SanDisk 2007 Annual Report Download - page 121

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Stock Options and SARs. A summary of option and stock appreciation rights (“SARs”) activity under all of
the Company’s share-based compensation plans as of December 30, 2007 and changes during the fiscal year ended
December 30, 2007 is presented below:
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(In thousands, except exercise price and contractual term)
Options outstanding at January 2, 2005 ..... 22,656 $17.02
Granted .......................... 6,367 28.37
Exercised ......................... (7,940) 13.75
Forfeited.......................... (767) 24.37
Options outstanding at January 1, 2006 ..... 20,316 21.57 $260,187
Granted .......................... 6,021 58.41
Exercised ......................... (4,861) 17.91 $205,618
Forfeited.......................... (851) 41.05
Expired .......................... (40) 40.29
Options and SARs assumed through
acquisition . . .................... 5,807 30.57
Options and SARs outstanding at
December 31, 2006 .................. 26,392 31.97 6.7 $392,469
Granted .......................... 5,848 43.65
Exercised ......................... (4,678) 20.24 $124,816
Forfeited.......................... (1,728) 45.99
Expired .......................... (277) 56.03
Options and SARs outstanding at
December 30, 2007 .................. 25,557 35.59 5.8 $165,185
Options and SARs vested and expected to
vest after December 30, 2007, net of
forfeitures......................... 23,870 34.91 5.8 $163,723
Options and SARs exercisable at
December 30, 2007 .................. 12,901 $27.12 5.2 $147,722
At December 30, 2007, the total compensation cost related to options and SARs granted to employees under
the Company’s share-based compensation plans but not yet recognized was approximately $200.7 million, net of
estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted average period of
approximately 2.6 years. Options and SARs valuation assumptions related to Matrix and msystems acquisitions are
discussed in Note 14, “Business Acquisitions.”
Restricted Stock Units. Restricted stock units (“RSUs”), are converted into shares of the Company’s
common stock upon vesting on a one-for-one basis. Typically, vesting of RSUs is subject to the employee’s
continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s
common stock on the date of the grant, and compensation is recognized on a straight-line basis over the requisite
vesting period.
F-25
Notes to Consolidated Financial Statements — (Continued)