SanDisk 2014 Annual Report Download - page 178

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SANDISK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Employee Stock Purchase Plan Shares. The fair value of shares issued under the Company’s ESPP
program was estimated using the following weighted-average assumptions:
Fiscal years ended
December 28, December 29, December 30,
2014 2013 2012
Dividend yield .................................... 1.14% – 1.25% 0% – 1.65% —%
Expected volatility ................................. 0.31 0.34 0.41
Risk-free interest rate ............................... 0.07% 0.11% 0.15%
Expected term .................................... 1⁄2 year 1⁄2 year 1⁄2 year
Weighted-average fair value at purchase date ............... $19.39 $13.08 $11.87
Share-based Compensation Plan Activities
Stock Options and SARs. A summary of stock option and SARs activities under all of the Company’s
share-based compensation plans as of December 28, 2014 and changes during the three fiscal years ended
December 28, 2014 are presented below (in thousands, except for weighted-average exercise price and
remaining contractual term):
Weighted-
Average
Weighted- Remaining
Average Contractual Aggregate
Shares Exercise Price Term (Years) Intrinsic Value
Options and SARs outstanding as of 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 as of December 30,
2012 .................................. 15,426 40.73 3.2 109,411
Granted .............................. 1,142 52.69
Exercised ............................. (7,362) 35.53 163,992
Forfeited ............................. (433) 43.72
Expired .............................. (2,363) 60.70
Options assumed through acquisition .......... 183 19.37
Options and SARs outstanding as of December 29,
2013 .................................. 6,593 40.66 4.2 195,018
Granted .............................. 1,032 76.82
Exercised ............................. (3,635) 40.54 163,623
Forfeited ............................. (318) 51.88
Expired .............................. (9) 41.09
Options assumed through acquisition .......... 427 68.49
Options and SARs outstanding as of December 28,
2014 .................................. 4,090 51.94 4.5 202,044
Options and SARs vested and expected to vest after
December 28, 2014, net of forfeitures ........... 3,864 51.23 4.4 193,621
Options and SARs exercisable as of December 28, 2014 1,547 38.53 3.2 97,107
As of December 28, 2014, the total unrecognized compensation cost related to stock options, net of
estimated forfeitures, was approximately $36.2 million, and this amount is expected to be recognized over a
weighted-average period of approximately 2.2 years. As of December 28, 2014, the Company had fully
expensed all of its SARs awards.
F-38