Charter 2012 Annual Report Download - page 102

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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- 27
A summary of the activity for the Company’s restricted stock 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
Grant
Price Shares
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price
Outstanding, beginning of period 1,115 $ 45.72 1,081 $ 34.81 1,920 $ 35.25
Granted 244 $ 60.48 669 $ 53.16 177 $ 32.23
Vested (370) $ 36.02 (438) $ 34.98 (527) $ 35.14
Canceled (61) $ 35.25 (197) $ 34.98 (489) $ 35.25
Outstanding, end of period 928 $ 54.16 1,115 $ 45.72 1,081 $ 34.81
No restricted stock units were granted in 2010. A summary of the activity for the Company’s restricted stock units for the years
ended December 31, 2012 and 2011 is as follows (amounts in thousands, except per share data):
Year Ended December 31,
2012 2011
Shares
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price
Outstanding, beginning of period 273 $ 54.86 — $ —
Granted 142 $ 71.33 276 $ 54.87
Vested (52) $ 56.59 — $ —
Canceled (36) $ 54.47 (3) $ 55.12
Outstanding, end of period 327 $ 61.79 273 $ 54.86
16. Income Taxes
All of Charter’s operations are held through Charter Holdco and its direct and indirect subsidiaries. Charter Holdco and the
majority of its subsidiaries are generally limited liability companies that are not subject to income tax. However, certain of these
limited liability companies are subject to state income tax. In addition, the indirect subsidiaries that are corporations are subject
to federal and state income tax. All of the remaining taxable income, gains, losses, deductions and credits of Charter Holdco are
passed through to Charter and its direct subsidiaries.
On February 8, 2010, Charter acquired the remaining interests in Charter Holdco that it did not already own in a non-taxable
transaction with a Paul Allen related entity, pursuant to an exchange agreement entered into in connection with the Plan, in exchange
for 212,923 shares of Charter’s Class A common stock after which Charter Holdco became 100% owned by Charter. As a result
of this transaction, Charter recorded the tax attributes previously attributed to the noncontrolling interest which increased net
deferred tax liabilities by approximately $99 million. The $99 million is the result of an overall increase in the gross deferred tax
liability of $221 million and a corresponding reduction of valuation allowance of $122 million. The combined net effects of this