C) What is the amount of compensation expense that will be recognized over the vesting period for restricted stock units? If the restricted stock units were granted on January 1, 2016, what is the deferred compensation expense related to restricted stock units in 2016?
(Millions of Dollars) Year Ended December 31 2016 2015 2014 $306 $270 $299 2 Restricted Stock Units Portfolio Performance Shares Total Shareholder Return Units Stock Options Performance Share Awards Directors' compensation Share-based payment expense Tax benefit for share-based compensation expense Share-based payment expense, net of tax 13 11 669 691 (205) $486 (198) $471 586 (179) $407 B. Restricted Stock Units (RSUS) RSUS are awarded to select employees and, when vested, entitle the holder to receive a specified number of shares of Pfizer common stock, including shares resulting from dividend equivalents paid on such RSUS. For RSUS granted during the periods presented, in virtually all instances, the units vest after three years of continuous service from the grant date. We measure the value of RSU grants as of the grant date using the closing price of Pfizer common stock. The values determined through this fair value methodology generally are amortized on a straight- line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and Research and development expenses, as appropriate. The following table summarizes all RSU activity during 2016: Weighted Average Grant Date Fair Value Per Share Nonvested, December 31, 2015 Granted Vested Reinvested dividend equivalents Forfeited Nonvested, December 31, 2016 Shares (Thousands) 29,135 10,581 (9,630) 1,093 (1,574) 29,605 $31.53 30.74 27.41 32.56 32.18 $32.59 The following table provides data related to all RSU activity: Year Ended December 31 2016 2014 (Millions of Dollars) Total fair value of shares vested Total compensation cost related to nonvested RSU awards not yet recognized, pre-tax Weighted average period over which RSU cost is expected to be recognized (years) $293 $262 2015 $371 $279 $401 $255 1.7 1.8 1.8 (Millions of Dollars) Year Ended December 31 2016 2015 2014 $306 $270 $299 2 Restricted Stock Units Portfolio Performance Shares Total Shareholder Return Units Stock Options Performance Share Awards Directors' compensation Share-based payment expense Tax benefit for share-based compensation expense Share-based payment expense, net of tax 13 11 669 691 (205) $486 (198) $471 586 (179) $407 B. Restricted Stock Units (RSUS) RSUS are awarded to select employees and, when vested, entitle the holder to receive a specified number of shares of Pfizer common stock, including shares resulting from dividend equivalents paid on such RSUS. For RSUS granted during the periods presented, in virtually all instances, the units vest after three years of continuous service from the grant date. We measure the value of RSU grants as of the grant date using the closing price of Pfizer common stock. The values determined through this fair value methodology generally are amortized on a straight- line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and Research and development expenses, as appropriate. The following table summarizes all RSU activity during 2016: Weighted Average Grant Date Fair Value Per Share Nonvested, December 31, 2015 Granted Vested Reinvested dividend equivalents Forfeited Nonvested, December 31, 2016 Shares (Thousands) 29,135 10,581 (9,630) 1,093 (1,574) 29,605 $31.53 30.74 27.41 32.56 32.18 $32.59 The following table provides data related to all RSU activity: Year Ended December 31 2016 2014 (Millions of Dollars) Total fair value of shares vested Total compensation cost related to nonvested RSU awards not yet recognized, pre-tax Weighted average period over which RSU cost is expected to be recognized (years) $293 $262 2015 $371 $279 $401 $255 1.7 1.8 1.8
