SanDisk 2010 Annual Report Download - page 217

This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
Stock Options and SARs. A summary of stock options and stock appreciation rights (“SARs”) activity
under all of the Company’s share-based compensation plans as of January 2, 2011 and changes during the three
fiscal years ended January 2, 2011 is presented below:
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(In thousands, except exercise price and contractual term)
Options and SARs outstanding at December 30, 2007..... 25,557 $ 35.59 5.8 $ 165,185
Granted ..................................... 3,616 21.29
Exercised .................................... (895) 7.77 11,751
Forfeited .................................... (1,927) 42.47
Expired ..................................... (1,294) 43.35
Options and SARs outstanding at December 28, 2008..... 25,057 33.59 4.9 5,284
Granted ..................................... 4,242 9.41
Exercised .................................... (964) 12.60 5,807
Forfeited .................................... (1,376) 32.94
Expired ..................................... (2,063) 38.97
Options and SARs outstanding at January 3, 2010........ 24,896 29.87 4.4 180,834
Granted ..................................... 3,016 31.67
Exercised .................................... (6,471) 22.08 137,976
Forfeited .................................... (449) 24.14
Expired ..................................... (599) 49.15
Options and SARs outstanding at January 2, 2011........ 20,393 32.18 3.8 393,996
Options and SARs vested and expected to vest after
January 2, 2011, net of forfeitures .................. 19,212 32.78 3.7 361,473
Options and SARs exercisable at January 2, 2011 ........ 14,005 36.26 3.1 223,413
At January 2, 2011, the total compensation cost related to options granted to employees under the
Company’s share-based compensation plans but not yet recognized was approximately $45.5 million, net of
estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted average period of
approximately 2.5 years. The total fair value of options vested during the years ended January 2, 2011, January 3,
2010 and December 28, 2008 was $40.5 million, $59.2 million and $93.8 million, respectively. As of January 2,
2011, the Company had fully expensed all of its SARs awards.
Restricted Stock Units. Restricted stock units (“RSUs”) are converted into shares of the Company’s
common stock upon vesting on a one-for-one basis. Typically, vesting of RSUs is subject to the employee’s
continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s
common stock on the date of the grant, and compensation is recognized on a straight-line basis over the requisite
vesting period.
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