EMC 2008 Annual Report Download - page 98

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss, which is presented net of tax, consists of the following (table in thousands):
December 31,
2008 December 31, 2007
Foreign currency translation adjustments, net of tax benefits of $0 and $0 $ (17,299) $ 20,781
Unrealized losses on investments, net of tax benefits of $(35,150) and $(1,635) (54,423) (2,570)
Unrealized gains on investments, net of taxes of $17,419 and $8,929 27,624 13,486
Unrealized gains (losses) on derivatives, net of taxes (benefit) of $(108) and $19 (976) 169
Recognition of actuarial net loss from pension and other postretirement plans and impact of adoption of FAS No. 158, net of tax
benefits of $(82,880) and $(27,200) (134,878) (40,315)
$ (179,952) $ (8,449)
Reclassification adjustments between other comprehensive loss and the income statement consist of the following (table in thousands):
Year Ended December 31,
2008 2007 2006
Realized gains (losses) on investments, net of taxes (benefit) of $2,347, $(3,823) and $(10,338) $4,212 $(6,323)$(17,469)
Realized gains (losses) on derivatives, net of taxes (benefit) of $93, $(1,045) and $(611) 834 (9,403) (5,496)
EMC Preferred Stock
Our preferred stock may be issued from time to time in one or more series, with such terms as our Board of Directors may determine, without further
action by our shareholders.
O. Stock-Based Compensation
EMC Information Infrastructure Equity Plans
The EMC Corporation 2003 Stock Plan (the "2003 Plan") provides for the grant of stock options, stock appreciation rights, restricted stock and restricted
stock units. The exercise price for a stock option shall not be less than 100% of the fair market value of our common stock on the date of grant. Options
generally become exercisable in annual installments over a period of three to five years after the date of grant and expire ten years after the date of grant.
Incentive stock options will expire no later than ten years after the date of grant. Restricted stock is common stock that is subject to a risk of forfeiture or other
restrictions that will lapse upon satisfaction of specified conditions. Restricted stock units represent the right to receive shares of common stock in the future,
with the right to future delivery of the shares subject to a risk of forfeiture or other restrictions that will lapse upon satisfaction of specified conditions. Grants
of restricted stock awards or restricted stock units that vest only by the passage of time will not vest fully in less than three years after the date of grant, except
for grants to non-employee Directors that are not subject to this minimum three-year vesting requirement. The 2003 Plan allows us to grant up to
300.0 million shares of common stock. Beginning in May 2007, we implemented fungible share counting by recognizing restricted stock awards and restricted
stock units against the 2003 Plan share reserve as two shares for every one share issued in connection with such awards.
In addition to the 2003 Plan, we have four other stock option plans (the "1985 Plan," the "1993 Plan," the "2001 Plan" and the 1992 "Directors Plan"). In
May 2007, these four plans were consolidated into the 2003 Plan such that all future grants will be granted under the 2003 Plan and shares that are not issued
as a result of cancellations, expirations or forfeitures, will become available for grant under the 2003 Plan.
92