Stock Compensation Plans (Notes)

6 Months Ended

Jun. 30, 2017

Stock Compensation Plans [Abstract]

Stock Compensation Plans

Stock Compensation Plans

Charter’s 2009 Stock Incentive Plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock.  Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the 2009 Stock Incentive Plan.

Charter granted the following equity awards for the periods presented after applying the parent company merger ratio as a result of the Transactions, as applicable.

	Three Months Ended June 30,		Six Months Ended June 30,
	2017	2016	2017	2016
Stock options	42,600	4,800,200	1,145,200	5,679,700
Restricted stock	9,500	10,000	9,500	10,000
Restricted stock units	9,500	597,300	277,700	845,600

Legacy Charter stock options and restricted stock units cliff vest upon the three year anniversary of each grant. Certain stock options and restricted stock units vest based on achievement of stock price hurdles. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Restricted stock generally vests one year from the date of grant. Legacy TWC restricted stock units that were converted into Charter restricted stock units generally vest 50% on each of the third and fourth anniversary of the grant date. Legacy TWC stock options that were converted into Charter stock options vest ratably over a four-year period and expire ten years from the grant date.

As of June 30, 2017, total unrecognized compensation remaining to be recognized in future periods totaled $273 million for stock options, $3 million for restricted stock and $247 million for restricted stock units and the weighted average period over which they are expected to be recognized is three years for stock options, one year for restricted stock and two years for restricted stock units.

The Company recorded $65 million and $134 million of stock compensation expense for the three and six months ended June 30, 2017, respectively and $63 million and $87 million for the three and six months ended June 30, 2016, respectively, which is included in operating costs and expenses. The Company also recorded $20 million and $37 million of expense for the three and six months ended June 30, 2017, respectively, and $145 million for each of the three and six months ended June 30, 2016 related to accelerated vesting of equity awards of terminated employees which is recorded in merger and restructuring costs.