Qualcomm 2011 Annual Report Download - page 32

creation and expansion of sales distribution channels and investments and acquisitions, legal risks, stock repurchase programs, changes in federal
and state income tax law and changes to our business model.
Share-Based Compensation
We primarily issue stock options and restricted stock units under our equity compensation plans, which are part of a broad-based, long-term
retention program that is intended to attract and retain talented employees and directors and align stockholder and employee interests.
Our 2006 Long-Term Incentive Plan (2006 Plan) provides for the grant of both incentive and non-qualified stock options, restricted stock
units, stock appreciation rights, restricted stock, performance units and shares and other stock-based awards. Options are granted at a price not
less than the fair market value of the stock on the date of grant. Generally, options vest over periods not exceeding five years and are exercisable
for up to ten years from the grant date. Restricted stock units generally vest three years from the date of grant. The Board of Directors may
terminate the 2006 Plan at any time.
Additional information regarding our share-based compensation plans and plan activity for fiscal 2011 , 2010 and 2009 is provided in the
notes to our consolidated financial statements in this Annual Report in “Notes to Consolidated Financial Statements, Note 8 — Employee
Benefit Plans” and in our 2012 Proxy Statement under the heading “Equity Compensation Plan Information.”
Issuer Purchases of Equity Securities
Issuer purchases of equity securities during the fourth quarter of fiscal 2011 were (in millions, except per share data):
Performance Measurement Comparison of Stockholder Return
The following graph compares total stockholder return on our common stock since September 24, 2006 to two indices: the Standard &
Poor’s 500 Stock Index (the S&P 500) and the NASDAQ-100 Index (NASDAQ-100). The S&P 500 tracks the aggregate price performance of
the equity securities of 500 United States companies selected by Standard & Poor’s Index Committee to include companies in leading industries
and to reflect the United States stock market. The NASDAQ-100 tracks the aggregate price performance of the 100 largest domestic and
international non-financial securities listed on the NASDAQ Stock Market based on market capitalization.
The total return for our stock and for each index assumes the reinvestment of gross dividends and is based on the returns of the component
companies weighted according to their capitalizations at the end of each annual period. We began paying dividends on our common stock on
March 31, 2003. Our common stock is traded on the NASDAQ Global Select Market and is a component of each of the S&P 500 and the
NASDAQ
-100.
27
Total Number of
Shares Purchased
Average Price
Paid Per Share
(1)
Total Number of Shares
Purchased as Part of
Publicly Announced Plans
or Programs
(1)
Approximate Dollar Value of
Shares that May Yet Be
Purchased Under the Plans or
Programs
(2)(3)
June 27, 2011, to July 24, 2011
—
$
—
—
$
—
July 25, 2011 to August 21, 2011
—
—
— —
August 22, 2011 to September 25, 2011
3
49.40
3
1,558
Total
3
3
$
1,558
(1)
Average Price Paid Per Share excludes cash paid for commissions.
(2) On March 1, 2010, we announced that we had been authorized to repurchase up to $3.0 billion of our common stock, and $1.0 billion of that amount
remained available at September 25, 2011 , net of put options outstanding. The stock repurchase program has no expiration date. Since September 25,
2011 , we repurchased and retired 2,046,000 shares of our common stock for $99 million .
(3) The approximate dollar value of shares that may yet be purchased has not been reduced by the net cost of $511 million (net of the premiums received)
of 11,800,000 shares that may be repurchased related to put options that we sold during fiscal 2011.