eBay 2012 Annual Report Download - page 132

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Deferred Stock Units
Since December 31, 2002, we have granted deferred stock units to non-employee directors (other than Pierre Omidyar) elected to our
Board of Directors with each new director receiving a one-time grant of deferred stock units equal to the result of dividing $150,000 by the fair
market value of our common stock on the date of grant. Beginning with our 2008 annual meeting of stockholders, we granted deferred stock
units to each non-employee director (other than Mr. Omidyar) at the time of our annual meeting of stockholders equal to the result of dividing
$110,000 by the fair market value of our common stock on the date of grant. Beginning with the 2011 annual meeting of stockholders, we
granted deferred stock units to each non-employee director (other than Mr. Omidyar) at the time of our annual meeting of stockholders equal to
the result of dividing $220,000 by the fair market value of our common stock on the date of grant. Each deferred stock unit constitutes an
unfunded and unsecured promise by us to deliver one share of our common stock (or the equivalent value thereof in cash or property at our
election). Each deferred stock unit award granted to a new non-employee director upon election to the Board vests 25%
one year from the date of
grant, and at a rate of 2.08% per month thereafter. If the services of the director are terminated at any time, all rights to the unvested deferred
stock units will also terminate. In addition, directors may elect to receive, in lieu of annual retainer and committee chair fees and at the time
these fees would otherwise be payable (i.e., on a quarterly basis in arrears for services provided), fully vested deferred stock units with an initial
value equal to the amount based on the fair market value of common stock at the date of grant. Deferred stock units are payable following the
termination of a director's tenure as a director. As of December 31, 2012 , there were approximately 329,535 deferred stock units outstanding
included in our restricted stock unit activity below.
Stock Option Activity
The following table summarizes stock option activity under our equity incentive plans as of and for the year ended December 31, 2012 :
The aggregate intrinsic value of options was calculated as the difference between the exercise price of the underlying awards and the
quoted price of our common stock. At December 31, 2012 , options to purchase 24 million shares of common stock were in-the-money.
The weighted average grant-date fair value of options granted during the years 2012 , 2011 and 2010 was $11.21 , $9.87 and $6.77 ,
respectively. During the years 2012 , 2011 and 2010 , the aggregate intrinsic value of options exercised under our equity incentive plans was
$276 million , $129 million and $141 million , respectively, determined as of the date of option exercise.
F-36
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(In millions, except per share amounts and years)
Outstanding at January 1, 2012
40
$
25.84
Granted and assumed
2
$
36.76
Exercised
(15
)
$
24.45
Forfeited/expired/canceled
(3
)
$
31.26
Outstanding at December 31, 2012
24
$
27.14
3.59
$
577
Expected to vest
23
$
26.95
3.51
$
559
Options exercisable
16
$
25.81
2.78
$
412