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VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
VMware Employee Stock Purchase Plan
InJune2007,VMwareadoptedits2007EmployeeStockPurchasePlan(the“ESPP”),whichisintendedtobequalifiedunderSection423oftheInternal
RevenueCode.AsofDecember31,2015,thenumberofauthorizedsharesundertheESPPwasatotalof14.3millionshares.UndertheESPP,eligibleVMware
employeesaregrantedoptionstopurchasesharesatthelowerof85%ofthefairmarketvalueofthestockatthetimeofgrantor85%ofthefairmarketvalueat
thetimeofexercise.OptionstopurchasesharesaregenerallygrantedtwiceyearlyonFebruary1andAugust1andexercisableonthesucceedingJuly31and
January31,respectively,ofeachyear.AsofDecember31,2015,4.7millionsharesofVMwareClassAcommonstockwereavailableforissuanceunderthe
ESPP.
ThefollowingtablesummarizesESPPactivityduringtheyearsendedDecember31,2015,2014and2013(cashproceedsinmillions,sharesinthousands):
For the Year Ended December 31,
2015
2014
2013
Cashproceeds $ 98
$ 80
$ 76
ClassAcommonsharespurchased 1,495
1,099
1,154
Weighted-averagepricepershare $ 65.54
$ 73.21
$ 65.97
AsofDecember31,2015,$48millionofESPPwithholdingswererecordedasaliabilityinaccruedexpensesandotherontheconsolidatedbalancesheetsfor
thepurchasethatoccurredduringJanuary2016.
VMware and EMC Stock Options
PriortotheadoptionofVMware’s2007PlaninJune2007,eligibleVMwareemployeesparticipatedinEMC’sequityplans.InAugust2007,VMwareand
EMCcompletedanexchangeofferenablingeligibleVMwareemployeestoexchangetheiroptionstoacquireEMCcommonstockforoptionstoacquireVMware
ClassAcommonstock.VMwareemployeeswhodidnotelecttoexchangetheirEMCoptionsforoptionstopurchaseVMwareClassAcommonstockcontinueto
havetheirexistinggrantsgovernedunderEMC’sstockplans.Additionally,ifanemployeetransferredfromEMCtoVMwarehadoutstandingEMCoptionsatthe
dateoftransfer,theemployeetypicallyretainstheirEMCawardwhichalsocontinuestobegovernedundertheEMCstockplan.Similarly,ifanemployee
transferredfromVMwaretoEMChadoutstandingVMwareoptionsatthedateoftransfer,theemployeetypicallyretainstheirVMwareawardwhichcontinuesto
begovernedundertheVMwarestockplan.
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