Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

The following table summarizes stock repurchase authorizations in the years ended December 31, 2012, 2011 and 2010 (amounts in table in thousands):



Month Authorized	Amount Authorized	Expiration Date
November 2012	$250,000	End of 2014
February 2012	600,000	End of 2013
February 2011	550,000	End of 2012
March 2010	400,000	End of 2011

Stock Repurchase Activity

The following table summarizes stock repurchase activity in the years ended December 31, 2012, 2011 and 2010 (table in thousands, except per share amounts):



	For the Year Ended December 31,
	2012		2011		2010
Aggregate purchase price	$	467,534	$	526,203	$	338,527
Class A common shares repurchased	5,132		5,953		4,909
Weighted-average price per share	$	91.10	$	88.37	$	68.96

Components of Stock-Based Compensation Expense

The following tables summarize the components of total stock-based compensation expense included in our consolidated income statements in 2012, 2011 and 2010 (in thousands):



	Year Ended December 31, 2012
	Stock Options		Restricted Stock		Total Stock-Based Compensation
Cost of product sales	$	22,399	$	29,150	$	51,549
Cost of services	20,968		52,950		73,918
Research and development	88,495		236,232		324,727
Selling, general and administrative	130,646		339,467		470,113
Stock-based compensation expense before income taxes	262,508		657,799		920,307
Income tax benefit	66,780		161,859		228,639
Total stock-based compensation, net of tax	$	195,728	$	495,940	$	691,668
	Year Ended December 31, 2011
	Stock Options		Restricted Stock		Total Stock-Based Compensation
Cost of product sales	$	29,504	$	31,194	$	60,698
Cost of services	25,221		37,758		62,979
Research and development	106,556		192,699		299,255
Selling, general and administrative	164,760		248,479		413,239
Stock-based compensation expense before income taxes	326,041		510,130		836,171
Income tax benefit	73,293		119,850		193,143
Total stock-based compensation, net of tax	$	252,748	$	390,280	$	643,028
	Year Ended December 31, 2010
	Stock Options		Restricted Stock		Total Stock-Based Compensation
Cost of product sales	$	29,586	$	20,646	$	50,232
Cost of services	29,493		28,928		58,421
Research and development	112,484		146,262		258,746
Selling, general and administrative	156,059		161,595		317,654
Stock-based compensation expense before income taxes	327,622		357,431		685,053
Income tax benefit	75,771		89,902		165,673
Total stock-based compensation, net of tax	$	251,851	$	267,529	$	519,380

Net Change in Amounts Capitalized or Accrued

The table below presents the net change in amounts capitalized or accrued in 2012 and 2011 for the following items (in thousands):



	Increased (decreased) during the year ended December 31, 2012			Increased (decreased) during the year ended December 31, 2011
Inventory	$	203		$	111
Accrued expenses (accrued warranty expenses)	(1,534		)	(1,702		)
Other assets	7,577			4,552

EMC Employee Stock Purchase - 1989 Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee Stock Purchase Plan Activity

The following table summarizes the 1989 Plan activity in the years ended December 31, 2012, 2011 and 2010 (table in thousands, except per share amounts):



	For the Year Ended
	December 31, 2012		December 31, 2011		December 31, 2010
Cash Proceeds	$	153,698	$	141,023	$	120,694
Common shares purchased	7,101		6,899		6,949
Weighted-average price per share	$	21.65	$	20.44	$	17.37

VMware Employee Stock Purchase - 2007 Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee Stock Purchase Plan Activity

The following table summarizes ESPP activity in the years ended December 31, 2012, 2011 and 2010 (table in thousands, except per share amounts):



	For the Year Ended
	December 31, 2012		December 31, 2011		December 31, 2010
Cash proceeds	$	69,372	$	56,964	$	45,162
Class A common shares purchased	897		816		1,510
Weighted-average price per share	$	77.34	$	69.81	$	29.90

EMC

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock Option Activity

The following table summarizes our option activity under all equity plans since January 1, 2010 (shares in thousands):



	Number of Shares		Weighted Average Exercise Price (per share)
Outstanding, January 1, 2010	234,918		$	18.31
Options granted relating to business acquisitions	12,595		5.57
Granted	3,286		20.07
Forfeited	(6,632	)	14.36
Expired	(14,970	)	70.59
Exercised	(56,781	)	11.63
Outstanding, December 31, 2010	172,416		15.23
Options granted relating to business acquisitions	141		3.24
Granted	1,665		25.31
Forfeited	(4,159	)	13.00
Expired	(13,866	)	40.05
Exercised	(44,659	)	11.91
Outstanding, December 31, 2011	111,538		13.69
Options granted relating to business acquisitions	2,330		1.54
Granted	861		26.80
Forfeited	(2,227	)	13.75
Expired	(183	)	14.19
Exercised	(34,870	)	11.65
Outstanding, December 31, 2012	77,449		14.39
Exercisable, December 31, 2012	60,575		14.34
Vested and expected to vest, December 31, 2012	76,538		$	14.41

Restricted Stock and Restricted Stock Unit Activity

The following table summarizes our restricted stock and restricted stock unit activity since January 1, 2010 (shares in thousands):



	Number of Shares		Weighted Average Grant Date Fair Value
Restricted stock and restricted stock units at January 1, 2010	37,363		$	15.01
Granted	19,261		20.31
Vested	(11,062	)	15.09
Forfeited	(2,185	)	15.82
Outstanding, December 31, 2010	43,377		17.20
Granted	20,945		25.12
Vested	(14,832	)	16.44
Forfeited	(3,959	)	20.56
Outstanding, December 31, 2011	45,531		21.10
Granted	21,451		26.57
Vested	(16,035	)	18.92
Forfeited	(3,740	)	23.09
Restricted stock and restricted stock units at December 31, 2012	47,207		$	24.39

Weighted Average Assumptions Used to Estimate Fair Value of Awards

The fair value of each option granted during the years ended December 31, 2012, 2011 and 2010 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:



	For the Year Ended December 31,
EMC Stock Options	2012			2011			2010
Dividend yield	None			None			None
Expected volatility	34.3		%	33.3		%	32.9		%
Risk-free interest rate	0.8		%	1.6		%	1.8		%
Expected term (in years)	5.2			4.9			4.8
Weighted-average fair value at grant date	$	8.56		$	8.00		$	6.25

VMware

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock Option Activity

The following table summarizes activity since January 1, 2010 for VMware employees in VMware stock options (shares in thousands):



	Number of Shares		Weighted Average Exercise Price (per share)
Outstanding, January 1, 2010	41,507		$	28.34
Granted	3,362		57.60
Forfeited	(2,220	)	30.78
Expired	(151	)	83.86
Exercised	(15,574	)	24.79
Outstanding, December 31, 2010	26,924		33.54
Granted	171		5.68
Forfeited	(1,011	)	40.98
Expired	(112	)	101.66
Exercised	(9,798	)	28.64
Outstanding, December 31, 2011	16,174		35.27
Granted	1,201		4.67
Expired	(644	)	42.07
Exercised	(6,598	)	30.44
Outstanding, December 31, 2012	10,133		34.36
Exercisable, December 31, 2012	7,382		35.49
Vested and expected to vest	10,067		$	34.23

Restricted Stock and Restricted Stock Unit Activity

The following table summarizes restricted stock activity since January 1, 2010 (units in thousands):



	Number of Units		Weighted Average Grant Date Fair Value (per unit)
Restricted stock at January 1, 2010	9,211		$	33.21
Granted	4,933		74.87
Vested	(3,688	)	32.38
Forfeited	(704	)	39.05
Outstanding, December 31, 2010	9,752		54.17
Granted	4,548		91.51
Vested	(3,853	)	48.47
Forfeited	(907	)	64.70
Outstanding, December 31, 2011	9,540		72.74
Granted	7,832		101.73
Vested	(3,751	)	69.01
Forfeited	(1,451	)	81.53
Outstanding, December 31, 2012	12,170		$	91.93

Weighted Average Assumptions Used to Estimate Fair Value of Awards

The fair value of each option to acquire VMware Class A common stock granted during the years ended December 31, 2012, 2011 and 2010 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:



	For the Year Ended December 31,
VMware Stock Options	2012			2011			2010
Dividend yield	None			None			None
Expected volatility	35.8		%	37.7		%	38.0		%
Risk-free interest rate	0.3		%	1.0		%	1.5		%
Expected term (in years)	2.7			3.0			3.5
Weighted-average fair value at grant date	$	80.45		$	88.40		$	18.05
	For the Year Ended December 31,
VMware Employee Stock Purchase Plan	2012			2011			2010
Dividend yield	None			None			None
Expected volatility	37.8		%	34.9		%	33.1		%
Risk-free interest rate	0.1		%	0.2		%	0.2		%
Expected term (in years)	0.5			0.5			0.5
Weighted-average fair value at grant date	$	23.36		$	23.69		$	15.18

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details