AMD 2007 Annual Report Download - page 283

Spansion Inc.
Notes to Condensed Consolidated Financial Statements - Continued
(Unaudited)
Shares Available to Grant
Number of shares available for grant under the 2005 Plan and 2007 Plan:
Number of shares available for grant under the 2005 Equity Incentive Plan:
Amount reserved for grant 9,500,000
Stock options granted through September 30, 2007, net of cancelled stock options (3,484,904)
RSU awards granted through September 30, 2007, net of cancelled RSU awards (4,969,444)
Shares transferred to the 2007 Plan (920,523)
Shares available under the 2005 Plan (1) 125,129
Number of shares available for grant under the 2007 Equity Incentive Plan:
Amount reserved for grant (2) 7,595,523
Stock options granted through September 30, 2007, net of cancelled stock options (214,250)
RSU awards granted through September 30, 2007, net of cancelled RSU awards (209,990)
Shares available for grant under the 2007 Plan 7,171,283
(1) The remaining available shares under the 2005 Plan were related to stock options or RSU awards
which were cancelled subsequent to May 29, 2007 and will be transferred to the 2007 Plan in future periods.
(2) The 7,595,523 shares reserved for grant under the 2007 Plan consisted of 6,675,000 shares approved for grant under the 2007 Plan and 920,523 shares
transferred from the 2005 Plan.
Valuation and Expense Information
The following table sets forth the total recorded stock-based compensation expense, by financial statement caption, resulting from the Company’s stock
options and restricted stock unit awards for the three and nine months ended September 30, 2007 and October 1, 2006:
Three Months Ended Nine Months Ended
Sep. 30,
2007
Oct. 1,
2006
Sep. 30,
2007
Oct. 1,
2006
( in thousands)
Cost of sales $ 2,372 $ 1,585 $ 6,042 $ 6,839
Research and development 1,185 792 3,021 3,421
Sales, general and administrative 1,185 792 3,021 3,421
Stock-based compensation expense before income taxes 4,742 3,169 12,084 13,681
Income tax benefit (1)
— — — —
Stock-based compensation expense after income taxes (1)
$ 4,742 $ 3,169 $ 12,084 $ 13,681
(1) There is no income tax benefit relating to stock option expenses because all of the Company’s U.S. deferred tax assets, net of U.S. deferred tax liabilities,
continue to be subjected to a full valuation allowance.
The weighted average fair value of the Company’s stock options granted in the three months ended September 30, 2007 and October 1, 2006 was $3.68
and $8.44 per share, respectively. The weighted average fair value of the Company’s stock options granted in the nine months ended September 30, 2007 and
October 1, 2006, was $4.80 and $7.95 per share, respectively. The fair value of each stock option was estimated at the date of grant using a
Black-Scholes-Merton option pricing model, with the following assumptions for grants in the three and nine months ended September 30, 2007 and October 1,
2006:
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008