Sprint - Nextel 2010 Annual Report Download - page 87

Restricted Stock Units
The estimated 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, 2010 and changes during the year ended December 31, 2010 is presented below:
Outstanding January 1, 2010
Granted
Vested
Forfeited
Outstanding December 31, 2010
Restricted Stock Units
Future
Performance
and Service
Required
(in thousands)
3,696
2,193
(3,265)
(533)
2,091
Future
Service
Required
12,632
633
(7,104)
(1,340)
4,821
Weighted Average Grant
Date Fair Value of
Restricted Stock Units
Future
Performance
and Service
Required
$ 18.82
$ 3.45
$ 18.83
$ 17.30
$ 3.45
Future
Service
Required
$ 5.68
$ 3.58
$ 4.56
$ 5.77
$ 7.03
The fair value of restricted stock units vested during the years ended December 31, 2010, 2009 and 2008 was $40
million, $53 million and $41 million, respectively. The weighted-average grant date fair value of restricted stock units granted
during 2010 was $3.48 per unit, compared with $2.96 per unit for 2009 and $6.03 per unit for 2008.
Most restricted stock units outstanding as of December 31, 2010 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 13. 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, 2010.
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 of Series 2 common stock
outstanding as of December 31, 2010. In 2009, certain holders of our Series 2 common stock exercised their rights to convert
39.8 million Series 2 shares to 39.8 million Series 1 shares, resulting in a $80 million and $785 million reduction to common
shares and paid in capital, respectively, and a corresponding $865 million reduction in treasury shares.
Treasury Shares
Shares of common stock repurchased by us are recorded at cost as treasury shares and result in a reduction of
shareholders' equity. We reissue treasury shares as part of our shareholder approved stock-based compensation programs, as
well as upon conversion of outstanding securities that are convertible into common stock. When shares are reissued, we
determine the cost using the FIFO method.
Dividends
We did not declare any dividends on our common shares in 2010, 2009, or 2008. We are currently restricted from
paying cash dividends by the terms of our revolving bank credit facility as described in note 7.
Table of Contents SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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