Amazon.com 2004 Annual Report Download - page 83

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Stock Award Activity
We granted stock awards, which since October 2002 have consisted primarily of restricted stock units,
representing 3 million, 2 million, and 6 million shares of common stock during 2004, 2003, and 2002 with a per
share weighted average fair value of $43.77, $30.14, and $17.55.
Common shares outstanding (which includes restricted stock), plus shares underlying outstanding stock
options and restricted stock units totaled 434 million, 433 million, and 433 million at December 31, 2004, 2003
and 2002. Common shares outstanding increased by 6 million shares and 15 million shares during 2004 and
2003, due to exercises of stock options, vesting of restricted stock units, and matching contributions under our
401(k) savings plan.
The following summarizes our restricted stock unit activity (in thousands):
Outstanding at December 31, 2001 ............................................... —
Units granted ............................................................ 2,964
Units vested ............................................................. —
Units cancelled ........................................................... (10)
Outstanding at December 31, 2002 ............................................... 2,954
Units granted ............................................................ 2,109
Units vested ............................................................. (380)
Units cancelled ........................................................... (273)
Outstanding at December 31, 2003 ............................................... 4,410
Units granted ............................................................ 3,277
Units vested ............................................................. (741)
Units cancelled ........................................................... (520)
Outstanding at December 31, 2004 ............................................... 6,426
Scheduled vesting for outstanding restricted stock units at December 31, 2004 is as follows (in thousands):
2005 2006 2007 2008 2009 Thereafter Total
Scheduled annual vesting—restricted stock units .......... 1,118 1,925 1,779 1,032 389 183 6,426
The following table summarizes our stock option activity:
Number of
Shares
(In thousands)
Weighted Average
Exercise Price
Balance December 31, 2001 ................................................. 65,950 $10.65
Options granted ...................................................... 3,045 16.46
Options terminated .................................................... (12,262) 10.36
Options exercised ..................................................... (14,728) 8.26
Balance December 31, 2002 ................................................. 42,005 11.91
Options granted ...................................................... 226 24.81
Options terminated .................................................... (2,248) 13.82
Options exercised ..................................................... (15,022) 10.88
Balance December 31, 2003 ................................................. 24,961 12.46
Options granted ...................................................... 187 33.80
Options terminated .................................................... (1,258) 15.66
Options exercised ..................................................... (5,549) 10.78
Balance December 31, 2004 ................................................. 18,341 12.98
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