First Data 2009 Annual Report Download - page 158

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
A summary of Holdings restricted stock award and restricted stock unit activity for the year ended
December 31, 2009 is as follows (awards/units in millions):
2009
Awards/Units
Weighted-
Average
Grant-Date
Fair Value
Non-vested at January 1 ....................................... 1.7 $5
Granted .................................................... 0.2 $3
Cancelled / Forfeited .......................................... (0.4) $5
Non-vested at December 31 .................................... 1.5 $5
Predecessor Equity Plans
The following table sets forth total stock-based compensation expense recognized in the noted line items of
the Consolidated Statements of Operations resulting from stock options, non-vested restricted stock awards,
non-vested restricted stock units as well as the employee stock purchase plan (“ESPP”) (in millions):
Predecessor
Period from
January 1
through
September 24,
2007
Income before income taxes, equity earnings in affiliates and discontinued
operations ............................................................ $(247.4)
Income tax benefit ....................................................... 92.3
Net income from continuing operations ...................................... $(155.1)
The above table includes expense of $73.9 million in the predecessor period from January 1, 2007 through
September 24, 2007, net of tax, resulting from restricted stock awards and restricted stock units. Included in the
predecessor period in 2007 is $175.9 million of stock-based compensation expense due to the accelerated vesting
of stock options, restricted stock awards and restricted stock units as the result of change in control provisions
upon closing of the merger. There was no stock-based compensation capitalized during the predecessor period
from January 1, 2007 through September 24, 2007. Stock-based compensation expense was recognized in the
“Cost of services” and “Selling, general and administrative” line items of the Consolidated Statements of
Operations.
As discussed in Note 2, vesting of FDC stock options, restricted stock awards and restricted stock units was
accelerated upon closing of the merger. As a result, holders of stock options received cash equal to the intrinsic
value of the awards based on a market price of $34.00 per share while holders of restricted stock awards and
restricted stock units received $34.00 per share in cash, without interest, and the associated options and restricted
stock were cancelled. Vesting of Western Union options, restricted stock awards and restricted stock units held
by FDC employees was also accelerated upon closing of the merger. The acceleration of the vesting period
resulted in a corresponding acceleration of expense recognition associated with the above noted awards.
Stock Options and Employee Stock Purchase Plan Rights
FDC had two plans in the predecessor period that provided for the granting of stock options to employees
and other key individuals who performed services for the Company. The options had been issued at prices
equivalent to or in excess of the common stock’s fair market value at the date of grant and generally had 10-year
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