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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2015
Options outstanding that have vested and that are expected to vest as of May 31, 2015 were as follows:
Restricted stock-based award activity and the number of restricted stock-based awards outstanding were not significant prior to fiscal 2015. The
following table summarizes restricted stock-based awards activity, including service-based awards and performance-based awards and including
awards granted pursuant to Oracle-based stock plans and stock plans assumed from our acquisitions for our fiscal year ended May 31, 2015:
The total grant date fair value of restricted stock-based awards that vested in fiscal 2015 was $28 million. As of May 31, 2015, total
unrecognized stock compensation expense related to non-vested restricted stock-
based awards was $774 million and is expected to be recognized
over the remaining weighted-average vesting period of 3.22 years.
In fiscal 2015, 3 million PSUs were granted which vest upon the attainment of certain performance metrics and service-based vesting. Based
upon actual attainment relative to the “target” performance metric, certain participants have the ability to be issued up to 150% of the target
number of PSUs originally granted, or to be issued no PSUs at all. As of May 31, 2015, no PSUs had vested and 3 million remained outstanding.
125
Outstanding
Options
(in millions)
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contract Term
(in years)
In
-
the
-
Money
Options as of
May 31, 2015
(in millions)
Aggregate
Intrinsic
Value
(in millions)
Vested
223
$
25.53
5.07
222
$
4,034
Expected to vest
175
$
32.17
7.77
175
1,986
Total
398
$
28.45
6.26
397
$
6,020
The aggregate intrinsic value was calculated based on the gross difference between our closing stock price on the last trading day of fiscal 2015 of $43.49 and the exercise prices for all
“
in
-
the
-
money
”
options outstanding, excluding tax effects.
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, 2015 was
approximately $804 million and is expected to be recognized over a weighted average period of 2.16 years. Approximately 15 million shares outstanding as of May 31, 2015 were not
expected to vest.
Restricted Stock
-
Based Awards Outstanding
(in millions, except fair value)
Number of
Shares
Weighted Average
Grant Date
Fair Value
Balance, May 31, 2014
1
$
35.29
Granted
28
$
40.73
Canceled
(1
)
$
39.52
Balance, May 31, 2015
28
$
40.63
(1)
(2)
(1)
(2)