Motorola 2007 Annual Report Download - page 114

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Stock option activity was as follows (in thousands, except exercise price and employee data):
Years Ended December 31
Shares
Subject to
Options
Wtd. Avg.
Exercise
Price
Shares
Subject to
Options
Wtd. Avg.
Exercise
Price
Shares
Subject to
Options
Wtd. Avg.
Exercise
Price
2007 2006 2005
Options outstanding at January 1 233,445 $18 267,755 $17 335,757 $16
Options granted 40,257 18 37,202 21 40,675 16
Options exercised (26,211) 11 (59,878) 13 (85,527) 12
Options terminated, canceled or
expired (23,236) 19 (11,634) 19 (23,150) 25
Options outstanding at December
31 224,255 19 233,445 18 267,755 17
Options exercisable at December
31 138,741 19 135,052 19 149,329 19
Approx. number of employees
granted options 32,000 28,900 25,300
At December 31, 2007, the Company had $361 million of total unrecognized compensation expense, net of
estimated forfeitures, related to stock option plans and the employee stock purchase plan that will be recognized
over the weighted average period of approximately two years. Cash received from stock option exercises and the
employee stock purchase plan was $440 million, $918 million and $1.2 billion for the years ended December 31,
2007, 2006 and 2005, respectively. The total intrinsic value of options exercised during the years ended
December 31, 2007, 2006 and 2005 was $177 million, $568 million and $571 million, respectively. The aggregate
intrinsic value for options outstanding and exercisable as of December 31, 2007 was $307 million and
$292 million, respectively, based on a December 31, 2007 stock price of $16.04 per share.
At December 31, 2007 and 2006, 88.0 million shares and 110.9 million shares, respectively, were available for
future share-based award grants under the 2006 Motorola Omnibus Plan, covering all equity awards to employees
and non-employee directors.
The following table summarizes information about stock options outstanding and exercisable at December 31,
2007 (in thousands, except exercise price and years):
Exercise price range No. of
options
Wtd. avg.
Exercise
Price
Wtd. avg.
contractual
life (in yrs.) No. of
options
Wtd. avg.
Exercise
Price
Options Outstanding Options Exercisable
Under $7 907 $ 4 7 264 $ 6
$7-$13 51,569 10 4 51,085 10
$14-$20 110,907 17 7 49,363 16
$21-$27 31,923 22 8 9,080 22
$28-$34 1,716 32 2 1,716 32
$35-$41 26,865 39 7 26,865 39
$42-$48 332 44 3 332 44
$49-$55 36 51 2 36 51
224,255 138,741
The weighted average contractual life for options outstanding and exercisable as of December 31, 2007 was
seven and six years, respectively.
Restricted Stock and Restricted Stock Units
Restricted stock (“RS”) and restricted stock unit (“RSU”) grants consist of shares or the rights to shares of the
Company’s common stock which are awarded to employees and non-employee directors. The grants are restricted
such that they are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer by the
employee. Upon the occurrence of a change in control, the restrictions on all shares of RS and RSUs outstanding
on the date on which the change in control occurs will lapse.
106