AT&T Wireless 2010 Annual Report Download - page 95

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AT&T Inc. 93
NOTE 13. STOCKHOLDERS’ EQUITY
From time to time, we repurchase shares of common
stock for distribution through our employee benefit plans or
in connection with certain acquisitions. In December 2010,
the Board of Directors authorized the repurchase of
up to 300 million shares of our common stock. As of
December 31, 2010, we repurchased no shares under this
program. In December 2007, the Board of Directors
authorized the repurchase of up to 400 million shares of
our common stock. This authorization replaced previous
authorizations and expired on December 31, 2009. As of
December 31, 2009, we had repurchased approximately
164 million shares under this program.
During the Annual Meeting of Shareholders in April 2009,
shareholders approved the increase of authorized common
shares of AT&T stock from 7 billion to 14 billion, with no
change to the currently authorized 10 million preferred
shares of AT&T stock. As of December 31, 2010 and 2009,
no preferred shares were outstanding.
In December 2010, the Company declared its quarterly
dividend, which reflected an increase in the amount per share
of common stock to $0.43. In December 2009, the Company
declared its quarterly dividend, increasing the amount per share
of common stock from $0.41 to $0.42.
The weighted-average fair value of each option granted during
the period was $1.34 for 2010, compared to $1.84 for 2009
and $5.04 for 2008. The total intrinsic value of options
exercised during 2010 was $13, compared to $5 for 2009,
and $78 for 2008.
It is our policy to satisfy share option exercises using our
treasury shares. The actual excess tax benefit realized for the
tax deductions from option exercises from these arrangements
was $2 for 2010, compared to $0 for 2009 and $10 for 2008.
A summary of the status of our nonvested stock units, which
includes performance stock units as of December 31, 2010,
and changes during the year then ended is presented as
follows (shares in millions):
Weighted-Average
Nonvested Stock Units Shares Grant-Date Fair Value
Nonvested at January 1, 2010 26 $ 26.48
Granted 15 25.48
Vested (12) 34.64
Forfeited — 25.92
Nonvested at December 31, 2010 29 $25.30
As of December 31, 2010, there was $414 of total
unrecognized compensation cost related to nonvested share-
based payment arrangements granted. That cost is expected to
be recognized over a weighted-average period of 1.81 years.
The total fair value of shares vested during the year was $396
for 2010, compared to $471 for 2009 and $554 for 2008.
A summary of option activity as of December 31, 2010, and changes during the year then ended, is presented below
(shares in millions):
Weighted-Average
Weighted-Average Remaining Contractual Aggregate
Options Shares Exercise Price Term (Years) Intrinsic Value1
Outstanding at January 1, 2010 178 $36.79 1.86 $115
Granted 4 25.45
Exercised (2) 22.27
Forfeited or expired (50) 42.13
Outstanding at December 31, 2010 130 34.60 1.69 $150
Exercisable at December 31, 2010 125 $34.90 1.43 $134
1Aggregate intrinsic value includes only those options with intrinsic value (options where the exercise price is below the market price).