Sprint - Nextel 2010 Annual Report Download - page 126

Share-based compensation expense recognized for all plans for the years ended December 31, 2010, 2009 and 2008 is as
follows (in thousands):
Options
RSUs
Sprint Equity Compensation Plans
Year Ended December 31.
2010
$ 16,749
30,582
204
$ 47,535
2009
$ 6,386
20,091
1,035
$ 27,512
2009
$ 2,371
1,292
2,802
$ 6,465
During the years ended December 31, 2010, 2009 and 2008, we recorded $10.9 million, $2.4 million and $0, respectively,
of additional compensation expense related to the accelerated vesting of options and RSUs.
Sprint Equity Compensation Plans
In connection with the Transactions, certain of the Sprint WiMAX Business employees became employees of Clearwire
and currently hold unvested Sprint stock options and RSUs in Sprint’s equity compensation plans, which we refer to
collectively as the Sprint Plans. The underlying share for awards issued under the Sprint Plans is Sprint common stock. The
Sprint Plans allow for continued plan participation as long as the employee remains employed by a Sprint subsidiary or
affiliate. Under the Sprint Plans, options are generally granted with an exercise price equal to the market value of the
underlying shares on the grant date, generally vest over a period of up to four years and have a contractual term of ten years.
RSUs generally have both performance and service requirements with vesting periods ranging from one to three years. RSUs
granted after the second quarter 2008 included quarterly performance targets but were not granted until performance targets
were met. Therefore, at the grant date these awards only had a remaining service requirement and vesting period of six months
following the last day of the applicable quarter. Employees who were granted RSUs were not required to pay for the shares but
generally must remain employed with Sprint or a subsidiary, until the restrictions lapse, which was typically three years or less.
At December 31, 2010, there were 35,257 unvested options and 66,451 unvested RSUs outstanding.
The share-based compensation associated with these employees is incurred by Sprint on our behalf. Sprint provided us
with the fair value of the options and RSUs for each reporting period, which must be remeasured based on the fair value of the
equity instruments at each reporting period until the instruments are vested. Total unrecognized share-based compensation costs
related to unvested stock options and RSUs outstanding as of December 31, 2010 was $6,000 and $27,000, respectively, and is
expected to be recognized over approximately one year.
14. Stockholders’ Equity
Class A Common Stock
The Class A Common Stock represents the common equity of Clearwire. The holders of the Class A Common Stock are
entitled to one vote per share and, as a class, are entitled to 100% of any dividends or distributions made by Clearwire, with the
exception of certain minimal liquidation rights provided to the Class B Common Stockholders, which are described below.
Each share of Class A Common Stock participates ratably in proportion to the total number of shares of Class A Common
Stock issued by Clearwire. Holders of Class A Common Stock have 100% of the economic interest in Clearwire and are
considered the controlling interest for the purposes of financial reporting.
Upon liquidation, dissolution or winding up, the Class A Common Stock will be entitled to any assets remaining after
payment of all debts and liabilities of Clearwire, with the exception of certain minimal liquidation rights provided to the
Class B Common Stockholders, which are described below.
Table of Contents CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
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