Comcast 2006 Annual Report Download - page 60

Notes to Consolidated Financial Statements Comcast 2006 Annual Report 58
special or related rights as our Board of Directors shall from time to
time fix by resolution.
Common Stock
Our Class A Special common stock is generally nonvoting. Hold-
ers of our Class A common stock in the aggregate hold 66
2⁄3% of
the aggregate voting power of our common stock. The number of
votes that each share of our Class A common stock will have at any
given time will depend on the number of shares of Class A common
stock and Class B common stock then outstanding. Each share of
our Class B common stock is entitled to 15 votes, and all shares
of our Class B common stock in the aggregate have 33
1⁄3% of the
voting power of all of our common stock. The 33
1⁄3% aggregate
voting power of our Class B common stock will not be diluted by
additional issuances of any other class of our common stock. Our
Class B common stock is convertible, share for share, into Class A
or Class A Special common stock, subject to certain restrictions.
Board-Authorized Share Repurchase Program
During 2006, 2005 and 2004, we repurchased approximately
113 million, 119 million and 70 million shares, respectively (adjusted
to reflect the Stock Split), of our Class A Special common stock
for aggregate consideration of $2.347 billion, $2.290 billion and
$1.328 billion, respectively, pursuant to our Board-authorized share
repurchase program.
The maximum dollar value of shares remaining that may be
repurchased under the program is approximately $3 billion as of
December 31, 2006. We expect repurchases to continue from time
to time in the open market or in private transactions, subject to
market conditions.
Comcast Option Plans
We maintain stock option plans for certain employees under which
fixed-price stock options may be granted and the option price is
generally not less than the fair value of a share of the underlying
stock at the date of grant. Under our stock option plans, approxi-
mately 236 million shares (adjusted to reflect the Stock Split) of our
Class A and Class A Special common stock are reserved for issu-
ance upon the exercise of options, including those outstanding as
of December 31, 2006. Option terms are generally 10 years, with
options generally becoming exercisable between two and nine and
one half years from the date of grant.
The fair value of each stock option is estimated on the date of
grant using the Black-Scholes option pricing model that uses the
assumptions summarized in the following table. Expected volatility
is based on a blend of implied and historical volatility of our Class
A common stock. We use historical data on exercises of stock
options and other factors to estimate the expected term of the
options granted. The risk-free rate is based on the U.S. Treasury
yield curve in effect at the date of grant.
The following table summarizes the weighted-average fair values
at date of grant (adjusted to reflect the Stock Split) of a Class A
common stock option granted under our stock option plans and
the related weighted-average valuation assumptions:
2006 2005 2004
Fair value $ 7.30 $ 8.67 $ 7.63
Dividend yield 0% 0% 0%
Expected volatility 26.9% 27.1% 28.6%
Risk-free interest rate 4.8% 4.3% 3.5%
Expected option life (in years) 7.0 7.0 7.0
The following table summarizes our share activity for the periods presented (adjusted to reflect the Stock Split):
Common Stock Class A Class A Special Class B
Balance, January 1, 2004 2,036,280,835 1,331,386,738 9,444,375
Stock compensation plans 1,537,284 8,153,658 —
Employee Stock Purchase Plan 1,702,427 — —
Repurchases of common stock — (70,401,353) —
Balance, December 31, 2004 2,039,520,546 1,269,139,043 9,444,375
Stock compensation plans 3,586,731 2,975,453 —
Employee Stock Purchase Plan 1,943,700 — —
Repurchases of common stock — (118,680,437) —
Balance, December 31, 2005 2,045,050,977 1,153,434,059 9,444,375
Stock compensation plans 13,140,825 9,362,105 —
Employee Stock Purchase Plan 2,166,158 — —
Repurchases of common stock — (113,071,157) —
Balance, December 31, 2006 2,060,357,960 1,049,725,007 9,444,375