Apple 1997 Annual Report Download - page 55

Plan to increase the number of shares reserved for issuance by 3.5 million, which was approved at the Company's Annual Meeting of
Shareholders in February 1997. As of September 26, 1997, approximately 3.1 million shares were reserved for future issuance under the
Purchase Plan.
SENIOR OFFICERS RESTRICTED PERFORMANCE SHARE PLAN
In November 1997, the Company's Board of Directors issued approximately 24,000 fully vested shares and cash in settlement of shares to
certain officers of the Company under the Senior Officers Restricted Performance Share Plan (the "PSP") based upon the achievement of
certain performance goals established in advance by the Compensation Committee of the Board. Immediately after these shares were issued,
the Company's Board of Directors terminated the PSP. No shares had been previously issued under the PSP. Supplementally and separate from
the PSP, during the year ended September 26, 1997 the Company's Board of Directors issued approximately 131,000 fully vested shares to the
Company's former Chief Executive Officer based upon the achievement of certain performance goals established in advance by the
Compensation Committee of the Board.
SHAREHOLDER RIGHTS PLAN
In May 1989, the Company adopted a shareholder rights plan and distributed a dividend of one right to purchase one share of common stock (a
"Right") for each outstanding share of common stock of the Company. The Rights become exercisable in certain limited circumstances
involving a potential business combination transaction of the Company and are initially exercisable at a price of $200 per share. Following
certain other events after the Rights have become exercisable, each Right entitles its holder to purchase for $200 an amount of common stock
of the Company, or, in certain circumstances, securities of the acquiror, having a then-current market value of two times the exercise price of
the Right. The Rights are redeemable and may be amended at the Company's option before they become exercisable. Until a Right is exercised,
the holder of a Right, as such, has no rights as a shareholder of the Company. The Rights expire on April 19, 1999.
STOCK REPURCHASE PROGRAMS
In November 1992, the Board of Directors authorized the purchase of up to 10 million shares of the Company's common stock in the open
market. Approximately 4.9 million shares remain authorized for repurchase. No shares were repurchased under this authorization in 1997,
1996, or 1995.
EMPLOYEE SAVINGS PLAN
The Company has an employee savings plan (the "Savings Plan") that qualifies as a deferred salary arrangement under Section 401(k) of the
Internal Revenue Code. Under the Savings Plan, participating U.S. employees may defer a portion of their pretax earnings, up to the Internal
Revenue Service annual contribution limit ($9,500 for calendar year 1997). Effective October 1, 1995, the Company matches 50% to 100% of
each employee's contributions, depending on length of service, up to a maximum 6% of the employee's earnings. Prior to October 1, 1995, the
Company matched 30% to 70% of each employee's contributions, depending on length of service, up to a maximum 6% of the employee's
earnings. The Company's matching contributions to the Savings Plan were approximately $19 million, $22 million, and $15 million in 1997,
1996, and 1995, respectively.
COMMITMENTS AND CONTINGENCIES
LEASE COMMITMENTS
The Company leases various facilities and equipment under noncancelable operating lease arrangements. The major facilities leases are for
terms of five to ten years and generally provide renewal options for terms of up to five additional years. Rent expense under all operating leases
was approximately $106
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