EMC 2009 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2009 EMC 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 144

  • 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
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The total fair value of restricted stock that vested in 2009, 2008 and 2007 was $88.8 million, $116.3 million and $0.6 million, respectively. As of
December 31, 2009, 9.2 million shares of VMware restricted stock were outstanding, with an aggregate intrinsic value of $389.4 million based on the closing
share price as of December 31, 2009. These shares are scheduled to vest through 2013.
The restricted stock unit awards are valued based on the VMware stock price on the date of grant. The majority of VMware's restricted stock awards
have pro rata vesting over three or four years.
Stock-Based Compensation Expense
The following tables summarize the components of total stock-based compensation expense included in our consolidated income statement in 2009,
2008 and 2007 (in thousands):
Year Ended December 31, 2009
Stock Options
Restricted
Stock
Total Stock-Based
Compensation
Cost of product sales $ 33,423 $ 15,836 $ 49,259
Cost of services 35,004 15,130 50,134
Research and development 118,875 95,679 214,554
Selling, general and administrative 189,154 102,605 291,759
Restructuring charges (1,015) (306) (1,321)
Stock-based compensation expense before income taxes 375,441 228,944 604,385
Income tax benefit 78,517 56,326 134,843
Total stock-based compensation, net of tax $ 296,924 $ 172,618 $ 469,542
Year Ended December 31, 2008
Stock Options
Restricted
Stock
Total Stock-Based
Compensation
Cost of product sales $ 23,092 $ 9,638 $ 32,730
Cost of services 35,350 12,046 47,396
Research and development 102,865 59,512 162,377
Selling, general and administrative 161,715 97,223 258,938
Restructuring charges 5,164 (1,740) 3,424
Stock-based compensation expense before income taxes 328,186 176,679 504,865
Income tax benefit 61,321 47,738 109,059
Total stock-based compensation, net of tax $ 266,865 $ 128,941 $ 395,806
Year Ended December 31, 2007
Stock Options
Restricted
Stock
Total Stock-Based
Compensation
Cost of product sales $ 22,886 $ 9,543 $ 32,429
Cost of services 20,493 4,303 24,796
Research and development 69,649 38,393 108,042
Selling, general and administrative 126,246 75,891 202,137
Restructuring charges 897 1,731 2,628
Stock-based compensation expense before income taxes 240,171 129,861 370,032
Income tax benefit 53,292 34,378 87,670
Total stock-based compensation, net of tax $ 186,879 $ 95,483 $ 282,362
Stock option expense includes $46.5 million, $52.2 million and $36.7 million of expense associated with our employee stock purchase plans for 2009,
2008 and 2007, respectively.
83