Sprint - Nextel 2011 Annual Report Download - page 100

Table of Contents
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 and the 1997 Program, as discussed above. A summary of the status of the restricted stock units as of December 31, 2011 and changes during
the year ended December 31, 2011 is presented below:
The total fair value of restricted stock units vested during the years ended December 31, 2011, 2010 and 2009 was $15 million, $40 million, and $53 million,
respectively. The weighted-average grant date fair value of restricted stock units granted during 2011 was $4.25 per unit, compared with $3.48 per unit for 2010 and $2.96
per unit for 2009.
Certain restricted stock units outstanding as of December 31, 2011 are entitled to dividend equivalents paid in cash, if dividends are declared and paid on
common shares, but performance-based restricted stock units are not entitled to dividend equivalent payments until the applicable performance and service criteria have
been met.
Our articles of incorporation authorize 6,620,000,000 shares of capital stock as follows:
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, 2011.
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. 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 an $80 million and $785 million reduction to common shares and paid-in capital, respectively, and a corresponding $865 million reduction in treasury shares.
In 2011, the remaining 35 million Series 2 shares were converted to 35 million Series 1 shares, resulting in a $38 million and $168 million reduction in common shares
and paid-in capital, respectively, and a corresponding $206 million reduction in treasury shares. As a result, there were no shares of Series 2 common stock outstanding as
of December 31, 2011.
F-33
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 millions)
Outstanding at January 1, 2011 2 5 $ 3.45 $ 7.03
Granted 4
—
$4.21 $
—
Vested
—
(3) $
—
$6.10
Forfeited
—
—
$
—
$
—
Outstanding at December 31, 2011 6 2 $3.95 $8.52
Note 14. Shareholders' Equit
y
and Per Share Data
• 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.