First Data 2011 Annual Report Download - page 106

Expected dividend yield—No routine dividends are currently being paid by Holdings, or are expected to be paid in future
periods.
Expected volatility—As Holdings is a non-publicly traded company, the expected volatility is based on the historical volatilities
of a group of guideline companies.
Expected term—The Company estimated the expected term by considering the historical exercise and termination behavior of
employees that participated in the Company's previous equity plans, the vesting conditions of options granted under the stock plan, as
well as the impact of limited liquidity for common stock of a non-publicly traded company.
Fair value of stock—The Company relied in part upon a third-party valuation firm in determining the fair value of Holdings
stock. All key assumptions and valuations were determined by and are the responsibility of management.
A summary of Holdings stock option activity for the year ended December 31, 2011 is as follows:
(options in millions) Options
Weighted-Average
Exercise Price
Remaining
Contractual
Term
Outstanding as of January 1, 2011 70.0 $ 3.00
Granted 6.7 $ 3.00
Cancelled / Forfeited (3.7)$ 3.03
Outstanding as of December 31, 2011 73.0 $ 3.00 6 years
Options exercisable as of December 31, 2011 19.2 $ 3.00 6 years
Restricted Stock Awards and Restricted Stock Units
Restricted stock awards were granted under the stock plan during 2011, 2010 and 2009. Grants were made as incentive awards.
The restrictions on the awards granted subsequent to the modifications described above will lapse upon a qualified public offering, a
change in control or certain employment termination or liquidity events. As such, the Company is not recognizing expense on awards
granted subsequent to the modifications described above. The Company is continuing to recognize expense on the restricted stock
awards granted prior to the modifications described above based on the original grant date fair value amortized over the remaining
original vesting schedule. As of December 31, 2011 there was approximately $32 million of total unrecognized compensation
expense, net of estimated forfeitures, related to restricted stock. Approximately $1 million will be recognized over a weighted-average
period of approximately 1.4 years while approximately $31 million will only be recognized upon certain liquidity events or certain
termination events.
During 2011, 2010, and 2009, the Company paid $0.5 million, $2.5 million, and $0.2 million, respectively, to repurchase stock
awards from employees that terminated employment with the Company.
A summary of Holdings restricted stock award and restricted stock unit activity for the year ended December 31, 2011 is as
follows:
(awards/units in millions) Awards/Units
Weighted-Average
Grant-Date Fair Value
Non-vested as of January 1, 2011 8.4 $ 3.19
Granted 3.0 $ 3.00
Cancelled / Forfeited (0.5) $ 3.06
Non-vested as of December 31, 2011 10.9 $ 3.14
Note 14: Employee Benefit Plans
Defined Contribution Plans
FDC maintains defined contribution savings plans covering virtually all of the Company's U.S. employees and defined
contribution pension plans for international employees primarily in the United Kingdom and Australia. The plans provide tax-deferred
amounts for each participant, consisting of employee elective contributions, Company matching and discretionary Company
contributions.
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