Stock Compensation Plans (Notes)

12 Months Ended

Dec. 31, 2019

Charter’s 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 stock incentive plan. The stock incentive plan allows for the issuance of up to 16 million shares of Charter Class A common stock (or units convertible into Charter Class A common stock).

Charter Stock options and restricted stock units generally 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. TWC restricted stock units that were converted into Charter restricted stock units in 2016 generally vest 50% on each of the third and fourth anniversary of the grant date.

As of December 31, 2019, total unrecognized compensation remaining to be recognized in future periods totaled $175 million for stock options, $0.9 million for restricted stock and $205 million for restricted stock units and the weighted average period over which they are expected to be recognized is 2 years for stock options, 4 months for restricted stock and 2 years for restricted stock units. The Company recorded $315 million, $285 million and $261 million of stock compensation expense for the years ended December 31, 2019, 2018 and 2017, respectively, which is included in operating costs and expenses. The Company also recorded $5 million and $49 million of expense for the years ended December 31, 2018 and 2017, respectively, related to accelerated vesting of equity awards of terminated employees which is recorded in merger and restructuring costs in other operating expenses, net in the consolidated statements of operations.

A summary of the activity for the Company’s stock options for the years ended December 31, 2019, 2018 and 2017, is as follows (shares in thousands, except per share data):



	Year Ended December 31,
	2019								2018								2017
	Shares				Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares				Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares				Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, beginning of period	10,410				$	225.53			9,649				$	201.83			9,592				$	181.39
Granted	1,847				$	298.84			1,507				$	350.40			1,175				$	302.87
Exercised	(1,271		)		$	186.90	$	247	(577		)		$	133.35	$	114	(1,044		)		$	124.32	$	219
Canceled	(437		)		$	270.94			(169		)		$	300.46			(74		)		$	251.63
Outstanding, end of period	10,549				$	241.14	$	2,573	10,410				$	225.53			9,649				$	201.83

Weighted average remaining contractual life	7			years					7			years					8			years
Options exercisable, end of period	3,119				$	161.13	$	1,011	2,194				$	122.19			1,734				$	90.56
Options expected to vest, end of period	7,430				$	274.74	$	1,563
Weighted average fair value of options granted	$	84.39							$	94.70							$	73.67

A summary of the activity for the Company’s restricted stock for the years ended December 31, 2019, 2018 and 2017, is as follows (shares in thousands, except per share data):



	Year Ended December 31,
	2019				2018				2017
	Shares		Weighted Average Grant Price		Shares		Weighted Average Grant Price		Shares		Weighted Average Grant Price
Outstanding, beginning of period	10		$	297.86	10		$	343.10	10		$	231.81
Granted	8		$	359.33	10		$	297.86	10		$	343.10
Vested	(10	)	$	297.86	(10	)	$	343.10	(10	)	$	231.81
Canceled	—		$	—	—		$	—	—		$	—
Outstanding, end of period	8		$	359.33	10		$	297.86	10		$	343.10

A summary of the activity for the Company’s restricted stock units for the years ended December 31, 2019, 2018 and 2017, is as follows (shares in thousands, except per share data):



	Year Ended December 31,
	2019				2018				2017
	Shares		Weighted Average Grant Price		Shares		Weighted Average Grant Price		Shares		Weighted Average Grant Price
Outstanding, beginning of period	2,211		$	219.61	2,391		$	192.96	3,313		$	192.41
Granted	704		$	298.22	526		$	348.75	285		$	302.76
Vested	(729	)	$	206.88	(619	)	$	216.27	(1,159	)	$	216.21
Canceled	(127	)	$	250.85	(87	)	$	286.41	(48	)	$	234.99
Outstanding, end of period	2,059		$	249.45	2,211		$	219.61	2,391		$	192.96