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Segment Information (Tables)
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Schedule of operating segment results
The following tables present the Company’s reportable segment results for the three and six months ended June 30, 2017 and 2016:
 
 
Three months ended June 30, 2017
(in millions)
 
Global Business Solutions
 
Global Financial Solutions
 
Network & Security Solutions
 
Corporate
 
Total
Revenues:
 
 

 
 

 
 

 
 

 
 

Transaction and processing service fees
 
$
823

 
$
347

 
$
330

 
$
—

 
$
1,500

Product sales and other
 
235

 
55

 
51

 
—

 
341

Equity earnings in affiliates
 
8

 
—

 
—

 
—

 
8

Total segment revenues
 
$
1,066

 
$
402

 
$
381

 
$
—

 
$
1,849

Depreciation and amortization
 
$
106

 
$
90

 
$
31

 
$
4

 
$
231

Segment EBITDA
 
483

 
167

 
180

 
(44
)
 
786

Other operating expenses and other income (expense) excluding divestitures
 
(11
)
 
(5
)
 
(1
)
 
(14
)
 
(31
)

 
 
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


 
 
Six months ended June 30, 2017
(in millions)
 
Global Business Solutions
 
Global Financial Solutions
 
Network & Security Solutions
 
Corporate
 
Total
Revenues:
 
 

 
 

 
 

 
 

 
 

Transaction and processing service fees
 
$
1,566

 
$
694

 
$
646

 
$
—

 
$
2,906

Product sales and other
 
454

 
101

 
96

 
—

 
651

Equity earnings in affiliates
 
17

 
—

 
—

 
—

 
17

Total segment revenues
 
$
2,037

 
$
795

 
$
742

 
$
—

 
$
3,574

Depreciation and amortization
 
$
212

 
$
175

 
$
61

 
$
5

 
$
453

Segment EBITDA
 
865

 
322

 
336

 
(86
)
 
1,437

Other operating expenses and other income (expense) excluding divestitures
 
(21
)
 
(7
)
 
(2
)
 
(24
)
 
(54
)

 
 
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
)
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 and six months ended June 30, 2017 and 2016:
 
 
Three months ended 
 June 30,
 
Six months ended 
 June 30,
(in millions)
 
2017
 
2016
 
2017
 
2016
Total segment revenues
 
$
1,849

 
$
1,798

 
$
3,574

 
$
3,491

Adjustments:
 
 
 
 
 
 
 
 
Non-wholly owned entities(a) 
 
25

 
20

 
35

 
34

Independent sales organizations (ISOs) commission expense(b)
 
161

 
158

 
308

 
321

Reimbursable debit network fees, postage, and other
 
990

 
952

 
1,909

 
1,859

Consolidated revenues
 
$
3,025

 
$
2,928

 
$
5,826

 
$
5,705

 
 
 
 
 
 
 
 
 
Total segment EBITDA
 
$
786

 
$
746

 
$
1,437

 
$
1,382

Adjustments:
 
 
 
 
 
 
 
 
Non-wholly owned entities(a)
 
6

 
7

 
12

 
17

Depreciation and amortization
 
(237
)
 
(238
)
 
(465
)
 
(476
)
Interest expense, net
 
(238
)
 
(284
)
 
(472
)
 
(547
)
Loss on debt extinguishment
 
(15
)
 
(9
)
 
(71
)
 
(55
)
Other items(c)
 
(33
)
 
14

 
(59
)
 
(21
)
Income tax expense
 
(28
)
 
(28
)
 
(40
)
 
(33
)
Stock-based compensation
 
(56
)
 
(56
)
 
(121
)
 
(171
)
Net income attributable to First Data Corporation
 
$
185

 
$
152

 
$
221

 
$
96

(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 and six months ended June 30, 2017 and 2016:
 
 
Three months ended 
 June 30,
 
Six months ended 
 June 30,
(in millions)
 
2017
 
2016
 
2017
 
2016
Segment depreciation and amortization
 
$
231

 
$
231

 
$
453

 
$
459

Adjustments for non-wholly owned entities
 
18

 
19

 
35

 
38

Amortization of initial payments for new contracts(a)
 
19

 
16

 
38

 
31

Total consolidated depreciation and amortization per unaudited consolidated statements of cash flows
 
268

 
266

 
526

 
528

Amortization of equity method investments(b)
 
(12
)
 
(12
)
 
(23
)
 
(21
)
Amortization of initial payments for new contracts(a)
 
(19
)
 
(16
)
 
(38
)
 
(31
)
Total consolidated depreciation and amortization per unaudited consolidated statements of operations
 
$
237

 
$
238

 
$
465

 
$
476


(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.