Comcast 2007 Annual Report Download - page 64

The table below summarizes information for stock option exercises:
(in millions) 2007 2006 2005
Intrinsic value of options exercised $ 171 $ 180 $ 59
Tax benefit of options exercised $58 $62 $19
Cash received from options exercised under all share-based pay-
ment arrangements for the year ended December 31, 2007 was
$357 million.
The option information above does not include 11.4 million options
outstanding, with a weighted average exercise price of $32.47 per
share, for the year ended December 31, 2007. These options were
issued under a stock option liquidity program in 2005 and will
expire over the next five years.
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, 2007,
approximately 2.0 million shares of Class A Special common stock
were issuable under exercised options, the receipt of which was
irrevocably deferred by the optionees under our deferred stock
option plan.
Restricted Stock Plan
We maintain a restricted stock plan under which certain employ-
ees and directors (“Participants”) may be granted RSU awards in
Class A or Class A Special common stock (the “Restricted Stock
Plan”). Under our Restricted Stock Plan, approximately 38 million
shares of our Class A and Class A Special common stock are
reserved for issuance under the plan, including those outstanding
as of December 31, 2007. Awards of RSUs, valued by reference
to the closing price on the date of grant of shares of common
stock, entitle 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 or dividend rights.
The table below summarizes the weighted-average fair value at the
date of grant of the RSUs:
2007 2006 2005
Weighted-average fair value $ 25.65 $ 19.98 $ 22.13
The following table summarizes the activity of the Restricted Stock
Plan for the year ended December 31, 2007:
Number of Nonvested
Restricted Share Unit
Awards (in thousands)
Weighted-
Average Grant
Date Fair Value
Class A Common Stock
Nonvestedawardsasof
January 1, 2007 13,484 $ 20.78
Granted 6,763 $ 25.65
Vested (2,837) $ 20.75
Forfeited (954) $ 21.43
Nonvestedawardsasof
December 31, 2007 16,456 $ 21.97
The total fair value of RSUs vested during the years ended De-
cember 31, 2007, 2006 and 2005 was $75 million, $32 million and
$28 million, respectively. As of December 31, 2007, approximately
898,000 and 111,000 shares of Class A common stock and
Class A Special common stock, respectively, were issuable under
vested RSU awards, the receipt of which was irrevocably deferred
by Participants under the Restricted Stock Plan.
Employee Stock Purchase Plan
We maintain an Employee Stock Purchase Plan that offers employ-
ees the opportunity to purchase shares of Class A common stock
at a 15% discount. We recognize the fair value of the discount
associated with shares purchased under the plan as share-based
compensation expense in accordance with SFAS No. 123R. The
employee cost associated with employee participation in the plan
was satisfied by payroll withholdings of $48 million for the year
ended December 31, 2007.
Note 12: Income Taxes
The components of our income tax (expense) benefit are pre-
sented in the table below:
Year ended December 31 (in millions) 2007 2006 2005
Current (expense) benefit
Federal $ (1,280) $ (887) $ (590)
State (273) (77) (123)
(1,553) (964) (713)
Deferred (expense) benefit
Federal (128) (301) (66)
State (119) (82) (94)
(247) (383) (160)
Income tax (expense) benefit $ (1,800) $ (1,347) $ (873)
Comcast 2007 Annual Report on Form 10-K 62