SanDisk 2008 Annual Report Download - page 96

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Notes To Consolidated Financial Statements
A summary of the changes in RSUs outstanding under the Company’s share-based compensation plan
during the fiscal year ended December 28, 2008 is presented below (in thousands, except for weighted average
grant date fair value):
Shares
Weighted Average
Grant Date Fair
Value
Aggregate
Intrinsic Value
Non-vested share units at January 1, 2006 ........................ 105 $42.19 $ 3,489
Granted ............................................... 516 57.69
Vested ................................................ (97) 52.21 4,865
Forfeited .............................................. (65) 63.85
Restricted stock units assumed through acquisition ............ 139 72.83
Non-vested share units at December 31, 2006 ..................... 598 58.71 25,740
Granted ............................................... 132 44.86
Vested ................................................ (184) 56.21 8,136
Forfeited .............................................. (47) 67.10
Non-vested share units at December 30, 2007 ..................... 499 55.20 16,735
Granted ............................................... 1,338 18.79
Vested ................................................ (173) 54.41 4,149
Forfeited .............................................. (141) 32.22
Non-vested share units at December 28, 2008 ..................... 1,523 25.38 13,983
As of December 28, 2008, the Company had $26.4 million of total unrecognized compensation expense, net
of estimated forfeitures, related to RSUs, which will be recognized over a weighted average estimated remaining
life of 2.8 years.
Employee Stock Purchase Plan. At December 28, 2008, there was $0.5 million of total unrecognized
compensation cost related to ESPP that is expected to be recognized over a period of approximately 0.1 years.
Share-Based Compensation Expense. The Company recorded $97.8 million, $133.0 million and
$100.6 million of share-based compensation expense for the fiscal years ended December 28,
2008, December 30, 2007 and December 31, 2006, respectively, that included the following:
December 28,
2008
December 30,
2007
December 31,
2006
(In thousands)
Share-based compensation expense by caption:
Cost of product revenues ................................. $10,775 $ 14,743 $ 7,991
Research and development ............................... 38,854 49,194 40,999
Sales and marketing .................................... 20,067 31,722 21,617
General and administrative ............................... 28,103 37,351 30,034
Total share-based compensation expense ................ $97,799 $133,010 $100,641
Share-based compensation expense by type of award:
Stock options and SARs ................................. $77,015 $111,360 $ 85,862
Restricted stock units ................................... 14,753 16,674 11,181
Employee stock purchase plans ............................ 6,031 4,976 3,598
Total share-based compensation expense ................ $97,799 $133,010 $100,641
Share-based compensation of $3.4 million and $3.7 million related to manufacturing personnel was
capitalized into inventory as of December 28, 2008 and December 30, 2007, respectively.
F-31