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)		2014		2013		2012
Stock options	$	160	$	139	$	131
Restricted share units		231		175		154
Employee stock purchase plans		23		20		16
Total	$	414	$	334	$	301

As of December 31, 2014, we had unrecognized pretax compensation expense of $321 million related to nonvested stock options and unrecognized pretax compensation expense of $505 million related to nonvested RSUs that will be recognized over a weighted-average period of approximately 1.8 years and 1.7 years, respectively. In 2014, 2013 and 2012, we recorded an increase to additional paid-in capital of $299 million, $244 million and $164 million, respectively, which was the result of a tax benefit associated with our share-based compensation plans.

Stock Options and Restricted Share Units
As of December 31, 2014, unless otherwise stated (in millions, except per share data)		Stock Options		RSUs
Awards granted during 2014		16		8
Weighted-average exercise price of awards granted during 2014	$	50.03

Stock options outstanding and nonvested RSUs		98		24
Weighted-average exercise price of stock options outstanding	$	30.29
Weighted-average fair value at grant date of nonvested RSUs			$	34.11

As of December 31, 2014, 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 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			2014			2013			2012
RSUs fair value		$	47.91		$	38.28		$	27.80
Stock options fair value		$	11.11		$	8.80		$	7.38
Stock Option Valuation Assumptions:
	Dividend yield		1.8	%		1.9	%		2.2	%
	Expected volatility		24.0	%		25.0	%		29.0	%
	Risk-free interest rate		2.2	%		1.3	%		1.7	%
	Expected option life (in years)		6.5			7.0			7.0

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)	2014		2013		2012
Stock options	$	16	$	15	$	15
Restricted share units		69		42		28
Employee stock purchase plans		6		5		4
Total	$	91	$	62	$	47

As of December 31, 2014, we had unrecognized pretax compensation expense of $25 million related to nonvested Comcast stock options and unrecognized pretax compensation expense of $124 million related to nonvested Comcast restricted share units (“RSUs”) that will be recognized over a weighted-average period of approximately 2.1 years and 1.6 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 its 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.

Year ended December 31			2014			2013			2012
RSUs fair value		$	48.04		$	37.79		$	27.51
Stock options fair value		$	11.09		$	8.86		$	7.42
Stock Option Valuation Assumptions:
	Dividend yield		1.8	%		1.9	%		2.2	%
	Expected volatility		24.0	%		25.2	%		29.0	%
	Risk-free interest rate		2.2	%		1.3	%		1.7	%
	Expected option life (in years)		6.5			7.0			7.0

- 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.

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