DIRECTV 2009 Annual Report Download - page 126

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The following table presents amounts recorded related to share-based compensation:
For the Years Ended
December 31,
2009 2008 2007
(Dollars in Millions)
Share-based compensation expense recognized .......................... $ 55 $ 51 $ 49
Tax benefits associated with share-based compensation expense .............. 21 19 19
Actual tax benefits realized for the deduction of share-based compensation
expense .................................................... 42 43 36
Proceeds received from stock options exercised ......................... 144 105 118
As of December 31, 2009, there was $62 million of total unrecognized compensation expense
related to unvested restricted stock units that we expect to recognize as follows: $40 million in 2010
and $22 million in 2011.
During 2009, we implemented a net exercise plan pursuant to which we only issue new shares in
connection with employee option exercises equal to the intrinsic value of the exercised award on the
exercise date reduced by the amount of statutory employee withholding taxes and divided by the
current market price of the our common stock. As a result, we no longer receive cash in connection
with the exercise of stock options, but rather issue significantly fewer shares. In addition, the company
is required to pay the employee withholding taxes to taxing authorities, the cash payments for which
are reported in ‘‘Taxes paid in lieu of shares issued for share-based compensation’’ in the Consolidated
Statements of Cash Flows.
Note 16: 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:
2009 2008 2007
(Dollars in Millions)
Equity in earnings from unconsolidated affiliates .......................... $51 $55 $35
Net foreign currency transaction gain .................................. 62 — —
Loss from impairment of investments .................................. (45)
Loss on early extinguishment of debt .................................. (34) — —
Net gain (loss) from sale of investments ................................ — 1 (6)
Other ......................................................... — (1) (3)
Total other, net ................................................ $34 $55 $26
See Note 7 regarding equity method investments and net gains and losses recorded on the sale of
investments.
Note 17: Related-Party Transactions
In the ordinary course of our operations, we enter into transactions with related parties as
discussed below.
114