Microsoft 2009 Annual Report Download - page 74

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PAGE 74
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of June 30, 2009, there was $3.8 billion and $551 million of total unrecognized compensation costs related to
SAs and SPSAs, respectively. These costs are expected to be recognized over a weighted average period of 3.5
years and 2.5 years, respectively.
During fiscal year 2008 and 2007, the following activity occurred under our plans:
(In millions, except fair values) 2008 2007
Stock awards granted 71 57
Weighted average grant-date fair value $ 27.83 $25.15
Shared performance stock awards granted 19 11
Weighted average grant-date fair value $ 27.82 $25.18
STOCK OPTIONS
In fiscal year 2004, we began granting employees SAs rather than stock options as part of our equity compensation
plans. Since then, stock options issued to employees have been issued primarily in conjunction with business
acquisitions. Nonqualified stock options were granted to our directors under our non-employee director stock plan
until 2004 when we began granting directors SAs. Nonqualified and incentive stock options were granted to certain
officers and employees under our employee stock plans. Options granted between 1995 and 2001 generally vest
over four and one-half years and expire seven years from the date of grant, while certain options vest either over
four and one-half years or over seven and one-half years and expire 10 years from the date of grant. Options
granted after 2001 vest over four and one-half years and expire 10 years from the date of grant. We granted one
million, 10 million, and two million stock options, respectively, in conjunction with business acquisitions during fiscal
years 2009, 2008, and 2007.
Employee stock options outstanding were as follows:
Shares
(In millions)
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value
(In millions)
Balance, July 1, 2008 364 $28.12
Granted 1 $ 2.14
Exercised (6 ) $22.44
Canceled (28 ) $30.31
Forfeited (1 ) $10.50
Balance, June 30, 2009 330 $27.99 1.99 $318
Exercisable, June 30, 2009 327 $27.99 1.98 $271
Options outstanding as of June 30, 2009 include approximately eight million options that were granted in conjunction
with business acquisitions. While these options are included in the options outstanding balance, they are excluded
from the weighted average exercise price. These options have an exercise price range of $0.01 to $150.93 and a
weighted average exercise price of $9.50.
During fiscal years 2009, 2008, and 2007, the following activity occurred under our plans:
(In millions) 2009
2008 2007
Total intrinsic value of stock options exercised $ 48
$1,042 $818
Total fair value of stock awards vested $ 1,126
$804 $566
Total fair value of shared performance stock awards vested $ 450
$336 $292
Cash received and income tax benefits from stock option exercises were $88 million and $12 million, respectively,
for fiscal year 2009.