US Cellular 2014 Annual Report Download - page 80

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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 nonvested restricted stock units at December 31, 2014 and changes during
the year then ended is presented in the table below:
Weighted
Average
Grant Date
Common Restricted Stock Units Number Fair Value
Nonvested at December 31, 2013 ...................... 1,170,000 $36.46
Granted ....................................... 370,000 41.24
Vested ........................................ (274,000) 41.92
Forfeited ...................................... (124,000) 34.38
Nonvested at December 31, 2014 ...................... 1,142,000 $35.60
The total fair value of restricted stock units that vested during 2014, 2013 and 2012 was $11.1 million,
$8.8 million and $8.9 million, respectively, as of the respective vesting dates. The weighted average grant
date fair value of restricted stock units granted in 2014, 2013 and 2012 was $41.24, $32.06 and $34.09,
respectively.
Long-Term Incentive Plans—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.
There were no deferred compensation stock units granted or that vested during 2014. The total fair value
of deferred compensation stock units that vested during 2013 and 2012 was less than $0.1 million in
each year. The weighted average grant date fair value of deferred compensation stock units granted in
2013 and 2012 was $31.50 and $36.34, respectively. As of December 31, 2014, there were no vested or
unissued deferred compensation stock units outstanding.
Compensation of Non-Employee Directors—U.S. Cellular issued 14,200, 13,000 and 7,600 Common
Shares in 2014, 2013 and 2012, respectively, under its Non-Employee Director compensation plan.
Stock-Based Compensation Expense
The following table summarizes stock-based compensation expense recognized during 2014, 2013 and
2012:
Year Ended December 31, 2014 2013 2012
(Dollars in thousands)
Stock option awards ....................................... $ 9,513 $ 5,810 $ 8,471
Restricted stock unit awards ................................. 12,125 9,485 12,300
Deferred compensation bonus and matching stock unit awards ........ 185 2 240
Awards under Non-Employee Director compensation plan ............ 560 547 455
Total stock-based compensation, before income taxes ............... 22,383 15,844 21,466
Income tax benefit ........................................ (8,454) (5,984) (8,121)
Total stock-based compensation expense, net of income taxes ........ $13,929 $ 9,860 $13,345
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