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Table of Contents
VMWARE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes restricted stock activity since January 1, 2007 for VMware and EMC restricted stock (shares in
thousands):
The total fair value of VMware 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 VMware 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.
The total fair value of EMC restricted stock granted to VMware employees that vested in the years ended December 31, 2009, 2008 and
2007 was $1.2 million, $18.2 million and $39.6 million, respectively.
The EMC restricted stock awards have had various vesting terms, including pro rata vesting over three years and cliff vesting at the end of
five years from the date of grant with acceleration in each of the first three or four years for achieving specified performance criteria.
Shares Repurchased for Tax Withholdings
In 2009 and 2008, VMware repurchased 1,029,581 shares and 826,731 shares of Class A common stock for $31.5 million and $44.5
million, respectively, to cover tax withholding obligations. Pursuant to the respective agreements, these shares were repurchased in conjunction
with the net share settlement upon the vesting of restricted stock and restricted stock units during the period. The amount of repurchased shares
was recorded as a reduction to retained earnings as of December 31, 2009 and 2008. In 2007, no shares were repurchased for tax withholdings.
97
VMware Restricted Stock
EMC Restricted Stock
Number of
Shares
Weighted
-
Average Grant
Date Fair
Value
(per share)
Number of
Shares
Weighted
-
Average Grant
Date Fair
Value
(per share)
Outstanding, January 1, 2007
—
$
—
8,813
$
13.34
Granted
596
39.99
48
13.93
Exchanged from EMC restricted stock
2,872
21.48
(4,697
)
13.14
Exercised stock options, subject to repurchase
120
23.00
—
—
Vested
(5
)
20.24
(2,661
)
13.47
Forfeited
(18
)
20.19
(221
)
13.72
Outstanding, December 31, 2007
3,565
24.64
1,282
13.72
Granted
6,619
35.14
—
—
Vested
(2,153
)
22.58
(1,144
)
13.91
Forfeited
(405
)
61.90
(22
)
12.35
Outstanding, December 31, 2008
7,626
32.35
116
12.16
Restricted stock relating to employees transferred from EMC
—
—
33
13.49
Granted
5,200
33.63
—
—
Vested
(2,881
)
31.31
(89
)
12.20
Forfeited
(734
)
34.81
(18
)
12.28
Outstanding, December 31, 2009
9,211
33.21
42
13.07