XM Radio 2008 Annual Report Download - page 88

The following table summarizes the non-vested restricted stock and restricted stock unit activity under our
share-based payment plans for the year ended December 31, 2008 (shares in thousands):
Shares
Weighted-
Average
Grant Date
Fair Value
Nonvested, January 1, 2006 ...................................... 21,977 $2.36
Granted .................................................... 1,503 $5.57
Vested . .................................................... (19,294) $2.11
Forfeited.................................................... (100) $7.04
Nonvested, December 31, 2006 ................................... 4,086 $4.64
Granted .................................................... 2,188 $3.58
Vested . .................................................... (2,575) $5.12
Forfeited.................................................... (76) $1.96
Nonvested, December 31, 2007 ................................... 3,623 $3.70
Shares exchanged for non-vested XM Holdings shares .................. 33,339 $2.93
Granted .................................................... 3,208 $2.87
Vested . .................................................... (18,135) $3.06
Forfeited.................................................... (2,104) $2.90
Nonvested, December 31, 2008 ................................... 19,931 $2.84
The weighted average grant date fair value of restricted stock units granted during the years ended
December 31, 2008, 2007 and 2006 was $2.87, $3.58 and $5.57, respectively. The total intrinsic value of restricted
stock units that vested during the years ended December 31, 2008, 2007 and 2006 was $21,451, $8,668 and $97,846,
respectively.
We recognized share-based payment expense associated with restricted stock units and shares of restricted
stock of $15,650, $10,623 and $16,127 for the years ended December 31, 2008, 2007 and 2006.
For the year ended December 31, 2008, we recognized share-based payment expense of $6,163 for restricted
stock units granted for services performed in 2008. For the year ended December 31, 2007, we recognized share-
based payment expense of $3,859 for restricted stock units granted for services performed in 2007 or upon the
satisfaction of 2007 performance targets.
Total unrecognized compensation costs related to unvested share-based payment awards granted to employees
and members of our board of directors at December 31, 2008 and 2007, net of estimated forfeitures, was $90,310
and $80,635, respectively. The weighted-average period over which the compensation expense for these awards is
expected to be recognized is three years as of December 31, 2008.
401(k) Savings Plans
We sponsor the Sirius Satellite Radio 401(k) Savings Plan (the “Sirius Plan”) and the XM Satellite Radio
401(k) Savings Plan (the “XM Plan”) for eligible employees. The Sirius Plan allows eligible employees to
voluntarily contribute from 1% to 50% of their pre-tax salary subject to certain defined limits, while the XM Plan
allows eligible employees to defer the maximum percentage of their compensation allowable under law on a pre-tax
basis through contributions to the savings plan. Under the Sirius Plan, SIRIUS matches 50% of an employee’s
voluntary contributions, up to 6% of an employee’s pre-tax salary, in the form of shares of common stock. Matching
contributions under the Sirius Plan vest at a rate of 331⁄3% for each year of employment and are fully vested after
three years of employment. Under the XM Plan, XM Holdings matches 50% of an employee’s voluntary
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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)