Apple 1999 Annual Report Download - page 59

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 6--SHAREHOLDERS' EQUITY (CONTINUED)
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 would have become exercisable in certain limited
circumstances involving a potential business combination transaction of the Company and would have become initially exercisable at a price of
$200 per share. Following certain other events after the Rights had become exercisable, each Right would have entitled 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 expired 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, 1999 and 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 options outstanding as of September 25, 1999, have been segregated into five ranges for additional disclosure as follows (option amounts
are presented in thousands):
As of September 25, 1999, approximately 20.9 million options were reserved for future grant under the Company's stock option plans.
55
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 25, 1999 SEPTEMBER 25, 1998 SEPTEMBER 26, 1997
------------------------- ------------------------- -------------------------
NUMBER WEIGHTED- NUMBER WEIGHTED- NUMBER WEIGHTED-
OF AVERAGE OF AVERAGE OF AVERAGE
OPTIONS EXERCISE PRICE OPTIONS EXERCISE PRICE OPTIONS EXERCISE PRICE
-------- -------------- -------- -------------- -------- --------------
Options outstanding--beginning of
year.............................. 18,694 $20.47 18,649 $17.24 14,112 $27.23
Granted (price equals FMV)........ 5,955 $38.87 13,879 $23.11 20,629 $16.91
Granted (price less than FMV)..... -- $ -- -- $ -- 1,853 $ 6.54
Exercised......................... (3,674) $16.71 (1,882) $14.35 (1,049) $13.71
Forfeited......................... (2,571) $26.02 (11,952) $19.40 (16,896) $24.19
------ ------- -------
Options outstanding--end of year.... 18,404 $26.39 18,694 $20.47 18,649 $17.24
====== ======= =======
Options exercisable at end of
year.............................. 2,733 $19.15 1,435 $15.01 1,996 $22.02
OPTIONS OUTSTANDING OPTIONS EXERCISABLE
----------------------------------------------- ----------------------------
WEIGHTED-
OPTIONS AVERAGE WEIGHTED OPTIONS WEIGHTED
OUTSTANDING AS OF REMAINING AVERAGE EXERCISABLE AS OF AVERAGE
SEPTEMBER 25, CONTRACTUAL LIFE EXERCISE SEPTEMBER 25, EXERCISE
1999 IN YEARS PRICE 1999 PRICE
----------------- ---------------- -------- ----------------- --------
$1.66-$13.25................... 3,296 7.68 $12.54 1,324 $12.16
$13.26-$19.75.................. 4,449 8.20 $14.95 477 $16.31
$19.76-$31.19.................. 3,446 8.79 $30.07 705 $28.99
$31.20-$34.63.................. 4,149 9.23 $34.41 81 $34.18
$34.64-$79.06.................. 3,064 9.48 $42.92 146 $36.01
------ -----
$1.66-$79.06................... 18,404 8.66 $26.39 2,733 $19.15
====== =====