Sprint - Nextel 2008 Annual Report Download - page 143

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CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The intrinsic value of options exercised during the years ended December 31, 2009 and 2008 was
$2.3 million and $15,000, respectively.
Information regarding stock options outstanding and exercisable as of December 31, 2009 is as follows:
Options Outstanding Options Exercisable
Exercise Prices
Number of
Options
Weighted
Average
Contractual
Life
Remaining
(Years)
Weighted
Average
Exercise
Price
Number of
Options
Weighted
Average
Exercise
Price
$2.25 — $3.00 ............................. 1,421,199 4.01 $ 2.89 1,421,199 $ 2.89
$3.03 ................................. 3,700,000 9.19 3.03 — —
$3.53 — $5.45 ............................. 1,296,750 5.78 4.16 107,500 4.10
$6.00 ................................. 3,466,399 4.43 6.00 3,466,399 6.00
$6.07 — $11.03 ............................ 2,856,699 8.12 8.63 279,092 10.97
$11.15 — $16.02 ........................... 1,380,101 5.46 14.62 1,069,318 14.85
$17.11 ................................ 2,177,899 4.72 17.11 1,233,065 17.11
$18.00 — $23.30 ........................... 3,386,451 6.60 20.35 2,884,805 20.07
$23.52 — $25.01 ........................... 1,847,233 6.33 24.99 1,602,581 24.99
$25.33 .................................... 5,000 7.54 25.33 2,500 25.33
Total ............................. 21,537,731 6.39 $11.09 12,066,459 $13.54
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing
model using the following assumptions for the years ended December 31, 2009 and 2008:
Year Ended December 31,
2009 2008
Expected volatility ........................................... 63.35%-67.65% 66.52%
Expected dividend yield ....................................... — —
Expected life (in years) ....................................... 4.75 - 6.25 4.75
Risk-free interest rate ......................................... 1.36% - 2.98% 1.93%
Weighted average fair value per option at grant date ................ $2.63 $ 2.24
The fair value of option grants in 2009 was $18.6 million. In addition to options issued in exchange as part
of the Transactions, the fair value of option grants during 2008 was $954,000. The total fair value of options
vested during the years ended December 31, 2009 and 2008 was $5.8 million and $815,000, respectively. The
total unrecognized share-based compensation costs related to non-vested stock options outstanding at
December 31, 2009 was approximately $11.5 million and is expected to be recognized over a weighted average
period of approximately 1.7 years.
For the years ended December 31, 2009 and 2008, our forfeiture rate used in the calculation of stock option
expense is 12.66%.
Restricted Stock Units
In connection with the Transactions, all Old Clearwire restricted stock units, which we refer to as RSUs,
issued and outstanding at the Closing were exchanged on a one-for-one basis for RSUs with equivalent terms.
Following the Closing, we granted RSUs to certain officers and employees under the 2008 Plan. All RSUs vest
over a four-year period. The fair value of our RSUs is based on the grant-date fair market value of the common
stock, which equals the grant date market price.
F-77