EFTA01382867.pdf

N- I/A 'fable of Contents WELLS FARGO MERCHANT SERVICES,LW (A Joint Venture) Financial Statements December 31,2014 and 2013 (Dollars In thousands, unless otherwise noted) (3) Intangibles Following is a summary of the Company's intangibles for the years ended December 31. 2014 and 2013: Intangible Aawts, Intangible Assets, Cross of Net of Accumulated Accumulated Accurnulated Amortization Amortization Amortization Beginning balance as of January 1, 2014 $ 2,370 $ (1.933) $ 437 Additions 340 340 Retirements (401) 401 Amortization — (298) (298) Ending balance as of December 31, 2014 $ 2.309 $ (1.830) $ 479 Beginning balance as of January 1.2013 $ 10,940 $ ( t0.071) $ 869 Additions 386 — 386 Retirements (8,956) 8,956 — Amortization — (818) (818) Ending balance as of December 31, 2013 2,370 $ (1.933) 437 For the years ended INzember 31, 2014 and 2013. amortization expense of $298 and $818, respectively, is included in other expenses in the statement of revenues and expens . (4) Related Party Transactions The Company's primary operations are conducted through FDMS. FDMS charges the Company fees for services provide) pursuant to an operating agreement (the "Operating Agreement") dated January 31. 2000. as amended and restated. The Members also agreed to perform certain additional management functions (the "Additional Services") of the Company. for which they will be reimbursed by the Company. 'These fees are included in cost of card services. COB of product sold and selling. general and administrative expenses within the statement of revenue and expense. The financial statements may not necessarily be indicative of the financial position that would have existed, or the results of operations or cash flows that would have occurred had the Company operated as an independent enterprise. During the years ended December 31. 2014 and 2013, the Company reimbursed FDMS and Wells Fargo for performing the Additional Services as follows: 2014 First Data Merchant Wells Fargo Services, Corporation Bank. NA Cost of card services 66,980 $ Cost of product sold 16.141 Selling. general and administrative 12,206 120.314 Total 95,327 $ 120,314 F-114 httplAvww.see.gevrArehivestedgarrdatatss3980/000119312515334479M31022dala.htm110/14/20i5 9:06:38 AM] CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0082387 CONFIDENTIAL SONY GM_00228571 EFTA01382867