Yahoo 2008 Annual Report Download - page 102

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Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
Stock option activity under the Company’s Plans and Directors’ Plan is summarized as follows (in thousands,
except years and per share amounts):
Shares
Weighted Average
Exercise Price per
Share
Weighted Average
Remaining
Contractual Life
(in years)
Aggregate
Intrinsic Value
Outstanding at December 31, 2007 ................. 180,397 $29.36 5.08 $467,655
Options assumed ................................ 216 $ 2.45
Options granted ................................. 8,762 $21.73
Options exercised(1) .............................. (19,660) $14.25
Options cancelled/forfeited ........................ (17,501) $29.11
Options expired ................................. (16,772) $36.99
Outstanding at December 31, 2008 ................. 135,442 $30.10 3.88 $ 89,688
Vested and expected to vest at December 31, 2008(2) . . . 129,911 $30.16 3.82 $ 87,968
Exercisable at December 31, 2008 .................. 92,143 $31.72 3.20 $ 70,564
(1) The Company’s current practice is to issue new shares to satisfy stock option exercises.
(2) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total
outstanding options.
The weighted average grant date fair value of options granted in the years ended December 31, 2006, 2007, and
2008 was $10.03, $8.50, and $7.66 per share, respectively. The weighted average grant date fair value of options
assumed in connection with acquisitions in the year ended December 31, 2008 was $26.44 per share.
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate
difference between the closing stock price of the Company’s common stock on December 31, 2008 and the
exercise price for in-the-money options) that would have been received by the option holders if all in-the-money
options had been exercised on December 31, 2008.
The total intrinsic value of options exercised in the years ended December 31, 2006, 2007, and 2008 was $393
million, $393 million, and $233 million, respectively.
As of December 31, 2008, there was $311 million of unamortized stock-based compensation expense related to
unvested stock options which is expected to be recognized over a weighted average period of 2.4 years.
Cash received from option exercises and purchases of shares under the Purchase Plan for the year ended
December 31, 2008 was $363 million.
The total tax benefit attributable to stock options exercised in the year ended December 31, 2008 was
$156 million.
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