NetSpend 2013 Annual Report Download - page 67

For awards granted before January 1, 2006 that were not fully vested on January 1, 2006, the Company will
record the tax benefits from the exercise of stock options as increases to the “Additional paid-in capital” line item
of the Consolidated Balance Sheets. If the Company does recognize tax benefits, the Company will record these
tax benefits from share-based compensation costs as cash inflows in the financing section and cash outflows in
the operating section in the Statement of Cash Flows. The Company has elected to use the short-cut method to
calculate its historical pool of windfall tax benefits.
As of December 31, 2013, there was approximately $6.1 million of total unrecognized compensation cost related
to TSYS stock options that is expected to be recognized over a remaining weighted average period of 1.4 years.
NOTE 19 Treasury Stock
The following table summarizes shares held as treasury stock and their related carrying value at December 31 :
(in thousands)
Number of
Treasury
Shares Treasury Shares Cost
2013 ..................................................................... 15,073 $326,996
2012 ..................................................................... 15,440 287,301
2011 ..................................................................... 12,829 225,034
Stock Repurchase Plan
On April 20, 2010, TSYS announced a stock repurchase plan to purchase up to 10 million shares of TSYS stock.
The shares may be purchased from time to time over the next two years at prices considered attractive to the
Company. On May 3, 2011, TSYS announced that its Board had approved an increase in the number of shares
that may be repurchased under its current share repurchase plan from up to 10 million shares to up to 15 million
shares of TSYS stock. On July 24, 2012, TSYS announced that its Board had approved an increase in the number
of shares that may be repurchased under its current share repurchase plan from up to 15 million shares to up to
20 million shares of TSYS stock. The expiration date of the plan was also extended to April 30, 2014. During
2013, the Company purchased 3.1 million shares for approximately $97.6 million, at an average price of $31.48.
During 2012, the Company purchased 3.2 million shares for approximately $74.6 million, at an average price of
$23.31. During 2011, the Company purchased 6.6 million shares for approximately $120.6 million, at an average
price of $18.28. In January 2014, the TSYS Board approved an increase in the number of shares that may be
repurchased under its current share repurchase plan from up to 20 million shares to up to 28 million shares of
TSYS stock. With the increase, TSYS has 12.0 million shares available to be repurchased. In addition, the
expiration date of the plan was extended to April 30, 2015.
The following table sets forth information regarding the Company’s purchases of its common stock on a monthly
basis during the three months ended December 31, 2013:
(in thousands, except per share data)
Total Number
of Shares
Purchased Average Price Paid per Share
Total Number of
Cumulative shares Purchased
as Part of Publicly
announced Plans or
Programs
Maximum
Number of
Shares That
May Yet Be
Purchased
Under the Plans
or Programs
October 2013 ................. — $ — 12,893 7,107
November 2013 ............... — — 12,893 7,107
December 2013 ............... 3,100 31.48 15,993 4,007
Total ...................... 3,100 $31.48
Treasury Shares
In 2008, the Compensation Committee approved “share withholding for taxes” for all employee nonvested
awards, and also for employee stock options under specified circumstances. The dollar amount of the income tax
liability from each exercise is converted into TSYS shares and withheld at the statutory minimum. The shares are
added to the treasury account and TSYS remits funds to the Internal Revenue Service to settle the tax liability.
During 2013 and 2012, the Company acquired 264,383 shares for approximately $6.3 million and 31,000 shares
for approximately $671,000, respectively, as a result of share withholding for taxes.
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