AMD 2010 Annual Report Download - page 126

Download and view the complete annual report

Please find page 126 of the 2010 AMD annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

The summary of the changes in restricted stock awards outstanding during the year ended December 25,
2010, December 26, 2009 and December 27, 2008 is presented below:
2010 2009 2008
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 millions except share price)
Nonvested balance at beginning of period . . . 22 $5.32 11 $11.09 10 $20.20
Granted .............................. 12 $8.54 17 $ 4.12 8 $ 7.06
Forfeited ............................. (2) $6.13 (2) $ 9.70 (4) $18.52
Vested ............................... (8) $6.41 (4) $13.68 (3) $20.89
Nonvested balance at end of period ........ 24 $6.50 22 $ 5.32 11 $11.09
The total fair value of restricted stock and restricted stock units vested during 2010, 2009 and 2008 was $61
million, $16 million and $19 million, respectively. Compensation expense recognized for the restricted stock
units for 2010, 2009 and 2008 was approximately $61 million, $49 million and $45 million. Compensation
expense recognized for the restricted stock awards is not significant.
As of December 25, 2010, the Company had $19 million of total unrecognized compensation expense, net
of estimated forfeitures, related to stock options that will be recognized over the weighted average period of
1.71 years.
As of December 25, 2010, the Company had $99 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 1.93 years.
Stock Purchase Plan. The Company had an employee stock purchase plan (ESPP) that allowed eligible
and participating employees to purchase, through payroll deductions, shares of the Company’s common stock at
85% 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. The ESPP expired on April 27, 2010.
Shares Reserved for Issuance. The Company had a total of approximately 24.3 million shares of common
stock as of December 25, 2010 that were available for future grants under the 2004 Plan and 60.8 million shares
reserved for issuance upon the exercise of outstanding stock options or the vesting of unvested restricted stock
awards (including restricted stock units and awards) under the 2004 Plan, the Company’s prior equity
compensation plans and the assumed ATI plans.
NOTE 15: Other Employee Benefit Plans
Retirement Savings Plan. The Company has a retirement savings plan, commonly known as a 401(k) plan,
that allows participating employees in the United States to contribute up to 100% of their pre-tax salary subject to
Internal Revenue Service limits. The Company matched employee contributions one to one for the first 3% of
participants’ contributions and 50 cents on each dollar of additional 3% of participants’ contributions, to a
maximum of 4.5% of eligible compensation. The Company’s contributions to the 401(k) plan were
approximately $9 million in 2010 and $5 million in each of 2009 and 2008.
In 2009, as part of its cost cutting efforts, the Company temporarily suspended the matching contributions for
its 401(k) plan, effective February 2, 2009. In January 2010, the Company announced the partial reinstatement of
the Section 401(k) plan matching contributions for 2010. At the end of 2010, the Company looked back at all
118