GE 2014 Annual Report Download - page 213

GE 2014 FORM 10-K 193
FINANCIAL STATEMENTS OTHER INCOME
OTHER STOCK-BASED COMPENSATION
Weighted
Weighted average Aggregate
average remaining intrinsic
Shares grant date contractual value
(In thousands) fair value term (In years) (In millions)
RSUs outstanding at January 1, 2014 13,572 $ 22.58
Granted 5,016 26.08
Vested (3,305) 21.70
Forfeited (387) 22.31
RSUs outstanding at December 31, 2014 14,896 $ 24.00 2.5 $ 376
RSUs ex
p
ected to vest 13,667 $ 21.94 2.2 $ 345
The fair value of each restricted stock unit is the market price of our stock on the date of grant. The weighted average grant
date fair value of RSUs granted during 2014, 2013 and 2012 was $26.08, $24.54 and $20.79, respectively. The total intrinsic
value of RSUs vested during 2014, 2013 and 2012 amounted to $86 million, $109 million and $116 million, respectively. As of
December 31, 2014, there was $233 million of total unrecognized compensation cost related to non-vested RSUs. That cost is
expected to be recognized over a weighted average period of 2 years, of which approximately $54 million after tax is expected
to be recognized in 2015. As of December 31, 2014, 1 million PSUs with a weighted average remaining contractual term of 1.5
years, an aggregate intrinsic value of $25 million and $9 million of unrecognized compensation cost were outstanding. Other
share-based compensation expense for RSUs and PSUs recognized in net earnings amounted to $56 million, $62 million and
$79 million in 2014, 2013 and 2012, respectively.
The income tax benefit recognized in earnings based on the compensation expense recognized for all share-based
compensation arrangements amounted to $147 million, $145 million and $153 million in 2014, 2013 and 2012, respectively.
The excess of actual tax deductions over amounts assumed, which are recognized in shareowners’ equity, were $86 million
$86 million and $53 million in 2014, 2013 and 2012, respectively.
When stock options are exercised and restricted stock vests, the difference between the assumed tax benefit and the actual
tax benefit must be recognized in our financial statements. In circumstances in which the actual tax benefit is lower than the
estimated tax benefit, that difference is recorded in equity, to the extent there are sufficient accumulated excess tax benefits.
At December 31, 2014, our accumulated excess tax benefits are sufficient to absorb any future differences between actual and
estimated tax benefits for all of our outstanding option and restricted stock grants.


NOTE 17. OTHER INCOME
(In millions) 2014 2013 2012
GE
Licensing and royalty income $ 288 $ 320 $ 290
Purchases and sales of business interests(a) 188 1,750 574
Associated companies(b) 176 40 1,545
Net interest and investment income(c) (77) 116 196
Other items(d) 132 660 52
707 2,886 2,657
Eliminations 71 222 (94)
Total $ 778 $ 3,108 $ 2,563
(a) Included a pre-tax gain of $1,096 million on the sale of our 49% common equity interest in NBCU LLC in 2013. See Note 2.
(b) Included income of $1,416 million from our former equity method investment in NBCU LLC in 2012.
(c) Included other-than-temporary impairments on investment securities of $217 million in 2014.
(d) Included net gains on asset sales of $127 million in 2014 and $357 million in 2013.