Apple 2001 Annual Report Download - page 48

1997 Director Stock Option Plan
In August 1997, the Company's Board of Directors approved a Director Stock Option Plan (DSOP), for which directors of the Company are
eligible. Options granted under the DSOP vest in three equal installments, on each of the first through third anniversaries of the date of grant. A
total of 800,000 shares have been authorized for issuance under the DSOP, of which 370,000 shares remain reserved for future issuance.
Supplementally and separate from the DSOP, 60,000 options had been granted in total to two former members of the Company's Board of
Directors, of which 30,000 shares remain outstanding as of September 29, 2001.
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. During 2001, 2000, and 1999, 1.8 million, 766,000 and 1.1 million shares, respectively, were issued under the Purchase Plan. As
of September 29, 2001, approximately 3.93 million shares were reserved for future issuance under the Purchase Plan.
Employee Savings Plan
The Company has an employee savings plan (the Savings Plan) qualifying 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 pre-tax earnings, up to the Internal
Revenue Service annual contribution limit ($10,500 for calendar year 2001). 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. The Company's matching contributions to the
Savings Plan were approximately $17 million, $16 million, and $13 million in 2001, 2000, and 1999, respectively.
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Stock Option Activity
A summary of the Company's stock option activity and related information for the years ended September 29, 2001, September 30, 2000 and
September 25, 1999 follows (option amounts are presented in thousands):
The options outstanding as of September 29, 2001, have been segregated into five ranges for additional disclosure as follows (option amounts
are presented in thousands):
As of September 29, 2001, approximately 10.1 million options were reserved for future grant under the Company's stock option plans.
Year Ended
September 29, 2001
Year Ended
September 30, 2000
Year Ended
September 25, 1999
Number
of
Options
Weighted-
Average
Exercise Price
Number
of
Options
Weighted-
Average
Exercise Price
Number
of
Options
Weighted-
Average
Exercise Price
Options outstanding
—
beginning of year
70,758
$
34.01
36,808
$
13.20
37,388
$
10.24
Granted
34,857
$
18.58
45,662
$
46.52
11,910
$
19.44
Exercised
(1,831
)
$
10.05
(6,866
)
$
9.62
(7,348
)
$
8.36
Forfeited
(6,605
)
$
29.32
(4,846
)
$
28.42
(5,142
)
$
13.01
Options outstanding
—
end of year
97,179
$
29.25
70,758
$
34.01
36,808
$
13.20
Options exercisable at end of year
42,115
$
32.15
23,659
$
31.94
5,466
$
9.58
Options Outstanding Options Exercisable
Options
Outstanding as of
September 29,
2001
Weighted-
Average
Remaining
Contractual Life
in Years
Weighted
Average
Exercise
Price
Options
Exercisable as of
September 29,
2001
Weighted
Average
Exercise
Price
$0.83
-
$15.59
13,913
6.53
$
10.25
9,525
$
9.74
$15.60
-
$17.31
11,697
8.13
$
17.04
1,987
$
17.15
$17.32
-
$20.24
24,599
9.00
$
18.56
4,671
$
18.42
$20.25
-
$43.59
26,899
8.43
$
38.92
21,185
$
42.73
$43.60
-
$69.78
20,071
8.37
$
49.67
4,747
$
49.69
$0.83
-
$69.78
97,179
8.25
$
29.25
42,115
$
32.15