FDC 2017 Annual Report

4 2 N et w or k & S e c urit y 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 r e v e n u e b y pr o d u ct. O ur N et w or k & S e c urit y S ol uti o ns s e g m e nt is c o m pris e d of m or e t h a n 9 5 % d o m esti c b usi n ess es wit h n o m at eri al f or ei g n e x c h a n g e i m p a ct o n r e p ort e d r es ults. 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) Dis p ositi o ns (a) 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 (i n milli o ns) R e v e n u es: E F T N et w or k $ 4 9 1 $ ( 4) ( b) $ — $ 4 8 7 ( 1) % S e c urit y a n d Fr a u d 4 3 4 1 5 ( c) — 4 4 9 3 % St or e d Val u e N et w or k 3 5 8 4 7 ( d) — 4 0 5 1 3 % Ot h er 2 0 2 7 ( e) ( 7) 2 0 2 — % T ot al s e g m e nt r e v e n u e $ 1, 4 8 5 $ 6 5 $ ( 7) $ 1, 5 4 3 4 % ( a) Ot h er r e v e n u e a dj ust e d t o e x cl u d e n et r e v e n u e ass o ci at e d wit h b usi n ess t h at w as c o ntri b ut e d t o o ur di git al b a n ki n g j oi nt v ent ur e wit h Li v e O a k o n O ct o b er 2, 2 0 1 7 offs et b y o ur 5 0 % of t h e j oi nt v e nt ur es r e v e n u e. 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 c i 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. ( b) E F T N et w or k r e v e n u e d e cr e as e d d u e t o i n cr e as e d tr a ns a cti o n gr o wt h of $ 2 0 milli o n offs et b y i n cr e as e d cli e nt i n c e nti v es. ( c) S e c urit y a n d Fr a u d r e v e n u e i n cr e as e w as dri v e n b y gr o wt h i n o ur S e c urit y a n d Fr a u d pr o d u ct c at e g ori es, offs et b y d e cli n es wit hi n t h e Tel e c h e c k b usi n ess of $ 1 4 milli o n. ( d) St or e d Val u e N et w or k r e v e n u e i n cr e as e d d u e t o hi g h er r at e a n d v ol u m e of $ 1 6 milli o n a n d $ 2 4 milli o n, r es p e cti v el y, a n d a $ 7 milli o n b e n efit ass o ci at e d wit h a c o ntr a ct a m e n d m e nt. ( e) Gr o wt h w as dri v e n b y o ur g o v er n m e nt b usi n ess. 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) Dis p ositi o ns 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 (i n milli o ns) R e v e n u es: E F T N et w or k $ 4 9 1 $ — ( a) $ — $ 4 9 1 — % S e c urit y a n d Fr a u d 4 1 2 2 2 ( b) — 4 3 4 5 % St or e d Val u e N et w or k 3 5 9 ( 1) ( c) — 3 5 8 — % Ot h er 2 0 2 — — 2 0 2 — % T ot al s e g m e nt r e v e n u e $ 1, 4 6 4 $ 2 1 $ — $ 1, 4 8 5 1 % ( a) E F T N et w or k r e v e n u e w as r el ati v el y fl at as S T A R gr o wt h w as offs et b y t h e i m p a ct of a l o n g-t er m d e bit pr o c essi n g c o ntr a ct r e n e w al w hi c h n e g ati v el y i m p a ct e d s e g m e nt r e v e n u e b y $ 1 4 milli o n. ( b) S e c urit y a n d Fr a u d r e v e n u e i n cr e as e d d u e t o gr o wt h fr o m o ur s uit e of S e c urit y a n d Fr a u d pr o d u cts, p arti all y offs et b y r e v e n u e d e cli n es wit hi n o ur Tel e C h e c k b usi n ess of $ 2 1 milli o n. ( c) St or e d Val u e N et w or k r e v e n u e w as fl at dri v e n b y a c h a n g e i n c o ntr a ct t er ms f or o n e cli e nt i n t h e pri or y e ar f or $ 1 0 milli o n offs et b y i n cr e as e d v ol u m es. T h e f oll o wi n g t a bl e dis pl a ys t ot al n et w or k tr a ns a cti o ns 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, P e rc e nt C h a n g e (i n milli o ns) 2 0 1 7 2 0 1 6 2 0 1 5 2 0 1 7 vs. 2 0 1 6 2 0 1 6 vs. 2 0 1 5 K e y i n di c at ors: N et w or k tr a ns a cti o ns ( E F T N et w or k a n d St or e d Val u e) (a) 2 2, 1 1 4 2 0, 2 5 8 1 8, 9 1 8 9 % 7 % ( a) N et w or k tr a ns a cti o ns i n cl u d e t h e U. S. d e bit iss u er pr o c essi n g tr a ns a cti o ns, S T A R N et w or k iss u er tr a ns a cti o ns, a n d cl os e d l o o p a n d o p e n l o o p P O S tr a ns a cti o ns. N et w or k tr a ns a cti o n gr o wt h f or t h e y e ar e n d e d 2 0 1 7 c o m p ar e d t o t h e s a m e p eri o ds i n 2 0 1 6 a n d 2 0 1 6 c o m p ar e d t o t h e s a m e p eri o ds i n 2 0 1 5 w as dri v e n b y gr o wt h i n all n et w or k tr a ns a cti o n c at e g ori es. R ei m b urs a bl e d e bit n et w or k f e es, p ost a g e, a n d ot h er R e v e n u e i n cr e as e d i n 2 0 1 7 c o m p ar e d t o 2 0 1 6 d u e t o tr a ns a cti o n a n d v ol u m e gr o wt h r el at e d t o d e bit n et w or k f e es of $ 2 1 7 milli o n p arti all y offs et b y p ost a g e ass o ci at e d wit h o ut p ut s er vi c es. R e v e n u e i n cr e as e d i n 2 0 1 6 c o m p ar e d t o 2 0 1 5 d u e t o tr a ns a cti o n a n d v ol u m e gr o wt h r el at e d t o d e bit n et w or k f e es of $ 3 8 milli o n a n d gr o wt h i n pri nt s er vi c es.