View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2010	Aug. 04, 2010
Statement [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q2
Entity Registrant Name	ALLIANCE DATA SYSTEMS CORP
Entity Central Index Key	0001101215
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		52,632,878

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2010	Dec. 31, 2009
ASSETS
Cash and cash equivalents	$ 250,335	$ 213,378
Trade receivables, less allowance for doubtful accounts ($4,307 and $6,736 at June 30, 2010 and December 31, 2009, respectively)	209,609	225,212
Seller's interest		297,108
Credit card receivables:
Credit card receivables - restricted for securitization investors	4,295,127
Other credit card receivables	748,341	671,182
Total credit card receivables	5,043,468	671,182
Allowance for loan loss	(526,845)	(54,884)
Credit card receivables, net	4,516,623	616,298
Deferred tax asset, net	339,993	197,455
Other current assets	116,663	201,427
Redemption settlement assets, restricted	476,629	574,004
Assets of discontinued operations	22,020	34,623
Total current assets	5,931,872	2,359,505
Property and equipment, net	157,593	165,012
Due from securitizations		775,570
Cash collateral, restricted	313,018	216,953
Intangible assets, net	283,124	316,597
Goodwill	1,161,953	1,166,275
Other non-current assets	199,074	225,755
Total assets	8,046,634	5,225,667
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	125,534	103,891
Accrued expenses	108,565	128,012
Certificates of deposit	426,300	772,500
Asset-backed securities debt - owed to securitization investors	253,593
Current debt	269,403	51,963
Other current liabilities	86,946	88,716
Deferred revenue	967,308	984,930
Total current liabilities	2,237,649	2,130,012
Deferred revenue	160,249	161,216
Deferred tax liability, net	107,421	140,712
Certificates of deposit	672,600	692,500
Asset-backed securities debt - owed to securitization investors	3,099,165
Long-term and other debt	1,544,258	1,730,389
Other liabilities	190,503	98,062
Total liabilities	8,011,845	4,952,891
Stockholders' equity:
Common stock, $0.01 par value; authorized 200,000 shares; issued 92,616 shares and 91,121 shares at June 30, 2010 and December 31, 2009, respectively	926	911
Additional paid-in capital	1,288,348	1,235,669
Treasury stock, at cost (39,379 and 38,922 shares at June 30, 2010 and December 31,2009, respectively)	(1,956,951)	(1,931,102)
Retained earnings	715,955	1,033,039
Accumulated other comprehensive loss	(13,489)	(65,741)
Total stockholders' equity	34,789	272,776
Total liabilities and stockholders' equity	$ 8,046,634	$ 5,225,667

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Allowance for doubtful accounts	$ 4,307	$ 6,736
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	200,000	200,000
Common stock, issued	92,616	91,121
Treasury stock, shares	39,379	38,922

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Revenues
Transaction	$ 69,341	$ 94,695	$ 145,942	$ 189,133
Redemption	127,709	114,009	266,386	226,156
Securitization income		93,219		216,622
Finance charges, net	319,269	11,178	625,626	29,010
Database marketing fees and direct marketing services	134,972	119,679	260,163	235,288
Other revenue	18,427	24,759	35,138	40,781
Total revenue	669,718	457,539	1,333,255	936,990
Operating expenses
Cost of operations	357,704	326,567	717,827	647,860
General and administrative	21,509	19,214	43,673	47,033
Provision for loan loss	95,704		184,585
Depreciation and other amortization	16,580	15,300	32,905	30,351
Amortization of purchased intangibles	17,841	15,815	35,687	30,063
Merger costs (reimbursements)		64		(516)
Total operating expenses	509,338	376,960	1,014,677	754,791
Operating income	160,380	80,579	318,578	182,199
Interest expense:
Securitization funding costs	43,606		85,225
Interest expense on certificates of deposit	7,604	6,803	16,202	13,184
Interest expense on long-term and other debt, net	32,638	27,304	65,127	52,210
Total interest expense, net	83,848	34,107	166,554	65,394
Income from continuing operations before income taxes	76,532	46,472	152,024	116,805
Provision for income taxes	29,212	18,085	58,050	45,369
Income from continuing operations	47,320	28,387	93,974	71,436
Income (loss) from discontinued operations, net of taxes		1,049		(14,145)
Net income	$ 47,320	$ 29,436	$ 93,974	$ 57,291
Basic income (loss) per share:
Income from continuing operations	$ 0.89	$ 0.5	$ 1.78	$ 1.21
Income (loss) from discontinued operations		0.02		(0.24)
Net income per share	0.89	0.52	1.78	0.97
Diluted income (loss) per share:
Income from continuing operations	0.83	0.49	1.67	1.2
Income (loss) from discontinued operations		0.02		(0.24)
Net income per share	$ 0.83	$ 0.51	$ 1.67	$ 0.96
Weighted average shares:
Basic	53,188	56,918	52,820	59,027
Diluted	56,821	57,808	56,122	59,749

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 93,974	$ 57,291
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	68,592	60,482
Deferred income taxes	19,973	28,756
Provision for loan loss	184,585	24,640
Non-cash stock compensation	23,021	28,747
Fair value loss on interest-only strip		4,040
Fair value loss on interest rate derivatives	5,384
Amortization of discount on convertible senior notes	32,162	22,224
Loss on the sale of assets		18,018
Change in operating assets and liabilities, net of acquisitions:
Change in trade accounts receivable	2,619	17,892
Change in merchant settlement activity		(7,901)
Change in other assets	24,833	(8,009)
Change in accounts payable and accrued expenses	(668)	(80,973)
Change in deferred revenue	(5,169)	(12,980)
Change in other liabilities	11,865	3,552
Proceeds from the sale of credit card receivable portfolios to the securitization trusts		53,240
Excess tax benefits from stock-based compensation	(11,416)	(603)
Other	(3,260)	4,669
Net cash provided by operating activities	446,495	213,085
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in redemption settlement assets	16,927	29,684
Change in seller's interest		7,298
Change in credit card receivables	276,446	(146,796)
Change in cash collateral, restricted	(95,053)	77,732
Change in restricted cash	21,802	(63,359)
Change in due from securitizations		(137,697)
Capital expenditures	(31,512)	(24,243)
Proceeds from the sale of assets		8,013
Other	(3,699)	(67)
Net cash provided by (used in) investing activities	184,911	(249,435)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under debt agreements	555,000	1,950,000
Proceeds from issuance of convertible senior notes due 2014		345,000
Repayment of borrowings	(544,346)	(1,949,864)
Issuances of certificates of deposit	94,000	565,200
Repayments of certificates of deposit	(460,100)	(456,300)
Proceeds from asset-backed securities	411,945
Maturities of asset-backed securities	(745,120)
Payment of capital lease obligations	(11,476)	(10,737)
Payment of deferred financing costs	(730)	(17,232)
Excess tax benefits from stock-based compensation	11,416	603
Proceeds from issuance of common stock	29,631	4,912
Proceeds from the issuance of warrants		30,050
Payments for convertible note hedges		(80,765)
Payments for prepaid forward contracts		(74,872)
Purchase of treasury shares	(14,520)	(314,055)
Net cash used in financing activities	(674,300)	(8,060)
Effect of exchange rate changes on cash and cash equivalents	(1,702)	5,922
Change in cash and cash equivalents	(44,596)	(38,488)
Cash effect on adoption of ASC 860 and ASC 810	81,553
Cash and cash equivalents at beginning of period	213,378	156,911
Cash and cash equivalents at end of period	250,335	118,423
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	119,290	41,635
Income taxes paid, net	$ 16,897	$ 41,118

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2010
Statement [Line Items]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The unaudited condensed consolidated financial statements included herein have been prepared by Alliance Data Systems Corporation ("ADSC" or, including its wholly owned subsidiaries and its consolidated variable interest entities, the "Company"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes t hereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2009, filed with the SEC on March 1, 2010. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation. See Note 2, "Change in Accounting Principle," for information on the adoption of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 860, "Transfers and Servicing," and ASC 810, "Consolidation." In the first quarter of 2010, the Company reorganized its segments with Private Label Services and Private Label Credit reflected as one segment. All prior year segment information has been restated to conform to the current presentation. In addition, the Company renamed its other two segments from Epsilon Marketing Services and Loyalty Services to "Epsilon" and "LoyaltyOne," respectively. In February 2009, the Company sold the remainder of its utility services division, which was reflected as a discontinued operation. In November 2009, the Company terminated operations of its credit program for web and catalog retailer VENUE. Prior period information has been restated to reflect the termination of VENUE as a discontinued operation.

CHANGE IN ACCOUNTING PRINCIPLE	6 Months Ended
CHANGE IN ACCOUNTING PRINCIPLE	Jun. 30, 2010
Statement [Line Items]
CHANGE IN ACCOUNTING PRINCIPLE	2. CHANGE IN ACCOUNTING PRINCIPLE In June 2009, the FASB issued guidance codified in ASC 860 related to accounting for transfers of financial assets and ASC 810 related to the consolidation of variable interest entities ("VIEs"). ASC 860 removed the concept of qualifying special purpose entity ("QSPE") and eliminated the consolidation exemption that was then available for QSPEs. ASC 810 requires an initial evaluation as well as an ongoing assessment of the Company's involvement in the activities of World Financial Network Credit Card Master Trust ("Master Trust"), World Financial Network Credit Card Master Note Trust ("Master Trust I"), World Financial Network Credit Card Master Note Trust II ("Master Trust II") and World Financial Network Credit Card Master Trust III ("Master Trust III") (collectively, the "WFN Trusts"), and World Financial Capital Credit C ard Master Note Trust (the "WFC Trust") and the Company's rights or obligations to receive benefits or absorb losses of the trusts that could be potentially significant in order to determine whether those VIEs are required to be consolidated on the balance sheets of World Financial Network National Bank ("WFNNB"),World Financial Capital Bank ("WFCB") or their affiliates, including ADSC. On January 1, 2010, the Company adopted ASC 860 and ASC 810 on a prospective basis, resulting in the consolidation of the WFN Trusts and the WFC Trust. Based on the carrying amounts of the WFN Trusts' and the WFC Trust's assets and liabilities as prescribed by ASC 810, the Company recorded an increase in assets of approximately $3.4 billion, including $0.5 billion to loan loss reserves, an increase in liabilities of approximately $3.7 billion and a $0.4 billion decrease in stockholders' equity. After adoption, the Company's consolidated statements of income no longer reflect securitization income, but instead reflect finance charges and certain other income associated with the securitized credit card receivables. Net charge-offs associated with credit card receivables impact the Company's provision for loan loss reflected in the Company's total operating expenses. Interest expense associated with debt issued from the WFN Trusts and the WFC Trust to third-party investors is reported in securitization funding costs. Additionally, the Company no longer records initial gains on new securitization activity since securitized credit card loans no longer receive sale accounting treatment, nor are there any gains or losses on the revaluation of the interest-only strip receivable, as that asset is not recognized in a transaction accounted for as a secured borrowing. S ince the Company's securitization transactions are accounted for under the new accounting rules as secured borrowings rather than asset sales, the cash flows from these transactions are presented as cash flows from financing activities rather than cash flows from operating or investing activities. The assets of the consolidated VIEs include certain credit card receivables, which are restricted to settle the obligations of those entities and are not expected to be available to the Company or its creditors. The liabilities of the consolidated VIEs include asset-backed secured borrowings and other liabilities for which creditors or beneficial interest holders do not have recourse to the general credit of the Company.

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Jun. 30, 2010
Statement [Line Items]
RECENT ACCOUNTING PRONOUNCEMENTS	div p style="margin-top: 18px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"b3. RECENT ACCOUNTING PRONOUNCEMENTS /b/font/p p style="margin-top: 6px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"In Octobernbsp;2009, the FASB issued Accounting Standards Update ("ASU") 2009-13, "Multiple-Deliverable Revenue Arrangements," which supersedes certain guidance in ASCnbsp;605-25, "Revenue Recognition #8212; Multiple-Element Arrangements," and requires an entity to allocate arrangement consideration at the inception of an arrangement to all of its deliverables based on their relative selling prices (the relative-selling-price method). ASUnbsp;2009-13 eliminates the use of the residual method of allocation in which the undelivered element is measured at its estimated selling price and the delivered element is measured as the residual of the arrangement consideration, and requires the relative-selling-price method in all circumstances in which an entity recognizes revenue for an arrangement with multiple deliverables subject to ASUnbsp;2009-13. A SUnbsp;2009-13 will be effective for revenue arrangements entered into or materially modified in fiscal years beginning on or after Junenbsp;15, 2010. Early adoption is permitted. If the Company elects early adoption and the adoption is during an interim period, the Company will be required to apply this ASU retrospectively from the beginning of the Company's fiscal year. The Company can also elect to apply this ASU retrospectively for all periods presented. The Company is currently evaluating the impact that the adoption of ASUnbsp;2009-13 will have on its consolidated financial statements. /font/p p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"In Januarynbsp;2010, the FASB issued ASUnbsp;2010-06, "Fair Value Measurements and Disclosures," which amends ASCnbsp;820, "Fair Value Measurements and Disclosures," to add separate disclosures about purchases, sales, issuances and settlements related to Levelnbsp;3 measurements. The requirement to provide the Level 3 disclosures about purchases, sales, issuances and settlements will be effective for interim and annual periods beginning after Decembernbsp;15, 2010. The adoption of ASUnbsp;2010-06 for the separate Level 3 disclosures will only impact disclosures and will not have a material impact on the Company's consolidated financial statements. /font/p p style="margin-top: 0px; margin-bottom: 0px;"font class="_mt" size="1" /fontnbsp;/p p style="margin-top: 0px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"In Julynbsp;2010, the FASB issued ASUnbsp;2010-20, "Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses," which amends ASCnbsp;310, "Receivables," to require further disaggregated disclosures that improve financial statement users' understanding of (1)nbsp;the nature of an entity's credit risk associated with its financing receivables and (2)nbsp;the entity's assessment of that risk in estimating its allowance for credit losses as well as changes in the allowance and the reasons for those changes. The new and amended disclosures as of the end of a reporting period are effective for interim and annual reporting periods ending on or after Decembernbsp;15, 2010. The adoption of ASUnbsp;2010-20 will only impact disclosures and will not have a material impact on the Company's consolidated finan cial statements. /font/p /div

SHARES USED IN COMPUTING NET INCOME PER SHARE

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

SHARES USED IN COMPUTING NET INCOME PER SHARE

4. SHARES USED IN COMPUTING NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
	(In thousands, except per share amounts)
Numerator
Income from continuing operations	$	47,320	$	28,387	$	93,974	$	71,436
Income (loss) from discontinued operations, net of taxes		—		1,049		—		(14,145	)

Net income	$	47,320	$	29,436	$	93,974	$	57,291

Denominator
Weighted average shares, basic		53,188		56,918		52,820		59,027
Weighted average effect of dilutive securities:
Shares from assumed conversion of convertible senior notes		2,295		—		1,950		—
Net effect of dilutive stock options and unvested restricted stock		1,338		890		1,352		722

Denominator for diluted calculation		56,821		57,808		56,122		59,749

Basic
Income from continuing operations per share	$	0.89	$	0.50	$	1.78	$	1.21
Income (loss) from discontinued operations per share		—		0.02		—		(0.24	)

Net income per share	$	0.89	$	0.52	$	1.78	$	0.97

Diluted
Income from continuing operations per share	$	0.83	$	0.49	$	1.67	$	1.20
Income (loss) from discontinued operations per share		—		0.02		—		(0.24	)

Net income per share	$	0.83	$	0.51	$	1.67	$	0.96

The Company calculates the effect of its convertible senior notes, which can be settled in cash or shares of common stock, on diluted net income per share as if they will be settled in cash as the Company has the intent to settle the convertible senior notes in cash. At June 30, 2010 and 2009, the Company excluded, in each case, 17.5 million warrants from the calculation of net income per share as the effect was anti-dilutive.

During the second quarter of 2009, the Company entered into prepaid forward contracts to purchase 1,857,400 shares of its common stock for $74.9 million that are to be delivered over a settlement period in 2014. The number of shares to be delivered under the prepaid forward contracts is used to reduce weighted average basic and diluted shares outstanding.

CREDIT CARD RECEIVABLES

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

CREDIT CARD RECEIVABLES

5. CREDIT CARD RECEIVABLES

Beginning January 1, 2010, the Company's credit card securitization trusts, the WFN Trusts and the WFC Trust, were consolidated on the balance sheets of WFNNB, WFCB or their affiliates, including ADSC, under ASC 860 and ASC 810. The WFN Trusts' and the WFC Trust's credit card receivables are reported in credit card receivables — restricted for securitization investors. Retained interests in the WFN Trusts and the WFC Trust have been reclassified, derecognized or eliminated in the unaudited condensed consolidated balance sheets with the adoption of ASC 860 and ASC 810.

The tables below present quantitative information about the components of total credit card receivables and delinquencies:


	June 30, 2010		December 31, 2009
	(In millions)
Principal receivables	$	4,816.0	$	5,332.8
Billed and accrued finance charges		203.3		155.7
Other receivables		24.2		21.0

Total credit card receivables		5,043.5		5,509.5
Less credit card receivables—restricted for securitization investors		4,295.1		4,838.3

Other credit card receivables	$	748.4	$	671.2

Principal amount of credit card receivables 90 days or more past due	$	115.8	$	157.4

Net charge-offs of credit card receivables were $112.4 million and $103.6 million for the three months ended June 30, 2010 and 2009, respectively, and $234.7 million and $197.5 million for the six months ended June 30, 2010 and 2009, respectively.

Allowance for Loan Loss

Management evaluates the allowance for loan loss monthly for adequacy. The allowance is maintained through an adjustment to the provision for loan loss. In estimating losses inherent in the credit card portfolio, management uses an approach that utilizes a migration analysis of delinquent and current credit card receivables. A migration analysis is a technique used to estimate the likelihood that a credit card receivable will progress through the various stages of delinquency and to charge-off. The migration analysis considers uncollectible principal, interest and fees reflected in credit card receivables. In determining the proper level of the allowance for loan loss, management also considers factors that may impact loan loss experience, including seasoning, loan volume and amounts, payment rates and forecasting uncertainties.

Changes in the allowance for loan loss on credit card receivables for the six months ended June 30, 2010 and the year ended December 31, 2009 were as follows:


	June 30, 2010			December 31, 2009
	(In thousands)
Balance at beginning of period	$	54,884		$	38,124
Adoption of ASC 860 and ASC 810		523,950			—
Provision for loan loss		182,701			52,259
Charge-offs, net of recoveries		(234,690	)		(35,499	)

Balance at end of period	$	526,845		$	54,884

The provision for loan loss expense was $95.7 million and $184.6 million for the three and six months ended June 30, 2010, respectively, which includes $1.0 million and $1.9 million of credit card fraud losses, respectively. The provision for loan loss expense was $10.9 million and $19.5 million for the three and six months ended June 30, 2009, respectively, for the Company's on-balance sheet credit card receivables. These amounts were netted against securitization income in 2009.

Securitized Credit Card Receivables

The Company regularly securitizes its credit card receivables to the WFN Trusts and the WFC Trust. The Company continues to own and service the accounts that generate credit card receivables held by the WFN Trusts and the WFC Trust. In its capacity as a servicer, each of the respective banks earns a fee from the WFN Trusts and the WFC Trust to service and administer the credit receivables, collect payments, and charge-off uncollectible receivables. Upon consolidation of the WFN Trusts and the WFC Trust, this fee was eliminated.

The tables below present quantitative information about the components of total securitized credit card receivables, delinquencies and net charge-offs:


	June 30, 2010		December 31, 2009
	(In millions)
Total credit card receivables—restricted for securitization investors	$	4,295.1	$	4,838.3

Principal amount of credit card receivables—restricted for securitization investors, 90 days or more past due	$	104.7	$	148.2


	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
	(In millions)
Net securitized charge-offs	$	97.9	$	93.1	$	206.0	$	180.9

During the initial phase of a securitization reinvestment period, the Company generally retains principal collections in exchange for the transfer of additional credit card receivables into the securitized pool of assets. During the amortization or accumulation period of a securitization, the investors' share of principal collections (in certain cases, up to a maximum specified amount each month) is either distributed to the investors or held in an account until it accumulates to the total amount due, at which time it is paid to the investors in a lump sum.

The table below summarizes certain cash flows received from and paid to the securitization trusts when transfers of credit card receivables to the securitization trusts were treated as sales prior to the adoption of ASC 860 and ASC 810:


	Three Months Ended June 30, 2009		Six Months Ended June 30, 2009
	(In millions)
Proceeds from collections reinvested in previous credit card securitizations	$	1,193.2	$	2,284.1
Proceeds from new securitizations		708.9		1,068.6
Proceeds from collections reinvested in revolving period transfers		1,560.1		3,180.5
Servicing fees received		17.7		36.0

REDEMPTION SETTLEMENT ASSETS

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

REDEMPTION SETTLEMENT ASSETS

6. REDEMPTION SETTLEMENT ASSETS

Redemption settlement assets consist of cash and cash equivalents and securities available-for-sale and are designated for settling redemptions by collectors of the AIR MILES^® Reward Program in Canada under certain contractual relationships with sponsors of the AIR MILES Reward Program. These assets are primarily denominated in Canadian dollars. Realized gains and losses from the sale of investment securities were not material. The principal components of redemption settlement assets, which are carried at fair value, are as follows:


	June 30, 2010									December 31, 2009
	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(In thousands)
Cash and cash equivalents	$	45,016	$	—	$	—		$	45,016	$	71,641	$	—	$	—		$	71,641
Government bonds		50,758		1,059		(35	)		51,782		41,026		1,205		—			42,231
Corporate bonds⁽¹⁾		374,992		5,344		(505	)		379,831		453,447		8,473		(1,788	)		460,132

Total	$	470,766	$	6,403	$	(540	)	$	476,629	$	566,114	$	9,678	$	(1,788	)	$	574,004

⁽¹⁾

Included in corporate bonds at December 31, 2009 is an investment in retained interests in the WFN Trusts with a fair value of $73.9 million. Upon adoption of ASC 860, these amounts were eliminated with the consolidation of the WFN Trusts, and therefore not reflected in the unaudited condensed consolidated balance sheets as of June 30, 2010.

The following tables show the gross unrealized losses and fair value for those investments that were in an unrealized loss position as of June 30, 2010 and December 31, 2009, aggregated by investment category and the length of time that individual securities have been in a continuous loss position:


	Less than 12 months					June 30, 2010 12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value			Unrealized Losses
	(In thousands)
Government bonds	$	9,377	$	(35	)	$	—	$	—		$	9,377		$	(35	)
Corporate bonds		65,508		(505	)		—		—			65,508			(505	)

Total	$	74,885	$	(540	)	$	—	$	—		$	74,885		$	(540	)

	Less than 12 months					December 31, 2009 12 Months or Greater						Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses				Fair Value			Unrealized Losses
	(In thousands)
Corporate bonds	$	98,448	$	(1,646	)	$	7,705	$	(142	)		$	106,153		$	(1,788	)

Total	$	98,448	$	(1,646	)	$	7,705	$	(142	)		$	106,153		$	(1,788	)

Market values were determined for each individual security in the investment portfolio. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the security's issuer, and the Company's intent to sell the security and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company typically invests in highly-rated securities with low probabilities of default and has the ability to hold the investments until maturity. As of June 30, 2010, the Company does not consider the investments to be other-than-temporarily impaired.

The net carrying value and estimated fair value of the securities at June 30, 2010 by contractual maturity are as follows:


	Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	217,902	$	219,689
Due after one year through five years		252,864		256,940

Total	$	470,766	$	476,629

INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

INTANGIBLE ASSETS AND GOODWILL

7. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

Intangible assets consist of the following:


	June 30, 2010							Amortization Life and Method
	Gross Assets		Accumulated Amortization			Net		Amortization Life and Method
	(In thousands)
Finite Lived Assets
Customer contracts and lists	$	186,428	$	(134,092	)	$	52,336	5-10 years—straight line
Premium on purchased credit card portfolios		151,430		(53,170	)		98,260	3-10 years—straight line, accelerated
Collector database		65,752		(56,474	)		9,278	30 years—15% declining balance
Customer database		160,200		(65,509	)		94,691	4-10 years—straight line
Noncompete agreements		2,514		(2,191	)		323	3-5 years—straight line
Tradenames		11,615		(4,309	)		7,306	4-10 years—straight line
Purchased data lists		18,816		(10,236	)		8,580	1-5 years—straight line, accelerated

	$	596,755	$	(325,981	)	$	270,774
Indefinite Lived Assets
Tradenames		12,350		—			12,350	Indefinite life

Total intangible assets	$	609,105	$	(325,981	)	$	283,124


	December 31, 2009							Amortization Life and Method
	Gross Assets		Accumulated Amortization			Net		Amortization Life and Method
	(In thousands)
Finite Lived Assets
Customer contracts and lists	$	186,428	$	(121,540	)	$	64,888	5-10 years—straight line
Premium on purchased credit card portfolios		155,227		(46,936	)		108,291	3-10 years—straight line, accelerated
Collector database		66,541		(56,316	)		10,225	30 years—15% declining balance
Customer database		160,564		(57,043	)		103,521	4-10 years—straight line
Noncompete agreements		2,522		(1,986	)		536	3-5 years—straight line
Tradenames		11,658		(3,674	)		7,984	4-10 years—straight line
Purchased data lists		17,178		(8,376	)		8,802	1-5 years—straight line, accelerated

	$	600,118	$	(295,871	)	$	304,247
Indefinite Lived Assets
Tradenames		12,350		—			12,350	Indefinite life

Total intangible assets	$	612,468	$	(295,871	)	$	316,597

Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2010 are as follows:


	LoyaltyOne			Epsilon			Private Label Services and Credit		Corporate/ Other		Total
	(In thousands)
December 31, 2009	$	234,613		$	669,930		$	261,732	$	—	$	1,166,275
Effects of foreign currency translation		(2,642	)		(1,680	)		—		—		(4,322	)

June 30, 2010	$	231,971		$	668,250		$	261,732	$	—	$	1,161,953

DEBT

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

DEBT

8. DEBT

Debt consists of the following:


Description	June 30, 2010			December 31, 2009			Maturity	Interest Rate
	(In thousands)
Long-term and other debt:
Credit facility	$	500,000		$	487,000		March 2012	⁽¹⁾
Senior notes		250,000			250,000		May 2011	6.14%
2009 Term loan		161,000			161,000		March 2012	⁽²⁾
Convertible senior notes due 2013		635,144			612,058		August 2013	1.75%
Convertible senior notes due 2014		247,945			238,869		May 2014	4.75%
Capital lease obligations and other debt		19,572			33,425		July 2010 – July 2013⁽³⁾	5.20% to 8.10%⁽³⁾

		1,813,661			1,782,352
Less: current portion		(269,403	)		(51,963	)

Long-term portion	$	1,544,258		$	1,730,389

Certificates of deposit:
Certificates of deposit	$	1,098,900		$	1,465,000		One year to five years	0.50% to 5.25%
Less: current portion		(426,300	)		(772,500	)

Long-term portion	$	672,600		$	692,500

Asset-backed securities debt—owed to securitization investors:⁽⁴⁾
Fixed rate asset-backed term note securities	$	1,489,065		$	—		July 2010 – July 2013	2.36% to 7.00%
Floating rate asset-backed term note securities		1,216,633			—		August 2010 – April 2013	0.48% to 7.85%⁽⁵⁾
Conduit asset-backed securities		647,060			—		June 2011– September 2011	1.88% to 2.69%

Total asset-backed securities—owed to securitization investors		3,352,758			—
Less: current portion		(253,593	)		—

Long-term portion	$	3,099,165		$	—

⁽¹⁾

The Company maintains a $750.0 million unsecured revolving credit facility (the "Credit Facility,") where advances are in the form of either base rate loans or Eurodollar loans and may be denominated in Canadian dollars, subject to a sublimit, or U.S. dollars. The interest rate for base loans is the higher of (a) the Bank of Montreal's prime rate, (b) the Federal funds rate plus 0.5%, and (c) the quoted London Interbank Offered Rate ("LIBOR") as defined in the credit agreement plus 1.0%. The interest rate for Eurodollar loans denominated in U.S. or Canadian dollars fluctuates based on the rate at which deposits of U.S. dollars or Canadian dollars, respectively, in the London interbank market are quoted plus a margin of 0.4% to 0.8% based upon the Company's senior leverage ratio as defined in the Credit Facility. Total availability under the Credit Facility at June 30, 2010 was $250.0 million. At June 30, 2010, the amounts outstanding under the Credit Facility were based on Eurodollar loans where the weighted average interest rate was 0.75%.

⁽²⁾

Advances under the term loan agreement, dated May 15, 2009 (the "2009 Term Loan"), are in the form of either base rate loans or Eurodollar loans. The interest rate for base rate loans fluctuates and is equal to the highest of (a) Bank of Montreal's prime rate; (b) the Federal funds rate plus 0.5%; and (c) the quoted LIBOR as defined in the 2009 Term Loan agreement plus 1.0%, in each case plus a margin of 2.0% to 3.0% based upon the Company's senior leverage ratio as defined in the 2009 Term Loan agreement. The interest rate of Eurodollar loans fluctuates based on the rate at which deposits of U.S. dollars in the London interbank market are quoted plus a margin of 3.0% to 4.0% based on the Company's senior le verage ratio as defined in the 2009 Term Loan. At June 30, 2010, the amounts outstanding under the 2009 Term Loan were based on Eurodollar loans where the weighted average interest rate was 3.35%.

⁽³⁾	The Company has other minor borrowings, primarily capital leases, with varying interest rates and maturities.

⁽⁴⁾	Upon adoption of ASC 860 and ASC 810, the Company consolidated the WFN Trusts and the WFC Trust and the related asset-backed securities debt. See Note 2, "Change in Accounting Principle," for more information on the adoption of ASC 860 and ASC 810.

⁽⁵⁾

Interest rates include those for certain of the Company's asset-backed securities — owed to securitization investors where floating rate debt is fixed through interest rate swap agreements. The weighted average interest rate of the fixed rate achieved through interest rate swap agreements is 4.45% at June 30, 2010.

As of June 30, 2010, the Company was in compliance with its financial covenants.

Credit Facility

On June 18, 2010, the Company amended its Credit Facility to clarify the application of ASC 860 and ASC 810 with respect to the calculation of covenant compliance.

2009 Term Loan

On June 18, 2010, the Company amended its 2009 Term Loan to clarify the application of ASC 860 and ASC 810 with respect to the calculation of covenant compliance. In addition, the amendment removed the prepayments that were required beginning June 30, 2010 and now provides that principal payments be paid at maturity, March 30, 2012.

Convertible Senior Notes

The table below summarizes the carrying value of the components of the convertible senior notes:


	June 30, 2010			December 31, 2009
	(In thousands)
Carrying amount of equity component	$	368,678		$	368,678

Principal amount of liability component	$	1,150,000		$	1,150,000
Unamortized discount		(266,911	)		(299,073	)

Net carrying value of liability component	$	883,089		$	850,927

If-converted value of common stock	$	1,042,086		$	1,130,852

The discount on the liability component will be amortized as interest expense over the remaining life of the convertible senior notes which is a weighted average period of 3.3 years.

Interest expense on the convertible senior notes recognized in the Company's unaudited condensed consolidated statements of income for the three and six months ended June 30, 2010 and 2009 is as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
	(In thousands)
Interest expense calculated on contractual interest rate	$	7,618		$	4,796		$	15,237		$	8,318
Amortization of discount on liability component		16,301			11,870			32,162			22,224

Total interest expense on convertible senior notes	$	23,919		$	16,666		$	47,399		$	30,542

Effective interest rate (annualized)		11.0	%		11.0	%		11.0	%		11.0	%

Asset-backed Securities — Owed to Securitization Investors

An asset-backed security is a security whose value and income payments are derived from and collateralized (or "backed") by a specified pool of underlying assets. The sale of the pool of underlying assets to general investors is accomplished through a securitization process.

The Company regularly sells its credit card receivables to its securitization trusts, the WFN Trusts and the WFC Trust. Beginning January 1, 2010, the WFN Trusts and the WFC Trust were consolidated on the balance sheets of the Company, under ASC 860 and ASC 810. See Note 2, "Change in Accounting Principle," for more information on the adoption of ASC 860 and ASC 810. The liabilities of the consolidated VIEs include asset-backed securities for which creditors or beneficial interest holders do not have recourse to the general credit of the Company.

Asset-backed Term Notes

In March 2010, Master Trust II issued $100.8 million of term asset-backed securities to investors. The offering consisted of $65.0 million of Class A Series 2010-1 asset-backed notes that have a fixed interest rate of 4.2% per year, $9.8 million of Class M Series 2010-1 asset-backed notes that have a fixed interest rate of 5.3% per year, $6.6 million of Class B Series 2010-1 asset-backed notes that have a fixed interest rate of 6.3% per year, $11.6 million of Class C Series 2010-1 asset-backed notes that have a fixed interest rate of 7.0% per year and $7.8 million of Class D Series 2010-1 zero-coupon notes which were retained by the Company. The Class A notes will mature in November 2012, the Class M notes will mature in December 2012, the Class B notes will mature in January 2013 , the Class C notes will mature in February 2013 and the Class D notes will mature in March 2013. With the consolidation of the WFN Trusts, the Class D Series 2010-1 notes are eliminated from the unaudited condensed consolidated financial statements.

Conduit Facilities

During the first quarter of 2010, the Company renewed its $550.0 million 2009-VFC1 conduit facility under Master Trust III, extending the maturity to September 30, 2011.

During the second quarter of 2010, the Company renewed its $1.2 billion 2009-VFN conduit facility under Master Trust I, extending the maturity to June 23, 2011, and its $275.0 million 2009-VFN conduit facility under the WFC Trust, extending the maturity to June 3, 2011.

The following table shows the maturities of borrowing commitments as of June 30, 2010 for the WFN Trusts and the WFC Trust by year:


	2010		2011		2012		2013		2014 & Thereafter		Total
	(In millions)
Term notes	$	211.4	$	1,158.9	$	805.2	$	925.7	$	—	$	3,101.2
Conduit facilities⁽¹⁾		—		2,447.8		—		—		—		2,447.8

Total⁽²⁾	$	211.4	$	3,606.7	$	805.2	$	925.7	$	—	$	5,549.0

⁽¹⁾	Amount represents borrowing capacity, not outstanding borrowings.

⁽²⁾	As of June 30, 2010, with the consolidation of the WFN Trusts and the WFC Trust, $554.1 million of debt issued by the trusts and retained by the Company has been eliminated in the unaudited condensed consolidated financial statements.

Derivative Financial Instruments

The credit card securitization trusts have entered into derivative financial instruments, which include both interest rate swaps and an interest rate cap, to mitigate their interest rate risk on a related financial instrument or to lock the interest rate on a portion of its asset-backed variable debt. Effective January 1, 2010, the derivative financial instruments of the credit card securitization trusts were consolidated on the Company's balance sheets under ASC 860 and ASC 810.

As part of its interest rate risk management program, the Company may enter into derivative financial instruments with institutions that are established dealers and manage its exposure to changes in fair value of certain asset-backed security obligations attributable to changes in LIBOR. These interest rate contracts involve the receipt of fixed rate amounts from counterparties in exchange for the Company making variable rate payments over the life of the agreement without the exchange of the underlying notional amount. These interest rate contracts are not designated as hedges. Such contracts are not speculative and are used to manage interest rate risk, but do not meet the specific hedge accounting requirements of ASC 815, "Derivatives and Hedging."

The following tables identify the notional amount, fair value and classification of the Company's outstanding interest rate contracts at June 30, 2010 in the unaudited condensed consolidated balance sheets:


	Notional Amount (in thousands)		Weighted Average Years to Maturity
Interest rate contracts not designated as hedging instruments	$	1,216,633	2.1


	Balance Sheet Location	Fair Value (in thousands)
Interest rate contracts not designated as hedging instruments	Other current liabilities	$	323
Interest rate contracts not designated as hedging instruments	Other liabilities	$	83,616

The following tables identify the classification of the Company's outstanding interest rate contracts for the three and six months ended June 30, 2010 in the unaudited condensed consolidated statements of income:


For the three months ended June 30, 2010	Income Statement Location	Loss on Derivative Contracts (in thousands)
Interest rate contracts not designated as hedging instruments	Securitization funding costs	$	3,203

For the six months ended June 30, 2010	Income Statement Location	Loss on Derivative Contracts (in thousands)
Interest rate contracts not designated as hedging instruments	Securitization funding costs	$	5,384

The Company limits its exposure on derivatives by entering into contracts with institutions that are established dealers and maintain certain minimum credit criteria established by the Company. At June 30, 2010, the Company does not maintain any derivative contracts subject to master agreements that would require the Company to post collateral or that contain any credit-risk related contingent features. The Company has provisions in certain of the master agreements that require counterparties to post collateral to the Company when their credit ratings fall below certain thresholds. At June 30, 2010, these thresholds were not breached and no amounts were held as collateral by the Company.

DEFERRED REVENUE

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

DEFERRED REVENUE

9. DEFERRED REVENUE

Because management has determined that the earnings process is not complete at the time an AIR MILES reward mile is issued, the recognition of revenue on all fees received at issuance is deferred. The Company allocates the proceeds from the issuance of AIR MILES reward miles into two components as follows:

•

Redemption element. The redemption element is the larger of the two components. Revenue related to the redemption element is based on the estimated fair value. For this component, revenue is recognized at the time an AIR MILES reward mile is redeemed, or for those AIR MILES reward miles that are estimated to go unredeemed by the collector base, known as "breakage," over the estimated life of an AIR MILES reward mile.

•

Service element. The service element consists of marketing and administrative services provided to sponsors. Revenue related to the service element is determined using the residual method in accordance with ASC 605-25. It is initially deferred and then amortized pro rata over the estimated life of an AIR MILES reward mile.

Under certain of the Company's contracts, a portion of the proceeds is paid to the Company upon the issuance of an AIR MILES reward mile and a portion is paid at the time of redemption and therefore, the Company does not have a redemption obligation related to these contracts. Revenue is recognized at the time of redemption and is not reflected in the reconciliation of the redemption obligation detailed below. Under such contracts, the proceeds received at issuance are initially deferred as service revenue and revenue is recognized pro rata over the estimated life of an AIR MILES reward mile. Amounts for revenue related to the redemption element and service element are recorded in redemption revenue and transaction revenue, respectively, in the unaudited condensed consolidated statements of income.

A reconciliation of deferred revenue for the AIR MILES Reward Program is as follows:


	Deferred Revenue
	Service			Redemption			Total
	(In thousands)
December 31, 2009	$	306,336		$	839,810		$	1,146,146
Cash proceeds		88,940			236,918			325,858
Revenue recognized		(83,680	)		(251,641	)		(335,321	)
Other		—			4,301			4,301
Effects of foreign currency translation		(3,773	)		(9,654	)		(13,427	)

June 30, 2010	$	307,823		$	819,734		$	1,127,557

Amounts recognized in the unaudited condensed consolidated balance sheets:
Current liabilities	$	147,574		$	819,734		$	967,308

Non-current liabilities	$	160,249		$	—		$	160,249

STOCKHOLDERS' EQUITY	6 Months Ended
STOCKHOLDERS' EQUITY	Jun. 30, 2010
Statement [Line Items]
STOCKHOLDERS' EQUITY	div p style="margin-top: 18px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"b10. STOCKHOLDERS' EQUITY /b/font/p p style="margin-top: 6px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"biStock Repurchase Programs /i/b/font/p p style="margin-top: 6px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"On Januarynbsp;27, 2010, the Company's Board of Directors authorized a new stock repurchase program to acquire up to $275.1 million of the Company's common stock through Decembernbsp;2010, subject to any restrictions pursuant to the terms of the Company's credit agreements or otherwise. /font/p p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"For the three and six months ended Junenbsp;30, 2010, the Company acquired a total of 188,000 shares and 456,500 shares, respectively, of its common stock for $11.3 million and $25.8 million, respectively. /font/p p style="margin-top: 18px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"biStock Compensation Plans /i/b/font/p p style="margin-top: 6px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"On Marchnbsp;31, 2005, the Company's Board of Directors adopted the 2005 long-term incentive plan, which was subsequently approved by the Company's stockholders on Junenbsp;7, 2005 and became effective Julynbsp;1, 2005. This plan reserved 4,750,000 shares of common stock for grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units and other performance-based awards to selected officers, employees, non-employee directors and consultants performing services for the Company or its affiliates. On Septembernbsp;24, 2009, the Company's Board of Directors amended the 2005 long term incentive plan to provide that, in addition to settlement in shares of the Company's common stock or other securities, equity awards may be settled in cash. No more grants may be made from the 2005 long-te rm incentive plan, which expired on Junenbsp;30, 2010. /font/p p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"On Marchnbsp;25, 2010, the Company's Board of Directors adopted the 2010 Omnibus Incentive Plan (the "2010 plan"), which was subsequently approved by the Company's stockholders on Junenbsp;8, 2010, became effective Julynbsp;1, 2010 and expires on Junenbsp;30, 2015. This plan reserves 3,000,000 shares of common stock for grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance share awards, cash incentive awards, deferred stock units, and other stock-based and cash-based awards to selected officers, employees, non-employee directors and consultants performing services for the Company or its affiliates, with only employees being eligible to receive incentive stock options. /font/p p style="margin-top: 0px; margin-bottom: 0px;"font class="_mt" size="1" /fontnbsp;/p p style="margin-top: 0px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"biStock Compensation Expense /i/b/font/p p style="margin-top: 6px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"Total stock-based compensation expense recognized in the Company's unaudited condensed consolidated statements of income for the three and six months ended Junenbsp;30, 2010 and 2009 is as follows: /font/p p style="margin-top: 0px; margin-bottom: 0px; font-size: 12px;"nbsp;/p table border="0" cellspacing="0" cellpadding="0" width="100%" trtd width="68%" /td td valign="bottom" width="3%" /td td /td td /td td valign="bottom" width="3%" /td td /td td /td td valign="bottom" width="3%" /td td /td td /td td valign="bottom" width="3%" /td td /td td /td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="5" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bThree Months Endedbr /Junenbsp;30,/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="5" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bSix Months Endedbr /Junenbsp;30,/b/font/td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b2010/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b2009/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b2010/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b2009/b/font/td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom" colspan="11" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b(In thousands)/b/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Cost of operations/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"6,308/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"5,771/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"12,203/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"16,136/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"General and administrative/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"6,107/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"4,927/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"10,818/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"12,521/font/td/tr tr style="font-size: 1px;"td valign="bottom" /td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 3em;"font style="font-family: Times New Roman;" class="_mt" size="2"Total/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"12,415/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"10,698/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"23,021/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"28,657/font/td/tr tr style="font-size: 1px;"td valign="bottom" /td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td/tr/table p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"There was no stock-based compensation expense related to discontinued operations for the three and six months ended Junenbsp;30, 2010 and for the three months ended Junenbsp;30, 2009. For the six months ended Junenbsp;30, 2009, stock-based compensation expense for the Company's discontinued operations was approximately $0.1nbsp;million. This amount is included in the loss from discontinued operations in the unaudited condensed consolidated statements of income. /font/p p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"During the six months ended Junenbsp;30, 2010, the Company awarded 476,096 performance-based restricted stock units with a weighted average grant date fair value per share of $57.15 as determined on the date of grant. The performance restriction on the awards will lapse upon determination by the Board of Directors or the Compensation Committee of the Board of Directors that the Company's core earnings per share growth for the period from Januarynbsp;1, 2010 to Decembernbsp;31, 2010 met certain pre-defined vesting criteria that permit a range from 50% to 150% of such performance-based restricted stock units to vest. Upon such determination, the restrictions will lapse with respect to 33% of the award on Februarynbsp;22, 2011, an additional 33% of the award on Februarynbsp;22, 2012 and the final 34% of the award on Februarynbsp;22, 2013, pr ovided that the participant is employed by the Company on each such vesting date. /font/p p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"During the six months ended Junenbsp;30, 2010, the Company awarded 188,625 service-based restricted stock units with a weighted average grant date fair value per share of $60.49 as determined on the date of grant. Service-based restricted stock units typically vest ratably over three years provided that the participant meets the service condition on each such vesting date. /font/p p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"In Marchnbsp;2009, the Company determined that it was no longer probable that the specified performance measures associated with certain performance-based restricted stock units would be achieved. As a result, 1,242,098 performance-based restricted stock units granted during 2008 and in Januarynbsp;2009, having a weighted-average grant date fair value of $56.43 per share, are not expected to vest. The Company has not recognized stock-based compensation expense related to those awards no longer expected to vest. /font/p /div

COMPREHENSIVE INCOME

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

COMPREHENSIVE INCOME

11. COMPREHENSIVE INCOME

The components of comprehensive income, net of tax effect, are as follows:


	Three Months Ended June 30,					Six Months Ended June 30,
	2010		2009			2010			2009
	(In thousands)
Net income	$	47,320	$	29,436		$	93,974		$	57,291
Adoption of ASC 860 and ASC 810⁽¹⁾		—		—			55,881			—
Unrealized gain (loss) on securities available-for-sale		3,953		(31,186	)		(1,748	)		(29,449	)
Foreign currency translation adjustments⁽²⁾		5,757		12,521			(1,881	)		9,126

Total comprehensive income, net of tax	$	57,030	$	10,771		$	146,226		$	36,968

⁽¹⁾

These amounts related to unrealized losses associated with retained interests in the WFN Trusts and the WFC Trust, which were classified as available-for-sale. These amounts were previously reflected in accumulated other comprehensive income. Effective January 1, 2010, upon the adoption of ASC 860 and ASC 810, these interests and related accumulated other comprehensive income have been reclassified, derecognized or eliminated upon consolidation of the WFN Trusts and the WFC Trust.

⁽²⁾	Primarily related to the impact of changes in the Canadian currency exchange rate.

FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

FINANCIAL INSTRUMENTS

12. FINANCIAL INSTRUMENTS

In accordance with ASC 825, "Financial Instruments," the Company is required to disclose the fair value of financial instruments for which it is practical to estimate fair value. To obtain fair values, observable market prices are used if available. In some instances, observable market prices are not readily available and fair value is determined using present value or other techniques appropriate for a particular financial instrument. These techniques involve judgment and as a result are not necessarily indicative of the amounts the Company would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts.

Fair Value of Financial Instruments—The estimated fair values of the Company's financial instruments are as follows:


	June 30, 2010				December 31, 2009
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Financial assets
Cash and cash equivalents	$	250,335	$	250,335	$	213,378	$	213,378
Trade receivables, net		209,609		209,609		225,212		225,212
Seller's interest		—		—		297,108		297,108
Credit card receivables, net		4,516,623		4,516,623		616,298		616,298
Redemption settlement assets, restricted		476,629		476,629		574,004		574,004
Due from securitizations		—		—		775,570		775,570
Cash collateral, restricted		313,018		313,018		216,953		216,953
Financial liabilities
Accounts payable		125,534		125,534		103,891		103,891
Asset-backed securities debt—owed to securitization investors		3,352,758		3,387,008		—		—
Debt, including certificates of deposit		2,912,561		3,018,304		3,247,352		3,408,039
Derivative financial instruments		83,939		83,939		—		—

Fair Value of Assets and Liabilities Held at June 30, 2010

The following techniques and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein:

Cash and cash equivalents, trade receivables, net and accounts payable—The carrying amount approximates fair value due to the short maturity.

Credit card receivables, net—The carrying amount of credit card receivables, net approximates fair value due to the short maturity, and the average interest rates approximate current market origination rates.

Redemption settlement assets, restricted—Fair value for securities is based on quoted market prices for the same or similar securities.

Cash collateral, restricted—The spread deposits are recorded at their fair value based on discounted cash flow models. The carrying amount of excess funding deposits approximates its fair value due to the relatively short maturity period and average interest rates, which approximate current market rates.

Asset-backed securities debt—owed to securitization investors—The fair value is estimated based on the current rates available to the Company for similar debt instruments with similar remaining maturities.

Debt, including certificates of deposit—The fair value is estimated based on the current rates available to the Company for similar debt instruments with similar remaining maturities.

Derivative financial instruments—The valuation of these instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and option volatility.

Fair Value of Assets and Liabilities Held at December 31, 2009

The following techniques and assumptions were used by the Company in estimating fair values of financial instruments which were subsequently reclassified, derecognized or eliminated upon consolidation of the WFN Trusts and the WFC Trust as a result of the adoption of ASC 860 and ASC 810 as disclosed herein:

Seller's interest—Seller's interest was carried at an allocated carrying amount based on their fair value. The Company determined the fair value of its seller's interest through discounted cash flow models. The estimated cash flows used included assumptions related to rates of payments and defaults, which reflected economic and other relevant conditions. The discount rate used was based on an interest rate curve that was observable in the market place plus an unobservable credit spread. With the consolidation of the WFN Trusts and the WFC Trust on January 1, 2010, seller's interest has been eliminated.

Due from securitizations—The retained interest and interest-only strips were recorded at their fair value. The Company used a valuation model that calculated the present value of estimated future cash flows for each asset which incorporated the Company's own estimates of assumptions market participants used in determining fair value, including estimates of payment rates, defaults, net charge-offs, discount rates and contractual interest and fees. With the consolidation of the WFN Trusts and the WFC Trust on January 1, 2010, due from securitizations has been derecognized or eliminated.

Assets and Liabilities Measured on a Recurring Basis

ASC 825 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

•

Level 1, defined as observable inputs such as quoted prices in active markets;

•

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

•

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. The use of different techniques to determine fair value of these financial instruments could result in different estimates of fair value at the reporting date.

The following tables provide the assets carried at fair value measured on a recurring basis as of June 30, 2010 and December 31, 2009:


	Balance at June 30, 2010		Fair Value Measurements at June 30, 2010 Using
	Balance at June 30, 2010		Level 1		Level 2		Level 3
	(In thousands)
Government bonds⁽¹⁾	$	51,782	$	17,258	$	34,524	$	—
Corporate bonds⁽¹⁾		379,831		222,750		157,081		—
Other available-for-sale securities⁽²⁾		86,150		76,568		9,582		—
Cash collateral, restricted		313,018		—		141,228		171,790

Total assets measured at fair value	$	830,781	$	316,576	$	342,415	$	171,790

Derivative financial instruments⁽³⁾	$	83,939	$	—	$	83,939	$	—

Total liabilities measured at fair value	$	83,939	$	—	$	83,939	$	—


	Balance at December 31, 2009		Fair Value Measurements at December 31, 2009 Using
	Balance at December 31, 2009		Level 1		Level 2		Level 3
	(In thousands)
Government bonds⁽¹⁾	$	42,231	$	16,676	$	25,555	$	—
Corporate bonds⁽¹⁾		460,132		308,668		77,598		73,866
Other available-for-sale securities⁽²⁾		105,064		95,300		9,764		—
Seller's interest		297,108		—		—		297,108
Due from securitizations		775,570		—		—		775,570
Cash collateral, restricted		216,953		—		10,275		206,678

Total assets measured at fair value	$	1,897,058	$	420,644	$	123,192	$	1,353,222

⁽¹⁾	Amounts are included in redemption settlement assets in the unaudited condensed consolidated balance sheets.

⁽²⁾	Amounts are included in other current and non-current assets in the unaudited condensed consolidated balance sheets.

⁽³⁾	Amounts are included in other current liabilities and other liabilities in the unaudited condensed consolidated balance sheets.

The following tables summarize the changes in fair value of the Company's assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as defined in ASC 825 as of June 30, 2010 and 2009:


	Corporate Bonds			Seller's Interest			Due from Securitizations			Cash Collateral, Restricted
	(In thousands)
March 31, 2010	$	—		$	—		$	—		$	183,700
Total losses (realized or unrealized)
Included in earnings		—			—			—			(363	)
Included in other comprehensive income		—			—			—			—
Purchases, sales, issuances and settlements		—			—			—			(11,547	)
Transfers in or out of Level 3		—			—			—			—

June 30, 2010	$	—		$	—		$	—		$	171,790

Losses for the period included in earnings attributable to the change in unrealized gains or losses related to assets still held at June 30, 2010	$	—		$	—		$	—		$	(363	)


	Corporate Bonds			Seller's Interest			Due from Securitizations			Cash Collateral, Restricted
	(In thousands)
December 31, 2009	$	73,866		$	297,108		$	775,570		$	206,678
Adoption of ASC 860 and ASC 810		(73,866	)		(297,108	)		(775,570	)		—
Total losses (realized or unrealized)
Included in earnings		—			—			—			(330	)
Included in other comprehensive income		—			—			—			—
Purchases, sales, issuances and settlements		—			—			—			(34,558	)
Transfers in or out of Level 3		—			—			—			—

June 30, 2010	$	—		$	—		$	—		$	171,790

Losses for the period included in earnings attributable to the change in unrealized gains or losses related to assets still held at June 30, 2010	$	—		$	—		$	—		$	(330	)


	Corporate Bonds			Seller's Interest			Due from Securitizations			Cash Collateral, Restricted
	(In thousands)
March 31, 2009	$	93,748		$	41,166		$	496,320		$	173,322
Total (losses) gains (realized or unrealized)
Included in earnings		—			8,952			(9,995	)		395
Included in other comprehensive income		(10,189	)		—			(29,841	)		—
Purchases, sales, issuances and settlements		—			133,555			74,902			15,951
Transfers in or out of Level 3		—			—			—			—

June 30, 2009	$	83,559		$	183,673		$	531,386		$	189,668

Losses for the period included in earnings attributable to the change in unrealized gains or losses related to assets still held at June 30, 2009	$	—		$	—		$	(4,992	)	$	—

	Corporate Bonds			Seller's Interest			Due from Securitizations			Cash Collateral, Restricted
	(In thousands)
December 31, 2008	$	28,625		$	182,428		$	428,853		$	175,384
Total (losses) gains (realized or unrealized)
Included in earnings		—			8,543			(10,576	)		471
Included in other comprehensive income		(9,623	)		—			(30,287	)		—
Purchases, sales, issuances and settlements		64,557			(7,298	)		143,396			13,813
Transfers in or out of Level 3		—			—			—			—

June 30, 2009	$	83,559		$	183,673		$	531,386		$	189,668

Losses for the period included in earnings attributable to the change in unrealized gains or losses related to assets still held at June 30, 2009	$	—		$	—		$	(5,290	)	$	—

For the three and six months ended June 30, 2010 and 2009, gains and losses included in earnings attributable to cash collateral, restricted were included in revenue under finance charges, net in the unaudited condensed consolidated statements of income. For the three and six months ended June 30, 2009, gains and losses included in earnings for seller's interest and due from securitizations were included in securitization income in the unaudited condensed consolidated statements of income.

Assets and Liabilities Measured on a Non-Recurring Basis

The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include those associated with acquired businesses, including goodwill and other intangible assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired. During the three and six months ended June 30, 2010, the Company had no impairments related to these assets.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2010
Statement [Line Items]
INCOME TAXES	13. INCOME TAXES For the three and six months ended June 30, 2010, the Company utilized an effective tax rate of 38.2% to calculate its provision for income taxes. For the three and six months ended June 30, 2009, the Company's effective tax rate was 38.9% and 38.8%, respectively. In accordance with ASC 740-270, "Income taxes — Interim Reporting," the Company's expected annual effective tax rate for calendar year 2010 based on all known variables is 38.2%. On January 1, 2010, the Company's deferred tax asset increased by approximately $197.2 million as a result of the adoption of ASC 860 and ASC 810.

SEGMENT INFORMATION	6 Months Ended
SEGMENT INFORMATION	Jun. 30, 2010
Statement [Line Items]
SEGMENT INFORMATION	div p style="margin-top: 18px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"b14. SEGMENT INFORMATION /b/font/p p style="margin-top: 6px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"In the first quarter of 2010, the Company reorganized its segments with Private Label Services and Private Label Credit reflected as one segment. All prior year segment information has been restated to conform to the current presentation. In addition, the Company renamed its other two segments from Epsilon Marketing Services and Loyalty Services to "Epsilon" and "LoyaltyOne," respectively. /font/p p style="margin-top: 0px; margin-bottom: 0px;"font class="_mt" size="1" /fontnbsp;/p p style="margin-top: 0px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"The Company operates in three reportable segments: LoyaltyOne, Epsilon and Private Label Services and Credit. /font/p p style="margin-top: 0px; margin-bottom: 0px; font-size: 6px;"nbsp;/p table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd width="5%"font class="_mt" size="1"nbsp;/font/td td valign="top" width="2%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"bull;/font/td td valign="top" width="1%"font class="_mt" size="1"nbsp;/font/td td valign="top" align="left" p align="left"font style="font-family: Times New Roman;" class="_mt" size="2"LoyaltyOne includes the Company's Canadian AIR MILES Reward Program; /font/p/td/tr/table p style="margin-top: 0px; margin-bottom: 0px; font-size: 6px;"nbsp;/p table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd width="5%"font class="_mt" size="1"nbsp;/font/td td valign="top" width="2%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"bull;/font/td td valign="top" width="1%"font class="_mt" size="1"nbsp;/font/td td valign="top" align="left" p align="left"font style="font-family: Times New Roman;" class="_mt" size="2"Epsilon provides integrated direct marketing solutions that combine database marketing technology and analytics with a broad range of direct marketing services; and /font/p/td/tr/table p style="margin-top: 0px; margin-bottom: 0px; font-size: 6px;"nbsp;/p table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd width="5%"font class="_mt" size="1"nbsp;/font/td td valign="top" width="2%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"bull;/font/td td valign="top" width="1%"font class="_mt" size="1"nbsp;/font/td td valign="top" align="left" p align="left"font style="font-family: Times New Roman;" class="_mt" size="2"Private Label Services and Credit provides risk management solutions, account origination, funding, transaction processing, customer care and collections services for the Company's private label retail credit card programs. /font/p/td/tr/table p style="margin-top: 12px; text-indent: 4%; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"Additionally, corporate and all other immaterial businesses are reported collectively as an "all other" category labeled "Corporate/Other." Total interest expense, net and income taxes are not allocated to the segments in the computation of segment operating profit for internal evaluation purposes and have also been included in "Corporate/Other." Total assets are not allocated to the segments. The Company's utility services business and a terminated credit program have been classified as discontinued operations. See Note 15, "Discontinued Operations," for additional information. /font/p p style="margin-top: 0px; margin-bottom: 0px; font-size: 12px;"nbsp;/p table border="0" cellspacing="0" cellpadding="0" width="100%" trtd width="44%" /td td valign="bottom" width="2%" /td td /td td /td td valign="bottom" width="2%" /td td /td td /td td valign="bottom" width="2%" /td td /td td /td td valign="bottom" width="2%" /td td /td td /td td /td td valign="bottom" width="2%" /td td /td td /td td /td td valign="bottom" width="2%" /td td /td td /td/tr trtd valign="bottom" nowrap="nowrap" p style="border-bottom: #000000 1px solid; width: 121pt;"font style="font-family: Times New Roman;" class="_mt" size="1"bThree Months Ended Junenbsp;30, 2010/b/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bLoyaltyOne/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bEpsilon/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bPrivatenbsp;Labelbr /Services andbr /Credit/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bCorporate/br /Other/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bEliminations/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bTotal/b/font/td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom" colspan="19" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b(In thousands)/b/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Revenues/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"191,531/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"137,024/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"343,260/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"388/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(2,485/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"669,718/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Adjusted EBITDA/fontfont style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;"(1)/sup/fontfont style="font-family: Times New Roman;" class="_mt" size="2" /font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"58,666/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"31,277/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"133,229/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(14,243/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(1,713/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"207,216/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Depreciation and amortization/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"6,147/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"18,076/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"8,532/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"1,666/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"34,421/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Stock compensation expense/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"2,365/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"2,166/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"1,777/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"6,107/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"12,415/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Operating income (loss)/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"50,154/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"11,035/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"122,920/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(22,016/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(1,713/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"160,380/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Interest expense, net/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"83,848/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"83,848/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Income (loss) from continuing operations before income taxes/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"50,154/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"11,035/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"122,920/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(105,864/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(1,713/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"76,532/font/td/tr trtd height="16" /td td height="16" colspan="3" /td td height="16" colspan="3" /td td height="16" colspan="3" /td td height="16" colspan="4" /td td height="16" colspan="4" /td td height="16" colspan="3" /td/tr trtd valign="bottom" nowrap="nowrap" p style="border-bottom: #000000 1px solid; width: 121pt;"font style="font-family: Times New Roman;" class="_mt" size="1"bThree Months Ended Junenbsp;30, 2009/b/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bLoyaltyOne/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bEpsilon/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bPrivatenbsp;Labelbr /Services andbr /Credit/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bCorporate/br /Other/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bEliminations/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bTotal/b/font/td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom" colspan="19" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b(In thousands)/b/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Revenues/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"167,346/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"123,003/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"156,821/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"10,369/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"457,539/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Adjusted EBITDA/fontfont style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;"(1)/sup/fontfont style="font-family: Times New Roman;" class="_mt" size="2" /font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"38,334/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"30,383/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"60,999/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(7,260/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"122,456/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Depreciation and amortization/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"4,957/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"17,825/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"5,880/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"2,453/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"31,115/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Stock compensation expense/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"2,257/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"1,901/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"1,614/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"4,926/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"10,698/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Merger and other costs/fontfont style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;"(2)/sup/fontfont style="font-family: Times New Roman;" class="_mt" size="2" /font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"64/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"64/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Operating income (loss)/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"31,120/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"10,657/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"53,505/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(14,703/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"80,579/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Interest expense, net/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"34,107/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"34,107/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Income (loss) from continuing operations before income taxes/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"31,120/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"10,657/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"53,505/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(48,810/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"46,472/font/td/tr trtd valign="bottom" nowrap="nowrap" p style="border-bottom: #000000 1px solid; width: 111pt;"font style="font-family: Times New Roman;" class="_mt" size="1"bSix Months Ended Junenbsp;30, 2010/b/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bLoyaltyOne/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bEpsilon/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bPrivatenbsp;Labelbr /Services andbr /Credit/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bCorporate/br /Other/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bEliminations/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bTotal/b/font/td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom" colspan="19" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b(In thousands)/b/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Revenues/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"391,201/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"263,331/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"682,464/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"1,153/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(4,894/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"1,333,255/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Adjusted EBITDA/fontfont style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;"(1)/sup/fontfont style="font-family: Times New Roman;" class="_mt" size="2" /font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"112,253/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"58,563/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"272,984/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(30,183/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(3,426/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"410,191/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Depreciation and amortization/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"12,284/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"36,092/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"17,021/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"3,195/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"68,592/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Stock compensation expense/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"4,528/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"4,136/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"3,539/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"10,818/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"23,021/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Operating income (loss)/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"95,441/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"18,335/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"252,424/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(44,196/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(3,426/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"318,578/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Interest expense, net/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"166,554/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"166,554/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Income (loss) from continuing operations before income taxes/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"95,441/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"18,335/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"252,424/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(210,750/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(3,426/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"152,024/font/td/tr trtd height="16" /td td height="16" colspan="3" /td td height="16" colspan="3" /td td height="16" colspan="3" /td td height="16" colspan="4" /td td height="16" colspan="4" /td td height="16" colspan="3" /td/tr trtd valign="bottom" nowrap="nowrap" p style="border-bottom: #000000 1px solid; width: 111pt;"font style="font-family: Times New Roman;" class="_mt" size="1"bSix Months Ended Junenbsp;30, 2009/b/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bLoyaltyOne/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bEpsilon/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bPrivate Labelbr /Services andbr /Credit/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bCorporate/br /Other/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bEliminations/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bTotal/b/font/td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom" colspan="19" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b(In thousands)/b/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Revenues/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"327,977/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"240,569/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"345,978/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"22,466/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"936,990/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Adjusted EBITDA/fontfont style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;"(1)/sup/fontfont style="font-family: Times New Roman;" class="_mt" size="2" /font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"93,233/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"52,521/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"148,469/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(19,941/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"274,282/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Depreciation and amortization/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"9,911/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"33,832/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"11,931/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"4,740/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"60,414/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Stock compensation expense/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"6,281/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"5,225/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"4,631/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"12,520/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"28,657/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Merger and other costs/fontfont style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;"(2)/sup/fontfont style="font-family: Times New Roman;" class="_mt" size="2" /font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"3,012/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"3,012/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Operating income (loss)/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"77,041/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"13,464/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"131,907/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(40,213/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"182,199/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Interest expense, net/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"65,394/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"65,394/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Income (loss) from continuing operations before income taxes/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"77,041/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"13,464/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"131,907/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"(105,607/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2")nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"#8212;nbsp;nbsp;/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"116,805/font/td/tr/table p style="border-bottom: #000000 0.5pt solid; line-height: 8px; margin-top: 0px; width: 10%; margin-bottom: 2px;" /p table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd valign="top" width="4%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2" /fontfont style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;"(1)/sup/font/td td valign="top" align="left" p align="left"font style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;" /sup/fontfont style="font-family: Times New Roman;" class="_mt" size="2"Adjusted EBITDA is a non-GAAP financial measure equal to income from continuing operations, the most directly comparable GAAP financial measure, plus stock compensation expense, provision for income taxes, interest expense, net, depreciation and amortization, merger and other costs. Adjusted EBITDA is presented in accordance with ASCnbsp;280, "Segment Reporting," as it is the primary performance metric by which senior management is evaluated. /font/p/td/tr/table table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd valign="top" width="4%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2" /fontfont style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;"(2)/sup/font/td td valign="top" align="left" p align="left"font style="font-family: Times New Roman;" class="_mt" size="1"sup style="position: relative; bottom: 0.8ex; vertical-align: baseline;" /sup/fontfont style="font-family: Times New Roman;" class="_mt" size="2"Merger and other costs are not allocated to the segments in the computation of segment operating profit for internal evaluation purposes. Merger costs represent investment banking, legal and accounting costs directly associated with the proposed merger with an affiliate of The Blackstone Group. Other costs represent compensation charges related to the departure of certain employees resulting from cost saving initiatives and other non-routine costs associated with the disposition of certain businesses. /font/p/td/tr/table /div

DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

DISCONTINUED OPERATIONS

15. DISCONTINUED OPERATIONS

In February 2009, the Company completed the sale of the remainder of its utility services business, including the termination of a services agreement and the resolution of certain contractual disputes, to a former utility client. In November 2009, the Company terminated operations of its credit program for web and catalog retailer VENUE. These have been treated as discontinued operations under ASC 205-20, "Presentation of Financial Statements — Discontinued Operations." The underlying assets of the discontinued operations for the periods presented in the unaudited condensed consolidated balance sheets are as follows:


	June 30, 2010		December 31, 2009
	(In thousands)
Assets:
Credit card receivables, net	$	22,020	$	34,623

Assets of discontinued operations	$	22,020	$	34,623

The following table summarizes the operating results of the discontinued operations:


	Three Months Ended June 30,					Six Months Ended June 30,
	2010		2009			2010		2009
	(In thousands)
Revenue	$	—	$	2,872		$	—	$	8,335

Income (loss) before provision for income taxes		—		1,626			—		(21,642	)
(Provision) benefit from income taxes		—		(577	)		—		7,497

Income (loss) from discontinued operations	$	—	$	1,049		$	—	$	(14,145	)

NON-CASH FINANCING AND INVESTING ACTIVITIES

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

NON-CASH FINANCING AND INVESTING ACTIVITIES

16. NON-CASH FINANCING AND INVESTING ACTIVITIES

On January 1, 2010, the Company adopted ASC 860 and ASC 810 resulting in the consolidation of the WFN Trusts and the WFC Trust. Based on the carrying amounts of the WFN Trusts' and the WFC Trust's assets and liabilities as prescribed by ASC 810, the consolidation of the trusts had the following non-cash impact to the financing and investing activities for the six months ended June 30, 2010 as follows:

•

elimination of $74 million in redemption settlement assets for those interests retained in the WFN Trusts,

•

elimination of $775 million in retained interests classified in due from securitizations,

•

consolidation of $4.1 billion in credit card receivables, and

•

consolidation of $3.7 billion in asset-backed securities.

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2010
Statement [Line Items]
SUBSEQUENT EVENTS	17. SUBSEQUENT EVENTS On July 1, 2010, the Company completed the acquisition of the Direct Marketing Services (DMS) division of Equifax, Inc. The total purchase price was approximately $117 million. Equifax's DMS division provides proprietary data-driven, integrated marketing solutions through two complementary offers: database marketing and hosting, and data services, including U.S. consumer demographic information. In connection with the acquisition, the division will be integrated into the Company's Epsilon segment. On July 8, 2010, Master Trust I issued $450.0 million of term asset-backed securities to investors in a public offering. The offering consisted of $355.5 million of Class A Series 2010-A asset-backed notes that have a fixed interest rate of 3.96% per year, $16.9 million of Class M Series 2010-A asset-backed notes that have a fixed interest rate of 5.2% per year, $21.4 million of Class B Series 2010-A asset-backed notes that have a fixed interest rate of 6.75% per year and $56.2 million of Class C Series 2010-A asset-backed notes that have a fixed interest rate of 5.0% per year. The Class A, Class M, Class B and Class C notes will all mature in June 2015. The Class C Series 2010-A notes were retained by the Company. With the consolidation of the WFN Trusts, the Class C Series 2010-A notes are elimin ated from the unaudited condensed consolidated financial statements. On July 15, 2010, the Office of the Comptroller of the Currency ("OCC") approved an application filed by the Company's credit card services bank subsidiary, WFNNB, to change the location of the bank to Wilmington, Delaware through the merger of the bank with an interim banking association organized under the laws of the United States and located in Wilmington, Delaware. WFNNB is a national banking association and a limited purpose credit card bank and is regulated, supervised, and examined by the OCC, its primary regulator. WFNNB is also subject to regulation by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation. Neither the name of the bank nor any of its assets, liabilities or contemplated business purposes will change as a result of the merger. It is anticipated the merger will be completed in the third quart er of 2010. On August 6, 2010, the Company, as borrower, and ADS Alliance Data Systems, Inc., ADS Foreign Holdings, Inc., Alliance Data Foreign Holdings, Inc., Epsilon Marketing Services, LLC and Epsilon Data Management, LLC, as guarantors, entered into a term loan agreement with the Bank of Montreal, as administrative agent, and various other agents and banks (the "2010 Term Loan"). The 2010 Term Loan is an unsecured loan in the amount of $200.0 million with the option, up to sixty days after the closing date, to increase the amount by $100.0 million up to a total loan amount of $300.0 million. The Company borrowed $221.0 million on August 6, 2010, and $79.0 million remains available on the option to increase. The proceeds were used to refinance existing indebtedness. Amounts borrowed under the 2010 Term Loan are scheduled to mature on March 30, 2012.