First Data 2008 Annual Report Download - page 166

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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, 2006 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
Treasury
Shares Cost
Treasury
Shares Cost
Share repurchase programs:
$2.0 billion, authorized February 2005 — — 13.1 $ 325.8
— — 13.1 325.8
Treasury stock purchases related to employee benefit plans 11.2 $ 335.3 22.4 961.1
Total stock repurchases 11.2 $ 335.3 35.5 $ 1,286.9
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 no longer makes repurchases.
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 Western Union. 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 Western Union, 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, Holdings 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 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. The expense associated with this
plan is recorded by FDC. The number of shares authorized under the stock plan is 119.5 million, 83 million of which are authorized for options.
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