Sprint - Nextel 2011 Annual Report Download - page 138

Table of Contents
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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 and 2009. There were no options granted in 2011:
The fair value of option grants in 2010 and 2009 was $4.3 million and $18.6 million, respectively. There were no options granted in 2011. The total fair value of
options vested during the years ended December 31, 2011, 2010 and 2009 was $6.6 million, $9.8 million and $5.8 million respectively. The total unrecognized share-
based compensation costs related to non-vested stock options outstanding at December 31, 2011 was approximately $359,000 and is expected to be recognized over a
weighted average period of less than one year.
For the years ended December 31, 2011, 2010 and 2009, we used a forfeiture rate of 10.09%, 10.09% and 12.66% respectively, in determining compensation
expense for options.
Share-based compensation expense recognized for all plans for the years ended December 31, 2011, 2010 and 2009 is as follows (in thousands):
During the years ended December 31, 2011, 2010 and 2009 we reversed $23.9 million, $9.8 million, and $3.6 million, respectively, of share-based compensation
expense related to the forfeiture of RSUs and options that had been recognized but not yet earned. During the years ended December 31, 2011, 2010 and 2009, we
recorded $3.7 million, $10.9 million, $2.4 million respectively, of additional share-based compensation expense related to the acceleration of vesting and the extension of
the exercise period for certain RSUs and options.
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.
F-71
Year Ended December 31,
2010 2009
Expected volatility 58.80%-62.22% 63.35%-67.65%
Expected dividend yield — —
Expected life (in years) 6.25 4.75-6.25
Risk-free interest rate 2.00%-3.15% 1.36% - 2.98%
Weighted average fair value per option at grant date $4.27 $2.63
Year Ended December 31.
2011 2010 2009
Options $ 1,016 $ 16,749 $ 6,386
RSUs 25,535 30,582 20,091
Sprint Equity Compensation Plans 73 204 1,035
$ 26,624 $ 47,535 $ 27,512
15. Stockholders’ Equity