VMware 2014 Annual Report Download - page 94

Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
VMware Equity Plan
In June 2007, VMware adopted its 2007 Equity and Incentive Plan (the “2007 Plan”). In May 2009, VMware amended its 2007 Plan to
increase the number of shares available for issuance by 20.0 million shares for total shares available for issuance of 100.0 million . In May 2013,
VMware further amended the 2007 Plan to increase the number of shares available for issuance by 13.3 million shares. The number of shares
underlying outstanding equity awards that VMware assumes in the course of business acquisitions are also added to the 2007 Plan reserve on an
as-converted basis. VMware has assumed 4.2 million shares, which accordingly have been added to the 2007 Plan reserve.
Awards under the 2007 Plan may be in the form of stock options or other stock-
based awards, including awards of restricted stock units. The
exercise price for a stock option awarded under the 2007 Plan shall not be less than 100% of the fair market value of VMware Class A common
stock on the date of grant. Most options granted under the 2007 Plan vest 25% after the first year and then monthly thereafter over the following
three years and expire between six and seven years from the date of grant. Most restricted stock grants made under the 2007 Plan have a three -
year to
four -year period over which they vest and vest 25% the first year and then semi-annually thereafter. VMware’s Compensation and
Corporate Governance Committee determines the vesting schedule for all equity awards. VMware utilizes both authorized and unissued shares to
satisfy all shares issued under the 2007 Plan. At December 31, 2014 , there were an aggregate of 17.9 million shares of common stock available
for issuance pursuant to future grants under the 2007 Plan.
VMware Stock Repurchases
On January 27, 2015, VMware’s Board of Directors authorized the repurchase of up to an additional one billion dollars of VMware’s Class
A common stock through the end of 2017. Stock will be purchased from time to time, in the open market or through private transactions, subject
to market conditions. The new stock repurchase authorization is in addition to VMware’s ongoing one-billion-dollar stock repurchase program,
originally announced on August 6, 2014. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of
factors, including VMware’
s stock price, cash requirements for operations and business combinations, corporate and regulatory requirements and
other market and economic conditions. VMware is not obligated to purchase any shares under its stock repurchase programs. Purchases can be
discontinued at any time that VMware feels additional purchases are not warranted. All shares repurchased under VMware’s stock repurchase
programs are retired.
The following table summarizes stock repurchase authorizations during the years ended December 31, 2014 , 2013 and 2012 (amounts in
table in millions):
As of December 31, 2014 , the cumulative authorized amount remaining for repurchase was $960 million .
The following table summarizes stock repurchase activity during the years ended December 31, 2014 , 2013 and 2012 (aggregate purchase
price in millions, shares in thousands):
The amount of repurchased shares includes commissions and is classified as a reduction to additional paid-in capital.
89
Authorization Date
Amount Authorized Expiration Date Status
August 6, 2014 $1,000 December 31, 2016 Open
August 7, 2013
700 December 31, 2015 Completed in Q4'14
November 28, 2012 250 December 31, 2014 Completed in Q4'13
February 29, 2012
600 December 31, 2013 Completed in Q2'13
For the Year Ended December 31,
2014
2013 2012
Aggregate purchase price
$
700
$
508
$
467
Class A common shares repurchased
7,642
6,636
5,132
Weighted-average price per share
$
91.61
$
76.58
$
91.10