Cricket Wireless 2011 Annual Report Download - page 138

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LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
determined on a grant-by-grant basis and were intended to result in the fair value, for accounting purposes, of the
replacement options being approximately 50% of the fair value of the surrendered options using the Black-
Scholes stock option pricing model. The Exchange Offer did not result in any additional share-based
compensation expense. Executive officers and members of the Company’s board of directors were not permitted
to participate in the Exchange Offer. The impacts related to the amount of stock options granted, forfeited and
outstanding and the related values are included in the table above.
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 2011 and 2010, all restricted stock awards were
granted with no purchase price. For those restricted stock awards granted with a purchase price, the restricted
stock grant agreements allow the Company to repurchase unvested shares at the option, but not the obligation, of
the Company for a period of sixty days, commencing ninety days after the employee has a termination event. If
the Company elects to repurchase all or any portion of the unvested shares, it may do so at the original purchase
price per share. The weighted-average grant date fair value of the restricted stock awards was $11.84 and $15.27
per share during the years ended December 31, 2011 and 2010, respectively.
A summary of the Company’s restricted stock award activity as of and for the years ended
December 31, 2011 and 2010 is as follows (in thousands, except per share data):
Number of
Shares
Weighted-
Average
Grant Date
Fair Value
Per Share
Restricted stock awards outstanding at December 31, 2009 .............. 1,731 $41.17
Shares issued ................................................. 982 15.27
Shares forfeited ............................................... (201) 38.90
Shares vested ................................................. (394) 45.69
Restricted stock awards outstanding at December 31, 2010 .............. 2,118 $28.54
Shares issued ................................................. 684 11.84
Shares forfeited ............................................... (353) 29.06
Shares vested ................................................. (484) 36.51
Restricted stock awards outstanding at December 31, 2011 .............. 1,965 $20.68
The following table summarizes information about restricted stock awards that vested during the years
ended December 31, 2011, 2010 and 2009 (in thousands):
Year Ended December 31,
2011 2010 2009
Fair value on vesting date of vested restricted stock awards .......... $5,864 $4,965 $3,912
At December 31, 2011, total unrecognized compensation cost related to unvested restricted stock awards
was $21.4 million, which is expected to be recognized over a weighted-average period of 2.2 years.
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