Sprint - Nextel 2008 Annual Report Download - page 103

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SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 outstanding consist of those units granted under the 2007 Plan (including units exchanged
in business combinations) and the 1997 Program, as discussed above. A summary of the status of the restricted
stock units as of December 31, 2009 and changes during the year ended December 31, 2009 is presented below:
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, 2009 ............................. 5,220 13,948 $18.81 $6.97
Granted .......................................... — 5,630 — $2.96
Business combination exchange ....................... — 7,397 — $3.75
Vested ........................................... (28) (13,014) $18.78 $4.57
Forfeited ......................................... (1,496) (1,329) $18.78 $7.78
Performance met ................................... — — — —
Performance not met ................................ — — — —
Outstanding December 31, 2009 .......................... 3,696 12,632 $18.82 $5.68
As of December 31, 2009, there was $28 million of total unrecognized compensation cost related to
restricted stock units that is expected to be recognized over a weighted-average period of 1.14 years. The total
fair value of restricted stock units vested during the years ended December 31, 2009, 2008 and 2007 was $53
million, $41 million and $78 million, respectively. The weighted-average grant date fair value of restricted stock
units granted during 2009 was $2.96 per unit, compared with $6.03 per unit for 2008 and $18.43 per unit for
2007.
Most restricted stock units outstanding as of December 31, 2009 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 criteria has been met.
Note 14. Shareholders’ Equity and Per Share Data
Our articles of incorporation authorize 6,620,000,000 shares of capital stock as follows:
‰6,000,000,000 shares of Series 1 voting common stock, par value $2.00 per share;
‰500,000,000 shares of Series 2 voting common stock, par value $2.00 per share;
‰100,000,000 shares of non-voting common stock, par value $0.01 per share; and
‰20,000,000 shares of preferred stock, no par value per share.
Classes of Common Stock
Series 1 Common Stock
The holders of our Series 1 common stock are entitled to one vote per share on all matters submitted for
action by the shareholders. There were about 3.0 billion shares of Series 1 common stock outstanding as of
December 31, 2009.
Series 2 Common Stock
The holders of our Series 2 common stock are entitled to 10% of one vote per share, but otherwise have
rights that are substantially identical to those of the Series 1 common stock. There were about 35 million shares
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