Texas Instruments 2007 Annual Report Download - page 27

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TEXAS INSTRUMENTS 2007 ANNUAL REPORT 25
Summarized information about stock options outstanding under the various long-term plans mentioned above at December 31, 2007, is
as follows:
STOCK OPTIONS OUTSTANDING OPTIONS EXERCISABLE
Range of Exercise
Share Prices Number
Outstanding (shares)
Weighted
Average Remaining
Contractual Life (years)
Weighted
Average Exercise
Price per Share
Number
Exercisable
(shares)
Weighted
Average Exercise
Price per Share
$ .24 to 10.00 417,438 2.0 $4.16 416,039 $4.16
10.01 to 20.00 32,356,005 4.5 15.72 32,326,789 15.72
20.01 to 30.00 64,783,961 4.9 25.09 45,363,908 25.16
30.01 to 40.00 56,454,322 5.9 33.11 36,824,667 33.48
40.01 to 50.00 907,632 2.2 43.70 907,632 43.70
50.01 to 84.32 31,047,973 2.5 54.07 31,047,973 54.07
$ .24 to 84.32 185,967,331 4.7 $30.78 146,887,008 $31.34
During the years ended December 31, 2007, 2006 and 2005, the aggregate intrinsic value (i.e., the difference in the closing market
price and the exercise price to be paid by the optionee) of options exercised under these plans was $606 million, $419 million and
$394 million.
For the years ended December 31, 2007, 2006 and 2005, the total fair value of shares vested from RSU grants was $12 million,
$13 million and $24 million.
Summarized information as of December 31, 2007, about outstanding stock options that are vested and expected to vest, as well as
stock options that are currently exercisable, is as follows:
Outstanding Stock Options
(Fully Vested and Expected
to Vest) (a) Options
Exercisable
Number of outstanding (shares)...................................... 184,995,626 146,887,008
Weighted average remaining contractual life ........................... 4.7 years 4.0 years
Weighted average exercise price per share............................. $30.75 $31.34
Intrinsic value .................................................... $1,160 $980
(a) Includes effects of expected forfeitures. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $1.17 billion.
As of December 31, 2007, the total future compensation cost related to unvested stock options and RSUs not yet recognized in the
statement of income was $216 million and $127 million. Of that total, $179 million, $106 million, $51 million and $7 million will be
recognized in 2008, 2009, 2010 and 2011.
Employee Stock Purchase Plans
Under the TI Employees 2005 Stock Purchase Plan, options are offered to all eligible employees in amounts based on a percentage of
the employee’s compensation. Under the plan, the option price per share is 85 percent of the fair market value on the exercise date,
and options have a three-month term.
The options outstanding under the Plan at December 31, 2007, had an exercise price of $27.50 per share (85 percent of the fair market
value of TI common stock on the date of automatic exercise). Of the total outstanding options, none were exercisable at year-end 2007.