Western Union 2011 Annual Report Download - page 144

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THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
remaining converted unvested Western Union Stock-Based Awards vested. As a result of this accelerated vesting,
there is no remaining unamortized compensation expense associated with such converted Stock-Based Awards.
After the Spin-off, the Company receives all cash proceeds related to the exercise of all Western Union stock
options, recognizes all stock compensation expense and retains the resulting tax benefits relating to Western
Union awards held by Western Union employees. First Data recognizes all stock-based compensation expense
and retains all associated tax benefits for Western Union Stock-Based Awards held by First Data employees.
Stock Option Activity
A summary of Western Union stock option activity for the year ended December 31, 2011 was as follows
(options and aggregate intrinsic value in millions):
Year Ended December 31, 2011
Options
Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic
Value
Outstanding as of January 1, ..................... 37.5 $ 18.76
Granted ..................................... 1.8 20.85
Exercised .................................... (5.8) 17.10
Cancelled/forfeited ............................ (2.8) 20.40
Outstanding at December 31, .................... 30.7 $ 19.05 4.3 $ 26.4
Options exercisable as of December 31, ............ 25.4 $ 19.43 3.5 $ 15.1
As of December 31, 2011, approximately 32% of outstanding options to purchase shares of common stock of
the Company were held by employees of First Data.
The Company received $98.8 million, $44.1 million and $23.9 million in cash proceeds related to the exercise
of stock options during the years ended December 31, 2011, 2010 and 2009, respectively. Upon the exercise of
stock options, shares of common stock are issued from authorized common shares.
The Company’s calculated pool of excess tax benefits available to absorb write-offs of deferred tax assets in
subsequent periods was approximately $6.1 million as of December 31, 2011. The Company realized total tax
benefits during the years ended December 31, 2011, 2010 and 2009 from stock option exercises of $4.8 million,
$1.4 million and $0.8 million, respectively.
The total intrinsic value of stock options exercised during the years ended December 31, 2011, 2010 and 2009
was $20.6 million, $8.2 million and $8.6 million, respectively.
137