eBay 2013 Annual Report Download - page 135

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Deferred Stock Units
Beginning with the 2011 annual meeting of stockholders, we have 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. In addition, new directors who are not employees of the company or its subsidiaries or affiliates receive a one-time
grant of deferrred stock units equal to the result of dividing $150,000 by the fair market value of our common stock on the date of grant. Each
deferred stock unit constitutes an unfunded and unsecured right to receive one share of our common stock (or, with respect to deferred stock
units granted prior to August 1, 2013, 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. Following the termination of a non-employee director's service on the Board of Directors,
deferred stock units granted prior to August 1, 2013 are payable in stock or cash (at our election), while deferred stock units granted on or after
August 1, 2013 are payable solely in stock. As of December 31, 2013 , there were approximately 303,339 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, 2013 :
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, 2013 , options to purchase 12 million shares of our common stock were in-the-money.
The weighted average grant-date fair value of options granted during the years 2013 , 2012 and 2011 was $15.39 , $11.21 and $9.87 ,
respectively. During the years 2013 , 2012 and 2011 , the aggregate intrinsic value of options exercised under our equity incentive plans was
$292 million , $276 million and $129 million , respectively, determined as of the date of option exercise.
F-35
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, 2013
24
$
27.14
Granted and assumed
2
$
55.27
Exercised
(11
)
$
27.07
Forfeited/expired/canceled
(1
)
$
31.96
Outstanding at December 31, 2013
14
$
29.79
3.54
$
345
Expected to vest
13
$
29.37
3.48
$
340
Options exercisable
9
$
25.65
2.84
$
271