Charter 2007 Annual Report Download - page 103

20. OTHER INCOME (EXPENSE), NET
Other income (expense), net consists of the following for years
presented:
2007 2006 2005
Year Ended December 31,
Minority interest (Note 11) $ (7) $ (4) $ 1
Gain (loss) on investment (Note 3) —16 22
Other, net (1) 2—
$ (8) $14 $23
21. STOCK COMPENSATION PLANS
The Company has stock compensation plans (the “Plans”) which
provide for the grant of non-qualified 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 20.0 million shares of
Charter Class A common stock), as each term is defined in the
Plans. Employees, officers, consultants and directors of the Com-
pany and its subsidiaries and affiliates are eligible to receive
grants under the Plans. Options granted generally vest over four
years from the grant date, with 25% generally vesting on the
anniversary of the grant date and ratably thereafter. Generally,
options expire 10 years from the grant date. The 2001 Stock
Incentive Plan allows for the issuance of up to a total of
90.0 million shares of Charter Class A common stock (or units
convertible into Charter Class A common stock).
In the years ended December 31, 2007, 2006, and 2005,
certain directors were awarded a total of 0.2 million, 0.6 million,
and 0.5 million shares, respectively, of restricted Class A com-
mon stock of which no shares had been cancelled as of Decem-
ber 31, 2007. The shares vest one year from the date of grant. In
2007, 2006, and 2005, in connection with new employment
agreements, certain officers were awarded 2.3 million, 0.1 million,
and 3.0 million shares, respectively, of restricted Class A com-
mon stock of which no shares had been cancelled as of Decem-
ber 31, 2007. The shares vest annually over a one to three-year
period beginning from the date of grant. As of December 31,
2007, deferred compensation remaining to be recognized in
future periods totaled $8 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, 2007, 2006, and 2005, is as follows (amounts in thousands, except per share data):
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
2007 2006 2005
Options outstanding, beginning of period 26,403 $3.88 29,127 $4.47 24,835 $6.57
Granted 4,549 2.77 6,065 1.28 10,810 1.36
Exercised (2,759) 1.57 (1,049) 1.41 (17) 1.11
Cancelled (2,511) 2.98 (7,740) 4.39 (6,501) 7.40
Options outstanding, end of period 25,682 $4.02 26,403 $3.88 29,127 $4.47
Weighted average remaining contractual life 7 years 8 years 8 years
Options exercisable, end of period 13,119 $5.88 10,984 $6.62 9,999 $7.80
Weighted average fair value of options granted $ 1.86 $ 0.96 $ 0.65
The following table summarizes information about stock options outstanding and exercisable as of December 31, 2007 (amounts in
thousands, except per share data):
Range of
Exercise Prices
Number
Outstanding
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
Number
Exercisable
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
Options Outstanding Options Exercisable
$1.00 - $1.36 8,915 8 years $ 1.17 3,097 8 years $ 1.17
$1.53 - $1.96 3,270 7 years 1.55 1,752 7 years 1.55
$2.66 - $3.35 5,712 8 years 2.89 1,372 6 years 2.93
$4.30 - $5.17 4,684 6 years 5.00 3,798 6 years 4.99
$9.13 - $12.27 1,406 4 years 10.95 1,406 4 years 10.95
$13.96 - $20.73 1,433 2 years 18.49 1,433 2 years 18.49
$21.20 - $23.09 262 3 years 22.84 262 3 years 22.84
F-25
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES 2007 FORM 10-K
Notes to Consolidated Financial Statements (continued)