Metro PCS 2011 Annual Report Download - page 130

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2011, 2010 and 2009
F-24
During the year ended December 31, 2010, 55,625 shares of common stock were tendered to the Company by an
employee to cover the income tax obligation allocation with a stock option exercise. These shares were accounted for as
treasury stock.
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 years ended December 31, 2011, 2010 and 2009, pursuant to the 2004 Plan and
2010 Plan, the Company issued 1,771,639, 1,947,574 and 1,414,410 restricted stock awards, respectively. 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 during the years ended December 31, 2011, 2010 and 2009 to be approximately $25.4 million,
$12.8 million and $20.1 million, respectively, 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, is recognized on a straight-line basis over the vesting
period.
Vesting in the restricted stock awards triggers an income tax obligation for the employee that is required to be remitted to
the relevant tax authorities. To effect the tax withholding, the Company has agreed to repurchase a sufficient number of
common shares from the employee to cover the income tax obligation. The stock repurchase is being accounted for as treasury
stock. During the year ended December 31, 2011, the Company repurchased 365,063 shares of stock, respectively, from certain
employees to settle the income tax obligation associated with vesting in restricted stock awards.
The following table summarizes information about restricted stock award activity:
2011
Restricted Stock Awards Shares
Weighted
Average
Grant-Date
Fair Value
Unvested balance, beginning of year 2,665,110 $ 8.73
Grants 1,771,639 $ 14.35
Vested shares (1,136,002) $ 8.74
Forfeitures (153,361) $ 11.52
Unvested balance, end of year 3,147,386 $ 11.75
At December 31, 2011, there was $28.9 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 2.60 years. The total fair value of vested
shares granted that was recognized as compensation expense related to restricted stock for the year ended December 31, 2011
was $12.6 million.
13. 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. In
January 2009, the Company adopted a limited matching contribution policy and began matching certain employee contributions
to the savings plan. The Company contributed approximately $1.3 million, $1.2 million and $0.9 million to the savings plan
during the years ended December 31, 2011, 2010 and 2009, respectively.