eBay 2015 Annual Report Download - page 112

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The stock repurchase activity under our stock repurchase programs during 2015 is summarized as follows:
Shares
Repurchased
Average Price
per Share (1)
Value of Shares
Repurchased
Remaining
Amount
Authorized
(In millions, except per share amounts)
Balance as of January 1, 2015 $ 985
Authorization of additional plan in January 2015 2,000
Repurchase of shares of common stock prior to the
Distribution 18 56.95 1,000 (1,000)
Authorization of additional plan in June 2015 1,000
Repurchase of shares of common stock subsequent to
the Distribution 41 27.48 1,149 (1,149)
Balance as of December 31, 2015 $ 1,836
(1) Stock repurchase activity excludes broker commissions.
In 2015, we repurchased 59 million shares of common stock totaling $2.1 billion.
As of December 31, 2015, a total of approximately $1.8 billion remained available for further repurchases of
our common stock under our January 2015 and June 2015 stock repurchase programs. These repurchased shares
were recorded as treasury stock and were accounted for under the cost method. No repurchased shares have been
retired.
Note 16 — Stock-Based and Employee Savings Plans
Equity Incentive Plans
We have equity incentive plans under which we grant equity awards, including stock options, restricted
stock units, performance-based restricted stock units, and performance share units, to our directors, officers and
employees. At December 31, 2015, 740 million shares were authorized under our equity incentive plans and
65 million shares were available for future grant, these awards were modified as described below.
All stock options granted under these plans generally vest 12.5% six months from the date of grant (or 25%
one year from the date of grant for grants to new employees) with the remainder vesting at a rate of 2.08% per
month thereafter, and generally expire seven to ten years from the date of grant. The cost of stock options is
determined using the Black-Scholes option pricing model on the date of grant.
Restricted stock units are granted to eligible employees under our equity incentive plans. In general,
restricted stock units vest in equal annual installments over a period of three to five years, are subject to the
employees’ continuing service to us and do not have an expiration date. The cost of restricted stock units is
determined using the fair value of our common stock on the date of grant.
In 2015, 2014 and 2013, certain executives were eligible to receive performance-based restricted stock units.
The number of restricted stock units ultimately received depends on our business performance against specified
performance targets set by the Compensation Committee. If the performance criteria are satisfied, the
performance-based restricted stock units are granted, with one-half of the grant vesting in March following the
end of the performance period and the remaining one-half vesting one year later.
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