AMD 2009 Annual Report Download - page 130

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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 26, 2009
Year Ended
December 27, 2008
Year Ended
December 29, 2007
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 ....................... 11,202 $11.09 9,867 $20.20 7,062 $24.65
Granted ........................ 17,046 $ 4.12 8,023 $ 7.06 6,445 $14.89
Forfeited ....................... (2,237) $ 9.70 (3,368) $18.52 (1,124) $22.77
Vested ......................... (4,134) $13.68 (3,320) $20.89 (2,516) $17.94
Nonvested balance at end of period . . 21,877 $ 5.32 11,202 $11.09 9,867 $20.20
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 2009, 2008 and 2007 was $16
million, $19 million and $37 million, respectively. Compensation expense recognized for the restricted stock
units for 2009, 2008 and 2007 was approximately $49 million, $45 million and $68 million. Compensation
expense recognized for the restricted stock awards is not significant.
As of December 26, 2009, the Company had $28 million of total unrecognized compensation expense, net
of estimated forfeitures, related to stock options that will be recognized over the weighted average period of
1.49 years.
As of December 26, 2009, the Company had $74 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 2.34 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
period. Beginning with the November 2007 purchase period the Company temporarily suspended its ESPP
program, and the Company indefinitely suspended the program on December 3, 2008. A summary of stock
purchased under the ESPP for the specified fiscal years is shown below:
Year Ended
December 29,
2007
Aggregate purchase price (in millions) ............................... $ 51
Shares purchased (in thousands) ..................................... 4,385
Based on the Black-Scholes option pricing model, the weighted-average fair value of rights granted under
the Company’s ESPP during 2007 was $3.11 per share. The underlying assumptions used in the model for 2007
ESPP purchases are outlined in the following table:
Year Ended
December 29,
2007
Expected life (years) .............................................. 0.25
Expected stock price volatility ...................................... 37.1%
Risk-free interest rate ............................................. 4.92%
122