Clearwire 2009 Annual Report Download - page 120

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Th
e
f
a
i
rva
l
ue o
f
eac
h
opt
i
on grant
i
s est
i
mate
d
on t
h
e
d
ate o
f
grant us
i
ng t
h
eB
l
ac
k
-Sc
h
o
l
es opt
i
on pr
i
c
i
ng
m
o
d
e
l
us
i
ng t
h
e
f
o
ll
ow
i
ng assumpt
i
ons
f
or t
h
e years en
d
e
d
Decem
b
er 31, 2009 an
d
2008
:
2009 2008
Year Ended December
31
,
Expected volatility ..................................
.
63.3
5
%-67.6
5
% 66.
5
2
%
Expected dividend
y
iel
d
...............................
—
—
Expected life (in
y
ears
)
...............................
4.7
5
- 6.2
5
4.7
5
Risk
-
f
r
ee i
n
te
r
est
r
ate
.................................
1.3
6
%-2.
9
8% 1.
9
3
%
We
igh
te
d
avera
g
e
f
a
i
rva
l
ue per opt
i
on at
g
rant
d
ate
..........
$
2.63
$
2.2
4
T
he fair value of option
g
rants in 2009 was $18.6 million. In addition to options issued in exchan
g
e as part of
t
he Transactions, the fair value of option grants during 2008 was
$
954,000. The total fair value of options vested
durin
g
the
y
ears ended December 31, 2009 and 2008 was $5.8 million and $815,000, respectivel
y
. The tota
l
unreco
g
nized share-based compensation costs related to non-vested stock options outstandin
g
at December 31
,
2
009 was approximately
$
11.5 million and is expected to be recognized over a weighted average period of
approx
i
mate
ly
1.7
y
ears.
For t
h
e years en
d
e
d
Decem
b
er 31, 2009 an
d
2008, our
f
or
f
e
i
ture rate use
di
nt
h
eca
l
cu
l
at
i
on o
f
stoc
k
opt
i
on
expense is 12.
66
%
.
Restricte
d
Stoc
k
Units
I
n connection with the Transactions
,
all Old Clearwire restricted stock units
,
which we refer to as RSUs
,
issued
an
d
outstan
di
n
g
at t
h
eC
l
os
i
n
g
were exc
h
an
g
e
d
on a one-
f
or-one
b
as
i
s
f
or RSUs w
i
t
h
equ
i
va
l
ent terms. Fo
ll
ow
i
n
g
t
he Closin
g
,we
g
ranted RSUs to certain officers and emplo
y
ees under the 2008 Plan. All RSUs vest over a four-
y
ear
p
eriod. The fair value of our RSUs is based on the
g
rant-date fair market value of the common stock, which equal
s
th
e grant
d
ate mar
k
et pr
i
ce
.
A
summary of the RSU activity for the years ended December 31, 2009 and 2008 is presented below:
Number o
f
R
S
U’
s
Wei
g
hted-
A
verage
G
rant Pric
e
R
estr
i
cte
d
stoc
k
un
i
ts outstan
di
ng — January 1, 200
7
.
...............
—
R
estricted stock units outstanding — December 31, 2007
.
............
—
R
estricted stock units acquired in purchase accountin
g
— November 28,
2008
..................................................
3
,
216
,
500 $13.19
Granted
................................................
716,000 4.10
Fo
rf
e
i
ted
...............................................
(43
,
000)
—
Re
l
ease
d
...............................................
(
508,098) 5.18
C
ance
ll
e
d
..............................................
(108
,777
)
—
R
estr
i
cte
d
stoc
k
un
i
ts outstan
di
ng — Decem
b
er 31, 200
8
.
...........
.
3
,
272
,
625
$
13.1
9
G
ranted ................................................ 10
,
938
,
677 4.3
9
Fo
rf
e
i
ted
...............................................
(
1,217,8
5
7
)5
.1
7
R
e
l
eased
...............................................
(1,140,2
5
1) 6.9
5
C
ancelle
d
..............................................
——
R
estr
i
cte
d
stoc
k
un
i
ts outstan
di
n
g
— Decem
b
er 31, 2009
.............
11
,
853
,
194
$
4.6
0
110
CLEARWIRE CORPORATION AND SUBSIDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)