SanDisk 2007 Annual Report Download - page 122

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A summary of the changes in RSUs outstanding under the Company’s share-based compensation plan during
the fiscal year ended December 30, 2007 is presented below (in thousands, except for weighted average grant date
fair value):
Shares
Weighted Average
Grant Date Fair
Value
Aggregate
Intrinsic Value
Non-vested share units at January 2, 2005 ............ — $ — $ —
Granted .................................... 105 42.19
Non-vested share units at January 1, 2006 ............ 105 42.19 3,489
Granted .................................... 516 57.69
Vested ..................................... (97) 52.21 4,865
Forfeited ................................... (65) 63.85
Restricted stock units assumed through acquisition .... 139 72.83
Non-vested share units at December 31, 2006 ......... 598 58.71 25,740
Granted .................................... 132 44.86
Vested ..................................... (184) 56.21 8,136
Forfeited ................................... (47) 67.10
Non-vested share units at December 30, 2007 ......... 499 $55.20 $16,735
As of December 30, 2007, the Company had $21.5 million of total unrecognized compensation expense, net of
estimated forfeitures, related to RSUs, which will be recognized over a weighted average estimated remaining life
of 2.3 years.
Employee Stock Purchase Plans. At December 30, 2007, there was $0.4 million of total unrecognized
compensation cost related to the ESPP that is expected to be recognized over a period of approximately 0.1 years.
Share-Based Compensation Expense. The Company recorded $133.0 million and $100.6 million of share-
based compensation for the fiscal years ended December 30, 2007 and December 31, 2006, respectively, that
included the following:
December 30,
2007
December 31,
2006
(In thousands)
Share-based compensation expense by caption:
Cost of product sales .................................... $ 14,743 $ 7,991
Research and development ................................ 49,194 40,999
Sales and marketing ..................................... 31,722 21,617
General and administrative ................................ 37,351 30,034
Total share-based compensation expense .................... $133,010 $100,641
Share-based compensation expense by type of award:
Stock options and SARs .................................. $111,360 $ 85,862
Restricted stock ........................................ 16,674 11,181
ESPP ................................................ 4,976 3,598
Total share-based compensation expense .................... $133,010 $100,641
Share-based compensation expense of $3.7 million and $3.2 million related to manufacturing personnel was
capitalized into inventory as of December 30, 2007 and December 31, 2006, respectively.
F-26
Notes to Consolidated Financial Statements — (Continued)