DIRECTV 2006 Annual Report Download - page 111

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
The following table summarizes information about stock options outstanding at December 31,
2006:
Weighted-
Average Weighted-
Options Remaining Average
Range of Outstanding and Contractual Exercise
Exercise Prices Exercisable Life (years) Price
$10.39 to $16.99 5,774,456 2.9 $14.63
17.00 to 24.99 15,134,255 4.2 20.07
25.00 to 32.99 15,349,704 4.0 27.74
33.00 to 41.06 19,668,023 3.3 37.06
55,926,438 3.7 27.59
At December 31, 2005, there were 78.7 million options outstanding and exercisable at a weighted
average exercise price of $24.52, and at December 31, 2004, there were 88.9 million options exercisable
at a weighted average exercise price of $23.42.
The following table presents the estimated weighted average fair value for stock options granted
under the Plan using the Black-Scholes valuation model along with the assumptions used in the fair
value calculations:
2004
Estimated fair value per option granted .................................. $ 5.82
Average exercise price per option granted ................................ 18.80
Expected stock volatility ............................................. 30.0%
Risk-free interest rate ............................................... 3.7%
Expected option life (in years) ........................................ 5.6
The following table presents amounts recorded related to share-based compensation:
For the year ended
December 31,
2006 2005 2004
(Dollars in Millions)
Share-based compensation expense recognized ........................ $ 39.4 $40.6 $57.1
Tax benefits associated with share-based compensation expense ............ 14.6 15.6 21.9
Actual tax benefits realized for the deduction of share-based compensation
expense .................................................. 50.0 16.7 5.4
Proceeds received from stock options exercised ....................... 257.1 45.2 23.0
The 2005 and 2004 stock compensation costs include the cost of options granted to our CEO to
replace stock options that News Corporation, his former employer, cancelled, and the cost associated
with former employees of News Corporation who retained their News Corporation stock options and
are now employed by us.
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