VMware 2011 Annual Report Download - page 96

Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table summarizes option activity since January 1, 2009 for VMware and EMC stock options (shares in thousands):
As of December 31, 2011 , for the VMware stock options, the weighted-average remaining contractual term was 2.5
years and the aggregate
intrinsic value was $508.5 million for the 9.9 million exercisable shares. For the 15.8 million options vested and expected to vest at
December 31, 2011 , the weighted-average remaining contractual term was 3.0 years and the aggregate intrinsic value was $772.3 million .
These aggregate intrinsic values represent the total pre-tax intrinsic values based on VMware’s closing stock price of $83.19 as of December 31,
2011 , 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, 2011 , for the EMC stock options, the weighted-average remaining contractual term was 5.5 years and the aggregate
intrinsic value was $18.4 million for the 2.0 million exercisable shares. For the 3.5 million shares vested and expected to vest at December 31,
2011 , the weighted-average remaining contractual term was 6.0 years and the aggregate intrinsic value was $29.8 million . These aggregate
intrinsic values represent the total pre-tax intrinsic values based on EMC’s closing stock price of $21.54 as of December 31, 2011
, which would
have been received by the option holders had all in-the-money options been exercised as of that date.
Cash proceeds from the exercise of VMware stock options for the years ended December 31, 2011 , 2010 and 2009 were $280.6 million ,
$386.1 million and $209.4 million , respectively. The options exercised in 2011 , 2010 and 2009 had a pre-tax intrinsic value of $647.8 million ,
$678.8 million and $132.6 million , respectively.
Cash proceeds from the exercise of EMC stock options paid to EMC were $12.2 million , $12.4 million and $4.7 million
for the years ended
December 31, 2011 , 2010 and 2009 , respectively. The pre-tax intrinsic value of these options held by VMware employees that were exercised
during the years ended December 31, 2011 , 2010 and 2009 were $12.0 million , $10.8 million and $2.3 million , respectively.
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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, 2009
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
Options relating to employees transferred from EMC — —
2,198
15.53
Granted
3,362
57.60
—
—
Forfeited
(2,220
)
30.78
(164
)
11.44
Expired
(151
)
83.86
(193
)
55.81
Exercised
(15,574
)
24.79
(1,175
)
10.53
Outstanding, December 31, 2010
26,924
33.54
2,664
13.93
Options relating to employees transferred from EMC — —
2,256
13.53
Granted
171
5.68
—
—
Forfeited
(1,011
)
40.98
(230
)
14.47
Expired
(112
)
101.66
(139
)
31.56
Exercised
(9,798
)
28.64
(923
)
13.58
Outstanding, December 31, 2011
16,174
35.27
3,628
13.16
Exercisable, December 31, 2011
9,863
32.75
2,003
12.36
Vested and expected to vest, December 31, 2011
15,808
35.05
3,540
13.14