Sprint - Nextel 2005 Annual Report Download - page 148

Download and view the complete annual report

Please find page 148 of the 2005 Sprint - Nextel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 161

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161

SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Stock Options
Activity under our stock option plans was as follows:
Shares
Under
Option
Weighted
Average per
Share
Exercise
Price
(in millions)
Outstanding December 31, 2002 ............................................ 135.2 $28.04
Granted .............................................................. 15.8 10.73
Exercised ............................................................ (1.2) 12.38
Forfeited/expired ...................................................... (9.2) 27.84
Outstanding December 31,2003 ............................................. 140.6 26.25
Granted .............................................................. 7.7 18.08
Exercised ............................................................ (10.9) 14.43
Forfeited/expired ...................................................... (10.0) 31.39
Outstanding December 31,2004 ............................................. 127.4 26.35
Nextel option exchange ................................................. 102.8 21.08
Granted .............................................................. 7.1 25.30
Exercised ............................................................ (28.6) 15.32
Forfeited/expired ...................................................... (9.5) 34.74
Outstanding December 31, 2005 ............................................ 199.2 24.75
The following is a summary of the status of employees’ stock options outstanding and exercisable as of
December 31, 2005:
Option Outstanding Option Exercisable
Range of Exercise Prices Shares
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price
(in millions) (years) (in millions)
$2.00 - $9.99 .......................... 20.2 5.98 $ 6.79 14.4 $ 6.41
10.00 - 19.99 .......................... 58.3 6.36 15.47 36.3 15.20
20.00 - 29.99 .......................... 74.0 6.17 22.98 48.3 23.02
30.00 - 39.99 .......................... 15.4 3.08 36.84 15.3 36.84
40.00 - 49.99 .......................... 24.9 4.22 47.93 24.9 47.93
50.00 - 79.99 .......................... 5.3 3.70 58.92 5.3 58.92
80.00 - 139.99 ......................... 1.1 2.99 107.22 1.1 107.22
The number of shares exercisable and their weighted average exercise prices were 145.6 million shares at $27.10
in 2005, 101.4 million shares at $29.04 in 2004, and 103.3 million shares at $29.36 in 2003.
Note 18. Employee Benefit Plans
Defined Benefit Pension Plan
Most of our legacy Sprint employees are participants in a noncontributory defined benefit pension plan. Benefits
for plan participants belonging to unions are based on negotiated schedules. For non-union participants, pension
benefits are based on years of service and the participants’ compensation.
F-53