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VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
CashproceedsfromtheexerciseofEMCstockoptionspaidtoEMCwere$3million,$8millionand$11millionfortheyearsendedDecember31,2015,
2014and2013,respectively.Thepre-taxintrinsicvalueofEMCstockoptionsheldbyVMwareemployeesthatwereexercisedduringtheyearsended
December31,2015,2014and2013were$3million,$7millionand$8million,respectively.
VMware Restricted Stock
VMware'srestrictedstockprimarilyconsistsofrestrictedstockunit(“RSU”)awardsgrantedtoemployees.RSUsarevaluedbasedonVMware'sstockprice
onthedateofgrant.ThesharesunderlyingtheRSUawardsarenotissueduntiltheRSUsvest.Uponvesting,eachRSUconvertsintooneshareofVMwareClass
Acommonstock.
VMware'srestrictedstockalsoincludesperformancestockunit(“PSU”)awards,whichhavebeengrantedtocertainofVMware’sexecutivesandemployees.
ThePSUawardsincludeperformanceconditionsand,incertaincases,atime-basedvestingcomponent.Uponvesting,eachPSUawardwillconvertinto
VMware’sClassAcommonstockatvariousratiosrangingfrom0.5to2.0sharesperPSU,dependinguponthedegreeofachievementoftheperformancetarget
designatedbyeachindividualaward.Ifminimumperformancethresholdsarenotachieved,thennoshareswillbeissued.AsofDecember31,2015,thenumberof
PSUsoutstandingincludescertainPSUsforwhichperformanceconditionshaveconcludedbutthatremainsubjecttocertainserviceconditions.
ThefollowingtablesummarizesrestrictedstockactivitysinceJanuary1,2013(unitsinthousands):
Number of Units
Weighted-
Average Grant
Date Fair
Value
(per unit)
Outstanding,January1,2013 12,170
$ 91.93
Granted 7,391
76.20
Vested (4,399)
83.21
Forfeited (2,306)
90.55
Outstanding,December31,2013 12,856
85.85
Granted 6,189
92.82
Vested (5,166)
86.27
Forfeited (1,294)
88.03
Outstanding,December31,2014 12,585
88.88
Granted 12,787
72.42
Vested (4,855)
90.72
Forfeited (1,824)
87.39
Outstanding,December31,2015 18,693
77.29
AsofDecember31,2015,the18.7millionunitsoutstandingincluded18.2millionofRSUsand0.5millionofPSUs.TheabovetableincludesRSUsissued
foroutstandingunvestedRSUsinconnectionwithbusinesscombinations.
AsofDecember31,2015,restrictedstockthatisexpectedtovestwasasfollows:
NumberofUnits
(inthousands)
WeightedAverage
RemainingTerm(in
years)
AggregateIntrinsicValue
(1)
(inmillions)
Expectedtovest,December31,2015 16,206
2.47
$ 917
(1)Theaggregateintrinsicvaluesrepresentthetotalpre-taxintrinsicvaluesbasedonVMware'sclosingstockpriceof$56.57asofDecember31,2015,whichwouldhavebeenreceivedby
theRSUholdershadtheRSUsbeenissuedasofDecember31,2015.
ThetotalfairvalueofVMwarerestrictedstockthatvestedduringtheyearsendedDecember31,2015,2014and2013was$379million,$480millionand
$340million,respectively.AsofDecember31,2015,restrictedstockrepresenting18.7millionsharesofVMware’sClassAcommonstockwereoutstanding,
withanaggregateintrinsicvalueof$1,057millionbasedonVMware’sclosingpriceasofDecember31,2015.
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