First Data 2007 Annual Report Download - page 131

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The successor period beginning balance of OCI was zero due to the previous balance being eliminated in purchase accounting for the merger.
Other Stockholders' Equity Transactions
In 2007, the Company accelerated vesting of all outstanding stock options, restricted stock awards and restricted stock units as a result of the merger
transaction. For information regarding stock compensation plans refer to Note 15 and for information regarding the merger refer to Note 2.
The following table presents stock repurchase programs authorized by the Board of Directors that were utilized for the predecessor period during the
year ended December 31, 2005 through the predecessor period from January 1, 2007 through September 24, 2007, disclosing total shares purchased under
each program during the respective years and the associated cost (in millions):
Predecessor
Period from January 1
through September 24,
2007
Year ended December 31,
2006 2005
Treasury
Shares Cost
Treasury
Shares Cost
Treasury
Shares Cost
Share repurchase programs:
$1.5 billion, authorized October 2004 — — — — 22.2 $ 905.8
$2.0 billion, authorized February 2005 — — 13.1 $ 325.8 20.2 807.8
— — 13.1 $ 325.8 42.4 $ 1,713.6
Treasury stock purchases related to employee benefit plans 11.2 $ 335.3 22.4 961.1 11.3 461.4
Total stock repurchases 11.2 $ 335.3 35.5 $ 1,286.9 53.7 $ 2,175.0
The difference between the cost of shares repurchased noted in the table above and the amount reflected in the Consolidated Statements of Cash Flows
is due to timing of trade settlements. Following the September 24, 2007 merger transaction, the Company terminated the registration of all equity securities
and will no longer make repurchases under existing plans and programs.
Common Stock Warrants
Upon the formation of FDGS in 2000, the Company issued a warrant to iFormation Group to purchase 3.5 million shares of FDC common stock at a
price of $40.025 per share before giving effect to the adjustment for the Company's spin-off of The Western Union Company. On September 29, 2006, the
holder of the warrant originally issued on November 16, 2000 exercised its right to a cashless exercise of the warrant. The Company issued 359,824 shares of
its common stock to the warrant holder in connection with the cashless exercise.
In connection with a service agreement executed in 2003, the Company issued a warrant to purchase shares of FDC common stock. After adjustment
for the Company's spin-off of The Western Union Company, the warrant provided for the purchase of 353,396 shares at a price of $28.30 per share. In
conjunction with the merger, the warrant was exercised.
Note 15: Stock Compensation Plans
Successor Equity Plans
On October 26, 2007, the Company established a stock incentive plan for certain management employees of FDC and its affiliates ("stock plan"). This
stock plan is at the Holdings level which owns 100% of FDC's equity interests. The stock plan provides the opportunity for certain management employees to
purchase shares in Holdings and then receive a number of options or restricted stock based on a multiple of their investment in such shares. The employees
that choose to invest will enter into a management stockholders' agreement. Principal terms of the management stockholders' agreement include restrictions
on transfers, lock ups, right of first refusal, registration rights, and a confidentiality, non-solicitation and non-compete covenant.
129