Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

Share-based Compensation

The Company accounts for share-based awards exchanged for employee services in accordance with the authoritative guidance for share-based payments. Under the guidance, share-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense, net of estimated forfeitures, over the employee's requisite service period.

Total share-based compensation expense related to all of the Company's share-based awards for the three and six months ended June 30, 2011 and 2010 was allocated in the condensed consolidated statements of operations as follows (in thousands, except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Cost of service	$	707	$	866	$	1,203	$	1,463
Selling and marketing expense	261		1,831		308		2,937
General and administrative expense	5,978		8,019		9,014		13,481
Share-based compensation expense	$	6,946	$	10,716	$	10,525	$	17,881
Share-based compensation expense per share:
Basic	$	0.09	$	0.14	$	0.14	$	0.24
Diluted	$	0.09	$	0.14	$	0.14	$	0.24

On July 28, 2011, at the Company's 2011 Annual Meeting of Stockholders (the "Annual Meeting"), the Company's stockholders approved a stock option exchange program, pursuant to which the Company would exchange eligible outstanding stock options granted under the Company's 2004 Stock Option, Restricted Stock and Deferred Stock Unit Plan (the “2004 Stock Plan”) and the Company's 2009 Employment Inducement Equity Incentive Plan for a lesser number of replacement options to be granted under the 2004 Stock Plan, with an exercise price equal to the closing price of Leap common stock on the date of the replacement grant. The exchange ratios that would determine how many replacement options are granted would be determined on a grant-by-grant basis and are intended to result in the fair value, for accounting purposes, of the replacement options being approximately 50% of the fair value of the surrendered options using the Black-Scholes stock option pricing model. The exchange program would be open only to eligible employees of Cricket. Executive officers and members of the Company's board of directors would not be permitted to participate in the exchange.