Comcast 2008 Annual Report Download - page 66

Restricted Stock Plan
We maintain a restricted stock plan under which certain employ-
ees and directors (“participants”) may be granted RSU awards in
units of Class A or Class A Special common stock. Under the
restricted stock plan, a combined total of approximately 50 million
shares of our Class A and Class A Special common stock are
reserved for issuance, including those outstanding as of
December 31, 2008. RSUs, which are valued based on the closing
price on the date of grant and discounted for the lack of dividends,
if any, during the vesting period, entitle participants to receive, at
the time of vesting, one share of common stock for each RSU.
The awards vest annually, generally over a period not to exceed 5
years, 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.
2008 2007 2006
Weighted-average fair value $ 18.06 $ 25.65 $ 19.98
2008 Restricted Stock Plan Activity
Nonvested
Restricted
Share Unit
Awards
(in thousands)
Weighted-
Average Grant
Date Fair Value
Class A Common Stock
Nonvestedawardsasof
January 1, 2008 16,456 $ 21.97
Granted 8,652 $ 18.06
Vested (3,342) $ 21.64
Forfeited (1,430) $ 20.87
Nonvestedawardsasof
December 31, 2008 20,336 $ 19.64
The table below summarizes information on vested RSUs.
Year ended December 31 (in millions) 2008 2007 2006
Fair value of RSUs vested $65 $75 $32
Tax benefit of RSUs vested $23 $24 $ 9
The restricted stock plan also provides certain employees and
directors the opportunity to defer the receipt of shares of Class A
or Class A Special common stock that would otherwise be
deliverable when their RSUs vest. As of December 31, 2008,
approximately 941,000 and 89,000 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.
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 participation in the plan was sat-
isfied with payroll withholdings of approximately $50 million, $48
million and $35 million in 2008, 2007 and 2006, respectively.
Note 13: Income Taxes
Components of Income Tax (Expense) Benefit
Year ended December 31 (in millions) 2008 2007 2006
Current (expense) benefit
Federal $ (751) $ (1,280) $ (887)
State (287) (273) (77)
(1,038) (1,553) (964)
Deferred (expense) benefit
Federal (547) (128) (301)
State 52 (119) (82)
(495) (247) (383)
Income tax (expense) benefit $ (1,533) $ (1,800) $ (1,347)
Our income tax expense differs from the federal statutory amount
because of the effect of the items detailed in the table below.
Year ended December 31 (in millions) 2008 2007 2006
Federal tax at statutory rate $ (1,420) $ (1,522) $ (1,258)
State income taxes, net of
federal benefit (45) (153) (132)
Nondeductible losses from
joint ventures and equity in
net (losses) income of
affiliates, net 1318
Adjustments to uncertain
and effectively settled tax
positions (34) (35) 93
Accrued interest on
uncertain and effectively
settled tax positions (65) (110) 64
Other 30 17 (132)
Income tax expense $ (1,533) $ (1,800) $ (1,347)
Comcast 2008 Annual Report on Form 10-K 64