Crucial 2015 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2015 Crucial 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 113

  • 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

79
Restricted Stock and Restricted Stock Units ("Restricted Stock Awards")
As of September 3, 2015, there were 14 million shares of Restricted Stock Awards outstanding, of which 1 million were
performance-based or market-based Restricted Stock Awards. For service-based Restricted Stock Awards, restrictions
generally lapse in one-fourth increments during each year of employment after the grant date. Vesting for performance-based
awards is contingent upon meeting a specified return on assets ("ROA"), as defined, over a three-year performance period and
vesting for market-based Restricted Stock Awards is contingent upon achieving total shareholder return ("TSR") relative to the
companies included in the S&P 500 over a three-year performance period. At the end of the performance period, the number of
actual shares to be awarded varies between 0% and 200% of target amounts, depending upon the achievement level of the
specified ROA or TSR. Restricted Stock Awards activity for 2015 is summarized as follows:
Number of
Shares
Weighted-
Average Grant
Date Fair
Value Per
Share
Outstanding at August 28, 2014 13 $ 15.08
Granted 7 32.60
Restrictions lapsed (5) 13.48
Canceled (1) 19.81
Outstanding at September 3, 2015 14 23.88
Expected to vest after September 3, 2015 13 $ 23.78
For the year ended 2015 2014 2013
Restricted stock awards granted 7 7 7
Weighted-average grant-date fair values per share $ 32.60 $ 21.88 $ 6.23
Aggregate fair values at vesting date 155 115 17
Stock-based Compensation Expense
For the year ended 2015 2014 2013
Stock-based compensation expense by caption:
Cost of goods sold $ 65 $ 39 $ 27
Selling, general and administrative 60 50 45
Research and development 42 25 18
Other 1 1 1
$ 168 $ 115 $ 91
Stock-based compensation expense by type of award:
Stock options $ 81 $ 61 $ 57
Restricted stock awards 87 54 34
$ 168 $ 115 $ 91
Stock-based compensation expense of $9 million and $9 million was capitalized and remained in inventory as of
September 3, 2015 and August 28, 2014, respectively. As of September 3, 2015, $384 million of total unrecognized
compensation costs for unvested awards, net of estimated forfeitures, was expected to be recognized through the fourth quarter
of 2019, resulting in a weighted-average period of 1.3 years. Stock-based compensation expense in the above presentation does
not reflect any significant income tax benefits, which is consistent with our treatment of income or loss from our U.S.
operations.