SanDisk 2008 Annual Report Download - page 95

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Notes To Consolidated Financial Statements
Stock Options and SARs. A summary of stock options and stock appreciation rights (“SARs”) activity
under all of the Company’s share-based compensation plans as of December 28, 2008 and changes during the
fiscal year ended December 28, 2008 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 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
Granted ......................................... 3,616 21.29
Exercised ....................................... (895) 7.77 11,751
Forfeited ........................................ (1,927) 42.47
Expired ......................................... (1,294) 43.35
Options and SARs outstanding at December 28, 2008 .... 25,057 33.59 4.9 5,284
Options and SARs vested and expected to vest after
December 28, 2008, net of forfeitures ............... 23,892 33.56 4.8 5,274
Options and SARs exercisable at December 28, 2008 ......... 16,500 31.88 4.5 5,212
At December 28, 2008, 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 $118.4 million, net of
estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted average period of
approximately 3.1 years. Options and SARs valuation assumptions related to Matrix and msystems acquisitions
are discussed in Note 15, “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.
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