31, 2004,
related to an impairment of
capitalized customer contract costs
associated with a customer bankruptcy
Impairments 6.9 (0.5) recognized in 2002.
Litigation charges were recorded in
the second and third quarters related
Litigation and to the anticipated settlement of a
regulatory lawsuit associated with the Merchant
settlements - (32.4) Services segment.
Net investment gains in the twelve
months ended December 31, 2004,
relate to the $12.2 million gain on
the sale of a strategic investment
Investment offset by losses on e-commerce
gains and businesses and other business
(losses) (3.7) 5.9 ventures.
Divestitures related to the gain on
the sale of GCA and the release of
$1.4 million of divestiture accruals
Divestitures, related to the expiration of certain
net 0.1 265.2 contingencies.
Other related to adjustments for
TeleCheck accounting entries that
originated primarily during 2002 and
Other - (25.0) 2003.
-----------------
(9.3) 149.7
Minority
interest 0.1 22.2
-----------------
$(9.2) $171.9
=================
NM = Not meaningful.
FIRST DATA CORPORATION
FINANCIAL TRANSACTION PROCESSING
KEY INDICATORS
(Unaudited)
(in millions)
At December 31, 2005 2004 Change
--------------- --------- --------- ------
Card accounts on file
Domestic cards 415.3 369.9 12%
International cards 45.0 36.1 25%
--------- ---------
Total 460.3 406.0 13%
========= =========
For the Three Months Ended December 31:
---------------------------------------
Payment Services transactions:
Consumer-to-consumer money transfer (a) 34.10 26.39 29%
Consumer-to-business (b) 41.33 37.21 11%
North America merchant transactions (c) 6,350.5 5,598.7 13%
North America issuer transactions (d) 2,085.2 1,924.1 8%
For the Twelve Months Ended December 31:
----------------------------------------
Payment Services transactions:
Consumer-to-consumer money transfer (a) 118.52 96.66 23%
Consumer-to-business (b) 160.40 146.13 10%
North America merchant transactions (c) 23,424.7 19,829.4 18%
North America issuer transactions (d) 7,906.8 6,818.9 16%
(a) Consumer-to-consumer money transfer transactions include consumer-
to-consumer money transfer services worldwide. Amounts for 2005
include Vigo Remittance Corp. ("Vigo") transactions since the
acquisition date of October 21, 2005. Excluding Vigo, consumer-
to-consumer money transfer transactions grew 22% and 21% for the
three and twelve months ended December 31, 2005, respectively.
(b) Consumer-to-business transactions include Quick Collect, EasyPay,
PhonePay, Paymap's Just-in-Time and Equity Accelerator services,
and E Commerce Group's Speedpay transactions directly processed by
E Commerce Group.
(c) North America merchant transactions include acquired VISA and
MasterCard credit and signature debit, PIN-debit, electronic
benefits transactions ("EBT"), and processed-only or gateway
customer transactions at the point of sale ("POS"). North America
merchant transactions also include acquired ATM transactions,
gateway transactions at ATMs, and STAR PIN-debit POS transactions
received from other acquirers.
(d) North America issuer transactions include VISA and MasterCard
signature debit, STAR ATM, STAR PIN-debit POS, and ATM and PIN-
debit POS gateway transactions.
FIRST DATA CORPORATION
SUPPLEMENTAL METRICS
(Unaudited)
At December 31, 2005
--------------- --------------
Card accounts on file (in millions):
Bankcard 89.5
Retail 258.4
Debit 112.4
--------------
Total 460.3
==============
For the Three Months Ended December 31: Including Vigo Excluding Vigo
--------------------------------------- -------------- --------------
Money transfer and bill payment:
Revenue growth 14% 12%
Operating profit growth 23% 23%
Money transfer:
U.S. consumer-to-consumer same
store sales transaction growth N/A 15%
International transaction growth 33% 27%
International revenue growth 16% 15%
Mexico transaction growth 48% 19%
Mexico revenue growth 46% 21%
North America merchant transactions:
PIN debit POS and network
transaction growth 10%
Consolidated financial metrics (in
millions):
Capital expenditures $131
Dividends $46
For the Twelve Months Ended December 31: Including Vigo Excluding Vigo
---------------------------------------- -------------- --------------
Money transfer and bill payment:
Revenue growth 14% 13%
Operating profit growth 18% 18%
Money transfer:
U.S. consumer-to-consumer same
store sales transaction growth N/A 15%
International transaction growth 28% 26%
International revenue growth 18% 18%
Mexico transaction growth 26% 19%
Mexico revenue growth 27% 20%
North America merchant transactions:
PIN debit POS and network
transaction growth 22%
Consolidated financial metrics (in
millions):
Capital expenditures $398
Dividends $155
N/A - Not applicable
FIRST DATA CORPORATION
(Unaudited)
(in millions)
In December 2005 FDC sold 33% of its interest (20% of the company) in
the PNC Merchant Services alliance to The PNC Financial Services
Group, its partner in the alliance. Upon closing of the agreement the
Company owned 40% of the alliance and began accounting for it under
the equity method of accounting. Revenues and expenses have been
retroactively adjusted back to January 1, 2005 to reflect the alliance
as an investment accounted for under the equity method. In addition,
amounts for 2005 and 2004 have been adjusted for a reclassification of
leasing revenue from "Transaction and processing services fees" to
"Product sales and other." Both adjustments relate to the Merchant
Services segment.
Consolidated Results
Q1 Q2 Q3 Q4 YTD
Revenues: 2005 2005 2005 2005 2005
------------------------------------------------
Transaction and
processing service
fees:
Payment Services $976.5 $1,039.7 $1,091.7 $1,153.7 $4,261.6
Merchant Services 660.4 731.6 749.5 804.9 2,946.4
Check
verification and
guarantee
services 94.0 92.3 94.0 93.4 373.7
Card Issuing
Services 409.8 396.2 387.4 389.7 1,583.1
All Other 32.2 31.3 26.6 28.1 118.2
Investment Income (12.8) (14.8) (14.2) (16.5) (58.3)
Professional services 22.0 22.1 22.3 22.6 89.0
Software licensing
and maintenance 13.1 15.1 15.2 15.2 58.6
Product sales and
other 110.9 123.4 141.2 126.7 502.2
Reimbursable postage
and other 160.2 158.3 148.2 149.2 615.9
----------------------------------------------------------------------
Total Revenues 2,466.3 2,595.2 2,661.9 2,767.0 10,490.4
----------------------------------------------------------------------
Cost of services 1,345.5 1,397.8 1,423.7 1,494.3 5,661.3
Cost of products sold 59.6 58.6 74.5 72.0 264.7
Selling, general and
administrative 390.4 407.9 402.8 427.3 1,628.4
Reimbursable postage
and other 160.2 158.3 148.2 149.2 615.9
Other operating
expenses (0.9) 21.8 28.7 115.1 164.7
----------------------------------------------------------------------
Total Expenses 1,954.8 2,044.4 2,077.9 2,257.9 8,335.0
----------------------------------------------------------------------
Operating profit 511.5 550.8 584.0 509.1 2,155.4
Other income
(expense) (14.1) (50.8) (44.0) (14.6) (123.5)
----------------------------------------------------------------------
Income before income
taxes, minority
interest, equity
earnings in
affiliates and
discontinued
operations 497.4 500.0 540.0 494.5 2,031.9
Income taxes 143.4 130.6 148.7 120.2 542.9
Minority interest (27.6) (32.9) (35.5) (32.6) (128.6)
Equity earnings in
affiliates 48.1 55.4 65.7 67.7 236.9
----------------------------------------------------------------------
Income from
continuing
operations 374.5 391.9 421.5 409.4 1,597.3
Loss from
discontinued
operations, net of
taxes of $(6.9) - - - (11.5) (11.5)
----------------------------------------------------------------------
Net income $374.5 $391.9 $421.5 $397.9 $1,585.8
----------------------------------------------------------------------
FIRST DATA CORPORATION
(Unaudited)
(in millions)
Merchant Services Segment
Q1 Q2 Q3 Q4 YTD
Revenues: 2005 2005 2005 2005 2005
-----------------------------------------------
Transaction and
processing service
fees $660.5 $731.6 $749.5 $805.2 $2,946.8
Check verification
and guarantee
services 94.0 92.3 94.0 93.4 373.7
Investment Income,
net 7.8 9.6 11.8 14.0 43.2
Professional services 5.6 5.6 5.6 6.0 22.8
Software licensing
and maintenance 1.6 1.9 1.6 1.3 6.4
Product sales and
other 95.2 104.1 108.5 120.4 428.2
Reimbursable postage
and other 6.3 6.4 5.8 5.8 24.3
Equity earnings in
affiliates 54.7 62.3 72.7 74.4 264.1
Interest income 0.3 0.4 0.3 0.9 1.9
----------------------------------------------------------------------
Total Revenue $926.0 $1,014.2 $1,049.8 $1,121.4 $4,111.4
----------------------------------------------------------------------
Merchant Services Segment Leasing Reclassification
YTD Q1 Q2 Q3 Q4 YTD
Revenues: 2003 2004 2004 2004 2004 2004
--------------------------------------------------
Transaction and
processing service
fees $1,694.8 $508.9 $726.5 $708.7 $740.5 $2,684.6
Product sales and
other 376.9 85.0 96.6 96.1 203.0 480.7
Consolidated Results Leasing Reclassification
YTD Q1 Q2 Q3 Q4 YTD
Revenues: 2003 2004 2004 2004 2004 2004
--------------------------------------------------
Transaction and
processing service
fees:
Merchant
Services $1,962.4 $565.2 $725.0 $706.9 $739.2 $2,736.3
Product sales and
other 421.1 85.9 105.4 116.4 210.3 518.0
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION SUMMARY
(Unaudited)
(in millions)
2004
---------
Revenue: Q1 Q2 Q3 Q4 FY
-------- --------------------------------------------------
Western Union $821.6 $864.2 $895.9 $941.6 $3,523.3
First Data
Commercial
Services 701.9 919.6 906.5 1,054.4 3,582.4
First Data Finl.
Inst. Services 430.7 474.3 485.7 466.1 1,856.8
First Data
International 161.6 186.7 203.0 224.9 776.2
Integrated Payment
Systems 94.2 94.3 56.5 34.1 279.1
--------------------------------------------------
Subtotal Segment
Revenue $2,210.0 $2,539.1 $2,547.6 $2,721.1 $10,017.8
==================================================
All Other and
Corporate $120.3 $133.7 $139.9 $128.2 $522.1
==================================================
Consolidated
Revenue $2,258.4 $2,529.1 $2,535.9 $2,689.8 $10,013.2
==================================================
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION SUMMARY
(Unaudited)
(in millions)
2005
---------
Revenue: Q1 Q2 Q3 Q4 FY
-------- --------------------------------------------------
Western Union $918.3 $979.7 $1,023.5 $1,079.0 $4,000.5
First Data
Commercial
Services 855.0 929.7 962.9 1,014.4 3,762.0
First Data Finl.
Inst. Services 470.3 481.7 474.3 437.5 1,863.8
First Data
International 212.8 212.0 227.6 262.3 914.7
Integrated Payment
Systems 33.1 34.8 32.2 30.2 130.3
--------------------------------------------------
Subtotal Segment
Revenue $2,489.5 $2,637.9 $2,720.5 $2,823.4 $10,671.3
==================================================
All Other and
Corporate $131.1 $123.7 $123.5 $130.7 $509.0
==================================================
Consolidated
Revenue $2,466.3 $2,595.2 $2,661.9 $2,767.0 $10,490.4
==================================================
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION SUMMARY
(Unaudited)
(in millions)
2004
-------
Operating Profit: Q1 Q2 Q3 Q4 FY
----------------- -----------------------------------------
Western Union $260.2 $272.8 $300.2 $287.7 $1,120.9
First Data Commercial
Services 151.9 222.5 230.2 338.0 942.6
First Data Finl. Inst.
Services 78.2 115.1 125.5 94.8 413.6
First Data International 7.3 16.3 25.9 28.4 77.9
Integrated Payment Systems 69.1 68.9 31.6 8.1 177.7
-----------------------------------------
Subtotal Segment
Operating Profit $566.7 $695.6 $713.4 $757.0 $2,732.7
=========================================
All Other and Corporate $(4.6) $(6.3) $12.4 $(25.7) $(24.2)
=========================================
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION SUMMARY
(Unaudited)
(in millions)
2005
-------
Operating Profit: Q1 Q2 Q3 Q4 FY
----------------- -----------------------------------------
Western Union $298.5 $324.4 $351.0 $360.2 $1,334.1
First Data Commercial
Services 173.2 217.5 239.8 262.3 892.8
First Data Finl. Inst.
Services 87.6 106.2 98.6 85.5 377.9
First Data International 21.6 23.3 29.2 38.9 113.0
Integrated Payment Systems 10.8 10.5 7.7 6.4 35.4
-----------------------------------------
Subtotal Segment
Operating Profit $591.7 $681.9 $726.3 $753.3 $2,753.2
=========================================
All Other and Corporate $0.8 $(19.8) $(15.8) $(26.4) $(61.2)
=========================================
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION
(Unaudited)
(in millions)
Year ended December 31, 2004
Segment Revenues:
-----------------
Card
Payments Merchant Issuing
Services Services Services
--------- ----------- --------- --------------
Previous Segment
Reporting $4,043.3 $3,844.3 $2,383.7 $-
Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate (520.0) 98.1 54.0
Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate (360.0) 321.3
Reclassification of
FDI-Card to FDI,
and FD Solutions and
FDT to All Other and
Corporate (580.9) 454.9
--------- ----------- --------- --------------
New Segment Reporting $3,523.3 $3,582.4 $1,856.8 $776.2
========= =========== ========= ==============
--------- ----------- --------- --------------
Western First Data First First Data
Union Commercial Data International
Services Finl
Inst
Services
Segment Operating
Profit:
------------------
Card
Payments Merchant Issuing
Services Services Services
--------- ----------- --------- --------------
Previous Segment
Reporting $1,305.2 $990.3 $508.1 $-
Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate (184.3) (9.1) (1.6)
Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate (38.6) 27.8
Reclassification of
FDI-Card to FDI, and
FD Solutions and FDT
to All Other and
Corporate (92.9) 50.1
--------- ----------- --------- --------------
New Segment Reporting $1,120.9 $942.6 $413.6 $77.9
========= =========== ========= ==============
--------- ----------- --------- --------------
Western First Data First First Data
Union Commercial Data International
Services Finl
Inst
Services
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION
(Unaudited)
(in millions)
Year ended December 31, 2004
Segment Revenues:
-----------------
All Other
and
Corporate Total
----------- ----------- ----------
Previous Segment
Reporting $- $249.2 $10,520.5
Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate 279.1 100.7 11.9
Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate 41.1 2.4
Reclassification of
FDI-Card to FDI,
and FD Solutions
and FDT to All
Other and Corporate 131.1 5.1
----------- ----------- ----------
New Segment
Reporting $279.1 $522.1 $10,539.9
=========== =========== ==========
----------- ----------- ----------
Integrated All Other Total
Payment and
Systems Corporate
Segment Operating Profit:
-------------------------
All Other
and
Corporate Total
----------- ----------- ----------
Previous Segment
Reporting $- $(95.1) $2,708.5
Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate 177.7 17.3 0.0
Reclassification of
FDI-Merchant to
FDI, and PPS to All
Other and Corporate 10.8 0.0
Reclassification of
FDI-Card to FDI,
and FD Solutions
and FDT to All
Other and Corporate 42.8 0.0
----------- ----------- ----------
New Segment
Reporting $177.7 $(24.2) $2,708.5
=========== =========== ==========
----------- ----------- ----------
Integrated All Other Total
Payment and
Systems Corporate
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION
(Unaudited)
(in millions)
Year ended December 31, 2005
Segment Revenues:
-----------------
Card
Payments Merchant Issuing
Services Services Services
--------- ----------- --------- --------------
Previous Segment
Reporting $4,447.6 $4,111.4 $2,362.9 $-
Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate (447.1) 124.3 97.3
Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate (473.7) 436.2
Reclassification of
FDI-Card to FDI, and
FD Solutions and FDT
to All Other and
Corporate (596.4) 478.5
--------- ----------- --------- --------------
New Segment Reporting $4,000.5 $3,762.0 $1,863.8 $914.7
========= =========== ========= ==============
--------- ----------- --------- --------------
Western First Data First First Data
Union Commercial Data International
Services Finl
Inst
Services
Segment Operating
Profit:
------------------
Card
Payments Merchant Issuing
Services Services Services
--------- ----------- --------- --------------
Previous Segment
Reporting $1,389.0 $971.4 $455.7 $-
Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate (54.9) (2.6) 2.1
Reclassification of
FDI-Merchant to FDI,
and PPS to All Other
and Corporate (76.0) 60.1
Reclassification of
FDI-Card to FDI, and
FD Solutions and FDT
to All Other and
Corporate (79.9) 52.9
--------- ----------- --------- --------------
New Segment Reporting $1,334.1 $892.8 $377.9 $113.0
========= =========== ========= ==============
--------- ----------- --------- --------------
Western First Data First First Data
Union Commercial Data International
Services Finl
Inst
Services
FIRST DATA CORPORATION
PRELIMINARY SEGMENT REORGANIZATION
(Unaudited)
(in millions)
Year ended December 31, 2005
Segment Revenues:
-----------------
All Other
and
Corporate Total
----------- ----------- ----------
Previous Segment
Reporting $- $230.9 $11,152.8
Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS to
All Other and
Corporate 130.3 106.2 11.0
Reclassification of
FDI-Merchant to
FDI, and PPS to All
Other and Corporate 51.2 13.7
Reclassification of
FDI-Card to FDI,
and FD Solutions
and FDT to All
Other and Corporate 120.7 2.8
----------- ----------- ----------
New Segment
Reporting $130.3 $509.0 $11,180.3
=========== =========== ==========
----------- ----------- ----------
Integrated All Other Total
Payment and
Systems Corporate
Segment Operating
Profit:
-----------------
All Other
and
Corporate Total
----------- ----------- ----------
Previous Segment
Reporting $- $(124.1) $2,692.0
Reclassification of
IPS to separate
segment, Remitco to
Finl. Inst.,
Prepaid/Checks by
Phone to Commercial,
and Transportion/
Messaging/EPOSS' to
All Other and
Corporate 35.4 20.0 0.0
Reclassification of
FDI-Merchant to
FDI, and PPS to All
Other and Corporate 15.9 0.0
Reclassification of
FDI-Card to FDI,
and FD Solutions
and FDT to All
Other and
Corporate 27.0 0.0
----------- ----------- ----------
New Segment
Reporting $35.4 $(61.2) $2,692.0
=========== =========== ==========
----------- ----------- ----------
Integrated All Other Total
Payment and
Systems Corporate