Ingram Micro 2011 Annual Report Download - page 79

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INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(In 000s, except per share data)
appreciation right for awards granted before June 8, 2011 and 2.37 shares for awards granted after such date. We
grant time- and/or performance-vested restricted stock and/or restricted stock units, in addition to stock options,
to key employees and members of our Board of Directors. Options granted generally vest over a period of up to
three years and have expiration dates not longer than 10 years. A portion of the restricted stock and restricted
stock units vest over a time period of one to three years. The remainder of the restricted stock and restricted stock
units vests upon achievement of certain performance measures over a time period of one to three years. In 2011
and 2010, the performance measures for restricted stock and restricted stock units for grants to management are
based on earnings growth, return on invested capital and profit before tax, whereas in 2009, they were based on
economic profit and profit before tax. As of December 31, 2011, approximately 15,276 shares were available for
grant under the 2011 Plan, taking into account granted options, time-vested restricted stock units/awards and
performance-vested restricted stock units assuming maximum achievement.
During 2011, 2010 and 2009, 1,144, 769 and 263, respectively, of previously granted restricted stock units
were converted to Class A Common Stock. Approximately 326, 246 and 75 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 $6,294, $4,378 and $1,188 in 2011, 2010 and 2009, 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 2011 and 2010, 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 772 and 492 restricted stock units, respectively.
Stock Award Activity
Stock option activity under the 2011 Plan was as follows for the three years ended December 31, 2011:
No. of Shares
Weighted-
Average
Price
Weighted-Average
Remaining
Contractual
Term
(in Years)
Aggregate
Intrinsic
Value
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
Granted ........................ 40 19.62
Exercised ....................... (2,397) 15.44
Forfeited/cancelled/expired ......... (42) 16.25
Outstanding at December 31, 2011 ..... 8,016 16.72 2.8 $15,352
Vested and expected to vest at
December 31, 2011 ................. 8,016 16.72 2.8 $15,352
Exercisable at December 31, 2011 ...... 8,016 16.72 2.8 $15,352
69