First Data 8-K Adoption of New Accounting Guidance & Adjustments to Segment Reporting Results

Exhibit 99.1

Supplemental Unaudited Information

Adoption of New Accounting Guidance & Adjustments to Segment Reporting Results

Supplemental Information

The exhibit herein is intended to provide additional information related to First Data Corporation’s (the “Company”) adoption of new guidance related to revenue recognition and retirement benefits accounting as well as adjustments to the Company’s segment revenues reporting. The 2017 financial information has been adjusted for these changes and included for supplemental purposes only. The adoption and related disclosures required by GAAP will be reported in the Company’s 2018 first quarter report on Form 10-Q.

The following describes the impacts to the 2017 adjusted consolidated and segment revenue from the New Revenue Standard, the New Retirement Standard, and the change in segment revenue.

New Revenue Standard

In May 2014, the FASB issued new guidance for revenue recognition, ASC 606 and ASC 340-40 (collectively referred to as the "New Revenue Standard") related to contracts with customers, except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. The new guidance provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services.

The Company adopted the New Revenue Standard on January 1, 2018, using the modified retrospective approach and, as a result, the Company's prior period results within its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q will not be restated to reflect the New Revenue Standard. Upon adoption, the accounting change will be applied to Q1 2018 and future periods with the cumulative adjustment recorded to retained earnings.

For the first quarter of 2018, the Company will record a cumulative adjustment to retained earnings of approximately $15 million to apply the New Revenue Standard. This net adjustment was principally driven by: (1) certain software arrangements being recognized earlier under the new standard; (2) changes related to costs to obtain contracts with customers including the related amortization period; and (3) the release of previously deferred revenue and costs associated with Clover devices that previously lacked standalone value.

The ongoing impact on consolidated revenue from the adoption of the New Revenue Standard is expected to be driven by changes in principal versus agent considerations, with the majority of the change in consolidated revenues reflecting PIN-debit and PINless debit transactions on a net basis, as opposed to the gross presentation utilized prior to the adoption of the New Revenue Standard.

The ongoing impact to segment revenues, as presented below in the adjusted 2017 financial information, is primarily driven by changes in principal versus agent considerations. Within the GBS segment, payments made to partners in a revenue sharing arrangement which were previously presented on a net basis, will be presented gross. Within the NSS segment, the accounting for certain Money Network arrangements, which were previously presented on a gross basis, will be presented net. The adoption of the New Revenue Standard did not have a material impact on GFS segment revenues.

New Retirement Standard

In March 2017, the FASB issued new guidance that requires employers that sponsor defined benefit plans for pensions and/or other post-retirement benefits to present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period (referred to as the “New Retirement Standard”). Companies must present the other components of the net periodic benefit cost separately from the line item that includes the service cost and outside of any subtotal of operating income.

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The Company adopted the New Retirement Standard on January 1, 2018, and will present the change to the statement of operations retrospectively. The service cost component will remain in "Cost of services" while all other components of the net periodic benefit cost will be presented as part of "Other income" in the consolidated statement of operations.

The adoption of the New Retirement Standard did not impact the Company’s net income, consolidated revenue, or segment revenue. The impact to segment EBITDA for 2017 would be a decrease of approximately $6 million.

Adjustment to Segment Reporting Results

Prior to January 1, 2018, the Company presented segment revenues net of certain items including revenue-based commission payments to Independent Sales Organizations (ISOs) and sales channels. The Company will no longer exclude ISO commissions from segment revenue as this change enhances the consistency of accounting methodologies amongst the Company's various distribution channels in the GBS segment. This change in segment reporting will be applied retrospectively.

Adjusted 2017 Financial Information

The tables below reconcile the financial information presented in the Company’s Form10-K as of December 31, 2017 to amounts adjusted for the application of the new revenue standard, the new pension standard, and First Data's modifications to its segment revenues.

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FIRST DATA CORPORATION

SEGMENT REVENUES and SEGMENT EBITDA

(Unaudited, in millions)

	Year ended December 31, 2017
	As Reported			New Revenue Standard Adjustments			Segment Reporting Adjustment - ISO Commissions		New Retirement Standard Adjustments			As Adjusted
GBS Segment
North America	$	3,262		$	131		$	552	$	—		$	3,945
EMEA	575			5			64		—			644
LATAM	273			27			—		—			300
APAC	152			2			21		—			175
Total GBS segment revenues	4,262			165			637		—			5,064
GBS EBITDA	1,824			(14		)	—		—			1,810
GFS Segment
North America	949			(2		)	—		—			947
EMEA	444			(2		)	—		—			442
LATAM	132			6			—		—			138
APAC	98			(9		)	—		—			89
Total GFS segment revenues	1,623			(7		)	—		—			1,616
GFS EBITDA	686			(1		)	—		(6		)	679
NSS Segment
EFT Network	487			1			—		—			488
Security and Fraud	449			6			—		—			455
Stored Value Network	405			(62		)	—		—			343
Other	202			—			—		—			202
Total NSS segment revenues	1,543			(55		)	—		—			1,488
NSS EBITDA	729			—			—		—			729
Corporate EBITDA	(167		)	—			—		—			(167		)
Total segment revenues	$	7,428		$	103		$	637	$	—		$	8,168
Total segment EBITDA	$	3,072		$	(15	)	$	—	$	(6	)	$	3,051

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FIRST DATA CORPORATION

QUARTERLY SEGMENT REVENUES and SEGMENT EBITDA

(Unaudited, in millions)

	Q1 2017														Q2 2017
	As Reported			New Revenue Standard Adjustments			Segment Reporting Adjustment - ISO Commissions		New Retirement Standard Adjustment			As Adjusted			As Reported			New Revenue Standard Adjustments			Segment Reporting Adjustment - ISO Commissions		New Retirement Standard Adjustment			As Adjusted
GBS Segment
North America	$	751		$	26		$	129	$	—		$	906		$	826		$	34		$	139	$	—		$	999
EMEA	127			1			13		—			141			140			2			16		—			158
LATAM	59			5			—		—			64			64			6			—		—			70
APAC	34			—			5					39			36			—			6					42
Total GBS segment revenues	971			32			147		—			1,150			1,066			42			161		—			1,269
GBS EBITDA	382			(8		)	—		—			374			483			(3		)	—		—			480
GFS Segment
North America	236			(2		)	—		—			234			233			2			—		—			235
EMEA	101			(1		)	—		—			100			110			1			—		—			111
LATAM	33			4			—		—			37			34			2			—		—			36
APAC	23			(2		)	—		—			21			25			(4		)	—		—			21
Total GFS segment revenues	393			(1		)	—		—			392			402			1			—		—			403
GFS EBITDA	155			—			—		(1		)	154			167			4			—		(2		)	169
NSS Segment
EFT Network	115			—			—		—			115			122			—			—		—			122
Security and Fraud	106			2			—		—			108			112			1			—		—			113
Stored Value Network	89			(16		)	—		—			73			93			(15		)	—		—			78
Other	51			—			—		—			51			54			—			—		—			54
Total NSS segment revenues	361			(14		)	—		—			347			381			(14		)	—		—			367
NSS EBITDA	156			—			—		—			156			180			—			—		—			180
Corporate EBITDA	(42		)	—			—		—			(42		)	(44		)	—			—		—			(44		)
Total segment revenues	$	1,725		$	17		$	147	$	—		$	1,889		$	1,849		$	29		$	161	$	—		$	2,039
Total segment EBITDA	$	651		$	(8	)	$	—	$	(1	)	$	642		$	786		$	1		$	—	$	(2	)	$	785
	Q3 2017														Q4 2017
	As Reported			New Revenue Standard Adjustments			Segment Reporting Adjustment - ISO Commissions		New Retirement Standard Adjustment			As Adjusted			As Reported			New Revenue Standard Adjustments			Segment Reporting Adjustment - ISO Commissions		New Retirement Standard Adjustment			As Adjusted
GBS Segment
North America	$	833		$	35		$	140	$	—		$	1,008		$	852		$	36		$	144	$	—		$	1,032
EMEA	150			2			17		—			169			158			—			18		—			176
LATAM	72			7			—		—			79			78			9			—		—			87
APAC	39			1			5					45			43			1			5					49
Total GBS segment revenues	1,094			45			162		—			1,301			1,131			46			167		—			1,344
GBS EBITDA	465			(2		)	—		—			463			494			(1		)	—		—			493
GFS Segment
North America	238			(2		)	—		—			236			242			—			—		—			242
EMEA	121			(1		)	—		—			120			112			(1		)	—		—			111
LATAM	33			—			—		—			33			32			—			—		—			32
APAC	24			(3		)	—		—			21			26			—			—		—			26
Total GFS segment revenues	416			(6		)	—		—			410			412			(1		)	—		—			411
GFS EBITDA	180			(4		)	—		(1		)	175			184			(1		)	—		(2		)	181
NSS Segment
EFT Network	122			1			—		—			123			128			—			—		—			128
Security and Fraud	115			1			—		—			116			116			2			—		—			118
Stored Value Network	106			(15		)	—		—			91			117			(16		)	—		—			101
Other	52			—			—		—			52			45			—			—		—			45
Total NSS segment revenues	395			(13		)	—		—			382			406			(14		)	—		—			392
NSS EBITDA	184			—			—		—			184			209			—			—		—			209
Corporate EBITDA	(42		)	—			—		—			(42		)	(39		)	—			—		—			(39		)
Total segment revenues	$	1,905		$	26		$	162	$	—		$	2,093		$	1,949		$	31		$	167	$	—		$	2,147
Total segment EBITDA	$	787		$	(6	)	$	—	$	(1	)	$	780		$	848		$	(2	)	$	—	$	(2	)	$	844

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FIRST DATA CORPORATION

REVENUES, NET INCOME, AND EBITDA RECONCILIATIONS

(Unaudited, in millions)

	Three months ended March 31, 2017			Three months ended June 30, 2017			Three months ended September 30, 2017			Three months ended December 31, 2017			Twelve months ended December 31, 2017
Consolidated revenues (As reported)	$	2,801		$	3,025		$	3,076		$	3,150		$	12,052
New Revenue Standard adjustments	(719		)	(776		)	(774		)	(788		)	(3,057		)
Consolidated revenues (As adjusted)	2,082			2,249			2,302			2,362			8,995
Adjustments:
Non-wholly owned entities	(10		)	(25		)	(14		)	(15		)	(64		)
ISOs commission expense	(147		)	(161		)	(162		)	(167		)	(637		)
Reimbursable debit network fees, postage and other	(919		)	(990		)	(995		)	(1,019		)	(3,923		)
Total adjustments (As reported)	(1,076		)	(1,176		)	(1,171		)	(1,201		)	(4,624		)
Non-wholly owned entities change	5			4			3			4			16
ISOs commission expense change	147			161			162			167			637
Reimbursable debit network fees and other change	731			801			797			815			3,144
Total adjustments (As adjusted)	(193		)	(210		)	(209		)	(215		)	(827		)
Total Segment revenues (As adjusted)	$	1,889		$	2,039		$	2,093		$	2,147		$	8,168
Net income attributable to First Data Corporation (As reported)	$	36		$	185		$	296		$	948		$	1,465
New Revenue Standard adjustments	(3		)	5			1			2			5
Net income attributable to First Data Corporation (As adjusted)	33			190			297			950			1,470
Adjustments
Non-wholly owned entities	(6		)	(6		)	(9		)	(9		)	(30		)
Depreciation and amortization	228			237			248			259			972
Interest expense, net	234			238			234			231			937
Loss on debt extinguishment	56			15			1			8			80
Other items	26			33			61			12			132
Income tax expense (benefit)	12			28			(106		)	(663		)	(729		)
Stock-based compensation	65			56			62			62			245
Total adjustments (As reported)	615			601			491			(100		)	1,607
Depreciation and amortization change	(2		)	(2		)	(2		)	(2		)	(8		)
Acquisition-related earnouts change	(3		)	(2		)	(5		)	(2		)	(12		)
Pension change	(1		)	(2		)	(1		)	(2		)	(6		)
Total adjustments (As adjusted)	609			595			483			(106		)	1,581
Total segment EBITDA (As adjusted)	$	642		$	785		$	780		$	844		$	3,051

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