SanDisk 2012 Annual Report Download - page 197

This is a TAB type table. Insert
conts here. Annual Report
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Employee Stock Purchase Plan Shares. The fair value of the Company’s ESPP shares issued to employees
was estimated using the following weighted average assumptions:
Fiscal years ended
December 30,
2012
January 1,
2012
January 2,
2011
Dividend yield .................................................... None None None
Expected volatility ................................................. 0.41 0.43 0.56
Risk-free interest rate ............................................... 0.15% 0.13% 0.18%
Expected term .....................................................
1
⁄ 2 year
1
⁄ 2 year
1
⁄ 2 year
Weighted average fair value at purchase date ............................ $11.87 $12.17 $9.95
Share-based Compensation Plan Activities
Stock Options and SARs. A summary of stock option and stock appreciation rights (“SARs”) activity under
all of the Company’s share-based compensation plans as of December 30, 2012 and changes during the three
fiscal years ended December 30, 2012 is presented below (in thousands, except for weighted average exercise
price and remaining contractual term):
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
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
Granted .................................... 3,157 44.96
Exercised ................................... (5,310) 24.81 126,929
Forfeited ................................... (536) 29.09
Expired .................................... (354) 51.79
Options assumed through acquisition ............. 209 4.35
Options and SARs outstanding at January 1, 2012 ....... 17,559 36.55 3.4 257,251
Granted .................................... 2,336 46.49
Exercised ................................... (3,403) 21.32 81,622
Forfeited ................................... (469) 38.12
Expired .................................... (597) 53.10
Options and SARs outstanding at December 30, 2012 .... 15,426 40.73 3.2 109,411
Options and SARs vested and expected to vest after
December 30, 2012, net of forfeitures .............. 14,953 40.60 3.1 108,480
Options and SARs exercisable at December 30, 2012 .... 10,535 39.93 2.1 89,646
At December 30, 2012, the total compensation cost related to stock options granted to employees under the
Company’s share-based compensation plans but not yet recognized was approximately $87.1 million, net of
estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted average period of
approximately 2.4 years. As of December 30, 2012, the Company had fully expensed all of its SARs awards.
Restricted Stock Units. Restricted stock units (“RSUs”) are settled in 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 grant, and compensation is recognized on a straight-line basis over the requisite vesting period.
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