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Notes to Consolidated Financial Statements
1996 Plan The 1996 Plan expired on December 31, 2006, and the Company can no longer make equity awards under the 1996 Plan. The
maximum number of shares issuable over the term of the 1996 Plan was 2.5 billion shares. Stock options granted under the 1996 Plan have
an exercise price of at least 100% of the fair market value of the underlying stock on the grant date and expire no later than nine years from
the grant date. The stock options generally become exercisable for 20% or 25% of the option shares one year from the date of grant and
then ratably over the following 48 or 36 months, respectively. Certain other grants have utilized a 60-month ratable vesting schedule. In
addition, the Board of Directors, or other committees administering the plan, have the discretion to use a different vesting schedule and
have done so from time to time.
Supplemental Plan The Supplemental Plan expired on December 31, 2007, and the Company can no longer make equity awards under
the Supplemental Plan. Officers and members of the Company’s Board of Directors were not eligible to participate in the Supplemental
Plan. Nine million shares were reserved for issuance under the Supplemental Plan.
Acquisition Plans In connection with the Company’s acquisitions of Scientific-Atlanta and WebEx, the Company adopted the SA
Acquisition Plan and the WebEx Acquisition Plan, respectively, each effective upon completion of the applicable acquisition. These plans
constitute assumptions, amendments, restatements, and renamings of the 2003 Long-Term Incentive Plan of Scientific-Atlanta and the
WebEx Communications, Inc. Amended and Restated 2000 Stock Incentive Plan, respectively. The plans permit the grant of stock options,
stock, stock units, and stock appreciation rights to certain employees of the Company and its subsidiaries and affiliates who had been
employed by Scientific-Atlanta or its subsidiaries or WebEx or its subsidiaries, as applicable. As a result of the shareholder approval of the
amendment and extension of the 2005 Plan, as of November 15, 2007, the Company will no longer make stock option grants or direct share
issuances under either the SA Acquisition Plan or the WebEx Acquisition Plan.
General Share-Based Award Information
Stock Option Awards A summary of the stock option activity is as follows (in millions, except per-share amounts):
STOCK OPTIONS OUTSTANDING
Number
Outstanding
Weighted-
Average
Exercise Price
per Share
BALANCE AT JULY 29, 2006 1,446 $ 25.08
Granted and assumed 206 23.32
Exercised(1) (309) 16.00
Canceled/forfeited/expired (54) 34.04
BALANCE AT JULY 28, 2007 1,289 26.60
Granted and assumed 159 31.12
Exercised(1) (146) 18.50
Canceled/forfeited/expired (103) 30.74
BALANCE AT JULY 26, 2008 1,199 27.83
Granted and assumed 14 19.01
Exercised (1) (33) 14.67
Canceled/forfeited/expired (176) 49.79
BALANCE AT JULY 25, 2009 1,004 $24.29
(1) The total pretax intrinsic value of stock options exercised during fiscal 2009, 2008, and 2007 was $158 million, $1.6 billion, and $3.1 billion, respectively.
2009 Annual Report 67