SanDisk 2012 Annual Report Download - page 198

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A summary of the changes in RSUs outstanding under the Company’s share-based compensation plan
during the three fiscal years ended December 30, 2012 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 3, 2010 ........................ 844 $ 24.69 $ 24,476
Granted ............................................... 1,100 29.39
Vested ................................................ (632) 25.11 24,476
Forfeited .............................................. (68) 24.67
Non-vested share units at January 2, 2011 ........................ 1,244 28.64 62,007
Granted ............................................... 1,335 47.56
Vested ................................................ (396) 29.63 19,309
Forfeited .............................................. (132) 37.24
Non-vested share units at January 1, 2012 ........................ 2,051 40.22 100,913
Granted ............................................... 1,840 45.04
Vested ................................................ (646) 47.75 29,479
Forfeited .............................................. (227) 42.85
Assumed through acquisition .............................. 59 46.63
Non-vested share units at December 30, 2012 ..................... 3,077 43.51 131,622
As of December 30, 2012, the Company had approximately $87.5 million of unrecognized compensation
expense, net of estimated forfeitures, related to RSUs, which will be recognized over a weighted average
estimated remaining life of 2.7 years.
Employee Stock Purchase Plan. At December 30, 2012, there was approximately $0.8 million of total
unrecognized compensation cost related to the Company’s ESPP that is expected to be recognized over a period
of approximately 0.1 years.
Share-based Compensation Expense. The following tables set forth the detailed allocation of the share-
based compensation expense (in thousands):
Fiscal years ended
December 30,
2012
January 1,
2012
January 2,
2011
Share-based compensation expense by caption:
Cost of product revenues .................................. $ 7,459 $ 4,674 $ 5,821
Research and development ................................ 41,009 34,202 26,292
Sales and marketing ...................................... 14,585 10,593 10,934
General and administrative ................................ 15,390 13,641 34,543
Total share-based compensation expense ................. 78,443 63,110 77,590
Total tax benefit recognized ............................... (20,122) (17,008) (26,720)
Decrease in net income ................................... $ 58,321 $ 46,102 $ 50,870
Share-based compensation expense by type of award:
Stock options and SARs .................................. $ 35,428 $ 33,684 $ 55,821
RSUs ................................................. 35,260 22,355 15,081
ESPP ................................................. 7,755 7,071 6,688
Total share-based compensation expense ................. 78,443 63,110 77,590
Total tax benefit recognized ............................... (20,122) (17,008) (26,720)
Decrease in net income ................................... $ 58,321 $ 46,102 $ 50,870
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