Apple 1997 Annual Report Download - page 54

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A summary of the Company's stock option activity and related information for the years ended September 26, 1997 and September 27, 1996
follows:
The options granted at a price less than fair market value were to existing NeXT optionholders as part of the total purchase price paid for
NeXT.
The weighted-average fair value per share of options granted during the period includes the value of the repriced options granted during the
period less the value of the related forfeited options on the date the repriced options were granted.
The options outstanding as of September 26, 1997 have been segregated into six ranges for additional disclosure as follows (option amounts are
recorded in thousands):
As of September 26, 1997, approximately 2.5 million options were reserved for future grant under the Company's stock option plans.
EMPLOYEE STOCK PURCHASE PLAN
The Company has an employee stock purchase plan (the "Purchase Plan") under which substantially all employees may purchase common
stock through payroll deductions at a price equal to 85% of the lower of the fair market values as of the beginning and end of the six-month
offering period. Stock purchases under the Purchase Plan are limited to 10% of an employee's compensation, up to a maximum of $25,000 in
any calendar year. In December 1996, the Board of Directors adopted an amendment to the Purchase
51
YEAR ENDED YEAR ENDED
SEPTEMBER 26, 1997 SEPTEMBER 27, 1996
------------------------------ ------------------------------
OPTIONS WEIGHTED-AVERAGE OPTIONS WEIGHTED-AVERAGE
(IN 000'S) EXERCISE PRICE (IN 000'S) EXERCISE PRICE
----------- ----------------- ----------- -----------------
Outstanding--beginning of period....................... 14,112 $ 27.23 13,877 $ 34.79
Granted (Price equals fair market value, the
"FMV")............................................. 20,629 $ 16.91 8,873 $ 24.29
Granted (Price less than FMV)........................ 1,853 $ 6.54 -- $ --
Exercised............................................ (1,049) $ 13.71 (450) $ 22.91
Forfeited............................................ (16,896) $ 24.19 (8,188) $ 36.89
----------- ------ ----------- ------
Outstanding--end of period............................. 18,649 $ 17.24 14,112 $ 27.23
----------- ------ ----------- ------
----------- ------ ----------- ------
Exercisable at end of period........................... 1,996 4,284
----------- -----------
----------- -----------
Weighted-average fair value per share of options
granted during the period............................ $ 7.49 $ 12.66
----------- -----------
----------- -----------
OPTIONS OUTSTANDING
------------------------------------------- OPTIONS EXERCISABLE
OPTIONS WEIGHTED ----------------------------
OUTSTANDING AVERAGE WEIGHTED OPTIONS WEIGHTED
AS OF REMAINING AVERAGE EXERCISABLE AS AVERAGE
SEPTEMBER 26, CONTRACTUAL EXERCISE OF SEPTEMBER EXERCISE
1997 LIFE IN YEARS PRICE 26, 1997 PRICE
------------- --------------- ----------- --------------- -----------
$1.66 - $9.97................................... 937 8.0 $ 6.32 526 $ 5.14
$9.98 - $13.25.................................. 7,848 9.8 $ 13.25 3 $ 13.25
$13.26 - $18.38................................. 922 9.4 $ 16.78 -- $ --
$18.39 - $19.87................................. 6,088 9.9 $ 19.75 -- $ --
$19.88 - $26.38................................. 2,180 7.9 $ 24.29 871 $ 24.27
$26.39 - $64.75................................. 674 4.5 $ 34.04 596 $ 33.67
------ -----
$1.66 - $64.75.................................. 18,649 9.3 $ 17.24 1,996 $ 22.02
------ -----
------ -----