Charter 2015 Annual Report Download - page 125

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2015, 2014 AND 2013
(dollars in millions, except share or per share data or where indicated)
F- 28
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 granted prior to 2014 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. Certain stock options and restricted stock vest based on achievement of stock
price hurdles. Restricted stock units have no voting rights, and restricted stock units granted prior to 2014 vest ratably over three
or four years from either the grant date or delayed vesting commencement dates. Stock options and restricted stock units granted
in 2014 and 2015 cliff vest over three years.
As of December 31, 2015, total unrecognized compensation remaining to be recognized in future periods totaled $89 million for
stock options, $2 million for restricted stock and $31 million for restricted stock units and the weighted average period over which
they are expected to be recognized is 2 years for stock options, 3 months for restricted stock and 2 years for restricted stock units.
The Company recorded $78 million, $55 million and $48 million of stock compensation expense for the years ended December 31,
2015, 2014 and 2013, respectively, which is included in operating costs and expenses.
A summary of the activity for the Company’s stock options for the years ended December 31, 2015, 2014 and 2013, is as
follows (shares in thousands, except per share data):
Year Ended December 31,
2015 2014 2013
Shares
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value Shares
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value Shares
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Outstanding, beginning of
period 3,689 $ 86.29 3,142 $ 59.86 3,552 $ 54.35
Granted 1,301 $ 160.16 1,234 $ 136.75 276 $ 108.89
Exercised (579) $ 65.34 $ 68 (640) $ 52.50 $ 55 (543) $ 51.22 $ 33
Canceled (72) $ 140.36 (47) $ 104.57 (143) $ 50.54
Outstanding, end of period 4,339 $ 110.34 $ 316 3,689 $ 86.29 3,142 $ 59.86
Weighted average remaining
contractual life 7 years 7 years 7 years
Options exercisable, end of
period 1,354 $ 55.95 $ 172 1,317 $ 55.65 1,128 $ 52.07
Options expected to vest,
end of period 2,730 $ 132.41 $ 139
Weighted average fair value
of options granted $ 59.86 $ 55.08 $ 41.52