Share-Based Compensation

Note 13: Share-Based Compensation

The tables below provide condensed information on our share-based compensation.



Recognized Share-Based Compensation Expense
Year ended December 31 (in millions)	2016		2015		2014
Restricted share units	$	306	$	273	$	231
Stock options	173		157		160
Employee stock purchase plans	28		25		23
Total	$	507	$	455	$	414

As of December 31, 2016, we had unrecognized pretax compensation expense of $712 million related to nonvested RSUs and unrecognized pretax compensation expense of $375 million related to nonvested stock options that will be recognized over a weighted-average period of approximately 1.7 years and 1.8 years, respectively. In 2016, 2015 and 2014, we recorded increases to additional paid-in capital of $233 million, $311 million and $299 million, respectively, which were the result of tax benefits associated with our share-based compensation plans.



Stock Options and Restricted Share Units
As of December 31, 2016, unless otherwise stated (in millions, except per share data)	Stock Options		RSUs
Awards granted during 2016	21		8
Weighted-average exercise price of awards granted during 2016	$	60.01
Stock options outstanding and nonvested RSUs	95		22
Weighted-average exercise price of stock options outstanding	$	42.60
Weighted-average fair value at grant date of nonvested RSUs			$	52.11

As of December 31, 2016, substantially all of our stock options outstanding were net settled stock options. Net settled stock options, as opposed to stock options exercised with a cash payment, result in fewer shares being issued and no cash proceeds being received by us when the options are exercised. Our share-based compensation primarily consists of awards of RSUs and stock options to certain employees and directors as part of our approach to long-term incentive compensation. Awards generally vest over a period of 5 years and in the case of stock options, have a 10 year term. Additionally, through our employee stock purchase plans, employees are able to purchase shares of Comcast common stock at a discount through payroll deductions.

The cost associated with our share-based compensation is based on an award’s estimated fair value at the date of grant and is recognized over the period in which any related services are provided. RSUs are valued based on the closing price of our common stock on the date of grant and are discounted for the lack of dividends, if any, during the vesting period. We use the Black-Scholes option pricing model to estimate the fair value of stock option awards. The table below presents the weighted-average fair value on the date of grant of RSUs and stock options awarded under our various plans and the related weighted-average valuation assumptions.



Year ended December 31	2016			2015			2014
RSUs fair value	$	60.03		$	58.81		$	47.91
Stock options fair value	$	11.55		$	11.78		$	11.11
Stock Option Valuation Assumptions:
Dividend yield	1.8		%	1.7		%	1.8		%
Expected volatility	23.0		%	23.0		%	24.0		%
Risk-free interest rate	1.5		%	1.6		%	2.2		%
Expected option life (in years)	6.1			6.0			6.5

Note 12: Share-Based Compensation

The tables below provide condensed information on our share-based compensation.



Recognized Share-Based Compensation Expense
Year ended December 31 (in millions)	2016		2015		2014
Restricted share units	$	82	$	78	$	69
Stock options	9		10		16
Employee stock purchase plans	8		6		6
Total	$	99	$	94	$	91

As of December 31, 2016, we had unrecognized pretax compensation expense of $204 million related to nonvested Comcast restricted share units (“RSUs”) and unrecognized pretax compensation expense of $28 million related to nonvested Comcast stock options that will be recognized over a weighted-average period of approximately 1.9 years and 1.8 years, respectively.

Comcast maintains share-based compensation plans that primarily consist of awards of RSUs and stock options to certain employees and directors as part of its approach to long-term incentive compensation. Awards generally vest over a period of 5 years and in the case of stock options, have a 10 year term. Additionally, through its employee stock purchase plans, employees are able to purchase shares of Comcast common stock at a discount through payroll deductions. Certain of our employees participate in these plans and the expense associated with their participation is settled in cash with Comcast.

The cost associated with Comcast’s share-based compensation is based on an award’s estimated fair value at the date of grant and is recognized over the period in which any related services are provided. RSUs are valued based on the closing price of Comcast common stock on the date of grant and are discounted for the lack of dividends, if any, during the vesting period. Comcast uses the Black-Scholes option pricing model to estimate the fair value of stock option awards. The table below presents the weighted-average fair value on the date of grant of RSUs and stock options awarded under Comcast’s various plans to employees of NBCUniversal and the related weighted-average valuation assumptions.



Year ended December 31	2016			2015			2014
RSUs fair value	$	59.58		$	59.37		$	48.04
Stock options fair value	$	13.17		$	11.79		$	11.09
Stock Option Valuation Assumptions:
Dividend yield	1.7		%	1.7		%	1.8		%
Expected volatility	23.2		%	23.0		%	24.0		%
Risk-free interest rate	1.5		%	1.6		%	2.2		%
Expected option life (in years)	7.5			6.0			6.5

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details