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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 primarily 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.
The following table summarizes VMware’s restricted stock activity since January 1, 2009 (shares in thousands):
The total fair value of VMware restricted stock-based awards that vested in the years ended December 31, 2011 , 2010 and 2009 was
$356.1
million , $258.0 million and $88.8 million , respectively. As of December 31, 2011 , restricted stock unit awards and other restricted stock
representing 9.5 million shares of VMware were outstanding, with an aggregate intrinsic value of $793.6 million based on VMware's closing
share price as of December 31, 2011 . These shares are scheduled to vest through 2015 .
The VMware restricted stock unit awards are valued based on the VMware stock price on the date of grant. Shares underlying restricted
stock unit awards are not issued until the restricted stock units vest. The majority of VMware’s restricted stock unit awards have pro rata vesting
over three or four years.
VMware Shares Repurchased for Tax Withholdings
During the years ended December 31, 2011 , 2010 and 2009 , VMware repurchased or withheld and retired 1.3 million shares, 1.3 million
shares and 1.0 million shares of Class A common stock for $121.9 million , $87.1 million and $31.5 million , respectively, to cover tax
withholding obligations. These amounts differ from the amounts of cash remitted for tax withholding obligations on the consolidated statement
with the net share settlement upon the vesting of restricted stock and restricted stock units during the period. The value of repurchased or
withheld shares, including restricted stock units, was classified as a reduction to additional paid-in capital as of December 31, 2011 , 2010 and
2009 .
87
Number of
Shares
Weighted-
Average Grant
Date Fair
Value
(per share)
Outstanding, January 1, 2009
7,626
$
32.35
Granted
5,200
33.63
Vested
(2,881
)
31.31
Forfeited
(734
)
34.81
Outstanding, December 31, 2009
9,211
33.21
Granted
4,933
74.87
Vested
(3,688
)
32.38
Forfeited
(704
)
39.05
Outstanding, December 31, 2010
9,752
54.17
Granted
4,548
91.51
Vested
(3,853
)
48.47
Forfeited
(907
)
64.70
Outstanding, December 31, 2011
9,540
72.74