First Data Reports Third Quarter Revenue of $2.4 Billion

ATLANTA--(BUSINESS WIRE)--First Data Corp. today reported its financial results for the third quarter ended Sept. 30, 2009. Consolidated revenue was $2.4 billion, up 13%. Consolidated revenue growth was primarily driven by the new Bank of America Merchant Services alliance. Bank of America Merchant Services is First Data’s largest merchant acquiring alliance and was established in June 2009 after the extension of similar alliances with Wells Fargo and PNC in recent quarters. Together, these alliances further extend First Data’s leadership in merchant acquiring. As a result of the unprecedented growth and change in ownership structure of its alliance distribution network, First Data has chosen to provide additional reporting to assist in comparing 2009 results to prior periods¹.

“We are focused on our future as we continue to invest in new product development, reduce costs and expand our distribution channels.”

Adjusted Revenue², which excludes reimbursables, declined 9% for the quarter. The effects of the weak economy and constrained credit continue to weigh on the company’s results.

For the quarter, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)³ were $532 million, down 23% compared to the third quarter of 2008, which was the strongest quarter in the last two years for the company. The adverse impact of the stronger U.S. dollar, lower royalty revenue and higher merchant credit losses also unfavorably affected Adjusted EBITDA comparisons, and excluding these items Adjusted EBITDA was down 14%.The net loss attributable to First Data was $289 million, which includes after-tax interest expense of $283 million.

“Despite a tough economy, we are taking advantage of unique opportunities in the marketplace,” said Michael Capellas, chairman and CEO. “We are focused on our future as we continue to invest in new product development, reduce costs and expand our distribution channels.”

Segment Results

Retail and Alliance Services

Retail and Alliance Services reported third-quarter Segment Revenue with reimbursables of $1.3 billion, up 4%. Segment Revenue which excludes reimbursables was $797 million, down 4%. Favorable drivers of Segment Revenue included 15% transaction growth, the addition of 17 new independent sales organizations, 11 new referral partners and 2 new revenue share agreements. This growth was more than offset by weakness in the economy reflected in declining average tickets, continued transaction mix shifts and lower interest income on deposits. Segment EBITDA was $304 million, down 15%, and margin was 38.2%. Segment EBITDA declined due to lower revenue, an incremental provision of $11 million related to higher credit losses from merchant failures and short-term dilution related to Bank of America Merchant Services.

Financial Services

For the quarter, Financial Services reported Segment Revenue with reimbursables of $488 million, down 13%. Segment Revenue which excludes reimbursables was $339 million, down 11%. Financial Services renewed 131 contracts in the quarter including a significant contract with GE. Growth from new business was primarily offset by the previously disclosed loss of a large bank client as well as price compression on certain renewals. The weak economy caused a reduction in active retail card accounts and active credit card accounts as well as lower statement volumes. Segment EBITDA was $148 million, down 24%, and margin was 43.7%. Segment EBITDA declined due to lower revenue and an increase in technology costs partially related to compliance with new regulations.

International

For the quarter, International generated Segment Revenue of $415 million, down 10%. Segment Revenue on a constant currency basis was down 1%. International transactions grew 7%. Segment EBITDA was $107 million, down 24%, and margin was 25.7%. On a constant currency basis, Segment EBITDA was $122 million, down 14% and margin was 26.7%. Segment EBITDA declined due to lower revenue and an increase in merchant credit losses.

Significant Events

Senior Management Additions and Two New Board Members

First Data made the following appointments during the third quarter: Pat Shannon, 46, as chief financial officer; Kevin J. Schultz, 51, as president of its Financial Services business segment; and John Elkins, 57, as chief marketing officer. In addition, Henry R. Kravis and Joe W. Forehand were appointed as new members to First Data's board of directors.

Launch of First Data® Secure Transaction Management^(SM)

First Data and RSA, the Security Division of EMC (NYSE: EMC), announced a new service called First Data® Secure Transaction Management^(SM), which is engineered to enable merchants to secure payment card data and remove it from their environment while allowing access when needed. The new First Data Secure Transaction Management service, offered exclusively by First Data and powered by the RSA SafeProxy™ architecture, is designed to dramatically reduce the cost and complexity of complying with the Payment Card Industry Data Security Standard (PCI DSS).

GE Renewal

First Data renewed a significant agreement with GE. The multi-year agreement includes the printing and e-delivery of statements and production of plastic cards for their retail card business.

Barclays Global Issuing

First Data’s International segment signed a long-term global agreement with Barclays to provide technology for card issuing.

Non-GAAP Measures

In certain circumstances, results have been presented that are non-GAAP measures and should be viewed in addition to, and not in lieu of, the company's reported results. Reconciliations to comparable GAAP (generally accepted accounting principles) measures are available in the accompanying schedules and in the "Investor Relations" section of the company's web site at www.firstdata.com.

The company will host a conference call and webcast on Friday, Nov. 13, at 8 a.m. EST to review third quarter 2009 financial results. Michael Capellas, chairman and CEO of First Data, will lead the call. Also participating will be Pat Shannon, chief financial officer, and Silvio Tavares, senior vice president, investor relations.

To listen to the call, dial 877-723-9523 (U.S.) or +1-719-325-4901 (outside the U.S.) 10 minutes prior to the start of the call. The call will also be webcast on the "Investor Relations" section of the First Data Web site, http://ir.firstdatacorp.com/events.cfm. Please click on the webcast link at least 15 minutes prior to the call. A slide presentation to accompany the call will be included in the webcast and also will be available under the "Investor Relations" section of the Web site.

A replay of the call will be available through Nov. 20, 2009, at 888-203-1112 (U.S.) or +1-719-457-0820 (outside the U.S.), replay pass code 5549623, and via webcast at http://ir.firstdatacorp.com/events.cfm.

About First Data

First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.

¹ For additional details please refer to the Current Report on Form 8-K that the company filed with the SEC on November 10, 2009.

² Adjusted Revenue represents the sum of Segment Revenue and All Other and Corporate revenue as adjusted to exclude revenue related to the IPS segment due to the wind down of the official check and money order businesses and to reflect elimination of intersegment revenues.

³ Adjusted EBITDA represents the sum of Segment EBITDA and All Other and Corporate EBITDA. Segment EBITDA represents segment earnings before net interest expense, income taxes, depreciation and amortization further adjusted for certain items. For additional details please refer to Current Report on Form 8-K that the company filed with the SEC on November 10, 2009.

FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)
		Three months ended September 30,
			2009				2008			Change
Revenues:
Transaction and processing service fees (a):
Merchant related services		$	868.2			$	701.3			24%
Check services			90.5				94.4			-4%
Card services			451.9				525.3			-14%
Other services			129.2				140.9			-8%
Investment income, net			(4.5	)			(24.5	)		NM
Product sales and other			188.4				215.6			-13%
Reimbursable debit network fees, postage and other			719.5				511.0			41%
			2,443.2				2,164.0			13%
Expenses:
Cost of services (exclusive of items shown below)			757.1				722.3			5%
Cost of products sold			80.9				77.1			5%
Selling, general and administrative			377.5				345.2			9%
Reimbursable debit network fees, postage and other			719.5				511.0			41%
Depreciation and amortization			372.0				338.9			10%
Other operating expenses:
Restructuring, net			10.9				16.0			NM
Impairments			7.7				29.6			NM
			2,325.6				2,040.1			14%
Operating profit			117.6				123.9			-5%
Interest income			3.2				5.9			-46%
Interest expense			(447.5	)			(497.7	)		-10%
Other income (expense) (b)			(84.5	)			70.5			NM
			(528.8	)			(421.3	)		26%
Loss before income taxes and equity earnings in affiliates			(411.2	)			(297.4	)		38%
Income tax benefit			(131.4	)			(145.5	)		-10%
Equity earnings in affiliates (a)			26.8				35.0			-23%
Net loss			(253.0	)			(116.9	)		116%
Less: Net income attributable to noncontrolling interests			35.9				47.5			-24%
Net loss attributable to First Data Corporation		$	(288.9	)		$	(164.4	)		76%
(See accompanying notes)

FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)
		Nine months ended September 30,
			2009				2008			Change
Revenues:
Transaction and processing service fees (a):
Merchant related services		$	2,199.3			$	2,037.1			8%
Check services			261.6				292.1			-10%
Card services			1,376.5				1,539.6			-11%
Other services			380.7				416.5			-9%
Investment income, net			0.3				67.3			NM
Product sales and other			568.6				641.6			-11%
Reimbursable debit network fees, postage and other			1,941.0				1,500.6			29%
			6,728.0				6,494.8			4%
Expenses:
Cost of services (exclusive of items shown below)			2,144.5				2,152.9			0%
Cost of products sold			224.6				231.4			-3%
Selling, general and administrative			1,035.2				1,040.3			0%
Reimbursable debit network fees, postage and other			1,941.0				1,500.6			29%
Depreciation and amortization			1,067.1				996.8			7%
Other operating expenses:
Restructuring, net			44.4				15.9			NM
Impairments			7.7				29.6			NM
Litigation and regulatory settlements			(2.7	)			-			NM
			6,461.8				5,967.5			8%
Operating profit			266.2				527.3			-50%
Interest income			9.6				21.5			-55%
Interest expense			(1,345.3	)			(1,466.5	)		-8%
Other income (expense) (b)			(64.8	)			33.7			NM
			(1,400.5	)			(1,411.3	)		-1%
Loss before income taxes and equity earnings in affiliates			(1,134.3	)			(884.0	)		28%
Income tax benefit			(389.0	)			(345.4	)		13%
Equity earnings in affiliates (a)			70.8				108.7			-35%
Net loss			(674.5	)			(429.9	)		57%
Less: Net income attributable to noncontrolling interests			41.6				116.8			-64%
Net loss attributable to First Data Corporation		$	(716.1	)		$	(546.7	)		31%
(See accompanying notes)

FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
		Three months ended September 30,
			2009				2008			Change
Revenues:
Retail and Alliance Services		$	796.7			$	833.0			-4%
Financial Services (c)			339.3				380.3			-11%
International (c)			414.6				462.3			-10%
Integrated Payment Systems			(5.4	)			(32.9	)		-84%
Subtotal segment revenues			1,545.2				1,642.7			-6%
All Other and Corporate			58.6				86.4			-32%
Adjustments to reconcile to Adjusted revenue:
Official check and money order revenues (d)			5.4				32.9			-84%
Eliminations (e)			(13.9	)			(16.0	)		NM
Adjusted revenue			1,595.3				1,746.0			-9%
Adjustments to reconcile to Consolidated revenues: (f)
Divested businesses (c)			10.7				36.1			NM
Adjustments for non-wholly owned entities (g)			53.1				(117.5	)		NM
Official check and money order revenues			(5.4	)			(32.9	)		-84%
ISO commission expense			70.0				21.3			NM
Reimbursable debit network fees, postage and other			719.5				511.0			41%
Consolidated revenues		$	2,443.2			$	2,164.0			13%
Segment EBITDA:
Retail and Alliance Services		$	304.4			$	357.8			-15%
Financial Services (c)			148.2				194.6			-24%
International (c)			106.5				140.9			-24%
Integrated Payment Systems			-				-			NM
Subtotal segment adjusted EBITDA			559.1				693.3			-19%
All Other and Corporate			(27.1	)			(4.8	)		NM
Adjusted EBITDA			532.0				688.5			-23%
Adjustments to reconcile to Loss before income taxes and equity earnings in affiliates: (f)
Divested businesses (c)			8.1				16.9			NM
Adjustments for non-wholly owned entities (g)			16.7				(58.2	)		NM
Depreciation and amortization			(372.0	)			(338.9	)		10%
Interest expense			(447.5	)			(497.7	)		-10%
Interest income			3.2				5.9			-46%
Other items (h)			(103.1	)			24.9			NM
Stock based compensation			(4.7	)			(8.9	)		-47%
Official check and money order EBITDA			(10.5	)			(42.2	)		-75%
Cost of data center, technology and savings initiatives			(26.3	)			(78.0	)		NM
KKR merger related items			(7.1	)			(9.7	)		NM
Eliminations			-				-			NM
Loss before income taxes and equity earnings in affiliates		$	(411.2	)		$	(297.4	)		38%
Segment depreciation and amortization:
Retail and Alliance Services		$	189.4			$	226.1			-16%
Financial Services (c)			80.5				77.1			4%
International (c)			72.1				67.9			6%
Integrated Payment Systems			0.1				0.1			0%
Subtotal segment depreciation and amortization			342.1				371.2			-8%
All Other and Corporate			20.3				25.2			-19%
			362.4				396.4			-9%
Adjustments to reconcile to consolidated depreciation and amortization:
Divested businesses (c)			1.9				3.9			NM
Adjustments for non-wholly owned entities (g)			26.3				(8.1	)		NM
Amortization of initial payments for new contracts			7.7				3.5			120%
Total consolidated depreciation and amortization (a)		$	398.3			$	395.7			1%
(See accompanying notes)

FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
		Nine months ended September 30,
			2009				2008			Change
Revenues:
Retail and Alliance Services		$	2,243.3			$	2,457.4			-9%
Financial Services (c)			1,089.9				1,138.3			-4%
International (c)			1,145.6				1,316.5			-13%
Integrated Payment Systems			(4.8	)			38.8			NM
Subtotal segment revenues			4,474.0				4,951.0			-10%
All Other and Corporate			186.6				266.8			-30%
Adjustments to reconcile to Adjusted revenue:
Official check and money order revenues (d)			4.8				(38.8	)		NM
Eliminations (e)			(42.4	)			(47.2	)		NM
Adjusted revenue			4,623.0				5,131.8			-10%
Adjustments to reconcile to Consolidated revenues: (f)
Divested businesses (c)			43.1				117.3			NM
Adjustments for non-wholly owned entities (g)			(57.3	)			(354.6	)		NM
Official check and money order revenues			(4.8	)			38.8			NM
ISO commission expense			183.0				60.9			NM
Reimbursable debit network fees, postage and other			1,941.0				1,500.6			29%
Consolidated revenues		$	6,728.0			$	6,494.8			4%
Segment EBITDA:
Retail and Alliance Services		$	895.2			$	1,041.5			-14%
Financial Services (c)			497.3				557.1			-11%
International (c)			293.0				339.5			-14%
Integrated Payment Systems			-				-			NM
Subtotal segment adjusted EBITDA			1,685.5				1,938.1			-13%
All Other and Corporate			(84.1	)			(13.3	)		NM
Adjusted EBITDA			1,601.4				1,924.8			-17%
Adjustments to reconcile to Loss before income taxes and equity earnings in affiliates: (f)
Divested businesses (c)			22.1				50.9			NM
Adjustments for non-wholly owned entities (g)			(57.6	)			(199.3	)		NM
Depreciation and amortization			(1,067.1	)			(996.8	)		7%
Interest expense			(1,345.3	)			(1,466.5	)		-8%
Interest income			9.6				21.5			-55%
Other items (h)			(114.2	)			(11.8	)		NM
Stock based compensation			(13.8	)			(19.5	)		-29%
Official check and money order EBITDA			(21.1	)			8.2			NM
Cost of data center, technology and savings initiatives			(127.5	)			(162.3	)		NM
KKR merger related items			(20.6	)			(33.2	)		NM
Eliminations			(0.2	)			-			NM
Loss before income taxes and equity earnings in affiliates		$	(1,134.3	)		$	(884.0	)		28%
Segment depreciation and amortization:
Retail and Alliance Services		$	562.7			$	677.9			-17%
Financial Services (c)			269.4				238.8			13%
International (c)			202.6				191.5			6%
Integrated Payment Systems			0.4				0.2			100%
Subtotal segment depreciation and amortization			1,035.1				1,108.4			-7%
All Other and Corporate			53.5				55.8			-4%
			1,088.6				1,164.2			-6%
Adjustments to reconcile to consolidated depreciation and amortization:
Divested businesses (c)			7.0				10.5			NM
Adjustments for non-wholly owned entities (g)			25.7				(24.0	)		NM
Amortization of initial payments for new contracts			18.1				6.9			162%
Total consolidated depreciation and amortization (a)		$	1,139.4			$	1,157.6			-2%
(See accompanying notes)

FIRST DATA CORPORATION
NOTES TO FINANCIAL SCHEDULES
(Unaudited)
		Effective January 1, 2009, the Company re-aligned the business and began making strategic and operating decisions with regards to assessing performance and allocating resources based on a new segment structure. Results for 2008 have been adjusted to reflect the new structure. Other amounts in 2008 have been adjusted to conform to current year presentation, the largest of which was the reclassification of certain expenses from "Cost of services" to "Selling, general and administrative".
		The Company adopted new accounting guidance effective January 1, 2009 which requires that earnings attributed to noncontrolling interests be reported as part of consolidated earnings and not as a separate component of income or expense. The Company's Consolidated Statement of Operations for 2008 has been revised to conform to the presentation requirements of the new accounting guidance.
		Beginning in the third quarter 2009 the Company changed the financial reports provided to its Chief Executive Officer to assess the performance of the Company’s business segments. The segments have not changed but the presentation of the results has changed. Results in prior periods have been adjusted to conform to this presentation. Segment revenue for all segments now excludes reimbursable debit network fees, postage and other revenue and the Retail and Alliance Services segment revenues are now presented on a proportionate consolidation basis with commission payments to certain ISO’s now reflected as contra revenue. Segment earnings now exclude depreciation and amortization expenses, stock based compensation expense, Official check and money order businesses’ EBITDA, cost of data center technology and savings initiatives and KKR merger related items to arrive at segment EBITDA. The Retail and Alliance Services segment EBITDA is now presented on a proportionate consolidation basis. Refer to the Company’s Quarterly Report on Form 10-Q filed with the Securities Exchange Commission for a more detailed description to the adjustments noted above.
(a)		Includes amortization of customer contracts which is recorded as a contra-revenue within "Transaction and processing service fees" of $7.7 million and $18.1 million for the three and nine months ended September 30, 2009, respectively, and $3.5 million and $6.9 million for the three and nine months ended September 30, 2008, respectively, and amortization related to equity method investments described in note (d) below which is netted within the "Equity earnings in affiliates" line of $18.6 million and $54.2 million for the three and nine months ended September 30, 2009, respectively, and $53.3 million and $153.9 million for the three and nine months ended September 30, 2008, respectively.
(b)		Other income (expense) includes investment gains and (losses), derivative financial instruments gains and (losses), divestitures, net, non-operating foreign currency gains and (losses) and other.
(c)		The Company sold its debit and credit card issuing and acquiring processing business in Austria ("Austria") and its ownership interest in Active Business Services, Ltd ("Active"), both reported within the International segment, in August 2009 and July 2008, respectively, and its ownership interest in Peace Software (“Peace”), reported within the Financial Services segment, in October 2008. The International and Financial Services segment performance measures were adjusted for 2009 and 2008 to exclude the results of Austria, Active and Peace. Retail and Alliance Services segment performance measures have been adjusted for 2008 to reflect the sale of 12.5% of the Company's ownership interest in the Wells Fargo Merchant Services alliance that occurred on December 31, 2008.
(d)		Represents an adjustment to exclude the official check and money order businesses from adjusted revenue.
(e)		Represents elimination of intersegment revenue.
(f)		Reconciles the total segment and All Other and Corporate adjusted revenue to consolidated revenue or total segment and All Other and Corporate EBITDA to Loss before income taxes and equity earnings in affiliates as reported on the Consolidated Statements of Operations.
(g)		Represent the reversal of proportionate consolidation adjustments made to the Retail and Alliance Services segment revenue or segment EBITDA and equity earnings included in the International segment and All Other and Corporate revenue or segment EBITDA. Also includes the add back of net income attributable to noncontrolling interests excluded from International segment EBITDA.
(h)		Includes “Other operating expenses” and “Other income (expense)” as presented on the Consolidated Statements of Operations.

FIRST DATA CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
($ in millions)
Management believes the following non-GAAP measures provide meaningful supplemental information to assist investors in understanding our financial results and to better analyze trends in our underlying business. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. The non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliation to the corresponding GAAP financial measures, provide a more complete understanding of our business. Investors are strongly encouraged to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the most directly comparable GAAP financial measures is included below.
For the purpose of analyzing the company's liquidity an "Adjusted EBITDA" metric is used. "Adjusted EBITDA" is different than "Consolidated EBITDA" (or "Debt Covenant EBITDA") as defined in the Credit Agreement dated September 24, 2007 ("Senior Secured Credit Facilities") among the company, the lenders or other entities that are a party thereto from time to time and Credit Suisse, Cayman Islands Branch, as Administrative Agent and Collateral Agent. The differences primarily relate to adjustments for cost savings projected to be achieved within twelve months on an annualized basis, noncontrolling interests, losses on equity method investments, certain non capitalized acquisition expenses, and depreciation, amortization and income taxes within the company's equity method investments.
Non-GAAP measures for the company’s domestic segments include Segment Revenue further adjusted for revenue earned from reimbursements of pass-through costs such as debit network fees. Non-GAAP measures for the company's International segment include Segment Revenue further adjusted for revenue earned from reimbursements of pass-through costs such as debit network fees and for foreign exchange impact and Segment EBITDA further adjusted to exclude foreign exchange impact.
Management believes that these non-GAAP measures provide insight into the company's core performance.

															Three Months Ended September 30,
Consolidated																2009				2008			Change
Net loss attributable to First Data Corporation															$	(288.9	)		$	(164.4	)		76%
Interest expense, net (1)																444.3				491.8
Income tax benefit																(131.4	)			(145.5	)
Depreciation and amortization (2)																390.6				392.2
Stock based compensation (3)																4.7				8.9
Other items (4)																103.1				(24.9	)
Official check and money order EBITDA (5)																10.5				42.2
Cost of data center, technology and savings initiatives (6)																26.3				78.0
KKR merger related items (7)																7.1				9.7
Divested businesses (8)																(8.1	)			(16.9	)
Adjustments for non-wholly owned entities (9)																(26.2	)			17.4
Adjusted EBITDA																532.0				688.5			-23%
Foreign exchange impact (10)																15.0				-
Royalty revenue																(0.8	)			(26.4	)
Credit losses																26.2				6.4
															$	572.4			$	668.5			-14%
															Three Months Ended September 30,
Retail and Alliance Services																2009				2008			Change
Segment Revenue															$	796.7			$	833.0			-4%
Reimbursables																498.8				410.8
Segment Revenue including reimbursables															$	1,295.5			$	1,243.8			4%
															Three Months Ended September 30,
Financial Services																2009				2008			Change
Segment Revenue															$	339.3			$	380.3			-11%
Reimbursables																148.5				178.7
Segment Revenue including reimbursables															$	487.8			$	559.0			-13%
															Three Months Ended September 30,
International																2009				2008			Change
Segment Revenue															$	414.6			$	462.3			-10%
Foreign exchange impact (10)																41.3				-
Segment Revenue on a constant currency basis															$	455.9			$	462.3			-1%
Segment EBITDA															$	106.5			$	140.9			-24%
Foreign exchange impact (10)																15.0				-
Segment EBITDA on a constant currency basis															$	121.5			$	140.9			-14%
Margin																25.7%				30.5%
Margin on a constant currency basis																26.7%				30.5%

(1)	Includes interest expense and interest income.
(2)	Excludes amortization of initial payments for new contracts.
(3)	Stock based compensation recognized as expense.
(4)	Includes net restructuring, impairments, litigation and regulatory settlements, investment gains and losses, derivative financial instruments gains and losses, net divestitures and non-operating foreign currency gains and losses as applicable to the periods presented.
(5)	Represents an adjustment to exclude the official check and money order businesses from EBITDA due to the Company's wind down of these businesses.
(6)	Represents implementation costs associated with initiatives to reduce operating expenses including items such as platform and data center consolidation initiatives in the International segment, expense related to the reorganization of global application development resources, expense associated with domestic data center consolidation initiatives and planned workforce reduction expenses, as well as certain platform development and other costs directly associated with the termination of the Chase Paymentech alliance, all of which are considered nonrecurring projects (excludes costs accrued in purchase accounting).
(7)	Represents the exclusion of third party expenses including legal, accounting, and other advisory fees incurred in connection with the merger of the Company with an affiliate of KKR (“the merger”) and the debt issued thereunder, KKR annual sponsor fees for management, consulting, financial and other advisory services and the effect of purchase accounting associated with the merger on EBITDA which is primarily the result of revenue recognition adjustments.
(8)	Adjustment to exclude the EBITDA of divestures through September 30, 2009 as if these businesses had been divested for all periods presented.
(9)	Net adjustment to reflect First Data’s proportionate share of alliance EBITDA within the Retail and Alliance Services segment.
(10)	Foreign exchange impact represents the difference between actual 2009 and 2009 calculated using 2008 exchange rates.

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