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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Stock Purchase Plan
Approximately 80% of our employees were participating in our stock purchase plan as of December 26, 2009. Employees
purchased 30.9 million shares in 2009 for $344 million under the 2006 Stock Purchase Plan (25.9 million shares for $453
million in 2008 and 26.1 million shares for $428 million in 2007). As of December 26, 2009, there was $9 million in
unrecognized compensation costs related to rights to acquire common stock under our stock purchase plan. We expect to
recognize those costs over a weighted average period of one month.
Note 24: Common Stock Repurchases
Common Stock Repurchase Program
We have an ongoing authorization, amended in November 2005, from our Board of Directors to repurchase up to $25 billion
in shares of our common stock in open market or negotiated transactions. As of December 26, 2009, $5.7 billion remained
available for repurchase under the existing repurchase authorization. During 2009, we utilized the majority of the proceeds
from the issuance of the 2009 debentures to repurchase 88.2 million shares of common stock at a cost of $1.7 billion (for
further information on the issuance of the 2009 debentures, see “Note 20: Borrowings”).
We repurchased 324 million shares at
a cost of $7.1 billion during 2008 and 111 million shares at a cost of $2.75 billion during 2007. We have repurchased and
retired 3.4 billion shares at a cost of $69 billion since the program began in 1990. Our repurchases in 2009 and a portion of our
purchases in 2008 and 2007 were executed in privately negotiated transactions.
Restricted Stock Unit Withholdings
We issue restricted stock units as part of our equity incentive plans. For the majority of restricted stock units granted, the
number of shares issued on the date the restricted stock units vest is net of the minimum statutory withholding requirements
that we pay in cash to the appropriate taxing authorities on behalf of our employees. During 2009, we withheld 5.8 million
shares (3.5 million shares during 2008 and 1.7 million shares during 2007) to satisfy $92 million ($78 million during 2008 and
$38 million during 2007) of employees’ tax obligations. Although shares withheld are not issued, they are treated as common
stock repurchases in our consolidated financial statements, as they reduce the number of shares that would have been issued
upon vesting.
Note 25: Earnings Per Share
We computed our basic and diluted earnings per common share as follows:
97
(In Millions, Except Per Share Amounts)
2009
2008
2007
Net income available to common stockholders
1
$
4,369
$
5,292
$
6,976
Weighted average common shares outstanding
—
basic
5,557
5,663
5,816
Dilutive effect of employee equity incentive plans
37
69
Dilutive effect of convertible debt
51
51
Weighted average common shares outstanding
—
diluted
5,645
5,748
5,936
Basic earnings per common share
$
0.79
$
0.93
$
1.20
Diluted earnings per common share
$
0.77
$
0.92
$
1.18
1
Net income available to participating securities was insignificant in 2009.