Segment Information (Tables)

6 Months Ended

Jun. 30, 2016

The following tables present the Company’s operating segment results for the periods presented:



	Three months ended June 30, 2016
(in millions)	Global Business Solutions		Global Financial Solutions		Network & Security Solutions		Corporate			Total
Revenues:
Transaction and processing service fees	$	819	$	341	$	321	$	—		$	1,481
Product sales and other	209		54		45		—			308
Equity earnings in affiliates	9		—		—		—			9
Total segment revenues	$	1,037	$	395	$	366	$	—		$	1,798
Depreciation and amortization	$	110	$	88	$	30	$	3		$	231
Segment EBITDA	448		160		166		(28		)	746
Other operating expenses and Other income (expense) excluding divestitures	39		—		—		(26		)	13



	Three months ended June 30, 2015
(in millions)	Global Business Solutions		Global Financial Solutions			Network & Security Solutions		Corporate			Total
Revenues:
Transaction and processing service fees	$	843	$	314		$	321	$	—		$	1,478
Product sales and other	203		39			35		—			277
Equity earnings in affiliates	10		—			—		—			10
Total segment revenues	$	1,056	$	353		$	356	$	—		$	1,765
Depreciation and amortization	$	122	$	98		$	22	$	4		$	246
Segment EBITDA	454		124			156		(32		)	702
Other operating expenses and Other income (expense) excluding divestitures	12		(4		)	—		(53		)	(45		)



	Six months ended June 30, 2016
(in millions)	Global Business Solutions		Global Financial Solutions		Network & Security Solutions			Corporate			Total
Revenues:
Transaction and processing service fees	$	1,574	$	678	$	634		$	—		$	2,886
Product sales and other	398		103		84			—			585
Equity earnings in affiliates	20		—		—			—			20
Total segment revenues	$	1,992	$	781	$	718		$	—		$	3,491
Depreciation and amortization	$	213	$	182	$	57		$	7		$	459
Segment EBITDA	824		315		317			(74		)	1,382
Other operating expenses and Other income (expense) excluding divestitures	22		4		(2		)	(26		)	(2		)



	Six months ended June 30, 2015
(in millions)	Global Business Solutions		Global Financial Solutions			Network & Security Solutions		Corporate			Total
Revenues:
Transaction and processing service fees	$	1,612	$	633		$	626	$	—		$	2,871
Product sales and other	390		77			66		—			533
Equity earnings in affiliates	16		—			—		—			16
Total segment revenues	$	2,018	$	710		$	692	$	—		$	3,420
Depreciation and amortization	$	241	$	195		$	43	$	12		$	491
Segment EBITDA	814		243			286		(78		)	1,265
Other operating expenses and Other income (expense) excluding divestitures	21		(7		)	—		(26		)	(12		)

Schedule of reconciliation of reportable segment amounts to the consolidated balances

The following table presents a reconciliation of the Company’s consolidated results to segment amounts for the periods presented:



	Three months ended June 30,						Six months ended June 30,
(in millions)	2016			2015			2016			2015
Consolidated revenues	$	2,928		$	2,872		$	5,705		$	5,567
Adjustments:
Non wholly owned entities (a)	(20		)	(20		)	(34		)	(40		)
ISOs commission expense (b)	(158		)	(161		)	(321		)	(308		)
Reimbursable debit network fees, postage, and other	(952		)	(926		)	(1,859		)	(1,799		)
Total segment revenues	$	1,798		$	1,765		$	3,491		$	3,420

Net income (loss) attributable to First Data Corporation	$	152		$	(26	)	$	96		$	(138	)
Adjustments:
Non wholly owned entities (a)	(7		)	(6		)	(17		)	(13		)
Depreciation and amortization	238			252			476			503
Interest expense, net	284			405			547			811
Loss on debt extinguishment	9			—			55			—
Other items (c)	(14		)	51			21			66
Income tax expense	28			10			33			13
Stock-based compensation	56			16			171			23
Total segment EBITDA	$	746		$	702		$	1,382		$	1,265

(a)

Net adjustment to reflect our proportionate share of the results of our investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. Segment revenue for our significant affiliates is reflected based on our proportionate share of the results of our investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. For other affiliates, we include equity earnings in affiliates, excluding amortization expense, in segment revenue.


(b)	Reported within "Selling, general, and administrative expense" in the unaudited consolidated statements of operations.

(c)

Includes restructuring, certain retention bonuses, non-normal course litigation and regulatory settlements, impairments, debt issuance expenses, Kohlberg Kravis Roberts & Co. (KKR) related items and “Other income (expense)" as presented in the unaudited consolidated statements of operations, which includes divestitures, derivative gains and (losses), non-operating foreign currency gains (losses), and the gain on Visa Europe share sale. KKR related items represent KKR annual sponsorship fees for management, consulting, financial and other advisory services. Upon completing the IPO in October 2015, the company is no longer obligated to pay KKR annual sponsorship fees.

Schedule of reconciliation of reportable segment depreciation and amortization amounts to the consolidated balances

The following table presents a reconciliation of segment depreciation and amortization amounts to the Company’s consolidated depreciation and amortization in the unaudited consolidated statements of cash flows for the periods presented:



	Three months ended June 30,						Six months ended June 30,
(in millions)	2016			2015			2016			2015
Segment depreciation and amortization	$	231		$	246		$	459		$	491
Adjustments for non wholly owned entities (a)	19			21			38			42
Amortization of initial payments for new contracts (b)	16			13			31			24
Total consolidated depreciation and amortization per unaudited consolidated statements of cash flows	266			280			528			557
Amortization of equity method investments (c)	(12		)	(15		)	(21		)	(30		)
Amortization of initial payments for new contracts (b)	(16		)	(13		)	(31		)	(24		)
Total consolidated depreciation and amortization per unaudited consolidated statements of operations	$	238		$	252		$	476		$	503


(a)	Adjustment to reflect depreciation and amortization attributable to noncontrolling interests.


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


(c)	Included in "Equity earnings in affiliates" in the Company's unaudited consolidated statements of operations.