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## Index to Financial Statements 

The Company also recorded a deferred tax asset of $2 million related to restricted stock for the year ended December 31, 2018, compared to a deferred tax assets of $9 million and $12 million for 2017 and 2016, respectively. As of December 31, 2018, there was $15 million of total unrecognized compensation cost related to unvested shares of restricted stock that is expected to be recognized over a weighted-average period of two years. 

The following table summarizes the restricted stock activity for the years 2018, 2017 and 2016, and provides information for restricted stock outstanding at December 31 of each year: 

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(1) Includes 1,287,636 shares forfeited as a result of the reduction in workforce for the year ended December 31, 2018. 

(2) Shares granted in 2016 were considerably lower than historical norms. In 2016, the Company changed the grant date of its annual restricted stock awards from December to the following February. 

(3) Includes 2,059,626 shares and 151,575 shares related to reduction in workforce and executive management restructuring, respectively, for the year ended December 31, 2016. 

The fair values of the grants were $2 million for 2018, $42 million for 2017 and $1 million for 2016. The total fair value of shares vested were $19 million for 2018, $18 million for 2017 and $43 million for 2016. 

Equity-Classified Performance Units 

The Company recorded compensation costs related to equity-classified performance units for the years ended December 31, 2018, 2017 and 2016. The performance units awarded in 2018, 2017 and 2016 included a market condition based on relative Total Shareholder Return (“TSR”). The grant date fair value is calculated using the closing price of the Company’s common stock at the grant date and a Monte Carlo model to estimate the TSR market condition. The estimated fair value is amortized to compensation expense on a straight-line basis over the vesting period of the award. 

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(1) Includes less than $1 million related to reduction in workforce and $1 million related to executive management restructuring for the year ended December 31, 2016. 

The Company also recorded a deferred tax asset of $1 million related to equity-classified performance units for the year ended December 31, 2018, compared to deferred tax assets of $3 million and $4 million in 2017 and 2016, respectively. As of December 31, 2018, there was $3 million of total unrecognized compensation cost related to unvested equity-classified performance units that is expected to be recognized over a weighted-average period of one year. 

