US Cellular 2014 Annual Report Download - page 79

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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 16 STOCK-BASED COMPENSATION (Continued)
A summary of U.S. Cellular stock options outstanding (total and portion exercisable) and changes during
the three years ended December 31, 2014, is presented in the table below:
Weighted Weighted
Average Average
Weighted Grant Remaining
Average Date Aggregate Contractual
Number of Exercise Fair Intrinsic Life
Common Share Options Options Price Value Value (in years)
Outstanding at December 31, 2011 ........ 2,834,000 $43.07
(1,533,000 exercisable) ................. 46.23
Granted .......................... 677,000 34.91 $12.61
Exercised ......................... (47,000) 29.82 $ 205,000
Forfeited .......................... (117,000) 38.45
Expired ........................... (133,000) 46.17
Outstanding at December 31, 2012 ........ 3,214,000 $41.58
(1,928,000 exercisable) ................. 43.99
Granted .......................... 1,213,000 32.45 $11.53
Exercised ......................... (892,000) 34.78 $6,787,000
Forfeited .......................... (574,000) 34.17
Expired ........................... (247,000) 48.35
Outstanding at December 31, 2013 ........ 2,714,000 $42.22
(1,359,000 exercisable) ................. $46.91
Granted .......................... 1,116,000 41.21 $10.68
Exercised ......................... (233,000) 32.80 $1,966,000
Forfeited .......................... (144,000) 35.09
Expired ........................... (65,000) 45.68
Outstanding at December 31, 2014 ........ 3,388,000 $41.51 $7,495,000 6.70
(1,586,000 exercisable) ................. $45.28 $2,984,000 4.40
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference
between U.S. Cellular’s closing stock price and the exercise price multiplied by the number of
in-the-money options) that was received by the option holders upon exercise or that would have been
received by option holders had all options been exercised on December 31, 2014.
Long-Term Incentive Plans—Restricted Stock Units—U.S. Cellular grants restricted stock unit awards,
which generally vest after three years, to key employees.
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.
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