Motorola 2012 Annual Report Download - page 88

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80
Stock option activity was as follows (in thousands, except exercise price and employee data):
2012 2011 2010
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
Options outstanding at January 1 15,729 $ 63 19,614 $ 81 23,061 $ 84
Options granted 1,286 51 3,155 39 1,630 50
Options exercised (2,831) 29 (4,475)27
(1,559)42
Adjustments to options
outstanding to reflect Motorola
Mobility distribution ——
7,756 39 — —
Options terminated, cancelled or
expired (1,052) 60 (10,321)59
(3,518) 104
Options outstanding at
December 31 13,132 70 15,729 63 19,614 81
Options exercisable at
December 31 9,242 81 11,184 74 12,429 99
Approx. number of employees
granted options 115 270 529
At December 31, 2012, the Company had $30 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 $133 million, $192 million and $179 million for the years ended December 31, 2012, 2011 and 2010, respectively. The
total intrinsic value of options exercised during the years ended December 31, 2012, 2011 and 2010 was $59 million, $73
million and $17 million, respectively. The aggregate intrinsic value for options outstanding and exercisable as of December 31,
2012 was $170 million and $118 million, respectively, based on a December 31, 2012 stock price of $55.68 per share.
The following table summarizes information about stock options outstanding and exercisable at December 31, 2012 (in
thousands, except exercise price and years):
Options Outstanding
Options
Exercisable
Exercise price range
No. of
options
Wtd. avg.
Exercise
Price
Wtd. avg.
contractual
life (in yrs.)
No. of
options
Wtd. avg.
Exercise
Price
Under $30 3,099 $ 26 7 2,617 $ 26
$30-$40 3,728 38 7 2,064 37
$41-$50 620 45 8 246 44
$51-$60 1,377 52 9 7 54
$61-$70 836 67 2 836 67
$71-$80 255 74 4 255 74
$81 and over 3,217 161 2 3,217 161
13,132 9,242
As of December 31, 2012, the weighted average contractual life for options outstanding and exercisable was five and four
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. 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.