Charter 2013 Annual Report Download - page 109

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2013, 2012 AND 2011
(dollars in millions, except share or per share data or where indicated)
F- 27
14. Other Operating Expenses, Net
Other operating expenses, net consist of the following for the years presented:
Year Ended December 31,
2013 2012 2011
(Gain)/loss on sale of assets, net $ 8 $ (5)$ (4)
Special charges, net 23 20 11
$31$15$ 7
(Gain) loss on sale of assets, net
(Gain) loss on sale of assets represents the gain or loss recognized on the sales and disposals of fixed assets and cable systems.
Special charges, net
Special charges, net for the years ended 2013, 2012 and 2011 primarily include severance charges and net amounts of litigation
settlements.
15. Stock Compensation Plans
Charter’s 2009 Stock Incentive Plan provides for grants of non-qualified stock options, incentive stock options, stock appreciation
rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units
and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing
consulting services for the Company, are eligible for grants under the 2009 Stock Incentive Plan. The 2009 Stock Incentive Plan
allows for the issuance of up to 14 million shares of Charter Class A common stock (or units convertible into Charter Class A
common stock).
Stock options generally vest annually over three or four years from either the grant date or delayed vesting commencement dates.
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. A portion of stock options and restricted stock vest based on achievement of stock price hurdles. Restricted
stock units have no voting rights and generally vest over three or four years from either the grant date or delayed vesting
commencement dates. As of December 31, 2013, total unrecognized compensation remaining to be recognized in future periods
totaled $34 million for stock options, $18 million for restricted stock and $18 million for restricted stock units and the weighted
average period over which they are expected to be recognized is 2 years for stock options, 2 years for restricted stock and 3 years
for restricted stock units.
The Company recorded $48 million, $50 million and $36 million of stock compensation expense for the years ended December 31,
2013, 2012 and 2011, respectively, which is included in operating costs and expenses and other operating expenses, net.