Texas Instruments 2015 Annual Report Download - page 46

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FORM 10-K
Long-term incentive and director compensation plans
Stock option and RSU transactions under our long-term incentive and director compensation plans during 2014 were as follows:
Stock Options RSUs
Shares
Weighted
Average
Exercise
Price per Share Shares
Weighted
Average Grant
Date Fair
Value per Share
Outstanding grants, December 31, 2013 . . . . . . . . . . . . . 64,930,540 $ 28.98 20,892,022 $ 29.94
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,053,185 44.11 3,184,237 44.71
Vested RSUs . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (5,609,627) 23.68
Forfeited and expired . . . . . . . . . . . . . . . . . . . . . . (1,832,897) 36.54 (1,162,817) 33.22
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,503,382) 27.75 — —
Outstanding grants, December 31, 2014 . . . . . . . . . . . . 57,647,446 32.84 17,303,815 34.47
The weighted average grant date fair value of RSUs granted during the years 2014, 2013 and 2012 was $44.71, $33.70 and $31.60 per
share, respectively. For the years ended December 31, 2014, 2013 and 2012, the total grant date fair value of shares vested from RSU
grants was $133 million, $98 million and $120 million, respectively.
Summarized information about stock options outstanding at December 31, 2014, is as follows:
Stock Options Outstanding Options Exercisable
Range of
Exercise Price
Number
Outstanding
(Shares)
Weighted Average
Remaining Contractual
Life (Years)
Weighted
Average Exercise
Price per Share
Number
Exercisable
(Shares)
Weighted
Average Exercise
Price per Share
$ 14.47 to 20.00 4,061,577 4.0 $ 14.98 4,061,577 $ 14.98
20.01 to 30.00 11,270,125 3.7 25.47 11,250,200 25.46
30.01 to 40.00 28,910,636 6.5 33.00 12,288,339 33.14
40.01 to 50.00 13,399,020 9.1 44.10 1,750 42.66
50.01 to 55.41 6,088 9.9 55.41 — —
14.47 to 55.41 57,647,446 6.4 32.84 27,601,866 27.34
During the years ended December 31, 2014, 2013 and 2012, the aggregate intrinsic value (i.e., the difference in the closing market
price on the date of exercise and the exercise price paid by the optionee) of options exercised was $367 million, $427 million and
$244 million, respectively.
Summarized information as of December 31, 2014, 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,328,323 27,601,866
Weighted average remaining contractual life (in years) . . . . . . . . . . . . . . . . . . . 6.3 4.4
Weighted average exercise price per share . . . . . . . . . . . . . . . . . . . . . . . . . $ 32.69 $ 27.34
Intrinsic value (millions of dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,170 $ 721
(a) Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the
aggregate intrinsic value of stock options outstanding was $1,189 million.
As of December 31, 2014, the total future compensation cost related to equity awards not yet recognized in the Consolidated
Statements of Income was $308 million, consisting of $113 million related to unvested stock options and $195 million related to
unvested RSUs. The $308 million is expected to be recognized as follows: $168 million in 2015, $91 million in 2016, $44 million in 2017
and $5 million in 2018.