eBay 2006 Annual Report Download - page 106

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Stock Option Activity
The following table summarizes stock option activity under our equity incentive plans as of and for the year
ended December 31, 2006 (in thousands, except per share amounts):
Shares
Weighted Average
Exercise Price
Weighted Average
Remaining
Contractual Term
(in years)
Aggregate
Intrinsic Value
Outstanding at January 1, 2006 ............ 129,109 $28.19
Granted and assumed ................... 38,834 35.07
Exercised ............................ (16,233) 16.58
Forfeited/expired/cancelled ............... (15,096) 37.17
Outstanding at December 31, 2006 ......... 136,614 30.53 6.62 $644,148
Vested and expected to vest at December 31,
2006 ............................. 128,697 30.17 6.59 637,311
Options exercisable at December 31, 2006 . . . 75,569 26.23 6.23 576,802
The aggregate intrinsic value was calculated as the difference between the exercise price of the underlying
awards and the quoted price of our common stock for the 61.6 million options that were in-the-money at
December 31, 2006.
The weighted average grant-date fair value of options granted during the years 2004, 2005 and 2006 was
$12.12, $11.70 and $10.47, respectively. During the years 2004, 2005 and 2006, the aggregate intrinsic value of
options exercised under our equity incentive plans was $1,017.3 million, $719.2 million and $283.6 million,
respectively, determined as of the date of option exercise. As of December 31, 2006, there was approximately
$395.1 million of total unrecognized compensation cost related to stock options granted under our equity incentive
plans. That cost is expected to be recognized over a weighted-average period of three years.
Restricted Stock Units and Nonvested Shares
Restricted stock units and nonvested shares were awarded to employees under our equity incentive plans. In
general, restricted stock units and nonvested shares vest over three to five years and are subject to the employees’
continuing service to the company. The cost of restricted stock units and nonvested shares is determined using the
fair value of our common stock on the date of the grant. The compensation expense is recognized over the vesting
period.
102
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)