Yahoo 2013 Annual Report Download - page 118

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The Employee Stock Purchase Plan provides for the issuance of a maximum of 75 million shares of common
stock of which 15 million shares were available as of December 31, 2013. For the years ended December 31,
2011, 2012, and 2013, stock-based compensation expense related to the activity under the plan was $46 million,
$31 million, and $16 million, respectively. As of December 31, 2013, there was $3 million of unamortized stock-
based compensation cost related to the Employee Stock Purchase Plan which will be recognized over a weighted
average period of 0.4 years.
The Company’s 1995 Stock Plan, the Directors’ Plan, other stock-based awards assumed through acquisitions,
and the Tumblr equity holdback are collectively referred to as the “Plans.” Stock option activity under the Plans
for the year ended December 31, 2013 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, 2012 ............. 38,092 $21.42 4.19 $ 78,387
Options granted ............................ 51 $29.32
Options assumed in acquisitions ............... 1,121 $ 7.39
Options exercised(1) ......................... (13,707) $20.32
Options cancelled/forfeited ................... (1,198) $15.13
Options expired ............................ (3,391) $29.73
Outstanding at December 31, 2013 ............. 20,968 $20.43 4.20 $428,414
Vested and expected to vest at December 31,
2013(2) ................................. 19,701 $20.13 4.09 $400,054
Exercisable at December 31, 2013 ............. 10,696 $22.24 2.64 $194,676
(1) The Company issued 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 values of all options granted and assumed in the years ended December 31,
2011, 2012, and 2013 were $5.04, $4.36, and $18.72 per share, respectively.
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, 2013 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, 2013.
The total intrinsic values of options exercised in the years ended December 31, 2011, 2012, and 2013 were $46
million, $45 million, and $122 million, respectively.
As of December 31, 2013, there was $16 million of unamortized stock-based compensation expense related to
unvested stock options, which is expected to be recognized over a weighted average period of 1.5 years.
Cash received from option exercises and purchases of shares under the Employee Stock Purchase Plan for the
year ended December 31, 2013 was $353 million.
The total net tax benefit attributable to stock options exercised in the year ended December 31, 2013 was $16
million.
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