Time Warner Cable 2008 Annual Report Download - page 133

Time Warner Restricted Stock and Restricted Stock Units
The following table summarizes information about unvested Time Warner restricted stock and RSU awards
held by TWC employees as of December 31, 2008:
Number of
Shares/Units
Weighted-
Average
Grant Date
Fair Value
(in thousands)
Unvested as of December 31, 2007 ................................. 518 $ 17.49
Transferred
(a)
................................................. 70 14.92
Vested ...................................................... (86) 17.90
Forfeited .................................................... (19) 17.41
Unvested as of December 31, 2008 ................................. 483 17.43
(a)
Transferred amounts represent unvested Time Warner restricted stock and RSU awards held by employees of Time Warner who transferred
to TWC during the year, net of Time Warner restricted stock and RSU awards held by TWC employees who transferred to Time Warner
during the year.
As of December 31, 2008, the intrinsic value of unvested Time Warner restricted stock and RSU awards held
by TWC employees was $5 million. Total unrecognized compensation cost related to unvested Time Warner
restricted stock and RSU awards held by TWC employees as of December 31, 2008, without taking into account
expected forfeitures, is $2 million and is expected to be recognized over a weighted-average period of one year. The
fair value of Time Warner restricted stock and RSU awards held by TWC employees that vested during the year was
$2 million in 2008, $3 million in 2007 and $1 million in 2006.
For the year ended December 31, 2006, Time Warner granted 431,000 RSUs to TWC employees at a weighted-
average grant date fair value of $17.40 per RSU.
TWC Equity Plan
The Time Warner Cable Inc. 2006 Stock Incentive Plan (the “2006 Plan”) provides for the issuance of up to
100 million shares of TWC Class A common stock to directors, employees and certain non-employee advisors of
TWC. Stock options have been granted under the 2006 Plan with exercise prices equal to the fair market value of
TWC Class A common stock at the date of grant. Generally, the stock options vest ratably over a four-year vesting
period and expire ten years from the date of grant. Certain stock option awards provide for accelerated vesting upon
an election to retire pursuant to TWC’s defined benefit pension plans or a voluntary termination of employment
after reaching a specified age and years of service.
Pursuant to the 2006 Plan, the Company also granted RSU awards, which generally vest over a four-year
period from the date of grant. RSU awards provide for accelerated vesting upon a termination of employment after
reaching a specified age and years of service. Shares of TWC Class A common stock will generally be issued in
connection with the vesting of an RSU. RSUs awarded to non-employee directors are not subject to vesting
restrictions and the shares underlying the RSUs will be issued in connection with a director’s termination of service
as a director. Holders of RSUs are generally entitled to receive dividend equivalents or retained distributions related
to dividends paid by TWC.
Upon the exercise of a stock option or the vesting of a RSU award, shares of TWC Class A common stock are
issued from authorized but unissued shares.
In connection with the Special Dividend, and as provided for in the Company’s equity plans and related award
agreements, the number and the exercise prices of outstanding TWC stock options will be adjusted to maintain the
fair value of those awards. The changes in the number of shares subject to options and the exercise prices will be
determined by comparing the fair value of such awards immediately prior to the Special Dividend to the fair value of
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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)