Charter 2010 Annual Report Download - page 107

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F- F-PB
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2010, 2009, AND 2008
(dollars in millions, except share or per share data or where indicated)
an exercise price of $46.86 and $51.28 per share, respectively, that expire five years from the date of issuance, and CII received 4.7 million
warrants to purchase shares of new Charter Class A common stock with an exercise price of $19.80 per share that expire seven years from the
date of issuance. e warrants were valued at approximately $90 million using the Black-Scholes option-pricing model and are included in
the accompanying balance sheets in total Charter shareholders’ equity.
e following table summarizes our share activity for the three years ended December 31, 2010:
Class A
Common
Stock
Class B
Common
Stock
PREDECESSOR:
BALANCE, January 1, 2008, Predecessor 398,226,468 50,000
Option exercises and performance share vesting 1,616,906 --
Restricted stock issuances, net of cancellations 10,194,534 --
Issuances in exchange for preferred shares 4,699,986 --
Returns pursuant to share lending agreement (3,000,000) --
BALANCE, December 31, 2008, Predecessor 411,737,894 50,000
Performance share vesting 890,692 --
Restricted stock cancellations (10,518,362) --
Returns pursuant to share lending agreement (18,784,300) --
Cancellation of Predecessor Class A and Class B
common stock (383,325,924) (50,000)
BALANCE, November 30, 2009, Predecessor -- --
SUCCESSOR:
Issuance of new Charter Class A and Class B common
stock in connection with emergence from Chapter 11 109,748,948 2,241,299
Balance, November 30, 2009, Successor 109,748,948 2,241,299
CII exchange of Charter Holdco interest (see Note 18) 907,698 --
Restricted stock issuances 1,920,226 --
BALANCE, December 31, 2009, Successor 112,576,872 2,241,299
CII exchange of Charter Holdco interest (see Note 18) 212,923 --
Restricted stock issuances, net of cancellations (311,650) --
Warrant exercise 21 --
Stock issuance 16,000
Purchase of treasury stock (176,475) --
BALANCE, December 31, 2010, Successor 112,317,691 2,241,299
In 2006 and 2005, Charter issued 116.9 million shares of Class A common stock in public offerings. ese offerings of Class A common
stock were conducted to facilitate transactions by which investors in Charter’s 5.875% convertible senior notes due 2009 hedged their
investments in the convertible senior notes. e shares were issued pursuant to the share lending agreement, pursuant to which Charter
had previously agreed to loan up to 150 million shares to Citigroup Global Markets Limited (“CGML”). As of November 30, 2009, 113.9
million shares had been returned under the share lending agreement. e remaining shares were cancelled on the Effective Date.
During the year ended December 31, 2010, the Company withheld 176,475 shares of its common stock in payment of income tax
withholding owed by employees upon vesting of restricted shares. e Company accounts for treasury stock using the cost method and