AMD 2011 Annual Report Download - page 116

As of December 31, 2011, the weighted average remaining contractual life of outstanding stock options was
3.73 years and their aggregate intrinsic value was $27 million. As of December 31, 2011, the weighted average
remaining contractual life of exercisable stock options was 2.84 years and their aggregate intrinsic value was
$27 million. The total intrinsic value of stock options exercised for 2011, 2010 and 2009 was $21 million, $22
million and $5 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.
The summary of the changes in restricted stock units and awards outstanding, including the market-based
restricted stock units, during 2011, 2010 and 2009 is presented below:
2011 2010 2009
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)
Non-vested balance at beginning of
period ........................... 24 $6.50 22 $5.32 11 $11.09
Granted ........................... 14 $7.34 12 $8.54 17 $ 4.12
Forfeited ........................... (4) $6.66 (2) $6.13 (2) $ 9.70
Vested ............................ (10) $6.25 (8) $6.41 (4) $13.68
Non-vested balance at end of period ..... 24 $7.07 24 $6.50 22 $ 5.32
The total fair value of restricted stock and restricted stock units vested during 2011, 2010 and 2009 was $74
million, $61 million and $16 million, respectively. Compensation expense recognized for the restricted stock
units for 2011, 2010 and 2009 was approximately $73 million, $61 million and $49 million. Compensation
expense recognized for the restricted stock awards is not significant.
As of December 31, 2011, the Company had $21 million of total unrecognized compensation expense, net of
estimated forfeitures, related to stock options that will be recognized over the weighted average period of 2.08 years.
As of December 31, 2011, the Company had $103 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 1.79 years.
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 75% for the first 6% of
participants’ contributions, to a maximum match of $11,025 which is 4.5% (75% of the 6%) of the Internal
Revenue Service compensation limit. The Company’s contributions to the 401(k) plan were approximately $20
million in 2011, $9 million in 2010 and $5 million in 2009.
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
employee contributions and made a one-time match equivalent to half of the full-year amount. This Company match
was one-half of 75% of contributions through December 31, 2010, up to the first 6% of pay deferred.
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