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SEC Filings

10-Q
FIRST DATA CORP filed this Form 10-Q on 10/31/2018
Entire Document
 

PART I. FINANCIAL INFORMATION 
ITEM 1.                         FINANCIAL STATEMENTS
FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
 
Three months ended 
 
September 30,
 
Nine months ended 
 
September 30,
(in millions, except per share amounts)
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
Revenues excluding reimbursable items(a)
 
$
2,158

 
$
2,081

 
$
6,486

 
$
5,998

Reimbursable items
 
211

 
995

 
613

 
2,904

Total revenues
 
2,369

 
3,076

 
7,099

 
8,902

Expenses:
 
 
 
 
 
 
 
 
Cost of revenues (exclusive of items shown below)
 
741

 
794

 
2,271

 
2,356

Selling, general, and administrative
 
665

 
565

 
1,995

 
1,611

Depreciation and amortization
 
248

 
248

 
753

 
713

Other operating expenses, net
 
29

 
57

 
106

 
108

Total expenses excluding reimbursable items
 
1,683

 
1,664

 
5,125

 
4,788

Reimbursable items
 
211

 
995

 
613

 
2,904

Total expenses
 
1,894

 
2,659

 
5,738

 
7,692

Operating profit
 
475

 
417

 
1,361

 
1,210

Interest expense, net
 
(231
)
 
(233
)
 
(698
)
 
(702
)
Loss on debt extinguishment
 
(2
)
 
(1
)
 
(3
)
 
(72
)
Other income (expense)
 
202

 
(4
)
 
201

 
(7
)
Income before income taxes and equity earnings in affiliates
 
444

 
179

 
861

 
429

Income tax expense (benefit)
 
54

 
(106
)
 
44

 
(66
)
Equity earnings in affiliates
 
58

 
55

 
167

 
167

Net income
 
448

 
340

 
984

 
662

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest
 
47

 
44

 
141

 
145

Net income attributable to First Data Corporation
 
$
401

 
$
296

 
$
843

 
$
517

 
 
 
 
 
 
 
 
 
Net income attributable to First Data Corporation per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.43

 
$
0.32

 
$
0.91

 
$
0.57

Diluted
 
$
0.42

 
$
0.31

 
$
0.88

 
$
0.55

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
932

 
918

 
928

 
915

Diluted
 
965

 
944

 
956

 
938

(a)
Includes processing fees, administrative service fees, and other fees charged to merchant alliances accounted for under the equity method of $56 million and $159 million for the three and nine months ended September 30, 2018, respectively, and $56 million and $162 million for the comparable periods in 2017.

The 2018 results include the impact of adopting ASC 606 and ASC 340-40 (collectively, the New Revenue Standard). See note 1 "Basis of Presentation and Summary of Significant Accounting Policies" in the Company's unaudited consolidated financial statements included in Part I, Item 1 of this Form 10-Q for more information.

See notes to unaudited consolidated financial statements.

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