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CLEAR CHANNEL CAPITAL I, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The following table presents a summary of CCOH’s restricted stock and restricted stock units outstanding at and activity during the
year ended December 31, 2010 (“Price” reflects the weighted average share price at the date of grant):
Share-Based Compensation Cost
The share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on
a straight-line basis over the vesting period. The following table presents the amount of share-based compensation recorded during
the years ended December 31, 2010 and 2009, five months ended December 31, 2008 and the seven months ended July 30, 2008:
As of December 31, 2010, there was $40.6 million of unrecognized compensation cost, net of estimated forfeitures, related to
unvested share-based compensation arrangements that will vest based on service conditions. This cost is expected to be recognized
over two years. In addition, as of December 31, 2010, there was $59.3 million of unrecognized compensation cost, net of estimated
forfeitures, related to unvested share-based compensation arrangements that will vest based on market, performance and service
conditions. This cost will be recognized when it becomes probable that the performance condition will be satisfied.
Additionally, the Company recorded compensation expense of $6.0 million in “Corporate expenses” related to shares tendered by
Mark P. Mays to CCMH on August 23, 2010 for purchase at $36.00 per share pursuant to a put option included in his amended
employment agreement.
102
(In thousands, except per share data)
Awards
Price
Outstandin
g
, Januar
y
1, 2010
365
$18.14
Granted
11
12.57
Vested (restriction la
p
sed)
(173) 19.89
Forfeited
(23) 22.96
Outstandin
g
, December 31, 2010
180
15.36
(In thousands)
Post-Mer
g
er
Pre-Mer
g
er
Years Ended December 31,
Five Months
Ended
Seven Months
Ended
2010
2009
December 31,
2008
July 30,
2008
Direct o
p
eratin
g
ex
p
enses
$11,996
$11,361
$4,631
$21,162
Sellin
g
,
g
eneral & administrative ex
p
enses
7,109
7,304
2,687
21,213
Cor
p
orate ex
p
enses
15,141
21,121
8,593
20,348
Total share based com
p
ensation ex
p
ense
$ 34,246
$ 39,786
$ 15,911
$ 62,723