Clearwire 2008 Annual Report Download - page 121

Expense recorded related to stock options in the year ended December 31, 2008 was
$
2.4 million. In addition to
options issued in exchange as part of the Transactions, the fair value of option grants during 2008 was
$
954,000. The
t
otal unreco
g
nized share-based compensation costs related to non-vested stock options outstandin
g
at December 31,
2
008 was approximately
$
9.0 million and is expected to be recognized over a weighted average period of
approx
i
mate
l
y 2 years
.
As of December 31, 2008, our forfeiture rate used in the calculation of stock o
p
tion ex
p
ense is 12.
66
%
.
R
estricted Stock Units
I
n connection with the Transactions, all Old Clearwire restricted stock units, which we refer to as RSUs issue
d
an
d
outstan
di
ng at t
h
eC
l
os
i
ng were exc
h
ange
d
on a one-
f
or-one
b
as
i
s
f
or RSUs w
i
t
h
equ
i
va
l
ent terms. T
h
e
f
a
ir
value of the proportionatel
y
vested RSUs exchan
g
ed of
$
1.4 million (see Note 3) is included in the calculation of
p
urchase consideration at a fair value equal to an unrestricted share, which is $6.62. Followin
g
the Closin
g
,w
e
grante
d
RSUs to certa
i
no
ffi
cers an
d
emp
l
oyees un
d
er t
h
e 2008 P
l
an. A
ll
RSUs vest over a
f
our-year per
i
o
d
.Un
d
e
r
S
FAS No. 123(R), t
h
e
f
a
i
rva
l
ue o
f
our RSUs
i
s
b
ase
d
on t
h
e grant-
d
ate
f
a
i
r mar
k
et va
l
ue o
f
t
h
e common stoc
k
,
w
hich equals the
g
rant date market price
.
A summary of the RSU activity for the year ended December 31, 2008 is presented below:
N
umber o
f
RSU
’
s
We
i
ghted-
A
vera
g
e
G
rant Pr
i
c
e
R
estr
i
cte
d
stoc
k
un
i
ts outstan
di
n
g
— Januar
y
1, 200
7
.
................ — $
—
R
estr
i
cte
d
stoc
k
un
i
ts outstan
di
ng — Decem
b
er 31, 2007 .............. —
$—
R
estr
i
cte
d
stoc
k
un
i
ts acqu
i
re
di
n purc
h
ase account
i
ng — Novem
b
er 28,
2
008
.
.................................................
.
3
,
216
,
500
$
13.1
9
Granted
.
...............................................
.
716
,
000
$
4.1
0
F
o
rf
e
i
ted
................................................
(
43,000
)
$—
Exerc
i
se
d
...............................................
(
508,098) $ 5.18
C
ance
ll
e
d
...............................................
(
108,777
)$
—
R
estr
i
cte
d
stoc
k
un
i
ts outstan
di
ng — Decem
b
er 31, 200
8
.............. 3
,
272
,
625
$
13.1
9
Expense recorded related to RSUs in the year ended December 31, 2008 was $1.3 million. The total fair value
o
f grants during 2008 was
$
2.9 million. As of December 31, 2008, there were 3,272,625 units outstanding and tota
l
unreco
g
nized compensation cost of approximatel
y$
17.0 million, which is expected to be reco
g
nized over a
w
ei
g
hted-avera
g
e period of approximatel
y
2
y
ears.
For the year ended December 31, 2008, we used a forfeiture rate of 7.50% in determining compensatio
n
expense
f
or our RSUs.
Sprint Equity Compensation Plans
I
n connect
i
on w
i
t
h
t
h
e Transact
i
ons, certa
i
no
f
t
h
e Spr
i
nt W
i
MAX Bus
i
ness emp
l
o
y
ees
b
ecame emp
l
o
y
ees o
f
Clearwire and currently hold unvested Sprint stock options and RSUs in Sprint’s equity compensation plans, whic
h
w
ere
f
er to co
ll
ect
i
ve
ly
as t
h
e Spr
i
nt P
l
ans. T
h
e Spr
i
nt P
l
ans a
ll
ow
f
or cont
i
nue
d
p
l
an part
i
c
i
pat
i
on as
l
on
g
as t
h
e
emp
l
o
y
ee rema
i
ns emp
l
o
y
e
dby
a Spr
i
nt su
b
s
idi
ar
y
or a
ffili
ate. Un
d
er t
h
e Spr
i
nt P
l
ans, opt
i
ons are
g
enera
lly
g
ranted with an exercise price equal to the market value of the underl
y
in
g
shares on the
g
rant date,
g
enerall
y
vest
o
ver a per
i
o
d
o
f
up to
f
our years an
dh
ave a contractua
l
term o
f
ten years. RSUs genera
ll
y
h
ave
b
ot
h
per
f
ormanc
e
an
d
serv
i
ce requ
i
rements w
i
t
h
vest
i
n
g
per
i
o
d
s ran
gi
n
gf
rom one to t
h
ree
y
ears. RSUs
g
rante
d
a
f
ter t
h
e secon
d
q
uarter 2008 included quarterl
y
performance tar
g
ets but were not
g
ranted until performance tar
g
ets were met
.
109
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)