Cricket Wireless 2010 Annual Report Download - page 133

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A summary of the Company’s stock option award activity as of and for the years ended December 31, 2010 and
2009 is as follows (in thousands, except per share data):
Number of
Shares
Weighted-
Average
Exercise
Price per
Share
Weighted-
Average
Remaining
Contractual
Term
(In years)
Aggregate
Intrinsic Value
Options outstanding at December 31, 2008 .... 4,408 $45.48 8.04 $679
Options exercisable at December 31, 2008 .... 1,004 $34.44 6.61 $213
Options granted ...................... 791 $28.74
Optionsforfeited..................... (228) 44.30
Options exercised..................... (35) 28.38
Options outstanding at December 31, 2009 .... 4,936 $42.97 7.08 $247
Options exercisable at December 31, 2009 .... 1,596 $40.15 6.16 $ —
Options granted ...................... 291 $12.88
Optionsforfeited..................... (596) 45.72
Options exercised..................... — —
Options outstanding at December 31, 2010 .... 4,631 $40.73 5.94 $137
Options exercisable at December 31, 2010 .... 2,308 $38.98 5.07 $ .03
As share-based compensation expense under the authoritative guidance for share-based payments is based on
awards ultimately expected to vest, it is reduced for estimated forfeitures. The guidance requires forfeitures to be
estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those
estimates.
At December 31, 2010, total unrecognized compensation cost related to unvested stock options was
$24.9 million, which is expected to be recognized over a weighted-average period of 1.8 years.
Upon option exercise, the Company issues new shares of common stock. No options were exercised during the
year ended December 31, 2010. Cash received from stock option exercises was $1.0 million during the year ended
December 31, 2009. The Company did not recognize any income tax benefits from stock option exercises as it
continues to record a valuation allowance on its deferred tax assets, as more fully described in Note 10.
Restricted Stock
Under guidance for share-based payments, the fair value of the Company’s restricted stock awards is based on
the grant date fair value of the Company’s common stock. Prior to 2009, all restricted stock awards were granted
with a purchase price of $0.0001 per share. During 2009 and 2010, all restricted stock awards were granted with no
purchase price. The weighted-average grant date fair value of the restricted stock awards was $28.54 and $41.17 per
share during the years ended December 31, 2010 and 2009, respectively.
127
LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)