DIRECTV 2012 Annual Report Download - page 112

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The reconciliation of the amounts used in the basic and diluted EPS Note 17: Share-Based Compensation
computation was as follows: Under the DIRECTV 2010 Stock Plan, or the DIRECTV Plan, as approved
by DIRECTV stockholders on June 3, 2010, shares, rights or options to acquire up
Per Share to 20 million shares of common stock plus the number of shares that were
Income Shares Amounts
authorized but not granted under former plans and shares granted under those
(Dollars and Shares in Millions,
Except Per Share Amounts) plans which, after June 3, 2010, are forfeited, expire or are canceled without the
Year Ended December 31, 2012: delivery of shares of common stock or otherwise result in the return of such shares
Basic EPS to us, were authorized for grant through June 2, 2020, subject to the approval of
Net income attributable to DIRECTV common stockholders . . $2,949 638 $ 4.62 the Compensation Committee of our Board of Directors. Under the DIRECTV
Effect of Dilutive Securities Plan, we issue new shares of our common stock when restricted stock units are
Dilutive effect of stock options and restricted stock units ..... — 6 (0.04)
distributed and when stock options are exercised.
Diluted EPS
Adjusted net income attributable to DIRECTV common The following table presents amounts recorded related to share-based
stockholders ............................. $2,949 644 $ 4.58 compensation:
Year Ended December 31, 2011: For the Years Ended
Basic EPS December 31,
Net income attributable to DIRECTV common stockholders . . $2,609 747 $ 3.49 2012 2011 2010
Effect of Dilutive Securities
(Dollars in Millions)
Dilutive effect of stock options and restricted stock units ..... — 5 (0.02)
Share-based compensation expense recognized .......... $109 $103 $82
Diluted EPS Tax benefits associated with share-based compensation
Adjusted net income attributable to DIRECTV common expense .................................. 41 40 31
stockholders ............................. $2,609 752 $ 3.47
Actual tax benefits realized for the deduction of share-based
Year Ended December 31, 2010: compensation expense ........................ 60 54 60
Class A common stock:
Basic EPS As of December 31, 2012, there was $107 million of total unrecognized
Net income attributable to DIRECTV Class A common compensation expense related to unvested restricted stock units and stock options
stockholders ............................. $2,014 870 $ 2.31 that we expect to recognize as follows: $66 million in 2013, $37 million in 2014
Effect of Dilutive Securities and $4 million in 2015.
Dilutive effect of stock options and restricted stock units ..... — 6 (0.01)
Diluted EPS Restricted Stock Units
Adjusted net income attributable to DIRECTV Class A
common stockholders ....................... $2,014 876 $ 2.30 The Compensation Committee has granted restricted stock units under our
stock plan to certain of our employees and executives. Annual awards are mostly
Class B common stock: performance based, generally vest over three years and provide for final payments in
Basic and diluted EPS
Net income attributable to DIRECTV Class B common shares of our common stock. Final payment can be increased or decreased from the
stockholders, including $160 million exchange inducement value target award amounts based on our performance over a three-year performance
for the Malone Transaction ...................... $ 184 22 $8.44 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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