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Share-Based Compensation
 12 Months Ended
Dec. 31, 2013
Share-Based Compensation

Note 14: 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) 2013 2012 2011
Stock options$139$131$116
Restricted share units 175 154 149
Employee stock purchase plans 20 16 13
Total$334$301$278

As of December 31, 2013, we had unrecognized pretax compensation expense of $318 million related to nonvested stock options and unrecognized pretax compensation expense of $380 million related to nonvested RSUs that will be recognized over a weighted-average period of approximately 1.9 years and 1.7 years, respectively.

2013 Stock Options and Restricted Share Units     
As of December 31, 2013, unless otherwise stated (in millions, except per share data) Stock Options RSUs
Awards granted during 2013 18 7
Weighted-average exercise price$41.22  
Weighted-average fair value at grant date  $38.28
     
Stock options outstanding and nonvested RSUs(a) 104 26
Weighted-average exercise price of stock options outstanding$25.49  
Weighted-average fair value at grant date of nonvested RSUs  $25.38

(a) As of December 31, 2013, 102 million of 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 stock options and RSUs 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 Class A 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. We use the Black-Scholes option pricing model to estimate the fair value of stock option awards. RSUs are valued based on the closing price of our Class A common stock on the date of grant and are discounted for the lack of dividends, if any, during the vesting period. The table below presents the weighted-average fair value on the date of grant of RSUs and Class A common stock options awarded under our various plans and the related weighted-average valuation assumptions.

Year Ended December 31 2013  2012  2011 
RSUs fair value$38.28 $ 27.80 $ 22.78 
Stock options fair value$8.80 $ 7.38 $ 6.96 
Stock Option Valuation Assumptions:         
 Dividend yield 1.9%  2.2%  1.8%
 Expected volatility 25.0%  29.0%  28.1%
 Risk-free interest rate 1.3%  1.7%  2.8%
 Expected option life (in years) 7.0   7.0   7.0 
NBCUniversal Media, LLC [Member]
  
Share-Based Compensation

Note 13: Share-Based Compensation

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

Recognized Share-Based Compensation Expense
 Successor
(in millions)Year Ended December 31,Year Ended December 31,For the Period January 29, 2011 to December 31, 2011
20132012 
Stock options$ 15$15$13
Restricted share units  42 28 18
Employee stock purchase plans  5 4 2
Total$ 62$47$33

As of December 31, 2013, we had unrecognized pretax compensation expense of $35 million related to nonvested Comcast stock options and unrecognized pretax compensation expense of $98 million related to nonvested Comcast restricted share units (“RSUs”) that will be recognized over a weighted-average period of approximately 2.2 years and 1.7 years, respectively.

Comcast maintains share-based compensation plans that primarily consist of awards of stock options and RSUs 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 the employee stock purchase plans, employees are able to purchase shares of Comcast Class A 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. Comcast uses the Black-Scholes option pricing model to estimate the fair value of stock option awards. RSUs are valued based on the closing price of Comcast Class A common stock on the date of grant and are discounted for the lack of dividends, if any, during the vesting period. The table below presents the weighted-average fair value on the date of grant of RSUs and Class A common stock options awarded under Comcast's various plans to employees of NBCUniversal and the related weighted-average valuation assumptions.

 

  Successor
  Year Ended December 31,Year Ended December 31,For the Period January 29, 2011 to December 31,
  201320122011
RSUs fair value$37.79 $27.51 $21.75 
Stock options fair value$8.86 $7.42 $6.77 
Stock Option Valuation Assumptions:         
 Dividend yield 1.9%  2.2% 1.8%
 Expected volatility 25.2%  29.0% 28.5%
 Risk-free interest rate 1.3%  1.7% 2.6%
 Expected option life (in years) 7.0   7.0  7.0