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Segment Information (Tables)
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Schedule of operating segment results
The following tables present the Company’s reportable segment results for the three months ended March 31, 2017 and 2016:
 
 
Three months ended March 31, 2017
(in millions)
 
Global Business Solutions
 
Global Financial Solutions
 
Network & Security Solutions
 
Corporate
 
Total
Revenues:
 
 

 
 

 
 

 
 

 
 

Transaction and processing service fees
 
$
743

 
$
347

 
$
316

 
$
—

 
$
1,406

Product sales and other
 
219

 
46

 
45

 
—

 
310

Equity earnings in affiliates
 
9

 
—

 
—

 
—

 
9

Total segment revenues
 
$
971

 
$
393

 
$
361

 
$
—

 
$
1,725

Depreciation and amortization
 
$
106

 
$
85

 
$
30

 
$
1

 
$
222

Segment EBITDA
 
382

 
155

 
156

 
(42
)
 
651

Other operating expenses and other income (expense) excluding divestitures
 
(10
)
 
(2
)
 
(1
)
 
(10
)
 
(23
)

 
 
Three months ended March 31, 2016
(in millions)
 
Global Business Solutions
 
Global Financial Solutions
 
Network & Security Solutions
 
Corporate
 
Total
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

Segment EBITDA
 
376

 
155

 
151

 
(46
)
 
636

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

 
(2
)
 
—

 
(15
)
Schedule of reconciliation of reportable segment amounts to the consolidated balances
The following table presents a reconciliation of reportable segment amounts to the Company’s consolidated balances for the three months ended March 31, 2017 and 2016:
 
 
Three months ended 
 March 31,
(in millions)
 
2017
 
2016
Total segment revenues
 
$
1,725

 
$
1,693

Adjustments:
 
 
 
 
Non wholly owned entities (a) 
 
10

 
14

Independent sales organizations (ISOs) commission expense (b)
 
147

 
163

Reimbursable debit network fees, postage, and other
 
919

 
907

Consolidated revenues
 
$
2,801

 
$
2,777

 
 
 
 
 
Total segment EBITDA
 
$
651

 
$
636

Adjustments:
 
 
 
 
Non wholly owned entities (a)
 
6

 
10

Depreciation and amortization
 
(228
)
 
(238
)
Interest expense, net
 
(234
)
 
(263
)
Loss on debt extinguishment
 
(56
)
 
(46
)
Other items (c)
 
(26
)
 
(35
)
Income tax expense
 
(12
)
 
(5
)
Stock-based compensation
 
(65
)
 
(115
)
Net income (loss) attributable to First Data Corporation
 
$
36

 
$
(56
)

(a)
Net adjustment to reflect the Company's proportionate share of the results of the Company's investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. Segment revenue for the Company's significant affiliates is reflected based on the Company's proportionate share of the results of the Company's investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. For other affiliates, the Company includes 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, non-normal course litigation and regulatory settlements, debt issuance expenses and “Other income (expense)" as presented in the unaudited consolidated statements of operations, which includes divestitures, derivative gains (losses), non-operating foreign currency gains (losses), and other, as applicable to the periods presented.
Schedule of reconciliation of reportable segment depreciation and amortization amounts to the consolidated balances
The following table presents a reconciliation of reportable segment depreciation and amortization expense to the Company’s consolidated balances in the unaudited consolidated statements of cash flows for the three months ended March 31, 2017 and 2016:
 
 
Three months ended 
 March 31,
(in millions)
 
2017
 
2016
Segment depreciation and amortization
 
$
222

 
$
228

Adjustments for non wholly owned entities
 
17

 
19

Amortization of initial payments for new contracts (a)
 
19

 
15

Total consolidated depreciation and amortization per unaudited consolidated statements of cash flows
 
258

 
262

Amortization of equity method investments (b)
 
(11
)
 
(9
)
Amortization of initial payments for new contracts (a)
 
(19
)
 
(15
)
Total consolidated depreciation and amortization per unaudited consolidated statements of operations
 
$
228

 
$
238



(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.