Option Grant and Exercise Terms
Table of Contents
9. Stockholders' Equity
Voting Rights
The holders of each share of common stock shall be entitled to one vote per share on all matters to be voted upon by the Company's stockholders.
Stock Option Plan
On June 4, 2020, the Company's stockholders approved the 2020 Stock Plan, which was adopted by the Company's Board of Directors on March 4, 2020
subject to stockholder approval. The 2020 Stock Plan is the successor to the 2011 Stock Plan. The 2020 Stock Plan provides for the grant of incentive stock
options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees,
directors and consultants. The 2020 Stock Plan authorized 17,500,000 new shares to be available for award grants. As of the date the 2020 Stock Plan was
adopted by the Company's Board of Directors, 5,530,106 shares were available to be granted under the 2011 Stock Plan. These shares are available for award
grants under the 2020 Stock Plan.
A summary of the activities related to the Company's stock option plans is as follows:
Shares Available
for Grant
Options Outstanding
Weighted Average
Number of
Shares
Exercise Price
(per Share)
Balances as of December 31, 2018
Granted
8,699,941
(2,588,380)
Exercised
20,479,278
2,588,380
(2,208,052)
$
89.61
320.66
32.88
Expired
(280)
6.74
Balances as of December 31, 2019
6,111,561
20,859,326
$
124.28
New Shares Authorized
17,500,000
Granted
Exercised
Expired
(1,909,476)
1,909,476
432.34
(4,088,612)
58.35
(3,380)
27.54
Balances as of December 31, 2020
21,702,085
18,676,810
$
170.23
Granted
(1,556,725)
1,556,725
554.11
Exercised
Expired
(2,632,324)
65.97
(5,360)
34.63
20,145,360
17,595,851
$
219.83
17,595,851
$
Balances as of December 31, 2021
Vested and exercisable at December 31, 2021
219.83
The aggregate intrinsic value of the Company's outstanding stock options as of December 31, 2021 was $6,744 million and represents the total pretax
intrinsic value (the difference between the Company's closing stock price on the last trading day of 2021 and the exercise price, multiplied by the number of
in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of 2021. This
amount changes based on the fair market value of the Company's common stock. Total intrinsic value of options exercised for the years ended December 31,
2021, 2020 and 2019 was $1,363 million, $1,596 million and $666 million, respectively. The weighted-average remaining contractual term of the Company's
outstanding stock options as of December 31, 2021 included in the table above was 5.37 years.
Cash received from option exercises for the years ended December 31, 2021, 2020 and 2019 was $174 million, $235 million and $72 million,
respectively. The Company records stock option exercises based on trade date.
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