Print Page  |  Close Window

SEC Filings

10-Q
FIRST DATA CORP filed this Form 10-Q on 07/30/2018
Entire Document
 

Selling, general, and administrative
 
 
Three months ended June 30,
 
Six months ended June 30,
(in millions)
 
2018
 
2017
 
Percent Change
 
Constant Currency Percent Change
 
2018
 
2017
 
Percent Change
 
Constant Currency Percent Change
Sales and distribution incentives(a)
 
$
357

 
$
223

 
60
 %
 
 
 
$
659

 
$
426

 
55
 %
 
 
Salaries, wages, bonus, and other(b)
 
172

 
163

 
6
 %
 
 
 
349

 
339

 
3
 %
 
 
Stock-based compensation(c)
 
48

 
40

 
20
 %
 
 
 
106

 
86

 
23
 %
 
 
Professional services (d)
 
40

 
27

 
48
 %
 
 
 
73

 
50

 
46
 %
 
 
Other
 
66

 
67

 
(1
)%
 
 
 
143

 
145

 
(1
)%
 
 
Selling, general, and administrative expense
 
$
683

 
$
520

 
31
 %
 
31
%
 
$
1,330

 
$
1,046

 
27
 %
 
26
%
(a)
Increase in the three months ended June 30, 2018 is related to adoption of the New Revenue Standard of $46 million, acquisition of CardConnect and BluePay of $44 million, and growth in business. Increase in the six months ended June 30, 2018 is related to adoption of the New Revenue Standard of $91 million, acquisition of CardConnect and BluePay of $79 million, and growth in business.
(b)
Increase due to $22 million and $44 million for the three and six months ended June 30, 2018, respectively related to acquisition of CardConnect and BluePay offset by cost saving initiatives.
(c)
The three and six months ended June 30, 2018 increased due to equity awards granted as a result of the CardConnect and BluePay acquisitions and retention awards to FDC's executive management during the second half of 2017.
(d)
Increase for the three months ended June 30, 2018 is related to outside consulting fees. Increase for the six months ended June 30, 2018 is related to acquisitions of CardConnect and BluePay of $3 million, legal fees of $8 million and the remaining increase is due to outside consulting fees.

Depreciation and amortization
 
 
Three months ended June 30,
 
Six months ended June 30,
(in millions)
 
2018
 
2017
 
Percent Change
 
Constant Currency Percent Change
 
2018
 
2017
 
Percent Change
 
Constant Currency Percent Change
Depreciation expense
 
$
81

 
$
79

 
3
%
 
 
 
$
163

 
$
155

 
5
%
 
 
Amortization expense
 
174

 
158

 
10
%
 
 
 
342

 
310

 
10
%
 
 
Depreciation and amortization(a)
 
$
255

 
$
237

 
8
%
 
8
%
 
$
505

 
$
465

 
9
%
 
8
%
(a)
The increase in the three and six months ended June 30, 2018 includes $22 million and $45 million respectively, related to the acquisition of CardConnect and BluePay partially offset by a reduction in amortization expense on intangibles arising from the KKR acquisition of First Data.

Other operating expenses
 
 
Three months ended June 30,
 
Six months ended June 30,
(in millions)
 
2018
 
2017
 
Percent Change
 
Constant Currency Percent Change
 
2018
 
2017
 
Percent Change
 
Constant Currency Percent Change
Restructuring, net(a)
 
$
16

 
$
16

 
 %
 
 
 
$
48

 
$
39

 
23
 %
 
 
Deal and deal integration costs(a)
 
(4
)
 
5

 
NM

 
 
 
3

 
5

 
(40
)%
 
 
Asset impairment(a)
 

 
6

 
NM

 
 
 

 
6

 
NM

 
 
Customer related costs(a)
 
5

 

 
NM

 
 
 
25

 

 
NM

 
 
Other
 

 
2

 
(100
)%
 
 
 
1

 
1

 
 %
 
 
Other operating expenses
 
$
17

 
$
29

 
(41
)%
 
(37
)%
 
$
77

 
$
51

 
51
 %
 
53
%
(a)
Refer to note 9 "Other operating expenses" to our unaudited consolidated financial statements in Part I of this Form 10-Q for details regarding other operating expenses.

37