Charter 2006 Annual Report Download - page 108

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES 2006 FORM 10-K
Notes to Consolidated Financial Statements (continued)
nying consolidated statement of operations for the year ended the anniversary of the grant date and ratably thereafter.
December 31, 2004 from privately negotiated exchanges of a Generally, options expire 10 years from the grant date. The
total of $30 million principal amount of Charter’s 5.75% convert- Plans allow for the issuance of up to a total of 90,000,000 shares
ible senior notes for shares of Charter Class A common stock. of Charter Class A common stock (or units convertible into
The exchanges resulted in the issuance of more shares in the Charter Class A common stock).
exchange transaction than would have been issuable under the In the years ended December 31, 2006, 2005 and 2004,
original terms of the convertible senior notes. certain directors were awarded a total of 574,543, 492,225 and
182,932 shares, respectively, of restricted Class A common stock
20. STOCK COMPENSATION PLANS of which 34,239 shares had been cancelled as of December 31,
2006. The shares vest one year from the date of grant. In 2006,
The Company has stock option plans (the ‘‘Plans’’) which 2005 and 2004, in connection with new employment agree-
provide for the grant of non-qualified stock options, stock ments, certain officers were awarded 100,000, 2,987,500 and
appreciation rights, dividend equivalent rights, performance units 50,000 shares, respectively, of restricted Class A common stock
and performance shares, share awards, phantom stock and/or of which 50,000 shares had been cancelled as of December 31,
shares of restricted stock (not to exceed 20,000,000 shares of 2006. The shares vest annually over a one to three-year period
Charter Class A common stock), as each term is defined in the beginning from the date of grant. As of December 31, 2006,
Plans. Employees, officers, consultants and directors of the deferred compensation remaining to be recognized in future
Company and its subsidiaries and affiliates are eligible to receive periods totaled $12 million.
grants under the Plans. Options granted generally vest over four
to five years from the grant date, with 25% generally vesting on
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, 2006, 2005 and 2004, is as follows (amounts in thousands, except per share data):
2006 2005 2004
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Shares Price Shares Price Shares Price
Options outstanding, beginning of period 29,127 $ 4.47 24,835 $6.57 47,882 $12.48
Granted 6,065 1.28 10,810 1.36 9,405 4.88
Exercised (1,049) 1.41 (17) 1.11 (839) 2.02
Cancelled (7,740) 4.39 (6,501) 7.40 (31,613) 15.16
Options outstanding, end of period 26,403 $ 3.88 29,127 $4.47 24,835 $ 6.57
Weighted average remaining contractual life 8 years 8 years 8 years
Options exercisable, end of period 10,984 $ 6.62 9,999 $7.80 7,731 $10.77
Weighted average fair value of options granted $ 0.96 $ 0.65 $ 3.71
The following table summarizes information about stock options outstanding and exercisable as of December 31, 2006:
Options Outstanding Options Exercisable
Weighted- Weighted-
Average Weighted- Average Weighted-
Remaining Average Remaining Average
Range of Number Contractual Exercise Number Contractual Exercise
Exercise Prices Outstanding Life Price Exercisable Life Price
(In thousands) (In thousands)
$1.00 - $1.36 10,197 9 years $ 1.15 1,379 8 years $ 1.18
$1.53 - $1.96 5,101 8 years 1.55 1,825 7 years 1.56
$2.85 - $3.35 2,608 7 years 2.96 1,495 6 years 2.90
$4.30 - $5.17 5,391 7 years 5.03 3,179 7 years 5.00
$9.13 - $12.27 1,426 5 years 10.95 1,426 5 years 10.95
$13.96 - $20.73 1,418 3 years 18.61 1,418 3 years 18.61
$21.20 - $23.09 262 4 years 22.84 262 4 years 22.84
In 2004, the Company completed an option exchange to exchange all stock options (vested and unvested) under the
program in which the Company offered its employees the right 1999 Charter Communications Option Plan and 2001 Stock
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