AT&T Wireless 2012 Annual Report Download - page 91

AT&T Inc. | 89
A summary of option activity as of December 31, 2012, 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, 2012 66 $30.62 1.99 $148
Exercised (18) —
Forfeited or expired (31) —
Outstanding at December 31, 2012 17 27.38 4.53 123
Exercisable at December 31, 2012 17 $27.37 4.51 $123
1 Aggregate intrinsic value includes only those options with intrinsic value (options where the exercise price is below the market price).
AT&T common stock. We began buying back stock under this
program in 2012 and completed the purchase of authorized
shares that year. In July 2012, the Board of Directors
authorized the repurchase of an additional 300 million
shares, under which we are currently purchasing shares.
For the year ended December 31, 2012, we had repurchased
approximately 371 million shares totaling $12,752 under
these authorizations. We expect to continue repurchasing
our common stock and plan to complete the repurchases
under the July 2012 authorization as early as mid-year.
To implement these authorizations, we use open market
repurchase programs, relying on Rule 10b5-1 of the
Securities Exchange Act of 1934 where feasible. We also use
accelerated share repurchase programs with large financial
institutions to repurchase our stock.
Authorized Shares There are 14 billion authorized common
shares of AT&T stock and 10 million authorized preferred
shares of AT&T stock. As of December 31, 2012 and 2011,
no preferred shares were outstanding.
Dividend Declarations In November 2012, the Company
declared an increase in its quarterly dividend to $0.45 per
share of common stock. In December 2011, the Company
declared a quarterly dividend of $0.44 per share of common
stock, which reflected an increase from the $0.43 quarterly
dividend declared in December 2010.
It is our policy to satisfy share option exercises using our
treasury stock. Cash received from stock option exercises was
$517 for 2012, $250 for 2011 and $55 for 2010.
A summary of the status of our nonvested stock units as of
December 31, 2012, 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, 2012 27 $ 26.53
Granted 13 30.18
Vested (13) 25.87
Forfeited (1) 28.32
Nonvested at December 31, 2012 26 $28.55
As of December 31, 2012, there was $314 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 two years.
The total fair value of shares vested during the year was $333
for 2012, compared to $360 for 2011 and $397 for 2010.
NOTE 13. STOCKHOLDERS’ EQUITY
Stock Repurchase Program 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
The compensation cost that we have charged against income
for our share-based payment arrangements was as follows:
2012 2011 2010
Performance stock units $397 $388 $411
Restricted stock and stock units 102 91 85
Other nonvested stock units 12 4 11
Other — 6 6
Total $511 $489 $513
period. We also grant other nonvested stock units and
award them in cash at the end of a three-year period,
subject to the achievement of certain market based
conditions. As of December 31, 2012, we were authorized
to issue up to 111 million shares of common stock (in
addition to shares that may be issued upon exercise of
outstanding options or upon vesting of performance stock
units or other nonvested stock units) to officers, employees
and directors pursuant to these various plans.