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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Employee Stock Purchase Plan
Under our 1989 Employee Stock Purchase Plan (the "1989 Plan"), eligible employees may purchase shares of common stock through payroll
deductions at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to
purchase shares are granted twice yearly, on January 1 and July 1, and are exercisable on the succeeding June 30 or December 31. There are 98.0 million
shares available for grant. In 2006, 2005 and 2004, 11.5 million shares, 8.7 million shares and 9.8 million shares, respectively, were purchased under the 1989
Plan at a weighted average purchase price per share of $9.32, $11.61 and $9.58, respectively. Total cash proceeds from the purchase of shares under the 1989
Plan in 2006, 2005 and 2004 were $107.6 million, $100.9 million and $93.5 million, respectively.
Stock Options
The following tables summarize our option activity under all equity plans in 2006, 2005 and 2004 (shares in thousands):
Number of
Shares
Wtd. Avg.
Exercise
Price
Outstanding, January 1, 2004 254,574 $ 18.56
Options granted relating to business acquisitions 6,559 1.82
Granted 46,402 12.69
Forfeited (7,090) 15.61
Expired (2,798) 40.06
Exercised (22,306) 6.14
Outstanding, December 31, 2004 275,341 18.02
Options granted relating to business acquisitions 7,985 5.15
Granted 51,442 14.34
Forfeited (8,443) 14.18
Expired (4,997) 38.28
Exercised (25,078) 6.74
Outstanding, December 31, 2005 296,250 17.78
Options granted relating to business acquisitions 16,393 5.70
Granted 32,423 10.98
Forfeited (11,162) 12.57
Expired (7,480) 29.06
Exercised (23,240) 6.48
Outstanding, December 31, 2006 303,184 $ 17.19
The total pre-tax intrinsic values of options exercised in 2006, 2005 and 2004 were $151.6 million, $174.0 million and $163.4 million, respectively.
Cash proceeds from the exercise of stock options were $150.2 million, $162.4 million and $136.5 million in 2006, 2005 and 2004, respectively. Income tax
benefits realized from the exercise of stock options in 2006, 2005 and 2004 were $47.5 million, $52.3 million and $46.2 million, respectively.
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