Prudential 2006 Annual Report Download - page 153

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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
15. SHARE-BASED PAYMENTS (continued)
A summary of the Company’s non-employee restricted stock shares and restricted stock units is as follows:
Restricted
Stock
Shares
Weighted
Average
Balance
Sheet Date
Fair Value
Restricted
Stock
Units
Weighted
Average
Balance
Sheet Date
Fair Value
Restricted at December 31, 2003 ...................................... 13,946 $41.77 — $ —
Granted .......................................................... 10,629 — 844 —
Forfeited ......................................................... (1,708) — — —
Released ......................................................... — — — —
Restricted at December 31, 2004 ...................................... 22,867 54.96 844 54.96
Granted .......................................................... — — 12,466 —
Forfeited ......................................................... (1,848) — (806) —
Released ......................................................... — — — —
Restricted at December 31, 2005 ...................................... 21,019 73.19 12,504 73.19
Granted .......................................................... — — 128,208 —
Forfeited ......................................................... (654) — (20,318) —
Released ......................................................... (11,668) — (1,792) —
Restricted at December 31, 2006 ...................................... 8,697 $85.86 118,602 $85.86
The fair value of non-employee share awards released for the years ended December 31, 2006 was $1 million. There were no
non-employee awards released during the years ended December 31, 2005 and 2004.
Unrecognized Compensation Cost
Unrecognized compensation cost for employee stock options as of December 31, 2006 was $40 million with a weighted
average recognition period of 1.61 years. Unrecognized compensation cost for employee restricted stock awards, restricted stock
units, and performance share awards as of December 31, 2006 was $107 million with a weighted average recognition period of 1.79
years.
Unrecognized compensation cost for non-employee stock options as of December 31, 2006 was $1 million with a weighted
average recognition period of 1.16 years. Unrecognized compensation cost for non-employee restricted stock awards and restricted
stock units as of December 31, 2006 was $5 million with a weighted average recognition period of 2.09 years.
Tax Benefits Realized
The tax benefit realized for exercises of employee and non-employee stock options during the years ended December 31, 2006,
2005 and 2004 was $69 million, $58 million and $20 million, respectively.
The tax benefit realized upon vesting of restricted stock shares, restricted stock units, and performance shares for the years
ended December 31, 2006, 2005 and 2004 was $52 million, $4 million and $2 million, respectively.
Settlement of Awards
The Company’s policy is to issue shares from Common Stock held in treasury upon exercise of employee and non-employee
stock options as well as for the release of restricted stock shares, restricted stock units, and performance shares.
As of December 31, 2006, the company has not settled any equity instruments granted under share-based payment
arrangements in cash.
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
151