Frontier Communications 2012 Annual Report Download - page 84

of the Transaction, and to all employees (including senior management) as a Founder’s Stock Grant during the
third quarter of 2010. The restricted shares granted to senior management vest in three equal annual
installments commencing one year after the grant date. The Founder’s Stock granted to all employees vest
100% on the third anniversary of the grant date.
For purposes of determining compensation expense, the fair value of each restricted stock grant is
estimated based on the average of the high and low market price of a share of our common stock on the date of
grant. Total remaining unrecognized compensation cost associated with unvested restricted stock awards at
December 31, 2012 was $24.8 million and the weighted average period over which this cost is expected to be
recognized is approximately 1.5 years.
Stock Options
The following summary presents information regarding outstanding stock options and changes with regard
to options under the EIPs:
Shares
Subject to
Option
Weighted
Average
Option Price
Per Share
Weighted
Average
Remaining
Life in Years
Aggregate
Intrinsic
Value
Balance at January 1, 2010............................ 3,551,000 $13.74 1.5 $ —
Options granted .................................... — $ —
Options exercised................................... — $ —
Options canceled, forfeited or lapsed ................ (2,044,000) $16.13
Balance at December 31, 2010 ........................ 1,507,000 $10.50 1.7 $603,000
Options granted .................................... — $ —
Options exercised................................... (10,000) $ 8.19 $ 12,000
Options canceled, forfeited or lapsed ................ (602,000) $10.86
Balance at December 31, 2011 ........................ 895,000 $ 9.94 1.3 $ —
Options granted .................................... — $ —
Options exercised................................... — $ —
Options canceled, forfeited or lapsed ................ (355,000) $ 8.35
Balance at December 31, 2012 ........................ 540,000 $10.99 0.9 $ —
The following table summarizes information about shares subject to options under the EIPs at
December 31, 2012:
Number
Outstanding
Range of
Exercise Prices
Weighted Average
Exercise Price
Weighted Average
Remaining
Life in Years
Number
Exercisable
Weighted
Average
Exercise Price
Options Outstanding Options Exercisable
428,000 $ 10.44 $10.44 0.4 428,000 $10.44
112,000 $11.90-14.15 $13.12 2.6 112,000 $13.12
540,000 $10.44-14.15 $10.99 0.9 540,000 $10.99
The number of options exercisable at December 31, 2011 and 2010 were 895,000 and 1,507,000, with a
weighted average exercise price of $9.94 and $10.50, respectively.
Cash received upon the exercise of options during 2011 was $0.1 million. There were no stock options
exercised during 2010 and 2012. There were no stock options granted during 2010, 2011 and 2012. There is no
remaining unrecognized compensation cost associated with unvested stock options at December 31, 2012.
F-23
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements