AMD 2008 Annual Report Download - page 150

As of December 27, 2008, the weighted average remaining contractual life of stock options outstanding was
4.14 years and their aggregate intrinsic value was $0.2 million. As of December 27, 2008, the weighted average
remaining contractual life of stock options exercisable was 2.52 years and their aggregate intrinsic value was
$0.2 million. The total intrinsic value of stock options exercised for 2008, 2007 and 2006 was $0.2 million, $18
million and $341 million.
Restricted Stock Units and Awards. Restricted stock and restricted stock units vest in accordance with the
terms and conditions established by the Compensation Committee of the Board of Directors, and are based either
on continued service or continued service and performance. The cost of restricted stock units and restricted stock
awards is determined using the fair value of the Company’s common stock on the date of the grant, and the
compensation expense is recognized over the service period.
Certain Company employees have been granted performance-based restricted stock and performance-based
restricted stock units. The number of shares ultimately received under these awards depends on actual
performance against specified performance goals. The performance period is generally one to three years from
the date of grant.
The summary of the changes in restricted stock awards outstanding during the year ended December 27,
2008, December 29, 2007 and December 31, 2006 is presented below:
Year Ended
December 27, 2008
Year Ended
December 29, 2007
Year Ended
December 31, 2006
Number of
Shares
Weighted-
Average
Grant Date
Fair Value
Number of
Shares
Weighted-
Average
Grant Date
Fair Value
Number of
Shares
Weighted-
Average
Grant Date
Fair Value
(In thousands except share price)
Nonvested balance at beginning
of period .................. 9,867 $20.20 7,062 $24.65 1,067 $21.46
Granted ..................... 8,023 $ 7.06 6,445 $14.89 6,444 $25.61
Forfeited .................... (3,368) $18.52 (1,124) $22.77 (124) $26.20
Vested ...................... (3,320) $20.89 (2,516) $17.94 (325) $33.64
Nonvested balance at end of
period .................... 11,202 $11.09 9,867 $20.20 7,062 $24.65
The table above does not include restricted stock units accounted for as liability awards related to the ATI
acquisition, which is not significant.
The total fair value of restricted stock and restricted stock units vested during 2008, 2007 and 2006 was $19
million, $37 million and $11 million, respectively. Compensation expense recognized for the restricted stock
units for 2008, 2007 and 2006 was approximately $45 million, $68 million and $29 million. Compensation
expense recognized for the restricted stock awards is not significant.
As of December 27, 2008, the Company had $50 million of total unrecognized compensation expense, net
of estimated forfeitures, related to stock options that will be recognized over the weighted average period of
2.01 years.
As of December 27, 2008, the Company had $91 million of total unrecognized compensation expense, net
of estimated forfeitures, related to restricted stock awards and restricted stock units that will be recognized over
the weighted average period of 2.21 years.
Stock Purchase Plan. The Company has an employee stock purchase plan (ESPP) that allows eligible and
participating employees to purchase, through payroll deductions, shares of the Company’s common stock at 85
percent of the lower of the fair market value on the first or the last business day of the three-month offering
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