Apple 2009 Annual Report Download - page 84

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Table of Contents
Stock Option Activity
A summary of the Company’
s stock option and RSU activity and related information for the three years ended September 26, 2009, is as follows
(in thousands, except per share amounts and contractual term in years):
Aggregate intrinsic value represents the value of the Company’
s closing stock price on the last trading day of the fiscal period in excess of the
weighted-
average exercise price multiplied by the number of options outstanding or exercisable. The aggregate intrinsic value excludes the effect
of stock options that have a zero or negative intrinsic value. Total intrinsic value of options at time of exercise was $827 million, $2.0 billion and
$1.3 billion for 2009, 2008 and 2007, respectively.
RSUs granted are deducted from the shares available for grant under the Company’
s stock option plans utilizing a factor of two times the number
of RSUs granted. Similarly, RSUs cancelled are added back to the shares available for grant under the Company’
s stock option plans utilizing a
factor of two times the number of RSUs cancelled. Outstanding RSU balances are not included in the outstanding options balances in the stock
option activity table.
Stock
-Based Compensation
Stock-based compensation cost for RSUs is measured based on the closing fair market value of the Company’
s common stock on the date of
grant. Stock-based compensation cost for stock options is estimated at the grant
81
Outstanding Options
Shares
Available
for Grant
Number
of Shares
Weighted
-
Average
Exercise
Price
Weighted
-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
Balance at September 30, 2006
54,994
52,982
$
23.23
Additional shares authorized
28,000
—
$
—
Restricted stock units granted
(2,640
)
—
$
—
Options granted
(14,010)
14,010
$
94.52
Options cancelled
1,471
(1,471
)
$
55.38
Restricted stock units cancelled
20
—
$
—
Options exercised
—
(
15,770
)
$
18.32
Plan shares expired
(8
)
—
$
—
Balance at September 29, 2007
67,827
49,751
$
43.91
Restricted stock units granted
(9,834
)
—
$
—
Options granted
(9,359
)
9,359
$
171.36
Options cancelled
1,236
(1,236
)
$
98.40
Restricted stock units cancelled
714
—
$
—
Options exercised
—
(
13,728
)
$
27.88
Plan shares expired
(12
)
—
$
—
Balance at September 27, 2008
50,572
44,146
$
74.39
Restricted stock units granted
(15,572
)
—
$
—
Options granted
(234
)
234
$
106.84
Options cancelled
1,241
(1,241
)
$
122.98
Restricted stock units cancelled
1,256
—
$
—
Options exercised
—
(
8,764
)
$
41.78
Plan shares expired
(2
)
—
$
—
Balance at September 26, 2009
37,261
34,375
$
81.17
3.52
$
3,482,530
Exercisable at September 26, 2009
24,685
$
60.62
3.01
$
3,006,829
Expected to Vest after September 26, 2009
9,479
$
133.28
4.82
$
465,321