Clearwire 2009 Annual Report Download - page 121

T
he total fair value of grants during 2009 and 2008 was
$
48.0 million and
$
2.9 million, respectively. Th
e
i
ntrinsic value of RSUs released during the years ended December 31, 2009 and 2008 was
$
7.9 million an
d
$3.2 million, respectivel
y
. As of December 31, 2009, there were 11,853,194 units outstandin
g
and total unrec-
ognized compensation cost of approximately
$
30.9 million, which is expected to be recognized over a weighted-
average per
i
o
d
o
f
approx
i
mate
l
y 1.8 years.
For the
y
ears ended December 31, 2009 and 2008, we used a forfeiture rate of 7.75% and 7.50%, respectivel
y
,
i
n determining compensation expense for our RSUs
.
S
p
rint E
q
uit
y
Com
p
ensation P
l
ans
I
n connection with the Transactions, certain of the Sprint WiMAX Business emplo
y
ees became emplo
y
ees of
Clearwire and currently hold unvested Sprint stock options and RSUs in Sprint’s equity compensation plans, whic
h
w
ere
f
er to co
ll
ect
i
ve
ly
as t
h
e Spr
i
nt P
l
ans. T
h
eun
d
er
lyi
n
g
s
h
are
f
or awar
d
s
i
ssue
d
un
d
er t
h
e Spr
i
nt P
l
ans
i
s Spr
i
nt
c
ommon stoc
k
.T
h
e Spr
i
nt P
l
ans a
ll
ow
f
or cont
i
nue
d
p
l
an part
i
c
i
pat
i
on as
l
on
g
as t
h
e emp
l
o
y
ee rema
i
ns emp
l
o
y
e
d
b
y a Sprint subsidiary or affiliate. Under the Sprint Plans, options are generally granted with an exercise price equal
t
ot
h
e mar
k
et va
l
ue o
f
t
h
eun
d
er
l
y
i
ng s
h
ares on t
h
e grant
d
ate, genera
ll
y vest over a per
i
o
d
o
f
up to
f
our years an
d
h
ave a contractua
l
term o
f
ten
y
ears. RSUs
g
enera
lly h
ave
b
ot
h
per
f
ormance an
d
serv
i
ce requ
i
rements w
i
t
h
vest
i
n
g
p
eriods ran
g
in
g
from one to three
y
ears. RSUs
g
ranted after the second quarter 2008 included quarterl
y
perfor-
m
ance targets
b
ut were not grante
d
unt
il
per
f
ormance targets were met. T
h
ere
f
ore, at t
h
e grant
d
ate t
h
ese awar
ds
on
l
y
h
a
d
a rema
i
n
i
ng serv
i
ce requ
i
rement an
d
vest
i
ng per
i
o
d
o
f
s
i
x mont
h
s
f
o
ll
ow
i
ng t
h
e
l
ast
d
ay o
f
t
h
e app
li
ca
bl
e
q
uarter. Emplo
y
ees who were
g
ranted RSUs were not required to pa
y
for the shares but
g
enerall
y
must remain
e
mp
l
oye
d
w
i
t
h
Spr
i
nt or a su
b
s
idi
ary, unt
il
t
h
e restr
i
ct
i
ons
l
apse, w
hi
c
h
was typ
i
ca
ll
yt
h
ree years or
l
ess. At
D
ecember 31, 2009, there were 722,954 unvested options and 213,127 unvested RSUs outstanding
.
Th
es
h
are-
b
ase
d
compensat
i
on assoc
i
ate
d
w
i
t
h
t
h
ese emp
l
o
y
ees
i
s
i
ncurre
dby
Spr
i
nt on our
b
e
h
a
lf
. Spr
i
n
t
p
rovided us with the fair value of the options and RSUs for each reporting period, which must be remeasured based
on t
h
e
f
a
i
rva
l
ue o
f
t
h
e equ
i
t
yi
nstruments at eac
h
report
i
n
g
per
i
o
d
unt
il
t
h
e
i
nstruments are veste
d
. Tota
l
unreco
g
n
i
ze
d
s
h
are-
b
ase
d
compensat
i
on costs re
l
ate
d
to unveste
d
stoc
k
opt
i
ons an
d
RSUs outstan
di
n
g
as o
f
D
ecember 31, 2009 was $70,250 and $186,100, respectivel
y
, and is expected to be reco
g
nized over approximatel
y
one
y
ear
.
Share-based compensation expense reco
g
nized for all plans for the
y
ears ended December 31, 2009, 2008 an
d
2
007 is as follows (in thousands)
:
2009 2008 200
7
Y
ear Ended December
31
.
Op
tion
s
.................................................
$
6,386 $2,371 $—
RSU
s
..................................................
20
,
091 1
,
292
—
Spr
i
nt Equ
i
t
y
Compensat
i
on P
l
ans
.............................
1,
035 2
,
802 —
$
27,512 $6,465 $—
15. Stockholders’ Equit
y
Cl
ass A
C
ommon
S
toc
k
Th
eC
l
ass A Common Stoc
k
represents t
h
e common equ
i
t
y
o
f
C
l
earw
i
re. T
h
e
h
o
ld
ers o
f
t
h
eC
l
ass A Commo
n
S
toc
k
are ent
i
t
l
e
d
to one vote per s
h
are an
d
,asac
l
ass, are ent
i
t
l
e
d
to 100% o
f
an
ydi
v
id
en
d
sor
di
str
ib
ut
i
ons ma
d
e
by
Clearwire, with the exception of certain minimal liquidation ri
g
hts provided to the Class B Common Stockholders
,
w
hi
c
h
are
d
escr
ib
e
db
e
l
ow. Eac
h
s
h
are o
f
C
l
ass A Common Stoc
k
part
i
c
i
pates rata
bl
y
i
n proport
i
on to t
h
e tota
l
n
um
b
er o
f
s
h
ares o
f
C
l
ass A Common Stoc
ki
ssue
dby
C
l
earw
i
re. Ho
ld
ers o
f
C
l
ass A Common Stoc
kh
ave 100% o
f
the economic interest in Clearwire and are considered the controllin
g
interest for the purposes of financial reportin
g
.
111
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)