EMC 2008 Annual Report Download - page 100

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
been received by the option holders had all in-the-money options been exercised as of that date. The total pre-tax intrinsic values of options exercised in 2008,
2007 and 2006 were $77.2 million, $587.4 million and $151.6 million, respectively. Cash proceeds from the exercise of stock options were $118.7 million,
$661.6 million and $150.2 million in 2008, 2007 and 2006, respectively. Income tax benefits realized from the exercise of stock options in 2008, 2007 and
2006 were $105.0 million, $160.7 million and $47.5 million, respectively.
EMC Information Infrastructure Restricted Stock and Restricted Stock Units
The following table summarizes our restricted stock and restricted stock unit activity in 2008, 2007 and 2006 (shares in thousands):
Number of
Shares
Weighted Average
Grant Date
Fair Value
Restricted stock and restricted stock units at January 1, 2006 25,291 $ 13.79
Granted 8,392 11.40
Vested (4,538) 13.24
Forfeited (1,244) 9.36
Outstanding, December 31, 2006 27,901 13.05
Granted 9,358 19.05
Vested (7,158) 13.17
Forfeited (1,237) 13.16
Exchanged to VMware awards (4,697) 13.14
Outstanding, December 31, 2007 24,167 15.30
Granted 12,865 15.07
Vested (7,113) 14.05
Forfeited (1,017) 16.12
Restricted stock and restricted stock units at December 31, 2008 28,902 $ 15.49
The total fair values of restricted stock and restricted stock units that vested in 2008, 2007 and 2006 were $105.7 million, $105.2 million and
$57.5 million, respectively.
Our restricted stock awards are valued based on our stock price on the grant date. Our restricted stock awards have various vesting terms from the date of
grant, including pro rata vesting over three or four years, cliff vesting at the end of three or five years with acceleration for achieving specified performance
criteria and vesting on various dates contingent on achieving specified performance criteria. For awards with performance conditions, management evaluates
the criteria in each grant to determine the probability that the performance condition will be achieved.
As of December 31, 2008, 28.9 million shares of restricted stock and restricted stock units were outstanding and unvested, with an aggregate intrinsic
value of $302.6 million. These shares and units are scheduled to vest through 2013. Of the total shares of restricted stock and restricted stock units
outstanding, 21.1 million shares and units will vest upon fulfilling service conditions, of which vesting for 10.9 million shares and units will accelerate upon
achieving performance conditions. The remaining 7.8 million shares and units will vest only if certain performance conditions are achieved.
VMware Equity Plans
In June 2007, VMware adopted its 2007 Equity and Incentive Plan (the "2007 Plan"). Awards under the 2007 Plan may be in the form of stock options or
other stock-based awards, including awards of restricted stock. The maximum number of shares of the VMware Class A common stock reserved for the grant
or settlement of awards under the 2007 Plan is 80.0 million. The exercise price for a stock option awarded under the 2007 Plan shall not be less than 100% of
the fair market value of VMware Class A common stock on the date of grant. Most options granted under the 2007 Plan vest 25% after the first year and then
monthly thereafter over the following three years. All options granted pursuant to the 2007 Plan expire between six and seven years from the date of grant.
Most restricted stock awards granted under the 2007 Plan have a
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