AT&T Wireless 2013 Annual Report Download - page 71

AT&T Inc. | 69
A summary of the status of our nonvested stock units as
of December 31, 2013, 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, 2013 26 $ 28.55
Granted 11 35.36
Vested (12) 27.99
Forfeited (1) 31.10
Nonvested at December 31, 2013 24 $31.93
As of December 31, 2013, there was $348 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 1.95 years. The total fair value of shares vested during
the year was $336 for 2013, compared to $333 for 2012
and $360 for 2011.
It is our policy to satisfy share option exercises using our
treasury stock. Cash received from stock option exercises
was $135 for 2013, $517 for 2012 and $250 for 2011.
NOTE 14. 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, our Board of
Directors authorized the repurchase of 300 million shares
of our common stock. We began buying back stock under
this program in 2012 and completed the purchase of
authorized shares that year. In July 2012, our Board of
Directors approved a second authorization to repurchase
300 million shares and we completed that program in
May 2013. In March 2013, our Board of Directors
approved a third authorization to repurchase 300 million
shares, under which we are currently purchasing shares.
For the year ended December 31, 2013, we had
repurchased approximately 366 million shares totaling
$13,028 under these authorizations. For the year ended
December 31, 2012, we had repurchased approximately
371 million shares totaling $12,752 under these
authorizations. We expect to make future
repurchases opportunistically.
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, 2013
and 2012, no preferred shares were outstanding.
Dividend Declarations In December 2013, the Company
declared an increase in its quarterly dividend to $0.46 per
share of common stock. In November 2012, the Company
declared a quarterly dividend of $0.45 per share of common
stock, which reflected an increase from the $0.44 quarterly
dividend declared in December 2011.
Preferred Equity Interest The preferred equity interest
discussed in Note 12 is not transferable by the trust
except through its put and call features, and therefore has
been eliminated in consolidation. After a period of five
years from the contribution or, if earlier, the date upon
which the pension plan trust is fully funded as determined
under GAAP, AT&T has a right to purchase from the
pension plan trust some or all of the preferred equity
interest at the greater of their fair market value or
minimum liquidation value plus any unpaid cumulative
dividends. In addition, AT&T will have the right to
purchase the preferred equity interest in the event
AT&T’s ownership of Mobility is less than 50% or there
is a transaction that results in the transfer of 50% or
more of the pension plan trust’s assets to an entity not
under common control with AT&T (collectively, a change
of control). The pension plan trust has the right to require
AT&T to purchase the preferred equity interest at the
greater of their fair market value or minimum liquidation
value plus any unpaid cumulative dividends, and in
installments, as specified in the contribution agreement
upon the occurrence of any of the following: (1) at
any time if the ratio of debt to total capitalization of
Mobility exceeds that of AT&T, (2) the date on which
AT&T Inc. is rated below investment grade for two
consecutive calendar quarters, (3) upon a change of
control if AT&T does not exercise its purchase option,
or (4) at any time after a seven-year period from the
contribution date. In the event AT&T elects or is required
to purchase the preferred equity interest, AT&T may elect
to settle the purchase price in cash or shares of AT&T
common stock or a combination thereof. Because the
preferred equity interest was not considered outstanding
for accounting purposes at year-end, it did not affect
the calculation of earnings per share.