Intel 2008 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2008 Intel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 143

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
We base the expected volatility on implied volatility, because we have determined that implied volatility is more reflective of
market conditions and a better indicator of expected volatility than historical volatility. We use the simplified method of
calculating expected life described in SAB 107, as amended by SAB 110, due to significant differences in the vesting terms
and contractual life of current option grants compared to our historical grants.
Restricted Stock Unit Awards
Information with respect to outstanding restricted stock unit activity is as follows:
As of December 27, 2008, there was $937 million in unrecognized compensation costs related to restricted stock units granted
under our equity incentive plans. We expect to recognize those costs over a weighted average period of 1.4 years.
97
Weighted
Average
Number of
Grant
-
Date
Aggregate
(In Millions, Except Per Share Amounts)
Shares
Fair Value
Fair Value
1
December 31, 2005
—
—
Granted
30.0
$
18.70
Vested
—
—
$
—
Forfeited
(2.6
)
$
18.58
December 30, 2006
27.4
$
18.71
Granted
32.8
$
21.13
Vested
2
(5.9
)
$
18.60
$
131
Forfeited
(3.2
)
$
19.38
December 29, 2007
51.1
$
20.24
Granted
32.9
$
19.94
Vested
2
(12.1
)
$
19.75
$
270
Forfeited
(4.6
)
$
20.12
December 27, 2008
67.3
$
20.18
Expected to vest as of December 27, 2008
3
60.5
$
20.20
1
Represents the value of Intel common stock on the date that the restricted stock units vest. On the grant date, the fair
value for these vested awards was $239 million in 2008 and $111 million in 2007.
2
The number of restricted stock units vested includes shares that we withheld on behalf of employees to satisfy the
statutory tax withholding requirements.
3
Restricted stock units that are expected to vest are net of estimated future forfeitures.