Texas Instruments 2008 Annual Report Download - page 16

[ 14 ] TEXAS INSTRUMENTS 2008 ANNUAL REPORT
The weighted average grant-date fair value of RSUs granted during the years 2008, 2007 and 2006 was $29.09, $29.46 and $31.36 per
share. For the years ended December 31, 2008, 2007 and 2006, the total fair value of shares vested from RSU grants was $20 million,
$12 million and $13 million.
Summarized information about stock options outstanding under the various long-term plans mentioned above at December 31, 2008, is
as follows:
Stock Options Outstanding Options Exercisable
Range of
Exercise
Share Prices
Number
Outstanding
(shares)
Weighted Average
Remaining Contractual Life
(years)
Weighted Average
Exercise Price
per Share
Number
Exercisable
(shares)
Weighted Average
Exercise Price
per Share
$ .26 to 10.00 125,638 2.1 $3.32 125,638 $3.32
10.01 to 20.00 27,250,890 4.0 16.20 27,225,448 16.20
20.01 to 30.00 68,899,001 4.6 25.67 49,150,379 25.00
30.01 to 40.00 54,957,846 4.8 33.11 45,895,224 33.24
40.01 to 50.00 832,732 1.2 43.80 832,732 43.80
50.01 to 84.32 30,398,971 1.5 54.03 30,398,971 54.03
$ .26 to 84.32 182,465,078 4.1 $31.29 153,628,392 $31.73
During the years ended December 31, 2008, 2007 and 2006, the aggregate intrinsic value (i.e., the difference in the closing market
price and the exercise price to be paid by the optionee) of options exercised under these plans was $110 million, $606 million and
$419 million.
Summarized information as of December 31, 2008, about outstanding stock options that are vested and expected to vest, as well as
stock options that are currently exercisable, is as follows:
Outstanding Stock Options (Fully
Vested and Expected to Vest) (a)
Options
Exercisable
Number of outstanding (shares) ...................................... 181,409,594 153,628,392
Weighted average remaining contractual life ............................ 4.1 years 3.4 years
Weighted average exercise price per share ............................. $31.30 $31.73
Intrinsic value ..................................................... $ 3 $ 3
(a) Includes effects of expected forfeitures. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options
outstanding was $3 million.
As of December 31, 2008, the total future compensation cost related to unvested stock options and RSUs not yet recognized in the
statement of income was $131 million and $150 million. Of that total, $137 million, $90 million, $49 million and $5 million will be
recognized in 2009, 2010, 2011 and 2012.
Employee stock purchase plan
Under the TI Employees 2005 Stock Purchase Plan, options are offered to all eligible employees in amounts based on a percentage of
the employee’s compensation. Under the plan, the option price per share is 85 percent of the fair market value on the exercise date, and
options have a three-month term.
Options outstanding under the Plan at December 31, 2008, had an exercise price of $13.64 per share (85 percent of the fair market
value of TI common stock on the date of automatic exercise). Of the total outstanding options, none were exercisable at year-end 2008.
Employee stock purchase plan transactions during 2008 were as follows:
Employee Stock
Purchase Plan
(shares) (a)
Weighted Average
Exercise Price
Outstanding grants, December 31, 2007 ............................................ 551,768 $ 27.50
Granted .................................................................... 3,085,749 19.15
Exercised ................................................................... (2,597,974) 23.12
Outstanding grants, December 31, 2008 .......................................... 1,039,543 $ 13.64
(a) Excludes options offered but not granted.