US Cellular 2015 Annual Report Download - page 108

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A summary of TDS nonvested restricted stock units and changes during 2015, is presented in the table below:
Weighted
Average
Grant Date
Common Restricted Stock Units Number Fair Value
Nonvested at December 31, 2014 ...................................... 692,000 $ 23.20
Granted ..................................................... 368,000 $ 27.57
Forfeited ..................................................... (16,000) $ 25.60
Nonvested at December 31, 2015 ...................................... 1,044,000 $ 24.70
No restricted stock units vested during 2015. The total fair values as of the respective vesting dates of restricted stock
units vested during 2014 and 2013 were $7.5 million and $5.8 million, respectively. The weighted average grant date fair
value per share of the restricted stock units granted in 2015, 2014 and 2013 was $27.57, $25.26 and $21.09,
respectively.
Long-Term Incentive Plans – Deferred Compensation Stock Units – Certain TDS 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 TDS Common Share units. The amount of TDS’ matching contribution depends on the portion of the annual
bonus that is deferred. Participants receive a 25% stock unit 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 TDS Common Share units.
The total fair values of deferred compensation stock units that vested during 2015, 2014 and 2013 were $0.1 million,
$0.1 million and $0.1 million, respectively. The weighted average grant date fair value per share of the deferred
compensation stock units granted in 2015, 2014 and 2013 was $25.36, $23.27 and $21.99, respectively. As of
December 31, 2015, there were 261,000 vested but unissued deferred compensation stock units valued at $6.8 million.
Compensation of Non-Employee Directors – TDS issued 28,000, 33,000 and 33,000 Common Shares under its
Non-Employee Director plan in 2015, 2014 and 2013, respectively.
Dividend Reinvestment Plans (‘‘DRIP’’) – TDS had reserved 605,000 Common Shares at December 31, 2015, for
issuance under Automatic Dividend Reinvestment and Stock Purchase Plans and 107,000 Series A Common Shares for
issuance under the Series A Common Share Automatic Dividend Reinvestment Plan. These plans enabled holders of
TDS’ Common Shares and Preferred Shares to reinvest cash dividends in Common Shares and holders of Series A
Common Shares to reinvest cash dividends in Series A Common Shares. The purchase price of the shares is 95% of
the market value, based on the average of the daily high and low sales prices for TDS’ Common Shares on the New
York Stock Exchange for the ten trading days preceding the date on which the purchase is made. These plans are
considered non-compensatory plans; therefore no compensation expense is recognized for stock issued under these
plans.
U.S. Cellular
The information in this section relates to stock-based compensation plans using the equity instruments of U.S. Cellular.
Participants in these plans are employees of U.S. Cellular and Non-employee Directors of U.S. Cellular. Information
related to plans using the equity instruments of TDS are shown in the previous section.
U.S. Cellular has established the following stock-based compensation plans: Long-Term Incentive Plans and a
Non-Employee Director compensation plan.
Under the U.S. Cellular Long-Term Incentive Plans, 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, 2015, the only types of awards outstanding are fixed non-qualified stock option awards,
restricted stock unit awards, and deferred compensation stock unit awards.
Under the Non-Employee Director compensation plan, U.S. Cellular may grant Common Shares to members of the
Board of Directors who are not employees of U.S. Cellular or TDS.
100
TELEPHONE AND DATA SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS