Time Warner Cable 2008 Annual Report Download - page 135
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TWC Restricted Stock Units
The following table summarizes information about unvested TWC RSU awards as of December 31, 2008:
Number of
Units
Weighted-
Average
Grant Date
Fair Value
(in thousands)
Unvested as of December 31, 2007 .................................. 2,103 $ 36.98
Granted ...................................................... 2,980 27.45
Vested ....................................................... (126) 32.94
Forfeited ..................................................... (268) 32.81
Unvested as of December 31, 2008 .................................. 4,689 31.26
As of December 31, 2008, the intrinsic value of unvested TWC RSU awards was $101 million. Total
unrecognized compensation cost related to unvested TWC RSU awards as of December 31, 2008, without taking
into account expected forfeitures, is $82 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 was $4 million in 2008 and immaterial in
2007.
During February 2009, TWC issued approximately 3.5 million RSUs to employees under the 2006 Plan at a
grant date fair value of $18.14 per RSU.
Equity-based Compensation Expense
Compensation expense recognized for Time Warner and TWC equity-based compensation plans for the years
ended December 31, 2008, 2007 and 2006 is as follows (in millions):
2008 2007 2006
Year Ended December 31,
Time Warner Equity Plans:
Compensation cost recognized:
Stock options ..................................... $ 9 $ 15 $ 29
Restricted stock and restricted stock units. . . .............. 1 2 4
Total impact on Operating Income (Loss) . . . .............. $ 10 $ 17 $ 33
Tax benefit recognized ................................ $ 4 $ 7 $ 13
TWC Equity Plans:
Compensation cost recognized:
Stock options ..................................... $ 27 $ 14 $ —
Restricted stock units ................................ 41 28 —
Total impact on Operating Income (Loss) . . . .............. $ 68 $ 42 $ —
Tax benefit recognized ................................ $ 27 $ 17 $ —
13. EMPLOYEE BENEFIT PLANS
Defined Benefit Plans
The Company participates in various funded and unfunded noncontributory defined benefit pension plans
administered by Time Warner through October 31, 2008 and by the Company thereafter. Pension benefits are based
on formulas that reflect the employees’ years of service and compensation during their employment period. TWC
125
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)