Charter 2003 Annual Report Download - page 133

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2003, 2002 and 2001
(dollars in millions, except where indicated)
The 2001 Plan provides for the grant of non-qualiÑed stock options, stock appreciation rights, dividend
equivalent rights, performance units and performance shares, share awards, phantom stock and/or shares of
restricted stock (not to exceed 3,000,000), as each term is deÑned in the 2001 Plan. Employees, oÇcers,
consultants and directors of the Company and its subsidiaries and aÇliates are eligible to receive grants under
the 2001 Plan. Options granted generally vest over four years from the grant date, with 25% vesting on the
anniversary of the grant date and ratably thereafter. Generally, options expire 10 years from the grant date.
The 2001 Plan allows for the issuance of up to a total of 90,000,000 shares of Charter Class A common
stock (or units convertible into Charter Class A common stock). The total shares available reÖect a July 2003
amendment to the 2001 Plan approved by the board of directors and the shareholders of Charter to increase
available shares by 30,000,000 shares. In 2001, any shares covered by options that terminated under the 1999
Plan were transferred to the 2001 Plan, and no new options can be granted under the 1999 Plan.
During July and October 2003, in connection with new employment agreements and related option
agreements entered into by the Company, certain executives and directors were awarded a total of 80,603
shares of restricted Class A common stock. The shares vest monthly over a twelve-month period beginning on
the date of grant. During September and October 2001, in connection with new employment agreements and
related option agreements entered into by the Company, certain executives of the Company were awarded a
total of 256,000 shares of restricted Class A common stock, of which 140,063 shares had been cancelled as of
December 31, 2003. The shares vested 25% upon grant, with the remaining shares vesting monthly over a
three-year period beginning after the Ñrst anniversary of the date of grant. As of December 31, 2003, deferred
compensation remaining to be recognized in future periods totaled $0.2 million.
A summary of the activity for the Company's stock options, excluding granted shares of restricted
Class A common stock, for the years ended December 31, 2003, 2002 and 2001, is as follows (amounts in
thousands, except per share data):
2003 2002 2001
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Shares Price Shares Price Shares Price
Options outstanding, beginning of period ÏÏÏÏÏÏ 53,632 $14.22 46,558 $17.10 28,482 $19.24
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,983 3.53 13,122 4.88 29,395 16.01
Exercised ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (165) 3.96 Ì Ì (278) 19.23
Cancelled ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (13,568) 14.10 (6,048) 16.32 (11,041) 19.59
Options outstanding, end of period ÏÏÏÏÏÏÏÏÏÏÏ 47,882 $12.48 53,632 $14.22 46,558 $17.10
Weighted average remaining contractual lifeÏÏÏ 8 years 8 years 9 years
Options exercisable, end of period ÏÏÏÏÏÏÏÏÏÏÏ 22,861 $16.36 17,844 $17.93 9,994 $18.51
Weighted average fair value of options granted $ 2.71 $ 2.89 $ 9.15
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