Sprint - Nextel 2010 Annual Report Download - page 125

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Information regarding stock options outstanding and exercisable as of December 31, 2010 is as follows:
Exercise Prices
$2.25 — $3.00
$3.03
$3.53 — $5.45
$6.00
$6.07 — $7.66
$7.87 — $15.00
$16.02
$17.11
$18.00 — $20.16
$23.30 — 25.33
Total
Options Outstanding
Number of
Options
454,701
2,902,000
562,625
2,029,238
1,940,656
2,241,589
138,625
1,768,442
1,667,621
2,737,744
16,443,241
Weighted
Average
Contractual
Life
Remaining
(Years)
1.25
8.16
6.61
3.94
8.64
5.16
2.60
3.55
4.50
5.54
5.69
Weighted
Average
Exercise
Price
$ 2.86
3.03
4.34
6.00
7.13
11.78
16.02
17.11
18.09
24.25
$ 11.80
Options Exercisable
Number of
Options
454,701
952,000
237,875
2,029,238
410,625
1,338,283
125,875
1,346,218
1,663,871
2,516,086
11,074,772
Weighted
Average
Exercise
Price
$ 2.86
3.03
4.31
6.00
7.24
13.26
16.02
17.11
18.08
24.27
$ 13.93
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, 2010, 2009 and 2008:
Expected volatility
Expected dividend yield
Expected life (in years)
Risk-free interest rate
Weighted average fair value per option at grant date
Year Ended December 31,
2010
58.80%-62.22%
—
6.25
2.00%-3.15%
$ 4.27
2009
63.35%-67.65%
—
4/6/1975
1.36% - 2.98%
$ 2.63
2008
66.52%
—
4.75
1.93%
$ 2.24
The fair value of option grants in 2010 and 2009 was $4.3 million and $18.6 million, respectively. 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, 2010, 2009 and 2008 was $9.8 million, $5.8 million and $815,000,
respectively. The total unrecognized share-based compensation costs related to non-vested stock options outstanding at
December 31, 2010 was approximately $5.8 million and is expected to be recognized over a weighted average period of
approximately 1.3 years.
For the years ended December 31, 2010, 2009 and 2008, we used a forfeiture rate of 10.09%, 12.66% and 12.66%
respectively, in determining compensation expense for options.
Table of Contents CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-68