eBay 2013 Annual Report Download - page 136

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Restricted Stock Unit Activity
A summary of the status of restricted stock units ("RSU") granted (including performance-based restricted stock units that have been
earned) under our equity incentive plans as of December 31, 2013 and changes during the year ended December 31, 2013 is presented below:
During the years 2013 , 2012 and 2011 , the aggregate intrinsic value of restricted stock units vested under our equity incentive plans was
$813 million , $591 million and $466 million , respectively.
Stock-based Compensation Expense
The impact on our results of operations of recording stock-based compensation expense for years ended December 31, 2013 , 2012 and
2011 was as follows:
As of December 31, 2013 , there was approximately $1.0 billion of unearned stock-based compensation that will be expensed from 2014
through 2017. If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or
cancel all or a portion of the remaining unearned stock-based compensation expense. Future unearned stock-based compensation will increase to
the extent we grant additional equity awards, change the mix of grants between stock options and restricted stock units or assume unvested
equity awards in connection with acquisitions.
Stock Option Valuation Assumptions
We calculated the fair value of each stock option award on the date of grant using the Black-Scholes option pricing model. The following
weighted average assumptions were used for the years ended December 31, 2013 , 2012 and 2011 :
F-36
Units
Weighted Average
Grant-Date
Fair Value
(per share)
(In millions, except per share amounts)
Outstanding at January 1, 2013
39
$
31.35
Awarded and assumed
14
$
55.21
Vested
(15
)
$
27.79
Forfeited
(4
)
$
37.83
Outstanding at December 31, 2013
34
$
42.32
Expected to vest at December 31, 2013
30
Year Ended December 31,
2013
2012
2011
(In millions)
Cost of net revenues
$
79
$
55
$
56
Sales and marketing
159
135
132
Product development
187
138
123
General and administrative
184
160
147
Total stock-based compensation expense
$
609
$
488
$
458
Capitalized in product development
$
15
$
19
$
17
Year Ended December 31,
2013
2012
2011
Risk-free interest rate
0.6
%
0.7
%
1.2
%
Expected life (in years)
4.1
4.0
3.8
Dividend yield —
%
—
%
—
%
Expected volatility
34
%
38
%
38
%