Blizzard 2009 Annual Report Download - page 88

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76
StockOptionActivities
StockoptionactivitiesfortheyearendedDecember31,2009areasfollows(amountsinmillions,
exceptnumberofshares,whichareinthousands,andpershareamounts):
Shares
Weighted
average
exerciseprice
Weightedaverage
remaining
contractualterm
Aggregate
intrinsic
value
OutstandingatDecember31,2008................................
97,841
$6.53
Granted.....................................................................................
9,512
11.67
Exercised..................................................................................
(34,304)
2.60
Forfeited...................................................................................
(1,231)
9.98
OutstandingatDecember31,2009................................
71,818
9.04
6.76
$210
VestedandexpectedtovestatDecember31,2009.................
68,647
$8.90
6.16
$208
ExercisableatDecember31,2009...........................................
39,256
$7.12
5.56
$175
Theaggregateintrinsicvalueinthetableaboverepresentsthetotalpretaxintrinsicvalue(i.e.,the
differencebetweenourclosingstockpriceonthelasttradingdayoftheperiodandtheexerciseprice,times
thenumberofsharesunderlyingoptionswheretheexercisepriceisbelowtheclosingstockprice)that
wouldhavebeenreceivedbytheoptionholdershadalloptionholdersexercisedtheiroptionsonthatdate.
Thisamountchangesasitisbasedonthefairmarketvalueofourstock.Totalintrinsicvalueofoptions
actuallyexercisedwas$312millionand$53millionfortheyearsendedDecember31,2009and2008,
respectively.Totalgrantdatefairvalueofoptionsvestedwas$143millionand$32millionfortheyears
endedDecember31,2009and2008,respectively.
AtDecember31,2009,$81millionoftotalunrecognizedcompensationcostrelatedtostock
optionsisexpectedtoberecognizedoveraweightedaverageperiodof1.3years.
Incometaxbenefitfromstockoptionexerciseswas$85millionand$22millionfortheyears
endedDecember31,2009and2008,respectively.
VivendiCorporatePlans
PriortotheBusinessCombination,VivendigrantedVivendiGames’employeesincentiveawards
thatwereequitysettledandcashsettled.Theseequitysettledawardsincludestockoptionsandrestricted
shareawards,andthecashsettledawardsincludestockappreciationrightsandrestrictedstockunits.There
werenonewgrantsbyVivenditoVivendiGames’employeesduringtheyearsendedDecember31,2009
and2008.AtDecember31,2009and2008,wehaverecordedinourconsolidatedbalancesheetsunder
otherliabilities$9millionand$14million,respectively,relatingtocashsettledawardsgrantedpursuantto
Vivendi’sincentiveplans.ThefollowingparagraphsdescribethevariousplansestablishedbyVivendiin
whichVivendiGames’employeesparticipated.
(i)AwardsgrantedtononU.S.residentexecutivesandemployees(settledinequity)
StockOptions(settledinequity)
StockoptionstoacquireVivendistockhavebeengrantedtoVivendiGames’employees.Allstock
optionsgrantedbyVivendipriortoJanuary1,2007,vestannuallyinonethirdtranchesoverthreeyears
fromthegrantdate’sanniversary.Twothirdsofthosevestedoptionsbecomeexercisableatthebeginning
ofthethirdyearfromthedateofgrant,andtheremainingonethirdbecomesexercisableatthebeginning
ofthefourthyearfromthedateofgrant.Therelatedcompensationcostisaccountedforovertherequired
threeyearserviceperiodusingtheacceleratedmultitranchemethodinaccordancewiththefollowing
spreadrates:61%inthefirstyearoftheoption,28%inthesecondyearand11%inthethirdyear.
In2007,VivendiGamesemployeesreceivedstockoptionswhichcliffvestattheendofathree
yearvestingperiod.Thestockbasedcompensationexpenserelatedtothesestockoptionsisrecognizedon
astraightlinebasisoverthevestingperiod.Theseoptionsaredenominatedineuros.