VMware 2010 Annual Report Download - page 104

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Table of Contents
VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2009 and 2008 had a pre-tax intrinsic value of $678.8 million, $132.6 million and $219.6 million, respectively, and income tax benefits realized
from the exercise of stock options of $171.2 million, $47.1 million and $71.4 million, respectively.
The pre-tax intrinsic value of EMC options held by VMware employees that were exercised during the years ended December 31, 2010,
2009 and 2008 were $10.8 million, $2.3 million and $2.8 million, respectively. Cash proceeds from the exercise of these stock options paid to
EMC were $12.4 million, $4.7 million and $1.9 million for the years ended December 31, 2010, 2009 and 2008, respectively.
VMware Restricted Stock
VMware restricted stock primarily consists of restricted stock units granted to employees and also includes restricted stock awards and
other restricted stock. Other restricted stock includes shares issued in 2009 to certain employees of SpringSource who agreed to accept shares of
VMware Class A common stock subject to vesting restrictions in lieu of a portion of their cash merger proceeds. In addition, other restricted
stock includes options exercised prior to vesting by VMware’s non-employee directors. The exercise of those options prior to vesting resulted in
the outstanding shares being subject to repurchase and hence restricted until such time as the respective options vest. These options completed
vesting in 2010.
The following table summarizes VMware’s restricted stock activity since January 1, 2008 (shares in thousands):
The total fair value of VMware restricted stock-based awards that vested in the years ended December 31, 2010, 2009 and 2008 was
$258.0 million, $88.8 million and $116.3 million. As of December 31, 2010, restricted stock unit awards and other restricted stock representing
9.8 million shares of VMware were outstanding, with an aggregate intrinsic value of $867.1 million based on the closing share price as of
December 31, 2010. These shares are scheduled to vest through 2014.
101
Number of
Shares
Weighted
-
Average Grant
Date Fair
Value
(per share)
Outstanding, January 1, 2008
3,565
$
24.64
Granted
6,619
35.14
Vested
(2,153
)
22.58
Forfeited
(405
)
61.90
Outstanding, December 31, 2008
7,626
32.35
Restricted stock relating to employees transferred from EMC
—
—
Granted
5,200
33.63
Vested
(2,881
)
31.31
Forfeited
(734
)
34.81
Outstanding, December 31, 2009
9,211
33.21
Restricted stock relating to employees transferred from EMC
—
—
Granted
4,933
74.87
Vested
(3,688
)
32.38
Forfeited
(704
)
39.05
Outstanding, December 31, 2010
9,752
54.17