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Acquisitions
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Business Combination Disclosure [Abstract]  
Acquisitions

2. Acquisitions

During the first quarter of 2011, the Company completed the acquisition of a controlling interest in Loyalty Partner (March 1, 2011) for total consideration of $616 million ($585 million plus $31 million in cash acquired). In addition, the Company may acquire the remaining noncontrolling equity interest (NCI) over a three-year period beginning at the end of 2013 at a price based on business performance, which currently has an estimated fair value of $150 million. Loyalty Partner is a leading marketing services company known for the loyalty programs it operates in Germany, Poland and India. Loyalty Partner also provides market analysis, operating platforms and consulting services that help merchants grow their businesses.

 

The Company purchased Accertify (November 10, 2010) and Revolution Money (January 15, 2010) for total consideration of $151 million and $305 million, respectively. Accertify is an online fraud solution provider, and Revolution Money, which was subsequently rebranded by the Company as Serve, is a provider of secure person-to-person payment services through an internet-based platform. These acquisitions did not have a significant impact on either the Company's consolidated results of operations or the segments in which they are reflected for the three and nine months ended September 30, 2011 and 2010.

 

The following table summarizes the assets acquired and liabilities assumed for these acquisitions as of the acquisition dates:

     Loyalty     Revolution
(Millions)  Partner (a) Accertify  Money
Goodwill $538 $131 $184
Definite-lived intangible assets  295  15  119
All other assets  206  11  7
  Total assets  1,039  157  310
  Total liabilities (including NCI)  423  6  5
Net assets acquired $616 $151 $305
           Corporate
Reportable operating segment  ICS  GNMS  & Other

  • Amounts have been updated from the first and second quarters of 2011 due to adjustments to the preliminary purchase price allocation. The final purchase price allocation will be completed in a subsequent quarter.

From time to time the Company may make smaller acquisitions that are not included in the table above.

 

(a) Represents loans modified in a TDR and related reserves. Refer to the Impaired Loans and Receivables discussion in Note 4 for further information.

(b) Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans and related reserves. The reserves include the results of analytical models that are specific to individual pools of loans and reserves for external environmental factors that apply broadly to all loans collectively evaluated for impairment and are not specific to any individual pool of loans.