DIRECTV 2011 Annual Report Download - page 115

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
rights or options to acquire up to 21 million shares of common stock under the The total fair value of restricted stock units vested and distributed was
LEI Plan. Equity instruments from the LEI Plan that are forfeited, expire or are $125 million during the year ended December 31, 2011, $81 million during the
canceled without the delivery of shares of common stock or otherwise result in the year ended December 31, 2010 and $52 million during the year ended
return of such shares to us will be authorized for grant subject to the approval of December 31, 2009.
the Compensation Committee of our Board of Directors.
Stock Options
Under both the DIRECTV Plan and the LEI Plan, we issue new shares of our
Class A common stock when restricted stock units are distributed and when stock The Compensation Committee has also granted stock options to acquire our
options are exercised. Class A 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
Restricted Stock Units fair market value of the common stock on the date the options were granted. These
nonqualified options generally vest over one to five years, expire seven to ten years
The Compensation Committee has granted restricted stock units under our from date of grant and are subject to earlier termination under certain conditions.
stock plans to certain of our employees and executives. Annual awards are mostly
performance based, vest over three years and provide for final payments in shares of Changes in the status of outstanding options were as follows:
our Class A common stock. Final payment can be reduced or increased from the Weighted-
target award amounts based on our performance over a three-year performance Weighted- Average
period in comparison with pre-established targets. We determine the fair value of Shares Average Remaining Aggregate
Under Exercise Contractual Intrinsic
restricted stock units based on the closing stock price of our Class A common Option Price Term Value
shares on the date of grant. (in millions)
Outstanding at January 1, 2011 .... 4,552,677 $23.41
Changes in the status of outstanding restricted stock units were as follows:
Exercised ................... (1,156,494) 23.26
Weighted-Average Forfeited or expired ............ (31,673) 45.48
Grant-Date
Stock Units Fair Value Outstanding at December 31, 2011 . . 3,364,510 $23.21 6.4 $66
Nonvested at January 1, 2011 ............... 8,217,559 $25.74 Vested and expected to vest at
Granted ............................. 2,387,908 41.14 December 31, 2011 ........... 3,364,510 $23.21 6.4 $66
Vested and distributed .................... (2,723,303) 23.40 Exercisable at December 31, 2011 . . . 3,027,477 $22.04 6.2 $63
Forfeited ............................. (286,272) 33.05
Nonvested at December 31, 2011 ............ 7,595,892 $31.35 The total intrinsic value of options exercised was $24 million during the year
ended December 31, 2011, $221 million during the year ended December 31,
Vested and expected to vest at December 31, 2011 . 7,374,625 $31.35
2010 and $144 million during the year ended December 31, 2009, based on the
intrinsic value of individual awards on the date of exercise.
The weighted average grant-date fair value of restricted stock units granted
during the year ended December 31, 2010 was $30.83. The weighted average The following table presents the estimated weighted average fair value as of
grant-date fair value of restricted stock units granted during the year ended November 19, 2009 of the 16.7 million stock options and stock appreciation rights
December 31, 2009 was $21.57. assumed under the LEI Plan as part of the Liberty Transaction using the
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