Oracle 2011 Annual Report Download - page 122

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ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
The following table summarizes stock option activity for our last three fiscal years ended May 31, 2011:
Options Outstanding
Weighted
Shares Under Average
(in millions, except exercise price) Option Exercise Price
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
Granted ......................................................... 72 $ 21.23
Assumed ........................................................ 23 $ 55.77
Exercised ........................................................ (60) $ 14.03
Canceled ........................................................ (42) $ 43.93
Balance, May 31, 2010 ................................................. 352 $ 18.84
Granted ......................................................... 110 $ 22.58
Assumed ........................................................ 1 $ 16.38
Exercised ........................................................ (78) $ 16.73
Canceled ........................................................ (31) $ 29.17
Balance, May 31, 2011 ................................................. 354 $ 19.53
Options outstanding that have vested and that are expected to vest as of May 31, 2011 are as follows:
Weighted
Weighted Average In-the-Money Aggregate
Outstanding Average Remaining Options as of Intrinsic
Options Exercise Contract Term May 31, 2011 Value(1)
(in millions) Price (in years) (in millions) (in millions)
Vested .............................. 166 $ 16.83 4.68 159 $ 2,948
Expected to vest(2) ..................... 170 $ 21.83 8.35 169 2,107
Total ........................... 336 $ 19.36 6.54 328 $ 5,055
(1) The aggregate intrinsic value was calculated based on the gross difference between our closing stock price on the last trading day of
fiscal 2011 of $34.22 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, 2011 was approximately $788 million and is expected to be recognized over a weighted average
period of 2.67 years. Approximately 18 million shares outstanding as of May 31, 2011 are not expected to vest.
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