Frontier Communications 2006 Annual Report Download - page 77

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Interpretation No. 44 (FIN No. 44), “Accounting for Certain Transactions Involving Stock Compensation” and
EITF No. 00-23, “Issues Related to the Accounting for Stock Compensation under APB No. 25 and FIN No. 44,”
there is no accounting consequence for changes made to the exercise price and the number of shares of a fixed
stock option or award as a direct result of the special, non-recurring dividend.
The following summary presents information regarding outstanding stock options and changes with regard
to options under the MEIP and EIP plans:
Shares
Subject to
Option
Weighted
Average
Option Price
Per Share
Weighted
Average
Remaining
Life in Years
Aggregate
Intrinsic
Value at
December 31
Balance at January 1, 2004 .......... 17,965,000 $ 11.94
Options granted ............... — —
Options exercised .............. (7,411,000) 9.69 $ 29,002,000
Options canceled, forfeited or
lapsed ..................... (355,000) 12.14
Effect of special, non-recurring
dividend ................... 2,212,000 —
Balance at December 31, 2004 ....... 12,411,000 11.15 6.11 $ 38,162,000
Options granted ............... 183,000 11.58
Options exercised .............. (4,317,000) 10.52 $ 12,730,000
Options canceled, forfeited or
lapsed ..................... (292,000) 10.48
Balance at December 31, 2005 ....... 7,985,000 11.52 5.32 $ 13,980,000
Options granted ............... 22,000 12.55
Options exercised .............. (2,695,000) 9.85 $ 9,606,000
Options canceled, forfeited or
lapsed ..................... (70,000) 10.13
Balance at December 31, 2006 ....... 5,242,000 $ 12.41 4.36 $ 14,490,000
The following table summarizes information about shares subject to options under the MEIP and EIP plans
at December 31, 2006:
Options Outstanding Options Exercisable
Number
Outstanding
Range of
Exercise Prices
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Life in Years
Number
Exercisable
Weighted
Average
Exercise
Price
327,000 $ 6.45 – 6.67 $ 6.51 1.94 327,000 $ 6.51
149,000 7.33 – 7.98 7.37 0.75 149,000 7.37
581,000 8.19 – 8.19 8.19 5.38 581,000 8.19
29,000 8.53 – 9.68 8.96 1.53 29,000 8.96
900,000 10.44 –10.44 10.44 6.41 483,000 10.44
379,000 11.15 – 11.15 11.15 3.80 379,000 11.15
740,000 11.79 – 11.79 11.79 4.38 740,000 11.79
2,137,000 11.90 – 18.46 16.13 3.99 2,103,000 16.18
5,242,000 $ 6.45 – 18.46 $ 12.41 4.36 4,791,000 $ 12.58
F-29