Morgan Stanley 2015 Annual Report Download - page 230

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The tax benefit related to stock-based compensation expense was $369 million, $404 million and $371 million for 2015,
2014 and 2013, respectively.
At December 31, 2015, the Company had $720 million of unrecognized compensation cost related to unvested stock-based
awards. Absent estimated or actual forfeitures or cancellations, this amount of unrecognized compensation cost will be
recognized as $448 million in 2016, $228 million in 2017 and $44 million thereafter. These amounts do not include 2015
performance year awards granted in January 2016, which will begin to be amortized in 2016 (see “2015 Performance Year
Deferred Compensation Awards” herein).
In connection with awards under its stock-based compensation plans, the Company is authorized to issue shares of its
common stock held in treasury or newly issued shares. At December 31, 2015, approximately 96 million shares were
available for future grants under these plans.
The Company generally uses treasury shares, if available, to deliver shares to employees and has an ongoing repurchase
authorization that includes repurchases in connection with awards granted under its stock-based compensation plans. Share
repurchases by the Company are subject to regulatory approval. See Note 15 for additional information on the Company’s
share repurchase program.
Restricted Stock Units.
RSUs are generally subject to vesting over time, generally one to three years from the date of grant, contingent upon
continued employment and to restrictions on sale, transfer or assignment until conversion to common stock. All or a portion
of an award may be canceled if employment is terminated before the end of the relevant vesting period, and after the relevant
vesting period in certain situations. Recipients of RSUs may have voting rights, at the Company’s discretion, and generally
receive dividend equivalents.
Vested and Unvested RSU Activity.
2015
Number of Shares
Weighted Average
Grant Date Fair
Value
(shares in millions)
RSUs at beginning of period ................................................. 121 $ 25.52
Granted .............................................................. 34 34.76
Conversions to common stock ............................................ (47) 23.57
Canceled ............................................................. (3) 28.72
RSUs at end of period(1) .................................................... 105 29.26
(1) At December 31, 2015, approximately 98 million RSUs with a weighted average grant date fair value of $29.17 were vested or expected to vest.
The weighted average grant date fair value for RSUs granted during 2014 and 2013 was $32.58 and $22.72, respectively. At
December 31, 2015, the weighted average remaining term until delivery for the Company’s outstanding RSUs was
approximately 1.1 years.
At December 31, 2015, the intrinsic value of RSUs vested or expected to vest was $3,144 million.
The total intrinsic value of RSUs converted to common stock during 2015, 2014 and 2013 was $1,646 million, $1,461
million and $939 million, respectively.
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