Discover 2015 Annual Report Download - page 136
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-120-
Stock-Based Compensation
The following table details the compensation cost, net of forfeitures (dollars in millions):
For the Years Ended December 31,
2015 2014 2013
RSUs ................................................................................................................................... $ 34 $ 33 $ 31
PSUs ................................................................................................................................... 22 27 28
Total stock-based compensation expense ............................................................................ $ 56 $ 60 $ 59
Income tax benefit ................................................................................................................ $ 21 $ 22 $ 22
RSUs
The following table sets forth the activity related to vested and unvested RSUs:
Number of
Units
Weighted-
Average
Grant-Date
Fair Value
Aggregate
Intrinsic Value
(in millions)
RSUs at December 31, 2014 ................................................................................................. 3,362,398 $ 32.92 $ 220
Granted .......................................................................................................................... 822,117 $ 56.71
Conversions to common stock ............................................................................................ (1,155,136) $ 30.69
Forfeited ......................................................................................................................... (112,216) $ 48.32
RSUs at December 31, 2015 ................................................................................................. 2,917,163 $ 39.97 $ 156
The following table sets forth the activity related to unvested RSUs:
Number of
Units
Weighted-
Average
Grant-Date
Fair Value
Unvested RSUs at December 31, 2014(1) ......................................................................................................... 1,862,727 $ 37.48
Granted ................................................................................................................................................... 822,117 $56.71
Vested ...................................................................................................................................................... (1,124,383) $ 33.47
Forfeited ................................................................................................................................................... (112,216) $ 48.32
Unvested RSUs at December 31, 2015(1) ......................................................................................................... 1,448,245 $ 50.67
(1) Unvested RSUs represent awards where recipients have yet to satisfy either explicit vesting terms or retirement-eligibility requirements.
Compensation cost associated with restricted stock units is determined based on the number of units granted and
the fair value on the date of grant. The fair value is amortized on a straight-line basis, net of estimated forfeitures over
the requisite service period for each separately vesting tranche of the award. The requisite service period is generally
the vesting period.
The following table summarizes the total intrinsic value of the RSUs converted to common stock and the total
grant-date fair value of RSUs vested (dollars in millions, except weighted-average grant-date fair value amounts):
For the Years Ended December 31,
2015 2014 2013
Intrinsic value of RSUs converted to common stock ................................................................... $ 71 $ 72 $ 63
Grant-date fair value of RSUs vested ...................................................................................... $ 38 $ 30 $ 27
Weighted-average grant-date fair value of RSUs granted ........................................................ $ 56.71 $ 54.01 $42.14