Google 2013 Annual Report Download - page 77


PART II
ITEM8.Notes to Consolidated Financial Statements
ThefollowingtablesummarizestheactivitiesforouroptionsfortheyearendedDecember31,2013:
Options Outstanding
Number
of Shares
Weighted-
Average
Exercise Price
Weighted-Average
Remaining Contractual
Term (in years)
Aggregate
Intrinsic Value
(in millions)(1)
BalanceatDecember31,2012 8,551,395 $405.98
Granted 1,571 $723.25
Exercised (3,299,276) $355.56
Forfeited/canceled (220,827) $595.92
BalanceatDecember31,2013 5,032,863 $431.00 5.0 $3,470
ExercisableasofDecember31,2013 3,795,911 $379.60 4.1 $2,813
ExercisableasofDecember31,2013andexpectedto
vestthereafter(2) 4,880,718 $426.33 5.0 $3,390
(1) Theaggregateintrinsicvalueiscalculatedasthedifferencebetweentheexercisepriceoftheunderlyingawardsandtheclosingstockprice
of$1,120.71ofourClassAcommonstockonDecember31,2013.
(2) Optionsexpectedtovestreflectanestimatedforfeiturerate.
Thefollowingtablesummarizesadditionalinformationregardingoutstanding,andvestedandexercisablestockoptionsasof
December31,2013:
Range of
ExercisePrices
Options Outstanding Options Exercisable
Number
of Shares
Weighted-
Average
Remaining Life
(in years)
Weighted-Average
Exercise Price Number of Shares
Weighted-Average
Exercise Price
$3.75–$92.23 22,905 2.2 $68.89 22,905 $ 68.89
$117.84–$198.41 117,075 1.1 $181.44 117,075 $ 181.44
$205.96–$298.86 141,731 1.6 $276.29 141,731 $ 276.29
$300.97–$399.00 2,098,774 3.5 $309.82 2,066,572 $309.83
$401.78–$499.07 547,762 5.1 $442.23 516,010 $440.83
$501.27–$595.35 1,235,007 6.2 $538.95 755,917 $ 532.34
$601.17–$675.82 852,625 7.9 $628.88 172,006 $616.14
$723.25–$762.5 16,984 8.8 $758.87 3,695 $758.34
$3.75–$762.5 5,032,863 5.0 $431.00 3,795,911 $ 379.60
Theabovetablesinclude388,324warrantsheldbyselectednancialinstitutionsthatwereoptionspurchasedfrom
employeesunderourTSOprogram,withaweighted-averageexercisepriceof$431.76andaweighted-averageremaining
lifeof0.6years.
During2013,thenumberofsharesunderlyingTSOssoldtoselectednancialinstitutionsundertheTSOprogramwas671,190
atatotalvalueof$322million,oranaverageof$479.06pershare,includinganaveragepremiumof$2.35pershare.The
premiumiscalculatedasthedierencebetween(a)thesalepriceoftheTSOand(b)theintrinsicvalueoftheTSO,which
wedene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.TheTSOprogramwasdiscontinuedasofNovember29,2013.Thisdidnothaveamaterialimpactonourconsolidated
nancialstatements.
Thetotalgrantdatefairvalueofstockoptionsvestedduring2011,2012,and2013was$561million,$489million,and$223million.
Theaggregateintrinsicvalueofalloptionsandwarrantsexercisedduring2011,2012,and2013was$674million,$827million,
and$1,793million.TheseamountsdonotincludetheaggregatesalespriceofoptionssoldunderourTSOprogram.
AsofDecember31,2013,therewas$188millionofunrecognizedcompensationcostrelatedtooutstandingemployeestock
options.Thisamountisexpectedtoberecognizedoveraweighted-averageperiodof1.9years.Totheextenttheactual
forfeiturerateisdierentfromwhatwehaveestimated,stock-basedcompensationrelatedtotheseawardswillbedierent
fromourexpectations.
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