US Cellular 2012 Annual Report Download - page 77

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United States Cellular Corporation
Notes to the Consolidated Financial Statements (Continued)
NOTE 15 STOCK-BASED COMPENSATION (Continued)
U.S. Cellular estimates the fair value of restricted stock units based on the closing market price of U.S.
Cellular shares on the date of grant. The fair value 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 restricted stock units at December 31, 2012 and changes during
the year then ended is presented in the table below:
Weighted
Average
Grant Date
Number Fair Value
Nonvested at December 31, 2011 ...................... 845,000 $42.48
Granted ....................................... 468,000 39.75
Vested ........................................ (225,000) 32.96
Forfeited ...................................... (75,000) 43.74
Nonvested at December 31, 2012 ...................... 1,013,000 $43.24
The total fair value of restricted stock units that vested during 2012, 2011 and 2010 was $8.9 million,
$9.5 million and $4.7 million, respectively, as of the respective vesting dates. The weighted average grant
date fair value of restricted stock units granted in 2012, 2011 and 2010 was $39.75, $49.35 and $42.21,
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. 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 total fair value of deferred compensation stock units that vested was less than $0.1 million during
2012 and 2011. The fair value of units vested during 2010 was $0.4 million. The weighted average grant
date fair value of deferred compensation stock units granted in 2012, 2011 and 2010 was $42.37, $48.72
and $40.76, respectively. As of December 31, 2012, there were 7,000 vested but unissued deferred
compensation stock units valued at $0.2 million.
Employee Stock Purchase Plan—The U.S. Cellular 2009 Employee Stock Purchase Plan was terminated
in the fourth quarter of 2011.
Compensation of Non-Employee Directors—U.S. Cellular issued 7,600, 6,600 and 9,000 Common Shares
in 2012, 2011 and 2010, respectively, under its Non-Employee Director compensation plan.
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