Apple 1998 Annual Report Download - page 57

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 6--SHAREHOLDERS' EQUITY (CONTINUED)
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 OPTION ACTIVITY
A summary of the Company's stock option activity and related information for the years ended September 25, 1998, and September 26, 1997,
follows (option amounts are presented in thousands):
The options granted in fiscal 1997 at a price less than fair market value were to existing NeXT optionholders as part of the total purchase price
paid for NeXT. See Note 4.
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 25, 1998, have been segregated into seven ranges for additional disclosure as follows (option amounts
are presented in thousands):
54
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 25, 1998 SEPTEMBER 26, 1997 SEPTEMBER 27, 1996
------------------------ ------------------------ ------------------------
WGT-AVG WGT-AVG WGT-AVG
NUMBER OF EXERCISE NUMBER OF EXERCISE NUMBER OF EXERCISE
OPTIONS PRICE OPTIONS PRICE OPTIONS PRICE
----------- ----------- ----------- ----------- ----------- -----------
Options outstanding--beginning of year......... 18,649 $ 17.24 14,112 $ 27.23 13,877 $ 34.79
Granted (price equals FMV)................... 13,879 $ 23.11 20,629 $ 16.91 8,873 $ 24.29
Granted (price less than FMV)................ -- $ -- 1,853 $ 6.54 -- $ --
Exercised.................................... (1,882) $ 14.35 (1,049) $ 13.71 (450) $ 22.91
Forfeited.................................... (11,952) $ 19.40 (16,896) $ 24.19 (8,188) $ 36.89
----------- ----------- -----------
Options outstanding--end of year............... 18,694 $ 20.47 18,649 $ 17.24 14,112 $ 27.23
----------- ----------- -----------
----------- ----------- -----------
Options exercisable at end of year............. 1,435 $ 15.01 1,996 $ 22.02 4,284 $ 31.24
----------- ----------- -----------
----------- ----------- -----------
OPTIONS OUTSTANDING OPTIONS EXERCISABLE
-------------------------------------- ------------------------------
OPTIONS WGT AVERAGE WEIGHTED OPTIONS WEIGHTED
OUTSTANDING AS OF REMAINING AVERAGE EXERCISABLE AS OF AVERAGE
SEPTEMBER 25, CONTRACTUAL LIFE EXERCISE SEPTEMBER 25, EXERCISE
1998 IN YEARS PRICE 1998 PRICE
----------------- ------------------- ----------- ----------------- -----------
$1.66--$9.97........................... 576 7.41 $ 6.66 200 $ 5.69
$9.98--$13.25.......................... 4,705 8.82 $ 13.24 796 $ 13.25
$13.26--$13.69......................... 4,468 9.23 $ 13.69 -- $ --
$13.70--$19.87......................... 1,999 9.00 $ 18.51 283 $ 19.35
$19.88--$30.75......................... 1,085 9.18 $ 26.81 124 $ 25.35
$30.76--$31.19......................... 3,758 9.93 $ 31.19 -- $ --
$31.20--$64.75......................... 2,103 9.78 $ 34.26 32 $ 38.61
------ -----
$1.66--$64.75.......................... 18,694 9.24 $ 20.47 1,435 $ 15.01
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