EMC 2011 Annual Report Download - page 86

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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.
The following table summarizes our restricted stock and restricted stock unit activity since January 1, 2009 (shares in thousands):
Number of
Shares
Weighted Average
Grant Date
Fair Value
Restricted stock and restricted stock units at January 1, 2009 28,902 $ 15.49
Granted 21,431 14.58
Vested (10,951) 14.83
Forfeited (2,019) 15.56
Outstanding, December 31, 2009 37,363 15.01
Granted 19,261 20.31
Vested (11,062) 15.09
Forfeited (2,185) 15.82
Outstanding, December 31, 2010 43,377 17.20
Granted 20,945 25.12
Vested (14,832) 16.44
Forfeited (3,959) 20.56
Restricted stock and restricted stock units at December 31, 2011 45,531 $ 21.10
The total intrinsic values of restricted stock and restricted stock units that vested in 2011, 2010 and 2009 were $371.1 million, $203.7 million and
$138.4 million, respectively. As of December 31, 2011, restricted stock and restricted stock units representing 45.5 million shares were outstanding and
unvested, with an aggregate intrinsic value of $980.7 million. These shares and units are scheduled to vest through 2016. Of the total shares of restricted stock
and restricted stock units outstanding, 40.2 million shares and units will vest upon fulfilling service conditions, of which vesting for 10.3 million shares and
units will accelerate upon achieving performance conditions. The remaining 5.3 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"). In May 2009, VMware amended its 2007 Plan to increase the
number of shares available for issuance by 20.0 million shares for total shares available for issuance of 100.0 million. Awards under the 2007 Plan may be in
the form of stock options or other stock-based awards, including awards of restricted stock units. 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 unit awards granted under the 2007 Plan have a three-year to four-year period over which they vest.
VMware's Compensation and Corporate Governance Committee determines the vesting schedule for all equity awards. VMware utilizes both authorized and
unissued shares to satisfy all shares issued under the 2007 Plan.
VMware Stock Repurchase Plan
In March 2010, VMware's Board of Directors approved a stock repurchase program, authorizing the purchase of up to $400.0 million of its Class A
common stock through the end of 2011. Purchases under the March 2010 authorization were completed in March 2011. In February 2011, a committee of
VMware's Board of Directors authorized the repurchase of up to an additional $550.0 million of VMware's Class A common stock through the end of 2012.
From time to time, subject to market conditions, stock was purchased pursuant to these programs in the open market or through private transactions as
permitted by securities laws and other legal requirements. In the year ended December 31, 2011, VMware repurchased and retired 6.0 million shares of its
Class A common stock at a weighted-average price of $88.37 per share for an aggregate purchase price of $526.2 million, including commissions. In the year
ended December 31, 2010, VMware
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