Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 3 Months Ended
Mar. 31, 2013
Stockholders' Equity Note [Abstract]  
Stockholders Equity [Text Block]

(5)       Stockholders' Equity

 

Shared-Based Compensation

Our Amended and Restated 1986 Stock Option Plan ("Stock Option Plan"), provides for the grant of options and restricted stock awards (collectively "award") for a maximum of 15.7 million shares of GCI Class A common stock, subject to adjustment upon the occurrence of stock dividends, stock splits, mergers, consolidations or certain other changes in corporate structure or capitalization. If an award expires or terminates, the shares subject to the award will be available for further grants of awards under the Stock Option Plan. The Compensation Committee of GCI's Board of Directors administers the Stock Option Plan. Substantially all restricted stock awards granted vest over periods of up to three years. Substantially all outstanding options vest in equal installments over a period of five years and expire ten years from the date of grant. There have been no options granted since 2010. The requisite service period of our awards is generally the same as the vesting period. Options granted pursuant to the Stock Option Plan are only exercisable if at the time of exercise the option holder is our employee, non-employee director, or a consultant or advisor working on our behalf. New shares are issued when restricted stock awards are granted or stock option agreements are exercised. We have 3.1 million shares available for grant under the Stock Option Plan at March 31, 2013.

The total fair value of options vesting during the three months ended March 31, 2013 and 2012, was $32,000 and $474,000, respectively. The total intrinsic values, determined as of the date of exercise, of options exercised in the three months ended March 31, 2013 and 2012, were $134,000 and $768,000, respectively. We received $301,000 and $1.4 million in cash from stock option exercises in the three months ended March 31, 2013 and 2012, respectively.

 

A summary of nonvested restricted stock award activity under the Stock Option Plan for the three months ended March 31, 2013, follows (share amounts in thousands):

          Weighted  
          Average  
          Grant Date  
    Shares   Fair Value  
  Nonvested at January 1, 2013 1,127 $ 9.59  
    Granted 621 $ 8.17  
    Vested (48) $ 5.81  
    Forfeited (1) $ 9.84  
  Nonvested at March 31, 2013 1,699 $ 9.16  

The following is a summary of our share-based compensation expense for the three months ended March 31, 2013 and 2012 (amounts in thousands):

      2013   2012  
  Share-based compensation expense $ 1,325   1,900  
  Adjustment to fair value of liability classified awards   (66)   (170)  
  Total share-based compensation expense $ 1,259   1,730  

Share-based compensation expense is classified as Selling, General and Administrative Expense in our Consolidated Income Statements. Unrecognized share-based compensation expense was $10.1 million relating to 1.7 million unvested restricted stock awards and $84,000 relating to 32,000 unvested stock options as of March 31, 2013. We expect to recognize share-based compensation expense over a weighted average period of 1.1 years for stock options and 2.3 years for restricted stock awards.