DIRECTV 2006 Annual Report Download - page 109

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
The reconciliation of the amounts used in the basic and diluted EPS computation was as follows:
Per Share
Income Shares Amounts
(Dollars and Shares in Millions,
Except Per Share Amounts)
Year Ended December 31, 2006:
Basic EPS
Income from continuing operations ........................ $1,420.1 1,261.5 $ 1.13
Effect of Dilutive Securities
Dilutive effect of stock options and restricted stock units ........ — 8.4 (0.01)
Diluted EPS
Adjusted income from continuing operations ................. $1,420.1 1,269.9 $ 1.12
Year Ended December 31, 2005:
Basic EPS
Income from continuing operations ........................ $ 304.6 1,388.4 $ 0.22
Effect of Dilutive Securities
Dilutive effect of stock options and restricted stock units ........ — 6.4 —
Diluted EPS
Adjusted income from continuing operations ................. $ 304.6 1,394.8 $ 0.22
There was no dilutive effect of stock options and restricted stock units for the year ended
December 31, 2004 due to the loss we incurred for that year.
Note 14: Share-Based Payment
Under The DIRECTV Group, Inc. 2004 Stock Plan as approved by our stockholders on June 2,
2004, shares, rights or options to acquire up to 21 million shares of common stock plus any awards
cancelled, forfeited or expired from a former plan, on a cumulative basis were authorized for grant
through March 16, 2014, subject to the approval of the Compensation Committee of our Board of
Directors. We issue new shares of our common stock when restricted stock units are earned and when
stock options are exercised.
Restricted Stock Units
The Compensation Committee has granted restricted stock units under our stock plans to certain
of our employees and executives. Annual awards are mostly performance-based, with final payments in
shares of our common stock. Final payment can be reduced from the target award amounts based on
our company’s performance over a three or four year performance period in comparison with
pre-established targets.
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