EMC 2011 Annual Report Download - page 87

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
repurchased and retired 4.9 million shares of its Class A common stock at a weighted-average price of $68.96 per share for an aggregate purchase price of
$338.5 million, including commissions. The amounts of repurchased shares were classified as a reduction to additional paid-in capital. VMware is not
obligated to purchase any shares under its stock repurchase programs. The timing of any repurchases and the actual number of shares repurchased will depend
on a variety of factors, including VMware's stock price, corporate and regulatory requirements and other market and economic conditions. Purchases can be
discontinued at any time that VMware feels additional purchases are not warranted. As of December 31, 2011, the authorized amount remaining for
repurchase was $85.3 million.
VMware Employee Stock Purchase Plan
In June 2007, VMware adopted its 2007 Employee Stock Purchase Plan (the "ESPP"), which is intended to be qualified under Section 423 of the
Internal Revenue Code. A total of 6.4 million shares of VMware Class A common stock were reserved for future issuance. Under the ESPP, eligible VMware
employees are granted options to purchase shares 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 generally granted twice yearly on February 1 and August 1 and exercisable on the succeeding July 31
and January 31, respectively, of each year. The following table summarizes ESPP activity in the years ended December 31, 2011, 2010 and 2009 (table in
thousands, except per share amounts):
For the Year Ended
December 31, 2011 December 31, 2010 December 31, 2009
Cash Proceeds $ 56,964 $ 45,162 $ 18,267
Class A common shares purchased 816 1,510 907
Weighted-average price per share $ 69.81 $ 29.90 $ 20.14
As of December 31, 2011, $31.5 million of ESPP withholdings were recorded as a liability on the consolidated balance sheet for the next purchase in
January 2012. As of December 31, 2010, $24.8 million of ESPP withholdings were recorded as a liability on the consolidated balance sheet for the purchase
in January 2011.
VMware Stock Options
The following table summarizes activity since January 1, 2009 for VMware employees in VMware stock options (shares in thousands):
Number of
Shares
Weighted Average
Exercise Price
(per share)
Outstanding, January 1, 2009 42,436 $ 26.54
Granted 12,500 29.86
Forfeited (3,736) 28.11
Expired (177) 45.24
Exercised (9,516) 22.01
Outstanding, December 31, 2009 41,507 28.34
Granted 3,362 57.60
Forfeited (2,220) 30.78
Expired (151) 83.86
Exercised (15,574) 24.79
Outstanding, December 31, 2010 26,924 33.54
Granted 171 5.68
Forfeited (1,011) 40.98
Expired (112) 101.66
Exercised (9,798) 28.64
Outstanding, December 31, 2011 16,174 35.27
Exercisable, December 31, 2011 9,863 32.75
Vested and expected to vest 15,808 $ 35.05
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