First Data 2012 Annual Report Download - page 99

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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, 2012 is as follows:
The total intrinsic value and amount paid related to stock options exercised during the twelve months ended December 31, 2012
was $0.2 million and no shares were exercised during 2011 or 2010.
Restricted Stock Awards and Restricted Stock Units
Restricted stock awards were granted under the stock plan during 2012, 2011 and 2010. 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, 2012 there was approximately $41 million of total unrecognized compensation expense
related to restricted stock. Approximately $0.1 million will be recognized over a period of approximately two years with the remainder
recognized upon the occurrence of certain liquidity or employment termination events.
During 2012, 2011, and 2010, the Company paid $1.5 million, $0.5 million, and $2.5 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, 2012 is as
follows:
The total fair value of shares vested (measured as of the date of vesting) during the twelve months ended December 31, 2012,
2011 and 2010 was $2.5 million, $0.5 million, and $2.4 million, respectively.
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.
99
(options in millions) Options
Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual
Term
Outstanding as of January 1, 2012 73.0 $3.00
Grante
d
8.0 $3.00
Exercised (0.4) $ 3.50
Cancelled / Forfeited (3.0)$3.00
Outstanding as of December 31, 2012
77.6
$3.00 7 years
Options exercisable as of December 31, 2012 27.5 $3.00
6 years
(awards/units in millions) Awards/Units
Weighted-Average
Grant-Date Fair Value
N
on-vested as of January 1, 2012 10.9 $3.14
Grante
d
4.0 $3.00
Veste
d
(0.7) $4.74
Cancelled / Forfeited (0.6) $3.16
N
on-vested as of December 31, 2012
13.6
$3.00