eBay 2015 Annual Report Download - page 114

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
or PayPal stock based on the conversion ratios outlined for each group of employees in the Employee Matters
Agreement that we entered into in connection with the Distribution. Adjustments to our outstanding stock based
compensation awards, including ESPP awards, resulted in additional compensation expense of approximately
$68 million to be recognized over the remaining vesting life of the underlying awards.
In December 2014, the terms of various stock-based awards held by the Company’s CEO, CFO, General
Counsel, SVP of Human Resources and SVP of Corporate Communications (the “Departing Executives”) were
modified in anticipation of and contingent upon termination of employment at the time of the Distribution. The
modifications for the Departing Executives, each of whom had his or her employment terminated at the time of
the Distribution, provided for the full acceleration of certain awards and extended the exercise periods of certain
awards. These modifications resulted in additional compensation expense of approximately $37 million
recognized from the modification date in December 2014 through the Distribution on July 17, 2015.
Stock Option Activity
The following table summarizes stock option activity under our equity incentive plans as of and for the year
ended December 31, 2015:
Shares
Weighted
Average
Exercise
Price
Weighted Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic
Value
(In millions, except per share amounts and years)
Outstanding as of January 1, 2015 10 $34.14
Granted and assumed 2 $49.59(1)
Exercised (6) $18.46(1)
Forfeited/expired/canceled (1) $29.44(1)
Adjustment due to the Distribution 2
Outstanding as of December 31, 2015 7 $20.05 4.31 $50
Expected to vest 6 $19.88 4.22 $48
Options exercisable 4 $17.44 2.98 $37
(1) Weighted average exercise price is calculated using exercise prices prior to the Distribution and after the
Distribution.
The aggregate intrinsic value of options was calculated as the difference between the exercise price of the
underlying awards and the quoted price of our common stock. At December 31, 2015, options to purchase
7 million shares of our common stock were in-the-money.
The weighted average grant-date fair value of options granted during the years 2015, 2014 and 2013 was
$6.84, $13.59 and $15.39, respectively. During the years 2015, 2014 and 2013, the aggregate intrinsic value of
options exercised under our equity incentive plans was $130 million, $159 million and $292 million,
respectively, determined as of the date of option exercise.
F-40