DIRECTV 2007 Annual Report Download - page 102

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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, 2007:
Basic EPS
Income from continuing operations ......................... $1,434 1,195 $ 1.20
Effect of Dilutive Securities
Dilutive effect of stock options and restricted stock units .......... — 7 —
Diluted EPS
Adjusted income from continuing operations ................... $1,434 1,202 $ 1.20
Year Ended December 31, 2006:
Basic EPS
Income from continuing operations ......................... $1,420 1,262 $ 1.13
Effect of Dilutive Securities
Dilutive effect of stock options and restricted stock units .......... — 8 (0.01)
Diluted EPS
Adjusted income from continuing operations ................... $1,420 1,270 $ 1.12
Year Ended December 31, 2005:
Basic EPS
Income from continuing operations ......................... $ 305 1,388 $ 0.22
Effect of Dilutive Securities
Dilutive effect of stock options and restricted stock units .......... — 7 —
Diluted EPS
Adjusted income from continuing operations ................... $ 305 1,395 $ 0.22
Note 13: Share-Based Payment
Under The DIRECTV Group, Inc. Amended and Restated 2004 Stock Plan as approved by our
stockholders on June 5, 2007, shares, rights or options to acquire up to 21 million shares of common
stock plus the number of shares that were granted under a former plan but which, after December 22,
2003 are forfeited, expire or are cancelled without the delivery of shares of common stock or otherwise
result in the return of such shares to us, were authorized for grant through June 4, 2017, 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. We determine the fair value of restricted stock units based on the closing stock
price of our common shares on the date of grant.
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