Amazon.com 2007 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2007 Amazon.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

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 options outstanding have a weighted average exercise life of 3.5 years, with a weighted average
exercise price of $17.46.
Stock Award Activity
We granted stock awards, which consist primarily of restricted stock units, representing 7.6 million,
9.1 million, and 6.0 million shares of common stock during 2007, 2006, and 2005 with a per share weighted
average fair value of $47.04, $36.48, and $36.50.
Common shares underlying outstanding stock awards were as follows:
Year Ended December 31,
2007 2006
(in millions)
Restricted stock units ........................................... 16.3 14.5
Stock options .................................................. 1.9 7.4
Total outstanding stock awards ................................ 18.2 21.9
Common shares outstanding (which includes restricted stock), plus shares underlying outstanding stock
options and restricted stock units totaled 435 million, 436 million, and 438 million at December 31, 2007, 2006
and 2005. 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 in both 2007 and 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.
The following summarizes our restricted stock unit activity (in millions):
Number of Units
Outstanding at January 1, 2005 ........................................... 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
Units granted ..................................................... 7.6
Units vested ...................................................... (3.3)
Units cancelled .................................................... (2.5)
Outstanding at December 31, 2007 ........................................ 16.3
67