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SEC Filings

10-Q
FIRST DATA CORP filed this Form 10-Q on 10/31/2018
Entire Document
 
FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

 
 
Nine months ended September 30, 2018
(in millions, except per share amounts)
 
As Reported
 
Adjustments
 
Amounts Without Adoption of ASC 606
Revenues:
 
 
 
 
 
 
Revenues excluding reimbursable items
 
$
6,486

 
$
(119
)
 
$
6,367

   Reimbursable items
 
613

 
2,640

 
3,253

Total revenues
 
7,099

 
2,521

 
9,620

Expenses:
 
 
 
 
 
 
Total expenses excluding reimbursable items
 
5,125

 
(94
)
 
5,031

Reimbursable items
 
613

 
2,640

 
3,253

Total expenses
 
5,738

 
2,546

 
8,284

Operating profit
 
1,361

 
(25
)
 
1,336

Interest expense, net
 
(698
)
 
—

 
(698
)
Loss on debt extinguishment
 
(3
)
 
—

 
(3
)
Other income
 
201

 
—

 
201

Income before income taxes and equity earnings in affiliates
 
861

 
(25
)
 
836

Income tax expense
 
44

 
(6
)
 
38

Equity earnings in affiliates
 
167

 
—

 
167

Net income
 
984

 
(19
)
 
965

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest
 
141

 
—

 
141

Net income attributable to First Data Corporation
 
$
843

 
$
(19
)
 
$
824

 
 
 
 
 
 
 
Net income attributable to First Data Corporation per share:
 
 
 
 
 
 
Basic
 
$
0.91

 
$
(0.02
)
 
$
0.89

Diluted
 
$
0.88

 
$
(0.02
)
 
$
0.86


The adoption of the New Revenue Standard had an immaterial impact on the Company’s unaudited consolidated balance sheet and unaudited consolidated statement of cash flows as of and for the three and nine months ended September 30, 2018. See note 3 "Revenue Recognition" for more information.

Recently Issued Accounting Guidance

Leases

In February 2016, the FASB issued guidance which requires lessees to recognize most leases on their balance sheets. The guidance also modifies the classification criteria and the accounting for sales-type and direct financing leases for lessors and provides new presentation and disclosure requirements for both lessees and lessors. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company will adopt the new standard on January 1, 2019. While the Company continues to assess all of the effects of the adoption of the guidance, the Company does not believe that the adoption of the new standard will have a material impact on its consolidated financial statements.
Credit Losses
In June 2016, the FASB issued guidance that will change the accounting for credit loss impairment. Under the new guidance, companies are required to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

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