Time Warner Cable 2009 Annual Report Download - page 99

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and reduction in value of Time Warner Equity Awards held by TWC employees as a result of the Separation. Refer to “Separation-related
Equity Awards” above for further details.
Equity-based Compensation Expense
Compensation expense and the related tax benefit recognized for TWC and Time Warner equity-based compensation plans for the
years ended December 31, 2009, 2008 and 2007 is as follows (in millions):
2009 2008 2007
Year Ended December 31,
TWC Equity Plan:
Compensation cost recognized:
Stock options ..................................................... $ 45 $ 27 $ 14
Restricted stock units ............................................... 52 41 28
Total impact on Operating Income (Loss) ................................ $ 97 $ 68 $ 42
Tax benefit recognized ................................................ $ 38 $ 27 $ 17
Time Warner Equity Plans:
Compensation cost recognized:
Stock options
(a)
................................................... $ — $ 9 $ 15
Restricted stock and restricted stock units
(a)
.............................. — 1 2
Total impact on Operating Income (Loss) ................................ $ — $ 10 $ 17
Tax benefit recognized ................................................ $ — $ 4 $ 7
(a)
No additional compensation expense will be recognized under Time Warner equity plans after March 12, 2009, the date of TWC’s separation from Time Warner.
However, TWC will continue to reimburse Time Warner for the intrinsic value of Time Warner stock options held by TWC employees upon exercise until all such
awards have been exercised or have expired. Refer to “Equity Award Reimbursement Obligation” in Note 8 for further details.
87
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)