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Table of Contents
VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table summarizes option activity since January 1, 2008 for VMware and EMC stock options (shares in thousands):
As of December 31, 2010, for the VMware stock options, the weighted-average remaining contractual term was 3.2 years and the
aggregate intrinsic value was $642.5 million for the 10.7 million exercisable shares. For the 25.6 million shares vested and expect to vest at
December 31, 2010, the weighted-average remaining contractual term was 3.8 years and the aggregate intrinsic value was $1,438.3 million.
These aggregate intrinsic values represent the total pre-tax intrinsic values based on VMware’s closing stock price of $88.91 as of December 31,
2010, which would have been received by the option holders had all in-the-money options been exercised as of that date.
As of December 31, 2010, for the EMC stock options, the weighted-average remaining contractual term was 4.9 years and the aggregate
intrinsic value was $14.3 million for the 1.4 million exercisable shares. For the 2.6 million shares vested and expected to vest at December 31,
2010, the weighted-average remaining contractual term was 5.9 years and the aggregate intrinsic value was $24.6 million. These aggregate
intrinsic values represent the total pre-tax intrinsic values based on EMC’s closing stock price of $22.90 as of December 31, 2010, which would
have been received by the option holders had all in-the-money options been exercised as of that date.
Cash proceeds from the exercise of VMware stock options for the years ended December 31, 2010, 2009 and 2008 were $386.1 million,
$209.4 million and $143.2 million, respectively. The options exercised in 2010,
100
VMware Stock Options
EMC Stock Options
Number of
Shares
Weighted
-
Average
Exercise Price
(per share)
Number of
Shares
Weighted
-
Average
Exercise Price
(per share)
Outstanding, January 1, 2008
45,339
$
26.76
2,755
$
12.22
Options relating to employees transferred from EMC
—
—
3,411
15.35
Granted
11,741
40.48
—
—
Forfeited
(8,033
)
51.74
(115
)
13.03
Expired
(37
)
24.26
(21
)
15.70
Exercised
(6,574
)
21.64
(295
)
6.49
Outstanding, December 31, 2008
42,436
26.54
5,735
14.35
Options relating to employees transferred from EMC
—
—
96
16.01
Granted
12,500
29.86
—
—
Forfeited
(3,736
)
28.11
(2,656
)
14.94
Expired
(177
)
45.24
(739
)
15.45
Exercised
(9,516
)
22.01
(438
)
10.71
Outstanding, December 31, 2009
41,507
28.34
1,998
14.05
Options relating to employees transferred from EMC
—
—
2,198
15.53
Granted
3,362
57.60
—
—
Forfeited
(2,220
)
30.78
(164
)
11.44
Expired
(151
)
83.86
(193
)
55.81
Exercised
(15,574
)
24.79
(1,175
)
10.53
Outstanding, December 31, 2010
26,924
33.54
2,664
13.93
Exercisable, December 31, 2010
10,706
29.75
1,434
13.94
Vested and expected to vest, December 31, 2010
25,639
33.27
2,581
13.95
(1)
VMware stock options: Includes options for 4,017 shares exchanged in the 2008 Exchange Offer.
(1)
(1)