Sprint - Nextel 2007 Annual Report Download - page 129

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SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of December 31, 2007, there was $150 million of total unrecognized compensation cost related to
unvested options and that cost is expected to be recognized over a weighted-average period of 1.45 years. The
total intrinsic value of options exercised was $150 million during 2007, $264 million during 2006 and
$267 million during 2005.
Restricted Stock Units
The fair value of each restricted stock unit award is calculated using the share price at the date of grant.
Restricted stock units consist of those units granted under the 2007 Plan and the 1997 Program, as discussed
above.
Restricted Stock Units
Weighted Average Grant
Date Fair Value of
Restricted Stock Units
Future
Performance
and Service
Required
Future
Service
Required
Future
Performance
and Service
Required
Future
Service
Required
(in thousands)
Outstanding January 1, 2007 ............................. — 8,761 $ — $19.14
Granted .......................................... 6,172 1,507 18.80 16.90
Vested ........................................... — (4,345) — 15.25
Forfeited ......................................... (296) (279) 18.78 24.21
Performance met(1) ................................. — — — —
Performance not met(1) .............................. — — — —
Outstanding December 31, 2007 .......................... 5,876 5,644 18.81 21.29
(1) We evaluate performance conditions for restricted stock units at the end of the performance period.
Restricted stock units granted in 2007 have a three year performance period. Therefore, as of December 31,
2007, there are no units categorized as either performance met or performance not met as the performance
period has not yet lapsed. Other adjustments to the original grants are categorized as forfeited.
As of December 31, 2007, there was $61 million of total unrecognized compensation cost related to
restricted stock units that is expected to be recognized over a weighted-average period of 2 years. The total fair
value of restricted stock units vested was $78 million during 2007, $49 million during 2006 and $4 million
during 2005. The weighted-average grant date fair value of restricted stock units granted during 2007 was
$18.43 per unit, compared with $24.04 per unit for 2006 and $24.61 per unit for 2005.
Certain restricted stock units outstanding as of December 31, 2007 are entitled to dividend equivalents paid
in cash, but performance-based restricted stock units are not entitled to dividend equivalent payments until the
applicable performance period has been completed. Dividend equivalents paid on restricted stock units are
charged to retained earnings (accumulated deficit) when paid.
Nonvested Shares
Our nonvested shares consist of restricted shares granted under the 1997 Program and deferred shares
granted under the Nextel Plan, as discussed above. The unrecognized compensation cost related to nonvested
shares is not material.
F-44