US Cellular 2009 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2009 US Cellular annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 16 STOCK-BASED COMPENSATION (Continued)
A summary of U.S. Cellular nonvested restricted stock units at December 31, 2009 and changes during
the year then ended is presented in the table below:
Weighted
Average
Grant Date
Equity Classified Awards Number Fair Value
Nonvested at December 31, 2008 ....................... 457,000 $61.51
Granted ........................................ 291,000 33.00
Vested ......................................... (114,000) 58.88
Forfeited ....................................... (53,000) 51.29
Nonvested at December 31, 2009 ....................... 581,000 $48.68
The total fair value of liability classified restricted stock units that vested during 2007 was $4.3 million.
The total fair value of equity classified restricted stock units that vested during 2009, 2008 and 2007 was
$4.2 million, $8.3 million and $0.5 million, respectively, as of the respective vesting dates. The weighted
average grant date fair value of restricted stock units granted in 2009, 2008 and 2007 was $33.00, $56.12
and $74.09, respectively.
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 using an accelerated
attribution method 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, 2009 and
changes during the year then ended is presented in the table below:
Weighted
Average
Grant Date
Number Fair Value
Nonvested at December 31, 2008 ........................ 3,600 $59.65
Granted ......................................... 3,700 33.58
Vested .......................................... (3,400) 51.83
Nonvested at December 31, 2009 ........................ 3,900 $41.73
The total fair value of deferred compensation stock units that vested during 2009, 2008 and 2007 was
$0.1 million, $0.1 million and $0.2 million, respectively. The weighted average grant date fair value of
71