First Data 2008 Annual Report Download - page 164

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 14: Stockholders' Equity
Dividends
The Company's senior secured revolving credit facility, senior secured term loan facility, senior publicly tradable notes, senior unsecured cash-pay
notes, senior unsecured PIK notes, and senior subordinated unsecured notes contain restrictions on the Company's ability to pay dividends. The restrictions are
subject to numerous qualifications and exceptions, including an exception that allows the Company to pay a dividend to repurchase, under certain
circumstances, the equity of Parent held by employees, officers and directors that were obtained in connection with the stock compensation plans. The
Company paid cash dividends to its parent totaling $1.8 million during 2008.
Subsequent to the spin-off and in December 2006, the Company reduced its quarterly dividends from $0.06 per common share to $0.03 per common
share for common stockholders of record as of January 2, 2007. Cash dividends of $45.3 million and $160.5 million were declared for the predecessor period
from January 1, 2007 through September 24, 2007 and the year ended December 31, 2006, respectively.
As a result of the spin-off, FDC recorded a net increase to retained earnings of $554.5 million which represented the distribution of the net liabilities
and certain equity balances related to Western Union to shareholders. Such distribution occurred shortly after the spin-off and is net of the transfer by Western
Union of $1 billion of Western Union notes and $2.5 billion in cash to FDC as well as the net settlement of various intercompany balances and realignment of
certain operating assets.
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