SiliconBeat

Maxim Integrated Products, the Sunnyvale chip maker that had not filed financial reports with the Securities and Exchange Commission since May 2006 as it struggled to investigate and then account for years of incorrectly priced (i.e., backdated) options, filed six quarterly reports and three fiscal year reports with the Securities and Exchange Commission Tuesday.

The company determined the total extra value given to its executives, directors, employees and others who received backdated options since fiscal 1997 — the difference between the strike price on the options based on their original grant date and the correct price based on the date they were technically granted — was $712 million.

After adjusting for income tax deductions and other benefits due the company, Maxim slashed a net $495 million off its profits since 1997.

Then there is the costs to the company of the investigation and restatement process itself, including:

• $91.9 million for expenses associated with the investigation, subsequent restatement, private litigation and other associated activities, particularly, for accounting, legal and other professional service fees. That amount does NOT include the “significant expenses for these costs in fiscal 2009.”
• $117.3 million to option holders to compensate them for stock options that expired during the blackout period of the investigation and restatement process during which the company could not issue the shares for option exercises. Maxim says it expect to “incur significant cash payments for certain stock options that expire subsequent to June 28, 2008″ as well.
• $54.8 million in non-recourse loans the company gave to individuals holding restricted stock units that vested during the RSU’s that vested during the blackout period. The company said it will loan additional amounts subsequent to the end of its 2008 fiscal year on June 28, 2008 for restricted stock that vested during the blackout, “and such amounts may be significant.”
• $10 million to international employees for restricted stock units that vested during the blackout period for which Maxim was unable to deliver the shares of common stock, with more of those costs to come.

Last month the company settled at least one of the legal actions initiated against it over the options mess, with the bulk of the money to be paid going to, you guessed it, the lawyers.