Clearwire 2010 Annual Report Download - page 108

Share-based compensation expense recognized for all plans for the years ended December 31, 2010, 2009 and
2008 is as follows (in thousands):
2010 2009 2009
Year Ended December 31.
Options .............................................. $16,749 $ 6,386 $2,371
RSUs ............................................... 30,582 20,091 1,292
Sprint Equity Compensation Plans .......................... 204 1,035 2,802
$47,535 $27,512 $6,465
During the years ended December 31, 2010, 2009 and 2008, we recorded $10.9 million, $2.4 million and $0,
respectively, of additional compensation expense related to the accelerated vesting of options and RSUs.
Sprint Equity Compensation Plans
In connection with the Transactions, certain of the Sprint WiMAX Business employees became employees of
Clearwire and currently hold unvested Sprint stock options and RSUs in Sprint’s equity compensation plans, which
we refer to collectively as the Sprint Plans. The underlying share for awards issued under the Sprint Plans is Sprint
common stock. The Sprint Plans allow for continued plan participation as long as the employee remains employed
by a Sprint subsidiary or affiliate. Under the Sprint Plans, options are generally granted with an exercise price equal
to the market value of the underlying shares on the grant date, generally vest over a period of up to four years and
have a contractual term of ten years. RSUs generally have both performance and service requirements with vesting
periods ranging from one to three years. RSUs granted after the second quarter 2008 included quarterly perfor-
mance targets but were not granted until performance targets were met. Therefore, at the grant date these awards
only had a remaining service requirement and vesting period of six months following the last day of the applicable
quarter. Employees who were granted RSUs were not required to pay for the shares but generally must remain
employed with Sprint or a subsidiary, until the restrictions lapse, which was typically three years or less. At
December 31, 2010, there were 35,257 unvested options and 66,451 unvested RSUs outstanding.
The share-based compensation associated with these employees is incurred by Sprint on our behalf. Sprint
provided us with the fair value of the options and RSUs for each reporting period, which must be remeasured based
on the fair value of the equity instruments at each reporting period until the instruments are vested. Total
unrecognized share-based compensation costs related to unvested stock options and RSUs outstanding as of
December 31, 2010 was $6,000 and $27,000, respectively, and is expected to be recognized over approximately one
year.
14. Stockholders’ Equity
Class A Common Stock
The Class A Common Stock represents the common equity of Clearwire. The holders of the Class A Common
Stock are entitled to one vote per share and, as a class, are entitled to 100% of any dividends or distributions made by
Clearwire, with the exception of certain minimal liquidation rights provided to the Class B Common Stockholders,
which are described below. Each share of Class A Common Stock participates ratably in proportion to the total
number of shares of Class A Common Stock issued by Clearwire. Holders of Class A Common Stock have 100% of
the economic interest in Clearwire and are considered the controlling interest for the purposes of financial reporting.
Upon liquidation, dissolution or winding up, the Class A Common Stock will be entitled to any assets
remaining after payment of all debts and liabilities of Clearwire, with the exception of certain minimal liquidation
rights provided to the Class B Common Stockholders, which are described below.
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CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)