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Segment Information
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information

For a detailed discussion of the Company’s principles and its operating segments refer to note 7 “Segment Information” in the Company’s consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

The following tables present the Company’s operating segment results for the periods presented:
 
 
Three months ended March 31, 2016
(in millions)
 
Global Business Solutions
 
Global Financial Solutions
 
Network & Security Solutions
 
Corporate
 
Totals
Revenues:
 
 

 
 

 
 

 
 

 
 

Transaction and processing service fees
 
$
755

 
$
337

 
$
313

 
$
—

 
$
1,405

Product sales and other
 
189

 
49

 
39

 
—

 
277

Equity earnings in affiliates
 
11

 
—

 
—

 
—

 
11

Total segment revenues
 
$
955

 
$
386

 
$
352

 
$
—

 
$
1,693

Depreciation and amortization
 
$
103

 
$
94

 
$
27

 
$
4

 
$
228

Adjusted EBITDA
 
376

 
155

 
151

 
(46
)
 
636

Other operating expenses and Other income (expense) excluding divestitures
 
(17
)
 
4

 
(2
)
 
—

 
(15
)
 
 
Three months ended March 31, 2015
(in millions)
 
Global Business Solutions
 
Global Financial Solutions
 
Network & Security Solutions
 
Corporate
 
Totals
Revenues:
 
 

 
 

 
 

 
 

 
 

Transaction and processing service fees
 
$
769

 
$
319

 
$
305

 
$
—

 
$
1,393

Product sales and other
 
187

 
38

 
31

 
—

 
256

Equity earnings in affiliates
 
6

 
—

 
—

 
—

 
6

Total segment revenues
 
$
962

 
$
357

 
$
336

 
$
—

 
$
1,655

Depreciation and amortization
 
$
119

 
$
97

 
$
21

 
$
8

 
$
245

Adjusted EBITDA
 
360

 
119

 
130

 
(46
)
 
563

Other operating expenses and Other income (expense) excluding divestitures
 
9

 
(3
)
 
—

 
27

 
33



The following table presents a reconciliation of reportable segment amounts to the Company’s consolidated balances for the periods presented:
 
 
Three months ended 
 March 31,
(in millions)
 
2016
 
2015
Total segment revenues:
 
$
1,693

 
$
1,655

Adjustments for non wholly owned entities (a) 
 
14

 
20

ISOs commission expense (b)
 
163

 
147

Reimbursable debit network fees, postage, and other
 
907

 
873

Total revenues
 
$
2,777

 
$
2,695

 
 
 
 
 
Total Adjusted EBITDA
 
$
636

 
$
563

Adjustments to reconcile to Net loss attributable to First Data Corporation:
 
 
 
 
Adjustments for non wholly owned entities (a)
 
10

 
7

Depreciation and amortization
 
(238
)
 
(251
)
Interest expense, net
 
(263
)
 
(406
)
Loss on debt extinguishment
 
(46
)
 
—

Other items (c)
 
(35
)
 
(15
)
Income tax expense
 
(5
)
 
(3
)
Stock-based compensation
 
(115
)
 
(7
)
Net loss attributable to First Data Corporation
 
$
(56
)
 
$
(112
)

(a)
Net adjustment to reflect the Company's proportionate share of alliance revenue and adjusted EBITDA and amortization related to equity method investments not included in adjusted EBITDA.
(b)
Reported within "Selling, general, and administrative expense" in the unaudited consolidated statements of operations.
(c)
Includes adjustments to exclude the official check and money order businesses due to the Company's wind down of these businesses, restructuring, certain retention bonuses, non-normal course litigation and regulatory settlements, debt issuance expenses, and “Other income" as presented in the unaudited consolidated statements of operations, which includes divestitures, impairments, derivative gains and (losses), non-operating foreign currency gains (losses), cost of alliance conversions, Kohlberg, Kravis, and Roberts (KKR) fees, and debt issuance costs.

The following table presents a reconciliation of reportable segment depreciation and amortization amounts to the Company’s consolidated balances in the unaudited consolidated statements of cash flows for the periods presented:
 
 
Three months ended 
 March 31,
(in millions)
 
2016
 
2015
Segment depreciation and amortization
 
$
228

 
$
245

Adjustments for non wholly owned entities
 
19

 
21

Amortization of initial payments for new contracts (a)
 
15

 
11

Total consolidated depreciation and amortization per unaudited consolidated statements of cash flows
 
262

 
277

Amortization of equity method investments (b)
 
(9
)
 
(15
)
Amortization of initial payments for new contracts (a)
 
(15
)
 
(11
)
Total consolidated depreciation and amortization per unaudited consolidated statements of operations
 
$
238

 
$
251



(a)
Included in "Transaction and processing service fees" as contra-revenue in the Company's unaudited consolidated statements of operations.
(b)
Included in "Equity earnings in affiliates" in the Company's unaudited consolidated statements of operations.