SanDisk 2010 Annual Report Download - page 218

Notes To Consolidated Financial Statements
A summary of the changes in RSUs outstanding under the Company’s share-based compensation plan
during the three fiscal years ended January 2, 2011 is as follows:
Shares
Weighted Average
Grant Date Fair
Value
Aggregate
Intrinsic Value
(In thousands, except for weighted average grant date fair value)
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
Granted ...................................... 95 15.12
Vested ....................................... (559) 26.40 7,977
Forfeited ..................................... (215) 20.86
Non-vested share units at January 3, 2010 ............... 844 24.69 24,476
Granted ...................................... 1,100 29.39
Vested ....................................... (632) 25.11 24,476
Forfeited ..................................... (68) 24.67
Non-vested share units at January 2, 2011 ............... 1,244 28.64 62,007
As of January 2, 2011, the Company had $23.2 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. The total fair value of awards vested for the years ended January 2, 2011, January 3, 2010 and
December 28, 2008 was $15.9 million, $14.8 million and $9.4 million, respectively.
Employee Stock Purchase Plan. At January 2, 2011, there was $0.6 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 $77.6 million, $95.6 million and
$97.8 million of share-based compensation expense for the fiscal years ended January 2, 2011, January 3, 2010
and December 28, 2008, respectively, that included the following:
January 2,
2011
January 3,
2010
December 28,
2008
(In thousands)
Share-based compensation expense by caption:
Cost of product revenues ................................. $ 5,821 $ 12,427 $ 10,775
Research and development ............................... 26,292 36,399 38,854
Sales and marketing .................................... 10,934 19,247 20,067
General and administrative ............................... 34,543 27,487 28,103
Total share-based compensation expense ................ 77,590 95,560 97,799
Total tax benefit recognized .............................. (26,720) (23,767) (21,317)
Decrease in net income .................................. $ 50,870 $ 71,793 $ 76,482
Share-based compensation expense by type of award:
Stock options and SARs ................................. $ 55,821 $ 79,859 $ 77,015
Restricted stock units ................................... 15,081 11,922 14,753
Employee stock purchase plans ............................ 6,688 3,779 6,031
Total share-based compensation expense ................ 77,590 95,560 97,799
Total tax benefit recognized .............................. (26,720) (23,767) (21,317)
Decrease in net income .................................. $ 50,870 $ 71,793 $ 76,482
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