US Cellular 2008 Annual Report Download - page 194

UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 18 STOCK-BASED COMPENSATION (Continued)
A summary of U.S. Cellular nonvested restricted stock units at December 31, 2008 and changes during
the year then ended is presented in the table below:
Weighted
Average
Grant Date
Number Fair Value
Nonvested at December 31, 2007 ....................... 377,000 $58.92
Granted ........................................ 249,000 56.12
Vested ......................................... (153,000) 46.21
Forfeited ....................................... (16,000) 62.62
Nonvested at December 31, 2008 ....................... 457,000 $61.51
The total fair value of liability classified restricted stock units that vested during 2007 and 2006 was
$4.3 million and $7.6 million, respectively, as of the respective vesting dates. The total fair value of equity
classified restricted stock units that vested during 2008 and 2007 was $8.3 million and $0.5 million,
respectively, as of the respective vesting dates.
Long-Term Incentive Plan—Deferred Compensation Stock Units—Certain U.S. Cellular employees may
elect to defer receipt of all or a portion of their annual bonuses and to receive a company matching
contribution on the amount deferred. All bonus compensation that is deferred by employees electing to
participate is immediately vested and is deemed to be invested in U.S. Cellular Common Share stock
units. Upon distribution of such stock units, participants will receive U.S. Cellular Common Shares. The
amount of U.S. Cellular’s matching contribution depends on the portion of the annual bonus that is
deferred. Participants receive a 25% match for amounts deferred up to 50% of their total annual bonus
and a 33% match for amounts that exceed 50% of their total annual bonus; such matching contributions
also are deemed to be invested in U.S. Cellular Common Share stock units. The matching contribution
stock units vest ratably at a rate of one-third per year over three years. Upon vesting and distribution of
such matching contribution stock units, participants will receive U.S. Cellular Common Shares.
U.S. Cellular estimates the fair value of deferred compensation matching contribution stock units based
on the closing market price of U.S. Cellular Common Shares on the date of match. The fair value of such
matching contribution stock units is then recognized as compensation cost on a straight-line basis over
the requisite service periods of the awards, which is generally the vesting period.
A summary of U.S. Cellular nonvested deferred compensation stock units at December 31, 2008 and
changes during the year then ended is presented in the table below:
Weighted
Average
Grant Date
Number Fair Value
Nonvested at December 31, 2007 ........................ 2,200 $67.30
Granted ......................................... 4,100 56.23
Vested .......................................... (2,700) 60.78
Nonvested at December 31, 2008 ........................ 3,600 $59.65
Employee Stock Purchase Plan—Under the 2003 Employee Stock Purchase Plan (‘‘2003 ESPP’’), eligible
employees of U.S. Cellular and its subsidiaries may purchase a limited number of U.S. Cellular Common
Shares on a quarterly basis. The 2003 ESPP became effective on April 1, 2003 and terminated on
December 31, 2008. The U.S. Cellular 2009 Employee Stock Purchase Plan (‘‘2009 ESPP’’) became
effective January 1, 2009 and will terminate December 31, 2013. At December 31, 2008 U.S. Cellular had
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