DIRECTV 2007 Annual Report Download - page 103

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Changes in the status of outstanding restricted stock units were as follows:
Weighted-Average
Grant-Date
Stock Units Fair Value
Nonvested at January 1, 2007 ................................. 8,640,154 $15.89
Granted ................................................ 2,954,600 23.69
Vested and Distributed ..................................... (1,872,761) 17.45
Forfeited ................................................ (305,497) 17.06
Nonvested at December 31, 2007 .............................. 9,416,496 17.99
The weighted average grant-date fair value of restricted stock units granted during the year ended
December 31, 2006 was $13.57. The weighted average grant-date fair value of restricted stock units
granted during the year ended December 31, 2005 was $16.61.
The total fair value of restricted stock units vested and distributed was $33 million during the year
ended December 31, 2007, $21 million during the year ended December 31, 2006 and $26 million
during the year ended December 31, 2005.
Stock Options
The Compensation Committee has also granted stock options to acquire our common stock under
our stock plans to certain of our employees and executives. The exercise price of options granted is
equal to at least 100% of the fair market value of the common stock on the date the options were
granted. These nonqualified options generally vested over one to five years, expire ten years from date
of grant and are subject to earlier termination under certain conditions.
Changes in the status of outstanding options were as follows:
Weighted-Average
Shares Under Weighted-Average Remaining Aggregate
Option Exercise Price Contractual Term Intrinsic Value
(in millions)
Outstanding at January 1, 2007 ........ 55,926,438 $27.59
Granted ......................... 1,209,400 22.43
Exercised ........................ (6,711,974) 17.53
Forfeited or expired ................ (1,789,325) 32.03
Outstanding at December 31, 2007 ..... 48,634,539 28.69 3.0 $59
Exercisable at December 31, 2007 ...... 47,425,139 28.85 2.8 $58
The total intrinsic value of options exercised was $59 million during the year ended December 31,
2007, $115 million during the year ended December 31, 2006 and $18 million during the year ended
December 31, 2005, based on the intrinsic value of individual awards on the date of exercise.
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. Expected stock volatility is based primarily on the historical volatility of our common
stock. The risk-free rate for periods within the contractual life of the option is based on the U.S.
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