Oracle 2008 Annual Report Download - page 114

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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2009
In connection with certain of our acquisitions, including BEA, PeopleSoft, Siebel and Hyperion, we assumed
all of the outstanding stock options and other stock awards of each acquiree’s respective stock plans. These
stock options and other stock awards generally retain all of the rights, terms and conditions of the respective
plans under which they were originally granted. As of May 31, 2009, options to purchase 53 million shares of
common stock and 1 million shares of restricted stock were outstanding under these plans.
The following table summarizes stock option activity for our last three fiscal years ended May 31, 2009:
Options Outstanding
Weighted
Shares Under Average
(in millions, except exercise price) Option Exercise Price
Balance, May 31, 2006 473 $ 13.25
Granted 61 $ 14.81
Assumed 25 $ 11.27
Exercised (106) $ 8.22
Canceled (19) $ 34.57
Balance, May 31, 2007 434 $ 13.65
Granted 61 $ 20.49
Assumed 36 $ 17.24
Exercised (135) $ 9.12
Canceled (18) $ 20.83
Balance, May 31, 2008 378 $ 16.37
Granted 69 $ 20.53
Assumed 1 $ 6.54
Exercised (76) $ 9.31
Canceled (13) $ 25.14
Balance, May 31, 2009 359 $ 18.32
Options outstanding that have vested and that are expected to vest as of May 31, 2009 are as follows:
Weighted In-the-Money
Average Options as of Aggregate
Outstanding Weighted Remaining May 31, Intrinsic
Options Average Contract Term 2009 Value(1)
(in millions) Exercise Price (in years) (in millions) (in millions)
Vested 209 $ 18.04 3.97 149 $ 1,065
Expected to vest(2) 136 $ 18.60 8.13 43 236
Total 345 $ 18.26 5.62 192 $ 1,301
(1) The aggregate intrinsic value was calculated based on the gross difference between our closing stock price on May 31,
2009 of $19.59 and the exercise prices for all in-the-money options outstanding, excluding tax effects.
(2) The unrecognized compensation expense calculated under the fair value method for shares expected to vest (unvested
shares net of expected forfeitures) as of May 31, 2009 was approximately $631 million and is expected to be
recognized over a weighted average period of 2.65 years. Approximately 14 million shares outstanding as of May 31,
2009 are not expected to vest.
106
Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠