First Data 2009 Annual Report Download - page 73

FIRST DATA CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
During 2009, the Company paid $10.7 million related to a note due in 2009. During 2008, the Company
paid $81.7 million related to notes due in 2008 and repurchased $18.7 million in debt (par value of $30 million).
In January 2007, the Company repurchased $32.4 million of its 4.7% senior notes due August 1, 2013, $30.2
million of its 4.85% senior notes due October 1, 2014, and $28.0 million of its 4.95% senior notes due June 15,
2015. On September 24, 2007 and in conjunction with the merger, the Company repurchased $2.0 billion of debt.
In December 2007, the Company paid off its medium-term note due in 2008 for $25.6 million.
Payments for capital leases were $68.2 million for 2009, $57.1 million for 2008, $14.3 million for the
successor 2007 period and $35.0 million for the predecessor 2007 period.
Proceeds from Issuance of Common Stock
The Company received proceeds in the 2007 successor period representing equity funding from its parent,
Holdings, related to the merger. Proceeds during the 2007 predecessor period resulted from stock option
exercises and purchases under the Company’s employee stock purchase plan.
Distributions and Dividends Paid to Noncontrolling Interests
Distributions and dividends paid to noncontrolling interests primarily represent distributions of earnings.
The decrease in 2009 from 2008 is primarily the result of the deconsolidation of WFMS as discussed in
“Overview” above. The 2007 predecessor period also includes the distribution of $27.6 million of proceeds
received from the sale of Taxware to noncontrolling interests.
Contributions from Noncontrolling Interests
Activity in 2009 represents the cash contribution from Rockmount to BAMS. The contribution represents
the cash contributed by the third-party investor that controls Rockmount. For additional information regarding
the BAMS alliance, refer to the “Overview” section above.
Purchases of Noncontrolling Interest
For information concerning the Company’s purchases of noncontrolling interests refer to the “Acquisitions”
section above as well as Note 4 to the Consolidated Financial Statements included in Item 8 of this Form 10-K.
Capital Contributed by Parent
During 2008, the Company received capital contributions from Holdings, comprised of the proceeds from
purchases of shares in Holdings by certain management employees of FDC. The Company used these
contributions to fund operations.
Excess Tax Benefit from Share-based Payment Arrangement
The excess tax benefit from share-based payment arrangement in 2008 represents the exercise of Western
Union stock options and restricted stock held by FDC employees. The excess tax benefit from share-based
payment arrangement in 2007 represents the exercise of and accelerated payout of stock options and restricted
stock. This is also reflected in the “Cash Flows from Operating Activities from Continuing Operations” section
above.
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