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TableofContents
VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
CashproceedsfromtheexerciseofEMCstockoptionspaidtoEMCwere$3million,$8millionand$11millionfortheyearsendedDecember31,2015,
2014and2013,respectively.Thepre-taxintrinsicvalueofEMCstockoptionsheldbyVMwareemployeesthatwereexercisedduringtheyearsended
December31,2015,2014and2013were$3million,$7millionand$8million,respectively.
VMware Restricted Stock
VMware'srestrictedstockprimarilyconsistsofrestrictedstockunit(“RSU”)awardsgrantedtoemployees.RSUsarevaluedbasedonVMware'sstockprice
onthedateofgrant.ThesharesunderlyingtheRSUawardsarenotissueduntiltheRSUsvest.Uponvesting,eachRSUconvertsintooneshareofVMwareClass
Acommonstock.
VMware'srestrictedstockalsoincludesperformancestockunit(“PSU”)awards,whichhavebeengrantedtocertainofVMware’sexecutivesandemployees.
ThePSUawardsincludeperformanceconditionsand,incertaincases,atime-basedvestingcomponent.Uponvesting,eachPSUawardwillconvertinto
VMware’sClassAcommonstockatvariousratiosrangingfrom0.5to2.0sharesperPSU,dependinguponthedegreeofachievementoftheperformancetarget
designatedbyeachindividualaward.Ifminimumperformancethresholdsarenotachieved,thennoshareswillbeissued.AsofDecember31,2015,thenumberof
PSUsoutstandingincludescertainPSUsforwhichperformanceconditionshaveconcludedbutthatremainsubjecttocertainserviceconditions.
ThefollowingtablesummarizesrestrictedstockactivitysinceJanuary1,2013(unitsinthousands):
Number of Units
Weighted-
Average Grant
Date Fair
Value
(per unit)
Outstanding,January1,2013 12,170
$ 91.93
Granted 7,391
76.20
Vested (4,399)
83.21
Forfeited (2,306)
90.55
Outstanding,December31,2013 12,856
85.85
Granted 6,189
92.82
Vested (5,166)
86.27
Forfeited (1,294)
88.03
Outstanding,December31,2014 12,585
88.88
Granted 12,787
72.42
Vested (4,855)
90.72
Forfeited (1,824)
87.39
Outstanding,December31,2015 18,693
77.29
AsofDecember31,2015,the18.7millionunitsoutstandingincluded18.2millionofRSUsand0.5millionofPSUs.TheabovetableincludesRSUsissued
foroutstandingunvestedRSUsinconnectionwithbusinesscombinations.
AsofDecember31,2015,restrictedstockthatisexpectedtovestwasasfollows:
NumberofUnits
(inthousands)
WeightedAverage
RemainingTerm(in
years)
AggregateIntrinsicValue
(1)
(inmillions)
Expectedtovest,December31,2015 16,206
2.47
$ 917
(1)Theaggregateintrinsicvaluesrepresentthetotalpre-taxintrinsicvaluesbasedonVMware'sclosingstockpriceof$56.57asofDecember31,2015,whichwouldhavebeenreceivedby
theRSUholdershadtheRSUsbeenissuedasofDecember31,2015.
ThetotalfairvalueofVMwarerestrictedstockthatvestedduringtheyearsendedDecember31,2015,2014and2013was$379million,$480millionand
$340million,respectively.AsofDecember31,2015,restrictedstockrepresenting18.7millionsharesofVMware’sClassAcommonstockwereoutstanding,
withanaggregateintrinsicvalueof$1,057millionbasedonVMware’sclosingpriceasofDecember31,2015.
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