Motorola 2009 Annual Report Download - page 118

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110
The following table summarizes information about stock options outstanding and exercisable at
December 31, 2009 (in thousands, except exercise price and years):
Options
Options Outstanding Exercisable
Wtd. avg. Wtd. avg. Wtd. avg.
No. of Exercise contractual No. of Exercise
Exercise price range options Price life (in yrs.) options Price
Under $7 69,423 $ 6 9 5,786 $ 4
$7-$13 54,552 10 6 36,414 10
$14-$20 18,192 17 5 16,426 16
$21-$27 2,775 21 6 2,149 21
$28-$34 878 32 1 878 32
$35-$41 15,476 39 5 15,476 39
$42-$48 116 44 0 116 44
$49-$55 15 49 0 15 49
161,427 77,260
The weighted average contractual life for options outstanding and exercisable as of December 31, 2009 was
six and four years, respectively.
Stock Option Exchange
On May 14, 2009, the Company initiated a tender offer for certain eligible employees (excluding executive
officers and directors) to exchange certain out-of-the-money options for new options with an exercise price equal
to the fair market value of the Company’s stock as of the grant date. In order to be eligible for the exchange, the
options had to have been granted prior to June 1, 2007, expire after December 31, 2009 and have an exercise
price equal to or greater than $12.00. The offering period closed on June 12, 2009. On that date, 97 million
options were tendered and exchanged for 43 million new options with an exercise price of $6.73 and a ratable
annual vesting period over two years. The exchange program was designed so that the fair market value of the
new options would approximate the fair market value of the options exchanged. The resulting incremental
compensation expense was not material to the Company’s consolidated financial statements.
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. Shares of RS and RSUs assumed or replaced with comparable shares of RS or RSUs in
conjunction with a change in control will only have the restrictions lapse if the holder is also involuntarily
terminated (for a reason other than cause) or quits for good reason within 24 months of a change in control.
Restricted stock and restricted stock unit activity was as follows (in thousands, except fair value and
employee data):
2009 2008 2007
Wtd. Avg. Wtd Avg. Wtd Avg.
Grant Date Grant Date Grant Date
Years Ended December 31 RS and RSU Fair Value RS and RSU Fair Value RS and RSU Fair Value
RS and RSU outstanding at
January 1 32,230 $11 10,755 $17 6,016 $19
Granted 38,344 6 27,102 9 7,766 18
Vested (6,917) 11 (2,308) 17 (1,068) 19
Terminated, canceled or
expired (7,227) 9 (3,319) 13 (1,959) 19
RSU outstanding at December 31 56,430 8 32,230 11 10,755 17
Approx. number of employees
granted RSUs 26,969 28,981 1,801