Ingram Micro 2010 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2010 Ingram Micro 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 96

  • 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

During 2010, 2009 and 2008, 768,826, 262,904 and 1,111,822, respectively, of previously granted restricted
stock units were converted to Class A Common Stock. Approximately 246,000, 75,000 and 343,000 shares,
respectively, were withheld to satisfy the employees’ minimum statutory obligation for the applicable taxes and
cash was remitted to the appropriate taxing authorities. Total payments for the employees’ tax obligations to the
taxing authorities were approximately $4,378, $1,188 and $5,398 in 2010, 2009 and 2008, respectively. The
withheld shares had the effect of share repurchases by us as they reduced and retired the number of shares that would
have otherwise been issued as a result of the vesting. In 2010 and 2009, the Human Resources Committee of the
Board of Directors determined that the performance measures for certain performance-based grants were not met,
resulting in the cancellation of approximately 492,000 and 394,000 restricted stock units, respectively.
Stock Award Activity
Stock option activity under the 2003 Plan was as follows for the three years ended January 1, 2011:
No. of Shares
(in 000s)
Weighted-
Average
Price
Weighted-Average
Remaining
Contractual
Term
(in Years)
Aggregate
Intrinsic
Value
Outstanding at December 29, 2007 ...... 18,866 $15.59 5.4
Granted ......................... 1,338 17.80
Exercised ........................ (1,639) 14.19
Forfeited/cancelled/expired ........... (1,106) 20.02
Outstanding at January 3, 2009 ........ 17,459 15.57 4.6
Granted ......................... 141 10.62
Exercised ........................ (2,865) 12.09
Forfeited/cancelled/expired ........... (707) 17.49
Outstanding at January 2, 2010 ........ 14,028 16.10 4.1
Granted ......................... 48 18.36
Exercised ........................ (2,799) 13.73
Forfeited/cancelled/expired ........... (862) 17.86
Outstanding at January 1, 2011 ........ 10,415 16.41 3.7 $29,541
Vested and expected to vest at January 1,
2011 ........................... 10,371 16.41 3.4 $29,484
Exercisable at January 1, 2011 ......... 10,120 16.37 3.6 $29,160
The aggregate intrinsic value in the table above represents the difference between our closing stock price on
January 1, 2011 and the option exercise price, multiplied by the number of in-the-money options on January 1, 2011.
This amount changes based on the fair market value of our common stock. Total intrinsic value of stock options
exercised in 2010, 2009 and 2008 was $10,496, $12,554 and $6,458, respectively. Total fair value of stock options
vested and expensed was $1,728, $4,809 and $8,403 for 2010, 2009 and 2008, respectively. As of January 1, 2011,
we expect $34 of total unrecognized compensation cost related to stock options to be recognized in the next twelve
months.
Cash received from stock option exercises in 2010, 2009 and 2008 was $38,439, $34,635 and $23,256,
respectively, and the actual benefit realized for the tax deduction from stock option exercises of the share-based
payment awards totaled $3,844, $4,404 and $1,511 in 2010, 2009 and 2008, respectively.
67
INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)