Cricket Wireless 2012 Annual Report Download - page 136

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LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes information about restricted stock awards that vested during the years
ended December 31, 2012, 2011, and 2010 (in thousands):
Year Ended December 31,
2012 2011 2010
Fair value on vesting date of vested restricted stock awards .......... $3,888 $5,864 $4,965
At December 31, 2012, total unrecognized compensation cost related to unvested restricted stock awards
was $10.5 million, which is expected to be recognized over a weighted-average period of 2.3 years.
Deferred Stock Units
Under guidance for share-based compensation, the fair value of the Company’s deferred stock units is based
on the grant date fair value of the Company’s common stock. All deferred stock units were granted with no
purchase price. The Company issued 404,250 and 90,000 deferred stock units at a weighted-average grant date
fair value of $9.24 and $12.39 per share during the years ended December 31, 2012 and 2011, respectively.
Certain of the deferred stock units contain performance conditions, which will determine the number of shares
that will be ultimately issued when the awards vest, which could result in the Company issuing up to 283,000
shares. The shares underlying these deferred stock units will be issued and vest upon the completion of a three-
year service period. The Company has estimated the total number of shares that will vest and the related share-
based expense in accordance with the authoritative guidance for share-based payments with performance
conditions. At December 31, 2012, total unrecognized compensation cost related to deferred stock units was $0.7
million, which is expected to be recognized over a weighted-average period of 1.9 years.
Employee Stock Purchase Plan
The Company’s Amended and Restated Employee Stock Purchase Plan (the “ESP Plan”) allows eligible
employees to purchase shares of common stock during a specified offering period. The purchase price is 85% of
the lower of the fair market value of such stock on the first or last day of the offering period. Employees may
authorize the Company to withhold up to 15% of their compensation during any offering period for the purchase
of shares under the ESP Plan, subject to certain limitations. A total of 800,000 shares of common stock were
reserved for issuance under the ESP Plan, and a total of 39,296 shares remained available for issuance under the
ESP Plan as of December 31, 2012. The most recent offering period under the ESP Plan was from July 1, 2012
through December 31, 2012. On December 19, 2012, the Company’s board of directors approved an amendment
to the Amended and Restated Employee Stock Purchase Plan to add 400,000 shares for issuance thereunder,
subject to, and contingent upon, the approval of the Company’s stockholders, which approval will be requested at
the Annual Meeting of Stockholders to be held in 2013.
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