Intel 2014 Annual Report Download - page 99

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INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Stock Purchase Plan
Approximately 76% of our employees were participating in our 2006 Stock Purchase Plan as of December 27, 2014 (76% in 2013
and 72% in 2012). Employees purchased 19.4 million shares of common stock in 2014 for $393 million under the 2006 Stock
Purchase Plan (20.5 million shares of common stock for $369 million in 2013 and 17.4 million shares of common stock for
$355 million in 2012). As of December 27, 2014 there was $13 million in unrecognized share-based compensation costs related
to rights to acquire shares of common stock under our stock purchase plan. We expect to recognize those costs over a period of
approximately one and a half months.
Note 19: Common Stock Repurchases
Common Stock Repurchase Program
We have an ongoing authorization, originally approved by our Board of Directors in 2005, and subsequently amended, to
repurchase up to $65 billion in shares of our common stock in open market or negotiated transactions. This amount includes an
increase of $20 billion in the authorization limit approved by our Board of Directors in July 2014. As of December 27, 2014,
$12.4 billion remained available for repurchase under the existing repurchase authorization limit.
During 2014, we repurchased 332.4 million shares of common stock at a cost of $10.8 billion (94.1 million shares of common
stock at a cost of $2.1 billion in 2013 and 191.0 million shares of common stock at a cost of $4.8 billion in 2012). We have
repurchased 4.7 billion shares of common stock at a cost of $102 billion since the program began in 1990.
In the fourth quarter of 2014, we entered into a stock repurchase agreement, a portion of which was executed as a forward
contract. We received collateral from the counterparty for the value attributable to the forward portion of this contract and invested
the collateral into permitted investments considered restricted from other uses. As of December 27, 2014, $325 million of
collateral, which approximates fair value, remains recorded as both a current asset and current liability on the consolidated
balance sheet. The $325 million represents the unsettled portion of the contract and will be returned to the counterparty by
December 29, 2014, the settlement date.
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 of common stock 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. In our consolidated financial
statements, we also treat shares of common stock withheld for tax purposes on behalf of our employees in connection with the
vesting of restricted stock units as common stock repurchases because they reduce the number of shares that would have been
issued upon vesting. These withheld shares are not considered common stock repurchases under our authorized common stock
repurchase plan. During 2014, we withheld 12.0 million shares of common stock to satisfy $332 million (13.1 million shares of
common stock to satisfy $293 million in 2013 and 12.6 million shares of common stock to satisfy $345 million in 2012) of
employees’ tax obligations.
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