US Cellular 2012 Annual Report Download - page 75

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United States Cellular Corporation
Notes to the Consolidated Financial Statements (Continued)
NOTE 14 COMMON SHAREHOLDERS’ EQUITY (Continued)
Share repurchases made under this authorization and prior authorizations, were as follows:
Number of Average Cost
Year Ended December 31, Shares Per Share Amount
(Dollars and share amounts in thousands)
2012
U.S. Cellular Common Shares ........................... 571 $35.11 $20,045
2011
U.S. Cellular Common Shares ........................... 1,276 $48.82 $62,294
2010
U.S. Cellular Common Shares ........................... 1,235 $42.76 $52,827
Pursuant to certain employee and non-employee benefit plans, U.S. Cellular reissued 182,195, 286,211,
and 241,954 Treasury Shares in 2012, 2011 and 2010, respectively.
NOTE 15 STOCK-BASED COMPENSATION
U.S. Cellular has established the following stock-based compensation plans: a long-term incentive plan
and a Non-Employee Director compensation plan, and had an employee stock purchase plan that was
terminated in the fourth quarter of 2011. In addition, U.S. Cellular employees were eligible to participate
in the TDS employee stock purchase plan before that plan also was terminated in the fourth quarter of
2011.
Under the U.S. Cellular 2005 Long-Term Incentive Plan, U.S. Cellular may grant fixed and performance
based incentive and non-qualified stock options, restricted stock, restricted stock units, and deferred
compensation stock unit awards to key employees. At December 31, 2012, the only types of awards
outstanding are fixed non-qualified stock option awards, restricted stock unit awards, and deferred
compensation stock unit awards.
At December 31, 2012, U.S. Cellular had reserved 5,662,000 Common Shares for equity awards granted
and to be granted under the 2005 Long-Term Incentive Plan. No Common Shares were reserved for
issuance to employees under any employee stock purchase plan since this plan was terminated in the
fourth quarter of 2011.
U.S. Cellular also has established a Non-Employee Director compensation plan under which it has
reserved 25,000 Common Shares at December 31, 2012 for issuance as compensation to members of
the Board of Directors who are not employees of U.S. Cellular or TDS.
U.S. Cellular uses treasury stock to satisfy requirements for Common Shares issued pursuant to its
various stock-based compensation plans.
Long-Term Incentive Plan—Stock Options—Stock options granted to key employees are exercisable over
a specified period not in excess of ten years. Stock options generally vest over a period of three years
from the date of grant. Stock options outstanding at December 31, 2012 expire between 2013 and 2022.
However, vested stock options typically expire 30 days after the effective date of an employee’s
termination of employment for reasons other than retirement. Employees who leave at the age of
retirement have 90 days (or one year if they satisfy certain requirements) within which to exercise their
vested stock options. The exercise price of options equals the market value of U.S. Cellular Common
Shares on the date of grant.
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