Frontier Communications 2013 Annual Report Download - page 84

The following summary presents information regarding LTIP target performance shares as of December 31,
2013 and changes with regard to LTIP shares awarded under the 2009 EIP and the 2013 EIP:
Number of
Shares
Balance at January 1, 2012 . ........................................................ —
LTIP target performance shares granted ........................................... 979,000
LTIP target performance shares forfeited .......................................... —
Balance at December 31, 2012 ..................................................... 979,000
LTIP target performance shares granted ........................................... 1,124,000
LTIP target performance shares forfeited .......................................... (354,000)
Balance at December 31, 2013 ..................................................... 1,749,000
The Company recognized an expense of $1.1 million and $0.4 million during 2013 and 2012, respectively,
for the LTIP.
Restricted Stock
The following summary presents information regarding unvested restricted stock as of December 31, 2013
and changes with regard to restricted stock under the 2009 EIP and the 2013 EIP:
Number of
Shares
Weighted
Average
Grant Date
Fair Value
Aggregate
Fair Value
Balance at January 1, 2011 . ...................................... 4,440,000 $8.29 $43,199,000
Restricted stock granted . . ...................................... 1,734,000 $9.38 $ 8,930,000
Restricted stock vested . . . ...................................... (1,146,000) $9.52 $ 5,899,000
Restricted stock forfeited . ...................................... (181,000) $7.99
Balance at December 31, 2011 .................................... 4,847,000 $8.40 $24,962,000
Restricted stock granted . . ...................................... 3,976,000 $4.18 $17,017,000
Restricted stock vested . . . ...................................... (1,387,000) $8.78 $ 5,937,000
Restricted stock forfeited . ...................................... (387,000) $5.99
Balance at December 31, 2012 .................................... 7,049,000 $6.08 $30,169,000
Restricted stock granted . . ...................................... 3,360,000 $4.10 $15,626,000
Restricted stock vested . . . ...................................... (3,097,000) $6.78 $14,403,000
Restricted stock forfeited . ...................................... (1,078,000) $5.26
Balance at December 31, 2013 .................................... 6,234,000 $4.80 $28,988,000
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, 2013 was $19.5 million and the weighted average period over which this cost is expected to be
recognized is approximately 1.5 years.
We have granted restricted stock awards to employees in the form of our common stock. None of the
restricted stock awards may be sold, assigned, pledged or otherwise transferred, voluntarily or involuntarily, by
the employees until the restrictions lapse, subject to limited exceptions. The restrictions are time-based.
Compensation expense, recognized in “Other operating expenses”, of $14.9 million, $15.9 million and $14.8
million, for the years ended December 31, 2013, 2012 and 2011, respectively, has been recorded in connection
with these grants.
F-22
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements