Amazon.com 2005 Annual Report Download - page 82

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes our stock option activity:
Number of
Options
(in millions)
Weighted Avg
Exercise Price
Outstanding at December 31, 2002 ....................... 42.0 $11.91
Options granted .................................. 0.1 24.81
Options exercised ................................ (2.1) 13.82
Options terminated ............................... (15.0) 10.88
Outstanding at December 31, 2003 ....................... 25.0 $12.46
Options granted .................................. 0.1 33.80
Options exercised ................................ (1.2) 15.66
Options terminated ............................... (5.5) 10.78
Outstanding at December 31, 2004 ....................... 18.4 $12.98
Options granted .................................. 0.1 36.84
Options exercised ................................ (1.1) 10.40
Options terminated ............................... (5.6) 12.00
Outstanding at December 31, 2005 ....................... 11.8 $14.28
The following table summarizes information about stock options outstanding at December 31, 2005:
Stock Options Outstanding Stock Options Vested
Range of
Exercise Prices
Number of
Awards
(in millions)
Remaining
Life (yrs)
Weighted
Avg
Exercise
Price
Number of
Awards
(in millions)
Weighted
Avg
Exercise
Price
$ 0.08 – $ 10.00 8.7 5.2 $ 7.54 4.0 $ 7.03
10.01 – 30.00 1.8 5.3 17.39 1.1 17.72
30.01 – 50.00 0.5 6.2 38.40 0.3 38.02
50.01 – 70.00 0.2 3.3 59.75 0.2 59.80
70.01 – 104.97 0.6 3.3 72.12 0.4 72.57
$ 0.08 – $104.97 11.8 5.1 $14.28 6.0 $16.09
The aggregate intrinsic value of stock options outstanding at 2005 was $554 million, of which $294 million
relates to vested awards. Intrinsic value for stock options is calculated based on the difference between the
exercise price of the underlying awards and the quoted price of our common stock as of the reporting date.
As matching contributions under our 401(k) savings plan, we granted 0.09 million and 0.07 million shares
of common stock for years ended 2005 and 2004. Shares granted as matching contributions under our 401(k)
plan and shares of restricted stock are included in outstanding common stock when issued.
As of December 31, 2005, there was $169 million of total unrecognized compensation cost, net of estimated
forfeitures of $106 million, related to unvested stock-based compensation arrangements. This compensation is
recognized on an accelerated basis resulting in approximately half of the compensation expected to be expensed
in the next twelve months, and a weighted average recognition period of 1.4 years.
During 2005 and 2004, the fair value of restricted stock units and restricted stock awards vested was
$50 million and $44 million, and the intrinsic value of options exercised was $180 million and $217 million.
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