US Cellular 2015 Annual Report Download - page 110

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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.
A summary of U.S. Cellular nonvested restricted stock units at December 31, 2015 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, 2014 ...................................... 1,142,000 $ 35.60
Granted ..................................................... 478,000 37.24
Vested ...................................................... (349,000) 34.05
Forfeited ..................................................... (77,000) 35.76
Nonvested at December 31, 2015 ...................................... 1,194,000 $ 36.70
The total fair value of restricted stock units that vested during 2015, 2014 and 2013 was $12.9 million, $11.1 million and
$8.8 million, respectively. The weighted average grant date fair value per share of the restricted stock units granted in
2015, 2014 and 2013 was $37.24, $41.24 and $32.06, 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.
The total fair value of deferred compensation stock units that vested during 2015 and 2013 was $0.2 million and less
than $0.1 million, respectively. The weighted average grant date fair value per share of the deferred compensation stock
units granted in 2015 and 2013 was $35.96 and $31.50, respectively. There were no deferred compensation stock units
granted or that vested during 2014. As of December 31, 2015, there were 6,000 vested but unissued deferred
compensation stock units valued at $0.2 million.
Compensation of Non-Employee Directors – U.S. Cellular issued 15,000, 14,200 and 13,000 Common Shares in 2015,
2014 and 2013, respectively, under its Non-Employee Director compensation plan.
102
TELEPHONE AND DATA SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS