Qualcomm 2011 Annual Report Download - page 88

QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Net share-based awards, after forfeitures and cancellations, granted during fiscal 2011 , 2010 and 2009 represented 0.7% , 1.2% and 2.2% of
outstanding shares as of the beginning of each fiscal year, respectively. Total share-based awards granted during fiscal 2011 , 2010 and 2009
represented 0.9% , 1.9% and 2.5% , respectively, of outstanding shares as of the end of each fiscal year.
Stock Options:
The Board of Directors may grant options to selected employees, directors and consultants to the Company to purchase shares
of the Company’s common stock at a price not less than the fair market value of the stock at 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. A summary of stock option transactions for all equity
compensation plans follows:
(1) Represents activity related to options that were assumed as a result of an acquisition (Note 12).
At September 25, 2011 , total unrecognized estimated compensation expense related to non-vested stock options granted prior to that date
was $636 million , which is expected to be recognized over a weighted-average period of 2.0 years. The total intrinsic value of stock options
exercised during fiscal 2011 , 2010 and 2009 was $1.1 billion , $208 million and $272 million , respectively. The Company recorded cash
received from the exercise of stock options of $2.5 billion , $565 million and $534 million and related tax benefits of $421 million , $80 million
and $106 million during fiscal 2011 , 2010 and 2009 , respectively. Upon option exercise, the Company issues new shares of stock.
Restricted Stock Units: RSUs are share awards that entitle the holder to receive shares of the Company’s common stock upon vesting. The
RSUs generally include dividend-equivalent rights and generally vest three years from the date of grant. A summary of RSU transactions for all
equity compensation plans follows:
(1) Represents activity related to RSUs that were assumed as a result of an acquisition (Note 12).
At September 25, 2011 , total unrecognized estimated compensation cost related to non-vested RSUs granted prior to that date was $803
million , which is expected to be recognized over a weighted-average period of 2.3 years. The total vest-date fair value of RSUs that vested
during fiscal 2011 and 2010 was $43 million and $1 million , respectively. No RSUs vested in fiscal 2009. For the majority of RSUs, shares are
issued on the vesting dates net of the amount of shares needed to satisfy statutory tax withholding requirements to be paid by the Company on
behalf of the employees. The total shares withheld were approximately 243,000 in fiscal 2011 and were based on the value of the RSUs on their
vesting dates as determined by the Company’s closing stock price. Total payments for the employees’ tax obligations to the taxing authorities
were $14 million in fiscal 2011.
Employee Stock Purchase Plan. The Company has an employee stock purchase plan for eligible employees to purchase
F- 24
Number of Shares
(In thousands)
Weighted-
Average
Exercise
Price
Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic
Value
(In billions)
Options outstanding at September 26, 2010
214,958
$
38.51
Options granted
1,220
48.37
Options assumed (1)
4,603
29.63
Options cancelled/forfeited/expired
(4,250
)
40.99
Options exercised
(67,279
)
36.60
Options outstanding at September 25, 2011
149,252
$
39.10
5.65
$
1.7
Exercisable at September 25, 2011
101,472
$
38.39
4.89
$
1.2
Number of Shares
(In thousands)
Weighted-
Average
Grant Date Fair
Value
Aggregate
Intrinsic
Value
(In billions)
RSUs outstanding at September 26, 2010
5,555
$
35.72
RSUs granted
13,687
52.84
RSUs assumed (1)
4,961
50.94
RSUs cancelled/forfeited
(654
)
43.67
RSUs vested
(797
)
49.51
RSUs outstanding at September 25, 2011
22,752
$
48.69
$
1.1