Charter 2012 Annual Report Download - page 101

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2012, 2011 AND 2010
(dollars in millions, except share or per share data or where indicated)
F- 26
Under the 2009 Stock Incentive Plan, stock options generally vest annually over four years from either the grant date or delayed
vesting commencement dates. A portion of stock options and restricted stock vest based on achievement of stock price hurdles.
Stock options generally expire ten years from the grant date. Restricted stock vests annually over a one to four-year period beginning
from the date of grant. Restricted stock units have no voting rights and vest ratably over four years from either the grant date or
delayed vesting commencement dates. As of December 31, 2012, total unrecognized compensation remaining to be recognized
in future periods totaled $50 million for stock options, $33 million for restricted stock and $17 million for restricted stock units
and the weighted average period over which they are expected to be recognized is three years.
The Company recorded $50 million, $36 million and $26 million of stock compensation expense for the years ended December 31,
2012, 2011 and 2010, respectively, which is included in operating costs and expenses and other operating expenses, net.
A summary of the activity for the Company’s stock options for the years ended December 31, 2012, 2011 and 2010, is as
follows (amounts in thousands, except per share data):
Year Ended December 31,
2012 2011 2010
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
Outstanding, beginning of period 4,018 $ 49.53 1,431 $ 35.12 — $ —
Granted 813 $ 69.00 3,042 $ 54.30 1,461 $ 35.12
Exercised (371) $ 40.57 (141) $ 35.38 — $ —
Canceled (908) $ 51.74 (314) $ 36.40 (30) $ 35.38
Outstanding, end of period 3,552 $ 54.35 4,018 $ 49.53 1,431 $ 35.12
Weighted average remaining contractual life 8 years 9 years 10 years
Options exercisable, end of period 469 $ 46.23 189 $ 34.92 — $ —
Weighted average fair value of options granted $ 28.17 $ 23.03 $ 17.00