Item 8.01. Other Events.
Indemnification Update
On July 1, 2019, the Company completed the sale of its Epsilon segment to
Publicis Groupe S.A. ("Publicis"). As previously disclosed, under the terms of
the agreement governing that transaction, Alliance Data Systems Corporation (the
"Company") agreed to indemnify Publicis and its affiliates from and against any
losses arising out of or related to a United States Department of Justice
("DOJ") investigation of Epsilon that was in process at the time the agreement
was executed. The DOJ investigation related to third-party marketers who sent,
or allegedly sent, deceptive mailings and the provision of data and services to
those marketers by Epsilon's data practice. Epsilon actively cooperated with the
DOJ in connection with the investigation. On January 19, 2021, Epsilon and the
DOJ filed with the court a deferred prosecution agreement ("DPA") to resolve the
matters that were the subject of the investigation. Pursuant to the DPA, Epsilon
agreed, among other things, to pay penalties and consumer compensation in the
aggregate amount of $150 million, to be paid in two equal installments, the
first in January, 2021 and the second in January, 2022.  In accordance with ASC
450, the Company records a loss contingency when a loss is probable and an
amount can be reasonably estimated. Based on the information then available, for
the year ended December 31, 2019, the Company recorded a loss contingency of $40
million ($32.9 million, net of tax), which was included in loss from
discontinued operations. Based on the amount of the penalties and consumer
compensation Epsilon is required to pay pursuant to the terms of the DPA, for
the year ended December 31, 2020 the Company recorded an additional loss
contingency of $110 million ($81.3 million, net of tax), which was included in
loss from discontinued operations.

Item 9.01 Financial Statements and Exhibits.



(d) Exhibits

Exhibit No.   Document Description

104           Cover Page Interactive Data File (embedded within the Inline XBRL document).

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