Comcast 2006 Annual Report Download - page 61

59 Comcast 2006 Annual Report Notes to Consolidated Financial Statements
We also maintain a deferred stock option plan for certain employ-
ees and directors that provided the optionees with the opportunity
to defer the receipt of shares of our Class A or Class A Special
common stock that would otherwise be deliverable upon exercise
by the optionees of their stock options. As of December 31, 2006,
approximately 2.0 million shares (adjusted to reflect the Stock Split)
of Class A Special common stock were issuable under exercised
options, the receipt of which was irrevocably deferred by the optio-
nees pursuant to our deferred stock option plan.
Stock Option Liquidity Program
During 2004, we repurchased 16.6 million options (adjusted to
reflect the Stock Split) from various nonemployee holders of stock
options under a stock option liquidity program, targeted primarily
to employees of a previously acquired company. The former option
holders received $37 million for their options under the program.
A financial counterparty we engaged in connection with the stock
option liquidity program funded the cost of the program through the
simultaneous purchase by the counterparty of new stock options
from us that had similar economic terms as the options being pur-
chased by us from the option holders. As of December 31, 2006,
13.9 million options remain outstanding, with a weighted-average
exercise price of $30.89 per share (adjusted to reflect the Stock
Split), and these options will expire over the course of the next
six years.
Restricted Stock Plan
We maintain a restricted stock plan under which certain employ-
ees and directors (“Participants”) may be granted restricted share
unit awards in our Class A or Class A Special common stock
(the “Restricted Stock Plan”). Under our Restricted Stock Plan,
approximately 40 million shares (adjusted to reflect the Stock Split)
of our Class A and Class A Special common stock are reserved
for issuance pursuant to awards under the plan, including those
outstanding as of December 31, 2006. Awards of restricted share
units are valued by reference to shares of common stock that enti-
tle Participants to receive, upon the settlement of the unit, one
share of common stock for each unit. The awards vest annually,
generally over a period not to exceed five years from the date of the
award, and do not have voting rights.
The following table summarizes the weighted-average fair value at
date of grant (adjusted to reflect the Stock Split) and the compen-
sation expense recognized related to restricted share unit awards:
2006 2005 2004
Weighted-average fair value $ 19.98 $ 22.13 $ 20.73
Compensation expense
recognized (in millions) $ 62 $ 57 $ 33
The following table summarizes the activity of our stock option plans for the year ended December 31, 2006 (adjusted to reflect the
Stock Split):
Weighted-Average
Remaining Aggregate
Options Weighted-Average Contractual Term Intrinsic Value
(in thousands) Exercise Price (in years) (in millions)
Class A Common Stock
Outstanding as of January 1, 2006 121,240 $ 24.73
Granted 18,594 $ 18.12
Exercised (12,222) $ 19.18
Forfeited (4,113) $ 19.76
Expired (1,722) $ 26.10
Outstanding as of December 31, 2006 121,777 $ 24.43 5.5 $ 812.3
Exercisable as of December 31, 2006 67,297 $ 28.33 3.6 $ 343.1
Class A Special Common Stock
Outstanding as of January 1, 2006 76,948 $ 20.90
Exercised (10,545) $ 15.31
Forfeited (95) $ 21.75
Expired (1,707) $ 23.96
Outstanding as of December 31, 2006 64,601 $ 21.75 3.5 $ 410.6
Exercisable as of December 31, 2006 57,081 $ 21.95 3.4 $ 353.1