FDC 2017 Annual Report

3 9 Gl o b al B usi n ess S ol uti o ns s e g m e nt r es ults T h e f oll o wi n g t a bl e dis pl a ys t ot al s e g m e nt r e v e n u e b y r e gi o n a n d ill ustr at es, o n a p er c e nt a g e b asis, t h e i m p a ct of f or ei g n c urr e n c y fl u ct u ati o ns o n r e v e n u e gr o wt h f or t h e p eri o ds pr es e nt e d: Ye a r E n d e d D e c e m b e r 3 1, 2 0 1 6 C o re G r o wt h ( D e cli n e) C u r re n c y I m p a ct (a) A c q uisiti o ns/ Dis p ositi o ns ( b) A c c o u nti n g C h a n g e (c) Ye a r E n d e d D e c e m b e r 3 1, 2 0 1 7 P e rc e nt C h a n g e R e p o rt e d C o nst a nt C u r re n c y P e rc e nt C h a n g e (i n milli o ns) R e v e n u es: N ort h A m eri c a $ 3, 1 7 6 $ ( 6 1) ( d) $ 1 $ 8 4 $ 6 2 $ 3, 2 6 2 3 % 3 % E M E A 5 5 0 2 5 (e) — — — 5 7 5 5 % 5 % L A T A M 1 7 8 1 0 1 (f) ( 6) — — 2 7 3 5 3 % 5 6 % A P A C 1 5 9 2 1 ( g) 3 ( 3 1) — 1 5 2 ( 4) % ( 6) % T ot al s e g m e nt r e v e n u e $ 4, 0 6 3 $ 8 6 $ ( 2) $ 5 3 $ 6 2 $ 4, 2 6 2 5 % 5 % ( a) C urr e n c y i m p a ct is t h e diff er e n c e b et w e e n t h e c urr e nt y e ar's a ct u al r es ults a n d t h e s a m e y e ar's r es ults c o n v ert e d wit h t h e pri or y e ar's f or ei g n e x c h a n g e r at e. C o nst a nt c urr e n c y p er c e nt a g e c h a n g e is a m e as ur e of r e v e n u e gr o wt h b ef or e f or ei g n c urr e n c y i m p a ct. ( b) N ort h A m eri c a r e v e n u e w as i m p a ct e d b y a c q uisiti o ns of C ar d C o n n e ct i n J ul y 2 0 1 7 a n d Bl u e P a y i n D e c e m b er 2 0 1 7. T h e A c q uisiti o ns/ Dis p ositi o ns c ol u m n i n cl u d es J ul y 2 0 1 6 t o D e c e m b er 2 0 1 6 a n d D e c e m b er 2 0 1 6 r e v e n u es f or C ar d C o n n e ct a n d Bl u e P a y, r es p e cti v el y, a n d c urr e nt p eri o d gro wt h f or C ar d C o n n e ct a n d Bl u e P a y is i n cl u d e d i n C or e Gr o wt h ( D e cli n e). A P A C b al a n c e r e pr es e nts r e v e n u e ass o ci at e d wit h t h e dis p ositi o n of t h e A ustr ali a n A T M b usi n ess i n S e pt e m b er 2 0 1 6. S e e n ot e 1 2 " A c q uisiti o ns a n d Dis p ositi o ns" t o o ur c o ns oli d at e d fi n a n ci al st at e m e nts i n P art II, It e m 8 of t his F or m 1 0- K f or a d diti o n al i nf or m ati o n. ( c) Eff e cti v e J a n u ar y 2 0 1 7, w e c h a n g e d o ur a c c o u nti n g f or Cl o v er h ar d w ar e s al es t o r e c o g ni z e r e v e n u e u p o n s hi p m e nt as o p p os e d to d ef erri n g s u c h r e v e n u e a n d r e c o g ni zi n g o v er a n est a blis h e d p eri o d, t y pi c all y t hr e e y e ars. Pr e vi o usl y d ef err e d r e v e n u e o n h ar d w ar e s hi p p e d i n pr e vi o us y e ars c o nti n u e d t o b e a m orti z e d o v ert h e est a blis h e d p eri o d. S e e D ef err e d R e v e n u ei n n ot e 1 " S u m m ar y of Si g nifi c a nt A c c o u nti n g P oli ci es"t o o ur c o ns oli d at e d fi n a n ci al st at e m e nts f or a d diti o n al i nf or m ati o n. ( d) N ort h A m eri c a r e v e n u e d e cr e as e w as dri v e n b y a d e cli n e i n o ur b a n k alli a n c es. T h e d e cli n e w as p arti all y attri b ut e d t o $ 1 3 milli o n of f e e i n cr e as es w hi c h o c c urr e d i n 2 0 1 6 w hi c h di d n ot r e o c c ur i n 2 0 1 7. ( e) E M E A r e v e n u e i n cr e as e d d u e t o gr o wt h i n U nit e d Ki n g d o m of $ 9 milli o n, r el at e d t o gr o wt h i n s al es v ol u m es, a n d i n G er m a n y a n d A ustri a of $ 9 milli o n, r el at e d t o gr o wt h i n t er mi n al h ar d w ar e s al es. (f) L A T A M r e v e n u e i n cr e as e d d u e t o gr o wt h i n Br a zil of $ 6 2 milli o n, r el at e d t o i n cr e as es i n o ur a cti v e c ust o m er b as e a n d s al es v ol u m es, a n d gr o wt h i n Ar g e nti n a of $ 3 5 milli o n. ( g) A P A C r e v e n u e i n cr e as e d d u e t o gr o wt h i n I n di a. Ye a r E n d e d D e c e m b e r 3 1, 2 0 1 5 C o re G r o wt h ( D e cli n e) C u r re n c y I m p a ct (a) A c q uisiti o ns/ Dis p ositi o ns ( b) A c c o u nti n g C h a n g e Ye a r E n d e d D e c e m b e r 3 1, 2 0 1 6 P e rc e nt C h a n g e R e p o rt e d C o nst a nt C u r re n c y P e rc e nt C h a n g e (i n milli o ns) R e v e n u es: N ort h A m eri c a $ 3, 2 0 4 $ ( 2 9) (c) $ 1 $ — $ — $ 3, 1 7 6 ( 1) % ( 1) % E M E A 5 4 1 3 1 (d) ( 2 2) — — 5 5 0 2 % 6 % L A T A M 1 6 4 7 1 (e) ( 5 7) — — 1 7 8 9 % 4 4 % A P A C 1 8 0 ( 5) (f) ( 4) ( 1 2) — 1 5 9 ( 1 2) % ( 1 0) % T ot al s e g m e nt r e v e n u e $ 4, 0 8 9 $ 6 8 $ ( 8 2) $ ( 1 2) $ — $ 4, 0 6 3 ( 1) % 2 % ( a) C urr e n c y i m p a ct is t h e diff er e n c e b et w e e n t h e c urr e nt y e ar's a ct u al r es ults a n d t h e s a m e y e ar's r es ults c o n v ert e d wit h t h e pri or y e ar's f or ei g n e x c h a n g e r at e. C o nst a nt c urr e n c y p er c e nt a g e c h a n g e is a m e as ur e of r e v e n u e gr o wt h b ef or e f or ei g n c urr e n c y i m p a ct. ( b) A P A C r e v e n u e a dj ust e d t o e x cl u d e r e v e n u e ass o ci at e d wit h t h e dis p ositi o n of t h e A ustr ali a n A T M b usi n ess i n S e pt e m b er 2 0 1 6. S e e n ot e 1 2 " A c q uisiti o ns a n d Dis p ositi o ns" t o o ur c o ns oli d at e d fi n a n ci al st at e m e nts i n P art II, It e m 8 of t his F or m 1 0- K f or a d diti o n al i nf or m ati o n. ( c) N ort h A m eri c a r e v e n u e d e cr e as e w as dri v e n b y l o w er h ar d w ar e s al es of $ 5 0 milli o n, p arti all y offs et b y a n i n cr e as e of $ 2 5 milli o n i n s oft w ar e s al es as a r es ult of gr o wt h i n o ur m er c h a nt s uit e of pr o d u cts, i n cl u di n g c o nti n u e d gr o wt h of o ur Tr a ns ar m or S ol uti o n. Pr o c essi n g r e v e n u e r e m ai n e d fl at as tr a ns a cti o n gr o wt h of 7 % w as offs et b y l o w er bl e n d e d yi el d. ( d) E M E A c o nst a nt c urr e n c y r e v e n u e i n cr e as e d as a r es ult of v ol u m e gr o wt h a n d a n a p pr o xi m at e $ 1 0 milli o n b e n efit fr o m c h a n g es i n i nt er c h a n g e pri ci n g d uri n g t h e first q u art er of 2 0 1 6. ( e) R e v e n u e i n cr e as e i n o ur L A T A M r e gi o n w as b e n efit e d b y gr o wt h i n Br a zil a n d Ar g e nti n a of $ 3 5 milli o n a n d $ 3 0 milli o n, r es p e c ti v el y d uri n g 2 0 1 6. R e m ai ni n g gr o wt h i n L A T A M w as dri v e n b y gr o wt h i n Ur u g u a y, M e xi c o a n d t h e C ari b b e a n. (f) R e v e n u e i n t h e A P A C r e gi o n w as i m p a ct e d b y a d e cr e as e i n A T M f e es f or t h e y e ar e n d e d D e c e m b er 3 1, 2 0 1 6.