Google 2010 Annual Report Download - page 89

The following table summarizes additional information regarding outstanding, exercisable, and exercisable
and vested stock options and warrants at December 31, 2010:
Options Outstanding Options Exercisable Options Exercisable and Vested
Range of Exercise Prices Number of Shares
Weighted-
Average
Remaining
Life
(Years)
Weighted-
Average
Exercise
Price Number of Shares
Weighted-
Average
Exercise
Price Number of Shares
Weighted-
Average
Exercise
Price
$0.30–$94.80 ......... 499,527 3.9 $ 27.27 493,309 $ 26.71 436,755 $ 22.86
$117.84–$198.41 ....... 633,703 3.5 $ 177.44 633,703 $ 177.44 633,703 $ 177.44
$205.96–$298.86 ..... 685,001 4.1 $275.04 676,446 $ 274.87 676,446 $274.87
$300.97–$399.00 ..... 6,999,888 6.1 $309.65 3,765,387 $309.79 3,765,387 $309.79
$401.78–$499.07 ...... 1,063,372 7.9 $438.35 382,125 $ 437.31 382,125 $ 437.31
$500.03–$594.97 ..... 1,602,979 9.2 $ 519.50 107,771 $543.97 107,771 $543.97
$605.49–$699.35 ..... 40,872 9.6 $ 614.14 2,186 $633.85 2,186 $633.85
$710.84 . . . . . . . . . . . . . . . 80 7.0 $ 710.84 60 $ 710.84 60 $ 710.84
$0.30–$710.84 ........ 11,525,422 6.3 $330.24 6,060,987 $ 281.34 6,004,433 $283.46
The above tables include approximately 1.1 million warrants held by selected financial institutions that were
options purchased from employees under our TSO program, with a weighted-average exercise price of $319.54
and a weighted-average remaining life of 1.2 years.
The total grant date fair value of stock options vested during 2008, 2009, and 2010 was $693 million, $690
million, and $690 million. The aggregate intrinsic value of all options and warrants exercised during 2008, 2009,
and 2010 was $503 million, $566 million, and $794 million. These amounts do not include the aggregate sales
price of options sold under our TSO program.
During 2010, the number of shares underlying TSOs sold to selected financial institutions under the TSO
program was 747,647 at a total value of $173 million, or an average of $231.81 per share, including an average
premium of $20.11 per share. The premium is calculated as the difference between (a) the sale price of the TSO
and (b) the intrinsic value of the TSO, which we define as the excess, if any, of the price of our Class A common
stock at the time of the sale over the exercise price of the TSO.
In March 2009, we completed an offer to exchange certain employee stock options issued under our 2004
Stock Plan. Certain previously granted options were exchanged for new options with a lower exercise price granted
on a one-for-one basis. Options for an aggregate of approximately 7.6 million shares of our Class A common stock
were exchanged. Options granted pursuant to the Exchange have an exercise price of $308.57 per share, the
closing price of our Class A common stock as reported by the Nasdaq Global Select Market on March 6, 2009.
Options granted pursuant to the Exchange have a new vesting schedule determined by adding 12 months to each
vesting date under the exchanged options’ original vesting schedule. In addition, new options will vest no sooner
than six months after the date of the Exchange. The Exchange resulted in a modification charge of approximately
$360 million which is being recognized over the vesting periods of the new options. These vesting periods range
from six months to five years. We recorded approximately $103 million and $86 million of the modification charge
during 2009 and 2010.
As of December 31, 2010, there was $889 million of unrecognized compensation cost related to outstanding
employee stock options. This amount is expected to be recognized over a weighted-average period of 2.6 years. To
the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related
to these awards will be different from our expectations.
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