Cincinnati Bell 2011 Annual Report Download - page 224

Performance-Based Restricted Awards
Awards granted generally vest over three years and upon the achievement of certain performance-based
objectives. Performance-based awards are expensed based on their grant date fair value if it is probable that the
performance conditions will be achieved.
The following table summarizes our outstanding performance-based restricted award activity:
2011 2010 2009
(in thousands, except per share amounts) Shares
Weighted-
Average
Exercise
Price Per
Share Shares
Weighted-
Average
Exercise
Price Per
Share Shares
Weighted-
Average
Exercise
Price Per
Share
Non-vested at January 1, .................... 2,641 $3.25 4,218 $3.39 2,307 $4.20
Granted* ................................ 998 2.85 736 2.92 2,786 2.95
Vested .................................. (479) 2.84 (1,146) 3.59 (838) 4.16
Forfeited ................................ (1,321) 3.91 (1,167) 3.20 (37) 2.99
Non-vested at December 31, ................. 1,839 $2.90 2,641 $3.25 4,218 $3.39
Compensation expense for the year ........... $ 2.4 $ 0.5 $ 3.9
Tax benefit related to compensation expense . . . . $ (0.9) $ (0.2) $ (1.4)
Grant date fair value of awards vested ......... $ 1.4 $ 4.1 $ 3.5
* Assumes the maximum number of awards that can be earned if the performance conditions are achieved.
As of December 31, 2011, unrecognized compensation expense related to performance-based awards was
$1.3 million, which is expected to be recognized over a weighted-average period of approximately one year.
Time-Based Restricted Awards
Awards granted generally vest in one-third increments over a period of three years. The following table
summarizes our time-based restricted award activity:
2011 2010 2009
(in thousands, except per share amounts) Shares
Weighted-
Average
Exercise Price
Per Share Shares
Weighted-
Average
Exercise Price
Per Share Shares
Weighted-
Average
Exercise Price
Per Share
Non-vested at January 1, ................ 229 $3.36 213 $3.85 303 $4.82
Granted ............................. 711 2.85 84 3.35 107 2.90
Vested .............................. (45) 4.69 (62) 4.91 (171) 4.82
Forfeited ............................ (23) 3.03 (6) 4.91 (26) 4.87
Non-vested at December 31, ............. 872 $2.89 229 $3.36 213 $3.85
(dollars in millions)
Compensation expense for the year ....... $0.8 $0.5 $ 0.9
Tax benefit related to compensation
expense ........................... $(0.3) $(0.2) $ (0.3)
Grant date fair value of awards vested ..... $0.2 $0.3 $ 0.8
As of December 31, 2011, there was $1.5 million of unrecognized compensation expense related to these
shares, which is expected to be recognized over a weighted-average period of approximately two years.
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Form 10-K Part II Cincinnati Bell Inc.