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Table of Contents
VMWARE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
VMware and EMC Stock Options
The following table summarizes option activity since January 1, 2007 for VMware and EMC stock options (shares in thousands):
As of December 31, 2009, for the VMware stock options, the weighted-average remaining contractual term was 3.9 years and the
aggregate intrinsic value was $237.7 million for the 13.4 million exercisable shares. For the 40.0 million shares vested and expect to vest at
December 31, 2009, the weighted-average remaining contractual term was 4.4 years and the aggregate intrinsic value was $625.3 million. These
aggregate intrinsic values represent the total pre-tax intrinsic values based on VMware’s closing stock price of $42.38 as of December 31, 2009,
which would have been received by the option holders had all in-the-money options been exercised as of that date.
As of December 31, 2009, for the EMC stock options, the weighted-average remaining contractual term was 4.6 years and the aggregate
intrinsic value was $8.1 million for the 1.3 million exercisable shares. For the 1.9 million shares vested and expected to vest at December 31,
2009, the weighted-average remaining contractual term was 5.3 years and the aggregate intrinsic value was $10.8 million. These aggregate
intrinsic values represent
95
VMware Stock Options
EMC Stock Options
Number of
Shares
Weighted
Average
Exercise Price
(per share)
Number of
Shares
Weighted-
Average
Exercise Price
(per share)
Outstanding, January 1, 2007
—
$
—
13,825
$
11.23
Options relating to employees transferred from EMC
—
—
678
21.21
Granted
39,271
27.88
879
13.91
Exchanged to VMware stock options
—
—
(
11,009
)
12.19
Exchanged from EMC stock options
6,732
19.94
—
—
Forfeited
(539
)
24.50
(410
)
12.65
Expired
(5
)
24.64
(24
)
12.66
Exercised
(120
)
23.00
(1,184
)
7.16
Outstanding, December 31, 2007
45,339
26.76
2,755
12.22
Options relating to employees transferred from EMC
—
—
3,411
15.35
Granted
11,741
40.48
—
—
Forfeited
(8,033
)
51.74
(115
)
13.03
Expired
(37
)
24.26
(21
)
15.70
Exercised
(6,574
)
21.64
(295
)
6.49
Outstanding, December 31, 2008
42,436
26.54
5,735
14.35
Options relating to employees transferred from EMC
—
—
96
16.01
Granted
12,500
29.86
—
—
Forfeited
(3,736
)
28.11
(2,656
)
14.94
Expired
(177
)
45.24
(739
)
15.45
Exercised
(9,516
)
22.01
(438
)
10.71
Outstanding, December 31, 2009
41,507
28.34
1,998
14.05
Exercisable, December 31, 2009
13,398
26.85
1,321
$
14.58
Vested and expected to vest, December 31, 2009
39,994
27.98
1,924
$
14.09
(1)
VMware stock options: Includes options for 4,017 shares exchanged in the 2008 Exchange Offer.
(1)
(1)