EMC 2009 Annual Report Download - page 80

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Reclassification adjustments between other comprehensive loss and the income statement consist of the following (table in thousands):
Year Ended December 31,
2009 2008 2007
Realized gains (losses) on investments, net of taxes (benefit) of $7,911, $2,347 and $(3,823) $ 12,897 $ 4,212 $ (6,323)
Realized gains (losses) on derivatives, net of taxes (benefit) of $(736), $93 and $(1,045) (6,626) 834 (9,403)
EMC Preferred Stock
Our preferred stock may be issued from time to time in one or more series, with such terms as our Board of Directors may determine, without further
action by our shareholders.
P. Stock-Based Compensation
EMC Information Infrastructure Equity Plans
The EMC Corporation 2003 Stock Plan (the "2003 Plan") provides for the grant of stock options, stock appreciation rights, restricted stock and
restricted stock units. The exercise price for a stock option shall not be less than 100% of the fair market value of our common stock on the date of grant.
Options generally become exercisable in annual installments over a period of three to five years after the date of grant and expire ten years after the date of
grant. Incentive stock options will expire no later than ten years after the date of grant. Restricted stock is common stock that is subject to a risk of forfeiture
or other restrictions that will lapse upon satisfaction of specified conditions. Restricted stock units represent the right to receive shares of common stock in the
future, with the right to future delivery of the shares subject to a risk of forfeiture or other restrictions that will lapse upon satisfaction of specified conditions.
Grants of restricted stock awards or restricted stock units that vest only by the passage of time will not vest fully in less than three years after the date of grant,
except for grants to non-employee Directors that are not subject to this minimum three-year vesting requirement. The 2003 Plan allows us to grant up to
300.0 million shares of common stock. Beginning in May 2007, we started recognizing restricted stock awards and restricted stock units against the 2003 Plan
share reserve as two shares for every one share issued in connection with such awards.
In addition to the 2003 Plan, we have four other stock option plans (the "1985 Plan," the "1993 Plan," the "2001 Plan" and the "1992 Directors Plan").
In May 2007, these four plans were consolidated into the 2003 Plan such that all future grants will be granted under the 2003 Plan and shares that are not
issued as a result of cancellations, expirations or forfeitures, will become available for grant under the 2003 Plan.
A total of 862.4 million shares of common stock have been reserved for issuance under the above five plans. At December 31, 2009, there were an
aggregate of 60.8 million shares of common stock available for issuance pursuant to future grants under the 2003 Plan.
We have, in connection with the acquisition of various companies, assumed the stock option plans of these companies. We do not intend to make future
grants under any of such plans.
EMC Information Infrastructure 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 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. A total of 153.0 million shares of common stock have been reserved for issuance under the 1989 Plan.
In 2009, 2008 and 2007, 10.3 million shares, 11.7 million shares and 9.3 million shares, respectively, were purchased under the 1989 Plan at a weighted
average purchase price per share of $11.17, $10.49 and $12.95, respectively. Total cash proceeds from the purchase of shares under the 1989 Plan in 2009,
2008 and 2007 were $115.3 million, $122.4 million and $120.8 million, respectively. At December 31, 2009, there was an aggregate of 28.7 million shares of
common stock available for issuance pursuant to future grants under the 1989 Plan.
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