Oracle 2006 Annual Report Download - page 99

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2007
granted at not less than fair market value, become exercisable over four years, and expire no more than ten
years from the date of grant. The Directors’ Plan provides for automatic grants of options to each
non-employee director upon first becoming a director and thereafter on an annual basis, as well as automatic
nondiscretionary grants for chairing certain Board committees. The Board has the discretion to replace any
automatic option grant under the Directors’ Plan with awards of restricted stock, restricted stock units or other
stock-based awards. The number of shares subject to any such stock award will be no more than the
equivalent value of the options, as determined on any reasonable basis by the Board, which would otherwise
have been granted under the applicable automatic option grant. The Board will determine the particular terms
of any such stock awards at the time of grant, but the terms will be consistent with those of options, as
described below, granted under the Directors’ Plan with respect to vesting or forfeiture schedules and
treatment on termination of status as a director. At May 31, 2007, options to purchase approximately
3 million shares of common stock were outstanding under the 1993 Directors’ Plan, of which less than
3 million were vested. Approximately 3 million shares are available for future option awards under this plan;
however, no more than 2 million shares may be used for grants other than options.
In connection with certain of our acquisitions, principally PeopleSoft, Siebel and Hyperion, we assumed all of
the outstanding stock options and restricted stock of the acquiree’s respective stock plans. These stock options
and restricted stock generally retain all of the rights, terms and conditions of the respective plans under which
options were originally granted. As of May 31, 2007, options to purchase 78 million shares of common stock
and 2 million shares of restricted stock were outstanding under these plans.
The following table summarizes stock options activity for our last three fiscal years ended May 31, 2007:
Options Outstanding
Weighted
Shares Under Average
(in millions, except exercise price) Option Exercise Price
Balance, May 31, 2004 440 $ 11.61
Granted 42 $ 10.39
Assumed in connection with acquisitions 97 $ 12.25
Exercised (71) $ 6.16
Canceled (39) $ 18.01
Balance, May 31, 2005 469 $ 11.92
Granted 68 $ 12.37
Assumed in connection with acquisitions 82 $ 17.22
Exercised (87) $ 6.56
Canceled (59) $ 16.64
Balance, May 31, 2006 473 $ 13.25
Granted 61 $ 14.81
Assumed in connection with acquisitions 25 $ 11.27
Exercised (106) $ 8.22
Canceled (19) $ 34.57
Balance, May 31, 2007 434 $ 13.65
The range of exercise prices for options outstanding at May 31, 2007 was $0.13 to $126.59. The range of
exercise prices for options is due to the fluctuating price of our stock over the period of the grants and from
the conversion of options assumed from acquisitions.
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Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠