2.2.0.7falseStock Option Plans0210 - Disclosure - Stock Option Planstruefalsefalsefalse1USDfalsefalseUSDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0$20us-gaap_ShareBasedCompensationAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalsexbrli:stringItemTypestringNo definition available.false31us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabelfalse1falsefalsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(9) Stock Option Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Awards issued to our employees prior to the spin-off were originally issued under plans
established by FIS and old FNF. On July 2, 2008, in connection with the spin-off, all options and
restricted stock awards held by our employees prior to the spin-off were converted into options and
awards issuable in our common stock, authorized by our new stock option plan. The exercise price
and number of shares subject to each option and restricted stock award were adjusted to reflect the
differences in FIS’s and our common stock prices, which resulted in an equal fair value of the
options before and after the exchange. Therefore, no compensation charge was recorded in connection
with the conversion. Since July 2, 2008, all options and awards held by our employees are issuable
in LPS common stock.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our employees participate in LPS’s 2008 Omnibus Incentive Plan (the “Plan”). Under the Plan,
the Company may grant up to 14 million share-based awards to officers, directors and key employees.
As of June 30, 2010, 3.0 million share-based awards were available for future grant under the Plan.
The shares may be issued from authorized and unissued shares of the Company’s common stock, or from
the Company’s treasury shares. Expired and forfeited awards are available for re-issuance. Vesting
and exercise of share-based awards are generally contingent on continued employment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company recognizes equity compensation expense on a straight-line basis over the vesting
period of share-based awards. We recorded stock compensation expense of $7.3 million and $6.5
million, and $13.8 million and $13.3 million during the three and six months ended June 30, 2010
and 2009, respectively, which is included in selling, general and administrative expenses in the
accompanying consolidated statements of earnings. Additionally, we recorded an income tax benefit
(expense) related to the exercise of stock options of $0.6 million and $0.2 million, and $(0.2)
million and $1.4 million for the three and six months ended June 30, 2010 and 2009, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the three and six months ended June 30, 2010 and 2009, respectively, $1.8 million and
$0.4 million, and $2.2 million and $1.5 million of cash was used for minimum statutory withholding
requirements upon net settlement of employee share-based awards.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2010, the Company had $57.3 million of unrecognized compensation cost related
to share-based payments, which is expected to be recognized in pre-tax earnings over a weighted
average period of 1.53 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Options</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We measured the fair value of the awards at the date of grant using a Black-Scholes option
pricing model with various assumptions. The risk-free interest rate is based on the rate in effect
for the expected term of the option at the grant date. The dividend yield is based on historical
dividends. The volatility assumptions are based on historical volatilities of comparable publicly
traded companies using daily closing prices for the historical period commensurate with the
expected term of the option. Due to the Company’s recent public status, its historical volatility
data is not considered in determining expected volatility. Currently, the expected life of the
options is determined based on the Securities and Exchange Commission’s safe harbor provision for
companies without enough historical data. Previously, the expected life of the options was
determined based on the simplified assumption that the options will be exercised evenly from
vesting to expiration.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes weighted average assumptions used to estimate fair values for
awards granted during the six months ended June 30, 2010 and 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Risk Free</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Expected</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Interest</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Volatility</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Dividend</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Expected Life</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Period</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Rate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Factor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Yield</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(In Years)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">10.87</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.3</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">36</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.1</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">4.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2009
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">8.30</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">35</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">5.0</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes stock option activity under the Plan during the six months
ended June 30, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Remaining</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Number</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Exercise</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Contractual</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Exercisable</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>of Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Price</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Life</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding as of December 31, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">6,806,710</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">32.16</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">1,434,700</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36.15</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercised (1)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(399,415</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">32.76</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(19,300</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">33.42</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding as of June 30, 2010 (2)
</div></td>
<td> </td>
<td> </td>
<td align="right">7,822,695</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32.86</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.05</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,601,257</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>The total intrinsic value of stock options exercised during the three and six months ended
June 30, 2010 was $0.5 million and $3.0 million, respectively.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>The total intrinsic value of stock options outstanding as of June 30, 2010 was $12.5 million.
The total intrinsic value of stock options exercisable as of June 30, 2010 was $8.7 million.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The number of shares vested and expected to vest, which is calculated using our forfeiture
rate of 2%, total approximately 7.7 million, have a weighted average remaining contractual life of
5.05 years, a weighted average exercise price of $32.86 and an intrinsic value of $12.2 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Restricted Stock</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 10, 2010, we granted approximately 0.4 million shares of restricted stock with a grant
date fair value of $36.14. This grant is subject to both a service and performance-based vesting
condition. If the performance objective is not achieved, the restricted stock is subject to
automatic forfeiture to the Company for no consideration. Dividends on the unvested restricted
stock are accrued until the vest date, at which time they are paid in full to the participants.
Additionally, all executive officers of the Company who were granted restricted stock in connection
with this grant are required to hold a portion of their vested shares for a period of six months
following the vesting of each tranche.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2010, approximately 0.5 million shares of restricted stock awards with
service-based vesting conditions were outstanding, and approximately 0.4 million shares of
restricted stock awards with service and performance-based vesting conditions were outstanding.
</div>
</div>
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
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