Metro PCS 2009 Annual Report Download - page 141

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2009, 2008 and 2007
F-27
average period of approximately 2.24 years. Such costs are scheduled to be recognized as follows: $38.1 million in
2010, $23.0 million in 2011, $9.1 million in 2012 and $1.5 million in 2013.
Compensation expense is recognized over the requisite service period for the entire award, which is generally the
maximum vesting period of the award.
Restricted Stock Awards
Restricted stock awards are share awards that entitle the holder to receive shares of the Company’s common
stock which become fully tradable upon vesting. During the year ended December 31, 2009, pursuant to the 2004
Plan, the Company issued 1,414,410 restricted stock awards, respectively, to certain employees. The restricted stock
awards granted generally vest on a four-year vesting schedule with 25% vesting on the first anniversary date of the
award and the remainder pro-rata on a monthly or quarterly basis thereafter. The Company determined the grant-
date fair value of the restricted stock awards granted to be $20.1 million based on the closing price of the
Company’s common stock on the New York Stock Exchange on the grant dates. The estimated compensation cost
of the restricted stock awards, which is equal to the fair value of the awards on the date of grant net of estimated
forfeitures, will be recognized on a ratable basis over the four-year vesting period.
A summary of the Company’s restricted stock award activity as of and for the year ended December 31, 2009 is
as follows:
Restricted Stock Awards Shares
Weighted
Average
Grant-Date
Fair Value
Unvested balance, January 1, 2009........................................................................................... — $ —
Grants ....................................................................................................................................... 1,414,410 $ 14.19
Vested shares............................................................................................................................ — $ —
Forfeitures ................................................................................................................................ (47,240) $ 14.23
Unvested balance, December 31, 2009..................................................................................... 1,367,170 $ 14.19
At December 31, 2009, there was $13.9 million of total unrecognized compensation cost related to unvested
restricted stock and that cost is expected to be recognized over a weighted-average period of 3.2 years. The total fair
value of unvested shares granted that was recognized as compensation expense related to restricted stock for the year
ended December 31, 2009 was $3.9 million.
14. Employee Benefit Plan:
The Company sponsors a savings plan under Section 401(k) of the Internal Revenue Code for the majority of its
employees. The plan allows employees to contribute a portion of their pretax income in accordance with specified
guidelines. The Company did not match employee contributions as of December 31, 2008 but could make
discretionary or profit-sharing contributions. The Company made no contributions to the savings plan through
December 31, 2008. On January 1, 2009, the Company adopted a limited matching contribution policy and began
matching certain employee contributions to the savings plan as of that date. The Company contributed $0.9 million
to the savings plan during the year ended December 31, 2009.