First Data 2008 Annual Report Download - page 172

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Upon the exercise of stock options (or the issuance of restricted stock awards as described below), shares of common stock were issued from treasury
stock. The Company maintained a systematic buyback program with its purchasing agent. The Company had set up a graduated scale of shares to be
purchased based on the number of shares currently held in treasury stock.
Restricted Stock Awards and Restricted Stock Units
The Company granted 3.7 million restricted stock awards and restricted stock units in 2007.
During 2006, the Company implemented a new incentive compensation plan for certain employees which provided for the issuance of 1.1 million
restricted stock awards or restricted stock units upon the achievement of certain performance criterion that were met in the third quarter 2006. The fair value
of the awards granted in February 2006 was measured based on the market value of the shares on the date of grant. The vesting of the awards was accelerated
upon closing of the merger as noted above.
The total fair value of shares vested (measured as of the date of vesting excluding the impact of accelerated vesting) was $9.8 million and $3.9 million
during the predecessor periods from January 1, 2007 through September 24, 2007 and the year ended December 31, 2006, respectively.
Note 16: Employee Benefit Plans
Defined Contribution Plans
FDC maintains a defined contribution savings plan covering virtually all of the Company's U.S. employees and a Defined Contribution Pension Plan for
employees in the United Kingdom. The plans provide tax-deferred amounts for each participant, consisting of employee elective contributions, Company
matching and discretionary Company contributions.
Prior to the merger, the Company provided non-qualified deferred compensation plans for certain highly compensated employees. The plans provided
tax-deferred contributions and matching of Company contributions under the defined contribution plans otherwise limited by the IRS or plan limits. These
plans were terminated in October 2007.
The aggregate amounts charged to expense in connection with these plans were $35.4 million in 2008, $14.7 million for the successor period from
September 25, 2007 through December 31, 2007 and $39.8 million for the predecessor period from January 1, 2007 through September 24, 2007 and $50.4
million in 2006.
Defined Benefit Plans
The Company has a defined benefit pension plan which is frozen and covers certain full-time employees in the U.S. The Company also has separate
plans covering certain employees located in the United Kingdom, Greece, Austria and Germany. The United Kingdom Defined Benefit Plan is no longer
offered to new employees; however, the Company is required to continue offering benefits to employees that were participating in the plan as of August 1,
2004. The cost of retirement benefits for eligible employees, measured by length of service, compensation and other factors, is being funded in accordance
with laws and regulations of the respective countries.
In December 2006, the Company adopted the recognition provision of SFAS No. 158, "Employers' Accounting for Defined Benefit Pension and Other
Postretirement Plans—an Amendment of FASB Statements No. 87, 88, 106, and 132(R)." This statement requires a company to recognize the funded status of
a benefit plan
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