FairPoint Communications 2006 Annual Report Download - page 93
Download and view the complete annual report
Please find page 93 of the 2006 FairPoint Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
 |
 |
In 2006 and 2005, the Company’s board of directors approved an annual award to each of the Company’s non-employee directors of approximately
$30,000 in the form of non-vested stock or stock units, at the recipient’s option, issued under the 2005 Plan. The non-vested stock and stock units will vest in
four equal quarterly installments on the first day of each of the first four calendar quarters following the grant date and the holders thereof will be entitled to
receive dividends from the date of grant, whether or not vested. In 2005, the Company granted 1,870 shares of non-vested stock with a total value at the grant
date of approximately $30,000 and 7,480 stock units with a total value at the grant date of approximately $120,000 to the Company’s non-employee directors.
In 2006, the Company granted an additional 2,200 shares of non-vested stock with a total value at the grant date of approximately $30,000 and 11,000 stock
units with a total value at the grant date of approximately $150,000 to the Company’s non-employee directors. As of December 31, 2006, an additional 2,017
stock units were granted in lieu of dividends on the stock units. In addition, in February 2006, 467 stock units were granted to a newly appointed non-
employee director. These stock units vested on April 1, 2006.
The fair value of the awards is calculated as the fair market value of the shares on the date of grant. Beginning on January 1, 2006, the Company
adopted the provisions of SFAS 123(R) using the modified prospective method for the awards under the 2005 Plan as all awards were granted subsequent to
the Company becoming public. Under this methodology, the Company is required to estimate expected forfeitures related to these grants and, for the non-
dividend paying shares, the compensation expense is reduced by the present value of the dividends which were not paid on those shares prior to their vesting.
The following table presents information regarding non-vested stock granted to employees under the 2005 Plan during 2006:
Non-vested stock
Non-vested at December 31, 2004 — $ —
Granted 523,716 18.16
Vested — —
Forfeited (53,687) 18.50
Non-vested at December 31, 2005 470,029 18.13
Granted 233,926 16.93
Vested (88,773) 18.17
Forfeited (62,369) 18.27
Non-vested at December 31, 2006 552,813 17.60
The weighted average fair market value of the 88,773 shares that vested in 2006 was $14.14.
91