iHeartMedia 2011 Annual Report Download - page 104

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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, 2011 (“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, 2011, 2010 and 2009:
The tax benefit related to the share-based compensation expense for the years ended December 31, 2011, 2010, and 2009 was $7.9
million, $13.0 million, and $15.1 million, respectively.
As of December 31, 2011, there was $42.8 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, 2011, there was $15.2 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.
Included in corporate share-based compensation for the year ended December 31, 2011 is a $6.6 million reversal of expense related to
the cancellation of a portion of an executive’s stock options. Additionally, CCMH completed a voluntary stock option exchange
program on March 21, 2011 and exchanged 2.5 million stock options granted under the Clear Channel 2008 Executive Incentive Plan
for 1.3 million replacement stock options with a lower exercise price and different service and performance conditions. CCMH
accounted for the exchange program as a modification of the existing awards under ASC 718 and will recognize incremental
compensation expense of approximately $1.0 million over the service period of the new awards.
During the year ended December 31, 2010, the Company recorded additional share-based 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.
101
(In thousands, except per share data)
Awards
Price
Outstanding, January 1, 2011
180
$15.36
Granted
—
Vested (restriction la
p
sed)
(88)
19.44
Forfeited
(9)
29.03
Outstandin
g
, December 31, 2011
83
8.69
(In thousands)
Years Ended December 31,
2011
2010
2009
Direct operating expenses
$ 10,013
$ 11,996
$ 11,361
Sellin
g
,
g
eneral &administrative ex
p
enses
5,359
7,109
7,304
Cor
p
orate ex
p
enses
5,295
15,141
21,121
Total share based com
p
ensation ex
p
ense
$ 20,667
$ 34,246
$ 39,786