FDC 2017 Annual Report

FI R S T D A T A C O R P O R A TI O N N O T E S T O T H E C O N S O LI D A T E D FI N A N CI A L S T A T E M E N T S ( C o nti n u e d) 8 2 T h e f oll o wi n g t a bl e pr o vi d es t h e c o m p o n e nts of ot h er i nt a n gi bl es: As of D e c e m b e r 3 1, 2 0 1 7 2 0 1 6 A c c u m ul at e d N et of A c c u m ul at e d A c c u m ul at e d N et of A c c u m ul at e d (i n milli o ns) C ost A m o rti z ati o n A m o rti z ati o n C ost A m o rti z ati o n A m o rti z ati o n C ust o m er r el ati o ns hi ps $ 8, 1 2 4 $ ( 5, 9 4 0) $ 2, 1 8 4 $ 7, 3 9 9 $ ( 5, 6 6 0) $ 1, 7 3 9 Ot h er i nt a n gi bl es: C o n v ersi o n c osts $ 3 0 2 $ ( 1 4 2) $ 1 6 0 $ 2 4 8 $ ( 1 0 9) $ 1 3 9 C o ntr a ct c osts 3 2 4 ( 1 7 9) 1 4 5 3 0 6 ( 1 4 9) 1 5 7 S oft w ar e 2, 5 5 2 ( 1, 9 2 0) 6 3 2 2, 2 3 6 ( 1, 7 2 6) 5 1 0 Ot h er, i n cl u di n g tr a d e n a m es 1, 4 2 2 ( 4 2 4) 9 9 8 1, 3 7 5 ( 3 8 1) 9 9 4 T ot al ot h er i nt a n gi bl es $ 4, 6 0 0 $ ( 2, 6 6 5) $ 1, 9 3 5 $ 4, 1 6 5 $ ( 2, 3 6 5) $ 1, 8 0 0 T h e esti m at e d f ut ur e a g gr e g at e a m orti z ati o n e x p e ns e f or t h e n e xt fi v e y e ars is as f oll o ws: Ye a r e n d e d D e c e m b e r 3 1, (i n milli o ns) A m o u nt (a) 2 0 1 8 $ 7 0 5 2 0 1 9 6 1 5 2 0 2 0 5 3 0 2 0 2 1 3 9 9 2 0 2 2 3 1 0 ( a) A ct u al a m orti z ati o n e x p e ns e will b e hi g h er d u e t o f ut ur e a cti vit y t h at g e n er at es n e w i nt a n gi bl e b al a n c es. T h e C o m p a n y t ests c o ntr a ct a n d c o n v ersi o n c osts f or r e c o v er a bilit y o n a n a n n u al b asis b y c o m p ari n g t h e r e m ai ni n g e x p e ct e d u n dis c o u nt e d c as h fl o ws u n d er t h e c o ntr a ct t o t h e n et b o o k v al u e. A n y ass ets t h at ar e d et er mi n e d t o b e u nr e c o v er a bl e ar e writt e n d o w n t o t h eir f air v al u e. I n a d diti o n t o t his a n n u al t est, t h es e ass ets a n d all ot h er l o n g li v e d ass ets ar e t est e d f or i m p air m e nt u p o n a n i n di c at or of p ot e nti al i m p air m e nt. N ot e 4: St o c k C o m p e ns ati o n Pl a ns T h e C o m p a n y pr o vi d es st o c k- b as e d c o m p e ns ati o n a w ar ds t o its e m pl o y e es u n d er t h e 2 0 1 5 O m ni b us I n c e nti v e Pl a n (st o c k pl a n). T h e t ot al n u m b er of s h ar es of Cl ass A c o m m o n st o c k t h at m a y b e iss u e d u n d er t h e st o c k pl a n is 7 1 milli o n, pl us a n y s h ar es of Cl ass B c o m m o n st o c k s u bj e ct t o o utst a n di n g a w ar ds gr a nt e d u n d er t h e C o m p a n y's 2 0 0 7 E q uit y Pl a n t h at ar e f orf eit e d, t er mi n at e d, c a n c el e d, e x pir e d u n e x er cis e d, wit h h el d i n p a y m e nt of t h e e x er cis e pri c e, or wit h h el d t o s atisf y t a x wit h h ol di n g o bli g ati o ns w h i c h a ut o m ati c all y c o n v ert e d o n a o n e-f or- o n e b asis i nt o s h ar es of Cl ass A c o m m o n st o c k. T h e st o c k pl a n all o ws f or t h e C o m p a n y t o a w ar d a n e q uit y i nt er est i n t h e C o m p a n y or a n a w ar d t h at c a n b e s ettl e d i n c as h m e as ur e d b y r ef er e n c e t o t h e v al u e of t h e C o m p a n y's Cl ass A c o m m o n st o c k. T ot al st o c k- b as e d c o m p e ns ati o n e x p e ns e r e c o g ni z e d i n t h e " C ost of s er vi c es " a n d “ S elli n g, g e n er al, a n d a d mi nistr ati v e ” li n e it e ms of t h e c o ns oli d at e d st at e m e nts of o p er ati o ns r es ulti n g fr o m st o c k o pti o ns, n o n- v est e d r estri ct e d st o c k a w ar ds, a n d n o n- v est e d r estri ct e d st o c k u nits w as as f oll o ws 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, (i n milli o ns) C ost of s e r vi c es S elli n g, g e n e r al, a n d a d mi nist r ati v e Tot al 2 0 1 7 (c) $ 7 2 $ 1 7 3 $ 2 4 5 2 0 1 6 (a) (c) 1 1 2 1 5 1 2 6 3 2 0 1 5 ( b) (c) 1 3 0 1 9 9 3 2 9 ( a) A p pr o xi m at el y $ 5 2 milli o n of st o c k- b as e d c o m p e ns ati o n e x p e ns e w as r e c o g ni z e d i n c o nj u n cti o n wit h t h e I P O. ( b) A p pr o xi m at el y $ 2 5 4 milli o n w as r e c o g ni z e d i n c o nj u n cti o n wit h t h e I P O a n d $ 1 4 milli o n of st o c k- b as e d c o m p e ns ati o n e x p e nse w as r e c o g ni z e d as a r es ult of t h e d e p art ur e of c ert ai n e x e c uti v e offi c ers. ( c) Dir e ctl y ass o ci at e d wit h o ur i niti al p u bli c off eri n g, t h e C o m p a n y i n c urr e d $ 2 5 4 milli o n a n d $ 5 2 milli o n i n st o c k- b as e d co m p e ns ati o n e x p e ns e d uri n g 2 0 1 5 a n d 2 0 1 6 r es p e cti v el y. D uri n g 2 0 1 6, t h e C o m p a n y i n c urr e d a n i n cr e as e of $ 1 3 6 milli o n i n o n g oi n g st o c k- b as e d c o m p e ns ati o n e x p e ns e as e m pl o y e e a w ar ds