EFTA01382843.pdf

S-1/A Table of Contents FIRST DATA CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) A summaiy of net pretax benefits (charges), incurred by segment, for each period is as follows: Pretax Benefit ((large) Global Global Network & Business Financial Security (In Solutions Solutions Solutions Corporate Totals Three months ended June 30.2015 Restructuring charges $ (5) $ (4) 5 — $ U()) $ (19) Restructuring accrual reversals Total pretax charge, net of reversals 5 (5) $ (4) $ — $ (10) $ (191 SILmodhasngrflunga215 Restnidunng charges $ (5) $ (4) $ (II ) $ (20) Restructuring accrual reversals Total pretax charge, net of reversals 5 (5) $ (4) $ $ III) $ (20) Three months ended June 30.2014 Restnicitinng charges $ (1) $ — $ 171 Rcstructunng accrual reversals 1 1 I 3 Total pretax charge. net of reversals $ — 1 (5) 5 (4) Six months ended June 30.2014 Rest' mitt] ing charges $ (1) $ — (I) $ ($) $ (Mt Restructuring accrual reversals 1 1 1 3 Total pretax charge, net of reversals $ - $ I $ (I) 5 (7) 5 (7) The following table summarizes the Company's utilization of restructuring accruals for the period pr seated: Employee (In millions) Severance Other Remaining accrual as of January 1, 2015 $ 12 $ I Expense provision 16 4 Cash payments and other (6) (4) Changes in estimates (I) Remaining accrual as of June 30, 2015 $ 21 $ 1 On May 4, 2015. the Company announced a strategic expense management initiative to optimize its annualized expense base by mid- 2016. Anticipated restructuring costs will be approximately $75 million, mainly cash, and will be recognized beginning in the second quarter of 2015. The net charge is expected to include costs for severance, retention and transition, asset impairments. professional seniors fees, and gains/losses on the sale of facilities The vast majority of the net charge will be related to personnel (severance, retention and transition). The Company incurred $19 million in charges during the second quarter related to this program. The second quarter did not include any meaningful savings as a result of this program. Note 4: Acquisitions On June 9, 2015, the Company acquired Transaction Wireless. Inc. (TWI) a provider of digital stored value products that offer gift card programs, loyalty incentives. and integrated marketing solutions for retailers, partners. and consumers. The purchase price was approximately $62 million in cash and S3 million in equity. The acquisition is reported as part of the Network & Security Solutions segment. F-83 http://wyne.see.gov/Archivestedgar/datat883980/000119312515334479/d31022dsla.htm[10/14/2015 9:06:38 AM] CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0082352 CONFIDENTIAL SONY GM_00228536 EFTA01382843