NetFlix 2006 Annual Report Download - page 74

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NETFLIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(in thousands, except share and per share data and percentages)
A summary of the activities related to the Company’s options is as follows:
Shares Available
for Grant
Options Outstanding Weighted-Average
Remaining
Contractual Term
(in Years)
Aggregate
Intrinsic Value
(in Thousands)
Number of
Shares
Weighted-Average
Exercise Price
Balances as of December 31, 2003 . . . 3,468,488 5,896,584 3.42
Authorized .................. 2,000,000 — —
Granted ..................... (1,447,940) 1,447,940 22.04
Exercised ................... — (1,298,308) 2.87
Canceled .................... 230,464 (230,464) 10.20
Balances as of December 31, 2004 . . . 4,251,012 5,815,752 7.91
Authorized .................. 2,000,000 — —
Granted ..................... (1,741,319) 1,741,319 15.30
Exercised ................... — (1,629,115) 6.22
Canceled .................... 73,140 (73,140) 19.68
Balances as of December 31, 2005 . . . 4,582,833 5,854,816 10.43
Authorized .................. 2,000,000 — —
Granted ..................... (1,043,910) 1,043,910 25.70
Exercised ................... — (1,379,012) 6.07
Canceled .................... 66,261 (66,261) 28.56
Balances as of December 31, 2006 . . . 5,605,184 5,453,453 14.23 6.81 68,640
Exercisable as of December 31,
2006 ......................... 5,448,555 14.24 6.81 68,567
Vested and expected to vest at
December 31, 2006 ............. 5,453,453 14.23 6.81 68,640
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference
between the Company’s closing stock price on the last trading day of 2006 and the exercise price, multiplied by
the number of in-the-money options) that would have been received by the option holders had all option holders
exercised their options on December 31, 2006. This amount changes based on the fair market value of the
Company’s common stock. Total intrinsic value of options exercised for the years ended December 31, 2004,
2005 and 2006 was $33.6 million, $24.0 million and $29.2 million, respectively.
Cash received from option exercises and purchases under the ESPP for the years ended December 31, 2004,
2005 and 2006 was $6.0 million, $12.9 million and $12.1 million, respectively.
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