Time Warner Cable 2007 Annual Report Download - page 116

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As of December 31, 2007, the number, weighted-average exercise price, aggregate intrinsic value and
weighted-average remaining contractual term of TWC stock options vested and expected to vest approximate
amounts for options outstanding. As of December 31, 2007, 91 million shares were available for future grants of
TWC stock options. Total unrecognized compensation cost related to unvested TWC stock options as of
December 31, 2007, without taking into account expected forfeitures, is $24 million and is expected to be
recognized over a weighted-average period of three years.
The weighted-average fair value of a TWC stock option granted during the year ended December 31, 2007 was
$13.30 ($7.98, net of tax). No TWC stock options were exercised during the year ended December 31, 2007.
TWC Restricted Stock Units
The following table summarizes information about unvested TWC RSU awards as of December 31, 2007:
Number of
Units
Weighted-
Average
Grant Date
Fair Value
(in thousands)
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,166 $ 36.98
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) 37.05
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58) 37.01
Unvested as of December 31, 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,103 36.98
As of December 31, 2007, the intrinsic value of unvested TWC RSU awards was $58 million. Total
unrecognized compensation cost related to unvested TWC RSU awards as of December 31, 2007, without
taking into account expected forfeitures, is $50 million and is expected to be recognized over a weighted-
average period of three years. The fair value of TWC RSU awards that vested during the year ended December 31,
2007 was not material.
Equity-based Compensation Expense
Compensation expense recognized for Time Warner and TWC equity-based compensation plans for the years
ended December 31, 2007, 2006 and 2005 is as follows (in millions):
2007 2006 2005
Years Ended December 31,
Time Warner Equity Plans:
Compensation cost recognized:
Stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15 $ 29 $ 53
Restricted stock and restricted stock units . . . . . . . . . . . . . . . . . . . . . . 2 4 —
Total impact on Operating Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17 $ 33 $ 53
Tax benefit recognized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7 $ 13 $ 20
TWC Equity Plans:
Compensation cost recognized:
Stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14 $ — $ —
Restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 — —
Total impact on Operating Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42 $ — $ —
Tax benefit recognized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17 $ — $ —
111
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)