DIRECTV 2008 Annual Report Download - page 109

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
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.
Treasury yield curve in effect at the time of grant. The expected option life is based on historical
exercise behavior and other factors.
2007
Estimated fair value per option granted .................................. $ 8.27
Average exercise price per option granted ................................ 22.43
Expected stock volatility ............................................. 22.5%
Risk-free interest rate ............................................... 4.65%
Expected option life (in years) ........................................ 7.0
There were no stock options granted during the years ended December 31, 2008 and 2006.
The following table presents amounts recorded related to share-based compensation:
For the Years Ended
December 31,
2008 2007 2006
(Dollars in Millions)
Share-based compensation expense recognized .......................... $ 51 $ 49 $ 39
Tax benefits associated with share-based compensation expense .............. 19 19 15
Actual tax benefits realized for the deduction of share-based compensation
expense .................................................... 43 36 50
Proceeds received from stock options exercised ......................... 105 118 257
As of December 31, 2008, there was $70 million of total unrecognized compensation expense
related to unvested restricted stock units and stock options that we expect to recognize as follows:
$45 million in 2009 and $25 million in 2010.
Note 15: Other Income and Expenses
The following table summarizes the components of ‘‘Other, net’’ in our Consolidated Statements of
Operations for the years ended December 31:
2008 2007 2006
(Dollars in
Millions)
Equity in earnings from unconsolidated affiliates .......................... $55 $35 $27
Net gain (loss) from sale of investments ................................. 1 (6) 14
Other .......................................................... (1) (3) 1
Total other, net ............................................... $55 $26 $42
See Note 6 regarding equity method investments and net gains and losses recorded on the sale of
investments.
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