Sprint - Nextel 2006 Annual Report Download - page 105

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met. Other adjustments to the original grants are categorized as either performance not met or as a forfei-
ture. We evaluated these restricted stock units as of December 31, 2006. As these units now only have a
remaining required service period, the units outstanding as of December 31, 2006 are included in the
future service required column.
As of December 31, 2006, there was $45 million of total unrecognized compensation cost related to restricted
stock units that is expected to be recognized over a weighted-average period of 1.53 years. The total fair value
of restricted stock units vested was $49 million during 2006, $4 million during 2005 and $2 million during
2004. The weighted-average grant date fair value of restricted stock units granted for 2006 was $24.04 per
unit, compared with $24.61 per unit for 2005 and $18.07 per unit for 2004.
We pay cash dividend equivalents on most outstanding restricted stock units. Dividend equivalents paid on
restricted stock units are principally charged to retained earnings when paid.
Nonvested Shares
Our nonvested shares consist of restricted shares granted under the 1997 Program and deferred shares granted
under the Nextel Incentive Equity Plan, as discussed above. The fair value of each nonvested share award is
calculated using the share price at the date of grant. A summary of the status of nonvested share awards as of
December 31, 2006 and changes during the year ended December 31, 2006 is presented below.
Nonvested Shares
Weighted Average
Grant Date Fair
Value
(In thousands)
Nonvested shares at January 1, 2006 ............................. 1,804 $19.86
Vested . . ............................................... (1,338) 17.24
Forfeited ............................................... (3) 11.61
Adjustment pursuant to spin-off
(1)
............................. 88 —
Nonvested shares at December 31, 2006 .......................... 551 22.98
(1) The adjustment is a result of the Embarq spin-off described in note 2, which increased the number of
deferred shares. The incremental expense resulting from the modification of deferred shares was not
material.
As of December 31, 2006, there was $4 million of total unrecognized compensation cost related to nonvested
shares that is expected to be recognized over a weighted-average period of 1.17 years. The total fair value of
shares vested was $29 million for 2006, $59 million for 2005 and $14 million for 2004.
Note 5. Supplemental Balance Sheet Information
2006 2005
December 31,
(in millions)
Accounts receivable, net
Trade ........................................................... $ 4,374 $ 3,950
Unbilled trade ..................................................... 629 466
Other ........................................................... 13 69
Less allowance for doubtful accounts .................................... (421) (319)
$ 4,595 $ 4,166
F-28
SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)