Clearwire 2008 Annual Report Download - page 122

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T
h
ere
f
ore, at t
h
e grant
d
ate t
h
ese awar
d
son
l
y
h
a
d
a rema
i
n
i
ng serv
i
ce requ
i
rement an
d
vest
i
ng per
i
o
d
o
f
s
i
x mont
h
s
f
o
ll
ow
i
ng t
h
e
l
ast
d
ay o
f
t
h
e app
li
ca
bl
e quarter. Emp
l
oyees w
h
o were grante
d
RSUs were not requ
i
re
d
to pay
f
or t
he
s
hares but
g
enerall
y
must remain emplo
y
ed with Sprint or a subsidiar
y
, until the restrictions lapse, which was
t
ypically three years or less. At December 31, 2008, there were 2,604,784 unvested options and 907,265 unvested
RSUs outstan
di
ng.
T
he share-based compensation associated with these emplo
y
ees is incurred b
y
Sprint on our behalf and is
accounted for in accordance with SFAS No. 123
(
R
)
and EITF Issue No. 00-12, Accounting by an Investor
f
or Stock
-
Base
d
Compensation Grante
d
to Emp
l
oyees of an E
q
uity Met
h
o
d
Investee
.
Spr
i
nt prov
id
e
d
us w
i
t
h
t
h
e
f
a
i
rva
l
ue o
f
t
he options and RSUs for each reportin
g
period, calculated in accordance with EITF Issue No. 96-18,
A
ccountin
g
f
or E
q
uity Investments That are Issued to Other Than Employees for Ac
q
uiring, or in Conjunction with Selling
,
G
oo
d
s or Service
s
, which we refer to as EITF Issue No. 9
6
-18. EITF Issue No. 9
6
-18 requires remeasurement base
d
on the fair value of the equit
y
instruments at each reportin
g
period until the instruments are vested.
C
ompensat
i
on expense recor
d
e
d
re
l
ate
d
to t
h
e emp
l
oyees w
i
t
h
unveste
d
Spr
i
nt stoc
k
opt
i
ons an
d
RSUs
f
or t
he
y
ear ended December 31, 2008 was $2.8 million. Total unreco
g
nized share-based compensation costs related t
o
unvested stock options and RSUs outstandin
g
as of December 31, 2008 was $292,000 and $493,000, respectivel
y,
and is expected to be recognized over approximately 1.4 years for stock options and 1.0 year for RSUs, respectively
.
15. Non-controlling Interests and
S
tockholders’ Equity
Pursuant to the Transactions, the followin
g
shares of common stock are authorized, issued and outstandin
g
at
D
ecem
b
er 31, 2008 (
i
nt
h
ousan
d
s, except per s
h
are amounts)
:
P
ar
V
a
l
ue
Au
th
o
riz
ed
S
hare
s
I
ssued and
O
utstandin
g
S
hare
s
Cl
ear
wi
re
Cl
ass A
C
ommon
S
toc
k
.
...................
.
$
0.0001 1
,
300
,
000 190
,
00
2
Cl
ear
wi
re
Cl
ass B
C
ommon
S
toc
k
.
....................
$
0.0001 750
,
000 505
,
000
Preferred Stoc
k
...................................
.
$
0.0001 15
,
000 —
2
,
065
,
000 695
,
00
2
N
os
h
ares were outstan
di
ng pr
i
or to t
h
eC
l
os
i
ng, as we were a w
h
o
ll
y-owne
ddi
v
i
s
i
on o
f
Spr
i
nt.
Cl
ass A
C
ommon
S
toc
k
T
h
eC
l
earw
i
re C
l
ass A Common Stoc
k
represents t
h
e common equ
i
ty o
f
C
l
earw
i
re. T
h
e
h
o
ld
ers o
f
t
he
C
learwire Class A Common Stock are entitled to one vote per share and, as a class, are entitled to 100% of an
y
d
ividends or distributions made b
y
Clearwire, with the exception of certain minimal liquidation ri
g
hts provided to
t
h
eC
l
earw
i
re C
l
ass B Common Stoc
kh
o
ld
ers
,
w
hi
c
h
are
d
escr
ib
e
db
e
l
ow. Eac
h
s
h
are o
f
C
l
earw
i
re C
l
ass A
C
ommon Stoc
k
part
i
c
i
pates rata
bly i
n proport
i
on to t
h
e tota
l
num
b
er o
f
s
h
ares o
f
C
l
earw
i
re C
l
ass A Common Stoc
k
i
ssued b
y
Clearwire. Holders of Clearwire Class A Common Stock have 100% of the economic interest in Clearwir
e
a
nd are considered the controlling interest for the purposes of financial reporting
.
U
pon
li
qu
id
at
i
on,
di
sso
l
ut
i
on or w
i
n
di
ng up, t
h
eC
l
earw
i
re C
l
ass A Common Stoc
k
w
ill b
e ent
i
t
l
e
d
to an
y
a
ssets remainin
g
after pa
y
ment of all debts and liabilities of Clearwire, with the exception of certain minima
l
li
qu
id
at
i
on r
i
g
h
ts prov
id
e
d
to t
h
eC
l
earw
i
re C
l
ass B Common Stoc
kh
o
ld
ers, w
hi
c
h
are
d
escr
ib
e
db
e
l
ow
.
Clearwire Class B Common Stock
T
h
eC
l
earw
i
re C
l
ass B Common Stoc
k
represents non-econom
i
cvot
i
ng
i
nterests
i
nC
l
earw
i
re an
dh
o
ld
ers o
f
t
hi
s stoc
k
are cons
id
ere
d
t
h
e non-contro
lli
ng
i
nterests
f
or t
h
e purposes o
ffi
nanc
i
a
l
report
i
ng. I
d
ent
i
ca
l
to t
h
e
C
learwire Class A Common Stock, the holders of Clearwire Class B Common Stock are entitled to one vote
p
er
11
0
C
LEARWIRE
CO
RP
O
RATI
O
N AND
SU
B
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)