Amazon.com 2006 Annual Report Download - page 75

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Stock Award Plans
Employees vest in restricted stock unit awards and stock options over the corresponding service term,
generally between two and five years. Outstanding stock options generally have a term of 10 years from the date
of grant.
Stock Award Activity
We granted stock awards, which since October 2002 have consisted primarily of restricted stock units,
representing 9 million, 6 million, and 3 million shares of common stock during 2006, 2005, and 2004 with a per
share weighted average fair value of $36.48, $36.50, and $43.77.
Common shares underlying outstanding stock awards were as follows:
Year Ended December 31,
2006 2005
(in millions)
Stock options ............................................... 7.4 11.8
Restricted stock units ........................................ 14.5 9.9
Total outstanding stock awards ............................. 21.9 21.7
Common shares outstanding (which includes restricted stock), plus shares underlying outstanding stock
options and restricted stock units totaled 436 million, 438 million, and 434 million at December 31, 2006, 2005
and 2004. These totals include all stock-based awards outstanding, without regard for estimated forfeitures,
consisting of vested and unvested awards and in-the-money and out-of-the-money stock options. Common shares
outstanding decreased by 4 million shares in 2006, due to repurchases of common stock, offset by exercises of
stock options, vesting of restricted stock units, and matching contributions under our 401(k) savings plan.
Common shares outstanding increased by 6 million shares in 2005, due to exercises of stock options, vesting of
restricted stock units, and matching contributions under our 401(k) savings plan.
The following summarizes our restricted stock unit activity (in millions):
Number of Units
Outstanding at December 31, 2003 ................................ 4.4
Units granted ............................................. 3.3
Units vested .............................................. (0.8)
Units cancelled ............................................ (0.5)
Outstanding at December 31, 2004 ................................ 6.4
Units granted ............................................. 6.0
Units vested .............................................. (1.2)
Units cancelled ............................................ (1.3)
Outstanding at December 31, 2005 ................................ 9.9
Units granted ............................................. 9.1
Units vested .............................................. (1.7)
Units cancelled ............................................ (2.8)
Outstanding at December 31, 2006 ................................ 14.5
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