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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table summarizes option activity since January 1, 2010 for VMware and EMC stock options (shares in thousands):
The above table includes stock options granted in conjunction with unvested stock options assumed in business combinations. As a result,
the weighted-average exercise price per share may vary from the VMware stock price at time of grant.
As of December 31, 2012 , for the VMware stock options, the weighted-average remaining contractual term was 1.9
years and the aggregate
intrinsic value was $439.5 million for the 7.4 million exercisable shares. For the 10.1 million options vested and expected to vest at
December 31, 2012 , the weighted-average remaining contractual term was 2.7 years and the aggregate intrinsic value was $609.6 million .
These aggregate intrinsic values represent the total pre-tax intrinsic values based on VMware’s closing stock price of $94.14 as of December 31,
2012 , 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, 2012 , for the EMC stock options, the weighted-average remaining contractual term was 4.8 years and the aggregate
intrinsic value was $19.1 million for the 1.8 million exercisable shares. For the 2.6 million shares vested and expected to vest at December 31,
2012 , the weighted-average remaining contractual term was 5.3 years and the aggregate intrinsic value was $26.7 million . These aggregate
intrinsic values represent the total pre-tax intrinsic values based on EMC’s closing stock price of $25.30 as of December 31, 2012
, 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, 2012 , 2011 and 2010 were $183.8 million ,
$280.6 million and $386.1 million , respectively. The options exercised in 2012 , 2011 and 2010 had a pre-tax intrinsic value of $443.3 million ,
$647.8 million and $678.8 million , respectively.
92
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, 2010
41,507
$
28.34
1,998
$
14.05
Options relating to employees transferred to/from EMC, net
—
—
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 to/from EMC, net
—
—
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
Options relating to employees transferred to/from EMC, net
—
—
(
177
)
4.40
Granted
1,201
4.67
—
—
Forfeited
(644
)
42.07
(36
)
14.96
Expired
—
—
(
11
)
12.67
Exercised
(6,598
)
30.44
(761
)
12.35
Outstanding, December 31, 2012
10,133
34.36
2,643
15.12
Exercisable, December 31, 2012
7,382
35.49
1,764
14.50
Vested and expected to vest, December 31, 2012
10,067
34.23
2,612
15.09