Apple 2000 Annual Report Download - page 57

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 7--EMPLOYEE BENEFIT PLANS (CONTINUED)
matching contributions to the Savings Plan were approximately $16 million, $13 million, and $14 million in 2000, 1999, and 1998,
respectively.
STOCK OPTION ACTIVITY
A summary of the Company's stock option activity and related information for the years ended September 30, 2000 and September 25, 1999
and 1998, follows (option amounts are presented in thousands):
The options outstanding as of September 30, 2000, have been segregated into five ranges for additional disclosure as follows (option amounts
are presented in thousands):
As of September 30, 2000, approximately 11.5 million options were reserved for future grant under the Company's stock option plans.
NOTE 8--STOCK-BASED COMPENSATION
The Company has elected to follow Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and
related interpretations in accounting for its employee stock options and employee stock purchase plan shares because, as discussed below, the
alternative fair value accounting provided for under SFAS No. 123 requires use of option valuation models that were not developed for use in
valuing employee stock options and employee stock purchase plan shares. Under APB Opinion No. 25, when the exercise price of the
Company's employee stock options equals the market price of the underlying stock on the date of the grant, no compensation expense is
recognized.
54
YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 25, 1999 SEPTEMBER 25, 1998
------------------------- ------------------------- -------------------------
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............................... 36,808 $13.20 37,388 $10.24 37,298 $ 8.62
Granted............................ 45,662 $46.52 11,910 $19.44 27,758 $11.56
Exercised.......................... (6,866) $ 9.62 (7,348) $ 8.36 (3,764) $ 7.18
Forfeited.......................... (4,846) $28.42 (5,142) $13.01 (23,904) $ 9.70
------ ------ -------
Options outstanding--end of year..... 70,758 $34.01 36,808 $13.20 37,388 $10.24
====== ====== =======
Options exercisable at end of year... 23,659 $31.94 5,466 $ 9.58 2,870 $ 7.51
OPTIONS OUTSTANDING OPTIONS EXERCISABLE
----------------------------------------------- ----------------------------
WEIGHTED-
OPTIONS AVERAGE WEIGHTED OPTIONS WEIGHTED
OUTSTANDING AS OF REMAINING AVERAGE EXERCISABLE AS OF AVERAGE
SEPTEMBER 30, CONTRACTUAL LIFE EXERCISE SEPTEMBER 30, EXERCISE
2000 IN YEARS PRICE 2000 PRICE
----------------- ---------------- -------- ----------------- --------
$0.83-$15.59................... 14,957 7.28 $ 9.82 7,092 $ 9.22
$15.60-$38.19.................. 12,854 8.37 $19.74 1,394 $20.27
$38.20-$47.28.................. 20,783 9.28 $43.52 15,005 $43.59
$47.29-$47.44.................. 14,389 9.21 $47.44 168 $47.44
$47.45-$69.78.................. 7,775 9.67 $53.91 -- $ --
------ ------
$0.83-$69.78................... 70,758 8.72 $34.01 23,659 $31.94
====== ======